CARV earnings analysis
What we found in CARV's 10-Q: the parts that mattered, the offsets in the same document, and what the company said about what comes next.
Our reading of the filing · Free to read, no account needed
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.
The parts that mattered.
Pulled out of the filing itself, with the figures the company reported.
- 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).
- 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.
- 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.
- 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.
- 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%.
And the other side of it.
The offsets in the same document — the things a summary that only listed the good news would have left out.
- 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.
- 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.
- 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.
- 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.
- 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.
- 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.'
What they reported.
What the company itself reported, taken out of the document.
- Earnings per share
- $-1.09
- Gross margin
- 43.17%
- Operating margin
- -143.29%
What they said about what is next.
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.
The filing reads worse than the one before it.
What came before.
- 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…
- 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. Read the original on SEC.gov · Educational only. Nothing here is investment advice.
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