Carver Bancorp Inc. (CARV, Financial) filed Quarterly Report for the period ended 2010-09-30.
Carver Bancorp Inc. has a market cap of $8.44 million; its shares were traded at around $3.4 with and P/S ratio of 0.19. CARV is in the portfolios of Martin Whitman of Third Avenue Value Fund, Third Avenue Management.
In May 2009, the Bank received an additional award of $65 million in NMTC. In December 2009, the Bank transferred rights to an investor in a NMTC project totaling $10.5 million and recognized a gain on the transfer of rights of $0.4 million. The Bank and CCDC have involvements with special purpose entities that were created to facilitate the ultimate investment made by the investor. Specifically, the Bank has funded, on a secured basis, $7.7 million of the investors $10.5 million investment in the NMTC project. In addition, CCDC has retained a 0.01% interest in another entity created to facilitate the investment with the investor owning the remaining 99.99%. CCDC also provides certain administrative services to these special purpose entities. The Bank has determined that its and CCDC does not have the sole power to direct activities of these special purpose entities that most significant impact their performance therefore it is not the primary beneficiary of these entities.
In March 2010, the Bank transferred rights to investors in NMTC projects totaling $44.5 million and recognized a gain on the transfer of rights of $0.4 million. The Bank and CCDC have involvements with special purpose entities that were created to facilitate the ultimate investments to be made by the investors. The Bank also recorded deferred income of $0.6 million related to the transfer that is expected to be recognized into income in future periods after the ultimate investments are made. In June 2010, the investors made qualifying investments of $8.7 million of the $44.5 million noted above. The Bank released into earnings $0.2 million of the deferred income and also recognized additional income of $0.2 million related to these investments. In August 2010, the investors made qualifying investments of $6.6 million of the $44.5 million noted above. The Bank released into earnings $0.2 million of the deferred income and also recognized additional income of $0.2 million related to these investments. In addition, CCDC has retained a 0.01% interest in three other entities created to facilitate the investments with the investor owning the remaining 99.99%. CCDC also provides certain administrative services to these special purpose entities. The Bank has determined that its and CCDCs involvement with these special purpose entities does not expose it to the majority of expected loss or residual returns and therefore it is not the primary beneficiary of these entities.
Net cash used in financing activities was $23.9 million, primarily resulting from decreases in core deposits of $4.3 million and the maturity of a fixed-rate note of $11.0 million in the first quarter and $8.0 million in the second. Net cash used in operating activities during this period was $0.8 million and was primarily the result of an increase in provision for loan losses offset by an increase in other assets and a non-cash valuation allowance taken on the deferred tax assets. Net cash provided by investing activities was $21.4 million is the result of loan pay downs and payoffs during the quarter.
At September 30, 2010, total assets decreased $50.6 million, or 6.3%, to $754.8 million compared to $805.5 million at March 31, 2010. The decline in total assets is primarily due to decreases in loans receivable of $56.2 million, cash of $2.5 million and deferred tax assets of $14.3 million, partially offset by increases in investment securities of $21.7 million and other assets of $1.4 million.
Net loans receivable decreased $56.2 million, or 8.5%, to $601.8 million at September 30, 2010 compared to $658.0 million at March 31, 2010. Principal repayments net of advances and originations across all loan classifications contributed to the majority of the decrease including, Construction ($24.7 million), Commercial ($12.7 million) and Business ($12.7 million), coupled with an increase in the allowance for loan loss of $5.4 million.
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Carver Bancorp Inc. has a market cap of $8.44 million; its shares were traded at around $3.4 with and P/S ratio of 0.19. CARV is in the portfolios of Martin Whitman of Third Avenue Value Fund, Third Avenue Management.
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 beginning December 2006, 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 $6.6 million from its $40.0 million investment over the next four years.In May 2009, the Bank received an additional award of $65 million in NMTC. In December 2009, the Bank transferred rights to an investor in a NMTC project totaling $10.5 million and recognized a gain on the transfer of rights of $0.4 million. The Bank and CCDC have involvements with special purpose entities that were created to facilitate the ultimate investment made by the investor. Specifically, the Bank has funded, on a secured basis, $7.7 million of the investors $10.5 million investment in the NMTC project. In addition, CCDC has retained a 0.01% interest in another entity created to facilitate the investment with the investor owning the remaining 99.99%. CCDC also provides certain administrative services to these special purpose entities. The Bank has determined that its and CCDC does not have the sole power to direct activities of these special purpose entities that most significant impact their performance therefore it is not the primary beneficiary of these entities.
In March 2010, the Bank transferred rights to investors in NMTC projects totaling $44.5 million and recognized a gain on the transfer of rights of $0.4 million. The Bank and CCDC have involvements with special purpose entities that were created to facilitate the ultimate investments to be made by the investors. The Bank also recorded deferred income of $0.6 million related to the transfer that is expected to be recognized into income in future periods after the ultimate investments are made. In June 2010, the investors made qualifying investments of $8.7 million of the $44.5 million noted above. The Bank released into earnings $0.2 million of the deferred income and also recognized additional income of $0.2 million related to these investments. In August 2010, the investors made qualifying investments of $6.6 million of the $44.5 million noted above. The Bank released into earnings $0.2 million of the deferred income and also recognized additional income of $0.2 million related to these investments. In addition, CCDC has retained a 0.01% interest in three other entities created to facilitate the investments with the investor owning the remaining 99.99%. CCDC also provides certain administrative services to these special purpose entities. The Bank has determined that its and CCDCs involvement with these special purpose entities does not expose it to the majority of expected loss or residual returns and therefore it is not the primary beneficiary of these entities.
Net cash used in financing activities was $23.9 million, primarily resulting from decreases in core deposits of $4.3 million and the maturity of a fixed-rate note of $11.0 million in the first quarter and $8.0 million in the second. Net cash used in operating activities during this period was $0.8 million and was primarily the result of an increase in provision for loan losses offset by an increase in other assets and a non-cash valuation allowance taken on the deferred tax assets. Net cash provided by investing activities was $21.4 million is the result of loan pay downs and payoffs during the quarter.
At September 30, 2010, total assets decreased $50.6 million, or 6.3%, to $754.8 million compared to $805.5 million at March 31, 2010. The decline in total assets is primarily due to decreases in loans receivable of $56.2 million, cash of $2.5 million and deferred tax assets of $14.3 million, partially offset by increases in investment securities of $21.7 million and other assets of $1.4 million.
Net loans receivable decreased $56.2 million, or 8.5%, to $601.8 million at September 30, 2010 compared to $658.0 million at March 31, 2010. Principal repayments net of advances and originations across all loan classifications contributed to the majority of the decrease including, Construction ($24.7 million), Commercial ($12.7 million) and Business ($12.7 million), coupled with an increase in the allowance for loan loss of $5.4 million.
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