Business
Largest U.S. Black-Owned Bank Reports Loss of $39.5 million for FY 2011
Carver Bancorp, Inc. the holding company for Carver Federal Savings Bank, the largest African- and Caribbean-American run bank in the United States, announced this week financial results for its fiscal year ended March 31, 2011 and fourth quarter of fiscal year ended March 31, 2011 (“fiscal 2011”).
The Company reported a net loss of $39.5 million, or loss per share of $16.15, for fiscal 2011 compared to a net loss of $1.0 million, or loss per share of $0.79, for fiscal 2010. The loss in fiscal 2011 is primarily due to $27.1 million in provisions for loan losses and an $18.9 million valuation allowance recorded against the Company’s deferred tax asset.
For the fourth quarter of fiscal 2011, the Company reported a net loss of $5.5 million compared to a net loss of $2.2 million for the fourth quarter of fiscal 2010 and a loss of $8.2 million for the third quarter of fiscal 2011. On a per share basis, the net loss per share for the quarter was $2.21 compared to a net loss per share of $0.97 for the fourth quarter of fiscal 2010 and a net loss per share of $3.30 for the third quarter of fiscal 2011.
“This has obviously been among the most challenging periods we’ve faced at Carver,” said Deborah C. Wright, Carver Bancorp, Inc.’s Chairman and CEO. “Our loss in fiscal 2011 reflects the impact of charge offs and provisions required to address troubled loans in our loan portfolio as well as the substantial reserve taken against our deferred tax asset. Our team has focused for the better part of the year on raising capital, restructuring our loan portfolio and putting strategies in place to increase revenues. I’m pleased that our capital goals have been achieved and exceeded, as noted in a press release yesterday. While we are disappointed in our financial results this year, and the impact that it has had on our stockholders, our success in raising Carver’s capital ratios well beyond regulatory requirements will provide strength and flexibility as we accelerate progress in resolving credit issues in the period ahead. On the deposit front, we take heart in the fact that core deposits grew over the course of the year, and we made progress on the credit front, as non-performing loans declined to $77.4 million from $90.1 million in the quarter ended December 31, 2010,” said Ms. Wright.
