Carver Bancorp, Inc., the holding company for Carver Federal Savings Bank, announced financial results for the first quarter 2016 ended June 30, 2015, the first quarter of its fiscal year 2016.
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The company reported net income of $178 thousand for the three months ended June 30, 2015, compared to net income of $173 thousand for the prior year quarter.
This change is attributed to lower non-interest expense and higher net interest income, offset by an increase in the provision for loan losses for the current quarter.
Net interest income increased $384 thousand, or 8.1%, to $5.2 million for the quarter, compared to $4.8 million for the prior year quarter.
Interest income increased $450 thousand, or 7.8%, to $6.2 million for the quarter, compared to $5.8 million for the prior year quarter, driven by a $90 million, or 22.6%, increase in the Bank's average loan balances.
Interest expense increased $66 thousand, or 6.7%, to $1.1 million for the quarter, compared to $992 thousand for the prior year quarter. The increase is primarily due to a $54 thousand, or 7.5%, increase in interest expense on deposits as the Bank grew deposits.
To reflect growth in the Bank's loan portfolio, the company recorded a $117 thousand provision for loan losses for the first quarter, compared to a $781 thousand recovery of loan losses for the prior year quarter. The prior year period also included net recoveries of previously charged-off loans.
Net charge-offs of $487 thousand were recognized for the first quarter, compared to net recoveries of $614 thousand for the prior year quarter.
For the quarter, non-interest income remained relatively unchanged at $1.2 million, decreasing $10 thousand, or 0.8%, compared to the prior year quarter. Lower depository fees were partially offset by other non-interest income during the quarter.
Non-interest expense decreased $509 thousand, or 7.8%, to $6 million for the quarter, compared to $6.5 million for the prior year quarter.
Two factors drove this decrease: federal deposit insurance premiums dropped after the Office of the Comptroller of the Currency lifted its regulatory order on the Bank in November 2014, and the Bank had lower expenses associated with delinquent loans and loan workout in addition to lower other non-interest expense. ■