Carver Bancorp Inc 10-Q for FY2023 Q2

Carver Bancorp Inc (CARV)

10-Q 2022-11-14 For: 2022-09-30

Added on April 06, 2026

About this 10-Q

Carver Bancorp Inc filed this 10-Q on November 14, 2022, covering the quarter ended September 30, 2022 (FY2023 Q2).

Headline figures

Quarter ended September 30, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $837K; down 34.0% from $1.27M a year earlier
Net loss: $955K; compared with net income of $1.08M a year earlier
Diluted EPS: -$0.22; compared with $0.19 a year earlier

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Class						Outstanding at November 10, 2022
Common Stock, par value $0.01						4,226,419


		Page
PART I.	FINANCIAL INFORMATION (UNAUDITED)

Item 1.	Financial Statements

	Consolidated Statements of Financial Condition as of September 30, 2022 and March 31, 2022	1

	Consolidated Statements of Operations for the Three and Six Months Ended September 30, 2022 and 2021	2

	Consolidated Statements of Comprehensive Income (Loss) for the Three and Six Months Ended September 30, 2022 and 2021	3

	Consolidated Statement of Changes in Equity for the Three and Six Months Ended September 30, 2022 and 2021	4

	Consolidated Statements of Cash Flows for the Six Months Ended September 30, 2022 and 2021	5

	Notes to Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	28

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	44

Item 4.	Controls and Procedures	44

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	45

Item 1A.	Risk Factors	45

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	45

Item 3.	Defaults Upon Senior Securities	45

Item 4.	Mine Safety Disclosures	45

Item 5.	Other Information	45

Item 6.	Exhibits	46

SIGNATURES		47


$ in thousands except per share data	September 30, 2022		March 31, 2022
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	95,291	$	60,764
Money market investments	254		254
Total cash and cash equivalents	95,545		61,018

Investment securities:
Available-for-sale, at fair value	55,041		67,596
Held-to-maturity, at amortized cost (fair value of $2,361 and $5,276 at September 30, 2022 and March 31, 2022, respectively)	2,511		5,254

Total investment securities	57,552		72,850



Loans receivable:
Real estate mortgage loans	413,674		407,835
Commercial business loans	159,312		170,031
Consumer loans	1,423		1,638
Loans, gross	574,409		579,504
Allowance for loan and lease losses	(5,509)		(5,624)
Total loans receivable, net	568,900		573,880
Premises and equipment, net	3,484		3,775
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost	2,491		584
Accrued interest receivable	1,844		2,414
Right-of-use assets	13,524		13,637
Other assets	12,383		7,156
Total assets	$	755,723	$	735,314

LIABILITIES AND EQUITY
LIABILITIES
Deposits:
Non-interest bearing checking	$	103,741	$	107,472
Interest-bearing deposits:
Interest-bearing checking	56,641		57,985
Savings	109,754		112,305
Money market	208,950		208,122
Certificates of deposit	144,191		139,255
Escrow	3,093		2,978
Total interest-bearing deposits	522,629		520,645
Total deposits	626,370		628,117
Advances from the FHLB-NY and other borrowed money	56,018		15,949
Operating lease liability	14,346		14,393
Other liabilities	12,752		21,768
Total liabilities	709,486		680,227

EQUITY
Preferred stock, (par value $0.01 per share: 13,201 and 13,751 Series D shares, with a liquidation preference of $1,000 per share, issued and outstanding at September 30, 2022 and March 31, 2022, respectively)	13,201		13,751
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, 2022 and March 31, 2022)	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, 2022 and March 31, 2022, respectively)	9,000		9,000
Common stock (par value 0.01 per share: 10,000,000 shares authorized; 6,797,612 and 6,720,618 shares issued; 4,293,809 and 4,216,815 shares outstanding at September 30, 2022 and March 31, 2022, respectively)	68		67
Additional paid-in capital	82,734		82,165
Accumulated deficit	(45,315)		(43,503)
Treasury stock, at cost (2,503,803 shares at September 30, 2022 and March 31, 2022)	(2,908)		(2,908)
Accumulated other comprehensive loss	(13,720)		(6,662)
Total equity	46,237		55,087
Total liabilities and equity	$	755,723	$	735,314


