Carver Bancorp Inc 10-Q for FY2024 Q3

Carver Bancorp Inc (CARV)

10-Q 2024-02-14 For: 2023-12-31

Added on April 06, 2026

About this 10-Q

Carver Bancorp Inc filed this 10-Q on February 14, 2024, covering the quarter ended December 31, 2023 (FY2024 Q3).

Headline figures

Quarter ended December 31, 2023, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $731K; up 8.9% from $671K a year earlier
Net income: $19K; compared with a net loss of $1.09M a year earlier
Diluted EPS: $0.00; compared with -$0.25 a year earlier

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Class						Outstanding at February 13, 2024
Common Stock, par value $0.01						4,985,612


		Page
PART I.	FINANCIAL INFORMATION (UNAUDITED)

Item 1.	Financial Statements

	Consolidated Statements of Financial Condition	1

	Consolidated Statements of Operations	2

	Consolidated Statements of Comprehensive Income (Loss)	3

	Consolidated Statement of Changes in Equity	4

	Consolidated Statements of Cash Flows	5

	Notes to Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	32

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	49

Item 4.	Controls and Procedures	49

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	50

Item 1A.	Risk Factors	50

Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	50

Item 3.	Defaults Upon Senior Securities	50

Item 4.	Mine Safety Disclosures	50

Item 5.	Other Information	50

Item 6.	Exhibits	51

SIGNATURES		52


$ in thousands except per share data	December 31, 2023		March 31, 2023
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	74,730	$	42,298
Money market investments	500		254
Total cash and cash equivalents	75,230		42,552

Investment securities:
Available-for-sale, at fair value	49,106		53,843
Held-to-maturity, at amortized cost (fair value of $1,984 and $2,221, respectively)	2,078		2,318

Total investment securities	51,184		56,161



Loans receivable:
Real estate mortgage loans	437,574		423,349
Commercial business loans	172,204		166,908
Consumer loans	14,873		7,639
Loans, gross	624,651		597,896
Allowance for credit losses	(5,897)		(5,229)
Total loans receivable, net	618,754		592,667
Premises and equipment, net	2,660		3,174
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost	2,004		2,266
Accrued interest receivable	2,414		1,911
Right-of-use assets	10,468		12,311
Other assets	12,593		12,182
Total assets	$	775,307	$	723,224

LIABILITIES AND EQUITY
LIABILITIES
Deposits:
Non-interest bearing checking	$	106,408	$	109,401
Interest-bearing deposits:
Interest-bearing checking	47,290		49,473
Savings	109,614		109,210
Money market	165,953		150,348
Certificates of Deposit	231,676		178,694
Escrow	1,876		3,303
Total interest-bearing deposits	556,409		491,028
Total deposits	662,817		600,429
Advances from the FHLB-NY and other borrowed money	46,551		51,090
Operating lease liability	11,270		13,173
Other liabilities	11,943		13,308
Total liabilities	732,581		678,000
Commitments and contingencies (Note 8)	—		—

EQUITY
Preferred stock, (par value $0.01 per share: 10,451 and 13,201 Series D shares, with a liquidation preference of $1,000 per share, issued and outstanding, respectively)	10,451		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, respectively)	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, respectively)	9,000		9,000
Common stock (par value 0.01 per share: 10,000,000 shares authorized; 7,535,339 and 6,799,410 shares issued; 5,031,536 and 4,295,607 shares outstanding, respectively)	76		68
Additional paid-in capital	86,767		82,805
Accumulated deficit	(51,560)		(47,904)
Treasury stock, at cost (2,503,803 shares, respectively)	(2,908)		(2,908)
Accumulated other comprehensive loss	(12,277)		(12,215)
Total equity	42,726		45,224
Total liabilities and equity	$	775,307	$	723,224


	Three Months Ended December 31,				Nine Months Ended December 31,
$ in thousands, except per share data	2023		2022		2023		2022
Interest income:
Loans	$	7,336	$	6,380	$	21,203	$	18,362
Mortgage-backed securities	145		150		439		465
Investment securities	289		273		835		639
Money market investments	704		395		1,801		830
Total interest income	8,474		7,198		24,278		20,296

Interest expense:
Deposits	2,387		1,128		6,112		2,366
Advances and other borrowed money	606		327		1,784		870
Total interest expense	2,993		1,455		7,896		3,236

Net interest income	5,481		5,743		16,382		17,060
(Recovery of) provision for credit losses	(97)		305		77		89
Net interest income after (recovery of) provision for credit losses	5,578		5,438		16,305		16,971

