Carter Bankshares, Inc. (NASDAQ: CARE) opened a new branch in Greenville, South Carolina, extending its footprint beyond its existing Virginia and North Carolina locations. The Greenville office, located on Main Street near the downtown business district, is expected to add roughly $55 million in deposits and support a portfolio of small‑ and mid‑size commercial loans in a high‑growth market.
The expansion follows a series of recent openings in Charlotte, Winston‑Salem, Raleigh, and Gastonia, and the acquisition of two North Carolina branches from First Reliance Bank in May 2025, which added $55.9 million in deposits. Management views the Greenville launch as a strategic lever to capture a diversified economy that is close to the bank’s North Carolina operations, allowing it to deliver its relationship‑driven model to a new customer base while leveraging its existing regional expertise.
Carter Bank’s Q3 2025 financial results, released on October 23, provide context for the expansion. Net income fell to $5.4 million, or $0.24 diluted EPS, missing the consensus estimate of $0.43. Revenue, driven by net interest income, totaled $33.7 million, below the $39.2 million forecast. The miss is largely attributable to a $6.5 million hit from large nonaccrual loans to the Justice Entities, which continue to weigh on interest income. Despite the earnings shortfall, the bank’s net interest margin improved to 2.86% from 2.80% in Q2, reflecting a modest gain in pricing power amid a competitive rate environment.
The bank’s loan portfolio grew by $88.5 million, or 9.4% annualized, reaching $3.8 billion as of September 30. This growth, coupled with an improved efficiency ratio of 73.4% from 78.6% in Q2, signals that the bank is managing costs effectively while expanding credit. Management emphasized that the Greenville branch will target small and mid‑size businesses, a segment that has shown resilience in the region’s construction and manufacturing sectors. Chief Lending Officer Rich Spiker noted that the new location will “provide the resources of a large national bank with a high‑touch, solutions‑based approach,” reinforcing the bank’s strategy to blend scale with local service.
Analysts have mixed views on the bank’s outlook. While the earnings miss has raised concerns about the impact of nonperforming loans, the bank’s guidance for the remainder of 2025 remains unchanged, indicating confidence in maintaining profitability through cost discipline and continued loan growth. The Greenville expansion is seen as a long‑term growth engine that could offset short‑term headwinds, positioning Carter Bank to capture market share in a competitive Carolinas banking landscape.
The expansion into Greenville aligns with Carter Bank’s broader strategy to strengthen its presence in the Carolinas, leveraging regional synergies and a relationship‑driven model to drive deposit and loan growth. The move is expected to enhance the bank’s competitive positioning while providing a platform for future expansion in the region.
The bank’s recent regulatory milestone—approval to become a state member bank regulated by the Federal Reserve Bank of Richmond—further streamlines its operations and supports its growth initiatives.
Overall, the Greenville opening represents a significant milestone for Carter Bank, combining strategic geographic expansion with a focus on local customer relationships, while the bank navigates ongoing challenges from nonaccrual loans and earnings pressure.
The expansion is a material event that reflects the bank’s commitment to growth and its ability to adapt to market conditions, providing investors and stakeholders with a clearer view of its long‑term strategy.
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