NEW
YORK, Jan. 31, 2024 /PRNewswire/ --
Carver Bancorp, Inc. (Nasdaq: CARV) ("Carver" or the
"Company"), the holding company for Carver Federal Savings Bank
(the "Bank"), a certified Community Development Financial
Institution ("CDFI") and designated Minority Depository Institution
("MDI"), announced today that its Board of Directors (the "Board")
reviewed and thoroughly rejected an offer by Dream Chasers Capital
Group ("Dream Chasers") to acquire 35% interest in Carver's common
equity.
The Board determined that the adverse publicly disclosed
regulatory history of Dream Chasers' leadership posed unacceptable
reputational risks to Carver's standing and mission credibility.
The Board noted the potential impact of such reputational risk on
Carver's relationship with its shareholders, third-party
stakeholders, regulators, and customers. Furthermore, a
comprehensive review of the Dream Chasers proposal found it to be
wholly deficient with respect to structural details, implied
valuation, dilution, and the basic disclosure of financial and
managerial resources.
In particular, the Board noted the following contributing
factors in its decision to reject Dream Chasers' offer:
- The significant reputational risk resulting from the adverse
regulatory history of Dream Chasers' leadership;
- The anticipated inability of Dream Chasers to obtain regulatory
approval for the purchase of a material interest in Carver;
- The anticipated inability of Dream Chasers to qualify as a bank
holding company;
- The lack of direct experience of Dream Chasers' leadership with
a federally regulated and insured depository institution;
- The unsubstantiated financial resources of Dream Chasers;
and
- The unrealistically low offer price based on Carver's intrinsic
value.
As a result of its evaluation, the Board definitively determined
that an association with Dream Chasers of any type is not in the
best interest of Carver, its shareholders, and its community
stakeholders.
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 Carver
203.308.1409
mediainquiries@carverbank.com
Investors:
ir@carverbank.com
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SOURCE Carver Bancorp, Inc.