Financial Performance - Net income for the three months ended September 30, 2024, was $5,629 thousand, compared to $3,627 thousand for the same period in 2023, marking a significant increase of 55.2%[7] - Basic earnings per common share for the three months ended September 30, 2024, were $0.24, compared to $0.16 for the same period in 2023, representing a 50% increase[7] - Comprehensive income for the three months ended September 30, 2024, was $21,957,000, compared to a loss of $7,948,000 for the same period in 2023[9] - Net income for the nine months ended September 30, 2024, was $16,243,000, a decrease of 35.8% compared to $25,272,000 for the same period in 2023[15] - Net interest income for the three months ended September 30, 2024, was $28,798 thousand, up from $27,394 thousand for the same period in 2023, reflecting a 5.1% increase[7] - Net interest income for the nine months ended September 30, 2024 decreased to $85.3 million, down 10.2% from $94.9 million in the same period in 2023[185] Asset and Liability Management - Total assets increased to $4,613,435 thousand as of September 30, 2024, compared to $4,512,539 thousand at December 31, 2023, representing a growth of 2.2%[5] - Total liabilities increased to $4,226,610 thousand as of September 30, 2024, from $4,161,296 thousand at December 31, 2023, reflecting a rise of 1.6%[5] - Total deposits rose to $4,085,068 thousand as of September 30, 2024, from $3,721,915 thousand at December 31, 2023, indicating an increase of 9.8%[5] - The company had $1.6 billion in total loans pledged as collateral for borrowings at September 30, 2024, compared to $1.5 billion at December 31, 2023[128] - Federal Home Loan Bank borrowings decreased significantly to $90,000 thousand at September 30, 2024, down from $393,400 thousand at December 31, 2023, a reduction of 77.1%[128] Credit Quality and Loan Performance - The allowance for credit losses decreased to $80,909 thousand as of September 30, 2024, down from $97,052 thousand at December 31, 2023, a reduction of 16.6%[5] - The company experienced a recovery provision for credit losses of $(432) thousand for the three months ended September 30, 2024, compared to a provision of $1,105 thousand in the same period in 2023[7] - The company had zero loans in the process of foreclosure as of September 30, 2024, down from $2.0 million at December 31, 2023[51] - Nonperforming loans declined by $21.8 million to $287.7 million since December 31, 2023, with nonperforming loans as a percentage of total portfolio loans at 8.00% compared to 8.83%[171] - The total allowance for credit losses on loans was $80.909 million, an increase from $96.686 million at the beginning of the period[83] Investment and Securities - The total fair value of available-for-sale securities with unrealized losses was $678.4 million as of September 30, 2024, with total unrealized losses of $68.4 million[33] - The company did not record an allowance for credit losses on its investment securities as of September 30, 2024, indicating no related impairment[34] - The fair value of corporate notes is $62.307 million, with $54.720 million classified as Level 2 and $7.587 million as Level 3[102] - The company recorded gross realized gains of $36 thousand and gross realized losses of $1 thousand for the three months ended September 30, 2024, resulting in net realized gains of $36 thousand[30] Noninterest Income and Expenses - Noninterest income for the three months ended September 30, 2024, was $5,422 thousand, slightly up from $5,270 thousand in the same period of 2023, a growth of 2.9%[7] - Total noninterest income increased by $1.0 million to $16.0 million for the nine months ended September 30, 2024, compared to the same period in 2023[170] - Total noninterest expense increased by $4.7 million to $81.1 million for the nine months ended September 30, 2024, compared to the same period in 2023[170] - Salaries and employee benefits rose by $0.6 million, a 4.6% increase, due to fewer open positions and normal merit increases[201] Strategic Initiatives and Market Outlook - The Company aims to shift from restructuring its balance sheet to pursuing a prudent growth strategy, focusing on organic growth and opportunistic acquisitions[161] - The company has identified strategic opportunities for market expansion and new product development to enhance future growth prospects[77] - The Company’s brand strategy includes a commitment to align processes and operations around its brand while introducing new products and services[160]
Carter Bankshares(CARE) - 2024 Q3 - Quarterly Report