Carver Bancorp Inc 10-Q for FY2023 Q3

Carver Bancorp Inc (CARV)

10-Q 2023-02-14 For: 2022-12-31

Added on April 06, 2026

About this 10-Q

Carver Bancorp Inc filed this 10-Q on February 14, 2023, covering the quarter ended December 31, 2022 (FY2023 Q3).

Headline figures

Quarter ended December 31, 2022, as reported in this filing, compared with the same period a year earlier where the filing states it.

Revenue: $671K; down 54.0% from $1.46M a year earlier
Net loss: $1.09M; compared with net income of $696K a year earlier
Diluted EPS: -$0.25; compared with $0.13 a year earlier

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Class						Outstanding at February 13, 2022
Common Stock, par value $0.01						4,226,619


		Page
PART I.	FINANCIAL INFORMATION (UNAUDITED)

Item 1.	Financial Statements

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

	Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2022 and 2021	2

	Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended December 31, 2022 and 2021	3

	Consolidated Statement of Changes in Equity for the Three and Nine Months Ended December 31, 2022 and 2021	4

	Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2022 and 2021	5

	Notes to Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	29

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	45

Item 4.	Controls and Procedures	45

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	46

Item 1A.	Risk Factors	46

Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	46

Item 3.	Defaults Upon Senior Securities	46

Item 4.	Mine Safety Disclosures	46

Item 5.	Other Information	46

Item 6.	Exhibits	47

SIGNATURES		48


$ in thousands except per share data	December 31, 2022		March 31, 2022
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	43,658	$	60,764
Money market investments	254		254
Total cash and cash equivalents	43,912		61,018

Investment securities:
Available-for-sale, at fair value	53,443		67,596
Held-to-maturity, at amortized cost (fair value of $2,282 and $5,276 at December 31, 2022 and March 31, 2022, respectively)	2,406		5,254

Total investment securities	55,849		72,850



Loans receivable:
Real estate mortgage loans	417,008		407,835
Commercial business loans	167,602		170,031
Consumer loans	2,139		1,638
Loans, gross	586,749		579,504
Allowance for loan and lease losses	(5,154)		(5,624)
Total loans receivable, net	581,595		573,880
Premises and equipment, net	3,267		3,775
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost	1,366		584
Accrued interest receivable	2,513		2,414
Right-of-use assets	12,918		13,637
Other assets	10,822		7,156
Total assets	$	712,242	$	735,314

LIABILITIES AND EQUITY
LIABILITIES
Deposits:
Non-interest bearing checking	$	105,647	$	107,472
Interest-bearing deposits:
Interest-bearing checking	56,668		57,985
Savings	108,907		112,305
Money market	183,944		208,122
Certificates of Deposit	152,283		139,255
Escrow	1,798		2,978
Total interest-bearing deposits	503,600		520,645
Total deposits	609,247		628,117
Advances from the FHLB-NY and other borrowed money	31,000		15,949
Operating lease liability	13,770		14,393
Other liabilities	13,095		21,768
Total liabilities	667,112		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 December 31, 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 December 31, 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 December 31, 2022 and March 31, 2022, respectively)	9,000		9,000
Common stock (par value 0.01 per share: 10,000,000 shares authorized; 6,799,410 and 6,720,618 shares issued; 4,295,607 and 4,216,815 shares outstanding at December 31, 2022 and March 31, 2022, respectively)	68		67
Additional paid-in capital	82,734		82,165
Accumulated deficit	(46,404)		(43,503)
Treasury stock, at cost (2,503,803 shares at December 31, 2022 and March 31, 2022)	(2,908)		(2,908)
Accumulated other comprehensive loss	(13,738)		(6,662)
Total equity	45,130		55,087
Total liabilities and equity	$	712,242	$	735,314


	Three Months Ended December 31,				Nine Months Ended December 31,
$ in thousands, except per share data	2022		2021		2022		2021
Interest income:
Loans	$	6,380	$	5,379	$	18,362	$	15,541
Mortgage-backed securities	150		150		465		552
Investment securities	273		109		639		543
Money market investments	395		27		830		76
Total interest income	7,198		5,665		20,296		16,712

