NEWS RELEASE
Carter Bankshares, Inc. Announces Second Quarter 2025 Financial Results
2025-07-24
MARTINSVILLE, VA / ACCESS Newswire / July 24, 2025 / Carter Bankshares, Inc. (the "Company") (NASDAQ:CARE), the holding company of Carter Bank (the "Bank") today announced quarterly net income of $8.5 million, or $0.37 diluted earnings per share ("EPS"), for the second quarter of 2025 compared to net income of $9.0 million, or $0.39 diluted EPS, for the rst quarter of 2025 and net income of $4.8 million, or $0.21 diluted EPS, for the second quarter of 2024. Net interest income was $32.4 million for the second quarter of 2025, $30.1 million for the rst quarter of 2025, and $28.1 million for the second quarter of 2024. Pre-tax pre-provision income1 was $8.0 million for the second quarter of 2025, $9.0 million for the rst quarter of 2025 and $6.2 million for the second quarter of 2024.
For the six months ended June 30, 2025, net income was $17.5 million, or $0.76 diluted EPS, compared to net income of $10.6 million, or $0.46 diluted EPS for the same period in 2024. Net interest income was $62.5 million for the six months ended June 30, 2025, and $56.5 million for the six months ended June 30, 2024. Pre-tax pre-provision income1 was $17.0 million and $13.4 million for the six months ended June 30, 2025 and 2024, respectively.
At the close of business on May 23, 2025, the Company completed the acquisition of two leased branch facilities and the deposits associated therewith, located in Mooresville, North Carolina and Winston-Salem, North Carolina, from First Reliance Bank (the "Branch Purchase"). In the Branch Purchase the Bank acquired $55.9 million of deposits, as well as cash, personal property and other xed assets related to the branch locations purchased, and welcomed 10 new associates to its team. The Branch Purchase did not include any loans.
On May 20, 2025, the Company announced a stock repurchase program to purchase up to $20.0 million of the Company's common stock through May 14, 2026. The repurchase program does not obligate the Company to
purchase any particular number of shares and may be modi ed or terminated by the Company's Board of Directors at any time. As of June 30, 2025, under the repurchase program we have repurchased 547,332 shares of the Company's common stock at a total cost of $9.1 million and a weighted average cost per share of $16.70.
The Company's nancial results continue to be signi cantly impacted by loans in the Bank's Other segment of the Company's loan portfolio, the signi cant majority of which have been on nonaccrual status since the second quarter of 2023. The Bank's loans, now reduced to judgments, relate to various entities in which James C. Justice, II has an interest (collectively, the "Justice Entities"), remain the Bank's largest credit relationship and comprise the signi cant majority of the Other segment with an aggregate principal balance of $235.5 million as of June 30, 2025. Interest income was negatively impacted by $6.7 million during the second quarter of 2025, $6.8 million during the
rst quarter of 2025, and $9.1 million during the second quarter of 2024, due to these credits being on nonaccrual status. Interest income has been negatively impacted by $78.6 million in the aggregate since placement of these credits on nonaccrual status during the second quarter of 2023.
During the second quarter of 2025, the Company received $9.5 million of curtailment payments. As of June 30, 2025, $66.4 million of aggregate curtailment payments made by the Justice Entities to the Bank have decreased the aggregate nonperforming loan ("NPL") balance from $301.9 million as of June 30, 2023 to $235.5 million as of June 30, 2025. For additional information regarding the Bank's credit relationship with the Justice Entities, see "Credit Quality."
Financial Highlights for the Three and Six Months Ended June 30, 2025
"We are pleased to report another quarter with strong fundamentals and positive trends in the second quarter of 2025. During the quarter, we continued to see margin expansion and solid loan growth throughout our footprint. Our annualized loan growth of 6.5% re ects good momentum in our commercial lending platform. Our loan pipeline remains healthy and we continue to expect a tailwind from prior construction lending that will come online over the coming 12 to 18 months as projects progress. The Bank continues to add seasoned commercial lenders in key strategic growth markets. On the deposit side, balances are showing modest growth and cost of deposits continues to decline, albeit at a slower pace. If the Federal Reserve reduces short-term interest rates in the near term, we are well positioned to bene t given the short-term nature of our certi cates of deposit ("CD") portfolio," stated Litz H. Van Dyke, Chief Executive O cer.
Van Dyke continued, "Additionally, in the second quarter we completed the purchase of two leased branch facilities in Mooresville and Winston-Salem, North Carolina and the associated deposits from First Reliance Bank. The Bank acquired $55.9 million of deposits at the two branch locations. We are thrilled to welcome First Reliance's associates and customers to the Carter family."
Van Dyke continued, "On May 20, 2025, we announced a stock repurchase program to purchase up to $20.0 million of the Company's common stock through May 14, 2026. Given our strong capital position, we believe that this program currently is the most prudent way to deliver shareholder value. As of June 30, 2025, we have utilized approximately 46% of the stock repurchase program."
Van Dyke concluded, "Although our large nonperforming credit relationship continues to have a negative impact on our nancial and credit metrics, aside from this impact, our fundamentals, nancial performance, and asset quality metrics all remain solid. We are committed to resolving this lending relationship in a manner that best protects our Company and our shareholders in the long-term. We continue to believe we are well positioned for a strong remainder of 2025."
