Carver Bancorp Inc 10-Q for FY2022 Q3

Carver Bancorp Inc (CARV)

10-Q 2022-02-14 For: 2021-12-31

Added on April 06, 2026

About this 10-Q

Carver Bancorp Inc filed this 10-Q on February 14, 2022, covering the quarter ended December 31, 2021 (FY2022 Q3).

Headline figures

Quarter ended December 31, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net income: $696K; compared with a net loss of $1.31M a year earlier
Diluted EPS: $0.13; compared with -$0.44 a year earlier

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Class						Outstanding at February 11, 2022
Common Stock, par value $0.01						3,804,596


		Page
PART I.	FINANCIAL INFORMATION (UNAUDITED)

Item 1.	Financial Statements

	Consolidated Statements of Financial Condition as of December 31, 2021 and March 31, 2021	1

	Consolidated Statements of Operations for the Three and Nine Months Ended December 31, 2021 and 2020	2

	Consolidated Statements of Comprehensive Income (Loss) for the Three and Nine Months Ended December 31, 2021 and 2020	3

	Consolidated Statement of Changes in Equity for the Three and Nine Months Ended December 31, 2021 and 2020	4

	Consolidated Statements of Cash Flows for the Nine Months Ended December 31, 2021 and 2020	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	46

Item 4.	Controls and Procedures	46

PART II.	OTHER INFORMATION

Item 1.	Legal Proceedings	47

Item 1A.	Risk Factors	47

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

Item 3.	Defaults Upon Senior Securities	47

Item 4.	Mine Safety Disclosures	47

Item 5.	Other Information	47

Item 6.	Exhibits	48

SIGNATURES		49


$ in thousands except per share data	December 31, 2021		March 31, 2021
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	65,475	$	75,337
Money market investments	254		254
Total cash and cash equivalents	65,729		75,591

Investment securities:
Available-for-sale, at fair value	75,268		86,507
Held-to-maturity, at amortized cost (fair value of $5,592 and $8,140 at December 31, 2021 and March 31, 2021, respectively)	5,407		7,807

Total investment securities	80,675		94,314



Loans receivable:
Real estate mortgage loans	392,655		333,422
Commercial business loans	158,487		147,680
Consumer loans	1,735		2,447
Loans, gross	552,877		483,549
Allowance for loan and lease losses	(5,488)		(5,140)
Total loans receivable, net	547,389		478,409
Premises and equipment, net	4,022		4,611
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost	584		552
Accrued interest receivable	2,688		2,640
Right-of-use assets	14,239		15,344
Other assets	7,484		5,287
Total assets	$	722,810	$	676,748

LIABILITIES AND EQUITY
LIABILITIES
Deposits:
Non-interest bearing checking	$	127,906	$	110,525
Interest-bearing deposits:
Interest-bearing checking	70,882		45,605
Savings	111,015		108,199
Money market	153,094		137,230
Certificates of deposit	157,229		152,723
Escrow	1,980		2,277
Total interest-bearing deposits	494,200		446,034
Total deposits	622,106		556,559
Advances from the FHLB-NY and other borrowed money	16,359		37,222
Operating lease liability	14,976		16,003
Other liabilities	11,671		14,663
Total liabilities	665,112		624,447

EQUITY
Preferred stock, (par value $0.01 per share: 14,851 and 17,601 Series D shares, with a liquidation preference of $1,000 per share, issued and outstanding at December 31, 2021 and March 31, 2021, respectively)	14,851		17,601
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, 2021 and March 31, 2021)	3,177		3,177
Preferred stock (par value $0.01 per share: 9,000 and 5,000 Series F shares, with a liquidation preference of $1,000 per share, issued and outstanding at December 31, 2021 and March 31, 2021, respectively)	9,000		5,000
Common stock (par value 0.01 per share: 10,000,000 shares authorized; 6,288,922 and 5,837,071 shares issued; 3,785,319 and 3,333,268 shares outstanding at December 31, 2021 and March 31, 2021, respectively)	63		58
Additional paid-in capital	79,029		75,204
Accumulated deficit	(43,632)		(42,656)
Treasury stock, at cost (2,503,803 shares at December 31, 2021 and March 31, 2021)	(2,908)		(2,908)
Accumulated other comprehensive loss	(1,882)		(3,175)
Total equity	57,698		52,301
Total liabilities and equity	$	722,810	$	676,748


