In a belated regulatory filing, Carver Bancorp in New York said its profits in the quarter that ended June 30 fell 8% from a year earlier, to $408,000, due to a double-digit increase in expenses.
According to the filing, published late Monday, noninterest expenses rose 13% during the second quarter, to $6.6 million, because of a mix of higher compensation and compliance costs.
Fee-based income dipped 3%, to $1.2 million, amid lower service charges and gains on the sale of loans.
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Carver Bancorp in New York is dealing with a new set of challenges just months after being released from a longstanding enforcement order. The companys woes highlight the challenges for banks with narrowly constrained business models.
July 29 -
Executives at several minority-owned community banks nationwide, including OneUnited Bank in Boston and Carver Federal Savings Bank in New York, say they have received a windfall of deposits in recent weeks, coinciding with the introduction of the Black Money Matters Project.
July 20 -
Carver Bancorp in New York has entered into a formal agreement with the Office of the Comptroller of the Currency that includes mandates tied to the Bank Secrecy Act and commercial real estate.
May 27
The decline comes amid a
Carver also said it would
On a more positive note, net interest income rose 10%, to $5.7 million. The company also reported a $204,000 recovery, compared with a provision of $34,000 for loan losses in the prior year.
The net interest margin expanded by 3 basis points, to 3.17%.
In a press release, Carver said it is "making efforts" to reduce its commercial real estate concentration, citing a 6% reduction in total assets compared with the previous quarter, mostly from loan payoffs and paydowns.