Operating Highlights Credit Quality
NPLs as a percentage of total portfolio loans were 6.69%, 7.09% and 8.46% at June 30, 2025, March 31, 2025 and June 30, 2024, respectively. At June 30, 2025, NPLs decreased $10.9 million to $250.6 million compared to March 31, 2025. The decrease during the quarter was primarily due to $9.5 million of curtailment payments made by the Bank's largest NPL credit relationship, as well as a decline of $1.2 million in nonaccrual residential mortgages.
Since the Bank's largest lending relationship was transferred to nonaccrual status, in the second quarter of 2023 due to loan maturities and failure to pay in full, this relationship's NPL balance has decreased from $301.9 million at June 30, 2023 to $235.5 million at June 30, 2025. This NPL relationship represents 94.0% of total NPLs and 6.3% of total portfolio loans at June 30, 2025. The Company continues to believe it is well secured based on the net carrying value of the credit relationship and is appropriately reserved for potential credit losses with respect to all such loans based on information currently available. However, the Company cannot give any assurance as to the timing or amount of future payments or collections on such loans or that the Company will ultimately collect all amounts contractually due under the terms of such loans.
The speci c reserves with respect to the Bank's largest NPL credit relationship were $24.0 million at June 30, 2025 compared to $27.1 million at March 31, 2025. The decline during the second quarter of 2025 was driven by the aforementioned curtailment payments and updated analysis of the credit relationship. The Company uses the discounted cash ow model with updated assumptions and inputs regarding the credit relationship, legal risk and related risks. The updated analysis and the impact on the speci c reserves signi cantly contributed to the $(2.3) million (recovery) for credit losses during the second quarter of 2025 as compared to the prior quarter.
During the second quarter of 2025, the (recovery) provision for credit losses was a recovery of $(2.3) million compared to a recovery of $(2.0) million during the rst quarter of 2025 and a provision for credit losses of $491 thousand during the second quarter of 2024. The change compared to the rst quarter of 2025 was primarily driven by a decline in the Other segment reserve rate from 11.05% to 10.18%, higher curtailment payments in the second quarter of 2025 compared to the rst quarter of 2025, partially o set by loan growth in the second quarter of 2025.
During the second quarter of 2025, the recovery for unfunded commitments was a recovery of $(335) thousand compared to a recovery of $(114) thousand in the rst quarter of 2025 and a recovery of $(236) thousand in the second quarter of 2024. The increased recovery during the second quarter of 2025 compared to both the rst quarter of 2025 and the second quarter of 2024 was due to decreased unfunded commitments in construction loans.
Net Interest Income
Net interest income for the second quarter of 2025 increased $2.2 million, or 7.4%, to $32.4 million compared to the rst quarter of 2025 and increased $4.3 million, or 15.2% compared to the second quarter of 2024. The increase in net interest income for the second quarter of 2025 was primarily due to 14 basis point and 30 basis point declines in funding costs and one basis point and four basis point increases in the yield on average interest-earning assets compared to the rst quarter of 2025 and the second quarter of 2024, respectively. Net interest margin, on a FTE basis3, increased 12 basis points to 2.82% compared to the rst quarter of 2025, and increased 26 basis points compared to the second quarter of 2024. The increases during the second quarter of 2025 were driven by lower funding costs and higher yields on interest-earning assets.
Total interest-bearing deposit costs decreased 16 basis points to 2.70% compared to 2.86% in the rst quarter of 2025, while the balance of average interest-bearing deposits increased $31.8 million compared to the rst quarter of 2025 primarily due to the Branch Purchase. The lower interest-bearing funding costs were positively impacted by the Federal Reserve's cut of short-term interest rates by 100 basis points beginning from September 2024 to December 2024. Total average borrowings increased $39.2 million to $119.5 million compared to the rst quarter of 2025 primarily due to additional Federal Home Loan Bank ("FHLB") borrowings to fund loan growth.
Noninterest Income
Noninterest Income was $4.9 million for the second quarter of 2025 a decrease of $2.0 million, or 28.9%, compared to the rst quarter of 2025 and a decrease of $0.6 million, or 11.3%, compared to the second quarter of 2024. The primary driver for the decrease compared to the previous quarter was the $1.9 million gain on a BOLI death bene t recorded in other noninterest income in the rst quarter of 2025. The most signi cant decreases compared to the year ago quarter were $0.3 million in other noninterest income and $0.2 million in insurance commissions due to lower activity in the second quarter of 2025.
Noninterest Expense
Noninterest expense was $29.3 million for the second quarter of 2025 an increase of $1.3 million, or 4.5% compared to the rst quarter of 2025 and an increase of $1.9 million compared to the second quarter of 2024. The primary drivers compared to the rst quarter of 2025 were increases in other noninterest expenses, professional and legal fees, and salaries and employee bene ts. Other noninterest expenses increased due to a $0.3 million 1035 exchange fee as a direct result of the early surrender of one of the Company's BOLI policies recorded in the second quarter of 2025. Professional and legal fees increased $0.4 million due to costs expensed in the second quarter of 2025. Salaries and employee bene ts increased $0.4 million primarily due to higher medical expenses
and one extra day in the second quarter of 2025, as well as ten full-time associates retained from the Branch Purchase.
Other noninterest expenses and professional and legal fees similarly increased compared to the second quarter of 2024 driven by the matters discussed above. However, occupancy expense, net increased $0.4 million primarily due to additional software and maintenance expenses and higher depreciation expense as a result of the Branch Purchase.
