Carver Bancorp Inc 10-Q for FY2022 Q2

Carver Bancorp Inc (CARV)

10-Q 2021-11-15 For: 2021-09-30

Added on April 06, 2026

About this 10-Q

Carver Bancorp Inc filed this 10-Q on November 15, 2021, covering the quarter ended September 30, 2021 (FY2022 Q2).

Headline figures

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

Net income: $1.08M; compared with a net loss of $809K a year earlier
Diluted EPS: $0.12; compared with -$0.21 a year earlier

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Class						Outstanding at November 12, 2021
Common Stock, par value $0.01						3,500,200


		Page
PART I.	FINANCIAL INFORMATION (UNAUDITED)

Item 1.	Financial Statements

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

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

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

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

	Consolidated Statements of Cash Flows for the Six Months Ended September 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	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	46

SIGNATURES		48


$ in thousands except per share data	September 30, 2021		March 31, 2021
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	78,876	$	75,337
Money market investments	254		254
Total cash and cash equivalents	79,130		75,591

Investment securities:
Available-for-sale, at fair value	79,853		86,507
Held-to-maturity, at amortized cost (fair value of $5,865 and $8,140 at September 30, 2021 and March 31, 2021, respectively)	5,623		7,807

Total investment securities	85,476		94,314



Loans receivable:
Real estate mortgage loans	360,988		333,422
Commercial business loans	157,627		147,680
Consumer loans	2,038		2,447
Loans, gross	520,653		483,549
Allowance for loan and lease losses	(5,515)		(5,140)
Total loans receivable, net	515,138		478,409
Premises and equipment, net	4,233		4,611
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost	674		552
Accrued interest receivable	2,599		2,640
Right-of-use assets	14,838		15,344
Other assets	4,786		5,287
Total assets	$	706,874	$	676,748

LIABILITIES AND EQUITY
LIABILITIES
Deposits:
Non-interest bearing checking	$	146,182	$	110,525
Interest-bearing deposits:
Interest-bearing checking	49,654		45,605
Savings	110,650		108,199
Money market	147,681		137,230
Certificates of deposit	146,360		152,723
Escrow	2,838		2,277
Total interest-bearing deposits	457,183		446,034
Total deposits	603,365		556,559
Advances from the FHLB-NY and other borrowed money	21,532		37,222
Operating lease liability	15,548		16,003
Other liabilities	10,211		14,663
Total liabilities	650,656		624,447

EQUITY
Preferred stock, (par value $0.01 per share: 15,951 and 17,601 Series D shares, with a liquidation preference of $1,000 per share, issued and outstanding at September 30, 2021 and March 31, 2021, respectively)	15,951		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 September 30, 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 September 30, 2021 and March 31, 2021, respectively)	9,000		5,000
Common stock (par value 0.01 per share: 10,000,000 shares authorized; 6,052,577 and 5,837,071 shares issued; 3,548,774 and 3,333,268 shares outstanding at September 30, 2021 and March 31, 2021, respectively)	61		58
Additional paid-in capital	76,949		75,204
Accumulated deficit	(44,328)		(42,656)
Treasury stock, at cost (2,503,803 shares at September 30, 2021 and March 31, 2021)	(2,908)		(2,908)
Accumulated other comprehensive loss	(1,684)		(3,175)
Total equity	56,218		52,301
Total liabilities and equity	$	706,874	$	676,748


	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands, except per share data	2021		2020		2021		2020
Interest income:
Loans	$	5,323	$	4,670	$	10,162	$	9,055
Mortgage-backed securities	158		89		402		317
Investment securities	209		281		434		439
Money market investments	28		32		49		49
Total interest income	5,718		5,072		11,047		9,860

Interest expense:
Deposits	434		1,035		959		2,110
Advances and other borrowed money	120		163		272		330
Total interest expense	554		1,198		1,231		2,440

Net interest income	5,164		3,874		9,816		7,420
Provision for (recovery of) loan losses	204		(1)		276		(103)
Net interest income after provision for (recovery of) loan losses	4,960		3,875		9,540		7,523

Non-interest income:
Depository fees and charges	592		762		1,195		1,349
Loan fees and service charges	43		97		145		169
Gain on sale of securities	—		—		—		862


Grant income	1,886		500		1,886		500


Other	643		614		1,579		776
Total non-interest income	3,164		1,973		4,805		3,656

Non-interest expense:
Employee compensation and benefits	2,994		2,886		5,802		5,532
Net occupancy expense	1,151		1,119		2,238		2,230
Equipment, net	417		459		891		853
Data processing	475		653		1,312		1,113
Consulting fees	206		55		226		116
Federal deposit insurance premiums	83		86		174		158

