Carter Bankshares (CARE) Q4 2025 earnings summary

Executive summary

• Achieved strong financial performance in 2025, with full-year net income of $31.4M ($1.38 EPS), up from $24.5M in 2024, and Q4 net income of $8.5M, supported by robust asset and loan growth, and a well-capitalized, liquid balance sheet.

• Net interest income for 2025 rose to $130.8M, up 14.3% year-over-year, with Q4 net interest income at $34.6M, up 2.6% sequentially and 18.7% year-over-year.

• Maintained a diversified deposit base, expanded in key growth markets, and executed strategic initiatives focused on operational efficiency, technology, and customer experience.

• Continued investments in human capital, brand, and technology to drive future growth and operational leverage.

• Financial results continue to be significantly impacted by a large nonperforming credit relationship, with $214M in principal on nonaccrual status as of year-end.

Financial highlights

• Net interest margin increased to 2.92% in Q4 2025, up 6 bps from Q3 and 35 bps year-over-year; full-year margin was 2.82%.

• Total assets reached $4.9B, with portfolio loans at $3.9B, up $254.7M or 7.0% year-over-year.

• Deposits increased $57.5M year-over-year to $4.2B; diversified and granular, with 78.2% retail customers and 81.3% insured by the FDIC.

• Book value per share at $19.01; adjusted book value at $21.56.

• Noninterest income for Q4 2025 was $5.2M, flat sequentially and year-over-year; full-year noninterest income rose 4.8% to $22.4M.

Outlook and guidance

• Strategic focus on responsible growth, market expansion, and operational efficiency, with continued investments in technology and human capital.

• Management expects continued loan growth and margin expansion, supported by a healthy loan pipeline and new commercial lending teams.

• The company anticipates benefiting from further Federal Reserve rate cuts due to the short-term nature of its CD portfolio.

• Plans to expand in Greenville, SC and Gastonia, NC, targeting increased market share in high-growth regions.

• Resolution of the large nonperforming credit relationship remains a key focus for 2026.