UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, D.C. 20549

FORM 10-Q


☒						QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended ~~December~~June 3130, ~~2024~~2025


☐						TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period from to

Commission File Number: 001-13007

CARVER BANCORP, INC.

(Exact name of registrant as specified in its charter)

Delaware

13-3904174

(State or Other Jurisdiction of
Incorporation or Organization)

(I.R.S. Employer Identification No.)

75 West 125th Street

New York

10027

(Address of Principal Executive Offices)

(Zip Code)

Registrant’s telephone number, including area code: (718) 230-2900

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

CARV

The NASDAQ Stock Market, LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. þ Yes o No

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files). þ Yes oNo

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company, or an emerging growth company. See the definitions of “large accelerated filer,” “accelerated filer,” “smaller reporting company,” and "emerging growth company" in Rule 12b-2 of the Exchange Act.

☐

Large Accelerated Filer

☐

Accelerated Filer

☒

Non-accelerated Filer

☒

Smaller Reporting Company

☐

Emerging Growth Company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). ☐ Yes ☑ No

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date.

Class						Outstanding at ~~February~~August 12, 2025
Common Stock, par value $0.01						5,~~109~~076,~~728~~629

TABLE OF CONTENTS

		Page
PART I.	FINANCIAL INFORMATION (UNAUDITED)
Item 1.	Financial Statements
	Consolidated Statements of Financial Condition	1
	Consolidated Statements of Operations	2
	Consolidated Statements of Comprehensive Income (Loss)	3
	Consolidated Statement of Changes in Equity	4
	Consolidated Statements of Cash Flows	5
	Notes to Consolidated Financial Statements	6
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	2927
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	4541
Item 4.	Controls and Procedures	4541
PART II.	OTHER INFORMATION
Item 1.	Legal Proceedings	4642
Item 1A.	Risk Factors	4642
Item 2.	Unregistered Sales of Equity Securities, Use of Proceeds, and Issuer Purchases of Equity Securities	4642
Item 3.	Defaults Upon Senior Securities	4642
Item 4.	Mine Safety Disclosures	4642
Item 5.	Other Information	4642
Item 6.	Exhibits	4642
SIGNATURES		4844

PART I. FINANCIAL INFORMATION

CARVER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(Unaudited)

$ in thousands except per share data

~~December~~June 3130, ~~2024~~2025

March 31, ~~2024~~2025

ASSETS

Cash and cash equivalents:

Cash and due from banks

4943,~~449~~330

5849,~~522~~810

Money market investments

~~510~~505

~~503~~505

Total cash and cash equivalents

4943,~~959~~835

5950,~~025~~315

Investment securities:

Available-for-sale, at fair value (amortized cost of $57,118 and $60,735, respectively)

44,121

48,030

Available-for-sale, at fair value (amortized cost of $55,665 and $56,475, respectively)

43,836

44,522

Held-to-maturity, at amortized cost (fair value of $1,735 and $1,905, respectively)

1,807

2,008

Held-to-maturity, at amortized cost (fair value of $1,662 and $1,698, respectively)

1,704

1,750

Total investment securities

45,~~928~~540

5046,~~038~~272

Loans receivable:

Real estate mortgage loans

~~431~~412,~~576~~985

~~437~~423,~~577~~023

Commercial business loans

~~163~~165,~~579~~280

~~169~~164,~~602~~964

Consumer loans

1526,~~722~~993

1525,~~699~~697

Loans, net of deferred fees and costs

~~610~~605,~~877~~258

~~622~~613,~~878~~684

Allowance for credit losses

(6,~~057~~321)

(56,~~871~~337)

Total loans receivable, net

~~604~~598,~~820~~937

~~617~~607,~~007~~347

Premises and equipment, net

2,~~166~~002

2,~~567~~010

Federal Home Loan Bank of New York (“FHLB-NY”) stock, at cost

~~1,665~~868

~~2,004~~853

Accrued interest receivable

23,~~466~~251

32,~~662~~980

Right-of-use assets

87,~~884~~602

98,~~844~~247

Other assets

11,~~642~~589

1211,~~649~~967

Total assets

~~727~~713,~~530~~624

~~756~~729,~~796~~991

LIABILITIES AND EQUITY

LIABILITIES

Deposits:

Non-interest bearing checking

9790,~~297~~026

~~102~~89,~~013~~538

Interest-bearing deposits:

Interest-bearing checking

4341,~~600~~774

4644,~~358~~453

Savings

~~107~~111,~~095~~047

~~113~~111,~~187~~365

Money market

~~151~~158,~~796~~897

~~159~~161,~~105~~592

Certificates of deposit

~~236~~242,~~230~~705

~~223~~252,~~719~~129

Escrow

~~921~~1,082

2,~~617~~760

Total interest-bearing deposits

~~539~~555,~~642~~505

~~544~~572,~~986~~299

Total deposits

~~636~~645,~~939~~531

~~646~~661,~~999~~837

Advances from the FHLB-NY and other borrowed money

3821,~~281~~330

4620,~~536~~243

Operating lease liability

98,~~539~~192

108,~~616~~869

Other liabilities

10,~~505~~033

109,~~336~~464

Total liabilities

~~695~~685,~~264~~086

~~714~~700,~~487~~413

Commitments and contingencies (Note 8)

—

EQUITY

Preferred stock, (par value $0.01 per share: 9,557 Series D shares, with a liquidation preference of $1,000 per share, issued and outstanding, respectively)

9,557

Preferred stock (par value $0.01 per share: 3,177 Series E shares, with a liquidation preference of $1,000 per share, issued and outstanding, respectively)

3,177

Preferred stock (par value $0.01 per share: 9,000 Series F shares, with a liquidation preference of $1,000 per share, issued and outstanding, respectively)

9,000

Common stock (par value 0.01 per share: 10,000,000 shares authorized; 7,765,863 and 7,644,675 shares issued; 5,262,060 and 5,140,872 shares outstanding, respectively)

7778

Additional paid-in capital

87,~~881~~933

87,~~660~~920

Accumulated deficit

(6166,~~522~~470)

(5165,~~549~~293)

Treasury stock, at cost (2,503,803 shares, respectively)

(2,908)

Accumulated other comprehensive loss

(1211,~~997~~829)

(1211,~~705~~953)

Total equity

3228,~~266~~538

4229,~~309~~578

Total liabilities and equity

~~727~~713,~~530~~624

~~756~~729,~~796~~991

See accompanying notes to consolidated financial statements

CARVER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF OPERATIONS

(Unaudited)

Three Months Ended December 31,

Nine Months Ended December 31,

Three Months Ended June 30,

$ in thousands, except per share data

~~2024~~2025

~~2023~~2024

~~2024~~

~~2023~~

Interest income:

Loans

58,~~829~~426

78,~~336~~067

~~22,607~~

~~21,203~~

Mortgage-backed securities

~~132~~129

~~145~~140

~~405~~

~~439~~

Investment securities

~~243~~231

~~289~~292

~~823~~

~~835~~

Money market investments

~~641~~418

~~704~~708

~~2,043~~

~~1,801~~

Total interest income

69,~~845~~204

89,~~474~~207

~~25,878~~

~~24,278~~

Interest expense:

Deposits

3,~~416~~286

23,~~387~~111

~~9,760~~

~~6,112~~

Advances and other borrowed money

~~474~~277

~~606~~592

~~1,664~~

~~1,784~~

Total interest expense

3,~~890~~563

23,~~993~~703

~~11,424~~

~~7,896~~

Net interest income

25,~~955~~641

5,~~481~~504

~~14,454~~

~~16,382~~

Provision for (recovery of) credit losses

(97)

817

(Recovery of) provision for credit losses

(26)

260

Net interest income after provision for (recovery of) credit losses

25,~~859~~667

5,~~578~~244

~~13,637~~

~~16,305~~

Non-interest income:

Depository fees and charges

~~643~~673

~~543~~538

~~1,726~~

~~1,678~~

Loan fees and service charges

~~219~~158

~~101~~(29)

~~263~~

~~357~~

Loss on sale of loans, net

—

(191)

—

Grant income

—

Grant income

—

1,401

2,003

Other

437

116

Other

125

490

398

715

Total non-interest income

1,268

705

Total non-interest income

987

2,535

2,276

4,753

Non-interest expense:

Employee compensation and benefits

43,~~050~~681

3,~~452~~501

~~11,093~~

~~10,097~~

Net occupancy expense

1,~~295~~230

1,~~147~~197

~~3,771~~

~~3,428~~

Equipment, net

~~543~~590

~~470~~580

~~1,673~~

~~1,534~~

Data processing

~~759~~584

~~757~~732

~~2,284~~

~~2,265~~

Consulting fees

~~141~~137

~~133~~79

~~421~~

~~370~~

Federal deposit insurance premiums

~~158~~233

~~132~~170

~~487~~

~~415~~

Other

21,~~548~~657

21,~~003~~902

~~6,157~~

~~5,937~~

Total non-interest expense

98,~~494~~112

8,~~094~~161

~~25,886~~

~~24,046~~

(Loss) income before income taxes

(5,648)

(9,973)

(2,988)

Loss before income taxes

(1,177)

(2,212)

Income tax expense

—

Net (loss) income

(5,648)

(9,973)

(2,988)

Net loss

(1,177)

(2,212)

(Loss) earnings per common share:

Loss per common share:

Basic

(10.0922)

—(0.43)

~~(1.93)~~

~~(0.63)~~

Diluted

(10.0922)

—(0.43)

~~(1.93)~~

~~(0.63)~~

See accompanying notes to consolidated financial statements

CARVER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF COMPREHENSIVE ~~INCOME (~~LOSS)

(Unaudited)

	Three Months Ended December 31,				Nine Months Ended December 31,
	Three Months Ended June 30,
$ in thousands	~~2024~~2025		~~2023~~2024		~~2024~~		~~2023~~
Net (loss) income	$	(5,648)	$	19	$	(9,973)	$	(2,988)
Net loss	$	(1,177)	$	(2,212)
Other comprehensive (loss) income, net of tax:
Other comprehensive income (loss), net of tax:
Change in unrealized (loss) gain of securities available-for-sale, net of income tax expense of $0 (due to full valuation allowance)	(2,151)		3,037		(292)		(62)
Change in unrealized gain (loss) of securities available-for-sale, net of income tax expense of $0 (due to full valuation allowance)	124		(263)
Total other comprehensive (loss) income, net of tax	(2,151)		3,037		(292)		(62)
Total other comprehensive income (loss), net of tax	124		(263)
Total comprehensive (loss) income, net of tax	$	(7,799)	$	3,056	$	(10,265)	$	(3,050)
Total comprehensive loss, net of tax	$	(1,053)	$	(2,475)

See accompanying notes to consolidated financial statements

CARVER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

For the Three ~~and Nine~~ Months Ended ~~December~~June 3130, ~~2024~~2025 and ~~2023~~2024

(Unaudited)

$ in thousands	Preferred Stock		Common Stock		Additional Paid-In Capital		Accumulated Deficit		Treasury Stock		Accumulated Other Comprehensive Loss		Total Equity
Three Months Ended December 31, 2024
Three Months Ended June 30, 2025
Balance — September 30, 2024	$	21,734	$	77	$	87,687	$	(55,874)	$	(2,908)	$	(10,846)	$	39,870
Balance — March 31, 2025	$	21,734	$	78	$	87,920	$	(65,293)	$	(2,908)	$	(11,953)	$	29,578
Net loss	—		—		—		(51,~~648~~177)		—		—		(51,~~648~~177)
Other comprehensive loss, net of taxes	—		—		—		—		—		~~(2,151)~~124		~~(2,151)~~124
Issuance of common stock			1		194								195
Stock based compensation expense	—		—		13		—		—		—		13
Balance — December 31, 2024	$	21,734	$	78	$	87,881	$	(61,522)	$	(2,908)	$	(12,997)	$	32,266
Balance — June 30, 2025	$	21,734	$	78	$	87,933	$	(66,470)	$	(2,908)	$	(11,829)	$	28,538
Nine Months Ended December 31, 2024
Three Months Ended June 30, 2024
Balance — March 31, 2024	$	21,734	$	77	$	87,660	$	(51,549)	$	(2,908)	$	(12,705)	$	42,309
Net loss	—		—		—		(92,~~973~~212)		—		—		(92,~~973~~212)
Other comprehensive loss, net of taxes	—		—		—		—		—		(~~292~~263)		(~~292~~263)
Issuance of common stock			1		194								195
Stock based compensation expense	—		—		27		—		—		—		27
Balance — December 31, 2024	$	21,734	$	78	$	87,881	$	(61,522)	$	(2,908)	$	(12,997)	$	32,266
Balance — June 30, 2024	$	21,734	$	77	$	87,687	$	(53,761)	$	(2,908)	$	(12,968)	$	39,861
Three Months Ended December 31, 2023
Balance — September 30, 2023	$	23,178	$	75	$	86,217	$	(51,579)	$	(2,908)	$	(15,314)	$	39,669
Net income	—		—		—		19		—		—		19
Other comprehensive income, net of taxes	—		—		—		—		—		3,037		3,037
Conversion of Series D preferred stock to common stock	(550)		1		549		—		—		—		—
Stock based compensation expense	—		—		1		—		—		—		1
Balance — December 31, 2023	$	22,628	$	76	$	86,767	$	(51,560)	$	(2,908)	$	(12,277)	$	42,726
Nine Months Ended December 31, 2023
Balance — March 31, 2023	$	25,378	$	68	$	82,805	$	(47,904)	$	(2,908)	$	(12,215)	$	45,224
Cumulative effect adjustment for adoption of ASU 2016-13	—		—		—		(668)		—		—		(668)
Net loss	—		—		—		(2,988)		—		—		(2,988)
Other comprehensive loss, net of taxes	—		—		—		—		—		(62)		(62)
Conversion of Series D preferred stock to common stock	(2,750)		4		2,746		—		—		—		—
Issuance of common stock	—		4		996		—		—		—		1,000
Stock based compensation expense	—		—		220		—		—		—		220
Balance — December 31, 2023	$	22,628	$	76	$	86,767	$	(51,560)	$	(2,908)	$	(12,277)	$	42,726

See accompanying notes to consolidated financial statements

CARVER BANCORP, INC. AND SUBSIDIARIES

CONSOLIDATED STATEMENTS OF CASH FLOWS

(Unaudited)

	Nine Months Ended December 31,
	Three Months Ended June 30,
$ in thousands	~~2024~~2025		~~2023~~2024
CASH FLOWS FROM OPERATING ACTIVITIES
Net loss	$	(91,~~973~~177)	$	(2,~~988~~212)
Adjustments to reconcile net loss to net cash used in operating activities:
Provision for credit losses	817		77
(Recovery of) provision for credit losses	(26)		260
Stock based compensation expense	2713		~~220~~27
Depreciation and amortization expense	~~639~~179		~~744~~226
Loss on sale of loans, net	191		—
Income from bank owned life insurance	(41)		(39)
Amortization and accretion of loan premiums and discounts and deferred charges, net	~~156~~210		~~155~~118
Amortization and accretion of premiums and discounts — securities	~~164~~41		~~249~~48
Decrease (increase) in accrued interest receivable	1,195		(503)
Increase in accrued interest receivable	(271)		(7)
Decrease (increase) in other assets	~~263~~285		(~~237~~277)
Increase (decrease) in other liabilities	~~100~~557		(~~1,431~~493)
Net cash used in operating activities	(~~6,421~~230)		(32,~~714~~349)
CASH FLOWS FROM INVESTING ACTIVITIES
Proceeds from principal payments, maturities and calls of investments: Available-for-sale	~~3,456~~769		~~4,430~~775
Proceeds from principal payments, maturities and calls of investments: Held-to-maturity	~~197~~46		~~236~~67
Increase in equity investments	—		(603)
Loans held-for investment, net of (originations) and repayments/payoffs and maturities	11,779		(2,991)
Loans held-for investment, net of (originations) and repayments/payoffs and maturities	15,345		2,855
Loans purchased from third parties	(3,453)		(1,186)
Loans purchased from third parties	(3,760)		(29,467)
Purchase of FHLB-NY stock, net	(15)		(111)
Proceeds from loans sold	143		—
Purchase of premises and equipment	(168)		(154)
Redemption of FHLB-NY stock, net	339		262
Net cash provided by (used in) investing activities	8,958		(3,600)
Purchase of premises and equipment	(313)		(236)
Net cash provided by (used in) investing activities	15,407		(22,523)
CASH FLOWS FROM FINANCING ACTIVITIES
Net (decrease) increase in deposits	(10,060)		62,388
Net decrease in deposits	(16,306)		(8,546)
Repayment of short-term borrowings	—		(10,000)
Proceeds from long-term borrowings	2,912		1,814
Proceeds from long-term borrowings	1,814		5,527
Repayment of long-term borrowings	(1,814)		—
Repayment of long-term borrowings	(10,000)		—
Net cash used in financing activities	(15,208)		(6,732)
Issuance of common stock	194		1,000
Net decrease in cash and cash equivalents	(6,480)		(12,681)
Net cash (used in) provided by financing activities	(18,052)		58,915
Cash and cash equivalents at beginning of period	50,315		59,025
Net (decrease) increase in cash and cash equivalents	(9,066)		32,678
Cash and cash equivalents at end of period	$	43,835	$	46,344
Cash and cash equivalents at beginning of period	59,025		42,552
Cash and cash equivalents at end of period	$	49,959	$	75,230
Supplemental cash flow information:
Noncash financing and investing activities
Conversion of preferred stock to common stock	$	—	$	2,750
Cash paid for:
Interest	$	73,~~676~~622	$	73,~~158~~734
Tax on capital	~~187~~36		~~417~~67

See accompanying notes to consolidated financial statements

CARVER BANCORP, INC. AND SUBSIDIARIES

Notes to Consolidated Financial Statements (Unaudited)

NOTE 1. ORGANIZATION

Nature of operations

Carver Bancorp, Inc. (on a stand-alone basis, the “~~Company” or “~~Registrant”), was incorporated in May 1996 and its principal wholly-owned subsidiary is Carver Federal Savings Bank (the “Bank” or “Carver Federal”). Carver Federal's wholly-owned subsidiaries are CFSB Realty Corp., Carver Community Development Corporation (“CCDC”) and CFSB Credit Corp., which is currently inactive. The Bank has a real estate investment trust, Carver Asset Corporation ("CAC"), that was formed in February 2004.