Interest expense:
Deposits	1,128		476		2,366		1,435
Advances and other borrowed money	327		117		870		389
Total interest expense	1,455		593		3,236		1,824

Net interest income	5,743		5,072		17,060		14,888
(Recovery of) provision for loan losses	(281)		192		(497)		468
Net interest income after (recovery of) provision for loan losses	6,024		4,880		17,557		14,420

Non-interest income:
Depository fees and charges	561		432		1,669		1,627
Loan fees and service charges	72		54		329		199

Loss on sale of loans, net	(479)		—		(479)		—

Grant income	162		203		324		2,089


Other	90		1,142		371		2,721
Total non-interest income	406		1,831		2,214		6,636

Non-interest expense:
Employee compensation and benefits	3,239		2,793		9,725		8,595
Net occupancy expense	1,135		1,080		3,394		3,318
Equipment, net	593		408		1,633		1,299
Data processing	639		160		1,903		1,472
Consulting fees	86		112		400		338
Federal deposit insurance premiums	102		92		292		266

Other	1,725		1,370		5,325		6,744
Total non-interest expense	7,519		6,015		22,672		22,032

(Loss) income before income taxes	(1,089)		696		(2,901)		(976)
Income tax expense	—		—		—		—
Net (loss) income	$	(1,089)	$	696	$	(2,901)	$	(976)

(Loss) income per common share:
Basic	$	(0.25)	$	0.13	$	(0.68)	$	(0.28)
Diluted	(0.25)		0.13		(0.68)		(0.28)


	Three Months Ended December 31,				Nine Months Ended December 31,
$ in thousands	2022		2021		2022		2021
Net (loss) income	$	(1,089)	$	696	$	(2,901)	$	(976)
Other comprehensive (loss) income, net of tax:
Unrealized (loss) gain on securities available-for-sale, net of income tax expense of $0 (due to full valuation allowance)	(18)		(198)		(7,076)		1,293



Total other comprehensive (loss) income, net of tax	(18)		(198)		(7,076)		1,293
Total comprehensive (loss) income, net of tax	$	(1,107)	$	498	$	(9,977)	$	317


☒						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, 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, 2021
Balance — September 30, 2021	$	28,128	$	61	$	76,949	$	(44,328)	$	(2,908)	$	(1,684)	$	56,218
Net income	—		—		—		696		—		—		696
Other comprehensive loss, net of taxes	—		—		—		—		—		(198)		(198)

Conversion of Series D preferred stock to common stock	(1,100)		1		1,099		—		—		—		—

At-the-market "ATM" offering, net of offering costs	—		1		957		—		—		—		958





Stock based compensation expense	—		—		24		—		—		—		24
Balance — December 31, 2021	$	27,028	$	63	$	79,029	$	(43,632)	$	(2,908)	$	(1,882)	$	57,698

Nine Months Ended December 31, 2021
Balance — March 31, 2021	$	25,778	$	58	$	75,204	$	(42,656)	$	(2,908)	$	(3,175)	$	52,301
Net loss	—		—		—		(976)		—		—		(976)
Other comprehensive income, net of taxes	—		—		—		—		—		1,293		1,293

Conversion of Series D preferred stock to common stock	(2,750)		3		2,747		—		—		—		—

At-the-market "ATM" offering, net of offering costs	—		1		957		—		—		—		958




Issuance of preferred stock (Series F)	4,000		—		—		—		—		—		4,000
Stock based compensation expense	—		1		121		—		—		—		122
Balance — December 31, 2021	$	27,028	$	63	$	79,029	$	(43,632)	$	(2,908)	$	(1,882)	$	57,698


	Three Months Ended December 31,				Nine Months Ended December 31,
$ in thousands except per share data	2022		2021		2022		2021
Net loss (income)	$	(1,089)	$	696	$	(2,901)	$	(976)
Less: Participated securities share of undistributed earnings	—		240		—		—
Net (loss) income available to common shareholders	$	(1,089)	$	456	$	(2,901)	$	(976)

