Bank of America for Virginia and North Carolina.

A regional Wells Fargo, serving communities in Virginia and North Carolina.

JPMorgan Chase, but as a community bank for the Virginia and North Carolina area.

• Deposit Accounts: Offers various accounts for individuals and businesses to save and manage their money, including checking, savings, money market, retirement, and certificates of deposit.
• Commercial Loans: Provides secured and unsecured lending solutions to businesses for various operational and investment needs.
• Consumer Loans: Offers a range of secured and unsecured loans to individuals, including auto, home improvement, education, personal investments, residential mortgages, home equity lines of credit, and credit cards.
• Real Estate Construction and Acquisition Loans: Specializes in loans for the construction, acquisition, and development of real estate properties.
• Treasury and Corporate Cash Management Services: Provides specialized financial services to businesses for managing their cash flow, payments, and liquidity.
• General Banking Services: Offers a suite of convenient banking amenities like online and mobile banking, bill pay, debit cards, ATMs, and safe deposit boxes.

Major Customers of Carter Bankshares (CARE)

Carter Bankshares, Inc. (CARE) operates as a community bank, serving a diverse customer base rather than a few major corporate clients. The company primarily sells its banking products and services to two broad categories of customers:

• Individual Consumers: This category includes individuals seeking personal banking services such as checking, savings, retirement, and money market accounts. It also encompasses those applying for consumer loans (e.g., for automobiles, home improvements, education, personal investments), residential mortgages, home equity lines of credit, and credit cards.

• Commercial Businesses: This category comprises various small to medium-sized businesses and commercial entities. They utilize Carter Bank & Trust for commercial loans (secured and unsecured), real estate construction and acquisition loans, deposit products, and treasury and corporate cash management services.

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The key risks to Carter Bankshares (CARE) primarily revolve around its credit portfolio and concentrations within it.

1. Highly Concentrated Credit Risk and Elevated Asset-Quality Pressures: Carter Bankshares faces significant credit and concentration risk, driven by a materially elevated level of problem loans. As of December 31, 2025, nonperforming loans totaled $244.0 million, representing 6.29% of the total loan portfolio. This is heavily skewed towards a single large relationship, identified as Justice-affiliated entities, which accounts for $214.0 million. This single relationship constitutes 5.5% of total loans and 87.7% of nonperforming assets. These loans are on nonaccrual, resulting in approximately $91.2 million in foregone interest income and higher FDIC insurance assessments, directly pressuring the bank's earnings and capital flexibility.
2. Substantial Commercial Real Estate (CRE) Exposure: The company has a significant concentration in commercial real estate loans, which regulators may scrutinize closely. Approximately $2.2 billion of its loan portfolio is in CRE (excluding construction), representing 57.1% of total loans. This includes $373.5 million in hospitality loans (9.6%) and $481.8 million in CRE construction loans (12.4%). Any adverse movements in the commercial real estate markets could significantly impact the bank's capital and profitability.

• The rise of digital-only banks and fintech companies that operate with significantly lower overheads, offering more competitive rates and often superior digital user experiences, directly challenging Carter Bankshares' traditional branch-heavy model for deposits and loans.
• The expansion of large technology companies into financial services, leveraging their existing customer bases, data analytics, and user-friendly platforms to offer products such as high-yield savings accounts and payment solutions, thereby siphoning off specific revenue streams and customer segments from traditional banks.

Addressable Markets for Carter Bankshares' Products and Services

• Commercial Loans:
  • In North Carolina, the commercial banking industry is projected to have a market size of $68.0 billion in 2026.
  • In Virginia, the commercial banking industry has been experiencing an average annual growth rate of 9.2% from 2021 to 2026.
  • Total commercial real estate lending volume in Virginia was $19.2 billion in 2024.
  • Small business loans provided by banks in North Carolina amount to $9.9 billion annually.
  • Small business loans provided by banks in Virginia totaled $14 billion in 2024.
• Deposit Products (Checking, Savings, Retirement, Money Market Accounts, Certificates of Deposit):
  • In North Carolina, total deposits in all banks were $693 billion in 2024.
  • In Virginia, total deposits in all banks were $296 billion in 2024.
• Residential Mortgages:
  • In North Carolina, new home loans booked totaled $37.2 billion in 2024.
  • In Virginia, new home loans booked totaled $35.2 billion in 2024.
  • Virginia saw 103,722 home sales in 2025, with a median price of $425,000.

