Group 1 - Carter Bankshares, Inc. reported quarterly earnings of $0.41 per share, exceeding the Zacks Consensus Estimate of $0.31 per share, and showing an increase from $0.21 per share a year ago, resulting in an earnings surprise of +32.26% [1] - The company posted revenues of $37.44 million for the quarter ended June 2025, which was below the Zacks Consensus Estimate by 0.88%, but an increase from $33.82 million year-over-year [2] - Over the last four quarters, Carter Bankshares has surpassed consensus EPS estimates three times, but has only topped consensus revenue estimates once [2] Group 2 - The stock's immediate price movement will depend on management's commentary during the earnings call, as Carter Bankshares shares have gained about 1.3% year-to-date, compared to the S&P 500's gain of 8.1% [3] - The current consensus EPS estimate for the upcoming quarter is $0.34 on revenues of $39.64 million, and for the current fiscal year, it is $1.30 on revenues of $155.48 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 23% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

[Q2 2025 Financial Results Overview](index=1&type=section&id=Q2%202025%20Financial%20Results%20Overview) Carter Bankshares reported Q2 2025 net income and net interest income growth year-over-year, with slight sequential declines in net income and EPS [Quarterly and Year-to-Date Performance](index=1&type=section&id=Quarterly%20and%20Year-to-Date%20Performance) The company reported mixed quarterly results with year-over-year growth but sequential declines in net income and diluted EPS Quarterly and Year-to-Date Financial Performance (Millions USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :-------------------------- | :------ | :------ | :------ | :------- | :------- | | Net Income (millions) | $8.5 | $9.0 | $4.8 | $17.5 | $10.6 | | Diluted EPS | $0.37 | $0.39 | $0.21 | $0.76 | $0.46 | | Net Interest Income (millions) | $32.4 | $30.1 | $28.1 | $62.5 | $56.5 | | Pre-tax Pre-provision Income (millions) | $8.0 | $9.0 | $6.2 | $17.0 | $13.4 | - The company completed the acquisition of two leased branch facilities, acquiring **$55.9 million of deposits** and welcoming 10 new associates[1](index=1&type=chunk) - A stock repurchase program was announced to purchase up to **$20.0 million of common stock**; **547,332 shares** were repurchased for **$9.1 million** at a weighted average cost of **$16.70 per share** as of June 30, 2025[2](index=2&type=chunk) - Loans related to Justice Entities negatively impacted interest income by **$6.7 million** in Q2 2025; aggregate curtailment payments of **$66.4 million** reduced the NPL balance from **$301.9 million** (June 30, 2023) to **$235.5 million** (June 30, 2025)[3](index=3&type=chunk)[4](index=4&type=chunk) [CEO Commentary and Strategic Highlights](index=2&type=section&id=CEO%20Commentary%20and%20Strategic%20Highlights) CEO highlighted strong fundamentals, margin expansion, and loan growth, strategically positioning the company for future interest rate shifts - The company experienced margin expansion and solid loan growth, with an annualized loan growth of **6.5%** reflecting momentum in commercial lending[6](index=6&type=chunk) - Deposit balances showed modest growth, and the cost of deposits continued to decline, positioning the company to benefit if the Federal Reserve reduces short-term interest rates[6](index=6&type=chunk) - The purchase of two leased branch facilities in North Carolina added **$55.9 million of deposits** and new associates[7](index=7&type=chunk) - Approximately **46%** of the **$20.0 million** stock repurchase program has been utilized as of June 30, 2025, deemed the most prudent way to deliver shareholder value given the strong capital position[7](index=7&type=chunk) [Key Financial and Operational Metrics](index=2&type=section&id=Key%20Financial%20and%20Operational%20Metrics) Q2 2025 metrics show positive trends in loan and deposit growth, net interest income, net interest margin, and asset quality Key Financial and Operational Metrics | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | YoY Change (Q2 2025 vs Q2 2024) | | :-------------------------------- | :------------ | :------------- | :------------ | :------------------------------ | | Total portfolio loans | $3.7 billion | $3.6 billion | $3.5 billion | +5.6% ($197.6 million) | | Allowance for credit losses to total portfolio loans | 1.90% | 1.99% | 2.72% | -82 bps | | Total deposits | $4.2 billion | $4.2 billion | $3.9 billion | +8.8% ($340.9 million) | | Net interest income | $32.4 million | $30.1 million | $28.1 million | +15.2% ($4.3 million) | | Net interest margin (FTE) | 2.82% | 2.70% | 2.56% | +26 bps | | NPLs to total portfolio loans | 6.69% | 7.09% | 8.46% | -177 bps | | Efficiency ratio | 78.63% | 75.71% | 81.62% | -299 bps | | Adjusted efficiency ratio (non-GAAP) | 75.55% | 78.67% | 81.33% | -578 bps | [Operating Highlights](index=3&type=section&id=Operating%20Highlights) This section details the company's Q2 operating performance across credit quality, net interest income, noninterest income, and expenses [Credit Quality](index=3&type=section&id=Credit%20Quality) Q2 2025 credit quality improved, marked by decreased nonperforming loans and a lower NPLs to total portfolio loans ratio due to curtailment payments Credit Quality Metrics (Millions USD) | Metric | June 30, 2025 | March 31, 2025 | June 30, 2024 | | :-------------------------------- | :------------ | :------------- | :------------ | | NPLs to total portfolio loans | 6.69% | 7.09% | 8.46% | | Total NPLs (millions) | $250.6 | $261.4 | $300.2 | | Justice Entities NPL balance (millions) | $235.5 | $245.1 | $294.1 | | Specific reserves for Justice Entities (millions) | $24.0 | $27.1 | N/A | | (Recovery) Provision for Credit Losses (millions) | $(2.3) | $(2.0) | $0.5 | | Recovery for Unfunded Commitments (thousands) | $(335) | $(114) | $(236) | - The decrease in NPLs during Q2 2025 was primarily due to **$9.5 million** of curtailment payments from the Bank's largest NPL credit relationship and a **$1.2 million** decline in nonaccrual residential mortgages[9](index=9&type=chunk) - The Justice Entities NPL relationship represents **94.0%** of total NPLs and **6.3%** of total portfolio loans at June 30, 2025[10](index=10&type=chunk) [Net Interest Income](index=3&type=section&id=Net%20Interest%20Income) Net interest income and margin significantly increased in Q2 2025, driven by lower funding costs and higher asset yields, benefiting from rate cuts Net Interest Income and Margin Performance (Millions USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | QoQ Change (Q2 2025 vs Q1 2025) | YoY Change (Q2 2025 vs Q2 2024) | | :-------------------------------- | :------ | :------ | :------ | :------------------------------ | :------------------------------ | | Net Interest Income (millions) | $32.4 | $30.1 | $28.1 | +7.4% ($2.2 million) | +15.2% ($4.3 million) | | Net Interest Margin (FTE) | 2.82% | 2.70% | 2.56% | +12 bps | +26 bps | | Total interest-bearing deposit costs | 2.70% | 2.86% | N/A | -16 bps | N/A | | Average interest-bearing deposits (millions) | N/A | N/A | N/A | +$31.8 million | N/A | | Total average borrowings (millions) | $119.5 | $80.3 | N/A | +$39.2 million | N/A | - The increase in net interest income was primarily due to **14 basis point** and **30 basis point** declines in funding costs and one basis point and four basis point increases in the yield on average interest-earning assets compared to Q1 2025 and Q2 2024, respectively[14](index=14&type=chunk) - Lower interest-bearing funding costs were positively impacted by the Federal Reserve's cut of short-term interest rates by **100 basis points** from September 2024 to December 2024[16](index=16&type=chunk) [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Noninterest income decreased sequentially due to a Q1 BOLI gain and year-over-year from lower other noninterest income and insurance commissions Total Noninterest Income (Millions USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | QoQ Change (Q2 2025 vs Q1 2025) | YoY Change (Q2 2025 vs Q2 2024) | | :-------------------- | :------ | :------ | :------ | :------------------------------ | :------------------------------ | | Total Noninterest Income (millions) | $4.9 | $6.9 | $5.5 | -28.9% ($2.0 million) | -11.3% ($0.6 million) | - The primary driver for the sequential decrease was a **$1.9 million** gain on a BOLI death benefit recorded in other noninterest income in Q1 2025[17](index=17&type=chunk) - Significant year-over-year decreases included **$0.3 million** in other noninterest income and **$0.2 million** in insurance commissions due to lower activity[17](index=17&type=chunk) [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Noninterest expense rose due to higher other noninterest expenses, professional fees, and salaries, influenced by a BOLI exchange fee and branch acquisition Total Noninterest Expense (Millions USD) | Metric | Q2 2025 | Q1 2025 | Q2 2024 | QoQ Change (Q2 2025 vs Q1 2025) | YoY Change (Q2 2025 vs Q2 2024) | | :-------------------- | :------ | :------ | :------ | :------------------------------ | :------------------------------ | | Total Noninterest Expense (millions) | $29.3 | $28.0 | $27.4 | +4.5% ($1.3 million) | +$1.9 million | - Primary drivers for the sequential increase were increases in other noninterest expenses (**$0.3 million** 1035 exchange fee on BOLI), professional and legal fees (**$0.4 million**), and salaries and employee benefits (**$0.4 million**), due to higher medical expenses, an extra day, and ten new associates from the Branch Purchase[18](index=18&type=chunk) - Occupancy expense, net, increased **$0.4 million** year-over-year primarily due to additional software and maintenance expenses and higher depreciation expense as a result of the Branch Purchase[19](index=19&type=chunk) [Financial Condition](index=4&type=section&id=Financial%20Condition) This section reviews the company's asset composition, liabilities (deposits and borrowings), and overall capitalization and liquidity position [Assets](index=4&type=section&id=Assets) Total assets grew to **$4.8 billion**, driven by increases in cash, available-for-sale securities, and portfolio loans, especially commercial real estate Asset Overview (Millions USD) | Metric | June 30, 2025 | March 31, 2025 | QoQ Change | | :-------------------------------- | :------------ | :------------- | :--------- | | Total Assets (millions) | $4,784.1 | $4,700.3 | +$83.8 | | Cash and Due From Banks (millions) | $99.9 | $89.0 | +$10.9 | | Available-for-Sale Securities (millions) | $755.2 | $745.4 | +$9.8 | | Total Portfolio Loans (millions) | $3,747.1 | $3,687.5 | +$59.6 | - The increase in portfolio loans was driven by growth of **$84.9 million** in commercial real estate loans and **$12.9 million** in residential mortgages[21](index=21&type=chunk) - These increases were partially offset by decreases of **$15.7 million** in construction, **$12.1 million** in commercial and industrial, **$9.5 million** in other, and **$0.8 million** in other consumer loans[21](index=21&type=chunk) [Liabilities (Deposits & Borrowings)](index=5&type=section&id=Liabilities%20(Deposits%20%26%20Borrowings)) Total deposits increased due to a branch acquisition, though core deposits declined, while FHLB borrowings rose to support loan growth Liabilities Overview (Millions USD) | Metric | June 30, 2025 | March 31, 2025 | QoQ Change | | :-------------------------------- | :------------ | :------------- | :--------- | | Total Deposits (millions) | $4,222.2 | $4,200.9 | +$21.3 | | FHLB Borrowings (millions) | $113.5 | $55.0 | +$58.5 | - Total deposits included **$55.9 million** related to the Branch Purchase; excluding these, total deposits decreased **$34.6 million**, primarily due to large commercial depositors repositioning funds[22](index=22&type=chunk) - Approximately **81.5%** of total deposits were insured under standard FDIC limits, with **18.5%** being uninsured deposits over the limit at June 30, 2025[23](index=23&type=chunk) [Capitalization and Liquidity](index=5&type=section&id=Capitalization%20and%20Liquidity) The company maintained a well-capitalized status with substantial liquidity, including significant borrowing availability and unpledged investment securities Capital Ratios | Capital Ratio | June 30, 2025 | March 31, 2025 | | :---------------------- | :------------ | :------------- | | Tier 1 Capital ratio | 10.87% | 11.01% | | Leverage ratio | 9.46% | 9.67% | | Total Risk-Based Capital ratio | 12.12% | 12.27% | - The Company has borrowing availability at the FHLB of approximately **$1.2 billion**, with eligibility to borrow up to an additional **$732.0 million**[25](index=25&type=chunk) - Additional funding sources include unsecured facilities totaling **$30.0 million**, a fully secured facility of **$45.0 million** with other correspondent financial institutions, access to the institutional CD market, and **$438.8 million** in unpledged available-for-sale investment securities[25](index=25&type=chunk) [About Carter Bankshares, Inc.](index=5&type=section&id=About%20Carter%20Bankshares%2C%20Inc.) This section provides a brief overview of Carter Bankshares, Inc., its services, asset size, and branch network [Company Overview](index=5&type=section&id=Company%20Overview) Carter Bankshares, Inc. is a Martinsville, VA-based holding company offering diverse banking services with **$4.8 billion** in assets and 64 branches - Headquartered in Martinsville, VA, Carter Bankshares, Inc. (NASDAQ: CARE) provides commercial banking, consumer banking, mortgage, and services through its subsidiary Carter Bank[26](index=26&type=chunk) - The Company has **$4.8 billion** in assets and operates **64 branches** in Virginia and North Carolina[26](index=26&type=chunk) [Important Notes and Disclaimers](index=6&type=section&id=Important%20Notes%20and%20Disclaimers) This section outlines important considerations regarding non-GAAP financial measures and forward-looking statements, including associated risks [Important Note Regarding Non-GAAP Financial Measures](index=6&type=section&id=Important%20Note%20Regarding%20Non-GAAP%20Financial%20Measures) This section clarifies the use