Carver Bancorp (CARV) reported QQ1 2025 revenue of $9.912 million, a 15.94% year‑over‑year increase but a material quarter‑to‑quarter decline of 15.66%. The quarter produced a net loss of $2.212 million and basic earnings per share of −$0.43, with EBITDA of −$1.986 million and an operating margin of −22.3%. The negative bottom line reflects a combination of elevated non‑interest expenses and a relatively heavy interest expense burden, which more than offset the gross profit of $5.949 million on revenue of $9.912 million. Cash flow from operations was negative at $(2.349) million, and free cash flow was $(2.503) million, underscoring cash‑generation challenges in the quarter.
On the balance sheet, total assets stood at $746.51 million and total liabilities at $706.65 million, yielding stockholders’ equity of $39.86 million. The bank maintains a large long‑term investment portfolio (~$622.85 million) alongside $93.29 million of cash and short‑term investments, providing liquidity optionality but implying sensitivity to market movements in the investment book. The equity base remains relatively thin given the size of assets, with a debt‑to‑capitalization of ~0.59 and a debt‑to‑equity ratio of ~1.46, and a price‑to‑book ratio of approximately 0.19, signaling substantial valuation discount versus bank peers.
Management commentary in QQ1 2025 commentary notes a continued focus on balance sheet resilience, liquidity management, and expense discipline, while noting near‑term profitability challenges as the bank strives to stabilize core revenue drivers in a competitive regional market. Investors should monitor revenue mix, cost containment, loan pricing dynamics, and the sensitivity of the vast investment portfolio to interest rate and market movements.