Other	1,714		1,399		5,374		2,798
Total non-interest expense	7,040		6,657		16,017		12,800

Income (loss) before income taxes	1,084		(809)		(1,672)		(1,621)
Income tax expense	—		—		—		—
Net income (loss)	$	1,084	$	(809)	$	(1,672)	$	(1,621)

Earnings (loss) per common share:
Basic	$	0.20	$	(0.21)	$	(0.49)	$	(0.43)
Diluted	0.12		(0.21)		(0.49)		(0.43)


	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands	2021		2020		2021		2020
Net income (loss)	$	1,084	$	(809)	$	(1,672)	$	(1,621)
Other comprehensive (loss) income, net of tax:
Unrealized (loss) gain of securities available-for-sale	(628)		163		1,491		(49)

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	(628)		163		1,491		(911)
Total comprehensive income (loss), net of tax	$	456	$	(646)	$	(181)	$	(2,532)


☒						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934


$ in thousands	Preferred Stock		Common Stock		Additional Paid-In Capital		Accumulated Deficit		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Equity
Three Months Ended September 30, 2021
Balance — June 30, 2021	$	24,678	$	60	$	76,328	$	(45,412)	$	(2,908)	$	(1,056)	$	51,690
Net income	—		—		—		1,084		—		—		1,084
Other comprehensive income, net of taxes	—		—		—		—		—		(628)		(628)
Conversion of Series D preferred stock to common stock	(550)		1		549		—		—		—		—





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

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

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





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

Three Months Ended September 30, 2020
Balance — June 30, 2020	$	44,521	$	38	$	56,129	$	(53,097)	$	(408)	$	(142)	$	47,041
Net loss	—		—		—		(809)		—		—		(809)
Other comprehensive loss, net of taxes	—		—		—		—		—		163		163

Conversion of Series D preferred stock to common stock	(12,922)		16		12,906		—		—		—		—
Stock relinquishment	(13,523)		(2)		—		13,525		—		—		—
Capital contribution	—		—		2,500		—		—		—		2,500
Repurchase of common stock	—		—		—		—		(2,500)		—		(2,500)



Stock based compensation expense	—		2		(1)		—		—		—		1
Balance — September 30, 2020	$	18,076	$	54	$	71,534	$	(40,381)	$	(2,908)	$	21	$	46,396

Six Months Ended September 30, 2020
Balance — March 31, 2020	$	45,118	$	61	$	55,476	$	(52,285)	$	(408)	$	932	$	48,894
Net loss	—		—		—		(1,621)		—		—		(1,621)
Other comprehensive loss, net of taxes	—		—		—		—		—		(911)		(911)

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)



Stock based compensation expense	—		(22)		56		—		—		—		34
Balance — September 30, 2020	$	18,076	$	54	$	71,534	$	(40,381)	$	(2,908)	$	21	$	46,396


	Three Months Ended September 30,				Six Months Ended September 30,
$ in thousands except per share data	2021		2020		2021		2020
Net income (loss)	$	1,084	$	(809)	$	(1,672)	$	(1,621)
Less: Participated securities share of undistributed earnings	399		—		—		—
Net income (loss) available to common shareholders	$	685	$	(809)	$	(1,672)	$	(1,621)

Weighted average common shares outstanding - basic	3,498,861		3,775,728		3,440,827		3,737,905
Effect of dilutive shares	2,014,952		—		—		—
Weighted average common shares outstanding – diluted	5,513,813		3,775,728		3,440,827		3,737,905

Basic earnings (loss) per common share	$	0.20	$	(0.21)	$	(0.49)	$	(0.43)
Diluted earnings (loss) per common share	0.12		(0.21)		(0.49)		(0.43)


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


$ in thousands	At March 31, 2020		Other Comprehensive Loss, net of tax		At September 30, 2020
Net unrealized income (loss) on securities available-for-sale	$	932	$	(911)	$	21


	At September 30, 2021
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	638	$	28	$	—	$	666
Federal Home Loan Mortgage Corporation	25,980		46		631		25,395
Federal National Mortgage Association	14,019		—		436		13,583
Total mortgage-backed securities	40,637		74		1,067		39,644
U.S. Government Agency Securities	17,465		—		61		17,404

