v3.25.2
Borrowed Money
 12 Months Ended
Mar. 31, 2025
Debt Disclosure [Abstract]  
Borrowed Money BORROWED MONEY
Federal Home Loan Bank Advances. At March 31, 2025, the Bank had a $1.8 million outstanding advance from the FHLB-NY. During fiscal year 2025, the Bank secured the $1.8 million 12-month fixed-rate advance through the second round of the FHLB-NY 0% Development Advance (ZDA) Program, which provides members with subsidized funding in the form of interest rate credits to assist in originating or purchasing loans that meet an eligibility criteria.

As a member of the FHLB-NY, the Bank may have outstanding FHLB-NY borrowings in a combination of term advances and overnight funds of up to 30% of its total assets, or approximately $219.0 million at March 31, 2025. Borrowings are secured by the Bank's investment in FHLB-NY stock and by a blanket security agreement. This agreement requires the Bank to maintain as collateral certain qualifying assets (principally mortgage loans and securities) not otherwise pledged. At March 31, 2025, advances were all fixed-rate and secured by pledges of the Bank's investment in FHLB-NY capital stock totaling $0.9 million, and a blanket assignment of pledged qualifying mortgage loans of $50.4 million and mortgage-backed and investment securities with a market value of $1.9 million. The
Bank has sufficient collateral at the FHLB-NY to be able to borrow $30.4 million from the FHLB-NY at March 31, 2025. The accrued interest payable on FHLB-NY advances was $8 thousand and interest expense was $892 thousand for the year ended March 31, 2025. The accrued interest payable on FHLB-NY advances was $109 thousand and the interest expense was $1.1 million for the year ended March 31, 2024. FHLB-NY advances weighted average interest rates by remaining period to maturity are as follows:

20252024
$ in thousandsAmountWeighted Average RateAmountWeighted Average Rate
Maturing Year Ending March 31,
2025— — %28,027 4.61 %
20261,814 5.45 %— — %
$1,814 $28,027 

Subordinated Debt Securities. On September 17, 2003, Carver Statutory Trust I issued 13,000 shares, liquidation amount $1,000 per share, of floating rate capital securities.  Gross proceeds from the sale of these trust preferred debt securities of $13 million, and proceeds from the sale of the trust's common securities of $0.4 million, were used to purchase approximately $13.4 million aggregate principal amount of the Company's floating rate junior subordinated debt securities due 2033.  The trust preferred debt securities are redeemable at par quarterly at the option of the Company beginning on or after September 17, 2008, and have a mandatory redemption date of September 17, 2033. Cash distributions on the trust preferred debt securities are cumulative and payable at a floating rate per annum resetting quarterly with a margin of 3.05% over the three-month SOFR. Debenture interest payments are subject to prior approval from the Federal Reserve Bank. A streamlined process has been developed for the Company to request regulatory approval to make debenture interest payments, although there is no assurance that the Federal Reserve Bank will continue to approve such quarterly payments. All quarterly interest payments up to and including the March 2025 payment were made. The Company deferred the interest payment due June 17, 2025 in order to manage liquidity. Debenture interest payments may be deferred for up to twenty consecutive quarters under the terms of the Indenture. The accrued interest payable on subordinated debt securities was $43 thousand and the interest expense was $1.1 million for the year ended March 31, 2025. The accrued interest payable on subordinated debt securities was $45 thousand and the interest expense was $1.2 million for the year ended March 31, 2024.

Other Borrowings. During fiscal year 2024, the Company entered into a 5-year unsecured long-term, below-market-rate loan in the amount of $2.5 million provided by a third party. At March 31, 2025, the Company had $5.0 million in these fixed rate, low interest loans outstanding. Based on the covenants of these notes, the proceeds will be used to finance eligible loans offered through the Bank's community investment initiatives and loan programs. The accrued interest payable and interest expense on these notes was $7 thousand and $76 thousand, respectively, for the year ended March 31, 2025. The accrued interest payable and interest expense was $7 thousand and $74 thousand, respectively, for the year ended March 31, 2024.

The following table presents expected maturities of the Company's long-term borrowings at March 31, 2025:
$ in thousands
Year ending March 31,
2026$1,814 
20272,500 
2028— 
20292,500 
2030— 
Thereafter13,403 
Total$20,217 
The following table sets forth certain information regarding Carver Federal's borrowings as of and for the years ended March 31:
$ in thousands
2025
2024
Amounts outstanding at the end of year:
FHLB advances$1,814 $28,027 
Subordinated debt securities13,403 13,403 
Other5,000 5,000 
Rate paid at year end:
FHLB advances5.45 %4.61 %
Subordinated debt securities7.61 %8.64 %
Other1.50 %1.50 %
Maximum amount of borrowing outstanding at any month end:
FHLB advances$25,000 $25,000 
Subordinated debt securities13,403 13,403 
Other2,500 2,500 
Approximate average amounts outstanding for year:
FHLB advances$24,089 $27,020 
Subordinated debt securities13,403 13,403 
Other5,000 4,813 
Approximate weighted average rate paid during year:
FHLB advances3.7 %4.22 %
Subordinated debt securities8.38 %8.65 %
Other1.51 %1.54 %