Stockholders' Equity (Notes)

12 Months Ended

Mar. 31, 2016

Stockholders' Equity Note [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. In July 2013, the FDIC and the other federal bank regulatory agencies issued a final rule that revised their leverage and risk-based capital requirements and the method for calculating risk-weighted assets to make them consistent with agreements that were reached by the Basel Committee on Banking Supervision and certain provisions of the Dodd-Frank Act. Among other things, the rule established a new common equity Tier 1 minimum capital requirement of 4.5% of risk-weighted assets, and increased the minimum Tier 1 capital to risk-based assets requirement from 4% to 6% of risk-weighted assets. The final rule became effective for the Bank on January 1, 2015. In assessing an institution's capital adequacy, the OCC takes into consideration not only these numeric factors but also qualitative factors, 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 Formal Agreement that 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 1 leverage ratio of 9% and a total risk-based capital ratio of 12%. At March 31, 2016, the Bank's capital level exceeded the regulatory requirements with a Tier 1 leverage ratio of 9.22%, total risk-based capital ratio of 14.04% and a Tier 1 risk-based capital ratio of 12.66%.

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. During 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 losses emanating from the Bank's loan portfolio. Should the losses be greater than expected, additional capital may be necessary in the future.

The table below presents the Bank's regulatory capital ratios at March 31, 2016 and 2015.

	March 31, 2016				March 31, 2015 Restated (1)
($ in thousands)	Amount		Ratio		Amount		Ratio
Tier 1 leverage capital
Regulatory capital	$	66,476	9.22	%	$	65,910	10.63	%
Minimum capital requirement	28,838		4.00	%	24,793		4.00	%
Excess	37,638		5.22	%	41,117		6.63	%
Common equity Tier 1
Regulatory capital	$	66,476	12.66	%	$	65,910	14.80	%
Minimum capital requirement	23,653		4.50	%	20,045		4.50	%
Excess	42.823		8.16	%	45.865		10.30	%
Tier 1 risk-based capital
Regulatory capital	$	66,476	12.66	%	$	65,910	14.80	%
Minimum capital requirement	31,538		6.00	%	26,726		6.00	%
Excess	34,938		6.66	%	39,184		8.80	%
Total risk-based capital
Regulatory capital	$	73,797	14.04	%	$	73,404	16.48	%
Minimum capital requirement	42,050		8.00	%	35,635		8.00	%
Excess	31,747		6.04	%	37,769		8.48	%

⁽¹⁾ March 31, 2015 balances have been restated from previously reported results to correct for material and certain other errors from prior periods. Refer to Notes 1 and 18 for further detail.