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


	March 31, 2022				March 31, 2021
$ in thousands	Amount		%		Amount		%
Gross loans receivable:
One-to-four family	$	69,297	12.0	%	$	76,313	15.9	%
Multifamily	160,800		27.9	%	103,584		21.6	%
Commercial real estate	174,270		30.2	%	150,114		31.2	%

Business (1)	170,497		29.6	%	148,020		30.8	%
Consumer (2)	1,623		0.3	%	2,439		0.5	%
Total loans receivable	576,487		100.0	%	480,470		100.0	%


Unamortized premiums, deferred costs and fees, net	3,017				3,079

Allowance for loan losses	(5,624)				(5,140)
Total loans receivable, net	$	573,880			$	478,409

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 $14.5 million and $16.8 million at March 31, 2022 and 2021, respectively.

The Bank participated 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") was authorized to temporarily guarantee loans under this new 7(a) loan program. Under the PPP, small businesses and other entities and individuals could 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, 2022, the Bank had approved and funded approximately 420 applications totaling $57.1 million of loans under the PPP. Business loans included PPP loans outstanding totaling $17.9 million as of March 31, 2022. The net loan origination fees on these loans totaled approximately $399 thousand and are being recognized into interest income on loans over the 2-year and 5-year stated maturity terms of the PPP loans using the straight-line deferral method. The Bank has begun to receive debt forgiveness payments on PPP loans closed during the first and second rounds 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 continued to be considered current and not 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. 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. At March 31, 2022, no loans were on COVID-related deferrals as the remaining 90-day loan deferments expired and borrowers became current.

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, 2022:


$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	1,058	$	880	$	907	$	1,855	$	165	$	275	$	5,140
Charge-offs	—		—		—		—		(257)		—		(257)
Recoveries	13		—		—		102		23		—		138
Provision for (Recovery of) Loan Losses	(340)		234		250		540		192		(273)		603
Ending Balance	$	731	$	1,114	$	1,157	$	2,497	$	123	$	2	$	5,624

Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	$	731	$	1,114	$	1,157	$	2,428	$	123	$	2	$	5,555
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	—		—		—		69		—		—		69

Loan Receivables Ending Balance	$	70,261	$	162,261	$	175,313	$	170,031	$	1,638	$	—	$	579,504
Ending Balance: collectively evaluated for impairment	65,369		161,746		175,313		163,991		1,638		—		568,057
Ending Balance: individually evaluated for impairment	4,892		515		—		6,040		—		—		11,447

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


$ in thousands	March 31, 2022		March 31, 2021
Loans accounted for on a nonaccrual basis:
Gross loans receivable:
One-to-four family	$	4,892	$	3,524
Multifamily	515		369
Commercial real estate	4,601		918

Business	1,448		2,290
Consumer	25		90
Total nonaccrual loans	$	11,481	$	7,191

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, 2022 and March 31, 2021, other non-performing assets totaled $60 thousand, which consisted of other real estate owned comprised of one foreclosed residential property. 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, 2022 and March 31, 2021.

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	$	155,274	$	164,543	$	155,196
Special Mention	897		8,157		6,302
Substandard	6,090		2,613		8,533


Total	$	162,261	$	175,313	$	170,031

	One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing	$	65,369	$	1,613
Non-Performing	4,892		25
Total	$	70,261	$	1,638


$ 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


March 31, 2022
$ 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	$	1,943	$	—	$	5,229	$	7,172	$	63,089	$	70,261
Multifamily	4,435		115		515		5,065		157,196		162,261
Commercial real estate	4,010		—		4,601		8,611		166,702		175,313

Business	923		40		664		1,627		168,404		170,031
Consumer	84		45		25		154		1,484		1,638
Total	$	11,395	$	200	$	11,034	$	22,629	$	556,875	$	579,504


March 31, 2021
$ 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

The following tables present information on impaired loans with the associated allowance amount, if applicable, at March 31, 2022 and 2021. 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 $266 thousand and $161 thousand for fiscal years 2022 and 2021 respectively, would have been recorded on impaired loans had they performed in accordance with their original terms.


Impaired Loans by Class
	At March 31,
	2022						2021
$ 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	$	4,892	$	5,576	$	—	$	3,750	$	4,409	$	—
Multifamily	515		515		—		369		369		—
Commercial real estate	—		—		—		918		918		—

Business	837		909		—		2,332		2,527		—


With an allowance recorded:
One-to-four family	—		—		—		76		72		32


Business	5,203		5,203		69		5,423		5,423		126

Total	$	11,447	$	12,203	$	69	$	12,868	$	13,718	$	158


	For the years ended March 31,
	2022				2021
$ in thousands	Average Balance		Interest Income recognized		Average Balance		Interest Income recognized
With no specific allowance recorded:
One-to-four family	$	4,321	$	50	$	4,119	$	64
Multifamily	442		16		1,791		16
Commercial real estate	459		7		697		10

Business	1,585		33		2,153		102


With an allowance recorded:
One-to-four family	38		—		503		—



Business	5,313		217		3,355		—

Total	$	12,158	$	323	$	12,618	$	192

In certain circumstances, loan modifications involve a troubled borrower to whom the Bank may grant a concession. In cases where the Bank grants any significant concessions to a troubled borrower, the Bank accounts for the modification as a TDR. 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, 2022. There was one loan modification made during the twelve months ended March 31, 2021. The following table presents an analysis of the loan modification that was classified as a TDR during the twelve month period ended March 31, 2021,


	Modifications to loans during the years ended March 31, 2021

$ in thousands	Number of loans	Pre-Modification Recorded Investment	Post-Modification Recorded investment	Pre-Modification rate		Post-Modification rate


Business	1	4,949	4,949	6.68	%	5.50	%

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, 2022 and 2021, there were no modified loans that defaulted within the last 12 months of modification. Total TDR loans at March 31, 2022 were $6.9 million, $1.7 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, 2021, total TDR loans were $7.5 million, of which $1.8 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.