Carver Bancorp, Inc. (CARV): Business Model Canvas [Dec-2025 Updated]

As a seasoned analyst, I see that understanding Carver Bancorp, Inc.'s path forward means looking past the headlines to its core mechanics, especially now, given the tough 2025 numbers. We need to see how their mission-driven value proposition-serving African-American communities and MWBEs-is holding up while managing soaring non-performing assets of $24.6 million against total assets near $730 million. This canvas breaks down exactly how they plan to execute their OCC-mandated strategy, balancing a $661.8 million core deposit base with $34.8 million in high non-interest expenses to hit that $19.2 million in Net Interest Income for the fiscal year. Dive in below to see the key partnerships and activities driving this critical turnaround.

Carver Bancorp, Inc. (CARV) - Canvas Business Model: Key Partnerships

You're looking at how Carver Bancorp, Inc. structures its external relationships to fuel its mission, which is especially critical given the reported $13.7 million net loss for the fiscal year ended March 31, 2025. These partnerships are designed to provide liquidity, fee income, and specialized lending capacity, helping support the bank's $757 million in total assets as of the end of FY-2024.

The Key Partnerships block is where Carver Bancorp, Inc. secures crucial non-deposit funding and revenue-generating agreements. For instance, the bank's total deposits grew by 7.8% in FY-2024, but these external alliances offer different types of support.

Here's a breakdown of the primary strategic alliances Carver Bancorp, Inc. relies on:

• - Strategic deposit and fee-sharing relationships with major banks like Citigroup and J.P. Morgan. These long-standing partners bolstered the Bank's ability through fee-sharing and deposit gathering throughout FY-2024.
• - New York Green Bank for a $25 million credit facility for decarbonization projects. Carver closed this revolving senior unsecured term loan under the Community Decarbonization Fund, which is expected to impact FY-2025 results. NY Green Bank committed $25MM in its 2024-2025 Plan Year.
• - Fortune 100 corporate partner for the MWBE Vendor Supplier Program. This is a bespoke corporate vendor financing program for Minority and Women-Owned Business Enterprises (MWBEs), primarily in the Northeast, and it carries a guarantee from this major corporate entity.
• - Federal Home Loan Bank (FHLB) for liquidity and development advances. Carver secured a $1.8 million advance through the FHLB-NY 0% Development Advance Program. As of March 31, 2024, the outstanding advances from the FHLB-NY totaled $28.0 million.

To give you a clearer picture of the financial weight of these relationships, here's a table summarizing the key figures we have for these partners:

The $25 million facility with the New York Green Bank is specifically earmarked to finance building decarbonization projects across New York City's diverse middle-income communities. Also, remember that Carver Bancorp, Inc. is working to meet its Individual Minimum Capital Ratio (IMCR) requirements after reporting a decrease in total equity by $12.7 million in FY-2025, largely due to the net loss. These partnerships are defintely key to stemming that trend.

Finance: draft 13-week cash view by Friday.

Carver Bancorp, Inc. (CARV) - Canvas Business Model: Key Activities

You're looking at the core actions Carver Bancorp, Inc. is taking right now to execute its turnaround under regulatory pressure. These aren't just theoretical; they are the daily grind of managing a bank through a mandated restructuring.

Commercial Real Estate (CRE) and business loan origination and servicing.

The focus here is on managing the existing loan book while trying to originate new, quality assets. As of the fiscal year ended March 31, 2025, the total loan portfolio stood at \$614 million. By the end of the third quarter of 2025, net loans had decreased to \$586.8 million. You should know that as of March 31, 2025, owner-occupied commercial real estate loans within the business loan category totaled \$110.9 million. To help fund new activity, Carver Bancorp secured a \$1.8 million advance through the FHLB-NY 0% Development Advance Program, specifically to support loan origination. That's the capital they are using to try and grow the asset side responsibly.

Deposit gathering across retail, institutional, and direct-to-consumer channels.

Funding the balance sheet is always a key activity. Deposits were reported at \$661.8 million at the fiscal year-end of March 31, 2025, which represented a 2.3% increase year-over-year at that time. However, by the third quarter of 2025 (September 30, 2025), deposits had fallen to \$625.6 million, a drop of 5.5% from the March figure. This outflow means deposit retention and gathering remain a top priority, especially given the bank's mission focus.

Executing the OCC-mandated three-year strategic plan to improve sustained earnings.

