Office Properties and Equipment, Net Office Properties and Equipment, Net

12 Months Ended

Mar. 31, 2020

Property, Plant and Equipment [Abstract]

Office Properties and Equipment, Net

PREMISES AND EQUIPMENT, NET

The details of premises and equipment as of March 31 are as follows:

$ in thousands	2020		2019
Leasehold improvements	$	7,120	$	7,394
Furniture, equipment, and other	14,212		13,169
	21,332		20,563
Less accumulated depreciation and amortization	(15,955)		(15,507)
Premises and equipment, net	$	5,377	$	5,056

Depreciation and amortization charged to operations for fiscal years 2020 and 2019 amounted to $965 thousand and $793 thousand, respectively.

During fiscal year 2016, Carver conducted a sale and leaseback transaction on its Crown Heights branch location with an unaffiliated third party as part of the Bank's ongoing facilities rationalization efforts. Carver did not finance the purchase and the gain was calculated utilizing the profit on sale in excess of the present value of the minimum lease payments in accordance with ASC 840. The remaining amount of profit on the sale of the property was deferred from gain recognition to be amortized into income over the term of the lease. The deferred gain on the sale of the property was included in Other Liabilities on the Consolidated Statements of Financial Condition and totaled $468 thousand as of March 31, 2019.

During fiscal year 2018, Carver conducted a sale and leaseback transaction on its Harlem headquarters location with an unaffiliated third party. The Bank leased a portion of the property to continue to maintain its Main Office branch at the same location, and the administrative offices were relocated to a nearby facility. The Company recognized a $9.6 million gain on the sale and leaseback in the fourth quarter of fiscal year 2018. Carver did not finance the purchase and the gain was calculated utilizing the profit on sale in excess of the present value of the minimum lease payments in accordance with ASC 840. The remaining amount of profit on the sale of the property was deferred from gain recognition and was to be amortized into income over the term of the lease. The deferred gain on the sale of the property was included in Other Liabilities on the Consolidated Statements of Financial Condition and totaled $4.9 million as of March 31, 2019.

On April 1, 2019, the Company adopted Topic 842. As part of the adoption, the Company recorded a $5.3 million cumulative effect adjustment to retained earnings to recognize the total deferred gain balance related to sale and leaseback transactions at the adoption date. See Note 6 "Leases" for additional information.