Carver Bancorp Inc 10-Q for FY2022 Q1

Carver Bancorp Inc (CARV)

10-Q 2021-08-19 For: 2021-06-30

Added on April 06, 2026

About this 10-Q

Carver Bancorp Inc filed this 10-Q on August 19, 2021, covering the quarter ended June 30, 2021 (FY2022 Q1).

Headline figures

Quarter ended June 30, 2021, as reported in this filing, compared with the same period a year earlier where the filing states it.

Net loss: $2.76M; compared with a net loss of $812K a year earlier
Diluted EPS: -$0.81; compared with -$0.22 a year earlier

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Class						Outstanding at August 18, 2021
Common Stock, par value $0.01						3,481,509


		Page
PART I.	FINANCIAL INFORMATION (UNAUDITED)

Item 1.	Financial Statements

	Consolidated Statements of Financial Condition as of June 30, 2021 and March 31, 2021	1

	Consolidated Statements of Operations for the Three Months Ended June 30, 2021 and 2020	2

	Consolidated Statements of Comprehensive Loss for the Three Months Ended June 30, 2021 and 2020	3

	Consolidated Statement of Changes in Equity for the Three Months Ended June 30, 2021 and 2020	4

	Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2021 and 2020	5

	Notes to Consolidated Financial Statements	6

Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	27

Item 3.	Quantitative and Qualitative Disclosures About Market Risk	44

Item 4.	Controls and Procedures	45

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	47

SIGNATURES		49


Exhibit 31.1
Exhibit 31.2
Exhibit 32.1
Exhibit 32.2
Exhibit 101


$ in thousands except per share data	June 30, 2021		March 31, 2021
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	78,473	$	75,337
Money market investments	254		254
Total cash and cash equivalents	78,727		75,591

Investment securities:
Available-for-sale, at fair value	86,039		86,507
Held-to-maturity, at amortized cost (fair value of $6,109 and $8,140 at June 30, 2021 and March 31, 2021, respectively)	5,833		7,807

Total investment securities	91,872		94,314



Loans receivable:
Real estate mortgage loans	327,658		333,422
Commercial business loans	158,492		147,680
Consumer loans	2,180		2,447
Loans, gross	488,330		483,549
Allowance for loan losses	(5,214)		(5,140)
Total loans receivable, net	483,116		478,409
Premises and equipment, net	4,455		4,611
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost	584		552
Accrued interest receivable	2,579		2,640
Right-of-use assets	15,433		15,344
Other assets	6,161		5,287
Total assets	$	682,927	$	676,748

LIABILITIES AND EQUITY
LIABILITIES
Deposits:
Non-interest bearing checking	$	112,693	$	110,525
Interest-bearing deposits:
Interest-bearing checking	51,126		45,605
Savings	110,449		108,199
Money market	145,597		137,230
Certificates of deposit	146,924		152,723
Escrow	1,487		2,277
Total interest-bearing deposits	455,583		446,034
Total deposits	568,276		556,559
Advances from the FHLB-NY and other borrowed money	34,190		37,222
Operating lease liability	16,117		16,003
Other liabilities	12,654		14,663
Total liabilities	631,237		624,447

EQUITY
Preferred stock, (par value $0.01 per share: 16,501 and 17,601 Series D shares, with a liquidation preference of $1,000 per share, issued and outstanding at June 30, 2021 and March 31, 2021, respectively)	16,501		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 June 30, 2021 and March 31, 2021)	3,177		3,177
Preferred stock (par value $0.01 per share: 5,000 Series F shares, with a liquidation preference of $1,000 per share, issued and outstanding at June 30, 2021 and March 31, 2021)	5,000		5,000
Common stock (par value 0.01 per share: 10,000,000 shares authorized; 5,977,368 and 5,837,071 shares issued; 3,473,565 and 3,333,268 shares outstanding at June 30, 2021 and March 31, 2021, respectively)	60		58
Additional paid-in capital	76,328		75,204
Accumulated deficit	(45,412)		(42,656)
Treasury stock, at cost (2,503,803 shares at June 30, 2021 and March 31, 2021)	(2,908)		(2,908)
Accumulated other comprehensive loss	(1,056)		(3,175)
Total equity	51,690		52,301
Total liabilities and equity	$	682,927	$	676,748


