10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q

☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2023

OR

☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from                      to                     

Commission File Number: 001-13007

CARVER BANCORP, INC.

(Exact name of registrant as specified in its charter)

Delaware			13-3904174
(State or Other Jurisdiction of Incorporation or Organization)			(I.R.S. Employer Identification No.)
75 West 125th Street	New York	New York	10027
(Address of Principal Executive Offices)			(Zip Code)

Registrant’s telephone number, including area code: (718) 230-2900

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of each exchange on which registered
Common Stock, par value $0.01 per share	CARV	The NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes   o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). þ Yes   oNo

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

☐ Large Accelerated Filer ☐ Accelerated Filer ☒ Non-accelerated Filer ☒ Smaller Reporting Company ☐ Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class	Outstanding at August 11, 2023
Common Stock, par value $0.01	4,825,910

TABLE OF CONTENTS

		Page
PART I.	FINANCIAL INFORMATION (UNAUDITED)
Item 1.	Financial Statements
	Consolidated Statements of Financial Condition as of June 30, 2023 and March 31, 2023	1
	Consolidated Statements of Operations for the Three Months Ended June 30, 2023 and 2022	2
	Consolidated Statements of Comprehensive Income (Loss) for the Three Months Ended June 30, 2023 and 2022	3
	Consolidated Statement of Changes in Equity for the Three Months Ended June 30, 2023 and 2022	4
	Consolidated Statements of Cash Flows for the Three Months Ended June 30, 2023 and 2022	5
	Notes to Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	30
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	44
Item 4.	Controls and Procedures	44
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	45
Item 1A.	Risk Factors	45
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	45
Item 3.	Defaults Upon Senior Securities	45
Item 4.	Mine Safety Disclosures	45
Item 5.	Other Information	45
Item 6.	Exhibits	46
SIGNATURES		47

PART I. FINANCIAL INFORMATION

CARVER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

$ in thousands except per share data	June 30, 2023		March 31, 2023
ASSETS
Cash and cash equivalents:
Cash and due from banks	$	41,437	$	42,298
Money market investments	254		254
Total cash and cash equivalents	41,691		42,552
Investment securities:
Available-for-sale, at fair value	52,192		53,843
Held-to-maturity, at amortized cost (fair value of $2,107 and $2,221 at June 30, 2023 and March 31, 2023, respectively)	2,237		2,318
Total investment securities	54,429		56,161
Loans receivable:
Real estate mortgage loans	417,429		423,349
Commercial business loans	163,348		166,908
Consumer loans	9,757		7,639
Loans, gross	590,534		597,896
Allowance for credit losses	(5,858)		(5,229)
Total loans receivable, net	584,676		592,667
Premises and equipment, net	2,975		3,174
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost	2,206		2,266
Accrued interest receivable	1,981		1,911
Right-of-use assets	11,701		12,311
Other assets	11,991		12,182
Total assets	$	711,650	$	723,224
LIABILITIES AND EQUITY
LIABILITIES
Deposits:
Non-interest bearing checking	$	105,111	$	109,401
Interest-bearing deposits:
Interest-bearing checking	49,053		49,473
Savings	110,586		109,210
Money market	141,495		150,348
Certificates of Deposit	184,821		178,694
Escrow	2,096		3,303
Total interest-bearing deposits	488,051		491,028
Total deposits	593,162		600,429
Advances from the FHLB-NY and other borrowed money	51,062		51,090
Operating lease liability	12,544		13,173
Other liabilities	12,365		13,308
Total liabilities	669,133		678,000
EQUITY
Preferred stock, (par value $0.01 per share: 11,551 and 13,201 Series D shares, with a liquidation preference of $1,000 per share, issued and outstanding at June 30, 2023 and March 31, 2023, respectively)	11,551		13,201
Preferred stock (par value $0.01 per share: 3,177 Series E shares, with a liquidation preference of $1,000 per share, issued and outstanding at June 30, 2023 and March 31, 2023)	3,177		3,177
Preferred stock (par value $0.01 per share: 9,000 Series F shares, with a liquidation preference of $1,000 per share, issued and outstanding at June 30, 2023 and March 31, 2023, respectively)	9,000		9,000
Common stock (par value 0.01 per share: 10,000,000 shares authorized; 7,017,532 and 6,799,410 shares issued; 4,513,729 and 4,295,607 shares outstanding at June 30, 2023 and March 31, 2023, respectively)	70		68
Additional paid-in capital	84,628		82,805
Accumulated deficit	(49,993)		(47,904)
Treasury stock, at cost (2,503,803 shares at June 30, 2023 and March 31, 2023)	(2,908)		(2,908)
Accumulated other comprehensive loss	(13,008)		(12,215)
Total equity	42,517		45,224
Total liabilities and equity	$	711,650	$	723,224

See accompanying notes to consolidated financial statements

1

CARVER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

	Three Months Ended June 30,
$ in thousands, except per share data	2023		2022
Interest income:
Loans	$	6,811	$	5,977
Mortgage-backed securities	149		159
Investment securities	301		165
Money market investments	533		72
Total interest income	7,794		6,373
Interest expense:
Deposits	1,714		411
Advances and other borrowed money	578		148
Total interest expense	2,292		559
Net interest income	5,502		5,814
Provision for (recovery of) credit losses	6		(27)
Net interest income after provision for (recovery of) credit losses	5,496		5,841
Non-interest income:
Depository fees and charges	577		555
Loan fees and service charges	64		119
Grant income	20		—
Other	94		35
Total non-interest income	755		709
Non-interest expense:
Employee compensation and benefits	3,321		3,184
Net occupancy expense	1,105		1,084
Equipment, net	477		514
Data processing	751		616
Consulting fees	100		150
Federal deposit insurance premiums	128		101
Other	1,790		1,758
Total non-interest expense	7,672		7,407
Loss before income taxes	(1,421)		(857)
Income tax expense	—		—
Net loss	$	(1,421)	$	(857)
Loss per common share:
Basic	$	(0.32)	$	(0.20)
Diluted	(0.32)		(0.20)

See accompanying notes to consolidated financial statements

2

CARVER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (LOSS)

(Unaudited)

	Three Months Ended June 30,
$ in thousands	2023		2022
Net loss	$	(1,421)	$	(857)
Other comprehensive loss, net of tax:
Change in unrealized loss of securities available-for-sale, net of income tax expense of $0 (due to full valuation allowance)	(793)		(3,614)
Total other comprehensive loss, net of tax	(793)		(3,614)
Total comprehensive loss, net of tax	$	(2,214)	$	(4,471)

See accompanying notes to consolidated financial statements

3

CARVER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the Three Months Ended June 30, 2023 and 2022

(Unaudited)

$ in thousands	Preferred Stock		Common Stock		Additional Paid-In Capital		Accumulated Deficit		Treasury Stock		Accumulated Other Comprehensive Income (Loss)		Total Equity
Three Months Ended June 30, 2023
Balance — March 31, 2023	$	25,378	$	68	$	82,805	$	(47,904)	$	(2,908)	$	(12,215)	$	45,224
Cumulative effect adjustment for adoption of ASU 2016-13	—		—		—		(668)		—		—		(668)
Net loss	—		—		—		(1,421)		—		—		(1,421)
Other comprehensive loss, net of taxes	—		—		—		—		—		(793)		(793)
Conversion of Series D preferred stock to common stock	(1,650)		2		1,648		—		—		—		—
Stock based compensation expense	—		—		175		—		—		—		175
Balance — June 30, 2023	$	23,728	$	70	$	84,628	$	(49,993)	$	(2,908)	$	(13,008)	$	42,517
Three Months Ended June 30, 2022
Balance — March 31, 2022	$	25,928	$	67	$	82,165	$	(43,503)	$	(2,908)	$	(6,662)	$	55,087
Net loss	—		—		—		(857)		—		—		(857)
Other comprehensive loss, net of taxes	—		—		—		—		—		(3,614)		(3,614)
Conversion of Series D preferred stock to common stock	(550)		1		549		—		—		—		—
Stock based compensation expense	—		—		20		—		—		—		20
Balance — June 30, 2022	$	25,378	$	68	$	82,734	$	(44,360)	$	(2,908)	$	(10,276)	$	50,636

See accompanying notes to consolidated financial statements

4

CARVER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Three Months Ended June 30,
$ in thousands	2023		2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(1,421)	$	(857)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for (recovery of) credit losses	6		(27)
Stock based compensation expense	175		20
Depreciation and amortization expense	260		260
Amortization and accretion of loan premiums and discounts and deferred charges, net	49		(65)
Amortization and accretion of premiums and discounts — securities	61		132
(Increase) decrease in accrued interest receivable	(70)		94
Decrease in other assets	203		200
Decrease in other liabilities	(972)		(9,524)
Net cash used in operating activities	(1,709)		(9,767)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from principal payments, maturities and calls of investments: Available-for-sale	799		3,135
Proceeds from principal payments, maturities and calls of investments: Held-to-maturity	80		151
Purchase of bank-owned life insurance	—		(5,000)
Loans held-for investment, net of repayments/payoffs and (originations)	10,294		33,178
Loans purchased from third parties	(3,052)		(8,901)
Redemption (purchase) of FHLB-NY stock, net	60		(557)
Purchase of premises and equipment	(66)		(50)
Net cash provided by investing activities	8,115		21,956
CASH FLOWS FROM FINANCING ACTIVITIES
Net decrease in deposits	(7,267)		(39,823)
Increase in short-term borrowings	—		10,000
Repayment of long-term borrowings	—		(3)
Net cash used in financing activities	(7,267)		(29,826)
Net decrease in cash and cash equivalents	(861)		(17,637)
Cash and cash equivalents at beginning of period	42,552		61,018
Cash and cash equivalents at end of period	$	41,691	$	43,381
Supplemental cash flow information:
Noncash financing and investing activities
Conversion of preferred stock to common stock	$	1,650	$	550
Cash paid for:
Interest	$	1,955	$	559
Income taxes	72		17

See accompanying notes to consolidated financial statements

5

CARVER BANCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

NOTE 1. ORGANIZATION

Nature of operations

    Carver Bancorp, Inc. (on a stand-alone basis, the “Company” or “Registrant”), was incorporated in May 1996 and its principal wholly-owned subsidiary is Carver Federal Savings Bank (the “Bank” or “Carver Federal”). Carver Federal's wholly-owned subsidiaries are CFSB Realty Corp., Carver Community Development Corporation (“CCDC”) and CFSB Credit Corp., which is currently inactive. The Bank has a real estate investment trust, Carver Asset Corporation ("CAC"), that was formed in February 2004.

    “Carver,” the “Company,” “we,” “us” or “our” refers to the Company along with its consolidated subsidiaries. The Bank was chartered in 1948 and began operations in 1949 as Carver Federal Savings and Loan Association, a federally-chartered mutual savings and loan association. The Bank converted to a federal savings bank in 1986. On October 24, 1994, the Bank converted from a mutual holding company structure to stock form and issued 2,314,375 shares of its common stock, par value $0.01 per share. On October 17, 1996, the Bank completed its reorganization into a holding company structure (the “Reorganization”) and became a wholly-owned subsidiary of the Company.

    Carver Federal’s principal business consists of attracting deposit accounts through its branches and investing those funds in mortgage loans and other investments permitted by federal savings banks. The Bank has seven branches located throughout the City of New York that primarily serve the communities in which they operate.

    In September 2003, the Company formed Carver Statutory Trust I (the “Trust”) for the sole purpose of issuing trust preferred securities and investing the proceeds in an equivalent amount of floating rate junior subordinated debentures of the Company. In accordance with Accounting Standards Codification (“ASC”) 810, “Consolidations,” Carver Statutory Trust I is unconsolidated for financial reporting purposes. 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 were made in September 2016. Interest on the debentures had 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. During the fourth quarter of fiscal year 2021, the Company applied for and was granted regulatory approval to settle all outstanding debenture interest payments through June 2021. Full payment was made on June 16, 2021. The Company deferred the September 17, 2021 interest payment, but has since had discussions with the Federal Reserve Bank of Philadelphia regarding future quarterly payments. A streamlined process has been developed for the Company to request regulatory approval to make debenture interest payments. On December 16, 2021, the Company paid the deferred interest that was due on September 17, 2021 and the regular quarterly interest payment due on December 17, 2021. All quarterly interest payments subsequent to the June 2021 payment up to and including the June 2023 payment have been made. The interest rate was 8.56% and the total amount of deferred interest was $35 thousand at June 30, 2023.

    While Carver has suspended its regular quarterly cash dividend on its common stock, in the future, Carver may rely on dividends from Carver Federal to pay cash dividends to its stockholders and to engage in share repurchase programs. In recent years, Carver has been successful in obtaining cash independently through its capital raising efforts, which may include cash from government grants or below market-rate loans. As the subsidiary of a savings and loan association holding company, Carver Federal must file a notice or an application (depending on the proposed dividend amount) with the OCC (and an application with the FRB) prior to the declaration of each capital distribution. The OCC will disallow any proposed dividend that, among other reasons, would result in Carver Federal’s failure to meet the OCC minimum capital requirements.

6

Regulation

    On May 24, 2016, the Bank entered into a Formal Agreement ("the Agreement") with the OCC to undertake certain compliance-related and other actions. As a result of the Agreement, the Bank was required to obtain the approval of the OCC prior to effecting any change in its directors or senior executive officers, paying dividends and entering into any "golden parachute payments" as that term is defined under 12 U.S.C. § 1828(k) and 12 C.F.R. Part 359. As a result of the Agreement, Carver was issued an Individual Minimum Capital Ratio (“IMCR”) letter by the OCC, which requires the Bank to maintain minimum regulatory capital levels of 9% for its Tier1 leverage ratio and 12% for its total risk-based capital ratio. The Agreement was terminated on January 18, 2023. The IMCR remains in effect.

The Company continues to be subject to similar requirements that the Bank was subject to under the Agreement. The Company must provide notice to the FRB prior to affecting any change in its directors or senior executive officers. The Company is also subject to the restrictions on golden parachute and indemnification payments, as set forth in 12 C.F.R. Part 359. Written approval of the Federal Reserve Bank is required prior to: (1) the declaration or payment of dividends by the Company to its stockholders, (2) the declaration or payment of dividends by the Bank to the Company, (3) any distributions of interest or principal by the Company on subordinated debentures or trust preferred securities, (4) any purchases or redemptions of the Company’s stock and (5) the Company incurring, increasing or guaranteeing certain long-term debt outside the ordinary course of business. These limitations could affect our operations and financial performance.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of consolidated financial statement presentation

    The consolidated financial statements include the accounts of the Company, the Bank and the Bank’s wholly-owned or majority-owned subsidiaries, Carver Asset Corporation, CFSB Realty Corp., CCDC, and CFSB Credit Corp., which is currently inactive. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company's subsidiary, Carver Statutory Trust I, is not consolidated with Carver Bancorp, Inc. for financial reporting purposes.  Carver Statutory Trust I was formed in 2003 for the purpose of issuing $13 million aggregate liquidation amount of floating rate Capital Securities due September 17, 2033 (“Capital Securities”) and $0.4 million of common securities (which are the only voting securities of Carver Statutory Trust I), which are 100% owned by Carver Bancorp, Inc., and using the proceeds to acquire Junior Subordinated Debentures issued by Carver Bancorp, Inc.  Carver Bancorp, Inc. has fully and unconditionally guaranteed the Capital Securities along with all obligations of Carver Statutory Trust I under the trust agreement relating to the Capital Securities. The Company does not consolidate the accounts and related activity of Carver Statutory Trust I because it is not the primary beneficiary of the entity.

Variable interest entities ("VIEs") are consolidated, as required, when Carver has a controlling financial interest in these entities and is deemed to be the primary beneficiary. Carver is normally deemed to have a controlling financial interest and be the primary beneficiary if it has both (a) the power to direct activities of a VIE that most significantly impact the entity's economic performance; and (b) the obligation to absorb losses of the entity that could benefit from the activities that could potentially be significant to the VIE.

    The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ended March 31, 2024. The consolidated balance sheet at June 30, 2023 has been derived from the unaudited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statement of financial condition and revenues and expenses for the period then ended. These unaudited consolidated financial statements should be read in conjunction with the Annual Report on Form 10-K for the year ended March 31, 2023. Amounts subject to significant estimates and assumptions are items such as the allowance for credit loss, realization of deferred tax assets, assessment of other-than-temporary impairment of securities available-for-sale, and the fair value of financial instruments. While management uses available information to recognize losses on loans, future additions to the allowance for credit loss or future writedowns of real estate owned may be necessary based on changes in economic conditions in the areas where Carver Federal has extended mortgages and other credit instruments. Actual results could differ

7

significantly from those assumptions. Current market conditions increase the risk and complexity of the judgments in these estimates.

Certain comparative amounts for the prior period have been reclassified to conform to current period presentations. Such reclassifications had no effect on net income or shareholders' equity.

Recent Events

The business climate continues to present significant challenges as banks continue to absorb heightened regulatory costs and compete for limited loan demand. Significant increases in food and energy prices resulted from swift increases in the rate of inflation. Additionally, the Federal Reserve has increased the federal funds rate at each of its meetings since March 2022, and while the rate was held steady at the June 2023 meeting, it was increased another quarter point to the highest level in 22 years at the most recent July 2023 meeting. For Carver, the economic climate of New York City (“the City”), in particular, impacts our business as the City lags behind the rest of New York State and the nation both in restoring pandemic job losses and in rebounding to pre-pandemic levels of unemployment. The City's unemployment rate remains high at 5.4%, exceeding the national average, as employment in the arts and entertainment, food and hospitality sectors continue to remain below their pre-pandemic highs.

In March 2023, the FDIC was appointed as receiver for Silicon Valley Bank and Signature Bank after they experienced runs on deposits and other liquidity constraints. At the time, Silicon Valley Bank and Signature Bank were the 16th and 29th largest banks in the United States, respectively, as measured by total assets as of December 31, 2022. Following the failures of Silicon Valley Bank and Signature Bank, on May 1, 2023, First Republic Bank was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. The closures of those banks led to industry-wide concerns related to liquidity, deposit outflows, and unrealized securities losses and eroding confidence in the banking system from the general public. In response to these recent developments, the Company took a number of preemptive actions, which included proactive outreach to clients and steps to maximize its funding sources. As a result, the Company's liquidity position remains adequate. The impact of market volatility from the adverse developments in the banking industry along with continued high inflation and rising interest rates, will depend on future developments, which are highly uncertain and difficult to predict.

The Company is closely monitoring its asset quality, liquidity, and capital positions, as well as the credit risk in its loan portfolio. Management is actively working to minimize the current and future impact of this unusual situation, and is continuing to make adjustments to operations where appropriate or necessary to mitigate risk. However, these factors and events may have negative effects on the business, financial condition, and results of operations of the Company and its customers.

New Accounting Standard Adopted in First Quarter

On April 1, 2023, the Company adopted ASU No. 2016-13, "Financial Instruments - Credit Loss (Topic 326)" and its subsequent amendments, which replaces the guidance on recognition and measurement of credit losses for financial assets. The new requirements, known as the current expected credit loss model ("CECL") will require entities to adopt an impairment model based on expected losses rather than incurred losses. The Company applied the new guidance with a cumulative-effect adjustment to retained earnings as of April 1, 2023, using the modified-retrospective approach. Results for reporting periods beginning after April 1, 2023 are presented under CECL. Prior period amounts have not been restated and are reported in accordance with the incurred loss method. The adoption of ASU 2016-13 resulted in an increase of $0.7 million to the allowance for credit losses related to loans.     

Allowance for Credit Losses ("ACL")

    The ACL is a valuation account that is deducted from the loan portfolio's amortized cost basis to present the net amount expected to be collected on the loans. Loan losses are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Management continues its collection efforts on previously charged-off balances and applies recoveries as additions to the ACL. The measurement of expected credit losses is based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount and a reversion to historical after the reasonable and supportable period. Expected credit losses were estimated using a regression model based on historical data from the Company and peer institutions. Adjustments to modeled loss estimates may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level or term, as well as for changes in environmental conditions, such as changes in economic conditions,, property values or other relevant factors. The discounted cash flow ("DCF") methodology is used for substantially all pools, applied with a 4-quarter reasonable and supportable forecast period and a 4-quarter reversion period where the ACL reflects the difference between the amortized cost and the present value of the expected cash flows. The expected cash flows are discounted at the effective interest rate and the entire change in present value is reported as credit loss expense (or reversal of credit loss expense). On a quarterly basis, management considers probability of default utilizing

8

economic forecasts including civilian unemployment rates and CPI index, and loss given default assumptions using Frye-Jacobs estimations. For periods beyond the forecast period, the loss rate reverts back to the long-term historical loss average with a 4-quarter straight-line reversion period for all pools. There were no changes in the assumptions used from the April 1, 2023 adoption date and for the quarter ended June 30, 2023.

The Company has elected to exclude accrued interest from the amortized cost basis in determining credit losses. Accrued interest receivable on loans is included in a separate line item on the Consolidated Statements of Financial Condition. 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. When a loan is placed on nonaccrual status, any accrued but uncollected interest is reversed from current income. Interest income on nonaccrual loans is recorded when received based upon the collectability of the loan.

Expected credit losses are measured on a collective pool basis when similar risk characteristics exist. Loans with similar risk characteristics are grouped into homogeneous segments, or pools, for allowance calculation. The Company's loan portfolio segments as of March 31, 2023 and June 30, 2023 were as follows:

•One-to-four Family - Carver Federal purchases first mortgage loans secured by one-to-four family properties that serve as the primary residence of the owner and non-qualified mortgages for one-to-four family residential loans. The loans are underwritten in accordance with applicable secondary market underwriting guidelines and requirements for sale. These loans present a moderate level of risk due primarily to general economic conditions.

•Multifamily - Carver Federal originates and purchases recourse and non-recourse multifamily loans. Multifamily property lending entails additional risks compared to one-to-four family lending. These loans are dependent on the successful operation of such buildings and can be significantly impacted by economic conditions, industry concentration, valuation of the underlying properties, lease terms, occupancy/vacancy rates, and changes in market demand for multifamily units. The Bank primarily considers the property's ability to generate net operating income sufficient to support the debt service, the financial resources, income level and managerial expertise of the borrower, the marketability of the property and the Bank's lending experience with the owner/guarantor.

•Commercial Real Estate ("CRE") - CRE lending consists predominantly of originating loans for the purpose of purchasing or refinancing office, mixed-use properties, retail and church buildings in the Bank's market area.  Mixed-use loans are secured by properties that are intended for both commercial and residential use, but predominantly commercial, and are classified as CRE. The Bank primarily considers the ability of the net operating income generated by the real estate to support the debt service, the financial resources, income level and managerial expertise of the borrower, the marketability of the property and the Bank's lending experience with the owner/guarantor. The Bank also requires the assignment of rents of all tenants' leases in the mortgaged property and personal guarantees may be obtained for additional security from these borrowers. CRE loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions and the complexities involved in valuing the underlying collateral.

•Business - Carver Federal originates and purchases business and SBA loans primarily to businesses located in its primary market area and surrounding areas. Business loans are typically personally guaranteed by the owners and may also be secured by additional collateral, including real estate, equipment and inventory. Business loans are subject to increased risk from the effect of general economic conditions. SBA loans are guaranteed by the U.S. government based on the percentage of each individual program.

•Consumer (including Overdraft accounts) - The Consumer portfolio includes student loans to medical students enrolled in several Caribbean schools, as well as unsecured consumer loans purchased from or originated through strategic partnerships with Bankers Healthcare Group, LLC and Upstart Holdings, Inc. Consumer loans are typically unsecured and more susceptible to declining economic conditions.

Because expected loss predictions may not adequately project the level of losses inherent in a portfolio, the Bank reviews a number of qualitative factors on a quarterly basis to determine if reserves should be adjusted based upon any of those factors.  As the risk ratings worsen, some of the qualitative factors tend to increase.  A number of qualitative factors are considered including economic forecast uncertainty, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, impact of rising rates, external factors and other considerations. Although the quantitative calculation includes a measurement of statistical economic conditions based on national averages, an additional analysis is

9

performed at the qualitative level that applies specifically to the Company's geographic area and the banking industry that includes reasonable and supportable forecasts.

Reserve for Off-Balance Sheet Credit Exposure

    In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the consolidated statements of condition when they are funded. The Company estimates a reserve for expected credit losses on loan commitments over the contractual period in which it is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The Bank does not record any reserve for unconditionally cancellable unfunded lending commitment since the exposure may be canceled to prevent future credit loss. Reserves for unfunded lending commitments that are not unconditionally cancellable are included in Other Liabilities in the consolidated statements of financial condition. Management will consider the likelihood that funding will occur and use the discount rate based on the associated pooled loan analysis loss rate to calculate the estimated expected credit losses. The ACL on off-balance sheet credit exposures was $10 thousand as of June 30, 2023.

Allowance for Credit Losses - Securities

The Company conducts periodic reviews to identify and evaluate each investment that has an unrealized holding loss. For available-for-sale ("AFS") securities in an unrealized loss position, management determines whether the Company has the intent to sell the security, or is more likely than not that it will be required to sell the security before the recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the ACL is written off and the amortized cost adjusted for that amount. If any incremental credit loss occurs, the amortized cost is adjusted further by the credit loss and recorded in earnings. For AFS securities that do not meet the above criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management may consider various factors including downgrades in the rating of the security by rating agencies, failure of the issuer to make scheduled interest or principal payments or adverse conditions specifically related to the security. If the decline in fair value is due to credit loss, the credit loss is recorded through ACL, limited by the amount that the fair value is less than the amortized cost basis. The Bank's held-to-maturity portfolio consists of mortgage-backed securities issued by U.S. government agencies, which have an explicit government guarantee. As a result, no ACL has been recorded related to held-to-maturity securities.

NOTE 3. LOSS PER COMMON SHARE

    The following table reconciles the loss available to common shareholders (numerator) and the weighted average common stock outstanding (denominator) for both basic and diluted loss per share for the following periods:

	Three Months Ended June 30,
$ in thousands except per share data	2023		2022
Net loss	$	(1,421)	$	(857)
Weighted average common shares outstanding - basic	4,496,782		4,229,209
Weighted average common shares outstanding – diluted	4,496,782		4,229,209
Basic loss per common share	$	(0.32)	$	(0.20)
Diluted loss per common share	(0.32)		(0.20)

The Company has preferred stock which are entitled to receive dividends if declared on the Company's common stock and are therefore considered to be participating securities. Basic earnings (loss) per share (“EPS”) is computed using the two class method. This calculation divides net income (loss) available to common stockholders after the allocation of undistributed earnings to the participating securities by the weighted average number of shares of common stock outstanding during the period.  Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. These potentially dilutive shares are then included in the weighted average number of shares outstanding for the period. Dilution calculations are not applicable to net loss periods. For the three months ended June 30, 2023 and 2022, all restricted shares and outstanding stock options were anti-dilutive.

10

NOTE 4. COMMON STOCK DIVIDENDS AND ISSUANCES

    On October 28, 2011, the United States Department of the Treasury (the "Treasury Department") exchanged the CDCI Series B preferred stock for 2,321,286 shares of Carver common stock and the Series C preferred stock converted into 1,208,039 shares of Carver common stock and 45,118 shares of Series D preferred stock. Series C stock was previously reported as mezzanine equity, and upon conversion to common and Series D preferred stock is now reported as equity attributable to Carver Bancorp, Inc. The holders of the Series D Preferred Stock are entitled to receive dividends, on an as-converted basis, simultaneously to the payment of any dividends on the common stock.

In June 2020, The Goldman Sachs Group, Inc., an institutional investor, notified the Company of their intention to effect a series of transfers of up to all its holdings of Series D Preferred Stock. The conversion and subsequent sale of shares were completed on July 2, 2020: 13,519 Series D Preferred Stock shares were converted into 1,653,397 shares of Common Stock, which were subsequently sold in the open market. The conversion and sale had no impact on the Company's total capital.

On July 9, 2020, the Company received notice that Morgan Stanley International Holdings Inc. ("Morgan Stanley"), an institutional investor, relinquished its ownership of 180,573 shares of Company common stock and 13,523 shares of Company Preferred Series D Stock to the Company at no cost to the Company.

On August 6, 2020, the Company entered into a Securities Purchase Agreement (the "Agreement") with the Treasury Department to repurchase 2,321,286 shares of Company common stock, owned by the Treasury Department for an aggregate purchase price of $2.5 million. The stock repurchase provided for in the Agreement was completed on August 6, 2020. Upon completion of the repurchase pursuant to the Agreement, the Treasury Department was no longer a stockholder in the Company. In connection with the repurchase, Morgan Stanley provided a grant of $2.5 million that was considered contributed capital to the Company to fund the repurchase transaction.

On October 15, 2020, the Company entered into an agreement with Banc of America Strategic Investments Corporation under which it issued and sold 147,227 shares of its common stock, par value $0.01, at a price of $6.62 per share. The shares were issued on October 15, 2020, in a private placement exempt from registration under Section 4(2) of the Securities Act of 1933, as amended, and Regulation D of the rules and regulations promulgated thereunder.

On January 22, 2021, Prudential Insurance Company of America ("Prudential"), an institutional investor, notified the Company of its intention to cancel 475 of its holdings of Series D Preferred Stock and convert such shares into 58,093 shares of common stock. During fiscal years 2022 and 2023, Prudential donated a total of 3,850 and 550 shares, respectively, of its holdings of Series D Preferred Stock to third parties. The third parties notified the Company of their intention to cancel the shares and convert them into 470,855 and 67,265 shares, respectively, of Common Stock. During the three months ended June 30, 2023, Prudential donated a total of 1,650 shares of its holdings of Series D Preferred Stock to third parties. The third parties notified the Company of their intention to cancel the shares and convert them into 201,795 shares of Common Stock. The conversions had no impact on the Company's total capital.

On February 1, 2021, the Company entered into an agreement with Wells Fargo Central Pacific Holdings, Inc., under which it sold: (i) 157,806 shares of its common stock, par value $0.01 per share, at a purchase price of $7.75 per share, and (ii) 3,177 shares of a new series of preferred stock, Series E non-cumulative non-voting participating preferred stock, par value $0.01 per share, at a purchase price of $1,000 per share, in a private placement for gross proceeds of approximately $4.4 million. Upon the completion of certain transfers of the Series E preferred stock by Wells Fargo Central Pacific Holdings, Inc., the Series E preferred stock would be convertible into common stock at a conversion price of $7.96 per share. The issuance of the shares is exempt from registration pursuant to the exemption provided under Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended. The offering was made only to accredited investors as that term is defined in Rule 501(a) of Regulation D under the Act.

11

On February 16, 2021, the Company entered into an agreement with J.P. Morgan Chase Community Development Corporation ("J.P. Morgan"), under which it sold: (i) 112,612 shares of its common stock, par value $0.01 per share, at a purchase price of $8.88 per share, and (ii) 5,000 shares of a new series of preferred stock, Series F non-cumulative non-voting non-convertible preferred stock, par value $0.01 per share ("Series F Preferred Stock"), at a purchase price of $1,000 per share, in a private placement for gross proceeds of approximately $6.0 million. On September 27, 2021, the Company entered into an agreement with J.P. Morgan under which it sold an additional 4,000 shares of its Series F Preferred Stock, at a purchase price of $1,000 per share, in a private placement for gross proceeds of $4.0 million. The issuances of the shares were exempt from registration pursuant to the exemption provided under Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended. The offerings were made only to accredited investors as that term is defined in Rule 501(a) of Regulation D under the Act.