	Three Months Ended December 31,				Nine Months Ended December 31,
$ in thousands, except per share data	2021		2020		2021		2020
Interest income:
Loans	$	5,379	$	4,749	$	15,541	$	13,804
Mortgage-backed securities	150		192		552		509
Investment securities	109		277		543		716
Money market investments	27		21		76		70
Total interest income	5,665		5,239		16,712		15,099

Interest expense:
Deposits	476		938		1,435		3,048
Advances and other borrowed money	117		162		389		492
Total interest expense	593		1,100		1,824		3,540

Net interest income	5,072		4,139		14,888		11,559
Provision for (recovery of) loan losses	192		4		468		(99)
Net interest income after provision for (recovery of) loan losses	4,880		4,135		14,420		11,658

Non-interest income:
Depository fees and charges	432		692		1,627		2,041
Loan fees and service charges	54		65		199		234
Gain on sale of securities	—		—		—		862


Grant income	203		—		2,089		500


Other	1,142		142		2,721		918
Total non-interest income	1,831		899		6,636		4,555

Non-interest expense:
Employee compensation and benefits	2,793		2,837		8,595		8,369
Net occupancy expense	1,080		1,066		3,318		3,296
Equipment, net	408		386		1,299		1,239
Data processing	160		451		1,472		1,564
Consulting fees	112		38		338		154
Federal deposit insurance premiums	92		107		266		265

Other	1,370		1,459		6,744		4,257
Total non-interest expense	6,015		6,344		22,032		19,144

Income (loss) before income taxes	696		(1,310)		(976)		(2,931)
Income tax expense	—		—		—		—
Net income (loss)	$	696	$	(1,310)	$	(976)	$	(2,931)

Earnings (loss) per common share:
Basic	$	0.13	$	(0.44)	$	(0.28)	$	(0.84)
Diluted	0.13		(0.44)		(0.28)		(0.84)


	Three Months Ended December 31,				Nine Months Ended December 31,
$ in thousands	2021		2020		2021		2020
Net income (loss)	$	696	$	(1,310)	$	(976)	$	(2,931)
Other comprehensive (loss) income, net of tax:
Unrealized (loss) gain of securities available-for-sale	(198)		346		1,293		297

Less: Reclassification adjustment for gains on sale of available-for-sale securities, net of income tax expense of $0 (due to full valuation allowance)	—		—		—		862

Total other comprehensive (loss) income, net of tax	(198)		346		1,293		(565)
Total comprehensive income (loss), net of tax	$	498	$	(964)	$	317	$	(3,496)


☒						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, 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, 2020
Balance — September 30, 2020	$	18,076	$	54	$	71,534	$	(40,381)	$	(2,908)	$	21	$	46,396
Net loss	—		—		—		(1,310)		—		—		(1,310)
Other comprehensive income, net of taxes	—		—		—		—		—		346		346





Issuance of common stock	—		1		973				—				974


Stock based compensation expense	—		—		2		—		—		—		2
Balance — December 31, 2020	$	18,076	$	55	$	72,509	$	(41,691)	$	(2,908)	$	367	$	46,408

Nine Months Ended December 31, 2020
Balance — March 31, 2020	$	45,118	$	61	$	55,476	$	(52,285)	$	(408)	$	932	$	48,894
Net loss	—		—		—		(2,931)		—		—		(2,931)
Other comprehensive loss, net of taxes	—		—		—		—		—		(565)		(565)

Conversion of Series D preferred stock to common stock	(13,519)		17		13,502		—		—		—		—
Stock relinquishment	(13,523)		(2)		—		13,525		—		—		—
Capital contribution	—		—		2,500		—		—		—		2,500
Repurchase of common stock	—		—		—		—		(2,500)		—		(2,500)
Issuance of common stock	—		1		973		—		—		—		974


