10-Q · November 14, 2024
Carver reported a quarterly net loss of $2,113 thousand (EPS $(0.41)) for the three months ended September 30, 2024, compared with a net loss of $1,586 thousand (EPS $(0.33)) in the prior-year quarter. Net interest…
Earnings analysis · 10-Q
CARV earnings analysis
Filed February 13, 2025 · Our reading of the company's report
The latest report
Carver Bancorp reported a sharp quarter-over-quarter deterioration: total revenue (net interest income + non-interest income) was $3.942 million for the three months ended December 31, 2024, down from $8.016 million in…
Read full summary
Carver Bancorp reported a sharp quarter-over-quarter deterioration: total revenue (net interest income + non-interest income) was $3.942 million for the three months ended December 31, 2024, down from $8.016 million in the prior-year quarter, producing a GAAP loss before tax of $(5.648) million and basic/diluted EPS of $(1.09). Liquidity and core balance-sheet size remain material — deposits of $636.939 million and loans (net) of $604.820 million — but cash declined by $9.066 million and regulatory capital constraints (IMCR) remain in force. Management reiterates that the Bank’s liquidity position “remains adequate” and that it is monitoring asset quality, liquidity and capital, but the MD&A contains no numeric forward guidance.
Gross and operating margin
How much of each revenue dollar the business keeps.
One point per quarterly or annual filing. Both margins are shares of that report's revenue.
From revenue to operating profit
Where each $100 of revenue went in this report.
Cost of sales, operating expenses, and what remained. Figures are rounded to whole dollars.
How we read each report
Our analysis across the last few reports.
Our model's reading of each filing, not the share price or the market's reaction. Annual and quarterly reports each occupy one position.
Reported figures
- Earnings per share
- $-1.09
What stood out
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Revenue base (Q) still intact but down materially
Reported total core revenue (net interest income $2,955k + non-interest income $987k) = $3,942k for the quarter (three months ended December 31, 2024).
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Large loan portfolio
Loans net of deferred fees and costs totaled $610,877k (gross loans $610,877k, loans receivable net $604,820k) as of December 31, 2024, indicating continued scale in lending.
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Deposit funding remains sizable
Total deposits were $636,939k as of December 31, 2024, supporting the balance sheet despite a $10,060k decrease versus March 31, 2024.
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Liquidity described as adequate
Management states 'The Bank's liquidity position remains adequate' (MD&A) while cash and cash equivalents totaled $49,959k at December 31, 2024.
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Regulatory capital targets reiterated
Management confirms the Individual Minimum Capital Ratio (IMCR) remains in effect, requiring a Tier 1 leverage ratio of 9% and a total risk-based capital ratio of 12%.
What to watch
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Sharp revenue and margin compression
Total core revenue fell to $3,942k this quarter from $8,016k in the prior-year quarter (net interest income down to $2,955k from $5,481k; non-interest income down to $987k from $2,535k), driving gross-margin compression (net interest income / interest income) to 43.2% versus 64.7% a year earlier.
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Large quarterly loss and EPS deterioration
Loss before income taxes was $(5,648)k for the quarter (three months ended December 31, 2024) and basic/diluted EPS was $(1.09), versus net income of $19k in the prior-year quarter.
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Operating expenses increased
Non-interest expense rose to $9,494k for the quarter from $8,094k in the prior-year quarter, contributing to operating loss.
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Cash and asset contraction
Cash and cash equivalents decreased $9,066k from $59,025k at March 31, 2024 to $49,959k at December 31, 2024; total assets declined $29,266k to $727,530k.
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Borrowings and advances reduced
Advances from the FHLB-NY and other borrowed money decreased from $46,536k at March 31, 2024 to $38,281k at December 31, 2024 (down $8,255k), which could constrain liquidity flexibility.
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Allowance and credit monitoring required
Allowance for credit losses increased to $6,057k at December 31, 2024 from $5,871k at March 31, 2024, and management states it is 'closely monitoring its asset quality, liquidity, and capital positions.'
Management's outlook
No explicit numeric guidance provided in the MD&A. Management states liquidity 'remains adequate' and that it is monitoring asset quality, liquidity and capital; outlook appears qualitative only and numeric guidance is deferred to future earnings releases/calls.
Earlier filings 4
10-Q · August 14, 2024
Carver Bancorp reported a wider quarterly loss as higher funding costs and elevated non-interest expenses more than offset stable core interest income. Net interest income after provision was $5.244M with non‑interest…
10-Q · November 14, 2023
Carver Bancorp reported total revenue of $6,862,000 for the three months ended September 30, 2023 and a net loss of $(1,586,000) or basic/diluted EPS of $(0.33). Revenue improved versus the prior quarter (derived…
10-K · June 29, 2023
Carver Bancorp's 10-K (period ended March 31, 2023) describes a community-focused banking strategy centered on Carver Federal Savings Bank, emphasizing multifamily and commercial real estate lending in New York City and…
This is our reading of a public filing, not the filing itself. Analysis can contain errors; check the source document for full context.