Weighted average common shares outstanding - basic	4,294,871		3,573,707		4,271,743		3,485,120
Effect of dilutive shares	—		1,877,422		—		—
Weighted average common shares outstanding – diluted	4,294,871		5,451,129		4,271,743		3,485,120

Basic (loss) income per common share	$	(0.25)	$	0.13	$	(0.68)	$	(0.28)
Diluted (loss) income per common share	(0.25)		0.13		(0.68)		(0.28)


$ 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)


$ in thousands	At March 31, 2021		Other Comprehensive Income, net of tax		At December 31, 2021
Net unrealized income (loss) on securities available-for-sale	$	(3,175)	$	1,293	$	(1,882)


	At December 31, 2022
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	347	$	—	$	4	$	343
Federal Home Loan Mortgage Corporation	22,012		—		4,518		17,494
Federal National Mortgage Association	11,868		—		2,357		9,511
Total mortgage-backed securities	34,227		—		6,879		27,348
U.S. Government Agency Securities	9,860		—		38		9,822

Corporate Bonds	5,269		—		2,324		2,945
Muni Securities	17,724		—		4,496		13,228
Asset-backed Securities	101		—		1		100
Total available-for-sale	$	67,181	$	—	$	13,738	$	53,443

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	384	$	—	$	8	$	376
Federal National Mortgage Association and Other	2,022		—		116		1,906


Total held-to maturity	$	2,406	$	—	$	124	$	2,282


	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 December 31, 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	$	41	$	1,225	$	6,838	$	26,123	$	6,879	$	27,348
U.S. Government Agency securities	12		4,107		26		5,715		38		9,822

Corporate bonds	—		—		2,324		2,945		2,324		2,945

Muni securities	456		2,222		4,040		11,006		4,496		13,228
Asset-backed securities	—		—		1		100		1		100
Total available-for-sale securities	$	509	$	7,554	$	13,229	$	45,889	$	13,738	$	53,443
Held-to-Maturity:
Mortgage-backed securities	$	124	$	2,246	$	—	$	—	$	124	$	2,246

Total held-to-maturity securities	$	124	$	2,246	$	—	$	—	$	124	$	2,246


$ in thousands	Amortized Cost		Fair Value		Weighted Average Yield
Available-for-Sale:
Less than one year	$	101	$	100	(0.85)	%
One through five years	—		—		—	%
Five through ten years	6,127		5,655		4.08	%
After ten years	26,726		20,340		3.10	%
Mortgage-backed securities	34,227		27,348		1.59	%
Total	$	67,181	$	53,443	2.26	%
Held-to-maturity:



Mortgage-backed securities	$	2,406	$	2,282	2.74	%


	Nine Months Ended December 31,
$ in thousands	2022		2021
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(2,901)	$	(976)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
(Recovery of) provision for loan losses	(497)		468

Stock based compensation expense	20		122
Depreciation and amortization expense	783		770


Loss on sale of loans, net	479		—


Amortization and accretion of loan premiums and discounts and deferred charges, net	(78)		(209)
Amortization and accretion of premiums and discounts — securities	328		474



Increase in accrued interest receivable	(99)		(48)
Decrease (increase) in other assets	2,360		(1,995)
Decrease in other liabilities	(9,242)		(3,045)
Net cash used in operating activities	(8,847)		(4,439)
CASH FLOWS FROM INVESTING ACTIVITIES



Proceeds from principal payments, maturities and calls of investments: Available-for-sale	6,756		12,013
Proceeds from principal payments, maturities and calls of investments: Held-to-maturity	2,841		2,375
Purchase of bank-owned life insurance	(5,000)		—

Loans held-for investment, net of repayments/payoffs and (originations)	(1,963)		(30,962)
Loans purchased from third parties	(11,199)		(44,410)

