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Loans Receivable, Net | 12 Months Ended
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Mar. 31, 2022
Loans and Leases Receivable Disclosure [Abstract] |
Loans Receivable, Net | LOANS RECEIVABLE, NET The following is a summary of loans receivable, net of allowance for loan losses at March 31:
| March 31, 2022 |  | March 31, 2021
$ in thousands | Amount |  | % |  | Amount |  | %
Gross loans receivable: |  |  |  |  |  |  |
One-to-four family | $ | 69,297 |  |  | 12.0 | % |  | $ | 76,313 |  |  | 15.9 | %
Multifamily | 160,800 |  |  | 27.9 | % |  | 103,584 |  |  | 21.6 | %
Commercial real estate | 174,270 |  |  | 30.2 | % |  | 150,114 |  |  | 31.2 | %
Business (1) | 170,497 |  |  | 29.6 | % |  | 148,020 |  |  | 30.8 | %
Consumer (2) | 1,623 |  |  | 0.3 | % |  | 2,439 |  |  | 0.5 | %
Total loans receivable | 576,487 |  |  | 100.0 | % |  | 480,470 |  |  | 100.0 | %
Unamortized premiums, deferred costs and fees, net | 3,017 |  |  |  |  | 3,079 |  |  |
Allowance for loan losses | (5,624) |  |  |  |  | (5,140) |  |  |
Total loans receivable, net | $ | 573,880 |  |  |  |  | $ | 478,409 |  |  |
(1) Includes business overdrafts of $5 thousand and $10 thousand as of March 31, 2022 and 2021, respectively (2) Includes consumer overdrafts of $31 thousand and $44 thousand as of March 31, 2022 and 2021, respectively Substantially all of the Bank's real estate loans receivable are principally secured by properties located in New York City. Accordingly, as with most financial institutions in the market area, the ultimate collectability of a substantial portion of the Company's loan portfolio is susceptible to changes in market conditions in this area. Real estate mortgage loan portfolios (one-to-four family) serviced for Federal National Mortgage Association (“FNMA”) and other third parties are not included in the accompanying consolidated financial statements. The unpaid principal balances of these loans aggregated $14.5 million and $16.8 million at March 31, 2022 and 2021, respectively. At March 31, 2022 the Bank pledged $58.3 million in total real estate mortgage loans as collateral for advances from the FHLB-NY. The Bank participated as a lender in the Paycheck Protection Program ("PPP"), which opened on April 3, 2020. As part of the CARES Act, the Small Business Administration ("SBA") was authorized to temporarily guarantee loans under this new 7(a) loan program. Under the PPP, small businesses and other entities and individuals could apply for loans from existing SBA lenders and other approved regulated lenders that enroll in the program, subject to numerous limitations and eligibility criteria. Since the PPP loans are fully guaranteed by the SBA, there are no additional ALLL reserves required. As of March 31, 2022, the Bank had approved and funded approximately 420 applications totaling $57.1 million of loans under the PPP. Business loans included PPP loans outstanding totaling $17.9 million as of March 31, 2022. The net loan origination fees on these loans totaled approximately $399 thousand and are being recognized into interest income on loans over the 2-year and 5-year stated maturity terms of the PPP loans using the straight-line deferral method. The Bank has begun to receive debt forgiveness payments on PPP loans closed during