Carver Bancorp, Inc. Interim CEO Craig C. MacKay Comments on the Bank's 2024 Fiscal Year-End Performance
Rhea-AI Summary
Carver Bancorp, Inc. (Nasdaq: CARV) reported a 32% reduction in net loss to $3.0 million for the fiscal year ended March 31, 2024. The company achieved breakeven in the second half of the year, showing positive earnings momentum. While net interest income decreased by 1% to $22.6 million, non-interest income surged by 87% to $6.7 million. Key financial highlights include:
- Interest income up 23%
- Net interest margin improved by 28 bps to 3.31%
- Assets per employee up 1.9%
- Deposits increased by 7.8%
Carver's progress is supported by partnerships with major banks and new initiatives, including a $25 million credit facility for decarbonization projects and an enhanced loan application system. The bank maintains its commitment to serving underserved communities and has received 'Outstanding' CRA Ratings for over 20 consecutive years.
Positive
- 32% reduction in net loss to $3.0 million for FY-2024
- Breakeven achieved in the second half of the fiscal year
- Non-interest income increased by 87% to $6.7 million
- Interest income up 23% due to portfolio diversification
- Net interest margin improved by 28 bps to 3.31%
- Deposits increased by 7.8%
- $25 million credit facility secured for decarbonization projects
- New partnerships and initiatives to support future growth
Negative
- Net interest income decreased by 1% to $22.6 million
- Overall net loss of $3.0 million for the fiscal year
News Market Reaction
On the day this news was published, CARV declined 2.79%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
Dear Carver Shareholders:
Carver Bancorp, Inc. ("Carver") reduced its net loss by
Underlying Carver's improved results were the achievement of greater mission-aligned grant income opportunities, increased loan diversification and greater pricing discipline in this "higher for longer" cost of funding environment for banks. Indeed, Carver increased net income in the 2nd half of the fiscal year, without a corresponding increase in non-interest expense.
FY-2024 Financial Highlights:
- Interest Income - up 23%; portfolio diversification from organic originations and participations in commercial mortgages, consumer, specialty finance and broadly syndicated loans are a result of Carver's increased commercial engagement with bank and fintech partners.
- Net Interest Margin -
3.31% ; improved by 28 bps over the prior quarter as increased origination volume and the net yield pick-up on newly booked loans has begun to offset the marginal rise in funding costs. - Assets per Employee – up
1.9% , driven by a4.6% increase in assets to$757 million - Deposits – up
7.8% , funded by continued growth in retail, institutional and DTC funding to support asset growth and bolster our liquidity.
The story underlying Carver's progress in FY-2024 would be incomplete without acknowledging long-standing mission-aligned partners, including Citigroup, J.P. Morgan and Wells Fargo, whose strategic fee-sharing, deposit gathering, and best practice-sharing have buttressed the Bank's ability to impact the communities we serve. FY-2025 should reveal the impact of new mission-aligned relationships, which include:
- New York Green Bank – Carver recently closed a
$25 million New York's urban communities. - MWBE Vendor Supplier Program – Bespoke corporate vendor financing program for MWBEs (primarily located in the Northeast), guaranteed by a Fortune 100 corporate partner.
- Jack Henry – Enhanced technology will provide an improved customer experience with the Fall 2025 roll-out of LoanVantage™, a core system solution designed to streamline our loan application/approval process.
Carver's journey underscores the systemic importance of mission-driven MDIs and CDFIs to the health and well-being of underserved communities. The Bank has a proud history of providing low-to-moderate income ("LMI") communities throughout
- Lending, depository and other banking services to tens of thousands of New Yorkers, and hundreds of houses of worship, non-profits, multifamily dwellings and small businesses.
- Sponsorship of financial education, wealth building skills and small business empowerment programs (e.g. seminars and one-on-one coaching to over 16,000 consumers and aspiring entrepreneurs).
- Contributions to local investment utilizing Federal and State grants to support non-profit organizations, provide workforce development and home ownership programs.
- Facilitating public/private business development (e.g. partnership with State agencies and corporate partners to provide contractor financing programs to MWBEs).
- Access to capital through Carver's Small Business Microloan program, which provides loans of
$5,000 $50,000 - Support of Historically Black Colleges and Universities.
Legacy notwithstanding, as the underbanked LMI neighborhoods in Carver's service footprint have expanded to include multiple ethnicities, so too has Carver's definition of community. Historically predominant African American and Caribbean-American neighborhoods in
In 1948, our founders endeavored to build a platform for savings and generational wealth creation for the underbanked. The confluence of Carver's recent investments in institutional and retail client business development, microlending, community development and fraud risk management talent have all significantly enhanced our ability to serve the underbanked.
We remain optimistic about the Bank's future and its ambition to continue the exploration and development of commercially sustainable products and services to grow with our community, including:
- Greenhouse gas reduction project financing
- Bespoke asset management and private wealth management services
- Earned wage advances for low-income workers
- Expanded MWBE grants and contractor financing initiatives
- Consumer lending (e.g. auto loans, personal loans)
- SBA Program business loans
- Millennial and Gen Z-focused financial education and investment incubator
Encouraged by our asset and depositor base expansion, enhanced green lending capabilities, and solid advance against our sustainable earnings objective, we look forward to reporting continued progress as FY-2025 unfolds.
Sincerely,
Craig C. MacKay
Interim President & CEO
Carver Bancorp, Inc.
About Carver Bancorp, Inc.
Carver Bancorp, Inc. (NASDAQ: CARV) is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank. Headquartered in
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors, risks, and uncertainties. More information about these factors, risks, and uncertainties is contained in our filings with the Securities and Exchange Commission.
Media:
Michael Herley for Carver
203.308.1409
mediainquiries@carverbank.com
Investors:
ir@carverbank.com
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SOURCE Carver Bancorp, Inc.
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