Carver Bancorp Reaches Agreement with Trust Preferred Securities Holders

Deal Cancels Over $1 Million in Interest Obligations in Exchange for Common Stock Shares

Mar. 16, 2026 at 6:06pm

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Carver Bancorp, Inc., the holding company for Carver Federal Savings Bank, has entered into an agreement with institutional holders of its Trust Preferred Securities (TruPS) to forgive over $1 million in interest obligations in exchange for 524,826 shares of the company's common stock. The move is part of Carver's strategy to strengthen its capital position, reduce debt, and position the bank for future growth and profitability.

Why it matters

This exchange represents a significant step in Carver's turnaround efforts, as it immediately improves the bank's capital position and flexibility to pursue growth opportunities. The deal also signals confidence from the TruPS holders in Carver's leadership and direction, which could help the bank compete more effectively in the market.

The details

Under the agreement, the TruPS holders will forgive over $1 million in interest obligations owed by Carver in exchange for 524,826 shares of the company's common stock. This will help Carver reduce its debt load and strengthen its capital position, which is a key part of its strategy to position the bank for long-term success.

  • The exchange agreement was announced on March 16, 2026.

The players

Carver Bancorp, Inc.

The holding company for Carver Federal Savings Bank, a federally chartered stock savings bank headquartered in Harlem, New York. Carver was founded in 1948 to serve historically underserved communities in New York.

Carver Federal Savings Bank

A federally chartered stock savings bank and subsidiary of Carver Bancorp, Inc. The bank has been designated as a Community Development Financial Institution (CDFI) by the U.S. Treasury Department.

Donald Felix

President and CEO of Carver Bancorp, Inc.

TruPS Holders

Institutional holders of Carver Bancorp's Trust Preferred Securities who have agreed to the exchange.

Performance Trust Capital Partners, LLC

The financial advisor to Carver Bancorp, Inc. with respect to the exchange agreement.

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What they’re saying

“We have been acting expeditiously and with purpose to solidify Carver's foundation and position the Bank for success. This Exchange is a key part of our efforts to strengthen the Bank's capital position, which is at the core of our turnaround strategy. Removing such a significant debt overhang immediately increases our flexibility to take steps toward growth and profitability.”

— Donald Felix, President and CEO of Carver Bancorp, Inc. (PR Newswire)

What’s next

The exchange agreement remains subject to customary approvals before it can be finalized.

The takeaway

Carver Bancorp's agreement with its TruPS holders represents a significant milestone in the bank's efforts to improve its capital position, reduce debt, and position itself for future growth. This deal signals confidence in the bank's leadership and strategy, which could help Carver better serve its community and compete in the market.