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Carter Bankshares(CARE) - 2024 Q4 - Annual Results
CARECarter Bankshares(CARE)2025-01-23 13:26

Financial Performance - Q4 2024 net income was 8.3million,or8.3 million, or 0.36 diluted EPS, compared to a net loss of 1.9millioninQ42023[1]−Fullyear2024netincomewas1.9 million in Q4 2023[1] - Full year 2024 net income was 24.5 million, or 1.06dilutedEPS,comparedto1.06 diluted EPS, compared to 23.4 million in 2023[1] - Net income for Q4 2024 was 8,280thousand,asignificantimprovementfromanetlossof8,280 thousand, a significant improvement from a net loss of 1,888 thousand in Q4 2023[43] - Return on average assets (QTD annualized) improved to 0.71% in Q4 2024 from -0.17% in Q4 2023[42] - Basic earnings per share for Q4 2024 were 0.36,asignificantimprovementfromalossof0.36, a significant improvement from a loss of 0.08 per share in Q4 2023[43] - Adjusted net income (Non-GAAP) for the quarter ending December 2024 was 8.4million,comparedto8.4 million, compared to 5.4 million in the previous quarter[50] - Adjusted earnings per common share (diluted) (Non-GAAP) for the quarter ending December 2024 was 0.37,upfrom0.37, up from 0.23 in the previous quarter[50] Loan Portfolio - Nonperforming loans decreased by 28.4millionto28.4 million to 259.3 million at December 31, 2024, representing 7.15% of total portfolio loans[2] - Total portfolio loans increased 29.0million,or3.229.0 million, or 3.2% annualized, to 3.6 billion at December 31, 2024[2] - The large nonperforming lending relationship represents 97.2% of total nonperforming loans and 7.0% of total portfolio loans at December 31, 2024[5] - Total portfolio loans increased by 29.0million,or3.229.0 million, or 3.2% annualized, to 3.6 billion at December 31, 2024, driven by growth in construction loans of 63.4millionandcommercialrealestateloansof63.4 million and commercial real estate loans of 11.8 million[25] - Total Loans increased to 3,624,826thousandinDecember2024from3,624,826 thousand in December 2024 from 3,505,910 thousand in December 2023[47] - Nonperforming Loans to Total Portfolio Loans decreased to 7.15% in December 2024 from 8.83% in December 2023[48] - Commercial Real Estate Loans increased to 1,869,831thousandinDecember2024from1,869,831 thousand in December 2024 from 1,670,631 thousand in December 2023[47] - Total Nonperforming Assets decreased to 260,008thousandinDecember2024from260,008 thousand in December 2024 from 311,998 thousand in December 2023[48] Deposits and Liquidity - Total deposits increased 68.4million,or6.768.4 million, or 6.7% annualized, compared to September 30, 2024[2] - Total deposits increased by 68.4 million to 4.2billionatDecember31,2024,withinterest−bearingdemandaccountsgrowingby4.2 billion at December 31, 2024, with interest-bearing demand accounts growing by 77.9 million[26] - Approximately 81.6% of total deposits of 4.2billionwereinsuredunderstandardFDICinsurancecoveragelimitsatDecember31,2024[28]−Totaldepositsgrewto4.2 billion were insured under standard FDIC insurance coverage limits at December 31, 2024[28] - Total deposits grew to 4,153,421 thousand in December 2024 from 3,721,915thousandinDecember2023[42]−TotalInterest−BearingDepositsincreasedto3,721,915 thousand in December 2023[42] - Total Interest-Bearing Deposits increased to 3,495,085 thousand in December 2024 from 2,962,346thousandinDecember2023[45]−FHLBborrowingsdecreasedby2,962,346 thousand in December 2023[45] - FHLB borrowings decreased by 20.0 million to 70.0millionatDecember31,2024,comparedto70.0 million at December 31, 2024, compared to 90.0 million at September 30, 2024[27] - The Company had 418.4millioninunpledgedavailable−for−saleinvestmentsecuritiesasanadditionalsourceofliquidityatDecember31,2024[31]NetInterestIncomeandMargin−Netinterestincomeincreased418.4 million in unpledged available-for-sale investment securities as an additional source of liquidity at December 31, 2024[31] Net Interest Income and Margin - Net interest income increased 0.4 million to 29.1millioninQ42024comparedtoQ32024[11]−Netinterestmargindecreasedonebasispointto2.5829.1 million in Q4 2024 compared to Q3 2024[11] - Net interest margin decreased one basis point to 2.58% in Q4 2024 compared to Q3 2024[11] - Net interest income for Q4 2024 was 29,148 thousand, up from 27,420thousandinQ42023[43]−Netinterestmargin(GAAP)forQ42024was2.5727,420 thousand in Q4 2023[43] - Net interest margin (GAAP) for Q4 2024 was 2.57%, up from 2.47% in Q4 2023[43] - Net Interest Margin (FTE) for Q4 2024 increased to 2.58% from 