Financial Condition
Total assets increased $83.8 million, to $4.8 billion at June 30, 2025 compared to March 31, 2025. Cash and due from banks increased $10.9 million to $99.9 million at June 30, 2025 compared to $89.0 million at March 31, 2025. The available-for-sale securities portfolio increased $9.8 million compared to March 31, 2025 and is currently 15.8% of total assets at June 30, 2025 compared to 15.9% of total assets at March 31, 2025. The increase is due to new security purchases, partially o set by normal paydowns and maturities.
Total portfolio loans increased $59.6 million, or 6.5%, on an annualized basis, to $3.7 billion at June 30, 2025 compared to March 31, 2025. The increase in portfolio loans compared to March 31, 2025 related to growth of
$84.9 million in commercial real estate loans ("CRE") and an increase of $12.9 million in residential mortgages, partially o set by the following decreases: $15.7 million in construction, $12.1 million in commercial and industrial ("C&I"), $9.5 million in other and $0.8 million in other consumer.
Total deposits increased $21.3 million to $4.2 billion at June 30, 2025 compared to March 31, 2025. Total deposits included $55.9 million related to the Branch Purchase completed during the second quarter of 2025; however, excluding these assumed deposits, total deposits decreased $34.6 million compared to March 31, 2025 primarily due to a few large commercial depositors repositioning funds for working capital needs during the second quarter.
FHLB borrowings increased $58.5 million to $113.5 million at June 30, 2025 compared to March 31, 2025 due to additional FHLB borrowings to fund loan growth.
At June 30, 2025 and March 31, 2025, approximately 81.5% of our total deposits of $4.2 billion were insured under standard Federal Deposit Insurance Corporation ("FDIC") insurance coverage limits, and approximately 18.5% of our total deposits were uninsured deposits over the standard FDIC insurance coverage limit, respectively.
Capitalization and Liquidity
The Company remained well capitalized at June 30, 2025. The Company's Tier 1 Capital ratio was 10.87% at June 30,
2025 as compared to 11.01% at March 31, 2025. The Company's leverage ratio was 9.46% at June 30, 2025 as compared to 9.67% at March 31, 2025. The Company's Total Risk-Based Capital ratio was 12.12% at June 30, 2025 as compared to 12.27% at March 31, 2025.
At June 30, 2025, funding sources accessible to the Company include borrowing availability at the FHLB, equal to 25.0% of the Company's assets or approximately $1.2 billion, subject to the amount of eligible collateral pledged, of which the Company is eligible to borrow up to an additional $732.0 million. The Company has unsecured facilities with three other correspondent nancial institutions totaling $30.0 million, a fully secured facility with one other correspondent nancial institution totaling $45.0 million, and access to the institutional CD market. The Company did not have outstanding borrowings on these federal funds lines as of June 30, 2025. In addition to the above funding resources, the Company also has $438.8 million unpledged available-for-sale investment securities, at fair value, as an additional source of liquidity.
About Carter Bankshares, Inc.
Headquartered in Martinsville, VA, Carter Bankshares, Inc. (NASDAQ:CARE) provides a full range of commercial banking, consumer banking, mortgage and services through its subsidiary Carter Bank. The Company has $4.8 billion in assets and 64 branches in Virginia and North Carolina. For more information or to open an account visit https://www.carterbank.com.
Important Note Regarding Non-GAAP Financial Measures
In addition to the results of operations presented in accordance with generally accepted accounting principles in the United States ("GAAP"), our management uses, and this press release contains or references, certain non-GAAP
nancial measures and should be read along with the accompanying tables in our de nitions and reconciliations of GAAP to non-GAAP nancial measures. This press release and the accompanying tables discuss nancial measures that we believe are useful because they enhance the ability of investors and management to evaluate and compare the Company's operating results from period to period in a meaningful manner. Management also believes these measures provide information useful to investors in understanding our underlying business, operational performance and performance trends as these measures facilitate comparisons with the performance of other companies in the nancial services industry. Non-GAAP measures should not be considered as an alternative to GAAP or considered to be more relevant than nancial results determined in accordance with GAAP, nor are they necessarily comparable with similar non-GAAP measures that may be presented by other companies. Investors should consider the Company's performance and nancial condition as reported under GAAP and all other relevant information when assessing the performance or nancial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or nancial condition as reported under GAAP.
Important Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements made in Mr. Van Dyke's quotations and may include statements relating to our nancial condition, market conditions, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality and nonaccrual and nonperforming loans. Forward looking statements are typically identi ed by words or phrases such as "will likely result," "expect," "anticipate," "estimate," "forecast," "project," "intend," " believe," "assume," "strategy," "trend," "plan," "outlook," "outcome," "continue," "remain," "potential," "opportunity," "comfortable," "current," "position," "maintain," "sustain," "seek," "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may.
These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are di cult to predict and often are beyond the Company's control. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to di er materially from those made, projected, or implied in or by the forward-looking statements including, but not limited to the e ects of:
all, or that integrating acquired operations will be more di cult, disruptive or more costly than anticipated;
Many of these factors, as well as other factors, are described in our lings with the Securities and Exchange Commission, including in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2024. All risk factors and uncertainties described herein and therein should be considered in evaluating the Company's forward-looking statements. Forward-looking statements are based on beliefs and
assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events are expressed in or implied by a forward-looking statement may, and often do, di er materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update, revise or clarify any forward-looking statement to re ect developments occurring after the statement is made, except as required by law.
