Investing in a community bank used to be a sleepy affair. You bought the shares, collected a modest dividend, and basically forgot about them while you went about your life. But if you've been watching the carter bank stock price lately, you know that old "boring" playbook has been tossed out the window.
As of mid-January 2026, the ticker CARE (Carter Bankshares Inc.) is sitting around $20.38. That might not sound like much compared to tech giants, but look closer. It’s trading right near its 52-week high of $20.66. If you had snagged this stock at its 52-week low of $13.61, you’d be up about 50%. Honestly, for a regional bank with a $450 million market cap, that is a massive swing.
Why the sudden adrenaline? It isn't just one thing. It's a mix of a massive legal settlement, a bold expansion into South Carolina, and some genuinely solid earnings that caught the market off guard.
The Drama That Defined the Carter Bank Stock Price
You can't talk about this bank without mentioning the Justice family. Yes, that Justice family—West Virginia Senator Jim Justice. For years, a massive dispute over roughly $300 million in defaulted loans hung over this bank like a dark cloud. It was a mess of nonaccrual status and court battles that felt like they would never end.
Then came June 2024. A settlement was reached.
By April 2025, the bank confirmed the Justice family had paid back over $56 million of that overdue balance. By the end of the third quarter of 2025, that specific nonperforming loan (NPL) relationship had dropped from $301.9 million down to $228.6 million.
That is huge.
When a bank's largest headache starts shrinking, investors start breathing. Every million paid back is a million that can actually work for the bank again. This clearing of the "legal fog" is a primary reason why the carter bank stock price has found such strong footing.
Breaking Down the Recent Earnings
The numbers for Q3 2025 tell a story of a bank trying to outrun its past. Net income hit $5.4 million ($0.24 per share). Sure, that was a dip from the $8.5 million they saw in Q2, but the underlying "boring" bank stuff—like net interest income—actually grew to $33.7 million.
The bank is seeing its net interest margin (NIM) expand. It’s currently around 2.86%. They’re also getting more efficient. Their efficiency ratio (basically how much it costs them to make a dollar) improved to 73.43% in the third quarter of 2025.
One thing that really signals confidence? The share buyback program. In May 2025, they announced they'd buy back up to $20 million of their own stock. By mid-year, they’d already spent $9.1 million of that at an average price of $16.70. Looking back, those were smart buys.
Growing Beyond the Virginia Border
Carter Bank isn't just sitting in Martinsville, Virginia, waiting for loan checks to arrive. They are aggressively moving into new markets. In late 2025, they announced a big push into Greenville, South Carolina.
Greenville is a hot market. It’s growing fast.
This follows expansions into Charlotte, Raleigh, and Winston-Salem. They are basically following the I-85 corridor where the money is moving. They even joined the Federal Reserve Bank of Richmond as a state member bank in November 2025. It's a "leveling up" move that helps them handle the complexities of being a larger player.
What Analysts Are Saying Right Now
If you look at the 2026 forecasts, the sentiment is surprisingly bullish.
- Price Targets: Average targets are hovering around $22.88, with some analysts pushing as high as $24.00.
- Earnings Growth: Forecasters are eyeing an 11% to 19% growth rate for earnings and revenue over the next few years.
- The Consensus: Out of four major analysts covering it, all four currently have a "Buy" or "Strong Buy" rating.
It’s rare to see that kind of unanimity on a small-cap bank.
The Risks: It’s Not All Clear Skies
Let's be real. There are still risks. The Justice relationship still represents about 88% of the bank's total nonperforming loans. That’s a lot of eggs in one very complicated basket. If the repayment schedule stumbles, the carter bank stock price will likely feel the hit immediately.
Also, they don't currently pay a dividend. If you’re a "widows and orphans" style investor looking for a 4% yield, this isn't the spot for you yet. They are prioritizing growth and share buybacks over quarterly checks to shareholders.
Actionable Strategy for Investors
If you're looking at CARE, you sort of have to view it as a "turnaround and growth" hybrid.
First, watch the NPL (Non-Performing Loan) numbers in the upcoming Q4 earnings report scheduled for late January 2026. If that $228 million figure drops significantly again, it’s a green flag.
Second, keep an eye on the South Carolina expansion. Opening branches is expensive. You want to see if they can grow their deposit base in Greenville without blowing out their expenses.
Finally, check the "insider" activity. When management buys shares, it’s usually a better signal than any analyst report. Given they were buying back shares at $16.70, they clearly thought the stock was undervalued. At $20+, the "easy money" might be gone, but the path to $24 looks plausible if they keep cleaning up the balance sheet.
Wait for the next earnings call to see if they provide an update on the remaining $200+ million owed by the Justice entities. That remains the biggest needle-mover for this stock.
Next Steps:
Research the upcoming Q4 2025 earnings call date for Carter Bankshares. Review the "Non-Performing Assets" section of the report to see if the Justice loan balance has decreased. If the balance continues to decline while the bank maintains a net interest margin above 2.80%, the stock may still have room to run toward analyst targets of $23.00.