Magazine article Black Enterprise

Exchanging Places: Carver Bancorp Transfers Stock Listing to NASDAQ

Magazine article Black Enterprise

Exchanging Places: Carver Bancorp Transfers Stock Listing to NASDAQ

Article excerpt

[ILLUSTRATION OMITTED]

DEBORAH C. WRIGHT, CHAIRMAN AND CEO OF CARVER Bancorp Inc. (No. 1 on the BE BANKS list with $764.9 million in assets), recently rang The Nasdaq Stock Market ceremonial closing bell in Times Square to celebrate Carver's listing on the exchange. Carver had previously been traded on the American Stock Exchange. Carver Federal Savings Bank is the nation's largest African and Caribbean American-operated bank, and one of only two black banks on the Nasdaq. "Being associated with the Nasdaq brand is a real advantage for Carver," says Wright. "It is a high-growth, high-profitability electronic platform, which allows for quicker and less expensive execution."

Experts advised Carver that in a move from Amex to the Nasdaq, trading volatility could initially increase but should stabilize over time. The recent listing is one of several indicators of growth for an institution that will celebrate its 60th anniversary next year. "Unlike other companies that are experiencing severe credit issues, our portfolio is performing very well," says Wright. Carver has increased dividends every year for the last four years. Even after spending $11 million to acquire Community Capital Bank in September 2006, Carver boasts a net income of $2.6 million ending fiscal year 2007. The purchase afforded Carver the capability to enter the small-business lending arena. "It was something our customers wanted us to do for some time, but we did not have the expertise," Wright reflects.

Joe Gladue, equity analyst with B. Riley & Co., asserts that Carver is poised to jump in on a hot market: "There is a ready market for SBA loans, and in the secondary market a lot of investors like to buy SBA packages because they carry a guarantee from the federal government. …

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