Carter Bankshares, Inc. investorrelations@CBTCares.com
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA BALANCE SHEETS
June 30, 2025 | March 31, 2025 | June 30, 2024 | |||
(unaudited) | (unaudited) | (unaudited) | |||
(Dollars in Thousands, except per share data) | |||||
ASSETS | $ 99,905 | $ 88,999 | $ 61,746 | ||
Cash and Due From Banks, including Interest-Bearing Deposits of $51,890 at June 30, 2025, $46,490 at March 31, 2025 and $21,364 at June 30, 2024 | 755,212 | 745,390 | 746,325 | ||
Securities Available-for-Sale, at Fair Value | 10,200 | 10,178 | 5,063 | ||
Equity Securities | 246 | - | - | ||
Loans Held-for-Sale | 3,747,121 | 3,687,495 | 3,549,521 | ||
Portfolio Loans | |||||
(71,023 Allowance for Credit Losses | ) | (73,518 | ) | (96,686) | |
3,676,098 Portfolio Loans, net | 3,613,977 | 3,452,835 | |||
72,105 | 73,944 | 73,347 | |||
Bank Premises and Equipment, net 1,193 | - | - | |||
Goodwill 1,073 | - | - | |||
Core Deposit Intangible 1,657 | 577 | 2,501 | |||
Other Real Estate Owned, net 8,653 | 5,875 | 14,467 | |||
Federal Home Loan Bank Stock, at Cost
Bank Owned Life Insurance Other Assets
Total Assets
48,365 48,224 58,828
109,384 113,123 117,397
$ 4,784,091 $ 4,700,287 $ 4,532,509
LIABILITIES
$ 635,192 | $ 631,714 | $ 653,296 | ||
805,013 | 794,059 | 565,465 | ||
544,764 | 528,381 | 500,475 | ||
343,659 | 353,394 | 399,833 | ||
1,893,611 | 1,893,379 | 1,762,232 | ||
4,222,239 | 4,200,927 | 3,881,301 | ||
113,500 | 55,000 | 238,000 | ||
2,737 | 3,072 | 2,914 | ||
39,980 | 39,522 | 45,883 | ||
4,378,456 | 4,298,521 | 4,168,098 |
Deposits:
Noninterest-Bearing Demand Interest-Bearing Demand Money Market
Savings
Certi cates of Deposit Total Deposits
Federal Home Loan Bank Borrowings
Reserve for Unfunded Loan Commitments Other Liabilities
Total Liabilities
SHAREHOLDERS' EQUITY
22,670 | 23,162 | 23,073 | ||
84,146 | 92,418 | 91,274 | ||
351,069 | 342,559 | 319,697 | ||
(52,250) | (56,373) | (69,633) | ||
405,635 | 401,766 | 364,411 | ||
$ 4,784,091 | $ 4,700,287 | $ 4,532,509 |
Common Stock, Par Value $1.00 Per Share, Authorized 100,000,000 Shares;
Outstanding- 22,669,834 shares at June 30, 2025, 23,161,993 shares at March 31, 2025 and
23,072,750 shares at June 30, 2024
Additional Paid-in Capital Retained Earnings
Accumulated Other Comprehensive Loss
Total Shareholders' Equity
Total Liabilities and Shareholders' Equity
PERFORMANCE RATIOS
Return on Average Assets (QTD Annualized) Return on Average Assets (YTD Annualized)
Return on Average Shareholders' Equity (QTD Annualized)
Return on Average Shareholders' Equity (YTD Annualized)
0.72% 0.78% 0.43%
0.75% 0.78% 0.47%
8.45% 9.27% 5.40%
8.85% 9.27% 5.99%
Portfolio Loans to Deposit Ratio
Allowance for Credit Losses to Total Portfolio Loans
88.75% 87.78% 91.45%
1.90% 1.99% 2.72%
CAPITALIZATION RATIOS
Shareholders' Equity to Assets Tier 1 Leverage Ratio
Risk-Based Capital - Tier 1 Risk-Based Capital - Total
8.48% 8.55% 8.04%
9.46% 9.67% 9.43%
10.87% 11.01% 10.95%
12.12% 12.27% 12.22%
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA INCOME STATEMENTS
Quarter-to-Date Year-to-Date
June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||
(unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||
(Dollars in Thousands, except per share data) | ||||||
$ 57,747 | $ 56,007 | $ 54,583 | $ 113,754 | $ 108,632 | ||
Interest Income | 25,388 | 25,869 | 26,491 | 51,257 | 52,121 | |
Interest Expense | ||||||
32,359 | 30,138 | 28,092 | 62,497 | 56,511 |
NET INTEREST INCOME
(2,330) | (2,025) | 491 | (4,355) | 507 | |
(Recovery) Provision for Credit Losses | (335) | (114) | (236) | (449) | (279) |
Recovery for Unfunded Commitments | |||||
NET INTEREST INCOME AFTER (RECOVERY) PROVISION FOR | 35,024 | 32,277 | 27,837 | 67,301 | 56,283 |
CREDIT LOSSES |
NONINTEREST INCOME | - | - | 36 | - | 36 |
Gains on Sales of Securities, net | 1,765 | 1,874 | 1,852 | 3,639 | 3,727 |
Service Charges, Commissions and Fees | 1,942 | 2,104 | 1,933 | 4,046 | 4,019 |
Debit Card Interchange Fees | 714 | 344 | 934 | 1,058 | 1,548 |
Insurance Commissions | 357 | 341 | 365 | 698 | 713 | ||||
