Carver Bancorp, Inc. Reports First Quarter Fiscal Year 2011 Results
Reports First Quarter Net Loss of $2.5 Million
Board Declares Dividend of $0.025 Per Share
NEW YORK, Aug. 13, 2010 (GLOBE NEWSWIRE) -- Carver Bancorp, Inc. (the "Company") (Nasdaq:CARV), the holding company for Carver Federal Savings Bank ("Carver" or the "Bank"), today announced financial results for the three month period ending June 30, 2010, the first quarter of its fiscal year ending March 31, 2011 ("fiscal 2011").The Company reported a net loss of $2.5 million, or a loss per share of $(1.09) for the first quarter of fiscal 2011 compared to net income of $0.7 million, or net income per share of $0.18, for the prior year period. The loss for the first quarter is due primarily to higher provision for loan losses as loan delinquencies increased. Deborah C. Wright, the Company's Chairman and CEO, stated: "Carver's loss in the first quarter of fiscal 2011 reflects continued uncertainty in the economy in general and in the specific real estate markets in which Carver operates, consistent with the prior quarter. These conditions led to a substantially increased provision for loan losses, following higher delinquencies and other impaired loans. While delinquencies increased across all real estate classes, the largest component continues to be a portfolio of affordable housing loans originated and serviced by the Community Preservation Corporation ("CPC"). Our team, along with CPC, is highly focused on continually evaluating and executing the best exit strategy for each delinquent or otherwise impaired loan. In some cases resolution will be near term and in others an investment in time is the best course of action. Our affordable housing loans are a case in point. Demand for this product remains significant, despite the challenging economic climate. However, our customers, mostly small developers with high quality projects, were stalled by dislocations in the secondary market, preventing homebuyers from obtaining the mortgages needed to buy homes. Getting these projects complete and fully sold or rented will, in some cases, take several quarters. However, we believe patience will yield the best outcome for Carver's stockholders in realizing value on these loans. In other cases, falling real estate valuations in some markets and severe delays in executing foreclosure proceedings in the New York City court system may render alternative resolutions, including loan sales, more effective. In sum, we are reviewing, real time, our options to improve non-performing loan levels as expeditiously as possible. Given the conditions noted above, however, delinquencies and other impaired loans may remain elevated for a number of quarters. These conditions are also likely to result in soft demand for new loans in the months ahead."
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