of non-GAAP financial measures for evaluating operating results, noting they are not GAAP alternatives and require careful consideration - Non-GAAP financial measures are used to enhance the ability of investors and management to evaluate and compare the Company's operating results and understand its underlying business, operational performance, and trends[27](index=27&type=chunk) - These measures should not be considered as an alternative to GAAP or more relevant than GAAP results, nor are they necessarily comparable with similar non-GAAP measures presented by other companies[27](index=27&type=chunk) - Investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information[27](index=27&type=chunk) [Important Note Regarding Forward-Looking Statements](index=6&type=section&id=Important%20Note%20Regarding%20Forward-Looking%20Statements) This section disclaims forward-looking statements, highlighting inherent risks and uncertainties that could cause actual results to differ materially - Forward-looking statements are not guarantees of future results or performance and involve certain risks, uncertainties, and assumptions that are difficult to predict and often beyond the Company's control[29](index=29&type=chunk) - Key risks include market interest rates, inflation, changes in government policies, cyber-security threats, the ability to resolve nonperforming assets, changes in liquidity and capital positions, concentrations of loans (especially CRE), and regulatory supervision[29](index=29&type=chunk)[30](index=30&type=chunk) - Other factors include general economic conditions, changes in customer behaviors, failure to attract or retain key associates, and potential turbulence in financial and real estate markets[32](index=32&type=chunk) [Consolidated Financial Data Tables](index=9&type=section&id=Consolidated%20Financial%20Data%20Tables) This section provides detailed consolidated financial data tables, including balance sheets, income statements, and net interest margin analyses [Balance Sheets](index=9&type=section&id=BALANCE%20SHEETS) This table presents consolidated balance sheet data for June 30, 2025, March 31, 2025, and June 30, 2024, detailing assets, liabilities, and equity Balance Sheets (Dollars in Thousands, except per share data) | | June 30, | | March 31, | | June 30, | | --- | --- | --- | --- | --- | --- | | (Dollars in Thousands, except per share data) | 2025 | | 2025 | | 2024 | | ASSETS | (unaudited) | | (unaudited) | | (unaudited) | | Cash and Due From Banks, including Interest-Bearing Deposits of $51,890 at June 30, 2025, $46,490 at March 31, 2025 and $21,364 at June 30, 2024 | $99,905 | | $88,999 | | $61,746 | | Securities Available-for-Sale, at Fair Value | 755,212 | | 745,390 | | 746,325 | | Equity Securities | 10,200 | | 10,178 | | 5,063 | | Loans Held-for-Sale | 246 | | — | | — | | Portfolio Loans | 3,747,121 | | 3,687,495 | | 3,549,521 | | Allowance for Credit Losses | (71,023) | | (73,518) | | (96,686) | | Portfolio Loans, net | 3,676,098 | | 3,613,977 | | 3,452,835 | | Bank Premises and Equipment, net | 72,105 | | 73,944 | | 73,347 | | Goodwill | 1,193 | | — | | — | | Core Deposit Intangible | 1,073 | | — | | — | | Other Real Estate Owned, net | 1,657 | | 577 | | 2,501 | | Federal Home Loan Bank Stock, at Cost | 8,653 | | 5,875 | | 14,467 | | Bank Owned Life Insurance | 48,365 | | 48,224 | | 58,828 | | Other Assets | 109,384 | | 113,123 | | 117,397 | | Total Assets | $4,784,091 | | $4,700,287 | | $4,532,509 | | LIABILITIES | | | | | | | Deposits: | | | | | | | Noninterest-Bearing Demand | 635,192 | | 631,714 | | 653,296 | | Interest-Bearing Demand | 805,013 | | 794,059 | | 565,465 | | Money Market | 544,764 | | 528,381 | | 500,475 | | Savings | 343,659 | | 353,394 | | 399,833 | | Certificates of Deposit | 1,893,611 | | 1,893,379 | | 1,762,232 | | Total Deposits | 4,222,239 | | 4,200,927 | | 3,881,301 | | Federal Home Loan Bank Borrowings | 113,500 | | 55,000 | | 238,000 | | Reserve for Unfunded Loan Commitments | 2,737 | | 3,072 | | 2,914 | | Other Liabilities | 39,980 | | 39,522 | | 45,883 | | Total Liabilities | 4,378,456 | | 4,298,521 | | 4,168,098 | | SHAREHOLDERS' EQUITY | | | | | | | Common Stock, Par Value $1.00 Per Share, Authorized 100,000,000 Shares; Outstanding- 22,669,834 shares at June 30, 2025, 23,161,993 shares at March 31, 2025 and 23,072,750 shares at June 30, 2024 | 22,670 | | 23,162 | | 23,073 | | Additional Paid-in Capital | 84,146 | | 92,418 | | 91,274 | | Retained Earnings | 351,069 | | 342,559 | | 319,697 | | Accumulated Other Comprehensive Loss | (52,250) | | (56,373) | | (69,633) | | Total Shareholders' Equity | 405,635 | | 401,766 | | 364,411 | | Total Liabilities and Shareholders' Equity | $4,784,091 | | $4,700,287 | | $4,532,509 | | PERFORMANCE RATIOS | | | | | | | Return on Average Assets (QTD Annualized) | 0.72 % | | 0.78 % | | 0.43 % | | Return on Average Shareholders' Equity (QTD Annualized) | 8.45 % | | 9.27 % | | 5.40 % | | Return on Average Shareholders' Equity (YTD Annualized) | 8.85 % | | 9.27 % | | 5.99 % | | Allowance for Credit Losses to Total Portfolio Loans | 1.90 % | | 1.99 % | | 2.72 % | | Portfolio Loans to Deposit Ratio | 88.75 % | | 87.78 % | | 91.45 % | | Shareholders' Equity to Assets | 8.48 % | | 8.55 % | | 8.04 % | | CAPITALIZATION RATIOS | | | | | | | Tier 1 Leverage Ratio | 9.46 % | | 9.67 % | | 9.43 % | | Risk-Based Capital - Tier 1 | 10.87 % | | 11.01 % | | 10.95 % | | Risk-Based Capital - Total | 12.12 % | | 12.27 % | | 12.22 % | [Income Statements](index=10&type=section&id=INCOME%20STATEMENTS) This table provides consolidated income statement data for quarterly and year-to-date periods, detailing interest income, expenses, and net income Income Statements (Dollars in Thousands, except per share data) | | | June 30, | | March 31, | | June 30, | | June 30, | | June 30, | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (Dollars in Thousands, except per share data) | | 2025 | | 2025 | | 2024 | | 2025 | | 2024 | | | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | | (unaudited) | | Interest Income | $ | 57,747 | $ | 56,007 | $ | 54,583 | $ | 113,754 | $ | 108,632 | | Interest Expense | | 25,388 | | 25,869 | | 26,491 | | 51,257 | | 52,121 | | NET INTEREST INCOME | | 32,359 | | 30,138 | | 28,092 | | 62,497 | | 56,511 | | (Recovery) Provision for Credit Losses | | (2,330) | | (2,025) | | 491 | | (4,355) | | 507 | | Recovery for Unfunded Commitments | | (335) | | (114) | | (236) | | (449) | | (279) | | NET INTEREST INCOME AFTER (RECOVERY) PROVISION FOR CREDIT LOSSES | | 35,024 | | 32,277 | | 27,837 | | 67,301 | | 56,283 | | NONINTEREST INCOME | | | | | | | | | | | | Gains on Sales of Securities, net | | — | | — | | 36 | | — | | 36 | | Service Charges, Commissions and Fees | | 1,765 | | 1,874 | | 1,852 | | 3,639 | | 3,727 | | Debit Card Interchange Fees | | 1,942 | | 2,104 | | 1,933 | | 4,046 | | 4,019 | | Insurance Commissions | | 714 | | 344 | | 934 | | 1,058 | | 1,548 | | Bank Owned Life Insurance Income | | 357 | | 341 | | 365 | | 698 | | 713 | | Other | | 130 | | 2,238 | | 413 | | 2,368 | | 535 | | Total Noninterest Income | | 