Bank Owned Life Insurance Income | 130 | 2,238 | 413 | 2,368 | 535 | ||||
Other | |||||||||
4,908 | 6,901 | 5,533 | 11,809 | 10,578 |
Total Noninterest Income
NONINTEREST EXPENSE | 14,082 | 13,657 | 14,216 | 27,739 | 28,416 | ||||
Salaries and Employee Bene ts | 4,230 | 4,472 | 3,793 | 8,702 | 7,541 | ||||
Occupancy Expense, net | 1,436 | 1,430 | 1,566 | 2,866 | 3,253 | ||||
FDIC Insurance Expense | 922 | 947 | 894 | 1,869 | 1,802 | ||||
Other Taxes | 708 | 911 | 528 | 1,619 | 885 | ||||
Advertising Expense | 307 | 304 | 342 | 611 | 759 | ||||
Telephone Expense | 1,921 | 1,230 | 1,542 | 3,151 | 3,055 | ||||
Professional and Legal Fees | 1,395 | 1,444 | 1,234 | 2,839 | 2,125 | ||||
Data Processing | 991 | 992 | 808 | 1,983 | 1,564 | ||||
Debit Card Expense | 3,312 | 2,655 | 2,523 | 5,967 | 4,303 | ||||
Other | |||||||||
29,304 | 28,042 | 27,446 | 57,346 | 53,703 |
Total Noninterest Expense
10,628 | 11,136 | 5,924 | 21,764 | 13,158 | |||||
Income Before Income Taxes | 2,118 | 2,183 | 1,121 | 4,301 | 2,544 | ||||
Income Tax Provision | |||||||||
$ 8,510 | $ 8,953 | $ 4,803 | $ 17,463 | $ 10,614 | |||||
Net Income | |||||||||
22,669,834 | 23,161,993 | 23,072,750 | 22,669,834 | 23,072,750 | |||||
Shares Outstanding, at End of Period | 22,805,881 | 22,873,800 | 22,826,510 | 22,839,412 | 22,798,476 | ||||
Average Shares Outstanding-Basic & Diluted | |||||||||
PER SHARE DATA | $ 0.37 | $ 0.39 | $ 0.21 | $ 0.76 | $ 0.46 | ||||
Basic Earnings Per Common Share* | $ 0.37 | $ 0.39 | $ 0.21 | $ 0.76 | $ 0.46 | ||||
Diluted Earnings Per Common Share* | $ 17.89 | $ 17.35 | $ 15.79 | $ 17.89 | $ 15.79 | ||||
Book Value | $ 17.34 | $ 16.18 | $ 15.12 | $ 17.34 | $ 15.12 | ||||
Market Value |
PROFITABILITY RATIOS (GAAP)
Net Interest Margin
E ciency Ratio
PROFITABILITY RATIOS (Non-GAAP)
Net Interest Margin (FTE)3
Adjusted E ciency Ratio (Non-GAAP)4
2.80% 2.68% 2.55% 2.74% 2.56%
78.63% 75.71% 81.62% 77.18% 80.05%
2.82% 2.70% 2.56% 2.76% 2.58%
75.55% 78.67% 81.33% 77.06% 80.17%
*All outstanding unvested restricted stock awards are considered participating securities for the earnings per share calculation. As such, these shares have been allocated to a portion of net income and are excluded from the diluted earnings per share calculation.
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA NET INTEREST MARGIN (FTE) (QTD AVERAGES)
(Unaudited)
June 30, 2025 March 31, 2025 June 30, 2024
Average
Income/
Rate
Average
Income/
Rate
Average
Income/
Rate
(Dollars in Thousands)
Balance
Expense
Balance
Expense
Balance
Expense
ASSETS
Interest-Bearing Deposits with Banks
Tax-Free Investment Securities3
Taxable Investment
$ 58,006 $ 643 4.45% $ 67,387 $ 748 4.50% $ 31,083 $ 420 5.43%
11,622 85 2.93% 11,662 84 2.92% 11,779 86 2.94%
818,588 6,796 3.33% 807,891 6,655 3.34% 841,787 7,721 3.69%
830,210 | 6,881 | 3.32% | 819,553 | 6,739 | 3.33% | 853,566 | 7,807 | 3.68% |
89,362 | 732 | 3.29% | 93,480 | 761 | 3.30% | 105,487 | 854 | 3.26% |
3,648,629 | 49,522 | 5.44% | 3,567,184 | 47,825 | 5.44% | 3,430,330 | 45,395 | 5.32% |
Securities
Total Securities Tax-Free Loans3
Taxable Loans
3,737,991 50,254 5.39% 3,660,664 48,586 5.38% 3,535,817 46,249 5.26%
Total Loans
Federal Home Loan Bank
8,428 140 6.66% 6,499 112 6.99% 16,611 304 7.36%
4,634,635 | 57,918 | 5.01% | 4,554,103 | 56,185 | 5.00% | 4,437,077 | 54,780 | 4.97% |
126,303 | 121,766 | 91,648 | ||||||
$ 4,760,938 | $ 4,675,869 | $ 4,528,725 |
Stock
Total Interest-Earning Assets
Noninterest Earning Assets
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||
$ 805,749 | $ 3,661 | 1.82% | $ 744,895 | $ 3,386 | 1.84% | $ 532,700 | $ 1,689 | 1.28% | |
Interest-Bearing Demand | 536,366 | 3,510 | 2.62% | 525,463 | 3,319 | 2.56% | 510,828 | 3,926 | 3.09% |
Money Market | 347,863 | 129 | 0.15% | 355,123 | 113 | 0.13% | 411,457 | 145 | 0.14% |
Savings | 1,885,486 | 16,759 | 3.57% | 1,918,195 | 18,205 | 3.85% | 1,731,358 | 16,963 | 3.94% |
Certi cates of Deposit | |||||||||
Total Interest- 3,575,464 Bearing | 24,059 | 2.70% | 3,543,676 | 25,023 | 2.86% | 3,186,343 | 22,723 | 2.87% | |
Deposits 108,753 Federal Home Loan Bank | 1,186 | 4.37% | 69,833 | 702 | 4.08% | 283,154 | 3,675 | 5.22% | |
