
	March 31, 2020						March 31, 2019
$ in thousands	Amount		%		Amount		%
Gross loans receivable:
One-to-four family	$	105,532	24.8	%	$	108,363	25.5	%
Multifamily	89,241		21.0	%	86,177		20.2	%
Commercial real estate	141,761		33.3	%	130,812		30.7	%

Business ⁽¹⁾	85,425		20.1	%	96,430		22.7	%
Consumer ⁽²⁾	3,213		0.8	%	4,023		0.9	%
Total loans receivable	425,172		100.0	%	425,805		100.0	%


Unamortized premiums, deferred costs and fees, net	3,560				3,023

Allowance for loan losses	(4,946)				(4,646)
Total loans receivable, net	$	423,786			$	424,182

Substantially all of the Bank's real estate loans receivable are principally secured by properties located in New York City. Accordingly, as with most financial institutions in the market area, the ultimate collectability of a substantial portion of the Company's loan portfolio is susceptible to changes in market conditions in this area.

Real estate mortgage loan portfolios (one-to-four family) serviced for Federal National Mortgage Association (“FNMA”) and other third parties are not included in the accompanying consolidated financial statements. The unpaid principal balances of these loans aggregated $18.3 million and $19.4 million at March 31, 2020 and 2019, respectively.


$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	1,274	$	885	$	766	$	1,330	$	154	$	237	$	4,646
Charge-offs	(12)		—		—		(69)		(102)		—		(183)
Recoveries	302		—		—		160		2		—		464
Provision for (Recovery of) Loan Losses	(509)		126		46		146		158		52		19
Ending Balance	$	1,055	$	1,011	$	812	$	1,567	$	212	$	289	$	4,946

Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	$	899	$	1,011	$	812	$	1,557	$	212	$	289	$	4,780
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	156		—		—		10		—		—		166

Loan Receivables Ending Balance	$	107,528	$	89,887	$	142,410	$	85,659	$	3,248	$	—	$	428,732
Ending Balance: collectively evaluated for impairment	102,902		89,512		142,410		82,210		3,248		—		420,282
Ending Balance: individually evaluated for impairment	4,626		375		—		3,449		—		—		8,450


$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	1,210	$	1,819	$	1,052	$	1,003	$	18	$	24	$	5,126
Charge-offs	(151)		(164)		—		(964)		(19)		—		(1,298)
Recoveries	190		158		—		705		35		—		1,088
Provision for (Recovery of) Loan Losses	25		(928)		(286)		586		120		213		(270)
Ending Balance	$	1,274	$	885	$	766	$	1,330	$	154	$	237	$	4,646

Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	$	1,103	$	885	$	766	$	1,312	$	154	$	237	$	4,457
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	171		—		—		18		—		—		189

Loan Receivables Ending Balance	$	109,926	$	86,886	$	131,292	$	96,661	$	4,063	$	—	$	428,828
Ending Balance: collectively evaluated for impairment	104,509		83,672		130,816		93,399		4,063		—		416,459
Ending Balance: individually evaluated for impairment	5,417		3,214		476		3,262		—		—		12,369


$ in thousands	March 31, 2020		March 31, 2019
Loans accounted for on a nonaccrual basis:
Gross loans receivable:
One-to-four family	$	3,582	$	4,488
Multifamily	375		3,214
Commercial real estate	—		476

Business	2,797		2,051
Consumer	22		65
Total nonaccrual loans	$	6,776	$	10,294

Nonaccrual loans generally consist of loans for which the accrual of interest has been discontinued as a result of such loans becoming 90 days or more delinquent as to principal and/or interest payments. Interest income on nonaccrual loans is recorded when received based upon the collectability of the loan. TDR loans consist of modified loans where borrowers have been granted concessions in regards to the terms of their loans due to financial or other difficulties, which rendered them unable to repay their loans under the original contractual terms.

At March 31, 2020, other non-performing assets totaled $120 thousand, which consisted of other real estate owned comprised of two foreclosed residential properties, compared to $404 thousand comprised of four residential properties at March 31, 2019. Other real estate loans is included in other assets in the consolidated statements of financial condition. There were no held-for-sale loans at March 31, 2020 or March 31, 2019.

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.


