Carver Bancorp Inc 10-Q for FY2024 Q2

Carver Bancorp Inc (CARV)

10-Q 2023-11-14 For: 2023-09-30

Added on April 06, 2026

About this 10-Q

Carver Bancorp Inc filed this 10-Q on November 14, 2023, covering the quarter ended September 30, 2023 (FY2024 Q2).

Headline figures

Quarter ended September 30, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $767K; down 8.4% from $837K a year earlier
Net loss: $1.59M; compared with a net loss of $955K a year earlier
Diluted EPS: -$0.33; compared with -$0.22 a year earlier

Search and read filings like this one from Claude or ChatGPT with the SEC filings MCP server →


Class						Outstanding at November 10, 2023
Common Stock, par value $0.01						4,918,347


		Page
PART I.	FINANCIAL INFORMATION (UNAUDITED)

Item 1.	Financial Statements

	Consolidated Statements of Financial Condition as of September 30, 2023 and March 31, 2023	1

	Consolidated Statements of Operations for the Three and Six Months Ended September 30, 2023 and 2022	2

	Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended September 30, 2023 and 2022	3

	Consolidated Statement of Changes in Equity for the Three and Six Months Ended September 30, 2023 and 2022	4

	Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2023 and 2022	5

	Notes to Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	46

Item 4.	Controls and Procedures	46

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	47

Item 1A.	Risk Factors	47

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	47

Item 3.	Defaults Upon Senior Securities	47

Item 4.	Mine Safety Disclosures	47

Item 5.	Other Information	47

Item 6.	Exhibits	48

SIGNATURES		49


$ in thousands except per share data	September 30, 2023		March 31, 2023
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	51,935	$	42,298
Money market investments	254		254
Total cash and cash equivalents	52,189		42,552

Investment securities:
Available-for-sale, at fair value	47,644		53,843
Held-to-maturity, at amortized cost (fair value of $2,005 and $2,221 at September 30, 2023 and March 31, 2023, respectively)	2,162		2,318

Total investment securities	49,806		56,161



Loans receivable:
Real estate mortgage loans	435,723		423,349
Commercial business loans	162,460		166,908
Consumer loans	12,919		7,639
Loans, gross	611,102		597,896
Allowance for credit losses	(6,007)		(5,229)
Total loans receivable, net	605,095		592,667
Premises and equipment, net	2,810		3,174
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost	2,004		2,266
Accrued interest receivable	2,078		1,911
Right-of-use assets	11,087		12,311
Other assets	17,711		12,182
Total assets	$	742,780	$	723,224

LIABILITIES AND EQUITY
LIABILITIES
Deposits:
Non-interest bearing checking	$	112,644	$	109,401
Interest-bearing deposits:
Interest-bearing checking	52,239		49,473
Savings	109,361		109,210
Money market	163,588		150,348
Certificates of Deposit	189,949		178,694
Escrow	2,672		3,303
Total interest-bearing deposits	517,809		491,028
Total deposits	630,453		600,429
Advances from the FHLB-NY and other borrowed money	46,566		51,090
Operating lease liability	11,911		13,173
Other liabilities	14,181		13,308
Total liabilities	703,111		678,000

EQUITY
Preferred stock, (par value $0.01 per share: 11,001 and 13,201 Series D shares, with a liquidation preference of $1,000 per share, issued and outstanding at September 30, 2023 and March 31, 2023, respectively)	11,001		13,201
Preferred stock (par value $0.01 per share: 3,177 Series E shares, with a liquidation preference of $1,000 per share, issued and outstanding at September 30, 2023 and March 31, 2023)	3,177		3,177
Preferred stock (par value $0.01 per share: 9,000 Series F shares, with a liquidation preference of $1,000 per share, issued and outstanding at September 30, 2023 and March 31, 2023)	9,000		9,000
Common stock (par value 0.01 per share: 10,000,000 shares authorized; 7,468,074 and 6,799,410 shares issued; 4,964,271 and 4,295,607 shares outstanding at September 30, 2023 and March 31, 2023, respectively)	75		68
Additional paid-in capital	86,217		82,805
Accumulated deficit	(51,579)		(47,904)
Treasury stock, at cost (2,503,803 shares at September 30, 2023 and March 31, 2023)	(2,908)		(2,908)
Accumulated other comprehensive loss	(15,314)		(12,215)
Total equity	39,669		45,224
Total liabilities and equity	$	742,780	$	723,224


