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Investment Securities (Notes) | 12 Months Ended
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Mar. 31, 2019
Investments, Debt and Equity Securities [Abstract] |
Investment Securities | INVESTMENT SECURITIES The Bank utilizes mortgage-backed and other investment securities in its asset/liability management strategy. In making investment decisions, the Bank considers, among other things, its yield and interest rate objectives, its interest rate and credit risk position, and its liquidity and cash flow. Generally, the investment policy of the Bank is to invest funds among categories of investments and maturities based upon the Bank’s asset/liability management policies, investment quality, loan and deposit volume and collateral requirements, liquidity needs and performance objectives. GAAP requires that securities be classified into three categories: trading, held-to-maturity, and available-for-sale. At March 31, 2019, securities with fair value of $79.8 million, or 87.3%, of the Bank’s total securities were classified as available-for-sale, and the remaining securities with amortized cost of $11.1 million, or 12.2%, were classified as held-to-maturity. The Bank had no securities classified as trading at March 31, 2019 and March 31, 2018. Equity securities primarily consist of the Bank's investment in a Community Reinvestment Act ("CRA") mutual fund and other equity investments. As a result of the adoption of ASU 2016-01 in April 2018, the Company determined that these investments fall under the provisions of ASU 2016-01, and accordingly, were transferred from available-for-sale and reclassified into equity securities on the Statement of Financial Condition. These securities are measured at fair value with unrealized holding gains and losses reflected in net income. Effective April 1, 2018, the Company recorded a cumulative effect adjustment of $721 thousand as a reclassification from accumulated other comprehensive loss to retained earnings. Additionally, all future changes in fair value will be recognized in the Statements of Operations. The Bank redeemed its $9.2 million investment in the CRA mutual fund during the third quarter of fiscal year 2019. The following tables set forth the amortized cost and fair value of securities available-for-sale and held-to-maturity at March 31, 2019 and March 31, 2018:
| At March 31, 2019
| Amortized |  | Gross Unrealized |  |
$ in thousands | Cost |  | Gains |  | Losses |  | Fair Value
Available-for-Sale: |  |  |  |  |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |
Government National Mortgage Association | $ | 4,443 |  |  | $ | 25 |  |  | $ | 86 |  |  | $ | 4,382 |
Federal Home Loan Mortgage Corporation | 11,104 |  |  | 69 |  |  | 148 |  |  | 11,025 |
Federal National Mortgage Association | 27,094 |  |  | 131 |  |  | 617 |  |  | 26,608 |
Total mortgage-backed securities | 42,641 |  |  | 225 |  |  | 851 |  |  | 42,015 |
U.S. Government Agency Securities | 33,089 |  |  | — |  |  | 236 |  |  | 32,853 |
Corporate Bonds | 5,054 |  |  | — |  |  | 77 |  |  | 4,977 |
Total available-for-sale | $ | 80,784 |  |  | $ | 225 |  |  | $ | 1,164 |  |  | $ | 79,845 |
Held-to-Maturity*: |  |  |  |  |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |
Government National Mortgage Association | 1,214 |  |  | 40 |  |  | — |  |  | 1,254 |
Federal National Mortgage Association | 8,923 |  |  | — |  |  | 87 |  |  | 8,836 |
Total held-to-maturity mortgage-backed securities | 10,137 |  |  | 40 |  |  | 87 |  |  | 10,090 |
Corporate Bonds | 1,000 |  |  | 17 |  |  | — |  |  | 1,017 |
Total held-to-maturity | $ | 11,137 |  |  | $ | 57 |  |  | $ | 87 |  |  | $ | 11,107 |
| At March 31, 2018
| Amortized |  | Gross Unrealized |  |
$ in thousands | Cost |  | Gains |  | Losses |  | Fair Value
Available-for-Sale: |  |  |  |  |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |
Government National Mortgage Association | $ | 2,163 |  |  | $ | — |  |  | $ | 97 |  |  | $ | 2,066 |
Federal Home Loan Mortgage Corporation | 6,633 |  |  | — |  |  | 283 |  |  | 6,350 |
Federal National Mortgage Association | 24,638 |  |  | — |  |  | 1,227 |  |  | 23,411 |
Total mortgage-backed securities | 33,434 |  |  | — |  |  | 1,607 |  |  | 31,827 |
