Subsequent Events

9 Months Ended

Dec. 31, 2022

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS

On January 18, 2023, the Office of the Comptroller of the Currency ("OCC") notified the Bank that the Formal Agreement ("FA") between Carver Federal Savings Bank and the OCC dated May 24, 2016 was terminated, effective immediately. Dissolution of the FA releases the Bank from the following requirements/limits:

•Submission to the Board of a quarterly written progress report detailing the actions needed to achieve full compliance with each Article of the FA, identification of Bank personnel responsible for implementing the corrective actions, and the timeframes for completing the corrective actions;

◦Updates on actions taken to comply with each Article of the FA; and

◦Updates on the results and status of those actions.

•Periodic assessments and evaluations, including a performance appraisal program, to ensure strict adherence to an implemented written program to provide for effective Board and management supervision of the Bank.

•Annual submission to the OCC, within 60 days of its fiscal year-end, the Bank’s formal, written three-year Strategic Plan which establishes objectives for the Bank’s overall risk profile, earnings performance, growth, balance sheet mix, concentrations, liability structure, capital ad liquidity structure, together with strategies to achieve those objectives;

◦Prior to adoption of the annual Strategic Plan by the Board, the receipt of written determination of no supervisory objection from the OCC;

◦A quarterly written evaluation, prepared by the Board, of the Bank’s performance against the Strategic Plan, including a description of the actions the Board will take to address any shortcomings;

•Receipt of written determination of no supervisory objection from the OCC prior to initiating any action that “deviates significantly” from the Strategic Plan. Actions that may have constituted a “significant deviation” from the Strategic Plan included, but were not limited to, changes in the Bank's marketing strategies, products and services, marketing partners, underwriting practices and standards, credit administration, account management, collection strategies or operations, fee structure or pricing, accounting processes and practices, or funding strategy, or any other changes in personnel, operations, or external factors that may have a material impact on the Bank's operations or financial performance.

•Annual submission to the OCC, within 75 days of its fiscal year-end, the Bank’s formal, written three-year Capital Plan for the Bank,which includes specific plans for the maintenance of adequate capital, the identification and evaluation of all material risks and the identification and establishment of a capital strengthening strategy, if needed.

◦Prior to adoption of the annual Capital Plan by the Board, the receipt of written determination of no supervisory objection from the OCC;

◦A quarterly written evaluation, prepared by the Board, of the Bank’s performance against the Capital Plan, including a description of the actions the Board will take to address any shortcomings;

•Limitation on the asset size of the Commercial Real Estate loan portfolio, measured as a percentage of total risk-based capital.

•Limitation on the Bank’s ability to grow deposits through relationships with its institutional customers due to all reciprocal deposits considered to be brokered.

•Requirement to submit a prior notice to the OCC at least 90 days in advance of proposed changes in directors and senior executive officers.

•Prohibited from making, or agreeing to make, golden parachute payments to institution-affiliated parties without OCC and FDIC approval.

The Individual Minimum Capital Ratio letter issued by the OCC, which requires the Bank to maintain minimum regulatory capital levels of 9% for its Tier 1 leverage ratio and 12% for its total risk-based capital ratio, remains in effect, as do the Company's resolutions requiring, among other things, written approval from the Federal Reserve Bank of Philadelphia prior to the declaration or payment of dividends, any increase in debt by the Company, or the redemption of Company common stock.