Financial Performance - As of September 30, 2025, Carter Bankshares, Inc. has total assets of $4.8 billion[152] - Net income for the three months ended September 30, 2025, was $5.4 million, or $0.24 diluted earnings per share, compared to $5.6 million, or $0.24 diluted earnings per share, for the same period in 2024[164] - Net interest income increased by $4.9 million, or 17.1%, to $33.7 million for the three months ended September 30, 2025, compared to $28.8 million for the same period in 2024[162] - Net interest income increased by $10.9 million, or 12.8%, for the nine months ended September 30, 2025, compared to the same period in 2024[171] - Total noninterest income decreased by $0.1 million to $5.4 million for the three months ended September 30, 2025, compared to the same period in 2024[162] - Total noninterest income slightly decreased by $0.1 million for the three months ended September 30, 2025, but increased by $1.2 million, or 7.4%, for the nine months ended September 30, 2025, compared to the same periods in 2024[184] - Total noninterest expense increased by $1.3 million to $28.7 million for the three months ended September 30, 2025, compared to the same period in 2024[162] - Total noninterest expense increased by $1.3 million for the three months ended September 30, 2025, primarily driven by higher professional and legal fees of $0.7 million and occupancy expenses of $0.6 million[186] Loan and Credit Quality - A significant credit relationship was placed on nonaccrual status in Q2 2023, with an aggregate principal balance of $228.6 million as of September 30, 2025[158] - Interest income has been negatively impacted by $6.5 million and $20.0 million for the three and nine months ended September 30, 2025, respectively, due to the nonaccrual loans[158] - The Company is dedicated to resolving nonaccrual loans, primarily related to a single large credit relationship[157] - The financial results are significantly impacted by the aforementioned nonaccrual loans, with a total negative impact of $85.2 million since their placement[158] - Nonperforming loans decreased by $0.7 million to $258.6 million compared to December 31, 2024, with nonperforming loans as a percentage of total portfolio loans at 6.74% compared to 7.15%[162] - The largest nonperforming credit relationship accounted for $228.6 million, or 88.4% of total nonperforming loans as of September 30, 2025[223] - The company closely monitors collateral values and potential recoveries on nonperforming loans, particularly in the hospitality, agriculture, and energy sectors[226] - The company has implemented new underwriting standards to reduce defaults by considering global cash flows and repayment capabilities of borrowers[228] - Loans rated special mention or substandard require management attention to limit potential losses, reflecting the ongoing monitoring of credit quality[218] - The Criticized Asset Committee meets monthly to review high-risk loans, ensuring proactive management of potential losses[214] Deposits and Funding - Total deposits increased by $56.9 million, or 1.8%, on an annualized basis, to $4.2 billion at September 30, 2025, compared to December 31, 2024[168] - Noninterest-bearing demand deposits decreased by $28.2 million to $606.2 million, while interest-bearing demand deposits increased by $82.6 million to $809.5 million, reflecting a shift in customer preferences[239] - Federal Home Loan Bank borrowings increased significantly to $175.5 million as of September 30, 2025, from $70.0 million at December 31, 2024, primarily to support loan growth[242] - The company has identified additional funding sources, including borrowing availability at the FHLB of approximately $1.2 billion, with $544.0 million eligible to borrow as of September 30, 2025[247] - Approximately 81.6% of total deposits were insured under standard FDIC insurance coverage limits as of September 30, 2025, indicating a stable deposit base[240] Capital and Liquidity - The Company's total capital increased by $28.5 million to $412.8 million at September 30, 2025, primarily due to net income of $22.9 million[253] - The Tier 1 capital ratio was 10.66% at September 30, 2025, compared to 10.88% at December 31, 2024[256] - The leverage ratio was 9.41% at September 30, 2025, compared to 9.56% at December 31, 2024[256] - The Bank's total risk-based capital ratio was 11.72% at September 30, 2025, compared to 11.98% at December 31, 2024[257] - The ratio of highly liquid assets to total assets was 9.9% at September 30, 2025, with highly liquid assets totaling $481.0 million[249] - Total available liquidity to uninsured deposits was 157.1% at September 30, 2025[252] - The company’s liquidity management is overseen by the ALCO, which monitors cash flow projections and maintains a contingency funding plan to address potential liquidity stress events[245] Strategic Initiatives - The Company aims to shift from restructuring to a prudent growth strategy, focusing on organic growth and opportunistic acquisitions[156] - The new brand identity was unveiled on October 30, 2024, emphasizing customer and community focus[155] - The Company’s strategic plan includes enhancing brand image and increasing fee income while monitoring operating expenses[156] Interest Rate Sensitivity - As of September 30, 2025, a 200 basis point increase in interest rates is projected to result in a decrease of 1.8% in pretax net interest income, while a 100 basis point increase would lead to a decrease of 0.7%[269] - In a declining interest rate environment, the company expects an increase in net interest income, with a projected increase of 3.3% for a 100 basis point decrease in rates and 6.8% for a 200 basis point decrease[269] - The economic value of equity is projected to decrease by 8.6% with a 200 basis point increase in interest rates as of September 30, 2025, and by 3.4% with a 100 basis point increase[273] - The company's balance sheet is liability sensitive, indicating a small decrease in net interest income in a rising interest rate environment due to its composition and maturity structures[269] - The ALCO has temporarily suspended the analysis for +300 and +400 basis point rate shock scenarios due to the Federal Open Market Committee's recent actions to lower the Fed Funds Target Rate[266]

