$CARE

Carter Bankshares, Inc.

CIK:0001829576|SEC Filings

CONSOLIDATED STATEMENTS OF INCOME (unaudited) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025	Jun. 30, 2026	Jun. 30, 2025
Loans, including fees
Taxable	$ 52,440	$ 49,522	$ 104,523	$ 97,347
Non-Taxable	503	579	1,019	1,180
Investment Securities
Taxable	5,323	6,796	10,905	13,451
Non-Taxable	385	67	451	133
Federal Reserve Bank Excess Reserves	1,519	578	2,102	1,280
Interest on Bank Deposits	1,193	65	1,303	111
Dividend Income	128	140	373	252
Total Interest Income	61,491	57,747	120,676	113,754
Interest Expense
Interest Expense on Deposits	21,402	24,059	42,957	49,082
Interest on Other Borrowings	139	1,329	1,835	2,175
Total Interest Expense	21,541	25,388	44,792	51,257
NET INTEREST INCOME	39,950	32,359	75,884	62,497
Provision (Recovery) for Credit Losses	2,010	(2,330)	(31,907)	(4,355)
Recovery for Unfunded Loan Commitments	(554)	(335)	(772)	(449)
Net Interest Income After Provision (Recovery) for Credit Losses	38,494	35,024	108,563	67,301
NONINTEREST INCOME
Gain on the Insurance Transaction	35,949	0	35,949	0
Gain on the Loan Sale Transaction	0	0	65,000	0
Losses on Sales of Securities, net	(12,531)	0	(12,451)	0
Service Charges, Commissions and Fees	2,491	1,765	4,619	3,639
Debit Card Interchange Fees	2,063	1,942	4,211	4,046
Insurance Commissions	164	714	1,118	1,058
Bank Owned Life Insurance Income	457	357	893	698
Other	137	130	365	2,368
Total Noninterest Income	28,730	4,908	99,704	11,809
NONINTEREST EXPENSE
Salaries and Employee Benefits	14,051	14,082	28,966	27,739
Occupancy Expense, net	4,584	4,230	9,445	8,702
FDIC Insurance Expense	(241)	1,436	1,269	2,866
Other Taxes	776	922	1,701	1,869
Advertising Expense	820	708	1,746	1,619
Telephone Expense	278	307	570	611
Professional and Legal Fees	2,053	1,921	3,599	3,151
Data Processing	2,177	1,395	4,030	2,839
Debit Card Expense	1,072	991	2,073	1,983
Other	4,416	3,312	7,599	5,967
Total Noninterest Expense	29,986	29,304	60,998	57,346
Income Before Income Taxes	37,238	10,628	147,269	21,764
Income Tax Provision	8,327	2,118	32,601	4,301
Net Income	$ 28,911	$ 8,510	$ 114,668	$ 17,463
Earnings per Common Share:
Basic Earnings per Common Share (in usd per share)	$ 1.31	$ 0.37	$ 5.18	$ 0.76
Diluted Earnings per Common Share (in usd per share)	$ 1.31	$ 0.37	$ 5.18	$ 0.76
Average Shares Outstanding - Basic (in shares)	21,838,645	22,805,881	21,842,497	22,839,412
Average Shares Outstanding - Diluted (in shares)	21,838,645	22,805,881	21,842,497	22,839,412