Borrowings 10,713 | 143 | 5.35% | 10,417 | 144 | 5.61% | 8,460 | 93 | 4.42% | |
Other Borrowings | |||||||||
119,466 | 1,329 | 4.46% | 80,250 | 846 | 4.28% | 291,614 | 3,768 | 5.20% | |
Total Borrowings | |||||||||
Total Interest- 3,694,930 Bearing | 25,388 | 2.76% | 3,623,926 | 25,869 | 2.90% | 3,477,957 | 26,491 | 3.06% | |
Liabilities 662,168 Noninterest-Bearing | 660,437 | 693,336 | |||||||
Liabilities 403,840 | 391,506 | 357,432 | |||||||
Shareholders' Equity | |||||||||
and $ 4,760,938 | $ 4,675,869 | $ 4,528,725 | |||||||
Shareholders' Equity | |||||||||
Total Assets
Total Liabilities
Net Interest Income3 Net Interest Margin3
$ 32,530 $ 30,316 $ 28,289
2.82% 2.70% 2.56%
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA NET INTEREST MARGIN (FTE) (YTD AVERAGES)
(Unaudited)
Six Months Ended June 30, 2025 Six Months Ended June 30, 2024
(Dollars in Thousands) | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate |
ASSETS | $ 62,670 | $ 1,391 | 4.48% | $ 27,606 | $ 755 | 5.50% |
Interest-Bearing Deposits with Banks | 11,642 | 169 | 2.93% | 11,799 | 171 | 2.91% |
Tax-Free Investment Securities3 |
813,269 | 13,451 | 3.34% | 847,664 | 15,464 | 3.67% | |
Taxable Investment Securities |
824,911 | 13,620 | 3.33% | 859,463 | 15,635 | 3.66% |
91,410 | 1,493 | 3.29% | 108,479 | 1,751 | 3.25% |
3,608,131 | 97,347 | 5.44% | 3,418,994 | 90,212 | 5.31% |
Total Securities Tax-Free Loans3
Taxable Loans | ||||||
3,699,541 | 98,840 | 5.39% | 3,527,473 | 91,963 | 5.24% | |
Total Loans | 7,469 | 252 | 6.80% | 18,507 | 682 | 7.41% |
Federal Home Loan Bank Stock | ||||||
4,594,591 | 114,103 | 5.01% | 4,433,049 | 109,035 | 4.95% | |
Total Interest-Earning Assets 124,048 | 91,409 | |||||
Noninterest Earning Assets | ||||||
$ 4,718,639 | $ 4,524,458 | |||||
Total Assets | ||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | $ 775,490 | $ 7,047 | 1.83% | $ 514,376 | $ 2,801 | 1.10% |
Interest-Bearing Demand | 530,944 | 6,829 | 2.59% | 517,862 | 7,922 | 3.08% |
Money Market | 351,473 | 242 | 0.14% | 425,616 | 282 | 0.13% |
Savings | 1,901,751 | 34,964 | 3.71% | 1,683,589 | 32,435 | 3.87% |
Certi cates of Deposit | ||||||
3,559,658 | 49,082 | 2.78% | 3,141,443 | 43,440 | 2.78% | |
Total Interest-Bearing Deposits 89,400 | 1,888 | 4.26% | 324,968 | 8,494 | 5.26% | |
Federal Home Loan Bank Borrowings 10,566 | 287 | 5.48% | 8,081 | 187 | 4.65% | |
Other Borrowings | ||||||
99,966 | 2,175 | 4.39% | 333,049 | 8,681 | 5.24% | |
Total Borrowings | ||||||
3,659,624 | 51,257 | 2.82% | 3,474,492 | 52,121 | 3.02% | |
Total Interest-Bearing Liabilities 661,308 | 693,814 | |||||
Noninterest-Bearing Liabilities 397,707 | 356,152 | |||||
Shareholders' Equity | ||||||
$ 4,718,639 | $ 4,524,458 | |||||
Total Liabilities and Shareholders' Equity | ||||||
Net Interest Income3 Net Interest Margin3
$ 62,846 $ 56,914
2.76% 2.58%
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA LOANS AND LOANS HELD-FOR-SALE
(Unaudited)
(Dollars in Thousands)
June 30,
2025
March 31,
2025
June 30,
2024
Commercial
Commercial Real Estate Commercial and Industrial
Total Commercial Loans Consumer
Residential Mortgages Other Consumer
Total Consumer Loans Construction
Other
Total Portfolio Loans Loans Held-for-Sale
Total Loans
$ 2,000,766 $ 1,915,863 $ 1,801,397
221,880 234,024 240,611
2,222,646 | 2,149,887 | 2,042,008 | ||
814,188 | 801,253 | 783,903 | ||
27,991 | 28,804 | 31,284 | ||
842,179 | 830,057 | 815,187 | ||
443,573 | 459,285 | 394,926 | ||
238,723 | 248,266 | 297,400 | ||
3,747,121 | 3,687,495 | 3,549,521 | ||
246 | - | - | ||
$ 3,747,367 | $ 3,687,495 | $ 3,549,521 |
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA ASSET QUALITY DATA
(Unaudited)
For the Periods Ended
(Dollars in Thousands)
June 30,
2025
March 31,
2025
June 30,
2024
Nonaccrual Loans
Commercial Real Estate
$ 9,613 $ 9,733 $ 611
1,048 | 1,070 | 1,084 | |||
Commercial and Industrial | 4,142 | 5,326 | 1,951 | ||
Residential Mortgages | 29 | 38 | 30 | ||
Other Consumer | 207 | 213 | 2,426 | ||
Construction | 235,542 | 245,064 | 294,140 | ||
Other | |||||
250,581 | 261,444 | 300,242 |
Total Nonperforming Loans
