Showing posts with label Zions' Bancorporation. Show all posts
Showing posts with label Zions' Bancorporation. Show all posts

Friday, August 15, 2008

Positive second qtr 2008 results for Carver

Carver Bancorp, Inc. reported earning $700,000, or 27 cents per share, in the second quarter of 2008. The bank declared a cash dividend of 10 cents per share. This compares favorably to the mammoth writedowns, and the resulting hits to income, large banks are reporting this quarter. For example, according to,

"Salt Lake City-based Zions' Bancorporation..closed down 14.3%, becoming the top loser among financials after a rapid tumble.. The fall in the bank's share price comes after Moody's Investors Service said it was reviewing the company for a downgrade.

Wachovia reported a second-quarter loss of $9.11 billion, or $4.31 a share, last month. Wachovia ended 12% lower as traders beat down the stock on news that the bank is revising lower its second-quarter loss by $500 million pretax. This was to reflect a hit it is likely to take from settlement discussions with regulators of investigations relating to auction-rate securities."

Thus, small, minority banks will, we believe, outperform their larger, non-minority counterparts for the balance of the year.

At Carver, net interest income declined by $400,000, and non-interest expense climbed by $800,000. Non interest income increased by $600,000, and the bank generated an income tax benefit totaling $500,000.

One worrying sign: Carver increased provision for loan losses - non-performing loans at the bank increased. And bank assets fell to $788.7 million, driven lower by declines in cash and cash equivalents.

Carver Bancorp is the holding company for Carver Federal Savings Bank, the largest African American run bank in the United States.