Non-interest income:
Depository fees and charges	543		561		1,678		1,669
Loan fees and service charges	101		72		357		329

Gain on sale of loans, net	—		107		—		107

Grant income	1,401		162		2,003		324


Other	490		90		715		371
Total non-interest income	2,535		992		4,753		2,800

Non-interest expense:
Employee compensation and benefits	3,452		3,239		10,097		9,725
Net occupancy expense	1,147		1,135		3,428		3,394
Equipment, net	470		593		1,534		1,633
Data processing	757		639		2,265		1,903
Consulting fees	133		86		370		400
Federal deposit insurance premiums	132		102		415		292

Other	2,003		1,725		5,937		5,325
Total non-interest expense	8,094		7,519		24,046		22,672

Income (loss) before income taxes	19		(1,089)		(2,988)		(2,901)
Income tax expense	—		—		—		—
Net income (loss)	$	19	$	(1,089)	$	(2,988)	$	(2,901)

Earnings (loss) per common share:
Basic	$	—	$	(0.25)	$	(0.63)	$	(0.68)
Diluted	—		(0.25)		(0.63)		(0.68)


	Three Months Ended December 31,				Nine Months Ended December 31,
$ in thousands	2023		2022		2023		2022
Net income (loss)	$	19	$	(1,089)	$	(2,988)	$	(2,901)
Other comprehensive income (loss), net of tax:
Change in unrealized gain (loss) of securities available-for-sale, net of income tax expense of $0 (due to full valuation allowance)	3,037		(18)		(62)		(7,076)



Total other comprehensive income (loss), net of tax	3,037		(18)		(62)		(7,076)
Total comprehensive income (loss), net of tax	$	3,056	$	(1,107)	$	(3,050)	$	(9,977)


☒						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 December 31, 2023
Balance — September 30, 2023	$	23,178	$	75	$	86,217	$	(51,579)	$	(2,908)	$	(15,314)	$	39,669
Net income	—		—		—		19		—		—		19
Other comprehensive income, net of taxes	—		—		—		—		—		3,037		3,037
Conversion of Series D preferred stock to common stock	(550)		1		549		—		—		—		—






Stock based compensation expense	—		—		1		—		—		—		1
Balance — December 31, 2023	$	22,628	$	76	$	86,767	$	(51,560)	$	(2,908)	$	(12,277)	$	42,726

Nine Months Ended December 31, 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	—		—		—		(2,988)		—		—		(2,988)
Other comprehensive loss, net of taxes	—		—		—		—		—		(62)		(62)
Conversion of Series D preferred stock to common stock	(2,750)		4		2,746		—		—		—		—



Issuance of common stock			4		996								1,000


Stock based compensation expense	—		—		220		—		—		—		220
Balance — December 31, 2023	$	22,628	$	76	$	86,767	$	(51,560)	$	(2,908)	$	(12,277)	$	42,726

Three Months Ended December 31, 2022
Balance — September 30, 2022	$	25,378	$	68	$	82,734	$	(45,315)	$	(2,908)	$	(13,720)	$	46,237
Net loss	—		—		—		(1,089)		—		—		(1,089)
Other comprehensive loss, net of taxes	—		—		—		—		—		(18)		(18)










Balance — December 31, 2022	$	25,378	$	68	$	82,734	$	(46,404)	$	(2,908)	$	(13,738)	$	45,130

Nine Months Ended December 31, 2022
Balance — March 31, 2022	$	25,928	$	67	$	82,165	$	(43,503)	$	(2,908)	$	(6,662)	$	55,087
Net loss	—		—		—		(2,901)		—		—		(2,901)
Other comprehensive loss, net of taxes	—		—		—		—		—		(7,076)		(7,076)

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







Stock based compensation expense	—		—		20		—		—		—		20
Balance — December 31, 2022	$	25,378	$	68	$	82,734	$	(46,404)	$	(2,908)	$	(13,738)	$	45,130


	Three Months Ended December 31,				Nine Months Ended December 31,
$ in thousands except per share data	2023		2022		2023		2022
Net income (loss)	$	19	$	(1,089)	$	(2,988)	$	(2,901)
Less: Participated securities share of undistributed earnings	4		—		—		—
Net income (loss) available to common shareholders	$	15	$	(1,089)	$	(2,988)	$	(2,901)

