Carver Bancorp (CARV) in New York reported its third consecutive quarter of profitability, reflecting lower expenses and higher income from asset sales.
The $634 million-asset company earned $410,000 in the second quarter, after losing $361,000 a year earlier, it announced Friday.
Noninterest income more than doubled from a year earlier, to $2.1 million, including $278,000 in securities gains and $490,000 in gains from loan sales. Deposit fees rose 15% from the second quarter of 2012, to $912,000.
Carver's operating expenses fell 20% from a year earlier, to $5.3 million. Compensation costs fell by 13%, largely because of staff cuts. Carver also set aside less cash to repurchase mortgage loans from Fannie Mae.
Net interest income fell 6% from a year earlier, to $4.6 million, as the average loan balance fell 15%, to $365.7 million. The net interest margin expanded by 11 basis points from the second quarter of 2012, to 3.19%.
Nonperforming assets fell 58% from a year earlier, to $30.1 million, and net chargeoffs rose 7%, to $1.5 million. The loan-loss provision was $831,000, compared to $224,000 a year earlier.