On December 14, 2021, the Company entered into a Sales Agreement (the "Sales Agreement") with Piper Sandler & Co. (“Piper Sandler”), as sales agent, pursuant to which the Company may offer and sell shares of its common stock, par value $0.01 per share, having an aggregate gross sales prices of up to $20.0 million (the “ATM Shares”) from time to time. Any sales made under the Sales Agreement will be sales deemed to be "at-the-market (ATM) offerings," as defined in Rule 415 under the Securities Act of 1933, as amended. These sales will be made through ordinary broker transactions on the NASDAQ Capital Market stock exchange at market prices prevailing at the time, at prices related to the prevailing market prices, or at negotiated prices. The Company intends to use the net proceeds of these offerings for general corporate purposes, including support for organic loan growth and repayment of all or a portion of the outstanding principal amount of our outstanding subordinated debt securities. During fiscal year 2022, the Company sold an aggregate of 397,367 shares of common stock under the ATM offering program, resulting in gross proceeds of $3.1 million and net proceeds to the Company of $3.0 million after deducting commissions and expenses. There were no additional offerings in fiscal year 2023 or during the three months ended June 30, 2023.

NOTE 5. OTHER COMPREHENSIVE LOSS

    The following tables set forth changes in each component of accumulated other comprehensive loss, net of tax for the three months ended June 30, 2023 and 2022:

$ in thousands	At March 31, 2023		Other Comprehensive Loss, net of tax		At June 30, 2023
Net unrealized loss on securities available-for-sale	$	(12,215)	$	(793)	$	(13,008)

$ in thousands	At March 31, 2022		Other Comprehensive Income, net of tax		At June 30, 2022
Net unrealized loss on securities available-for-sale	$	(6,662)	$	(3,614)	$	(10,276)

    There were no reclassifications out of accumulated other comprehensive loss to the consolidated statement of operations for the three months ended June 30, 2023 and 2022.

NOTE 6. INVESTMENT SECURITIES

    The Bank utilizes mortgage-backed and other investment securities in its asset/liability management strategy. In making investment decisions, the Bank considers, among other things, its yield and interest rate objectives, its interest rate and credit risk position, and its liquidity and cash flow.

    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 June 30, 2023, securities with fair value of $52.2 million, or 95.9%, of the Bank’s total securities were classified as available-for-sale, and securities with amortized cost of $2.2 million, or 4.1%, 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 June 30, 2023 and March 31, 2023.

12

    Other investments as of June 30, 2023 primarily consists of the Bank's investment in a limited partnership Community Capital Fund and a $5.2 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 investment in the limited partnership is measured using the equity method. The BOLI is carried at the cash surrender value of the underlying policies. Income generated from the investment 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 $6.2 million at June 30, 2023 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 June 30, 2023 and March 31, 2023:

	At June 30, 2023
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	316	$	—	$	4	$	312
Federal Home Loan Mortgage Corporation	21,281		—		4,607		16,674
Federal National Mortgage Association	11,510		—		2,262		9,248
Total mortgage-backed securities	33,107		—		6,873		26,234
U.S. Government Agency Securities	9,112		—		30		9,082
Corporate Bonds	5,268		—		2,182		3,086
Muni Securities	17,713		—		3,923		13,790
Total available-for-sale	$	65,200	$	—	$	13,008	$	52,192
Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	347	$	—	$	9	$	338
Federal National Mortgage Association and Other	1,890		—		121		1,769
Total held-to maturity	$	2,237	$	—	$	130	$	2,107

	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 and Other	1,952		—		94		1,858
Total held-to-maturity	$	2,318	$	—	$	97	$	2,221

There were no sales of available-for-sale or held-to-maturity securities for the three months ended June 30, 2023 and June 30, 2022.

13

    The following tables set forth the unrealized losses and fair value of securities in an unrealized loss position at June 30, 2023 and March 31, 2023 for less than 12 months and 12 months or longer:

	At June 30, 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	$	3	$	270	$	6,870	$	25,964	$	6,873	$	26,234
U.S. Government Agency securities	—		—		30		9,082		30		9,082
Corporate bonds	—		—		2,182		3,086		2,182		3,086
Muni securities	—		—		3,923		13,790		3,923		13,790
Total available-for-sale securities	$	3	$	270	$	13,005	$	51,922	$	13,008	$	52,192
Held-to-Maturity:
Mortgage-backed securities	$	9	$	338	$	121	$	1,734	$	130	$	2,072
Total held-to-maturity securities	$	9	$	338	$	121	$	1,734	$	130	$	2,072

	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 25 securities had an unrealized loss at June 30, 2023 compared to 24 at March 31, 2023. Mortgage-backed securities, U.S. government agency securities, municipal securities and a corporate bond security represented 50.3%, 17.4%, 26.4% and 5.9%, respectively, of total available-for-sale securities in an unrealized loss position at June 30, 2023. There were eight mortgage-backed securities, three U.S. government agency securities, one corporate bond, six municipal securities and zero asset-backed security that had an unrealized loss position for more than 12 months at June 30, 2023. Management has evaluated available-for-sale securities that are in an unrealized loss position and has 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 the U.S. government's guarantees, 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 did not have any securities that were classified as having other-than-temporary impairment in its investment portfolio. As such, no allowance for credit losses on securities available-for-sale or held-to-maturity have been established as of June 30, 2023.

14

    The following is a summary of the amortized cost and fair value of debt securities at June 30, 2023, 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:
Five through ten years	5,540		5,157		4.63	%
After ten years	26,553		20,801		3.47	%
Mortgage-backed securities	33,107		26,234		1.62	%
Total	$	65,200	$	52,192	2.66	%
Held-to-maturity:
Mortgage-backed securities	$	2,237	$	2,107	2.8	%

NOTE 7. LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

The loans receivable portfolio is segmented into one-to-four family, multifamily, commercial real estate, business (including Small Business Administration loans), and consumer loans.

    The ACL reflects management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. Management uses a disciplined process and methodology to calculate the ACL each quarter. To determine the total ACL, management estimates the reserves needed for each segment of the loan portfolio, including loans analyzed individually and loans analyzed on a pooled basis.

    The following is a summary of loans receivable at June 30, 2023 and March 31, 2023:

	June 30, 2023				March 31, 2023
$ in thousands	Amount		Percent		Amount		Percent
Loans receivable:
One-to-four family	$	65,526	11.1	%	$	65,808	11.0	%
Multifamily	178,815		30.3	%	179,117		30.0	%
Commercial real estate	173,088		29.3	%	178,424		29.8	%
Business (1)	163,348		27.7	%	166,908		27.9	%
Consumer (2)	9,757		1.6	%	7,639		1.3	%
Total loans receivable	$	590,534	100.0	%	$	597,896	100.0	%
Allowance for credit losses	(5,858)				(5,229)
Total loans receivable, net	$	584,676			$	592,667

(1) Includes PPP loans and business overdrafts

(2) Includes personal loans and consumer overdrafts

The totals above are shown net of deferred loan fees and costs. Net deferred loan fees totaled $2.7 million and $2.8 million at June 30, 2023 and March 31, 2023, respectively. The Bank purchased $2.8 million consumer loans and $0.3 million business loans during the three months ended June 30, 2023.

The Bank participated as a lender in the PPP, which opened on April 3, 2020. As part of the CARES Act, the 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 enrolled 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 June 30, 2023, 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 June 30, 2023.

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. At June 30, 2023 and March 31, 2023, no loans were on COVID-related deferrals as the remaining 90-day loan deferments expired and borrowers became current.

15

The following is an analysis of the allowance for credit losses based upon the method of evaluating loan reserves for the three months ended June 30, 2023 under the expected loss methodology.

Three months ended June 30, 2023
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	716	$	1,109	$	1,814	$	1,139	$	449	$	2	$	5,229
Impact of CECL adoption	1,220		(392)		(497)		505		(166)		(2)		668
Charge-offs	—		—		—		—		(95)		—		(95)
Recoveries	—		—		—		49		1		—		50
Provision for (recovery of) Credit Losses	127		(4)		(53)		(289)		225		—		6
Ending Balance	$	2,063	$	713	$	1,264	$	1,404	$	414	$	—	$	5,858
Allowance for Credit Losses Ending Balance: collectively evaluated for impairment	$	1,962	$	713	$	1,264	$	1,392	$	414	$	—	$	5,745
Allowance for Credit Losses Ending Balance: individually evaluated for impairment	101		—		—		12		—		—		113
Loan Receivables Ending Balance:	$	65,526	$	178,815	$	173,088	$	163,348	$	9,757	$	—	$	590,534
Ending Balance: collectively evaluated for impairment	60,386		176,508		168,566		152,424		9,756		—		567,640
Ending Balance: individually evaluated for impairment	5,140		2,307		4,522		10,924		1		—		22,894

The following is an analysis of the allowance for loan losses as of the fiscal year ended March 31, 2023 and for the three months ended June 30, 2022 based upon the incurred loss impairment model.

At March 31, 2023
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for Loan Losses 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 impairment	109		—		—		202		—		—		311
Loan Receivables Ending Balance:	$	65,808	$	179,117	$	178,424	$	166,908	$	7,639	$	—	$	597,896
Ending Balance: collectively evaluated for impairment	60,805		179,046		171,234		160,985		7,638		—		579,708
Ending Balance: individually evaluated for impairment	5,003		71		7,190		5,923		1		—		18,188

Three months ended June 30, 2022
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	731	$	1,114	$	1,157	$	2,497	$	123	$	2	$	5,624
Charge-offs	—		—		—		—		(13)		—		(13)
Recoveries	—		—		—		19		1		—		20
Provision for (recovery of) Loan Losses	(82)		(61)		(49)		(195)		2		358		(27)
Ending Balance	$	649	$	1,053	$	1,108	$	2,321	$	113	$	360	$	5,604

16

The following is a summary of nonaccrual loans, at amortized cost, at June 30, 2023 and March 31, 2023.

	June 30, 2023						March 31, 2023
$ in thousands	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance		Total Nonaccrual Loans		Nonaccrual Loans
Gross loans receivable:
One-to-four family	$	4,154	$	—	$	4,154	$	4,001
Multifamily	824		—		$	824	71
Commercial real estate	4,522		—		$	4,522	7,190
Business	6,088		10		$	6,098	998
Consumer	1		—		$	1	1
Total nonaccrual loans	$	15,589	$	10	$	15,599	$	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. When a loan is placed on nonaccrual status, any accrued but uncollected interest is reversed from current income. 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 for the three months ended June 30, 2023.

    At June 30, 2023 and March 31, 2023, other non-performing assets totaled $60 thousand, 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 June 30, 2023 and March 31, 2023.

    Although we believe that substantially all risk elements at June 30, 2023 have been disclosed, it is possible that for a variety of reasons, including economic conditions, certain borrowers may be unable to comply with the contractual repayment terms on certain real estate and commercial loans.

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.

17

    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 June 30, 2023:

$ in thousands	2023		2022		2021		2020		2019		2018 and earlier		Revolving Loans		Total
Credit Risk Profile by Internally Assigned Grade:
Multifamily
Pass	$	3,287	$	54,039	$	51,796	$	28,328	$	18,088	$	20,172	$	—	$	175,710
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		1,483		1,560		—		62		—		3,105
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	3,287		54,039		53,279		29,888		18,088		20,234		—		178,815
Commercial Real Estate
Pass	8,383		31,662		28,022		17,289		21,172		61,344		—		167,872
Special Mention	—		—		—		—		—		694		—		694
Substandard	—		—		—		—		—		4,522		—		4,522
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	8,383		31,662		28,022		17,289		21,172		66,560		—		173,088
Business
Pass	8,454		42,152		49,728		11,037		401		42,070		—		153,842
Special Mention	—		—		7,326		—		—		16		—		7,342
Substandard	—		—		—		—		193		1,971		—		2,164
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	8,454		42,152		57,054		11,037		594		44,057		—		163,348
Credit Risk Profile Based on Payment Activity:
One-to-four Family
Performing	1,610		3,876		13,562		1,448		9,127		31,778		—		61,401
Non-Performing	—		—		—		—		—		4,125		—		4,125
Total	1,610		3,876		13,562		1,448		9,127		35,903		—		65,526
Consumer
Performing	7,769		803		17		30		—		1,137		—		9,756
Non-Performing	—		1		—		—		—		—		—		1
Total	7,769		804		17		30		—		1,137		—		9,757
Gross charge-offs	—		—		—		—		—		95		—		95
Total	$	29,503	$	132,533	$	151,934	$	59,692	$	48,981	$	167,891	$	—	$	590,534

18

    At March 31, 2023, 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	$	175,981	$	170,534	$	154,056
Special Mention	771		701		5,719
Substandard	2,365		7,189		7,133
Total	$	179,117	$	178,424	$	166,908
			One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing			$	60,629	$	7,639
Non-Performing			5,179		—
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 table presents an aging analysis of the amortized cost of past due loans receivables at June 30, 2023 and March 31, 2023.

.

June 30, 2023
$ in thousands	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivables
One-to-four family	$	—	$	263	$	2,649	$	2,912	$	62,614	$	65,526
Multifamily	—		551		1,078		1,629		177,186		178,815
Commercial real estate	—		—		4,522		4,522		168,566		173,088
Business	—		11,652		2,528		14,180		149,168		163,348
Consumer	—		73		32		105		9,652		9,757
Total	$	—	$	12,539	$	10,809	$	23,348	$	567,186	$	590,534

March 31, 2023
$ in thousands	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivables
One-to-four family	$	1,207	$	185	$	2,475	$	3,867	$	61,941	$	65,808
Multifamily	1,458		—		71		1,529		177,588		179,117
Commercial real estate	1,370		—		—		1,370		177,054		178,424
Business	11,006		—		5,014		16,020		150,888		166,908
Consumer	99		26		34		159		7,480		7,639
Total	$	15,140	$	211	$	7,594	$	22,945	$	574,951	$	597,896

At June 30, 2023 and March 31, 2023, there were no loans 90 or more days past due and accruing interest.

19

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 June 30, 2023:

	Collateral Type
$ in thousands	Real Estate		Other		Allowance Allocated
One-to-four family	$	5,140	$	—	$	101
Multifamily	2,307		—		—
Commercial real estate	4,522		—		—
Business	10,731		193		12
Consumer	1		—		—
	$	22,701	$	193	$	113

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.

	At March 31, 2023
$ in thousands	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Balance		Interest Income Recognized
With no specific allowance recorded:
One-to-four family	$	3,972	$	4,567	$	—	$	3,861	$	111
Multifamily	71		71		—		220		—
Commercial real estate	7,190		7,378		—		4,054		36
Business	1,114		1,146		—		1,723		—
Consumer	1		1		—		—		—
With an allowance recorded:
One-to-four family	1,031		1,031		109		554		41
Business	4,809		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 three months ended June 30, 2023. There were two one-to-four family loans totaling $1.0 million modified during the three months ended June 30, 2022. At June 30, 2023, loans modified to borrowers experiencing financial difficulty totaled $7.5 million, $1.6 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 four modified loans totaling $5.9 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 restructured terms for a period of at least six months.

    In an effort to proactively resolve delinquent loans, the Bank has selectively extended to certain borrowers concessions such as extensions, rate reductions or forbearance agreements. For the periods ended June 30, 2023 and 2022, there were no modified loans that defaulted within 12 months of modification.

20

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 June 30, 2023 and at March 31, 2023. There were no advances or principal repayments during the three months ended June 30, 2023.

    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.

NOTE 8. FAIR VALUE MEASUREMENTS

    Fair value is an “exit” price, representing the amount that would be received when selling an asset, or paid when transferring a liability, in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are categorized in a a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

•Level 1— Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

•Level 2— Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

◦Level 3— Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

    A financial instrument’s categorization within this valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

    The following table presents, by valuation hierarchy, assets that are measured at fair value on a recurring basis as of June 30, 2023 and March 31, 2023, and that are included in the Company’s Consolidated Statements of Financial Condition at these dates:

	Fair Value Measurements at June 30, 2023, Using
$ in thousands	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Mortgage servicing rights	$	—	$	—	$	147	$	147
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		312		—		312
Federal Home Loan Mortgage Corporation	—		16,674		—		16,674
Federal National Mortgage Association	—		9,248		—		9,248
U.S. Government Agency securities	—		9,082		—		9,082
Corporate bonds	—		3,086		—		3,086
Muni securities	—		13,790		—		13,790
Total available-for-sale securities	—		52,192		—		52,192
Total assets	$	—	$	52,192	$	147	$	52,339

21

	Fair Value Measurements at March 31, 2023, Using
$ in thousands	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Mortgage servicing rights	$	—	$	—	$	152	$	152
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		341		—		341
Federal Home Loan Mortgage Corporation	—		17,600		—		17,600
Federal National Mortgage Association	—		9,502		—		9,502
U.S. Government Agency securities	—		9,326		—		9,326
Corporate bonds	—		3,092		—		3,092
Muni securities	—		13,982		—		13,982
Total available-for-sale securities	—		53,843		—		53,843
Total assets	$	—	$	53,843	$	152	$	53,995

    Instruments for which unobservable inputs are significant to their fair value measurement (i.e., Level 3) include mortgage servicing rights (“MSR”). Level 3 assets accounted for 0.02% of the Company’s total assets at June 30, 2023 and March 31, 2023.

    The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next that are related to the observable inputs to a fair value measurement may result in a reclassification from one hierarchy level to another.

    Below is a description of the methods and significant assumptions utilized in estimating the fair value of available-for-sale securities and MSR:

    Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy.

    If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. These pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices, and credit spreads. In addition to market information, models also incorporate transaction details, such as maturity and cash flow assumptions. Securities valued in this manner would generally be classified within Level 2 of the valuation hierarchy and primarily include such instruments as mortgage-related securities and corporate debt.

    In the three month period ended June 30, 2023, there were no transfers of investments into or out of each level of the fair value hierarchy.

    In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. In valuing certain securities, the determination of fair value may require benchmarking to similar instruments or analyzing default and recovery rates. Quoted price information for the MSRs is not available. Therefore, MSRs are valued using market-standard models to model the specific cash flow structure. Key inputs to the model consist of principal balance of loans being serviced, servicing fees and discount and prepayment rates.

    The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

22

    The following table includes a rollforward of assets classified by the Company within Level 3 of the valuation hierarchy for the three months ended June 30, 2023 and 2022:

$ in thousands	Beginning balance, April 1, 2023	Total Realized/Unrealized Gains/(Losses) Recorded in Income (1)	Issuances / (Settlements)	Transfers to/(from) Level 3	Ending balance, June 30, 2023	Change in Unrealized Gains/(Losses) Related to Instruments Held at June 30, 2023
Mortgage servicing rights	152	(5)	—	—	147	(5)

$ in thousands	Beginning balance, April 1, 2022	Total Realized/Unrealized Gains/(Losses) Recorded in Income (1)	Issuances / (Settlements)	Transfers to/(from) Level 3	Ending balance, June 30, 2022	Change in Unrealized Gains/(Losses) Related to Instruments Held at June 30, 2022
Mortgage servicing rights	162	3	—	—	165	3

(1) Includes net servicing cash flows and the passage of time.

    For Level 3 assets measured at fair value on a recurring basis as of June 30, 2023 and March 31, 2023, the significant unobservable inputs used in the fair value measurements were as follows:

$ in thousands	Fair Value June 30, 2023	Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Mortgage servicing rights	147	Discounted Cash Flow	Weighted Average Constant Prepayment Rate (1)	3.86	%
			Option Adjusted Spread ("OAS") applied to Treasury curve	1000 basis points

$ in thousands	Fair Value March 31, 2023	Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Mortgage servicing rights	152	Discounted Cash Flow	Weighted Average Constant Prepayment Rate (1)	4.01	%
			Option Adjusted Spread ("OAS") applied to Treasury curve	1000 basis points

(1) Represents annualized loan repayment rate assumptions

    Certain assets are measured at fair value on a non-recurring basis. Such instruments are subject to fair value adjustments under certain circumstances (e.g. when there is evidence of impairment). The following table presents assets and liabilities that were measured at fair value on a non-recurring basis as of June 30, 2023 and March 31, 2023, and that are included in the Company’s Consolidated Statements of Financial Condition at these dates:

	Fair Value Measurements at June 30, 2023 Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
$ in thousands	(Level 1)		(Level 2)		(Level 3)
Collateral dependent loans	$	—	$	—	$	1,029	$	1,029
Other real estate owned	—		—		60		$	60

	Fair Value Measurements at March 31, 2023, Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
$ in thousands	(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	—	$	—	$	5,529	$	5,529
Other real estate owned	—		—		60		$	60

23

    For Level 3 assets measured at fair value on a non-recurring basis as of June 30, 2023 and March 31, 2023, the significant unobservable inputs used in the fair value measurements were as follows:

$ in thousands	Fair Value June 30, 2023		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Collateral dependent loans	$	1,029	Appraisal of collateral	Appraisal adjustments	7.5% cost to sell
Other real estate owned	60		Appraisal of collateral	Appraisal adjustments	7.5% cost to sell

$ in thousands	Fair Value March 31, 2023		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Impaired loans	$	5,529	Appraisal of collateral	Appraisal adjustments	7.5% cost to sell
Other real estate owned	60		Appraisal of collateral	Appraisal adjustments	7.5% cost to sell

    The fair values of collateral dependent impaired loans are determined using various valuation techniques, including consideration of appraised values and other pertinent real estate market data.

    Other real estate owned represents property acquired by the Bank in settlement of loans less costs to sell (i.e., through foreclosure, repossession or as an in-substance foreclosure).  These assets are recorded at the lower of their cost or fair value. At the time of acquisition of the real estate owned, the real property value is adjusted to its current fair value. Any subsequent adjustments will be to the lower of cost or fair value. As of June 30, 2023 and March 31, 2023, the Company had loans with a carrying value of $2.9 million and $5.6 million, respectively, for which formal foreclosure proceedings were in process.

NOTE 9. FAIR VALUE OF FINANCIAL INSTRUMENTS

    Disclosures regarding the fair value of financial instruments are required to include, in addition to the carrying value, the fair value of certain financial instruments, both assets and liabilities recorded on and off-balance sheet, for which it is practicable to estimate fair value. Accounting guidance defines financial instruments as cash, evidence of ownership of an entity, or a contract that conveys or imposes on an entity the contractual right or obligation to either receive or deliver cash or another financial instrument. The fair value of a financial instrument is discussed below. In cases where quoted market prices are not available, estimated fair values have been determined by the Bank using the best available data and estimation methodology suitable for each such category of financial instruments. For those loans and deposits with floating interest rates, it is presumed that estimated fair values generally approximate their recorded carrying value. The Bank's primary component of market risk is interest rate volatility. Fluctuations in interest rates will ultimately impact the Bank's fair value of all interest-earning assets and interest-bearing liabilities, other than those which are short-term in maturity.

24

    The carrying amounts and estimated fair values of the Bank’s financial instruments and estimation methodologies at June 30, 2023 and March 31, 2023 are as follows:

	June 30, 2023
$ in thousands	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	41,691	$	41,691	$	41,691	$	—	$	—
Securities available-for-sale	52,192		52,192		—		52,192		—
Securities held-to-maturity	2,237		2,107		—		2,107		—
Loans receivable	584,676		547,028		—		—		547,028
Accrued interest receivable	1,981		1,981		—		1,981		—
Mortgage servicing rights	147		147		—		—		147
Financial Liabilities:
Deposits	$	593,162	$	587,508	$	406,245	$	181,263	$	—
Advances from FHLB-NY	32,500		32,349		—		32,349		—
Other borrowed money	18,403		16,796		—		16,796		—
Accrued interest payable	718		718		—		718		—

	March 31, 2023
$ in thousands	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	42,552	$	42,552	$	42,552	$	—	$	—
Securities available-for-sale	53,843		53,843		—		53,843		—
Securities held-to-maturity	2,318		2,221		—		2,221		—
Loans receivable	592,667		567,029		—		—		567,029
Accrued interest receivable	1,911		1,911		—		1,911		—
Mortgage servicing rights	152		152		—		—		152
Financial Liabilities:
Deposits	$	600,429	$	594,736	$	418,432	$	176,304	$	—
Advances from FHLB-NY	35,000		35,238		—		35,238		—
Other borrowed money	15,903		14,575		—		14,575		—
Accrued interest payable	380		380		—		380		—

NOTE 10. NON-INTEREST REVENUE AND EXPENSE

    Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest income streams such as gains on sales of residential mortgage and SBA loans, income associated with servicing assets, and loan fees, including residential mortgage originations to be sold and prepayment and late fees charged across all loan categories are also not in scope of the guidance. Topic 606 is applicable to non-interest revenue streams, such as depository fees, service charges and commission revenues. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Non-interest revenue streams in-scope of Topic 606 are discussed below.

Depository fees and charges

    Depository fees and charges primarily relate to service fees on deposit accounts and fees earned from debit cards and check cashing transactions. Service fees on deposit accounts consist of ATM fees, NSF fees, account maintenance charges and

25

other deposit related fees. The revenue is recognized monthly when the Bank's performance obligations are complete, or as incurred for transaction-based fees in accordance with the fee schedules for the Bank's deposit products and services.

Loan fees and service charges

    Loan fees and service charges primarily relate to program management fees and fees earned in accordance with the Bank's standard lending fees (such as inspection and late charges). These standard lending fees are earned on a monthly basis upon receipt.

Other non-interest income

    Other non-interest income includes correspondent banking fees, revenue from the Bank's participation in JPMorgan Chase's Empowering Change program, and income associated with an advertising services agreement covering marketing and use of the Bank's office space with a third party. The revenue is recognized on a monthly basis.

Interchange income

    The Company earns interchange fees from debit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions are recognized daily, concurrently with the transaction processing services provided by an outsource technology solution and are presented on a net basis.

    The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended June 30, 2023 and 2022:

	Three Months Ended June 30,
$ in thousands	2023		2022
Non-interest income
In-scope of Topic 606
Depository fees and charges	$	577	$	555
Loan fees and service charges	50		116
Other non-interest income	59		10
Non-interest income (in-scope of Topic 606)	686		681
Non-interest income (out-of-scope of Topic 606)	69		28
Total non-interest income	$	755	$	709

26

    The following table sets forth other non-interest income and expense totals exceeding 1% of the aggregate of total interest income and non-interest income for any of the periods presented:

	Three Months Ended June 30,
$ in thousands	2023		2022
Other non-interest income:
Correspondent banking fees	$	—	$	—
Other	94		35
Total non-interest income	$	94	$	35
Other non-interest expense:
Advertising	$	69	$	153
Legal expense	93		71
Insurance and surety	309		296
Audit expense	166		151
Data lines / internet	106		96
Security services	19		74
Retail expenses	286		216
Director's fees	105		123
Other	637		578
Total non-interest expense	$	1,790	$	1,758

NOTE 11. LEASES

    The Company applies Accounting Standards Codification Topic 842, Leases, ("ASC 842") to its leases. The Company has operating leases related to its administrative offices, seven retail branches and four ATM centers. Two of the operating leases are for branch locations where the Company had entered into a sale and leaseback transaction. The gain had been calculated utilizing the profit on sale in excess of the present value of the minimum lease payments, and the profit on the sale was deferred from gain recognition to be amortized into income over the terms of the leases in accordance with ASC 840. ASC 842 does not require previous sale and leaseback transactions accounted for under ASC 840 to be reassessed. As of June 30, 2023, operating ROU lease assets and related lease liabilities totaled $11.7 million and $12.5 million, respectively.

    As the implicit rates of the Company's existing leases are not readily determinable, the incremental borrowing rate used in determining the lease liability obligation for each individual lease was the FHLB-NY fixed-rate advance rates based on the remaining lease terms as of April 1, 2019.

    As of June 30, 2023, the Company had $171 thousand and $159 thousand of ROU asset and lease liability, respectively, for finance leases related to equipment. The ROU asset is included in Premises and Equipment, net, and the lease liability is included in Advances from the FHLB-NY and Other Borrowed Money on the statements of financial condition.

27

    The following tables present information about the Company's leases and the related lease costs as of and for the three months ended June 30, 2023:

	June 30, 2023
Weighted-average remaining lease term
Operating leases	5.0 years
Finance lease	2.4 years
Weighted-average discount rate
Operating leases	3.04	%
Finance lease	4.23	%

	Three Months Ended June 30,
$ in thousands	2023		2022
Operating lease expense	$	692	$	716
Finance lease cost
Amortization of right-of use asset	28		18
Interest on lease liability	2		—
Cash paid for amounts included in the measurement of lease liabilities
Operating leases	711		696
Finance lease	34		19

    Maturities of lease liabilities at June 30, 2023 are as follows:

$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2024	$	2,195	$	57
2025	2,705		63
2026	2,687		42
2027	2,440		5
2028	2,259		—
Thereafter	1,276		—
Total lease payments	13,562		167
Interest	(1,018)		(8)
Lease liability	$	12,544	$	159

NOTE 12. IMPACT OF RECENT ACCOUNTING STANDARDS

Accounting Standards Recently Adopted

On April 1, 2023, the Company adopted ASU No. 2016-13, "Financial Instruments - Credit Loss (Topic 326)" and its subsequent amendments, which replaces the guidance on recognition and measurement of credit losses for financial assets. The new requirements, known as the current expected credit loss model ("CECL") will require entities to adopt an impairment model based on expected losses rather than incurred losses. Under the CECL model, the allowance for credit losses ("ACL") is a valuation allowance that is deducted from the amortized cost basis of certain financial assets, including loans, held-to-maturity securities, and other receivables, to present the net carrying value at the amount expected to be collected. The measurement of expected credit losses is based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This differs from the incurred loss model, which delays recognition of credit losses until it is probable a loss has been incurred. The Company applied the new guidance with a cumulative-effect adjustment to retained earnings as of April 1, 2023, using the modified-retrospective

28

approach. Results for reporting periods beginning after April 1, 2023 are presented under CECL. Prior period amounts have not been restated and are reported in accordance with the incurred loss method. The adoption of ASU 2016-13 resulted in an increase of $0.7 million to the allowance for credit losses related to loans. There was no material impact for other assets within the scope of the new CECL guidance, such as held-to-maturity debt securities and other receivables.

On April 1, 2023, the Company adopted ASU No. 2022-02, "Financial Instruments - Credit Losses (ASC 326): Troubled Debt Restructurings (TDRs) and Vintage Disclosures," which eliminates the accounting guidance for TDRs, and replaced it with guidance and disclosure requirements for certain loan refinancing and restructuring activities to borrowers experiencing financial difficulty. The amendments also require disclosure of current period gross writeoffs by year of origination. The adoption of the standard did not have a material impact on the Company's consolidated statements of financial condition and results of operations..

On April 1, 2023, the Company adopted ASU No. 2021-10 "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance," which was issued to improve the financial reporting of government assistance received by business entities by requiring the disclosure of (1) the types of assistance received, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. The adoption of the standard did not have a material impact on the Company's consolidated statements of financial condition and results of operations.

