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Loans Receivable and Allowance for Credit Losses
 12 Months Ended
Mar. 31, 2024
Loans and Leases Receivable Disclosure [Abstract]  
Loans Receivable and Allowance for Credit Losses LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES
The following is a summary of loans receivable, net of allowance for credit losses at March 31:
March 31, 2024
March 31, 2023
$ in thousandsAmount%Amount%
One-to-four family $82,787 13.3 %$65,808 11.0 %
Multifamily177,203 28.4 %179,117 30.0 %
Commercial real estate175,384 28.2 %178,424 29.8 %
Construction2,203 0.4 %— — %
Business (1)
169,602 27.2 %166,908 27.9 %
Consumer (2)
15,699 2.5 %7,639 1.3 %
Total loans receivable622,878 100.0 %597,896 100.0 %
Allowance for credit losses(5,871)(5,229)
Total loans receivable, net$617,007 $592,667 
(1) Includes business overdrafts of $73 thousand and $11 thousand as of March 31, 2024 and 2023, respectively
(2) Includes consumer overdrafts of $15 thousand and $19 thousand as of March 31, 2024 and 2023, respectively

The totals above are shown net of deferred loan fees and costs. Net deferred loan fees totaled $2.9 million and $2.8 million at March 31, 2024 and 2023, respectively. During fiscal year 2024, the Bank purchased $31.5 million loans at par, comprised of $20.0 million one-to-four family, $0.2 million business and $11.3 million consumer loans. The Bank purchased $14.3 million loans at par during fiscal year 2023, comprised of $4.0 million one-to-four family, $5.8 million commercial real estate, $0.6 million business and $3.9 million consumer loans.

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 $11.6 million and $12.6 million at March 31, 2024 and 2023, respectively.

At March 31, 2024 the Bank pledged $48.0 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 ACL reserves required. As of March 31, 2024, 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 $268 thousand as of March 31, 2024. The net loan origination fees on these loans totaled approximately $3 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 continues to receive debt forgiveness payments on PPP loans closed during the first and second rounds of the program. As the loans are paid off, the remaining net deferred origination fees are accelerated into income.
The following is an analysis of the allowance for credit losses based upon the method of evaluating loan reserves for the fiscal year ended March 31, 2024 under the expected loss methodology:
$ in thousandsOne-to-four familyMultifamilyCommercial Real EstateConstructionBusinessConsumerUnallocatedTotal
Allowance for credit losses:
Beginning Balance$716 $1,109 $1,814 $— $1,139 $449 $2 $5,229 
Impact of CECL adoption1,220 (392)(497)505 (166)(2)668 
Charge-offs— — — — (10)(160)— (170)
Recoveries— — — — 55 6 — 61 
Provision for (Recovery of) Credit Losses69 3 (95)1 (274)321 58 83 
Ending Balance$2,005 $720 $1,222 $1 $1,415 $450 $58 $5,871 
Allowance for Credit Losses Ending Balance: collectively evaluated for impairment$2,005 $720 $1,222 1 $1,408 $449 $58 $5,863 
Allowance for Credit Losses Ending Balance: individually evaluated for impairment— — — —7 1 — 8 
Loan Receivables Ending Balance$82,787 $177,203 $175,384 $2,203 $169,602 $15,699 $— $622,878 
Ending Balance: collectively evaluated for impairment78,636 174,718 170,862 2,203 156,340 15,654 — 598,413 
Ending Balance: individually evaluated for impairment4,151 2,485 4,522 —13,262 45 — 24,465 

    The following is an analysis of the allowance for loan losses as of the fiscal year ended March 31, 2023 based upon the incurred loss impairment model:
$ in thousandsOne-to-four familyMultifamily Commercial Real EstateBusinessConsumerUnallocatedTotal
Allowance for loan losses:
Beginning Balance$731 $1,114 $1,157 $2,497 $123 $2 $5,624 
Charge-offs— — (586)— (141)— (727)
Recoveries90 — 10 127 5 — 232 
Provision for (Recovery of) Loan Losses(105)(5)1,233 (1,485)462 — 100 
Ending Balance$716 $1,109 $1,814 $1,139 $449 $2 $5,229 
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment$607 $1,109 $1,814 $937 $449 $2 $4,918 
Allowance for Loan Losses Ending Balance: individually evaluated for impairment109 — — 202 — — 311 
Loan Receivables Ending Balance$65,808 $179,117 $178,424 $166,908 $7,639 $— $597,896 
Ending Balance: collectively evaluated for impairment60,805 179,046 171,234 160,985 7,638 — 579,708 
Ending Balance: individually evaluated for impairment5,003 71 7,190 5,923 1 — 18,188 
The following is a summary of nonaccrual loans, at amortized cost, at March 31, 2024 and 2023.
March 31, 2024
March 31, 2023
$ in thousandsNonaccrual Loans with No AllowanceNonaccrual Loans with an AllowanceTotal
Nonaccrual Loans		Nonaccrual Loans
Gross loans receivable: 
One-to-four family$— $3,554 $3,554 $4,001 
Multifamily— 2,238 2,238 71 
Commercial real estate— 4,522 4,522 7,190 
Business100 1,317 1,417 998 
Consumer44 — 44 1 
Total nonaccrual loans$144 $11,631 $11,775 $12,261 

