Carver Bancorp, the holding company for Carver Federal Savings Bank, has reported a net income of $0.8 million for the second quarter ended September 30, 2007 an increase of $1.7 million compared to a net loss of $0.9 million for the prior year period.
For the quarter interest income has increased by $2.7 million, or 28.9%, to $12.1 million compared to $9.4 million in same period last year.
Interest expense was $5.6 million, up 34.9%, compared to $4.2 million for comparable period of fiscal 2007.
Net income for the six months ended September 30, 2007 was $1.9 million compared to a net loss of $0.1 million for the prior year period, an increase of $2 million.
Deborah Wright, chairman and CEO of Carver Bancorp, said: Carver’s earnings and other key metrics were stable in the second quarter, during an obviously challenging period for the banking industry. Net income was up modestly, on an ongoing basis year over year, as net interest margin increased 24% and fee income from our lending and retail businesses increased 41%. I’m pleased to note that credit quality remains solid.
In addition, Carver’s new markets tax credit award continues to provide a net income tax benefit. Nevertheless, expenses rose sharply as results include absorption of Community Capital Bank’s operations, investments in new talent, costs in preparation for implementation of Sarbanes-Oxley act section 404 at the end of this fiscal year, and other consulting assistance.