Weighted average common shares outstanding - basic	5,002,290		4,294,871		4,771,706		4,271,743
Effect of dilutive shares	1,417,536		—		—		—
Weighted average common shares outstanding – diluted	6,419,826		4,294,871		4,771,706		4,271,743

Basic earnings (loss) per common share	$	—	$	(0.25)	$	(0.63)	$	(0.68)
Diluted earnings (loss) per common share	—		(0.25)		(0.63)		(0.68)


$ in thousands	At March 31, 2023		Other Comprehensive Loss, net of tax		At December 31, 2023
Net unrealized loss on securities available-for-sale	$	(12,215)	$	(62)	$	(12,277)


$ in thousands	At March 31, 2022		Other Comprehensive Loss, net of tax		At December 31, 2022
Net unrealized loss on securities available-for-sale	$	(6,662)	$	(7,076)	$	(13,738)


	At December 31, 2023
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	295	$	4	$	(1)	$	298
Federal Home Loan Mortgage Corporation	20,561		—		(4,321)		16,240
Federal National Mortgage Association	11,132		—		(2,149)		8,983
Total mortgage-backed securities	31,988		4		(6,471)		25,521
U.S. Government Agency Securities	6,427		—		(25)		6,402

Corporate Bonds	5,266		—		(2,074)		3,192
Muni Securities	17,702		—		(3,711)		13,991

Total available-for-sale	$	61,383	$	4	$	(12,281)	$	49,106

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	311	$	—	$	(6)	$	305
Federal National Mortgage Association and Other	1,767		—		(88)		1,679


Total held-to maturity	$	2,078	$	—	$	(94)	$	1,984


	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 December 31, 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	$	—	$	—	$	(6,471)	$	25,260	$	(6,471)	$	25,260
U.S. Government Agency securities	—		—		(25)		5,076		(25)		5,076

Corporate bonds	—		—		(2,074)		3,192		(2,074)		3,192

Muni securities	—		—		(3,711)		13,991		(3,711)		13,991

Total available-for-sale securities	$	—	$	—	$	(12,281)	$	47,519	$	(12,281)	$	47,519
Held-to-Maturity:
Mortgage-backed securities	$	—	$	—	$	(94)	$	1,950	$	(94)	$	1,950

Total held-to-maturity securities	$	—	$	—	$	(94)	$	1,950	$	(94)	$	1,950


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

One through five years	1,984		1,971		6.41	%
Five through ten years	2,667		2,326		2.67	%
After ten years	24,744		19,288		3.25	%
Mortgage-backed securities	31,988		25,521		1.65	%
Total	$	61,383	$	49,106	2.52	%
Held-to-maturity:



Mortgage-backed securities	$	2,078	$	1,984	2.79	%


	Nine Months Ended December 31,
$ in thousands	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(2,988)	$	(2,901)

Adjustments to reconcile net loss to net cash used in operating activities:
Provision for credit losses	77		89

Stock based compensation expense	220		20
Depreciation and amortization expense	744		783


Gain on sale of loans, net	—		(107)


Amortization and accretion of loan premiums and discounts and deferred charges, net	155		(78)
Amortization and accretion of premiums and discounts — securities	249		328



Increase in accrued interest receivable	(503)		(99)
(Increase) decrease in other assets	(237)		2,360
Decrease in other liabilities	(1,431)		(9,242)
Net cash used in operating activities	(3,714)		(8,847)
CASH FLOWS FROM INVESTING ACTIVITIES



Proceeds from principal payments, maturities and calls of investments: Available-for-sale	4,430		6,756
Proceeds from principal payments, maturities and calls of investments: Held-to-maturity	236		2,841
Purchase of bank-owned life insurance	—		(5,000)
Increase in equity investments	(603)		—
Loans held-for investment, net of repayments/payoffs and (originations)	2,855		(1,963)
Loans purchased from third parties	(29,467)		(11,199)

Proceeds from participation loans sold	—		5,129

Redemption (purchase) of FHLB-NY stock, net	262		(782)
Purchase of premises and equipment	(236)		(168)


Nine months ended December 31, 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	—		—		—		—		—		(134)		—		(134)
Recoveries	—		—		—		—		52		5		—		57
Provision for (recovery of) Credit Losses	132		5		(106)		1		(244)		289		—		77

Ending Balance	$	2,068	$	722	$	1,211	$	1	$	1,452	$	443	$	—	$	5,897

Allowance for Credit Losses Ending Balance: collectively evaluated for impairment	$	2,068	$	722	$	1,211	$	1	$	1,442	$	443	$	—	$	5,887
Allowance for Credit Losses Ending Balance: individually evaluated for impairment	—		—		—		—		10		—		—		10

