Attached files
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8-K - FORM 8-K - CARVER BANCORP INC | c12238e8vk.htm |
EX-10.1 - EXHIBIT 10.1 - CARVER BANCORP INC | c12238exv10w1.htm |
EX-10.3 - EXHIBIT 10.3 - CARVER BANCORP INC | c12238exv10w3.htm |
EX-10.4 - EXHIBIT 10.4 - CARVER BANCORP INC | c12238exv10w4.htm |
EX-10.2 - EXHIBIT 10.2 - CARVER BANCORP INC | c12238exv10w2.htm |
Exhibit 99.1
Contact:
|
Ruth Pachman/Michael Herley | Mark Ricca | ||
Kekst and Company | Carver Bancorp, Inc. | |||
(212) 521-4891/4897 | (212) 360-8820 |
CARVER BANCORP, INC. AGREES TO IMPLEMENT ENHANCED CAPITAL AND
ASSET QUALITY MEASURES UNDER OTS ORDERS
ASSET QUALITY MEASURES UNDER OTS ORDERS
Suspends TARP and Trust Preferred Dividends
NEW YORK, February 10, 2011 Carver Bancorp, Inc. (the Company) (Nasdaq:CARV), the holding
company for Carver Federal Savings Bank (Carver or the Bank), today announced that the Company
and the Bank have consented to the Office of Thrift Supervision (OTS) issuing formal cease and
desist orders (the Orders) under which the Company and the Bank will implement enhanced capital
and asset quality measures to strengthen the Banks balance sheet and loan portfolio.
The Orders are an outgrowth of discussions we have been having with the OTS to address the need to
significantly raise our capital ratios in light of our current asset quality and earnings level,
said Deborah C. Wright, the Companys Chairman and CEO. While we continue to meet the regulatory
definition of a well capitalized bank, the Orders formalize the additional work we need to do and
establish the timeframe for doing so.
Ms. Wright added, Anyone following the news about our economy is fully aware of the challenging
conditions in communities across our nation, particularly in inner city markets, where unemployment
rates are higher than national averages. As a result, Carver has been grappling, as are many small
banks across the country, with higher delinquencies and downward valuations in real estate assets.
We are working with an independent advisor to bring in additional capital and are making progress.
We also continue to rebalance our loan portfolio and have aggressively reduced our level of real
estate loans. The successful implementation of our recapitalization and portfolio realignment
strategies is designed to better position us to continue to serve our communities with essential
products that build on the strength of our core capabilities and franchise.
Robert Holland, Lead Independent Director of the Board of Directors of the Company, said, The
Board is committed, along with the management team, to working closely with the Companys
regulators to implement all necessary changes required to protect the Bank and keep it safe and
sound for generations to come. We are fully aware of the unique role that minority banks have
played in providing capital to businesses and
institutions in Harlem, Bedford-Stuyvesant, Crown Heights, St. Albans and many New York City
communities. We also take seriously the legacy Carver has built over more than 60 years with the
tremendous support of our loyal customers.
The Company said that customer deposits continue to receive FDIC insurance coverage and all
branches continue to provide full customer service.
The Orders include the requirement that the Bank attain and maintain a Tier 1 (Core) Capital Ratio
of 9% and a Total Risk Based Capital Ratio of 13% by April 30, 2011. A more thorough description
of the Orders may be found in the Companys Form 8-K being filed with this release.
Under the Orders, the Bank and Company are also prohibited from paying any dividend without prior
OTS approval and, as such, the Company has suspended quarterly cash dividend payments on the
Companys fixed-rate cumulative perpetual preferred stock issued under the Troubled Asset Relief
Program (TARP) Community Development Capital Initiative to the United States Department of Treasury
and is deferring Carver Statutory Trust I trust preferred dividends.
About Carver Bancorp, Inc.
Carver Bancorp, Inc. is the holding company for Carver Federal Savings Bank, a federally chartered
stock savings bank, founded in 1948 to serve African-American communities whose residents,
businesses and institutions had limited access to mainstream financial services. Carver, the
largest African- and Caribbean-American run bank in the United States, operates nine full-service
branches in the New York City boroughs of Brooklyn, Manhattan and Queens. For further information,
please visit the Companys website at www.carverbank.com.
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