The following is a summary of loans receivable, net of allowance for loan losses at March 31:


	March 31, 2021				March 31, 2020
$ in thousands	Amount		%		Amount		%
Gross loans receivable:
One-to-four family	$	76,313	15.9	%	$	105,532	24.8	%
Multifamily	103,584		21.6	%	89,241		21.0	%
Commercial real estate	149,472		31.1	%	141,761		33.3	%

Business (1)	148,662		30.9	%	85,425		20.1	%
Consumer (2)	2,439		0.5	%	3,213		0.8	%
Total loans receivable	480,470		100.0	%	425,172		100.0	%


Unamortized premiums, deferred costs and fees, net	3,079				3,560

Allowance for loan losses	(5,140)				(4,946)
Total loans receivable, net	$	478,409			$	423,786

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 $16.8 million and $18.3 million at March 31, 2021 and 2020, respectively.

The Bank is participating as a lender in the Paycheck Protection Program ("PPP"), which opened on April 3, 2020. As part of the CARES Act, the Small Business Administration ("SBA") is authorized to temporarily guarantee loans under this new 7(a) loan program. Under the PPP, small businesses and other entities and individuals can apply for loans from existing SBA lenders and other approved regulated lenders that enroll in the program, subject to numerous limitations and eligibility criteria. Since the PPP loans are fully guaranteed by the SBA, there are no additional ALLL reserves required. As of March 31, 2021, the Bank has approved and funded approximately 304 applications totaling $42.9 million of loans under the PPP. The Bank has begun to receive debt forgiveness payments on PPP loans closed during the first round of the program.

Consistent with regulatory guidance and the provisions of the CARES Act, loans less than 30 days past due at December 31, 2019 that were granted COVID-19 related payment deferrals will continue to be considered current and not be reported as TDRs. For the fiscal year ended March 31, 2021, the Bank received 83 applications for payment deferrals on approximately $90.4 million of loans. This total includes 61 commercial loans totaling $83.5 million and 22 residential loans totaling $6.9 million. As of March 31, 2021, we have 15 loans remaining that are on deferment with outstanding principal balances totaling $8.3 million. The Bank has been working with the borrowers to determine if there is a risk of any losses associated with repayment and if any additional reserves would have to be allocated to this portfolio.

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, 2021:


$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	1,055	$	1,011	$	812	$	1,567	$	212	$	289	$	4,946
Charge-offs	—		—		—		(24)		(54)		—		(78)
Recoveries	88		—		—		278		6		—		372
Provision for (Recovery of) Loan Losses	(85)		(131)		95		34		1		(14)		(100)
Ending Balance	$	1,058	$	880	$	907	$	1,855	$	165	$	275	$	5,140

Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	$	1,026	$	880	$	907	$	1,729	$	165	$	275	$	4,982
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	32		—		—		126		—		—		158

Loan Receivables Ending Balance	$	78,213	$	106,400	$	148,809	$	147,680	$	2,447	$	—	$	483,549
Ending Balance: collectively evaluated for impairment	74,387		106,031		147,891		139,925		2,447		—		470,681
Ending Balance: individually evaluated for impairment	3,826		369		918		7,755		—		—		12,868

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, 2020:


$ 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

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, 2021, other non-performing assets totaled $60 thousand, which consisted of other real estate owned comprised of one foreclosed residential property, compared to $120 thousand comprised of two foreclosed residential properties at March 31, 2020. 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, 2021 or March 31, 2020.

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.


$ in thousands	Multifamily		Commercial Real Estate		Business
Credit Risk Profile by Internally Assigned Grade:
Pass	$	101,212	$	142,168	$	137,447
Special Mention	—		5,531		1,585
Substandard	5,188		1,110		8,648


Total	$	106,400	$	148,809	$	147,680

	One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing	$	74,689	$	2,356
Non-Performing	3,524		91
Total	$	78,213	$	2,447


$ 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


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	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	$	1,188	$	—	$	2,950	$	4,138	$	74,075	$	78,213
Multifamily	798		—		—		798		105,602		106,400
Commercial real estate	5,263		—		—		5,263		143,546		148,809

Business	671		400		271		1,342		146,338		147,680
Consumer	2		33		91		126		2,321		2,447
Total	$	7,922	$	433	$	3,312	$	11,667	$	471,882	$	483,549


$ 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

The following tables present information on impaired loans with the associated allowance amount, if applicable, at March 31, 2021 and 2020. 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 $161 thousand and $119 thousand for fiscal years 2021 and 2020 respectively, would have been recorded on impaired loans had they performed in accordance with their original terms.


Impaired Loans by Class
	At March 31,
	2021						2020
$ 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	$	3,750	$	4,409	$	—	$	3,819	$	4,566	$	—
Multifamily	369		369		—		375		376		—
Commercial real estate	918		918		—		—		—		—

Business	2,332		2,527		—		2,797		2,917		—


With an allowance recorded:
One-to-four family	76		72		32		807		803		156


Business	5,423		5,423		126		652		652		10

Total	$	12,868	$	13,718	$	158	$	8,450	$	9,314	$	166


	For the years ended March 31,
	2021				2020
$ in thousands	Average Balance		Interest Income recognized		Average Balance		Interest Income recognized
With no specific allowance recorded:
One-to-four family	$	4,119	$	64	$	4,153	$	65
Multifamily	1,791		16		1,795		48
Commercial real estate	697		10		238		—

Business	2,153		102		2,385		47


With an allowance recorded:
One-to-four family	503		—		868		—
Multifamily	—		—		—		—


Business	3,355		—		970		—

Total	$	12,618	$	192	$	10,409	$	160

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 was one loan modification made during the twelve months ended March 31, 2021. There were no loan modifications made during the twelve months ended March 31, 2020. The following table presents an analysis of the loan modifications that were classified as TDRs during the twelve month period ended March 31, 2021,

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, 2021 and 2020, there were no modified loans that defaulted within the last 12 months of modification. Total TDR loans at March 31, 2021 were $7.5

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.