| Valuation method | Value, $ | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | 148.11 | 723 |
| Intrinsic value (DCF) | 4.73 | -74 |
| Graham-Dodd Method | 22.22 | 23 |
| Graham Formula | 5.65 | -69 |
Carter Bankshares, Inc. (NASDAQ: CARE) is a regional bank holding company operating through its subsidiary, Carter Bank & Trust, primarily serving customers in Virginia and North Carolina. Founded in 1974 and headquartered in Martinsville, Virginia, the company offers a comprehensive suite of banking products, including commercial and consumer loans, residential mortgages, deposit accounts, and digital banking services. With 69 branches, Carter Bankshares focuses on community-oriented banking, providing tailored financial solutions to individuals and businesses. The bank emphasizes relationship-driven services, including treasury management, online and mobile banking, and credit products. Operating in the competitive regional banking sector, Carter Bankshares maintains a strong local presence, leveraging its deep regional expertise to serve its customer base. Its conservative lending practices and diversified revenue streams position it as a stable player in the Southeastern U.S. banking market.
Carter Bankshares presents a mixed investment profile. With a market cap of ~$370M and a beta of 0.68, the stock exhibits lower volatility compared to broader financial markets. The company reported $132.4M in revenue and $24.5M in net income for the latest fiscal year, with diluted EPS of $1.06. Strengths include a solid regional footprint, conservative risk management, and no dividend obligations (dividend per share: $0), allowing retained earnings for growth. However, its small scale limits competitive advantages against larger peers, and its loan portfolio may face pressure in rising rate environments. Investors should weigh its steady performance against limited growth catalysts and exposure to regional economic conditions.
Carter Bankshares operates in a highly competitive regional banking landscape dominated by both larger regional players and community banks. Its competitive advantage lies in its localized customer relationships and niche focus on Virginia and North Carolina markets, where it can offer personalized service. The bank’s lack of dependence on dividends (unlike some peers) provides flexibility in capital allocation. However, its small asset base (~$4.3B estimated from market cap and financials) limits economies of scale in technology and lending compared to larger regional banks. Carter’s loan portfolio is diversified across commercial, consumer, and real estate segments, reducing concentration risk. Its digital offerings (online/mobile banking) are table stakes but may lag behind tech-savvy competitors. The bank’s low beta suggests resilience but also reflects slower growth potential. To compete, Carter must deepen customer retention and selectively expand in underserved markets while managing interest rate and credit risks.