Proceeds from participation loans sold	5,129		6,080

Purchase of FHLB-NY stock, net	(782)		(32)
Purchase of premises and equipment	(168)		(181)


	December 31, 2022				March 31, 2022
$ in thousands	Amount		Percent		Amount		Percent
Gross loans receivable:
One-to-four family	$	65,291	11.2	%	$	69,297	12.0	%
Multifamily	176,480		30.2	%	160,800		27.9	%
Commercial real estate	172,468		29.5	%	174,270		30.2	%

Business (1)	167,700		28.7	%	170,497		29.6	%
Consumer (2)	2,127		0.4	%	1,623		0.3	%
Total loans receivable	$	584,066	100.0	%	$	576,487	100.0	%

Unamortized premiums, deferred costs and fees, net	2,683				3,017

Allowance for loan losses	(5,154)				(5,624)
Total loans receivable, net	$	581,595			$	573,880


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	—		—		—		—		(130)		—		(130)
Recoveries	90		—		10		53		4		—		157
Provision for (recovery of) Loan Losses	(97)		(34)		(122)		(637)		124		269		(497)

Ending Balance	$	724	$	1,080	$	1,045	$	1,913	$	121	$	271	$	5,154

Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	$	621	$	1,080	$	1,045	$	1,761	$	121	$	271	$	4,899
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	103		—		—		152		—		—		255

Loan Receivables Ending Balance:	$	66,142	$	177,647	$	173,219	$	167,602	$	2,139	$	—	$	586,749
Ending Balance: collectively evaluated for impairment	61,045		177,576		165,944		161,635		2,139		—		568,339
Ending Balance: individually evaluated for impairment	5,097		71		7,275		5,967		—		—		18,410


At March 31, 2022
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total





Allowance for Loan Losses Ending Balance:	$	731	$	1,114	$	1,157	$	2,497	$	123	$	2	$	5,624
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	731		1,114		1,157		2,428		123		2		5,555
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	—		—		—		69		—		—		69

Loan Receivables Ending Balance:	$	70,261	$	162,261	$	175,313	$	170,031	$	1,638	$	—	$	579,504
Ending Balance: collectively evaluated for impairment	65,369		161,746		175,313		163,991		1,638		—		568,057
Ending Balance: individually evaluated for impairment	4,892		515		—		6,040		—		—		11,447


$ in thousands	Multifamily		Commercial Real Estate		Business
Credit Risk Profile by Internally Assigned Grade:
Pass	$	175,990	$	165,237	$	154,280
Special Mention	771		707		6,136
Substandard	886		7,275		7,186


Total	$	177,647	$	173,219	$	167,602

			One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing			$	61,045	$	2,139
Non-Performing			5,097		—
Total			$	66,142	$	2,139


December 31, 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	$	—	$	233	$	3,968	$	4,201	$	61,941	$	66,142
Multifamily	2,991		—		71		3,062		174,585		177,647
Commercial real estate	3,238		1,237		7,274		11,749		161,470		173,219

Business	8,443		—		464		8,907		158,695		167,602
Consumer	33		121		—		154		1,985		2,139
Total	$	14,705	$	1,591	$	11,777	$	28,073	$	558,676	$	586,749


	For the Three Months Ended December 31,								For the Nine Months Ended December 31,
	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	$	4,204	$	2	$	4,429	$	13	$	4,479	$	40	$	4,443	$	19
Multifamily	36		—		699		9		293		—		442		9
Commercial real estate	7,560		33		188		7		3,637		107		551		7

Business	1,174		10		2,125		24		1,003		44		2,212		24

With an allowance recorded:
One-to-four family	1,035		9		73		—		516		31		74		1

Commercial real estate	804		—		—		—		—		—		—		—
Business	4,962		67		5,293		—		5,001		202		5,333		149

Total	$	19,775	$	121	$	12,807	$	53	$	14,929	$	424	$	13,055	$	209


	Fair Value Measurements at December 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	$	—	$	—	$	145	$	145
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		343		—		343
Federal Home Loan Mortgage Corporation	—		17,494		—		17,494
Federal National Mortgage Association	—		9,511		—		9,511

