NEW YORK, Nov. 3, 2023 /PRNewswire/ -- Carver Bancorp, Inc. (Nasdaq: CARV) ("Carver"), the holding company for Carver Federal Savings Bank (the "Bank") today released a letter to shareholders from its Interim CEO Craig C. MacKay that provides an update on the Bank's strategic progress and impact on the communities it serves.
Below is a copy of the letter:
November 1, 2023
Dear Carver Shareholders:
In the four short weeks since assuming the role of Interim President & CEO of Carver Bancorp, Inc. and our wholly-owned subsidiary, Carver Federal Savings Bank ("Carver" or the "Bank"), I have been inspired by the passion of our people, the unwavering support of our shareholders, and our impact on the communities that we serve.
In January 2023, the Bank emerged from a formal agreement with its primary regulator, concluding a period of enhanced oversight, foundation-building, capital-raising, technology upgrades, and portfolio rationalization. Carver is now a better capitalized and more capable bank with solid liquidity and Tier 1 Capital (12.4%), Leverage (10.1%) and Total Risk Based Capital (13.4%) ratios in excess of "well capitalized" levels.
The Bank continues to grow in scale, market reach and in the diversification of its suite of retail and commercial offerings, while remaining committed to our mission to address the wealth gap by "…providing local residents with a place to save, grow businesses and build wealth, block by block, generation to generation." With over $720 million in assets as of June 30, 2023, the Bank has grown organically by 28% since 2019, which was achieved through increased productivity and the use of advanced technology (assets per employee up 33%).
This year Carver is celebrating 75 years of providing urban communities and Minority and Women-Owned Business Enterprises ("MWBEs") with access to capital and competitively priced banking solutions. We lead the way in community-driven finance across the Greater New York City region. From micro-loans to large commercial facilities, to our performance in deploying $50 million of Payroll Protection Program loans (preserving over 5,000 jobs), Carver is recognized as a leading Community Development Financial Institution ("CDFI") in our market. The Bank has received "Outstanding" Community Reinvestment Act ("CRA") ratings since 2004, and in our latest evaluation, the Office of the Comptroller of the Currency determined that 90% of Carver's loans were made within our assessment area.
Carver has recently broadened its commercial presence, participating in the financing of national credits and projects such as Krispy Kreme Donuts and the new Atlanta Hawks Training Facility, which provide additional loan portfolio diversification. By leveraging our fintech partnerships, the Bank has:
Carver's management team and Board of Directors are also shareholders. While Carver's stock may experience sector- driven volatility or speculation, we firmly believe that our prospects, transparency, and ability to deliver against objectives will ultimately be reflected in Carver's valuation. We are executing upon a strategy to (i) fuel greater organic growth, (ii) deepen our collaboration with our strategic and fintech partners, (iii) leverage our new technology to achieve greater scale and operating efficiencies, (iv) continue supporting a culture of disciplined risk management, and (v) position the Bank to grow into sustainable core profitability.
I am encouraged by the following results:
Carver's path to sustainable core profitability hinges on well-learned lessons in portfolio diversification, capital adequacy, and risk and liquidity management, which will enable:
On behalf of our management team and Board of Directors, thank you for holding us accountable on this journey to create enduring value for our shareholders, and for enabling Carver to have "a significant or major effect" on the communities that we serve…impact.
Sincerely,
Craig C. MacKayInterim President & CEOCarver Bancorp, Inc.
About Carver Bancorp, Inc.Carver Bancorp, Inc. (NASDAQ: CARV) is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank. Headquartered in Harlem, NY, Carver was founded in 1948 to serve African-American and Caribbean-American communities in New York whose residents, businesses, and institutions had limited access to mainstream financial services. The U.S. Treasury Department has designated Carver as a Community Development Financial Institution ("CDFI") because of its community-focused banking services and dedication to its local community's economic viability and revitalization. Carver is one of the largest African- and Caribbean-American managed banks in the United States. The Bank recently expanded its online presence to include consumer checking and savings accounts across nine states, from Massachusetts to Virginia, and Washington, DC. For further information, please visit the Company's website at www.carverbank.com. Be sure to connect with Carver on Facebook, LinkedIn, and Twitter.
Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors, risks, and uncertainties. More information about these factors, risks, and uncertainties is contained in our filings with the Securities and Exchange Commission.
Media:Michael Herley for Carver203.308.1409mediainquiries@carverbank.com
Investors:ir@carverbank.com
SOURCE Carver Bancorp, Inc.
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SOURCE Carver Bancorp, Inc.