Stock based compensation expense	—		(22)		58		—		—		—		36
Balance — December 31, 2020	$	18,076	$	55	$	72,509	$	(41,691)	$	(2,908)	$	367	$	46,408


	Three Months Ended December 31,				Nine Months Ended December 31,
$ in thousands except per share data	2021		2020		2021		2020
Net income (loss)	$	696	$	(1,310)	$	(976)	$	(2,931)
Less: Undistributed earnings attributable to dilutive shares	240		—		—		—
Net income (loss) available to common shareholders	$	456	$	(1,310)	$	(976)	$	(2,931)

Weighted average common shares outstanding - basic	3,573,707		2,980,655		3,485,120		3,485,488
Effect of dilutive shares	35,832		—		—		—
Weighted average common shares outstanding – diluted	3,609,539		2,980,655		3,485,120		3,485,488

Basic earnings (loss) per common share	$	0.13	$	(0.44)	$	(0.28)	$	(0.84)
Diluted earnings (loss) per common share	0.13		(0.44)		(0.28)		(0.84)


$ 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)


$ in thousands	At March 31, 2020		Other Comprehensive Loss, net of tax		At December 31, 2020
Net unrealized income (loss) on securities available-for-sale	$	932	$	(565)	$	367


	At December 31, 2021
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	494	$	18	$	—	$	512
Federal Home Loan Mortgage Corporation	24,791		31		877		23,945
Federal National Mortgage Association	13,306		—		446		12,860
Total mortgage-backed securities	38,591		49		1,323		37,317
U.S. Government Agency Securities	15,131		—		60		15,071

Corporate Bonds	5,272		—		90		5,182
Muni Securities	17,746		88		547		17,287
Asset-backed Securities	410		1		—		411
Total available-for-sale	$	77,150	$	138	$	2,020	$	75,268

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	527	$	49	$	—	$	576
Federal National Mortgage Association and Other	4,880		136		—		5,016


Total held-to maturity	$	5,407	$	185	$	—	$	5,592


	At March 31, 2021
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	987	$	39	$	—	$	1,026
Federal Home Loan Mortgage Corporation	28,458		88		761		27,785
Federal National Mortgage Association	15,120		—		510		14,610

Total mortgage-backed securities	44,565		127		1,271		43,421
U.S. Government Agency Securities	18,744		—		113		18,631
Corporate Bonds	5,274		—		793		4,481
Muni Securities	17,763		—		1,153		16,610
Asset-backed Securities	3,336		28		—		3,364

Total available-for-sale	$	89,682	$	155	$	3,330	$	86,507

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	683	$	69	$	—	$	752
Federal National Mortgage Association and Other	7,124		264		—		7,388


Total held-to-maturity	$	7,807	$	333	$	—	$	8,140


$ in thousands	December 31, 2020
Proceeds	$	30,190
Gross gains	862


	At December 31, 2021
	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	$	164	$	6,030	$	1,159	$	28,824	$	1,323	$	34,854
U.S. Government Agency securities	—		—		60		15,071		60		15,071

Corporate bonds	—		—		90		5,182		90		5,182

Muni securities	411		12,057		136		2,454		547		14,511

Total available-for-sale securities	$	575	$	18,087	$	1,445	$	51,531	$	2,020	$	69,618


	Nine Months Ended December 31,
$ in thousands	2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(976)	$	(2,931)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Provision for (recovery of) loan losses	468		(99)

Stock based compensation expense	122		36
Depreciation and amortization expense	770		769
Gain on sale of real estate owned, net of market value adjustment	—		(80)
Gain on sale of securities	—		(862)



Amortization and accretion of loan premiums and discounts and deferred charges	(209)		557
Amortization and accretion of premiums and discounts — securities	474		430



Increase in accrued interest receivable	(48)		(858)
Decrease in other assets	(1,995)		(3,970)
(Decrease) increase in other liabilities	(3,045)		2,547
Net cash used in operating activities	(4,439)		(4,461)
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments: Available-for-sale	—		(74,475)