U.S. Government Agency securities	—		9,822		—		9,822

Corporate bonds	—		2,945		—		2,945
Muni securities	—		13,228		—		13,228
Asset-backed securities	—		100		—		100
Total available-for-sale securities	—		53,443		—		53,443

Total assets	$	—	$	53,443	$	145	$	53,588


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




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


$ 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, December 31, 2021	Change in Unrealized Gains/(Losses) Related to Instruments Held at December 31, 2021




Mortgage servicing rights	147	(15)	—	—	132	(14)


	Fair Value Measurements at December 31, 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	$	—	$	—	$	5,575	$	5,575
Other real estate owned	—		—		60		$	60


	December 31, 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	$	43,912	$	43,912	$	43,912	$	—	$	—

Securities available-for-sale	53,443		53,443		—		53,443		—


Securities held-to-maturity	2,406		2,282		—		2,282		—
Loans receivable	581,595		546,749		—		—		546,749

Accrued interest receivable	2,513		2,513		—		2,513		—
Mortgage servicing rights	145		145		—		—		145

Financial Liabilities:
Deposits	$	609,247	$	604,416	$	455,166	$	149,250	$	—
Advances from FHLB of New York	15,000		15,000		—		15,000		—

Other borrowed money	15,903		14,565		—		14,565		—
Accrued interest payable	152		152		—		152		—


	December 31, 2022
Weighted-average remaining lease term
Operating leases	5.4 years
Finance lease	2.8 years

Weighted-average discount rate
Operating leases	3.03	%
Finance lease	2.78	%


$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2023	$	700	$	19
2024	2,921		41
2025	2,705		18
2026	2,687		16
2027	2,441		6
Thereafter	3,535		—
Total lease payments	14,989		100
Interest	(1,219)		(3)
Lease liability	$	13,770	$	97


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	$	13,038	$	403	$	—	$	—	$	13,441


	December 31, 2022
($ in thousands)	Amount		Ratio
Tier 1 leverage capital
Regulatory capital	$	75,042	10.57	%
Individual minimum capital requirement	63,885		9.00	%
Minimum capital requirement	28,393		4.00	%
Excess over individual minimum capital requirement	11,157		1.57	%

Common equity Tier 1
Regulatory capital	$	75,042	12.84	%
Minimum capital requirement	40,920		7.00	%
Excess	34,122		5.84	%

Tier 1 risk-based capital
Regulatory capital	$	75,042	12.84	%
Minimum capital requirement	49,689		8.50	%
Excess	25,353		4.34	%

Total risk-based capital
Regulatory capital	$	80,304	13.74	%
Individual minimum capital requirement	70,149		12.00	%
Minimum capital requirement	61,380		10.50	%
Excess over individual minimum capital requirement	10,155		1.74	%


$ 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	26
Open claims as of December 31, 2022 (1)	$	1,389


$ in thousands	December 31, 2022
Representation and warranty repurchase reserve, March 31, 2022 (1)	$	123
Net adjustment to reserve for repurchase losses (2)	(25)

