Carter Bankshares Inc (NASDAQ: CARE) is a financial holding company that conducts all banking operations through its wholly owned subsidiary, Carter Bank and Trust, serving personal and business customers primarily in Virginia and North Carolina. The bank earns revenue primarily from interest on loans and investment securities and from fees charged for financial services. Net interest income is the primary revenue source, representing the spread between yields on interest-earning assets and costs on interest-bearing liabilities. Total portfolio loans reached $3.9 billion at December 31, 2025, up $254.7 million, or 7.0%, from December 31, 2024, with commercial real estate loans representing 54.5% of the total loan portfolio. The company reported 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 year ended December 31, 2024. Return on average assets was 0.66% and return on average equity was 7.74% for FY2025. The principal office is located at 1300 Kings Mountain Road, Martinsville, Virginia.

Revenue model

Interest income on loans and investment securities constitutes the primary revenue stream, supplemented by fees charged for financial services. Principal expenses include interest paid on deposits and borrowings, provision for credit losses, salaries and employee benefits, data processing, FDIC insurance assessments, and occupancy costs.

Products and services

The bank offers noninterest-bearing and interest-bearing checking accounts, savings accounts, retirement accounts, and money market accounts to personal and business customers. The loan portfolio includes commercial real estate (CRE), commercial and industrial (C&I), residential mortgage, and construction loans. At December 31, 2025, 24.1% of loans carried floating rates repricing monthly, 37.5% were variable rate, and 38.4% were fixed rate.

Customers and end markets

Personal and business customers in Virginia and North Carolina. End markets include commercial real estate borrowers (54.5% of total portfolio loans at December 31, 2025), commercial and industrial borrowers, residential mortgage borrowers, and construction borrowers. The portfolio loans-to-deposit ratio was 92.13% at December 31, 2025.

Value-chain role

Community bank and financial holding company. Takes deposits from retail and business customers and deploys capital primarily into loans and investment securities. The holding company depends on dividends from the bank subsidiary for substantially all of its revenue.

Geographic exposure

Operations conducted primarily in Virginia and North Carolina. In May 2025, the company completed a branch purchase from First Reliance Bank, adding two leased branch locations in Mooresville, North Carolina and Winston-Salem, North Carolina, acquiring $55.9 million in deposits.

Competitors

Commercial banks, Savings associations, Credit unions, Insurance companies, Mortgage companies, Consumer finance companies, Brokerage firms, Fintech companies, Money market mutual funds, Governmental agencies

Source: SEC 10-K, filed 2026-03-05

Industry: National Commercial Banks Peers: ENTERPRISE BANCORP INC /MA/ HomeTrust Bancshares Inc John Marshall Bancorp Inc MVB Financial Corp PNC Financial Services Group Inc Professional Holding Corp. Red River Bancshares Inc Shore Bancshares Inc SOUTHERN BANCSHARES NC INC