U.S. Government Agency Securities | 14,490 |  |  | — |  |  | 258 |  |  | 14,232 |
Corporate Bonds | 5,078 |  |  | — |  |  | 212 |  |  | 4,866 |
Other investments (1) | 10,433 |  |  | — |  |  | 649 |  |  | 9,784 |
Total available-for-sale | $ | 63,435 |  |  | $ | — |  |  | $ | 2,726 |  |  | $ | 60,709 |
Held-to-Maturity*: |  |  |  |  |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |
Government National Mortgage Association | $ | 1,434 |  |  | $ | 51 |  |  | $ | — |  |  | $ | 1,485 |
Federal National Mortgage Association and Other | 9,641 |  |  | — |  |  | 247 |  |  | 9,394 |
Total held-to-maturity mortgage-backed securities | 11,075 |  |  | 51 |  |  | 247 |  |  | 10,879 |
Corporate Bonds | 1,000 |  |  | 30 |  |  | — |  |  | 1,030 |
Total held-to-maturity | $ | 12,075 |  |  | $ | 81 |  |  | $ | 247 |  |  | $ | 11,909 |
* The carrying amount and amortized cost are the same for all held-to-maturity securities, as no OTTI has been recorded. (1) Primarily comprised of an investment in a CRA fund with 95% of its underlying investments consisting of government and agency backed securities. There were no sales of available-for-sale securities for the year ended March 31, 2018. The following is a summary regarding proceeds, gross gains and gross losses realized from the sale of securities from the available-for-sale portfolio for the year ended March 31, 2019.
$ in thousands | 2019
Proceeds | $ | 20,487 |
Gross gains | 12 |
Gross losses | 28 |
There were no sales of held-to-maturity securities in fiscal years 2019 or 2018. The Bank's investment portfolio is comprised primarily of fixed-rate mortgage-backed securities guaranteed by a Government Sponsored Enterprise (“GSE”) as issuer and Agency securities. Carver maintains a portfolio of mortgage-backed securities in the form of Government National Mortgage Association (“GNMA”) pass-through certificates, Federal National Mortgage Association (“FNMA”) and Federal Home Loan Mortgage Corporation (“FHLMC”) participation certificates. GNMA pass-through certificates are guaranteed as to the payment of principal and interest by the full faith and credit of the United States Government, while FNMA and FHLMC certificates are each guaranteed by their respective agencies as to principal and interest. Based on the high quality of the Bank's investment portfolio, current market conditions have not significantly impacted the pricing of the portfolio or the Bank's ability to obtain reliable prices. At March 31, 2019, the Bank pledged securities of $24.6 million as collateral for advances from the FHLB-NY. The following tables set forth the unrealized losses and fair value of securities in an unrealized loss position at March 31, 2019 and March 31, 2018 for less than 12 months and 12 months or longer:
| At March 31, 2019
| 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 | $ | — |  |  | $ | — |  |  | $ | 851 |  |  | $ | 26,787 |  |  | $ | 851 |  |  | $ | 26,787 |
U.S. Government Agency Securities | 23 |  |  | 20,851 |  |  | 213 |  |  | 12,002 |  |  | 236 |  |  | 32,853 |
Corporate bonds | — |  |  | — |  |  | 77 |  |  | 4,977 |  |  | 77 |  |  | 4,977 |
Total available-for-sale securities | $ | 23 |  |  | $ | 20,851 |  |  | $ | 1,141 |  |  | $ | 43,766 |  |  | $ | 1,164 |  |  | $ | 64,617 |
Held-to-Maturity: |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities | $ | — |  |  | $ | — |  |  | $ | 87 |  |  | $ | 8,752 |  |  | $ | 87 |  |  | $ | 8,752 |
Total held-to-maturity securities | $ | — |  |  | $ | — |  |  | $ | 87 |  |  | $ | 8,752 |  |  | $ | 87 |  |  | $ | 8,752 |
| At March 31, 2018
| 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 | $ | 101 |  |  | $ | 3,702 |  |  | $ | 1,506 |  |  | $ | 28,124 |  |  | $ | 1,607 |  |  | $ | 31,826 |
U.S. Government Agency Securities | 80 |  |  | 7,666 |  |  | 178 |  |  | 6,566 |  |  | 258 |  |  | 14,232 |
Corporate bonds | — |  |  | — |  |  | 212 |  |  | 4,866 |  |  | 212 |  |  | 4,866 |
Other investments (1) | — |  |  | — |  |  | 649 |  |  | 9,351 |  |  | 649 |  |  | 9,351 |
Total available-for-sale securities | $ | 181 |  |  | $ | 11,368 |  |  | $ | 2,545 |  |  | $ | 48,907 |  |  | $ | 2,726 |  |  | $ | 60,275 |