the first and second rounds of the program. Consistent with regulatory guidance and the provisions of the CARES Act, loans less than 30 days past due at December 31, 2019 that were granted COVID-19 related payment deferrals continued to be considered current and not reported as TDRs. For the fiscal year ended March 31, 2021, the Bank received 83 applications for payment deferrals on approximately $90.4 million of loans. The Bank has been working with the borrowers to determine if there is a risk of any losses associated with repayment and if any additional reserves would have to be allocated to this portfolio. At March 31, 2022, no loans were on COVID-related deferrals as the remaining 90-day loan deferments expired and borrowers became current. The following is an analysis of the allowance for loan losses based upon the method of evaluating loan impairment for the fiscal year ended March 31, 2022:
$ 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 |  | — |  |  | — |  |  | — |  |  |  |  | — |  |  | (257) |  |  | — |  |  | (257) |
Recoveries |  | 13 |  |  | — |  |  | — |  |  |  |  | 102 |  |  | 23 |  |  | — |  |  | 138 |
Provision for (Recovery of) Loan Losses |  | (340) |  |  | 234 |  |  | 250 |  |  |  |  | 540 |  |  | 192 |  |  | (273) |  |  | 603 |
Ending Balance |  | $ | 731 |  |  | $ | 1,114 |  |  | $ | 1,157 |  |  |  |  | $ | 2,497 |  |  | $ | 123 |  |  | $ | 2 |  |  | $ | 5,624 |
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment |  | $ | 731 |  |  | $ | 1,114 |  |  | $ | 1,157 |  |  |  |  | $ | 2,428 |  |  | $ | 123 |  |  | $ | 2 |  |  | $ | 5,555 |
Allowance for Loan Losses Ending Balance: individually evaluated for impairment |  | — |  |  | — |  |  | — |  |  |  |  | 69 |  |  | — |  |  | — |  |  | 69 |
Loan Receivables Ending Balance |  | $ | 70,261 |  |  | $ | 162,261 |  |  | $ | 175,313 |  |  |  |  | $ | 170,031 |  |  | $ | 1,638 |  |  | $ | — |  |  | $ | 579,504 |
Ending Balance: collectively evaluated for impairment |  | 65,369 |  |  | 161,746 |  |  | 175,313 |  |  |  |  | 163,991 |  |  | 1,638 |  |  | — |  |  | 568,057 |
Ending Balance: individually evaluated for impairment |  | 4,892 |  |  | 515 |  |  | — |  |  |  |  | 6,040 |  |  | — |  |  | — |  |  | 11,447 |
The following is an analysis of the allowance for loan losses based upon the method of evaluating loan impairment for the fiscal year ended March 31, 2021:
$ in thousands |  | One-to-four family |  | Multifamily |  | Commercial Real Estate |  |  |  | Business |  | Consumer |  | Unallocated |  | Total
Allowance for loan losses: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Beginning Balance |  | $ | 1,055 |  |  | $ | 1,011 |  |  | $ | 812 |  |  |  |  | $ | 1,567 |  |  | $ | 212 |  |  | $ | 289 |  |  | $ | 4,946 |
Charge-offs |  | — |  |  | — |  |  | — |  |  |  |  | (24) |  |  | (54) |  |  | — |  |  | (78) |
Recoveries |  | 88 |  |  | — |  |  | — |  |  |  |  | 278 |  |  | 6 |  |  | — |  |  | 372 |
Provision for (Recovery of) Loan Losses |  | (85) |  |  | (131) |  |  | 95 |  |  |  |  | 34 |  |  | 1 |  |  | (14) |  |  | (100) |
Ending Balance |  | $ | 1,058 |  |  | $ | 880 |  |  | $ | 907 |  |  |  |  | $ | 1,855 |  |  | $ | 165 |  |  | $ | 275 |  |  | $ | 5,140 |
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 |
The following is a summary of nonaccrual loans at March 31, 2022 and 2021.