	Three Months Ended June 30,
$ in thousands, except per share data	2021		2020
Interest income:
Loans	$	4,839	$	4,385
Mortgage-backed securities	244		228
Investment securities	225		158
Money market investments	21		17
Total interest income	5,329		4,788

Interest expense:
Deposits	525		1,075
Advances and other borrowed money	152		167
Total interest expense	677		1,242

Net interest income	4,652		3,546
Provision for (recovery of) loan losses	72		(102)
Net interest income after provision for (recovery of) loan losses	4,580		3,648

Non-interest income:
Depository fees and charges	603		587
Loan fees and service charges	102		72
Gain on sale of securities	—		862





Other	936		162
Total non-interest income	1,641		1,683

Non-interest expense:
Employee compensation and benefits	2,808		2,646
Net occupancy expense	1,087		1,111
Equipment, net	474		394
Data processing	837		460
Consulting fees	20		61
Federal deposit insurance premiums	91		72

Other	3,660		1,399
Total non-interest expense	8,977		6,143

Loss before income taxes	(2,756)		(812)
Income tax expense	—		—
Net loss	$	(2,756)	$	(812)

Loss per common share:
Basic	$	(0.81)	$	(0.22)
Diluted	(0.81)		(0.22)


	Three Months Ended June 30,
$ in thousands	2021		2020
Net loss	$	(2,756)	$	(812)
Other comprehensive income (loss), net of tax:
Unrealized gain (loss) of securities available-for-sale	2,119		(212)

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 income (loss), net of tax	2,119		(1,074)
Total comprehensive loss, net of tax	$	(637)	$	(1,886)


☒						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 June 30, 2021
Balance — March 31, 2021	$	25,778	$	58	$	75,204	$	(42,656)	$	(2,908)	$	(3,175)	$	52,301
Net loss	—		—		—		(2,756)		—		—		(2,756)
Other comprehensive loss, net of taxes	—		—		—		—		—		2,119		2,119

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




Stock based compensation expense	—		1		25		—		—		—		26
Balance — June 30, 2021	$	24,678	$	60	$	76,328	$	(45,412)	$	(2,908)	$	(1,056)	$	51,690









Three Months Ended June 30, 2020
Balance — March 31, 2020	$	45,118	$	61	$	55,476	$	(52,285)	$	(408)	$	932	$	48,894
Net loss	—		—		—		(812)		—		—		(812)
Other comprehensive loss, net of taxes	—		—		—		—		—		(1,074)		(1,074)

Conversion of Series D preferred stock to common stock	(597)		1		596		—		—		—		—




Stock based compensation expense	—		(24)		57		—		—		—		33
Balance — June 30, 2020	$	44,521	$	38	$	56,129	$	(53,097)	$	(408)	$	(142)	$	47,041


	Three Months Ended June 30,
$ in thousands except per share data		2021		2020
Net loss		$	(2,756)	$	(812)



Weighted average common shares outstanding - basic		3,382,793		3,700,082

Weighted average common shares outstanding – diluted		3,382,793		3,700,082

Basic loss per common share		$	(0.81)	$	(0.22)
Diluted loss per common share		(0.81)		(0.22)


$ in thousands	At March 31, 2021		Other Comprehensive Income, net of tax		At June 30, 2021
Net unrealized loss on securities available-for-sale	$	(3,175)	$	2,119	$	(1,056)


$ in thousands	At March 31, 2020		Other Comprehensive Loss, net of tax		At June 30, 2020
Net unrealized income (loss) on securities available-for-sale	$	932	$	(1,074)	$	(142)


	At June 30, 2021
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	820	$	29	$	—	$	849
Federal Home Loan Mortgage Corporation	27,443		67		485		27,025
Federal National Mortgage Association	14,583		—		333		14,250
Total mortgage-backed securities	42,846		96		818		42,124
U.S. Government Agency Securities	17,883		—		83		17,800

Corporate Bonds	5,274		—		251		5,023
Muni Securities	17,757		170		196		17,731
Asset-backed Securities	3,335		26		—		3,361
Total available-for-sale	$	87,095	$	292	$	1,348	$	86,039

