- The Office of the Comptroller of the Currency (OCC) has mandated strategic changes at Carver Bancorp (CARV, Financial).
- Carver must enhance risk management, earnings performance, and implement new growth strategies.
- A three-year strategic plan is required by September 25, 2025.
The Office of the Comptroller of the Currency (OCC) has issued a directive to Carver Bancorp (CARV), a Nasdaq-listed bank, to undertake significant strategic changes aimed at improving its overall performance. This order, dated May 16, 2025, encompasses enhancements in risk management, earnings, and capital management, alongside the development of new product lines and internet strategies. Carver is required to submit a comprehensive three-year strategic plan by September 25, 2025.
This action by the OCC follows a successful proxy contest by Dream Chasers in December 2024, where they garnered support from over 70% of retail voters. Dream Chasers' CEO, Greg Lewis, has expressed approval of the OCC's intervention, viewing it as a confirmation of the concerns they have raised regarding Carver's long-standing poor performance. He emphasized the potential for significant growth and shareholder value creation, noting Carver's status as one of the largest African American banks in the country.
The OCC's directive includes a requirement for Carver’s Board to strengthen its oversight and compliance procedures, ensuring the bank provides regular progress reports on the execution of these new plans. These changes align closely with the long-standing strategic goals advocated by Dream Chasers, who will continue to monitor the bank's implementation of shareholder-focused actions.