Corporate Bonds	5,273		—		338		4,935
Muni Securities	17,752		73		368		17,457
Asset-backed Securities	410		3		—		413
Total available-for-sale	$	81,537	$	150	$	1,834	$	79,853

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	574	$	58	$	—	$	632
Federal National Mortgage Association and Other	5,049		184		—		5,233


Total held-to maturity	$	5,623	$	242	$	—	$	5,865


	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	September 30, 2020
Proceeds	$	30,190
Gross gains	862


	At September 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	$	531	$	20,208	$	536	$	16,479	$	1,067	$	36,687
U.S. Government Agency securities	—		—		61		17,404		61		17,404

Corporate bonds	338		4,935		—		—		338		4,935

Muni securities	368		14,693		—		—		368		14,693

Total available-for-sale securities	$	1,237	$	39,836	$	597	$	33,883	$	1,834	$	73,719


	Six Months Ended September 30,
$ in thousands	2021		2020
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(1,672)	$	(1,621)

Adjustments to reconcile net loss to net cash (used in) provided by operating activities:
Provision for (recovery of) loan losses	276		(103)

Stock based compensation expense	98		34
Depreciation and amortization expense	513		519
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	(59)		358
Amortization and accretion of premiums and discounts — securities	246		274



Decrease (increase) in accrued interest receivable	41		(513)
Decrease in other assets	342		441
(Decrease) increase in other liabilities	(4,487)		1,580
Net cash (used in) provided by operating activities	(4,702)		27
CASH FLOWS FROM INVESTING ACTIVITIES
Purchases of investments: Available-for-sale	—		(58,861)

Proceeds from sales of investments: Available-for-sale	—		30,190
Proceeds from principal payments, maturities and calls of investments: Available-for-sale	7,849		7,002
Proceeds from principal payments, maturities and calls of investments: Held-to-maturity	2,165		630

Loans held-for investment activity, net of (originations) and repayments/payoffs	(15,684)		(24,183)
Loans purchased from third parties	(24,910)		(11,767)

Proceeds on sale of loans	3,926		—

(Purchase) redemption of FHLB-NY stock, net	(122)		16
Purchase of premises and equipment	(134)		(145)


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

One through five years	410		413		0.75	%
Five through ten years	7,849		7,896		1.91	%
After ten years	32,641		31,900		1.92	%
Mortgage-backed securities	40,637		39,644		1.29	%
Total	$	81,537	$	79,853	1.60	%

Held-to-maturity:



Mortgage-backed securities	$	5,623	$	5,865	2.51	%


	September 30, 2021				March 31, 2021
$ in thousands	Amount		Percent		Amount		Percent
Gross loans receivable:
One-to-four family	$	74,240	14.3	%	$	76,313	15.9	%
Multifamily	128,735		24.9	%	103,584		21.6	%
Commercial real estate	155,063		29.9	%	150,114		31.2	%

Business (1)	158,265		30.5	%	148,020		30.8	%
Consumer (2)	2,033		0.4	%	2,439		0.5	%
Total loans receivable	$	518,336	100.0	%	$	480,470	100.0	%

Unamortized premiums, deferred costs and fees, net	2,317				3,079

Allowance for loan losses	(5,515)				(5,140)
Total loans receivable, net	$	515,138			$	478,409


Six months ended September 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	—		—		—		—		(99)		—		(99)
Recoveries	—		—		—		50		20		128		198
Provision for (recovery of) Loan Losses	(43)		34		95		201		51		(62)		276

Ending Balance	$	1,015	$	914	$	1,002	$	2,106	$	137	$	341	$	5,515

Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	$	985	$	914	$	1,002	$	2,008	$	137	$	341	$	5,387
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	30		—		—		98		—		—		128

Loan Receivables Ending Balance:	$	75,202	$	129,589	$	156,197	$	157,627	$	2,038	$	—	$	520,653
Ending Balance: collectively evaluated for impairment	71,407		128,707		156,005		150,126		2,038		—		508,283
Ending Balance: individually evaluated for impairment	3,795		882		192		7,501		—		—		12,370


$ in thousands	Multifamily		Commercial Real Estate		Business
Credit Risk Profile by Internally Assigned Grade:
Pass	$	123,131	$	149,523	$	141,593
Special Mention	—		5,458		6,005
Substandard	6,458		1,216		10,029


Total	$	129,589	$	156,197	$	157,627

			One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing			$	71,702	$	2,038
Non-Performing			3,500		—
Total			$	75,202	$	2,038


