Loan Receivable and Allowance for Loan and Lease Losses (Tables)

9 Months Ended

Dec. 31, 2013

LOANS RECEIVABLE AND ALLOWANCE FOR LOAN AND LEASE LOSSES [Abstract]

Schedule of Accounts, Notes, Loans and Financing Receivable [Table Text Block]

The following is a summary of loans receivable, net, and loans held-for-sale at December 31, 2013 and March 31, 2013:

	December 31, 2013					March 31, 2013
$ in thousands	Amount			Percent		Amount			Percent
Gross loans receivable:
One-to-four family	$	117,182		30	%	$	73,625		20	%
Multifamily	47,431			12	%	56,427			15	%
Commercial real estate	194,737			50	%	203,813			55	%
Construction	5,100			1	%	1,228			—	%
Business	28,432			7	%	35,795			10	%
Consumer (1)	155			—	%	247			—	%
Total loans receivable	$	393,037		100	%	$	371,135		100	%
Add:
Premium on loans	996					728
Less:
Deferred fees and loan discounts,net	(870		)			(1,741		)
Allowance for loan losses	(8,415		)			(10,989		)
Total loans receivable, net	$	384,748				$	359,133
Loans held-for-sale	$	7,678				$	13,107

Allowance for Credit Losses on Financing Receivables [Table Text Block]

The following is an analysis of the allowance for loan losses based upon the method of evaluating loan impairment for the fiscal year ended March 31, 2013.

$ in thousands	One-to-four family Residential		Multi-Family Mortgage			Commercial Real Estate			Construction			Business		Consumer and Other			Total
Allowance for loan losses:
Beginning Balance	$	4,305	$	5,409		$	6,709		$	1,532		$	1,786	$	80		$	19,821
Charge-offs	2,103		226			1,148			151			2,274		1			5,903
Recoveries	15		91			—			22			265		5			398
Provision for Loan Losses	1,279		(4,866		)	(2,263		)	(1,403		)	3,982		(56		)	(3,327		)
Ending Balance	$	3,496	$	408		$	3,298		$	—		$	3,759	$	28		$	10,989
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	3,179		409			3,103			—			1,959		28			8,678
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	317		—			194			—			1,800		—			2,311
Loan Receivables Ending Balance:	$	73,987	$	56,607		$	202,771		$	1,230		$	35,277	$	250		370,122
Ending Balance: collectively evaluated for impairment	67,619		55,991			186,336			—			28,904		250			339,100
Ending Balance: individually evaluated for impairment	6,368		616			16,435			1,230			6,373		—			31,022

he following is an analysis of the allowance for loan losses based upon the method of evaluating loan impairment for the nine month period ended December 31, 2013.

$ in thousands	One-to-four family Residential		Multi-Family Mortgage		Commercial Real Estate			Construction			Business			Consumer			Total
Allowance for loan losses:
Beginning Balance	$	3,496	$	408	$	3,298		$	—		$	3,759		$	28		$	10,989
Charge-offs	1,619		98		570			—			572			15			2,874
Recoveries	515		23		—			149			326			13			1,026
Provision for Loan Losses	1,675		48		(508		)	(149		)	(1,748		)	(44		)	(726		)
Ending Balance	$	4,067	$	381	$	2,220		$	—		$	1,765		$	(18	)	$	8,415
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	3,636		329		1,971			—			1,212			16			7,164
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	431		52		249			—			519			—			1,251
Loan Receivables Ending Balance	$	118,187	$	47,544	$	194,019		$	5,068		$	28,083		$	262		$	393,163
Ending Balance: collectively evaluated for impairment	110,268		46,181		181,435			5,068			23,022			261			366,235
Ending Balance: individually evaluated for impairment	7,919		1,363		12,584			—			5,061			1			26,928

The following is an analysis of the allowance for loan losses based upon the method of evaluating loan impairment for the nine month period ended December 31, 2012.

