#USA #New York #Shareholders #Dream Chasers #Carver Bancorp

Dream Chasers Capital Group Advocates for Carver Bancorp Shareholder Change

In a powerful move to reshape the future of Carver Bancorp, Dream Chasers Capital Group LLC has made a compelling case for shareholders to embrace change by supporting new board members. In an open letter addressing the shareholders, Greg Lewis, CEO of Dream Chasers, emphasized that Carver's best days are still ahead if new directors are elected to steer the company towards a more profitable and sustainable future.

The letter, which comes ahead of Carver's Annual Meeting of Shareholders scheduled for December 12, 2024, underscores the pressing need for action as the current board has overseen a decade marked by significant losses—specifically a staggering $25 million over the past ten years. Lewis points out the drastic decline in shareholder value by 79%, which serves as a stark reminder of the board's failure to adapt and innovate.

A Call to Action for Shareholders

Lewis urged both institutional and individual shareholders to vote in favor of new ideas by supporting candidates Mr. Jeffrey "Jeff" Anderson and Mr. Jeffrey Bailey for the board. He argues that electing these candidates is the best chance for shareholders to restore value and propel Carver towards growth. Dream Chasers is advocating for a strategy that prioritizes community engagement and financial services tailored to underserved markets.

Lewis highlighted the troubling statistics regarding communities of color and their access to financial services. He underlined that by providing services like mortgage loans and investment opportunities, banks like Carver could help reverse socioeconomic disparities. He believes that Carver, given its location in New York City, has the potential to access a large and diverse customer base but that the current board has failed to capitalize on this opportunity.

Criticism of the Current Board

In his open letter, Lewis did not hold back from criticizing the current board's performance, particularly targeting Mr. Kenneth Knuckles and Ms. Jillian Joseph, who have both been affiliated with Carver during its years of poor performance. Lewis points out that while Carver's board accuses Dream Chasers' nominees of lacking experience, the very individuals they put in place have not demonstrated the required acumen needed to turn around the institution.

For instance, Lewis noted that although Knuckles and Joseph serve on key committees, the boards' decisions have not been aligned with the needs of the shareholders or the company’s potential growth trajectory. He posits that shareholders should be wary of directors who have not delivered results or capitalized on opportunities to improve shareholder value over time.

Experience Counts: The Dream Chasers Nominees

In contrast, the nominees put forth by Dream Chasers are described as having the expertise and experience crucial for steering Carver toward a brighter future. Mr. Anderson has over three decades of experience in banking, having served in senior roles at J.P. Morgan and other leading financial institutions, giving him a depth of knowledge in financial management which is desperately needed at Carver. Likewise, Mr. Bailey brings entrepreneurial spirit and a vested interest as Carver’s largest individual shareholder, promising a commitment to restoring the bank to a path of profitability.

The Road Ahead

With the backdrop of an impending proxy contest, Dream Chasers aims to rally shareholders around the urgent need for a pivot in strategy away from the complacency and mismanagement that has characterized the current board’s tenure. Lewis concluded his letter with a rallying cry for shareholders to make their voices heard by voting with the BLUE proxy card for Anderson and Bailey while withholding votes from the underperforming current directors.

As shareholders prepare for the crucial voting period, the outcome could significantly influence both the future of Carver and the broader financial landscape affecting communities in New York City and beyond. The path forward is a theme of accountability, transparency, and hope for a more sustainable financial institution that can effectively serve its community.

By mobilizing shareholders to advocate for these changes, Dream Chasers Capital Group is setting the stage for potentially transformative leadership at Carver Bancorp, which may indeed lead to a rebirth of growth and profitability for years to come.