Loan Receivables Ending Balance:	$	84,041	$	177,772	$	174,202	$	1,559	$	172,204	$	14,873	$	—	$	624,651
Ending Balance: collectively evaluated for impairment	80,772		175,179		168,265		1,559		159,349		14,853		—		599,977
Ending Balance: individually evaluated for impairment	3,269		2,593		5,937		—		12,855		20		—		24,674


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


Nine months ended December 31, 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	—		—		(586)		—		(130)		—		(716)
Recoveries	90		—		10		53		4		—		157
Provision for (recovery of) Loan Losses	(97)		(34)		464		(637)		124		269		89
Ending Balance	$	724	$	1,080	$	1,045	$	1,913	$	121	$	271	$	5,154


December 31, 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	$	346	$	—	$	2,991	$	3,337	$	80,704	$	84,041
Multifamily	8,758		—		2,543		11,301		166,471		177,772
Commercial real estate	3,533		2,945		5,937		12,415		161,787		174,202
Construction	—		—		—		—		1,559		1,559
Business	3,535		2,137		13,535		19,207		152,997		172,204
Consumer	142		118		18		278		14,595		14,873
Total	$	16,314	$	5,200	$	25,024	$	46,538	$	578,113	$	624,651


	Collateral Type
$ in thousands	Real Estate		Other		Allowance Allocated
One-to-four family	$	3,269	$	—	$	—
Multifamily	2,593		—		—
Commercial real estate	5,937		—		—

Business	12,464		391		10
Consumer	—		20		1
	$	24,263	$	411	$	11


	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 December 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	$	—	$	—	$	142	$	142
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		298		—		298
Federal Home Loan Mortgage Corporation	—		16,240		—		16,240
Federal National Mortgage Association	—		8,983		—		8,983

U.S. Government Agency securities	—		6,402		—		6,402

Corporate bonds	—		3,192		—		3,192
Muni securities	—		13,991		—		13,991

Total available-for-sale securities	—		49,106		—		49,106

Total assets	$	—	$	49,106	$	142	$	49,248


	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, December 31, 2023	Change in Unrealized Gains/(Losses) Related to Instruments Held at December 31, 2023




Mortgage servicing rights	152	(10)	—	—	142	(9)


$ 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, December 31, 2022	Change in Unrealized Gains/(Losses) Related to Instruments Held at December 31, 2022




Mortgage servicing rights	162	(17)	—	—	145	(15)


	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


	December 31, 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	$	75,230	$	75,230	$	75,230	$	—	$	—

Securities available-for-sale	49,106		49,106		—		49,106		—


Securities held-to-maturity	2,078		1,984		—		1,984		—
Loans receivable	618,754		593,659		—		—		593,659

Accrued interest receivable	2,414		2,414		—		2,414		—
Mortgage servicing rights	142		142		—		—		142

Financial Liabilities:
Deposits	$	662,817	$	659,389	$	429,265	$	230,124	$	—
Advances from FHLB-NY	28,027		28,054		—		28,054		—

Other borrowed money	18,403		17,639		—		17,639		—
Accrued interest payable	1,119		1,119		—		1,119		—


	December 31, 2023
Weighted-average remaining lease term
Operating leases	4.6 years
Finance lease	2.6 years

Weighted-average discount rate
Operating leases	3.04	%
Finance lease	4.33	%


$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2024	$	738	$	16
2025	2,705		63
2026	2,687		42
2027	2,440		5
2028	2,259		—
Thereafter	1,276		—
Total lease payments	12,105		126
Interest	(835)		(5)
Lease liability	$	11,270	$	121


	December 31, 2023
($ in thousands)	Amount		Ratio
Tier 1 leverage capital
Regulatory capital	$	72,448	9.77	%
Individual minimum capital requirement	66,738		9.00	%
Minimum capital requirement	29,661		4.00	%
Excess over individual minimum capital requirement	5,710		0.77	%

Common equity Tier 1
Regulatory capital	$	72,448	11.72	%
Minimum capital requirement	43,285		7.00	%
Excess	29,163		4.72	%

Tier 1 risk-based capital
Regulatory capital	$	72,448	11.72	%
Minimum capital requirement	52,561		8.50	%
Excess	19,887		3.22	%

Total risk-based capital
Regulatory capital	$	78,441	12.69	%
Individual minimum capital requirement	74,204		12.00	%
Minimum capital requirement	64,928		10.50	%
Excess over individual minimum capital requirement	4,237		0.69	%


