Carter Bankshares(US:CARE)2025-05-08 19:41PART I - FINANCIAL INFORMATION This section encompasses the Company's unaudited consolidated financial statements and management's discussion and analysis for the three months ended March 31, 2025 Item 1. Financial Statements This section presents the Company's unaudited consolidated financial statements for the three months ended March 31, 2025, and comparative periods, including balance sheets, income statements, comprehensive income, changes in shareholders' equity, cash flows, and detailed notes to provide a comprehensive view of its financial position and performance Consolidated Balance Sheets This statement details the Company's financial position at March 31, 2025, compared to December 31, 2024 Consolidated Balance Sheet Highlights (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (Thousands) | December 31, 2024 (Thousands) | Change (Thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | :----------------- | | Total Assets | $4,700,287 | $4,659,189 | $41,098 | | Portfolio Loans, net | $3,613,977 | $3,549,226 | $64,751 | | Securities Available-for-Sale | $745,390 | $718,400 | $26,990 | | Total Deposits | $4,200,927 | $4,153,421 | $47,506 | | Federal Home Loan Bank Borrowings | $55,000 | $70,000 | $(15,000) | | Total Liabilities | $4,298,521 | $4,274,876 | $23,645 | | Total Shareholders' Equity | $401,766 | $384,313 | $17,453 | Consolidated Statements of Income This statement presents the Company's revenues, expenses, and net income for Q1 2025 versus Q1 2024 Consolidated Statements of Income Highlights (Three Months Ended March 31, 2025 vs. 2024) | Metric | Three Months Ended March 31, 2025 (Thousands) | Three Months Ended March 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :----------------- | :--------- | | Total Interest Income | $56,007 | $54,049 | $1,958 | 3.62% | | Total Interest Expense | $25,869 | $25,630 | $239 | 0.93% | | Net Interest Income | $30,138 | $28,419 | $1,719 | 6.05% | | (Recovery) Provision for Credit Losses | $(2,025) | $16 | $(2,041) | NM | | Total Noninterest Income | $6,901 | $5,045 | $1,856 | 36.80% | | Total Noninterest Expense | $28,042 | $26,257 | $1,785 | 6.80% | | Net Income | $8,953 | $5,811 | $3,142 | 54.07% | | Basic Earnings per Common Share | $0.39 | $0.25 | $0.14 | 56.00% | | Diluted Earnings per Common Share | $0.39 | $0.25 | $0.14 | 56.00% | Consolidated Statements of Comprehensive Income This statement reports net income and other comprehensive income for Q1 2025 and Q1 2024 Consolidated Statements of Comprehensive Income Highlights (Three Months Ended March 31, 2025 vs. 2024) | Metric | Three Months Ended March 31, 2025 (Thousands) | Three Months Ended March 31, 2024 (Thousands) | Change (Thousands) | % Change | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :----------------- | :--------- | | Net Income | $8,953 | $5,811 | $3,142 | 54.07% | | Net Unrealized Gains Arising during the Period | $10,383 | $2,119 | $8,264 | 390.00% | | Tax Effect | $(2,235) | $(476) | $(1,759) | 369.54% | | Net Unrealized Gains Recognized in Other Comprehensive Income | $8,148 | $1,643 | $6,505 | 396.04% | | Comprehensive Income | $17,101 | $7,454 | $9,647 | 129.42% | Consolidated Statements of Changes in Shareholders' Equity This statement details changes in shareholders' equity for Q1 2025 and Q1 2024 Consolidated Statements of Changes in Shareholders' Equity Highlights (March 31, 2025 vs. December 31, 2024) | Metric | March 31, 2025 (Thousands) | December 31, 2024 (Thousands) | Change (Thousands) | | :-------------------------------- | :-------------------------- | :-------------------------- | :----------------- | | Balance, December 31, 2024 / 2023 | $384,313 | $351,243 | $33,070 | | Net Income | $8,953 | $5,811 | $3,142 | | Other Comprehensive Income, Net of Tax | $8,148 | $1,643 | $6,505 | | Forfeiture of Restricted Stock | $(129) | $(72) | $(57) | | Issuance of Restricted Stock | $0 | $0 | $0 | | Recognition of Restricted Stock Compensation Expense | $481 | $441 | $40 | | Balance, March 31, 2025 / 2024 | $401,766 | $359,066 | $42,700 | Consolidated Statements of Cash Flows This statement summarizes cash flows for Q1 2025 and Q1 2024 Consolidated Statements of Cash Flows Highlights (Three Months Ended March 31, 2025 vs. 2024) | Metric | Three Months Ended March 31, 2025 (Thousands) | Three Months Ended March 31, 2024 (Thousands) | Change (Thousands) | | :-------------------------------- | :------------------------------------------ | :------------------------------------------ | :----------------- | | Net Cash Provided By Operating Activities | $6,376 | $17,634 | $(11,258) | | Net Cash (Used In) Provided by Investing Activities | $(81,054) | $10,241 | $(91,295) | | Net Cash Provided By Financing Activities | $32,506 | $25,706 | $6,800 | | Net (Decrease) Increase in Cash and Cash Equivalents | $(42,172) | $53,581 | $(95,753) | | Cash and Cash Equivalents at End of Period | $88,999 | $108,110 | $(19,111) | Notes to Unaudited Consolidated Financial Statements This section provides detailed explanations and disclosures for the unaudited consolidated financial statements NOTE 1 – Basis of Presentation The financial statements are prepared in accordance with GAAP for interim information, consolidating Carter Bankshares, Inc. and its subsidiaries. The Company adopted ASU 2024-02 in January 2025 with no material impact and is evaluating ASU 2023-09 for 2025 and ASU 2024-04 and 2024-03 for later periods - The Company's unaudited Consolidated Financial Statements are prepared in accordance with GAAP for interim financial information, consolidating Carter Bankshares, Inc. and its wholly-owned subsidiary, Carter Bank & Trust2021 - The adoption of ASU 2024-02 on January 1, 2025, which amends the Codification to remove references to various concepts statements, did not have a material impact on the Company's Consolidated Financial Statements24 - The Company is currently evaluating the impact of ASU 2023-09 (effective January 1, 2025) on income tax disclosures and ASU 2024-04 (effective January 1, 2026) and ASU 2024-03 (effective fiscal years beginning after December 15, 2026) on its financial statements, with no significant impact expected from ASU 2024-04252627 NOTE 2 – Earnings Per Common Share