Carter Bankshares, Inc. (CARE) | Investment Case

1. Company Snapshot

1.a. Company Description

Carter Bankshares, Inc.operates as the bank holding company for Carter Bank & Trust that provides various banking products and services.It accepts various deposit products, including checking, savings, retirement, and money market accounts, as well as longer-term certificates of deposits.

The company also offers commercial loans comprising secured and unsecured loans; consumer loans, such as secured and unsecured loans for financing automobiles, home improvements, education, overdraft protection, and personal investments, as well as residential mortgages; real estate construction and acquisition loans; home equity lines of credit; and credit cards, as well as originates and holds fixed and variable rate mortgage loans.In addition, it provides other banking services that include safe deposit boxes, direct deposit of payroll and social security checks, online banking, bill pay, online account opening, mobile deposit, mobile banking, debit cards, e-statements, and ATM services; title insurance and other financial institution-related products and services; and treasury and corporate cash management services.It operates through 69 branches in Virginia and North Carolina.

Carter Bankshares, Inc.was founded in 1974 and is headquartered in Martinsville, Virginia.

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1.b. Last Insights on CARE

Carter Bankshares' recent performance was negatively impacted by a $1.9 million net loss in the fourth quarter of 2023, which suggests a decline in profitability. Although the company reported a $8.3 million net income in Q4 2024, its pre-tax pre-provision income was lower than the third quarter of 2024. Additionally, the lack of recent share buyback activity and recent presentations at conferences, such as the 45th Annual TD Cowen Health Care Conference, do not provide significant positive drivers for the company's recent performance.

1.c. Company Highlights

Last Price	19.03
Change Percentage	0.37%
Open	18.99
Previous Close	18.96
Market Cap ( Millions)	432
Volume	36670
Year High	20.53
Year Low	13.61
M A 50	18.29
M A 200	17.39

FCF Yield	6.78%
Dividend Yield	0.00%
ROE	7.77%
Debt / Equity	42.51%
Net Debt / EBIDTA	151.36%
Price To Book	1.03
Price Earnings Ratio	13.61
Price To FCF	14.75
Price To sales	1.9
EV / EBITDA	11.05

2. Transcript Summary

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3. NewsRoom

Carter Bank Enters the South Carolina Market With Expansion Into Greenville

Nov -20

Source: businesswire.com

Campbell & CO Investment Adviser LLC Purchases New Shares in Carter Bankshares, Inc. $CARE

Nov -18

Source: defenseworld.net

Carter Bank Joins the Federal Reserve Bank of Richmond as a State Member Bank

Nov -13

Source: businesswire.com

New Strong Sell Stocks for Oct. 29th

Oct -29

Source: zacks.com

Compared to Estimates, Carter Bankshares (CARE) Q3 Earnings: A Look at Key Metrics

Oct -23

Source: zacks.com

Carter Bankshares, Inc. (CARE) Misses Q3 Earnings and Revenue Estimates

Oct -23

Source: zacks.com

Carter Bankshares, Inc. Announces Third Quarter 2025 Financial Results

Oct -23

Source: accessnewswire.com

Smith+Nephew announce latest scientific data supporting new ALLEVYN™ COMPLETE CARE 5-Layer Foam Dressing for pressure injury prevention

Oct -03

Source: globenewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.00%)

6. Segments

Banking and Related Activities

Expected Growth: 11.0%

Carter Bankshares, Inc.'s 11.0% growth in Banking and Related Activities is driven by strategic expansion into new markets, increased lending activities, and improved operating efficiency. Additionally, the bank's focus on digital transformation, enhanced customer experience, and effective risk management have contributed to its growth momentum.

7. Detailed Products

Consumer Banking

Provides personal banking services, including checking and savings accounts, credit cards, personal loans, and mortgages.

Commercial Banking

Offers financial solutions for businesses, including cash management, commercial lending, and treasury management services.

Mortgage Banking

Provides mortgage lending services, including residential and commercial mortgage loans, refinancing, and home equity loans.

Wealth Management

Offers investment, trust, and brokerage services to individuals, families, and institutions.

Treasury Management

Provides cash management and treasury services to businesses, including account management, payment processing, and risk management.

8. Carter Bankshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Carter Bankshares, Inc. is medium due to the presence of alternative financial institutions and digital payment systems.

Bargaining Power Of Customers

The bargaining power of customers for Carter Bankshares, Inc. is low due to the lack of concentration of buyers and the limited ability of individual customers to influence prices.

Bargaining Power Of Suppliers

The bargaining power of suppliers for Carter Bankshares, Inc. is medium due to the presence of multiple suppliers and the moderate level of dependence on these suppliers.

Threat Of New Entrants

The threat of new entrants for Carter Bankshares, Inc. is high due to the relatively low barriers to entry and the attractiveness of the financial services industry.

Intensity Of Rivalry

The intensity of rivalry for Carter Bankshares, Inc. is high due to the presence of multiple competitors and the high level of competition in the financial services industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	67.13%
Debt Cost	6.59%
Equity Weight	32.87%
Equity Cost	8.68%
WACC	7.28%
Leverage	204.27%

11. Quality Control: Carter Bankshares, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Citizens Financial Services

A-Score: 6.0/10

Value: 7.0

Growth: 5.1

Quality: 5.5

Yield: 7.0

Momentum: 6.5

Volatility: 4.7

1-Year Total Return ->

Mid-Southern Bancorp

A-Score: 5.9/10

Value: 8.9

Growth: 1.0

Quality: 6.1

Yield: 2.0

Momentum: 8.5

Volatility: 9.0

1-Year Total Return ->

Carter Bankshares

A-Score: 4.9/10

Value: 5.7

Growth: 4.3

Quality: 5.9

Yield: 0.0

Momentum: 6.0

Volatility: 7.7

1-Year Total Return ->

Blue Foundry Bank

A-Score: 4.7/10

Value: 8.8

Growth: 5.1

Quality: 4.6

Yield: 0.0

Momentum: 2.5

Volatility: 7.3

1-Year Total Return ->

Greene County Bancorp

A-Score: 4.6/10

Value: 5.4

Growth: 6.6

Quality: 6.8

Yield: 3.0

Momentum: 1.0

Volatility: 5.0

1-Year Total Return ->

First Foundation

A-Score: 3.6/10

Value: 9.2

Growth: 1.8

Quality: 3.9

Yield: 1.0

Momentum: 2.0

Volatility: 4.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-0.35%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.28%

Carter Bankshares, Inc. - US1461031064

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CARE

1.c. Company Highlights

Weak Momentum

Average Yield

Average Growth

Earnings Beats

Fairly Valued

Lower Yield

Stable Momentum

Average Quality

Expensive

Revenues Beats

Revenues Miss

Strong Momentum

Medium Volatility

Earnings Miss

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.00%)

6. Segments

Banking and Related Activities

Expected Growth: 11.0%

7. Detailed Products

Consumer Banking

Commercial Banking

Mortgage Banking

Wealth Management

Treasury Management

8. Carter Bankshares, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Carter Bankshares, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

19.03$

Current Price

19.03$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA