Carver Bancorp, Inc. (CARV): history, ownership, mission, how it works & makes money

A Brief History of Carver Bancorp, Inc. (CARV)

Foundation and Early Years

Carver Bancorp, Inc. was established in 1948, initially as Carver Federal Savings and Loan Association, in Harlem, New York City. It was founded to provide financial services to the African American community, which faced significant barriers to accessing capital and loans.

Growth and Development

Over the decades, Carver Bancorp expanded its services, transitioning from a savings and loan institution to a federally chartered savings bank. This was marked by its becoming a public company in 1994, trading on NASDAQ under the ticker symbol CARV.

Financial Performance

As of 2023, Carver Bancorp reported total assets of approximately $314 million. The bank's net income for the fiscal year 2022 was recorded at $1.5 million.

Community Focus

Carver Bancorp has always been committed to community development. In 2020, the bank announced a commitment of $7 million to support small businesses affected by the COVID-19 pandemic. This initiative was part of their broader strategy to assist the underserved communities.

Recent Developments

In 2022, the bank launched a new digital banking platform aimed at enhancing customer experience and expanding access to financial services. This was pivotal in responding to the increasing demand for online banking solutions.

Table of Key Financial Metrics

Regulatory Challenges

Throughout its history, Carver Bancorp has navigated various regulatory challenges. In recent years, it has focused on compliance with the Dodd-Frank Act and has also been involved in discussions regarding Community Reinvestment Act (CRA) ratings.

Future Outlook

Carver Bancorp aims to continue expanding its footprint in financial services while maintaining its commitment to the community. The focus will be on leveraging technology to improve operational efficiency and customer engagement.

A Who Owns Carver Bancorp, Inc. (CARV)

Shareholder Composition

Carver Bancorp, Inc. (CARV) has a diverse group of shareholders that include institutional investors, mutual funds, and individual stakeholders. Below are the major stakeholders as of the latest available data:

Board of Directors

The board of directors at Carver Bancorp, Inc. plays a crucial role in influencing the company's governance and strategic direction. The board comprises a mix of seasoned professionals from various sectors.

Recent Financial Data

As of the latest quarter, Carver Bancorp, Inc. has reported significant financial metrics that reflect its operational health and investment appeal.

Stock Performance

The performance of Carver Bancorp's stock, as indicated by key metrics, reflects the company's market standing and investment potential.

Carver Bancorp, Inc. (CARV) Mission Statement

Overview

Carver Bancorp, Inc. (CARV) aims to provide value-driven banking services to underserved communities. The mission statement emphasizes a commitment to fostering economic empowerment through responsible lending and targeted financial services.

Core Values

• Community Engagement: Focus on supporting local initiatives and businesses.
• Integrity: Commitment to transparency and ethical banking practices.
• Innovation: Adaptation of financial products to meet the evolving needs of customers.
• Excellence: Striving for high-quality service and continuous improvement.

Financial Performance

As of the latest fiscal year, Carver Bancorp, Inc. has shown notable financial figures:

Target Market

The mission extends to various segments, primarily focusing on:

• Small businesses
• Individual homeowners
• Low-to-moderate income families
• Non-profit organizations

Strategic Objectives

• Expand Services: Introduction of innovative banking products.
• Increase Community Impact: Enhance community engagement initiatives.
• Improve Financial Literacy: Offer programs that educate clients on financial management.

Recent Achievements

In the last year, Carver Bancorp, Inc. has reached key milestones that align with its mission:

Long-term Vision

The long-term vision of Carver Bancorp, Inc. aligns with its mission statement, focusing on:

• Achieving sustainable growth.
• Advancing financial inclusion.
• Enhancing technological capabilities.

Industry Context

According to 2022 statistics, the banking industry has been shifting towards digital services, which Carver intends to leverage, while maintaining its community-focused approach:

Summary

Carver Bancorp, Inc. remains dedicated to its mission, fostering economic empowerment through its community-oriented banking solutions. The commitment to ethical practices, customer service excellence, and innovation underpins its operational strategies.

How Carver Bancorp, Inc. (CARV) Works

Overview

Carver Bancorp, Inc. operates as a bank holding company and its subsidiary, Carver Federal Savings Bank, focuses on providing financial services primarily to underserved communities in New York City. As of October 2023, the bank holds approximately $288.1 million in assets and primarily caters to the needs of residents and businesses in the African American and Hispanic communities.

Business Model

The bank’s business model includes accepting deposits, providing mortgages, and offering various consumer loans. Carver Bancorp generates revenue through interest income from its loan portfolio and fees from its banking services.

Financial Performance

For the fiscal year ending June 30, 2023, Carver Bancorp reported:

• Total assets: $288.1 million
• Total deposits: $254.6 million
• Total loans: $173.6 million
• Net income: $1.7 million
• Return on assets (ROA): 0.59%
• Return on equity (ROE): 4.47%
• Net interest margin: 3.54%

Loan Portfolio Breakdown

The composition of Carver Bancorp's loan portfolio as of June 30, 2023, is as follows:

Deposit Composition

As of June 30, 2023, the deposit composition of Carver Bancorp is as follows:

Community Impact

Carver Bancorp places a strong emphasis on community outreach and development. The bank has funded various initiatives targeting financial literacy, small business development, and affordable housing. In 2022, Carver Bancorp invested approximately $1.2 million in community programs.

Challenges and Opportunities

The bank faces challenges such as competition from larger financial institutions and the need to adapt to evolving regulatory environments. However, opportunities exist through digital banking expansion and partnerships with local organizations to enhance service delivery.

How Carver Bancorp, Inc. (CARV) Makes Money

Revenue Streams

Carver Bancorp, Inc., through its subsidiary Carver Federal Savings Bank, generates revenue primarily from interest income, fees, and other financial services.

Interest Income

The principal source of income for Carver Bancorp is interest income from loans made to customers. In 2022, Carver reported total interest income of approximately $31 million.

The breakdown of loan types contributing to this interest income includes:

• Commercial real estate loans: $120 million
• Single-family residential loans: $48 million
• Multifamily loans: $35 million

Non-Interest Income

Non-interest income also significantly contributes to the company's overall earnings. Carver's non-interest income for 2022 was about $5 million, derived from:

• Service fees: $2 million
• ATM and interchange fees: $1 million
• Investment income: $2 million

Cost of Funds

Carver Bancorp earns income on the difference between the interest it pays on deposits and the interest it receives from loans. As of 2022, Carver's cost of funds was 0.25%, reflecting a competitive interest rate environment.

Loan Portfolio Performance

The bank's loan portfolio is vital to its profitability. The total loans outstanding reached approximately $200 million in 2022, with a non-performing loan ratio of 1.5%.

Loan loss provisions for the same year were approximately $1 million to mitigate potential defaults.

Operating Expenses

Operating expenses, which impact overall profitability, totaled around $25 million in 2022, including:

• Salaries and employee benefits: $15 million
• Occupancy costs: $5 million
• Other operating expenses: $5 million

Profit and Earnings

For the fiscal year ending December 31, 2022, Carver Bancorp reported a net income of approximately $10 million, yielding an earnings per share of $0.25.

Balance Sheet Overview

Future Growth Strategies

Carver Bancorp aims to enhance profitability through various strategies, including expanding its lending portfolio, focusing on underserved markets, and offering new financial products and services.