$ in thousands | March 31, 2022 |  | March 31, 2021
Loans accounted for on a nonaccrual basis: |  |  |
Gross loans receivable: |  |  |
One-to-four family | $ | 4,892 |  |  | $ | 3,524 |
Multifamily | 515 |  |  | 369 |
Commercial real estate | 4,601 |  |  | 918 |
Business | 1,448 |  |  | 2,290 |
Consumer | 25 |  |  | 90 |
Total nonaccrual loans | $ | 11,481 |  |  | $ | 7,191 |
Nonaccrual loans generally consist of loans for which the accrual of interest has been discontinued as a result of such loans becoming 90 days or more delinquent as to principal and/or interest payments. Interest income on nonaccrual loans is recorded when received based upon the collectability of the loan. TDR loans consist of modified loans where borrowers have been granted concessions in regards to the terms of their loans due to financial or other difficulties, which rendered them unable to repay their loans under the original contractual terms. At March 31, 2022 and March 31, 2021, other non-performing assets totaled $60 thousand, which consisted of other real estate owned comprised of one foreclosed residential property. Other real estate loans is included in other assets in the consolidated statements of financial condition. There were no held-for-sale loans at March 31, 2022 and March 31, 2021. One-to-four family residential loans and consumer and other loans are rated non-performing if they are delinquent in payments ninety or more days, a troubled debt restructuring with less than six months contractual performance or past maturity. All other one-to-four family residential loans and consumer and other loans are performing loans. As of March 31, 2022, and based on the most recent analysis performed in the current quarter, the risk category by class of loans is as follows:
$ in thousands | Multifamily |  | Commercial Real Estate |  |  |  | Business
Credit Risk Profile by Internally Assigned Grade: |  |  |  |  |  |
Pass | $ | 155,274 |  |  | $ | 164,543 |  |  |  |  | $ | 155,196 |
Special Mention | 897 |  |  | 8,157 |  |  |  |  | 6,302 |
Substandard | 6,090 |  |  | 2,613 |  |  |  |  | 8,533 |
Total | $ | 162,261 |  |  | $ | 175,313 |  |  |  |  | $ | 170,031 |
| One-to-four family |  | Consumer |  |  |  |
Credit Risk Profile Based on Payment Activity: |  |  |  |  |  |
Performing | $ | 65,369 |  |  | $ | 1,613 |  |  |  |  |
Non-Performing | 4,892 |  |  | 25 |  |  |  |  |
Total | $ | 70,261 |  |  | $ | 1,638 |  |  |  |  |
As of March 31, 2021, the risk category by class of loans was as follows:
$ in thousands | Multifamily |  | Commercial Real Estate |  |  |  | Business
Credit Risk Profile by Internally Assigned Grade: |  |  |  |  |  |
Pass | $ | 101,212 |  |  | $ | 142,168 |  |  |  |  | $ | 137,447 |
Special Mention | — |  |  | 5,531 |  |  |  |  | 1,585 |
Substandard | 5,188 |  |  | 1,110 |  |  |  |  | 8,648 |
Total | $ | 106,400 |  |  | $ | 148,809 |  |  |  |  | $ | 147,680 |
| One-to-four family |  | Consumer |  |  |  |
Credit Risk Profile Based on Payment Activity: |  |  |  |  |  |
Performing | $ | 74,689 |  |  | $ | 2,356 |  |  |  |  |
Non-Performing | 3,524 |  |  | 91 |  |  |  |  |
Total | $ | 78,213 |  |  | $ | 2,447 |  |  |  |  |
The following tables presents an aging analysis of the recorded investment of past due loans receivable at March 31, 2022 and 2021.
