Carter Bankshares, Inc. (CARE) - Form 8-K Summary
Business Context and Reporting Period
This Current Report on Form 8-K, dated May 27, 2025, covers a specific corporate event rather than a standard financial reporting period. Carter Bankshares, Inc., the holding company for Carter Bank, announced the completion of a Purchase and Assumption agreement with First Reliance Bankshares, Inc.
Key Financial Metrics and Transaction Details
- Deposit Acquisition: Carter Bank acquired $55.9 million in deposits from two branches located in Mooresville and Winston-Salem, North Carolina.
- Transaction Cost: The Bank paid a 4.6% deposit premium calculated on the average closing balance of non-interest and interest-bearing transaction accounts, savings, and money market demand deposits over a ten-business-day period ending five days prior to closing.
- Loan Acquisition: The transaction did not include the acquisition of any loans.
- Personnel: The Bank welcomed 10 new associates as part of the acquisition.
- Timeline: The purchase was finalized after the close of business on May 23, 2025. Branch conversion occurred over the weekend of May 24-26, 2025, with the branches opening as Carter Bank locations on May 27, 2025.
Material Changes
The filing reports a material expansion of the Bank's deposit base and physical footprint in North Carolina. There are no reported changes to revenue, profit, cash flow, or debt levels in this specific filing, as it focuses solely on the completion of the branch acquisition.
Guidance, Outlook, and Risks
The filing does not provide updated financial guidance, outlook, or specific risk factors beyond the standard disclosure that the information is furnished under Item 7.01 and is not deemed "filed" for purposes of Section 18 of the Exchange Act. The primary operational change is the integration of the two new branches and staff.
Key Facts for Investor Verification
- Verify the integration progress of the $55.9 million in acquired deposits in subsequent quarterly reports.
- Confirm the impact of the 4.6% deposit premium on the Bank's cost of funds and net interest margin in future earnings releases.
- Monitor the performance of the two new North Carolina branches (Mooresville and Winston-Salem) relative to the Bank's existing portfolio.
- Note that no loan assets were acquired, meaning the transaction was purely a deposit-gathering strategy.