Financial Performance - Q4 2024 net income was $8.3 million, or $0.36 diluted EPS, compared to a net loss of $1.9 million in Q4 2023[1] - Full year 2024 net income was $24.5 million, or $1.06 diluted EPS, compared to $23.4 million in 2023[1] - Net income for Q4 2024 was $8,280 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, 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 $8.4 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, up from $0.23 in the previous quarter[50] Loan Portfolio - Nonperforming loans decreased by $28.4 million to $259.3 million at December 31, 2024, representing 7.15% of total portfolio loans[2] - Total portfolio loans increased $29.0 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 $29.0 million, or 3.2% annualized, to $3.6 billion at December 31, 2024, driven by growth in construction loans of $63.4 million and commercial real estate loans of $11.8 million[25] - Total Loans increased to $3,624,826 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 $1,869,831 thousand in December 2024 from $1,670,631 thousand in December 2023[47] - Total Nonperforming Assets decreased to $260,008 thousand in December 2024 from $311,998 thousand in December 2023[48] Deposits and Liquidity - Total deposits increased $68.4 million, or 6.7% annualized, compared to September 30, 2024[2] - Total deposits increased by $68.4 million to $4.2 billion at December 31, 2024, with interest-bearing demand accounts growing by $77.9 million[26] - Approximately 81.6% of total deposits of $4.2 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 $3,721,915 thousand in December 2023[42] - Total Interest-Bearing Deposits increased to $3,495,085 thousand in December 2024 from $2,962,346 thousand in December 2023[45] - FHLB borrowings decreased by $20.0 million to $70.0 million at December 31, 2024, compared to $90.0 million at September 30, 2024[27] - The Company had $418.4 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 $29.1 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 $27,420 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 $28.9 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 $123,314 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 $0.8 million and other noninterest expenses decreasing by $0.2 million[21] - Salaries and employee benefits increased by $2.1 million, occupancy expenses increased by $1.6 million, and FDIC insurance expense increased by $1.3 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 $97,052 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 $80.9 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 $15.3 million in the previous quarter[49] - Net Loan Charge-offs YTD increased to $16,413 thousand in December 2024 from $2,300 thousand in December 2023[48] - Total recoveries for the quarter ending December 2024 were $175 thousand, up from $103 thousand in the previous quarter[49] Capital and Assets - Total assets increased by $45.8 million to $4.7 billion at December 31, 2024, with cash and due from banks increasing by $26.2 million to $131.2 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 $4,512,539 thousand in December 2023[42] - Shareholders' equity increased to $384,313 thousand in December 2024 from $351,243 thousand in December 2023[42] - Total Interest-Earning Assets grew to $4,520,295 thousand in December 2024 from $4,404,458 thousand in December 2023[45] - Average earning assets for the quarter ending December 2024 increased to $4.52 billion, up from $4.45 billion in the previous quarter[51] Noninterest Income and Pre-Tax Income - Noninterest income for Q4 2024 was $5,368 thousand, compared to $3,245 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]
Carter Bankshares(CARE) - 2024 Q4 - Annual Results