Carver Bancorp’s CEO Deborah C. Wright To Retire

After 15 years of service at Carver Bancorp, Inc. (holding company for Carver Federal Savings Bank), Deborah C. Wright will retire as CEO effective at the end of this year. Michael T. Pugh, currently  President and COO, was named her successor. Pugh, 43, is a retail and commercial banking executive with more than 22 years of experience working across various market cycles. He joined the bank as chief revenue officer in 2012 and was promoted to President and COO in January 2013.

Wright, 56, will continue to serve as the company’s non-executive Chairman of the Board.  Carver is the largest African-American operated bank in the country, holding the No. 1 spot on Black Enterprise’s BE 100s list of banks with $644.1 million in assets, 133 employees, and ten full service branches in New York.

“This is the right time for leadership transition at Carver,” notes Wright. “The Bank is now on solid footing, following successful recapitalization of our balance sheet,

reengineering of our loan portfolio, and a return to profitability. Having recruited Michael after an extensive search in 2012, and worked side by side with him for more than two years, I am confident he is the right person to lead an excellent team at Carver in achieving its high aspirations. I look forward to continuing to work with Michael and our Board of Directors as Carver deepens its impact in the communities we serve.”

Earlier this month, the Office of the Comptroller of the Currency lifted a Cease and Desist Order by issued by the Office of Thrift Supervision in 2011, recognizing that the bank was no longer in “troubled condition” under Section 914 of the Financial Institution Reform, Recovery and Enforcement Act of 1989.  Since its $55 million capital raise in 2011, Carver’s management team has worked to reduce problem assets and enhance bank operations. As of November 10, Carver had $520.4 million in deposits and $410.4 in loans.

“Over the past two years, we focused on raising capital to address the loans on our books that had gone bad during the financial crisis,” says Wright. “We brought on Michael to strengthen our management team. Michael reengineered business team to get people refocused on driving revenue. Our numbers are starting to turn around.”

“In recent months, we have focused on restructuring and building out our credit team to better position the bank for increased loan production, with an ongoing focus on credit quality, to drive profitability and to make a positive impact in the communities we serve,” says Pugh. He adds that Carver will continue to provide small business loans to help micro enterprises and small businesses seeking loan amounts under $50,000. “We are focused on offering new products and services in the near future which will be critical in attracting new customers and growing new revenue.”

In addition to more than doubling Carver’s branch footprint and increasing assets by 65%, Wright led product innovations including Carver Community Cash,

which provides a suite of check cashing and related services to customers who do not have a traditional deposit-based relationship with a bank. Carver Community Cash provides access to services such as check cashing, money orders, and bill payment.  With payday loans and check cashing storefronts becoming more popular in urban communities, and yet costing residents more in interest and fees than traditional banks, Carver Community Cash is a welcomed alternative.

Board director Robert Holland pointed out in a released statement, “A third of Carver Community Cash customers have subsequently opened deposit-based accounts with Carver, reflecting both the community need and strength of the Carver brand. Moreover, Debbie led the successful recapitalization of Carver during the depths of the credit crisis. She has been an integral part of our success and history, and we are pleased to continue to work with her as non-executive chairman.”

Wright is transitioning in the nonprofit world, joining

the Ford Foundation as a Senior Fellow in its Economic Opportunity and Assets program starting in early 2015. “I was delighted when the Ford Foundation reached out,” says Wright, noting that becoming a fellow is in keeping with the span of her whole career as it relates to encouraging economic empowerment in underserved communities.

Wright joined Carver in 1999 and was named “Community Banker of the Year” in 2003 by The American Banker. Previously, she had served as president and CEO of the Upper Manhattan Empowerment Zone from 1996 to 1999, where she oversaw an annual operating budget of $3 million and a capital budget of $250 million, funded equally by the city, state and federal governments.

Carver has a legacy of service to New York City’s urban communities and was founded in 1948 to serve African-American residents, businesses, and institutions with limited access to mainstream financial services.