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Carter Bankshares Reports Surge in Net Income

Carter Bankshares, Inc. has announced its financial results for the fourth quarter and full year 2025, showing a significant increase in net income compared to the previous periods. In the fourth quarter of 2025, the company reported a net income of $8.5 million, a notable improvement from $5.4 million in the third quarter of 2025 and $8.3 million in the fourth quarter of 2024.

The net interest income for the fourth quarter of 2025 was $34.6 million, up from $33.7 million in the third quarter of 2025 and $29.1 million in the fourth quarter of 2024. For the full year 2025, the net interest income was $130.8 million, compared to $114.5 million in 2024.

The pre-tax pre-provision income also saw an increase, reaching $8.8 million in the fourth quarter of 2025, up from $10.4 million in the third quarter of 2025 and $5.7 million in the fourth quarter of 2024. Similarly, for the full year 2025, pre-tax pre-provision income was $36.2 million, a significant rise from $25.8 million in 2024.

The company's total portfolio loans increased by $43.9 million in the fourth quarter of 2025, reaching $3.9 billion at December 31, 2025, and marking a 7.0% increase from December 31, 2024. Net interest margin also increased, reaching 2.92% in the fourth quarter of 2025, compared to 2.57% in the same period of the previous year.

The nonperforming loans (NPLs) decreased to $244.0 million at December 31, 2025, down from $258.7 million at September 30, 2025. The (recovery) for credit losses was $2.2 million for the fourth quarter of 2025, compared to a provision of $2.9 million for the third quarter of 2025 and a (recovery) of $5.1 million for the fourth quarter of 2024.

Furthermore, the company's net interest income increased to $34.6 million in the fourth quarter of 2025, up from $33.7 million in the third quarter of 2025 and $29.1 million in the fourth quarter of 2024. The full-year net interest income also saw a significant increase, reaching $130.8 million in 2025, compared to $114.5 million in 2024.

On the noninterest income side, the company reported $5.2 million for the fourth quarter of 2025, slightly lower than the third quarter of 2025 and the fourth quarter of 2024. However, the full-year noninterest income was $22.4 million, representing a 4.8% increase from 2024.

Noninterest expenses totaled $31.0 million in the fourth quarter of 2025, up from the previous quarter, and the full-year noninterest expense was $117.1 million, showing a 6.4% increase from 2024.

The market has reacted to these announcements by moving the company's shares 0.0% to a price of $20.38. For more information, read the company's full 8-K submission here.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.

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