Carver Bancorp Inc. reported lower net income for the three- and 12-month periods that ended March 31 but said the branches and automated teller machines it has added are beginning to pay off through deposit, loan, and fee income increases.
The $626 million-asset New York company reported Thursday that net income for its fiscal fourth quarter fell 61% from the same period last year, to $392,000. For the full fiscal year, Carver's net income fell 46%, to $2.5 million.
The fiscal 2005 results included $847,000 of merger-related expenses connected to Carver's unsuccessful bid to acquire Independence Federal Savings Bank in Washington. Carver also noted that its salary and benefits costs increased by $1.9 million over the past year as it added personnel to staff three branches that have opened since January 2004. Carver has eight branches, all in New York.
The retail expansion resulted in a 21% increase in deposits since the beginning of fiscal 2004, to $454 million. Carver also said it reversed a two-year downward trend in the number of deposit accounts, which increased 4%.
Commercial and residential mortgages, which make up the bulk of its loan portfolio, rose 21% during fiscal 2005, to $421 million.
