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


	March 31, 2023				March 31, 2022
$ in thousands	Amount		%		Amount		%
Gross loans receivable:
One-to-four family	$	64,971	10.9	%	$	69,297	12.0	%
Multifamily	177,995		29.9	%	160,800		27.9	%
Commercial real estate	177,714		29.9	%	174,270		30.2	%

Business (1)	166,940		28.0	%	170,497		29.6	%
Consumer (2)	7,513		1.3	%	1,623		0.3	%
Total loans receivable	595,133		100.0	%	576,487		100.0	%


Unamortized premiums, deferred costs and fees, net	2,763				3,017

Allowance for loan losses	(5,229)				(5,624)
Total loans receivable, net	$	592,667			$	573,880

During fiscal year 2023, the Bank purchased $14.3 million loans at par, comprised of $4.0 million one-to-four family, $5.8 million commercial real estate, $613 thousand business and $3.9 million consumer loans. The Bank purchased $50.1 million loans at par during fiscal year 2022, comprised of $11.3 million one-to-four family, $15.1 million multifamily, $18.2 million commercial real estate and $5.6 million business loans.

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 $12.6 million and $14.5 million at March 31, 2023 and 2022, 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, 2023, 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 $568 thousand as of March 31, 2023. The net loan origination fees on these loans totaled approximately $4 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 continues to receive debt forgiveness payments on PPP loans closed during the first and second rounds of the program. As the loans are paid off, the remaining net deferred origination fees are accelerated into income.

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, 2023, 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, 2023:


$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Business		Consumer		Unallocated		Total
Allowance for loan losses:
Beginning Balance	$	731	$	1,114	$	1,157	$	2,497	$	123	$	2	$	5,624
Charge-offs	—		—		(586)		—		(141)		—		(727)
Recoveries	90		—		10		127		5		—		232
Provision for (Recovery of) Loan Losses	(105)		(5)		1,233		(1,485)		462		—		100
Ending Balance	$	716	$	1,109	$	1,814	$	1,139	$	449	$	2	$	5,229

Allowance for Loan Losses Ending Balance: collectively evaluated for impairment	$	607	$	1,109	$	1,814	$	937	$	449	$	2	$	4,918
Allowance for Loan Losses Ending Balance: individually evaluated for impairment	109		—		—		202		—		—		311

Loan Receivables Ending Balance	$	65,808	$	179,117	$	178,424	$	166,908	$	7,639	$	—	$	597,896
Ending Balance: collectively evaluated for impairment	60,805		179,046		171,234		160,985		7,638		—		579,708
Ending Balance: individually evaluated for impairment	5,003		71		7,190		5,923		1		—		18,188

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


$ in thousands	March 31, 2023		March 31, 2022
Loans accounted for on a nonaccrual basis:
Gross loans receivable:
One-to-four family	$	4,001	$	4,892
Multifamily	71		515
Commercial real estate	7,190		4,601

Business	998		1,448
Consumer	1		25
Total nonaccrual loans	$	12,261	$	11,481

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, 2023 and March 31, 2022, other non-performing assets totaled $60 thousand, which consisted of other real estate owned comprised of one foreclosed residential property. Other real estate loans are included in other assets in the consolidated statements of financial condition. There were no held-for-sale loans at March 31, 2023 and March 31, 2022.

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	$	175,981	$	170,534	$	154,056
Special Mention	771		701		5,719
Substandard	2,365		7,189		7,133


Total	$	179,117	$	178,424	$	166,908

	One-to-four family		Consumer
Credit Risk Profile Based on Payment Activity:
Performing	$	60,629	$	7,639
Non-Performing	5,179		—
Total	$	65,808	$	7,639


$ 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


March 31, 2023
$ 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	$	1,207	$	185	$	2,475	$	3,867	$	61,941	$	65,808
Multifamily	1,458		—		71		1,529		177,588		179,117
Commercial real estate	1,370		—		—		1,370		177,054		178,424

Business	11,006		—		5,014		16,020		150,888		166,908
Consumer	99		26		34		159		7,480		7,639
Total	$	15,140	$	211	$	7,594	$	22,945	$	574,951	$	597,896


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

The following tables present information on impaired loans with the associated allowance amount, if applicable, at March 31, 2023 and 2022. 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 $189 thousand and $266 thousand for fiscal years 2023 and 2022 respectively, would have been recorded on impaired loans had they performed in accordance with their original terms.


Impaired Loans by Class
	At March 31,
	2023						2022
$ 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	$	3,972	$	4,567	$	—	$	4,892	$	5,576	$	—
Multifamily	71		71		—		515		515		—
Commercial real estate	7,190		7,378		—		—		—		—

Business	1,114		1,146		—		837		909		—
Consumer	1		1		—		—		—		—

With an allowance recorded:
One-to-four family	1,031		1,031		109		—		—		—


Business	4,809		4,820		202		5,203		5,203		69

Total	$	18,188	$	19,014	$	311	$	11,447	$	12,203	$	69


	For the years ended March 31,
	2023				2022
$ in thousands	Average Balance		Interest Income recognized		Average Balance		Interest Income recognized
With no specific allowance recorded:
One-to-four family	$	3,861	$	111	$	4,321	$	50
Multifamily	220		—		442		16
Commercial real estate	4,054		36		459		7

Business	1,723		—		1,585		33


With an allowance recorded:
One-to-four family	554		41		38		—



Business	5,116		316		5,313		217

Total	$	15,528	$	504	$	12,158	$	323

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 three loan modifications made during the twelve months ended March 31, 2023. There was no loan modification made during the twelve months ended March 31, 2022. The following table presents an analysis of the loan modifications that were classified as TDRs during the twelve months ended March 31, 2023,

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, 2023 and 2022, there were no modified loans that defaulted within the last 12 months of modification. Total TDR loans at March 31, 2023 were $7.6 million, $1.6 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, 2022, total TDR loans were $6.9 million, of which $1.7 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.