v3.25.2
Loans Receivable and Allowance for Credit Losses
 12 Months Ended
Mar. 31, 2025
Loans and Leases Receivable Disclosure [Abstract]  
Loans Receivable and Allowance for Credit Losses LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES
The following is a summary of loans receivable, net of allowance for credit losses at March 31:
March 31, 2025
March 31, 2024
$ in thousandsAmount%Amount%
One-to-four family $74,387 12.1 %$82,787 13.3 %
Multifamily165,812 27.0 %177,203 28.4 %
Commercial real estate178,257 29.1 %175,384 28.2 %
Construction4,567 0.7 %2,203 0.4 %
Business (1)
164,964 26.9 %169,602 27.2 %
Consumer (2)
25,697 4.2 %15,699 2.5 %
Total loans receivable613,684 100.0 %622,878 100.0 %
Allowance for credit losses(6,337)(5,871)
Total loans receivable, net$607,347 $617,007 
(1) Includes business overdrafts of $50 thousand and $73 thousand as of March 31, 2025 and 2024, respectively
(2) Includes consumer overdrafts of $18 thousand and $15 thousand as of March 31, 2025 and 2024, respectively

The totals above are shown net of deferred loan fees and costs. Net deferred loan fees totaled $2.6 million and $2.9 million at March 31, 2025 and 2024, respectively. During fiscal year 2025, the Bank purchased $15.4 million consumer loans at par. The Bank purchased $31.5 million loans at par during fiscal year 2024, comprised of $20.0 million one-to-four family, $0.2 million business and $11.3 million consumer loans.

Substantially all of the Bank's real estate loans receivable are principally secured by properties located in New York City. Accordingly, as with most financial institutions in the market area, the ultimate collectability of a substantial portion of the Company's loan portfolio is susceptible to changes in market conditions in this area.

Real estate mortgage loan portfolios (one-to-four family) serviced for Federal National Mortgage Association (“FNMA”) and other third parties are not included in the accompanying consolidated financial statements.  The unpaid principal balances of these loans aggregated $10.7 million and $11.6 million at March 31, 2025 and 2024, respectively.

At March 31, 2025 the Bank pledged $50.4 million in total real estate mortgage loans as collateral for advances from the FHLB-NY.

The allowance for credit losses totaled $6.3 million and $5.9 million as of March 31, 2025 and 2024, respectively. The increase was primarily attributed to a series of qualitative factor adjustments and an increase in individually analyzed loan reserv
es during fiscal year 2025. The following is an analysis of the allowance for credit losses based upon the method of evaluating loan reserves under the expected loss methodology for the fiscal years ended March 31, 2025 and 2024:
At March 31, 2025
$ in thousandsOne-to-four familyMultifamilyCommercial Real EstateConstructionBusinessConsumerOtherTotal
Allowance for credit losses:
Beginning Balance$2,005 $720 $1,222 $1 $1,415 $450 $58 $5,871 
Charge-offs— — — — (289)(581)— (870)
Recoveries— — — — 10 135 — 145 
Provision for (Recovery of) Credit Losses(206)100 243 2 510 589 (47)1,191 
Ending Balance$1,799 $820 $1,465 $3 $1,646 $593 $11 $6,337 
Allowance for Credit Losses Ending Balance: collectively evaluated for impairment$1,799 $820 $1,404 $3 $1,547 $560 $11 $6,144 
Allowance for Credit Losses Ending Balance: individually evaluated for impairment— — 61 —99 33 — 193 
Loan Receivables Ending Balance$74,387 $165,812 $178,257 $4,567 $164,964 $25,697 $— $613,684 
Ending Balance: collectively evaluated for impairment72,888 161,879 169,935 4,567 151,885 25,664 — 586,818 
Ending Balance: individually evaluated for impairment1,499 3,933 8,322 —13,079 33 — 26,866 

At March 31, 2024
$ in thousandsOne-to-four familyMultifamily Commercial Real EstateConstructionBusinessConsumerOtherTotal
Allowance for loan losses:
Beginning Balance$716 $1,109 $1,814 $— $1,139 $449 $2 $5,229 
Impact of CECL adoption1,220 (392)(497)505 (166)(2)668 
Charge-offs— — — — (10)(160)— (170)
Recoveries— — — — 55 6 — 61 
Provision for (Recovery of) Loan Losses69 3 (95)1 (274)g321 58 83 
Ending Balance$2,005 $720 $1,222 $1 $1,415 $450 $58 $5,871 
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment$2,005 $720 $1,222 $1 $1,408 $449 $58 $5,863 
Allowance for Loan Losses Ending Balance: individually evaluated for impairment— — — —7 1 — 8 
Loan Receivables Ending Balance$82,787 $177,203 $175,384 $2,203 $169,602 $15,699 $— $622,878 
Ending Balance: collectively evaluated for impairment78,636 174,718 170,862 2,203 156,340 15,654 — 598,413 
Ending Balance: individually evaluated for impairment4,151 2,485 4,522 —13,262 45 — 24,465 
The following is a summary of nonaccrual loans, at amortized cost, at March 31, 2025 and 2024.
March 31, 2025
$ in thousandsNonaccrual Loans with No AllowanceNonaccrual Loans with an AllowanceTotal
Nonaccrual Loans
Gross loans receivable:
One-to-four family$1,519 $— $1,519 
Multifamily3,937 — 3,937 
Commercial real estate4,545 2,202 6,747 
Business12,255 104 12,359 
Consumer— 33 33 
Total nonaccrual loans$22,256 $2,339 $24,595 

