Carver Bancorp, Inc. Increase It's Dividend

Carver Bancorp, Inc., the holding company for Carver Federal Savings Bank (the "Bank"), announced today that the Company's Board of Directors has declared a cash dividend on its common stock of ten cents ($0.10) per share for the quarter ended June 30, 2007, the first quarter of the 2008 fiscal year.

Deborah C. Wright, Chairman and CEO of Carver, stated: "The increase in our quarterly dividend marks the fourth consecutive year that the Company's Board has increased the dividend. The increase, and the dividend for this quarter, reflects the Board's continued confidence in Carver's long-term growth and earnings outlook."

The dividend is payable on September 5, 2007, to shareholders of record at the close of business on August 23, 2007.

About Carver Bancorp, Inc.

Carver Bancorp, Inc., is the holding company for Carver Federal Savings Bank, a federally chartered stock savings bank. Carver Federal Savings Bank, the largest African- and Caribbean-American run bank in the United States, operates ten full-service branches in the New York City boroughs of Brooklyn, Queens and Manhattan. For further information, please visit the Company's website at www.carverbank.com.

Certain statements in this press release are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act. These statements are based on management's current expectations and are subject to uncertainty and changes in circumstances. Actual results may differ materially from those included in these statements due to a variety of factors, risks and uncertainties. More information about these factors, risks and uncertainties is contained in our filings with the Securities and Exchange Commission.

CONTACT:  Kekst and Company
          David Lilly / Joseph Kuo
          (212) 521-4800
          Carver Bancorp, Inc.
          Roy Swan
          (212) 360-8820