Dream Chasers Thanks OCC for Ordering New Charges at Nasdaq-Listed Carver Bancorp.

Rhea-AI Summary

The Office of the Comptroller of the Currency (OCC) has issued new directives to Carver Bancorp (NASDAQ:CARV), one of the largest African American banks in the US, following concerns raised by Dream Chasers Capital Group. The OCC order, issued on May 16, 2025, requires Carver to implement strategic changes focused on improving earnings, risk management, and profitability. The bank must submit a three-year strategic plan by September 25th, 2025, addressing key areas including internet strategy, market niche identification, and executive compensation. This development follows Dream Chasers' successful December 2024 proxy contest, where they secured over 70% of retail voter support. Greg Lewis, CEO of Dream Chasers, welcomed the OCC action as validation of their concerns regarding the bank's prolonged poor performance and losses.

Positive

• OCC validation supports shareholders' concerns and pushes for necessary changes
• Mandatory implementation of strategic improvements in earnings, risk management, and growth
• Required development of internet strategy and new product lines to generate revenue
• Enhanced board oversight and compliance procedures mandated by OCC

Negative

• Bank's historical poor performance and continued losses acknowledged by regulators
• Regulatory intervention required to force necessary changes
• Significant operational changes required under tight deadline (by September 2025)
• Past board and management oversight issues highlighted by OCC action

-Fund declares Major victory for shareholders of the bank

-New OCC agreement validates Dream Chasers' push for earnings, shareholder value creation and board accountability

NEW YORK CITY, NY / ACCESS Newswire / May 20, 2025 / In a major development, the Office of the Comptroller of the Currency (the "OCC") on 5/16/ 25 (Friday ) ordered Carver Bancorp (NASDAQ:CARV) ("Carver" or "the bank") to embark on new strategic planning that will deliver earnings and profitability to the bank.

The OCC ordered the bank to take immediate steps to improve risk management, earnings performance, growth, capital, new product line development, develop an effective internet strategy to generate customers and revenues, identify markets niches and
and observe executive compensation.

Additionally, the OCC required the Board to strengthen its oversight and compliance procedures, develop systems to monitor the bank's health and issue progress reports to the OCC after each quarter on the bank's execution of these new directives/plans

These changes mirror the concerns Dream Chasers has raised in recent years, culminating in the December, 2024 proxy contest where Dream Chasers and its nominees won the support of over 70% of the retail voters.

The OCC order requires Carver's Board to submit a three-year strategic plan to execute on the required changes by September 25th, 2025.

Greg Lewis, CEO of Dream Chasers said, "Shareholders should welcome the OCC action, but it should never have come to this. The Carver Board and management team have overseen losses and poor performance for far too long. This is vindication of everything we have pointed out in recent years and a net positive for shareholders if the Board makes substantive changes. As one of the largest African American banks in the country there is no limit to how high this bank could rise, which would deliver massive upside and shareholder value."

"We hope this new OCC action will bring about a new set of investor-focused actions at Carver. As the biggest shareholder in Carver, we will stay vigilant and make sure the Board and management execute on the opportunity in front of them. Now they have to put the interest of shareholders first."

The full OCC agreement with Carver can be see here: sec.gov/Archives/edgar/data/1016178/000094337425000211/ex10-1.htm.

For more inquiry
info@dreamchaserscapitalgroup.com

About Dream Chasers Capital Group LLC
www.dreamchaserscapitalgroup.com

Disclaimer: Nothing in this press release should be considered an offer to sell or a solicitation of an offer to buy shares of any securities.

SOURCE: Dream Chasers Capital Group

View the original press release on ACCESS Newswire

FAQ

What changes did the OCC order Carver Bancorp (CARV) to make in May 2025?

The OCC ordered Carver Bancorp to improve risk management, earnings performance, growth, capital, develop new product lines, implement an internet strategy, identify market niches, and enhance board oversight. A three-year strategic plan must be submitted by September 25th, 2025.

How did Dream Chasers perform in Carver Bancorp's December 2024 proxy contest?

Dream Chasers and its nominees won the support of over 70% of the retail voters in the December 2024 proxy contest.

What is the deadline for Carver Bancorp (CARV) to submit its strategic plan to the OCC?

Carver Bancorp must submit its three-year strategic plan to the OCC by September 25th, 2025.

What were the main issues identified by the OCC at Carver Bancorp?

The OCC identified issues with risk management, earnings performance, growth, capital management, product development, internet strategy, market positioning, executive compensation, and board oversight.

Who is Greg Lewis and what was his response to the OCC order for Carver Bancorp?

Greg Lewis is the CEO of Dream Chasers Capital Group. He welcomed the OCC action as validation of their concerns about Carver's poor performance, stating it should benefit shareholders if the Board makes substantive changes.