Carver Bancorp enters agreement with OCC

Carver Bancorp Inc. (NASDAQ:CARV), the parent company of Carver Federal Savings Bank, announced on Monday that it has entered into a material definitive agreement with the Office of the Comptroller of the Currency (OCC). The agreement comes as the bank faces challenging financial conditions, with a -12.75% revenue decline and negative returns on assets of -1.33% in the last twelve months. The agreement, dated May 14, 2025, outlines specific actions that the Bank must undertake within set timeframes.

Under the terms of the agreement, the Bank is required to establish a Compliance Committee within its Board of Directors to oversee adherence to the agreement’s terms. This committee has already been formed and is operational. Additionally, the Bank is tasked with preparing a three-year strategic plan for the OCC’s review. This plan is expected to focus on the Bank’s earnings performance, with objectives related to growth, capital, liquidity, and balance sheet composition. With an InvestingPro Financial Health Score of 1.13 (labeled as WEAK) and negative earnings of -$1.94 per share, the Bank must develop a program to improve and sustain its earnings.

The Bank’s board and management have expressed full commitment to meeting these requirements promptly, with a focus on achieving sustainable earnings through a robust strategic plan. These measures are part of the Bank’s ongoing operations under the leadership of its new Chief Executive Officer. The stock, which has declined over 21% year-to-date, currently trades below its Fair Value according to InvestingPro analysis, which offers additional insights through its comprehensive financial metrics and six key ProTips for investors.

The details of the agreement are available in the Exhibit 10.1 of the SEC filing made by Carver Bancorp Inc. This report is based on the information provided in the company’s SEC filing.

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