On April 1, 2021, the Company adopted ASU No. 2019-12 "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which was part of the FASB's simplification initiative to reduce complexity, while maintaining or improving the usefulness of information provided to users of financial statements. The amendments in this update simplified the accounting for income taxes and improved consistent application of GAAP by removing certain exceptions and clarifying and amending existing guidance for areas of Topic 740. The adoption of the standard did not have a material impact on the Company's financial statements.

Accounting Standards Not Yet Adopted

In March 2020, the FASB issued ASU No. 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered "minor" so that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 is effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in this ASU must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. In December 2022, the FASB issued ASU No. 2022-06 "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848," which defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply for relief in Topic 848. We anticipate this ASU will simplify any modifications we execute between the selected start date (yet to be determined) and December 31, 2024 that are directly related to LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract resulting in writing off unamortized fees/costs. The Company is evaluating the impacts of this ASU and has not yet determined whether LIBOR transition and this ASU will have a material impact on the Company's consolidated statements of financial condition and results of operations.

NOTE 13. SUBSEQUENT EVENTS

On July 19, 2023, the Company entered into an agreement with National Community Investment Fund, under which it sold 378,788 shares of its common stock, par value $0.01 per share, at a purchase price of $2.64 per share in a private placement for gross proceeds of approximately $1.0 million. The Company intends to use the net proceeds of the private placement for general corporate purposes. The issuance of the shares is exempt from registration pursuant to under Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D of the rules and regulations promulgated thereunder.

29

On August 9, 2023, the Company announced that Michael T. Pugh will leave his positions as Chief Executive Officer and President and director of both the Company and the Bank, effective September 30, 2023, to pursue professional and philanthropic interests on a national level. A national search will be conducted by the Company to find a permanent Chief Executive Officer and President through an executive search process.

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

    This Quarterly Report on Form 10-Q contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 which may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the Company's financial condition, results of operations and business that are subject to various factors that could cause actual results to differ materially from these estimates. These factors include but are not limited to the following:

•changes in interest rates, which may reduce net interest margin and net interest income;

•monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;

•the ability of the Company to obtain approval from the Federal Reserve Bank of Philadelphia (the "Federal Reserve Bank") to distribute interest payments owed to the holders of the Company's subordinated debt securities;

•the limitations imposed on the Company which require, among other things, written approval of the Federal Reserve Bank prior to the declaration or payment of dividends, any increase in debt by the Company, or the redemption of Company common stock, and the effect on operations resulting from such limitations;

•the impact of the recent bank closings of First Republic Bank, Silicon Valley Bank and Signature Bank and the risks related to continued disruption in the banking industry and financial markets;

•the market price and trading volume of our shares of common stock has been and may continue to be volatile, and purchasers of our securities could incur substantial losses;

•changes in the level of trends of delinquencies and write-offs and in our allowance and provision for credit losses;

•the results of examinations by our regulators, including the possibility that our regulators may, among other things, require us to increase our reserve for credit losses, write down assets, change our regulatory capital position, limit our ability to borrow funds or maintain or increase deposits, or prohibit us from paying dividends, which could adversely affect our dividends and earnings;

•national and/or local changes in economic conditions, which could occur from numerous causes, including political changes, domestic and international policy changes, unrest, war and weather, inflation or deflation conditions in the real estate, securities markets or the banking industry, which could affect liquidity in the capital markets, the volume of loan originations, deposit flows, real estate values, the levels of non-interest income and the amount of credit losses;

•adverse changes in the financial industry and the securities, credit, national and local real estate markets (including real estate values);

•changes in our existing loan portfolio composition (including reduction in commercial real estate loan concentration) and credit quality or changes in credit loss requirements;

•legislative or regulatory changes that may adversely affect the Company’s business, including but not limited to new capital regulations, which could result in, among other things, increased deposit insurance premiums and assessments, capital requirements, regulatory fees and compliance costs, and the resources we have available to address such changes;

•changes in the level of government support of housing finance;

30

•changes to state rent control laws, which may impact the credit quality of multifamily housing loans;

•our ability to control costs and expenses;

•the continuing impact of the COVID-19 pandemic on our business and results of operations;

•the impairment of our investment securities;

•risks related to a high concentration of loans to borrowers secured by property located in our market area;

•increases in competitive pressure among financial institutions or non-financial institutions

;

•unexpected outflows of uninsured deposits could require us to sell investment securities at a loss;

•changes in consumer spending, borrowing and savings habits;

•technological changes that may be more difficult to implement or more costly than anticipated;

•changes in deposit flows, loan demand, real estate values, borrowing facilities, capital markets and investment opportunities, which may adversely affect our business;

•changes in accounting standards, policies and practices, as may be adopted or established by the regulatory agencies or the Financial Accounting Standards Board could negatively impact the Company's financial results;

•litigation or regulatory actions, whether currently existing or commencing in the future, which may restrict our operations or strategic business plan;

•the ability to originate and purchase loans with attractive terms and acceptable credit quality; and

•the ability to attract and retain key members of management, and to address staffing needs in response to product demand or to implement business initiatives.

    Because forward-looking statements are subject to numerous assumptions, risks and uncertainties, actual results or future events could differ possibly materially from those that the Company anticipated in its forward-looking statements. The forward-looking statements contained in this Quarterly Report on Form 10-Q are made as of the date of this Quarterly Report on Form 10-Q, and the Company assumes no obligation to, and expressly disclaims any obligation to, update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as legally required.

Overview

    Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered savings bank. The Company is headquartered in New York, New York. The Company conducts business as a unitary savings and loan holding company, and the principal business of the Company consists of the operation of Carver Federal. Carver Federal was founded in 1948 to serve African-American communities whose residents, businesses and institutions had limited access to mainstream financial services. The Bank remains headquartered in Harlem, and predominantly all of its seven branches and four stand-alone 24/7 ATM centers are located in low- to moderate-income neighborhoods. Many of these historically underserved communities have experienced unprecedented growth and diversification of incomes, ethnicity and economic opportunity, after decades of public and private investment.

    Carver Federal is among the largest African-American operated banks in the United States. The Bank remains dedicated to expanding wealth-enhancing opportunities in the communities it serves by increasing access to capital and other financial services for consumers, businesses and non-profit organizations, including faith-based institutions. A measure of its progress in achieving this goal includes the Bank's sixth consecutive "Outstanding" rating, issued by the OCC following its most recent Community Reinvestment Act (“CRA”) examination in March 2022. The OCC found that 90% of Carver Federal's loans were made within our assessment area, and the Bank has demonstrated excellent responsiveness to its assessment area's

31

needs through its community development lending, investing and service activities. The Bank had approximately $711.7 million in assets and 108 employees as of June 30, 2023.

    Carver Federal engages in a wide range of consumer and commercial banking services.  The Bank provides deposit products, including demand, savings and time deposits for consumers, businesses, and governmental and quasi-governmental agencies in its local market area within New York City.  In addition to deposit products, Carver Federal offers a number of other consumer and commercial banking products and services, including debit cards, online account opening and banking, online bill pay and telephone banking. Carver Federal also offers a suite of products and services for unbanked and underbanked consumers, branded as Carver Community Cash. This includes check cashing, wire transfers, bill payment, reloadable prepaid cards and money orders.

    Carver Federal offers loan products covering a variety of asset classes, including commercial and multifamily mortgages, and business loans.  The Bank finances mortgage and loan products through deposits or borrowings.  Funds not used to originate mortgages and loans are invested primarily in U.S. government agency securities and mortgage-backed securities.

    The Bank's primary market area for deposits consists of the areas served by its seven branches in the Brooklyn, Manhattan and Queens boroughs of New York City.  The neighborhoods in which the Bank's branches are located have historically been low- to moderate-income areas. The Bank's primary lending market includes Kings, New York, Bronx and Queens Counties in New York City, and lower Westchester County, New York. Although the Bank's branches are primarily located in areas that were historically underserved by other financial institutions, the Bank faces significant competition for deposits and mortgage lending in its market areas. Management believes that this competition has become more intense as a result of increased examination emphasis by federal banking regulators on financial institutions' fulfillment of their responsibilities under the CRA and more recently due to the decline in demand for loans. Carver Federal's market area has a high density of financial institutions, many of which have greater financial resources, name recognition and market presence, and all of which are competitors to varying degrees. The Bank's competition for loans comes principally from commercial banks, savings institutions and mortgage banking companies. The Bank's most direct competition for deposits comes from commercial banks, savings institutions and credit unions. Competition for deposits also comes from money market mutual funds, corporate and government securities funds, and financial intermediaries such as brokerage firms and insurance companies. Many of the Bank's competitors have substantially greater resources and offer a wider array of financial services and products.  This, combined with competitors' larger presence in the New York market, add to the challenges the Bank faces in expanding its current market share and growing its near-term profitability.

    Carver Federal's 74-year history in its market area, its community involvement and relationships, targeted products and services and personal service consistent with community banking, help the Bank compete with competitors in its market.

The Company's subsidiary, Carver Statutory Trust I, is not consolidated with Carver Bancorp Inc. for financial reporting purposes in accordance with the FASB's ASC Topic 810 regarding the consolidation of variable interest entities. Carver Statutory Trust I was formed in 2003 for the purpose of issuing $13 million aggregate liquidation amount of floating rate Capital Securities due September 17, 2033 (“Capital Securities”) and $0.4 million of common securities (which are the only voting securities of Carver Statutory Trust I), which are 100% owned by Carver Bancorp Inc., and using the proceeds to acquire junior subordinated debentures issued by Carver Bancorp, Inc. Carver Bancorp, Inc. has fully and unconditionally guaranteed the Capital Securities along with all obligations of Carver Statutory Trust I under the trust agreement relating to the Capital Securities. The Company does not consolidate the accounts and related activity of Carver Statutory Trust I because it is not the primary beneficiary of the entity. At June 30, 2023, the Company's maximum exposure to the Trust is $13.4 million, which is the Company's liability to the Trust and includes the Company's investment in the Trust.

Critical Accounting Estimates

    Note 2 to the Company’s audited Consolidated Financial Statements for the year ended March 31, 2023 included in its Form 10-K for the year ended March 31, 2023, as supplemented by this report, contains a summary of significant accounting policies. The Company believes its policies with respect to the methodologies used to determine the allowance for credit losses is the most critical accounting policy. This policy involves a high degree of complexity, requiring management to make difficult and subjective judgments, which often require assumptions or estimates about highly uncertain matters. Changes in these judgments, assumptions or estimates could result in material differences in the Company's results of operations or financial condition. The following description of these policies should be read in conjunction with the corresponding section of the Company’s Form 10-K for the year ended March 31, 2023.

32

Allowance for Credit Losses ("ACL")

    The ACL reflects management's evaluation of the loans presenting identified loss potential, as well as the risk inherent in various components of the portfolio.  There is significant judgment applied in estimating the ACL.  These assumptions and estimates are susceptible to significant changes based on the current environment. In a continued effort to combat inflation, the Federal Reserve approved an 11th interest rate hike in July 2023, raising the overnight borrowing rate 25 basis points to a target range of 5.25% to 5.5%, the highest it has been in 22 years. A rising rate environment can negatively impact the Company if the higher debt service costs on adjustable-rate loans lead to borrowers' inability to pay contractual obligations. Further, any change in the size of the loan portfolio or any of its components could necessitate an increase in the ACL even though there may not be a decline in credit quality or an increase in potential problem loans. As such, there can never be assurance that the ACL accurately reflects the actual loss potential inherent in a loan portfolio.

The ACL is a valuation account that is deducted from the loan portfolio's amortized cost basis to present the net amount expected to be collected on the loans. Loan losses are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Management continues its collection efforts on previously charged-off balances and applies recoveries as additions to the ACL. The measurement of expected credit losses is based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. The discounted cash flow ("DCF") methodology is used for substantially all pools, where the ACL reflects the difference between the amortized cost and the present value of the expected cash flows.

Expected credit losses are measured on a collective pool basis when similar risk characteristics exist. Loans with similar risk characteristics are grouped into homogeneous segments, or pools, for allowance calculation. The Company's loan portfolio segments as of June 30, 2023 were as follows:

•One-to-four Family - Carver Federal purchases first mortgage loans secured by one-to-four family properties that serve as the primary residence of the owner and non-qualified mortgages for one-to-four family residential loans. The loans are underwritten in accordance with applicable secondary market underwriting guidelines and requirements for sale. These loans present a moderate level of risk due primarily to general economic conditions.

•Multifamily - Carver Federal originates and purchases recourse and non-recourse multifamily loans. Multifamily property lending entails additional risks compared to one-to-four family lending. These loans are dependent on the successful operation of such buildings and can be significantly impacted by economic conditions, industry concentration, valuation of the underlying properties, lease terms, occupancy/vacancy rates, and changes in market demand for multifamily units. The Bank primarily considers the property's ability to generate net operating income sufficient to support the debt service, the financial resources, income level and managerial expertise of the borrower, the marketability of the property and the Bank's lending experience with the owner/guarantor.

•Commercial Real Estate ("CRE") - CRE lending consists predominantly of originating loans for the purpose of purchasing or refinancing office, mixed-use properties, retail and church buildings in the Bank's market area.  Mixed-use loans are secured by properties that are intended for both commercial and residential use, but predominantly commercial, and are classified as CRE. The Bank primarily considers the ability of the net operating income generated by the real estate to support the debt service, the financial resources, income level and managerial expertise of the borrower, the marketability of the property and the Bank's lending experience with the owner/guarantor. The Bank also requires the assignment of rents of all tenants' leases in the mortgaged property and personal guarantees may be obtained for additional security from these borrowers. CRE loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions and the complexities involved in valuing the underlying collateral.

•Business - Carver Federal originates and purchases business and SBA loans primarily to businesses located in its primary market area and surrounding areas. Business loans are typically personally guaranteed by the owners and may also be secured by additional collateral, including real estate, equipment and inventory. Business loans are subject to increased risk from the effect of general economic conditions. SBA loans are guaranteed by the U.S. government based on the percentage of each individual program.

•Consumer (including Overdraft accounts) - The Consumer portfolio includes student loans to medical students enrolled in several Caribbean schools, as well as unsecured consumer loans purchased from or originated through strategic partnerships with Bankers Healthcare Group, LLC and Upstart Holdings, Inc. Consumer loans are typically unsecured and more susceptible to declining economic conditions.

33

Because expected loss predictions may not adequately project the level of losses inherent in a portfolio, the Bank reviews a number of qualitative factors to determine if reserves should be adjusted based upon any of those factors.  As the risk ratings worsen, some of the qualitative factors tend to increase.  A number of qualitative factors are considered including economic forecast uncertainty, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, impact of rising rates, external factors and other considerations. Although the quantitative calculation includes a measurement of statistical economic conditions based on national averages, an additional analysis is performed at the qualitative level that applies specifically to the Company's geographic area and the banking industry that includes reasonable and supportable forecasts.

Stock Repurchase Program

    On August 6, 2002, the Company announced a stock repurchase program to repurchase up to 15,442 shares of its outstanding common stock. As of June 30, 2023, 11,744 shares of its common stock have been repurchased in open market transactions at an average price of $235.80 per share (as adjusted for 1-for-15 reverse stock split that occurred on October 27, 2011).

Liquidity and Capital Resources

    Liquidity is a measure of the Bank's ability to generate adequate cash to meet its financial obligations.  The principal cash requirements of a financial institution are to cover potential deposit outflows, fund increases in its loan and investment portfolios and ongoing operating expenses.  The Bank's primary sources of funds are deposits, borrowed funds and principal and interest payments on loans, mortgage-backed securities and investment securities.  While maturities and scheduled amortization of loans, mortgage-backed securities and investment securities are predictable sources of funds, deposit flows and loan and mortgage-backed securities prepayments are strongly influenced by changes in general interest rates, economic conditions and competition. Carver Federal monitors its liquidity utilizing guidelines that are contained in a policy developed by its management and approved by its Board of Directors.  Carver Federal's several liquidity measurements are evaluated on a frequent basis. 

    Management believes Carver Federal’s short-term assets have sufficient liquidity to cover loan demand, potential fluctuations in deposit accounts and to meet other anticipated cash requirements, including interest payments on our subordinated debt securities. Additionally, Carver Federal has other sources of liquidity including the ability to borrow from the Federal Home Loan Bank of New York (“FHLB-NY”) utilizing unpledged mortgage-backed securities and certain mortgage loans, the sale of available-for-sale securities and the sale of certain mortgage loans. Net borrowings remained flat at $51.1 million compared to March 31, 2023. The Bank secured a $7.5 million overnight advance from the FHLB-NY on June 30, 2023. At June 30, 2023, the Bank had $32.5 million outstanding advances from the FHLB-NY. At June 30, 2023, based on available collateral held at the FHLB-NY, Carver Federal had the ability to borrow an additional $8.1 million on a secured basis, utilizing mortgage-related loans and securities as collateral. The Bank has the ability to pledge additional loans as collateral in order to borrow up to 30% of its total assets. The Company also had $13.4 million in subordinated debt securities and $5.0 million in low interest loans outstanding as of June 30, 2023.

    The Bank's most liquid assets are cash and short-term investments.  The level of these assets is dependent on the Bank's operating, investing and financing activities during any given period. At June 30, 2023 and March 31, 2023, assets qualifying for short-term liquidity, including cash and cash equivalents, totaled $41.7 million and $42.6 million, respectively.

During fiscal year 2022, the Company entered into a sales agreement with an agent to sell, from time to time, our common stock having an aggregate offering price of up to $20.0 million, in an “at the market offering.” During fiscal year 2022, we sold an aggregate of 397,367 shares of our common stock pursuant to the terms of such sales agreement, for aggregate gross proceeds of approximately $3.1 million. Aggregate net proceeds received were approximately $3.0 million, after deducting expenses and commissions paid to the agent. There were no additional offerings during fiscal year 2023 and the three months ended June 30, 2023.

    The most significant potential liquidity challenge the Bank faces is variability in its cash flows as a result of mortgage refinance activity. When mortgage interest rates decline, customers’ refinance activities tend to accelerate, causing the cash flow from both the mortgage loan portfolio and the mortgage-backed securities portfolio to accelerate. In contrast, when mortgage interest rates increase, refinance activities tend to slow, causing a reduction of liquidity. However, in a rising rate environment, customers generally tend to prefer fixed-rate mortgage loan products over variable rate products. Carver Federal is also at risk of deposit outflows due to a competitive interest rate environment.

34

    The Consolidated Statements of Cash Flows present the change in cash from operating, investing and financing activities. During the three months ended June 30, 2023, total cash and cash equivalents decreased $0.9 million to $41.7 million at June 30, 2023, compared to $42.6 million at March 31, 2023, reflecting $1.7 million and $7.3 million cash used in operating and financing activities, respectively, partially offset by cash provided by investing activities of $8.1 million. Net cash provided by investing activities of $8.1 million was attributable to investment paydowns and loan repayments and payoffs, net of originations and purchases. Net cash used in financing activities of $7.3 million resulted from a net decrease in deposits of $7.3 million.

    Capital adequacy is one of the most important factors used to determine the safety and soundness of individual banks and the banking system. In common with all U.S. banks, Carver Federal’s capital adequacy is measured in accordance with the Basel III regulatory framework governing capital adequacy, stress testing, and market liquidity risk. Carver Federal, as a result of the Formal Agreement, was issued an Individual Minimum Capital Ratio (“IMCR”) letter by the OCC, which requires the Bank to maintain minimum regulatory capital levels of 9% for its Tier1 leverage ratio and 12% for its total risk-based capital ratio. The Formal Agreement was terminated on January 18, 2023. The IMCR remains in effect.

    In accordance with the Economic Growth, Regulatory Relief, and Consumer Protection Act, the federal banking agencies have adopted, effective January 1, 2020, a final rule whereby financial institutions and financial institution holding companies that have less than $10 billion in total consolidated assets and meet other qualifying criteria, including a leverage ratio of greater than 9%, will be eligible to opt into a “Community Bank Leverage Ratio” framework.  Qualifying community banking organizations that elect to use the community bank leverage ratio framework and that maintain a leverage ratio of greater than 9% will be considered to have satisfied the generally applicable risk-based and leverage capital requirements in the agencies’ capital rules and will be considered to have met the “well capitalized” ratio requirements under the Prompt Corrective Action statutes.  The agencies reserved the authority to disallow the use of the Community Bank Leverage Ratio by a financial institution or holding company based on the risk profile of the organization.

    The table below presents the capital position of the Bank at June 30, 2023:

	June 30, 2023
($ in thousands)	Amount		Ratio
Tier 1 leverage capital
Regulatory capital	$	72,733	10.08	%
Individual minimum capital requirement	64,972		9.00	%
Minimum capital requirement	28,877		4.00	%
Excess over individual minimum capital requirement	7,761		1.08	%
Common equity Tier 1
Regulatory capital	$	72,733	12.35	%
Minimum capital requirement	41,236		7.00	%
Excess	31,497		5.35	%
Tier 1 risk-based capital
Regulatory capital	$	72,733	12.35	%
Minimum capital requirement	50,073		8.50	%
Excess	22,660		3.85	%
Total risk-based capital
Regulatory capital	$	78,700	13.36	%
Individual minimum capital requirement	70,691		12.00	%
Minimum capital requirement	61,855		10.50	%
Excess over individual minimum capital requirement	8,009		1.36	%

Bank Regulatory Matters

35

On May 24, 2016, the Bank entered into a Formal Agreement ("the Agreement") with the OCC to undertake certain compliance-related and other actions. As a result of the Agreement, Carver was issued an IMCR letter by the OCC, which requires the Bank to maintain minimum regulatory capital levels of 9% for its Tier1 leverage ratio and 12% for its total risk-based capital ratio. The Bank was released from the Agreement on January 18, 2023. The IMCR remains in effect. At June 30, 2023, the Bank's capital level exceeded the regulatory requirements and its IMCR requirements with a Tier 1 leverage capital ratio of 10.08%, Common Equity Tier 1 capital ratio of 12.35%, Tier 1 risk-based capital ratio of 12.35%, and a total risk-based capital ratio of 13.36%.

The Company continues to be subject to similar requirements that the Bank was subject to under the Agreement. The Company must provide notice to the FRB prior to affecting any change in its directors or senior executive officers. The Company is also subject to the restrictions on golden parachute and indemnification payments, as set forth in 12 C.F.R. Part 359. Written approval of the Federal Reserve Bank is required prior to: (1) the declaration or payment of dividends by the Company to its stockholders, (2) the declaration or payment of dividends by the Bank to the Company, (3) any distributions of interest or principal by the Company on subordinated debentures or trust preferred securities, (4) any purchases or redemptions of the Company’s stock and (5) the Company incurring, increasing or guaranteeing certain long-term debt outside the ordinary course of business. These limitations could affect our operations and financial performance.

Mortgage Representation and Warranty Liabilities

    During the period 2004 through 2009, the Bank originated 1-4 family residential mortgage loans and sold the loans to the Federal National Mortgage Association (“FNMA”). The loans were sold to FNMA with the standard representations and warranties for loans sold to the Government Sponsored Entities ("GSEs").  The Bank may be required to repurchase these loans in the event of breaches of these representations and warranties. In the event of a repurchase, the Bank is typically required to pay the unpaid principal balance as well as outstanding interest and fees. The Bank then recovers the loan or, if the loan has been foreclosed, the underlying collateral. The Bank is exposed to any losses on repurchased loans after giving effect to any recoveries on the collateral. The Bank has not received a request to repurchase any of these loans since the second quarter of fiscal 2015, and there have not been any additional requests from FNMA for loans to be reviewed. At June 30, 2023, the Bank continues to service 77 loans with a principal balance of $11.9 million for FNMA that had been sold with standard representations and warranties.

The following table presents information on open requests from FNMA. The amounts presented are based on outstanding loan principal balances.

$ in thousands	Loans sold to FNMA
Open claims as of March 31, 2023 (1)	$	1,385
Gross new demands received	—
Loans repurchased/made whole	—
Demands rescinded	—
Advances on open claims	—
Principal payments received on open claims	(4)
Open claims as of June 30, 2023 (1)	$	1,381

(1) The open claims include all open requests received by the Bank where either FNMA has requested loan files for review, where FNMA has not formally rescinded the repurchase request or where the Bank has not agreed to repurchase the loan. The amounts reflected in this table are the unpaid principal balance and do not incorporate any losses the Bank would incur upon the repurchase of these loans.

    Management has established a representation and warranty reserve for losses associated with the repurchase of mortgage loans sold by the Bank to FNMA that we consider to be both probable and reasonably estimable. These reserves are reported in the consolidated statement of financial condition as a component of other liabilities. The table below summarizes changes in our representation and warranty reserves during the three months ended June 30, 2023:

$ in thousands	June 30, 2023
Representation and warranty repurchase reserve, March 31, 2023 (1)	$	95
Net adjustment to reserve for repurchase losses (2)	4
Representation and warranty repurchase reserve, June 30, 2023 (1)	$	99

(1) Reported in our consolidated statements of financial condition as a component of other liabilities.

(2) Component of other non-interest expense.

36

Comparison of Financial Condition at June 30, 2023 and March 31, 2023

Assets

    At June 30, 2023, total assets were $711.7 million, reflecting a decrease of $11.5 million, or 1.6%, from total assets of $723.2 million at March 31, 2023. The decrease was primarily attributable to decreases of $8.0 million in the Bank's net loan portfolio, $1.8 million in the Bank's investment portfolio and $0.9 million in cash and cash equivalents.

    Total cash and cash equivalents decreased $0.9 million, or 2.1%, from $42.6 million at March 31, 2023 to $41.7 million at June 30, 2023. The decrease in cash was primarily due to a decrease in deposits, partially offset by net loan activity and paydowns received on investment securities.

    Total investment securities decreased $1.8 million, or 3.2%, to $54.4 million at June 30, 2023, compared to $56.2 million at March 31, 2023 due to scheduled principal payments received of approximately $0.9 million and a $0.8 million increase in unrealized losses in the available-for-sale portfolio.

    Gross portfolio loans decreased $7.4 million, or 1.2%, to $590.5 million at June 30, 2023, compared to $597.9 million at March 31, 2023 due to new loan originations of $6.1 million and loan pool purchases of $3.1 million. These were partially offset by attrition and payoffs of $16.4 million. The high level of payoffs was primarily due to commercial real estate borrowers who perceived the rising rate environment, coupled with high inflation, as the right time to exit contractual debt.

Liabilities and Equity

    Total liabilities decreased $8.9 million, or 1.3%, to $669.1 million at June 30, 2023, compared to $678.0 million at March 31, 2023, primarily due to decreases in total deposits and other liabilities.

    Deposits decreased $7.2 million, or 1.2%, to $593.2 million at June 30, 2023, compared to $600.4 million at March 31, 2023. The decline was primarily related to decreases in money market and non-interest checking accounts, partially offset by increases in higher-cost certificate of deposit accounts.

    Advances from the FHLB-NY and other borrowed money remained unchanged from March 31, 2023 at $51.1 million. The Bank secured a $7.5 million overnight advance from the FHLB-NY on June 30, 2023. At June 30, 2023, the Bank had $32.5 million outstanding advances from the FHLB-NY.

    Total equity decreased $2.7 million, or 6.0%, to $42.5 million at June 30, 2023, compared to $45.2 million at March 31, 2023. The decrease was due to a net loss of $1.4 million, coupled with an increase of $0.8 million in unrealized losses on securities available-for-sale for the three month period ended June 30, 2023. In addition, the Bank recorded a $0.7 million decrease to retained earnings to reflect the cumulative effect adjustment related to the adoption of CECL (Topic 326), effective April 1, 2023.

Asset/Liability Management

    The Company's primary earnings source is net interest income, which is affected by changes in the level of interest rates, the relationship between the rates on interest-earning assets and interest-bearing liabilities, the impact of interest rate fluctuations on asset prepayments, the level and composition of deposits and assets, and the credit quality of earning assets.  Management's asset/liability objectives are to maintain a strong, stable net interest margin, to utilize the Company's capital effectively without taking undue risks, to maintain adequate liquidity and to manage its exposure to changes in interest rates.

    The economic environment is uncertain regarding long-term interest rate trends.  Management monitors the Company's cumulative gap position, which is the difference between the sensitivity to rate changes on the Company's interest-earning assets and interest-bearing liabilities.  In addition, the Company uses various tools to monitor and manage interest rate risk, such as a model that projects net interest income based on increasing or decreasing interest rates.

Off-Balance Sheet Arrangements

    The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and in connection with its overall investment strategy. These instruments involve, to varying degrees, elements of credit, interest rate and liquidity risk. In accordance with GAAP, these instruments are not

37

recorded in the consolidated financial statements. Such instruments primarily include lending obligations, including commitments to originate mortgage and consumer loans and to fund unused lines of credit. At June 30, 2023, the Company had $6.1 million in outstanding commitments to extend credit and standby letters of credit. Such financial instruments are recorded in the consolidated statements of condition when they are funded. The Company records an allowance for credit losses on off-balance sheet credit exposures, unless such commitments are unconditionally cancellable, through the provision for credit losses expense. The allowance for credit losses on off-balance sheet credit exposures as of June 30, 2023 was $10 thousand and is included in Other Liabilities in the consolidated statements of financial condition.

Comparison of Operating Results for the Three Months Ended June 30, 2023 and 2022

Overview

    The Company reported net loss of $1.4 million for the three months ended June 30, 2023, compared to a net loss of $0.9 million for the comparable prior year quarter. The change in our results was primarily driven by a decrease in net interest income and an increase in non-interest expense, partially offset by an increase in non-interest income compared to the prior year quarter.

    The following table reflects selected operating ratios for the three months ended June 30, 2023 and 2022 (unaudited):

	Three Months Ended June 30,
Selected Financial Data:	2023			2022
Return on average assets (1)	(0.79)	%		(0.49)	%
Return on average stockholders' equity (2)	(12.75)	%		(6.44)	%
Return on average stockholders' equity, excluding AOCI (2) (8)	(10.00)	%		(5.52)	%
Net interest margin (3)	3.14	%		3.46	%
Interest rate spread (4)	2.75	%		3.36	%
Efficiency ratio (5)	122.61	%		113.55	%
Operating expenses to average assets (6)	4.26	%		4.25	%
Average stockholders' equity to average assets (7)	6.18	%		7.64	%
Average stockholders' equity, excluding AOCI, to average assets (7) (8)	7.88	%		8.91	%
Average interest-earning assets to average interest-bearing liabilities	1.29		x	1.32		x
(1) Net income (loss), annualized, divided by average total assets.
(2) Net income (loss), annualized, divided by average total stockholders' equity.
(3) Net interest income, annualized, divided by average interest-earning assets.
(4) Combined weighted average interest rate earned less combined weighted average interest rate cost.
(5) Operating expense divided by sum of net interest income and non-interest income.
(6) Non-interest expense, annualized, divided by average total assets.
(7) Total average stockholders' equity divided by total average assets for the period.
(8) See Non-GAAP Financial Measures disclosure for comparable GAAP measures.

Non-GAAP Financial Measures

    In addition to evaluating the Company's results of operations in accordance with U.S. generally accepted accounting principles (“GAAP”), management routinely supplements their evaluation with an analysis of certain non-GAAP financial measures, such as the return on average stockholders' equity excluding average accumulated other comprehensive income (loss) ("AOCI"), and average stockholders' equity excluding AOCI to average assets. Management believes these non-GAAP financial measures provide information that is useful to investors in understanding the Company's underlying operating performance and trends, and facilitates comparisons with the performance of other banks and thrifts.

