Internal capital generation improved significantly with $85.8 million in net income, while the bank continued its trend of liquidating investment securities, realizing $31.5 million in 2026Q1.
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Dec'20 | Dec'19 | Dec'18 | Dec'17 | Dec'16 | Dec'15 | Dec'14 | Dec'13 | Dec'12 | Dec'11 | Dec'10 | Dec'09 | Dec'08 | Dec'07 |
|---|
| Cash from Operations | 337.4M | 39.86M | 36.94M | 46.73M | 70.79M | 77.54M | 7.7M | 38.29M | 49.4M | 44.26M | 32.66M | 53.66M | 43.85M | 36.92M | 44.77M | 36.1M | 44.06M | 5.94M | 21.27M | 23.27M |
| Operating CF Growth % | 5176.91% | 7.92% | -20.95% | -33.99% | -8.7% | 906.46% | -79.88% | -22.5% | 11.61% | 35.55% | -39.14% | 22.36% | 18.78% | -17.54% | 24% | -18.06% | 641.29% | -72.05% | -8.61% | - |
| Net Income | 108.17M | 31.36M | 24.52M | 23.38M | 50.12M | 31.59M | -45.86M | 26.57M | 11.9M | -681K | 15.98M | 39.16M | 33.46M | 26.08M | 30.35M | 30.09M | 22.78M | 17.77M | 9.71M | 13.17M |
| Depreciation & Amortization | 8.08M | 7.86M | 7.05M | 6.25M | 6.06M | 6.23M | 6.14M | 5.33M | 3.68M | 3.15M | 3.29M | 5.74M | 10.82M | 10.84M | 10.75M | 10.66M | 10.53M | 10.96M | 10.31M | 10.54M |
| Deferred Taxes | 7.77M | 2.82M | 3.21M | 2.47M | 4.25M | 4.82M | -539K | 2.19M | 8.91M | -10.37M | -5.83M | -2.28M | -3.78M | -2.78M | -1.14M | 252K | -218K | 0 | 0 | 0 |
| Other Non-Cash Items | 203.19M | -2.27M | -1.43M | 14.49M | 9.77M | 28.25M | 72.78M | -7.08M | 26.65M | 56.71M | 28.46M | 3.56M | 3M | 2.58M | 2.4M | 885K | 1.5M | 2.27M | -384K | 43K |
| Working Capital Changes | 12.01M | -1.98M | 1.83M | -1.43M | -722K | 5.61M | -25.84M | 10.89M | -1.75M | -4.54M | -9.24M | 7.52M | 353K | 202K | 2.35M | -5.79M | 9.47M | -25.06M | 1.64M | -480K |
| Cash from Investing | -101.48M | -155.91M | -68.4M | -307.01M | -382.07M | -106.36M | -93.27M | -129.36M | 54.24M | -76.2M | 447.54M | 87.03M | -213.89M | -265.31M | -617.1M | -188.06M | -60.83M | -557M | -430.4M | 140.35M |
| Purchase of Investments | -33.5M | -63.68M | -25.13M | -24.94M | -135.63M | -466.65M | -277.64M | -534.14M | -201.24M | -434.94M | -125M | 0 | 0 | -485.51M | -1B | -655.93M | -857.88M | -856.06M | -481.06M | -285M |
| Sale/Maturity of Investments | 131.19M | 115.93M | 81.41M | 92.22M | 104.47M | 307.25M | 267.02M | 588.7M | 352.34M | 364.45M | 667.41M | 406.16M | 92.23M | 326.18M | 383.58M | 592.82M | 835.18M | 492.73M | 234.37M | 467.18M |
| Net Investment Activity | 97.69M | 52.25M | 56.28M | 67.29M | -31.16M | -159.4M | -10.62M | 54.57M | 151.1M | -70.49M | 542.41M | 406.16M | 92.23M | -159.33M | -621.05M | -63.11M | -22.7M | -363.33M | -246.69M | 182.18M |
| Acquisitions | 0 | 53.57M | 0 | 0 | 0 | -73.92M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -153.54M | -253.68M | -116.55M | -364.5M | -345.02M | 135.45M | -72.53M | -175.47M | -82.25M | -2.18M | -94.02M | -318.54M | -305.02M | -105M | 3.79M | -124.25M | -36.05M | -192M | -148.89M | -38.76M |
| Cash from Financing | -96.6M | 90.04M | 108.11M | 267.94M | 80.35M | 64.67M | 201.69M | -76.94M | -78.43M | -394.22M | -398.6M | 230.1M | -66.2M | 198.16M | 440.46M | 242.45M | 291.31M | 572.83M | 123.86M | -48.3M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | -3.69M | 0 | 0 | 0 | -7.88M | -10.5M | -10.5M | -10.5M | -10.5M | -10.5M | -10.5M | -10.5M | -10.25M | -10M |
| Share Repurchases | -10.86M | -20M | 0 | -16.42M | -42.93M | -157K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11K | -45K |
| Stock Issued | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Stock Activity | -10.86M | -20M | 0 | -16.42M | -42.93M | -157K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | -11K | -45K |
| Debt Issuance (Net) | 0 | 1000K | -1000K | 1000K | 1000K | -1000K | 1000K | 1000K | 0 | 0 | 0 | 0 | 0 | 0 | -38K | -220K | -202K | 782K | -1000K | -1000K |
| Other Financing | 77.76M | 1.54M | 431.51M | 89.38M | -50.27M | 92.83M | 180.38M | -86.94M | -78.43M | -394.22M | -390.72M | 240.6M | -55.7M | 208.66M | 451.01M | 253.17M | 302.22M | 582.55M | 136.2M | -36.95M |
| Net Change in Cash | 139.32M | -26.01M | 76.64M | 7.66M | -230.93M | 35.86M | 116.13M | -168.01M | 25.21M | -426.16M | 81.6M | 370.79M | -236.24M | -30.23M | -131.87M | 90.49M | 274.55M | 0 | 0 | 0 |
| Exchange Rate Effect | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 105.16M | 131.17M | 54.53M | 46.87M | 277.8M | 241.94M | 125.81M | 293.82M | 268.61M | 694.78M | 613.18M | 242.39M | 478.63M | 508.86M | 640.73M | 550.24M | 275.69M | 0 | 0 | 0 |
