Carver Bancorp, Inc. to Acquire Brooklyn's Community Capital Bank

Carver Bancorp Inc. (Amex: CNY), on Thursday said it agreed to acquire Brooklyn, New York-based Community Capital Bank for $11.1 million, or $40 per share in cash.

With assets of approximately $800 million following the combination, the transaction reinforces Carver's position as the nation's largest African and Caribbean-American operated bank. The transaction also brings together two institutions with deep community banking experience in New York City's urban neighborhoods, positioning the combined company to capitalize on one of the fastest growing and affluent minority consumer and small business markets in the country.

Deborah C. Wright, Chairman and CEO of Carver, said: "Community Capital Bank has distinguished itself in the New York City marketplace as a leading SBA lender, particularly to minority and women-owned businesses, and non- profits. Their experience in these areas is an excellent complement to Carver's existing strengths in commercial, construction and residential real estate lending. Following the combination of our institutions, Carver will expand on Community Capital's strong tradition of personal service and commitment to meeting the banking needs of its customers by providing a comprehensive lending platform for consumers, real estate developers and landlords, small businesses and non-profits throughout our combined branch network. By adding the small business lending segment so vital to the economy of New York City, Carver will be positioned to accelerate its growth for the benefit of our stockholders, customers, employees and the communities we serve."

The combined organization will have 10 branches located in New York City's Harlem, downtown Brooklyn, Bedford-Stuyvesant, Crown Heights, Fort Greene, Jamaica, St. Albans and Sunset Park neighborhoods. The Company's headquarters will remain in Harlem and the combined institution will continue to trade on the American Stock Exchange under the ticker symbol "CNY."

The agreement has been approved by the Boards of Directors of both companies and will be submitted to stockholders of Community Capital for approval. The transaction is subject to regulatory approval. It is anticipated that the combined institution will retain both commercial banking and thrift charters. The transaction is expected to close by September 30, 2006.