	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands, except per share data	2022		2021		2022		2021
Interest income:
Loans	$	6,005	$	5,323	$	11,982	$	10,162
Mortgage-backed securities	156		158		315		402
Investment securities	201		209		366		434
Money market investments	363		28		435		49
Total interest income	6,725		5,718		13,098		11,047

Interest expense:
Deposits	827		434		1,238		959
Advances and other borrowed money	395		120		543		272
Total interest expense	1,222		554		1,781		1,231

Net interest income	5,503		5,164		11,317		9,816
(Recovery of) provision for loan losses	(189)		204		(216)		276
Net interest income after (recovery of) provision for loan losses	5,692		4,960		11,533		9,540

Non-interest income:
Depository fees and charges	553		592		1,108		1,195
Loan fees and service charges	138		43		257		145



Grant income	162		1,886		162		1,886


Other	246		643		281		1,579
Total non-interest income	1,099		3,164		1,808		4,805

Non-interest expense:
Employee compensation and benefits	3,302		2,994		6,486		5,802
Net occupancy expense	1,175		1,151		2,259		2,238
Equipment, net	526		417		1,040		891
Data processing	648		475		1,264		1,312
Consulting fees	164		206		314		226
Federal deposit insurance premiums	89		83		190		174

Other	1,842		1,714		3,600		5,374
Total non-interest expense	7,746		7,040		15,153		16,017

(Loss) income before income taxes	(955)		1,084		(1,812)		(1,672)
Income tax expense	—		—		—		—
Net (loss) income	$	(955)	$	1,084	$	(1,812)	$	(1,672)

(Loss) income per common share:
Basic	$	(0.22)	$	0.20	$	(0.43)	$	(0.49)
Diluted	(0.22)		0.19		(0.43)		(0.49)


	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands	2022		2021		2022		2021
Net (loss) income	$	(955)	$	1,084	$	(1,812)	$	(1,672)
Other comprehensive (loss) income, net of tax:
Unrealized (loss) gain of securities available-for-sale, net of income tax expense of $0 (due to full valuation allowance)	(3,444)		(628)		(7,058)		1,491



Total other comprehensive (loss) income, net of tax	(3,444)		(628)		(7,058)		1,491
Total comprehensive (loss) income, net of tax	$	(4,399)	$	456	$	(8,870)	$	(181)


☒						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, 2022
Balance — June 30, 2022	$	25,378	$	68	$	82,734	$	(44,360)	$	(2,908)	$	(10,276)	$	50,636
Net loss	—		—		—		(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, 2021
Balance — June 30, 2021	$	24,678	$	60	$	76,328	$	(45,412)	$	(2,908)	$	(1,056)	$	51,690
Net income	—		—		—		1,084		—		—		1,084
Other comprehensive loss, net of taxes	—		—		—		—		—		(628)		(628)

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





Issuance of preferred stock (Series F)	4,000		—		—								4,000
Stock based compensation expense	—		—		72		—		—		—		72
Balance — September 30, 2021	$	28,128	$	61	$	76,949	$	(44,328)	$	(2,908)	$	(1,684)	$	56,218

Six Months Ended September 30, 2021
Balance — March 31, 2021	$	25,778	$	58	$	75,204	$	(42,656)	$	(2,908)	$	(3,175)	$	52,301
Net loss	—		—		—		(1,672)		—		—		(1,672)
Other comprehensive income, net of taxes	—		—		—		—		—		1,491		1,491

Conversion of Series D preferred stock to common stock	(1,650)		2		1,648		—		—		—		—





Issuance of preferred stock (Series F)	4,000		—		—		—		—		—		4,000
Stock based compensation expense	—		1		97		—		—		—		98
Balance — September 30, 2021	$	28,128	$	61	$	76,949	$	(44,328)	$	(2,908)	$	(1,684)	$	56,218


	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands except per share data	2022		2021		2022		2021
Net loss (income)	$	(955)	$	1,084	$	(1,812)	$	(1,672)
Less: Participated securities share of undistributed earnings	—		399		—		—
Net (loss) income available to common shareholders	$	(955)	$	685	$	(1,812)	$	(1,672)

Weighted average common shares outstanding - basic	4,291,672		3,498,861		4,260,178		3,440,827
Effect of dilutive shares	—		2,014,952		—		—
Weighted average common shares outstanding – diluted	4,291,672		5,513,813		4,260,178		3,440,827