	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands, except per share data	2023		2022		2023		2022
Interest income:
Loans	$	7,056	$	6,005	$	13,867	$	11,982
Mortgage-backed securities	145		156		294		315
Investment securities	245		201		546		366
Money market investments	564		363		1,097		435
Total interest income	8,010		6,725		15,804		13,098

Interest expense:
Deposits	2,011		827		3,725		1,238
Advances and other borrowed money	600		395		1,178		543
Total interest expense	2,611		1,222		4,903		1,781

Net interest income	5,399		5,503		10,901		11,317
Provision for (recovery of) credit losses	168		(189)		174		(216)
Net interest income after provision for (recovery of) credit losses	5,231		5,692		10,727		11,533

Non-interest income:
Depository fees and charges	558		553		1,135		1,108
Loan fees and service charges	192		138		256		257



Grant income	582		162		602		162


Other	131		246		225		281
Total non-interest income	1,463		1,099		2,218		1,808

Non-interest expense:
Employee compensation and benefits	3,324		3,302		6,645		6,486
Net occupancy expense	1,176		1,175		2,281		2,259
Equipment, net	587		526		1,064		1,040
Data processing	757		648		1,508		1,264
Consulting fees	137		164		237		314
Federal deposit insurance premiums	155		89		283		190

Other	2,144		1,842		3,934		3,600
Total non-interest expense	8,280		7,746		15,952		15,153

Loss before income taxes	(1,586)		(955)		(3,007)		(1,812)
Income tax expense	—		—		—		—
Net loss	$	(1,586)	$	(955)	$	(3,007)	$	(1,812)

Loss per common share:
Basic	$	(0.33)	$	(0.22)	$	(0.65)	$	(0.43)
Diluted	(0.33)		(0.22)		(0.65)		(0.43)


	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands	2023		2022		2023		2022
Net loss	$	(1,586)	$	(955)	$	(3,007)	$	(1,812)
Other comprehensive loss, net of tax:
Change in unrealized loss of securities available-for-sale, net of income tax expense of $0 (due to full valuation allowance)	(2,306)		(3,444)		(3,099)		(7,058)



Total other comprehensive loss, net of tax	(2,306)		(3,444)		(3,099)		(7,058)
Total comprehensive loss, net of tax	$	(3,892)	$	(4,399)	$	(6,106)	$	(8,870)


☒						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


$ in thousands	Preferred Stock		Common Stock		Additional Paid-In Capital		Accumulated Deficit		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Equity
Three Months Ended September 30, 2023
Balance — June 30, 2023	$	23,728	$	70	$	84,628	$	(49,993)	$	(2,908)	$	(13,008)	$	42,517
Net loss	—		—		—		(1,586)		—		—		(1,586)
Other comprehensive loss, net of taxes	—		—		—		—		—		(2,306)		(2,306)
Conversion of Series D preferred stock to common stock	(550)		1		549		—		—		—		—



Issuance of common stock			4		996								1,000


Stock based compensation expense	—		—		44		—		—		—		44
Balance — September 30, 2023	$	23,178	$	75	$	86,217	$	(51,579)	$	(2,908)	$	(15,314)	$	39,669

Six Months Ended September 30, 2023
Balance — March 31, 2023	$	25,378	$	68	$	82,805	$	(47,904)	$	(2,908)	$	(12,215)	$	45,224
Cumulative effect adjustment for adoption of ASU 2016-13	—		—		—		(668)		—		—		(668)
Net loss	—		—		—		(3,007)		—		—		(3,007)
Other comprehensive loss, net of taxes	—		—		—		—		—		(3,099)		(3,099)
Conversion of Series D preferred stock to common stock	(2,200)		3		2,197		—		—		—		—



Issuance of common stock			4		996								1,000


Stock based compensation expense	—		—		219		—		—		—		219
Balance — September 30, 2023	$	23,178	$	75	$	86,217	$	(51,579)	$	(2,908)	$	(15,314)	$	39,669

Three Months Ended September 30, 2022
Balance — June 30, 2022	$	25,378	$	68	$	82,734	$	(44,360)	$	(2,908)	$	(10,276)	$	50,636
Net income	—		—		—		(955)		—		—		(955)
Other comprehensive loss, net of taxes	—		—		—		—		—		(3,444)		(3,444)










Balance — September 30, 2022	$	25,378	$	68	$	82,734	$	(45,315)	$	(2,908)	$	(13,720)	$	46,237

