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.
The decline comes amid a tough run for the $697 million-asset Carver, the nation's largest publicly traded, black-operated bank. The company delayed filing its results for the June 30 period after disclosing an error with its accounting.
Carver also said it would restate its 2015 results in light of the error, and was subsequently notified by the Nasdaq that it was at risk of being delisted for delaying its annual report. The company was hit with an enforcement order in May over issues with its anti-money-laundering controls, as well as its commercial real estate concentration.
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.