Clark gets carved out of bank’s future

Carver Federal terminates CEO following multimillion-dollar loss

were able to build some real good officers at Carver. There’s a new building, more ATM’s, more outreach in the community and more lending. There were challenges but I think I did everything I could and I worked my heart out. I know the foundation is there for Carver to be built upon.”

But despite these moves, Joe Gladue, an equity analyst with the Baltimore investment bank the Chapman Co., says the termination of the popular Clark wasn’t really a surprise because of recent lackluster earnings.

“The bank had come a long way, but it still had a ways to go,” he says. “When Clark got there they had long been only marginally profitable. The bank accepted deposits but didn’t do much in the way of making loans. They primarily concentrated on safe investments such as mortgage-backed securities which don’t produce much profit or much in the way of returns.”

Carver has engaged the services of Spencer Stuart, a leading national executive search firm, to aid in the hiring of a new company CEO. In the interim the bank’s board of directors has appointed an operating committee to manage day-to-day affairs at the bank. The operating committee is chaired by Pazel G. Jackson, a Carver director and senior vice president in the Community Development Group of the Chase Manhattan Bank.

The day of Clark’s announced ouster, Carver stock dropped from $8.75 to $7.75 a share. The stock was trading at $6.75 at press time.

“I don’t think they will suffer very much [from Clark's ouster] because the bank has a loyal customer base,” says Gladue. “Despite changes at the top I think customers will stick with them. The stock was already trading at a big discount in terms of book value so I don’t think it could suffer much more. And possibly the stock may rebound since the bank wasn’t performing. It’s still a valuable franchise that has a lot of potential.”

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