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.  Accrual of interest on loans is discontinued when the payment of principal or interest is considered to be in doubt, or when a loan becomes contractually past due by 90 days or more with respect to principal or interest, except for loans that are well-secured and in the process of collection. Interest income on nonaccrual loans is recorded when received based upon the collectability of the loan. There was no interest income recognized on nonaccrual loans during the twelve months ended March 31, 2024.

At March 31, 2024 and March 31, 2023, other non-performing assets totaled $52 thousand and $60 thousand, respectively, which consisted of other real estate owned comprised of one foreclosed residential property. Other real estate owned is included in other assets in the consolidated statements of financial condition. There were no held-for-sale loans at March 31, 2024 and March 31, 2023.

The Bank utilizes an internal loan classification system as a means of reporting problem loans within its loan categories:

Pass - Loans have demonstrated satisfactory asset quality, earning history, liquidity, and other adequate margins of creditor protection. These loans represent a moderate credit risk and some degree of financial stability, and are considered collectible in full.

Special Mention - Loans have potential weaknesses that deserve management's close attention. If uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in the Bank's credit position at some future date.

Substandard - Loans are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. These loans have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized by the distinct possibility that the Bank will sustain some loss if the deficiencies are not corrected.

Doubtful - Loans have all the weaknesses inherent in those classified as Substandard, with the added characteristic that collection or liquidation in full, based on current facts, conditions and values, is highly questionable and improbable.

Loss - Loans are considered uncollectible with insignificant value and are charged off immediately to the allowance for credit losses.

One-to-four family residential loans and consumer loans are rated non-performing if they are delinquent in payments ninety or more days, or past maturity. All other one-to-four family residential loans and consumer loans are performing loans.
The following table presents the amortized cost of loans by year of origination and risk category by class of loans based on the most recent analysis performed in the current quarter as of March 31, 2024:

$ in thousands202420232022202120202019 and earlierRevolving LoansTotal
Credit Risk Profile by Internally Assigned Grade:
Multifamily
Pass$980 $6,587 $53,516 $50,778 $28,483 $34,374 $— $174,718 
Special Mention— — — — — — — — 
Substandard— — — 1,451 754 280 — 2,485 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total980 6,587 53,516 52,229 29,237 34,654 — 177,203 
Commercial Real Estate
Pass$2,450 $29,064 $31,313 $27,635 $16,951 $62,775 $— 170,188 
Special Mention— — — — — 674 — 674 
Substandard— — — — — 4,522 — 4,522 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total2,450 29,064 31,313 27,635 16,951 67,971 — 175,384 
Construction
Pass$— $2,203 $— $— $— $— $— 2,203 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total— 2,203 — — — — — 2,203 
Business
Pass$7,050 $21,315 $32,675 $52,839 $10,845 $32,587 $— 157,311 
Special Mention— — — — — — — — 
Substandard— — 7,939 3,987 — 365 — 12,291 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total7,050 21,315 40,614 56,826 10,845 32,952 — 169,602 
Gross charge-offs— — — — — 10 — 10 
Credit Risk Profile Based on Payment Activity:
One-to-four Family
Performing$— $22,247 $3,830 $13,422 $1,424 $39,002 $— 79,925 
Non-Performing— — — — — 2,862 — 2,862 
Total— 22,247 3,830 13,422 1,424 41,864 — 82,787 
Consumer
Performing$2,003 $— $11,891 $— $570 $— $4 $16 $1,172 $— 15,656 
Non-Performing— 42 1 — — — — 43 
Total2,003 11,933 571 4 16 1,172 — 15,699 
Gross charge-offs— 18 1 — — 141 — 160 
Total Loans (excluding gross charge-offs)$12,483 $93,349 $129,844 $150,116 $58,473 $178,613 $— $622,878 
At March 31, 2023, the risk category by class of loans was as follows:
$ in thousandsMultifamilyCommercial Real EstateBusiness
Credit Risk Profile by Internally Assigned Grade:
Pass$175,981 $170,534 $154,056 
Special Mention771 701 5,719 
Substandard2,365 7,189 7,133 
Total$179,117 $178,424 $166,908 
One-to-four familyConsumer
Credit Risk Profile Based on Payment Activity:
Performing$60,629 $7,639 
Non-Performing5,179 — 
Total$65,808 $7,639 