    Return on average stockholders' equity, excluding AOCI measures how efficiently we generate profits from the resources provided by our net assets. Return on average stockholders' equity, excluding AOCI is calculated by dividing annualized net income (loss) attributable to Carver by average stockholders' equity, excluding AOCI. Management believes that this performance measure and average stockholders' equity, excluding AOCI to average assets explains the results of the Company's ongoing businesses in a manner that allows for a better understanding of the underlying trends in the Company's current businesses. For purposes of the Company's presentation, AOCI includes the changes in the market or fair value of its

38

investment portfolio. These fluctuations have been excluded due to the unpredictable nature of this item and is not necessarily indicative of current operating or future performance.

	Three Months Ended June 30,
$ in thousands	2023			2022
Average Stockholders' Equity
Average Stockholders' Equity	$	44,583		$	53,222
Average AOCI	(12,235)			(8,839)
Average Stockholders' Equity, excluding AOCI	$	56,818		$	62,061
Return on Average Stockholders' Equity	(12.75)		%	(6.44)		%
Return on Average Stockholders' Equity, excluding AOCI	(10.00)		%	(5.52)		%
Average Stockholders' Equity to Average Assets	6.18		%	7.64		%
Average Stockholders' Equity, excluding AOCI, to Average Assets	7.88		%	8.91		%

Analysis of Net Interest Income

    The Company’s profitability is primarily dependent upon net interest income and is also affected by the provision for credit losses, non-interest income, non-interest expense and income taxes. Net interest income represents the difference between income on interest-earning assets and expense on interest-bearing liabilities. Net interest income depends primarily upon the volume of interest-earning assets and interest-bearing liabilities and the corresponding interest rates earned and paid. The Company’s net interest income is significantly impacted by changes in interest rate and market yield curves. Net interest income decreased $0.3 million, or 5.2%, to $5.5 million for the three months ended June 30, 2023, compared to $5.8 million for the same quarter last year.

    The following table sets forth certain information relating to the Company’s average interest-earning assets and average interest-bearing liabilities, and their related average yields and costs for the three months ended June 30, 2023 and 2022. Average yields are derived by dividing annualized income or expense by the average balances of assets or liabilities, respectively, for the periods shown. Average balances are derived from daily or month-end balances as available and applicable. Management does not believe that the use of average monthly balances instead of average daily balances represents a material difference in information presented. The average balance of loans includes loans on which the Company has discontinued accruing interest. The yield includes fees, which are considered adjustment to yield.

39

	For the Three Months Ended June 30,
	2023						2022
$ in thousands	Average Balance		Interest		Average Yield/Cost		Average Balance		Interest		Average Yield/Cost
Interest-Earning Assets:
Loans(1)	$	595,680	$	6,811	4.57	%	$	566,904	$	5,977	4.22	%
Mortgage-backed securities	29,300		149		2.03	%	36,749		159		1.73	%
Investment securities(2)	34,379		301		3.50	%	35,931		165		1.84	%
Money market investments	42,042		533		5.09	%	32,300		72		0.89	%
Total interest-earning assets	701,401		7,794		4.44	%	671,884		6,373		3.80	%
Non-interest-earning assets	19,768						24,983
Total assets	$	721,169					$	696,867
Interest-Bearing Liabilities:
Deposits
Interest-bearing checking	$	50,875	$	9	0.07	%	$	58,291	$	8	0.06	%
Savings and clubs	111,654		45		0.16	%	114,279		31		0.11	%
Money market	153,581		488		1.27	%	184,750		129		0.28	%
Certificates of deposit	182,193		1,170		2.58	%	130,910		246		0.75	%
Mortgagors deposits	3,589		2		0.22	%	3,545		(3)		(0.34)	%
Total deposits	501,892		1,714		1.37	%	491,775		411		0.34	%
Borrowed money	43,141		578		5.37	%	16,716		148		3.55	%
Total interest-bearing liabilities	545,033		2,292		1.69	%	508,491		559		0.44	%
Non-interest-bearing liabilities
Demand deposits	105,835						106,622
Other liabilities	25,718						28,532
Total liabilities	676,586						643,645
Stockholders' equity	44,583						53,222
Total liabilities and equity	$	721,169					$	696,867
Net interest income			$	5,502					$	5,814
Average interest rate spread					2.75	%					3.36	%
Net interest margin					3.14	%					3.46	%
(1) Includes nonaccrual loans
(2) Includes FHLB-NY stock

Interest Income

    Interest income increased $1.4 million, or 21.9%, to $7.8 million for the three months ended June 30, 2023, compared to $6.4 million for the prior year quarter. Interest income on loans increased $0.8 million, or 13.3%, for the three months ended June 30, 2023, \primarily due to a $28.8 million, or 5.1%, increase in average loan balances coupled with an increase in the average yield on the portfolio of 35 basis points. Interest income on money market investments increased $0.4 million for the three months ended June 30, 2023, due to an increase in interest rates on the Bank's interest-bearing account at the Federal Reserve Bank. Interest income on investment securities was also higher, despite a decrease in average balances, due to an increase in yields compared to the prior year period.

Interest Expense

    Interest expense increased $1.7 million to $2.3 million for the three months ended June 30, 2023, compared to $0.6 million for the prior year quarter. The higher interest rate environment is reflected in the average cost of interest-bearing deposits and borrowing costs for the comparative period. Interest expense on deposits increased $1.3 million for the three months ended June 30, 2023, primarily due to an increase in the average balance of higher-cost certificate of deposits and an increase in the average rates paid on money market and certificate of deposit accounts. Interest expense on borrowings

40

increased $0.5 million for the three months ended June 30, 2023, due to an increase in the average balances and borrowing rates.

Provision for Credit Losses and Asset Quality

    The Bank maintains an ACL that management believes is adequate to absorb inherent and probable losses in its loan portfolio. The adequacy of the ACL is determined by management’s continuous review of the Bank’s loan portfolio, including the identification and review of individual problem situations that may affect a borrower’s ability to repay. The ACL reflects management’s estimate of lifetime credit losses inherent in the loan portfolio. Any change in the size of the loan portfolio or any of its components could necessitate an increase in the ACL even though there may not be a decline in credit quality or an increase in potential problem loans. Loans made under the PPP are fully guaranteed by the SBA; therefore, these loans do not have an associated allowance.

The following table summarizes the activity in the ACL for the three months ended June 30, 2023 and 2022 and the fiscal year ended March 31, 2023:

41

$ in thousands	Three Months Ended June 30, 2023			Fiscal Year Ended March 31, 2023			Three Months Ended June 30, 2022
Beginning Balance	$	5,229		$	5,624		$	5,624
Impact of CECL adoption	668
Less: Charge-offs
One-to-four family	—			—			—
Multifamily	—			—			—
Commercial real estate	—			(586)			—
Business	—			—			—
Consumer	(95)			(141)			(13)
Unallocated	—			—			—
Total charge-offs	(95)			(727)			(13)
Add: Recoveries
One-to-four family	—			90			—
Multifamily	—			—			—
Commercial real estate	—			10			—
Business	49			127			19
Consumer	1			5			1
Total recoveries	50			232			20
Net recoveries (charge-offs)	(45)			(495)			7
Provision for (recovery of) credit losses
One-to-four family	127			(105)			(82)
Multifamily	(4)			(5)			(61)
Commercial real estate	(53)			1,233			(49)
Business	(289)			(1,485)			(195)
Consumer	225			462			2
Unallocated	—			—			358
Provision for (recovery of) credit losses	6			100			(27)
Ending Balance	$	5,858		$	5,229		$	5,604
Ratios:
Net recoveries (charge-offs) to average loans outstanding (annualized)
One-to-four family	—		%	0.13		%	—		%
Multifamily	—		%	—		%	—		%
Commercial real estate	—		%	(0.33)		%	—		%
Business	0.12		%	0.08		%	0.05		%
Consumer	(4.21)		%	(5.60)		%	(3.04)		%
Total loans	(0.02)		%	(0.09)		%	—		%
Allowance to total loans	0.99		%	0.87		%	1.01		%
Allowance to nonaccrual loans	37.55		%	42.65		%	46.26		%

    The Company recorded a $6 thousand provision for credit losses for the three months ended June 30, 2023, compared to a $27 thousand recovery of loan loss for the prior year quarter. Net chargeoffs of $45 thousand were recognized during the first quarter, compared to net recoveries of $7 thousand for the prior year quarter.

At June 30, 2023, nonaccrual loans totaled $15.6 million, or 2.2% of total assets, compared to $12.3 million, or 1.7% of total assets at March 31, 2023. The ACL was $5.9 million at June 30, 2023, which represents a ratio of the ACL to nonaccrual loans of 37.6% compared to a ratio of 42.6% at March 31, 2023. The ratio of the ACL to total loans was 0.99% at June 30, 2023, compared to 0.87% at March 31, 2023.

Non-performing Assets

    Non-performing assets consist of nonaccrual loans, loans held-for-sale and property acquired in settlement of loans, which is known as other real estate owned (OREO), including foreclosure. When a borrower fails to make a payment on a loan, the Bank and/or its loan servicers take prompt steps to have the delinquency cured and the loan restored to current status. This

42

includes a series of actions such as phone calls, letters, customer visits and, if necessary, legal action. In the event the loan has a guarantee, the Bank may seek to recover on the guarantee, including, where applicable, from the SBA. Loans that remain delinquent are reviewed for reserve provisions and charge-off. The Bank’s collection efforts continue after the loan is charged off, except when a determination is made that collection efforts have been exhausted or are not productive.

    The Bank may from time to time agree to modify the contractual terms of a borrower’s loan. In cases where such modifications represent a concession to a borrower experiencing financial difficulty, the loan is placed on nonaccrual status until the Bank 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. At June 30, 2023, modified loans to a borrower experiencing financial difficulty totaled $7.5 million, of which $5.9 million were classified as performing.

    At June 30, 2023, non-performing assets totaled $15.7 million, or 2.2% of total assets compared to $12.3 million, or 1.7% of total assets at March 31, 2023. The following table sets forth information with respect to the Bank’s non-performing assets at the dates indicated:

	Non Performing Assets
$ in thousands	June 30, 2023			March 31, 2023			December 31, 2022			September 30, 2022			June 30, 2022
Loans accounted for on a nonaccrual basis (1):
Gross loans receivable:
One-to-four family	$	4,154		$	4,001		$	4,066		$	4,371		$	4,600
Multifamily	824			71			71			—			109
Commercial real estate	4,522			7,190			7,275			9,455			6,170
Business	6,098			998			973			1,179			1,234
Consumer	1			1			—			87			—
Total nonaccrual loans	15,599			12,261			12,385			15,092			12,113
Other non-performing assets (2):
Real estate owned	60			60			60			60			60
Total non-performing assets (3)	$	15,659		$	12,321		$	12,445		$	15,152		$	12,173
Nonaccrual loans to total loans	2.64		%	2.05		%	2.11		%	2.63		%	2.18		%
Non-performing loans to total loans	2.64		%	2.05		%	2.11		%	2.63		%	2.18		%
Non-performing assets to total assets	2.20		%	1.70		%	1.75		%	2.01		%	1.76		%
Allowance to total loans	0.99		%	0.87		%	0.88		%	0.96		%	1.01		%
Allowance to nonaccrual loans	37.55		%	42.65		%	41.61		%	36.50		%	46.26		%
(1) Nonaccrual status denotes any loan where the delinquency exceeds 90 days past due, or in the opinion of management, the collection of contractual interest and/or principal is doubtful. Payments received on a nonaccrual loan are either applied to the outstanding principal balance or recorded as interest income, depending on assessment of the ability to collect on the loan.
(2) Other non-performing assets generally represent loans that the Bank is in the process of selling and has designated held-for-sale or property acquired by the Bank in settlement of loans less costs to sell (i.e., through foreclosure, repossession or as an in-substance foreclosure). These assets are recorded at the lower of their cost or fair value.
(3) Modified loans to borrowers experiencing financial difficulty that are performing in accordance with their modified terms for less than six months and those not performing in accordance with their modified terms are considered nonaccrual and are included in the nonaccrual category in the table above. At June 30, 2023, there were $5.9 million of these modified loans that have performed in accordance with their modified terms for a period of at least six months. These loans are generally considered performing loans and are not presented in the table above.

Subprime Loans

    In the past, the Bank originated or purchased a limited amount of subprime loans (which are defined by the Bank as those loans where the borrowers have FICO scores of 660 or less at origination). At June 30, 2023, the Bank had $2.8 million in subprime loans, or 0.5% of its total loan portfolio, of which $0.7 million are non-performing loans.

Non-Interest Income

    Non-interest income increased $0.1 million, or 14.3%, to $0.8 million for the three months ended June 30, 2023, compared to $0.7 million for the prior year quarter. The slight increase in non-interest income was primarily due to other non-

43

interest income, which includes BOLI income and revenue from the Bank's participation in JPMorgan Chase's Empowering Change program.

Non-Interest Expense

    Non-interest expense increased $0.3 million, or 4.1%, to $7.7 million for the three months ended June 30, 2023, compared to $7.4 million for the prior year quarter. Employee compensation and benefits increased compared to the prior year period due to the Company's transition to a new payroll and benefits administrator, and new permanent staff hired to replace temporary consultants. Data processing expense was also higher due to upgraded cybersecurity systems and improvements to the Bank's remote work environment.

Item 3.Quantitative and Qualitative Disclosure about Market Risk

    Not applicable, as the Company is a smaller reporting company.

Item 4.Controls and Procedures

(a) Evaluation of Disclosure Controls and Procedures

The Company maintains controls and procedures designed to ensure that information required to be disclosed in the reports that the Company files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the rules and forms of the Securities and Exchange Commission. As of June 30, 2023, the Company’s management, including the Company's Chief Executive Officer (Principal Executive Officer) and Chief Financial Officer (Principal Financial and Accounting Officer), has evaluated the effectiveness of the Company’s disclosure controls and procedures as defined in Rules 13a-15(e) and 15d-15(e) under the Exchange Act, as amended. In designing and evaluating the disclosure controls and procedures, management recognizes that any controls and procedures, no matter how well designed and operated, can provide only reasonable assurance of achieving the desired control objectives. In addition, the design of disclosure controls and procedures must necessarily reflect the fact that there are resource constraints and that management is required to apply its judgment in evaluating the benefits of possible controls and procedures relative to their costs.

Based on the foregoing evaluation, our Chief Executive Officer and Chief Financial Officer concluded that our disclosure controls and procedures were effective as of June 30, 2023.

(b) Changes in Internal Control over Financial Reporting

    There have not been any changes in the Company’s internal control over financial reporting during the fiscal quarter to which this report relates, that have materially affected, or are reasonably likely to materially affect, the Company’s internal control over financial reporting.

44

PART II. OTHER INFORMATION

Item 1.Legal Proceedings

    From time to time, the Company and the Bank or one of its wholly-owned subsidiaries are parties to various legal proceedings incident to their business. At June 30, 2023, certain claims, suits, complaints and investigations (collectively “proceedings”) involving the Company and the Bank or a subsidiary, arising in the ordinary course of business, have been filed or are pending.  The Company is unable at this time to determine the ultimate outcome of each proceeding, but believes, after discussions with legal counsel representing the Company and the Bank or the subsidiary in these proceedings, that it has meritorious defenses to each proceeding and appropriate measures have been taken to defend the interests of the Company, Bank or subsidiary. There were no legal proceedings pending or known to be contemplated against us that in the opinion of management, would be expected to have a material adverse effect on the financial condition or results of operations of the Company or the Bank.

Item 1A.Risk Factors

    In addition to the other information set forth in this report, you should carefully consider the factors discussed in Part I, "Item 1A - Risk Factors" in our most recent Annual Report on Form 10-K, which could materially affect the Company's business, financial condition, or future operating results. The risks described in this form are not the only risks presently facing the Company. Additional risks and uncertainties not currently known to the Company, or currently deemed to be immaterial, also may materially adversely affect the Company's business, financial condition, and/or operating results. There were no material changes in risk factors in the Company's first quarter ended June 30, 2023.

Item 2.Unregistered Sales of Equity Securities, Use of Proceeds and Issuer Purchases of Equity Securities

    Not applicable.

Item 3.Defaults Upon Senior Securities

    None.

Item 4.Mine Safety Disclosures

    Not applicable.

Item 5.Other Information

    None.

45

Item 6.Exhibits

    The following exhibits are submitted with this report:

3.1	Certificate of Incorporation of Carver Bancorp, Inc. (1)
3.2	Certificate of Amendment to the Certificate of Incorporation of Carver Bancorp, Inc. (2)
3.3	Second Amended and Restated Bylaws of Carver Bancorp, Inc. (3)
4.1	Stock Certificate of Carver Bancorp, Inc. (1)
4.2	Certificate of Designation for Mandatorily Convertible Non-Voting Participating Preferred Stock Series C and Convertible Non-Cumulative Non-Voting Participating Preferred Stock, Series D of Carver Bancorp, Inc. (4)
4.3	Certificate of Amendment to the Certificate of Incorporation of Carver Bancorp, Inc.(5)
4.4	Certificate of Designations of Non-Cumulative Non-Voting Participating Preferred Stock, Series E, par value $0.01 per share (6)
4.5	Certificate of Amendment of Certificate of Designations of Non-Cumulative Non-Voting Participating Preferred Stock, Series E, par value $0.01 per share (7)
4.6	Amended and Restated Certificate of Designations of Non-Cumulative Non-Voting Participating Preferred Stock, Series F, par value $0.01 per share (8)
31.1	Certification of Chief Executive Officer pursuant to Rule 13a-14(a)/15d-14(a)
31.2	Certification of Chief Financial Officer pursuant to Rule 13a-14(a)/15d-14(a)
32.1	Certification of Chief Executive Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350
32.2	Certification of Chief Financial Officer furnished pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, 18 U.S.C. 1350
101	The following materials from the Company’s Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, formatted in XBRL (Extensive Business Reporting Language): (i) Consolidated Statements of Financial Condition as of June 30, 2023 (unaudited) and March 31, 2023; (ii) Consolidated Statements of Operations for the three months ended June 30, 2023 and 2022 (unaudited); (iii) Consolidated Statements of Comprehensive Income/(Loss) for the three months ended June 30, 2023 and 2022 (unaudited); (iv) Consolidated Statements of Changes in Equity for the three months ended June 30, 2023 and 2022 (unaudited); (v) Consolidated Statements of Cash Flows for the three months ended June 30, 2023 and 2022 (unaudited); and (vi) Notes to Consolidated Financial Statements.
104	The cover page from the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023, formatted in Inline XBRL.
(1)	Incorporated herein by reference from the Exhibits to the Form S-4, Registration Statement and amendments thereto, initially filed on June 7, 1996, Registration No. 333-5559.
(2)	Incorporated herein by reference from the Exhibits to the Company’s Current Report on Form 8-K filed with the Securities and Exchange Commission on November 1, 2011.
(3)	Incorporated herein by reference from the Exhibits to the Company’s Annual Report on Form 10-K for the fiscal year ended March 31, 2006.
(4)	Incorporated herein by reference to Exhibit 3.1 to the Registrant's Report on Form 8-K filed with the Securities and Exchange Commission filed on July 6, 2011.
(5)	Incorporated herein by reference to Exhibit 3.1 to the Registrant's Report on Form 8-K filed with the Securities and Exchange Commission filed on November 1, 2011.
(6)	Incorporated herein by reference to Exhibit 3.1 to the Registrant's Report on Form 8-K filed with the Securities and Exchange Commission filed on February 1, 2021.
(7)	Incorporated herein by reference to Exhibit 3.2 to the Registrant's Report on Form 8-K filed with the Securities and Exchange Commission filed on February 1, 2021.
(8)	Incorporated herein by reference to Exhibit 3.1 to the Registrant's Report on Form 8-K filed with the Securities and Exchange Commission filed on September 30, 2021.

46

SIGNATURES

    Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized.

		CARVER BANCORP, INC.
Date:	August 14, 2023	/s/ Michael T. Pugh
		Michael T. Pugh
		President and Chief Executive Officer
		(Principal Executive Officer)

Date:	August 14, 2023	/s/ Christina L. Maier
		Christina L. Maier
		First Senior Vice President and Chief Financial Officer
		(Principal Accounting Officer and Principal Financial Officer)

47

EX-31.1

Exhibit 31.1

CERTIFICATIONS

I, Michael T. Pugh, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Carver Bancorp, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 14, 2023	/s/ Michael T. Pugh
		Michael T. Pugh
		President and Chief Executive Officer

EX-31.2

Exhibit 31.2

CERTIFICATIONS

I, Christina L. Maier, certify that:

1.I have reviewed this Quarterly Report on Form 10-Q of Carver Bancorp, Inc.;

2.Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.The registrant's other certifying officers and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal controls over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a.Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b.Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c.Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d.Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and

5.The registrant's other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions):

a.All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and

b.Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting.

Date:	August 14, 2023	/s/ Christina L. Maier
		Christina L. Maier
		First Senior Vice President and Chief Financial Officer
		Principal Accounting Officer and Principal Financial Officer

EX-32.1

Exhibit 32.1

CERTIFICATION FURNISHED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002, 18 U.S.C SECTION 1350

The undersigned, Michael T. Pugh, is the President and Chief Executive Officer of Carver Bancorp, Inc. (the “Company”).

This certification is being furnished in connection with the filing by the Company of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (the “Report”).

I certify that:

a)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

b)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report.

Date:	August 14, 2023	/s/ Michael T. Pugh
		Michael T. Pugh
		President and Chief Executive Officer

EX-32.2

Exhibit 32.2

CERTIFICATION FURNISHED PURSUANT TO SECTION 906 OF THE

SARBANES-OXLEY ACT OF 2002, 18 U.S.C SECTION 1350

The undersigned, Christina L. Maier, is the First Senior Vice President and Chief Financial Officer of Carver Bancorp, Inc. (the “Company”).

This certification is being furnished in connection with the filing by the Company of the Company's Quarterly Report on Form 10-Q for the quarter ended June 30, 2023 (the “Report”).

By execution of this statement, I certify that:

a)the Report fully complies with the requirements of Section 13(a) or 15(d) of the Securities Exchange Act of 1934 (15 U.S.C. 78m(a) or 78o(d)); and

b)the information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company as of the dates and for the periods covered by the Report.

Date:	August 14, 2023	/s/ Christina L. Maier
		Christina L. Maier
		First Senior Vice President and Chief Financial Officer

XML

Document and Entity Information Document	3 Months Ended
	Jun. 30, 2023
Document and Entity Information [Abstract]
Entity Central Index Key	0001016178
Current Fiscal Year End Date	--03-31
Document Period End Date	Jun. 30, 2023
Document Fiscal Year Focus	2024
Document Fiscal Period Focus	Q1
Amendment Flag	false

XML

Cover Page - shares	3 Months Ended
	Jun. 30, 2023	Aug. 11, 2023
Document and Entity Information [Abstract]
Document Type	10-Q
Document Quarterly Report	true
Document Transition Report	false
Entity File Number	001-13007
Entity Registrant Name	CARVER BANCORP, INC.
Entity Incorporation, State or Country Code	DE
Entity Address, Address Line One	75 West 125th Street
Entity Address, City or Town	New York
Entity Address, State or Province	NY
Entity Tax Identification Number	13-3904174
Entity Address, Postal Zip Code	10027
City Area Code	(718)
Local Phone Number	230-2900
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Non-accelerated Filer
Entity Smaller Reporting Company	true
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		4,825,910

XML

Consolidated Statements of Financial Condition - USD ($) $ in Thousands		Jun. 30, 2023	Mar. 31, 2023
Cash and cash equivalents:
Cash and due from banks		$ 41,437	$ 42,298
Money market investments		254	254
Total cash and cash equivalents		41,691	42,552
Investment securities:
Available-for-sale		52,192	53,843
Held-to-maturity		2,237	2,318
Total investment securities		54,429	56,161
Loans receivable:
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		590,534
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		(5,858)
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss, Total		584,676
Loans and Leases Receivable, Net of Deferred Income		590,534	597,896
Loans and Leases Receivable, Allowance			(5,229)
Total loans receivable, net			592,667
Premises and equipment, net		2,975	3,174
Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost		2,206	2,266
Accrued interest receivable		1,981	1,911
Right-of-use assets		11,701	12,311
Other assets		11,991	12,182
Total assets		711,650	723,224
Deposits:
Non-interest bearing checking		105,111	109,401
Interest-bearing deposits:
Interest-bearing checking		49,053	49,473
Savings		110,586	109,210
Money market		141,495	150,348
Certificates of Deposit		184,821	178,694
Escrow		2,096	3,303
Total interest-bearing deposits		488,051	491,028
Total deposits		593,162	600,429
Advances from the FHLB-NY and other borrowed money		51,062	51,090
Operating lease liability		12,544	13,173
Other liabilities		12,365	13,308
Total liabilities		669,133	678,000
EQUITY
Common stock		70	68
Additional paid-in capital		84,628	82,805
Accumulated deficit		(49,993)	(47,904)
Treasury stock		(2,908)	(2,908)
Accumulated other comprehensive loss		(13,008)	(12,215)
Total equity		42,517	45,224
Total liabilities and equity		711,650	723,224
Series D Preferred Stock
EQUITY
Preferred stock		11,551	13,201
Series E Preferred Stock
EQUITY
Preferred stock		3,177	3,177
Series F Preferred Stock
EQUITY
Preferred stock		9,000	9,000
Real Estate
Loans receivable:
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		417,429
Loans and Leases Receivable, Net of Deferred Income			423,349
Business
Loans receivable:
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	[1]	163,348
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		(1,404)
Loans and Leases Receivable, Net of Deferred Income		163,348	166,908	[1]
Loans and Leases Receivable, Allowance			(1,139)
Consumer
Loans receivable:
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	[2]	9,757
Financing Receivable, Allowance for Credit Loss, Excluding Accrued Interest		(414)
Loans and Leases Receivable, Net of Deferred Income		$ 9,757	7,639	[2]
Loans and Leases Receivable, Allowance			$ (449)

[1] (1) Includes PPP loans and business overdrafts

[2] 2) Includes personal loans and consumer overdrafts

XML

Consolidated Statements of Financial Condition Parentheticals - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Investment securities
Held-to-maturity, Fair Value	$ 2,107	$ 2,221
Common Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, Shares Authorized (in shares)	10,000,000	10,000,000
Common Stock, Shares Issued (in shares)	7,017,532	6,799,410
Common Stock, Shares Outstanding (in shares)	4,513,729	4,295,607
Treasury Stock, Common, Shares	2,503,803	2,503,803
Series D Preferred Stock
Convertible Preferred Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Convertible Preferred Stock, Shares Issued (in shares)	11,551	13,201
Convertible Preferred Stock, Shares Outstanding (in shares)	11,551	13,201
Convertible Preferred Stock, Liquidation Preference (in dollars per share)	$ 1,000	$ 1,000
Series E Preferred Stock
Convertible Preferred Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Convertible Preferred Stock, Shares Issued (in shares)	3,177	3,177
Convertible Preferred Stock, Shares Outstanding (in shares)	3,177	3,177
Convertible Preferred Stock, Liquidation Preference (in dollars per share)	$ 1,000	$ 1,000
Series F Preferred Stock
Convertible Preferred Stock, Par Value (in dollars per share)	$ 0.01	$ 0.01
Convertible Preferred Stock, Shares Issued (in shares)	9,000	9,000
Convertible Preferred Stock, Shares Outstanding (in shares)	9,000	9,000
Convertible Preferred Stock, Liquidation Preference (in dollars per share)	$ 1,000	$ 1,000

XML

Consolidated Statements of Operations - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Interest income:
Loans	$ 6,811	$ 5,977
Mortgage-backed securities	149	159
Investment securities	301	165
Money market investments	533	72
Total interest income	7,794	6,373
Interest expense:
Deposits	1,714	411
Advances and other borrowed money	578	148
Total interest expense	2,292	559
Net interest income	5,502	5,814
Provision for (recovery of) credit losses	6	(27)
Net interest income after provision for (recovery of) credit losses	5,496	5,841
Non-interest income:
Depository fees and charges	577	555
Loan fees and service charges	64	119
Grant income	20	0
Other	94	35
Total non-interest income	755	709
Non-interest expense:
Employee compensation and benefits	3,321	3,184
Net occupancy expense	1,105	1,084
Equipment, net	477	514
Data processing	751	616
Consulting fees	100	150
Federal deposit insurance premiums	128	101
Other	1,790	1,758
Total non-interest expense	7,672	7,407
Loss before income taxes	(1,421)	(857)
Income tax expense	0	0
Net loss	$ (1,421)	$ (857)
Loss per common share:
Earnings (loss) per Share, Basic (in dollars per share)	$ (0.32)	$ (0.20)
Earnings (loss) per Share, Diluted (in dollars per share)	$ (0.32)	$ (0.20)

XML

Consolidated Statements of Comprehensive Loss Statement - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Net loss	$ (1,421)	$ (857)
Other comprehensive loss, net of tax:
Unrealized (loss) gain of securities available-for sale, net of tax	(793)	(3,614)
Other comprehensive loss, net of taxes	(793)	(3,614)
Total comprehensive (loss) income, net of tax	$ (2,214)	$ (4,471)

XML

Consolidated Statement of Changes in Stockholders' Equity - USD ($) $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment [Member]	Preferred Stock	Common Stock	Additional Paid-in Capital	Accumulated Deficit	Treasury Stock, Common	Accumulated Other Comprehensive Loss
Equity - Beginning Balance at Mar. 31, 2022	$ 55,087		$ 25,928	$ 67	$ 82,165	$ (43,503)	$ (2,908)	$ (6,662)
Net loss	(857)
Other comprehensive loss, net of taxes	(3,614)
Stock Issued During Period, Value, Conversion of Convertible Securities	0		(550)	(1)	(549)
Stock based compensation expense	20				20
Equity - Ending Balance at Jun. 30, 2022	50,636		25,378	68	82,734	(44,360)	(2,908)	(10,276)
Accumulated deficit	(47,904)
Equity - Beginning Balance at Mar. 31, 2023	45,224		25,378	68	82,805	(47,904)	(2,908)	(12,215)
Net loss	(1,421)
Other comprehensive loss, net of taxes	(793)							(793)
Stock Issued During Period, Value, Conversion of Convertible Securities	0		(1,650)	(2)	(1,648)
Stock based compensation expense	175				175
Equity - Ending Balance at Jun. 30, 2023	42,517		$ 23,728	$ 70	$ 84,628	$ (49,993)	$ (2,908)	$ (13,008)
Accumulated deficit	$ (49,993)	$ (668)

XML

Consolidated Statements of Cash Flows - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$ (1,421)	$ (857)
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for (recovery of) credit losses	6	(27)
Stock based compensation expense	175	20
Depreciation and amortization expense	260	260
Amortization and accretion of loan premiums and discounts and deferred charges, net	49	(65)
Amortization and accretion of premiums and discounts — securities	61	132
(Increase) decrease in accrued interest receivable	(70)	94
Decrease in other assets	203	200
Decrease in other liabilities	(972)	(9,524)
Net cash used in operating activities	(1,709)	(9,767)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from principal payments, maturities and calls of investments: Available-for-sale	799	3,135
Proceeds from principal payments, maturities and calls of investments: Held-to-maturity	80	151
Purchase of bank-owned life insurance	0	(5,000)
Loans held-for investment, net of repayments/payoffs and (originations)	(10,294)	(33,178)
Loans purchased from third parties	(3,052)	(8,901)
Redemption (purchase) of FHLB-NY stock, net	60	(557)
Purchase of premises and equipment	(66)	(50)
Net cash provided by investing activities	8,115	21,956
CASH FLOWS FROM FINANCING ACTIVITIES
Net decrease in deposits	(7,267)	(39,823)
Increase in short-term borrowings	0	10,000
Repayment of long-term borrowings	0	(3)
Net cash used in financing activities	(7,267)	(29,826)
Net decrease in cash and cash equivalents	(861)	(17,637)
Cash and cash equivalents at beginning of period	42,552	61,018
Cash and cash equivalents at end of period	41,691	43,381
Noncash financing and investing activities
Conversion of preferred stock to common stock	1,650	550
Cash paid for:
Interest	1,955	559
Income taxes	$ 72	$ 17

XML

Organization

3 Months Ended

Jun. 30, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Organization

ORGANIZATION

Nature of operations

    Carver Bancorp, Inc. (on a stand-alone basis, the “Company” or “Registrant”), was incorporated in May 1996 and its principal wholly-owned subsidiary is Carver Federal Savings Bank (the “Bank” or “Carver Federal”). Carver Federal's wholly-owned subsidiaries are CFSB Realty Corp., Carver Community Development Corporation (“CCDC”) and CFSB Credit Corp., which is currently inactive. The Bank has a real estate investment trust, Carver Asset Corporation ("CAC"), that was formed in February 2004.