“Carver,” the “Company,” “we,” “us” or “our” refers to the Company along with its consolidated subsidiaries. The Bank was chartered in 1948 and began operations in 1949 as Carver Federal Savings and Loan Association, a federally-chartered mutual savings and loan association. The Bank converted to a federal savings bank in 1986. On October 24, 1994, the Bank converted from a mutual holding company structure to stock form and issued 2,314,375 shares of its common stock, par value $0.01 per share. On October 17, 1996, the Bank completed its reorganization into a holding company structure (the “Reorganization”) and became a wholly-owned subsidiary of the Company.

Carver Federal’s principal business consists of attracting deposit accounts through its branches and investing those funds in mortgage loans and other investments permitted by federal savings banks. The Bank has seven branches located throughout the City of New York that primarily serve the communities in which they operate.

In September 2003, the Company formed Carver Statutory Trust I (the “Trust”) for the sole purpose of issuing trust preferred securities and investing the proceeds in an equivalent amount of floating rate junior subordinated debentures of the Company. ~~In accordance with Accounting Standards Codification (“ASC”) 810, “Consolidations,” Carver Statutory Trust I is unconsolidated for financial reporting purposes.~~ On September 17, 2003, Carver Statutory Trust I issued 13,000 shares, liquidation amount $1,000 per share, of floating rate capital securities. Gross proceeds from the sale of these trust preferred debt securities of $13 million, and proceeds from the sale of the trust's common securities of $0.4 million, were used to purchase approximately $13.4 million aggregate principal amount of the Company's floating rate junior subordinated debt securities due 2033. The trust preferred debt securities are redeemable at par quarterly at the option of the Company beginning on or after September 17, 2008, and have a mandatory redemption date of September 17, 2033. Cash distributions on the trust preferred debt securities are cumulative and payable at a floating rate per annum resetting quarterly with a margin of 3.05% over the three-month SOFR. ~~During~~Debenture ~~the second quarter of fiscal year 2017, the Company applied for and was granted regulatory approval to settle all outstanding debenture~~ interest payments ~~through~~are ~~September~~subject 2016. Such payments were made in September 2016. Interest on the debentures had been deferred beginning with the December 2016 payment, per the terms of the agreement, which permit such deferral for up to ~~twenty~~prior ~~consecutive~~approval ~~quarters,~~from as the ~~Company~~Federal isReserve ~~prohibited from making payments without prior regulatory approval~~Bank. ~~During~~A ~~the~~streamlined ~~fourth~~process ~~quarter~~has ofbeen ~~fiscal~~developed ~~year~~for ~~2021,~~ the Company ~~applied~~to ~~for~~request ~~and was granted~~ regulatory approval to ~~settle~~make ~~all outstanding~~ debenture interest payments ~~through June 2021. Full payment was made on June 16~~, ~~2021. The~~although ~~Company~~there ~~deferred~~is ~~the~~no ~~September~~assurance ~~17,~~that ~~2021 interest payment, but has since had discussions with~~ the Federal Reserve Bank ofwill ~~Philadelphia~~approve ~~regarding~~such ~~future~~ quarterly payments. AAll ~~streamlined~~quarterly ~~process~~interest ~~has~~payments ~~been~~up ~~developed for the Company~~ to ~~request~~and ~~regulatory~~including ~~approval~~the toMarch ~~make~~2025 ~~debenture~~payment ~~interest~~were ~~payments~~made. OnThe ~~December 16, 2021, the~~ Company ~~paid~~deferred the ~~deferred~~ interest ~~that~~payment ~~was~~ due onJune ~~September~~ 17, ~~2021~~2025 ~~and~~in ~~the~~order ~~regular~~to ~~quarterly~~manage ~~interest payment due on December 17, 2021~~liquidity. ~~All~~Debenture ~~quarterly~~ interest payments ~~subsequent~~may tobe ~~the~~deferred ~~June~~for ~~2021 payment~~ up to ~~and~~twenty ~~including~~consecutive ~~the~~quarters ~~December~~under ~~2024~~the ~~payment~~terms ~~have~~of ~~been~~the ~~made~~Indenture. The interest rate was 7.6662% and the ~~accrued~~deferred interest was $46300 thousand at ~~December~~June 3130, ~~2024~~2025.

While Carver has ~~suspended~~does ~~its~~not pay a regular quarterly cash dividend on its common stock, in the future, Carver may rely on dividends from Carver Federal to pay cash dividends to its stockholders and to engage in share repurchase programs. In recent years, Carver has been successful in obtaining cash independently through its capital raising efforts, which may include cash from government grants or below market-rate loans. As the subsidiary of a savings and loan association holding company, Carver Federal must file a notice or an application (depending on the proposed dividend amount) with the ~~OCC~~Office of the Comptroller of the Currency (the "OCC"), and an application with the Board of Governors of the Federal Reserve (the "FRB") prior to the declaration of each capital distribution. The OCC will disallow any proposed dividend that, among other reasons, would result in Carver Federal’s failure to meet the OCC minimum capital requirements.

Regulation

On May 2414, ~~2016~~2025, the Bank entered into a Formal Agreement ~~("the Agreement")~~ with the OCC ~~to undertake certain compliance-related and other actions~~. As a result of the Formal Agreement, the Bank ~~was~~is required to obtain the approval of the OCC prior to effecting any change in its directors or senior executive officers, paying dividends and entering into any "golden parachute payments" as that term is defined under 12 U.S.C. § 1828(k) and 12 C.F.R. Part 359. AsIn ~~a result of the Agreement~~addition, Carver was previously issued an Individual Minimum Capital Ratio (“IMCR”) letter by the OCC, which requires the Bank to maintain minimum regulatory capital levels of 9% for its Tier1 leverage ratio and 12% for its total risk-based capital ratio. ~~The Agreement was terminated on January 18, 2023. The IMCR remains in effect.~~

The Company continues to be subject to similar requirements that the Bank was subject to under the Agreement. The Company must provide notice to the FRB prior to effecting any change in its directors or senior executive officers. The Company is also subject to the restrictions on golden parachute and indemnification payments, as set forth in 12 C.F.R. Part 359. Written approval of the Federal Reserve Bank is required prior to: (1) the declaration or payment of dividends by the Company to its stockholders, (2) the declaration or payment of dividends by the Bank to the Company, (3) any distributions of interest or principal by the Company on subordinated debentures or trust preferred securities, (4) any purchases or redemptions of the Company’s stock and (5) the Company incurring, increasing or guaranteeing certain long-term debt outside the ordinary course of business. These limitations could affect our operations and financial performance.6

The Company must provide notice to the FRB prior to effecting any change in its directors or senior executive officers. The Company is also subject to the restrictions on golden parachute and indemnification payments, as set forth in 12 C.F.R. Part 359. Written approval of the Federal Reserve Bank is required prior to: (1) the declaration or payment of dividends by the Company to its stockholders, (2) the declaration or payment of dividends by the Bank to the Company, (3) any distributions of interest or principal by the Company on subordinated debentures or trust preferred securities, (4) any purchases or redemptions of the Company’s stock and (5) the Company incurring, increasing or guaranteeing certain long-term debt outside the ordinary course of business. These limitations could affect our operations and financial performance.

NOTE 2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

Basis of consolidated financial statement presentation

The consolidated financial statements include the accounts of the Company, the Bank and the Bank’s wholly-owned or majority-owned subsidiaries, Carver Asset Corporation, CFSB Realty Corp., CCDC, and CFSB Credit Corp., which is currently inactive. All significant intercompany accounts and transactions have been eliminated in consolidation.

The Company's subsidiary, Carver Statutory Trust I, is not consolidated with Carver Bancorp, Inc. for financial reporting purposes. Carver Statutory Trust I was formed in 2003 for the purpose of issuing $13 million aggregate liquidation amount of floating rate Capital Securities due September 17, 2033 (“Capital Securities”) and $0.4 million of common securities (which are the only voting securities of Carver Statutory Trust I), which are 100% owned by Carver Bancorp, Inc., and using the proceeds to acquire Junior Subordinated Debentures issued by Carver Bancorp, Inc. Carver Bancorp, Inc. has fully and unconditionally guaranteed the Capital Securities along with all obligations of Carver Statutory Trust I under the trust agreement relating to the Capital Securities. The Company does not consolidate the accounts and related activity of Carver Statutory Trust I because it is not the primary beneficiary of the entity.

Variable interest entities ("VIEs") are consolidated, as required, when Carver has a controlling financial interest in these entities and is deemed to be the primary beneficiary. Carver is normally deemed to have a controlling financial interest and be the primary beneficiary if it has both (a) the power to direct activities of a VIE that most significantly impact the entity's economic performance; and (b) the obligation to absorb losses of the entity that could benefit from the activities that could potentially be significant to the VIE.

The consolidated financial statements have been prepared in conformity with U.S. generally accepted accounting principles ("GAAP") for interim financial information and with the instructions to Form 10-Q and Article 10 of Regulation S-X. Accordingly, they do not include all of the information and footnotes required by GAAP for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair statement of the results of the interim period are presented. Operating results for the three ~~and nine~~ month ~~periods~~period ended ~~December~~June 3130, ~~2024~~2025 are not necessarily indicative of the results that may be expected for the year ended March 31, ~~2025~~2026. The consolidated balance sheet at ~~December~~June 3130, ~~2024~~2025 has been derived from the unaudited consolidated financial statements at that date, but does not include all of the information and footnotes required by GAAP for complete financial statements. In preparing the consolidated financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statement of financial condition and revenues and expenses for the period then ended. These unaudited consolidated financial statements should be read in conjunction with the Annual Report on Form 10-K for the year ended March 31, ~~2024~~2025. Amounts subject to significant estimates and assumptions are items such as the allowance for credit losses, realization of deferred tax assets, and the fair value of financial instruments. While management uses available information to recognize losses on loans, future additions to the allowance for credit loss or future writedowns of real estate owned may be necessary based on changes in economic conditions in the areas where Carver Federal has extended mortgages and other credit instruments. Actual results could differ significantly from those assumptions. Current market conditions increase the risk and complexity of the judgments in these estimates.

mortgages and other credit instruments. Actual results could differ significantly from those assumptions. Current market conditions increase the risk and complexity of the judgments in these estimates.

Certain comparative amounts for the prior period have been reclassified to conform to current period presentations. Such reclassifications had no effect on net income or shareholders' equity.

Recent Events

The business climate continues to present significant challenges as banks continue to absorb heightened regulatory costs and compete for limited loan demand. Inflationary pressure ~~has~~appears ~~started~~ to ~~decrease~~have decreased, but rates remain high and affect customer demand. The target interest rate range had been held steady at its highest point between 5.25% and 5.5% since July 2023, until the Federal Reserve lowered the rates by 50 basis points in September 2024, easing monetary policy for the first time since regular increases began in March 2022. The Federal Reserve approved two additional cuts in November and December, lowering the overnight borrowing rate to a range between 4.25% to 4.5%, but left interest rates unchanged at the January 2025 meeting. For Carver, the economic climate of New York City (“the City”), in particular, impacts our business as the City lags behind the rest of New York State and the nation both in job growth and levels of unemployment. The City's local area inflation has exceeded the national rate and its unemployment rate remains high at 5.4%, exceeding the national average.

The Bank's liquidity position remains adequate. The impact of market volatility from continued inflation and higher interest rates will depend on future developments, which are highly uncertain and difficult to predict. The Company is closely monitoring its asset quality, liquidity, and capital positions, as well as the credit risk in its loan portfolio. Management is actively working to minimize the current and future impact of the current business and industry environment, and is continuing to make adjustments to operations where appropriate or necessary to mitigate risk. However, these factors and events may have negative effects on the business, financial condition, and results of operations of the Company and its customers.7

time since regular increases began in March 2022. The Federal Reserve approved two additional cuts in November and December 2024, lowering the overnight borrowing rate to a range between 4.25% to 4.5%, but left interest rates unchanged at its July 2025 meeting. For Carver, the economic climate of New York City (“the City”), in particular, impacts our business as the City lags behind the rest of New York State and the nation both in job growth and levels of unemployment. The City's local area inflation has exceeded the national rate, primarily due to housing costs, and its unemployment rate remains high at 5.1%, exceeding the national average. On July 4, 2025, President Trump signed into law the legislation formally titled "An Act to Provide for Reconciliation Pursuant to Title II of H. Con. Res. 14" and commonly referred to as the One Big Beautiful Bill (the Act). The Company is evaluating income tax implications of the Act. The Company does not currently expect the Act to have a material impact on the Company's financial statements.

The Bank's liquidity position remains adequate. The impact of market volatility from continued inflation and high interest rates will depend on future developments, which are highly uncertain and difficult to predict. The Company is closely monitoring its asset quality, liquidity, and capital positions, as well as the credit risk in its loan portfolio. Management is actively working to minimize the current and future impact of the current business and industry environment, and is continuing to make adjustments to operations where appropriate or necessary to mitigate risk. However, these factors and events may have negative effects on the business, financial condition, and results of operations of the Company and its customers.

Recent Accounting Standards

Accounting Standards Recently Adopted

On ~~April~~March 131, ~~2023~~2025, the Company adopted ~~Accounting~~ASU ~~Standards~~No. ~~Codification~~2023-07 ("~~ASC")~~Segment ~~Topic~~Reporting ~~326, "Financial Instruments - Credit Loss~~ (~~ASC~~Topic ~~326~~280),": ~~which~~Improvements ~~replaces the guidance on recognition and measurement of credit losses for financial assets. The new requirements, known as the current expected credit loss model ("CECL") requires entities~~ to ~~adopt~~Reportable anSegment ~~impairment model based on expected losses rather than incurred losses. Under the CECL model~~Disclosures, ~~the allowance for credit losses (~~"~~ACL")~~ iswhich aimproves ~~valuation~~reportable ~~allowance~~segment ~~that~~disclosure ~~is deducted from the amortized cost basis of certain financial assets~~requirements, ~~including~~primarily ~~loans,~~through ~~held-to-maturity~~enhanced ~~securities,~~disclosures ~~and~~about ~~other~~significant ~~receivables,~~segment ~~to present the net carrying value at the amount expected to be collected~~expenses. The ~~measurement~~amendments ofin ~~expected~~this ~~credit~~update ~~losses~~should isbe based on information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. This differs from the incurred loss model, which delays recognition of credit losses until it is probable a loss has been incurred. The Company applied ~~the~~retrospectively ~~new guidance with a cumulative-effect adjustment~~ to ~~retained~~all ~~earnings~~prior asperiods ofpresented ~~April~~in ~~1, 2023, using~~ the ~~modified-retrospective~~financial ~~approach~~statements. ~~Results for reporting periods beginning after April 1, 2023 are presented under CECL.~~ The ~~adoption~~Company ofhas ~~ASC~~determined ~~326~~that ~~resulted~~all ~~in an increase~~ of ~~$0.7~~its ~~million~~activities toconstitute ~~the~~one ~~allowance~~reportable ~~for~~operating ~~credit~~segment ~~losses related to loans~~ and tothere ~~the opening balance of accumulated deficit for the year ended March 31, 2024. There~~ was no material impact ~~for~~on ~~other assets within~~ the ~~scope~~consolidated offinancial ~~the~~statements ~~new~~upon ~~CECL guidance, such as held-to-maturity debt securities and other receivables~~adoption.