March 31, 2022 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
$ in thousands | 30-59 Days Past Due |  | 60-89 Days Past Due |  | 90 or More Days Past Due |  | Total Past Due |  |  |  |  |  |  |  | Current |  | Total Loans Receivable
One-to-four family | $ | 1,943 |  |  | $ | — |  |  | $ | 5,229 |  |  | $ | 7,172 |  |  |  |  |  |  |  |  | $ | 63,089 |  |  | $ | 70,261 |
Multifamily | 4,435 |  |  | 115 |  |  | 515 |  |  | 5,065 |  |  |  |  |  |  |  |  | 157,196 |  |  | 162,261 |
Commercial real estate | 4,010 |  |  | — |  |  | 4,601 |  |  | 8,611 |  |  |  |  |  |  |  |  | 166,702 |  |  | 175,313 |
Business | 923 |  |  | 40 |  |  | 664 |  |  | 1,627 |  |  |  |  |  |  |  |  | 168,404 |  |  | 170,031 |
Consumer | 84 |  |  | 45 |  |  | 25 |  |  | 154 |  |  |  |  |  |  |  |  | 1,484 |  |  | 1,638 |
Total | $ | 11,395 |  |  | $ | 200 |  |  | $ | 11,034 |  |  | $ | 22,629 |  |  |  |  |  |  |  |  | $ | 556,875 |  |  | $ | 579,504 |
March 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 Receivable
One-to-four family | $ | 1,188 |  |  | $ | — |  |  | $ | 2,950 |  |  | $ | 4,138 |  |  |  |  |  |  |  |  | $ | 74,075 |  |  | $ | 78,213 |
Multifamily | 798 |  |  | — |  |  | — |  |  | 798 |  |  |  |  |  |  |  |  | 105,602 |  |  | 106,400 |
Commercial real estate | 5,263 |  |  | — |  |  | — |  |  | 5,263 |  |  |  |  |  |  |  |  | 143,546 |  |  | 148,809 |
Business | 671 |  |  | 400 |  |  | 271 |  |  | 1,342 |  |  |  |  |  |  |  |  | 146,338 |  |  | 147,680 |
Consumer | 2 |  |  | 33 |  |  | 91 |  |  | 126 |  |  |  |  |  |  |  |  | 2,321 |  |  | 2,447 |
Total | $ | 7,922 |  |  | $ | 433 |  |  | $ | 3,312 |  |  | $ | 11,667 |  |  |  |  |  |  |  |  | $ | 471,882 |  |  | $ | 483,549 |
At March 31, 2022 and 2021, there were no loans 90 or more days past due and accruing interest. The following tables present information on impaired loans with the associated allowance amount, if applicable, at March 31, 2022 and 2021. Management determined the specific allowance based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the remaining source of repayment for the loan is the operation or liquidation of the collateral. In those cases, the current fair value of the collateral, less selling costs was used to determine the specific allowance recorded. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method. Interest income of $266 thousand and $161 thousand for fiscal years 2022 and 2021 respectively, would have been recorded on impaired loans had they performed in accordance with their original terms.
Impaired Loans by Class
| At March 31,
| 2022 |  | 2021
$ in thousands | Recorded Investment |  | Unpaid Principal Balance |  | Associated Allowance |  | Recorded Investment |  | Unpaid Principal Balance |  | Associated Allowance
With no specific allowance recorded: |  |  |  |  |  |  |  |  |  |  |
One-to-four family | $ | 4,892 |  |  | $ | 5,576 |  |  | $ | — |  |  | $ | 3,750 |  |  | $ | 4,409 |  |  | $ | — |
Multifamily | 515 |  |  | 515 |  |  | — |  |  | 369 |  |  | 369 |  |  | — |
Commercial real estate | — |  |  | — |  |  | — |  |  | 918 |  |  | 918 |  |  | — |
Business | 837 |  |  | 909 |  |  | — |  |  | 2,332 |  |  | 2,527 |  |  | — |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |
One-to-four family | — |  |  | — |  |  | — |  |  | 76 |  |  | 72 |  |  | 32 |
Business | 5,203 |  |  | 5,203 |  |  | 69 |  |  | 5,423 |  |  | 5,423 |  |  | 126 |
Total | $ | 11,447 |  |  | $ | 12,203 |  |  | $ | 69 |  |  | $ | 12,868 |  |  | $ | 13,718 |  |  | $ | 158 |
The following table presents information on average balances on impaired loans and the interest income recognized for the years ended March 31, 2022 and 2021.