The available information does not provide specific addressable market sizes for individual consumer loan categories such as secured and unsecured loans for automobiles, home improvements, education, overdraft protection, and personal investments, nor for credit cards, treasury and corporate cash management services, or title insurance, broken down for the specific regions of Virginia and North Carolina. While the general commercial banking market size in North Carolina includes consumer loans, and Virginia's loan broker market includes home equity and vehicle loans, granular market sizes for each specific product are not explicitly available in the search results.

Carter Bankshares, Inc. (NASDAQ: CARE) is expected to drive future revenue growth over the next two to three years through several key strategies focused on expanding its lending portfolio, optimizing its net interest margin, growing noninterest income, and executing strategic market expansion and operational improvements.

Here are the anticipated drivers of revenue growth:

1. Continued Loan Growth, particularly in Commercial Lending: Carter Bankshares has demonstrated an increase in its total portfolio loans, indicating a robust lending environment. The company has noted good momentum in its commercial lending platform and a healthy loan pipeline, which includes future revenue generation from existing construction loans as projects come online over the next 12 to 18 months. For instance, total portfolio loans increased by $43.9 million, or 4.5% on an annualized basis, to $3.9 billion at December 31, 2025, from September 30, 2025, and grew 7.0% from December 31, 2024.
2. Expansion of Net Interest Margin: The bank has reported margin expansion, driven by a decline in funding costs and an increase in the yield on average interest-earning assets. Net interest income for the fourth quarter of 2025 increased $0.9 million to $34.6 million compared to the third quarter of 2025, and $5.5 million compared to the fourth quarter of 2024, primarily due to a nine-basis-point decline in funding costs. This focus on optimizing interest income relative to interest expenses is a crucial component of revenue growth for financial institutions.
3. Growth in Noninterest Income: Carter Bankshares has seen an increase in noninterest income, primarily attributable to higher insurance commissions and other noninterest income. For the full year 2025, noninterest income was $22.4 million, an increase of $1.0 million, or 4.8%, compared to 2024. Diversifying revenue streams beyond traditional lending through such services contributes to overall financial performance.
4. Strategic Initiatives and Targeted Market Expansion: The company has undertaken strategic initiatives such as a brand relaunch, branch renovations, and the launch of new websites. More directly impacting revenue growth is the strategic branch acquisition in North Carolina, which signifies expansion into new markets and customer bases. Furthermore, a continued focus on resolving nonaccrual credit relationships is expected to improve loan portfolio quality and yield, indirectly boosting interest income.

Share Repurchases

• On May 20, 2025, Carter Bankshares' Board of Directors approved a share repurchase program authorizing the buyback of up to $20 million of its common stock, which was set to remain active until May 14, 2026.
• By December 30, 2025, the aforementioned $20 million share repurchase program had concluded, with the company repurchasing 1,124,690 shares.
• A new share repurchase program was authorized by the Board on February 2, 2026, for up to $10 million of common stock, pending non-objection from the Federal Reserve Bank of Richmond, to be executed over a twelve-month period.

Share Issuance

• No information regarding significant share issuances for capital raising purposes was found for Carter Bankshares over the last 3-5 years.

Inbound Investments

• No information regarding large inbound investments made in Carter Bankshares by third-parties over the last 3-5 years was found.

Outbound Investments

• On May 27, 2025, Carter Bank, a subsidiary of Carter Bankshares, completed the acquisition of deposits from two First Reliance Bank branches in Mooresville and Winston-Salem, North Carolina.
• This acquisition included $55.9 million in deposits and the facility of the Winston-Salem branch.
• Carter Bank agreed to pay a 4.6% deposit premium on the average closing balance of certain deposit accounts as part of the acquisition.

Capital Expenditures

• Carter Bankshares' average capital expenditures as a percentage of revenue over the past five years, including the latest trailing twelve months, have been reported as 0%.
• While specific dollar values for capital expenditures were not provided, strategic initiatives mentioned for 2025 included branch renovations and new websites.