Rebounding from a loss at the end of 1998, New York's Carver Bancorp reported a profit for the first three months of this year.
Carver, the nation's largest black-owned financial institution, said it earned $765,000 in the quarter, the fourth of its fiscal year, up from $105,000 in the year-earlier quarter.
The company attributed a $5.7 million loss in the quarter that ended Dec. 31 to troubles in its loan portfolio and a complicated system conversion. Those problems are now over, it said.
"We exited unprofitable businesses and improved asset quality," said David R. Jones, chairman of the $416 million-asset company.
Carver no longer originates unsecured consumer loans and is concentrating on mortgages for single-family and multifamily homes.
The profit could strengthen the Carver board in its efforts to keep the company independent. Last month the board rejected an unsolicited proposal to merge with minority-owned Boston Bank of Commerce. The Boston bank has said it intends to take its proposal to the shareholders at Carver's annual meeting in August.