Carter Bankshares, Inc. (CARE)
For informational purposes only. Not financial advice. Analysis by Sedat ANAK, Founder & Editor-in-Chief | AI-powered analysis. Data sourced from SEC filings and institutional-grade financial providers. Editorially reviewed. Not financial advice.
Carter Bankshares, Inc. (CARE) trades at $33.08 with AI Score 89/100 (Grade A+). Carter Bankshares, Inc. is a regional bank holding company operating through its subsidiary, Carter Bank & Trust, offering a range of banking products and services. Market cap: $735.10M, Sector: Financial services.
Price live · AI analysis from May 9, 2026CARE stock analysis for 2026: Analysts have set a consensus price target of $27.00 for Carter Bankshares, Inc., suggesting 18.4% downside from the current price of $33.08. The AI MoonshotScore is 89/100, indicating a strong bullish outlook. Key factors: analyst coverage, AI-driven quantitative scoring.
CARE: 3/4 perspectives are bullish. Dominant signal: Seth Klarman bullish.
How is this calculated? →Carter Bankshares, Inc. (CARE) Financial Services Profile
Carter Bankshares, Inc. (CARE) is a regional bank holding company providing traditional banking services through 69 branches in Virginia and North Carolina. With a P/E ratio of 10.2 and a profit margin of 33.8%, the company focuses on commercial and consumer lending, deposit accounts, and digital banking solutions in a competitive regional market.
What Is the Investment Thesis for CARE?
Carter Bankshares, Inc. presents an investment opportunity within the regional banking sector, supported by a P/E ratio of 10.2 and a profit margin of 33.8%. Key value drivers include its established branch network across Virginia and North Carolina and its diverse loan portfolio. Growth catalysts involve expanding digital banking services and increasing market share within its existing footprint. Potential risks include interest rate sensitivity and competition from larger regional and national banks. Monitoring loan quality and managing operational costs will be crucial for maintaining profitability and shareholder value.
Based on FMP financials and quantitative analysis
CARE Key Highlights
- Market capitalization of $735.10M indicates a mid-sized regional banking institution.
- P/E ratio of 10.2 suggests the company may be undervalued compared to its earnings.
- Profit margin of 33.8% demonstrates strong profitability compared to the industry average.
- Gross margin of 80.3% indicates efficient management of revenue and costs.
- Beta of 0.44 suggests lower volatility compared to the overall market.
Who Are CARE's Competitors?
CARE is benchmarked below against 8 industry peers on price, market cap, and our AI MoonshotScore.
| Company | Price | Change | Market Cap | AI Score |
|---|---|---|---|---|
| BBT Beacon Financial Corp. | $30.11 | -0.36% | $2.52B | 56 |
| PNC The PNC Financial Services Group, Inc. | $251.93 | +0.98% | $101.17B | 75 |
| ALLY Ally Financial Inc. | $46.23 | +2.00% | $14.17B | 54 |
| MCHB Mechanics Bank | $16.24 | +0.50% | $3.58B | 71 |
| STLE Steele Bancorp Inc. | $43.05 | -0.67% | $80.01M | 69 |
| NASB NASB Financial, Inc. | $40.30 | +0.00% | $289.22M | 68 |
| CIBEY Commercial International Bank (Egypt) S.A.E | $2.63 | +3.54% | $8.68B | 67 |
| GBOOY Grupo Financiero Banorte, S.A.B. de C.V. | $54.16 | +0.39% | $30.47B | 67 |
AI Score by Stock Expert AI · Price data: FMP / Yahoo Finance
What Are CARE's Key Strengths?
- Strong presence in Virginia and North Carolina.
- Diverse loan portfolio.
- Experienced management team.
- High gross profit margin.
What Are CARE's Weaknesses?
- Limited geographic diversification.
- Reliance on traditional banking services.
- Smaller scale compared to national banks.
- Lack of dividend yield.
What Could Drive CARE Stock Higher?
- Potential interest rate hikes by the Federal Reserve could increase net interest margin.
- Expansion of digital banking services to attract new customers.
- Strategic partnerships with fintech companies to enhance technology capabilities.
- Focus on commercial lending to drive revenue growth.
What Are the Key Risks for CARE?
- Financial-distress signal — its Altman Z-Score of -0.52 sits in the distress zone (elevated bankruptcy risk).
- Economic downturn in Virginia and North Carolina could impact loan quality.
- Increased competition from larger national banks.
- Interest rate fluctuations could affect profitability.
- Cybersecurity threats and data breaches.
- Regulatory compliance costs.
What Are the Growth Opportunities for CARE?
- Expansion of Digital Banking Services: Carter Bankshares can capitalize on the growing demand for digital banking by enhancing its online and mobile platforms. Investing in user-friendly interfaces, mobile deposit features, and personalized financial management tools can attract and retain customers. The digital banking market is projected to reach $9.0 trillion in transaction value by 2027, offering a significant growth opportunity for Carter Bankshares.
- Strategic Branch Expansion: While digital banking is growing, physical branches remain important for customer service and relationship building. Carter Bankshares can strategically expand its branch network in underserved markets within Virginia and North Carolina. Identifying areas with strong economic growth and limited banking options can drive deposit growth and loan origination. This expansion should be coupled with modern branch designs and technology integration to enhance the customer experience.
- Increased Commercial Lending: Carter Bankshares can focus on expanding its commercial lending portfolio by targeting small and medium-sized businesses (SMBs) in its operating region. Offering tailored loan products, competitive interest rates, and personalized service can attract SMB clients. The SMB lending market is estimated at $800 billion annually, presenting a substantial growth opportunity for Carter Bankshares.
- Wealth Management Services: Introducing or expanding wealth management services can generate fee income and diversify revenue streams. Offering financial planning, investment management, and retirement planning services can attract high-net-worth individuals and families. The wealth management market is experiencing steady growth, driven by an aging population and increasing demand for financial advice.
- Partnerships with Fintech Companies: Collaborating with fintech companies can enhance Carter Bankshares' technology capabilities and expand its product offerings. Partnering with fintechs specializing in areas like payment processing, lending, and cybersecurity can improve efficiency and customer experience. Fintech partnerships can provide access to innovative technologies and new customer segments.
What Opportunities Does CARE Have?
- Expansion of digital banking services.
- Growth in commercial lending.
- Strategic acquisitions of smaller banks.
- Increased wealth management offerings.
What Threats Does CARE Face?
- Competition from larger national banks.
- Interest rate fluctuations.
- Economic downturn in operating region.
- Increasing regulatory requirements.
What Are CARE's Competitive Advantages?
- Established branch network in Virginia and North Carolina.
- Strong relationships with local businesses and communities.
- Experienced management team with local market knowledge.
- Conservative lending practices and risk management.
What Does CARE Do?
Carter Bankshares, Inc., founded in 1974 and headquartered in Martinsville, Virginia, operates as the bank holding company for Carter Bank & Trust. The bank provides a comprehensive suite of banking products and services tailored to individuals and businesses. Its deposit products include checking, savings, retirement, and money market accounts, along with certificates of deposit. The company's lending portfolio encompasses commercial loans, consumer loans (including auto, home improvement, and education financing), residential mortgages, real estate construction and acquisition loans, and home equity lines of credit. Carter Bankshares also offers credit cards and originates both fixed and variable-rate mortgage loans. Beyond traditional banking, Carter Bankshares provides services such as safe deposit boxes, direct deposit, online and mobile banking, bill pay, and ATM access. The bank also offers title insurance and treasury management services. With 69 branches across Virginia and North Carolina, Carter Bankshares focuses on building relationships within its communities while adapting to the evolving digital landscape.
What Products and Services Does CARE Offer?
- Accepts deposits into checking, savings, and money market accounts.
- Provides commercial loans to businesses.
- Offers consumer loans for automobiles, home improvements, and education.
- Originates residential mortgages.
- Provides real estate construction and acquisition loans.
- Offers home equity lines of credit.
- Issues credit cards.
- Provides online and mobile banking services.
How Does CARE Make Money?
- Generates revenue from interest earned on loans.
- Collects fees for services such as account maintenance and transactions.
- Manages risk by diversifying its loan portfolio.
- Expands its customer base through branch network and digital channels.
What Industry Does CARE Operate In?
Carter Bankshares operates in the competitive regional banking sector. The industry is characterized by increasing consolidation, technological advancements, and evolving regulatory requirements. Regional banks like Carter Bankshares face competition from larger national banks and credit unions. Key trends include the growing adoption of digital banking services and the increasing importance of cybersecurity. The regional banking sector is influenced by interest rate movements and economic conditions in its operating areas.