4,908 | | 6,901 | | 5,533 | | 11,809 | | 10,578 | | NONINTEREST EXPENSE | | | | | | | | | | | | Salaries and Employee Benefits | | 14,082 | | 13,657 | | 14,216 | | 27,739 | | 28,416 | | Occupancy Expense, net | | 4,230 | | 4,472 | | 3,793 | | 8,702 | | 7,541 | | FDIC Insurance Expense | | 1,436 | | 1,430 | | 1,566 | | 2,866 | | 3,253 | | Other Taxes | | 922 | | 947 | | 894 | | 1,869 | | 1,802 | | Advertising Expense | | 708 | | 911 | | 528 | | 1,619 | | 885 | | Telephone Expense | | 307 | | 304 | | 342 | | 611 | | 759 | | Professional and Legal Fees | | 1,921 | | 1,230 | | 1,542 | | 3,151 | | 3,055 | | Data Processing | | 1,395 | | 1,444 | | 1,234 | | 2,839 | | 2,125 | | Debit Card Expense | | 991 | | 992 | | 808 | | 1,983 | | 1,564 | | Other | | 3,312 | | 2,655 | | 2,523 | | 5,967 | | 4,303 | | Total Noninterest Expense | | 29,304 | | 28,042 | | 27,446 | | 57,346 | | 53,703 | | Income Before Income Taxes | | 10,628 | | 11,136 | | 5,924 | | 21,764 | | 13,158 | | Income Tax Provision | | 2,118 | | 2,183 | | 1,121 | | 4,301 | | 2,544 | | Net Income | $ | 8,510 | $ | 8,953 | $ | 4,803 | $ | 17,463 | $ | 10,614 | | Shares Outstanding, at End of Period | | 22,669,834 | | 23,161,993 | | 23,072,750 | | 22,669,834 | | 23,072,750 | | Average Shares Outstanding-Basic & Diluted | | 22,805,881 | | 22,873,800 | | 22,826,510 | | 22,839,412 | | 22,798,476 | | PER SHARE DATA | | | | | | | | | | | | Basic Earnings Per Common Share* | $ | 0.37 | $ | 0.39 | $ | 0.21 | $ | 0.76 | $ | 0.46 | | Diluted Earnings Per Common Share* | $ | 0.37 | $ | 0.39 | $ | 0.21 | $ | 0.76 | $ | 0.46 | | Book Value | $ | 17.89 | $ | 17.35 | $ | 15.79 | $ | 17.89 | $ | 15.79 | | Market Value | $ | 17.34 | $ | 16.18 | $ | 15.12 | $ | 17.34 | $ | 15.12 | | PROFITABILITY RATIOS (GAAP) | | | | | | | | | | | | Net Interest Margin | | 2.80 % | | 2.68 % | | 2.55 % | | 2.74 % | | 2.56 % | | Efficiency Ratio | | 78.63 % | | 75.71 % | | 81.62 % | | 77.18 % | | 80.05 % | | PROFITABILITY RATIOS (Non-GAAP) | | | | | | | | | | | | 3 Net Interest Margin (FTE) | | 2.82 % | | 2.70 % | | 2.56 % | | 2.76 % | | 2.58 % | | 4 Adjusted Efficiency Ratio (Non-GAAP) | | 75.55 % | | 78.67 % | | 81.33 % | | 77.06 % | | 80.17 % | [Net Interest Margin (FTE) - QTD Averages](index=11&type=section&id=NET%20INTEREST%20MARGIN%20(FTE)%20(QTD%20AVERAGES)) This table details average balances, income/expense, and rates for interest-earning assets and liabilities on an FTE basis for quarterly periods Net Interest Margin (FTE) - QTD Averages (Dollars in Thousands) | | Average | | June 30, 2025 Income/ | | | Average | March 31, 2025 Income/ | | Average | June 30, 2024 Income/ | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (Dollars in Thousands) | Balance | | Expense | Rate | | Balance | Expense | Rate | Balance | Expense | Rate | | ASSETS | | | | | | | | | | | | | Interest-Bearing Deposits with Banks | $58,006 | $643 | | 4.45 % | $67,387 | $748 | 4.50 % | $31,083 | $420 | 5.43 % | | 3 Tax-Free Investment Securities | 11,622 | 85 | | 2.93 % | 11,662 | 84 | 2.92 % | 11,779 | 86 | 2.94 % | | Taxable Investment Securities | 818,588 | 6,796 | | 3.33 % | 807,891 | 6,655 | 3.34 % | 841,787 | 7,721 | 3.69 % | | Total Securities | 830,210 | 6,881 | | 3.32 % | 819,553 | 6,739 | 3.33 % | 853,566 | 7,807 | 3.68 % | | 3 Tax-Free Loans | 89,362 | 732 | | 3.29 % | 93,480 | 761 | 3.30 % | 105,487 | 854 | 3.26 % | | Taxable Loans | 3,648,629 | 49,522 | | 5.44 % | 3,567,184 | 47,825 | 5.44 % | 3,430,330 | 45,395 | 5.32 % | | Total Loans | 3,737,991 | 50,254 | | 5.39 % | 3,660,664 | 48,586 | 5.38 % | 3,535,817 | 46,249 | 5.26 % | | Federal Home Loan Bank Stock | 8,428 | 140 | | 6.66 % | 6,499 | 112 | 6.99 % | 16,611 | 304 | 7.36 % | | Total Interest-Earning Assets | 4,634,635 | 57,918 | | 5.01 % | 4,554,103 | 56,185 | 5.00 % | 4,437,077 | 54,780 | 4.97 % | | Noninterest Earning Assets | 126,303 | | | | 121,766 | | | 91,648 | | | | Total Assets | $4,760,938 | | | | $4,675,869 | | | $4,528,725 | | | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | | | Interest-Bearing Demand | $805,749 | $3,661 | | 1.82 % | $744,895 | $3,386 | 1.84 % | $532,700 | $1,689 | 1.28 % | | Money Market | 536,366 | 3,510 | | 2.62 % | 525,463 | 3,319 | 2.56 % | 510,828 | 3,926 | 3.09 % | | Savings | 347,863 | 129 | | 0.15 % | 355,123 | 113 | 0.13 % | 411,457 | 145 | 0.14 % | | Certificates of Deposit | 1,885,486 | 16,759 | | 3.57 % | 1,918,195 | 18,205 | 3.85 % | 1,731,358 | 16,963 | 3.94 % | | Total Interest-Bearing Deposits | 3,575,464 | 24,059 | | 2.70 % | 3,543,676 | 25,023 | 2.86 % | 3,186,343 | 22,723 | 2.87 % | | Federal Home Loan Bank Borrowings | 108,753 | 1,186 | | 4.37 % | 69,833 | 702 | 4.08 % | 283,154 | 3,675 | 5.22 % | | Other Borrowings | 10,713 | 143 | | 5.35 % | 10,417 | 144 | 5.61 % | 8,460 | 93 | 4.42 % | | Total Borrowings | 119,466 | 1,329 | | 4.46 % | 80,250 | 846 | 4.28 % | 291,614 | 3,768 | 5.20 % | | Total Interest-Bearing Liabilities | 3,694,930 | 25,388 | | 2.76 % | 3,623,926 | 25,869 | 2.90 % | 3,477,957 | 26,491 | 3.06 % | | Noninterest-Bearing Liabilities | 662,168 | | | | 660,437 | | | 693,336 | | | | Shareholders' Equity | 403,840 | | | | 391,506 | | | 357,432 | | | | Total Liabilities and Shareholders' Equity | $4,760,938 | | | | $4,675,869 | | | $4,528,725 | | | | 3 Net Interest Income | | $32,530 | | | | $30,316 | | | | $28,289 | | | Net Interest Margin 3 | | | | 2.82 % | | | 2.70 % | | | 2.56 % | [Net Interest Margin (FTE) - YTD Averages](index=12&type=section&id=NET%20INTEREST%20MARGIN%20(FTE)%20(YTD%20AVERAGES)) This table presents average balances, income/expense, and rates for interest-earning assets and liabilities on an FTE basis for year-to-date periods Net Interest Margin (FTE) - YTD Averages (Dollars in Thousands) | | | Average | | Six Months Ended June 30, 2025 Income/ | | Average | Income/ | Six Months Ended June 30, 2024 | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | (Dollars in Thousands) | | Balance | | Expense | Rate | Balance | Expense | | Rate | | ASSETS | | | | | | | | | | | Interest-Bearing Deposits with Banks | $ | 62,670 | $ | 1,391 | 4.48 % | $27,606 | $ | 755 | 5.50 % | | 3 Tax-Free Investment Securities | | 11,642 | | 169 | 2.93 % | 11,799 | | 171 | 2.91 % | | Taxable Investment Securities | | 813,269 | | 13,451 | 3.34 % | 847,664 | | 15,464 | 3.67 % | | Total Securities | | 824,911 | | 13,620 | 3.33 % | 859,463 | | 15,635 | 3.66 % | | 3 Tax-Free Loans | | 91,410 | | 1,493 | 3.29 % | 108,479 | | 1,751 | 3.25 % | | Taxable Loans | | 3,608,131 | | 97,347 | 5.44 % | 3,418,994 | | 90,212 | 5.31 % | | Total Loans | | 3,699,541 | | 98,840 | 5.39 % | 3,527,473 | | 91,963 | 5.24 % | | Federal Home Loan Bank Stock | | 7,469 | | 252 | 6.80 % | 18,507 | | 682 | 7.41 % | | Total Interest-Earning Assets | | 4,594,591 | | 114,103 | 5.01 % | 4,433,049 | | 109,035 | 4.95 % | | Noninterest Earning Assets | | 124,048 | | | | 91,409 | | | | | Total Assets | $ | 4,718,639 | | | | $4,524,458 | | | | | LIABILITIES AND SHAREHOLDERS' EQUITY | | | | | | | | | | | Interest-Bearing Demand | $ | 775,490 | $ | 7,047 | 1.83 % | $514,376 | $ | 2,801 | 1.10 % | | Money Market | | 530,944 | | 6,829 | 2.59 % | 517,862 | | 7,922 | 3.08 % | | Savings | | 351,473 | | 242 | 0.14 % | 425,616 | | 282 | 0.13 % | | Certificates of Deposit | | 1,901,751 | | 34,964 | 3.71 % | 1,683,589 | | 32,435 | 3.87 % | | Total Interest-Bearing Deposits | | 3,559,658 | | 49,082 | 2.78 % | 3,141,443 | | 43,440 | 2.78 % | | Federal Home Loan Bank Borrowings | | 89,400 | | 1,888 | 4.26 % | 324,968 | | 8,494 | 5.26 % | | Other Borrowings | | 10,566 | | 287 | 5.48 % | 8,081 | | 187 | 4.65 % | | Total Borrowings | | 99,966 | | 2,175 | 4.39 % | 333,049 | | 8,681 | 5.24 % | | Total Interest-Bearing Liabilities | | 3,659,624 | | 51,257 | 2.82 % | 3,474,492 | | 52,121 | 3.02 % | | Noninterest-Bearing Liabilities | | 661,308 | | | | 693,814 | | | | | Shareholders' Equity | | 397,707 | | | | 356,152 | | | | | Total Liabilities and Shareholders' Equity | $ | 4,718,639 | | | | $4,524,458 | | | | | 3 Net Interest Income | | | $ | 62,846 | | | $ | 56,914 | | | 3 Net Interest Margin | | | | | 2.76 % | | | | 2.58 % | [Loans and Loans Held-for-Sale](index=12&type=section&id=LOANS%20AND%20LOANS%20HELD-FOR-SALE) This table provides a detailed breakdown of the loan portfolio by category, including Commercial Real Estate, Residential Mortgages, and Construction Loans and Loans Held-for-Sale (Dollars in Thousands) | | | June 30, | | March 31, | | June 30, | | --- | --- | --- | --- | --- | --- | | (Dollars in Thousands) | | 2025 | | 2025 | | 2024 | | Commercial | | | | | | | | Commercial Real Estate | $ | 2,000,766 | $ | 1,915,863 | $ | 1,801,397 | | Commercial and Industrial | | 221,880 | | 234,024 | | 240,611 | | Total Commercial Loans | | 2,222,646 | | 2,149,887 | | 2,042,008 | | Consumer | | | | | | | | Residential Mortgages | | 814,188 | | 801,253 | | 783,903 | | Other Consumer | | 27,991 | | 28,804 | | 31,284 | | Total Consumer Loans | | 842,179 | | 830,057 | | 815,187 | | Construction | | 443,573 | | 459,285 | | 394,926 | | Other | | 238,723 | | 248,266 | | 297,400 | | Total Portfolio Loans | | 3,747,121 | | 3,687,495 | | 3,549,521 | | Loans Held-for-Sale | | 246 | | — | | — | | Total Loans | $ | 3,747,367 | $ | 3,687,495 | $ | 3,549,521 | [Asset Quality Data](index=13&type=section&id=ASSET%20QUALITY%20DATA) This table presents key asset quality metrics, including nonaccrual loans, total nonperforming assets, and various related ratios Asset Quality Data (Dollars in Thousands) | | | | | For the Periods Ended | | | | --- | --- | --- | --- | --- | --- | --- | | | | June 30, | | March 31, | | June 30, | | (Dollars in Thousands) | | 2025 | | 2025 | | 2024 | | Nonaccrual Loans | | | | | | | | Commercial Real Estate | $ | 9,613 | $ | 9,733 | $ | 611 | | Commercial and Industrial | | 1,048 | | 1,070 | | 1,084 | | Residential Mortgages | | 4,142 | | 5,326 | | 1,951 | | Other Consumer | | 29 | | 38 | | 30 | | Construction | | 207 | | 213 | | 2,426 | | Other | | 235,542 | | 245,064 | | 294,140 | | Total Nonperforming Loans | | 250,581 | | 261,444 | | 300,242 | | Other Real Estate Owned | | 1,657 | | 577 | | 2,501 | | Total Nonperforming Assets | $ | 252,238 | $ | 262,021 | $ | 302,743 | | Nonperforming Loans to Total Portfolio Loans | | 6.69 % | | 7.09 % | | 8.46 % | | Nonperforming Assets to Total Portfolio Loans plus Other Real Estate Owned | | 6.73 % | | 7.10 % | | 8.52 % | | Allowance for Credit Losses to Total Portfolio Loans | | 1.90 % | | 1.99 % | | 2.72 % | | Allowance for Credit Losses to Nonperforming Loans | | 28.34 % | | 28.12 % | | 32.20 % | | Net Loan Charge-offs QTD | $ | 165 | $ | 57 | $ | 341 | | Net Loan Charge-offs YTD | $ | 222 | $ | 57 | $ | 873 | | Net Loan Charge-offs (Annualized) to Average Portfolio Loans QTD | | 0.02 % | | 0.01 % | | 0.04 % | | Net Loan Charge-offs (Annualized) to Average Portfolio Loans YTD | | 0.01 % | | 0.01 % | | 0.05 % | [Allowance for Credit Losses](index=14&type=section&id=ALLOWANCE%20FOR%20CREDIT%20LOSSES) This table details changes in the allowance for credit losses, including provisions, charge-offs by loan category, and recoveries Allowance for Credit Losses (Dollars in Thousands) | | | | Quarter-to-Date | | | | Year-to-Date | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | June 30, | | March 31, | | June 30, | June 30, | | June 30, | | | (Dollars in Thousands) | 2025 | | 2025 | | 2024 | 2025 | | 2024 | | | Balance Beginning of Period | $ | 73,518 | $ | 75,600 | $ | 96,536 | $ | 75,600 | $ | 97,052 | | (Recovery) Provision for Credit Losses | | (2,330) | | (2,025) | | 491 | | (4,355) | | 507 | | Charge-offs: | | | | | | | | | | | Commercial Real Estate | | — | | — | | — | | — | | — | | Commercial and Industrial | | — | | 7 | | 1 | | 7 | | 19 | | Residential Mortgages | | — | | — | | 4 | | — | | 27 | | Other Consumer | | 288 | | 171 | | 488 | | 459 | | 968 | | Construction | | — | | 1 | | — | | 1 | | 156 | | Other | | — | | — | | — | | — | | — | | Total Charge-offs | | 288 | | 179 | | 493 | | 467 | | 1,170 | | Recoveries: | | | | | | | | | | | Commercial Real Estate | | — | | — | | — | | — | | — | | Commercial and Industrial | | 2 | | 3 | | 1 | | 5 | | 2 | | Residential Mortgages | | 2 | | 8 | | 22 | | 10 | | 24 | | Other Consumer | | 119 | | 110 | | 129 | | 229 | | 271 | | Construction | | — | | 1 | | — | | 1 | | — | | Other | | — | | — | | — | | — | | — | | Total Recoveries | | 123 | | 122 | | 152 | | 245 | | 297 | | Total Net Charge-offs | | 165 | | 57 | | 341 | | 222 | | 873 | | Balance End of Period | $ | 71,023 | $ | 73,518 | $ | 96,686 | $ | 71,023 | $ | 96,686 | [Pre-tax Pre-provision Income (Non-GAAP)](index=14&type=section&id=Pre-tax%20Pre-provision%20Income%20(Non-GAAP)) This table reconciles GAAP financial measures to the non-GAAP measure of Pre-tax Pre-provision Income for quarterly and year-to-date periods Pre-tax Pre-provision Income (Non-GAAP) (Dollars in Thousands) | 1 Pre-tax Pre-provision Income (Non-GAAP) | Quarter-to-Date | | | | | Year-to-Date | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | June 30, | March 31, | | | June 30, | | June 30, | | June 30, | | (Dollars in Thousands) | 2025 | 2025 | | | 2024 | | 2025 | | 2024 | | Net Interest Income | $32,359 | $30,138 | | | $28,092 | | $62,497 | | $56,511 | | Noninterest Income | 4,908 | 6,901 | | | 5,533 | | 11,809 | | 10,578 | | Noninterest Expense | 29,304 | 28,042 | | | 27,446 | | 57,346 | | 53,703 | | Pre-tax Pre-provision Income (Non-GAAP) | $7,963 | $8,997 | | | $6,179 | | $16,960 | | $13,386 | [Adjusted Net Income (Non-GAAP)](index=15&type=section&id=Adjusted%20Net%20Income%20(Non-GAAP)) This table reconciles GAAP Net Income to Adjusted Net Income (Non-GAAP) by adjusting for non-recurring items and their tax effects Adjusted Net Income (Non-GAAP) (Dollars in Thousands, except per share data) | 2 Adjusted Net Income (Non-GAAP) | | | | Quarter-to-Date | | | Year-to-Date | | | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | June 30, | | | March 31, | June 30, | | June 30, | | June 30, | | (Dollars in Thousands, except per share data) | 2025 | | | 2025 | 2024 | | 2025 | | 2024 | | Net Income | $ | 8,510 | $ | 8,953 | $ | 4,803 | $ | 17,463 | $ | 10,614 | | Gains on Sales of Securities, net | | — | | — | | (36) | | — | | (36) | | Equity Security Unrealized Fair Value Gain | | (22) | | (137) | | (63) | | (159) | | (63) | | Losses (Gains) on Sales and Write-downs of Bank Premises, net | | 60 | | (3) | | 44 | | 57 | | 45 | | Losses (Gains) on Sales and Write-downs of OREO, net | | 262 | | 81 | | (8) | | 343 | | (350) | | 1035 Exchange fee on BOLI | | 252 | | 275 | | — | | 527 | | — | | Acquisition Costs | | 386 | | — | | — | | 386 | | — | | 5 Gain on BOLI death benefit | | — | | (1,882) | | — | | (1,882) | | — | | OREO Income | | — | | — | | (20) | | — | | (28) | | Severance Pay | | 40 | | — | | — | | 40 | | — | | Contingent Liability | | 38 | | — | | — | | 38 | | — | | Total Tax Effect | | (214) | | (45) | | 18 | | (259) | | 91 | | Adjusted Net Income (Non-GAAP) | $ | 9,312 | $ | 7,242 | $ | 4,738 | $ | 16,554 | $ | 10,273 | | Average Shares Outstanding - diluted | | 22,805,881 | | 22,873,800 | 22,826,510 | | 22,839,412 | | 22,798,476 | | Adjusted Earnings Per Common Share (diluted) (Non-GAAP) | $ | 0.41 | $ | 0.32 | $ | 0.21 | $ | 0.72 | | $0.45 | [Net Interest Income (FTE) (Non-GAAP)](index=15&type=section&id=Net%20Interest%20Income%20(FTE)%20(Non-GAAP)) This table reconciles GAAP Interest and Dividend Income and Net Interest Income to their FTE Non-GAAP counterparts, including yields and margins Net Interest Income (FTE) (Non-GAAP) (Dollars in Thousands) | Net Interest Income (FTE) (Non-GAAP) | | | | Quarter-to-Date | | | | | Year-to-Date | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | June 30, | | March 31, | | June 30, | | June 30, | | June 30, | | (Dollars in Thousands) | | 2025 | | 2025 | | 2024 | | 2025 | | 2024 | | Interest and Dividend Income (GAAP) | $ | 57,747 | $ | 56,007 | $ | 54,583 | $ | 113,754 | $ | 108,632 | | 3 Tax Equivalent Adjustment | | 171 | | 178 | | 197 | | 349 | | 403 | | Interest and Dividend Income (FTE) (Non GAAP) | | 57,918 | | 56,185 | | 54,780 | | 114,103 | | 109,035 | | Average Earning Assets | | 4,634,635 | | 4,554,103 | | 4,437,077 | | 4,594,591 | | 4,433,049 | | Yield on Interest-earning Assets (GAAP) | | 5.00 % | | 4.99 % | | 4.95 % | | 4.99 % | | 4.93 % | | Yield on Interest-earning Assets (FTE) (Non-GAAP) | | 5.01 % | | 5.00 % | | 4.97 % | | 5.01 % | | 4.95 % | | Net Interest Income (GAAP) | $ | 32,359 | $ | 30,138 | $ | 28,092 | $ | 62,497 | $ | 56,511 | | 3 Tax Equivalent Adjustment | | 171 | | 178 | | 197 | | 349 | | 403 | | Net Interest Income (FTE) (Non-GAAP) | | 32,530 | | 30,316 | | 28,289 | | 62,846 | | 56,914 | | Average Earning Assets | | 4,634,635 | | 4,554,103 | | 4,437,077 | | 4,594,591 | | 4,433,049 | | Net Interest Margin (GAAP) | | 2.80 % | | 2.68 % | | 2.55 % | | 2.74 % | | 2.56 % | | Net Interest Margin (FTE) (Non-GAAP) | | 2.82 % | | 2.70 % | | 2.56 % | | 2.76 % | | 2.58 % | [Adjusted Efficiency Ratio (Non-GAAP)](index=16&type=section&id=Adjusted%20Efficiency%20Ratio%20(Non-GAAP)) This table reconciles GAAP Noninterest Expense and Net Interest Income to calculate the Adjusted Efficiency Ratio for quarterly and year-to-date periods Adjusted Efficiency Ratio (Non-GAAP) (Dollars in Thousands) | 4 Adjusted Efficiency Ratio (Non-GAAP) | | | | Quarter-to-Date | | | | | Year-to-Date | | | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | | | | June 30, | | March 31, | | June 30, | | June 30, | | June 30, | | (Dollars in Thousands) | | 2025 | | 2025 | | 2024 | | 2025 | | 2024 | | Noninterest Expense | $ | 29,304 | $ | 28,042 | $ | 27,446 | $ | 57,346 | $ | 53,703 | | Less:(Losses) Gains on sales and write-downs of Branch Premises, net | | (60) | | 3 | | (44) | | (57) | | (45) | | Less: (Losses) Gains on Sales and write-downs of OREO, net | | (262) | | (81) | | 8 | | (343) | | 350 | | 1035 Exchange fee on BOLI | | (252) | | (275) | | — | | (527) | | — | | Less: Acquisition Costs | | (386) | | — | | — | | (386) | | — | | Less: Severance Pay | | (40) | | — | | — | | (40) | | — | | Less: Contingent Liability | | (38) | | — | | — | | (38) | | — | | Adjusted Noninterest Expense (Non-GAAP) | $ | 28,266 | $ | 27,689 | $ | 27,410 | $ | 55,955 | $ | 54,008 | | Net Interest Income | $ | 32,359 | $ | 30,138 | $ | 28,092 | $ | 62,497 | $ | 56,511 | | 3 Plus: Taxable Equivalent Adjustment | | 171 | | 178 | | 197 | | 349 | | 403 | | Net Interest Income (FTE) (Non-GAAP) | $ | 32,530 | $ | 30,316 | $ | 28,289 | $ | 62,846 | $ | 56,914 | | Less: Gains on Sales of Securities, net | | — | | — | | (36) | | — | | (36) | | Less: Equity Security Unrealized Fair Value Gain | | (22) | | (137) | | (63) | | (159) | | (63) | | 5 Gain on BOLI death benefit | | — | | (1,882) | | — | | (1,882) | | — | | Less: OREO Income | | — | | — | | (20) | | — | | (28) | | Noninterest Income | | 4,908 | | 6,901 | | 5,533 | | 11,809 | | 10,578 | | Net Interest Income (FTE) (Non-GAAP) plus Adjusted Noninterest Income | $ | 37,416 | $ | 35,198 | $ | 33,703 | $ | 72,614 | $ | 67,365 | | Efficiency Ratio (GAAP) | | 78.63 % | | 75.71 % | | 81.62 % | | 77.18 % | | 80.05 % | | Adjusted Efficiency Ratio (Non-GAAP) | | 75.55 % | | 78.67 % | | 81.33 % | | 77.06 % | | 80.17 % |

PART I - FINANCIAL INFORMATION This section encompasses the Company's unaudited consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2025 [Item 1. Financial Statements](index=3&type=section&id=Item%201.%20FINANCIAL%20STATEMENTS) This section presents the Company's unaudited consolidated financial statements for the three months ended March 31, 2025, and comparative periods, including balance sheets, income statements, comprehensive income, changes in shareholders' equity, cash flows, and detailed notes to provide a comprehensive view of its financial position and performance [Consolidated Balance Sheets](index=4&type=section&id=Consolidated%20Balance%20Sheets) This statement details the Company's financial position at March 31, 2025, compared to December 31, 2024 Consolidated Balance Sheet Highlights (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (Thousands) | December 31, 2024 (Thousands) | Change (Thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | :----------------- | | Total Assets | $4,700,287 | $4,659,189 | $41,098 | | Portfolio Loans, net | $3,613,977 | $3,549,226 | $64,751 | | Securities Available-for-Sale | $745,390 | $718,400 | $26,990 | | Total Deposits | $4,200,927 | $4,153,421 | $47,506 | | Federal Home Loan Bank Borrowings | $55,000 | $70,000 | $(15,000) | | Total Liabilities | $4,298,521 | $4,274,876 | $23,645 | | Total Shareholders' Equity | $401,766 | $384,313 | $17,453 | [Consolidated Statements of Income](index=5&type=section&id=Consolidated%20Statements%20of%20Income) This statement presents the Company's revenues, expenses, and net income for Q1 2025 versus Q1 2024 Consolidated Statements of Income Highlights (Three Months Ended March 31, 2025 vs. 2024) | Metric | Three Months Ended March 31, 2025 (Thousands) | Three Months Ended March 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :----------------- | :--------- | | Total Interest Income | $56,007 | $54,049 | $1,958 | 3.62% | | Total Interest Expense | $25,869 | $25,630 | $239 | 0.93% | | Net Interest Income | $30,138 | $28,419 | $1,719 | 