Basic (loss) income per common share	$	(0.22)	$	0.20	$	(0.43)	$	(0.49)
Diluted (loss) income per common share	(0.22)		0.19		(0.43)		(0.49)


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


$ in thousands	At March 31, 2021		Other Comprehensive Income, net of tax		At September 30, 2021
Net unrealized income (loss) on securities available-for-sale	$	(3,175)	$	1,491	$	(1,684)


	At September 30, 2022
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	375	$	1	$	1	$	375
Federal Home Loan Mortgage Corporation	22,448		—		4,491		17,957
Federal National Mortgage Association	12,094		—		2,484		9,610
Total mortgage-backed securities	34,917		1		6,976		27,942
U.S. Government Agency Securities	10,743		—		24		10,719

Corporate Bonds	5,270		—		2,297		2,973
Muni Securities	17,730		—		4,422		13,308
Asset-backed Securities	101		—		2		99
Total available-for-sale	$	68,761	$	1	$	13,721	$	55,041

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	399	$	—	$	11	$	388
Federal National Mortgage Association and Other	2,112		—		139		1,973


Total held-to maturity	$	2,511	$	—	$	150	$	2,361


	At March 31, 2022
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	439	$	9	$	—	$	448
Federal Home Loan Mortgage Corporation	23,744		—		2,197		21,547
Federal National Mortgage Association	12,852		—		1,268		11,584

Total mortgage-backed securities	37,035		9		3,465		33,579
U.S. Government Agency Securities	13,864		—		79		13,785
Corporate Bonds	5,271		—		1,150		4,121
Muni Securities	17,741		—		1,973		15,768
Asset-backed Securities	347		—		4		343

Total available-for-sale	$	74,258	$	9	$	6,671	$	67,596

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	481	$	27	$	—	$	508
Federal National Mortgage Association and Other	4,773		9		14		4,768


Total held-to-maturity	$	5,254	$	36	$	14	$	5,276


	At September 30, 2022
	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	$	45	$	1,272	$	6,931	$	26,344	$	6,976	$	27,616
U.S. Government Agency securities	4		4,573		20		6,146		24		10,719

Corporate bonds	—		—		2,297		2,973		2,297		2,973

Muni securities	1,087		4,105		3,335		9,203		4,422		13,308
Asset-backed securities	2		99		—		—		2		99
Total available-for-sale securities	$	1,138	$	10,049	$	12,583	$	44,666	$	13,721	$	54,715
Held-to-Maturity:
Mortgage-backed securities	$	150	$	2,324	$	—	$	—	$	150	$	2,324

Total held-to-maturity securities	$	150	$	2,324	$	—	$	—	$	150	$	2,324


$ in thousands	Amortized Cost		Fair Value		Weighted Average Yield
Available-for-Sale:
Less than one year	$	101	$	99	(0.85)	%
One through five years	—		—		—	%
Five through ten years	6,344		5,965		3.23	%
After ten years	27,399		21,035		2.67	%
Mortgage-backed securities	34,917		27,942		1.53	%
Total	$	68,761	$	55,041	1.99	%
Held-to-maturity:



Mortgage-backed securities	$	2,511	$	2,361	2.77	%


	Six Months Ended September 30,
$ in thousands	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(1,812)	$	(1,672)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
(Recovery of) provision for loan losses	(216)		276

Stock based compensation expense	20		98
Depreciation and amortization expense	521		513





Amortization and accretion of loan premiums and discounts and deferred charges, net	(88)		(59)
Amortization and accretion of premiums and discounts — securities	242		246



Decrease in accrued interest receivable	570		41
(Increase) decrease in other assets	(105)		342
Decrease in other liabilities	(8,990)		(4,487)
Net cash used in operating activities	(9,858)		(4,702)
CASH FLOWS FROM INVESTING ACTIVITIES



Proceeds from principal payments, maturities and calls of investments: Available-for-sale	5,259		7,849
Proceeds from principal payments, maturities and calls of investments: Held-to-maturity	2,738		2,165
Purchase of bank-owned life insurance	(5,000)		—

Loans held-for investment, net of repayments/payoffs and (originations)	14,069		(15,684)
Loans purchased from third parties	(8,901)		(24,910)

Proceeds from participation loans sold	—		3,926

Purchase of FHLB-NY stock, net	(1,907)		(122)
Purchase of premises and equipment	(123)		(134)


