Carter Bankshares reports Q3 adjusted EPS 26c, consensus 41c

Net interest margin, increased six basis points to 2.86% for the third quarter of 2025, compared to 2.80% for the prior quarter and increased 28 basis points for the year ago quarter. The Company’s Tier 1 Capital ratio was 10.66% at September 30, 2025 as compared to 10.87% at June 30, 2025. The Company’s leverage ratio was 9.41% at September 30, 2025 as compared to 9.46% at June 30, 2025. The Company’s Total Risk-Based Capital ratio was 11.91% at September 30, 2025 as compared to 12.12% at June 30, 2025. “We are pleased to report continued strong fundamentals and positive trends for the third quarter of 2025. During the quarter, we again realized margin expansion and solid loan growth throughout our footprint. Our annualized loan growth of 9.4% reflects good momentum in our commercial lending platform. Our loan pipeline remains healthy and we continue to expect a tailwind from prior construction lending that will come online over the coming 12 to 18 months as projects progress. The Bank continues to add seasoned commercial lenders in key strategic growth markets. Our balance sheet remains slightly liability sensitive. As the Federal Reserve reduces short-term interest rates in the near term, we believe we are well positioned to benefit especially given the short-term nature of our certificates of deposit (“CD”) portfolio,” stated Litz H. Van Dyke, Chief Executive Officer. Van Dyke concluded, “Although our large nonperforming credit relationship continues to have a negative impact on our financial and credit metrics, aside from this impact, our fundamentals, financial performance, and asset quality metrics all remain solid. We are committed to resolving this lending relationship in a manner that best protects our Company and our shareholders in the long-term. We continue to believe we are well positioned for a strong remainder of 2025 and continuing into 2026.”