Representation and warranty repurchase reserve, December 31, 2022 (1)	$	98


$ in thousands


Lines of credit	$	3,488

Commitment to fund private equity investment	253
Total	$	3,741


	Three Months Ended December 31,						Nine Months Ended December 31,
Selected Financial Data:	2022			2021			2022			2021
Return on average assets (1)	(0.61)	%		0.39	%		(0.55)	%		(0.19)	%
Return on average stockholders' equity (2)	(9.52)	%		4.86	%		(7.75)	%		(2.40)	%
Return on average stockholders' equity, excluding AOCI (2) (8)	(7.29)	%		4.72	%		(6.35)	%		(2.34)	%
Net interest margin (3)	3.34	%		2.95	%		3.31	%		2.96	%
Interest rate spread (4)	3.09	%		2.82	%		3.12	%		2.82	%
Efficiency ratio (5)	122.28	%		87.14	%		117.63	%		102.36	%
Operating expenses to average assets (6)	4.24	%		3.38	%		4.26	%		4.22	%
Average stockholders' equity to average assets (7)	6.45	%		8.05	%		7.04	%		7.78	%
Average stockholders' equity, excluding AOCI, to average assets (7) (8)	8.43	%		8.28	%		8.58	%		8.01	%
Average interest-earning assets to average interest-bearing liabilities	1.30		x	1.40		x	1.30		x	1.37		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	Nine Months Ended December 31, 2022			Fiscal Year Ended March 31, 2022			Nine Months Ended December 31, 2021
Beginning Balance	5,624			$	5,140		$	5,140
Less: Charge-offs
One-to-four family	—			—			—
Multifamily	—			—			—
Commercial real estate	—			—			—
Business	—			—			—
Consumer	(130)			(257)			(222)
Unallocated	—			—			(1)
Total charge-offs	(130)			(257)			(223)
Add: Recoveries
One-to-four family	90			13			—
Multifamily	—			—			—
Commercial real estate	10			—			—
Business	53			102			82
Consumer	4			23			21

Total recoveries	157			138			103
Net recoveries (charge-offs)	27			(119)			(120)
Provision for (recovery of) loan losses	(497)			603			468
Ending Balance	$	5,154		$	5,624		$	5,488

Ratios:
Net recoveries (charge-offs) to average loans outstanding (annualized)
One-to-four family	0.18		%	0.02		%	—		%
Multifamily	—		%	—		%	—		%
Commercial real estate	0.01		%	—		%	—		%
Business	0.04		%	0.06		%	0.07		%
Consumer	(10.69)		%	(11.55)		%	(12.54)		%
Total loans	0.01		%	(0.02)		%	(0.05)		%

Allowance to total loans	0.88		%	0.97		%	0.99		%
Allowance to nonaccrual loans	41.61		%	48.99		%	70.65		%


	Non Performing Assets

$ in thousands	December 31, 2022			September 30, 2022			June 30, 2022			March 31, 2022			December 31, 2021
Loans accounted for on a nonaccrual basis (1):
Gross loans receivable:
One-to-four family	$	4,066		$	4,371		$	4,600		$	4,892		$	4,919
Multifamily	71			—			109			515			516
Commercial real estate	7,275			9,455			6,170			4,601			185

Business	973			1,179			1,234			1,448			2,091
Consumer	—			87			—			25			57
Total nonaccrual loans	12,385			15,092			12,113			11,481			7,768
Other non-performing assets (2):
Real estate owned	60			60			60			60			60


Total non-performing assets (3)	$	12,445		$	15,152		$	12,173		$	11,541		$	7,828



Nonaccrual loans to total loans	2.11		%	2.63		%	2.18		%	1.98		%	1.41		%
Non-performing loans to total loans	2.11		%	2.63		%	2.18		%	1.98		%	1.41		%
Non-performing assets to total assets	1.75		%	2.00		%	1.76		%	1.57		%	1.08		%
Allowance to total loans	0.88		%	0.96		%	1.01		%	0.97		%	0.99		%
Allowance to nonaccrual loans	41.61		%	36.50		%	46.26		%	48.99		%	70.65		%

(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 December 31, 2022, there were $6.0 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 December 31, 2022, formatted in XBRL (Extensive Business Reporting Language): (i) Consolidated Statements of Financial Condition as of December 31, 2022 (unaudited) and March 31, 2022; (ii) Consolidated Statements of Operations for the three and nine months ended December 31, 2022 and 2021 (unaudited); (iii) Consolidated Statements of Comprehensive Income/(Loss) for the three and nine months ended December 31, 2022 and 2021 (unaudited); (iv) Consolidated Statements of Changes in Equity for the three and nine months ended December 31, 2022 and 2021 (unaudited); (v) Consolidated Statements of Cash Flows for the nine months ended December 31, 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 December 31, 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.