Six Months Ended September 30, 2022
Balance — March 31, 2022	$	25,928	$	67	$	82,165	$	(43,503)	$	(2,908)	$	(6,662)	$	55,087
Net loss	—		—		—		(1,812)		—		—		(1,812)
Other comprehensive loss, net of taxes	—		—		—		—		—		(7,058)		(7,058)

Conversion of Series D preferred stock to common stock	(550)		1		549		—		—		—		—







Stock based compensation expense	—		—		20		—		—		—		20
Balance — September 30, 2022	$	25,378	$	68	$	82,734	$	(45,315)	$	(2,908)	$	(13,720)	$	46,237


	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands except per share data	2023		2022		2023		2022
Net loss	$	(1,586)	$	(955)	$	(3,007)	$	(1,812)



Weighted average common shares outstanding - basic	4,816,046		4,291,672		4,656,414		4,260,178

Weighted average common shares outstanding – diluted	4,816,046		4,291,672		4,656,414		4,260,178

Basic loss per common share	$	(0.33)	$	(0.22)	$	(0.65)	$	(0.43)
Diluted loss per common share	(0.33)		(0.22)		(0.65)		(0.43)


$ in thousands	At March 31, 2023		Other Comprehensive Loss, net of tax		At September 30, 2023
Net unrealized loss on securities available-for-sale	$	(12,215)	$	(3,099)	$	(15,314)


$ in thousands	At March 31, 2022		Other Comprehensive Loss, net of tax		At September 30, 2022
Net unrealized loss on securities available-for-sale	$	(6,662)	$	(7,058)	$	(13,720)


	At September 30, 2023
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	300	$	—	$	3	$	297
Federal Home Loan Mortgage Corporation	20,920		—		5,248		15,672
Federal National Mortgage Association	11,276		—		2,770		8,506
Total mortgage-backed securities	32,496		—		8,021		24,475
U.S. Government Agency Securities	7,488		—		25		7,463

Corporate Bonds	5,267		—		2,523		2,744
Muni Securities	17,707		—		4,745		12,962

Total available-for-sale	$	62,958	$	—	$	15,314	$	47,644

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	326	$	—	$	18	$	308
Federal National Mortgage Association and Other	1,836		—		139		1,697


Total held-to maturity	$	2,162	$	—	$	157	$	2,005


	At March 31, 2023
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	341	$	1	$	1	$	341
Federal Home Loan Mortgage Corporation	21,651		—		4,051		17,600
Federal National Mortgage Association	11,714		—		2,212		9,502

Total mortgage-backed securities	33,706		1		6,264		27,443
U.S. Government Agency Securities	9,364		—		38		9,326
Corporate Bonds	5,269		—		2,177		3,092
Muni Securities	17,719		—		3,737		13,982


Total available-for-sale	$	66,058	$	1	$	12,216	$	53,843

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	366	$	—	$	3	$	363
Federal National Mortgage Association and Other	1,952		—		94		1,858


Total held-to-maturity	$	2,318	$	—	$	97	$	2,221


	At September 30, 2023
	Less than 12 months				12 months or longer				Total
$ in thousands	Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value
Available-for-Sale:
Mortgage-backed securities	$	1	$	258	$	8,020	$	24,217	$	8,021	$	24,475
U.S. Government Agency securities	—		—		25		7,462		25		7,462

Corporate bonds	—		—		2,523		2,744		2,523		2,744

Muni securities	—		—		4,745		12,962		4,745		12,962

Total available-for-sale securities	$	1	$	258	$	15,313	$	47,385	$	15,314	$	47,643
Held-to-Maturity:
Mortgage-backed securities	$	—	$	—	$	157	$	1,971	$	157	$	1,971

Total held-to-maturity securities	$	—	$	—	$	157	$	1,971	$	157	$	1,971


$ in thousands	Amortized Cost		Fair Value		Weighted Average Yield
Available-for-Sale:

One through five years	2,185		2,173		6.05	%
Five through ten years	2,670		2,174		2.67	%
After ten years	25,607		18,822		3.47	%
Mortgage-backed securities	32,496		24,475		1.62	%
Total	$	62,958	$	47,644	2.60	%
Held-to-maturity:



Mortgage-backed securities	$	2,162	$	2,005	2.81	%


	Six Months Ended September 30,
$ in thousands	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(3,007)	$	(1,812)

Adjustments to reconcile net loss to net cash used in operating activities:
Provision for (recovery of) credit losses	174		(216)

Stock based compensation expense	219		20
Depreciation and amortization expense	523		521