On April 1, 2023, the Company adopted ASU No. 2022-02, "Financial Instruments - Credit Losses (ASC 326): Troubled Debt Restructurings (TDRs) and Vintage Disclosures," which eliminates the accounting guidance for TDRs, and replaced it with guidance and disclosure requirements for certain loan refinancing and restructuring activities to borrowers experiencing financial difficulty. The amendments also require disclosure of current period gross writeoffs by year of origination. The adoption of the standard did not have a material impact on the Company's consolidated statements of financial condition and results of operations.

On April 1, 2023, the Company adopted ASU No. 2021-10 "Government Assistance (Topic 832): Disclosures by Business Entities about Government Assistance," which was issued to improve the financial reporting of government assistance received by business entities by requiring the disclosure of (1) the types of assistance received, (2) an entity’s accounting for the assistance, and (3) the effect of the assistance on an entity’s financial statements. The adoption of the standard did not have a material impact on the Company's consolidated statements of financial condition and results of operations.

In March 2020, the FASB issued ASU No. 2020-04 "Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting," which provides optional expedients and exceptions for applying GAAP to loan and lease agreements, derivative contracts, and other transactions affected by the anticipated transition away from LIBOR toward new interest rate benchmarks. For transactions that are modified because of reference rate reform and that meet certain scope guidance (i) modifications of loan agreements should be accounted for by prospectively adjusting the effective interest

rate and the modification will be considered "minor" so that any existing unamortized origination fees/costs would carry forward and continue to be amortized and (ii) modifications of lease agreements should be accounted for as a continuation of the existing agreement with no reassessments of the lease classification and the discount rate or remeasurements of lease payments that otherwise would be required for modifications not accounted for as separate contracts. ASU 2020-04 is effective March 12, 2020 through December 31, 2022. An entity may elect to apply ASU 2020-04 for contract modifications as of any date from the beginning of an interim period that includes or is subsequent to March 12, 2020, or prospectively from a date within an interim period that includes or is subsequent to March 12, 2020, up to the date that the financial statements are available to be issued. Once elected for a Topic or an Industry Subtopic, the amendments in this ASU must be applied prospectively for all eligible contract modifications for that Topic or Industry Subtopic. In December 2022, the FASB issued ASU No. 2022-06 "Reference Rate Reform (Topic 848): Deferral of the Sunset Date of Topic 848," which defers the sunset date of Topic 848 from December 31, 2022 to December 31, 2024, after which entities will no longer be permitted to apply for relief in Topic 848. The Company adopted the LIBOR transition relief allowed under this standard, which allowed prospective recognition of the continuation of the contract, rather than extinguishment of the old contract resulting in writing off unamortized fees/costs.

Accounting Standards Not Yet Adopted

In November 2024, the FASB issued ASU No. 2024-03 "Income Statement - Reporting Comprehensive Income - Expense Disaggregation Disclosures (Subtopic 220-40)" to improve the disclosures about a public business entity's expenses and address investor requests for more detailed information about the types of expenses (including purchases of inventory, employee compensation, depreciation, amortization, and depletion) in commonly presented expense captions. ASU No. 2024-03 is effective for fiscal years beginning after December 15, 2026 (for the Company, the fiscal year ending March 31, 2028), and interim periods beginning after December 15, 2027. Early adoption is permitted. The amendments in this update should be applied either prospectively to financial statements issued for reporting periods after the effective date of this update, or retrospectively to any or all prior periods presented in the financial statements. ASU 2024-03 is not expected to have a material impact on the Company's financial statements.

In December 2023, the FASB issued ASU No. 2023-09 "Income Taxes (Topic 740): Improvements to Income Tax Disclosures" to enhance income tax disclosures to help investors better assess how a company's operations and related tax risks and tax planning and operational opportunities affect its tax rate and prospects for future cash flows. The amendments in this update will require further disaggregated information about a reporting entity's effective tax rate reconciliation and information on income taxes paid. ASU No. 2023-09 is effective for fiscal years beginning after December 15, 2024 (for the Company, the fiscal year ending March 31, 2026), and interim periods within those fiscal years. Early adoption is permitted. The amendments in this update should be applied on a prospective basis with an option for retrospective application. ASU 2023-09 is not expected to have a material impact on the Company's financial statements.

In November 2023, the FASB issued ASU No. 2023-07 "Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures" to improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. ASU No. 2023-07 is effective for fiscal years beginning after December 15, 2023 (for the Company, the fiscal year ending March 31, 2025), and interim periods within fiscal years beginning after December 15, 2024. The amendments in this update should be applied retrospectively to all prior periods presented in the financial statements. Upon transition, the segment expense categories and amounts disclosed in the prior periods should be based on the significant segment expense categories identified and disclosed in the period of adoption. The Company does not expect the adoption of this ASU to have a material impact on the Company's financial statements.8

9NOTE 3. LOSS PER COMMON SHARE

~~NOTE~~ The 3.following table reconciles the loss attributable to common shareholders (~~LOSS~~numerator) ~~EARNINGS~~and ~~PER~~the ~~COMMON~~weighted ~~SHARE~~average common stock outstanding (denominator) for both basic and diluted loss per share for the following periods:

The following table reconciles the (loss) income attributable to common shareholders (numerator) and the weighted average common stock outstanding (denominator) for both basic and diluted (loss) earnings per share for the following periods:


	Three Months Ended June 30,
$ in thousands except per share data	2025		2024


Net loss attributable to common shareholders	$	(1,177)	$	(2,212)

Weighted average common shares outstanding - basic	5,284,388		5,140,872

Weighted average common shares outstanding – diluted	5,284,388		5,140,872

Basic loss per common share	$	(0.22)	$	(0.43)
Diluted loss per common share	(0.22)		(0.43)

	Three Months Ended December 31,				Nine Months EndedDecember 31,
$ in thousands except per share data	2024		2023		2024		2023
Net (loss) income	$	(5,648)	$	19	$	(9,973)	$	(2,988)
Less: Participated securities share of undistributed earnings	—		4		—		—
Net (loss) income attributable to common shareholders	$	(5,648)	$	15	$	(9,973)	$	(2,988)
Weighted average common shares outstanding - basic	5,189,207		5,002,290		5,156,984		4,771,706
Effect of dilutive shares	—		1,417,536		—		—
Weighted average common shares outstanding – diluted	5,189,207		6,419,826		5,156,984		4,771,706
Basic (loss) earnings per common share	$	(1.09)	$	—	$	(1.93)	$	(0.63)
Diluted (loss) earnings per common share	(1.09)		—		(1.93)		(0.63)

The Company has preferred shares which are entitled to receive dividends if declared on the Company's common stock and are therefore considered to be participating securities. Basic earnings (loss) per share (“EPS”) is computed using the two class method. This calculation divides net income (loss) available to common stockholders after the allocation of undistributed earnings to the participating securities by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. These potentially dilutive shares are then included in the weighted average number of shares outstanding for the period. Dilution calculations are not applicable to net loss periods. For the three months ended June 30, 2025 and 2024, all restricted shares and outstanding stock options were anti-dilutive.

The Company has preferred shares which are entitled to receive dividends if declared on the Company's common stock and are therefore considered to be participating securities. Basic earnings (loss) per share (“EPS”) is computed using the two class method. This calculation divides net income (loss) available to common stockholders after the allocation of undistributed earnings to the participating securities by the weighted average number of shares of common stock outstanding during the period. Diluted earnings per share takes into account the potential dilution that could occur if securities or other contracts to issue common stock were exercised and converted into common stock. These potentially dilutive shares are then included in the weighted average number of shares outstanding for the period. Dilution calculations are not applicable to net loss periods. For the three and nine months ended December 31, 2024 and nine months ended December 31, 2023, all restricted shares and outstanding stock options were anti-dilutive.

NOTE 4. COMMON STOCK DIVIDENDS AND ISSUANCES

On October 28, 2011, the United States Department of the Treasury (the "Treasury Department") exchanged the CDCI Series B preferred stock for 2,321,286 shares of Carver common stock and the Series C preferred stock converted into 1,208,039 shares of Carver common stock and 45,118 shares of Series D preferred stock. Series C stock was previously reported as mezzanine equity, and upon conversion to common and Series D preferred stock is now reported as equity attributable to Carver Bancorp, Inc. The holders of the Series D Preferred Stock are entitled to receive dividends, on an as-converted basis, simultaneously to the payment of any dividends on the common stock.

On August 6, 2020, the Company entered into a Securities Purchase Agreement (the "Agreement") with the Treasury Department to repurchase 2,321,286 shares of Company common stock, owned by the Treasury Department for an aggregate purchase price of $2.5 million. The stock repurchase provided for in the Agreement was completed on August 6, 2020. Upon completion of the repurchase pursuant to the Agreement, the Treasury Department was no longer a stockholder in the Company. In connection with the repurchase, Morgan Stanley provided a grant of $2.5 million that was considered contributed capital to the Company to fund the repurchase transaction.

On ~~February~~December 1614, 2021, the Company entered into ana ~~agreement~~Sales ~~with~~Agreement ~~J.P.~~(the ~~Morgan~~"Sales ~~Chase~~Agreement") ~~Community~~with ~~Development~~Piper ~~Corporation~~Sandler ~~("J~~& Co.P. ~~Morgan"~~(“Piper Sandler”), ~~under~~as sales agent, pursuant to which itthe ~~sold:~~Company ~~(i)~~may ~~112,612~~offer and sell shares of its common stock, par value $0.01 per share, athaving aan ~~purchase~~aggregate ~~price~~gross sales prices of up to $820.880 ~~per~~million ~~share,~~(the ~~and~~“ATM ~~(ii~~Shares”) ~~5,000~~from ~~shares~~time ofto atime. Any ~~new~~sales ~~series~~made ofunder ~~preferred~~the ~~stock,~~Sales ~~Series~~Agreement Fwill ~~non-cumulative~~be ~~non-voting~~sales ~~non-convertible~~deemed ~~preferred~~to ~~stock,~~be ~~par~~"at-the-market ~~value~~(ATM) ~~$0.01~~offerings," ~~per~~as ~~share~~defined ~~("Series~~in FRule ~~Preferred~~415 ~~Stock"),~~under atthe aSecurities ~~purchase~~Act ~~price~~ of $11933,~~000~~ ~~per~~as ~~share,~~amended. These insales awill ~~private~~be ~~placement~~made ~~for~~through ~~gross~~ordinary ~~proceeds~~broker oftransactions ~~approximately~~on ~~$6.0 million. On~~the ~~September~~NASDAQ ~~27,~~Capital ~~2021,~~Market ~~the~~stock ~~Company~~exchange ~~entered~~at ~~into~~market anprices ~~agreement~~prevailing ~~with~~at ~~J.P.~~the ~~Morgan~~time, ~~under~~at ~~which~~prices itrelated ~~sold~~to anthe ~~additional~~prevailing 4market prices,~~000~~ ~~shares~~or ofat ~~its~~negotiated ~~Series~~prices. The Fnet ~~Preferred~~proceeds ~~Stock,~~of atthese aofferings ~~purchase~~were ~~price~~used offor ~~$1,000~~general ~~per~~corporate ~~share~~purposes, inincluding asupport ~~private placement~~ for ~~gross~~organic ~~proceeds~~loan ~~of $4~~growth.~~0 million.~~ ~~The~~During ~~issuances~~fiscal ofyear 2022, the ~~shares~~Company ~~were~~sold ~~exempt~~an ~~from~~aggregate ~~registration~~of ~~pursuant~~397,367 toshares ~~the~~of ~~exemption~~common ~~provided~~stock under ~~Rule~~the ~~506~~ATM ofoffering ~~Regulation~~program, Dresulting ~~promulgated~~in ~~under~~gross ~~the~~proceeds ~~Securities Act~~ of ~~1933, as amended~~$3. ~~The~~1 ~~offerings~~million ~~were~~and ~~made~~net ~~only~~proceeds to ~~accredited~~the ~~investors~~Company asof ~~that~~$3.0 ~~term~~million isafter ~~defined~~deducting incommissions ~~Rule~~and ~~501(a)~~expenses. There ofhave ~~Regulation~~been Dno ~~under~~subsequent ~~the Act~~offerings.

OnDuring ~~December~~fiscal 14year 2023, ~~2021~~Prudential Insurance Company of America ("Prudential"), an institutional investor, donated a total of 550 shares of its holdings of Series D Preferred Stock to third parties. The third parties notified the Company ~~entered~~of ~~into~~their aintention ~~Sales~~to ~~Agreement~~cancel (the ~~"Sales~~shares ~~Agreement")~~and ~~with~~convert ~~Piper~~them ~~Sandler~~into &67,265 Coshares of Common Stock. During ~~(“Piper~~fiscal ~~Sandler”)~~year 2024, asPrudential ~~sales~~donated ~~agent~~a total of 3,644 ~~pursuant~~shares of its holdings of Series D Preferred Stock to ~~which~~third parties. The third parties notified the Company ~~may~~of ~~offer~~their intention to cancel the shares and ~~sell~~convert them into 445,661 shares of ~~its~~Common ~~common~~Stock. The ~~stock,~~conversions ~~par~~had ~~value~~no impact on the Company's total capital. There have been no subsequent conversions.

109

~~$0.01~~On ~~per~~July ~~share~~19, ~~having~~2023, ~~an aggregate gross sales prices of up to $20.0 million (~~the ~~“ATM~~Company ~~Shares”)~~entered ~~from~~into ~~time~~an toagreement ~~time. Any~~with ~~sales~~National ~~made~~Community ~~under~~Investment ~~the Sales Agreement will be sales deemed to be "at-the-market (ATM) offerings~~Fund," ~~as defined in Rule 415~~ under ~~the~~which ~~Securities~~it ~~Act~~sold ~~of 1933~~378,788 asshares ~~amended. These~~of ~~sales~~its ~~will~~common bestock, ~~made~~par ~~through~~value ~~ordinary~~$0.01 ~~broker~~per ~~transactions~~share, ~~on the NASDAQ Capital Market stock exchange~~ at ~~market~~a ~~prices~~purchase ~~prevailing~~price atof ~~the~~$2.64 ~~time,~~per atshare ~~prices~~in ~~related~~a toprivate ~~the~~placement ~~prevailing~~for ~~market~~gross ~~prices,~~proceeds orof atapproximately ~~negotiated prices~~$1.0 million. The net proceeds of ~~these~~the ~~offerings~~private placement were used for general corporate purposes~~, including support for organic loan growth~~. ~~During~~The ~~fiscal~~issuance ~~year~~of ~~2022,~~ the ~~Company~~shares ~~sold~~was anexempt ~~aggregate~~from ofregistration ~~397,367~~pursuant ~~shares~~to ofunder ~~common~~Section ~~stock~~4(a)(2) ~~under~~of the ~~ATM~~Securities ~~offering~~Act ~~program, resulting in gross proceeds~~ of ~~$3.1~~1933, ~~million~~as amended, and ~~net~~Regulation ~~proceeds~~D toof the ~~Company~~rules ~~of $3.0 million after deducting commissions~~ and ~~expenses. There~~regulations ~~have~~promulgated ~~been no subsequent offerings~~thereunder.

~~During~~On ~~fiscal~~November ~~year~~25, ~~2023~~2024, ~~Prudential~~the ~~Insurance~~ Company ofentered ~~America~~into ~~("Prudential"),~~investment anpurchase ~~institutional~~agreements ~~investor,~~with ~~donated~~certain aCompany ~~total~~directors ofunder ~~550~~which ~~shares~~it ofissued ~~its~~and ~~holdings~~sold of116,766 ~~Series~~shares Dof ~~Preferred~~its ~~Stock~~common tostock, ~~third~~par ~~parties~~value $0. ~~The~~01, ~~third~~at ~~parties~~a ~~notified~~price ~~the Company~~ of ~~their~~$1.67 ~~intention~~per toshare. The ~~cancel the~~ shares ~~and~~were ~~convert~~issued ~~them~~on ~~into~~November 6725,~~265~~ ~~shares of Common Stock. During fiscal year~~ 2024, ~~Prudential~~in ~~donated~~ a ~~total~~private ofplacement ~~3,644~~exempt ~~shares~~from ofregistration ~~its~~under ~~holdings~~Section of4(2) ~~Series D Preferred Stock to third parties. The third parties notified the Company~~ of ~~their intention to cancel~~ the ~~shares~~Securities ~~and~~Act ~~convert~~of ~~them into 445~~1933,~~661~~ ~~shares~~as ~~of Common Stock~~amended. The ~~conversions~~offering ~~had~~resulted noin ~~impact~~gross onproceeds ~~the~~of ~~Company's total capital~~$0.2 million. There ~~have~~were ~~been~~ no ~~conversions~~underwriting ~~during~~discounts ~~the~~or ~~nine months ended December 31, 2024~~commissions.