1,657 | 577 | 2,501 | |||
Other Real Estate Owned | |||||
$ 252,238 | $ 262,021 | $ 302,743 |
Total Nonperforming Assets
6.69% | 7.09% | 8.46% | |
Nonperforming Loans to Total Portfolio Loans | 6.73% | 7.10% | 8.52% |
Nonperforming Assets to Total Portfolio Loans plus Other Real Estate Owned | 1.90% | 1.99% | 2.72% |
Allowance for Credit Losses to Total Portfolio Loans | 28.34% | 28.12% | 32.20% |
Allowance for Credit Losses to Nonperforming Loans | $ 165 | $ 57 | $ 341 |
Net Loan Charge-o s QTD | $ 222 | $ 57 | $ 873 |
Net Loan Charge-o s YTD | 0.02% | 0.01% | 0.04% |
Net Loan Charge-o s (Annualized) to Average Portfolio Loans QTD | 0.01% | 0.01% | 0.05% |
Net Loan Charge-o s (Annualized) to Average Portfolio Loans YTD |
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA ALLOWANCE FOR CREDIT LOSSES
(Unaudited)
Quarter-to-Date Year-to-Date
June 30,
2025
March 31,
2025
June 30,
2024
June 30,
2025
June 30,
2024
(Dollars in Thousands) | |||||||||
$ 73,518 | $ 75,600 | $ 96,536 | $ 75,600 | $ 97,052 | |||||
Balance Beginning of Period (2,330 (Recovery) Provision for Credit Losses | ) | (2,025 | ) | 491 | (4,355 | ) | 507 | ||
Charge-o s: - | - | - | - | - | |||||
Commercial Real Estate - | 7 | 1 | 7 | 19 | |||||
Commercial and Industrial - | - | 4 | - | 27 | |||||
Residential Mortgages 288 | 171 | 488 | 459 | 968 | |||||
Other Consumer - | 1 | - | 1 | 156 | |||||
Construction - Other | - | - | - | - | |||||
288 | 179 | 493 | 467 | 1,170 | |||||
Total Charge-o s | |||||||||
Recoveries: | - | - | - | - | - | ||||
Commercial Real Estate | 2 | 3 | 1 | 5 | 2 | ||||
Commercial and Industrial | 2 | 8 | 22 | 10 | 24 | ||||
Residential Mortgages | 119 | 110 | 129 | 229 | 271 | ||||
Other Consumer | - | 1 | - | 1 | - | ||||
Construction | - | - | - | - | - | ||||
Other | |||||||||
123 | 122 | 152 | 245 | 297 | |||||
Total Recoveries | |||||||||
165 Total Net Charge-o s | 57 | 341 | 222 | 873 | |||||
$ 71,023 | $ 73,518 | $ 96,686 | $ 71,023 | $ 96,686 | |||||
Balance End of Period
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
DEFINITIONS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES:
(Unaudited)
Quarter-to-Date | Year-to-Date | |
1 Pre-tax Pre-provision Income (Non-GAAP) | June 30, March 31, June 30, | June 30, June 30, |
2025 | 2025 | 2024 | 2025 | 2024 | |||||
(Dollars in Thousands) | |||||||||
$ 32,359 | $ 30,138 | $ 28,092 | $ 62,497 | $ 56,511 | |||||
Net Interest Income | 4,908 | 6,901 | 5,533 | 11,809 | 10,578 | ||||
Noninterest Income | 29,304 | 28,042 | 27,446 | 57,346 | 53,703 | ||||
Noninterest Expense | |||||||||
$ 7,963 | $ 8,997 | $ 6,179 | $ 16,960 | $ 13,386 | |||||
Pre-tax Pre-provision Income (Non-GAAP) |
Quarter-to-Date Year-to-Date
2 Adjusted Net Income (Non-GAAP) | ||||||
June 30, 2025 | March 31, 2025 | June 30, 2024 | June 30, 2025 | June 30, 2024 | ||
(Dollars in Thousands, except per share data) | ||||||
$ 8,510 | $ 8,953 | $ 4,803 | $ 17,463 | $ 10,614 | ||
Net Income | - | - | (36) | - | (36) | |
Gains on Sales of Securities, net | (22) | (137) | (63) | (159) | (63) | |
Equity Security Unrealized Fair Value Gain | 60 | (3) | 44 | 57 | 45 | |
Losses (Gains) on Sales and Write-downs of Bank Premises, net | 262 | 81 | (8) | 343 | (350) | |
Losses (Gains) on Sales and Write-downs of OREO, net | 252 | 275 | - | 527 | - | |
1035 Exchange fee on BOLI | 386 | - | - | 386 | - | |
Acquisition Costs | - | (1,882) | - | (1,882) | - | |
Gain on BOLI death bene t5 | - | - | (20) | - | (28) | |
OREO Income | 40 | - | - | 40 | - | |
Severance Pay | 38 | - | - | 38 | - | |
Contingent Liability | (214) | (45) | 18 | (259) | 91 | |
Total Tax E ect | ||||||
$ 9,312 | $ 7,242 | $ 4,738 | $ 16,554 | $ 10,273 | ||
Adjusted Net Income (Non-GAAP) | ||||||
22,805,881 | 22,873,800 | 22,826,510 | 22,839,412 | 22,798,476 | ||
Average Shares Outstanding - diluted | ||||||
$ 0.41 | $ 0.32 | $ 0.21 | $ 0.72 | $ 0.45 | ||
Adjusted Earnings Per Common Share (diluted) (Non-GAAP) | ||||||
3 Net interest income has been computed on a fully taxable equivalent basis ("FTE") using 21% federal income tax
rate for the 2025 and 2024 periods.