Core Insights - Carter Bankshares, Inc. reported revenue of $39.25 million for the quarter ended September 2025, marking a year-over-year increase of 14.1% [1] - The earnings per share (EPS) for the same period was $0.26, compared to $0.23 a year ago [1] - The reported revenue fell short of the Zacks Consensus Estimate of $39.8 million, resulting in a surprise of -1.38% [1] - The company experienced an EPS surprise of -33.33%, with the consensus EPS estimate being $0.39 [1] Financial Metrics - The efficiency ratio was reported at 73.4%, which is higher than the two-analyst average estimate of 72% [4] - The net interest margin stood at 2.9%, aligning with the average estimate based on two analysts [4] - Total noninterest income was $5.37 million, slightly above the two-analyst average estimate of $5.35 million [4] Stock Performance - Over the past month, shares of Carter Bankshares have returned -3.5%, contrasting with the Zacks S&P 500 composite's +0.2% change [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating potential performance in line with the broader market in the near term [3]

Core Insights - Carter Bankshares, Inc. reported quarterly earnings of $0.26 per share, missing the Zacks Consensus Estimate of $0.39 per share, but showing an increase from $0.23 per share a year ago, resulting in an earnings surprise of -33.33% [1] - The company posted revenues of $39.25 million for the quarter ended September 2025, which was 1.38% below the Zacks Consensus Estimate and an increase from $34.41 million year-over-year [2] - The stock has gained approximately 7.7% since the beginning of the year, underperforming compared to the S&P 500's gain of 13.9% [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is $0.39 on revenues of $41 million, and for the current fiscal year, it is $1.50 on revenues of $154.8 million [7] - The estimate revisions trend for Carter Bankshares was mixed ahead of the earnings release, resulting in a Zacks Rank 3 (Hold) for the stock, indicating expected performance in line with the market [6] Industry Context - The Banks - Northeast industry, to which Carter Bankshares belongs, is currently ranked in the top 24% of over 250 Zacks industries, suggesting a favorable outlook compared to lower-ranked industries [8] - Empirical research indicates a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can be tracked by investors [5]