Held-to-Maturity: |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities | $ | 188 |  |  | $ | 7,681 |  |  | $ | 59 |  |  | $ | 1,612 |  |  | $ | 247 |  |  | $ | 9,293 |
Total held-to-maturity securities | $ | 188 |  |  | $ | 7,681 |  |  | $ | 59 |  |  | $ | 1,612 |  |  | $ | 247 |  |  | $ | 9,293 |
(1) Primarily comprised of an investment in a CRA fund with 95% of its underlying investments consisting of government and agency backed securities. A total of 35 securities had an unrealized loss at March 31, 2019 and March 31, 2018. U.S. government agency securities and mortgage-backed securities represented 50.8% and 41.5%,respectively, of total available-for-sale securities in an unrealized loss position at March 31, 2019. There were 18 mortgage-backed securities, three U.S. government agency securities, and five corporate bonds that had an unrealized loss position for more than 12 months at March 31, 2019. The cause of the temporary impairment is directly related to changes in interest rates. In general, as interest rates decline, the fair value of securities will rise, and conversely as interest rates rise, the fair value of securities will decline. Management considers fluctuations in fair value as a result of interest rate changes to be temporary, which is consistent with the Bank's experience. The impairments are deemed temporary based on the direct relationship of the change in fair value to movements in interest rates, the life of the investments and their high credit quality. Given the high credit quality of the securities which are backed by the U.S. government's guarantees, and the corporate securities which are all reputable institutions in good financial standing, the risk of credit loss is minimal. Management believes that these unrealized losses are a direct result of the current rate environment and has the ability and intent to hold the securities until maturity or the valuation recovers. The amount of an other-than-temporary impairment when there are credit and non-credit losses on a debt security which management does not intend to sell, and for which it is more likely than not that the Company will not be required to sell the security prior to the recovery of the non-credit impairment is accounted for as follows: (1) the portion of the total impairment that is attributable to the credit loss would be recognized in earnings, and (2) the remaining difference between the debt security's amortized cost basis and its fair value would be included in other comprehensive income (loss). During the fiscal year ended March 31, 2018, the Bank recognized an impairment of less than $500 on a mortgage-backed security. The Bank did not have any other securities that were classified as having other-than-temporary impairment in its investment portfolio at March 31, 2019. The following is a summary of the amortized cost and fair value of debt securities at March 31, 2019, by remaining period to contractual maturity (ignoring earlier call dates, if any). Actual maturities may differ from contractual maturities because certain security issuers have the right to call or prepay their obligations. The table below does not consider the effects of possible prepayments or unscheduled repayments.
$ in thousands | Amortized Cost |  | Fair Value |  | Weighted Average Yield
Available-for-Sale: |  |  |  |  |
Less than one year | $ | 1,005 |  |  | $ | 998 |  |  | 1.65 | %
One through five years | 8,279 |  |  | 8,116 |  |  | 1.72 | %
Five through ten years | 17,775 |  |  | 17,590 |  |  | 2.84 | %
After ten years | 53,725 |  |  | 53,141 |  |  | 2.76 | %
| 80,784 |  |  | 79,845 |  |  | 2.65 | %
Held-to-maturity: |  |  |  |  |
One through five years | $ | 4,555 |  |  | $ | 4,530 |  |  | 2.40 | %
Five through ten years | 4,381 |  |  | 4,377 |  |  | 3.31 | %
After ten years | 2,201 |  |  | 2,200 |  |  | 2.87 | %
| $ | 11,137 |  |  | $ | 11,107 |  |  | 2.85 | %

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- Definition The entire disclosure for investments, including all tables. + References Reference 1: http://www.xbrl.org/2003/role/presentationRef -Publisher SEC -Name Regulation S-X (SX) -Number 210 -Article 6 -Section 10 -Paragraph (c) -Subparagraph (1) + Details
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