Quarter-to-Date | Year-to-Date | ||||
Net Interest Income (FTE) (Non-GAAP) | |||||
June 30, | March 31, | June 30, | June 30, | June 30, | |
2025 | 2025 | 2024 | 2025 | 2024 | |
(Dollars in Thousands) | |||||
$ 57,747 | $ 56,007 | $ 54,583 | $ 113,754 | $ 108,632 | |
Interest and Dividend Income (GAAP) | 171 | 178 | 197 | 349 | 403 |
Tax Equivalent Adjustment3 | |||||
57,918 | 56,185 | 54,780 | 114,103 | 109,035 | |
Interest and Dividend Income (FTE) (Non-GAAP) | 4,634,635 | 4,554,103 | 4,437,077 | 4,594,591 | 4,433,049 |
Average Earning Assets | |||||
5.00% | 4.99% | 4.95% | 4.99% | 4.93% | |
Yield on Interest-earning Assets (GAAP) | 5.01% | 5.00% | 4.97% | 5.01% | 4.95% |
Yield on Interest-earning Assets (FTE) (Non-GAAP) | |||||
32,359 | 30,138 | 28,092 | 62,497 | 56,511 | |
Net Interest Income (GAAP) | 171 | 178 | 197 | 349 | 403 |
Tax Equivalent Adjustment3 | |||||
$ 32,530 | $ 30,316 | $ 28,289 | $ 62,846 | $ 56,914 | |
Net Interest Income (FTE) (Non-GAAP) | $ 4,634,635 | $ 4,554,103 | $ 4,437,077 | $ 4,594,591 | $ 4,433,049 |
Average Earning Assets | |||||
2.80% | 2.68% | 2.55% | 2.74% | 2.56% | |
Net Interest Margin (GAAP) | 2.82% | 2.70% | 2.56% | 2.76% | 2.58% |
Net Interest Margin (FTE) (Non-GAAP) | |||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
Quarter-to-Date | Year-to-Date | |
4 Adjusted E ciency Ratio (Non-GAAP) | ||
June 30, March 31, June 30, 2025 2025 2024 | June 30, June 30, 2025 2024 | |
(Dollars in Thousands) | ||
$ 29,304 $ 28,042 $ 27,446 | $ 57,346 $ 53,703 | |
Noninterest Expense | (60) 3 (44) | (57) (45) |
Less:(Losses) Gains on sales and write-downs of Branch Premises, net |
(262) | (81) | 8 | (343) | 350 | |
Less: (Losses) Gains on Sales and write-downs of OREO, net | (252) | (275) | - | (527) | - |
1035 Exchange fee on BOLI | (386) | - | - | (386) | - |
Less: Acquisition Costs | (40) | - | - | (40) | - |
Less: Severance Pay | (38) | - | - | (38) | - |
Less: Contingent Liability | |||||
$ 28,266 | $ 27,689 | $ 27,410 | $ 55,955 | $ 54,008 | |
Adjusted Noninterest Expense (Non-GAAP) | |||||
$ 32,359 | $ 30,138 | $ 28,092 | $ 62,497 | $ 56,511 | |
Net Interest Income | 171 | 178 | 197 | 349 | 403 |
Plus: Taxable Equivalent Adjustment3 | |||||
$ 32,530 | $ 30,316 | $ 28,289 | $ 62,846 | $ 56,914 | |
Net Interest Income (FTE) (Non-GAAP) | - | - | (36) | - | (36) |
Less: Gains on Sales of Securities, net | (22) | (137) | (63) | (159) | (63) |
Less: Equity Security Unrealized Fair Value Gain | - | (1,882) | - | (1,882) | - |
Gain on BOLI death bene t5 | - | - | (20) | - | (28) |
Less: OREO Income | 4,908 | 6,901 | 5,533 | 11,809 | 10,578 |
Noninterest Income | |||||
Net Interest Income (FTE) (Non-GAAP) plus Adjusted | $ 37,416 | $ 35,198 | $ 33,703 | $ 72,614 | $ 67,365 |
Noninterest Income | |||||
78.63% | 75.71% | 81.62% | 77.18% | 80.05% | |
E ciency Ratio (GAAP) | |||||
75.55% | 78.67% | 81.33% | 77.06% | 80.17% | |
Adjusted E ciency Ratio (Non-GAAP) |
5The Gain on BOLI death bene t is tax-exempt. SOURCE: Carter Bankshares, Inc.
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