$ 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	(13)
Open claims as of December 31, 2023 (1)	$	1,372


$ in thousands	December 31, 2023
Representation and warranty repurchase reserve, March 31, 2023 (1)	$	95
Net adjustment to reserve for repurchase losses (2)	(7)

Representation and warranty repurchase reserve, December 31, 2023 (1)	$	88


	Three Months Ended December 31,						Nine Months Ended December 31,
Selected Financial Data:	2023			2022			2023			2022
Return on average assets (1)	0.01	%		(0.61)	%		(0.55)	%		(0.55)	%
Return on average stockholders' equity (2)	0.19	%		(9.52)	%		(9.41)	%		(7.75)	%
Return on average stockholders' equity, excluding AOCI (2) (8)	0.14	%		(7.29)	%		(7.12)	%		(6.35)	%
Net interest margin (3)	3.03	%		3.34	%		3.08	%		3.31	%
Interest rate spread (4)	2.60	%		3.09	%		2.66	%		3.13	%
Efficiency ratio (5)	100.97	%		111.64	%		113.77	%		114.16	%
Operating expenses to average assets (6)	4.38	%		4.24	%		4.40	%		4.26	%
Average stockholders' equity to average assets (7)	5.39	%		6.45	%		5.81	%		7.04	%
Average stockholders' equity, excluding AOCI, to average assets (7) (8)	7.46	%		8.43	%		7.68	%		8.58	%
Average interest-earning assets to average interest-bearing liabilities	1.27		x	1.30		x	1.28		x	1.30		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 December 31,
	2023						2022
$ in thousands	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Interest-Earning Assets:
Loans(1)	$	612,243	$	7,336	4.79	%	$	578,490	$	6,380	4.41	%
Mortgage-backed securities	26,919		145		2.15	%	30,070		150		2.00	%
Investment securities(2)	32,229		289		3.59	%	34,117		273		3.20	%


Money market investments	51,107		704		5.47	%	45,863		395		3.42	%
Total interest-earning assets	722,498		8,474		4.69	%	688,540		7,198		4.18	%
Non-interest-earning assets	16,801						20,784
Total assets	$	739,299					$	709,324

Interest-Bearing Liabilities:
Deposits
Interest-bearing checking	$	48,269	$	33	0.27	%	$	56,644	$	20	0.14	%
Savings and clubs	109,929		85		0.31	%	110,349		54		0.19	%
Money market	159,709		594		1.48	%	195,862		613		1.24	%
Certificates of deposit	199,609		1,673		3.33	%	138,054		439		1.26	%
Mortgagors deposits	2,890		2		0.27	%	3,091		2		0.26	%
Total deposits	520,406		2,387		1.82	%	504,000		1,128		0.89	%
Borrowed money	46,821		606		5.13	%	27,534		327		4.71	%
Total interest-bearing liabilities	567,227		2,993		2.09	%	531,534		1,455		1.09	%
Non-interest-bearing liabilities
Demand deposits	107,088						104,801
Other liabilities	25,101						27,246
Total liabilities	699,416						663,581
Stockholders' equity	39,883						45,743
Total liabilities and equity	$	739,299					$	709,324
Net interest income			$	5,481					$	5,743

Average interest rate spread					2.60	%					3.09	%

Net interest margin					3.03	%					3.34	%

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


	For the Nine Months Ended December 31,
	2023						2022
$ in thousands	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Interest-Earning Assets:
Loans(1)	$	603,633	$	21,203	4.68	%	$	571,506	$	18,362	4.28	%
Mortgage-backed securities	27,930		439		2.10	%	33,319		465		1.86	%
Investment securities(2)	33,334		835		3.34	%	35,913		639		2.37	%


Money market investments	44,941		1,801		5.32	%	46,231		830		2.43	%
Total interest-earning assets	709,838		24,278		4.56	%	686,969		20,296		3.94	%
Non-interest-earning assets	18,789						22,571
Total assets	$	728,627					$	709,540