On July 19, 2023, the Company entered into an agreement with National Community Investment Fund, under which it sold 378,788 shares of its common stock, par value $0.01 per share, at a purchase price of $2.64 per share in a private placement for gross proceeds of approximately $1.0 million. The Company intends to use the net proceeds of the private placement for general corporate purposes. The issuance of the shares is exempt from registration pursuant to under Section 4(a)(2) of the Securities Act of 1933, as amended, and Regulation D of the rules and regulations promulgated thereunder.

NOTE 5. ACCUMULATED OTHER COMPREHENSIVE LOSS

The following tables set forth changes in each component of accumulated other comprehensive loss, net of tax for the ~~nine~~three months ended ~~December~~June 3130, ~~2024~~2025 and ~~2023~~2024:

$ in thousands

AtMarch 31, ~~2024~~2025

~~OtherComprehensiveLoss~~OtherComprehensive Income, net of tax

~~AtDecember~~AtJune 3130, ~~2024~~2025

Net unrealized loss on securities available-for-sale

(1211,~~705~~953)

~~(292)~~124

(1211,~~997~~829)

$ in thousands

AtMarch 31, ~~2023~~2024

OtherComprehensiveLoss, net of tax

~~AtDecember~~AtJune 3130, ~~2023~~2024

Net unrealized loss on securities available-for-sale

(12,~~215~~705)

(62263)

(12,~~277~~968)

There were no reclassifications out of accumulated other comprehensive loss to the consolidated statement of operations for the ~~nine~~three months ended ~~December~~June 3130, ~~2024~~2025 and ~~2023~~2024.

NOTE 6. INVESTMENT SECURITIES

Generally, the investment policy of the Bank is to invest funds among categories of investments and maturities based upon the Bank’s asset/liability management policies, investment quality, loan and deposit volume and collateral requirements, liquidity needs and performance objectives. Debt securities are classified into three categories: trading, held-to-maturity, and available-for-sale. At ~~December~~June 3130, ~~2024~~2025, securities with fair value of $4443.18 million, or 96.13%, of the Bank’s total securities were classified as available-for-sale, and securities with amortized cost of $1.87 million, or 3.97%, were classified as held-to-maturity, compared to $4844.05 million and $21.08 million at March 31, ~~2024~~2025, respectively. The Bank had no securities classified as trading at ~~December~~June 3130, ~~2024~~2025 and March 31, ~~2024~~2025.

Other investments as of ~~December~~June 3130, ~~2024~~2025 primarily consisted of the Company and Bank's investments in limited partnership Community Capital Funds and a $5.01 million bank-owned life insurance policy ("BOLI") purchased during the first quarter of fiscal year 2023 as a channel to add to the Company's non-interest income revenue by means of an investment considered safe and sound by the Company's regulators. The investments in the limited partnerships are measured using the equity method. The BOLI is carried at the cash surrender value of the underlying policies. Income generated from the investments and the increase in the cash surrender value of the BOLI is included in other non-interest income on the Statements of Operations. Other investments totaled $6.9 million at June 30, 2025 and are included in Other Assets on the Statements of Financial Condition.

The following tables set forth the amortized cost and fair value of securities available-for-sale and held-to-maturity at June 30, 2025 and March 31, 2025:


	At June 30, 2025
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	198	$	5	$	—	$	203
Federal Home Loan Mortgage Corporation	18,440		—		(3,994)		14,446
Federal National Mortgage Association	10,058		—		(2,079)		7,979
Total mortgage-backed securities	28,696		5		(6,073)		22,628
U.S. Government Agency Securities	4,040		4		(4)		4,040

Corporate Bonds	5,262		—		(2,470)		2,792
Muni Securities	17,667		—		(3,291)		14,376

Total available-for-sale	$	55,665	$	9	$	(11,838)	$	43,836

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	246	$	—	$	(8)	$	238
Federal National Mortgage Association and Other	1,458		—		(34)		1,424


Total held-to maturity	$	1,704	$	—	$	(42)	$	1,662


	At March 31, 2025
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	204	$	5	$	—	$	209
Federal Home Loan Mortgage Corporation	18,779		—		(4,017)		14,762
Federal National Mortgage Association	10,231		—		(2,130)		8,101

Total mortgage-backed securities	29,214		5		(6,147)		23,072
U.S. Government Agency Securities	4,326		—		(16)		4,310
Corporate Bonds	5,262		—		(2,442)		2,820
Muni Securities	17,673		—		(3,353)		14,320


Total available-for-sale	$	56,475	$	5	$	(11,958)	$	44,522

Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	249	$	—	$	(9)	$	240
Federal National Mortgage Association and Other	1,501		—		(43)		1,458


Total held-to-maturity	$	1,750	$	—	$	(52)	$	1,698

There were no sales of available-for-sale and held-to-maturity securities for the three months ended June 30, 2025 and June 30, 2024.

The following tables set forth the unrealized losses and fair value of ~~Operations. Other~~securities ~~investments~~in ~~totaled~~an ~~$6.4~~unrealized ~~million~~loss position at ~~December~~June 3130, ~~2024~~2025 and ~~are~~March 31, ~~included~~2025 infor ~~Other~~less ~~Assets~~than on12 months ~~the~~and ~~Statements~~12 months ofor ~~Financial Condition.~~longer:

The following tables set forth the amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2024 and March 31, 2024:


	At June 30, 2025
	Less than 12 months				12 months or longer				Total
$ in thousands	Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value
Available-for-Sale:
Mortgage-backed securities	$	—	$	—	$	(6,073)	$	22,425	$	(6,073)	$	22,425
U.S. Government Agency securities	(1)		2,285		(3)		589		(4)		2,874

Corporate bonds	—		—		(2,470)		2,791		(2,470)		2,791

Muni securities	—		—		(3,291)		14,376		(3,291)		14,376

Total available-for-sale securities	$	(1)	$	2,285	$	(11,837)	$	40,181	$	(11,838)	$	42,466
Held-to-Maturity:
Mortgage-backed securities	$	—	$	—	$	(42)	$	1,634	$	(42)	$	1,634

Total held-to-maturity securities	$	—	$	—	$	(42)	$	1,634	$	(42)	$	1,634

	At December 31, 2024
	At March 31, 2025
	Amortized		Gross Unrealized
	Less than 12 months				12 months or longer				Total
$ in thousands	~~Cost~~UnrealizedLosses		~~Gains~~FairValue		~~Losses~~UnrealizedLosses		~~Fair Value~~FairValue		UnrealizedLosses		FairValue
Available-for-Sale:
Mortgage-backed Securities:
Mortgage-backed securities	$	—	$	—	$	(6,147)	$	22,863	$	(6,147)	$	22,863
Government National Mortgage Association	$	211	$	4	$	—	$	215
U.S. Government Agency securities	(11)		3,467		(5)		843		(16)		4,310
Federal Home Loan Mortgage Corporation	19,115		—		(4,383)		14,732
Corporate bonds	—		—		(2,442)		2,820		(2,442)		2,820
Federal National Mortgage Association	10,390		—		(2,340)		8,050
Muni securities	—		—		(3,353)		14,320		(3,353)		14,320
Total mortgage-backed securities	29,716		4		(6,723)		22,997
Total available-for-sale securities	$	(11)	$	3,467	$	(11,947)	$	40,846	$	(11,958)	$	44,313
U.S. Government Agency Securities	4,460		—		(22)		4,438
Held-to-Maturity:
Corporate Bonds	5,263		—		(2,446)		2,817
Mortgage-backed securities	$	—	$	—	$	(52)	$	1,670	$	(52)	$	1,670
Muni Securities	17,679		—		(3,810)		13,869
Total held-to-maturity securities	$	—	$	—	$	(52)	$	1,670	$	(52)	$	1,670
Total available-for-sale	$	57,118	$	4	$	(13,001)	$	44,121
Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	254	$	—	$	(12)	$	242
Federal National Mortgage Association and Other	1,553		—		(60)		1,493
Total held-to maturity	$	1,807	$	—	$	(72)	$	1,735

	At March 31, 2024
	Amortized		Gross Unrealized
$ in thousands	Cost		Gains		Losses		Fair Value
Available-for-Sale:
Mortgage-backed Securities:
Government National Mortgage Association	$	280	$	4	$	(1)	$	283
Federal Home Loan Mortgage Corporation	20,299		—		(4,501)		15,798
Federal National Mortgage Association	10,975		—		(2,339)		8,636
Total mortgage-backed securities	31,554		4		(6,841)		24,717
U.S. Government Agency Securities	6,219		—		(25)		6,194
Corporate Bonds	5,266		—		(2,203)		3,063
Muni Securities	17,696		—		(3,640)		14,056
Total available-for-sale	$	60,735	$	4	$	(12,709)	$	48,030
Held-to-Maturity:
Mortgage-backed Securities:
Government National Mortgage Association	$	292	$	—	$	(9)	$	283
Federal National Mortgage Association and Other	1,716		—		(94)		1,622
Total held-to-maturity	$	2,008	$	—	$	(103)	$	1,905

Management reviews the investment portfolio on a quarterly basis to identify and evaluate each investment that has an unrealized holding loss. A total of 21 available-for-sale and held-to-maturity securities had an unrealized loss at June 30, 2025 compared to 22 at March 31, 2025. Mortgage-backed securities, U.S. government agency securities, municipal securities and a corporate bond security represented 52.8%, 6.8%, 33.9% and 6.6%, respectively, of total available-for-sale securities in an unrealized loss position at June 30, 2025. There were seven mortgage-backed securities, one U.S. government agency securities, one corporate bond and six municipal securities that had an unrealized loss position for more than 12 months at June 30, 2025. Management has evaluated available-for-sale securities that are in an unrealized loss position and determined that the declines in fair value are attributable to market volatility, and not credit quality or other factors. Given the high credit quality of the mortgage-backed securities, which are backed by explicit U.S. government guarantees, or guarantees by government sponsored enterprises that have credit ratings and perceived credit risk comparable to the U.S. government, the high credit quality and strong financial performance of the U.S. government agency and the results of the individual analyses and continuous surveillance on the municipal securities, as well as the corporate security that is a reputable institution in good financial standing, the risk of credit loss is minimal. Management believes that these unrealized losses are a direct result of the current rate environment and the Company has the ability and intent to hold the securities until maturity or the valuations recover. The Bank's held-to-maturity portfolio consists of five mortgage-backed securities that were in an unrealized loss position for more than 12 months at June 30, 2025. These securities are either fully guaranteed or issued by a government sponsored enterprise, which has a credit rating and perceived credit risk comparable to the U.S. government. As such, no allowance for credit losses on securities available-for-sale or held-to-maturity have been established as of June 30, 2025.

There were no sales of available-for-sale and held-to-maturity securities for the nine months ended December 31, 2024 and December 31, 2023.

The following ~~tables~~is ~~set~~a ~~forth~~summary of the ~~unrealized~~amortized ~~losses~~cost and fair value of debt securities inat anJune 30, ~~unrealized~~2025, ~~loss~~by ~~position~~remaining atperiod ~~December 31,~~to ~~2024~~contractual ~~and~~maturity ~~March 31~~(ignoring earlier call dates, ~~2024~~if ~~for~~any). Actual ~~less~~maturities ~~than~~may ~~12 months~~differ ~~and~~from 12contractual maturities because certain security issuers have the right to call or prepay their ~~months~~obligations. The table below does not consider the effects of possible prepayments or ~~longer:~~unscheduled repayments.

	At December 31, 2024
$ in thousands	Amortized Cost		Fair Value		Weighted Average Yield
	Less than 12 months				12 months or longer					Total
Available-for-Sale:
$ in thousands	UnrealizedLosses		FairValue		UnrealizedLosses			FairValue		UnrealizedLosses		FairValue
One through five years	$	593	$	589	5.63		%
Available-for-Sale:
Five through ten years	12,252		10,093		2.22		%
Mortgage-backed securities	$	—	$	—	$	(6,723)		$	22,782	$	(6,723)	$	22,782
After ten years	14,124		10,526		3.59		%
U.S. Government Agency securities	(16)		3,493		(6)			945		(22)		4,438
Mortgage-backed securities	28,696		22,628		1.64		%
Corporate bonds	—		—		(2,446)			2,817		(2,446)		2,817
Total	$	55,665	$	43,836	2.29		%
Muni securities	—		—		(3,810)			13,869		(3,810)		13,869
Held-to-maturity:
Total available-for-sale securities	$	(16)	$	3,493	$	(12,985)		$	40,413	$	(13,001)	$	43,906
Mortgage-backed securities	$	1,704	$	1,662	2.87		%
Held-to-Maturity:
Mortgage-backed securities	$	—	$	—	$	(72)		$	1,705	$	(72)	$	1,705
Total held-to-maturity securities	$	—	$	—	$	(72)		$	1,705	$	(72)	$	1,705

	At March 31, 2024
	Less than 12 months				12 months or longer				Total
$ in thousands	UnrealizedLosses		FairValue		UnrealizedLosses		FairValue		UnrealizedLosses		FairValue
Available-for-Sale:
Mortgage-backed securities	$	—	$	—	$	(6,841)	$	24,468	$	(6,841)	$	24,468
U.S. Government Agency securities	(2)		1,273		(23)		4,921		(25)		6,194
Corporate bonds	—		—		(2,203)		3,063		(2,203)		3,063
Muni securities	—		—		(3,640)		14,056		(3,640)		14,056
Total available-for-sale securities	$	(2)	$	1,273	$	(12,707)	$	46,508	$	(12,709)	$	47,781
Held-to-Maturity:
Mortgage-backed securities	$	—	$	—	$	(103)	$	1,872	$	(103)	$	1,872
Total held-to-maturity securities	$	—	$	—	$	(103)	$	1,872	$	(103)	$	1,872

Management reviews the investment portfolio on a quarterly basis to identify and evaluate each investment that has an unrealized holding loss. A total of 23 available-for-sale and held-to-maturity securities had an unrealized loss at December 31, 2024 compared to 24 at March 31, 2024. Mortgage-backed securities, U.S. government agency securities, municipal securities and a corporate bond security represented 51.9%, 10.1%, 31.6% and 6.4%, respectively, of total available-for-sale securities in an unrealized loss position at December 31, 2024. There were seven mortgage-backed securities, one U.S. government agency securities, one corporate bond and six municipal securities that had an unrealized loss position for more than 12 months at December 31, 2024. Management has evaluated available-for-sale securities that are in an unrealized loss position and determined that the declines in fair value are attributable to market volatility, and not credit quality or other factors. Given the high credit quality of the mortgage-backed securities, which are backed by explicit U.S. government guarantees, or guarantees by government sponsored enterprises that have credit ratings and perceived credit risk comparable to the U.S. government, the high credit quality and strong financial performance of the U.S. government agency and the results of the individual analyses performed for and continuous surveillance on the municipal securities, as well as the corporate security that is a reputable institution in good financial standing, the risk of credit loss is minimal. Management believes that these unrealized losses are a direct result of the current rate environment and the Company has the ability and intent to hold the securities until maturity or the valuations recover. The Bank's held-to-maturity portfolio consists of six mortgage-backed securities that were in an unrealized loss position for more than 12 months at December 31, 2024. These securities are either fully guaranteed or issued by a government sponsored enterprise, which has a credit rating and perceived credit risk comparable to the U.S. government. As such, no allowance for credit losses on securities available-for-sale or held-to-maturity have been established as of December 31, 2024.

The following is a summary of the amortized cost and fair value of debt securities at December 31, 2024, by remaining period to contractual maturity (ignoring earlier call dates, if any). Actual maturities may differ from contractual maturities because certain security issuers have the right to call or prepay their obligations. The table below does not consider the effects of possible prepayments or unscheduled repayments.

$ in thousands	Amortized Cost		Fair Value		Weighted Average Yield
Available-for-Sale:
One through five years	$	952	$	945	5.83	%
Five through ten years	4,673		3,954		2.45	%
After ten years	21,777		16,225		3.10	%
Mortgage-backed securities	29,716		22,997		1.64	%
Total	$	57,118	$	44,121	2.34	%
Held-to-maturity:
Mortgage-backed securities	$	1,807	$	1,735	2.85	%

NOTE 7. LOANS RECEIVABLE AND ALLOWANCE FOR CREDIT LOSSES

The loans receivable portfolio is segmented into one-to-four family, multifamily, commercial real estate, construction, business (including Small Business Administration loans), and consumer loans.