Who Are CARE's Key Customers?
- Individuals seeking personal banking services.
- Small and medium-sized businesses requiring commercial loans.
- Real estate developers needing construction financing.
- Homeowners seeking mortgages and home equity loans.
Carter Bankshares, Inc. (CARE) Valuation Context
Valued at $735.10M, CARE is classified as a small-cap stock. Relative to its peer group, CARE's quantitative score of 89/100 is above the peer average of 65/100.
CARE Revenue & Earnings Trend
In Q1 2026, CARE generated $130.2M in top-line revenue, marking a sequential increase of 101.7%. The company recorded net income of $85.8M, with diluted EPS of $3.93. Revenue has increased across the last three reported quarters, suggesting sustained momentum for this small-cap Financial Services company. Across the four most recent quarters, CARE averaged $1.23 in diluted EPS.
Company Profile
Carter Bankshares, Inc. operates in the Banks - Regional industry within the Financial Services sector. It is headquartered in Martinsville, US. The company is led by CEO Litz H. Van Dyke. CARE has traded publicly since 2007.
ROE 25%Key Financial Metrics
Return on equity for Carter Bankshares, Inc. stands at 24.8%, a gauge of how efficiently it converts shareholder capital into profit. Return on assets is 2.3%, showing how much profit it generates from its asset base. CARE trades at a trailing price-to-earnings ratio of 10.20, below the Financial Services sector average of ~18x. Its free cash flow yield is 43.6%, a gauge of the cash the business throws off relative to its market value. A current ratio of 0.14 means current liabilities exceed short-term assets, a liquidity point worth watching. Its earnings yield is 14.6%, the inverse of the P/E and a quick read on earnings relative to price.
F-Score 8/9Financial Health
Carter Bankshares, Inc.'s Piotroski F-Score is 8/9, a 9-point checklist of profitability, leverage and efficiency — signaling solid underlying fundamentals. Its Altman Z-Score of -0.52 places it in the distress zone, a signal of elevated financial risk.
FY2026 estForward Outlook
Wall Street analysts project Carter Bankshares, Inc. revenue of about $257.8M for fiscal 2026, with EPS near $6.43.
CARE Financials
Fundamental Snapshot
Based on FMP financials and quantitative analysis · FY 2025
Bull Case vs Bear Case
Bull Case
- Recent insider buying suggests confidence from leadership in the company's future performance.
- Community sentiment has turned positive, with discussions highlighting strong customer service and local engagement.
- Analysts note improved loan growth and stable asset quality, indicating solid operational fundamentals.
- Market perception is buoyed by a favorable economic outlook in the regions Carter Bankshares operates.
Bear Case
- Concerns about rising interest rates could impact profitability and loan demand, creating uncertainty.
- Social sentiment shows skepticism about the bank's ability to compete with larger players in the market.
- Recent regulatory changes have raised questions about compliance costs and operational challenges.
- Some community members express worries over potential economic slowdowns affecting local businesses and, in turn, the bank's performance.
AI-generated arguments based on insider flow, news sentiment and technicals — not financial advice · March 2026
Recent Quarterly Results
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q1 2026 | $130M | $86M | $3.93 |
| Q4 2025 | $65M | $8M | $0.39 |
| Q3 2025 | $64M | $5M | $0.24 |
| Q2 2025 | $62M | $9M | $0.37 |
Based on FMP financials and quantitative analysis
CARE Latest News
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Stocks That Hit 52-Week Highs On Thursday
· Dec 12, 2019
CARE Analyst Consensus
Consensus Rating
Aggregated Buy/Hold/Sell recommendations from Benzinga, Yahoo Finance, and Finnhub for CARE.
Price Targets
Consensus target: $27.00
CARE MoonshotScore
What does this score mean?
The MoonshotScore rates CARE's growth potential on a scale of 0-100 across multiple factors including innovation, market disruption, financial health, and momentum.