$ in thousands	One-to-four family Residential		Multi-Family Mortgage			Commercial Real Estate			Construction			Business		Consumer and Other			Total
Allowance for loan losses:
Beginning Balance	$	4,305	$	5,409		$	6,709		$	1,532		$	1,786	$	80		$	19,821
Charge-offs	2,103		226			1,149			151			2,152		3			5,784
Recoveries	—		—			—			22			34		4			60
Provision for Loan Losses	2,394		(4,155		)	(921		)	(1,403		)	4,521		(50		)	386
Ending Balance	$	4,596	$	1,028		$	4,639		$	—		$	4,189	$	31		$	14,483
Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	4,217		1,028			4,182			—			2,368		31			11,826
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	379		—			457			—			1,821		—			2,657
Loan Receivables Ending Balance:	$	61,726	$	67,058		$	200,641		$	1,230		$	33,519	$	280		$	364,454
Ending Balance: collectively evaluated for impairment	54,939		67,058			184,742			—			27,757		280			334,776
Ending Balance: individually evaluated for impairment	6,787		—			15,899			1,230			5,762		—			29,678

Non performing loans [Table Text Block]

The following is a summary of non-accrual loans at December 31, 2013 and March 31, 2013.

$ in thousands	December 31, 2013		March 31, 2013
Gross loans receivable:
One-to-four family	$	3,736	$	7,642
Multifamily	1,363		423
Commercial real estate	8,702		14,788
Construction	—		1,230
Business	1,120		6,505
Consumer and other	1		38
Total non-accrual loans	$	14,922	$	30,626

Non-accrual loans decreased $15.7 million, or 51.3%, to $14.9 million at December 31, 2013 from $30.6 million at March 31, 2013. The majority of the decline during the current nine month period ended December 31, 2013 related to fifteen non-performing loans with a balance of $8.2 million that were moved to held-for-sale, ten TDR loans with a balance of $6.4 million that were upgraded to accrual status as they had performed in accordance with their modified terms for six months and one multifamily loan with a balance of $1.1 million that was paid off.

Non-performing loans at December 31, 2013, were comprised of $9.6 million of loans 90 days or more past due and non-accruing, $3.3 million of loans classified as a troubled debt restructuring and either not consistently performing in accordance with their modified terms or not performing in accordance with their modified terms for at least six months, and $2.0 million of loans that are either performing or less than 90 days past due and have been classified as impaired.

Non-performing loans at March 31, 2013, were comprised of $9.1 million of loans 90 days or more past due and non-accruing, $16.7 million of loans classified as a troubled debt restructuring and either not consistently performing in accordance with their modified terms or not performing in accordance with their modified terms for at least six months, and $4.9 million of loans that were either performing or less than 90 days past due and had been classified as impaired.

At December 31, 2013, other non-performing assets totaled $9.1 million which consists of other real estate owned and held-for-sale loans. At December 31, 2013, other real estate owned valued at $1.4 million comprised of ten foreclosed properties,compared to $2.4 million comprised of nine properties at March 31, 2013. At December 31, 2013, held-for-sale loans totaled $7.7 million, compared to $13.1 million at March 31, 2013.

Schedules of Concentration of Risk, by Risk Factor [Table Text Block]

As of March 31, 2013, and based on the most recent analysis performed, the risk category by class of loans is as follows:

$ in thousands	Multi-Family Mortgage		Commercial Real Estate		Construction		Business
Credit Risk Profile by Internally Assigned Grade:
Pass	$	53,419	$	165,965	$	—	$	23,651
Special Mention	—		3,400		—		2,922
Substandard	3,188		33,406		1,230		8,704
Total	$	56,607	$	202,771	$	1,230	$	35,277
$ in thousands					One-to-four family Residential		Consumer and Other
Credit Risk Profile Based on Payment Activity:
Performing					$	66,344	$	212
Non-Performing					7,643		38
Total					$	73,987	$	250

The Bank utilizes an internal loan classification system as a means of reporting problem loans within its loan categories. Loans may be classified as "Pass," “Special Mention,” “Substandard,” “Doubtful,” and “Loss.” Loans rated Pass have demonstrated satisfactory asset quality, earning history, liquidity, and other adequate margins of creditor protection. They represent a moderate credit risk and some degree of financial stability. Loans are considered collectible in full, but perhaps require greater than average amount of loan officer attention. Borrowers are capable of absorbing normal setbacks without failure. Loans rated Special Mention have potential weaknesses that deserve management's close attention. If left 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. Loans rated Substandard are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must 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. Loans rated Doubtful have all the weaknesses inherent in those classified Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, based on currently existing facts, conditions and values, highly questionable and improbable. Loans classified as Loss are those considered uncollectible with insignificant value and are charged-off immediately to the allowance for loan losses.