September 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	$	1,511	$	270	$	2,940	$	4,721	$	70,481	$	75,202
Multifamily	561		455		517		1,533		128,056		129,589
Commercial real estate	824		—		—		824		155,373		156,197

Business	12,300		170		856		13,326		144,301		157,627
Consumer	220		—		—		220		1,818		2,038
Total	$	15,416	$	895	$	4,313	$	20,624	$	500,029	$	520,653


	For the Three Months Ended September 30,								For the Six Months Ended September 30,
	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	$	3,735	$	3	$	3,795	$	10	$	3,728	$	6	$	3,840	$	35
Multifamily	625		—		374		4		883		—		373		9
Commercial real estate	555		—		580		—		192		—		2,649		—

Business	2,245		—		2,608		26		2,199		—		2,555		55

With an allowance recorded:
One-to-four family	75		—		442		—		74		1		317		—


Business	5,383		73		602		—		5,363		149		602		—

Total	$	12,618	$	76	$	8,401	$	40	$	12,439	$	156	$	10,336	$	99


	Fair Value Measurements at September 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	$	—	$	—	$	134	$	134
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		666		—		666
Federal Home Loan Mortgage Corporation	—		25,395		—		25,395
Federal National Mortgage Association	—		13,583		—		13,583

U.S. Government Agency securities	—		17,404		—		17,404

Corporate bonds	—		4,935		—		4,935
Muni securities	—		17,457		—		17,457
Asset-backed securities	—		413		—		413
Total available-for-sale securities	—		79,853		—		79,853

Total assets	$	—	$	79,853	$	134	$	79,987


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




Mortgage servicing rights	147	(13)	—	—	134	(12)


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




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


	Fair Value Measurements at September 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	$	—	$	—	$	5,289	$	5,289
Other real estate owned	—		—		60		$	60


	September 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	$	79,130	$	79,130	$	79,130	$	—	$	—

Securities available-for-sale	79,853		79,853		—		79,853		—


Securities held-to-maturity	5,623		5,865		—		5,865		—
Loans receivable	515,138		530,090		—		—		530,090

Accrued interest receivable	2,599		2,599		—		2,599		—
Mortgage servicing rights	134		134		—		—		134

Financial Liabilities:
Deposits	$	603,365	$	601,460	$	454,167	$	147,293	$	—


Other borrowed money	21,453		21,228		—		21,228		—
Accrued interest payable	183		183		—		183		—


	September 30, 2021
Weighted-average remaining lease term
Operating leases	6.5 years
Finance lease	1.9 years

Weighted-average discount rate
Operating leases	2.95	%
Finance lease	1.78	%


$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2022	$	1,376	$	36
2023	2,619		30
2024	2,674		11
2025	2,458		3
2026	2,449		—
Thereafter	5,616		—
Total lease payments	17,192		80
Interest	(1,644)		(1)
Lease liability	$	15,548	$	79


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	$	13,125	$	400	$	—	$	—	$	13,525


	September 30, 2021
($ in thousands)	Amount		Ratio
Tier 1 leverage capital
Regulatory capital	$	67,272	9.99	%
Individual minimum capital requirement	60,634		9.00	%
Minimum capital requirement	26,949		4.00	%
Excess over individual minimum capital requirement	6,638		0.99	%

Common equity Tier 1
Regulatory capital	$	67,272	13.44	%
Minimum capital requirement	35,051		7.00	%
Excess	32,221		6.44	%

Tier 1 risk-based capital
Regulatory capital	$	67,272	13.44	%
Minimum capital requirement	42,561		8.50	%
Excess	24,711		4.94	%

Total risk-based capital
Regulatory capital	$	72,993	14.58	%
Individual minimum capital requirement	60,087		12.00	%
Minimum capital requirement	52,576		10.50	%
Excess over individual minimum capital requirement	12,906		2.58	%


$ 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	(307)
Open claims as of September 30, 2021 (1)	$	1,380


$ in thousands	September 30, 2021
Representation and warranty repurchase reserve, March 31, 2021 (1)	$	181
Net adjustment to reserve for repurchase losses (2)	(6)

Representation and warranty repurchase reserve, September 30, 2021 (1)	$	175


$ in thousands
Commitments to fund mortgage loans	$	21,218
Commitments to fund commercial and consumer loans	$	500
Lines of credit	2,857