    “Carver,” the “Company,” “we,” “us” or “our” refers to the Company along with its consolidated subsidiaries. The Bank was chartered in 1948 and began operations in 1949 as Carver Federal Savings and Loan Association, a federally-chartered mutual savings and loan association. The Bank converted to a federal savings bank in 1986. On October 24, 1994, the Bank converted from a mutual holding company structure to stock form and issued 2,314,375 shares of its common stock, par value $0.01 per share. On October 17, 1996, the Bank completed its reorganization into a holding company structure (the “Reorganization”) and became a wholly-owned subsidiary of the Company.

    Carver Federal’s principal business consists of attracting deposit accounts through its branches and investing those funds in mortgage loans and other investments permitted by federal savings banks. The Bank has seven branches located throughout the City of New York that primarily serve the communities in which they operate.

    In September 2003, the Company formed Carver Statutory Trust I (the “Trust”) for the sole purpose of issuing trust preferred securities and investing the proceeds in an equivalent amount of floating rate junior subordinated debentures of the Company. In accordance with Accounting Standards Codification (“ASC”) 810, “Consolidations,” Carver Statutory Trust I is unconsolidated for financial reporting purposes. 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 were made in September 2016. Interest on the debentures had 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. During the fourth quarter of fiscal year 2021, the Company applied for and was granted regulatory approval to settle all outstanding debenture interest payments through June 2021. Full payment was made on June 16, 2021. The Company deferred the September 17, 2021 interest payment, but has since had discussions with the Federal Reserve Bank of Philadelphia regarding future quarterly payments. A streamlined process has been developed for the Company to request regulatory approval to make debenture interest payments. On December 16, 2021, the Company paid the deferred interest that was due on September 17, 2021 and the regular quarterly interest payment due on December 17, 2021. All quarterly interest payments subsequent to the June 2021 payment up to and including the June 2023 payment have been made. The interest rate was 8.56% and the total amount of deferred interest was $35 thousand at June 30, 2023.

    While Carver has suspended its regular quarterly cash dividend on its common stock, in the future, Carver may rely on dividends from Carver Federal to pay cash dividends to its stockholders and to engage in share repurchase programs. In recent years, Carver has been successful in obtaining cash independently through its capital raising efforts, which may include cash from government grants or below market-rate loans. As the subsidiary of a savings and loan association holding company, Carver Federal must file a notice or an application (depending on the proposed dividend amount) with the OCC (and an application with the FRB) prior to the declaration of each capital distribution. The OCC will disallow any proposed dividend that, among other reasons, would result in Carver Federal’s failure to meet the OCC minimum capital requirements.

Regulation

    On May 24, 2016, the Bank entered into a Formal Agreement ("the Agreement") with the OCC to undertake certain compliance-related and other actions. As a result of the Agreement, the Bank was required to obtain the approval of the OCC prior to effecting any change in its directors or senior executive officers, paying dividends and entering into any "golden parachute payments" as that term is defined under 12 U.S.C. § 1828(k) and 12 C.F.R. Part 359. As a result of the Agreement, Carver was issued an Individual Minimum Capital Ratio (“IMCR”) letter by the OCC, which requires the Bank to maintain minimum regulatory capital levels of 9% for its Tier1 leverage ratio and 12% for its total risk-based capital ratio. The Agreement was terminated on January 18, 2023. The IMCR remains in effect.

The Company continues to be subject to similar requirements that the Bank was subject to under the Agreement. The Company must provide notice to the FRB prior to affecting any change in its directors or senior executive officers. The Company is also subject to the restrictions on golden parachute and indemnification payments, as set forth in 12 C.F.R. Part 359. Written approval of the Federal Reserve Bank is required prior to: (1) the declaration or payment of dividends by the Company to its stockholders, (2) the declaration or payment of dividends by the Bank to the Company, (3) any distributions of interest or principal by the Company on subordinated debentures or trust preferred securities, (4) any purchases or redemptions of the Company’s stock and (5) the Company incurring, increasing or guaranteeing certain long-term debt outside the ordinary course of business. These limitations could affect our operations and financial performance.

XML

Summary of Significant Accounting Policies

3 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Significant Accounting Policies

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of consolidated financial statement presentation

    The consolidated financial statements include the accounts of the Company, the Bank and the Bank’s wholly-owned or majority-owned subsidiaries, Carver Asset Corporation, CFSB Realty Corp., CCDC, and CFSB Credit Corp., which is currently inactive. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company's subsidiary, Carver Statutory Trust I, is not consolidated with Carver Bancorp, Inc. for financial reporting purposes.  Carver Statutory Trust I was formed in 2003 for the purpose of issuing $13 million aggregate liquidation amount of floating rate Capital Securities due September 17, 2033 (“Capital Securities”) and $0.4 million of common securities (which are the only voting securities of Carver Statutory Trust I), which are 100% owned by Carver Bancorp, Inc., and using the proceeds to acquire Junior Subordinated Debentures issued by Carver Bancorp, Inc.  Carver Bancorp, Inc. has fully and unconditionally guaranteed the Capital Securities along with all obligations of Carver Statutory Trust I under the trust agreement relating to the Capital Securities. The Company does not consolidate the accounts and related activity of Carver Statutory Trust I because it is not the primary beneficiary of the entity.

Variable interest entities ("VIEs") are consolidated, as required, when Carver has a controlling financial interest in these entities and is deemed to be the primary beneficiary. Carver is normally deemed to have a controlling financial interest and be the primary beneficiary if it has both (a) the power to direct activities of a VIE that most significantly impact the entity's economic performance; and (b) the obligation to absorb losses of the entity that could benefit from the activities that could potentially be significant to the VIE.

    The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ended March 31, 2024. The consolidated balance sheet at June 30, 2023 has been derived from the unaudited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statement of financial condition and revenues and expenses for the period then ended. These unaudited consolidated financial statements should be read in conjunction with the Annual Report on Form 10-K for the year ended March 31, 2023. Amounts subject to significant estimates and assumptions are items such as the allowance for credit loss, realization of deferred tax assets, assessment of other-than-temporary impairment of securities available-for-sale, and the fair value of financial instruments. While management uses available information to recognize losses on loans, future additions to the allowance for credit loss or future writedowns of real estate owned may be necessary based on changes in economic conditions in the areas where Carver Federal has extended mortgages and other credit instruments. Actual results could differ

significantly from those assumptions. Current market conditions increase the risk and complexity of the judgments in these estimates.

Certain comparative amounts for the prior period have been reclassified to conform to current period presentations. Such reclassifications had no effect on net income or shareholders' equity.

Recent Events

The business climate continues to present significant challenges as banks continue to absorb heightened regulatory costs and compete for limited loan demand. Significant increases in food and energy prices resulted from swift increases in the rate of inflation. Additionally, the Federal Reserve has increased the federal funds rate at each of its meetings since March 2022, and while the rate was held steady at the June 2023 meeting, it was increased another quarter point to the highest level in 22 years at the most recent July 2023 meeting. For Carver, the economic climate of New York City (“the City”), in particular, impacts our business as the City lags behind the rest of New York State and the nation both in restoring pandemic job losses and in rebounding to pre-pandemic levels of unemployment. The City's unemployment rate remains high at 5.4%, exceeding the national average, as employment in the arts and entertainment, food and hospitality sectors continue to remain below their pre-pandemic highs.

In March 2023, the FDIC was appointed as receiver for Silicon Valley Bank and Signature Bank after they experienced runs on deposits and other liquidity constraints. At the time, Silicon Valley Bank and Signature Bank were the 16th and 29th largest banks in the United States, respectively, as measured by total assets as of December 31, 2022. Following the failures of Silicon Valley Bank and Signature Bank, on May 1, 2023, First Republic Bank was closed by the California Department of Financial Protection and Innovation, which appointed the FDIC as receiver. The closures of those banks led to industry-wide concerns related to liquidity, deposit outflows, and unrealized securities losses and eroding confidence in the banking system from the general public. In response to these recent developments, the Company took a number of preemptive actions, which included proactive outreach to clients and steps to maximize its funding sources. As a result, the Company's liquidity position remains adequate. The impact of market volatility from the adverse developments in the banking industry along with continued high inflation and rising interest rates, will depend on future developments, which are highly uncertain and difficult to predict.

The Company is closely monitoring its asset quality, liquidity, and capital positions, as well as the credit risk in its loan portfolio. Management is actively working to minimize the current and future impact of this unusual situation, and is continuing to make adjustments to operations where appropriate or necessary to mitigate risk. However, these factors and events may have negative effects on the business, financial condition, and results of operations of the Company and its customers.

New Accounting Standard Adopted in First Quarter

On April 1, 2023, the Company adopted ASU No. 2016-13, "Financial Instruments - Credit Loss (Topic 326)" and its subsequent amendments, which replaces the guidance on recognition and measurement of credit losses for financial assets. The new requirements, known as the current expected credit loss model ("CECL") will require entities to adopt an impairment model based on expected losses rather than incurred losses. The Company applied the new guidance with a cumulative-effect adjustment to retained earnings as of April 1, 2023, using the modified-retrospective approach. Results for reporting periods beginning after April 1, 2023 are presented under CECL. Prior period amounts have not been restated and are reported in accordance with the incurred loss method. The adoption of ASU 2016-13 resulted in an increase of $0.7 million to the allowance for credit losses related to loans.     

Allowance for Credit Losses ("ACL")

    The ACL is a valuation account that is deducted from the loan portfolio's amortized cost basis to present the net amount expected to be collected on the loans. Loan losses are charged off against the allowance when management believes the uncollectibility of a loan balance is confirmed. Management continues its collection efforts on previously charged-off balances and applies recoveries as additions to the ACL. The measurement of expected credit losses is based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount and a reversion to historical after the reasonable and supportable period. Expected credit losses were estimated using a regression model based on historical data from the Company and peer institutions. Adjustments to modeled loss estimates may be made for differences in current loan-specific risk characteristics such as differences in underwriting standards, portfolio mix, delinquency level or term, as well as for changes in environmental conditions, such as changes in economic conditions,, property values or other relevant factors. The discounted cash flow ("DCF") methodology is used for substantially all pools, applied with a 4-quarter reasonable and supportable forecast period and a 4-quarter reversion period where the ACL reflects the difference between the amortized cost and the present value of the expected cash flows. The expected cash flows are discounted at the effective interest rate and the entire change in present value is reported as credit loss expense (or reversal of credit loss expense). On a quarterly basis, management considers probability of default utilizing

economic forecasts including civilian unemployment rates and CPI index, and loss given default assumptions using Frye-Jacobs estimations. For periods beyond the forecast period, the loss rate reverts back to the long-term historical loss average with a 4-quarter straight-line reversion period for all pools. There were no changes in the assumptions used from the April 1, 2023 adoption date and for the quarter ended June 30, 2023.

The Company has elected to exclude accrued interest from the amortized cost basis in determining credit losses. Accrued interest receivable on loans is included in a separate line item on the Consolidated Statements of Financial Condition. 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. When a loan is placed on nonaccrual status, any accrued but uncollected interest is reversed from current income. Interest income on nonaccrual loans is recorded when received based upon the collectability of the loan.

Expected credit losses are measured on a collective pool basis when similar risk characteristics exist. Loans with similar risk characteristics are grouped into homogeneous segments, or pools, for allowance calculation. The Company's loan portfolio segments as of March 31, 2023 and June 30, 2023 were as follows:

•One-to-four Family - Carver Federal purchases first mortgage loans secured by one-to-four family properties that serve as the primary residence of the owner and non-qualified mortgages for one-to-four family residential loans. The loans are underwritten in accordance with applicable secondary market underwriting guidelines and requirements for sale. These loans present a moderate level of risk due primarily to general economic conditions.

•Multifamily - Carver Federal originates and purchases recourse and non-recourse multifamily loans. Multifamily property lending entails additional risks compared to one-to-four family lending. These loans are dependent on the successful operation of such buildings and can be significantly impacted by economic conditions, industry concentration, valuation of the underlying properties, lease terms, occupancy/vacancy rates, and changes in market demand for multifamily units. The Bank primarily considers the property's ability to generate net operating income sufficient to support the debt service, the financial resources, income level and managerial expertise of the borrower, the marketability of the property and the Bank's lending experience with the owner/guarantor.

•Commercial Real Estate ("CRE") - CRE lending consists predominantly of originating loans for the purpose of purchasing or refinancing office, mixed-use properties, retail and church buildings in the Bank's market area.  Mixed-use loans are secured by properties that are intended for both commercial and residential use, but predominantly commercial, and are classified as CRE. The Bank primarily considers the ability of the net operating income generated by the real estate to support the debt service, the financial resources, income level and managerial expertise of the borrower, the marketability of the property and the Bank's lending experience with the owner/guarantor. The Bank also requires the assignment of rents of all tenants' leases in the mortgaged property and personal guarantees may be obtained for additional security from these borrowers. CRE loans generally present a higher level of risk than other types of loans due primarily to the effect of general economic conditions and the complexities involved in valuing the underlying collateral.

•Business - Carver Federal originates and purchases business and SBA loans primarily to businesses located in its primary market area and surrounding areas. Business loans are typically personally guaranteed by the owners and may also be secured by additional collateral, including real estate, equipment and inventory. Business loans are subject to increased risk from the effect of general economic conditions. SBA loans are guaranteed by the U.S. government based on the percentage of each individual program.

•Consumer (including Overdraft accounts) - The Consumer portfolio includes student loans to medical students enrolled in several Caribbean schools, as well as unsecured consumer loans purchased from or originated through strategic partnerships with Bankers Healthcare Group, LLC and Upstart Holdings, Inc. Consumer loans are typically unsecured and more susceptible to declining economic conditions.

Because expected loss predictions may not adequately project the level of losses inherent in a portfolio, the Bank reviews a number of qualitative factors on a quarterly basis to determine if reserves should be adjusted based upon any of those factors.  As the risk ratings worsen, some of the qualitative factors tend to increase.  A number of qualitative factors are considered including economic forecast uncertainty, credit quality trends, valuation trends, concentration risk, quality of loan review, changes in personnel, impact of rising rates, external factors and other considerations. Although the quantitative calculation includes a measurement of statistical economic conditions based on national averages, an additional analysis is

performed at the qualitative level that applies specifically to the Company's geographic area and the banking industry that includes reasonable and supportable forecasts.

Reserve for Off-Balance Sheet Credit Exposure

    In the ordinary course of business, the Bank has entered into off-balance sheet financial instruments consisting of commitments to extend credit and letters of credit. Such financial instruments are recorded in the consolidated statements of condition when they are funded. The Company estimates a reserve for expected credit losses on loan commitments over the contractual period in which it is exposed to credit risk via a contractual obligation to extend credit, unless that obligation is unconditionally cancellable by the Company. The Bank does not record any reserve for unconditionally cancellable unfunded lending commitment since the exposure may be canceled to prevent future credit loss. Reserves for unfunded lending commitments that are not unconditionally cancellable are included in Other Liabilities in the consolidated statements of financial condition. Management will consider the likelihood that funding will occur and use the discount rate based on the associated pooled loan analysis loss rate to calculate the estimated expected credit losses. The ACL on off-balance sheet credit exposures was $10 thousand as of June 30, 2023.

Allowance for Credit Losses - Securities

The Company conducts periodic reviews to identify and evaluate each investment that has an unrealized holding loss. For available-for-sale ("AFS") securities in an unrealized loss position, management determines whether the Company has the intent to sell the security, or is more likely than not that it will be required to sell the security before the recovery of its amortized cost basis. If either of the criteria regarding intent or requirement to sell is met, the ACL is written off and the amortized cost adjusted for that amount. If any incremental credit loss occurs, the amortized cost is adjusted further by the credit loss and recorded in earnings. For AFS securities that do not meet the above criteria, management evaluates whether the decline in fair value has resulted from credit losses or other factors. In making this assessment, management may consider various factors including downgrades in the rating of the security by rating agencies, failure of the issuer to make scheduled interest or principal payments or adverse conditions specifically related to the security. If the decline in fair value is due to credit loss, the credit loss is recorded through ACL, limited by the amount that the fair value is less than the amortized cost basis. The Bank's held-to-maturity portfolio consists of mortgage-backed securities issued by U.S. government agencies, which have an explicit government guarantee. As a result, no ACL has been recorded related to held-to-maturity securities.

XML

Earnings Per Common Share

3 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Earnings Per Common Share

PER COMMON SHARE

    The following table reconciles the loss available to common shareholders (numerator) and the weighted average common stock outstanding (denominator) for both basic and diluted loss per share for the following periods:

	Three Months Ended June 30,
$ in thousands except per share data	2023		2022
Net loss	$	(1,421)	$	(857)
Weighted average common shares outstanding - basic	4,496,782		4,229,209
Weighted average common shares outstanding – diluted	4,496,782		4,229,209
Basic loss per common share	$	(0.32)	$	(0.20)
Diluted loss per common share	(0.32)		(0.20)

The Company has preferred stock which are entitled to receive dividends if declared on the Company's common stock and are therefore considered to be participating securities. Basic earnings (loss) per share (“EPS”) is computed using the two class method. This calculation divides net income (loss) available to common stockholders after the allocation of undistributed earnings to the participating securities by the weighted average number of shares of common stock outstanding during the period.  Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. These potentially dilutive shares are then included in the weighted average number of shares outstanding for the period. Dilution calculations are not applicable to net loss periods. For the three months ended June 30, 2023 and 2022, all restricted shares and outstanding stock options were anti-dilutive.

XML

Common Stock Dividends and Issuances

3 Months Ended

Jun. 30, 2023

Dividends [Abstract]

Stockholders' Equity Note Disclosure

COMMON STOCK DIVIDENDS AND ISSUANCES

    On October 28, 2011, the United States Department of the Treasury (the "Treasury Department") exchanged the CDCI Series B preferred stock for 2,321,286 shares of Carver common stock and the Series C preferred stock converted into 1,208,039 shares of Carver common stock and 45,118 shares of Series D preferred stock. Series C stock was previously reported as mezzanine equity, and upon conversion to common and Series D preferred stock is now reported as equity attributable to Carver Bancorp, Inc. The holders of the Series D Preferred Stock are entitled to receive dividends, on an as-converted basis, simultaneously to the payment of any dividends on the common stock.

In June 2020, The Goldman Sachs Group, Inc., an institutional investor, notified the Company of their intention to effect a series of transfers of up to all its holdings of Series D Preferred Stock. The conversion and subsequent sale of shares were completed on July 2, 2020: 13,519 Series D Preferred Stock shares were converted into 1,653,397 shares of Common Stock, which were subsequently sold in the open market. The conversion and sale had no impact on the Company's total capital.

On July 9, 2020, the Company received notice that Morgan Stanley International Holdings Inc. ("Morgan Stanley"), an institutional investor, relinquished its ownership of 180,573 shares of Company common stock and 13,523 shares of Company Preferred Series D Stock to the Company at no cost to the Company.

On August 6, 2020, the Company entered into a Securities Purchase Agreement (the "Agreement") with the Treasury Department to repurchase 2,321,286 shares of Company common stock, owned by the Treasury Department for an aggregate purchase price of $2.5 million. The stock repurchase provided for in the Agreement was completed on August 6, 2020. Upon completion of the repurchase pursuant to the Agreement, the Treasury Department was no longer a stockholder in the Company. In connection with the repurchase, Morgan Stanley provided a grant of $2.5 million that was considered contributed capital to the Company to fund the repurchase transaction.

On October 15, 2020, the Company entered into an agreement with Banc of America Strategic Investments Corporation under which it issued and sold 147,227 shares of its common stock, par value $0.01, at a price of $6.62 per share. The shares were issued on October 15, 2020, in a private placement exempt from registration under Section 4(2) of the Securities Act of 1933, as amended, and Regulation D of the rules and regulations promulgated thereunder.

On January 22, 2021, Prudential Insurance Company of America ("Prudential"), an institutional investor, notified the Company of its intention to cancel 475 of its holdings of Series D Preferred Stock and convert such shares into 58,093 shares of common stock. During fiscal years 2022 and 2023, Prudential donated a total of 3,850 and 550 shares, respectively, of its holdings of Series D Preferred Stock to third parties. The third parties notified the Company of their intention to cancel the shares and convert them into 470,855 and 67,265 shares, respectively, of Common Stock. During the three months ended June 30, 2023, Prudential donated a total of 1,650 shares of its holdings of Series D Preferred Stock to third parties. The third parties notified the Company of their intention to cancel the shares and convert them into 201,795 shares of Common Stock. The conversions had no impact on the Company's total capital.

On February 1, 2021, the Company entered into an agreement with Wells Fargo Central Pacific Holdings, Inc., under which it sold: (i) 157,806 shares of its common stock, par value $0.01 per share, at a purchase price of $7.75 per share, and (ii) 3,177 shares of a new series of preferred stock, Series E non-cumulative non-voting participating preferred stock, par value $0.01 per share, at a purchase price of $1,000 per share, in a private placement for gross proceeds of approximately $4.4 million. Upon the completion of certain transfers of the Series E preferred stock by Wells Fargo Central Pacific Holdings, Inc., the Series E preferred stock would be convertible into common stock at a conversion price of $7.96 per share. The issuance of the shares is exempt from registration pursuant to the exemption provided under Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended. The offering was made only to accredited investors as that term is defined in Rule 501(a) of Regulation D under the Act.

On February 16, 2021, the Company entered into an agreement with J.P. Morgan Chase Community Development Corporation ("J.P. Morgan"), under which it sold: (i) 112,612 shares of its common stock, par value $0.01 per share, at a purchase price of $8.88 per share, and (ii) 5,000 shares of a new series of preferred stock, Series F non-cumulative non-voting non-convertible preferred stock, par value $0.01 per share ("Series F Preferred Stock"), at a purchase price of $1,000 per share, in a private placement for gross proceeds of approximately $6.0 million. On September 27, 2021, the Company entered into an agreement with J.P. Morgan under which it sold an additional 4,000 shares of its Series F Preferred Stock, at a purchase price of $1,000 per share, in a private placement for gross proceeds of $4.0 million. The issuances of the shares were exempt from registration pursuant to the exemption provided under Rule 506 of Regulation D promulgated under the Securities Act of 1933, as amended. The offerings were made only to accredited investors as that term is defined in Rule 501(a) of Regulation D under the Act. On December 14, 2021, the Company entered into a Sales Agreement (the "Sales Agreement") with Piper Sandler & Co. (“Piper Sandler”), as sales agent, pursuant to which the Company may offer and sell shares of its common stock, par value $0.01 per share, having an aggregate gross sales prices of up to $20.0 million (the “ATM Shares”) from time to time. Any sales made under the Sales Agreement will be sales deemed to be "at-the-market (ATM) offerings," as defined in Rule 415 under the Securities Act of 1933, as amended. These sales will be made through ordinary broker transactions on the NASDAQ Capital Market stock exchange at market prices prevailing at the time, at prices related to the prevailing market prices, or at negotiated prices. The Company intends to use the net proceeds of these offerings for general corporate purposes, including support for organic loan growth and repayment of all or a portion of the outstanding principal amount of our outstanding subordinated debt securities. During fiscal year 2022, the Company sold an aggregate of 397,367 shares of common stock under the ATM offering program, resulting in gross proceeds of $3.1 million and net proceeds to the Company of $3.0 million after deducting commissions and expenses. There were no additional offerings in fiscal year 2023 or during the three months ended June 30, 2023.

XML

Other Comprehensive Income (Loss)

3 Months Ended

Jun. 30, 2023

Statement of Comprehensive Income [Abstract]

Comprehensive Income (Loss) Note

OTHER COMPREHENSIVE LOSS

    The following tables set forth changes in each component of accumulated other comprehensive loss, net of tax for the three months ended June 30, 2023 and 2022:

$ in thousands	At March 31, 2023		Other Comprehensive Loss, net of tax		At June 30, 2023
Net unrealized loss on securities available-for-sale	$	(12,215)	$	(793)	$	(13,008)

$ in thousands	At March 31, 2022		Other Comprehensive Income, net of tax		At June 30, 2022
Net unrealized loss on securities available-for-sale	$	(6,662)	$	(3,614)	$	(10,276)

    There were no reclassifications out of accumulated other comprehensive loss to the consolidated statement of operations for the three months ended June 30, 2023 and 2022.

XML

Investment Securities

3 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Investment Securities

INVESTMENT SECURITIES

    The Bank utilizes mortgage-backed and other investment securities in its asset/liability management strategy. In making investment decisions, the Bank considers, among other things, its yield and interest rate objectives, its interest rate and credit risk position, and its liquidity and cash flow.

    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 June 30, 2023, securities with fair value of $52.2 million, or 95.9%, of the Bank’s total securities were classified as available-for-sale, and securities with amortized cost of $2.2 million, or 4.1%, 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 June 30, 2023 and March 31, 2023.

    Other investments as of June 30, 2023 primarily consists of the Bank's investment in a limited partnership Community Capital Fund and a $5.2 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 investment in the limited partnership is measured using the equity method. The BOLI is carried at the cash surrender value of the underlying policies. Income generated from the investment 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 $6.2 million at June 30, 2023 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 June 30, 2023 and March 31, 2023:

	At June 30, 2023
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	316	$	—	$	4	$	312
Federal Home Loan Mortgage Corporation	21,281		—		4,607		16,674
Federal National Mortgage Association	11,510		—		2,262		9,248
Total mortgage-backed securities	33,107		—		6,873		26,234
U.S. Government Agency Securities	9,112		—		30		9,082
Corporate Bonds	5,268		—		2,182		3,086
Muni Securities	17,713		—		3,923		13,790
Total available-for-sale	$	65,200	$	—	$	13,008	$	52,192
Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	347	$	—	$	9	$	338
Federal National Mortgage Association and Other	1,890		—		121		1,769
Total held-to maturity	$	2,237	$	—	$	130	$	2,107

	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 and Other	1,952		—		94		1,858
Total held-to-maturity	$	2,318	$	—	$	97	$	2,221

There were no sales of available-for-sale or held-to-maturity securities for the three months ended June 30, 2023 and June 30, 2022.

    The following tables set forth the unrealized losses and fair value of securities in an unrealized loss position at June 30, 2023 and March 31, 2023 for less than 12 months and 12 months or longer:

	At June 30, 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	$	3	$	270	$	6,870	$	25,964	$	6,873	$	26,234
U.S. Government Agency securities	—		—		30		9,082		30		9,082
Corporate bonds	—		—		2,182		3,086		2,182		3,086
Muni securities	—		—		3,923		13,790		3,923		13,790
Total available-for-sale securities	$	3	$	270	$	13,005	$	51,922	$	13,008	$	52,192
Held-to-Maturity:
Mortgage-backed securities	$	9	$	338	$	121	$	1,734	$	130	$	2,072
Total held-to-maturity securities	$	9	$	338	$	121	$	1,734	$	130	$	2,072

	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 25 securities had an unrealized loss at June 30, 2023 compared to 24 at March 31, 2023. Mortgage-backed securities, U.S. government agency securities, municipal securities and a corporate bond security represented 50.3%, 17.4%, 26.4% and 5.9%, respectively, of total available-for-sale securities in an unrealized loss position at June 30, 2023. There were eight mortgage-backed securities, three U.S. government agency securities, one corporate bond, six municipal securities and zero asset-backed security that had an unrealized loss position for more than 12 months at June 30, 2023. Management has evaluated available-for-sale securities that are in an unrealized loss position and has 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 the U.S. government's guarantees, 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 did not have any securities that were classified as having other-than-temporary impairment in its investment portfolio. As such, no allowance for credit losses on securities available-for-sale or held-to-maturity have been established as of June 30, 2023.

    The following is a summary of the amortized cost and fair value of debt securities at June 30, 2023, 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:
Five through ten years	5,540		5,157		4.63	%
After ten years	26,553		20,801		3.47	%
Mortgage-backed securities	33,107		26,234		1.62	%
Total	$	65,200	$	52,192	2.66	%
Held-to-maturity:
Mortgage-backed securities	$	2,237	$	2,107	2.8	%

XML

Loans Receivable and Allowance for Credit Losses

3 Months Ended

Jun. 30, 2023

Loans and Leases Receivable Disclosure [Abstract]

Loans Receivable and Allowance for Credit Losses

LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

The loans receivable portfolio is segmented into one-to-four family, multifamily, commercial real estate, business (including Small Business Administration loans), and consumer loans.

    The ACL reflects management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. Management uses a disciplined process and methodology to calculate the ACL each quarter. To determine the total ACL, management estimates the reserves needed for each segment of the loan portfolio, including loans analyzed individually and loans analyzed on a pooled basis.

    The following is a summary of loans receivable at June 30, 2023 and March 31, 2023:

	June 30, 2023				March 31, 2023
$ in thousands	Amount		Percent		Amount		Percent
Loans receivable:
One-to-four family	$	65,526	11.1	%	$	65,808	11.0	%
Multifamily	178,815		30.3	%	179,117		30.0	%
Commercial real estate	173,088		29.3	%	178,424		29.8	%
Business (1)	163,348		27.7	%	166,908		27.9	%
Consumer (2)	9,757		1.6	%	7,639		1.3	%
Total loans receivable	$	590,534	100.0	%	$	597,896	100.0	%
Allowance for credit losses	(5,858)				(5,229)
Total loans receivable, net	$	584,676			$	592,667

(1) Includes PPP loans and business overdrafts

(2) Includes personal loans and consumer overdrafts

The totals above are shown net of deferred loan fees and costs. Net deferred loan fees totaled $2.7 million and $2.8 million at June 30, 2023 and March 31, 2023, respectively. The Bank purchased $2.8 million consumer loans and $0.3 million business loans during the three months ended June 30, 2023.

The Bank participated as a lender in the PPP, which opened on April 3, 2020. As part of the CARES Act, the 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 enrolled 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 June 30, 2023, 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 June 30, 2023.