March 31, 2024
$ in thousandsNonaccrual Loans with No AllowanceNonaccrual Loans with an AllowanceTotal
Nonaccrual Loans
Gross loans receivable: 
One-to-four family$3,554 $— $3,554 
Multifamily2,238 — 2,238 
Commercial real estate4,522 — 4,522 
Business1,317 100 1,417 
Consumer— 44 44 
Total nonaccrual loans$11,631 $144 $11,775 

There was no interest income recognized on nonaccrual loans during the twelve months ended March 31, 2025.

At March 31, 2025 and March 31, 2024, other non-performing assets totaled $52 thousand, respectively, which consisted of other real estate owned comprised of one foreclosed residential property. Other real estate owned is included in other assets in the consolidated statements of financial condition. There were no held-for-sale loans at March 31, 2025 and March 31, 2024.

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 90 or more days, or past maturity. All other one-to-four family residential loans and consumer loans are performing loans.
The following tables present the amortized cost of loans by year of origination and risk category by class of loans based on the most recent analysis performed in the current quarter as of March 31, 2025 and 2024:
At March 31, 2025
$ in thousands202520242023202220212020 and earlierRevolving LoansTotal
Credit Risk Profile by Internally Assigned Grade:
Multifamily
Pass$— $1,719 $6,501 $50,072 $37,122 $57,167 — $152,581 
Special Mention— — — — 10,004 — — 10,004 
Substandard— — — 1,093 1,380 754 — 3,227 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total— 1,719 6,501 51,165 48,506 57,921 — 165,812 
Commercial Real Estate
Pass$1,750 $12,913 $28,834 $30,728 $20,250 $71,793 — $166,268 
Special Mention— — — — 3,023 $644 — 3,667 
Substandard— — — — 3,800 $4,522 — 8,322 
Doubtful— — — — — $— $— — 
Loss— — — — — $— $— — 
Total1,750 12,913 28,834 30,728 27,073 76,959 — 178,257 
Construction
Pass$— $— $4,567 $— $— $— $— $4,567 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total— — 4,567 — — — — 4,567 
Business
Pass$2,807 $24,325 $18,978 $25,906 $39,992 $38,115 — $150,123 
Special Mention— — — 1,803 438 — — 2,241 
Substandard— — — 7,950 4,307 343 — 12,600 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total2,807 24,325 18,978 35,659 44,737 38,458 — 164,964 
Gross charge-offs— — — 160 — 129 — 289 
Credit Risk Profile Based on Payment Activity:
One-to-four Family
Performing$— $— $20,793 $3,764 $12,411 $35,920 $— $72,888 
Non-Performing— — — — — 1,499 — 1,499 
Total— — 20,793 3,764 12,411 37,419 — 74,387 
Consumer
Performing$11,206 $— $4,556 $— $8,384 $— $304 $— $1,193 $— $25,643 
Non-Performing— 22 17 15 — — — 54 
Total11,206 4,578 8,401 319 — 1,193 — 25,697 
Gross charge-offs— 52 303 14 — 212 — 581 
Total Loans (excluding gross charge-offs)$15,763 $43,535 $88,074 $121,635 $132,727 $211,950 $— $613,684 
At March 31, 2024
$ in thousands202420232022202120202019 and earlierRevolving LoansTotal
Credit Risk Profile by Internally Assigned Grade:
Multifamily
Pass$980 $6,587 $53,516 $50,778 $28,483 $34,374 $— $174,718 
Special Mention— — — — — — — — 
Substandard— — — 1,451 754 280 — 2,485 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total980 6,587 53,516 52,229 29,237 34,654 — 177,203 
Commercial Real Estate
Pass$2,450 $29,064 $31,313 $27,635 $16,951 $62,775 $— $170,188 
Special Mention— — — — — 674 — 674 
Substandard— — — — — 4,522 — 4,522 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total2,450 29,064 31,313 27,635 16,951 67,971 — 175,384 
Construction
Pass$— $2,203 $— $— $— $— $— $2,203 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total— 2,203 — — — — — 2,203 
Business
Pass$7,050 $21,315 $32,675 $52,839 $10,845 $32,587 $— 157,311 
Special Mention— — — — — — — — 
Substandard— — 7,939 3,987 — 365 — 12,291 
Doubtful— — — — — — — — 
Loss— — — — — — — — 
Total7,050 21,315 40,614 56,826 10,845 32,952 — 169,602 
Gross charge-offs— — — — — 10 — 10 
Credit Risk Profile Based on Payment Activity:
One-to-four Family
Performing$— $22,247 $3,830 $13,422 $1,424 $39,002 $— $79,925 
Non-Performing— — — — — 2,862 — 2,862 
Total— 22,247 3,830 13,422 1,424 41,864 — 82,787 
Consumer
Performing$2,003 $— $11,891 $— $570 $— $4 $16 $1,172 $— $15,656 
Non-Performing— 42 1 — — — — 43 
Total2,003 11,933 571 4 16 1,172 — 15,699 
Gross charge-offs— 18 1 — — 141 — 160 
Total Loans (excluding gross charge-offs)$12,483 $93,349 $129,844 $150,116 $58,473 $178,613 $— $622,878 
            

