Carter Bank Completes the Purchase of Two First Reliance Bank Branches in North Carolina

Rhea-AI Summary

Carter Bank (NASDAQ:CARE) has completed the acquisition of two First Reliance Bank branches in North Carolina. The transaction includes $55.9 million in deposits and adds 10 new employees to Carter Bank's team, with no loans included in the deal. The acquisition marks Carter Bank's first entry into Winston-Salem, expanding its presence in the Triad region where it already operates in Greensboro, Reidsville, Eden, and Mt. Airy. The second branch in Mooresville strengthens the bank's footprint in the Charlotte area. This strategic expansion demonstrates Carter Bank's commitment to growth in North Carolina markets, following recent expansions into Charlotte and Raleigh.

Positive

• Acquisition of $55.9 million in deposits strengthens deposit base
• Strategic expansion into new Winston-Salem market
• Enhanced presence in the growing Charlotte metropolitan area
• Addition of 10 experienced banking professionals

Negative

• No loan assets included in the transaction

Insights

Banking Industry Analyst

Carter Bank's acquisition of two First Reliance branches secures $55.9M in deposits, expanding strategically in North Carolina with minimal risk.

Carter Bank has successfully completed its previously announced branch acquisition from First Reliance Bank, securing $55.9 million in deposits across two North Carolina locations in Mooresville and Winston-Salem. This transaction represents a strategic expansion for Carter Bank, particularly as it enters the Winston-Salem market for the first time while strengthening its presence in the Lake Norman area near Charlotte.

The structure of this deal is particularly noteworthy - Carter acquired only deposits and physical locations without assuming any loans or credit risk. This deposit-only transaction provides immediate funding benefits without the potential downside of inheriting unknown credit quality issues. With current deposit interest rates, this $55.9 million in deposits likely represents a valuable lower-cost funding source compared to wholesale alternatives.

This acquisition aligns with Carter's broader regional expansion strategy in North Carolina. The bank has methodically increased its footprint first into Charlotte and Raleigh, and now Winston-Salem, targeting the state's major population and business centers. The Winston-Salem branch complements existing locations in Greensboro, Reidsville, Eden, and Mt. Airy, creating a more comprehensive Triad region presence. Meanwhile, adding a second Mooresville location enhances their Charlotte-area operations.

The addition of 10 employees from First Reliance helps preserve customer relationships and institutional knowledge, likely improving retention rates of the acquired deposit base. While relatively modest in size, this transaction demonstrates Carter's disciplined approach to growth through strategic acquisitions rather than just de novo branching, allowing for faster deposit gathering in competitive markets.

Through the purchase, the bank will enter the Winston-Salem market for the first time, while expanding operations near Charlotte.

MARTINSVILLE, VA / ACCESS Newswire / May 27, 2025 / Carter Bankshares, Inc. (Nasdaq:CARE), the holding company for Carter Bank (the "Bank"), announced today the completion of the previously announced Purchase and Assumption for the deposits associated with two branches in Mooresville and Winston-Salem, North Carolina with First Reliance Bankshares, Inc. (OTC: FSRL), the holding company for First Reliance Bank. The Bank acquired $55.9 million of deposits at the two branch locations and welcomed 10 new associates to its team. The transaction did not include any loans.

The Winston-Salem branch is the Bank's first location in the city, expanding its presence in the Triad, where it already has branches in Greensboro, Reidsville, Eden, and Mt. Airy. The Mooresville location, the Bank's second in town, further enhances its footprint in the Charlotte area, which also includes a branch in downtown Charlotte. These expansions demonstrate the Bank's commitment to fostering opportunities for individuals and businesses throughout North Carolina.

"We're grateful for the opportunity to expand our operations in North Carolina and help the people of Winston-Salem and Lake Norman live life to the fullest," said Carter Bank Chief Executive Officer Litz Van Dyke. "I'm very proud of our team's hard work to ensure the smoothest transition possible for both the customers and bank associates, and we are very excited to continue building and expanding these relationships."

"In the last few years, we've expanded the Bank into Charlotte and Raleigh, while keeping an eye on the right opportunity to enter Winston-Salem, and this purchase was that opportunity," Carter Bank President and Chief Strategy Officer Brad Langs said. "Additionally, the team at our Mooresville branch has worked tirelessly to help strengthen our presence there, and the Lake Norman branch will only help us keep that momentum going. I'm very excited about the future of the Bank."

To learn more about Carter Bank, please visit carterbank.com.

About Carter Bank

Headquartered in Martinsville, Va., Carter Bank is a $4.7 billion, state-chartered community bank with branches in Virginia and North Carolina. Since 1974, Carter Bank has strived to create opportunities for more people and businesses to prosper. Additional information about Carter Bank is available at carterbank.com. Member FDIC. Equal Housing Lender.

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Contact:

Brooks Taylor
VP, Corporate Communications Officer
brooks.taylor@carterbank.com
276-806-5445

SOURCE: Carter Bankshares, Inc.

View the original press release on ACCESS Newswire

FAQ

What did Carter Bank (CARE) acquire in its recent branch purchase from First Reliance Bank?

Carter Bank acquired two branches in Mooresville and Winston-Salem, North Carolina, including $55.9 million in deposits and 10 new employees, with no loans included in the transaction.

How many branches does Carter Bank now have in Winston-Salem, NC?

This acquisition marks Carter Bank's first branch location in Winston-Salem, NC, expanding its presence in the Triad region.

What is the significance of the Mooresville branch acquisition for Carter Bank (CARE)?

The Mooresville location becomes Carter Bank's second branch in the town, strengthening its footprint in the Charlotte metropolitan area where it already has a downtown Charlotte branch.

Which markets has Carter Bank (CARE) recently expanded into in North Carolina?

In recent years, Carter Bank has expanded into Charlotte and Raleigh markets, and now Winston-Salem with this acquisition.