Financial Performance - Carter Bankshares, Inc. reported a net income of $5.4 million, or $0.24 diluted EPS, for Q3 2025, a decrease from $8.5 million, or $0.37 diluted EPS, in Q2 2025[1] - Noninterest income for Q3 2025 was $5.4 million, an increase of $0.5 million, or 9.4%, compared to the prior quarter[15] - Net income for the quarter was $5,419 thousand, a decrease of 36.5% from $8,510 thousand in the previous quarter[38] - Adjusted net income for Q3 2025 was $5,711,000, compared to $9,312,000 in Q2 2025 and $5,352,000 in Q3 2024, indicating a decrease of 38.5% quarter-over-quarter but a 6.7% increase year-over-year[45] Loan and Asset Growth - Total portfolio loans increased by $88.5 million, or 9.4%, on an annualized basis, reaching $3.8 billion as of September 30, 2025[6] - The company experienced an annualized loan growth of 9.4%, indicating strong momentum in its commercial lending platform[4] - Total loans increased to $3,836,131 thousand as of September 30, 2025, from $3,747,367 thousand in June 2025, with commercial loans reaching $2,281,219 thousand[41] - Total assets increased to $4,840,119 thousand as of September 30, 2025, up from $4,613,435 thousand a year earlier, representing a growth of 4.9%[37] Credit Quality and Provisions - Nonperforming loans (NPLs) increased by $8.1 million to $258.6 million at September 30, 2025, with NPLs to total portfolio loans at 6.74%[6] - The provision for credit losses was an expense of $2.9 million in Q3 2025, compared to a recovery of $(2.3) million in Q2 2025[10] - The provision for credit losses in Q3 2025 was $2,896,000, compared to a recovery of $(2,330,000) in Q2 2025 and $(432,000) in Q3 2024, reflecting a shift towards increased provisions[43] - Total charge-offs for Q3 2025 amounted to $256,000, significantly lower than $15,448,000 in Q3 2024, indicating improved credit quality[43] Efficiency and Operational Metrics - The efficiency ratio improved to 73.43% in Q3 2025, down from 80.17% in Q3 2024, reflecting better operational efficiency[6] - The adjusted efficiency ratio for Q3 2025 improved to 73.37%, compared to 75.55% in Q2 2025 and 80.65% in Q3 2024, indicating enhanced operational efficiency[46] - The return on average assets (QTD annualized) decreased to 0.45% from 0.72% in the previous quarter[37] Deposits and Capital - Total deposits decreased by $11.9 million to $4.2 billion as of September 30, 2025, during the seasonally slow third quarter[23] - The Company's Tier 1 Capital ratio was 10.66% at September 30, 2025, down from 10.87% at June 30, 2025[25] - Approximately 81.6% of total deposits were insured under standard FDIC insurance coverage limits as of September 30, 2025[24] Shareholder Actions - The Company repurchased 262,269 shares of common stock at a total cost of $4.9 million during the three months ended September 30, 2025[26] Interest Income and Margin - Net interest income for Q3 2025 was $33.7 million, an increase of $1.4 million, or 4.2%, from the prior quarter, and an increase of $4.9 million, or 17.1%, from Q3 2024[6] - The net interest margin (GAAP) for Q3 2025 was 2.86%, compared to 2.80% in Q2 2025 and 2.58% in Q3 2024, reflecting improved profitability on interest-earning assets[45] - Year-to-date net interest income for the nine months ended September 30, 2025 was $96,728 thousand, with a net interest margin of 2.80%[40]

Core Insights - BIRKENSTOCK has launched a new body care range under its CARE ESSENTIALS line, expanding its focus from foot care to full-body care with products made from 100% natural origin ingredients [1][2][3] Product Overview - The new body care range includes four products designed for daily use, featuring a Hand and Body Wash and Lotion, available in Relaxing and Balancing formulations [6] - All products are vegan-certified, COSMOS-Natural-certified, and made in Germany, emphasizing the brand's commitment to quality and sustainability [2][5][6] Brand Philosophy - BIRKENSTOCK's expansion into body care aligns with its holistic approach to natural care, combining functionality with sensory experience [2][3] - The brand aims to empower consumers to care for their bodies as nature intended, reflecting its core values of function, quality, and tradition [4][7] Sustainability Efforts - The packaging for the new body care products is designed with sustainability in mind, utilizing post-consumer recycled materials and FSC-certified components [8] - The company emphasizes its commitment to environmentally friendly practices in both product formulation and packaging [8][12]

Core Viewpoint - Carter Bankshares, Inc. (CARE) is showing solid improvement in earnings estimates, which may lead to continued stock price momentum [1][2]. Earnings Estimate Revisions - Analysts are increasingly optimistic about Carter Bankshares' earnings prospects, as reflected in the upward trend of estimate revisions [2][3]. - The current quarter's earnings estimate is projected at $0.39 per share, indicating a year-over-year increase of +69.6% [5]. - The Zacks Consensus Estimate for the current quarter has risen by 14.71% over the last 30 days, with two estimates increasing and no negative revisions [5]. - For the full year, the earnings estimate stands at $1.50 per share, representing a +42.9% change from the previous year [6]. - The consensus estimate for the current year has increased by 15.39% due to two upward revisions and no negative changes [7]. Zacks Rank and Performance - Carter Bankshares currently holds a Zacks Rank 2 (Buy), indicating favorable conditions for investment based on earnings estimate revisions [8]. - Stocks with Zacks Rank 1 (Strong Buy) and 2 (Buy) have historically outperformed the S&P 500 [8]. Investment Outlook - The stock has appreciated by 7.5% over the past four weeks due to strong estimate revisions, suggesting potential for further upside [9].

