Carver Bancorp Gets $6 Million Equity Investment From JPMorgan Chase

By Colin Kellaher

Carver Bancorp Inc. on Tuesday said it received a long-term equity investment of about $6 million from JPMorgan Chase & Co. as part of the banking giant's new initiatives aimed at supporting minority-owned and diverse-led financial institutions.

New York-based Carver is the holding company for Carver Federal Savings Bank, a certified Minority Depository Institution.

Carver said it will use the bulk of the funds to ramp up its lending activities to minority and women business entrepreneurs, and to expand its financial-education programs in the diverse low- to moderate-income communities it serves.

Carver said JPMorgan bought 112,612 common shares, or a roughly 3.4% stake, at a price of $8.88 apiece, along with 5,000 shares of a new series of Series F preferred stock at $1,000 each.

JPMorgan earlier Tuesday unveiled a series of initiatives as part of its firm's recently announced $30 billion commitment to advancing racial equity, including the launch of a new money-market share class for distribution by Minority Depository Institutions and diverse-led Community Development Financial Institutions.

Carver earlier this month received a $4.4 million investment from Wells Fargo as part of the San Francisco bank's pledge to invest up to $50 million in Black-owned banks.

Shares of Carver were recently up 5.8% to $10.84.

Write to Colin Kellaher at [e-mail]

(END) Dow Jones Newswires

February 23, 2021 14:12 ET (19:12 GMT)

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