Amortization and accretion of loan premiums and discounts and deferred charges, net	126		(88)
Amortization and accretion of premiums and discounts — securities	186		242



(Increase) decrease in accrued interest receivable	(167)		570
Increase in other assets	(5,892)		(105)
Increase (decrease) in other liabilities	823		(8,990)
Net cash used in operating activities	(7,015)		(9,858)
CASH FLOWS FROM INVESTING ACTIVITIES



Proceeds from principal payments, maturities and calls of investments: Available-for-sale	2,917		5,259
Proceeds from principal payments, maturities and calls of investments: Held-to-maturity	153		2,738
Purchase of bank-owned life insurance	—		(5,000)

Loans held-for investment, net of repayments/payoffs and (originations)	13,890		14,069
Loans purchased from third parties	(26,956)		(8,901)



Redemption (purchase) of FHLB-NY stock, net	262		(1,907)
Purchase of premises and equipment	(165)		(123)


Six months ended September 30, 2023
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Construction		Business		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	716	$	1,109	$	1,814	$	—	$	1,139	$	449	$	2	$	5,229
Impact of CECL adoption	1,220		(392)		(497)		—		505		(166)		(2)		668
Charge-offs	—		—		—		—		—		(117)		—		(117)
Recoveries	—		—		—		—		50		3		—		53
Provision for (recovery of) Credit Losses	328		4		(105)		—		(301)		248		—		174

Ending Balance	$	2,264	$	721	$	1,212	$	—	$	1,393	$	417	$	—	$	6,007

Allowance for Credit Losses Ending Balance: collectively evaluated for impairment	$	2,241	$	721	$	1,212	$	—	$	1,383	$	417	$	—	$	5,974
Allowance for Credit Losses Ending Balance: individually evaluated for impairment	23		—		—		—		10		—		—		33

Loan Receivables Ending Balance:	$	85,081	$	179,039	$	171,112	$	491	$	162,460	$	12,919	$	—	$	611,102
Ending Balance: collectively evaluated for impairment	80,791		176,439		166,590		491		156,307		12,915		—		593,533
Ending Balance: individually evaluated for impairment	4,290		2,600		4,522		—		6,153		4		—		17,569


At March 31, 2023
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total





Allowance for Loan Losses Ending Balance:	$	716	$	1,109	$	1,814	$	1,139	$	449	$	2	$	5,229
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	607		1,109		1,814		937		449		2		4,918
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	109		—		—		202		—		—		311

Loan Receivables Ending Balance:	$	65,808	$	179,117	$	178,424	$	166,908	$	7,639	$	—	$	597,896
Ending Balance: collectively evaluated for impairment	60,805		179,046		171,234		160,985		7,638		—		579,708
Ending Balance: individually evaluated for impairment	5,003		71		7,190		5,923		1		—		18,188


Three months ended September 30, 2022
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	649	$	1,053	$	1,108	$	2,321	$	113	$	360	$	5,604
Charge-offs	—		—		—		—		(11)		—		(11)
Recoveries	90		—		10		4		1		—		105
Provision for (recovery of) Loan Losses	(35)		2		490		(511)		(21)		(114)		(189)
Ending Balance	$	704	$	1,055	$	1,608	$	1,814	$	82	$	246	$	5,509


September 30, 2023
$ in thousands	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivables
One-to-four family	$	—	$	203	$	2,668	$	2,871	$	82,210	$	85,081
Multifamily	—		487		1,070		1,557		177,482		179,039
Commercial real estate	—		—		4,522		4,522		166,590		171,112
Construction	—		—		—		—		491		491
Business	88		12,608		2,645		15,341		147,119		162,460
Consumer	7		3		1		11		12,908		12,919
Total	$	95	$	13,301	$	10,906	$	24,302	$	586,800	$	611,102


	Collateral Type
$ in thousands	Real Estate		Other		Allowance Allocated
One-to-four family	$	4,290	$	—	$	23
Multifamily	2,600		—		—
Commercial real estate	4,522		—		—

Business	5,775		379		10
Consumer	—		3		—
	$	17,187	$	382	$	33


	At March 31, 2023
$ in thousands		Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Balance		Interest Income Recognized
With no specific allowance recorded:
One-to-four family		$	3,972	$	4,567	$	—	$	3,861	$	111
Multifamily		71		71		—		220		—
Commercial real estate		7,190		7,378		—		4,054		36

Business		1,114		1,146		—		1,723		—
Consumer		1		1		—		—		—
With an allowance recorded:
One-to-four family		1,031		1,031		109		554		41