6.05% | | (Recovery) Provision for Credit Losses | $(2,025) | $16 | $(2,041) | NM | | Total Noninterest Income | $6,901 | $5,045 | $1,856 | 36.80% | | Total Noninterest Expense | $28,042 | $26,257 | $1,785 | 6.80% | | Net Income | $8,953 | $5,811 | $3,142 | 54.07% | | Basic Earnings per Common Share | $0.39 | $0.25 | $0.14 | 56.00% | | Diluted Earnings per Common Share | $0.39 | $0.25 | $0.14 | 56.00% | [Consolidated Statements of Comprehensive Income](index=6&type=section&id=Consolidated%20Statements%20of%20Comprehensive%20Income) This statement reports net income and other comprehensive income for Q1 2025 and Q1 2024 Consolidated Statements of Comprehensive Income Highlights (Three Months Ended March 31, 2025 vs. 2024) | Metric | Three Months Ended March 31, 2025 (Thousands) | Three Months Ended March 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :----------------- | :--------- | | Net Income | $8,953 | $5,811 | $3,142 | 54.07% | | Net Unrealized Gains Arising during the Period | $10,383 | $2,119 | $8,264 | 390.00% | | Tax Effect | $(2,235) | $(476) | $(1,759) | 369.54% | | Net Unrealized Gains Recognized in Other Comprehensive Income | $8,148 | $1,643 | $6,505 | 396.04% | | Comprehensive Income | $17,101 | $7,454 | $9,647 | 129.42% | [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=section&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders'%20Equity) This statement details changes in shareholders' equity for Q1 2025 and Q1 2024 Consolidated Statements of Changes in Shareholders' Equity Highlights (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (Thousands) | December 31, 2024 (Thousands) | Change (Thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | :----------------- | | Balance, December 31, 2024 / 2023 | $384,313 | $351,243 | $33,070 | | Net Income | $8,953 | $5,811 | $3,142 | | Other Comprehensive Income, Net of Tax | $8,148 | $1,643 | $6,505 | | Forfeiture of Restricted Stock | $(129) | $(72) | $(57) | | Issuance of Restricted Stock | $0 | $0 | $0 | | Recognition of Restricted Stock Compensation Expense | $481 | $441 | $40 | | Balance, March 31, 2025 / 2024 | $401,766 | $359,066 | $42,700 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) This statement summarizes cash flows for Q1 2025 and Q1 2024 Consolidated Statements of Cash Flows Highlights (Three Months Ended March 31, 2025 vs. 2024) | Metric | Three Months Ended March 31, 2025 (Thousands) | Three Months Ended March 31, 2024 (Thousands) | Change (Thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :----------------- | | Net Cash Provided By Operating Activities | $6,376 | $17,634 | $(11,258) | | Net Cash (Used In) Provided by Investing Activities | $(81,054) | $10,241 | $(91,295) | | Net Cash Provided By Financing Activities | $32,506 | $25,706 | $6,800 | | Net (Decrease) Increase in Cash and Cash Equivalents | $(42,172) | $53,581 | $(95,753) | | Cash and Cash Equivalents at End of Period | $88,999 | $108,110 | $(19,111) | [Notes to Unaudited Consolidated Financial Statements](index=10&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed explanations and disclosures for the unaudited consolidated financial statements [NOTE 1 – Basis of Presentation](index=10&type=section&id=NOTE%201%20%E2%80%93%20Basis%20of%20Presentation) The financial statements are prepared in accordance with GAAP for interim information, consolidating Carter Bankshares, Inc. and its subsidiaries. The Company adopted ASU 2024-02 in January 2025 with no material impact and is evaluating ASU 2023-09 for 2025 and ASU 2024-04 and 2024-03 for later periods - The Company's unaudited Consolidated Financial Statements are prepared in accordance with GAAP for interim financial information, consolidating Carter Bankshares, Inc. and its wholly-owned subsidiary, Carter Bank & Trust[20](index=20&type=chunk)[21](index=21&type=chunk) - The adoption of ASU 2024-02 on January 1, 2025, which amends the Codification to remove references to various concepts statements, did not have a material impact on the Company's Consolidated Financial Statements[24](index=24&type=chunk) - The Company is currently evaluating the impact of ASU 2023-09 (effective January 1, 2025) on income tax disclosures and ASU 2024-04 (effective January 1, 2026) and ASU 2024-03 (effective fiscal years beginning after December 15, 2026) on its financial statements, with no significant impact expected from ASU 2024-04[25](index=25&type=chunk)[26](index=26&type=chunk)[27](index=27&type=chunk) [NOTE 2 – Earnings Per Common Share](index=11&type=section&id=NOTE%202%20%E2%80%93%20Earnings%20Per%20Common%20Share)

Core Insights - Carter Bankshares, Inc. (CARE) reported a revenue of $37.22 million for the quarter ended March 2025, reflecting an 11.2% increase year-over-year and a surprise of +6.92% over the Zacks Consensus Estimate of $34.81 million [1] - The earnings per share (EPS) for the quarter was $0.32, up from $0.24 in the same quarter last year, with an EPS surprise of +6.67% compared to the consensus estimate of $0.30 [1] Financial Performance Metrics - The efficiency ratio for Carter Bankshares was reported at 75.7%, better than the average estimate of 80.2% from two analysts [4] - The net interest margin stood at 2.7%, slightly above the average estimate of 2.6% based on two analysts [4] - Total noninterest income was $6.90 million, exceeding the estimated $5.37 million from two analysts [4] Stock Performance - Over the past month, shares of Carter Bankshares have returned -8%, compared to a -5.1% change in the Zacks S&P 500 composite [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

Group 1 - Carter Bankshares, Inc. reported quarterly earnings of $0.32 per share, exceeding the Zacks Consensus Estimate of $0.30 per share, and up from $0.24 per share a year ago, representing an earnings surprise of 6.67% [1] - The company posted revenues of $37.22 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 6.92%, compared to year-ago revenues of $33.46 million [2] - Over the last four quarters, Carter Bankshares has surpassed consensus EPS estimates two times and topped consensus revenue estimates once [2] Group 2 - The stock has underperformed the market, losing about 12.8% since the beginning of the year, while the S&P 500 declined by 8.6% [3] - The current consensus EPS estimate for the coming quarter is $0.29 on revenues of $36.43 million, and for the current fiscal year, it is $1.37 on revenues of $148.65 million [7] - The Zacks Industry Rank for Banks - Northeast is currently in the top 22% of over 250 Zacks industries, indicating a favorable outlook for the industry [8]

Exhibit 99.1 Carter Bankshares, Inc. Announces First Quarter 2025 Financial Results Martinsville, VA, April 24, 2025 – Carter Bankshares, Inc. (the "Company") (NASDAQ:CARE), the holding company of Carter Bank (the "Bank") today announced quarterly net income of $9.0 million, or $0.39 diluted earnings per share ("EPS"), for the first quarter of 2025 compared to net income of $8.3 million, or $0.36 diluted EPS, for the fourth quarter of 2024 and net income of $5.8 million, or $0.25 diluted EPS, for the first ...