Interest-Bearing Liabilities:
Deposits
Interest-bearing checking	$	50,211	$	51	0.13	%	$	57,831	$	47	0.11	%
Savings and clubs	110,850		195		0.23	%	112,188		139		0.16	%
Money market	154,405		1,631		1.40	%	188,116		1,164		0.82	%
Certificates of deposit	189,453		4,229		2.96	%	136,242		1,015		0.99	%
Mortgagors deposits	2,967		6		0.27	%	3,078		1		0.04	%
Total deposits	507,886		6,112		1.60	%	497,455		2,366		0.63	%
Borrowed money	44,994		1,784		5.26	%	29,681		870		3.89	%
Total interest-bearing liabilities	552,880		7,896		1.90	%	527,136		3,236		0.81	%
Non-interest-bearing liabilities
Demand deposits	108,228						105,164
Other liabilities	25,193						27,310
Total liabilities	686,301						659,610
Stockholders' equity	42,326						49,930
Total liabilities and equity	$	728,627					$	709,540
Net interest income			$	16,382					$	17,060

Average interest rate spread					2.66	%					3.13	%

Net interest margin					3.08	%					3.31	%

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


$ in thousands	Nine Months Ended December 31, 2023			Fiscal Year Ended March 31, 2023			Nine Months Ended December 31, 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)			(586)
Construction	—			—			—
Business	—			—			—
Consumer	(134)			(141)			(130)

Total charge-offs	(134)			(727)			(716)
Add: Recoveries
One-to-four family	—			90			90
Multifamily	—			—			—
Commercial real estate	—			10			10
Construction	—			—			—
Business	52			127			53
Consumer	5			5			4

Total recoveries	57			232			157
Net (charge-offs) recoveries	(77)			(495)			(559)
Provision for (recovery of) credit losses
One-to-four family	132			(105)			(97)
Multifamily	5			(5)			(34)
Commercial real estate	(106)			1,233			464
Construction	1			—			—
Business	(244)			(1,485)			(637)
Consumer	289			462			124
Unallocated	—			—			269
Provision for (recovery of) credit losses	77			100			89
Ending Balance	$	5,897		$	5,229		$	5,154

Ratios:
Net (charge-offs) recoveries to average loans outstanding (annualized)
One-to-four family	—		%	0.13		%	0.18		%
Multifamily	—		%	—		%	—		%
Commercial real estate	—		%	(0.33)		%	(0.44)		%
Construction	—		%	—		%	—		%
Business	0.04		%	0.08		%	0.04		%
Consumer	(1.52)		%	(5.60)		%	(10.69)		%
Total loans	(0.02)		%	(0.09)		%	(0.13)		%

Allowance to total loans	0.94		%	0.87		%	0.88		%
Allowance to nonaccrual loans	21.91		%	42.65		%	41.61		%


	Non Performing Assets

$ in thousands	December 31, 2023			September 30, 2023			June 30, 2023			March 31, 2023			December 31, 2022
Loans accounted for on a nonaccrual basis (1):
Gross loans receivable:
One-to-four family	$	4,295		$	3,942		$	4,154		$	4,001		$	4,066
Multifamily	2,627			1,131			824			71			71
Commercial real estate	5,937			4,522			4,522			7,190			7,275

Business	14,009			6,198			6,098			998			973
Consumer	45			30			1			1			—
Total nonaccrual loans	26,913			15,823			15,599			12,261			12,385
Other non-performing assets (2):
Real estate owned	60			60			60			60			60


Total non-performing assets (3)	$	26,973		$	15,883		$	15,659		$	12,321		$	12,445



Nonaccrual loans to total loans	4.31		%	2.59		%	2.64		%	2.05		%	2.11		%
Non-performing loans to total loans	4.31		%	2.59		%	2.64		%	2.05		%	2.11		%
Non-performing assets to total assets	3.48		%	2.14		%	2.20		%	1.70		%	1.75		%
Allowance to total loans	0.94		%	0.98		%	0.99		%	0.87		%	0.88		%
Allowance to nonaccrual loans	21.91		%	37.96		%	37.55		%	42.65		%	41.61		%

(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 December 31, 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			Employment Agreement by and between Carver Federal Savings Bank and Craig C. MacKa y, dated October 1, 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 December 31, 2023, formatted in XBRL (Extensive Business Reporting Language): (i) Consolidated Statements of Financial Condition as of December 31, 2023 (unaudited) and March 31, 2023; (ii) Consolidated Statements of Operations for the three and nine months ended December 31, 2023 and 2022 (unaudited); (iii) Consolidated Statements of Comprehensive Income/(Loss) for the three and nine months ended December 31, 2023 and 2022 (unaudited); (iv) Consolidated Statements of Changes in Equity for the three and nine months ended December 31, 2023 and 2022 (unaudited); (v) Consolidated Statements of Cash Flows for the nine months ended December 31, 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 December 31, 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 October 3, 2023.