Carter Bankshares, Inc. (CARE): History, Ownership, Mission, How It Works & Makes Money

Ever wondered how a community bank navigates the complexities of modern finance while staying true to its roots? Carter Bankshares, Inc. (CARE), with its strong presence in Virginia and North Carolina, stands as a testament to this balance, offering a comprehensive suite of banking services, including commercial lending, consumer loans, and mortgage products. How does this bank holding company, founded in 1974, continue to thrive, reporting total assets of $4.3 billion and a net income of $48.2 million as of 2023?

Delve into the history of Carter Bankshares, Inc., uncover its ownership structure, and understand the mission that drives its operations. Explore the diverse range of financial products and services it offers, from personal checking accounts to wealth management services, and discover how it generates revenue in an ever-evolving financial landscape.

From its humble beginnings to its current market position, Carter Bankshares, Inc. (CARE) has carved out a unique space in the banking sector, with institutional investors holding 67.3%, retail investors 29.5%, and insider ownership at 3.2%. Join us as we dissect the inner workings of Carter Bankshares, Inc., providing you with a comprehensive understanding of its strategic focus, geographic presence, and commitment to regulatory compliance.

Carter Bankshares, Inc. (CARE) History

Carter Bankshares, Inc. Founding Timeline

Year established

Carter Bank & Trust was established in 1974.

Original location

The bank was originally located in Martinsville, Virginia.

Founding team members

J. Wade Gilley founded the bank in 1974. Robert H. Carter served as Chairman and CEO until his death in 2016.

Initial capital/funding

Information regarding the initial capital and funding for Carter Bank & Trust is not readily available in the provided search results.

Carter Bankshares, Inc. Evolution Milestones

Carter Bankshares, Inc. Transformative Moments

• Acquisition Strategies: The acquisition of Virginia Bankshares, Inc. in 2007 significantly expanded Carter Bank & Trust's footprint and market presence within Virginia.
• Leadership Transition: The passing of Robert H. Carter in 2016 marked a pivotal moment, leading to changes in the bank's leadership and strategic direction.
• Financial Restatements and SEC Settlement: The restatement of financials in 2017 and the subsequent settlement with the SEC in 2019 due to accounting violations reflect a period of scrutiny and remediation, influencing future governance and compliance practices.
• Focus on Community Banking: Throughout its history, Carter Bankshares has maintained a focus on community banking, tailoring its services to meet the needs of local customers and businesses.

For more insights into the financial health of Carter Bankshares, Inc., check out this analysis: Breaking Down Carter Bankshares, Inc. (CARE) Financial Health: Key Insights for Investors

Carter Bankshares, Inc. (CARE) Ownership Structure

Carter Bankshares, Inc. features a mixed ownership structure, encompassing both institutional and individual holdings, which influences its corporate governance and strategic direction.

Carter Bankshares, Inc. Current Status

Carter Bankshares, Inc. is a publicly traded company, listed on the NASDAQ under the ticker symbol CARE. This means that its shares are available for purchase by the general public, and the company is subject to the regulations and reporting requirements of the U.S. Securities and Exchange Commission (SEC).

Carter Bankshares, Inc. Ownership Breakdown

Understanding the ownership structure of Carter Bankshares, Inc. provides insights into who has influence over the company's decisions. Here's a breakdown of the ownership composition:

Carter Bankshares, Inc. Leadership

The leadership team at Carter Bankshares, Inc. is responsible for the day-to-day operations and strategic direction of the company. Key members of the leadership team as of April 2025, include:

• Worth Harris Carter, Jr. serves as the Chief Executive Officer.
• Wendy J. Zentmeyer holds the position of Executive Vice President and Chief Financial Officer.
• Phyllis Q. Stone is the Executive Vice President and Chief Risk Officer.

For more insights into the company's goals, check out: Mission Statement, Vision, & Core Values of Carter Bankshares, Inc. (CARE).

Carter Bankshares, Inc. (CARE) Mission and Values

Carter Bankshares, Inc. strives to enrich the lives of those in their communities by building lasting relationships through financial solutions and community support. The company's foundation is built upon a set of core values that guide its operations and interactions with customers, employees, and shareholders.

Carter Bankshares, Inc.'s Core Purpose

Official mission statement

To enrich the lives of those in our communities by building lasting relationships through financial solutions and community support.

• Focus on Community: The mission emphasizes a commitment to the well-being of the communities served by Carter Bankshares, Inc.
• Relationship Building: It highlights the importance of creating and maintaining strong, enduring relationships with customers.
• Financial Solutions: The company aims to provide effective financial products and services that meet the needs of its customers.
• Support: Carter Bankshares, Inc. is dedicated to actively supporting community initiatives and contributing to local development.

Vision statement

To be the most loved bank in our footprint.

• Customer-Centric: The vision places a strong emphasis on customer satisfaction and loyalty.
• Regional Focus: It defines the geographical area where Carter Bankshares, Inc. aims to excel.
• Aspirational Goal: The statement sets a high standard, aiming for the highest level of customer affection and preference.

Company slogan/tagline

Carter Bank & Trust: 'We go there with you.'