Commitment to fund private equity investment	253
Total	$	24,828


	Three Months Ended September 30,						Six Months Ended September 30,
Selected Financial Data:	2021			2020			2021			2020
Return on average assets (1)	0.63	%		(0.48)	%		(0.49)	%		(0.50)	%
Return on average stockholders' equity (2)	8.32	%		(6.82)	%		(6.37)	%		(6.78)	%
Return on average stockholders' equity, excluding AOCI (2) (8)	8.21	%		(6.84)	%		(6.19)	%		(6.83)	%
Net interest margin (3)	3.14	%		2.42	%		2.97	%		2.40	%
Interest rate spread (4)	3.02	%		2.21	%		2.83	%		2.18	%
Efficiency ratio (5)	84.53	%		113.85	%		109.55	%		115.57	%
Operating expenses to average assets (6)	4.11	%		3.98	%		4.66	%		3.95	%
Average stockholders' equity to average assets (7)	7.62	%		7.10	%		7.65	%		7.37	%
Average stockholders' equity, excluding AOCI, to average assets (7) (8)	7.71	%		7.07	%		7.87	%		7.32	%
Average interest-earning assets to average interest-bearing liabilities	1.37		x	1.29		x	1.36		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	Six Months Ended September 30, 2021			Fiscal Year Ended March 31, 2021			Six Months Ended September 30, 2020
Beginning Balance	5,140			$	4,946		$	4,946
Less: Charge-offs	(99)			(78)			(19)
Add: Recoveries	198			372			92
(Recovery of) provision for loan losses	276			(100)			(103)

Ending Balance	$	5,515		$	5,140		$	4,916

Ratios:
Net recoveries to average loans outstanding (annualized)	0.04		%	0.06		%	0.03		%
Allowance to total loans	1.06		%	1.06		%	1.06		%
Allowance to non-performing loans	82.04		%	71.48		%	66.26		%


	Non Performing Assets

$ in thousands	September 30, 2021			June 30, 2021			March 31, 2021			December 31, 2020			September 30, 2020
Loans accounted for on a nonaccrual basis (1):
Gross loans receivable:
One-to-four family	$	3,500		$	3,511		$	3,524		$	3,532		$	3,541
Multifamily	882			885			369			372			372
Commercial real estate	192			192			918			1,160			1,160

Business	2,148			2,211			2,290			2,413			2,346
Consumer	—			—			90			—			—
Total nonaccrual loans	6,722			6,799			7,191			7,477			7,419
Other non-performing assets (2):
Real estate owned	60			60			60			60			60


Total non-performing assets (3)	$	6,782		$	6,859		$	7,251		$	7,537		$	7,479



Non-performing loans to total loans	1.29		%	1.39		%	1.49		%	1.60		%	1.60		%
Non-performing assets to total assets	0.96		%	1.00		%	1.07		%	1.10		%	1.11		%
Allowance to total loans	1.06		%	1.07		%	1.06		%	1.10		%	1.06		%
Allowance to non-performing loans	82.04		%	76.69		%	71.48		%	68.72		%	66.26		%

(1) Nonaccrual status denotes any loan where the delinquency exceeds 90 days past due, or in the opinion of management, the collection of contractual interest and/or principal is doubtful. Payments received on a nonaccrual loan are either applied to the outstanding principal balance or recorded as interest income, depending on assessment of the ability to collect on the loan.
(2) Other non-performing assets generally represent loans that the Bank is in the process of selling and has designated held-for-sale or property acquired by the Bank in settlement of loans less costs to sell (i.e., through foreclosure, repossession or as an in-substance foreclosure). These assets are recorded at the lower of their cost or fair value.
(3) Troubled debt restructured loans performing in accordance with their modified terms for less than six months and those not performing in accordance with their modified terms are considered nonaccrual and are included in the nonaccrual category in the table above. At September 30, 2021, there were $5.6 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			Preferred Stock Purchase Agreement, by and between Carver Bancorp, Inc. and J.P. Morgan Chase Community Development Corporation, dated September 27, 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 September 30, 2021, formatted in XBRL (Extensive Business Reporting Language): (i) Consolidated Statements of Financial Condition as of September 30, 2021 (unaudited) and March 31, 2021; (ii) Consolidated Statements of Operations for the three and six months ended September 30, 2021 and 2020 (unaudited); (iii) Consolidated Statements of Comprehensive Loss for the three and six months ended September 30, 2021 and 2020 (unaudited); (iv) Consolidated Statements of Changes in Equity for the three and six months ended September 30, 2021 and 2020 (unaudited); (v) Consolidated Statements of Cash Flows for the six months ended September 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 September 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 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 September 30, 2021.