This Exchange Agreement follows the previously announced cancellation of more than $1 million in interest obligations by TruPS holder EJF.

Lewis P. Jones III, Chairman of the Board of Directors of Carver, said, "We welcome EJF's continued support and are gratified by the confidence demonstrated by EJF in our transformational strategy. That such a credible and experienced institutional investor in community banks has elected to exchange interest obligations for our common stock serves as confirmation of Carver's strong potential for sustainable value creation. Given the firm's substantial support and share ownership, Carver has also invited EJF to appoint a Board observer, and we are excited about having the benefit of this additional perspective as we continue our Board modernization initiatives."

"This Exchange Agreement is a meaningful validation of the powerful transformation underway at Carver," added Donald Felix, CEO of Carver. "EJF has now taken a second significant step in support of our strategic initiatives to strengthen the Company as we further execute on our plan to drive long-term growth and profitability. With the Exchange Agreement, we continue to advance in the right direction as we strengthen our capital position, remove additional debt overhang, and increase our financial flexibility. We appreciate EJF's confidence in our management team and its continued partnership as we work to fulfill Carver's mission to empower everyday New Yorkers to achieve their financial goals."

Jason Ruggiero, Co-Chief Investment Officer of EJF, stated, "We are pleased to work with Carver as it executes its transformation strategy. We believe a strengthened balance sheet will position Carver to successfully execute its strategy going forward."