Regulation FD Presentation – Form 8-K

November 1, 2023

Dear Carver Shareholders:

In January 2023, the Bank emerged from a formal agreement with its primary regulator, concluding a period of enhanced oversight, foundation-building, capital-raising, technology upgrades, and portfolio rationalization. Carver is now a better capitalized and more capable bank with solid liquidity and Tier 1 Capital (12.4%), Leverage (10.1%) and Total Risk Based Capital (13.4%) ratios in excess of "well capitalized" levels.

The Bank continues to grow in scale, market reach and in the diversification of its suite of retail and commercial offerings, while remaining committed to our mission to address the wealth gap by "…providing local residents with a place to save, grow businesses and build wealth, block by block, generation to generation." With over $720 million in assets as of June 30, 2023, the Bank has grown organically by 28% since 2019, which was achieved through increased productivity and the use of advanced technology (assets per employee up 33%).

This year Carver is celebrating 75 years of providing urban communities and Minority and Women-Owned Business Enterprises ("MWBEs") with access to capital and competitively priced banking solutions. We lead the way in community-driven finance across the Greater New York City region. From micro-loans to large commercial facilities, to our performance in deploying $50 million of Payroll Protection Program loans (preserving over 5,000 jobs), Carver is recognized as a leading Community Development Financial Institution ("CDFI") in our market. The Bank has received "Outstanding" Community Reinvestment Act ("CRA") ratings since 2004, and in our latest evaluation, the Office of the Comptroller of the Currency determined that 90% of Carver's loans were made within our assessment area.

Carver has recently broadened its commercial presence, participating in the financing of national credits and projects such as Krispy Kreme Donuts and the new Atlanta Hawks Training Facility, which provide additional loan portfolio diversification. By leveraging our fintech partnerships, the Bank has:

Carver's management team and Board of Directors are also shareholders. While Carver's stock may experience sector-driven volatility or speculation, we firmly believe that our prospects, transparency, and ability to deliver against objectives will ultimately be reflected in Carver's valuation. We are executing upon a strategy to (i) fuel greater organic growth, (ii) deepen our collaboration with our strategic and fintech partners, (iii) leverage our new technology to achieve greater scale and operating efficiencies, (iv) continue supporting a culture of disciplined risk management, and (v) position the Bank to grow into sustainable core profitability.

I am encouraged by the following results:

Carver's path to sustainable core profitability hinges on well-learned lessons in portfolio diversification, capital adequacy, and risk and liquidity management, which will enable:

On behalf of our management team and Board of Directors, thank you for holding us accountable on this journey to create enduring value for our shareholders, and for enabling Carver to have "a significant or major effect" on the communities that we serve…impact.

Sincerely,

Craig C. MacKay

Interim President & CEO

Carver Bancorp, Inc.

ABOUT CARVER FEDERAL SAVINGS BANK

Carver was founded by a consortium of faith and business leaders in Harlem in 1948 to address the banking needs of the predominantly African American and Caribbean communities whose residents, businesses, and institutions had limited access to mainstream financial services and business capital. Carver remains headquartered in Harlem today, with a branch and 24/7 ATM network that serves the traditionally low-to-moderate-income neighborhoods of the five boroughs of New York City and surrounding areas. As the neighborhoods that we serve have evolved, so has Carver, which today proudly serves as a vehicle of wealth accumulation, finance, and commerce for communities with increasingly diverse income, ethnicity, and socio-economic profiles.

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Carver Bancorp Inc. published this content on 03 November 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 03 November 2023 13:01:08 UTC.