Carver Bancorp (CARV) saw its loss widen to $0.25 million, or $0.07 a share for the quarter ended Sep. 30, 2016. In the previous year period, the company reported a loss of $0.16 million, or $0.04 a share.
Revenue during the quarter grew 3.20 percent to $6.32 million from $6.12 million in the previous year period. Net interest income for the quarter dropped 13.38 percent over the prior year period to $4.88 million. Non-interest income for the quarter rose 13 percent over the last year period to $1.28 million.
Carver Bancorp has made negative provision of $0.16 million for loan losses during the quarter, compared with a positive provision of $0.64 million in the same period last year.
Net interest margin contracted 48 basis points to 2.89 percent in the quarter from 3.37 percent in the last year period. Efficiency ratio for the quarter deteriorated to 106.69 percent from 91.64 percent in the previous year period. A rise in efficiency ratio suggests a fall in profitability.
"Strengthening our asset quality by reducing non-performing loans and other assets is a key element of our plan to improve profitability at Carver," said Michael T. Pugh, the Company's president and chief executive officer. "During the second quarter of fiscal year 2017, we demonstrated progress by reducing non-performing loans held for investment and other non-performing assets. The decision to make these reductions helped to improve our asset quality ratios as follows: non-performing loans to total loans declined to 1.62% at September 30, 2016 from 1.69% at June 30, 2016, and non-performing assets to total assets declined to 1.55% at September 30, 2016 from 2.36% at June 30, 2016."
Assets, liabilities fallTotal assets stood at $701.72 million as on Sep. 30, 2016, down 4.75 percent compared with $736.74 million on Sep. 30, 2015. On the other hand, total liabilities stood at $647.31 million as on Sep. 30, 2016, down 5.02 percent from $681.52 million on Sep. 30, 2015.
Deposits outpace loan growthNet loans stood at $524.40 million as on Sep. 30, 2016, down 6.06 percent compared with $558.20 million on Sep. 30, 2015. Deposits were almost flat at $583.60 million as on Sep. 30, 2016, when compared with the last year period. Investments stood at $68.21 million as on Sep. 30, 2016, down 25.74 percent or $23.64 million from year-ago. Shareholders equity stood at $54.41 million as on Sep. 30, 2016, down 1.46 percent or $0.81 million from year-ago.
Return on assets for the quarter stood at negative 0.15 percent as compared to a negative 0.09 percent for the previous year period. Return on equity for the quarter stood at negative 1.86 percent as compared to a negative 1.17 percent for the previous year period.
Meanwhile, nonperforming assets to total assets was 1.55 percent in the quarter, down from 1.74 percent in the last year period.
Tier-1 leverage ratio stood at 9.48 percent for the quarter, down from 10.14 percent for the previous year quarter.
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