The ACL reflects management’s estimate of lifetime credit losses inherent in loans as of the balance sheet date. Management uses a disciplined process and methodology to calculate the ACL each quarter. To determine the total ACL, management estimates the reserves needed for each segment of the loan portfolio, including loans analyzed individually and loans analyzed on a pooled basis.

The following is a summary of loans receivable, net of allowance for credit losses at ~~December~~June 3130, ~~2024~~2025 and March 31, ~~2024~~2025:

	December 31, 2024				March 31, 2024
	June 30, 2025				March 31, 2025
$ in thousands	Amount		Percent		Amount		Percent
Loans receivable:
One-to-four family	$	7671,~~361~~956	1211.59	%	$	8274,~~787~~387	1312.31	%
Multifamily	~~169~~164,~~596~~696		27.82	%	~~177~~165,~~203~~812		2827.40	%
Commercial real estate	~~181~~171,~~488~~693		2928.74	%	~~175~~178,~~384~~257		2829.21	%
Construction	4,~~131~~640		0.67	%	24,~~203~~567		0.47	%
Business (1)	~~163~~165,~~579~~280		2627.83	%	~~169~~164,~~602~~964		2726.29	%
Consumer (2)	1526,~~722~~993		24.65	%	1525,~~699~~697		24.52	%
Total loans receivable	$	~~610~~605,~~877~~258	100.0	%	$	~~622~~613,~~878~~684	100.0	%
Allowance for credit losses	(6,~~057~~321)				(56,~~871~~337)
Total loans receivable, net	$	~~604~~598,~~820~~937			$	~~617~~607,~~007~~347

(1) Includes PPP loans and business overdrafts

(2) Includes personal loans and consumer overdrafts

The totals above are shown net of deferred loan fees and costs. Net deferred loan fees totaled $2.65 million and $2.96 million at ~~December~~June 3130, ~~2024~~2025 and March 31, ~~2024~~2025, respectively. The Bank purchased $3.85 million of consumer loans during the ~~nine~~three months ended ~~December~~June 3130, ~~2024~~2025.

The Bank participated as a lender in the PPP, which opened on April 3, 2020. As part of the CARES Act, the 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 enrolled in the program, subject to numerous limitations and eligibility criteria. Since the PPP loans are fully guaranteed by the SBA, there are no additional ACL reserves required. As of December 31, 2024, the Bank had approved and funded approximately 420 applications totaling $57.1 million of loans under the PPP. Outstanding business loans under the PPP totaled $210 thousand as of December 31, 2024. 13

The following is an analysis of the allowance for credit losses based upon the method of evaluating loan reserves under the expected loss methodology for the three months ended June 30, 2025 and 2024, and the fiscal year ended March 31, 2025.


Three months ended June 30, 2025
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Construction		Business		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	1,799	$	820	$	1,465	$	3	$	1,646	$	593	$	11	$	6,337

Charge-offs	—		—		—		—		—		(47)		—		(47)
Recoveries	—		—		—		—		6		51		—		57
Provision for (recovery of) Credit Losses	(261)		519		(543)		(2)		122		137		2		(26)

Ending Balance	$	1,538	$	1,339	$	922	$	1	$	1,774	$	734	$	13	$	6,321

Allowance for Credit Losses Ending Balance: collectively evaluated for impairment	$	1,538	$	1,339	$	861	$	1	$	1,671	$	650	$	13	$	6,073
Allowance for Credit Losses Ending Balance: individually evaluated for impairment	—		—		61		—		103		84		—		248

Loan Receivables Ending Balance:	$	71,956	$	164,696	$	171,693	$	4,640	$	165,280	$	26,993	$	—	$	605,258
Ending Balance: collectively evaluated for impairment	70,024		160,763		163,130		4,640		152,044		26,893		—		577,494
Ending Balance: individually evaluated for impairment	1,932		3,933		8,563		—		13,236		100		—		27,764


At March 31, 2025
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Construction		Business		Consumer		Unallocated		Total






Allowance for Credit Losses Ending Balance:	$	1,799	$	820	$	1,465	$	3	$	1,646	$	593	$	11	$	6,337
Allowance for Credit Losses Ending Balance: collectively evaluated for impairment	1,799		820		1,404		3		1,547		560		11		6,144
Allowance for Credit Losses Ending Balance: individually evaluated for impairment	—		—		61		—		99		33		—		193

Loan Receivables Ending Balance:	$	74,387	$	165,812	$	178,257	$	4,567	$	164,964	$	25,697	$	—	$	613,684
Ending Balance: collectively evaluated for impairment	72,888		161,879		169,935		4,567		151,885		25,664		—		586,818
Ending Balance: individually evaluated for impairment	1,499		3,933		8,322		—		13,079		33		—		26,866


Three months ended June 30, 2024
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Construction		Business		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	2,005	$	720	$	1,222	$	1	$	1,415	$	450	$	58	$	5,871

Charge-offs	—		—		—		—		(128)		(50)		—		(178)
Recoveries	—		—		—		—		2		—		—		2
Provision for (recovery of) Credit Losses	45		42		12		2		6		153		—		260
Ending Balance	$	2,050	$	762	$	1,234	$	3	$	1,295	$	553	$	58	$	5,955

The following is ana ~~analysis~~summary of ~~the~~nonaccrual ~~allowance~~loans, ~~for~~at ~~credit~~amortized ~~losses~~cost, ~~based~~at ~~upon the method of evaluating loan reserves under the expected loss methodology for the three and nine months ended December~~June 3130, ~~2024~~2025 and ~~2023, and the fiscal year ended~~ March 31, ~~2024~~2025.

Three months ended December 31, 2024
	June 30, 2025
$ in thousands	~~One-to-fourfamily~~Nonaccrual Loans with No Allowance		~~Multifamily~~Nonaccrual Loans with an Allowance		~~Commercial~~Total ~~Real~~Nonaccrual ~~Estate~~Loans		~~Construction~~		~~Business~~		~~Consumer~~		~~Unallocated~~		~~Total~~
Allowance for credit losses:
Gross loans receivable:
Beginning Balance	$	2,013	$	759	$	1,247	$	4	$	1,539	$	607	$	73	$	6,242
One-to-four family	$	2,507	$	—	$	2,507
Charge-offs	—		—		—		—		(61)		(226)		—		(287)
Multifamily	2,871		—		2,871
Recoveries	—		—		—		—		2		4		—		6
Commercial real estate	4,763		2,200		6,963
Provision for (recovery of) Credit Losses	(112)		39		91		(1)		(65)		208		(64)		96
Business	11,878		136		12,014
Ending Balance	$	1,901	$	798	$	1,338	$	3	$	1,415	$	593	$	9	$	6,057
Consumer	—		103		103
Total nonaccrual loans	$	22,019	$	2,439	$	24,458

Nine months ended December 31, 2024
	March 31, 2025
$ in thousands	~~One-to-fourfamily~~Nonaccrual Loans with No Allowance		~~Multifamily~~Nonaccrual Loans with an Allowance		~~Commercial~~Total ~~Real~~Nonaccrual ~~Estate~~Loans		~~Construction~~		~~Business~~		~~Consumer~~		~~Unallocated~~		~~Total~~
Allowance for credit losses:
Gross loans receivable:
Beginning Balance	$	2,005	$	720	$	1,222	$	1	$	1,415	$	450	$	58	$	5,871
One-to-four family	$	1,519	$	—	$	1,519
Charge-offs	—		—		—		—		(289)		(353)		—		(642)
Multifamily	3,937		—		3,937
Recoveries	—		—		—		—		6		5		—		11
Commercial real estate	4,545		2,202		6,747
Provision for (recovery of) Credit Losses	(104)		78		116		2		283		491		(49)		817
Business	12,255		104		12,359
Ending Balance	$	1,901	$	798	$	1,338	$	3	$	1,415	$	593	$	9	$	6,057
Consumer	—		33		33
Allowance for Credit Losses Ending Balance: collectively evaluated for impairment	$	1,901	$	798	$	1,338	$	3	$	1,414	$	479	$	9	$	5,942
Total nonaccrual loans	$	22,256	$	2,339	$	24,595
Allowance for Credit Losses Ending Balance: individually evaluated for impairment	—		—		—		—		1		114		—		115
Loan Receivables Ending Balance:	$	76,361	$	169,596	$	181,488	$	4,131	$	163,579	$	15,722	$	—	$	610,877
Ending Balance: collectively evaluated for impairment	74,862		167,375		173,184		4,131		150,825		15,628		—		586,005
Ending Balance: individually evaluated for impairment	1,499		2,221		8,304		—		12,754		94		—		24,872

15 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. Accrual of interest on loans is discontinued when the payment of principal or interest is considered to be in doubt, or when a loan becomes contractually past due by 90 days or more with respect to principal or interest, except for loans that are well-secured and in the process of collection. When a loan is placed on nonaccrual status, any accrued but uncollected interest is reversed from current income. Interest income on nonaccrual loans is recorded when received based upon the collectability of the loan. There was no interest income recognized on nonaccrual loans during the three months ended June 30, 2025.

At March 31, 2024
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Construction		Business		Consumer		Unallocated		Total
Allowance for Credit Losses Ending Balance:	$	2,005	$	720	$	1,222	$	1	$	1,415	$	450	$	58	$	5,871
Allowance for Credit Losses Ending Balance: collectively evaluated for impairment	2,005		720		1,222		1		1,408		449		58		5,863
Allowance for Credit Losses Ending Balance: individually evaluated for impairment	—		—		—		—		7		1		—		8
Loan Receivables Ending Balance:	$	82,787	$	177,203	$	175,384	$	2,203	$	169,602	$	15,699	$	—	$	622,878
Ending Balance: collectively evaluated for impairment	78,636		174,718		170,862		2,203		156,340		15,654		—		598,413
Ending Balance: individually evaluated for impairment	4,151		2,485		4,522		—		13,262		45		—		24,465

At June 30, 2025 and March 31, 2025, other non-performing assets totaled $52 thousand, which consisted of other real estate owned comprised of one foreclosed residential property. Other real estate owned is included in other assets in the consolidated statements of financial condition. There were no held-for-sale loans at June 30, 2025 and March 31, 2025.

Three months ended December 31, 2023
$ in thousands	One-to-fourfamily		Multifamily		Commercial Real Estate		Construction		Business		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	2,264	$	721	$	1,212	$	—	$	1,393	$	417	$	—	$	6,007
Charge-offs	—		—		—		—		—		(17)		—		(17)
Recoveries	—		—		—		—		2		2		—		4
Provision for (recovery of) Credit Losses	(196)		1		(1)		1		57		41		—		(97)
Ending Balance	$	2,068	$	722	$	1,211	$	1	$	1,452	$	443	$	—	$	5,897

Although we believe that substantially all risk elements at June 30, 2025 have been disclosed, it is possible that for a variety of reasons, including economic conditions, certain borrowers may be unable to comply with the contractual repayment terms on certain real estate and commercial loans.

Nine months ended December 31, 2023
$ in thousands	One-to-four family		Multifamily		Commercial Real Estate		Construction		Business		Consumer		Unallocated		Total
Allowance for credit losses:
Beginning Balance	$	716	$	1,109	$	1,814	$	—	$	1,139	$	449	$	2	$	5,229
Impact of CECL adoption	1,220		(392)		(497)				505		(166)		(2)		668
Charge-offs	—		—		—		—		—		(134)		—		(134)
Recoveries	—		—		—		—		52		5		—		57
Provision for (recovery of) Credit Losses	132		5		(106)		1		(244)		289		—		77
Ending Balance	$	2,068	$	722	$	1,211	$	1	$	1,452	$	443	$	—	$	5,897

The following is a summary of nonaccrual loans, at amortized cost, at December 31, 2024 and March 31, 2024.

	December 31, 2024
$ in thousands	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance		Total Nonaccrual Loans
Gross loans receivable:
One-to-four family	$	1,874	$	—	$	1,874
Multifamily	2,249		—		2,249
Commercial real estate	6,104		—		6,104
Business	12,486		—		12,486
Consumer	—		98		98
Total nonaccrual loans	$	22,713	$	98	$	22,811

	March 31, 2024
$ in thousands	Nonaccrual Loans with No Allowance		Nonaccrual Loans with an Allowance		Total Nonaccrual Loans
Gross loans receivable:
One-to-four family	$	3,554	$	—	$	3,554
Multifamily	2,238		—		2,238
Commercial real estate	4,522		—		4,522
Business	1,317		100		1,417
Consumer	—		44		44
Total nonaccrual loans	$	11,631	$	144	$	11,775

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. Accrual of interest on loans is discontinued when the payment of principal or interest is considered to be in doubt, or when a loan becomes contractually past due by 90 days or more with respect to principal or interest, except for loans that are well-secured and in the process of collection. When a loan is placed on nonaccrual status, any accrued but uncollected interest is reversed from current income. Interest income on nonaccrual loans is recorded when received based upon the collectability of the loan. There was no interest income recognized on nonaccrual loans during the three and nine months ended December 31, 2024.

At December 31, 2024 and March 31, 2024, other non-performing assets totaled $52 thousand, respectively, which consisted of other real estate owned comprised of one foreclosed residential property. Other real estate owned is included in other assets in the consolidated statements of financial condition. There were no held-for-sale loans at December 31, 2024 and March 31, 2024.

Although we believe that substantially all risk elements at December 31, 2024 have been disclosed, it is possible that for a variety of reasons, including economic conditions, certain borrowers may be unable to comply with the contractual repayment terms on certain real estate and commercial loans.

The Bank utilizes an internal loan classification system as a means of reporting problem loans within its loan categories:

Pass - Loans have demonstrated satisfactory asset quality, earning history, liquidity, and other adequate margins of creditor protection. These loans represent a moderate credit risk and some degree of financial stability, and are considered collectible in full.

Special Mention - Loans have potential weaknesses that deserve management's close attention. If 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.

Substandard - Loans are inadequately protected by the current sound net worth and paying capacity of the obligor or of the collateral pledged, if any. These loans 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.

Doubtful - Loans have all the weaknesses inherent in those classified as Substandard, with the added characteristic that collection or liquidation in full, based on current facts, conditions and values, is highly questionable and improbable.

Loss - Loans are considered uncollectible with insignificant value and are charged off immediately to the allowance for credit losses.

One-to-four family residential loans and consumer loans are rated non-performing if they are delinquent in payments 90 or more days, or past maturity. All other one-to-four family residential loans and consumer loans are performing loans.

