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Dec 31, 2024
Carter Bankshares Q4 2024 Earnings Report
Announced fourth quarter and full year 2024 financial results.
Key Takeaways
Carter Bankshares, Inc. reported a strong fourth quarter with a net income of $8.3 million, or $0.36 diluted earnings per share. The company launched a brand refresh, celebrated its 50th anniversary, and announced the acquisition of two branches in Winston-Salem and Mooresville, North Carolina.
Nonperforming loans declined by $28.4 million to $259.3 million compared to September 30, 2024.
Total portfolio loans increased $29.0 million, or 3.2% on an annualized basis, to $3.6 billion at December 31, 2024 from September 30, 2024.
Total deposits increased $68.4 million, or 6.7% on an annualized basis, compared to September 30, 2024.
Net interest income totaled $29.1 million, an increase of $0.4 million, or 1.2% compared to the prior quarter, and an increase of $1.7 million, or 6.3% compared to the year ago quarter.
Forward Guidance
Carter Bankshares is committed to resolving its large nonperforming credit relationship and believes it is well-positioned for a strong 2025.
Positive Outlook
- Capital and liquidity levels continue to be strong.
- Loan production was solid in the fourth quarter.
- Loan production pipeline remains strong.
- Deposit growth is occurring in most categories, with the majority of growth coming from increases in interest checking and CD accounts.
- Balance sheet is slightly liability sensitive and is well positioned so that further declines in interest rates should continue to positively benefit our net interest margin.
Challenges Ahead
- Large nonperforming credit relationship continues to have a negative impact on our financial and credit metrics.
- Financial results continue to be significantly impacted by loans in the Bank's Other segment of the Company’s loan portfolio.
- Interest income was negatively impacted by $7.9 million due to these credits being on nonaccrual status.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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