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. At June 30, 2023 and March 31, 2023, 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 credit losses based upon the method of evaluating loan reserves for the three months ended June 30, 2023 under the expected loss methodology.

Three months ended June 30, 2023
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	716	$	1,109	$	1,814	$	1,139	$	449	$	2	$	5,229
Impact of CECL adoption	1,220		(392)		(497)		505		(166)		(2)		668
Charge-offs	—		—		—		—		(95)		—		(95)
Recoveries	—		—		—		49		1		—		50
Provision for (recovery of) Credit Losses	127		(4)		(53)		(289)		225		—		6
Ending Balance	$	2,063	$	713	$	1,264	$	1,404	$	414	$	—	$	5,858
Allowance for Credit Losses Ending Balance: collectively evaluated for impairment	$	1,962	$	713	$	1,264	$	1,392	$	414	$	—	$	5,745
Allowance for Credit Losses Ending Balance: individually evaluated for impairment	101		—		—		12		—		—		113
Loan Receivables Ending Balance:	$	65,526	$	178,815	$	173,088	$	163,348	$	9,757	$	—	$	590,534
Ending Balance: collectively evaluated for impairment	60,386		176,508		168,566		152,424		9,756		—		567,640
Ending Balance: individually evaluated for impairment	5,140		2,307		4,522		10,924		1		—		22,894

The following is an analysis of the allowance for loan losses as of the fiscal year ended March 31, 2023 and for the three months ended June 30, 2022 based upon the incurred loss impairment model.

At March 31, 2023
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for Loan Losses 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 impairment	109		—		—		202		—		—		311
Loan Receivables Ending Balance:	$	65,808	$	179,117	$	178,424	$	166,908	$	7,639	$	—	$	597,896
Ending Balance: collectively evaluated for impairment	60,805		179,046		171,234		160,985		7,638		—		579,708
Ending Balance: individually evaluated for impairment	5,003		71		7,190		5,923		1		—		18,188

Three months ended June 30, 2022
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	731	$	1,114	$	1,157	$	2,497	$	123	$	2	$	5,624
Charge-offs	—		—		—		—		(13)		—		(13)
Recoveries	—		—		—		19		1		—		20
Provision for (recovery of) Loan Losses	(82)		(61)		(49)		(195)		2		358		(27)
Ending Balance	$	649	$	1,053	$	1,108	$	2,321	$	113	$	360	$	5,604

The following is a summary of nonaccrual loans, at amortized cost, at June 30, 2023 and March 31, 2023.

	June 30, 2023						March 31, 2023
$ in thousands	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance		Total Nonaccrual Loans		Nonaccrual Loans
Gross loans receivable:
One-to-four family	$	4,154	$	—	$	4,154	$	4,001
Multifamily	824		—		$	824	71
Commercial real estate	4,522		—		$	4,522	7,190
Business	6,088		10		$	6,098	998
Consumer	1		—		$	1	1
Total nonaccrual loans	$	15,589	$	10	$	15,599	$	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. When a loan is placed on nonaccrual status, any accrued but uncollected interest is reversed from current income. 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 for the three months ended June 30, 2023.

    At June 30, 2023 and March 31, 2023, other non-performing assets totaled $60 thousand, 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 June 30, 2023 and March 31, 2023.

    Although we believe that substantially all risk elements at June 30, 2023 have been disclosed, it is possible that for a variety of reasons, including economic conditions, certain borrowers may be unable to comply with the contractual repayment terms on certain real estate and commercial loans.

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 June 30, 2023:

$ in thousands	2023		2022		2021		2020		2019		2018 and earlier		Revolving Loans		Total
Credit Risk Profile by Internally Assigned Grade:
Multifamily
Pass	$	3,287	$	54,039	$	51,796	$	28,328	$	18,088	$	20,172	$	—	$	175,710
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		1,483		1,560		—		62		—		3,105
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	3,287		54,039		53,279		29,888		18,088		20,234		—		178,815
Commercial Real Estate
Pass	8,383		31,662		28,022		17,289		21,172		61,344		—		167,872
Special Mention	—		—		—		—		—		694		—		694
Substandard	—		—		—		—		—		4,522		—		4,522
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	8,383		31,662		28,022		17,289		21,172		66,560		—		173,088
Business
Pass	8,454		42,152		49,728		11,037		401		42,070		—		153,842
Special Mention	—		—		7,326		—		—		16		—		7,342
Substandard	—		—		—		—		193		1,971		—		2,164
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	8,454		42,152		57,054		11,037		594		44,057		—		163,348
Credit Risk Profile Based on Payment Activity:
One-to-four Family
Performing	1,610		3,876		13,562		1,448		9,127		31,778		—		61,401
Non-Performing	—		—		—		—		—		4,125		—		4,125
Total	1,610		3,876		13,562		1,448		9,127		35,903		—		65,526
Consumer
Performing	7,769		803		17		30		—		1,137		—		9,756
Non-Performing	—		1		—		—		—		—		—		1
Total	7,769		804		17		30		—		1,137		—		9,757
Gross charge-offs	—		—		—		—		—		95		—		95
Total	$	29,503	$	132,533	$	151,934	$	59,692	$	48,981	$	167,891	$	—	$	590,534

    At March 31, 2023, 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	$	175,981	$	170,534	$	154,056
Special Mention	771		701		5,719
Substandard	2,365		7,189		7,133
Total	$	179,117	$	178,424	$	166,908
			One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing			$	60,629	$	7,639
Non-Performing			5,179		—
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 table presents an aging analysis of the amortized cost of past due loans receivables at June 30, 2023 and March 31, 2023.

.

June 30, 2023
$ in thousands	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivables
One-to-four family	$	—	$	263	$	2,649	$	2,912	$	62,614	$	65,526
Multifamily	—		551		1,078		1,629		177,186		178,815
Commercial real estate	—		—		4,522		4,522		168,566		173,088
Business	—		11,652		2,528		14,180		149,168		163,348
Consumer	—		73		32		105		9,652		9,757
Total	$	—	$	12,539	$	10,809	$	23,348	$	567,186	$	590,534

March 31, 2023
$ in thousands	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivables
One-to-four family	$	1,207	$	185	$	2,475	$	3,867	$	61,941	$	65,808
Multifamily	1,458		—		71		1,529		177,588		179,117
Commercial real estate	1,370		—		—		1,370		177,054		178,424
Business	11,006		—		5,014		16,020		150,888		166,908
Consumer	99		26		34		159		7,480		7,639
Total	$	15,140	$	211	$	7,594	$	22,945	$	574,951	$	597,896

At June 30, 2023 and 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 June 30, 2023:

	Collateral Type
$ in thousands	Real Estate		Other		Allowance Allocated
One-to-four family	$	5,140	$	—	$	101
Multifamily	2,307		—		—
Commercial real estate	4,522		—		—
Business	10,731		193		12
Consumer	1		—		—
	$	22,701	$	193	$	113

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.

	At March 31, 2023
$ in thousands	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Balance		Interest Income Recognized
With no specific allowance recorded:
One-to-four family	$	3,972	$	4,567	$	—	$	3,861	$	111
Multifamily	71		71		—		220		—
Commercial real estate	7,190		7,378		—		4,054		36
Business	1,114		1,146		—		1,723		—
Consumer	1		1		—		—		—
With an allowance recorded:
One-to-four family	1,031		1,031		109		554		41
Business	4,809		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 three months ended June 30, 2023. There were two one-to-four family loans totaling $1.0 million modified during the three months ended June 30, 2022. At June 30, 2023, loans modified to borrowers experiencing financial difficulty totaled $7.5 million, $1.6 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 four modified loans totaling $5.9 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 restructured terms for a period of at least six months.

    In an effort to proactively resolve delinquent loans, the Bank has selectively extended to certain borrowers concessions such as extensions, rate reductions or forbearance agreements. For the periods ended June 30, 2023 and 2022, 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.

    The aggregate amount of loans outstanding to related parties was $30 thousand at June 30, 2023 and at March 31, 2023. There were no advances or principal repayments during the three months ended June 30, 2023.

    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.

XML

Fair Value Measurements

3 Months Ended

Jun. 30, 2023

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]

Fair Value Measurements

FAIR VALUE MEASUREMENTS

    Fair value is an “exit” price, representing the amount that would be received when selling an asset, or paid when transferring a liability, in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are categorized in a a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

•Level 1— Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

•Level 2— Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

◦Level 3— Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

    A financial instrument’s categorization within this valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

    The following table presents, by valuation hierarchy, assets that are measured at fair value on a recurring basis as of June 30, 2023 and March 31, 2023, and that are included in the Company’s Consolidated Statements of Financial Condition at these dates:

	Fair Value Measurements at June 30, 2023, Using
$ in thousands	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Mortgage servicing rights	$	—	$	—	$	147	$	147
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		312		—		312
Federal Home Loan Mortgage Corporation	—		16,674		—		16,674
Federal National Mortgage Association	—		9,248		—		9,248
U.S. Government Agency securities	—		9,082		—		9,082
Corporate bonds	—		3,086		—		3,086
Muni securities	—		13,790		—		13,790
Total available-for-sale securities	—		52,192		—		52,192
Total assets	$	—	$	52,192	$	147	$	52,339

	Fair Value Measurements at March 31, 2023, Using
$ in thousands	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Mortgage servicing rights	$	—	$	—	$	152	$	152
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		341		—		341
Federal Home Loan Mortgage Corporation	—		17,600		—		17,600
Federal National Mortgage Association	—		9,502		—		9,502
U.S. Government Agency securities	—		9,326		—		9,326
Corporate bonds	—		3,092		—		3,092
Muni securities	—		13,982		—		13,982
Total available-for-sale securities	—		53,843		—		53,843
Total assets	$	—	$	53,843	$	152	$	53,995

    Instruments for which unobservable inputs are significant to their fair value measurement (i.e., Level 3) include mortgage servicing rights (“MSR”). Level 3 assets accounted for 0.02% of the Company’s total assets at June 30, 2023 and March 31, 2023.

    The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next that are related to the observable inputs to a fair value measurement may result in a reclassification from one hierarchy level to another.

    Below is a description of the methods and significant assumptions utilized in estimating the fair value of available-for-sale securities and MSR:

    Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy.

    If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. These pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices, and credit spreads. In addition to market information, models also incorporate transaction details, such as maturity and cash flow assumptions. Securities valued in this manner would generally be classified within Level 2 of the valuation hierarchy and primarily include such instruments as mortgage-related securities and corporate debt.

    In the three month period ended June 30, 2023, there were no transfers of investments into or out of each level of the fair value hierarchy.

    In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. In valuing certain securities, the determination of fair value may require benchmarking to similar instruments or analyzing default and recovery rates. Quoted price information for the MSRs is not available. Therefore, MSRs are valued using market-standard models to model the specific cash flow structure. Key inputs to the model consist of principal balance of loans being serviced, servicing fees and discount and prepayment rates.

    The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

    The following table includes a rollforward of assets classified by the Company within Level 3 of the valuation hierarchy for the three months ended June 30, 2023 and 2022:

$ in thousands	Beginning balance, April 1, 2023	Total Realized/Unrealized Gains/(Losses) Recorded in Income (1)	Issuances / (Settlements)	Transfers to/(from) Level 3	Ending balance, June 30, 2023	Change in Unrealized Gains/(Losses) Related to Instruments Held at June 30, 2023
Mortgage servicing rights	152	(5)	—	—	147	(5)

$ in thousands	Beginning balance, April 1, 2022	Total Realized/Unrealized Gains/(Losses) Recorded in Income (1)	Issuances / (Settlements)	Transfers to/(from) Level 3	Ending balance, June 30, 2022	Change in Unrealized Gains/(Losses) Related to Instruments Held at June 30, 2022
Mortgage servicing rights	162	3	—	—	165	3

(1) Includes net servicing cash flows and the passage of time.

    For Level 3 assets measured at fair value on a recurring basis as of June 30, 2023 and March 31, 2023, the significant unobservable inputs used in the fair value measurements were as follows:

$ in thousands	Fair Value June 30, 2023	Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Mortgage servicing rights	147	Discounted Cash Flow	Weighted Average Constant Prepayment Rate (1)	3.86	%
			Option Adjusted Spread ("OAS") applied to Treasury curve	1000 basis points

$ in thousands	Fair Value March 31, 2023	Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Mortgage servicing rights	152	Discounted Cash Flow	Weighted Average Constant Prepayment Rate (1)	4.01	%
			Option Adjusted Spread ("OAS") applied to Treasury curve	1000 basis points

(1) Represents annualized loan repayment rate assumptions

    Certain assets are measured at fair value on a non-recurring basis. Such instruments are subject to fair value adjustments under certain circumstances (e.g. when there is evidence of impairment). The following table presents assets and liabilities that were measured at fair value on a non-recurring basis as of June 30, 2023 and March 31, 2023, and that are included in the Company’s Consolidated Statements of Financial Condition at these dates:

	Fair Value Measurements at June 30, 2023 Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
$ in thousands	(Level 1)		(Level 2)		(Level 3)
Collateral dependent loans	$	—	$	—	$	1,029	$	1,029
Other real estate owned	—		—		60		$	60

	Fair Value Measurements at March 31, 2023, Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
$ in thousands	(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	—	$	—	$	5,529	$	5,529
Other real estate owned	—		—		60		$	60

    For Level 3 assets measured at fair value on a non-recurring basis as of June 30, 2023 and March 31, 2023, the significant unobservable inputs used in the fair value measurements were as follows:

$ in thousands	Fair Value June 30, 2023		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Collateral dependent loans	$	1,029	Appraisal of collateral	Appraisal adjustments	7.5% cost to sell
Other real estate owned	60		Appraisal of collateral	Appraisal adjustments	7.5% cost to sell

$ in thousands	Fair Value March 31, 2023		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Impaired loans	$	5,529	Appraisal of collateral	Appraisal adjustments	7.5% cost to sell
Other real estate owned	60		Appraisal of collateral	Appraisal adjustments	7.5% cost to sell

    The fair values of collateral dependent impaired loans are determined using various valuation techniques, including consideration of appraised values and other pertinent real estate market data.

    Other real estate owned represents property acquired by the Bank in settlement of loans less costs to sell (i.e., through foreclosure, repossession or as an in-substance foreclosure).  These assets are recorded at the lower of their cost or fair value. At the time of acquisition of the real estate owned, the real property value is adjusted to its current fair value. Any subsequent adjustments will be to the lower of cost or fair value. As of June 30, 2023 and March 31, 2023, the Company had loans with a carrying value of $2.9 million and $5.6 million, respectively, for which formal foreclosure proceedings were in process.

XML

Fair Value of Financial Instruments

3 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value of Financial Instruments

FAIR VALUE OF FINANCIAL INSTRUMENTS    Disclosures regarding the fair value of financial instruments are required to include, in addition to the carrying value, the fair value of certain financial instruments, both assets and liabilities recorded on and off-balance sheet, for which it is practicable to estimate fair value. Accounting guidance defines financial instruments as cash, evidence of ownership of an entity, or a contract that conveys or imposes on an entity the contractual right or obligation to either receive or deliver cash or another financial instrument. The fair value of a financial instrument is discussed below. In cases where quoted market prices are not available, estimated fair values have been determined by the Bank using the best available data and estimation methodology suitable for each such category of financial instruments. For those loans and deposits with floating interest rates, it is presumed that estimated fair values generally approximate their recorded carrying value. The Bank's primary component of market risk is interest rate volatility. Fluctuations in interest rates will ultimately impact the Bank's fair value of all interest-earning assets and interest-bearing liabilities, other than those which are short-term in maturity.

    The carrying amounts and estimated fair values of the Bank’s financial instruments and estimation methodologies at June 30, 2023 and March 31, 2023 are as follows:

	June 30, 2023
$ in thousands	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	41,691	$	41,691	$	41,691	$	—	$	—
Securities available-for-sale	52,192		52,192		—		52,192		—
Securities held-to-maturity	2,237		2,107		—		2,107		—
Loans receivable	584,676		547,028		—		—		547,028
Accrued interest receivable	1,981		1,981		—		1,981		—
Mortgage servicing rights	147		147		—		—		147
Financial Liabilities:
Deposits	$	593,162	$	587,508	$	406,245	$	181,263	$	—
Advances from FHLB-NY	32,500		32,349		—		32,349		—
Other borrowed money	18,403		16,796		—		16,796		—
Accrued interest payable	718		718		—		718		—

	March 31, 2023
$ in thousands	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	42,552	$	42,552	$	42,552	$	—	$	—
Securities available-for-sale	53,843		53,843		—		53,843		—
Securities held-to-maturity	2,318		2,221		—		2,221		—
Loans receivable	592,667		567,029		—		—		567,029
Accrued interest receivable	1,911		1,911		—		1,911		—
Mortgage servicing rights	152		152		—		—		152
Financial Liabilities:
Deposits	$	600,429	$	594,736	$	418,432	$	176,304	$	—
Advances from FHLB-NY	35,000		35,238		—		35,238		—
Other borrowed money	15,903		14,575		—		14,575		—
Accrued interest payable	380		380		—		380		—

XML

Non-interest Revenue and Expense

3 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Revenue from Contract with Customer

NON-INTEREST REVENUE AND EXPENSE

    Topic 606 does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest income streams such as gains on sales of residential mortgage and SBA loans, income associated with servicing assets, and loan fees, including residential mortgage originations to be sold and prepayment and late fees charged across all loan categories are also not in scope of the guidance. Topic 606 is applicable to non-interest revenue streams, such as depository fees, service charges and commission revenues. However, the recognition of these revenue streams did not change significantly upon adoption of Topic 606. Non-interest revenue streams in-scope of Topic 606 are discussed below.

Depository fees and charges

    Depository fees and charges primarily relate to service fees on deposit accounts and fees earned from debit cards and check cashing transactions. Service fees on deposit accounts consist of ATM fees, NSF fees, account maintenance charges and

other deposit related fees. The revenue is recognized monthly when the Bank's performance obligations are complete, or as incurred for transaction-based fees in accordance with the fee schedules for the Bank's deposit products and services.

Loan fees and service charges

    Loan fees and service charges primarily relate to program management fees and fees earned in accordance with the Bank's standard lending fees (such as inspection and late charges). These standard lending fees are earned on a monthly basis upon receipt.

Other non-interest income

    Other non-interest income includes correspondent banking fees, revenue from the Bank's participation in JPMorgan Chase's Empowering Change program, and income associated with an advertising services agreement covering marketing and use of the Bank's office space with a third party. The revenue is recognized on a monthly basis.

Interchange income

    The Company earns interchange fees from debit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions are recognized daily, concurrently with the transaction processing services provided by an outsource technology solution and are presented on a net basis.

    The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended June 30, 2023 and 2022:

	Three Months Ended June 30,
$ in thousands	2023		2022
Non-interest income
In-scope of Topic 606
Depository fees and charges	$	577	$	555
Loan fees and service charges	50		116
Other non-interest income	59		10
Non-interest income (in-scope of Topic 606)	686		681
Non-interest income (out-of-scope of Topic 606)	69		28
Total non-interest income	$	755	$	709

    The following table sets forth other non-interest income and expense totals exceeding 1% of the aggregate of total interest income and non-interest income for any of the periods presented:

	Three Months Ended June 30,
$ in thousands	2023		2022
Other non-interest income:
Correspondent banking fees	$	—	$	—
Other	94		35
Total non-interest income	$	94	$	35
Other non-interest expense:
Advertising	$	69	$	153
Legal expense	93		71
Insurance and surety	309		296
Audit expense	166		151
Data lines / internet	106		96
Security services	19		74
Retail expenses	286		216
Director's fees	105		123
Other	637		578
Total non-interest expense	$	1,790	$	1,758

XML

Leases

3 Months Ended

Jun. 30, 2023

Leases [Abstract]

Lessee, Operating Leases

LEASES

    The Company applies Accounting Standards Codification Topic 842, Leases, ("ASC 842") to its leases. The Company has operating leases related to its administrative offices, seven retail branches and four ATM centers. Two of the operating leases are for branch locations where the Company had entered into a sale and leaseback transaction. The gain had been calculated utilizing the profit on sale in excess of the present value of the minimum lease payments, and the profit on the sale was deferred from gain recognition to be amortized into income over the terms of the leases in accordance with ASC 840. ASC 842 does not require previous sale and leaseback transactions accounted for under ASC 840 to be reassessed. As of June 30, 2023, operating ROU lease assets and related lease liabilities totaled $11.7 million and $12.5 million, respectively.

    As the implicit rates of the Company's existing leases are not readily determinable, the incremental borrowing rate used in determining the lease liability obligation for each individual lease was the FHLB-NY fixed-rate advance rates based on the remaining lease terms as of April 1, 2019.

    As of June 30, 2023, the Company had $171 thousand and $159 thousand of ROU asset and lease liability, respectively, for finance leases related to equipment. The ROU asset is included in Premises and Equipment, net, and the lease liability is included in Advances from the FHLB-NY and Other Borrowed Money on the statements of financial condition.

    The following tables present information about the Company's leases and the related lease costs as of and for the three months ended June 30, 2023:

	June 30, 2023
Weighted-average remaining lease term
Operating leases	5.0 years
Finance lease	2.4 years
Weighted-average discount rate
Operating leases	3.04	%
Finance lease	4.23	%

	Three Months Ended June 30,
$ in thousands	2023		2022
Operating lease expense	$	692	$	716
Finance lease cost
Amortization of right-of use asset	28		18
Interest on lease liability	2		—
Cash paid for amounts included in the measurement of lease liabilities
Operating leases	711		696
Finance lease	34		19

    Maturities of lease liabilities at June 30, 2023 are as follows:

$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2024	$	2,195	$	57
2025	2,705		63
2026	2,687		42
2027	2,440		5
2028	2,259		—
Thereafter	1,276		—
Total lease payments	13,562		167
Interest	(1,018)		(8)
Lease liability	$	12,544	$	159

XML

Impact of Recent Accounting Standards

3 Months Ended

Jun. 30, 2023

Accounting Standards Update and Change in Accounting Principle [Abstract]

New Accounting Pronouncements Not Yet Adopted

IMPACT OF RECENT ACCOUNTING STANDARDS

Accounting Standards Recently Adopted

On April 1, 2023, the Company adopted ASU No. 2016-13, "Financial Instruments - Credit Loss (Topic 326)" and its subsequent amendments, which replaces the guidance on recognition and measurement of credit losses for financial assets. The new requirements, known as the current expected credit loss model ("CECL") will require entities to adopt an impairment model based on expected losses rather than incurred losses. Under the CECL model, the allowance for credit losses ("ACL") is a valuation allowance that is deducted from the amortized cost basis of certain financial assets, including loans, held-to-maturity securities, and other receivables, to present the net carrying value at the amount expected to be collected. The measurement of expected credit losses is based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This differs from the incurred loss model, which delays recognition of credit losses until it is probable a loss has been incurred. The Company applied the new guidance with a cumulative-effect adjustment to retained earnings as of April 1, 2023, using the modified-retrospective

approach. Results for reporting periods beginning after April 1, 2023 are presented under CECL. Prior period amounts have not been restated and are reported in accordance with the incurred loss method. The adoption of ASU 2016-13 resulted in an increase of $0.7 million to the allowance for credit losses related to loans. There was no material impact for other assets within the scope of the new CECL guidance, such as held-to-maturity debt securities and other receivables.

On April 1, 2023, the Company adopted ASU No. 2022-02, "Financial Instruments - Credit Losses (ASC 326): Troubled Debt Restructurings (TDRs) and Vintage Disclosures," which eliminates the accounting guidance for TDRs, and replaced it with guidance and disclosure requirements for certain loan refinancing and restructuring activities to borrowers experiencing financial difficulty. The amendments also require disclosure of current period gross writeoffs by year of origination. The adoption of the standard did not have a material impact on the Company's consolidated statements of financial condition and results of operations..

On April 1, 2023, the Company adopted ASU No. 2021-10 "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance," which was issued to improve the financial reporting of government assistance received by business entities by requiring the disclosure of (1) the types of assistance received, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. The adoption of the standard did not have a material impact on the Company's consolidated statements of financial condition and results of operations.

On April 1, 2021, the Company adopted ASU No. 2019-12 "Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes," which was part of the FASB's simplification initiative to reduce complexity, while maintaining or improving the usefulness of information provided to users of financial statements. The amendments in this update simplified the accounting for income taxes and improved consistent application of GAAP by removing certain exceptions and clarifying and amending existing guidance for areas of Topic 740. The adoption of the standard did not have a material impact on the Company's financial statements.

Accounting Standards Not Yet Adopted

In March 2020, the FASB issued ASU No. 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest rate and the modification will be considered "minor" so that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 is effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in this ASU must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. In December 2022, the FASB issued ASU No. 2022-06 "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848," which defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply for relief in Topic 848. We anticipate this ASU will simplify any modifications we execute between the selected start date (yet to be determined) and December 31, 2024 that are directly related to LIBOR transition by allowing prospective recognition of the continuation of the contract, rather than extinguishment of the old contract resulting in writing off unamortized fees/costs. The Company is evaluating the impacts of this ASU and has not yet determined whether LIBOR transition and this ASU will have a material impact on the Company's consolidated statements of financial condition and results of operations.

XML

Subsequent Events	3 Months Ended
	Jun. 30, 2023
Subsequent Events [Abstract]
Subsequent Events	SUBSEQUENT EVENTSOn July 19, 2023, the Company entered into an agreement with National Community Investment Fund, under which it sold 378,788 shares of its common stock, par value $0.01 per share, at a purchase price of $2.64 per share in a private placement for gross proceeds of approximately $1.0 million. The Company intends to use the net proceeds of the private placement for general corporate purposes. The issuance of the shares is exempt from registration pursuant to under Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D of the rules and regulations promulgated thereunder. On August 9, 2023, the Company announced that Michael T. Pugh will leave his positions as Chief Executive Officer and President and director of both the Company and the Bank, effective September 30, 2023, to pursue professional and philanthropic interests on a national level. A national search will be conducted by the Company to find a permanent Chief Executive Officer and President through an executive search process.

XML

Summary of Significant Accounting Policies (Policies)

3 Months Ended

Jun. 30, 2023

Accounting Policies [Abstract]

Basis of Presentation and Significant Accounting Policies

Basis of consolidated financial statement presentation

    The consolidated financial statements include the accounts of the Company, the Bank and the Bank’s wholly-owned or majority-owned subsidiaries, Carver Asset Corporation, CFSB Realty Corp., CCDC, and CFSB Credit Corp., which is currently inactive. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company's subsidiary, Carver Statutory Trust I, is not consolidated with Carver Bancorp, Inc. for financial reporting purposes.  Carver Statutory Trust I was formed in 2003 for the purpose of issuing $13 million aggregate liquidation amount of floating rate Capital Securities due September 17, 2033 (“Capital Securities”) and $0.4 million of common securities (which are the only voting securities of Carver Statutory Trust I), which are 100% owned by Carver Bancorp, Inc., and using the proceeds to acquire Junior Subordinated Debentures issued by Carver Bancorp, Inc.  Carver Bancorp, Inc. has fully and unconditionally guaranteed the Capital Securities along with all obligations of Carver Statutory Trust I under the trust agreement relating to the Capital Securities. The Company does not consolidate the accounts and related activity of Carver Statutory Trust I because it is not the primary beneficiary of the entity.

Variable interest entities ("VIEs") are consolidated, as required, when Carver has a controlling financial interest in these entities and is deemed to be the primary beneficiary. Carver is normally deemed to have a controlling financial interest and be the primary beneficiary if it has both (a) the power to direct activities of a VIE that most significantly impact the entity's economic performance; and (b) the obligation to absorb losses of the entity that could benefit from the activities that could potentially be significant to the VIE.

    The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. Operating results for the three month period ended June 30, 2023 are not necessarily indicative of the results that may be expected for the year ended March 31, 2024. The consolidated balance sheet at June 30, 2023 has been derived from the unaudited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statement of financial condition and revenues and expenses for the period then ended. These unaudited consolidated financial statements should be read in conjunction with the Annual Report on Form 10-K for the year ended March 31, 2023. Amounts subject to significant estimates and assumptions are items such as the allowance for credit loss, realization of deferred tax assets, assessment of other-than-temporary impairment of securities available-for-sale, and the fair value of financial instruments. While management uses available information to recognize losses on loans, future additions to the allowance for credit loss or future writedowns of real estate owned may be necessary based on changes in economic conditions in the areas where Carver Federal has extended mortgages and other credit instruments. Actual results could differ

significantly from those assumptions. Current market conditions increase the risk and complexity of the judgments in these estimates.

Certain comparative amounts for the prior period have been reclassified to conform to current period presentations. Such reclassifications had no effect on net income or shareholders' equity.

XML

Earnings Per Common Share (Tables)

3 Months Ended

Jun. 30, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table reconciles the loss available to common shareholders (numerator) and the weighted average common stock outstanding (denominator) for both basic and diluted loss per share for the following periods:

	Three Months Ended June 30,
$ in thousands except per share data	2023		2022
Net loss	$	(1,421)	$	(857)
Weighted average common shares outstanding - basic	4,496,782		4,229,209
Weighted average common shares outstanding – diluted	4,496,782		4,229,209
Basic loss per common share	$	(0.32)	$	(0.20)
Diluted loss per common share	(0.32)		(0.20)

The Company has preferred stock which are entitled to receive dividends if declared on the Company's common stock and are therefore considered to be participating securities. Basic earnings (loss) per share (“EPS”) is computed using the two class method. This calculation divides net income (loss) available to common stockholders after the allocation of undistributed earnings to the participating securities by the weighted average number of shares of common stock outstanding during the period.  Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. These potentially dilutive shares are then included in the weighted average number of shares outstanding for the period. Dilution calculations are not applicable to net loss periods. For the three months ended June 30, 2023 and 2022, all restricted shares and outstanding stock options were anti-dilutive.