Business		4,809		4,820		202		5,116		316

Total		$	18,188	$	19,014	$	311	$	15,528	$	504


	Fair Value Measurements at September 30, 2023, Using
$ in thousands	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Mortgage servicing rights	$	—	$	—	$	151	$	151
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		297		—		297
Federal Home Loan Mortgage Corporation	—		15,672		—		15,672
Federal National Mortgage Association	—		8,506		—		8,506

U.S. Government Agency securities	—		7,463		—		7,463

Corporate bonds	—		2,744		—		2,744
Muni securities	—		12,962		—		12,962

Total available-for-sale securities	—		47,644		—		47,644

Total assets	$	—	$	47,644	$	151	$	47,795


	Fair Value Measurements at March 31, 2023, Using
$ in thousands	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Mortgage servicing rights	$	—	$	—	$	152	$	152
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		341		—		341
Federal Home Loan Mortgage Corporation	—		17,600		—		17,600
Federal National Mortgage Association	—		9,502		—		9,502

U.S. Government Agency securities	—		9,326		—		9,326
Corporate bonds	—		3,092		—		3,092
Muni securities	—		13,982		—		13,982

Total available-for-sale securities	—		53,843		—		53,843

Total assets	$	—	$	53,843	$	152	$	53,995


$ in thousands	Beginning balance, April 1, 2023	Total Realized/Unrealized Gains/(Losses) Recorded in Income (1)	Issuances / (Settlements)	Transfers to/(from) Level 3	Ending balance, September 30, 2023	Change in Unrealized Gains/(Losses) Related to Instruments Held at September 30, 2023




Mortgage servicing rights	152	(1)	—	—	151	(2)


$ in thousands	Beginning balance, April 1, 2022	Total Realized/Unrealized Gains/(Losses) Recorded in Income (1)	Issuances / (Settlements)	Transfers to/(from) Level 3	Ending balance, September 30, 2022	Change in Unrealized Gains/(Losses) Related to Instruments Held at September 30, 2022




Mortgage servicing rights	162	(5)	—	—	157	(5)


	Fair Value Measurements at March 31, 2023, Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
$ in thousands	(Level 1)		(Level 2)		(Level 3)

Impaired loans	$	—	$	—	$	5,529	$	5,529
Other real estate owned	—		—		60		$	60


	September 30, 2023
$ in thousands	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	52,189	$	52,189	$	52,189	$	—	$	—

Securities available-for-sale	47,644		47,644		—		47,644		—


Securities held-to-maturity	2,162		2,005		—		2,005		—
Loans receivable	605,095		569,278		—		—		569,278

Accrued interest receivable	2,078		2,078		—		2,078		—
Mortgage servicing rights	151		151		—		—		151

Financial Liabilities:
Deposits	$	630,453	$	625,401	$	437,832	$	187,569	$	—
Advances from FHLB-NY	28,027		28,037		—		28,037		—

Other borrowed money	18,403		16,867		—		16,867		—
Accrued interest payable	1,197		1,197		—		1,197		—


	September 30, 2023
Weighted-average remaining lease term
Operating leases	4.8 years
Finance lease	2.5 years

Weighted-average discount rate
Operating leases	3.04	%
Finance lease	4.32	%


$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2024	$	1,468	$	33
2025	2,705		63
2026	2,687		42
2027	2,440		5
2028	2,259		—
Thereafter	1,276		—
Total lease payments	12,835		143
Interest	(924)		(7)
Lease liability	$	11,911	$	136


	September 30, 2023
($ in thousands)	Amount		Ratio
Tier 1 leverage capital
Regulatory capital	$	71,884	9.90	%
Individual minimum capital requirement	65,333		9.00	%
Minimum capital requirement	29,037		4.00	%
Excess over individual minimum capital requirement	6,551		0.90	%

Common equity Tier 1
Regulatory capital	$	71,884	11.95	%
Minimum capital requirement	42,123		7.00	%
Excess	29,761		4.95	%

Tier 1 risk-based capital
Regulatory capital	$	71,884	11.95	%
Minimum capital requirement	51,149		8.50	%
Excess	20,735		3.45	%

Total risk-based capital
Regulatory capital	$	77,988	12.96	%
Individual minimum capital requirement	72,211		12.00	%
Minimum capital requirement	63,184		10.50	%
Excess over individual minimum capital requirement	5,777		0.96	%


