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Carter Bankshares conducts all its business through its wholly owned bank, Carter Bank & Trust, serving businesses and individuals in Virginia and North Carolina. Customer deposits provide its main funding source for lending and securities investments. Borrowers pay interest, securities generate interest income, and customers also pay financial-service fees. Most revenue comes from interest income after the bank pays interest on its funding.
Commercial-purpose real estate loans make up most of the loan portfolio, tying repayment closely to property cash flows, occupancy and rents. The bank also depends on retaining deposits and managing the gap between lending yields and funding costs. Its largest credit relationship involves entities in which James C. Justice, II has an interest. Those loans are no longer accruing interest and account for most of its nonperforming loans, making collections from this relationship particularly important.
Banking capital and liquidity requirements constrain how the business can grow and deploy funds. The parent company relies primarily on dividends from the bank to meet its own obligations, and federal and Virginia rules limit those payments.
The risk section is the longest, dullest part of the filing. This keeps only what can really hurt you: where it hits, how hard, when it plays out.
Every company claims an edge. Each one is checked against hard numbers like margins and returns: which hold, and which line gives way first.
National Bankshares Inc/VA competes with Carter Bankshares for local business borrowers, mortgage customers and depositors through its community bank in southwestern Virginia.
Southern First Bancshares, Inc. competes with Carter Bankshares in North Carolina for deposits and commercial, consumer and mortgage borrowers. Its planned Cary branch opening in late 2026 is worth watching for its next move in that shared market.
Virginia National Bankshares Corporation competes with Carter Bankshares for Virginia households and businesses that want deposit accounts and personalized community banking. Watch its success in attracting those depositors: both banks lean on personal customer relationships to compete.
United Bankshares Inc competes through United Bank with Carter Bankshares across Virginia and North Carolina for business borrowers, mortgage customers and retail depositors.
Shore Bancshares Inc competes through Shore United with Carter Bankshares for Virginia customers' deposits and commercial, residential and construction loans. Its lending to those Virginia customers is the part of its business most relevant to Carter's local competition.
Great Southern Bancorp Inc and Carter Bankshares both use deposits to fund commercial property, construction and home loans, so loan-rate changes and property credit pressures affect both banks' earnings. Watch the interest Great Southern earns on those loans against what it pays depositors for a comparison with Carter's lending margins.
Southern Missouri Bancorp offers a comparison for Carter Bankshares: both have roughly comparable loan portfolios with substantial property exposure, funded by deposits and borrowing from other financial institutions. Watch Southern Missouri's property-backed loan performance and funding costs for a check on the same pressures facing Carter.
S&T Bancorp Inc is a useful comparison for Carter Bankshares because both regional banks focus heavily on loans to households and smaller businesses, funded with deposits. S&T's deposit costs and credit trends among small and medium-sized business borrowers help gauge the pressures on Carter's lending earnings.
Carter Bankshares, Inc. earningsThis company
Carter Bankshares earns mainly from loan interest minus the cost of deposits and other funding, and this report will show whether that gap is widening or narrowing.
Read loan growth and loan yields alongside the cost of interest-bearing deposits and net interest margin, the spread between interest earned and paid relative to earning assets. Loan growth or yields holding up while deposit costs stay steady or fall would show lending income covering funding costs and supporting the core business. Slower loan growth or lower yields with rising deposit costs would squeeze the margin and show funding is harder to turn into interest income.
National Bankshares Inc/VA earningsNKSH
National Bankshares competes with Carter Bankshares for southwestern Virginia business borrowers, mortgage customers and depositors, and its report will show how lending and deposit competition is changing there.
Look at National Bankshares' loan growth and yields alongside its deposit costs. Steady lending without a marked rise in deposit costs would suggest local banks can attract borrowers without paying sharply more for deposits, easing pressure on Carter's loan pricing and funding costs. Weaker lending with rising deposit costs would point to competition squeezing Carter's net interest margin.
Fed Interest Rate Decision
Carter Bank & Trust earns most of its revenue from the difference between interest collected on loans and securities and interest paid on deposits and other funding, so Fed rate decisions can change both sides of that income.
Expected4.0%Last release4.0%
If it comes in above expectations
If rates rise, yields on repricing loans and new lending may increase, but deposit and other funding costs may also rise; which moves faster will determine the effect on Carter Bank & Trust’s net interest income.
If it comes in below expectations
If rates fall, yields on repricing loans and new lending may decrease, while deposit and other funding costs may also ease; which moves faster will determine the effect on Carter Bank & Trust’s net interest income.