| For the years ended March 31, |  |  |  |
| 2022 |  | 2021 |  |
$ in thousands | Average Balance |  | Interest Income recognized |  | Average Balance |  | Interest Income recognized |  |  |  |
With no specific allowance recorded: |  |  |  |  |  |  |  |  |  |  |
One-to-four family | $ | 4,321 |  |  | $ | 50 |  |  | $ | 4,119 |  |  | $ | 64 |  |  |  |  |
Multifamily | 442 |  |  | 16 |  |  | 1,791 |  |  | 16 |  |  |  |  |
Commercial real estate | 459 |  |  | 7 |  |  | 697 |  |  | 10 |  |  |  |  |
Business | 1,585 |  |  | 33 |  |  | 2,153 |  |  | 102 |  |  |  |  |
With an allowance recorded: |  |  |  |  |  |  |  |  |  |  |
One-to-four family | 38 |  |  | — |  |  | 503 |  |  | — |  |  |  |  |
Business | 5,313 |  |  | 217 |  |  | 3,355 |  |  | — |  |  |  |  |
Total | $ | 12,158 |  |  | $ | 323 |  |  | $ | 12,618 |  |  | $ | 192 |  |  |  |  |
In certain circumstances, loan modifications involve a troubled borrower to whom the Bank may grant a concession. In cases where the Bank grants any significant concessions to a troubled borrower, the Bank accounts for the modification as a TDR. Situations around these modifications may include extension of maturity date, reduction in the stated interest rate, rescheduling of future cash flows, reduction in the face amount of the debt or reduction of past accrued interest. Loans modified in TDRs are placed on nonaccrual status until the Company determines that future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrate performance according to the restructured terms for a period of at least six months. There were no loan modifications made during the twelve months ended March 31, 2022. There was one loan modification made during the twelve months ended March 31, 2021. The following table presents an analysis of the loan modification that was classified as a TDR during the twelve month period ended March 31, 2021,
|  | Modifications to loans during the years ended March 31, 2021 |  |  |  |  |  |  |  |  |  |
$ in thousands |  | Number of loans |  | Pre-Modification Recorded Investment |  | Post-Modification Recorded investment |  | Pre-Modification rate |  | Post-Modification rate |  |  |  |  |  |  |  |  |  |
Business |  | 1 |  |  | 4,949 |  |  | 4,949 |  |  | 6.68 | % |  | 5.50 | % |  |  |  |  |  |  |  |  |  |
In an effort to proactively resolve delinquent loans, Carver has selectively extended to certain borrowers concessions such as extensions, rate reductions or forbearance agreements. For the fiscal years ended March 31, 2022 and 2021, there were no modified loans that defaulted within the last 12 months of modification. Total TDR loans at March 31, 2022 were $6.9 million, $1.7 million of which were non-performing as they were either not consistently performing in accordance with their modified terms or not performing in accordance with their modified terms for at least six months. At March 31, 2021, total TDR loans were $7.5 million, of which $1.8 million were non-performing. Transactions With Certain Related Persons Federal law requires that all loans or extensions of credit to executive officers and directors must be made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with the general public and must not involve more than the normal risk of repayment or present other unfavorable features. The aggregate amount of loans outstanding to related parties was $30 thousand at March 31, 2022 and $60 thousand at March 31, 2021. During fiscal year 2022, there were no advances and principal repayments totaled $30 thousand. Furthermore, loans above the greater of $25,000, or 5% of Carver Federal’s capital and surplus (up to $500,000), to Carver Federal’s directors and executive officers must be approved in advance by a majority of the disinterested members of Carver Federal’s Board of Directors.

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- Definition The entire disclosure for claims held for amounts due a entity, excluding financing receivables. Examples include, but are not limited to, trade accounts receivables, notes receivables, loans receivables. Includes disclosure for allowance for credit losses. + References Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef -Publisher FASB -Name Accounting Standards Codification -Topic 310 -SubTopic 10 -URI http://asc.fasb.org/subtopic&trid=2196772 + Details
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