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	634	$	63	$	—	$	697
Federal National Mortgage Association and Other	5,199		213		—		5,412


Total held-to maturity	$	5,833	$	276	$	—	$	6,109


	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


	At June 30, 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	$	818	$	38,490	$	—	$	—	$	818	$	38,490
U.S. Government Agency securities	—		—		83		17,799		83		17,799

Corporate bonds	251		5,022		—		—		251		5,022

Muni securities	178		7,424		18		2,905		196		10,329

Total available-for-sale securities	$	1,247	$	50,936	$	101	$	20,704	$	1,348	$	71,640


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

One through five years	3,335		3,361		3.18	%
Five through ten years	5,441		5,410		1.47	%
After ten years	35,473		35,144		1.98	%
Mortgage-backed securities	42,846		42,124		1.36	%
Total	$	87,095	$	86,039	1.69	%

Held-to-maturity:



Mortgage-backed securities	$	5,833	$	6,109	2.5	%


	Three Months Ended June 30,
$ in thousands	2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(2,756)	$	(812)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Provision for (recovery of) loan losses	72		(102)

Stock based compensation expense	26		33
Depreciation and amortization expense	259		262

Gain on sale of securities	—		(862)



Amortization and accretion of loan premiums and discounts and deferred charges	159		218
Amortization and accretion of premiums and discounts — securities	89		170



Decrease (increase) in accrued interest receivable	61		(335)
(Increase) decrease in other assets	(162)		1,829
(Decrease) increase in other liabilities	(2,027)		15,180
Net cash (used in) provided by operating activities	(4,279)		15,581
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments: Available-for-sale	—		(33,036)

Proceeds from sales of investments: Available-for-sale	—		30,190
Proceeds from principal payments, maturities and calls of investments: Available-for-sale	2,443		4,790
Proceeds from principal payments, maturities and calls of investments: Held-to-maturity	1,961		267

Loans held-for investment activity, net of (originations) and repayments/payoffs	1,883		(30,612)
Loans purchased from third parties	(8,370)		—

Proceeds on sale of loans	926		—

(Purchase) redemption of FHLB-NY stock, net	(32)		16
Purchase of premises and equipment	(98)		(106)


	June 30, 2021				March 31, 2021
$ in thousands	Amount		Percent		Amount		Percent
Gross loans receivable:
One-to-four family	$	74,090	15.2	%	$	76,313	15.9	%
Multifamily	102,131		21.0	%	103,584		21.6	%
Commercial real estate	148,591		30.6	%	150,114		31.2	%

Business (1)	159,360		32.8	%	148,020		30.8	%
Consumer (2)	2,174		0.4	%	2,439		0.5	%
Total loans receivable	$	486,346	100.0	%	$	480,470	100.0	%

Unamortized premiums, deferred costs and fees, net	1,984				3,079

Allowance for loan losses	(5,214)				(5,140)
Total loans receivable, net	$	483,116			$	478,409


Three months ended June 30, 2021
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	1,058	$	880	$	907	$	1,855	$	165	$	275	$	5,140
Charge-offs	—		—		—		—		(55)		—		(55)
Recoveries	—		—		—		49		8		—		57
Provision for (recovery of) Loan Losses	28		(54)		(37)		200		26		(91)		72
Ending Balance	$	1,086	$	826	$	870	$	2,104	$	144	$	184	$	5,214

Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	$	1,055	$	826	$	870	$	1,992	$	144	$	184	$	5,071
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	31		—		—		112		—		—		143

Loan Receivables Ending Balance:	$	75,122	$	102,914	$	149,622	$	158,492	$	2,180	$	—	$	488,330
Ending Balance: collectively evaluated for impairment	71,313		102,029		149,430		150,870		2,180		—		475,822
Ending Balance: individually evaluated for impairment	3,809		885		192		7,622		—		—		12,508


At March 31, 2021
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total







Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	$	1,026	$	880	$	907	$	1,729	$	165	$	275	$	4,982
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	32		—		—		126		—		—		158

Loan Receivables Ending Balance:	$	78,213	$	106,400	$	148,809	$	147,680	$	2,447	$	—	$	483,549
Ending Balance: collectively evaluated for impairment	74,387		106,031		147,891		139,925		2,447		—		470,681
Ending Balance: individually evaluated for impairment	3,826		369		918		7,755		—		—		12,868