Financial Performance - Net income for the three months ended June 30, 2025, was $8.5 million, or $0.37 diluted earnings per share, compared to $4.8 million, or $0.21 diluted earnings per share, for the same period in 2024[163]. - Return on average assets increased to 0.72% for the three months ended June 30, 2025, compared to 0.43% for the same period in 2024[164]. - Return on average shareholders' equity increased to 8.45% for the three months ended June 30, 2025, compared to 5.40% for the same period in 2024[164]. - Net interest income increased by $4.3 million, or 15.2%, to $32.4 million for the three months ended June 30, 2025, compared to $28.1 million for the same period in 2024[161]. - Total noninterest income decreased by $0.6 million to $4.9 million for the three months ended June 30, 2025, compared to the same period in 2024[161]. - Total noninterest expense increased by $1.9 million, or 6.8%, for the three months ended June 30, 2025, and by $3.6 million, or 6.8%, for the six months ended June 30, 2025 compared to the same periods in 2024[182]. Asset and Loan Growth - As of June 30, 2025, Carter Bankshares, Inc. has total assets of $4.8 billion[150]. - Total assets increased by $124.9 million to $4.8 billion at June 30, 2025, compared to December 31, 2024[185]. - Total portfolio loans increased by $122.3 million, or 6.8%, on an annualized basis, reaching $3.747 billion at June 30, 2025, compared to $3.625 billion at December 31, 2024[198]. - Average loans grew by $202.2 million and $172.1 million for the three and six months ended June 30, 2025, respectively, compared to the same periods in 2024[171]. - The commercial real estate (CRE) loans represented 53.4% of total portfolio loans at June 30, 2025, up from 51.6% at December 31, 2024[199]. Credit Quality and Losses - The significant credit relationship placed on nonaccrual status has an aggregate principal balance of $235.5 million as of June 30, 2025[156]. - The company is dedicated to resolving nonaccrual loans, primarily related to a single large credit relationship[155]. - The company reported a total negative impact of $78.6 million on interest income due to the nonaccrual loans since their placement[157]. - Nonperforming loans decreased by $8.8 million to $250.6 million compared to December 31, 2024, with nonperforming loans as a percentage of total portfolio loans at 6.69% compared to 7.15%[161]. - The allowance for credit losses to total portfolio loans ratio was 1.90% compared to 2.09%[161]. - The recovery provision for credit losses was $2.3 million and $4.4 million for the three and six months ended June 30, 2025, respectively, compared to provisions of $491 thousand and $507 thousand for the same periods in 2024[178]. Deposits and Funding - Total deposits increased by $68.8 million, or 3.3%, on an annualized basis, to $4.2 billion at June 30, 2025, compared to December 31, 2024[167]. - The composition of deposits showed a 10.74% increase in interest-bearing demand deposits, rising to $805.0 million as of June 30, 2025[232]. - Approximately 18.5% of total deposits were uninsured deposits exceeding the standard FDIC insurance coverage limit[240]. - Noninterest-bearing deposits represented 15.0% of total deposits, while certificates of deposits (CDs) accounted for 44.8%[234]. - FHLB borrowings increased by $43.5 million to $113.5 million from $70.0 million at December 31, 2024, primarily to fund loan growth[237]. Interest Income and Expense - Interest income has been negatively impacted by $6.7 million and $9.1 million during the three months ended June 30, 2025 and 2024, respectively[157]. - Interest expense decreased by $1.1 million and $0.9 million for the three and six months ended June 30, 2025, respectively[173]. - The net interest margin (GAAP) improved by 25 basis points for the three months and 18 basis points for the six months ended June 30, 2025, compared to the same periods in 2024[172]. Capital and Liquidity - Total capital increased by $21.3 million to $405.6 million, driven by net income of $17.5 million and an increase in other comprehensive income[247]. - The leverage ratio for Carter Bankshares, Inc. was 9.46% at June 30, 2025, compared to 9.56% at December 31, 2024[247]. - Total liquidity sources reached $1.41 billion as of June 30, 2025, compared to $1.39 billion at December 31, 2024[246]. - The ratio of highly liquid assets to total assets was 10.3% at June 30, 2025, down from 10.9% at December 31, 2024[246]. Strategic Initiatives - The company aims to shift from restructuring the balance sheet to pursuing a prudent growth strategy, focusing on organic growth and opportunistic acquisitions[154]. - The company introduced new guiding principles in June 2023 to align operations with its brand strategy, emphasizing relationship building and trust[153]. - The Company has established transaction, relationship, and specific loan segment limits in its loan policy to manage credit risk[202]. Market and Economic Conditions - The company expects market values of its intermediate and long-term maturity holdings to continue fluctuating due to changes in treasury yields[193]. - The economic value of equity modeling shows a projected decrease of 8.0% in economic value of equity with a 200 basis points increase in interest rates as of June 30, 2025[267]. - The earnings simulation results indicate a liability-sensitive position, with a projected decrease in net interest income of 0.5% in a 200 basis points increase in interest rates as of June 30, 2025[263].

