[144] BorgWarner Inc. SEC Filing

Rhea-AI Filing Summary

Carter Bankshares (CARE) Q2 2025 results

• Profitability: Net income jumped 77% YoY to $8.5 mn; EPS $0.37 vs $0.21. Six-month earnings up 64% to $17.5 mn ($0.76/share).
• Revenue drivers: Net interest income rose 15% to $32.4 mn as loan yields outpaced funding costs; interest expense fell 4%. Provision swung to a $2.3 mn release, further boosting results.
• Noninterest items: Fee income slipped 11% to $4.9 mn while operating costs increased 7% to $29.3 mn, moderating but not offsetting stronger NII.
• Balance sheet: Loans grew 3% YTD to $3.75 bn; deposits up 2% to $4.22 bn, with CDs still the largest component (45%). Asset base reached $4.78 bn.
• Capital: Shareholders’ equity climbed 6% to $406 mn; AOCI loss improved by $12.3 mn. The company repurchased 547k shares for $9.1 mn (1 % excise tax recorded).
• Strategic move: Acquired two branches in North Carolina on 23 May, adding $55.9 mn in deposits and broadening the growth footprint.

Investor take-away: Strong NII expansion, credit releases and reduced unrealized securities losses drove record quarterly earnings. Continued deposit repricing pressure and higher operating expenses are key risks to monitor.

Positive

• Net income up 77% YoY and EPS nearly doubled, indicating strong operating leverage.
• Net interest income rose 15% despite high-rate environment, demonstrating asset yield resilience.
• $2.3 mn allowance release highlights improving credit trends; ACL still robust at 1.9 % of loans.
• AOCI loss narrowed by $12.3 mn, boosting tangible book value.
• Branch acquisition added $55.9 mn deposits, expanding footprint into growth markets.
• Share buyback of 547k shares (2.4 % float) enhances EPS and capital efficiency.

Negative

• Deposit mix heavily skewed to CDs (≈45%), heightening repricing risk as terms mature.
• Noninterest expense climbed 7% YoY, pressuring efficiency improvements.
• Noninterest income fell 11%, reducing revenue diversification.
• Cash balances down 24% YTD, signalling tighter on-balance-sheet liquidity.

Insights

Bank Equity Analyst

TL;DR: Earnings surge on NII growth and reserve release; capital, buybacks, and branch deal supportive.

CARE delivered a clean beat, doubling profit YoY largely from wider asset yields and a $2.7 mn credit recovery. Loan growth outpaced deposits, but new NC branches inject low-cost funding and expand the franchise into faster-growing markets. Buybacks (2.4 % of shares) and AOCI improvement lifted tangible book. Elevated CD mix and 7 % expense growth temper enthusiasm, yet ROA is tracking toward ~0.7 % vs 0.5 % last year, closing the peer gap. Overall, fundamentals trend positive with manageable risks.

Bank Risk Analyst

TL;DR: Credit quality tailwinds now, but funding composition remains a structural risk.

The allowance release reflects benign credit metrics; ACL/loans still a healthy 1.9 %. However, 45 % of deposits are time-based, exposing CARE to repricing shocks. Interest-bearing deposit costs already exceed 2.9 %, and further Fed cuts could compress asset yields faster than liabilities. The branch acquisition helps diversify funding but is small relative to the balance sheet. Capital at 8.5 % of assets affords a cushion. Monitor deposit betas and any reversal of securities gains as rates move.

Form 144 Filer Information	UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 Form 144 NOTICE OF PROPOSED SALE OF SECURITIES PURSUANT TO RULE 144 UNDER THE SECURITIES ACT OF 1933
FORM 144

144: Filer Information

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Is this a LIVE or TEST Filing?	LIVE TEST
Submission Contact Information
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144: Issuer Information

Name of Issuer

SEC File Number

Address of Issuer

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Name of Person for Whose Account the Securities are To Be Sold

See the definition of "person" in paragraph (a) of Rule 144. Information is to be given not only as to the person for whose account the securities are to be sold but also as to all other persons included in that definition. In addition, information shall be given as to sales by all persons whose sales are required by paragraph (e) of Rule 144 to be aggregated with sales for the account of the person filing this notice.

Relationship to Issuer

144: Securities Information

Title of the Class of Securities To Be Sold	Name and Address of the Broker	Number of Shares or Other Units To Be Sold	Aggregate Market Value	Number of Shares or Other Units Outstanding	Approximate Date of Sale	Name the Securities Exchange
Common	Charles Schwab & Co., Inc. 3000 Schwab Way Westlake TX 76262	21000	790939.00	216392876	08/04/2025	NYSE

Furnish the following information with respect to the acquisition of the securities to be sold and with respect to the payment of all or any part of the purchase price or other consideration therefor:

144: Securities To Be Sold

Title of the Class	Date you Acquired	Nature of Acquisition Transaction	Name of Person from Whom Acquired	Is this a Gift?	Date Donor Acquired	Amount of Securities Acquired	Date of Payment	Nature of Payment *
Common	02/08/2023	Performance Stock Lapse	BORGWARNER INC			4095	02/08/2023	Equity Compensation
Common	02/28/2023	Restricted Stock Lapse	BORGWARNER INC			1728	02/28/2023	Equity Compensation
Common	02/07/2024	Performance Stock Lapse	BORGWARNER INC			6749	02/07/2024	Equity Compensation
Common	02/28/2024	Restricted Stock Lapse	BORGWARNER INC			2023	02/28/2024	Equity Compensation
Common	02/05/2025	Performance Stock Lapse	BORGWARNER INC			4908	02/05/2025	Equity Compensation
Common	02/28/2025	Restricted Stock Lapse	BORGWARNER INC			1497	02/28/2025	Equity Compensation

* If the securities were purchased and full payment therefor was not made in cash at the time of purchase, explain in the table or in a note thereto the nature of the consideration given. If the consideration consisted of any note or other obligation, or if payment was made in installments describe the arrangement and state when the note or other obligation was discharged in full or the last installment paid.

Furnish the following information as to all securities of the issuer sold during the past 3 months by the person for whose account the securities are to be sold.

144: Securities Sold During The Past 3 Months

Nothing to Report

144: Remarks and Signature

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Date of Notice

ATTENTION:

The person for whose account the securities to which this notice relates are to be sold hereby represents by signing this notice that he does not know any material adverse information in regard to the current and prospective operations of the Issuer of the securities to be sold which has not been publicly disclosed. If such person has adopted a written trading plan or given trading instructions to satisfy Rule 10b5-1 under the Exchange Act, by signing the form and indicating the date that the plan was adopted or the instruction given, that person makes such representation as of the plan adoption or instruction date.

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ATTENTION: Intentional misstatements or omission of facts constitute Federal Criminal Violations (See 18 U.S.C. 1001)

FAQ

How did CARE's Q2 2025 earnings compare with Q2 2024?

Net income rose 77 % to $8.5 mn and EPS doubled to $0.37.

What drove the improvement in CARE's net interest income?

Loan yields outpaced funding costs, lifting NII 15 % to $32.4 mn.

How has CARE's balance sheet changed since year-end 2024?

Total assets grew to $4.78 bn; loans +3 %, deposits +2 %, equity +6 %.

What was the size and impact of the recent branch acquisition?

On 23 May 2025 CARE bought two NC branches, gaining $55.9 mn in deposits and $0 loans.

How much stock did CARE repurchase in Q2 2025?

The bank repurchased 547,332 shares for about $9.1 mn plus a 1 % excise tax.

What risks should investors watch?

High CD concentration, rising operating costs, and potential deposit repricing pressure.