	September 30, 2022				March 31, 2022
$ in thousands	Amount		Percent		Amount		Percent
Gross loans receivable:
One-to-four family	$	66,302	11.6	%	$	69,297	12.0	%
Multifamily	171,946		30.1	%	160,800		27.9	%
Commercial real estate	172,341		30.2	%	174,270		30.2	%

Business (1)	159,422		27.9	%	170,497		29.6	%
Consumer (2)	1,409		0.2	%	1,623		0.3	%
Total loans receivable	$	571,420	100.0	%	$	576,487	100.0	%

Unamortized premiums, deferred costs and fees, net	2,989				3,017

Allowance for loan losses	(5,509)				(5,624)
Total loans receivable, net	$	568,900			$	573,880


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


Six 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	$	731	$	1,114	$	1,157	$	2,497	$	123	$	2	$	5,624
Charge-offs	—		—		—		—		(24)		—		(24)
Recoveries	90		—		10		23		2		—		125
Provision for (recovery of) Loan Losses	(117)		(59)		441		(706)		(19)		244		(216)

Ending Balance	$	704	$	1,055	$	1,608	$	1,814	$	82	$	246	$	5,509

Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	$	603	$	1,055	$	1,014	$	1,700	$	82	$	246	$	4,700
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	101		—		594		114		—		—		809

Loan Receivables Ending Balance:	$	67,180	$	173,169	$	173,325	$	159,312	$	1,423	$	—	$	574,409
Ending Balance: collectively evaluated for impairment	61,798		173,169		163,870		153,008		1,423		—		553,268
Ending Balance: individually evaluated for impairment	5,382		—		9,455		6,304		—		—		21,141


$ in thousands	Multifamily		Commercial Real Estate		Business
Credit Risk Profile by Internally Assigned Grade:
Pass	$	171,570	$	163,156	$	145,602
Special Mention	776		714		6,179
Substandard	823		9,455		7,531


Total	$	173,169	$	173,325	$	159,312

			One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing			$	61,798	$	1,423
Non-Performing			5,382		—
Total			$	67,180	$	1,423


September 30, 2022
$ 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	$	—	$	—	$	4,043	$	4,043	$	63,137	$	67,180
Multifamily	—		—		—		—		173,169		173,169
Commercial real estate	4,522		—		4,933		9,455		163,870		173,325

Business	—		—		663		663		158,649		159,312
Consumer	—		39		92		131		1,292		1,423
Total	$	4,522	$	39	$	9,731	$	14,292	$	560,117	$	574,409


	For the Three Months Ended September 30,								For the Six Months Ended September 30,
	2022				2021				2022				2021
$ in thousands	Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized
With no specific allowance recorded:
One-to-four family	$	4,772	$	9	$	3,735	$	3	$	4,617	$	41	$	3,728	$	6
Multifamily	55		—		625		—		257		3		883		—
Commercial real estate	7,008		39		555		—		3,923		82		192		—

Business	1,207		17		2,245		—		1,008		26		2,199		—

With an allowance recorded:
One-to-four family	742		9		75		—		520		23		74		1

Commercial real estate	804		—		—		—		804		—		—		—
Business	5,144		71		5,383		73		5,164		143		5,363		149

Total	$	19,732	$	145	$	12,618	$	76	$	16,293	$	318	$	12,439	$	156


	Fair Value Measurements at September 30, 2022, 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	$	—	$	—	$	157	$	157
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		375		—		375
Federal Home Loan Mortgage Corporation	—		17,957		—		17,957
Federal National Mortgage Association	—		9,610		—		9,610

U.S. Government Agency securities	—		10,719		—		10,719

Corporate bonds	—		2,973		—		2,973
Muni securities	—		13,308		—		13,308
Asset-backed securities	—		99		—		99
Total available-for-sale securities	—		55,041		—		55,041

Total assets	$	—	$	55,041	$	157	$	55,198


	Fair Value Measurements at March 31, 2022, 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	$	—	$	—	$	162	$	162
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		448		—		448
Federal Home Loan Mortgage Corporation	—		21,547		—		21,547
Federal National Mortgage Association	—		11,584		—		11,584