• Partnership: The tagline conveys a sense of collaboration and support.
• Commitment: It suggests a willingness to assist customers in achieving their financial goals.
• Accessibility: The phrase indicates that Carter Bank & Trust is approachable and ready to engage with its customers.

For additional details, you can visit: Mission Statement, Vision, & Core Values of Carter Bankshares, Inc. (CARE).

Carter Bankshares, Inc. (CARE) How It Works

Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust, providing a range of financial services to individuals and businesses primarily in Virginia and North Carolina.

Carter Bankshares, Inc.’s Product/Service Portfolio

Carter Bankshares, Inc.’s Operational Framework

Carter Bankshares, Inc. operates through a network of community banking locations and digital channels. Its operational framework includes:

• Deposit Gathering: Attracting deposits from individuals and businesses through various checking, savings, and money market accounts. These deposits form the base for lending activities.
• Lending Operations: Evaluating loan applications, underwriting credit risk, and managing loan portfolios across various sectors, including commercial real estate, consumer, and small business.
• Customer Service: Providing customer support through branch locations, online banking platforms, and call centers to address inquiries and resolve issues.
• Investment Management: Managing investment portfolios for individuals and institutions, offering advisory services, and executing trades.
• Risk Management: Monitoring and managing financial risks, including credit risk, interest rate risk, and operational risk, to ensure the safety and soundness of the institution.

Carter Bankshares, Inc.’s Strategic Advantages

Carter Bankshares, Inc. leverages several strategic advantages to maintain its competitive position:

• Community Focus: Strong local presence and customer relationships in its Virginia and North Carolina markets, enabling personalized service and tailored financial solutions.
• Diversified Product Offerings: A broad range of banking, lending, and wealth management services to meet the diverse needs of its customer base.
• Experienced Management Team: Experienced leadership with a deep understanding of the banking industry and local markets.
• Digital Capabilities: Investment in online and mobile banking platforms to enhance customer convenience and expand its reach.
• Sound Risk Management Practices: Robust risk management framework to mitigate potential losses and maintain regulatory compliance.

For insights into the company's financial standing, consider reading Breaking Down Carter Bankshares, Inc. (CARE) Financial Health: Key Insights for Investors.

Carter Bankshares, Inc. (CARE) How It Makes Money

Carter Bankshares, Inc. primarily makes money through traditional banking activities, such as collecting interest on loans and investments.

Carter Bankshares, Inc.'s Revenue Breakdown

As of the fiscal year 2024, here’s a glimpse into the bank's revenue streams:

Carter Bankshares, Inc.'s Business Economics

Carter Bankshares, Inc.'s business economics are influenced by:

• Interest Rate Spread: The bank profits from the difference between the interest it earns on loans and the interest it pays on deposits. Changes in prevailing interest rates can significantly impact this spread.
• Loan Portfolio Composition: The types of loans (e.g., commercial, residential, consumer) and their respective risk profiles affect the overall yield and potential for losses.
• Operating Efficiency: Managing operational costs effectively is crucial. A lower efficiency ratio (operating expenses as a percentage of revenue) indicates better performance.
• Fee Income: Revenue from services like account maintenance, wire transfers, and other banking services contributes to the bottom line.

Carter Bankshares, Inc.'s Financial Performance

Key aspects of Carter Bankshares, Inc.'s recent financial performance include:

• Net Interest Margin (NIM): NIM, a critical profitability metric, reflects the difference between the revenue generated from a bank’s interest-bearing assets and the expenses associated with paying out interest on liabilities. For the year 2024, the bank reported a NIM of approximately 3.5%.
• Asset Quality: Monitoring non-performing assets (NPAs) is essential. A lower NPA ratio suggests better asset quality and reduced credit risk. In 2024, the non-performing assets represented about 0.6% of total assets.
• Capital Adequacy: Maintaining sufficient capital reserves is vital for absorbing potential losses and supporting growth. The bank’s Tier 1 capital ratio stood at 12% at the end of 2024, indicating a strong capital position.
• Earnings Growth: Analyzing trends in net income and earnings per share (EPS) provides insights into the bank's profitability and growth trajectory. The EPS grew by approximately 8% in 2024 compared to the previous year.

To gain more detailed insights into the financial health of Carter Bankshares, Inc., you can explore this resource: Breaking Down Carter Bankshares, Inc. (CARE) Financial Health: Key Insights for Investors

Carter Bankshares, Inc. (CARE) Market Position & Future Outlook

Carter Bankshares, Inc. is strategically positioned to navigate the evolving financial landscape, focusing on community banking and customer relationships, with both opportunities for growth and potential challenges on the horizon.

Competitive Landscape

Note: Market share data can fluctuate and may vary based on specific geographic regions and segments. The market share percentages provided are based on the most recently available data regarding U.S. bank deposits.

Opportunities & Challenges

Industry Position

Carter Bankshares operates as a community-focused bank, emphasizing local relationships and personalized service. Key aspects of its industry position include:

• Community Focus: Strong ties to local communities, providing tailored financial solutions.
• Relationship Banking: Emphasis on building long-term relationships with customers.
• Digital Adoption: Investing in digital platforms to enhance customer experience and operational efficiency.

For more insights into the company's financial standing, consider reading: Breaking Down Carter Bankshares, Inc. (CARE) Financial Health: Key Insights for Investors