$ in thousands	Loans sold to FNMA
Open claims as of March 31, 2023 (1)	$	1,385
Gross new demands received	—
Loans repurchased/made whole	—
Demands rescinded	—
Advances on open claims	—
Principal payments received on open claims	(8)
Open claims as of September 30, 2023 (1)	$	1,377


$ in thousands	September 30, 2023
Representation and warranty repurchase reserve, March 31, 2023 (1)	$	95
Net adjustment to reserve for repurchase losses (2)	(5)

Representation and warranty repurchase reserve, September 30, 2023 (1)	$	90


	Three Months Ended September 30,						Six Months Ended September 30,
Selected Financial Data:	2023			2022			2023			2022
Return on average assets (1)	(0.87)	%		(0.53)	%		(0.83)	%		(0.51)	%
Return on average stockholders' equity (2)	(14.91)	%		(7.51)	%		(13.81)	%		(6.96)	%
Return on average stockholders' equity, excluding AOCI (2) (8)	(11.32)	%		(6.27)	%		(10.66)	%		(5.90)	%
Net interest margin (3)	3.06	%		3.14	%		3.10	%		3.30	%
Interest rate spread (4)	2.64	%		2.94	%		2.70	%		3.14	%
Efficiency ratio (5)	120.66	%		117.33	%		121.59	%		115.45	%
Operating expenses to average assets (6)	4.57	%		4.29	%		4.41	%		4.27	%
Average stockholders' equity to average assets (7)	5.86	%		7.04	%		6.02	%		7.33	%
Average stockholders' equity, excluding AOCI, to average assets (7) (8)	7.72	%		8.43	%		7.80	%		8.66	%
Average interest-earning assets to average interest-bearing liabilities	1.29		x	1.29		x	1.29		x	1.31		x

(1) Net income (loss), annualized, divided by average total assets.
(2) Net income (loss), annualized, divided by average total stockholders' equity.
(3) Net interest income, annualized, divided by average interest-earning assets.
(4) Combined weighted average interest rate earned less combined weighted average interest rate cost.
(5) Operating expense divided by sum of net interest income and non-interest income.
(6) Non-interest expense, annualized, divided by average total assets.
(7) Total average stockholders' equity divided by total average assets for the period.
(8) See Non-GAAP Financial Measures disclosure for comparable GAAP measures.


	For the Three Months Ended September 30,
	2023						2022
$ in thousands	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Interest-Earning Assets:
Loans(1)	$	602,891	$	7,056	4.68	%	$	569,074	$	6,005	4.22	%
Mortgage-backed securities	27,586		145		2.10	%	33,174		156		1.88	%
Investment securities(2)	33,407		245		2.93	%	37,692		201		2.13	%


Money market investments	41,642		564		5.37	%	60,378		363		2.39	%
Total interest-earning assets	705,526		8,010		4.54	%	700,318		6,725		3.84	%
Non-interest-earning assets	19,807						21,973
Total assets	$	725,333					$	722,291

Interest-Bearing Liabilities:
Deposits
Interest-bearing checking	$	51,496	$	9	0.07	%	$	58,561	$	20	0.14	%
Savings and clubs	110,975		65		0.23	%	111,960		54		0.19	%
Money market	149,918		550		1.46	%	183,698		422		0.91	%
Certificates of deposit	186,477		1,385		2.95	%	139,703		329		0.93	%
Mortgagors deposits	2,429		2		0.33	%	2,604		2		0.30	%
Total deposits	501,295		2,011		1.59	%	496,526		827		0.66	%
Borrowed money	44,999		600		5.29	%	44,654		395		3.51	%
Total interest-bearing liabilities	546,294		2,611		1.90	%	541,180		1,222		0.90	%
Non-interest-bearing liabilities
Demand deposits	111,736						104,086
Other liabilities	24,767						26,164
Total liabilities	682,797						671,430
Stockholders' equity	42,536						50,861
Total liabilities and equity	$	725,333					$	722,291
Net interest income			$	5,399					$	5,503

Average interest rate spread					2.64	%					2.94	%

Net interest margin					3.06	%					3.14	%

(1) Includes nonaccrual loans
(2) Includes FHLB-NY stock


	For the Six Months Ended September 30,
	2023						2022
$ in thousands	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Interest-Earning Assets:
Loans(1)	$	599,305	$	13,867	4.63	%	$	567,995	$	11,982	4.22	%
Mortgage-backed securities	28,438		294		2.07	%	34,952		316		1.81	%
Investment securities(2)	33,890		546		3.22	%	36,816		366		1.99	%