This is the central mandate driving nearly everything else. Carver Federal Savings Bank entered a Formal Agreement with the Office of the Comptroller of the Currency (OCC) on May 14, 2025. This agreement required the preparation of a three-year strategic plan, which needed to be submitted for the OCC's review by September 25, 2025. The plan must establish objectives focusing on growth, capital, liquidity, and balance sheet mix, all aimed at achieving sustainable earnings. The bank reported a net loss of \$13.7 million for FY 2025, and the Q3 2025 net loss was \$(2.4) million for the quarter. The efficiency ratio was elevated at 138.3% for the quarter ended September 30, 2025, showing high operating costs relative to core revenues.

Enhancing governance through the November 2025 board modernization initiative.

To align with leading companies and drive the strategic plan, Carver Bancorp announced a comprehensive board modernization initiative on November 5, 2025. This is a massive governance overhaul. Here are the key actions:

• Board Refresh: Target of 75% director transition within the next 12 quarters.
• Compensation Restructure: Planned 50% reduction in cash compensation, adding an equity retainer.
• Performance Focus: Implementation of annual individual director assessments.
• Expertise Addition: Appointment of Jason Sisack, former OCC Assistant Deputy Comptroller, as an advisor.

Managing asset quality and non-performing assets, which soared to \$24.6 million in FY 2025.

Addressing asset quality is critical, especially with the OCC's scrutiny. Non-performing assets (NPA) were a major issue, soaring to \$24.6 million (or 3.38% of total assets) at the fiscal year-end of March 31, 2025. By the end of the third quarter of 2025, this metric worsened, with NPAs reaching \$26.7 million, representing 3.83% of total assets. Nonaccrual loans alone hit \$26.7 million (or 4.5% of total loans) at September 30, 2025. Furthermore, loans past due 90 days or more totaled \$23.0 million at that same quarter-end. The Allowance for Credit Losses (ACL) stood at \$6.1 million as of September 30, 2025.

Here's a quick look at the asset quality deterioration:

The bank's total assets decreased by 4.4% from March 31, 2025, to September 30, 2025. Finance: draft the capital adequacy impact analysis for the Q4 2025 board meeting by next Tuesday.

Carver Bancorp, Inc. (CARV) - Canvas Business Model: Key Resources

You're mapping out the core assets Carver Bancorp, Inc. (CARV) relies on to execute its mission-driven strategy. These aren't just line items; they are the tangible and intangible foundations supporting its unique position in the market.

The most immediate, concrete resource is the balance sheet size. As of March 31, 2025, Carver Bancorp, Inc. held approximately $730 million in total assets. This scale, while modest in the broader banking sector, is significant for a specialized institution operating in its target geography.

Funding stability comes from the deposit base. For Fiscal Year 2025, the core deposit base stood at $661.8 million. This base is crucial, especially given the bank's focus on community stability. Furthermore, the bank maintains capital strength, reporting a Tier 1 leverage ratio of 8.70% as of that period.

The human capital supporting this operation is lean and focused. Carver Bancorp, Inc. had a dedicated workforce of 109 employees as of March 31, 2025. To give you context on efficiency, the loan portfolio stood at $613.7 million at the same date.

Intangible resources define Carver Bancorp, Inc.'s value proposition. The firm's status as a Certified Community Development Financial Institution (CDFI) and a Minority Depository Institution (MDI)-being among the largest African-American operated banks in the United States-is a primary resource. This status unlocks specific mission-aligned grant income opportunities and partnerships. This commitment is validated by performance metrics:

• - Sixth consecutive 'Outstanding' rating from the OCC for CRA performance (most recent in March 2022).
• - 90% of Carver Federal's loans were made within its assessment area as of the last review.

The deep community relationships in urban markets, particularly New York City, are operationalized through specific activities. For instance, the bank offers a suite of products branded as Carver Community Cash for unbanked and underbanked consumers, including check cashing and bill payment services. Still, you should note the near-term risk reflected in asset quality: non-performing assets soared to $24.6 million, representing 3.38% of assets as of March 31, 2025.

Here's a quick look at some key financial and operational metrics as of the end of FY 2025:

The bank also utilizes wholly-owned subsidiaries as structural resources. Carver Federal formed Carver Asset Corporation (CAC), which qualifies as a real estate investment trust (REIT), potentially for future capital raising. At March 31, 2025, CAC held mortgage loans carried at approximately $3.2 million.

Finance: draft 13-week cash view by Friday.