Core Insights - Carter Bankshares reported Q2 2025 earnings with an EPS (GAAP) of $0.37, exceeding the consensus estimate of $0.34, marking a 76.2% increase year-over-year from $0.21 in Q2 2024 [1][2][5] - The bank's net interest margin improved to 2.82% (non-GAAP), up from 2.56% in Q2 2024, reflecting better credit metrics despite ongoing revenue challenges [2][8] - Nonperforming loans decreased to $250.6 million from $300.2 million in Q2 2024, with a significant portion attributed to the Justice Entities relationship [6][5] Financial Metrics - EPS (GAAP) for Q2 2025 was $0.37, compared to an estimate of $0.34 and $0.21 in Q2 2024, showing a year-over-year increase of 76.2% [2] - Net interest margin (non-GAAP) rose to 2.82%, an increase of 0.26 percentage points from Q2 2024 [2] - Pre-tax pre-provision income (non-GAAP) reached $8.0 million, up 29.0% from $6.2 million in Q2 2024 [2] - The efficiency ratio (GAAP) improved to 78.63% from 81.62% in Q2 2024 [2][9] Business Overview - Carter Bankshares operates as a regional bank in Virginia and North Carolina, focusing on commercial real estate loans, residential mortgages, and deposit products [3] - The bank aims to differentiate itself through brand enhancement and personalized customer relationships [3][4] - Recent strategic initiatives include expanding market presence, attracting new commercial loan clients, and returning capital to shareholders via stock buybacks [4] Operational Highlights - Commercial real estate loans increased to $2.00 billion from $1.80 billion in Q2 2024, indicating growth momentum [7] - Deposit growth reached $4.22 billion, up from $3.88 billion, largely due to a branch acquisition in North Carolina [7] - Noninterest income (GAAP) fell 11.3% year-over-year to $4.9 million, impacted by the absence of a one-time gain recorded in Q1 2025 [9] Strategic Developments - The bank completed the acquisition of two branch offices from First Reliance Bank, enhancing its presence in North Carolina [10] - Stock repurchases totaled 547,332 shares at an average price of $16.70, costing $9.1 million out of a $20 million approved program [10] - Management expressed confidence in a healthy loan pipeline, particularly in construction lending, expected to contribute significantly in the next 12 to 18 months [11] Future Outlook - Key issues for investors include the resolution of the Justice Entities loan, organic deposit growth trends, and expense control [12] - The bank remains sensitive to Federal Reserve rate changes, with expectations for benefits from additional rate cuts [11]

Group 1 - Carter Bankshares, Inc. (CARE) shares have increased by 3.4% over the past four weeks, closing at $17.93, with a mean price target of $22.67 indicating a potential upside of 26.4% [1] - The mean estimate includes three short-term price targets with a standard deviation of $1.53, where the lowest estimate of $21.00 suggests a 17.1% increase, and the highest estimate of $24.00 indicates a 33.9% increase [2] - Analysts show a strong consensus that CARE will report better earnings than previously estimated, with a positive trend in earnings estimate revisions correlating with potential stock price increases [4][11] Group 2 - The Zacks Consensus Estimate for CARE has increased by 10.4% due to one upward revision in earnings estimates over the last 30 days, with no negative revisions [12] - CARE holds a Zacks Rank 2 (Buy), placing it in the top 20% of over 4,000 ranked stocks based on earnings estimate factors, indicating strong potential for upside [13] - While the consensus price target may not be a reliable indicator of the extent of potential gains, it does provide a directional guide for price movement [14]

Core Insights - Carter Bankshares, Inc. reported a revenue of $37.44 million for the quarter ended June 2025, reflecting a year-over-year increase of 10.7% [1] - The earnings per share (EPS) for the quarter was $0.41, a significant rise from $0.21 in the same quarter last year, resulting in an EPS surprise of +32.26% against the consensus estimate of $0.31 [1] - The reported revenue was slightly below the Zacks Consensus Estimate of $37.77 million, showing a surprise of -0.88% [1] Financial Performance Metrics - The efficiency ratio for the quarter was reported at 78.6%, which is higher than the estimated average of 76.9% by two analysts [4] - The net interest margin stood at 2.8%, matching the average estimate based on two analysts [4] - Total noninterest income was reported at $4.91 million, which fell short of the two-analyst average estimate of $5.41 million [4] Stock Performance - Over the past month, shares of Carter Bankshares have returned +3.9%, compared to a +5.7% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), indicating it may perform in line with the broader market in the near term [3]