CONSOLIDATED STATEMENTS OF CASH FLOWS (unaudited) - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2026	Jun. 30, 2025
OPERATING ACTIVITIES
Net Income	$ 114,668	$ 17,463
Adjustments to Reconcile Net Income to Net Cash Provided by Operating Activities
Recovery for Credit Losses, including Recovery for Unfunded Loan Commitments	(32,679)	(4,804)
Origination of Loans Held-for-Sale	(9,748)	(7,877)
Proceeds From Loans Held-for-Sale	9,692	7,711
Depreciation/Amortization of Bank Premises and Equipment	4,284	3,850
Provision for Deferred Taxes	5,275	1,628
Net Amortization of Securities	13,592	1,707
Tax Credit Amortization	86	325
Gains on Sales of Loans Held-for-Sale	(72)	(80)
Gain on the Loan Sale Transaction	(65,000)	0
Gain on the Insurance Transaction	(35,949)	0
Losses on Sales of Securities, net	12,451	0
Unrealized Loss (Gain) on Equity Securities	116	(159)
Commercial Loan Swap Derivative Loss	8	96
Increase in the Value of Life Insurance Contracts	(893)	(698)
Gain on Bank Owned Life Insurance Death Benefit	0	(1,882)
1035 Exchange Fee on Bank Owned Life Insurance	0	527
Balance Sheet Hedge Fair Value Adjustment	0	140
Recognition of Restricted Stock Compensation Expense	1,135	1,010
Decrease in Other Assets	5,169	734
Increase (Decrease) in Other Liabilities	21,234	(3,716)
Net Cash Provided By Operating Activities	43,369	15,975
Securities Available-for-Sale:
Proceeds from Sales	142,283	0
Proceeds from Maturities, Redemptions, and Paydowns	20,419	30,445
Purchases	(125,177)	(53,317)
Purchase of Equity Securities	(2,500)	0
Purchase of Bank Premises and Equipment, Net	(3,885)	(3,440)
Proceeds from Sales of Bank Premises and Equipment, net	0	0
Net Cash Acquired from Branch Purchase	0	53,573
Proceeds from Sale of Portfolio Loans From the Loan Sale Transaction	289,484	0
Proceeds From the Insurance Transaction	55,663	0
Redemption (Purchase) of Other Restricted Stock, at Cost, net	8,354	(2,166)
Loan Originations, net	(66,869)	(123,139)
Proceeds from Death Benefit on Bank Owned Life Insurance	0	3,077
Proceeds from Surrender of BOLI Policies	7,161	0
Proceeds from Sales and Payments of Other Real Estate Owned	0	473
Net Cash Used In Investing Activities	324,933	(94,494)
FINANCING ACTIVITIES
Net Change in Demand, Money Markets and Savings Accounts	42,350	49,649
Decrease in Certificates of Deposits	(55,683)	(36,758)
Proceeds from Federal Home Loan Bank Borrowings	299,000	245,000
Repayments on Federal Home Loan Bank Borrowings	(477,500)	(201,500)
Repurchase of Common Stock	(2,878)	(9,138)
Cash Dividends Paid to Common Shareholders	(2,219)	0
Net Cash (Used In) Provided By Financing Activities	(196,930)	47,253
Net Increase (Decrease) in Cash and Cash Equivalents	171,372	(31,266)
Cash and Cash Equivalents at Beginning of Period	105,163	131,171
Cash and Cash Equivalents at End of Period	276,535	99,905
SUPPLEMENTARY DATA
Cash Interest Paid	45,872	52,800
Cash Paid for Income Taxes	2,800	1,480
Transfer from Portfolio Loans to Other Real Estate Owned, net	2,937	0
Transfer from Bank Premises and Equipment, net to Other Real Estate Owned, net	2,172	1,814
Right-of-use Asset Recorded in Exchange for Lease Liabilities	107	958
Stock Repurchase Excise Tax Settled in Subsequent Period	(181)	(75)
Stock Repurchases Settled in Subsequent Period	0	(181)
Portfolio Loans Transferred to Held-for-Sale	$ 209,484	$ 0

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Jun. 30, 2026	Dec. 31, 2025
ASSETS
Cash and Due From Banks	$ 41,101	$ 36,935
Interest-Bearing Deposits in Other Financial Institutions	167,427	12,134
Federal Reserve Bank Excess Reserves	68,007	56,094
Total Cash and Cash Equivalents	276,535	105,163
Securities Available-for-Sale, at Fair Value (amortized cost of $682,318 and $745,366, respectively)	640,302	691,612
Equity Securities	12,676	10,291
Loans Held-for-Sale	467	339
Portfolio Loans	3,734,594	3,879,560
Allowance for Credit Losses	(55,170)	(71,491)
Portfolio Loans, net	3,679,424	3,808,069
Bank Premises and Equipment, net	69,820	72,497
Goodwill	1,193	1,193
Core Deposit Intangible	812	940
Other Real Estate Owned, net	3,356	142
Other Restricted Stock, at Cost	8,476	16,830
Bank Owned Life Insurance	45,704	44,811
Other Assets	63,118	100,035
Total Assets	4,801,883	4,851,922
Deposits:
Noninterest-Bearing Demand	655,482	620,473
Interest-Bearing Demand	866,759	808,171
Money Market	510,125	553,964
Savings	318,774	326,182
Certificates of Deposit	1,846,416	1,902,099
Total Deposits	4,197,556	4,210,889
Federal Home Loan Bank Borrowings	0	178,500
Reserve for Unfunded Loan Commitments	2,220	2,992
Other Liabilities	62,961	39,844
Total Liabilities	4,262,737	4,432,225
Commitments and Contingencies - see NOTE 10.
SHAREHOLDERS’ EQUITY
Common Stock	22,162	22,083
Additional Paid-in Capital	72,505	74,806
Retained Earnings	477,417	364,968
Accumulated Other Comprehensive Loss	(32,938)	(42,160)
Total Shareholders’ Equity	539,146	419,697
Total Liabilities and Shareholders’ Equity	$ 4,801,883	$ 4,851,922