Carter Bankshares(US:CARE)2025-04-24 12:12Financial Performance - Carter Bankshares, Inc. reported a net income of $9.0 million, or $0.39 diluted EPS, for Q1 2025, up from $8.3 million, or $0.36 diluted EPS, in Q4 2024, and $5.8 million, or $0.25 diluted EPS, in Q1 2024[1] - Net interest income for Q1 2025 totaled $30.1 million, an increase of $1.0 million, or 3.4%, compared to Q4 2024, and an increase of $1.7 million, or 6.0%, compared to Q1 2024[6] - The return on average assets (QTD annualized) improved to 0.78% in Q1 2025, up from 0.71% in Q4 2024[36] - Adjusted net income for Q1 2025 was $7,242,000, compared to $8,416,000 in Q4 2024, reflecting a decrease of 13.9% and an increase of 30.8% from $5,535,000 in Q1 2024[42] - The adjusted earnings per common share (diluted) for Q1 2025 was $0.32, down from $0.37 in Q4 2024 but up from $0.24 in Q1 2024[42] Loan and Deposit Growth - Total portfolio loans increased by $62.7 million, or 7.0%, to $3.7 billion as of March 31, 2025, compared to December 31, 2024, and increased by $178.4 million, or 5.1%, from March 31, 2024[3] - Total deposits increased by $47.5 million, or 4.6%, on an annualized basis, compared to December 31, 2024, and increased by $370.4 million, or 9.7%, compared to March 31, 2024[3] - Total loans increased to $3,687,495,000 in Q1 2025 from $3,624,826,000 in Q4 2024, with commercial loans rising to $2,149,887,000[39] - Total deposits increased to $4,200,927 thousand as of March 31, 2025, compared to $4,153,421 thousand at December 31, 2024, marking a growth of 1.13%[36] Asset and Capital Management - Total assets increased by $41.1 million to $4.7 billion at March 31, 2025, compared to December 31, 2024[21] - The Company's Tier 1 Capital ratio improved to 11.01% at March 31, 2025, up from 10.88% at December 31, 2024[27] - Shareholders' equity increased to $401,766 thousand as of March 31, 2025, compared to $384,313 thousand at December 31, 2024, reflecting a growth of 4.06%[36] Nonperforming Loans and Credit Quality - Nonperforming loans (NPLs) increased by $2.1 million to $261.4 million at March 31, 2025, representing 7.09% of total portfolio loans[5] - The allowance for credit losses to total portfolio loans was 1.99% as of March 31, 2025, down from 2.09% at December 31, 2024, and 2.75% at March 31, 2024[3] - The allowance for credit losses decreased to $73,518,000 in Q1 2025 from $75,600,000 in Q4 2024, with a provision for credit losses recovery of $2,025,000[41] Operational Efficiency - The efficiency ratio improved to 75.7% for Q1 2025, down from 83.6% in Q4 2024, impacted by the nonaccrual status of the largest lending relationship[6] - The adjusted efficiency ratio (Non-GAAP) for Q1 2025 was 78.67%, an improvement from 82.76% in Q4 2024 and 79.01% in Q1 2024[44] - The efficiency ratio improved to 75.71% in Q1 2025, down from 83.63% in Q4 2024, showing enhanced operational efficiency[37] Interest Income and Margin - The net interest margin increased by 12 basis points to 2.70% for Q1 2025, compared to 2.58% for the prior quarter[6] - Net interest income for Q1 2025 was $30,316,000, an increase from $29,330,000 in Q4 2024, reflecting a net interest margin of 2.70% compared to 2.58% in the previous quarter[38] - The yield on interest-earning assets (GAAP) was 4.99% in Q1 2025, slightly up from 4.97% in Q4 2024 and 4.91% in Q1 2024[43] Noninterest Income - Total noninterest income increased by $1.5 million, or 28.6%, to $6.9 million in Q1 2025 compared to Q4 2024, driven by a $1.9 million gain on a BOLI death benefit[16] - Noninterest income for Q1 2025 was $6,901,000, up from $5,368,000 in Q4 2024, indicating a growth of 28.63%[37]