One-to-four family residential loans and consumer and other loans are rated non-performing if they are delinquent in payments ninety or more days, a troubled debt restructuring with less than six months contractual performance or past maturity. All other one-to-four family residential loans and consumer and other loans are performing loans.

As of December 31, 2013, the risk category by class of loans is as follows:

$ in thousands	Multi-Family Mortgage		Commercial Real Estate		Construction		Business
Credit Risk Profile by Internally Assigned Grade:
Pass	$	45,006	$	163,983	$	5,068	$	19,827
Special Mention	—		12,879		—		2,044
Substandard	2,538		17,157		—		6,212
Total	$	47,544	$	194,019	$	5,068	$	28,083

$ in thousands	One-to-four family Residential		Consumer and Other
Credit Risk Profile Based on Payment Activity:
Performing	$	114,451	$	261
Non-Performing	3,736		1
Total	$	118,187	$	262

Schedule of Financing Receivables, Non Accrual Status [Table Text Block]

The following table presents an aging analysis of the recorded investment of past due financing receivable as of March 31, 2013.

$ in thousands	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Non-performing TDR		Performing TDR (1)		Impaired(2)		Current		Total Financing Receivables
One-to-four family residential	$	348	$	28	$	4,501	$	4,877	$	3,141	$	2,670	$	—	63,299		73,987
Multi-family mortgage	238		1,142		423		1,803		—		616		—		54,188		56,607
Commercial real estate	220		846		2,671		3,737		9,097		1,290		3,020		185,627		202,771
Construction	—		—		—		—		—		—		1,230		—		1,230
Business	261		148		1,439		1,848		4,447		464		619		27,899		35,277
Consumer and other	6		1		38		45		—		—		—		205		250
Total	$	1,073	$	2,165	$	9,072	$	12,310	$	16,685	$	5,040	$	4,869	$	331,218	$	370,122

The following table presents an aging analysis of the recorded investment of past due financing receivable as of December 31, 2013.

$ in thousands	30-59 Days Past Due		60-89 Days Past Due		Greater Than 90 Days		Total Past Due		Non-performing TDR		Performing TDR (1)		Impaired(2)		Current		Total Financing Receivables
One-to-four family residential	$	1,304	$	248	$	2,239	$	3,791	$	1,497	$	3,189	—		$	109,710	$	118,187
Multi-family mortgage	—		—		1,363		1,363		—		—		—		46,181		47,544
Commercial real estate	293		—		5,541		5,834		1,798		3,882		1,363		181,142		194,019
Construction	—		—		—		—		—		—		—		5,068		5,068
Business	321		—		468		789		33		3,941		619		22,701		28,083
Consumer and other	1		1		1		3		—		—		—		259		262
Total	$	1,919	$	249	$	9,612	$	11,780	$	3,328	11,012		$	1,982	$	365,061	$	393,163

Impaired Financing Receivables [Table Text Block]

The following table presents information on impaired loans with the associated allowance amount, if applicable, at December 31, 2013 and March 31, 2013.

	December 31, 2013			March 31, 2013
$ in thousands	Recorded Investment	Unpaid Principal Balance	Associated Allowance	Recorded Investment		Unpaid Principal Balance		Associated Allowance
With no specific allowance recorded:
One-to-four family residential	2,667	3,052	—	$	1,319	$	1,460	—
Multi-family mortgage	1,038	1,038	—	616		616		—
Commercial real estate	9,548	9,724	—	11,070		11,270		—
Construction	—	—	—	1,230		1,492		—
Business	2,176	2,249	—	1,080		2,002		—
Consumer and other	1	1	—	—		—		—
With an allowance recorded:
One-to-four family residential	5,252	5,377	431	$	5,049	$	5,244	$	317
Multi-family mortgage	324	423	52	—		—		—
Commercial real estate	3,036	3,248	249	5,365		5,913		194
Business	2,885	2,885	519	5,293		5,293		1,800
Total	26,927	27,997	1,251	31,022		33,290		2,311

The following tables presents information on average balances on impaired loans and the interest income recognized for the three and nine month periods ended December 31, 2013 and 2012.

