Carver Bancorp Inc. of New York, said Thursday that net income for its second quarter, which ended Sept. 30, fell 69%, to $434,000, largely because of expenses related to its failed attempt to buy Washington's Independence Federal Bancorp.
The $581 million-asset Carver, the nation's largest African-American-owned banking company, said its fiscal 2005 began April 1. Earnings for the first half were $1.6 million, 36% less than a year earlier.
On Tuesday the company officially terminated its deal to buy the $194 million-asset Independence. That was six days after the Office of Thrift Supervision refused to approve the deal, citing concerns about post-acquisition capitalization and profitability.
Carver recorded a $525,000 charge for merger-related expenses, as well as a $685,000 charge to account for the decline in value of the Independence stock it owns.
Those costs were offset by a $1.5 million grant from the Department of the Treasury to assist Carver's operations in underserved neighborhoods.
