Carver Bancorp, Inc. Reports Second Quarter Fiscal Year 2011 Results
NEW YORK, Oct. 29, 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 ended September 30, 2010, the second quarter of its fiscal year ending March 31, 2011 ("fiscal 2011"), as well as suspension of the quarterly cash dividend on its common stock.
The Company reported a net loss of $23.4 million for the second quarter of fiscal 2011 compared to a net loss of $0.3 million for the second quarter of fiscal 2010 and a loss of $2.5 million for the first quarter of fiscal 2011. On a per share basis, the net loss per share for the quarter was $9.43 compared to a net loss per share of $0.22 for the second quarter of fiscal 2010 and a net loss per share of $1.09 for the first quarter of fiscal 2011. The losses for the quarter are due primarily to a higher provision for loan losses and a $20.7 million non-cash charge to establish a valuation allowance on the Company's deferred tax asset. Earnings were also impacted by the current low interest rate environment combined with elevated levels of non-performing loans and a reduction in interest earning assets.
"We have taken aggressive steps toward rebalancing our loan portfolio and preserving capital as the impact of a prolonged recession makes its way through our books," said Deborah C. Wright, the Company's Chairman and CEO. "In addition to suspending the quarterly cash dividend, we have dramatically reduced Carver's concentration in real estate loans. Over the past six months, through the diligent efforts of our lending and workout teams, we have reduced our construction loan balances by 26% through a combination of problem loan resolutions, charge offs, pay downs and early payoffs. As we continue these efforts, we expect continued significant reductions in construction loan balances in addition to other actions we are taking to reduce the size of our balance sheet.
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