	Three months ended
	December 31, 2013				December 31, 2012
$ in thousands	Average Balance		Interest Income Recognized		Average Balance		Interest Income Recognized
With no specific allowance recorded:
One-to-four family residential	$	1,793	$	4	$	659	$	11
Multi-family mortgage	1,206		5		—		—
Commercial real estate	9,086		65		7,402		40
Construction	38		—		2,743		—
Business	1,953		40		1,064		—
Consumer and other	1		—		—		—
With an allowance recorded:
One-to-four family residential	$	5,210	$	58	$	4,197	$	26
Multi-family mortgage	162		—		339		—
Commercial real estate	3,041		32		6,732		40
Business	2,870		78		4,593		55
Total	25,360		282		27,729		172

	Nine months ended
	December 31, 2013			December 31, 2012
$ in thousands	Average Balance	Interest Income Recognized		Average Balance	Interest Income Recognized
With no specific allowance recorded:
One-to-four family residential	1,889	$	5	1,646	38
Multi-family mortgage	519	6		98	5
Commercial real estate	9,104	127		8,553	191
Construction	615	—		2,515	53
Business	1,684	47		3,346	41
Consumer and other	1	—		—	—
With an allowance recorded:
One-to-four family residential	5,464	$	98	6,341	54
Multi-family mortgage	162	—		984	—
Commercial real estate	5,138	37		11,838	155
Construction	—	—		556	—
Business	3,728	114		3,076	254
Total	28,304	434		38,953	791

Troubled Debt Restructurings on Financing Receivables [Table Text Block]

In certain circumstances, loan modifications involve a troubled borrower to whom the Bank may grant a modification. Situations around modifications involving troubled borrowers 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. In cases where the Bank grants any significant concessions to a troubled borrower, the Bank accounts for the modification as a TDR under ASC Subtopic 310-40 and the related allowance under ASC Subtopic 310-10-35. Loans modified in TDRs are placed on non-accrual 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 was one modification made during the three month period ended December 31, 2013.

The following table presents an analysis of those loan modifications that were classified as TDRs during the nine month period ended December 31, 2013:

	Modifications to loans during the three month period ended									Modifications to loans during the nine month period ended
	December 31, 2013									December 31, 2013
$ in thousands	Number of loans	Pre- modification outstanding recorded investment		Post modification recorded investment		Pre-Modification rate		Post-Modification rate		Number of loans	Pre- modification outstanding recorded investment		Post modification recorded investment		Pre-Modification rate		Post-Modification rate
One-to-four family residential	1	$	429	$	428	6.50	%	4.50	%	2	$	913	$	975	7.03	%	5.06	%
Business	—	—		—						1	919		719		6.00	%	6.00	%
	1	$	429	$	428					3	$	1,832	$	1,694

There were no modifications made during the three month period ended December 31, 2012. The following table presents an analysis of those loan modifications that were classified as TDRs during the nine month period ended December 31, 2012:

	Modifications to loans during the nine month period ended
	December 31, 2012
$ in thousands	Number of loans	Pre- modification outstanding recorded investment		Post modification recorded investment		Pre-Modification rate		Post-Modification rate
One-to-four family residential	2	$	1,415	$	536	6.52	%	6.31	%
Commercial real estate	2	1,061		1,060		12.02	%	12.02	%
Business	4	2,242		2,210		7.44	%	7.44	%
Total	8	$	4,718	$	3,806

In an effort to proactively manage delinquent loans, Carver has selectively extended to certain borrowers concessions such as extensions, rate reductions or forbearance agreements. For the three month period ended December 31, 2013, one loan of $429 thousand was modified with an interest rate concession of 2.00%. For the nine month period ended December 31, 2013, two loans of $1.0 million were modified with interest rate concessions of 2.00% and one loan of $0.7 million was extended. For the three month period ended December 31, 2012, no loans were modified. For the nine month period ended December 31, 2012, one loan of $0.5 million was modified with an interest rate concession of 1.25%.

For the period ended December 31, 2013, there were no loans that had been modified and subsequently defaulted within the last twelve months. For the period ended December 31, 2012, Carver had one commercial real estate loans with an outstanding balance of $2.4 million that had been modified and subsequently defaulted within the 12 month period.

At December 31, 2013 there were eighteen loans in the TDR portfolio totaling $11.0 million that were on accrual status as the Company has determined that the future collection of the principal and interest is reasonably assured, this generally represents those borrowers who have performed according to the restructured terms for a period of at least six months. At March 31, 2013, there were nine loans in the performing TDR portfolio totaling $5.0 million.