Carver Bancorp, Inc. (CARV) - Canvas Business Model: Value Propositions

You're focused on an institution whose value proposition is deeply rooted in its community mandate, which is rare in today's banking landscape. Carver Bancorp, Inc. offers specific, tangible benefits to its core customer base in New York City.

The primary value is financial empowerment for everyday New Yorkers and historically underserved communities. This is backed by a legacy dating back to its founding in 1948. The institution maintains a physical presence where larger banks often retreat; predominantly all of its seven branches are located in low- to moderate-income (LMI) neighborhoods in New York City, including Harlem.

Carver Bancorp, Inc. provides direct access to credit and savings products specifically in these LMI neighborhoods. This commitment to local access is a core differentiator against competitors with greater resources. The bank offers a suite of products for unbanked and underbanked consumers, branded as Carver Community Cash, which includes check cashing, wire transfers, and reloadable prepaid cards.

The commitment to mission-driven lending is quantified by specific actions. For instance, Carver Bancorp, Inc. closed a $25 million revolving unsecured long-term loan facility intended for deployment in decarbonization projects benefiting urban communities and for Minority/Women-owned Business Enterprises (MWBEs) through a bespoke corporate vendor financing program. As of March 31, 2025, no funds had been drawn from this facility. The total loan portfolio stood at $613.7 million at March 31, 2025.

The legacy of community impact is validated by consistent regulatory review. Carver Bancorp, Inc. achieved its seventh consecutive 'Outstanding' rating from the Office of the Comptroller of the Currency (OCC) following its most recent Community Reinvestment Act (CRA) examination in June 2025. This rating affirms excellent responsiveness to the needs of LMI communities through community development lending, investing, and service activities.

Here's a quick look at how these mission-critical metrics stack up as of late 2025:

The bank's focus on its assessment area remains strong, with the OCC finding that the majority of its loans were made within that area during the June 2025 review. This contrasts with the prior exam finding that 90% of loans were within the assessment area. The institution remains a trusted, long-standing institution, serving as one of the largest African-American operated banks in the United States.

The value proposition is further supported by its operational structure:

• - Serves African-American communities in New York City.
• - Employs a workforce where nearly half are female and a majority are minorities.
• - Operates seven branches predominantly in LMI areas.
• - Loan-to-deposit ratio was 83.2% of total assets as of March 31, 2025.

Carver Bancorp, Inc. (CARV) - Canvas Business Model: Customer Relationships

You're looking at how Carver Bancorp, Inc. keeps its customers close, which is really the core of its identity as a Community Development Financial Institution (CDFI) and one of the largest African-American managed banks in the United States.

Community-focused, high-touch banking model.

Carver Federal Savings Bank maintains its focus on underserved neighborhoods in New York City, operating branches in Harlem, Brooklyn, and Queens, while its online platform serves customers across nine states, from Massachusetts to Virginia, including Washington, D.C.. The bank's commitment to its assessment area is long-standing, evidenced by the 90% of its loans made within that area noted in its March 2022 Community Reinvestment Act (CRA) examination, which resulted in its sixth consecutive 'Outstanding' rating from the Office of the Comptroller of the Currency (OCC). This high-touch approach is supported by a relatively lean structure, reporting approximately $730.0 million in total assets and 109 employees as of March 31, 2025.

The reliance on relationship funding is clear in the deposit trends; deposits were up 7.8% in fiscal year 2024, funded by steady growth in retail and institutional deposits, with a notable 5-year decline in the brokered deposit component suggesting a strong relationship banking trend. To show you the scale of this commitment, Carver reinvests approximately more than 80 cents of every dollar on deposit back into local businesses, jobs, and development.

Relationship management for commercial and institutional deposit clients.

Carver Bancorp, Inc. actively cultivates relationships with institutional partners, which bolster its ability to serve the community. These mission-aligned institutional investors include J.P. Morgan and Wells Fargo. The bank also engages in strategic partnerships to enhance its capabilities, such as closing a $25 million credit facility with the New York Green Bank to deploy funds in decarbonization projects.

Here's a look at the composition of the loan portfolio as of March 31, 2025, which is the direct result of these client relationships:

Direct engagement through the Carver Community Development Corporation.

Carver Federal Savings Bank supports its mission through direct community investment programs. The Carver Corporate Contributions Program provides financial support to non-for-profit, charitable organizations within its footprint that focus on community development, financial education, workforce development, and small business development. Organizations must be a current customer of Carver Federal Savings Bank to apply for a grant, with only one grant per Carver's fiscal year awarded per organization.

Personalized service for complex CRE and business lending.

