Borrowed Money

12 Months Ended

Mar. 31, 2020

BORROWED MONEY

Federal Home Loan Bank Advances. FHLB-NY advances weighted average interest rates by remaining period to maturity at March 31 are as follows:


$ in thousands	2019
Maturing Year Ended March 31,	Weighted Average Rate	Amount

2020	2.66%	$	8,000
	2.66%	$	8,000

As a member of the FHLB-NY, the Bank may have outstanding FHLB-NY borrowings in a combination of term advances and overnight funds of up to 30% of its total assets, or approximately $173.6 million at March 31, 2020. Borrowings are secured by the Bank's investment in FHLB-NY stock and by a blanket security agreement. This agreement requires the Bank to maintain as collateral certain qualifying assets (principally mortgage loans and securities) not otherwise pledged. The Bank had no outstanding advances from the FHLB-NY at March 31, 2020. At March 31, 2020, the Bank's collateral included its investment in FHLB-NY capital stock totaling $568 thousand, and a blanket assignment of pledged qualifying mortgage loans of $60.4 million and mortgage-backed and investment securities with a market value of $21.0 million. The Bank has sufficient collateral at the FHLB-NY to be able to borrow $68.9 million from the FHLB-NY at March 31, 2020. Interest expense on FHLB advances was $176 thousand for the year ended March 31, 2020. At March 31, 2019, the accrued interest payable on FHLB advances was $2 thousand and the interest expense was $89 thousand.

Subordinated Debt Securities. On September 17, 2003, Carver Statutory Trust I issued 13,000 shares, liquidation amount $1,000 per share, of floating rate capital securities. Gross proceeds from the sale of these trust preferred debt securities of $13 million, and proceeds from the sale of the trust's common securities of $0.4 million, were used to purchase approximately $13.4 million aggregate principal amount of the Company's floating rate junior subordinated debt securities due 2033. The trust preferred debt securities are redeemable at par quarterly at the option of the Company beginning on or after September 17, 2008, and have a mandatory redemption date of September 17, 2033. Cash distributions on the trust preferred debt securities are cumulative and payable at a floating rate per annum resetting quarterly with a margin of 3.05% over the three-month LIBOR. During the second quarter of fiscal year 2017, the Company applied for and was granted regulatory approval to settle all outstanding debenture interest payments through September 2016. Such payments totaling $2.5 million were made in September 2016. Interest on the debentures has been deferred beginning with the December 2016 payment, per the terms of the agreement, which permit such deferral for up to twenty consecutive quarters, as the Company is prohibited from making payments without prior regulatory approval.

The accrued interest payable on subordinated debt securities was $2.5 million and the interest expense was $815 thousand for the year ended March 31, 2020. The accrued interest payable on subordinated debt securities was $1.7 million and the interest expense was $820 thousand for the year ended March 31, 2019.

The following table sets forth certain information regarding Carver Federal's borrowings as of and for the years ended March 31:


$ in thousands	2020			2019
Amounts outstanding at the end of year:
FHLB advances	$	—		$	8,000
Subordinated debt securities	13,403			13,403


Rate paid at year end:
FHLB advances	—		%	2.66		%
Subordinated debt securities	3.89		%	5.66		%


Maximum amount of borrowing outstanding at any month end:
FHLB advances	$	23,000		$	25,000
Subordinated debt securities	$	13,403		$	13,403


Approximate average amounts outstanding for year:
FHLB advances	$	8,115		$	4,118
Subordinated debt securities	$	13,403		$	13,403


Approximate weighted average rate paid during year:
FHLB advances	2.15		%	2.16		%
Subordinated debt securities	6.08		%	6.11		%