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Investment Securities | 12 Months Ended
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Mar. 31, 2024
Investments, Debt and Equity Securities [Abstract] |
Investments in Debt and Marketable Equity Securities (and Certain Trading Assets) Disclosure | INVESTMENT SECURITIES 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. Debt securities are classified into three categories: trading, held-to-maturity, and available-for-sale. At March 31, 2024, securities with fair value of $48.0 million, or 96.0%, of the Bank’s total securities were classified as available-for-sale, and the remaining securities with amortized cost of $2.0 million, or 4.0%, were classified as held-to-maturity, compared to $53.8 million and $2.3 million at March 31, 2023, respectively. The Bank had no securities classified as trading at March 31, 2024 and March 31, 2023. Other investments as of March 31, 2024 primarily consists of the Company and Bank's investments in limited partnership Community Capital Funds and a $5.3 million bank-owned life insurance policy ("BOLI") that was purchased during the first quarter of fiscal year 2023 as a channel to add to the Company's non-interest income revenue by means of an investment considered safe and sound by the Company's regulators. The investments in the limited partnerships are measured using the equity method. The BOLI is carried at the cash surrender value of the underlying policies. Income generated from the investments and the increase in the cash surrender value of the BOLI is included in other non-interest income on the Statements of Operations. Other investments totaled $6.9 million at March 31, 2024 and are included in Other Assets on the Statements of Financial Condition. The following tables set forth the amortized cost and fair value of securities available-for-sale and held-to-maturity at March 31, 2024 and March 31, 2023:
| At March 31, 2024
| Amortized |  | Gross Unrealized |  |
$ in thousands | Cost |  | Gains |  | Losses |  | Fair Value
Available-for-Sale: |  |  |  |  |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |
Government National Mortgage Association | $ | 280 |  |  | $ | 4 |  |  | $ | (1) |  |  | $ | 283 |
Federal Home Loan Mortgage Corporation | 20,299 |  |  | — |  |  | (4,501) |  |  | 15,798 |
Federal National Mortgage Association | 10,975 |  |  | — |  |  | (2,339) |  |  | 8,636 |
Total mortgage-backed securities | 31,554 |  |  | 4 |  |  | (6,841) |  |  | 24,717 |
U.S. Government Agency Securities | 6,219 |  |  | — |  |  | (25) |  |  | 6,194 |
Corporate Bonds | 5,266 |  |  | — |  |  | (2,203) |  |  | 3,063 |
Muni Securities | 17,696 |  |  | — |  |  | (3,640) |  |  | 14,056 |
Total available-for-sale | $ | 60,735 |  |  | $ | 4 |  |  | $ | (12,709) |  |  | $ | 48,030 |
Held-to-Maturity: |  |  |  |  |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |
Government National Mortgage Association | $ | 292 |  |  | $ | — |  |  | $ | (9) |  |  | $ | 283 |
Federal National Mortgage Association | 1,716 |  |  | — |  |  | (94) |  |  | 1,622 |
Total held-to-maturity | $ | 2,008 |  |  | $ | — |  |  | $ | (103) |  |  | $ | 1,905 |
| At March 31, 2023
| Amortized |  | Gross Unrealized |  |
$ in thousands | Cost |  | Gains |  | Losses |  | Fair Value
Available-for-Sale: |  |  |  |  |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |
Government National Mortgage Association | $ | 341 |  |  | $ | 1 |  |  | $ | (1) |  |  | $ | 341 |
Federal Home Loan Mortgage Corporation | 21,651 |  |  | — |  |  | (4,051) |  |  | 17,600 |
Federal National Mortgage Association | 11,714 |  |  | — |  |  | (2,212) |  |  | 9,502 |
Total mortgage-backed securities | 33,706 |  |  | 1 |  |  | (6,264) |  |  | 27,443 |
U.S. Government Agency Securities | 9,364 |  |  | — |  |  | (38) |  |  | 9,326 |
Corporate Bonds | 5,269 |  |  | — |  |  | (2,177) |  |  | 3,092 |
Muni Securities | 17,719 |  |  | — |  |  | (3,737) |  |  | 13,982 |
Total available-for-sale | $ | 66,058 |  |  | $ | 1 |  |  | $ | (12,216) |  |  | $ | 53,843 |
Held-to-Maturity: |  |  |  |  |  |  |
Mortgage-backed securities: |  |  |  |  |  |  |
Government National Mortgage Association | $ | 366 |  |  | $ | — |  |  | $ | (3) |  |  | $ | 363 |
Federal National Mortgage Association | 1,952 |  |  | — |  |  | (94) |  |  | 1,858 |
Total held-to-maturity | $ | 2,318 |  |  | $ | — |  |  | $ | (97) |  |  | $ | 2,221 |