Money market investments	41,841		1,097		5.23	%	46,416		434		1.86	%
Total interest-earning assets	703,474		15,804		4.49	%	686,179		13,098		3.82	%
Non-interest-earning assets	19,788						23,470
Total assets	$	723,262					$	709,649

Interest-Bearing Liabilities:
Deposits
Interest-bearing checking	$	51,187	$	18	0.07	%	$	58,427	$	28	0.10	%
Savings and clubs	111,313		110		0.20	%	113,113		85		0.15	%
Money market	151,739		1,038		1.36	%	184,222		551		0.60	%
Certificates of deposit	184,347		2,555		2.76	%	135,330		575		0.85	%
Mortgagors deposits	3,006		4		0.27	%	3,072		(1)		(0.06)	%
Total deposits	501,592		3,725		1.48	%	494,164		1,238		0.50	%
Borrowed money	44,075		1,178		5.33	%	30,761		543		3.52	%
Total interest-bearing liabilities	545,667		4,903		1.79	%	524,925		1,781		0.68	%
Non-interest-bearing liabilities
Demand deposits	108,801						105,347
Other liabilities	25,240						27,342
Total liabilities	679,708						657,614
Stockholders' equity	43,554						52,035
Total liabilities and equity	$	723,262					$	709,649
Net interest income			$	10,901					$	11,317

Average interest rate spread					2.70	%					3.14	%

Net interest margin					3.10	%					3.30	%

(1) Includes nonaccrual loans
(2) Includes FHLB-NY stock


$ in thousands	Six Months Ended September 30, 2023			Fiscal Year Ended March 31, 2023			Six Months Ended September 30, 2022
Beginning Balance	$	5,229		$	5,624		$	5,624
Impact of CECL adoption	668
Less: Charge-offs
One-to-four family	—			—			—
Multifamily	—			—			—
Commercial real estate	—			(586)			—
Construction	—			—			—
Business	—			—			—
Consumer	(117)			(141)			(24)

Total charge-offs	(117)			(727)			(24)
Add: Recoveries
One-to-four family	—			90			90
Multifamily	—			—			—
Commercial real estate	—			10			10
Construction	—			—			—
Business	50			127			23
Consumer	3			5			2

Total recoveries	53			232			125
Net (charge-offs) recoveries	(64)			(495)			101
Provision for (recovery of) credit losses
One-to-four family	328			(105)			(117)
Multifamily	4			(5)			(59)
Commercial real estate	(105)			1,233			441
Construction	—			—			—
Business	(301)			(1,485)			(706)
Consumer	248			462			(19)
Unallocated	—			—			244
Provision for (recovery of) credit losses	174			100			(216)
Ending Balance	$	6,007		$	5,229		$	5,509

Ratios:
Net recoveries (charge-offs) to average loans outstanding (annualized)
One-to-four family	—		%	0.13		%	0.26		%
Multifamily	—		%	—		%	—		%
Commercial real estate	—		%	(0.33)		%	0.01		%
Construction	—		%	—		%	—		%
Business	0.06		%	0.08		%	0.03		%
Consumer	(2.26)		%	(5.60)		%	(2.86)		%
Total loans	(0.02)		%	(0.09)		%	0.04		%

Allowance to total loans	0.98		%	0.87		%	0.96		%
Allowance to nonaccrual loans	37.96		%	42.65		%	36.50		%


	Non Performing Assets

$ in thousands	September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022
Loans accounted for on a nonaccrual basis (1):
Gross loans receivable:
One-to-four family	$	3,942		$	4,154		$	4,001		$	4,066		$	4,371
Multifamily	1,131			824			71			71			—
Commercial real estate	4,522			4,522			7,190			7,275			9,455

Business	6,198			6,098			998			973			1,179
Consumer	30			1			1			—			87
Total nonaccrual loans	15,823			15,599			12,261			12,385			15,092
Other non-performing assets (2):
Real estate owned	60			60			60			60			60


Total non-performing assets (3)	$	15,883		$	15,659		$	12,321		$	12,445		$	15,152



Nonaccrual loans to total loans	2.59		%	2.64		%	2.05		%	2.11		%	2.63		%
Non-performing loans to total loans	2.59		%	2.64		%	2.05		%	2.11		%	2.63		%
Non-performing assets to total assets	2.14		%	2.20		%	1.70		%	1.75		%	2.01		%
Allowance to total loans	0.98		%	0.99		%	0.87		%	0.88		%	0.96		%
Allowance to nonaccrual loans	37.96		%	37.55		%	42.65		%	41.61		%	36.50		%

