Mission Statement, Vision, & Core Values of Carter Bankshares, Inc. (CARE)

You want to know what drives a bank that manages over $4.84 billion in total assets, especially one that has delivered $22.9 million in net income year-to-date through Q3 2025, right? Carter Bankshares, Inc.'s (CARE) performance isn't just about the balance sheet; it's about the foundational principles-the Mission, Vision, and Core Values-that guide their strategic growth, like the $96.2 million in net interest income they posted year-to-date through September 30, 2025. Are those principles strong enough to navigate the current economic climate, and what do they tell you about the bank's commitment to responsible banking and community development?

Carter Bankshares, Inc. (CARE) Overview

You're looking for the hard numbers and the story behind a community bank that's making a real move, and Carter Bankshares, Inc. is defintely worth your attention. The direct takeaway is that this Martinsville, Virginia-based holding company is leveraging strong loan growth and strategic expansion to drive significant year-to-year earnings improvement in 2025, even while managing a large nonaccrual loan portfolio.

Carter Bankshares, Inc. operates as the parent company of Carter Bank & Trust, a state-chartered community bank founded in 1974. The company's business model is pure community banking, focusing on local decision-making and personalized service for individuals and businesses across its footprint in Virginia and North Carolina. They offer a full suite of products, from checking and savings accounts to complex commercial lending and treasury management services.

Their signature product, the 'Home of Lifetime Free Checking,' speaks to their long-term, customer-first approach. This focus helps them build sticky relationships. As of September 30, 2025, the company reported total assets of a strong $4.8 billion, which shows their scale in the regional banking sector.

• Founded 1974; became a holding company in 2020.
• Operates 64 branches across Virginia and North Carolina.
• Total portfolio loans reached $3.8 billion as of Q3 2025.

2025 Financial Performance: Loan Growth Drives Net Interest Income

The latest financial reports for the 2025 fiscal year show a clear trend: the core business is accelerating. For the third quarter of 2025, Carter Bankshares, Inc. reported total revenue of $39.25 million. More importantly, Net Interest Income-the profit from lending after paying deposit interest-rose to $33.7 million in Q3 2025, marking a 17.1% increase from the same period last year. That's the quick math on how they're improving their funding costs and asset yields.

The year-to-date performance is even more telling. For the nine months ended September 30, 2025, net income was $22.9 million, a significant jump from $16.2 million in the prior year period. This improvement is despite the continued impact of a large nonaccrual loan relationship with the Justice Entities, which still had a $228.6 million principal balance as of September 30, 2025. Managing that legacy issue is a priority, but the underlying business is strong.

The growth engine is loan production. Total portfolio loans grew by 9.4% on an annualized basis in Q3 2025. This loan momentum, coupled with an improved net interest margin (NIM) of 2.86% in Q3 2025, is what's fueling the bottom line.

A Leading Regional Community Bank Franchise

In the competitive US banking landscape, Carter Bankshares, Inc. has carved out a position as a well-capitalized, growing community bank franchise. They are focused on becoming your preferred financial partner, and their strategic moves in 2025 back that up. Total deposits grew to $4.2 billion as of September 30, 2025, showing customer trust and stability.

The company is not just waiting for organic growth; they are actively expanding their physical footprint. They completed the acquisition of two North Carolina branches in 2025, which immediately added $55.9 million in deposits and extended their market reach. This kind of strategic inorganic growth is a key indicator of management's commitment to building a larger, more resilient institution.

With a healthy loan pipeline, especially in construction lending, and a balance sheet positioned to benefit from potential future shifts in interest rates, the company is set up for continued positive trends. To understand the investor landscape around this growing regional player, you should explore Exploring Carter Bankshares, Inc. (CARE) Investor Profile: Who's Buying and Why?

Carter Bankshares, Inc. (CARE) Mission Statement

You want to know what drives Carter Bankshares, Inc. (CARE) and how its long-term strategy connects to its day-to-day operations. The core takeaway is simple: the company's mission acts as a clear-cut operating mandate, guiding every capital allocation decision and strategic move toward regional dominance and financial stability. The mission of Carter Bankshares, Inc. is to foster financial well-being for individuals, families, and businesses through responsible banking practices and a commitment to community development.

This statement isn't just corporate fluff; it's the lens through which we, as analysts, view their performance. It dictates their focus on community banking, which is a high-touch, relationship-driven business model. The mission breaks down into three actionable pillars-Customer Focus, Financial Soundness, and Community Investment-all of which are measurable against their 2025 fiscal year data.

Pillar 1: Fostering Financial Well-being (Customer Focus)

The first core component is all about delivering value to the customer-individuals, families, and businesses-by providing the right financial tools. This is where you see the direct impact of their product and service quality. It's not about having the most products; it's about having the right ones that drive tangible growth for their clients.