Leadership: Litz H. Van Dyke
CEO
Litz H. Van Dyke serves as the CEO of Carter Bankshares, Inc. His career spans several decades in the banking industry, with a focus on community banking and regional market development. He has held various leadership positions in financial institutions, demonstrating expertise in strategic planning, risk management, and customer relationship management. Van Dyke's experience includes overseeing branch operations, commercial lending, and regulatory compliance. His deep understanding of the regional banking landscape is crucial for Carter Bankshares' growth and stability.
Track Record: Under Litz H. Van Dyke's leadership, Carter Bankshares has focused on expanding its digital banking capabilities and strengthening its presence in key markets. Key achievements include improving operational efficiency, enhancing customer service, and maintaining strong asset quality. Strategic decisions have centered on investing in technology and expanding commercial lending activities. Van Dyke has also overseen efforts to navigate the evolving regulatory environment and maintain compliance.
What Investors Ask About Carter Bankshares, Inc. (CARE) — Financial Services
What does Carter Bankshares, Inc. do?
Carter Bankshares, Inc. operates as the bank holding company for Carter Bank & Trust, providing a range of banking products and services to individuals and businesses. These include deposit accounts, commercial and consumer loans, residential mortgages, and digital banking solutions. The company focuses on serving communities in Virginia and North Carolina through its 69 branch locations, offering personalized service and local market expertise. Carter Bankshares aims to build long-term relationships with its customers while adapting to the evolving financial landscape.
What do analysts say about CARE stock?
Analyst coverage of Carter Bankshares, Inc. (CARE) focuses on its regional market position, financial performance, and growth potential. Key valuation metrics include its P/E ratio of 10.2 and profit margin of 33.8%. Growth considerations involve its ability to expand digital banking services, manage interest rate risk, and maintain asset quality. Analyst consensus typically reflects expectations for steady growth in line with the regional banking sector. Investors should conduct their own due diligence and consider their individual risk tolerance.
What are the main risks for CARE?
Carter Bankshares, Inc. faces several key risks, including economic conditions in its operating region, competition from larger national banks, and interest rate fluctuations. An economic downturn in Virginia and North Carolina could impact loan quality and profitability. Increased competition from national banks could erode market share. Interest rate changes could affect net interest margin and overall financial performance. Additionally, cybersecurity threats and regulatory compliance costs pose ongoing challenges for the company.
How sensitive is CARE to interest rate changes?
As a regional bank, Carter Bankshares' profitability is sensitive to interest rate changes. Its net interest margin, the difference between interest income and interest expense, is directly affected by movements in interest rates. Rising interest rates can increase the yield on its loan portfolio, boosting profitability, while declining rates can compress margins. Carter Bankshares manages this risk through strategies such as adjusting loan pricing, hedging interest rate exposure, and diversifying its funding sources. Monitoring interest rate trends and their potential impact on the bank's financial performance is crucial.
What regulatory challenges does Carter Bankshares, Inc. face?
Carter Bankshares, Inc. operates within a highly regulated environment, facing ongoing scrutiny from federal and state banking regulators. Key regulatory challenges include maintaining adequate capital levels, complying with lending regulations, and implementing cybersecurity measures. The company must adhere to regulations such as the Dodd-Frank Act and the Bank Secrecy Act, which require significant investment in compliance infrastructure and personnel. Changes in regulatory requirements can increase compliance costs and impact the bank's operations. Effective risk management and compliance programs are essential for navigating the regulatory landscape.
What are the key factors to evaluate for CARE?
Carter Bankshares, Inc. (CARE) holds an AI score of 89/100 (high). P/E: 10.2x vs the S&P 500's ~20-25x. Analysts target $27.00 (-18%). Not financial advice.
How frequently does CARE data refresh on this page?
CARE prices update in real time during U.S. market hours. Fundamentals refresh after quarterly filings; analyst ratings and AI insights update daily; news is aggregated continuously.
What has driven CARE's recent stock price performance?
Carter Bankshares, Inc. (CARE) moves on earnings results, analyst revisions, sector rotation, and market sentiment. Notable catalyst: Strong presence in Virginia and North Carolina. See the News tab for the latest drivers. Past performance does not predict future results.
Disclaimer: This content is for informational purposes only and does not constitute investment advice. Always do your own research and consult a financial advisor.
Official Resources
Data provided for informational purposes only.
- Information is based on available company data and market analysis as of 2026-05-09.
- Financial metrics are based on the most recent available data.
- Analyst opinions may vary.