$ in thousands	Multifamily		Commercial Real Estate		Business
Credit Risk Profile by Internally Assigned Grade:
Pass	$	96,418	$	141,098	$	142,288
Special Mention	—		5,494		6,040
Substandard	6,496		3,030		10,164


Total	$	102,914	$	149,622	$	158,492

			One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing			$	71,611	$	2,180
Non-Performing			3,511		—
Total			$	75,122	$	2,180


June 30, 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	$	3,478	$	—	$	2,944	$	6,422	$	68,700	$	75,122
Multifamily	—		462		517		979		101,935		102,914
Commercial real estate	2,698		1,199		—		3,897		145,725		149,622

Business	2,618		400		1,096		4,114		154,378		158,492
Consumer	93		—		—		93		2,087		2,180
Total	$	8,887	$	2,061	$	4,557	$	15,505	$	472,825	$	488,330


	For the Three Months Ended June 30,
		2021	2020
$ in thousands			Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized
With no specific allowance recorded:
One-to-four family			$	3,742	$	4	$	3,862	$	27
Multifamily			627		—		374		4
Commercial real estate			555		—		2,069		—

Business			2,286		—		2,744		29

With an allowance recorded:
One-to-four family			75		—		682		—


Business			5,403		76		622		—

Total			$	12,688	$	80	$	10,353	$	60


	Fair Value Measurements at June 30, 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	$	—	$	—	$	151	$	151
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		849		—		849
Federal Home Loan Mortgage Corporation	—		27,025		—		27,025
Federal National Mortgage Association	—		14,250		—		14,250

U.S. Government Agency securities	—		17,800		—		17,800

Corporate bonds	—		5,023		—		5,023
Muni securities	—		17,731		—		17,731
Asset-backed securities	—		3,361		—		3,361
Total available-for-sale securities	—		86,039		—		86,039

Total assets	$	—	$	86,039	$	151	$	86,190


	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, June 30, 2021	Change in Unrealized Gains/(Losses) Related to Instruments Held at June 30, 2021




Mortgage servicing rights	147	4	—	—	151	4


$ 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, June 30, 2020	Change in Unrealized Gains/(Losses) Related to Instruments Held at June 30, 2020




Mortgage servicing rights	145	7	—	—	152	7


	Fair Value Measurements at June 30, 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	$	—	$	—	$	5,315	$	5,315
Other real estate owned	—		—		60		$	60


	June 30, 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	$	78,727	$	78,727	$	78,727	$	—	$	—

Securities available-for-sale	86,039		86,039		—		86,039		—


Securities held-to-maturity	5,833		6,109		—		6,109		—
Loans receivable	483,116		493,736		—		—		493,736

Accrued interest receivable	2,579		2,579		—		2,579		—
Mortgage servicing rights	151		151		—		—		151

Financial Liabilities:
Deposits	$	568,276	$	567,984	$	419,865	$	148,119	$	—


Other borrowed money	34,093		32,627		—		32,627		—
Accrued interest payable	124		124		—		124		—


	June 30, 2021
Weighted-average remaining lease term
Operating leases	6.8 years
Finance lease	2.1 years

Weighted-average discount rate
Operating leases	2.94	%
Finance lease	1.78	%


$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2022	$	2,062	$	54
2023	2,619		30
2024	2,674		11
2025	2,458		3
2026	2,449		—
Thereafter	5,616		—
Total lease payments	17,878		98
Interest	(1,761)		(2)
Lease liability	$	16,117	$	96


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	$	13,017	$	400	$	—	$	—	$	13,417


	June 30, 2021
($ in thousands)	Amount		Ratio
Tier 1 leverage capital
Regulatory capital	$	65,654	10.05	%
Individual minimum capital requirement	58,784		9.00	%
Minimum capital requirement	26,126		4.00	%
Excess over individual minimum capital requirement	6,870		1.05	%

Common equity Tier 1
Regulatory capital	$	65,654	14.07	%
Minimum capital requirement	32,662		7.00	%
Excess	32,992		7.07	%

