Carver Bancorp, Inc. (OTCQB: CARV) has entered into a second exchange agreement with EJF Capital LP, under which EJF will cancel approximately $250,000 in interest obligations on Trust Preferred Securities in exchange for 100,174 shares of Carver common stock.

The agreement follows a previously announced transaction in which EJF canceled more than $1 million in interest obligations under a similar arrangement. EJF's affiliates hold Trust Preferred Securities issued by the company.

As part of the arrangement, Carver has invited EJF to appoint a board observer, citing EJF's share ownership and support.

Lewis P. Jones III, chairman of Carver's board, said the agreement reflects EJF's "confidence demonstrated by EJF in our transformational strategy." Donald Felix, CEO of Carver, said the deal "strengthen our capital position, remove additional debt overhang, and increase our financial flexibility." Jason Ruggiero, co-chief investment officer of EJF, said the firm believes "a strengthened balance sheet will position Carver to successfully execute its strategy going forward."

Performance Trust Capital Partners, LLC served as financial advisor to Carver in connection with the exchange.

Carver Bancorp is the holding company for Carver Federal Savings Bank, a community bank based in Harlem, New York.