The following tables present the amortized cost of loans by year of origination and risk category by class of loans based on the most recent analysis performed in the current quarter as of June 30, 2025 and March 31, 2025:


At June 30, 2025
$ in thousands	2025		2024		2023		2022		2021		2020 and earlier		Revolving Loans		Total
Credit Risk Profile by Internally Assigned Grade:
Multifamily
Pass	$	1,099	$	1,716	$	6,486	$	49,856	$	38,361	$	55,440	$	—	$	152,958
Special Mention	—		—		—		—		7,805		—		—		7,805
Substandard	—		—		—		1,093		2,086		754		—		3,933
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	1,099		1,716		6,486		50,949		48,252		56,194		—		164,696

Commercial Real Estate
Pass	$	3,836	$	12,877	$	28,774	$	30,576	$	18,919	$	68,148	$	—	$	163,130
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		3,800		4,763		—		8,563
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	3,836		12,877		28,774		30,576		22,719		72,911		—		171,693

Construction
Pass	$	—	$	—	$	4,640	$	—	$	—	$	—	$	—	$	4,640
Special Mention	—		—		—		—		—		—		—		—
Substandard	—		—		—		—		—		—		—		—
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	—		—		4,640		—		—		—		—		4,640

Business
Pass	$	8,825	$	24,698	$	18,263	$	25,316	$	39,052	$	37,552	$	—	$	153,706
Special Mention	—		—		—		1,793		—		—		—		1,793
Substandard	—		—		—		7,950		1,486		345		—		9,781
Doubtful	—		—		—		—		—		—		—		—
Loss	—		—		—		—		—		—		—		—
Total	8,825		24,698		18,263		35,059		40,538		37,897		—		165,280


Credit Risk Profile Based on Payment Activity:
One-to-four Family
Performing	$	—	$	—	$	19,498	$	3,747	$	12,360	$	34,418	$	—	$	70,023
Non-Performing	—		—		—		—		—		1,933		—		1,933
Total	—		—		19,498		3,747		12,360		36,351		—		71,956

Consumer
Performing	$	13,725	$	4,060	$	7,593	$	249	$	—	$	1,266	$	—	$	26,893
Non-Performing	—		44		54		2		—		—		—		100
Total	13,725		4,104		7,647		251		—		1,266		—		26,993
Gross charge-offs	—		—		31		16		—		—		—		47

Total Loans (excluding gross charge-offs)	$	27,485	$	43,395	$	85,308	$	120,582	$	123,869	$	204,619	$	—	$	605,258


At March 31, 2025
$ in thousands	2025				2024				2023				2022		2021		2020 and earlier		Revolving Loans		Total
Credit Risk Profile by Internally Assigned Grade:
Multifamily
Pass	$	—			$	1,719			$	6,501			$	50,072	$	37,122	$	57,167	—		$	152,581
Special Mention	—				—				—				—		10,004		—		—		10,004
Substandard	—				—				—				1,093		1,380		754		—		3,227
Doubtful	—				—				—				—		—		—		—		—
Loss	—				—				—				—		—		—		—		—
Total	—				1,719				6,501				51,165		48,506		57,921		—		165,812

Commercial Real Estate
Pass	$	1,750			$	12,913			$	28,834			$	30,728	$	20,250	$	71,793	—		166,268
Special Mention	—				—				—				—		3,023		644		—		3,667
Substandard	—				—				—				—		3,800		4,522		—		8,322
Doubtful	—				—				—				—		—		—		—		—
Loss	—				—				—				—		—		—		—		—
Total	1,750				12,913				28,834				30,728		27,073		76,959		—		178,257

Construction
Pass	$	—			$	—			$	4,567			$	—	$	—	$	—	$	—	4,567
Special Mention	—				—				—				—		—		—		—		—
Substandard	—				—				—				—		—		—		—		—
Doubtful	—				—				—				—		—		—		—		—
Loss	—				—				—				—		—		—		—		—
Total	—				—				4,567				—		—		—		—		4,567

Business
Pass	$	2,807			$	24,325			$	18,978			$	25,906	$	39,992	$	38,115	—		150,123
Special Mention	—				—				—				1,803		438		—		—		2,241
Substandard	—				—				—				7,950		4,307		343		—		12,600
Doubtful	—				—				—				—		—		—		—		—
Loss	—				—				—				—		—		—		—		—
Total	2,807				24,325				18,978				35,659		44,737		38,458		—		164,964
Gross charge-offs	—				—				—				160		—		129		—		289

Credit Risk Profile Based on Payment Activity:
One-to-four Family
Performing	$	—			$	—			$	20,793			$	3,764	$	12,411	$	35,920	$	—	72,888
Non-Performing	—				—				—				—		—		1,499		—		1,499
Total	—				—				20,793				3,764		12,411		37,419		—		74,387

Consumer
Performing	$	11,206	$	—	$	4,556	$	—	$	8,384	$	—	$	304	$	—	$	1,193	$	—	25,643
Non-Performing	—				22				17				15		—		—		—		54
Total	11,206				4,578				8,401				319		—		1,193		—		25,697
Gross charge-offs	—				52				303				14		—		212		—		581

Total Loans (excluding gross charge-offs)	$	15,763			$	43,535			$	88,074			$	121,635	$	132,727	$	211,950	$	—	$	613,684

~~The~~ Loans ~~following~~are ~~table~~considered ~~presents~~past ~~the~~due ~~amortized~~if ~~cost~~required ofprincipal ~~loans~~and byinterest ~~year~~payments have not been received as of ~~origination~~the ~~and~~date ~~risk~~such ~~category~~payments bywere ~~class~~contractually ofdue. The ~~loans~~following ~~based~~tables onpresent an aging analysis of the ~~most~~amortized ~~recent~~cost ~~analysis~~of ~~performed~~past indue ~~the~~loans ~~current~~receivables ~~quarter~~at asJune 30, of2025 ~~December~~and March 31, ~~2024:~~ 2025.

$ in thousands	2024		2023		2022		2021		2020			2019 and earlier		Revolving Loans		Total
June 30, 2025
Credit Risk Profile by Internally Assigned Grade:
$ in thousands	30-59 DaysPast Due		60-89 DaysPast Due		90 or More Days Past Due		Total PastDue		Current			Total LoansReceivables
Multifamily
One-to-four family	$	—	$	—	$	3,026	$	3,026	$	68,930		$	71,956
Pass	$	1,723	$	6,528	$	51,386	$	47,350	$	27,133		$	33,255	$	—	$	167,375
Multifamily	—		7,488		2,840		10,328		154,368			164,696
Special Mention	—		—		—		—		—			—		—		—
Commercial real estate	—		—		6,963		6,963		164,730			171,693
Substandard	—		—		—		1,467		754			—		—		2,221
Construction	—		—		—		—		4,640			4,640
Doubtful	—		—		—		—		—			—		—		—
Business	—		41		11,641		11,682		153,598			165,280
Loss	—		—		—		—		—			—		—		—
Consumer	147		102		100		349		26,644			26,993
Total	~~1,723~~$	147	~~6,528~~$	7,631	~~51,386~~$	24,570	~~48,817~~$	32,348	~~27,887~~$	572,910		~~33,255~~$	605,258	—		~~169,596~~
Commercial Real Estate
Pass	$	12,948	$	28,898	$	30,848	$	23,405	$	16,592		$	59,841	$	—	$	172,532
Special Mention	—		—		—		—		—			652		—		652
Substandard	—		—		—		3,782		—			4,522		—		8,304
Doubtful	—		—		—		—		—			—		—		—
Loss	—		—		—		—		—			—		—		—
Total	12,948		28,898		30,848		27,187		16,592			65,015		—		181,488
Construction
Pass	$	—	$	4,131	$	—	$	—	$	—		$	—	$	—	$	4,131
Special Mention	—		—		—		—		—			—		—		—
Substandard	—		—		—		—		—			—		—		—
Doubtful	—		—		—		—		—			—		—		—
Loss	—		—		—		—		—			—		—		—
Total	—		4,131		—		—		—			—		—		4,131
Business
Pass	$	24,477	$	19,121	$	27,836	$	40,718	$	10,599		$	28,074	$	—	$	150,825
Special Mention	—		—		—		—		—			—		—		—
Substandard	—		52		7,951		4,311		—			440		—		12,754
Doubtful	—		—		—		—		—			—		—		—
Loss	—		—		—		—		—			—		—		—
Total	24,477		19,173		35,787		45,029		10,599			28,514		—		163,579
Gross charge-offs	—		—		160		—		—		—	129		—		289
Credit Risk Profile Based on Payment Activity:
One-to-four Family
Performing	$	—	$	21,314	$	3,779	$	13,277	$	1,400		$	35,092	$	—	$	74,862
Non-Performing	—		—		—		—		—			1,499		—		1,499
Total	—		21,314		3,779		13,277		1,400			36,591		—		76,361
Consumer
Performing	$	4,981	$	9,202	$	382	$	—	$	1		$	1,062	$	—	$	15,628
Non-Performing	39		55		—		—		—			—		—		94
Total	5,020		9,257		382		—		1			1,062		—		15,722
Gross charge-offs	48		186		5		—		5			109		—		353
Total Loans (excluding gross charge-offs)	$	44,168	$	89,301	$	122,182	$	134,310	$	56,479		$	164,437	$	—	$	610,877


March 31, 2025
$ in thousands	30-59 Days Past Due		60-89 Days Past Due		90 or More Days Past Due		Total Past Due		Current		Total Loans Receivables
One-to-four family	$	804	$	—	$	1,499	$	2,303	$	72,084	$	74,387
Multifamily	7,521		1,093		2,840		11,454		154,358		165,812
Commercial real estate	1,314		—		6,722		8,036		170,221		178,257
Construction	—		—		—		—		4,567		4,567
Business	9,265		956		12,156		22,377		142,587		164,964
Consumer	108		85		33		226		25,471		25,697
Total	$	19,012	$	2,134	$	23,250	$	44,396	$	569,288	$	613,684

AtCollateral ~~March 31,~~dependent ~~2024,~~loans are loans for which the ~~risk~~repayment ~~category~~is byexpected ~~class~~to be provided substantially through the operation or sale of the underlying collateral and the borrower is experiencing financial difficulty. All substandard and doubtful loans ~~was~~and any other loans that the Chief Credit Officer deems appropriate for review, are identified and reviewed for individual analysis. The following table presents the amortized cost of collateral dependent loans with the associated allowance amount, if applicable, as ~~follows~~of June 30, 2025 and March 31, 2025:

$ in thousands	2024				2023				2022				2021		2020		2019 and earlier		Revolving Loans		Total
	At June 30, 2025												At March 31, 2025
Credit Risk Profile by Internally Assigned Grade:
	Collateral Type												Collateral Type
Multifamily
$ in thousands	Real Estate				Other				Allowance Allocated				Real Estate		Other		Allowance Allocated
Pass	$	980			$	6,587			$	53,516			$	50,778	$	28,483	$	34,374	—		$	174,718
One-to-four family	$	1,932			$	—			$	—			$	1,012	$	487	$	—
Special Mention	—				—				—				—		—		—		—		—
Multifamily	3,933				—				—				3,933		—		—
Substandard	—				—				—				1,451		754		280		—		2,485
Commercial real estate	8,563				—				61				8,322		—		61
Doubtful	—				—				—				—		—		—		—		—
Business	13,120				116				103				13,018		62		99
Loss	—				—				—				—		—		—		—		—
Consumer	—				100				84				4		28		33
Total	980				6,587				53,516				52,229		29,237		34,654		—		177,203
	$	27,548			$	216			$	248			$	26,289	$	577	$	193
Commercial Real Estate
Pass	$	2,450			$	29,064			$	31,313			$	27,635	$	16,951	$	62,775	—		170,188
Special Mention	—				—				—				—		—		674		—		674
Substandard	—				—				—				—		—		4,522		—		4,522
Doubtful	—				—				—				—		—		—		—		—
Loss	—				—				—				—		—		—		—		—
Total	2,450				29,064				31,313				27,635		16,951		67,971		—		175,384
Construction
Pass	$	—			$	2,203			$	—			$	—	$	—	$	—	$	—	2,203
Special Mention	—				—				—				—		—		—		—		—
Substandard	—				—				—				—		—		—		—		—
Doubtful	—				—				—				—		—		—		—		—
Loss	—				—				—				—		—		—		—		—
Total	—				2,203				—				—		—		—		—		2,203
Business
Pass	$	7,050			$	21,315			$	32,675			$	52,839	$	10,845	$	32,587	—		157,311
Special Mention	—				—				—				—		—		—		—		—
Substandard	—				—				7,939				3,987		—		365		—		12,291
Doubtful	—				—				—				—		—		—		—		—
Loss	—				—				—				—		—		—		—		—
Total	7,050				21,315				40,614				56,826		10,845		32,952		—		169,602
Gross charge-offs	—				—				—				—		—		10		—		10
Credit Risk Profile Based on Payment Activity:
One-to-four Family
Performing	$	—			$	22,247			$	3,830			$	13,422	$	1,424	$	39,002	$	—	79,925
Non-Performing	—				—				—				—		—		2,862		—		2,862
Total	—				22,247				3,830				13,422		1,424		41,864		—		82,787
Consumer
Performing	$	2,003	$	—	$	11,891	$	—	$	570	$	—	$	4	$	16	$	1,172	$	—	15,656
Non-Performing	—				42				1				—		—		—		—		43
Total	2,003				11,933				571				4		16		1,172		—		15,699
Gross charge-offs	—				18				1				—		—		141		—		160
Total Loans (excluding gross charge-offs)	$	12,483			$	93,349			$	129,844			$	150,116	$	58,473	$	178,613	$	—	$	622,878

Loans are considered past due if required principal and interest payments have not been received as of the date such payments were contractually due. The following tables present an aging analysis of the amortized cost of past due loans receivables at December 31, 2024 and March 31, 2024.

December 31, 2024
$ in thousands	30-59 DaysPast Due		60-89 DaysPast Due		90 or More Days Past Due		Total PastDue		Current		Total LoansReceivables
One-to-four family	$	222	$	—	$	1,313	$	1,535	$	74,826	$	76,361
Multifamily	1,457		—		2,221		3,678		165,918		169,596
Commercial real estate	3,520		—		6,104		9,624		171,864		181,488
Construction	—		—		—		—		4,131		4,131
Business	3,339		—		12,213		15,552		148,027		163,579
Consumer	145		8		94		247		15,475		15,722
Total	$	8,683	$	8	$	21,945	$	30,636	$	580,241	$	610,877

March 31, 2024
$ in thousands	30-59 DaysPast Due		60-89 DaysPast Due		90 or More Days Past Due		Total PastDue		Current		Total Loans Receivables
One-to-four family	$	164	$	—	$	2,859	$	3,023	$	79,764	$	82,787
Multifamily	—		—		2,205		2,205		174,998		177,203
Commercial real estate	—		—		4,660		4,660		170,724		175,384
Construction	—		—		—		—		2,203		2,203
Business	1,959		214		12,071		14,244		155,358		169,602
Consumer	151		54		—		205		15,494		15,699
Total	$	2,274	$	268	$	21,795	$	24,337	$	598,541	$	622,878

Collateral dependent loans are loans for which the repayment is expected to be provided substantially through the operation or sale of the underlying collateral and the borrower is experiencing financial difficulty. All substandard and doubtful loans and any other loans that the Chief Credit Officer deems appropriate for review, are identified and reviewed for individual analysis. The following table presents the amortized cost of collateral dependent loans with the associated allowance amount, if applicable, as of December 31, 2024 and March 31, 2024:

	At December 31, 2024						At March 31, 2024
	Collateral Type						Collateral Type
$ in thousands	Real Estate		Other		Allowance Allocated		Real Estate		Other		Allowance Allocated
One-to-four family	$	1,499	$	—	$	—	$	4,151	$	—	$	—
Multifamily	2,221		—		—		2,485		—		—
Commercial real estate	8,304		—		—		4,522		—		—
Business	12,615		139		1		12,196		1,066		7
Consumer	—		94		114		—		45		1
	$	24,639	$	233	$	115	$	23,354	$	1,111	$	8

Real estate collateral includes one-to-four family, multifamily and commercial properties. Collateral types securing business loans include accounts receivable. There have been no significant changes to the types of collateral securing the Bank's collateral dependent loans.

In certain circumstances, the Bank will modify the terms of a loan, including 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 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 to borrowers experiencing financial difficulty made during the ~~nine~~three months ended ~~December~~June 3130, ~~2024~~2025 and ~~2023~~2024. At ~~December~~June 3130, ~~2024~~2025, loans modified to borrowers experiencing financial difficulty totaled $6.01 million, $~~348~~372 thousand 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. There were three modified loans totaling $5.7 million that were on accrual status as the Company has determined that future collection of the principal and interest is reasonably assured. These have generally performed according to the restructured terms for a period of at least six months. For the periods ended ~~December~~June 3130, ~~2024~~2025 and ~~2023~~2024, there were no modified loans that defaulted within 12 months of modification.

2119

Transactions With Certain Related Persons

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. There were no loans outstanding to related parties at ~~December~~June 3130, ~~2024~~2025.

NOTE 8. COMMITMENTS AND CONTINGENCIES

The Company is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers and in connection with its overall investment strategy. These instruments involve, to varying degrees, elements of credit, interest rate and liquidity risk. These instruments are not recorded in the consolidated financial statements. Such instruments primarily include lending obligations, including commitments to originate mortgage and consumer loans and to fund unused lines of credit.

The Bank's exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments as it does for on-balance-sheet instruments.

The following table reflects the Bank's outstanding commitments as of June 30, 2025 and March 31, 2025:

$ in thousands

~~December~~June 3130, ~~2024~~2025

March 31, ~~2024~~2025

Lines of credit

3,~~501~~836

~~4,268~~$

3,208

Letters of credit

412

—412

Commitment to fund private equity investment

~~835~~720

~~650~~763

4,~~748~~968

4,~~918~~383

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination clauses and may require payment of a fee. Since some of these commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer's creditworthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary by the Bank upon extension of credit, is based on management's credit evaluation of the counterparty.

The Company records an allowance for credit losses on off-balance sheet credit exposures, unless such commitments are unconditionally cancellable, through the provision for credit losses expense using CECL expected loss methodology. The allowance for credit losses on off-balance sheet credit exposures was $13 thousand as of ~~December~~June 3130, ~~2024~~2025 ~~was $9 thousand~~ and is included in Other Liabilities in the consolidated statements of financial condition.