Loans are considered past due if required principal and interest payments have not been received as of the date such payments were contractually due. The following tables present an aging analysis of the amortized cost of past due loans receivable at March 31, 2025 and 2024.
March 31, 2025
$ in thousands30-59 Days Past Due60-89 Days Past Due90 or More Days Past DueTotal Past DueCurrentTotal Loans Receivable
One-to-four family$804 $— $1,499 $2,303 $72,084 $74,387 
Multifamily7,521 1,093 2,840 11,454 154,358 165,812 
Commercial real estate1,314 — 6,722 8,036 170,221 178,257 
Construction— — — — 4,567 4,567 
Business9,265 956 12,156 22,377 142,587 164,964 
Consumer108 85 33 226 25,471 25,697 
Total$19,012 $2,134 $23,250 $44,396 $569,288 $613,684 

March 31, 2024
$ in thousands30-59 Days Past Due60-89 Days Past Due90 or More Days Past DueTotal Past DueCurrentTotal Loans Receivable
One-to-four family$164 $— $2,859 $3,023 $79,764 $82,787 
Multifamily— — 2,205 2,205 174,998 177,203 
Commercial real estate— — 4,660 4,660 170,724 175,384 
Construction— — — — 2,203 2,203 
Business1,959 214 12,071 14,244 155,358 169,602 
Consumer151 54 — 205 15,494 15,699 
Total$2,274 $268 $21,795 $24,337 $598,541 $622,878 

    At March 31, 2025, there were no loans 90 or more days past due and accruing interest.

Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the underlying collateral and the borrower is experiencing financial difficulty. All substandard and doubtful loans and any other loans that the Chief Credit Officer deems appropriate for review, are identified and reviewed for individual analysis. The following table presents the amortized cost of collateral dependent loans with the associated allowance amount, if applicable, as of March 31, 2025 and 2024:
At March 31, 2025
At March 31, 2024
Collateral TypeCollateral Type
$ in thousandsReal EstateOtherAllowance AllocatedReal EstateOtherAllowance Allocated
One-to-four family$1,012 $487 $— $4,151 $— $— 
Multifamily3,933 — — 2,485 — — 
Commercial real estate8,322 — 61 4,522 — — 
Business13,018 62 99 12,196 1,066 7 
Consumer4 28 33 — 45 1 
$26,289 $577 $193 $23,354 $1,111 $8 

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

    In certain circumstances, the Bank will modify the terms of a loan, including extension of maturity date, reduction in the stated interest rate, rescheduling of future cash flows, reduction in the face amount of the debt or reduction of past accrued interest. Loans modified are placed on nonaccrual status until the Company determines that future collection of principal and interest is reasonably assured, which generally requires that the borrower demonstrate performance according to the restructured terms for a period of at least six months. There were no loan modifications to borrowers experiencing financial difficulty made during the twelve months ended March 31, 2025 and 2024. At March 31, 2025, loans modified to borrowers experiencing financial difficulty totaled $6.0 million, $389 thousand of which were non-performing as they were either not consistently performing in accordance with their modified terms or not performing in accordance with their modified terms for at least six months. There were three modified loans totaling $5.7 million that were on accrual status as the Company has determined that future collection of the principal and interest is re
asonably assured. These have generally performed according to the restructured terms for a period of at least six months. For the fiscal years ended March 31, 2025 and 2024, there were no modified loans that defaulted within 12 months of modification.

Transactions With Certain Related Persons

    Federal law requires that all loans or extensions of credit to executive officers and directors must be made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with the general public and must not involve more than the normal risk of repayment or present other unfavorable features. Furthermore, loans above the greater of $25,000, or 5% of Carver Federal’s capital and surplus (up to $500,000), to Carver Federal’s directors and executive officers must be approved in advance by a majority of the disinterested members of Carver Federal’s Board of Directors. There were no loans outstanding to related parties at March 31, 2025.