Proceeds from sales of investments: Available-for-sale	—		30,190
Proceeds from principal payments, maturities and calls of investments: Available-for-sale	12,013		10,094
Proceeds from principal payments, maturities and calls of investments: Held-to-maturity	2,375		957

Loans held-for investment activity, net of (originations) and repayments/payoffs	(30,962)		(16,376)
Loans purchased from third parties	(44,410)		(24,141)

Proceeds from participation loans sold	6,080		—

(Purchase) redemption of FHLB-NY stock, net	(32)		16
Purchase of premises and equipment	(181)		(184)


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

One through five years	410		410		0.75	%
Five through ten years	7,582		7,644		1.95	%
After ten years	30,567		29,897		1.95	%
Mortgage-backed securities	38,591		37,317		1.33	%
Total	$	77,150	$	75,268	1.64	%

Held-to-maturity:



Mortgage-backed securities	$	5,407	$	5,592	2.48	%


	December 31, 2021				March 31, 2021
$ in thousands	Amount		Percent		Amount		Percent
Gross loans receivable:
One-to-four family	$	71,356	13.0	%	$	76,313	15.9	%
Multifamily	152,743		27.8	%	103,584		21.6	%
Commercial real estate	165,050		30.0	%	150,114		31.2	%

Business (1)	159,214		28.9	%	148,020		30.8	%
Consumer (2)	1,718		0.3	%	2,439		0.5	%
Total loans receivable	$	550,081	100.0	%	$	480,470	100.0	%

Unamortized premiums, deferred costs and fees, net	2,796				3,079

Allowance for loan losses	(5,488)				(5,140)
Total loans receivable, net	$	547,389			$	478,409


Three months ended December 31, 2021
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	1,015		914		1,002		2,106		137		341		$	5,515
Charge-offs	—		—		—		—		(123)		(129)		(252)
Recoveries	—		—		—		32		1		—		33
Provision for (recovery of) Loan Losses	(94)		188		93		(30)		116		(81)		192

Ending Balance	$	921	$	1,102	$	1,095	$	2,108	$	131	$	131	$	5,488


$ in thousands	Multifamily		Commercial Real Estate		Business
Credit Risk Profile by Internally Assigned Grade:
Pass	$	148,139	$	156,636	$	142,693
Special Mention	—		8,206		5,949
Substandard	6,091		1,208		9,845


Total	$	154,230	$	166,050	$	158,487

			One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing			$	67,457	$	1,678
Non-Performing			4,918		57
Total			$	72,375	$	1,735


December 31, 2021
$ 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	$	467	$	—	$	4,572	$	5,039	$	67,336	$	72,375
Multifamily	3,410		—		516		3,926		150,304		154,230
Commercial real estate	1,729		1,608		—		3,337		162,713		166,050

Business	1,697		—		5,332		7,029		151,458		158,487
Consumer	50		22		57		129		1,606		1,735
Total	$	7,353	$	1,630	$	10,477	$	19,460	$	533,417	$	552,877


	For the Three Months Ended December 31,								For the Nine Months Ended December 31,
	2021				2020				2021				2020
$ 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	$	4,429	$	13	$	3,790	$	10	$	4,443	$	19	$	3,767	$	50
Multifamily	699		9		373		4		442		9		371		13
Commercial real estate	188		7		580		—		551		7		1,160		—

Business	2,125		24		2,634		26		2,212		24		2,445		86

With an allowance recorded:
One-to-four family	73		—		442		—		74		1		77		—


Business	5,293		—		3,057		—		5,333		149		3,007		—

Total	$	12,807	$	53	$	10,876	$	40	$	13,055	$	209	$	10,827	$	149


	Fair Value Measurements at December 31, 2021, 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	$	—	$	—	$	132	$	132
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		512		—		512
Federal Home Loan Mortgage Corporation	—		23,945		—		23,945
Federal National Mortgage Association	—		12,860		—		12,860