There were no sales of available-for-sale securities and held-to-maturity securities for the year ended March 31, 2024 and March 31, 2023. 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”) mortgage-backed securities and Federal Home Loan Mortgage Corporation (“FHLMC”) mortgage-backed securities. 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 securities 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, 2024, the Bank pledged mortgage-backed securities of $0.3 million and $2.2 million as collateral for public funds deposits and advances from the FHLB-NY, respectively. The following tables set forth the unrealized losses and fair value of securities in an unrealized loss position at March 31, 2024 and March 31, 2023 for less than 12 months and 12 months or longer:
| At March 31, 2024
| 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 | $ | — |  |  | $ | — |  |  | $ | (6,841) |  |  | $ | 24,468 |  |  | $ | (6,841) |  |  | $ | 24,468 |
U.S. Government Agency Securities | (2) |  |  | 1,273 |  |  | (23) |  |  | 4,921 |  |  | (25) |  |  | 6,194 |
Corporate bonds | — |  |  | — |  |  | (2,203) |  |  | 3,063 |  |  | (2,203) |  |  | 3,063 |
Muni securities | — |  |  | — |  |  | (3,640) |  |  | 14,056 |  |  | (3,640) |  |  | 14,056 |
Total available-for-sale securities | $ | (2) |  |  | $ | 1,273 |  |  | $ | (12,707) |  |  | $ | 46,508 |  |  | $ | (12,709) |  |  | $ | 47,781 |
Held-to-Maturity: |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities | $ | — |  |  | $ | — |  |  | $ | (103) |  |  | $ | 1,872 |  |  | $ | (103) |  |  | $ | 1,872 |
Total held-to-maturity securities | $ | — |  |  | $ | — |  |  | $ | (103) |  |  | $ | 1,872 |  |  | $ | (103) |  |  | $ | 1,872 |
| At March 31, 2023
| 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 | $ | — |  |  | $ | — |  |  | $ | (6,264) |  |  | $ | 27,146 |  |  | $ | (6,264) |  |  | $ | 27,146 |
U.S. Government Agency Securities | (13) |  |  | 4,075 |  |  | (25) |  |  | 5,251 |  |  | (38) |  |  | 9,326 |
Corporate bonds | — |  |  | — |  |  | (2,177) |  |  | 3,092 |  |  | (2,177) |  |  | 3,092 |
Muni securities | — |  |  | — |  |  | (3,737) |  |  | 13,982 |  |  | (3,737) |  |  | 13,982 |
Total available-for-sale securities | $ | (13) |  |  | $ | 4,075 |  |  | $ | (12,203) |  |  | $ | 49,471 |  |  | $ | (12,216) |  |  | $ | 53,546 |
Held-to-Maturity: |  |  |  |  |  |  |  |  |  |  |
Mortgage-backed securities | $ | (3) |  |  | $ | 363 |  |  | $ | (94) |  |  | $ | 1,822 |  |  | $ | (97) |  |  | $ | 2,185 |
Total held-to-maturity securities | $ | (3) |  |  | $ | 363 |  |  | $ | (94) |  |  | $ | 1,822 |  |  | $ | (97) |  |  | $ | 2,185 |
A total of 24 securities had an unrealized loss at March 31, 2024 and March 31, 2023. Mortgage-backed securities, U.S. government agency securities, municipal securities and a corporate bond security represented 51.2%, 13.0%, 29.4% and 6.4%, respectively, of total available-for-sale securities in an unrealized loss position at March 31, 2024. There were eight mortgage-backed securities, two U.S. government agency securities, one corporate bond and six municipal securities that had an unrealized loss position for more than 12 months at March 31, 2024. Management has evaluated available-for-sale securities that are in an unrealized loss position and determined that the declines in fair value are attributable to market volatility, and not credit quality or other factors. Given the high credit quality of the mortgage-backed securities which are backed by explicit U.S. government guarantees, or guarantees by government sponsored enterprises that have credit ratings and perceived credit risk comparable to the U.S. government, the high credit quality and strong financial performance of the U.S. government agency and the results of the individual analyses performed for and continuous surveillance on the municipal securities, as well as the corporate security that is a reputable institution 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 the Company has the ability and intent to hold the securities until maturity or the valuations recover. The Bank's held-to-maturity portfolio consists of mortgage-backed securities that are either fully guaranteed or issued by a government sponsored enterprise, which has a credit rating and perceived credit risk comparable to the U.S. government. As such, no allowance for credit losses on securities available-for-sale or held-to-maturity have been established as of March 31, 2024. The following is a summary of the amortized cost and fair value of debt securities at March 31, 2024, 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: |  |  |  |  |
One through five years | 1,850 |  |  | 1,838 |  |  | 6.50 | %
Five through ten years | 4,684 |  |  | 3,961 |  |  | 2.44 | %
After ten years | 22,647 |  |  | 17,514 |  |  | 3.37 | %
Mortgage-backed securities | 31,554 |  |  | 24,717 |  |  | 1.67 | %
| $ | 60,735 |  |  | $ | 48,030 |  |  | 2.54 | %
Held-to-maturity: |  |  |  |  |
Mortgage-backed securities | $ | 2,008 |  |  | $ | 1,905 |  |  | 2.82 | %

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