1. CARV transitions to OTC Markets for improved operational flexibility. 2. New CEO emphasizes growth and sustainable profitability. 3. Board refresh planned, enhancing leadership perspectives and strategies. 4. Director compensation reduced to boost cost efficiency. 5. Transparent financial disclosures will continue for stakeholder trust.
FAQ
Why Bullish?
Transitioning to OTC suggests increased flexibility, akin to gains seen in similar banks. Historical examples show OTC-listed banks can see improved investor confidence and growth.
How important is it?
The news illustrates a strategic pivot for CARV, highlighting a renewed focus on growth and efficiency, likely encouraging investor interest.
Why Long Term?
The strategic changes and board refresh are likely to bear fruit over time, enhancing growth and stability much like other bank transformations over several years.
Carver Bancorp, Inc. Initiates Trading on OTC Markets Under Ticker 'CARV'
Carver Bancorp, Inc. (OTCQB: CARV), the holding company for Carver Federal Savings Bank, has officially begun trading on the OTC Markets as of today. This strategic move is aimed at enhancing operational efficiency, accelerating growth, and improving its capital position, positioning Carver for long-term profitability.
Transition to OTC Markets: A Key Step for Carver
With its stock now trading under the ticker CARV, stockholders can continue to buy and sell shares and access price quotes and trading volumes through www.OTCmarkets.com and other public platforms. Donald Felix, President and CEO of Carver, stated, “Our transition to trading on OTC Markets is a critical step in our broader strategy to transform Carver into a modern urban community bank.”
Felix emphasized the benefits of this transition, noting it offers greater flexibility to compete effectively in a challenging market environment. He reiterated the commitment to deliver long-term value for stockholders while empowering local communities.
Strategic Initiatives to Drive Growth
Carver’s leadership has undertaken several initiatives to address current challenges, including:
- The appointment of Jason Sisack, former Assistant Deputy Comptroller at the Office of the Comptroller of the Currency (OCC), as a senior executive.
- A commitment to refresh 75% of the Board of Directors over the next three years to bring innovative perspectives and necessary skills.
- A 50% reduction in cash compensation for Directors, supplemented by expected savings from delisting with the SEC and Nasdaq.
Commitment to Financial Transparency
As a further demonstration of its commitment to stockholder transparency, Carver Bancorp plans to make regular financial disclosures. These include:
- An annual report featuring audited consolidated financial statements available at www.carverbank.com.
- Quarterly financial updates accessible at www.carverbank.com.
- Continuation of quarterly Call Reports filed with the Federal Financial Institutions Examination Council (FFIEC).
About Carver Bancorp, Inc.
Founded in 1948, Carver Bancorp, Inc. operates as the holding company for Carver Federal Savings Bank, based in Harlem, NY. It serves historically underserved communities, providing essential financial services to residents and businesses. Notably, the U.S. Treasury Department recognizes Carver as a Community Development Financial Institution (CDFI) due to its focus on community-oriented banking practices.
As one of the largest African- and Caribbean-American-managed banks in the U.S., Carver offers online banking services across several states from Massachusetts to Virginia, including Washington, DC. For more details, visit www.carverbank.com.
Forward-Looking Statements
This release contains forward-looking statements regarding Carver's expectations or beliefs about future performance. Such statements are subject to risks and uncertainties that could cause actual results to differ materially from those anticipated. Factors that may affect results include changes in economic conditions, interest rate volatility, and regulatory changes.
Contact Information
For investors seeking further information, Carver Bancorp encourages stockholders to read all relevant documents on its website and the SEC’s site at www.sec.gov.