| Cash at End | 228.32M | 105.16M | 131.17M | 54.53M | 46.87M | 277.8M | 241.94M | 125.81M | 293.82M | 268.61M | 694.78M | 613.18M | 242.39M | 478.63M | 508.86M | 640.73M | 550.24M | 0 | 0 | 0 |
| Interest Paid | 99.22M | 102.65M | 106.34M | 69.12M | 19.34M | 23.47M | 36.7M | 46.17M | 37.92M | 37.82M | 46.85M | 47.12M | 45.33M | 53.17M | 56.52M | 57.02M | 67.54M | 0 | 0 | 0 |
| Income Taxes Paid | 3.7M | 3.72M | 478K | 5.72M | 5.79M | 2.72M | 416K | 220K | 175K | 1.68M | 10.8M | 6.99M | 9.78M | 14.36M | 7.4M | 15.1M | 1.86M | 0 | 0 | 0 |
| Free Cash Flow | 327.44M | 31.81M | 28.8M | 36.93M | 64.9M | 69.05M | -2.42M | 29.83M | 34.79M | 40.72M | 31.81M | 53.06M | 42.76M | 35.67M | 44.72M | 35.4M | 41.98M | 4.28M | -13.56M | 20.21M |
| FCF Growth % | 1789.58% | 10.42% | -22.01% | -43.09% | -6.01% | 2958.2% | -108.1% | -14.25% | -14.57% | 28.01% | -40.05% | 24.1% | 19.85% | -20.23% | 26.32% | -15.68% | 881.42% | 131.56% | -167.09% | - |
Commercial credit concentration volatility
According to the latest quarterly data, Carter Bankshares generated $85.8 million in net income during 2026Q1, which significantly bolstered the bank's internal capital generation capacity compared to the modest single-digit earnings reported in previous quarters, providing a substantial buffer against potential future credit-related volatility.
The sharp increase in net income suggests a potential inflection point in core profitability, though investors should remain cautious regarding the sustainability of this earnings surge. This capital generation provides the bank with necessary flexibility to absorb the elevated provision for credit losses observed in the same period.
Based on reported financial statements, the bank consistently liquidated investment securities throughout the observed ten-quarter period, with 2026Q1 inflows of $31.5 million, suggesting a strategic pivot toward enhancing liquidity rather than maintaining a long-duration bond portfolio in a volatile interest rate environment.
The persistent sale of investment securities appears to be a deliberate effort to harvest liquidity, likely to support the balance sheet against potential commercial real estate impairments. This trend warrants further investigation into the bank's long-term strategy for managing its remaining securities portfolio duration.
As indicated by the 2026Q1 figures, the bank recorded a $34.1 million provision for credit losses, a significant departure from historical levels that suggests management is aggressively addressing potential impairments within its concentrated commercial loan book to ensure long-term balance sheet stability.
This substantial provision appears to be a defensive measure aimed at insulating the bank from idiosyncratic risks associated with its large commercial relationships. Analysts should monitor whether this level of provisioning continues in subsequent quarters or if it represents a one-time effort to clear legacy credit issues.
Based on the provided cash flow data, Carter Bankshares has maintained a policy of zero dividend payments and minimal share repurchases, with only $6.0 million in buybacks in 2025Q4, indicating a management preference for capital retention over direct shareholder returns during this period of credit uncertainty.
The absence of consistent dividend distributions suggests that management is prioritizing the preservation of tangible common equity to navigate potential economic headwinds. This conservative approach appears consistent with the bank's focus on de-risking its balance sheet rather than pursuing aggressive capital return strategies.
Quick answers to the most common questions about buying CARE stock.
Carter Bankshares, Inc. (CARE) generated $39.9M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Carter Bankshares, Inc. (CARE) generated $31.8M in free cash flow in 2025. Free cash flow is the cash left over after capital expenditures, which can be used to pay dividends, repurchase shares, or pay down debt.
Carter Bankshares, Inc. (CARE) spent $8.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
In 2025, Carter Bankshares, Inc. (CARE) spent $20.0M on share repurchases. This shows the company's commitment to returning capital to its equity investors.