U.S. Government Agency securities	—		15,071		—		15,071

Corporate bonds	—		5,182		—		5,182
Muni securities	—		17,287		—		17,287
Asset-backed securities	—		411		—		411
Total available-for-sale securities	—		75,268		—		75,268

Total assets	$	—	$	75,268	$	132	$	75,400


	Fair Value Measurements at March 31, 2021, 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	$	—	$	—	$	147	$	147
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		1,026		—		1,026
Federal Home Loan Mortgage Corporation	—		27,785		—		27,785
Federal National Mortgage Association	—		14,610		—		14,610

U.S. Government Agency securities	—		18,631		—		18,631
Corporate bonds	—		4,481		—		4,481
Muni securities	—		16,610		—		16,610
Asset-backed securities	—		3,364		—		3,364
Total available-for-sale securities	—		86,507		—		86,507

Total assets	$	—	$	86,507	$	147	$	86,654


$ 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)


$ in thousands	Beginning balance, April 1, 2020	Total Realized/Unrealized Gains/(Losses) Recorded in Income (1)	Issuances / (Settlements)	Transfers to/(from) Level 3	Ending balance, December 31, 2020	Change in Unrealized Gains/(Losses) Related to Instruments Held at December 31, 2020




Mortgage servicing rights	145	(3)	—	—	142	(2)


	Fair Value Measurements at December 31, 2021 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	$	—	$	—	$	5,203	$	5,203
Other real estate owned	—		—		60		$	60


	December 31, 2021
$ 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	$	65,729	$	65,729	$	65,729	$	—	$	—

Securities available-for-sale	75,268		75,268		—		75,268		—


Securities held-to-maturity	5,407		5,592		—		5,592		—
Loans receivable	547,389		557,329		—		—		557,329

Accrued interest receivable	2,688		2,688		—		2,688		—
Mortgage servicing rights	132		132		—		—		132

Financial Liabilities:
Deposits	$	622,106	$	620,462	$	462,897	$	157,565	$	—


Other borrowed money	16,298		15,685		—		15,685		—
Accrued interest payable	44		44		—		44		—


	December 31, 2021
Weighted-average remaining lease term
Operating leases	6.3 years
Finance lease	1.8 years

Weighted-average discount rate
Operating leases	2.95	%
Finance lease	1.77	%


$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2022	$	691	$	18
2023	2,619		30
2024	2,674		11
2025	2,458		3
2026	2,449		—
Thereafter	5,616		—
Total lease payments	16,507		62
Interest	(1,531)		(1)
Lease liability	$	14,976	$	61


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)	$	—	$	—	$	13,400	$	13,400	$	13,018	$	400	$	—	$	—	$	13,418


	December 31, 2021
($ in thousands)	Amount		Ratio
Tier 1 leverage capital
Regulatory capital	$	73,396	10.32	%
Individual minimum capital requirement	64,026		9.00	%
Minimum capital requirement	28,456		4.00	%
Excess over individual minimum capital requirement	9,370		1.32	%

Common equity Tier 1
Regulatory capital	$	73,396	13.75	%
Minimum capital requirement	37,361		7.00	%
Excess	36,035		6.75	%

Tier 1 risk-based capital
Regulatory capital	$	73,396	13.75	%
Minimum capital requirement	45,367		8.50	%
Excess	28,029		5.25	%

Total risk-based capital
Regulatory capital	$	79,070	14.81	%
Individual minimum capital requirement	64,047		12.00	%
Minimum capital requirement	56,041		10.50	%
Excess over individual minimum capital requirement	15,023		2.81	%


$ in thousands	Loans sold to FNMA
Open claims as of March 31, 2021 (1)	$	1,687
Gross new demands received	—
Loans repurchased/made whole	—
Demands rescinded	—
Advances on open claims	—
Principal payments received on open claims	(314)
Open claims as of December 31, 2021 (1)	$	1,373


$ in thousands	December 31, 2021
Representation and warranty repurchase reserve, March 31, 2021 (1)	$	181
Net adjustment to reserve for repurchase losses (2)	(19)

