Carter Bankshares, Inc. has reported its financial results for the second quarter of 2025, showing a quarterly net income of $8.5 million, or $0.37 diluted earnings per share (EPS). This is a decrease from the first quarter of 2025, which reported a net income of $9.0 million, or $0.39 diluted EPS. However, compared to the second quarter of 2024, there has been significant growth, as the net income for the same period in 2024 was $4.8 million, or $0.21 diluted EPS.
Net interest income for the second quarter of 2025 was $32.4 million, up from $30.1 million in the first quarter of 2025 and $28.1 million in the second quarter of 2024. Pre-tax pre-provision income was $8.0 million for the second quarter of 2025, a decrease from $9.0 million in the first quarter of 2025, but an increase from $6.2 million in the second quarter of 2024.
For the six months ended June 30, 2025, net income was $17.5 million, or $0.76 diluted EPS, compared to net income of $10.6 million, or $0.46 diluted EPS for the same period in 2024. Net interest income for the six months ended June 30, 2025, was $62.5 million, up from $56.5 million for the same period in 2024. Pre-tax pre-provision income for the six months ended June 30, 2025, was $17.0 million, compared to $13.4 million for the same period in 2024.
The company completed the acquisition of two leased branch facilities and associated deposits in North Carolina, which added $55.9 million of deposits to its portfolio. Additionally, Carter Bankshares, Inc. announced a stock repurchase program to buy up to $20.0 million of the company’s common stock through May 14, 2026. As of June 30, 2025, the company has repurchased 547,332 shares of common stock at a total cost of $9.1 million.
The company's financial results have been impacted by loans in the bank's loan portfolio, particularly those related to the "Justice entities." Despite this, the company received $9.5 million of curtailment payments during the second quarter of 2025, reducing the aggregate nonperforming loan (NPL) balance to $235.5 million as of June 30, 2025, from $301.9 million as of June 30, 2023.
Financial highlights for the three and six months ended June 30, 2025, revealed that total portfolio loans increased $59.6 million, or 6.5%, from March 31, 2025. Total deposits increased $21.3 million, or 2.0%, compared to March 31, 2025 and $340.9 million, or 8.8%, compared to June 30, 2024. Net interest income totaled $32.4 million, an increase of $2.2 million, or 7.4%, compared to the prior quarter, and an increase of $4.3 million, or 15.2%, compared to the year-ago quarter.
CEO Litz H. Van Dyke stated that the bank is seeing margin expansion and solid loan growth, with an annualized loan growth of 6.5% reflecting momentum in the commercial lending platform. Van Dyke also mentioned the completion of the branch purchase and the stock repurchase program. Despite the impact of the nonperforming credit relationship on financial and credit metrics, Van Dyke expressed confidence in the company's performance and asset quality.
Overall, the company's financial condition saw total assets increase to $4.8 billion at June 30, 2025, from $4.7 billion at March 31, 2025. Total portfolio loans increased to $3.7 billion at June 30, 2025, and total deposits increased to $4.2 billion at June 30, 2025.
Noninterest income decreased to $4.9 million for the second quarter of 2025, primarily due to a decrease compared to the previous quarter, while noninterest expense increased to $29.3 million for the second quarter of 2025. Net interest income for the second quarter of 2025 increased to $32.4 million, primarily due to declines in funding costs and increases in the yield on average interest-earning assets.
The market has reacted to these announcements by moving the company's shares -1.06% to a price of $17.81. For the full picture, make sure to review Carter Bankshares's 8-K report.
