**Carter Bankshares, Inc. Reports Increased Net Interest Income and Improved Asset Quality in 2025**

Martinsville, VA – Carter Bankshares, Inc. (CARE), a financial holding company with $4.9 billion in assets, reported a net income of $31.4 million, or $1.38 diluted earnings per share, for the year ended December 31, 2025, compared to $24.5 million, or $1.06 diluted earnings per share, for the previous year. The company's net interest income increased by $16.4 million, or 14.3%, reaching $130.8 million, driven by growth in average interest-earning assets and higher loan yields. The (recovery) for credit losses was $(3.6) million for the year ended December 31, 2025, compared to a (recovery) for credit losses of $(5.0) million for the same period in 2024.

The company's total noninterest income rose to $22.4 million, a $1.0 million increase from 2024, primarily due to a $1.9 million gain on a BOLI death benefit. Total noninterest expense increased by $7.1 million to $117.1 million, reflecting operational growth, strategic initiatives, and inflationary pressures. The income tax provision increased by $2.3 million to $8.6 million, primarily due to a $9.1 million increase in pre-tax income.

Key balance sheet changes included a $26.8 million decrease in the available-for-sale securities portfolio, which now represents 14.3% of total assets, and a $254.7 million, or 7.0%, increase in total portfolio loans. Nonperforming loans (NPLs) decreased by $15.4 million to $244.0 million, representing 6.29% of total portfolio loans, while the allowance for credit losses (ACL) to total portfolio loans ratio decreased to 1.84%. Total deposits increased by $57.5 million, or 1.4%, to $4.2 billion, and FHLB borrowings increased by $108.5 million to $178.5 million.

In October 2025, Carter Bankshares elected to become a financial holding company under the Bank Holding Company Act of 1956. The company also completed the acquisition of two leased branch facilities and associated deposits from First Reliance Bank in Mooresville and Winston-Salem, North Carolina, adding $55.9 million in deposits. As of December 31, 2025, the company employed 687 full-time associates across its 64 branches in Virginia and North Carolina. The company's Board authorized a repurchase program to purchase up to $10.0 million of the Company’s common stock in the aggregate over a period of twelve months beginning February 11, 2026.

About Carter Bankshares, Inc.

Carter Bankshares, Inc. is a holding company for Carter Bank & Trust, a Virginia-chartered bank with 65 branches in Virginia and North Carolina. It offers retail and commercial banking services, including deposits, loans, and digital banking. The company focuses on organic growth, community engagement, and prudent risk management, serving individual and business customers with a competitive suite of financial products in its regional markets.

This description was generated via AI from an annual report. Updated 8 months ago.

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