Carter Bankshares Inc. (CARE) reports earnings

The report was filed on March 7, 2025

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Carter Bankshares Inc. (CARE) has submitted its 10-K filing for the fiscal year ended December 31, 2024.

The filing includes financial statements showing a total asset increase to $4.7 billion from $4.5 billion at the end of the previous year. This growth is attributed to a rise in total portfolio loans by $118.9 million, primarily driven by commercial real estate and construction loans.

Net interest income decreased by $7.9 million, or 6.4%, to $114.5 million, reflecting higher funding costs. The net interest margin also decreased to 2.57% from 2.85% the previous year.

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The company reported a recovery of $5.0 million in its provision for credit losses, compared to a provision of $5.5 million the previous year. This change was primarily due to updated analysis of individually evaluated loans and specific reserve releases.

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Noninterest income increased by $3.1 million to $21.4 million, driven by higher insurance commissions and a decrease in net losses on sales of securities.

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Noninterest expenses rose by $4.5 million to $110.0 million, with increases in salaries, occupancy expenses, and FDIC insurance expenses.

The company recorded a net income of $24.5 million, up from $23.4 million the previous year, with a diluted earnings per share of $1.06.

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Total deposits increased by $431.5 million to $4.2 billion, while FHLB borrowings decreased by $323.4 million to $70.0 million, reflecting a strategic shift towards deposit growth.

The company's capital ratios remain strong, with a Tier 1 capital ratio of 10.88% and a total risk-based capital ratio of 12.13%.

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Carter Bankshares continues to focus on resolving nonperforming loans, with a significant portion related to a large credit relationship in the hospitality, agriculture, and energy sectors.

This content was summarized by generative artificial intelligence using public filings retrieved from SEC.gov. The original data was derived from the Carter Bankshares Inc. annual 10-K report dated March 7, 2025. To report an error, please email earnings@qz.com.