Carver Bancorp Secures Debt-to-Equity Swap with EJF Capital

The deal follows a prior transaction in which EJF Capital canceled more than $1 million in interest on Trust Preferred Securities. By converting these obligations into equity, Carver aims to reduce its debt overhang and gain greater financial flexibility as it pursues a broader transformation strategy.

Lewis P. Jones III, Chairman of the Board, noted that the firm has invited EJF to appoint a Board observer to provide additional oversight during this transition. Donald Felix, CEO of Carver, described the agreement as a validation of the company's long-term growth plan. Jason Ruggiero, Co-Chief Investment Officer at EJF, added that a leaner balance sheet is essential for the bank to successfully execute its strategy. Performance Trust Capital Partners, LLC acted as the financial advisor for the transaction.