Tier 1 risk-based capital
Regulatory capital	$	65,654	14.07	%
Minimum capital requirement	39,662		8.50	%
Excess	25,992		5.57	%

Total risk-based capital
Regulatory capital	$	71,121	15.24	%
Individual minimum capital requirement	55,993		12.00	%
Minimum capital requirement	48,994		10.50	%
Excess over individual minimum capital requirement	15,128		3.24	%


$ 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	(7)
Open claims as of June 30, 2021 (1)	$	1,680


$ in thousands	June 30, 2021
Representation and warranty repurchase reserve, March 31, 2021 (1)	$	181
Net adjustment to reserve for repurchase losses (2)	25

Representation and warranty repurchase reserve, June 30, 2021 (1)	$	206


$ in thousands
Commitments to fund mortgage loans	$	31,247
Commitments to fund commercial and consumer loans	$	250
Lines of credit	4,523

Commitment to fund private equity investment	253
Total	$	36,273


	Three Months Ended June 30,
Selected Financial Data:	2021			2020
Return on average assets (1)	(1.60)	%		(0.52)	%
Return on average stockholders' equity (2)	(20.83)	%		(6.73)	%
Return on average stockholders' equity, excluding AOCI (2) (8)	(19.92)	%		(6.82)	%
Net interest margin (3)	2.80	%		2.37	%
Interest rate spread (4)	2.65	%		2.15	%
Efficiency ratio (5)	142.65	%		117.48	%
Operating expenses to average assets (6)	5.21	%		3.91	%
Average stockholders' equity to average assets (7)	7.68	%		7.67	%
Average stockholders' equity, excluding AOCI, to average assets (7) (8)	8.03	%		7.58	%
Average interest-earning assets to average interest-bearing liabilities	1.35		x	1.27		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	Three Months Ended June 30, 2021			Fiscal Year Ended March 31, 2021			Three Months Ended June 30, 2020
Beginning Balance	5,140			$	4,946		$	4,946
Less: Charge-offs	(55)			(78)			(10)
Add: Recoveries	57			372			2
(Recovery of) provision for loan losses	72			(100)			(102)
Ending Balance	$	5,214		$	5,140		$	4,836

Ratios:
Net (charge-offs) recoveries to average loans outstanding (annualized)	—		%	0.06		%	(0.01)		%
Allowance to total loans	1.07		%	1.06		%	1.05		%
Allowance to non-performing loans	76.69		%	71.48		%	41.07		%


	Non Performing Assets

$ in thousands	June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020			June 30, 2020
Loans accounted for on a nonaccrual basis (1):
Gross loans receivable:
One-to-four family	$	3,511		$	3,524		$	3,532		$	3,541		$	3,671
Multifamily	885			369			372			372			373
Commercial real estate	192			918			1,160			1,160			4,139

Business	2,211			2,290			2,413			2,346			3,571
Consumer	—			90			—			—			22
Total nonaccrual loans	6,799			7,191			7,477			7,419			11,776
Other non-performing assets (2):
Real estate owned	60			60			60			60			120


Total non-performing assets (3)	$	6,859		$	7,251		$	7,537		$	7,479		$	11,896



Non-performing loans to total loans	1.39		%	1.49		%	1.60		%	1.60		%	2.57		%
Non-performing assets to total assets	1.00		%	1.07		%	1.10		%	1.11		%	1.77		%
Allowance to total loans	1.07		%	1.06		%	1.10		%	1.06		%	1.05		%
Allowance to non-performing loans	76.69		%	71.48		%	68.72		%	66.26		%	41.07		%

(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 June 30, 2021, there were $5.7 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			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 June 30, 2021, formatted in XBRL (Extensive Business Reporting Language): (i) Consolidated Statements of Financial Condition as of June 30, 2021 (unaudited) and March 31, 2021; (ii) Consolidated Statements of Operations for the three months ended June 30, 2021 and 2020 (unaudited); (iii) Consolidated Statements of Comprehensive Loss for the three months ended June 30, 2021 and 2020 (unaudited); (iv) Consolidated Statements of Changes in Equity for the three months ended June 30, 2021 and 2020 (unaudited); (v) Consolidated Statements of Cash Flows for the three months ended June 30, 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 June 30, 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 February 22, 2021.