Carter Bankshares, Inc. ( (CARE) ) has released its Q3 earnings. Here is a breakdown of the information Carter Bankshares, Inc. presented to its investors.
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Carter Bankshares, Inc., headquartered in Martinsville, VA, operates as a holding company for Carter Bank, providing a range of commercial and consumer banking services across Virginia and North Carolina. In its third-quarter 2025 financial results, Carter Bankshares reported a net income of $5.4 million, or $0.24 per diluted share, a decline from the previous quarter but consistent with the same period last year. The company’s net interest income increased to $33.7 million, reflecting a 4.2% rise from the prior quarter and a 17.1% increase from the previous year, driven by a decline in funding costs and an increase in loan balances. However, the financial performance was impacted by nonaccrual loans related to the Justice Entities, which have significantly affected interest income. Despite challenges with nonperforming loans, the company saw a 9.4% annualized growth in total portfolio loans, reaching $3.8 billion. The net interest margin improved to 2.86%, and the efficiency ratio showed positive trends, indicating operational efficiency. Looking ahead, Carter Bankshares remains optimistic about its growth prospects, with a healthy loan pipeline and strategic expansions in key markets. The management is focused on resolving nonperforming loans while maintaining strong fundamentals and asset quality, positioning the company for a robust finish to 2025 and into 2026.