Carver Bancorp, the holding company for Carver Federal Savings Bank, has completed the sale of $18.98 million in preferred stock to the U.S. Department of the Treasury in connection with the company’s participation in the capital purchase programme of the Emergency Economic Stabilisation Act of 2008.
The capital purchase programme (CPP), part of the Treasury’s troubled asset relief programme, is designed to expand capital for financial firms and Carver made its application in order to expand credit availability to qualified consumers and businesses during this challenging economic period.
Carver said that it is exempt from the CPP’s requirement to issue a warrant to the U.S. Treasury to purchase shares of common stock, as the bank is a certified community development financial institution, conducting most of its depository and lending activities in disadvantaged communities. Therefore, the investment will not dilute current stockholders.
Carver has issued 18,980 shares of fixed rate cumulative perpetual preferred stock, series A, with a liquidation preference of $1,000 per share.
Deborah Wright, chairman and CEO of Carver Bancorp, said: The Treasury Department’s investment recognises Carver’s established record as a strong source of capital to our community and is designed to allow us to expand those activities by significantly enhancing Carver’s already well-capitalised balance sheet.
