Carter Bankshares Reports $8.5 Million Net Income for Q2 2025, Acquires Branches in North Carolina

Carter Bankshares, Inc. reported a net income of $8.5 million, or $0.37 per diluted share, for the three months ended June 30, 2025, marking a significant increase from $4.8 million, or $0.21 per diluted share, in the same period last year. For the six months ended June 30, 2025, net income rose to $17.5 million, or $0.76 per diluted share, compared to $10.6 million, or $0.46 per diluted share, for the corresponding period in 2024. The bank's net interest income increased by 15.2% to $32.4 million for the second quarter, driven by higher loan volumes and improved interest margins.

The company's total assets grew to $4.8 billion as of June 30, 2025, up from $4.7 billion at the end of 2024. This increase was primarily attributed to a $122.3 million rise in total portfolio loans, which reached $3.7 billion, reflecting a 6.8% annualized growth rate. The bank's loan portfolio was bolstered by growth in commercial real estate and residential mortgages, although there was a decline in the "Other" segment due to curtailment payments. Additionally, the bank's deposits increased by $68.8 million to $4.2 billion, aided by the acquisition of $55.9 million in deposits from a recent branch purchase.

Carter Bankshares completed the acquisition of two leased branch facilities in North Carolina from First Reliance Bank on May 23, 2025. This strategic move is part of the bank's efforts to expand its footprint in growth markets. The acquisition included approximately $57,000 in premises and equipment and $517,000 in cash and other assets, but did not involve any loans. The bank also repurchased 547,332 shares of its common stock at a total cost of $9.1 million during the first half of 2025, as part of a broader stock repurchase program authorized by its board.

In terms of credit quality, nonperforming loans decreased to $250.6 million, or 6.69% of total portfolio loans, down from $259.3 million, or 7.15%, at the end of 2024. The allowance for credit losses (ACL) was $71.0 million, representing 1.90% of total portfolio loans, a decrease from 2.09% at the end of the previous year. The bank reported a recovery of $2.3 million in the provision for credit losses for the second quarter, compared to a provision of $491,000 in the same period last year.

Looking ahead, Carter Bankshares aims to continue its growth strategy while managing credit risks associated with its loan portfolio. The bank's management is focused on enhancing its brand and operational efficiency, with plans to introduce new products and services to better serve its customers. The company remains well-capitalized, with capital ratios exceeding regulatory requirements, positioning it favorably for future growth opportunities.