Carver Federal Savings Bank tailors its commercial offerings to meet specific client cash flow needs, focusing on local entrepreneurs and organizations. The bank provides revolving credit, working capital, and term loan facilities to small businesses generally having annual sales between approximately $1 million to $25 million. For smaller needs, the Small Business Microloan Program offers vital capital up to $50,000 with a low-fixed interest rate, contingent upon maintaining a Business Checking Account with Carver Bank.

The lending teams focus on originating loans secured primarily by commercial real estate, including multifamily, mixed-use, and owner-occupied properties, alongside general UCC-1 filings on Commercial & Industrial (C&I) loans. In fiscal year 2024, C&I lending grew by 7.0% and represented 9.7% of the gross loan portfolio, showing an increased focus on these business relationships.

You should note the bank also offers a suite of products for the underbanked, branded as Carver Community Cash, which includes check cashing, wire transfers, bill payment, reloadable prepaid cards, and money orders.

Finance: draft 13-week cash view by Friday.

Carver Bancorp, Inc. (CARV) - Canvas Business Model: Channels

You're mapping out how Carver Bancorp, Inc. gets its value proposition-which is rooted in community-focused banking and access to capital-to its customer segments. The channels Carver Federal Savings Bank uses are a mix of traditional, localized presence and modern digital reach, reflecting its mission as one of the nation's largest African-American-operated banks.

The physical network is highly concentrated in its core market. Carver has seven full-service branches situated in historically low- to moderate-income neighborhoods across the Brooklyn, Manhattan, and Queens boroughs of New York City. The Bank's home office is at 75 West 125th Street, New York, New York 10027, while administrative offices are at 1825 Park Avenue, New York, New York 10034. This physical footprint is crucial for serving its local community, where the OCC noted 90% of Carver Federal's loans were made within its assessment area following the March 2022 CRA examination.

For broader reach, Carver leverages digital channels. The online banking platform allows for account opening across nine states and Washington, D.C.. This digital access supports core services like online account opening, online bill pay, and mobile banking. To support its lending officers and direct client servicing, Carver maintains a significant loan portfolio, with Total loans receivable at $613.7 million as of March 31, 2025. This portfolio includes a focus on commercial and multifamily mortgages, and business loans, with owner-occupied commercial real estate loans totaling $110.9 million at that same date.

Access to cash and basic transactions is augmented through physical and digital partnerships. Carver maintains 24/7 ATM Centers alongside its branches. Furthermore, customers gain access to more than 80,000 ATMs nationwide via partnerships with Allpoint, J.P. Morgan Chase, and Wells Fargo. This combination of local branches and extensive ATM access helps bridge the gap for consumers who might otherwise be underbanked.

Here is a quick look at the key channel metrics as of the latest reported data:

The bank's commitment to community development is also channeled through specific programs. For instance, Carver has a $25 million revolving unsecured long-term loan facility aimed at green energy projects and Minority and Women-owned Business Enterprises (MWBEs), though no funds had been drawn from this facility as of March 31, 2025. This shows a deliberate channel for deploying mission-aligned capital directly to specific business segments.

You should note that while the digital platform extends to nine states, the core deposit-gathering and lending activities remain heavily tied to the physical New York City footprint, where approximately 80 cents of every dollar deposited is reinvested back into the communities. Finance: draft the Q4 2025 customer interaction report detailing digital vs. branch transaction volume by Friday.

Carver Bancorp, Inc. (CARV) - Canvas Business Model: Customer Segments

You're looking at the core of Carver Bancorp, Inc.'s strategy, which is deeply rooted in its designated role as a Community Development Financial Institution (CDFI) and Minority Depository Institution (MDI) in the New York metropolitan area. This focus dictates exactly who they aim to serve with their banking products.

The primary customer base is built around specific community demographics and business types that larger regional banks often overlook or under-serve. Carver Federal Savings Bank operates branches in Manhattan, Brooklyn, and Queens, keeping its physical presence centered where its mission is focused: expanding wealth-enhancing opportunities in underserved neighborhoods.

• African-American communities in New York City.
• Individuals residing in low- to moderate-income (LMI) neighborhoods.
• The bank achieved its sixth consecutive 'Outstanding' rating from the OCC for its Community Reinvestment Act performance, confirming its dedication to these segments.