(1) Nonaccrual status denotes any loan where the delinquency exceeds 90 days past due, or in the opinion of management, the collection of contractual interest and/or principal is doubtful. Payments received on a nonaccrual loan are either applied to the outstanding principal balance or recorded as interest income, depending on assessment of the ability to collect on the loan.
(2) Other non-performing assets generally represent loans that the Bank is in the process of selling and has designated held-for-sale or property acquired by the Bank in settlement of loans less costs to sell (i.e., through foreclosure, repossession or as an in-substance foreclosure). These assets are recorded at the lower of their cost or fair value.
(3) Modified loans to borrowers experiencing financial difficulty that are performing in accordance with their modified terms for less than six months and those not performing in accordance with their modified terms are considered nonaccrual and are included in the nonaccrual category in the table above. At September 30, 2023, there were $5.8 million of these modified loans that have performed in accordance with their modified terms for a period of at least six months. These loans are generally considered performing loans and are not presented in the table above.


3.1			Certificate of Incorporation of Carver Bancorp, Inc. (1)
3.2			Certificate of Amendment to the Certificate of Incorporation of Carver Bancorp, Inc. (2)
3.3			Second Amended and Restated Bylaws of Carver Bancorp, Inc. (3)
4.1			Stock Certificate of Carver Bancorp, Inc. (1)
4.2			Certificate of Designation for Mandatorily Convertible Non-Voting Participating Preferred Stock Series C and Convertible Non-Cumulative Non-Voting Participating Preferred Stock, Series D of Carver Bancorp, Inc. (4)
4.3			Certificate of Amendment to the Certificate of Incorporation of Carver Bancorp, Inc.(5)
4.4			Certificate of Designations of Non-Cumulative Non-Voting Participating Preferred Stock, Series E, par value $0.01 per share (6)
4.5			Certificate of Amendment of Certificate of Designations of Non-Cumulative Non-Voting Participating Preferred Stock, Series E, par value $0.01 per share (7)
4.6			Amended and Restated Certificate of Designations of Non-Cumulative Non-Voting Participating Preferred Stock, Series F, par value $0.01 per share (8)
10.1			Investment Agreement, by and between Carver Bancorp, Inc. and National Community Investment Fund, dated July 19, 2023 (9)
31.1			Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)
31.2			Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)
32.1			Certification of Chief Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350
32.2			Certification of Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350
101			The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, formatted in XBRL (Extensive Business Reporting Language): (i) Consolidated Statements of Financial Condition as of September 30, 2023 (unaudited) and March 31, 2023; (ii) Consolidated Statements of Operations for the three and six months ended September 30, 2023 and 2022 (unaudited); (iii) Consolidated Statements of Comprehensive Income/(Loss) for the three and six months ended September 30, 2023 and 2022 (unaudited); (iv) Consolidated Statements of Changes in Equity for the three and six months ended September 30, 2023 and 2022 (unaudited); (v) Consolidated Statements of Cash Flows for the six months ended September 30, 2023 and 2022 (unaudited); and (vi) Notes to Consolidated Financial Statements.
104			The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended September 30, 2023, formatted in Inline XBRL.

(1)			Incorporated herein by reference from the Exhibits to the Form S-4, Registration Statement and amendments thereto, initially filed on June 7, 1996, Registration No. 333-5559.
(2)			Incorporated herein by reference from the Exhibits to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 1, 2011.
(3)			Incorporated herein by reference from the Exhibits to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2006.
(4)			Incorporated herein by reference to Exhibit 3.1 to the Registrant's Report on Form 8-K filed with the Securities and Exchange Commission filed on July 6, 2011.
(5)			Incorporated herein by reference to Exhibit 3.1 to the Registrant's Report on Form 8-K filed with the Securities and Exchange Commission filed on November 1, 2011.
(6)			Incorporated herein by reference to Exhibit 3.1 to the Registrant's Report on Form 8-K filed with the Securities and Exchange Commission filed on February 1, 2021.
(7)			Incorporated herein by reference to Exhibit 3.2 to the Registrant's Report on Form 8-K filed with the Securities and Exchange Commission filed on February 1, 2021.
(8)			Incorporated herein by reference to Exhibit 3.1 to the Registrant's Report on Form 8-K filed with the Securities and Exchange Commission filed on September 30, 2021.
(9)			Incorporated herein by reference to Exhibit 10.1 to the Registrant's Report on Form 8-K filed with the Securities and Exchange Commission filed on July 20, 2023.