$ in thousands	Multifamily		Commercial Real Estate		Business
Credit Risk Profile by Internally Assigned Grade:
Pass	$	89,512	$	141,793	$	80,016
Special Mention	—		617		2,184
Substandard	375		—		3,459
Doubtful	—		—		—
Loss	—		—		—
Total	$	89,887	$	142,410	$	85,659

	One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing	$	103,946	$	3,225
Non-Performing	3,582		23
Total	$	107,528	$	3,248


$ in thousands	Multifamily		Commercial Real Estate		Business
Credit Risk Profile by Internally Assigned Grade:
Pass	$	83,672	$	128,319	$	90,336
Special Mention	—		2,497		2,425
Substandard	3,214		476		3,900


Total	$	86,886	$	131,292	$	96,661

	One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing	$	106,531	$	4,063
Non-Performing	3,395		—
Total	$	109,926	$	4,063


$ in thousands	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivable
One-to-four family	$	1,410	$	—	$	3,202	$	4,612	$	102,916	$	107,528
Multifamily	490		—		—		490		89,397		89,887
Commercial real estate	6,621		—		—		6,621		135,789		142,410

Business	1,360		3		700		2,063		83,596		85,659
Consumer	103		1		23		127		3,121		3,248
Total	$	9,984	$	4	$	3,925	$	13,913	$	414,819	$	428,732


$ in thousands	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivable
One-to-four family	$	1,827	$	—	$	3,395	$	5,222	$	104,704	$	109,926
Multifamily	2,580		—		2,118		4,698		82,188		86,886
Commercial real estate	121		—		—		121		131,171		131,292

Business	780		—		599		1,379		95,282		96,661
Consumer	87		53		65		205		3,858		4,063
Total	$	5,395	$	53	$	6,177	$	11,625	$	417,203	$	428,828

The following tables present information on impaired loans with the associated allowance amount, if applicable, at March 31, 2020 and 2019. Management determined the specific allowance based on the present value of expected future cash flows, discounted at the loan’s effective interest rate, except when the remaining source of repayment for the loan is the operation or liquidation of the collateral. In those cases, the current fair value of the collateral, less selling costs was used to determine the specific allowance recorded. When the ultimate collectability of the total principal of an impaired loan is in doubt and the loan is on nonaccrual status, all payments are applied to principal under the cost recovery method. When the ultimate collectability of the total principal of an impaired loan is not in doubt and the loan is on nonaccrual status, contractual interest is credited to interest income when received under the cash basis method. Interest income of $119 thousand and $122 thousand for fiscal years 2020 and 2019 respectively, would have been recorded on impaired loans had they performed in accordance with their original terms.


Impaired Loans by Class
	At March 31,
	2020										2019
$ 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	$	3,819	$	4,566	$	—	$	4,488	$	5,643	$	—
Multifamily	375		376		—		3,214		3,214		—
Commercial real estate	—		—		—		476		476		—

Business	2,797		2,917		—		1,974		2,017		—


With an allowance recorded:
One-to-four family	807		803		156		929		929		171


Business	652		652		10		1,288		1,288		18

Total	$	8,450	$	9,314	$	166	$	12,369	$	13,567	$	189


	For the years ended March 31,
	2020						2019
$ in thousands	Average Balance		Interest Income recognized		Average Balance		Interest Income recognized
With no specific allowance recorded:
One-to-four family	$	4,153	$	65	$	4,964	$	96
Multifamily	1,795		48		2,089		42
Commercial real estate	238		—		1,007		16

Business	2,385		47		1,293		18


With an allowance recorded:
One-to-four family	868		—		997		—
Multifamily	—		—		371		—


Business	970		—		1,983		10

Total	$	10,409	$	160	$	12,704	$	182

In certain circumstances, loan modifications involve a troubled borrower to whom the Bank may grant a modification. 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 Section 310-10-35. Situations around these modifications 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. Loans modified in TDRs are placed on nonaccrual 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 were no loan modifications made during the twelve months ended March 31, 2020. There were three loan modifications made during the twelve months ended March 31, 2019. The following table presents an analysis of the loan modifications that were classified as TDRs during the twelve month period ended March 31, 2019,


	Modifications to loans during the years ended March 31, 2019

$ in thousands	Number of loans	Pre-modification outstanding recorded investment		Post-Modification Recorded investment		Pre-Modification rate		Post-Modification rate


Business	3	$	2,776	$	2,776	6.51	%	6.04	%

In an effort to proactively resolve delinquent loans, Carver has selectively extended to certain borrowers concessions such as extensions, rate reductions or forbearance agreements. For the fiscal years ended March 31, 2020 and 2019, there were no modified loans that defaulted with the last 12 months of modification. Total TDR loans at March 31, 2020 were $3.9 million, $2.2 million of which were non-performing as they were either not consistently performing in accordance with their modified terms or not performing in accordance with their modified terms for at least six months. At March 31, 2019, total TDR loans were $5.4 million, of which $3.2 million were non-performing.

Federal law requires that all loans or extensions of credit to executive officers and directors must be made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with the general public and must not involve more than the normal risk of repayment or present other unfavorable features.

Furthermore, loans above the greater of $25,000, or 5% of Carver Federal’s capital and surplus (up to $500,000), to Carver Federal’s directors and executive officers must be approved in advance by a majority of the disinterested members of Carver Federal’s Board of Directors.