Representation and warranty repurchase reserve, December 31, 2021 (1)	$	162


$ in thousands
Commitments to fund mortgage loans	$	21,780

Lines of credit	3,235

Commitment to fund private equity investment	253
Total	$	25,268


	Three Months Ended December 31,						Nine Months Ended December 31,
Selected Financial Data:	2021			2020			2021			2020
Return on average assets (1)	0.39	%		(0.78)	%		(0.19)	%		(0.59)	%
Return on average stockholders' equity (2)	4.86	%		(11.21)	%		(2.40)	%		(8.23)	%
Return on average stockholders' equity, excluding AOCI (2) (8)	4.72	%		(11.15)	%		(2.34)	%		(8.26)	%
Net interest margin (3)	2.95	%		2.56	%		2.96	%		2.45	%
Interest rate spread (4)	2.82	%		2.37	%		2.82	%		2.24	%
Efficiency ratio (5)	87.14	%		125.92	%		102.36	%		118.80	%
Operating expenses to average assets (6)	3.38	%		3.76	%		4.22	%		3.88	%
Average stockholders' equity to average assets (7)	8.05	%		6.93	%		7.78	%		7.22	%
Average stockholders' equity, excluding AOCI, to average assets (7) (8)	8.28	%		6.97	%		8.01	%		7.20	%
Average interest-earning assets to average interest-bearing liabilities	1.40		x	1.28		x	1.37		x	1.28		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, 2021			Fiscal Year Ended March 31, 2021			Nine Months Ended December 31, 2020
Beginning Balance	5,140			$	4,946		$	4,946
Less: Charge-offs	(223)			(78)			(76)
Add: Recoveries	103			372			367
Provision for (recovery of) loan losses	468			(100)			(99)

Ending Balance	$	5,488		$	5,140		$	5,138

Ratios:
Net (charge-offs) recoveries to average loans outstanding (annualized)	(0.03)		%	0.06		%	0.09		%
Allowance to total loans	0.99		%	1.06		%	1.10		%
Allowance to non-performing loans	70.65		%	71.48		%	68.72		%


	Non Performing Assets

$ in thousands	December 31, 2021			September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020
Loans accounted for on a nonaccrual basis (1):
Gross loans receivable:
One-to-four family	$	4,919		$	3,500		$	3,511		$	3,524		$	3,532
Multifamily	516			882			885			369			372
Commercial real estate	185			192			192			918			1,160

Business	2,091			2,148			2,211			2,290			2,413
Consumer	57			—			—			90			—
Total nonaccrual loans	7,768			6,722			6,799			7,191			7,477
Other non-performing assets (2):
Real estate owned	60			60			60			60			60


Total non-performing assets (3)	$	7,828		$	6,782		$	6,859		$	7,251		$	7,537



Non-performing loans to total loans	1.41		%	1.29		%	1.39		%	1.49		%	1.60		%
Non-performing assets to total assets	1.08		%	0.96		%	1.00		%	1.07		%	1.10		%
Allowance to total loans	0.99		%	1.06		%	1.07		%	1.06		%	1.10		%
Allowance to non-performing loans	70.65		%	82.04		%	76.69		%	71.48		%	68.72		%

(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, 2021, there were $5.5 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)
			10.1			Sales Agreement by and between Carver Bancorp, Inc. and Piper Sandler & Co. as of December 14, 2021 (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, 2021, formatted in XBRL (Extensive Business Reporting Language): (i) Consolidated Statements of Financial Condition as of December 31, 2021 (unaudited) and March 31, 2021; (ii) Consolidated Statements of Operations for the three and nine months ended December 31, 2021 and 2020 (unaudited); (iii) Consolidated Statements of Comprehensive Income/(Loss) for the three and nine months ended December 31, 2021 and 2020 (unaudited); (iv) Consolidated Statements of Changes in Equity for the three and nine months ended December 31, 2021 and 2020 (unaudited); (v) Consolidated Statements of Cash Flows for the nine months ended December 31, 2021 and 2020 (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, 2021, 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 December 14, 2021.