U.S. Government Agency securities	—		13,785		—		13,785
Corporate bonds	—		4,121		—		4,121
Muni securities	—		15,768		—		15,768
Asset-backed securities	—		343		—		343
Total available-for-sale securities	—		67,596		—		67,596

Total assets	$	—	$	67,596	$	162	$	67,758


$ 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)


$ in thousands	Beginning balance, April 1, 2021	Total Realized/Unrealized Gains/(Losses) Recorded in Income (1)	Issuances / (Settlements)	Transfers to/(from) Level 3	Ending balance, September 30, 2021	Change in Unrealized Gains/(Losses) Related to Instruments Held at September 30, 2021




Mortgage servicing rights	147	4	—	—	151	4


	Fair Value Measurements at September 30, 2022 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	$	—	$	—	$	6,964	$	6,964
Other real estate owned	—		—		60		$	60


	September 30, 2022
$ 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	$	95,545	$	95,545	$	95,545	$	—	$	—

Securities available-for-sale	55,041		55,041		—		55,041		—


Securities held-to-maturity	2,511		2,361		—		2,361		—
Loans receivable	568,900		533,604		—		—		533,604

Accrued interest receivable	1,844		1,844		—		1,844		—
Mortgage servicing rights	157		157		—		—		157

Financial Liabilities:
Deposits	$	626,370	$	620,393	$	479,086	$	141,307	$	—
Advances from FHLB of New York	40,000		39,976		—		39,976		—

Other borrowed money	15,903		14,546		—		14,546		—
Accrued interest payable	353		353		—		353		—


	September 30, 2022
Weighted-average remaining lease term
Operating leases	5.7 years
Finance lease	2.6 years

Weighted-average discount rate
Operating leases	3.03	%
Finance lease	2.74	%


$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2023	$	1,382	$	38
2024	2,921		41
2025	2,705		18
2026	2,687		16
2027	2,441		5
Thereafter	3,535		—
Total lease payments	15,671		118
Interest	(1,325)		(3)
Lease liability	$	14,346	$	115


Involvement with SPE (000's)							Funded Exposure				Unfunded Exposure				Total
$ in thousands	Recognized Gain (Loss) (000's)		Total Rights transferred		Significant unconsolidated VIE assets		Total Involvement with SPE asset		Debt Investments		Equity Investments		Funding Commitments				Maximum exposure to loss
Carver Statutory Trust 1 (1)	$	—	$	—	$	13,403	$	13,403	$	13,029	$	403	$	—	$	—	$	13,432


	September 30, 2022
($ in thousands)	Amount		Ratio
Tier 1 leverage capital
Regulatory capital	$	75,790	10.51	%
Individual minimum capital requirement	64,926		9.00	%
Minimum capital requirement	28,856		4.00	%
Excess over individual minimum capital requirement	10,864		1.51	%

Common equity Tier 1
Regulatory capital	$	75,790	13.30	%
Minimum capital requirement	39,894		7.00	%
Excess	35,896		6.30	%

Tier 1 risk-based capital
Regulatory capital	$	75,790	13.30	%
Minimum capital requirement	48,443		8.50	%
Excess	27,347		4.80	%

Total risk-based capital
Regulatory capital	$	81,422	14.29	%
Individual minimum capital requirement	68,390		12.00	%
Minimum capital requirement	59,841		10.50	%
Excess over individual minimum capital requirement	13,032		2.29	%


$ in thousands	Loans sold to FNMA
Open claims as of March 31, 2022 (1)	$	1,363
Gross new demands received	—
Loans repurchased/made whole	—
Demands rescinded	—
Advances on open claims	—
Principal payments received on open claims	29
Open claims as of September 30, 2022 (1)	$	1,392


$ in thousands	September 30, 2022
Representation and warranty repurchase reserve, March 31, 2022 (1)	$	123
Net adjustment to reserve for repurchase losses (2)	(22)