The proof is in their lending activity. For the nine months ended September 30, 2025, Carter Bankshares saw total portfolio loans reach $3.8 billion, reflecting a strong, annualized growth rate of 9.4% in the third quarter alone. That kind of growth shows their products are resonating and helping clients execute their plans. Plus, a diversified and granular deposit base, with approximately 78.2% of deposits coming from retail customers as of Q3 2025, signals deep, stable customer relationships. They're defintely building strong relationships.

• Loan production funded at 6.77% Year-to-Date 2025.
• Construction loan pipeline of $450 million is set to fund over the next 12-18 months, fueling regional development.
• Deposit growth stood at 3.1% compared to Q3 2024, indicating strong liquidity.

Pillar 2: Responsible Banking Practices (Financial Soundness)

You can't foster financial well-being for others if your own house isn't in order. The second component, responsible banking practices, is the bedrock of trust in a financial institution. This is where we look at capital and efficiency ratios-the metrics that show their discipline in managing risk and costs.

Carter Bankshares maintains a strong capital position. As of September 30, 2025, their Tier 1 Capital ratio was 10.66%, which is well above regulatory minimums and shows a commitment to long-term stability. Here's the quick math: a strong capital base means they can weather economic downturns and continue lending when others pull back. Furthermore, their efficiency ratio improved to 73.43% in Q3 2025, indicating better cost management and operational leverage. This focus on soundness is what protects shareholder and depositor capital. For a deeper dive into these numbers, you can check out Breaking Down Carter Bankshares, Inc. (CARE) Financial Health: Key Insights for Investors.

Pillar 3: Commitment to Community Development

The final pillar is the bank's role as a true community partner. For a regional bank operating across Virginia and North Carolina, this means more than just having branches; it means active investment in the local economy. Their community development lending, for instance, offers financing solutions with favorable terms for mission-driven organizations focused on affordable housing and economic revitalization.

Their strategic expansion in 2025 directly supports this commitment, bringing services to new areas. They acquired two North Carolina branches and hired a new market executive in Greenville, South Carolina, demonstrating a clear, tactical focus on expanding their community footprint. This is how a bank translates a mission into physical, economic impact. They also actively support local non-profits and financial literacy programs, which helps lift up the entire community, not just their direct customers. It's a smart, long-term play that builds brand loyalty and a stronger operating environment for everyone.

Carter Bankshares, Inc. (CARE) Vision Statement

You're looking past the daily stock price moves to understand the bedrock of Carter Bankshares, Inc. (CARE): its long-term vision. The core takeaway is that the company is executing a clear, three-part strategy to solidify its position as a regional financial partner, a strategy that is directly reflected in its recent 2025 financial performance.

Their operational vision, as communicated to investors, is centered on: Striving to be your preferred financial partner by celebrating our past and delivering today's results, while advancing strategies for future growth. It's a simple, powerful statement that maps directly to their current actions, so let's break down what each part means for your investment thesis.

Celebrating Our Past: The Community Banking Foundation

The first part of the vision is about grounding their strategy in their history as a community bank, which means a focus on long-term customer relationships and stability. This isn't just corporate fluff; it's a tangible asset in a volatile market. Carter Bank & Trust, the wholly-owned subsidiary, has been serving its communities since 1974, and that legacy drives their core deposit base.

Here's the quick math: A stable, granular deposit base is gold for a bank. As of Q3 2025, their deposit base grew by 3.1% year-over-year compared to Q3 2024, and a significant 78.2% of their total deposits come from retail customers, which are typically stickier than institutional funds.

• Operate 64 branches across Virginia and North Carolina.
• Offer their signature product, the "Home of Lifetime Free Checking."
• Focus on creating opportunities for people and businesses to prosper.

Their long-standing commitment to service is defintely a competitive differentiator (the 'Home of Lifetime Free Checking' product launched in 1974, for example), and it's what keeps them a preferred partner in their local markets. Exploring Carter Bankshares, Inc. (CARE) Investor Profile: Who's Buying and Why?

Delivering Today's Results: Financial Strength and Precision

A vision is useless without execution, and the second component is all about the bottom line. Delivering today's results means showing consistent profitability and managing risk, especially the lingering challenge of nonperforming loans (NPLs). Despite managing a large NPL relationship, the company is showing clear momentum in core earnings.

For the first nine months of the 2025 fiscal year, the company reported a total net income of approximately $22.9 million ($9.0M in Q1, $8.5M in Q2, and $5.4M in Q3). This performance is underpinned by strong interest income growth. Net interest income for Q3 2025 reached $33.7 million, a solid 17.1% increase from the same period last year, driven by better funding costs and loan balances.

What this estimate hides is the operational efficiency gains; the net interest margin improved to 2.86% in Q3 2025, a sign they are effectively managing their cost of funds against their earning assets. Total assets stood at a firm $4.8 billion as of November 2025, which gives them the scale to compete in the regional banking space.

Advancing Strategies for Future Growth: Strategic Expansion and Regulatory Shift

The final, and perhaps most forward-looking, component of the vision is about strategic growth. This involves both geographic expansion and a critical regulatory move that streamlines their operations and offers greater flexibility. Growth isn't just organic; it's about making smart, deliberate moves.