For businesses, Carver Bancorp, Inc. targets small-to-mid-sized enterprises, with a specific commitment to Minority/Women-Owned Business Enterprises (MWBEs). This isn't just talk; they established a $25 million revolving unsecured long-term loan facility specifically for MWBEs, though no funds were drawn as of March 31, 2025. In the prior fiscal year (FY 2024), Commercial & Industrial (C&I) lending grew and made up 9.7% of the gross loan portfolio, showing engagement with local entrepreneurs.

The bank also caters to entities that support community infrastructure and development. This includes non-profit organizations and owners of multifamily properties, which aligns with their lending focus that includes multifamily real estate within the loan portfolio. They also serve institutional and governmental deposit clients, accepting deposits from governmental and quasi-governmental agencies. Their total deposit base grew by 2.3% to $661.8 million as of the fiscal year ended March 31, 2025.

Here's a quick look at the financial scale supporting these customer relationships as of the end of the 2025 fiscal year:

You should note that while the mission is clear, the bank is actively working to improve sustained earnings, as evidenced by the $13.7 million net loss reported for FY 2025. Finance: draft 13-week cash view by Friday.

Carver Bancorp, Inc. (CARV) - Canvas Business Model: Cost Structure

You're looking at the cost side of Carver Bancorp, Inc.'s operations as of late 2025, which is heavily influenced by regulatory pressure and a higher rate environment. The overall cost base saw an increase, driven by several key areas.

Non-interest expense for Carver Bancorp, Inc. totaled $34.8 million for the fiscal year ended March 31, 2025, representing an 8.1% rise from the prior year's $32.2 million. This jump highlights the ongoing operational strain.

Here's a quick look at the major cost components for FY 2025:

Personnel costs are a significant fixed component of the structure. Carver Bancorp, Inc. maintained a workforce of 109 employees as of March 31, 2025.

The cost structure is clearly feeling the weight of external mandates and market conditions:

• Personnel costs for the 109 employees were approximately $7.213 million for the fiscal year.
• Significant regulatory and compliance costs are embedded, particularly following the Formal Agreement with the OCC on May 14, 2025, which requires specific compliance enhancements.
• Other non-interest expense included higher legal costs associated with an activist shareholder.
• Net equipment expense was higher due to upgraded cybersecurity systems and increased hardware/software maintenance contracts.
• Security services at the branches contributed to higher other non-interest expense.

Interest expense on deposits was a major driver of the overall negative financial performance. The interest expense on deposits increased by $3.9 million for the twelve months ending March 31, 2025. This was primarily due to increases in the average balances of $32.7 million and average rates paid on certificates of deposit by 76 basis points.

Operating costs for maintaining the branch network and technology are reflected in the overall non-interest expense, contributing to an efficiency ratio of 156.5% for FY 2025. This ratio shows that operating costs significantly outpaced revenues.

• Net occupancy costs related to building expenses increased year-over-year.
• The high efficiency ratio of 156.5% signals that operating costs are a near-term risk to profitability.

Finance: draft 13-week cash view by Friday.

Carver Bancorp, Inc. (CARV) - Canvas Business Model: Revenue Streams

You're looking at how Carver Bancorp, Inc. actually brings in the money, which for a bank like this, boils down to interest earned versus fees charged. Honestly, the core driver remains the spread between what they earn on assets and what they pay out on liabilities.

The primary engine is Net Interest Income from loans and investments. For the fiscal year ending in 2025, this key metric landed at $19.2 million. This number reflects a 15.0% decrease from the prior year, largely because interest expense went up by $3.6 million. To give you the full picture of the interest side, the Total Interest Income for FY 2025 was $34.3 million.

Here's a quick look at the income components we have for the fiscal year ending March 31, 2025, and the most recent Trailing Twelve Months (TTM) total revenue:

The lending portfolio itself is where the interest income is generated. Carver Bancorp, Inc.'s loan portfolio, which stood at $614 million as of the end of FY 2025, is built primarily around Commercial Real Estate (CRE) and business loans. This focus on CRE and multifamily lending is central to their earning assets.

Beyond the interest spread, Carver Bancorp, Inc. generates Non-interest income from service charges and financial services fees. For FY 2025, this stream was significantly smaller, falling to $3.1 million, a 54% drop year-over-year. You should know that deposit account fees represent a significant portion of non-interest revenue. These fees specifically include service charges on deposit accounts, like ATM fees and NSF fees, plus fees earned from debit cards. For context, one filing noted 'Depository fees and charges' at $643 thousand, which gives you a sense of that component's scale within the total non-interest revenue.

If onboarding takes 14+ days, churn risk rises. Finance: draft 13-week cash view by Friday.