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Carver Bancorp Inc. Reports Operating Results (10-Q)

November 16, 2009 | About:
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10qk

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Carver Bancorp Inc. (CARV) filed Quarterly Report for the period ended 2009-09-30.

CARVER BANCORP INC. is a holding company engaged in general banking business. Carver Bancorp Inc. has a market cap of $16.92 million; its shares were traded at around $6.85 with and P/S ratio of 0.36. The dividend yield of Carver Bancorp Inc. stocks is 5.84%. Carver Bancorp Inc. had an annual average earning growth of 11.3% over the past 10 years.

Highlight of Business Operations:

Recognition of the Banks $59.0 million NMTC award began in December 2006 when the Bank invested $29.5 million, one-half of its $59 million award. In December 2008, the Bank invested an additional $10.5 million and transferred rights to $19.2 million to an investor in a NMTC project. The Banks NMTC allocation was fully invested as of December 31, 2008. During the seven year period, assuming the Bank meets compliance requirements, the Bank will receive 39% of the $40.0 million invested award amount in tax benefits (5% over each of the first three years, and 6% over each of the next four years). The Company expects to receive the remaining NMTC tax benefits of approximately $9.1 million from its $40.0 million investment over the next five years. The Companys ability to utilize deferred tax assets generated by NMTC income tax benefits over the next five years, as well as other deferred tax assets, depends on its ability to meet the NMTC compliance requirements and its ability to generate sufficient taxable income from operations or from potential tax strategies to generate taxable income in the future.

Net cash used in investing activities was $13.9 million, primarily representing cash disbursed to fund loan originations of $72.9 million, offset partially by principal collections on loans of $49.5 million and proceeds from principal payments/maturities/calls of securities of $9.6 million. Net cash provided by financing activities was $15.3 million and primarily resulted from increases in deposits of $1.3 million and borrowings of $15.0 million. Net cash used in operating activities during this period was $0.3 million, primarily representing net income, provision for loan losses and an increase in other assets.

At September 30, 2009, total assets increased $17.2 million, or 2.2%, to $808.6 million compared to $791.4 million at March 31, 2009, primarily as a result of increases in cash and cash equivalents of $1.1 million, loans receivable of $25.5 million and other assets of $3.5 million primarily due to increases in accounts receivables and loan clearing accounts, offset by decreases in investment securities of $9.9 million and loans held-for-sale of $1.5 million.

Cash and cash equivalents increased $1.1 million, or 8.1%, to $14.4 million at September 30, 2009 compared to $13.3 million at March 31, 2009, primarily due to an increase of $5.3 million in cash and due from banks offset by a decrease of $4.2 million in money market investments. The increase in cash and cash equivalents is the result of liquidity stemming partially from principal pay down of investment securities.

Investment securities decreased $9.9 million, or 13.2%, to $64.9 million at September 30, 2009 compared to $74.8 million at March 31, 2009, reflecting decreases of $7.9 million in available-for-sale securities and a $2.0 million decrease in held-to-maturity securities. The decrease in both available-for-sale and held to maturity securities was primarily due to collection of principal repayments and maturities. The liquidity arising from the decrease in investment securities was partially used to fund loan demand. However, the Bank may invest in securities from time to time to help diversify its investment portfolio, manage liquidity and satisfy collateral requirements for certain deposits. There were no purchases of securities during the quarter ended September 30, 2009.

Loans receivable increased $25.5 million, or 4.0%, to $666.6 million at September 30, 2009 compared to $641.1 million at March 31, 2009. The increase was primarily the result of increases in multifamily loans of $16.9 million, commercial real estate loans of $15.8 million and commercial business loans of $12.8 million, offset by decreases in one- to four- family loans of $7.1 million, construction loans of $12.7 million and consumer loans of $0.2 million. The Bank continues to grow its loan portfolio through focusing on origination of loans in the markets it serves while maintaining tighter credit standards.

Read the The complete ReportCARV is in the portfolios of Third Avenue Management, Martin Whitman of Third Avenue Value Fund.

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