The company is actively expanding its footprint, particularly in North Carolina, and has funded $450 million in construction loans over a 12-18 month horizon, demonstrating a commitment to future loan portfolio growth. Their total portfolio loans reached $3.8 billion in Q3 2025, reflecting a strong 9.4% annualized growth rate.

The most recent strategic action, announced in November 2025, was Carter Bank's approval to become a state member bank of the Federal Reserve Bank of Richmond. This move is expected to:

• Streamline the regulatory structure for better efficiency.
• Provide greater flexibility to innovate and grow.
• Mark a significant step toward future strategic objectives.

This regulatory shift, coupled with the acquisition of $55.9 million in deposits from First Reliance Bank earlier in 2025, shows a management team focused on positioning the bank for a robust finish to 2025 and beyond.

Core Values in Action: Integrity and Customer Focus

While the official Core Values aren't always a single list, their actions point to two clear, non-negotiable principles: Integrity and Customer Focus. The ongoing, transparent management of the large nonperforming credit relationship, which decreased to $235.5 million from $301.9 million in June 2023, is a testament to their commitment to financial integrity and risk management. You can't hide that kind of exposure, so they are tackling it head-on.

Customer Focus is evident in their strategic expansion, hiring new market executives in North and South Carolina to deepen local ties and ensure a personalized community banking experience. The goal is simple: be the bank people trust for the long haul. The focus is on doing the right thing for the customer, which ultimately translates into a more stable, lower-cost funding base for the bank.

Carter Bankshares, Inc. (CARE) Core Values

You're looking for the bedrock principles that drive Carter Bankshares, Inc.'s strategy, and that's smart. The bank's operational values-Customer Focus, Financial Soundness, and Community Commitment-aren't just posters on a wall; they map directly to their 2025 financial and strategic actions, which is what matters to an investor like you.

The bank's approach is fundamentally a community banking model, so their values are all about stability and local impact. This is how a regional player with $4.8 billion in assets as of June 30, 2025, positions itself for growth against the national giants.

Customer Focus: Building Lasting Relationships

Customer Focus means more than just a friendly face; it means building a product and service model designed for long-term retention. For Carter Bankshares, this value is anchored in their commitment to personalized service and accessible banking solutions across their 64 branches in Virginia and North Carolina.

A clear example of this is the bank's signature product, "Home of Lifetime Free Checking," which they've offered since 1974. That's a powerful, decades-long value proposition. Plus, in the second quarter of 2025 (Q2 2025), the bank completed a strategic Branch Purchase that acquired $55.9 million in deposits and two new North Carolina locations, directly expanding their reach to new customers and deposits.

• Offer personalized financial solutions.
• Prioritize accessible banking options.
• Maintain a high customer retention rate.

This focus is why they report a customer retention rate of around 92%, showing that their emphasis on lasting relationships is defintely working.

Financial Soundness: Ensuring Long-Term Stability

For a financial institution, stability is the ultimate promise to customers and shareholders. Financial Soundness is a core value that dictates everything from capital allocation to risk management, especially in a volatile market. The bank's strategic moves in 2025 show a clear commitment to this value.

One major move was the November 13, 2025, announcement that Carter Bank joined the Federal Reserve Bank of Richmond as a state member bank, which streamlines their regulatory structure and enhances operational efficiency. Also, their capital position remains strong: the Tier 1 Capital ratio stood at 11.01% at the end of Q1 2025, well above the regulatory 'well capitalized' threshold.

Here's the quick math on profitability and risk management:

The bank reported $22.9 million in net income for the nine months ended September 30, 2025. Still, they are actively managing their largest credit risk: the nonperforming loan (NPL) balance from a single large relationship decreased to $228.6 million by Q3 2025, down from over $300 million in 2023, thanks to ongoing curtailment payments, including $7.0 million received in Q3 2025 alone.

Community Commitment: Investing in Local Prosperity

As a community bank, Carter Bankshares' success is tied directly to the prosperity of its local markets in Virginia and North Carolina. This value is executed through direct investment, financial education, and employee volunteerism, which is the real measure of a community bank's impact.

The bank is a leader in promoting financial literacy. In 2024, their associates facilitated 84 financial education classes across their footprint. They also use their charitable giving programs, like the 'CARE Forward' initiative, to support local non-profits. This program is a tangible way they enrich lives and enable communities, which is part of their brand promise.

Their investment in the community is significant:

• Supported 180 local organizations in 2024.
• Contributed $292,000 in charitable giving in 2024.
• Associates volunteered 4,200 hours in the community in 2024.

This dedication to local engagement is how they maintain their strong local market presence and build the trust that underpins their loan growth, which hit an annualized rate of 9.4% in the third quarter of 2025. To learn more about the bank's history and business model, you can read Carter Bankshares, Inc. (CARE): History, Ownership, Mission, How It Works & Makes Money.