NOTE 9. FAIR VALUE MEASUREMENTS

Fair value is an “exit” price, representing the amount that would be received when selling an asset, or paid when transferring a liability, in an orderly transaction between market participants. Fair value is a market-based measurement that should be determined based on assumptions that market participants would use in pricing an asset or liability. Fair value measurements are categorized in a a three-tier fair value hierarchy, which prioritizes the inputs used in measuring fair value as follows:

•Level 1— Inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.

•Level 2— Inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.

2220

◦Level 3— Inputs to the valuation methodology are unobservable and significant to the fair value measurement.

A financial instrument’s categorization within this valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement.

The following table presents, by valuation hierarchy, assets that are measured at fair value on a recurring basis as of ~~December~~June 3130, ~~2024~~2025 and March 31, ~~2024~~2025, and that are included in the Company’s Consolidated Statements of Financial Condition at these dates:

Fair Value Measurements at December 31, 2024, Using

Fair Value Measurements at June 30, 2025, Using

$ in thousands

Quoted Prices in Active Markets for Identical Assets(Level 1)

Significant OtherObservable Inputs(Level 2)

SignificantUnobservable Inputs(Level 3)

Total FairValue

Mortgage servicing rights

—

~~134~~—

Investment securities

Available-for-sale:

Mortgage-backed securities:

Government National Mortgage Association

—

~~215~~203

—

~~215~~203

Federal Home Loan Mortgage Corporation

—

14,~~732~~446

—

14,~~732~~446

Federal National Mortgage Association

—

87,~~050~~979

—

87,~~050~~979

U.S. Government Agency securities

—

4,~~438~~040

—

4,~~438~~040

Corporate bonds

—

2,~~817~~792

—

2,~~817~~792

Muni securities

—

1314,~~869~~376

—

1314,~~869~~376

Total available-for-sale securities

—

4443,~~121~~836

—

4443,~~121~~836

Total assets

—

4443,~~121~~836

~~134~~—

4443,~~255~~836

Fair Value Measurements at March 31, 2024, Using

Fair Value Measurements at March 31, 2025, Using

$ in thousands

Quoted Prices inActive Markets forIdentical Assets(Level 1)

Significant OtherObservable Inputs(Level 2)

SignificantUnobservableInputs(Level 3)

Total FairValue

Mortgage servicing rights

—

~~140~~130

Investment securities

Available-for-sale:

Mortgage-backed securities:

Government National Mortgage Association

—

~~283~~209

—

~~283~~209

Federal Home Loan Mortgage Corporation

—

1514,~~798~~762

—

1514,~~798~~762

Federal National Mortgage Association

—

8,~~636~~101

—

8,~~636~~101

U.S. Government Agency securities

—

64,~~194~~310

—

64,~~194~~310

Corporate bonds

—

32,~~063~~820

—

32,~~063~~820

Muni securities

—

14,~~056~~320

—

14,~~056~~320

Total available-for-sale securities

—

4844,~~030~~522

—

4844,~~030~~522

Total assets

—

4844,~~030~~522

~~140~~130

4844,~~170~~652

Instruments for which unobservable inputs are significant to their fair value measurement (i.e., Level 3) include mortgage servicing rights (“MSR”). Level 3 assets accounted for 0.02% of the Company’s total assets at ~~December~~March 31, ~~2024~~2025. There ~~and~~were ~~March~~no level 3 assets at June 3130, ~~2024~~2025.

The Company reviews and updates the fair value hierarchy classifications on a quarterly basis. Changes from one quarter to the next that are related to the observable inputs to a fair value measurement may result in a reclassification from one hierarchy level to another.

Below is a description of the methods and significant assumptions utilized in estimating the fair value of available-for-sale securities and MSR:

2321

Where quoted prices are available in an active market, securities are classified within Level 1 of the valuation hierarchy.

If quoted market prices are not available for the specific security, then fair values are estimated by using pricing models, quoted prices of securities with similar characteristics, or discounted cash flows. These pricing models primarily use market-based or independently sourced market parameters as inputs, including, but not limited to, yield curves, interest rates, equity or debt prices, and credit spreads. In addition to market information, models also incorporate transaction details, such as maturity and cash flow assumptions. Securities valued in this manner would generally be classified within Level 2 of the valuation hierarchy and primarily include such instruments as mortgage-related securities and corporate debt.

During the ~~nine~~three months ended ~~December~~June 3130, ~~2024~~2025, there were no transfers of investments into or out of each level of the fair value hierarchy.

In certain cases where there is limited activity or less transparency around inputs to the valuation, securities are classified within Level 3 of the valuation hierarchy. In valuing certain securities, the determination of fair value may require benchmarking to similar instruments or analyzing default and recovery rates. Quoted price information for the MSRs is not available. Therefore, MSRs are valued using market-standard models to model the specific cash flow structure. Key inputs to the model consist of principal balance of loans being serviced, servicing fees and discount and prepayment rates.

The methods described above may produce a fair value calculation that may not be indicative of net realizable value or reflective of future fair values. Furthermore, while the Company believes its valuation methods are appropriate and consistent with those of other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date.

The following table includes a rollforward of assets classified by the Company within Level 3 of the valuation hierarchy for the ~~nine~~three months ended ~~December~~June 3130, ~~2024~~2025 and ~~2023~~2024:

$ in thousands

Beginning balance, April 1, ~~2024~~2025

Total Realized/Unrealized Gains/(Losses) Recorded in Income (1)

Issuances / (Settlements)

Transfers to/(from) Level 3

Ending balance,~~December~~June 3130, ~~2024~~2025

Change in Unrealized Gains/(Losses) Related to Instruments Held at ~~December~~June 3130, ~~2024~~2025

Mortgage servicing rights

~~140~~130

(6130)

—

~~134~~—

~~(5)~~—

$ in thousands						Beginning balance, April 1, ~~2023~~2024						Total Realized/Unrealized Gains/(Losses) Recorded in Income (1)						Issuances / (Settlements)						Transfers to/(from) Level 3						Ending balance, ~~December~~June 3130, ~~2023~~2024						Change in Unrealized Gains/(Losses) Related to Instruments Held at ~~December~~June 3130, ~~2023~~2024
Mortgage servicing rights						$	~~152~~140					(10)						—						—						$	~~142~~130					$	(9)

(1) Includes net servicing cash flows and the passage of time.

For Level 3 assets measured at fair value on a recurring basis as of ~~December 31, 2024 and~~ March 31, ~~2024~~2025, the significant unobservable inputs used in the fair value measurements were as follows:

$ in thousands

Fair ~~Value~~ValueMarch ~~December~~ 31, ~~2024~~2025

Valuation Technique

Significant Unobservable Inputs

~~Significant Unobservable Input Value~~Range

Weighted Average

Mortgage servicing rights

~~134~~130

Discounted Cash Flow

~~Weighted Average~~ Constant Prepayment Rate (1)

63.40% to 9.8%

6.4

Range of Inputs

3.0% to 11.0%

Option Adjusted Spread ("OAS")

N/A

1000 basis points

Option Adjusted Spread ("OAS") applied to Treasury curve

1000 basis points

$ in thousands

Fair ValueMarch 31, 2024

Valuation Technique

Significant Unobservable Inputs

Significant Unobservable Input Value

Mortgage servicing rights

140

Discounted Cash Flow

Weighted Average Constant Prepayment Rate (1)

6.4

Range of Inputs

3.0% to 7.1%

Option Adjusted Spread ("OAS") applied to Treasury curve

1000 basis points

(1) Represents annualized loan repayment rate assumptions (ZMUPT model)

2422

Certain assets are measured at fair value on a non-recurring basis. Such instruments are subject to fair value adjustments under certain circumstances (e.g. when there is evidence of impairment). The following table presents assets and liabilities that were measured at fair value on a non-recurring basis as of ~~December~~June 3130, ~~2024~~2025 and March 31, ~~2024~~2025, and that are included in the Company’s Consolidated Statements of Financial Condition at these dates:

Fair Value Measurements at December 31, 2024 Using

Fair Value Measurements at June 30, 2025 Using

Quoted Prices in Active Markets for Identical Assets

Significant Other Observable Inputs

Significant Unobservable Inputs

Total Fair Value

$ in thousands

(Level 1)

(Level 2)

(Level 3)

Other real estate owned

—

Fair Value Measurements at March 31, 2024, Using

Fair Value Measurements at March 31, 2025, Using

Quoted Prices in Active Markets for Identical Assets

Significant Other Observable Inputs

Significant Unobservable Inputs

Total Fair Value

$ in thousands

(Level 1)

(Level 2)

(Level 3)

Other real estate owned

—

For Level 3 assets measured at fair value on a non-recurring basis as of ~~December~~June 3130, ~~2024~~2025 and March 31, ~~2024~~2025, the significant unobservable inputs used in the fair value measurements were as follows:

$ in thousands

Fair Value ~~December~~June 3130, ~~2024~~2025

Valuation Technique

Significant Unobservable Inputs

Significant Unobservable Input Value

Other real estate owned

Appraisal of collateral

Appraisal adjustments

7.5% cost to sell

$ in thousands

Fair Value March 31, ~~2024~~2025

Valuation Technique

Significant Unobservable Inputs

Significant Unobservable Input Value

Other real estate owned

Appraisal of collateral

Appraisal adjustments

7.5% cost to sell

The fair values of collateral dependent impaired loans are determined using various valuation techniques, including consideration of appraised values and other pertinent real estate market data.

Other real estate owned represents property acquired by the Bank in settlement of loans less costs to sell (i.e., through foreclosure, repossession or as an in-substance foreclosure). These assets are recorded at the lower of their cost or fair value. At the time of acquisition of the real estate owned, the real property value is adjusted to its current fair value. Any subsequent adjustments will be to the lower of cost or fair value. As of ~~December~~June 3130, ~~2024~~2025 and March 31, ~~2024~~2025, the Company had loans with a carrying value of $1312.94 million and $1516.21 million, respectively, for which formal foreclosure proceedings were in process.

NOTE 10. FAIR VALUE OF FINANCIAL INSTRUMENTS

Disclosures regarding the fair value of financial instruments are required to include, in addition to the carrying value, the fair value of certain financial instruments, both assets and liabilities recorded on and off-balance sheet, for which it is practicable to estimate fair value. Accounting guidance defines financial instruments as cash, evidence of ownership of an entity, or a contract that conveys or imposes on an entity the contractual right or obligation to either receive or deliver cash or another financial instrument. The fair value of a financial instrument is discussed below. In cases where quoted market prices are not available, estimated fair values have been determined by the Bank using the best available data and estimation methodology suitable for each such category of financial instruments. For those loans and deposits with floating interest rates, it is presumed that estimated fair values generally approximate their recorded carrying value. The Bank's primary component of market risk is interest rate volatility. Fluctuations in interest rates will ultimately impact the Bank's fair value of all interest-earning assets and interest-bearing liabilities, other than those which are short-term in maturity.

2523

The carrying amounts and estimated fair values of the Bank’s financial instruments and estimation methodologies at ~~December~~June 3130, ~~2024~~2025 and March 31, ~~2024~~2025 are as follows:

December 31, 2024

June 30, 2025

$ in thousands

CarryingAmount

EstimatedFair Value

Quoted Prices in Active Markets for Identical Assets (Level 1)

Significant Other Observable Inputs (Level 2)

Significant Unobservable Inputs (Level 3)

Financial Assets:

Cash and cash equivalents

4943,~~959~~835

—

Securities available-for-sale

4443,~~121~~836

—

4443,~~121~~836

—

Securities held-to-maturity

1,~~807~~704

1,~~735~~662

—

1,~~735~~662

—

Loans receivable

~~604~~598,~~820~~937

~~584~~593,~~837~~421

—

~~584~~593,~~837~~421

Accrued interest receivable

23,~~466~~251

—

23,~~466~~251

—

Mortgage servicing rights

~~134~~—

—

~~134~~—

Financial Liabilities:

Deposits

~~636~~645,~~939~~531

~~635~~643,~~319~~799

~~399~~401,~~788~~744

~~235~~242,~~531~~055

—

Advances from FHLB-NY

192,~~841~~912

192,~~864~~922

—

192,~~864~~922

—

Other borrowed money

18,403

17,~~815~~969

—

17,~~815~~969

—

Accrued interest payable

~~986~~991

—

~~986~~991

—

March 31, 2024

March 31, 2025

$ in thousands

CarryingAmount

EstimatedFair Value

Quoted Prices in Active Markets for Identical Assets (Level 1)

Significant Other Observable Inputs (Level 2)

Significant Unobservable Inputs (Level 3)

Financial Assets:

Cash and cash equivalents

5950,~~025~~315

—

Securities available-for-sale

4844,~~030~~522

—

4844,~~030~~522

—

Securities held-to-maturity

21,~~008~~750

1,~~905~~698

—

1,~~905~~698

—

Loans receivable

~~617~~607,~~007~~347

593,~~484~~030

—

593,~~484~~030

Accrued interest receivable

32,~~662~~980

—

32,~~662~~980

—

Mortgage servicing rights

~~140~~130

—

~~140~~130

Financial Liabilities:

Deposits

~~646~~661,~~999~~837

~~642~~658,~~831~~537

~~420~~406,~~663~~948

~~222~~251,~~168~~589

—

Advances from FHLB-NY

281,~~027~~814

271,~~920~~817

—

271,~~920~~817

—

Other borrowed money

18,403

17,~~623~~900

—

17,~~623~~900

—

Accrued interest payable

1,~~128~~049

—

1,~~128~~049

—

NOTE 11. NON-INTEREST REVENUE AND EXPENSE

ASC Topic 606, Revenue from Contracts with Customer ("Topic 606") does not apply to revenue associated with financial instruments, including revenue from loans and securities. In addition, certain non-interest income streams such as gains on sales of residential mortgage and SBA loans, income associated with servicing assets, and loan fees, including residential mortgage originations to be sold and prepayment and late fees charged across all loan categories are not in scope of the guidance. Topic 606 is applicable to non-interest revenue streams, such as depository fees, service charges and commission revenues. The Company generally satisfies its performance obligations on contracts with customers as services are rendered, and the transaction prices are typically fixed and charged either on a periodic basis or based on activity. Because performance obligations are satisfied as services are rendered and the transaction prices are fixed, there is little judgment involved in applying Topic 606 that significantly affects the determination of the amount and timing of revenue from contracts with customers. Non-interest revenue streams in-scope of Topic 606 are discussed below.

2624

Depository fees and charges

Depository fees and charges primarily relate to service fees on deposit accounts and fees earned from debit cards and check cashing transactions. Service fees on deposit accounts consist of ATM fees, NSF fees, account maintenance charges and other deposit related fees. The fees are recognized as revenue over the period the related service is provided, or as incurred for transaction-based fees in accordance with the fee schedules for the Bank's deposit products and services. The payment for these services are received at the time the services are provided or when customer transactions take place.

Loan fees and service charges

Loan fees and service charges primarily relate to program management fees and fees earned in accordance with the Bank's standard lending fees (such as inspection and late charges). The payments are received when such services are provided and these standard lending fees are recognized as revenue over the period the related service is provided.

Other non-interest income

Other non-interest income includes ~~correspondent banking fees,~~ revenue from the Bank's participation in JPMorgan Chase's Empowering Change program, and income associated with an advertising services agreement covering marketing and use of the Bank's office space with a third party. The payments are typically received monthly and the revenue is recognized over the period the related service is provided and collected in accordance with the agreements.

Interchange income

The Company earns interchange fees from debit card holder transactions conducted through various payment networks. Interchange fees from cardholder transactions are recognized daily, concurrently with the transaction processing services provided by an outsource technology solution and are presented on a net basis.

