Savings Incentive Plan. Carver has a savings incentive plan, pursuant to Section 401(k) of the Code, for all eligible employees of the Bank. The Bank matches contributions to the 401(k) Plan equal to 100% of pre-tax contributions made by each employee up to a maximum of 4% of their pay, subject to IRS limitations. All such matching contributions are fully vested and non-forfeitable at all times regardless of the years of service with the Bank. Compensation expense recognized for the 401(k) matching contributions was $305 thousand and $330 thousand, respectively, for fiscal 2025 and 2024.

Stock Option Plans. In September 2014, Carver stockholders approved the Carver Bancorp, Inc. 2014 Equity Incentive Plan (the "2014 Incentive Plan") which provides for the grant of stock options, stock appreciation rights and restricted stock to executive officers and directors who are selected to receive awards by the Committee. The 2014 Incentive Plan authorizes Carver to grant awards with respect to 250,000 shares. All of the shares may be issued pursuant to stock options (all of which may be incentive stock options) or all of which may be issued pursuant to restricted stock awards or restricted stock units. Unless the Committee determines otherwise, the award agreements will specify that no award will vest more rapidly than 25% per year over a four-year period, with the first installment vesting one year after the date of grant, subject to acceleration upon the occurrence of specific events. There were 83,000 restricted stock awards issued in fiscal year 2024. At March 31, 2025, there were 6,267 options outstanding under the 2014 Incentive Plan and 6,267 were exercisable. All options are exercisable i

mmediately upon a participant's disability, death or change in control, as defined in the 2014 Incentive Plan, if the person is employed on that date. If the person is terminated (voluntary or involuntarily) from the Bank, all unvested shares are forfeited. Pursuant to the plan, the Bank recognized $26 thousand as expense for fiscal year 2025 and $68 thousand in fiscal year 2024.

In December 2024, Carver stockholders approved the Carver Bancorp, Inc. 2024 Equity Incentive Plan (the "2024 Incentive Plan") which provides for discretionary option grants, stock appreciation rights and restricted stock to executive officers, employees and directors who are selected to receive awards by the Committee. The 2024 Incentive Plan authorizes Carver to grant awards with respect to 350,000 shares. During fiscal year 2025, 58,139 restricted stock awards were issued and the Bank recognized $8 thousand as expense pursuant to the plan.

Information regarding nonvested shares of restricted stock awards outstanding for the years ended March 31 is as follows:


	2025			2024
	Shares	Weighted Average Grant Price		Shares	Weighted Average Grant Price
Outstanding, beginning of year	85,000	$	3.06	57,833	$	6.45
Granted	58,139	1.72		83,000	2.77
Vested	(37,500)	1.81		(34,333)	6.32
Forfeited	(500)	1.21		(21,500)	5.88
Outstanding, end of year	105,139	$	1.60	85,000	$	3.06

Unrecognized compensation expense on unvested restricted shares as of March 31, 2025 totaled $127 thousand. This amount will be recognized over the remaining vesting period of 0.98 years (weighted average). The vesting of the grants totaled $66 thousand and $220 thousand for fiscal years 2025 and 2024, respectively.


	2025			2024
	Options	Weighted Average Exercise Price		Options	Weighted Average Exercise Price
Outstanding, beginning of year	6,267	$	5.27	6,267	$	5.27
Granted	—	—		—	—
Exercised	—	—		—	—
Expired/Forfeited	—	—		—	—
Outstanding, end of year	6,267	$	5.27	6,267	$	5.27
Exercisable, at year end	6,267			6,267

Information regarding stock options as of March 31, 2025 is as follows:


				Options Outstanding				Options Exercisable
Range of Exercise Prices				Shares	Weighted Average Remaining Life	Weighted Average Exercise Price		Shares	Weighted Average Exercise Price
$	3.00	$	5.00	1,000	2.70	$	3.48	1,000	$	3.48
5.00		$	5.59	3,600	0.23	5.56		3,600	5.56
5.60		$	5.99	1,667	5.33	5.70		1,667	5.70



Total				6,267				6,267