XML

Other Comprehensive Income (Loss) (Tables)

3 Months Ended

Jun. 30, 2023

Statement of Comprehensive Income [Abstract]

Schedule of Accumulated Other Comprehensive Income (Loss)

The following tables set forth changes in each component of accumulated other comprehensive loss, net of tax for the three months ended June 30, 2023 and 2022:

$ in thousands	At March 31, 2023		Other Comprehensive Loss, net of tax		At June 30, 2023
Net unrealized loss on securities available-for-sale	$	(12,215)	$	(793)	$	(13,008)

$ in thousands	At March 31, 2022		Other Comprehensive Income, net of tax		At June 30, 2022
Net unrealized loss on securities available-for-sale	$	(6,662)	$	(3,614)	$	(10,276)

XML

Investment Securities (Tables)

3 Months Ended

Jun. 30, 2023

Investments, Debt and Equity Securities [Abstract]

Unrealized Gain (Loss) on Investments

The following tables set forth the amortized cost and fair value of securities available-for-sale and held-to-maturity at June 30, 2023 and March 31, 2023:

	At June 30, 2023
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	316	$	—	$	4	$	312
Federal Home Loan Mortgage Corporation	21,281		—		4,607		16,674
Federal National Mortgage Association	11,510		—		2,262		9,248
Total mortgage-backed securities	33,107		—		6,873		26,234
U.S. Government Agency Securities	9,112		—		30		9,082
Corporate Bonds	5,268		—		2,182		3,086
Muni Securities	17,713		—		3,923		13,790
Total available-for-sale	$	65,200	$	—	$	13,008	$	52,192
Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	347	$	—	$	9	$	338
Federal National Mortgage Association and Other	1,890		—		121		1,769
Total held-to maturity	$	2,237	$	—	$	130	$	2,107

	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 and Other	1,952		—		94		1,858
Total held-to-maturity	$	2,318	$	—	$	97	$	2,221

Schedule of Unrealized Loss on Investments

The following tables set forth the unrealized losses and fair value of securities in an unrealized loss position at June 30, 2023 and March 31, 2023 for less than 12 months and 12 months or longer:

	At June 30, 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	$	3	$	270	$	6,870	$	25,964	$	6,873	$	26,234
U.S. Government Agency securities	—		—		30		9,082		30		9,082
Corporate bonds	—		—		2,182		3,086		2,182		3,086
Muni securities	—		—		3,923		13,790		3,923		13,790
Total available-for-sale securities	$	3	$	270	$	13,005	$	51,922	$	13,008	$	52,192
Held-to-Maturity:
Mortgage-backed securities	$	9	$	338	$	121	$	1,734	$	130	$	2,072
Total held-to-maturity securities	$	9	$	338	$	121	$	1,734	$	130	$	2,072

	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

Investments Classified by Contractual Maturity Date

The following is a summary of the amortized cost and fair value of debt securities at June 30, 2023, 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:
Five through ten years	5,540		5,157		4.63	%
After ten years	26,553		20,801		3.47	%
Mortgage-backed securities	33,107		26,234		1.62	%
Total	$	65,200	$	52,192	2.66	%
Held-to-maturity:
Mortgage-backed securities	$	2,237	$	2,107	2.8	%

XML

Loans Receivable and ACL (Tables)

3 Months Ended

Jun. 30, 2023

Loans and Leases Receivable Disclosure [Abstract]

Loans Receivable and ACL

The following is a summary of loans receivable at June 30, 2023 and March 31, 2023:

	June 30, 2023				March 31, 2023
$ in thousands	Amount		Percent		Amount		Percent
Loans receivable:
One-to-four family	$	65,526	11.1	%	$	65,808	11.0	%
Multifamily	178,815		30.3	%	179,117		30.0	%
Commercial real estate	173,088		29.3	%	178,424		29.8	%
Business (1)	163,348		27.7	%	166,908		27.9	%
Consumer (2)	9,757		1.6	%	7,639		1.3	%
Total loans receivable	$	590,534	100.0	%	$	597,896	100.0	%
Allowance for credit losses	(5,858)				(5,229)
Total loans receivable, net	$	584,676			$	592,667

(1) Includes PPP loans and business overdrafts

(2) Includes personal loans and consumer overdrafts

Allowance for Credit Losses

The following is an analysis of the allowance for credit losses based upon the method of evaluating loan reserves for the three months ended June 30, 2023 under the expected loss methodology.

Three months ended June 30, 2023
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	716	$	1,109	$	1,814	$	1,139	$	449	$	2	$	5,229
Impact of CECL adoption	1,220		(392)		(497)		505		(166)		(2)		668
Charge-offs	—		—		—		—		(95)		—		(95)
Recoveries	—		—		—		49		1		—		50
Provision for (recovery of) Credit Losses	127		(4)		(53)		(289)		225		—		6
Ending Balance	$	2,063	$	713	$	1,264	$	1,404	$	414	$	—	$	5,858
Allowance for Credit Losses Ending Balance: collectively evaluated for impairment	$	1,962	$	713	$	1,264	$	1,392	$	414	$	—	$	5,745
Allowance for Credit Losses Ending Balance: individually evaluated for impairment	101		—		—		12		—		—		113
Loan Receivables Ending Balance:	$	65,526	$	178,815	$	173,088	$	163,348	$	9,757	$	—	$	590,534
Ending Balance: collectively evaluated for impairment	60,386		176,508		168,566		152,424		9,756		—		567,640
Ending Balance: individually evaluated for impairment	5,140		2,307		4,522		10,924		1		—		22,894

The following is an analysis of the allowance for loan losses as of the fiscal year ended March 31, 2023 and for the three months ended June 30, 2022 based upon the incurred loss impairment model.

At March 31, 2023
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for Loan Losses 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 impairment	109		—		—		202		—		—		311
Loan Receivables Ending Balance:	$	65,808	$	179,117	$	178,424	$	166,908	$	7,639	$	—	$	597,896
Ending Balance: collectively evaluated for impairment	60,805		179,046		171,234		160,985		7,638		—		579,708
Ending Balance: individually evaluated for impairment	5,003		71		7,190		5,923		1		—		18,188

Three months ended June 30, 2022
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	731	$	1,114	$	1,157	$	2,497	$	123	$	2	$	5,624
Charge-offs	—		—		—		—		(13)		—		(13)
Recoveries	—		—		—		19		1		—		20
Provision for (recovery of) Loan Losses	(82)		(61)		(49)		(195)		2		358		(27)
Ending Balance	$	649	$	1,053	$	1,108	$	2,321	$	113	$	360	$	5,604

Nonaccrual Loans

The following is a summary of nonaccrual loans, at amortized cost, at June 30, 2023 and March 31, 2023.

	June 30, 2023						March 31, 2023
$ in thousands	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance		Total Nonaccrual Loans		Nonaccrual Loans
Gross loans receivable:
One-to-four family	$	4,154	$	—	$	4,154	$	4,001
Multifamily	824		—		$	824	71
Commercial real estate	4,522		—		$	4,522	7,190
Business	6,088		10		$	6,098	998
Consumer	1		—		$	1	1
Total nonaccrual loans	$	15,589	$	10	$	15,599	$	12,261

Credit Quality Indicators

:

$ in thousands	2023		2022		2021		2020		2019		2018 and earlier		Revolving Loans		Total
Credit Risk Profile by Internally Assigned Grade:
Multifamily
Pass	$	3,287	$	54,039	$	51,796	$	28,328	$	18,088	$	20,172	$	—	$	175,710
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		1,483		1,560		—		62		—		3,105
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	3,287		54,039		53,279		29,888		18,088		20,234		—		178,815
Commercial Real Estate
Pass	8,383		31,662		28,022		17,289		21,172		61,344		—		167,872
Special Mention	—		—		—		—		—		694		—		694
Substandard	—		—		—		—		—		4,522		—		4,522
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	8,383		31,662		28,022		17,289		21,172		66,560		—		173,088
Business
Pass	8,454		42,152		49,728		11,037		401		42,070		—		153,842
Special Mention	—		—		7,326		—		—		16		—		7,342
Substandard	—		—		—		—		193		1,971		—		2,164
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	8,454		42,152		57,054		11,037		594		44,057		—		163,348
Credit Risk Profile Based on Payment Activity:
One-to-four Family
Performing	1,610		3,876		13,562		1,448		9,127		31,778		—		61,401
Non-Performing	—		—		—		—		—		4,125		—		4,125
Total	1,610		3,876		13,562		1,448		9,127		35,903		—		65,526
Consumer
Performing	7,769		803		17		30		—		1,137		—		9,756
Non-Performing	—		1		—		—		—		—		—		1
Total	7,769		804		17		30		—		1,137		—		9,757
Gross charge-offs	—		—		—		—		—		95		—		95
Total	$	29,503	$	132,533	$	151,934	$	59,692	$	48,981	$	167,891	$	—	$	590,534

    At March 31, 2023, 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	$	175,981	$	170,534	$	154,056
Special Mention	771		701		5,719
Substandard	2,365		7,189		7,133
Total	$	179,117	$	178,424	$	166,908
			One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing			$	60,629	$	7,639
Non-Performing			5,179		—
Total			$	65,808	$	7,639

Past Due Financing Receivables

The following table presents an aging analysis of the amortized cost of past due loans receivables at June 30, 2023 and March 31, 2023.

.

June 30, 2023
$ in thousands	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivables
One-to-four family	$	—	$	263	$	2,649	$	2,912	$	62,614	$	65,526
Multifamily	—		551		1,078		1,629		177,186		178,815
Commercial real estate	—		—		4,522		4,522		168,566		173,088
Business	—		11,652		2,528		14,180		149,168		163,348
Consumer	—		73		32		105		9,652		9,757
Total	$	—	$	12,539	$	10,809	$	23,348	$	567,186	$	590,534

March 31, 2023
$ in thousands	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivables
One-to-four family	$	1,207	$	185	$	2,475	$	3,867	$	61,941	$	65,808
Multifamily	1,458		—		71		1,529		177,588		179,117
Commercial real estate	1,370		—		—		1,370		177,054		178,424
Business	11,006		—		5,014		16,020		150,888		166,908
Consumer	99		26		34		159		7,480		7,639
Total	$	15,140	$	211	$	7,594	$	22,945	$	574,951	$	597,896

Impaired Loans

The following table presents the amortized cost of collateral dependent loans with the associated allowance amount, if applicable, as of June 30, 2023:

	Collateral Type
$ in thousands	Real Estate		Other		Allowance Allocated
One-to-four family	$	5,140	$	—	$	101
Multifamily	2,307		—		—
Commercial real estate	4,522		—		—
Business	10,731		193		12
Consumer	1		—		—
	$	22,701	$	193	$	113

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.

	At March 31, 2023
$ in thousands	Recorded Investment		Unpaid Principal Balance		Associated Allowance		Average Balance		Interest Income Recognized
With no specific allowance recorded:
One-to-four family	$	3,972	$	4,567	$	—	$	3,861	$	111
Multifamily	71		71		—		220		—
Commercial real estate	7,190		7,378		—		4,054		36
Business	1,114		1,146		—		1,723		—
Consumer	1		1		—		—		—
With an allowance recorded:
One-to-four family	1,031		1,031		109		554		41
Business	4,809		4,820		202		5,116		316
Total	$	18,188	$	19,014	$	311	$	15,528	$	504

XML

Fair Value Measurements (Tables)

3 Months Ended

Jun. 30, 2023

Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Abstract]

Fair Value, Assets Measured on Recurring Basis

The following table presents, by valuation hierarchy, assets that are measured at fair value on a recurring basis as of June 30, 2023 and March 31, 2023, and that are included in the Company’s Consolidated Statements of Financial Condition at these dates:

	Fair Value Measurements at June 30, 2023, Using
$ in thousands	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Mortgage servicing rights	$	—	$	—	$	147	$	147
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		312		—		312
Federal Home Loan Mortgage Corporation	—		16,674		—		16,674
Federal National Mortgage Association	—		9,248		—		9,248
U.S. Government Agency securities	—		9,082		—		9,082
Corporate bonds	—		3,086		—		3,086
Muni securities	—		13,790		—		13,790
Total available-for-sale securities	—		52,192		—		52,192
Total assets	$	—	$	52,192	$	147	$	52,339

	Fair Value Measurements at March 31, 2023, Using
$ in thousands	Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)		Total Fair Value
Mortgage servicing rights	$	—	$	—	$	152	$	152
Investment securities
Available-for-sale:
Mortgage-backed securities:
Government National Mortgage Association	—		341		—		341
Federal Home Loan Mortgage Corporation	—		17,600		—		17,600
Federal National Mortgage Association	—		9,502		—		9,502
U.S. Government Agency securities	—		9,326		—		9,326
Corporate bonds	—		3,092		—		3,092
Muni securities	—		13,982		—		13,982
Total available-for-sale securities	—		53,843		—		53,843
Total assets	$	—	$	53,843	$	152	$	53,995

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation

The following table includes a rollforward of assets classified by the Company within Level 3 of the valuation hierarchy for the three months ended June 30, 2023 and 2022:

$ in thousands	Beginning balance, April 1, 2023	Total Realized/Unrealized Gains/(Losses) Recorded in Income (1)	Issuances / (Settlements)	Transfers to/(from) Level 3	Ending balance, June 30, 2023	Change in Unrealized Gains/(Losses) Related to Instruments Held at June 30, 2023
Mortgage servicing rights	152	(5)	—	—	147	(5)

$ in thousands	Beginning balance, April 1, 2022	Total Realized/Unrealized Gains/(Losses) Recorded in Income (1)	Issuances / (Settlements)	Transfers to/(from) Level 3	Ending balance, June 30, 2022	Change in Unrealized Gains/(Losses) Related to Instruments Held at June 30, 2022
Mortgage servicing rights	162	3	—	—	165	3

Fair Value, Assets Measured on Recurring Basis, Valuation Techniques

For Level 3 assets measured at fair value on a recurring basis as of June 30, 2023 and March 31, 2023, the significant unobservable inputs used in the fair value measurements were as follows:

$ in thousands	Fair Value June 30, 2023	Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Mortgage servicing rights	147	Discounted Cash Flow	Weighted Average Constant Prepayment Rate (1)	3.86	%
			Option Adjusted Spread ("OAS") applied to Treasury curve	1000 basis points

$ in thousands	Fair Value March 31, 2023	Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Mortgage servicing rights	152	Discounted Cash Flow	Weighted Average Constant Prepayment Rate (1)	4.01	%
			Option Adjusted Spread ("OAS") applied to Treasury curve	1000 basis points

(1) Represents annualized loan repayment rate assumptions

Fair Value Measurements, Nonrecurring

The following table presents assets and liabilities that were measured at fair value on a non-recurring basis as of June 30, 2023 and March 31, 2023, and that are included in the Company’s Consolidated Statements of Financial Condition at these dates:

	Fair Value Measurements at June 30, 2023 Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
$ in thousands	(Level 1)		(Level 2)		(Level 3)
Collateral dependent loans	$	—	$	—	$	1,029	$	1,029
Other real estate owned	—		—		60		$	60

	Fair Value Measurements at March 31, 2023, Using
	Quoted Prices in Active Markets for Identical Assets		Significant Other Observable Inputs		Significant Unobservable Inputs		Total Fair Value
$ in thousands	(Level 1)		(Level 2)		(Level 3)
Impaired loans	$	—	$	—	$	5,529	$	5,529
Other real estate owned	—		—		60		$	60

Fair Value, Assets Measured on Nonrecurring Basis, Valuation Techniques

For Level 3 assets measured at fair value on a non-recurring basis as of June 30, 2023 and March 31, 2023, the significant unobservable inputs used in the fair value measurements were as follows:

$ in thousands	Fair Value June 30, 2023		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Collateral dependent loans	$	1,029	Appraisal of collateral	Appraisal adjustments	7.5% cost to sell
Other real estate owned	60		Appraisal of collateral	Appraisal adjustments	7.5% cost to sell

$ in thousands	Fair Value March 31, 2023		Valuation Technique	Significant Unobservable Inputs	Significant Unobservable Input Value
Impaired loans	$	5,529	Appraisal of collateral	Appraisal adjustments	7.5% cost to sell
Other real estate owned	60		Appraisal of collateral	Appraisal adjustments	7.5% cost to sell

XML

Fair Value of Financial Instruments (Tables)

3 Months Ended

Jun. 30, 2023

Fair Value Disclosures [Abstract]

Fair Value, by Balance Sheet Grouping

The carrying amounts and estimated fair values of the Bank’s financial instruments and estimation methodologies at June 30, 2023 and March 31, 2023 are as follows:

	June 30, 2023
$ in thousands	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	41,691	$	41,691	$	41,691	$	—	$	—
Securities available-for-sale	52,192		52,192		—		52,192		—
Securities held-to-maturity	2,237		2,107		—		2,107		—
Loans receivable	584,676		547,028		—		—		547,028
Accrued interest receivable	1,981		1,981		—		1,981		—
Mortgage servicing rights	147		147		—		—		147
Financial Liabilities:
Deposits	$	593,162	$	587,508	$	406,245	$	181,263	$	—
Advances from FHLB-NY	32,500		32,349		—		32,349		—
Other borrowed money	18,403		16,796		—		16,796		—
Accrued interest payable	718		718		—		718		—

	March 31, 2023
$ in thousands	Carrying Amount		Estimated Fair Value		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
Financial Assets:
Cash and cash equivalents	$	42,552	$	42,552	$	42,552	$	—	$	—
Securities available-for-sale	53,843		53,843		—		53,843		—
Securities held-to-maturity	2,318		2,221		—		2,221		—
Loans receivable	592,667		567,029		—		—		567,029
Accrued interest receivable	1,911		1,911		—		1,911		—
Mortgage servicing rights	152		152		—		—		152
Financial Liabilities:
Deposits	$	600,429	$	594,736	$	418,432	$	176,304	$	—
Advances from FHLB-NY	35,000		35,238		—		35,238		—
Other borrowed money	15,903		14,575		—		14,575		—
Accrued interest payable	380		380		—		380		—

XML

Non-interest Revenue and Expense (Tables)

3 Months Ended

Jun. 30, 2023

Revenue from Contract with Customer [Abstract]

Disaggregation of Revenue

The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three months ended June 30, 2023 and 2022:

	Three Months Ended June 30,
$ in thousands	2023		2022
Non-interest income
In-scope of Topic 606
Depository fees and charges	$	577	$	555
Loan fees and service charges	50		116
Other non-interest income	59		10
Non-interest income (in-scope of Topic 606)	686		681
Non-interest income (out-of-scope of Topic 606)	69		28
Total non-interest income	$	755	$	709

Schedule of Other Operating Cost and Expense, by Component [Table Text Block]

The following table sets forth other non-interest income and expense totals exceeding 1% of the aggregate of total interest income and non-interest income for any of the periods presented:

	Three Months Ended June 30,
$ in thousands	2023		2022
Other non-interest income:
Correspondent banking fees	$	—	$	—
Other	94		35
Total non-interest income	$	94	$	35
Other non-interest expense:
Advertising	$	69	$	153
Legal expense	93		71
Insurance and surety	309		296
Audit expense	166		151
Data lines / internet	106		96
Security services	19		74
Retail expenses	286		216
Director's fees	105		123
Other	637		578
Total non-interest expense	$	1,790	$	1,758

XML

Leases (Tables)

3 Months Ended

Jun. 30, 2023

Leases [Abstract]

Lease, Cost

The following tables present information about the Company's leases and the related lease costs as of and for the three months ended June 30, 2023:

	June 30, 2023
Weighted-average remaining lease term
Operating leases	5.0 years
Finance lease	2.4 years
Weighted-average discount rate
Operating leases	3.04	%
Finance lease	4.23	%

	Three Months Ended June 30,
$ in thousands	2023		2022
Operating lease expense	$	692	$	716
Finance lease cost
Amortization of right-of use asset	28		18
Interest on lease liability	2		—
Cash paid for amounts included in the measurement of lease liabilities
Operating leases	711		696
Finance lease	34		19

Lessee, Lease Liability, Maturity

Maturities of lease liabilities at June 30, 2023 are as follows:

$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2024	$	2,195	$	57
2025	2,705		63
2026	2,687		42
2027	2,440		5
2028	2,259		—
Thereafter	1,276		—
Total lease payments	13,562		167
Interest	(1,018)		(8)
Lease liability	$	12,544	$	159

XML

Organization Text Tags (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended	12 Months Ended
	Jun. 30, 2023	Mar. 31, 2003	Mar. 31, 2023	Sep. 17, 2003	Oct. 24, 1994
Organization, Consolidation and Presentation of Financial Statements [Abstract]
Common Stock, Shares Issued (in shares)	7,017,532		6,799,410		2,314,375
Common Stock, Par Value (in dollars per share)	$ 0.01		$ 0.01		$ 0.01
subordinated debt issued shares				13,000
Liquidation amount subordinated debt (in dollars per share)				$ 1,000
Proceeds from Issuance of Long-term Debt		$ 13,000
Proceeds from (Payments for) Other Financing Activities		400
Payments for Repurchase of Trust Preferred Securities		$ 13,400
Debt Instrument, Basis Spread on Variable Rate	3.05%
Debt Instrument, Interest Rate During Period	8.56%
Interest Payable	$ 35

XML

Summary of Significant Accounting Policies Text Tags (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Earnings (Accumulated Deficit)	$ (49,993)	$ (47,904)
Cumulative Effect, Period of Adoption, Adjustment [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Earnings (Accumulated Deficit)	$ (668)

XML

Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Earnings Per Share [Abstract]
Net loss	$ (1,421)	$ (857)
Weighted average common shares outstanding - basic (in shares)	4,496,782	4,229,209
Weighted average common shares outstanding - diluted (in shares)	4,496,782	4,229,209
Earnings (loss) per Share, Basic (in dollars per share)	$ (0.32)	$ (0.20)
Earnings (loss) per Share, Diluted (in dollars per share)	$ (0.32)	$ (0.20)

XML

Common Stock Dividends and Issuances Text Tags (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended						9 Months Ended	12 Months Ended
	Jun. 30, 2023	Dec. 31, 2021	Sep. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Jun. 30, 2020	Dec. 31, 2011	Mar. 31, 2023	Mar. 31, 2022	Mar. 31, 2021	Sep. 27, 2021	Feb. 16, 2021	Feb. 01, 2021	Oct. 15, 2020	Oct. 28, 2011
Dividends [Abstract]
Stock Issued During Period, Shares, Other							2,321,286
Conversion of Stock, Shares Converted	1,650			475		13,519	1,208,039	550	3,850
Convertible Preferred Stock, Shares Outstanding (in shares)															45,118
Conversion of Stock, Shares Issued	201,795			58,093		1,653,397		67,265	470,855
Treasury Stock, Shares, Acquired										2,321,286
Payments for Repurchase of Equity										$ 2,500
Stock Issued During Period, Shares, New Issues		397,367
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues		397,367
Proceeds from Issuance of Private Placement			$ 4,000	$ 4,400						$ 6,000
Conversion of Stock, Shares Converted	1,650			475		13,519	1,208,039	550	3,850
Issuance of common stock									$ 3,000
Common Stock
Dividends [Abstract]
Stock Issued During Period, Shares, New Issues				157,806	147,227					112,612
Sale of Stock, Price Per Share												$ 8.88	$ 7.75	$ 6.62
Class of Stock [Line Items]
Stock Repurchased and Retired During Period, Shares										180,573
Stock Issued During Period, Shares, New Issues				157,806	147,227					112,612
Sale of Stock, Price Per Share												8.88	7.75	$ 6.62
Series F Preferred Stock
Dividends [Abstract]
Convertible Preferred Stock, Shares Outstanding (in shares)	9,000							9,000
Stock Issued During Period, Shares, New Issues			4,000	5,000
Sale of Stock, Price Per Share											$ 1,000	1,000
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues			4,000	5,000
Sale of Stock, Price Per Share											$ 1,000	$ 1,000
Series D Preferred Stock
Dividends [Abstract]
Convertible Preferred Stock, Shares Outstanding (in shares)	11,551							13,201
Class of Stock [Line Items]
Stock Repurchased and Retired During Period, Shares										13,523
Series E Preferred Stock
Dividends [Abstract]
Convertible Preferred Stock, Shares Outstanding (in shares)	3,177							3,177
Stock Issued During Period, Shares, New Issues				3,177
Sale of Stock, Price Per Share													1,000
Class of Stock [Line Items]
Stock Issued During Period, Shares, New Issues				3,177
Sale of Stock, Price Per Share													$ 1,000

XML

Components of Accumulated Other Comprehensive Income (Loss) (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Accumulated Other Comprehensive Loss, Available-for-sale Securities Adjustment, Net of Tax	$ (12,215)	$ (6,662)
Other comprehensive loss, net of taxes	(793)	(3,614)
Accumulated Other Comprehensive Loss, Available-for-sale Securities Adjustment, Net of Tax	$ (13,008)	$ (10,276)

XML

Other Comprehensive Income (Loss) (Details) Text Tags - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Statement of Comprehensive Income [Abstract]
Other Comprehensive Income (Loss), Reclassification Adjustment from AOCI for Sale of Securities, Net of Tax	$ 0	$ 0

XML

Investment Securities Text Tags (Details)	3 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2023 USD ($)
Schedule of Investments [Line Items]
Debt Securities, Available-for-sale, Unrealized Loss Position, Number of Positions	25		24
Debt Securities, Available-for-sale	$ 52,192,000		$ 53,843,000
Percentage Available-for-sale Securities	95.90%
Debt Securities, Held-to-maturity	$ 2,237,000		2,318,000
Percentage Held-to-maturity Securities	4.10%
Trading	$ 0		0
Bank Owned Life Insurance	5,200,000
Other Investments	6,200,000
Proceeds from Sale of Debt Securities, Available-for-sale	0	$ 0
Debt Securities, Available-for-Sale, Allowance for Credit Loss	0
Debt Securities, Held-to-Maturity, Allowance for Credit Loss	$ 0
Mortgage-backed securities
Schedule of Investments [Line Items]
Percentage Available-for-Sale, Continuos Unrealized Loss Position	50.30%
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions	8
Debt Securities, Available-for-sale	$ 26,234,000		27,443,000
US Government Agency Securities
Schedule of Investments [Line Items]
Percentage Available-for-Sale, Continuos Unrealized Loss Position	17.40%
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions	3
Debt Securities, Available-for-sale	$ 9,082,000		9,326,000
Municipal Securities
Schedule of Investments [Line Items]
Percentage Available-for-Sale, Continuos Unrealized Loss Position	26.40%
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions	6
Debt Securities, Available-for-sale	$ 13,790,000		13,982,000
Corporate Bonds
Schedule of Investments [Line Items]
Percentage Available-for-Sale, Continuos Unrealized Loss Position	5.90%
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions	1
Debt Securities, Available-for-sale	$ 3,086,000		$ 3,092,000
Asset-backed Securities
Schedule of Investments [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Number of Positions	0

XML

Investment Securities-Unrealized Gain (Loss) on Investments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, Amortized Cost	$ 65,200	$ 66,058
Available-for-sale, Gross Unrealized Gains	0	1
Available-for-sale, Gross Unrealized Losses	13,008	12,216
Available-for-sale	52,192	53,843
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity, Total	2,237	2,318
Held-to-maturity, Gross Unrealized Gains	0	0
Held-to-maturity, Gross Unrealized Losses	130	97
Held-to-maturity, Fair Value	2,107	2,221
Government National Mortgage Association (GNMA)
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, Amortized Cost	316	341
Available-for-sale, Gross Unrealized Gains	0	1
Available-for-sale, Gross Unrealized Losses	4	1
Available-for-sale	312	341
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity, Total	347	366
Held-to-maturity, Gross Unrealized Gains	0	0
Held-to-maturity, Gross Unrealized Losses	9	3
Held-to-maturity, Fair Value	338	363
Federal Home Loan Mortgage Corporation (FHLMC)
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, Amortized Cost	21,281	21,651
Available-for-sale, Gross Unrealized Gains	0	0
Available-for-sale, Gross Unrealized Losses	4,607	4,051
Available-for-sale	16,674	17,600
Federal National Mortgage Association (FNMA)
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, Amortized Cost	11,510	11,714
Available-for-sale, Gross Unrealized Gains	0	0
Available-for-sale, Gross Unrealized Losses	2,262	2,212
Available-for-sale	9,248	9,502
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity, Total	1,890	1,952
Held-to-maturity, Gross Unrealized Gains	0	0
Held-to-maturity, Gross Unrealized Losses	121	94
Held-to-maturity, Fair Value	1,769	1,858
Mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, Amortized Cost	33,107	33,706
Available-for-sale, Gross Unrealized Gains	0	1
Available-for-sale, Gross Unrealized Losses	6,873	6,264
Available-for-sale	26,234	27,443
US Government Agency Securities
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, Amortized Cost	9,112	9,364
Available-for-sale, Gross Unrealized Gains	0	0
Available-for-sale, Gross Unrealized Losses	30	38
Available-for-sale	9,082	9,326
Corporate Bonds
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, Amortized Cost	5,268	5,269
Available-for-sale, Gross Unrealized Gains	0	0
Available-for-sale, Gross Unrealized Losses	2,182	2,177
Available-for-sale	3,086	3,092
Municipal Securities
Debt Securities, Available-for-sale [Line Items]
Available-for-sale, Amortized Cost	17,713	17,719
Available-for-sale, Gross Unrealized Gains	0	0
Available-for-sale, Gross Unrealized Losses	3,923	3,737
Available-for-sale	$ 13,790	$ 13,982

XML

Investment Securities-Schedule of Unrealized Loss (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	$ 3	$ 13
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	270	4,075
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	13,005	12,203
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	51,922	49,471
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	13,008	12,216
Debt Securities, Available-for-sale, Unrealized Loss Position	52,192	53,546
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	9	3
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	338	363
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	121	94
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	1,734	1,822
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss	130	97
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value	2,072	2,185
Mortgage-backed securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	3	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	270	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	6,870	6,264
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	25,964	27,146
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	6,873	6,264
Debt Securities, Available-for-sale, Unrealized Loss Position	26,234	27,146
Schedule of Held-to-maturity Securities [Line Items]
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	9	3
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, Less than 12 Months, Fair Value	338	363
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	121	94
Debt Securities, Held-to-maturity, Continuous Unrealized Loss Position, 12 Months or Longer, Fair Value	1,734	1,822
Debt Securities, Held-to-maturity, Unrealized Loss Position, Accumulated Loss	130	97
Debt Securities, Held-to-maturity, Unrealized Loss Position, Fair Value	2,072	2,185
US Government Agency Securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	13
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	0	4,075
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	30	25
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	9,082	5,251
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	30	38
Debt Securities, Available-for-sale, Unrealized Loss Position	9,082	9,326
Corporate Bonds
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	0	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	2,182	2,177
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	3,086	3,092
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	2,182	2,177
Debt Securities, Available-for-sale, Unrealized Loss Position	3,086	3,092
Municipal Securities
Debt Securities, Available-for-sale, Unrealized Loss Position [Line Items]
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, Less than 12 Months	0	0
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	3,923	3,737
Debt Securities, Available-for-sale, Continuous Unrealized Loss Position, 12 Months or Longer	13,790	13,982
Debt Securities, Available-for-sale, Unrealized Loss Position, Accumulated Loss	3,923	3,737
Debt Securities, Available-for-sale, Unrealized Loss Position	$ 13,790	$ 13,982

XML

Investment Securities-Investments Classified by Contractual Maturity Date (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Available-for-sale Securities, Debt Maturities, Amortized Cost Basis, Fiscal Year Maturity
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Amortized Cost	$ 5,540
Debt Securities, Available-for-sale, Allocated and Single Maturity Date, Maturity, after 10 Years, Amortized Cost	26,553
Debt Securities, Available-for-sale, Amortized Cost	65,200	$ 66,058
Available-for-sale Securities, Debt Maturities, Fair Value, Fiscal Year Maturity
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after Five Through Ten Years, Fair Value	5,157
Debt Securities, Available-for-sale, Maturity, Allocated and Single Maturity Date, after 10 Years, Fair Value	20,801
Available-for-sale	$ 52,192	53,843
Available-for-Sale Securities, Debt Maturities, Weighted Average Yield
Available-for-sale Securities, Debt Maturities, after Five Through Ten Years, Weighted Average Rate	4.63%
Available-for-sale Securities, Debt Maturities, after Ten Years, Weighted Average Rate	3.47%
Available-for-sale Securities, Debt Maturities, Weighted Average Rate	2.66%
Held-to-maturity Securities, Debt Maturities, Net Carrying Amount
Held-to-maturity	$ 2,237	2,318
Held-to-maturity Securities, Debt Maturities, Fair Value, Fiscal Year Maturity
Held-to-maturity, Fair Value	$ 2,107	$ 2,221