The following table presents non-interest income, segregated by revenue streams in-scope and out-of-scope of Topic 606, for the three ~~and nine~~ months ended ~~December~~June 3130, ~~2024~~2025 and ~~2023~~2024:

Three Months Ended December 31,

Nine Months Ended December 31,

Three Months Ended June 30,

$ in thousands

~~2024~~2025

~~2023~~2024

~~2024~~

~~2023~~

Non-interest income

In-scope of Topic 606

Depository fees and charges

~~644~~673

~~543~~538

~~1,726~~

~~1,678~~

Loan fees and service charges

~~203~~124

97(44)

~~220~~

~~270~~

Other non-interest income

~~106~~167

9184

~~295~~

~~236~~

Non-interest income (in-scope of Topic 606)

~~953~~964

~~731~~578

~~2,241~~

~~2,184~~

Non-interest income (out-of-scope of Topic 606)

34304

~~1,804~~127

~~2,569~~

Total non-interest income

~~987~~1,268

~~2,535~~705

~~2,276~~

~~4,753~~

2725

The following table sets forth other non-interest income and expense totals exceeding 1% of the aggregate of total interest income and non-interest income for any of the periods presented:

	Three Months Ended December 31,				Nine Months Ended December 31,
	Three Months Ended June 30,
$ in thousands	~~2024~~2025		~~2023~~2024		~~2024~~		~~2023~~
Other non-interest income:
Empowering Change program fees	$	98	$	84	$	270	$	211
MSR valuation	$	(130)	$	(9)
BOLI income	59		338		138		420
Empowering Change program fees	158		75
Other	~~(32)~~409		6850		~~(10)~~		84
Total other non-interest income	$	~~125~~437	$	~~490~~116	$	~~398~~	$	~~715~~
Other non-interest expense:
Advertising	$	219	$	68	$	373	$	302
Legal expense	77		$	150
Legal expense	321		$	88	645		428
Insurance and surety	229		291
Insurance and surety	246		320		821		938
Audit expense	160		167
Audit expense	167		165		500		496
Data lines / internet	107		97
Data lines / internet	100		100		314		310
Retail expenses	285		295
Security services	154		15		335		41
Operating charge-offs and other losses	169		25
Loan expense	155		39		159		73
Director's fees	95		105
Retail expenses	262		285		719		855
Other	535		772
Operating charge-offs and other losses	21		154		67		293
Total other non-interest expense	$	1,657	$	1,902
Investor relations	179		—		179		39
Director's fees	105		135		315		346
Other	619		634		1,730		1,816
Total other non-interest expense	$	2,548	$	2,003	$	6,157	$	5,937

NOTE 12. LEASES

The Company applies ASC Topic 842, Leases ("ASC 842") to its leases. The Company has operating leases related to its administrative offices and seven retail branches. Two of the operating leases are for branch locations where the Company had entered into a sale and leaseback transaction. The gain had been calculated utilizing the profit on sale in excess of the present value of the minimum lease payments, and the profit on the sale was deferred from gain recognition to be amortized into income over the terms of the leases in accordance with ASC Topic 840, Leases ("ASC 840"). ASC 842 does not require previous sale and leaseback transactions accounted for under ASC 840 to be reassessed. As of ~~December~~June 3130, ~~2024~~2025, operating right-of-use ("ROU") lease assets and related lease liabilities totaled $87.96 million and $98.52 million, respectively. As of March 31, ~~2024~~2025, operating ROU lease assets and related lease liabilities totaled $9.8.2 million and $108.69 million, respectively.

As ~~the~~of ~~implicit~~June 30, ~~rates~~2025, of the Company's ~~existing~~had ~~leases~~$14 ~~are~~thousand ~~not~~and ~~readily~~$15 ~~determinable~~thousand of ROU asset and lease liability, ~~the~~respectively, ~~incremental~~for ~~borrowing~~finance ~~rate~~leases ~~used~~related to equipment. The ROU asset is included in ~~determining~~Premises and Equipment, net, and the lease liability ~~obligation~~is ~~for~~included ~~each~~in ~~individual~~Advances ~~lease~~from ~~was~~ the FHLB-NY ~~fixed-rate~~and ~~advance~~Other ~~rates~~Borrowed ~~based~~Money on the ~~remaining~~statements ~~lease terms as~~ of ~~April~~financial ~~1, 2019~~condition.

AsThe offollowing ~~December 31,~~tables ~~2024,~~present information about the Company's ~~had $36 thousand and $37 thousand of ROU asset and lease liability, respectively, for finance~~ leases ~~related to equipment. The ROU asset is included in Premises~~ and ~~Equipment, net, and~~ the related lease ~~liability~~costs isas ~~included~~of ~~in Advances from the FHLB-NY~~ and ~~Other~~for ~~Borrowed Money on~~ the ~~statements~~three ofmonths ~~financial~~ended ~~condition.~~June 30, 2025:

The following tables present information about the Company's leases and the related lease costs as of and for the three and nine months ended December 31, 2024:


	June 30, 2025		March 31, 2025
Weighted-average remaining lease term
Operating leases	3.3 years		3.5 years
Finance lease	0.3 years		1.3 years

Weighted-average discount rate
Operating leases	3.35	%	3.34	%
Finance lease	5.00	%	5.00	%

	December 31, 2024			March 31, 2024
	Three Months Ended June 30,
Weighted-average remaining lease term
$ in thousands	2025			2024
Operating leases	3.8 years			4.3 years
Operating lease expense	$	709		$	706
Finance lease	1.6 years			2.6 years
Finance lease cost
Weighted-average discount rate
Amortization of right-of-use asset	10			14
Operating leases	3.34		%	3.05		%
Interest on lease liability	—			1
Finance lease	4.93		%	4.32		%
Cash paid for amounts included in the measurement of lease liabilities
Operating leases	741			734
Finance lease	13			18

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	Three Months Ended December 31,				Nine Months EndedDecember 31,
$ in thousands	2024		2023		2024		2023
Operating lease expense	$	711	$	692	$	2,089	$	2,076
Finance lease cost
Amortization of right-of-use asset	11		16		36		81
Interest on lease liability	1		1		2		5
Cash paid for amounts included in the measurement of lease liabilities
Operating leases	736		711		2,206		2,133
Finance lease	9		12		36		74

Maturities of lease liabilities at June 30, 2025 are as follows:

Maturities of lease liabilities at December 31, 2024 are as follows:


$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2025	$	2,144	$	15
2026	2,583		—
2027	2,411		—
2028	1,326		—
2029	134		—
Thereafter	80		—
Total lease payments	8,678		15
Interest	(486)		—
Lease liability	$	8,192	$	15

$ in thousands	Operating Leases		Finance Leases
Year ending March 31,
2025	$	747	$	12
2026	2,915		26
2027	2,583		—
2028	2,411		—
2029	1,326		—
Thereafter	214		—
Total lease payments	10,196		38
Interest	(657)		(1)
Lease liability	$	9,539	$	37

Item 2.Management’s Discussion and Analysis of Financial Condition and Results of Operations

Forward-Looking Statements

This Quarterly Report on Form 10-Q contains certain “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 which may be identified by the use of such words as “may,” “believe,” “expect,” “anticipate,” “should,” “plan,” “estimate,” “predict,” “continue,” and “potential” or the negative of these terms or other comparable terminology. Examples of forward-looking statements include, but are not limited to, estimates with respect to the Company's financial condition, results of operations and business that are subject to various factors that could cause actual results to differ materially from these estimates. These factors include but are not limited to the following:

•changes in interest rates, which may reduce net interest margin and net interest income;

•monetary and fiscal policies of the U.S. government, including policies of the U.S. Treasury and the Board of Governors of the Federal Reserve System;

•the ability of the Company to obtain approval from the Federal Reserve Bank of Philadelphia (the "Federal Reserve Bank") to distribute interest payments owed to the holders of the Company's subordinated debt securities;

•the Company's ability to manage its profitability and costs;

•turnover in senior management or the Company's ability to attract and retain qualified personnel;

•the ~~limitations~~ability ~~imposed~~of onCarver ~~the~~Federal ~~Company~~Savings ~~which~~Bank ~~require,~~(the ~~among~~"Bank") ~~other~~to ~~things,~~comply ~~written~~with ~~approval~~the offormal ~~the~~agreement ~~Federal~~dated ~~Reserve~~May ~~Bank~~14, ~~prior~~2025, tobetween the ~~declaration~~Bank orand ~~payment~~the Office of ~~dividends,~~the ~~any~~Comptroller ~~increase~~of inthe ~~debt~~Currency by("OCC") (the ~~Company~~"Formal Agreement"), orand the ~~redemption~~effect of ~~Company~~the ~~common~~requirements ~~stock,~~of ~~and~~ the ~~effect~~Formal Agreement on ~~operations~~the ~~resulting from such limitations~~Bank;

•the ~~impact~~limitations ofimposed ~~bank~~on ~~closings~~the ~~and~~Company which require, among other things, written approval of the ~~risks~~Federal ~~related~~Reserve Bank prior to ~~disruption~~the declaration or payment of dividends, any increase in debt by the ~~banking~~Company, ~~industry~~or the redemption of Company common stock, or the approval of the OCC to retain new executive officers or to nominate new members of the Board of Directors and ~~financial~~the ~~markets~~effect on operations resulting from such limitations;

•the risks related to disruption in the banking industry and financial markets;

•the market price and trading volume of our shares of common stock has been and may continue to be volatile, and purchasers of our securities could incur substantial losses;

•changes in the level of trends of delinquencies and write-offs and in our allowance and provision for credit losses;

•the results of examinations by our regulators, including the possibility that our regulators may, among other things, require us to increase our ~~reserve~~allowance for credit losses, write down assets, change our regulatory capital position, limit our ability to borrow funds or maintain or increase deposits;

•national and/or local changes in economic conditions, which could occur from numerous causes, including political changes, domestic and international policy changes, unrest, war and weather, inflation or deflation conditions in the real estate, securities markets or the banking industry, which could affect liquidity in the capital markets, the volume of loan originations, deposit flows, real estate values, the levels of non-interest income and the amount of credit losses;

•adverse changes in the financial industry and the securities, credit, national and local real estate markets (including real estate values);

•changes in our existing loan portfolio composition (including reduction in commercial real estate loan concentration) and credit quality or changes in credit loss requirements;

•legislative or regulatory changes that may adversely affect the Company’s business, including but not limited to new capital regulations, which could result in, among other things, increased deposit insurance premiums and assessments, capital requirements, regulatory fees and compliance costs, and the resources we have available to address such changes;

•changes in the level of government support of housing finance;

•changes to state rent control laws, which may impact the credit quality of multifamily housing loans;

•our ability to control costs and expenses;

•the imposition of tariffs or other domestic or international governmental policies and retaliatory responses;

•the impairment of our investment securities;

•risks related to a high concentration of loans to borrowers secured by property located in our market area;

•increases in competitive pressure among financial institutions or non-financial institutions;/

•unexpected outflows of uninsured deposits could require us to sell investment securities at a loss;

•changes in consumer spending, borrowing and savings habits;

•technological changes that may be more difficult to implement or more costly than anticipated;

•changes in deposit flows, loan demand, real estate values, borrowing facilities, capital markets and investment opportunities, which may adversely affect our business;

•changes in accounting standards, policies and practices, as may be adopted or established by the regulatory agencies or the Financial Accounting Standards Board could negatively impact the Company's financial results;

•litigation or regulatory actions, whether currently existing or commencing in the future, which may restrict our operations or strategic business plan;

•the impact of actions taken by activist shareholders and the costs and expenses associated with such actions;

•the ability to originate and purchase loans with attractive terms and acceptable credit quality; and

•the ability to attract and retain key members of management, and to address staffing needs in response to product demand or to implement business initiatives.

Because forward-looking statements are subject to numerous assumptions, risks and uncertainties, actual results or future events could differ possibly materially from those that the Company anticipated in its forward-looking statements. The forward-looking statements contained in this Quarterly Report on Form 10-Q are made as of the date of this Quarterly Report on Form 10-Q, and the Company assumes no obligation to, and expressly disclaims any obligation to, update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as legally required.

3028

forward-looking statements contained in this Quarterly Report on Form 10-Q are made as of the date of this Quarterly Report on Form 10-Q, and the Company assumes no obligation to, and expressly disclaims any obligation to, update these forward-looking statements to reflect actual results, changes in assumptions or changes in other factors affecting such forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements, except as legally required.

Overview

Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered savings bank. The Company is headquartered in New York, New York. The Company conducts business as a unitary savings and loan holding company, and the principal business of the Company consists of the operation of Carver Federal. Carver Federal was founded in 1948 to serve African-American communities whose residents, businesses and institutions had limited access to mainstream financial services. The Bank remains headquartered in Harlem, and predominantly all of its seven branches are located in low- to moderate-income neighborhoods. Many of these historically underserved communities have experienced unprecedented growth and diversification of incomes, ethnicity and economic opportunity, after decades of public and private investment.

Carver Federal is among the largest African-American operated banks in the United States. The Bank remains dedicated to expanding wealth-enhancing opportunities in the communities it serves by increasing access to capital and other financial services for consumers, businesses and non-profit organizations, including faith-based institutions. A measure of its progress in achieving this goal includes the Bank's ~~sixth~~seventh consecutive "Outstanding" rating, issued by the OCC following its most recent Community Reinvestment Act (“CRA”) examination in ~~March~~June ~~2022~~2025. The OCC found that ~~90%~~the majority of Carver Federal's loans were made within our assessment area, and the Bank has demonstrated excellent responsiveness to its assessment area's needs through its community development lending, investing and service activities. The Bank had approximately $~~727~~713.56 million in assets and ~~111~~105 employees as of ~~December~~June 3130, ~~2024~~2025.

Carver Federal engages in a wide range of consumer and commercial banking services. The Bank provides deposit products, including demand, savings and time deposits for consumers, businesses, and governmental and quasi-governmental agencies in its local market area within New York City. In addition to deposit products, Carver Federal offers a number of other consumer and commercial banking products and services, including debit cards, online account opening and banking, online bill pay and telephone banking. Carver Federal also offers a suite of products and services for unbanked and underbanked consumers, branded as Carver Community Cash. This includes check cashing, wire transfers, bill payment, reloadable prepaid cards and money orders.

Carver Federal offers loan products covering a variety of asset classes, including commercial and multifamily mortgages, and business loans. The Bank finances mortgage and loan products through deposits or borrowings. Funds not used to originate mortgages and loans are invested primarily in U.S. government agency securities and mortgage-backed securities.

The Bank's primary market area for deposits consists of the areas served by its seven branches in the Brooklyn, Manhattan and Queens boroughs of New York City. The neighborhoods in which the Bank's branches are located have historically been low- to moderate-income areas. The Bank's primary lending market includes Kings, New York, Bronx and Queens Counties in New York City, and lower Westchester County, New York. Although the Bank's branches are primarily located in areas that were historically underserved by other financial institutions, the Bank faces significant competition for deposits and mortgage lending in its market areas. Management believes that this competition has become more intense as a result of increased examination emphasis by federal banking regulators on financial institutions' fulfillment of their responsibilities under the CRA and more recently due to the decline in demand for loans. Carver Federal's market area has a high density of financial institutions, many of which have greater financial resources, name recognition and market presence, and all of which are competitors to varying degrees. The Bank's competition for loans comes principally from commercial banks, savings institutions and mortgage banking companies. The Bank's most direct competition for deposits comes from commercial banks, savings institutions and credit unions. Competition for deposits also comes from money market mutual funds, corporate and government securities funds, and financial intermediaries such as brokerage firms and insurance companies. Many of the Bank's competitors have substantially greater resources and offer a wider array of financial services and products. This, combined with competitors' larger presence in the New York market, add to the challenges the Bank faces in expanding its current market share and growing its near-term profitability.

Carver Federal's more than 75-year history in its market area, its community involvement and relationships, targeted products and services and personal service consistent with community banking, help the Bank compete with competitors that have entered its market.

31The Company's subsidiary, Carver Statutory Trust I (the "Trust"), is not consolidated with Carver Bancorp Inc. for financial reporting purposes in accordance with the FASB's ASC Topic 810 regarding the consolidation of variable interest entities. The Trust was formed in 2003 for the purpose of issuing $13 million aggregate liquidation amount of floating rate Capital Securities due September 17, 2033 (“Capital Securities”) and $0.4 million of common securities (which are the only voting securities of the Trust), which are 100% owned by Carver Bancorp Inc., and using the proceeds to acquire junior

The Company's subsidiary, Carver Statutory Trust I, is not consolidated with Carver Bancorp Inc. for financial reporting purposes in accordance with the FASB's ASC Topic 810 regarding the consolidation of variable interest entities. Carver Statutory Trust I was formed in 2003 for the purpose of issuing $13 million aggregate liquidation amount of floating rate Capital Securities due September 17, 2033 (“Capital Securities”) and $0.4 million of common securities (which are the only voting securities of Carver Statutory Trust I), which are 100% owned by Carver Bancorp Inc., and using the proceeds to acquire junior subordinated debentures issued by Carver Bancorp, Inc. Carver Bancorp, Inc. has fully and unconditionally guaranteed the Capital Securities along with all obligations of Carver Statutory Trust I under the trust agreement relating to the Capital Securities. The Company does not consolidate the accounts and related activity of Carver Statutory Trust I because it is not the primary beneficiary of the entity. At December 31, 2024, the Company's maximum exposure to the Trust is $13.4 million, which is the Company's liability to the Trust and includes the Company's investment in the Trust.29

subordinated debentures issued by Carver Bancorp, Inc. Carver Bancorp, Inc. has fully and unconditionally guar

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