Company Overview - Carter Bankshares, Inc. (CARE) shares increased by 5% in the last trading session, closing at $15, with trading volume significantly higher than usual [1] - The stock had previously experienced a 10.2% loss over the past four weeks [1] Market Influence - The surge in Carter Bankshares stock was driven by a broader market increase, attributed to President Donald Trump's announcement of a 90-day tariff pause for non-retaliating nations, which positively impacted investor sentiment [2] Earnings Expectations - The company is projected to report quarterly earnings of $0.30 per share, reflecting a year-over-year increase of 25% [2] - Expected revenues for the upcoming report are $34.81 million, representing a 4% increase from the same quarter last year [2] Earnings Estimate Trends - The consensus EPS estimate for Carter Bankshares has remained unchanged over the last 30 days, indicating a lack of upward revisions which typically correlate with stock price movements [4] - The stock currently holds a Zacks Rank of 3 (Hold), suggesting a neutral outlook [4] Industry Context - Carter Bankshares operates within the Zacks Banks - Northeast industry, where another company, Middlefield Banc Corp. (MBCN), saw an 11.5% increase in its stock price, closing at $26.78 [4] - Middlefield Banc's consensus EPS estimate has also remained unchanged at $0.48, which is a 5.9% decrease from the previous year [5]

Core Insights - Ping An Health has integrated sustainable development into its strategy and operations, establishing a governance structure to ensure effective implementation of sustainability goals [1] - The company has achieved dual certification from WONCA, becoming the first in the world to do so in the medical health and elderly care service sector [2] - Ping An Health is leveraging advanced technology, particularly artificial intelligence, to enhance its medical service system and drive high-quality industry development [3][4] - The company has prioritized information security, obtaining multiple certifications and enhancing its security capabilities [5][6] - Ping An Health is committed to social responsibility, launching initiatives to promote health literacy and improve access to medical services [8] - The company aims to contribute to the "Healthy China" strategic goal through its CARE sustainability strategy [9] Sustainable Development - The company has established a three-level governance structure for sustainable development, ensuring effective implementation of its goals [1] - A "Sustainable Development Strategy, Goals, and Action Plan" has been created to track progress regularly [1] Certifications and Standards - In 2024, Ping An Family Doctor received dual certification from WONCA, aligning with WHO guidelines [2] - The service standards and telemedicine management communications are certified by the General Practice Branch of the Chinese Medical Association and the RACGP [2] Technological Advancements - The launch of the Ping An Medical Master model, built on hundreds of billions of parameters, enhances the company's medical services [4] - The system achieves a 99.8% Class A rate for electronic medical records and 100% accuracy in medication compliance [4] Information Security - The company obtained ISO 27001, ISO 27701, and ISO 27799 certifications, covering all business operations [5] - A domestically developed web application firewall was implemented, increasing alarm detection effectiveness by 35% [6] Social Responsibility Initiatives - The "Yilu Jianxing" health literacy promotion action reached various communities and included 40 expert-led broadcasts and 29 public welfare activities [8] - The company enhances medical service accessibility through remote healthcare options [8]

Financial Performance - Net interest income decreased by $7.9 million, or 6.4%, to $114.5 million for the year ended December 31, 2024, due to higher funding costs [225]. - The company reported net income of $24.5 million, or $1.06 diluted earnings per share for the year ended December 31, 2024, compared to net income of $23.4 million, or $1.00 diluted earnings per share for the year ended December 31, 2023 [226]. - Total noninterest income increased by $3.1 million to $21.4 million for the year ended December 31, 2024, compared to the same period in 2023 [225]. - Total noninterest expense for the year ended December 31, 2024, was $110.0 million, an increase of $4.5 million, or 4.3%, from 2023 [253]. - The provision for credit losses decreased to a recovery of $5.0 million in 2024 from a provision of $5.5 million in 2023, reflecting improved credit quality assessments [317]. - The company reported a basic earnings per common share of $1.06 for 2024, up from $1.00 in 2023, reflecting a growth of 6% [362]. - Comprehensive income for 2024 was $31,441 thousand, down from $37,561 thousand in 2023, reflecting a decrease of approximately 16.3% [363]. Loan Portfolio and Credit Quality - Total portfolio loans increased by $118.9 million, or 3.4%, primarily in the commercial real estate and construction segments during the year ended December 31, 2024 [225]. - Nonperforming loans declined by $50.2 million to $259.3 million compared to December 31, 2023, with nonperforming loans as a percentage of total portfolio loans at 7.15% [225]. - The allowance for credit losses (ACL) was $75.6 million, or 2.09% of total portfolio loans, compared to $97.1 million, or 2.77% in 2023, indicating a reduction in the ACL ratio [316]. - Net loan charge-offs increased to $16.4 million for the year ended December 31, 2024, compared to $2.3 million in 2023, with a charge-off of $15.0 million impacting the Other segment [247]. - Nonperforming loans (NPLs) decreased by $50.2 million to $259.3 million as of December 31, 2024, resulting in a NPL ratio of 7.15%, down from 8.83% in the previous year [319]. - The provision for income taxes increased by $1.0 million to $6.3 million for the year ended December 31, 2024, with an effective tax rate of 20.6% compared to 18.6% in 2023 [285]. Deposits and Funding - Total deposits increased by $431.5 million, or 11.6%, to $4.2 billion at December 31, 2024, compared to December 31, 2023 [229]. - The portfolio loans to deposit ratio was 87.3%, compared to 94.2% [225]. - Federal Home Loan Bank borrowings decreased by $323.4 million to $70.0 million at December 31, 2024, compared to $393.4 million at December 31, 2023 [229]. - Average interest-bearing deposits grew by $100.7 million, or 20.8%, while average money market accounts increased by $63.0 million, or 14.1% [321]. - The ratio of highly liquid assets to total assets was 10.9% as of December 31, 2024, down from 12.8% in 2023 [345]. Securities and Investments - The available-for-sale securities portfolio decreased by $60.6 million, now representing 15.4% of total assets compared to 17.3% [225]. - The securities portfolio comprised 43.5% variable rate securities, with 84.6% expected to reprice within the next 12 months, mitigating interest rate risk [237]. - The company purchased $10.0 million of equity securities in 2024, focusing on investments that positively impact community development [259]. - Total gross unrealized gains in the available-for-sale portfolio were $0.1 million at December 31, 2024, offset by $82.4 million of gross unrealized losses, compared to $0.7 million in gains and $92.3 million in losses at December 31, 2023 [272]. - The company may consider changes to its interest rate mix strategy if the Federal Reserve continues to reduce short-term interest rates [237]. Strategic Initiatives and Growth - The Company aims to shift from restructuring the balance sheet to pursuing a prudent growth strategy, focusing on organic growth and opportunistic acquisitions [217]. - The Company introduced new guiding principles in June 2023 to align processes and operations with its brand strategy, aiming to enhance brand awareness and support future growth [216]. - The Company has entered into a definitive purchase and assumption agreement to acquire two branch facilities in North Carolina, expected to close in the first half of 2025 [215]. - The Company has established limits on total commercial real estate balances, which should not exceed 300% of total risk-based capital, and construction loan balances should not exceed 100% of total risk-based capital [291]. Risk Management and Underwriting - The Company’s underwriting process includes multiple shock scenarios focused on cash flow and leverage to determine supportable loan amounts, enhancing risk management [290]. - Management continuously monitors delinquency trends to identify emerging patterns and potential problem loans [310]. - The economic value of equity simulation model uses rate shocks of +/- 100, 200, 300, and 400 basis points to assess the impact on the balance sheet [356]. - The CECL model estimates default probabilities driven by economic metrics, including unemployment and the Consumer Price Index, to determine expected losses [394].

Company Overview - Amgen is a biotechnology company that discovers, develops, manufactures, and delivers innovative medicines to assist patients with serious diseases [3] - The company has been a pioneer in the biotechnology industry for over 40 years and continues to leverage technology and human genetic data for innovation [3] - Amgen has a diverse pipeline aimed at treating cancer, heart disease, osteoporosis, inflammatory diseases, and rare diseases [3] Recent Recognition - In 2024, Amgen was recognized as one of the "World's Most Innovative Companies" by Fast Company and one of "America's Best Large Employers" by Forbes [4] - The company is included in the Dow Jones Industrial Average® and the Nasdaq-100 Index®, highlighting its status as one of the largest and most innovative non-financial companies based on market capitalization [4] Upcoming Events - Amgen will present at the 45th Annual TD Cowen Health Care Conference on March 5, 2025, with Jay Bradner, executive vice president of Research and Development, participating in a fireside chat [1] - The presentation will be available via a webcast, which will also be archived for at least 90 days post-event [2]