XML

Loans Receivable and ACL (Details) - USD ($) $ in Thousands		Jun. 30, 2023	Mar. 31, 2023		Jun. 30, 2022	Mar. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income		$ 590,534	$ 597,896
Loans and Leases Receivable, Allowance			(5,229)		$ (5,604)	$ (5,624)
Loans and Leases Receivable, Net Amount			$ 592,667
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		590,534
Allowance for Credit Loss, Excluding Accrued Interest		5,858
Financing Receivable, Excluding Accrued Interest, after Allowance for Credit Loss		$ 584,676
Percentage of Loan Type		100.00%	100.00%
One-to-four family
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income		$ 65,526	$ 65,808
Loans and Leases Receivable, Allowance			$ (716)		(649)	(731)
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		65,526
Allowance for Credit Loss, Excluding Accrued Interest		$ 2,063
Percentage of Loan Type		11.10%	11.00%
Multifamily
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income		$ 178,815	$ 179,117
Loans and Leases Receivable, Allowance			$ (1,109)		(1,053)	(1,114)
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		178,815
Allowance for Credit Loss, Excluding Accrued Interest		$ 713
Percentage of Loan Type		30.30%	30.00%
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income		$ 173,088	$ 178,424
Loans and Leases Receivable, Allowance			$ (1,814)		(1,108)	(1,157)
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		173,088
Allowance for Credit Loss, Excluding Accrued Interest		$ 1,264
Percentage of Loan Type		29.30%	29.80%
Business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income		$ 163,348	$ 166,908	[1]
Loans and Leases Receivable, Allowance			$ (1,139)		(2,321)	(2,497)
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	[1]	163,348
Allowance for Credit Loss, Excluding Accrued Interest		$ 1,404
Percentage of Loan Type	[1]	27.70%	27.90%
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans and Leases Receivable, Net of Deferred Income		$ 9,757	$ 7,639	[2]
Loans and Leases Receivable, Allowance			$ (449)		$ (113)	$ (123)
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	[2]	9,757
Allowance for Credit Loss, Excluding Accrued Interest		$ 414
Percentage of Loan Type	[2]	1.60%	1.30%

[1] (1) Includes PPP loans and business overdrafts

[2] 2) Includes personal loans and consumer overdrafts

XML

Allowance for Credit Losses (Details) - USD ($) $ in Thousands		3 Months Ended
		Jun. 30, 2023	Jun. 30, 2022	Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses - Beginning Balance		$ 5,229	$ 5,624
Allowance for Credit Loss, Excluding Accrued Interest		5,858
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff		95
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Recovery		50
Financing Receivable, Excluding Accrued Interest, Credit Loss Expense (Reversal)		6
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		5,858
Charge-offs			(13)
Recoveries			20
Provision for loan losses		6	(27)
Allowance for loan losses - Ending Balance			5,604
Allowance for Credit Losses, Collectively Evaluated for Impairment		5,745		$ 4,918
Allowance for Credit Losses, Individually Evaluated for Impairment		113		311
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		590,534
Loans Receivable, Collectively Evaluated for Impairment		567,640		579,708
Loans Receivable, Individually Evaluated for Impairment		22,894		18,188
Loans and Leases Receivable, Net of Deferred Income		590,534		597,896
Cumulative Effect, Period of Adoption, Adjustment [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Credit Loss, Excluding Accrued Interest		668
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		668
One-to-four family
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses - Beginning Balance		716	731
Allowance for Credit Loss, Excluding Accrued Interest		2,063
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff		0
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Recovery		0
Financing Receivable, Excluding Accrued Interest, Credit Loss Expense (Reversal)		127
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		2,063
Charge-offs			0
Recoveries			0
Provision for loan losses			(82)
Allowance for loan losses - Ending Balance			649
Allowance for Credit Losses, Collectively Evaluated for Impairment		1,962		607
Allowance for Credit Losses, Individually Evaluated for Impairment		101		109
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		65,526
Loans Receivable, Collectively Evaluated for Impairment		60,386		60,805
Loans Receivable, Individually Evaluated for Impairment		5,140		5,003
Loans and Leases Receivable, Net of Deferred Income		65,526		65,808
One-to-four family | Cumulative Effect, Period of Adoption, Adjustment [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Credit Loss, Excluding Accrued Interest		1,220
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		1,220
Multifamily
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses - Beginning Balance		1,109	1,114
Allowance for Credit Loss, Excluding Accrued Interest		713
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff		0
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Recovery		0
Financing Receivable, Excluding Accrued Interest, Credit Loss Expense (Reversal)		(4)
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		713
Charge-offs			0
Recoveries			0
Provision for loan losses			(61)
Allowance for loan losses - Ending Balance			1,053
Allowance for Credit Losses, Collectively Evaluated for Impairment		713		1,109
Allowance for Credit Losses, Individually Evaluated for Impairment		0		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		178,815
Loans Receivable, Collectively Evaluated for Impairment		176,508		179,046
Loans Receivable, Individually Evaluated for Impairment		2,307		71
Loans and Leases Receivable, Net of Deferred Income		178,815		179,117
Multifamily | Cumulative Effect, Period of Adoption, Adjustment [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Credit Loss, Excluding Accrued Interest		(392)
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		(392)
Commercial real estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses - Beginning Balance		1,814	1,157
Allowance for Credit Loss, Excluding Accrued Interest		1,264
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff		0
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Recovery		0
Financing Receivable, Excluding Accrued Interest, Credit Loss Expense (Reversal)		(53)
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		1,264
Charge-offs			0
Recoveries			0
Provision for loan losses			(49)
Allowance for loan losses - Ending Balance			1,108
Allowance for Credit Losses, Collectively Evaluated for Impairment		1,264		1,814
Allowance for Credit Losses, Individually Evaluated for Impairment		0		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		173,088
Loans Receivable, Collectively Evaluated for Impairment		168,566		171,234
Loans Receivable, Individually Evaluated for Impairment		4,522		7,190
Loans and Leases Receivable, Net of Deferred Income		173,088		178,424
Commercial real estate | Cumulative Effect, Period of Adoption, Adjustment [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Credit Loss, Excluding Accrued Interest		(497)
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		(497)
Business
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses - Beginning Balance		1,139	2,497
Allowance for Credit Loss, Excluding Accrued Interest		1,404
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff		0
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Recovery		49
Financing Receivable, Excluding Accrued Interest, Credit Loss Expense (Reversal)		(289)
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		1,404
Charge-offs			0
Recoveries			19
Provision for loan losses			(195)
Allowance for loan losses - Ending Balance			2,321
Allowance for Credit Losses, Collectively Evaluated for Impairment		1,392		937
Allowance for Credit Losses, Individually Evaluated for Impairment		12		202
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	[1]	163,348
Loans Receivable, Collectively Evaluated for Impairment		152,424		160,985
Loans Receivable, Individually Evaluated for Impairment		10,924		5,923
Loans and Leases Receivable, Net of Deferred Income		163,348		166,908	[1]
Business | Cumulative Effect, Period of Adoption, Adjustment [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Credit Loss, Excluding Accrued Interest		505
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		505
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses - Beginning Balance		449	123
Allowance for Credit Loss, Excluding Accrued Interest		414
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff		95
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Recovery		1
Financing Receivable, Excluding Accrued Interest, Credit Loss Expense (Reversal)		225
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		414
Charge-offs			(13)
Recoveries			1
Provision for loan losses			2
Allowance for loan losses - Ending Balance			113
Allowance for Credit Losses, Collectively Evaluated for Impairment		414		449
Allowance for Credit Losses, Individually Evaluated for Impairment		0		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	[2]	9,757
Loans Receivable, Collectively Evaluated for Impairment		9,756		7,638
Loans Receivable, Individually Evaluated for Impairment		1		1
Loans and Leases Receivable, Net of Deferred Income		9,757		7,639	[2]
Consumer | Cumulative Effect, Period of Adoption, Adjustment [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Credit Loss, Excluding Accrued Interest		(166)
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		(166)
Unallocated
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for loan losses - Beginning Balance		2	2
Allowance for Credit Loss, Excluding Accrued Interest		0
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff		0
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Recovery		0
Financing Receivable, Excluding Accrued Interest, Credit Loss Expense (Reversal)		0
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		0
Charge-offs			0
Recoveries			0
Provision for loan losses			358
Allowance for loan losses - Ending Balance			$ 360
Allowance for Credit Losses, Collectively Evaluated for Impairment		0		2
Allowance for Credit Losses, Individually Evaluated for Impairment		0		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		0
Loans Receivable, Collectively Evaluated for Impairment		0		0
Loans Receivable, Individually Evaluated for Impairment		0		0
Loans and Leases Receivable, Net of Deferred Income				$ 0
Unallocated | Cumulative Effect, Period of Adoption, Adjustment [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Allowance for Credit Loss, Excluding Accrued Interest		(2)
Allowance for Credit Loss, Excluding Accrued Interest, Ending Balance		$ (2)

[1] (1) Includes PPP loans and business overdrafts

[2] 2) Includes personal loans and consumer overdrafts

XML

Nonaccrual Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Financing Receivable, Past Due [Line Items]
FinancingReceivableNonaccrualWithAllowance	$ 10
Nonperforming
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual, No Allowance	15,589
Financing Receivable, Nonaccrual	15,599	$ 12,261
One-to-four family | Nonperforming
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual, No Allowance	4,154
Financing Receivable, Nonaccrual	4,154	4,001
Multifamily | Nonperforming
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual, No Allowance	824
Financing Receivable, Nonaccrual	824	71
Commercial real estate | Nonperforming
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual, No Allowance	4,522
Financing Receivable, Nonaccrual	4,522	7,190
Business | Nonperforming
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual, No Allowance	6,088
FinancingReceivableNonaccrualWithAllowance	10
Financing Receivable, Nonaccrual	6,098	998
Consumer | Nonperforming
Financing Receivable, Past Due [Line Items]
Financing Receivable, Nonaccrual, No Allowance	1
Financing Receivable, Nonaccrual	$ 1	$ 1

XML

Credit Quality Indicators (Details) - USD ($) $ in Thousands		3 Months Ended
		Jun. 30, 2023	Mar. 31, 2023
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		$ 29,503
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		132,533
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		151,934
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		59,692
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		48,981
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		167,891
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		590,534
Loans and Leases Receivable, Net of Deferred Income		590,534	$ 597,896
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff		95
Multifamily
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		3,287
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		54,039
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		53,279
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		29,888
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		18,088
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		20,234
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		178,815
Loans and Leases Receivable, Net of Deferred Income		178,815	179,117
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff		0
Multifamily | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		3,287
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		54,039
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		51,796
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		28,328
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		18,088
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		20,172
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		175,710
Loans and Leases Receivable, Net of Deferred Income			175,981
Multifamily | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		0
Loans and Leases Receivable, Net of Deferred Income			771
Multifamily | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		1,483
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		1,560
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		62
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		3,105
Loans and Leases Receivable, Net of Deferred Income			2,365
Multifamily | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		0
Multifamily | Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		0
Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		8,383
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		31,662
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		28,022
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		17,289
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		21,172
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		66,560
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		173,088
Loans and Leases Receivable, Net of Deferred Income		173,088	178,424
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff		0
Commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		8,383
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		31,662
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		28,022
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		17,289
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		21,172
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		61,344
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		167,872
Loans and Leases Receivable, Net of Deferred Income			170,534
Commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		694
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		694
Loans and Leases Receivable, Net of Deferred Income			701
Commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		4,522
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		4,522
Loans and Leases Receivable, Net of Deferred Income			7,189
Commercial real estate | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		0
Commercial real estate | Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		0
Business
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		8,454
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		42,152
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		57,054
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		11,037
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		594
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		44,057
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	[1]	163,348
Loans and Leases Receivable, Net of Deferred Income		163,348	166,908	[1]
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff		0
Business | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		8,454
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		42,152
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		49,728
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		11,037
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		401
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		42,070
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		153,842
Loans and Leases Receivable, Net of Deferred Income			154,056
Business | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		7,326
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		16
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		7,342
Loans and Leases Receivable, Net of Deferred Income			5,719
Business | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		193
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		1,971
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		2,164
Loans and Leases Receivable, Net of Deferred Income			7,133
Business | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		0
Business | Loss
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		0
One-to-four family
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		1,610
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		3,876
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		13,562
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		1,448
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		9,127
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		35,903
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		65,526
Loans and Leases Receivable, Net of Deferred Income		65,526	65,808
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff		0
One-to-four family | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		1,610
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		3,876
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		13,562
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		1,448
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		9,127
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		31,778
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		61,401
Loans and Leases Receivable, Net of Deferred Income			60,629
One-to-four family | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		4,125
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		4,125
Loans and Leases Receivable, Net of Deferred Income			5,179
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		7,769
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		804
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		17
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		30
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		1,137
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss	[2]	9,757
Loans and Leases Receivable, Net of Deferred Income		9,757	7,639	[2]
Financing Receivable, Excluding Accrued Interest, Allowance for Credit Loss, Writeoff		95
Consumer | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		7,769
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		803
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		17
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		30
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		1,137
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		9,756
Loans and Leases Receivable, Net of Deferred Income			7,639
Consumer | Nonperforming
Financing Receivable, Credit Quality Indicator [Line Items]
Financing Receivable, Year One, Originated, Current Fiscal Year		0
Financing Receivable, Year Two, Originated, Fiscal Year before Current Fiscal Year		1
Financing Receivable, Excluding Accrued Interest, Year Three, Originated, Two Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, Year Four, Originated, Three Years before Current Fiscal Year		0
Financing Receivable, Year Five, Originated, Four Years before Current Fiscal Year		0
Financing Receivable, Originated, More than Five Years before Current Fiscal Year		0
Financing Receivable, Excluding Accrued Interest, before Allowance for Credit Loss		$ 1
Loans and Leases Receivable, Net of Deferred Income			$ 0

[1] (1) Includes PPP loans and business overdrafts

[2] 2) Includes personal loans and consumer overdrafts

XML

Past Due Financing Receivables (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	$ 590,534	$ 597,896
Financing Receivables, 30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	15,140
Financing Receivables, 60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	12,539	211
Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	10,809	7,594
Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	23,348	22,945
Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	567,186	574,951
One-to-four family
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	65,526	65,808
One-to-four family | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	1,207
One-to-four family | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	263	185
One-to-four family | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	2,649	2,475
One-to-four family | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	2,912	3,867
One-to-four family | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	62,614	61,941
Multifamily
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	178,815	179,117
Multifamily | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	1,458
Multifamily | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	551	0
Multifamily | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	1,078	71
Multifamily | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	1,629	1,529
Multifamily | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	177,186	177,588
Commercial real estate
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	173,088	178,424
Commercial real estate | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	1,370
Commercial real estate | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	0
Commercial real estate | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	4,522	0
Commercial real estate | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	4,522	1,370
Commercial real estate | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	168,566	177,054
Business
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	163,348	166,908	[1]
Business | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	11,006
Business | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	11,652	0
Business | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	2,528	5,014
Business | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	14,180	16,020
Business | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	149,168	150,888
Consumer
Financing Receivable, Past Due [Line Items]
Loans and Leases Receivable, Net of Deferred Income	9,757	7,639	[2]
Consumer | Financing Receivables, 30 to 59 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	0	99
Consumer | Financing Receivables, 60 to 89 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	73	26
Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	32	34
Consumer | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	105	159
Consumer | Financial Asset, Not Past Due
Financing Receivable, Past Due [Line Items]
Financing Receivable, before Allowance for Credit Loss	$ 9,652	$ 7,480

[1] (1) Includes PPP loans and business overdrafts

[2] 2) Includes personal loans and consumer overdrafts

XML

Impaired Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Mar. 31, 2023	Jun. 30, 2023
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, Recorded Investment	$ 18,188
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired Financing Receivable, Unpaid Principal Balance	19,014
Impaired Financing Receivable, Related Allowance	311	$ 113
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired Financing Receivable, Average Recorded Investment	15,528
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract]
Impaired Financing Receivable, Interest Income, Cash Basis Method	504
Real Estate
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment		22,701
Accounts Receivable
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment		193
One-to-four family
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	3,972
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,031
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	4,567
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	1,031
Impaired Financing Receivable, Related Allowance	109	101
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	3,861
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	554
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	111
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	41
One-to-four family | Real Estate
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with Related Allowance, Recorded Investment		5,140
Multifamily
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	71
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	71
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	220
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	0
Multifamily | Real Estate
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment		2,307
Commercial real estate
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	7,190
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	7,378
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	4,054
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	36
Commercial real estate | Real Estate
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment		4,522
Business
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	1,114
Impaired Financing Receivable, with Related Allowance, Recorded Investment	4,809
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	1,146
Impaired Financing Receivable, with Related Allowance, Unpaid Principal Balance	4,820
Impaired Financing Receivable, Related Allowance	202	12
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	1,723
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	5,116
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	0
Impaired Financing Receivable, with Related Allowance, Interest Income, Cash Basis Method	316
Business | Real Estate
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment		10,731
Business | Accounts Receivable
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment		193
Consumer
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment	1
Impaired Financing Receivable, Unpaid Principal Balance [Abstract]
Impaired Financing Receivable, with No Related Allowance, Unpaid Principal Balance	1
Impaired Financing Receivable, Average Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	0
Impaired Financing Receivable, Interest Income, Cash Basis Method [Abstract]
Impaired Financing Receivable, with No Related Allowance, Interest Income, Cash Basis Method	$ 0
Consumer | Real Estate
Impaired Financing Receivable, Recorded Investment [Abstract]
Impaired Financing Receivable, with No Related Allowance, Recorded Investment		$ 1

XML

Loans Receivable and ACL Text Tags (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2023 USD ($)	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)
Loans and Leases Receivable Disclosure [Abstract]
Unamortized premiums, deferred costs and fees, net	$ (2,700)		$ (2,800)
Number of Loans Originated Under the Paycheck Protection Program				420
Loans Originated Under the Paycheck Protection Program, Amount				$ 57,100
Financing Receivable, Number of Principal and Interest Payment Deferrals					83
Financing Receivable, Principal and Interest Deferred Payments					$ 90,400
Financing Receivable, Nonaccrual, Interest Income	0
Other Real Estate Owned	$ 60		$ 60
Number of Real Estate Properties	1		1
Financing Receivable, Held-for-Sale	$ 0		$ 0
Financing Receivable, 90 Days or More Past Due, Still Accruing	$ 0		0
Financing Receivable, Modified in Period, Amount		$ 1,000
Number of Modified Loan Subsequently Defaulted	0	0
Loans and Leases Receivable, Related Parties	$ 30		$ 30
Loans and Leases Receivable, Related Parties, Proceeds	$ 0
Financing Receivable, Modified [Line Items]
Financing Receivable, Modifications, Number of Contracts	0	2
Financing Receivable, Modified, Accumulated	$ 7,500
Nonperforming
Financing Receivable, Modified [Line Items]
Financing Receivable, Modified, Accumulated	$ 1,600
Performing
Financing Receivable, Modified [Line Items]
Financing Receivable, Modifications, Number of Contracts	4
Financing Receivable, Modified, Accumulated	$ 5,900
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Purchase	2,800
Business
Accounts, Notes, Loans and Financing Receivable [Line Items]
Financing Receivable, Purchase	$ 300

XML

Fair Value, Assets Measured on Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	$ 147	$ 152
Securities Available-for-Sale	52,192	53,843
Assets, Fair Value Disclosure	52,339	53,995
Fair Value, Measurements, Recurring | Government National Mortgage Association (GNMA)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure	312	341
Fair Value, Measurements, Recurring | Federal Home Loan Mortgage Corporation (FHLMC)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure	16,674	17,600
Fair Value, Measurements, Recurring | Federal National Mortgage Association (FNMA)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure	9,248	9,502
Fair Value, Measurements, Recurring | US Government Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available-for-Sale	9,082	9,326
Fair Value, Measurements, Recurring | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available-for-Sale	3,086	3,092
Fair Value, Measurements, Recurring | Municipal Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available-for-Sale	13,790	13,982
Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	0	0
Securities Available-for-Sale	0	0
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	0	0
Securities Available-for-Sale	0	0
Assets, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Government National Mortgage Association (GNMA)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Federal Home Loan Mortgage Corporation (FHLMC)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Federal National Mortgage Association (FNMA)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | US Government Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available-for-Sale	0	0
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available-for-Sale	0	0
Fair Value, Inputs, Level 1 | Fair Value, Measurements, Recurring | Municipal Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available-for-Sale	0	0
Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	0	0
Securities Available-for-Sale	52,192	53,843
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	0	0
Securities Available-for-Sale	52,192	53,843
Assets, Fair Value Disclosure	52,192	53,843
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Government National Mortgage Association (GNMA)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure	312	341
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Federal Home Loan Mortgage Corporation (FHLMC)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure	16,674	17,600
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Federal National Mortgage Association (FNMA)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure	9,248	9,502
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | US Government Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available-for-Sale	9,082	9,326
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available-for-Sale	3,086	3,092
Fair Value, Inputs, Level 2 | Fair Value, Measurements, Recurring | Municipal Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available-for-Sale	13,790	13,982
Fair Value, Inputs, Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	147	152
Securities Available-for-Sale	0	0
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage servicing rights	147	152
Securities Available-for-Sale	0	0
Assets, Fair Value Disclosure	147	152
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Government National Mortgage Association (GNMA)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Federal Home Loan Mortgage Corporation (FHLMC)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Federal National Mortgage Association (FNMA)
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgage-backed Securities Available-for-sale, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | US Government Agency Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available-for-Sale	0	0
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Corporate Bonds
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available-for-Sale	0	0
Fair Value, Inputs, Level 3 | Fair Value, Measurements, Recurring | Municipal Securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities Available-for-Sale	$ 0	$ 0

XML

Fair Value Measurements Text Tag (Details) $ in Thousands	3 Months Ended
	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)
Fair Value Disclosures [Abstract]
Percent of Total Assets Level 3	0.02%
Transfers between level 1 and level 2	0
Mortgage Loans in Process of Foreclosure, Amount	$ 2,900	$ 5,600

XML

Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation (Details) - Fair Value, Measurements, Recurring - Fair Value, Inputs, Level 3 - Other Assets - USD ($)	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation [Line Items]
Fair Value, Asset, Recurring Basis, Still Held, Unrealized Gain (Loss)	$ (5,000)	$ 3,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value - Beginning	152,000	162,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Gain (Loss) Included in Earnings	(5,000)	3,000
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Issuances	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset, Transfers, Net	0	0
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value - Ending	$ 147,000	$ 165,000

XML

Fair Value, Assets Measured on Recurring Basis, Valuation Techniques (Details) $ in Thousands	Jun. 30, 2023 USD ($)	Mar. 31, 2023 USD ($)	Jun. 30, 2022 USD ($)	Mar. 31, 2022 USD ($)
Valuation Technique, Discounted Cash Flow
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights	$ 147	$ 152
Fair Value, Inputs, Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights	147	152
Fair Value, Measurements, Recurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights	147	152
Fair Value, Measurements, Recurring | Fair Value, Inputs, Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Mortgage servicing rights	147	152
Fair Value, Measurements, Recurring | Other Assets | Fair Value, Inputs, Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Fair Value, Measurement with Unobservable Inputs Reconciliation, Recurring Basis, Asset Value	$ 147	$ 152	$ 165	$ 162
Measurement Input, Constant Prepayment Rate | Fair Value, Measurements, Recurring | Other Assets | Fair Value, Inputs, Level 3
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Servicing Asset, Measurement Input	0.0386	0.0401

XML

Fair Value Measurements, Nonrecurring (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other Real Estate Owned	$ 60	$ 60
Fair Value, Measurements, Nonrecurring
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,029	5,529
Other Real Estate Owned	60	60
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Other Real Estate Owned	0	0
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	0	0
Other Real Estate Owned	$ 0	$ 0

XML

Fair Value, Assets Measured on Nonrecurring Basis, Valuation Techniques (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Other Real Estate Owned	$ 60	$ 60
Fair Value, Measurements, Nonrecurring
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,029	5,529
Other Real Estate Owned	60	60
Fair Value, Measurements, Nonrecurring | Fair Value, Inputs, Level 3 | Valuation, Market Approach
Fair Value Measurement Inputs and Valuation Techniques [Line Items]
Impaired Financing Receivable, with Related Allowance, Recorded Investment	1,029	5,529
Other Real Estate Owned	$ 60	$ 60

XML

Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Financial Assets:
Held-to-maturity, Fair Value	$ 2,107	$ 2,221
Fair Value, Inputs, Level 1
Financial Assets:
Cash and cash equivalents	41,691	42,552
Securities Available-for-Sale	0	0
Held-to-maturity, Fair Value	0	0
Loans Receivable	0	0
Accrued interest receivable	0	0
Mortgage servicing rights	0	0
Financial Liabilities:
Deposits	406,245	418,432
Advances from FHLB of New York	0	0
Other borrowed money	0	0
Accrued interest payable	0	0
Fair Value, Inputs, Level 2
Financial Assets:
Cash and cash equivalents	0	0
Securities Available-for-Sale	52,192	53,843
Held-to-maturity, Fair Value	2,107	2,221
Loans Receivable	0	0
Accrued interest receivable	1,981	1,911
Mortgage servicing rights	0	0
Financial Liabilities:
Deposits	181,263	176,304
Advances from FHLB of New York	32,349	35,238
Other borrowed money	16,796	14,575
Accrued interest payable	718	380
Fair Value, Inputs, Level 3
Financial Assets:
Cash and cash equivalents	0	0
Securities Available-for-Sale	0	0
Held-to-maturity, Fair Value	0	0
Loans Receivable	547,028	567,029
Accrued interest receivable	0	0
Mortgage servicing rights	147	152
Financial Liabilities:
Deposits	0	0
Advances from FHLB of New York	0	0
Other borrowed money	0	0
Accrued interest payable	0	0
Reported Value Measurement
Financial Assets:
Cash and cash equivalents	41,691	42,552
Securities Available-for-Sale	52,192	53,843
Held-to-maturity, Fair Value	2,237	2,318
Loans Receivable	584,676	592,667
Accrued interest receivable	1,981	1,911
Financial Liabilities:
Deposits	593,162	600,429
Advances from FHLB of New York	32,500	35,000
Other borrowed money	18,403	15,903
Accrued interest payable	718	380
Estimate of Fair Value Measurement
Financial Assets:
Cash and cash equivalents	41,691	42,552
Securities Available-for-Sale	52,192	53,843
Held-to-maturity, Fair Value	2,107	2,221
Loans Receivable	547,028	567,029
Accrued interest receivable	1,981	1,911
Mortgage servicing rights	147	152
Financial Liabilities:
Deposits	587,508	594,736
Advances from FHLB of New York	32,349	35,238
Other borrowed money	16,796	14,575
Accrued interest payable	$ 718	$ 380

XML

Non-interest Revenue (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer, Including Assessed Tax	$ 686	$ 681
Revenue Not from Contract with Customer	69	28
Noninterest income	755	709
Depository fees and charges
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer	577	555
Loan fees and service charges
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer	50	116
Other noninterest income
Disaggregation of Revenue [Line Items]
Revenue from Contract with Customer	$ 59	$ 10

XML

Other Non-interest Revenue and Expense (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Noninterest Income, Other [Abstract]
Correspondent banking fees	$ 0	$ 0
Other	94	35
Total non-interest income	94	35
Non-interest expense:
Advertising	69	153
Legal expense	93	71
Insurance and surety	309	296
Audit expense	166	151
Data lines / internet	106	96
Security services	19	74
Retail expenses	286	216
Director's fees	105	123
Other	637	578
Total non-interest expense	$ 1,790	$ 1,758

XML

Leases Text Tags (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Leases [Abstract]
Right-of-use assets	$ 11,701	$ 12,311
Operating lease liability	12,544	$ 13,173
Finance Lease, Right-of-Use Asset	171
Finance Lease, Liability	$ 159

XML

Leases (Details) - USD ($) $ in Thousands	3 Months Ended
	Jun. 30, 2023	Jun. 30, 2022
Leases [Abstract]
Operating Lease, Weighted Average Remaining Lease Term	5 years
Finance Lease, Weighted Average Remaining Lease Term	2 years 4 months 24 days
Operating Lease, Weighted Average Discount Rate, Percent	3.04%
Finance Lease, Weighted Average Discount Rate, Percent	4.23%
Operating Lease, Expense	$ 692	$ 716
Finance Lease, Right-of-Use Asset, Amortization	28	18
Finance Lease, Interest Expense	2	0
Operating Lease, Payments	711	696
Finance Lease, Payments	$ 34	$ 19

XML

Leases-Lease Liability, Maturity (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Lessee, Operating Lease, Liability, Payment, Due [Abstract]
Lessee, Operating Lease, Liability, Payments, Due Next Twelve Months	$ 2,195
Lessee, Operating Lease, Liability, Payments, Due Year Two	2,705
Lessee, Operating Lease, Liability, Payments, Due Year Three	2,687
Lessee, Operating Lease, Liability, Payments, Due Year Four	2,440
Lessee, Operating Lease, Liability, Payments, Due Year Five	2,259
Lessee, Operating Lease, Liability, Payments, Due after Year Five	1,276
Lessee, Operating Lease, Liability, Payments, Due	13,562
Lessee, Operating Lease, Liability, Undiscounted Excess Amount	(1,018)
Operating lease liability	12,544	$ 13,173
Finance Lease, Liability, Payment, Due [Abstract]
Finance Lease, Liability, Payments, Due Next Twelve Months	57
Finance Lease, Liability, Payments, Due Year Two	63
Finance Lease, Liability, Payments, Due Year Three	42
Finance Lease, Liability, Payments, Due Year Four	5
Finance Lease, Liability, Payments, Due Year Five	0
Finance Lease, Liability, Payments, Due after Year Five	0
Finance Lease, Liability, Payment, Due	167
Finance Lease, Liability, Undiscounted Excess Amount	(8)
Finance Lease, Liability	$ 159

XML

Impact of Recent Accounting Standards Text Tag (Details) - USD ($) $ in Thousands	Jun. 30, 2023	Mar. 31, 2023
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Earnings (Accumulated Deficit)	$ (49,993)	$ (47,904)
Off-Balance-Sheet, Credit Loss, Liability	10
Cumulative Effect, Period of Adoption, Adjustment [Member]
Financing Receivable, Allowance for Credit Loss [Line Items]
Retained Earnings (Accumulated Deficit)	$ (668)

XML

Subsequent Events Text Tag (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended					12 Months Ended
	Sep. 30, 2023	Dec. 31, 2021	Sep. 30, 2021	Mar. 31, 2021	Dec. 31, 2020	Mar. 31, 2021	Jul. 19, 2023	Feb. 16, 2021	Feb. 01, 2021	Oct. 15, 2020
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues		397,367
Proceeds from Issuance of Private Placement			$ 4,000	$ 4,400		$ 6,000
Subsequent Event
Subsequent Event [Line Items]
Proceeds from Issuance of Private Placement	$ 1,000
Common Stock
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues				157,806	147,227	112,612
Sale of Stock, Price Per Share								$ 8.88	$ 7.75	$ 6.62
Common Stock | Subsequent Event
Subsequent Event [Line Items]
Stock Issued During Period, Shares, New Issues	378,788
Sale of Stock, Price Per Share							$ 2.64