Stockholders' Equity (Notes)

12 Months Ended

Mar. 31, 2013

Statement of Stockholders' Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

STOCKHOLDERS' EQUITY

Conversion and Stock Offering. On October 24, 1994, the Bank issued in an initial public offering 2,314,375 shares of common stock, par value $0.01 (the “Common Stock”), at a price of $10 per share resulting in net proceeds of $21.5 million.  As part of the initial public offering, the Bank established a liquidation account at the time of conversion, in an amount equal to the surplus and reserves of the Bank at September 30, 1994.  In the unlikely event of a complete liquidation of the Bank (and only in such event), eligible depositors who continue to maintain accounts shall be entitled to receive a distribution from the liquidation account.  The total amount of the liquidation account may be decreased if the balances of eligible deposits decreased as measured on the annual determination dates.  The Bank is not permitted to pay dividends to the Company on its capital stock if the effect thereof would cause its net worth to be reduced below either: (i) the amount required for the liquidation account, or (ii) the amount required for the Bank to comply with applicable minimum regulatory capital requirements.

Regulatory Capital. The operations and profitability of the Bank are significantly affected by legislation and the policies of the various regulatory agencies. The OCC has promulgated capital requirements for financial institutions consisting of minimum tangible and core capital ratios of 1.5% and 3%, respectively, of the institution's adjusted total assets and a minimum risk-based capital ratio of 8% of the institution's risk weighted assets.  Although the minimum core capital ratio is 3%, the Federal Deposit Insurance Corporation Improvement Act (“FDICIA”), as amended, stipulates that an institution with less than 4% core capital is deemed undercapitalized. In assessing an institution's capital adequacy, the OCC takes into consideration not only these numeric factors but also qualitative factors as well, and has the authority to establish higher capital requirements for individual institutions where necessary.  Carver Federal, as a matter of prudent management, targets as its goal the maintenance of capital ratios which exceed these minimum requirements and that are consistent with Carver Federal's risk profile.  The previously described Cease and Desist Order Carver Federal entered into with the OCC included a capital directive requiring the Bank to achieve and maintain minimum regulatory capital levels of a Tier I leverage capital ratio of 9% and a total risk-based capital ratio of 13% by April 30, 2011. At March 31, 2013, the Bank's capital level exceeded the regulatory requirements with a Tier 1 leverage capital ratio of 10.26%, total risk-based capital ratio of 19.55% and a Tier 1 risk-based capital ratio of 16.99%.

On June 29, 2011 the Company raised $55 million of capital. The $55 million resulted in a $51.4 million increase in liquidity net of the effect of various expenses associated with the capital raise. On June 30, 2011, the Company downstreamed $37 million to the Bank. In December 2011, the Company downstreamed another $7 million to the Bank. The remainder of the net capital raised is retained by the Company for future strategic purposes or to downstream into the Bank, if necessary. No assurances can be given that the amount of capital raised is sufficient to absorb the expected losses in the Bank's loan portfolio. Should the losses be greater than expected, additional capital may be necessary in the future.

In addition, no assurances can be given that the Bank and the Company will continue to comply with all provisions of the Order. Failure to comply with these provisions could result in further regulatory actions to be taken by the regulators.

The table below presents the capital position of the Bank at March 31, 2013.

	Tier 1			Tier 1			Total
($ in thousands)	Leverage Capital Ratio			Risk-Based Capital Ratio			Risk-Based Capital Ratio
GAAP Capital at March 31, 2013	$	66,116		$	66,116		$	66,116
Add:
General valuation allowances	—			—			4,900
Qualifying subordinated debt	—			—			5,000
Other	474			474			474
Deduct:
Unrealized gains on securities available-for-sale, net	1,064			1,064			1,064
Regulatory Capital	$	65,526		$	65,526		$	75,426
Minimum Capital requirement	57,501			50,152			50,152
Regulatory Capital Excess	$	8,025		$	15,374		$	25,274
Capital Ratios	10.26		%	16.99		%	19.55		%

Comprehensive Income (Loss). Comprehensive income (loss) represents net income (loss) and certain amounts reported directly in stockholders' equity, such as net unrealized gain or loss on securities available-for-sale and loss on pension obligations. The Company has reported its comprehensive income (loss) for fiscal 2013, 2012 and 2011 in the Consolidated Statements of Changes in Stockholders' Equity and Comprehensive Income/(Loss).  Carver Federal's accumulated other comprehensive income (loss) included net unrealized gains on securities of $0.7 million at March 31, 2013 and $0.4 million at March 31, 2012. Also included in accumulated other comprehensive income (loss) was a loss on the Bank's pension plan liabilities of $0.5 million and $0.2 million at March 31, 2013 and 2012, respectively.