2.49% in Q4 2023[45] - Net interest income (FTE) for the quarter ending December 2024 was 29.3 million, slightly up from 28.9millioninthepreviousquarter[51]−Yieldoninterest−earningassets(FTE)forthequarterendingDecember2024was4.9928.9 million in the previous quarter[51] - Yield on interest-earning assets (FTE) for the quarter ending December 2024 was 4.99%, slightly down from 5.08% in the previous quarter[51] - Net Interest Income for YTD 2024 was 115,232 thousand compared to 123,314thousandinYTD2023[46]EfficiencyandExpenses−Theefficiencyratiowas83.6123,314 thousand in YTD 2023[46] Efficiency and Expenses - The efficiency ratio was 83.6% for Q4 2024, compared to 80.2% in Q3 2024 and 94.8% in Q4 2023[3] - Total noninterest expense decreased by 0.2 million compared to the fourth quarter of 2023, with professional and legal fees decreasing by 0.8millionandothernoninterestexpensesdecreasingby0.8 million and other noninterest expenses decreasing by 0.2 million[21] - Salaries and employee benefits increased by 2.1million,occupancyexpensesincreasedby2.1 million, occupancy expenses increased by 1.6 million, and FDIC insurance expense increased by 1.3millionforthefullyear2024comparedto2023[23]−Adjustedefficiencyratio(Non−GAAP)forthequarterendingDecember2024improvedto82.761.3 million for the full year 2024 compared to 2023[23] - Adjusted efficiency ratio (Non-GAAP) for the quarter ending December 2024 improved to 82.76%, compared to 80.65% in the previous quarter[51] Credit Quality and Allowances - Allowance for credit losses decreased to 75,600 thousand in December 2024 from 97,052thousandinDecember2023[42]−AllowanceforCreditLossestoNonperformingLoansdecreasedto29.1597,052 thousand in December 2023[42] - Allowance for Credit Losses to Nonperforming Loans decreased to 29.15% in December 2024 from 31.35% in December 2023[48] - Allowance for credit losses decreased to 75.6 million at the end of December 2024, down from 80.9millionattheendofSeptember2024[49]−Totalnetcharge−offsforthequarterendingDecember2024were80.9 million at the end of September 2024[49] - Total net charge-offs for the quarter ending December 2024 were 195 thousand, significantly lower than the 15.3millioninthepreviousquarter[49]−NetLoanCharge−offsYTDincreasedto15.3 million in the previous quarter[49] - Net Loan Charge-offs YTD increased to 16,413 thousand in December 2024 from 2,300thousandinDecember2023[48]−TotalrecoveriesforthequarterendingDecember2024were2,300 thousand in December 2023[48] - Total recoveries for the quarter ending December 2024 were 175 thousand, up from 103thousandinthepreviousquarter[49]CapitalandAssets−Totalassetsincreasedby103 thousand in the previous quarter[49] Capital and Assets - Total assets increased by 45.8 million to 4.7billionatDecember31,2024,withcashandduefrombanksincreasingby4.7 billion at December 31, 2024, with cash and due from banks increasing by 26.2 million to 131.2million[24]−TheCompany′sTier1Capitalratiowas10.88131.2 million[24] - The Company's Tier 1 Capital ratio was 10.88% at December 31, 2024, compared to 10.83% at September 30, 2024[29] - The Company's Total Risk-Based Capital ratio was 12.13% at December 31, 2024, compared to 12.09% at September 30, 2024[30] - Total assets increased to 4,659,189 thousand as of December 31, 2024, compared to 4,512,539thousandinDecember2023[42]−Shareholders′equityincreasedto4,512,539 thousand in December 2023[42] - Shareholders' equity increased to 384,313 thousand in December 2024 from 351,243thousandinDecember2023[42]−TotalInterest−EarningAssetsgrewto351,243 thousand in December 2023[42] - Total Interest-Earning Assets grew to 4,520,295 thousand in December 2024 from 4,404,458thousandinDecember2023[45]−AverageearningassetsforthequarterendingDecember2024increasedto4,404,458 thousand in December 2023[45] - Average earning assets for the quarter ending December 2024 increased to 4.52 billion, up from 4.45billioninthepreviousquarter[51]NoninterestIncomeandPre−TaxIncome−NoninterestincomeforQ42024was4.45 billion in the previous quarter[51] Noninterest Income and Pre-Tax Income - Noninterest income for Q4 2024 was 5,368 thousand, compared to 3,245thousandinQ42023[43]−Pre−taxpre−provisionincome(Non−GAAP)forthequarterendingDecember2024was3,245 thousand in Q4 2023[43] - Pre-tax pre-provision income (Non-GAAP) for the quarter ending December 2024 was 5.7 million, down from $6.8 million in the previous quarter[50] Expansion and Acquisitions - The company acquired two branches in Winston-Salem and Mooresville, North Carolina to expand its footprint[3]