Loans are considered past due if required principal and interest payments have not been received as of the date such payments were contractually due. The following tables present an aging analysis of the amortized cost of past due loans receivable at March 31, 2024 and 2023.
March 31, 2024
$ in thousands30-59 Days Past Due60-89 Days Past Due90 or More Days Past DueTotal Past DueCurrentTotal Loans Receivable
One-to-four family$164 $— $2,859 $3,023 $79,764 $82,787 
Multifamily— — 2,205 2,205 174,998 177,203 
Commercial real estate— — 4,660 4,660 170,724 175,384 
Construction— — — — 2,203 2,203 
Business1,959 214 12,071 14,244 155,358 169,602 
Consumer151 54 — 205 15,494 15,699 
Total$2,274 $268 $21,795 $24,337 $598,541 $622,878 

March 31, 2023
$ in thousands30-59 Days Past Due60-89 Days Past Due90 or More Days Past DueTotal Past DueCurrentTotal Loans Receivable
One-to-four family$1,207 $185 $2,475 $3,867 $61,941 $65,808 
Multifamily1,458 — 71 1,529 177,588 179,117 
Commercial real estate1,370 — — 1,370 177,054 178,424 
Business11,006 — 5,014 16,020 150,888 166,908 
Consumer99 26 34 159 7,480 7,639 
Total$15,140 $211 $7,594 $22,945 $574,951 $597,896 

    At March 31, 2023, there were no loans 90 or more days past due and accruing interest.
Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the underlying collateral and the borrower is experiencing financial difficulty. All substandard and doubtful loans and any other loans that the Chief Credit Officer deems appropriate for review, are identified and reviewed for individual analysis. The following table presents the amortized cost of collateral dependent loans with the associated allowance amount, if applicable, as of March 31, 2024:
Collateral Type
$ in thousandsReal EstateOtherAllowance Allocated
One-to-four family$4,151 $— $— 
Multifamily2,485 — — 
Commercial real estate4,522 — — 
Business12,196 1,066 7 
Consumer— 45 1 
$23,354 $1,111 $8 

Real estate collateral includes one-to-four family, multifamily and commercial properties. Collateral types securing business loans include accounts receivable. There have been no significant changes to the types of collateral securing the Bank's collateral dependent loans.

The following table presents information on impaired loans with the associated allowance amount and interest income recognized on a cash basis, if applicable, at March 31, 2023.
Impaired Loans by Class
At March 31, 2023
$ in thousandsRecorded InvestmentUnpaid Principal BalanceAssociated AllowanceAverage BalanceInterest Income Recognized
With no specific allowance recorded:
One-to-four family$3,972 $4,567 $— $3,861 $111 
Multifamily71 71 — 220 — 
Commercial real estate7,190 7,378 — 4,054 36 
Business1,114 1,146 — 1,723 — 
Consumer1 1 — — — 
With an allowance recorded:
One-to-four family1,031 1,031 109 554 41 
Business4,809 4,820 202 5,116 316 
Total$18,188 $19,014 $311 $15,528 $504 

    In certain circumstances, the Bank will modify the terms of a loan by granting a concession. 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 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 to borrowers experiencing financial difficulty made during the twelve months ended March 31, 2024. There were three one-to-four family loans totaling $1.4 million modified during the twelve months ended March 31, 2023. At March 31, 2024, loans modified to borrowers experiencing financial difficulty totaled $6.8 million, $1.1 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. There were three modified loans totaling $5.7 million that were on accrual status as the Company has determined that future collection of the principal and interest is reasonably assured. These have generally performed according to the restructured terms for a period of at least six months. At March 31, 2023, total TDR loans were $7.6 million, of which $1.6 million were non-performing.

    In an effort to proactively resolve delinquent loans, Carver had selectively extended to certain borrowers concessions such as extensions, rate reductions or forbearance agreements during the twelve months ended March 31, 2023. For the fiscal years ended March 31, 2024 and 2023, there were no modified loans that defaulted within 12 months of modification.
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. 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. There were no loans outstanding to related parties at March 31, 2024.