Representation and warranty repurchase reserve, September 30, 2022 (1)	$	101


$ in thousands
Commitments to fund mortgage loans	$	2,400

Lines of credit	4,399

Commitment to fund private equity investment	253
Total	$	7,052


	Three Months Ended September 30,						Six Months Ended September 30,
Selected Financial Data:	2022			2021			2022			2021
Return on average assets (1)	(0.53)	%		0.63	%		(0.51)	%		(0.49)	%
Return on average stockholders' equity (2)	(7.51)	%		8.32	%		(6.96)	%		(6.37)	%
Return on average stockholders' equity, excluding AOCI (2) (8)	(6.27)	%		8.21	%		(5.90)	%		(6.19)	%
Net interest margin (3)	3.14	%		3.14	%		3.30	%		2.97	%
Interest rate spread (4)	2.94	%		3.02	%		3.14	%		2.83	%
Efficiency ratio (5)	117.33	%		84.53	%		115.45	%		109.55	%
Operating expenses to average assets (6)	4.29	%		4.11	%		4.27	%		4.66	%
Average stockholders' equity to average assets (7)	7.04	%		7.62	%		7.33	%		7.65	%
Average stockholders' equity, excluding AOCI, to average assets (7) (8)	8.43	%		7.71	%		8.66	%		7.87	%
Average interest-earning assets to average interest-bearing liabilities	1.29		x	1.37		x	1.31		x	1.36		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.


$ in thousands	Six Months Ended September 30, 2022			Fiscal Year Ended March 31, 2022			Six Months Ended September 30, 2021
Beginning Balance	5,624			$	5,140		$	5,140
Less: Charge-offs
One-to-four family	—			—			—
Multifamily	—			—			—
Commercial real estate	—			—			—
Business	—			—			—
Consumer	(24)			(257)			(99)
Total charge-offs	(24)			(257)			(99)
Add: Recoveries
One-to-four family	90			13			—
Multifamily	—			—			—
Commercial real estate	10			—			—
Business	23			102			50
Consumer	2			23			20
Unallocated	—			—			128
Total recoveries	125			138			198
Net recoveries (charge-offs)	101			(119)			99
Provision for (recovery of) loan losses	(216)			603			276
Ending Balance	$	5,509		$	5,624		$	5,515

Ratios:
Net recoveries (charge-offs) to average loans outstanding (annualized)
One-to-four family	0.26		%	0.02		%	—		%
Multifamily	—		%	—		%	—		%
Commercial real estate	0.01		%	—		%	—		%
Business	0.03		%	0.06		%	0.06		%
Consumer	(2.86)		%	(11.55)		%	(7.13)		%
Total loans	0.04		%	(0.02)		%	0.04		%

Allowance to total loans	0.96		%	0.97		%	1.06		%
Allowance to nonaccrual loans	36.50		%	46.43		%	82.04		%


	Non Performing Assets

$ in thousands	September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021			September 30, 2021
Loans accounted for on a nonaccrual basis (1):
Gross loans receivable:
One-to-four family	$	4,371		$	4,600		$	4,892		$	4,919		$	3,500
Multifamily	—			109			515			516			882
Commercial real estate	9,455			6,170			4,601			185			192

Business	1,179			1,234			1,448			2,091			2,148
Consumer	87			—			25			57			—
Total nonaccrual loans	15,092			12,113			11,481			7,768			6,722
Other non-performing assets (2):
Real estate owned	60			60			60			60			60


Total non-performing assets (3)	$	15,152		$	12,173		$	11,541		$	7,828		$	6,782



Nonaccrual loans to total loans	2.63		%	2.18		%	1.98		%	1.41		%	1.29		%
Non-performing loans to total loans	2.63		%	2.18		%	1.98		%	1.41		%	1.29		%
Non-performing assets to total assets	2.00		%	1.76		%	1.57		%	1.08		%	0.96		%
Allowance to total loans	0.96		%	1.01		%	0.97		%	0.99		%	1.06		%
Allowance to nonaccrual loans	36.50		%	46.26		%	48.99		%	70.65		%	82.04		%

(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) Troubled debt restructured loans 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, 2022, there were $6.2 million TDR 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)
			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, 2022, formatted in XBRL (Extensive Business Reporting Language): (i) Consolidated Statements of Financial Condition as of September 30, 2022 (unaudited) and March 31, 2022; (ii) Consolidated Statements of Operations for the three and six months ended September 30, 2022 and 2021 (unaudited); (iii) Consolidated Statements of Comprehensive Income/(Loss) for the three and six months ended September 30, 2022 and 2021 (unaudited); (iv) Consolidated Statements of Changes in Equity for the three and six months ended September 30, 2022 and 2021 (unaudited); (v) Consolidated Statements of Cash Flows for the six months ended September 30, 2022 and 2021 (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, 2022, 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.