Carter Bankshares, Inc. Announces Second Quarter 2024 Financial Results
Carter Bankshares (NASDAQ: CARE) announced Q2 2024 results. Net income was $4.8M, or $0.21 EPS, down from $5.8M, or $0.25 EPS, in Q1 2024, and $5.7M, or $0.24 EPS, in Q2 2023. For H1 2024, net income was $10.6M compared to $21.6M in H1 2023. The Justice Entities’ lawsuit was dismissed, reducing nonperforming loans (NPLs) by $7.8M. NPLs totaled $300.2M, 8.46% of portfolio loans. Net interest income fell by 1.2% QoQ to $28.1M and faced a significant impact from nonaccrual loans, which reduced interest income by $9.1M in Q2 2024. Deposits increased by $50.8M QoQ, and total portfolio loans increased by $40.5M. Total assets decreased by $22.4M to $4.5B. Capital ratios remained robust, with the Tier 1 Capital ratio at 10.95%. The company's efficiency ratio increased to 81.62% in Q2 2024, partly due to the large nonaccrual relationship. Despite challenges, positive asset quality and strong capital levels were noted.
Carter Bankshares (NASDAQ: CARE) ha annunciato i risultati del Q2 2024. Il reddito netto è stato di 4,8 milioni di dollari, ovvero 0,21 dollari per azione (EPS), in calo rispetto ai 5,8 milioni di dollari, o 0,25 dollari per azione, del Q1 2024, e ai 5,7 milioni di dollari, o 0,24 dollari per azione, del Q2 2023. Per il primo semestre del 2024, il reddito netto è stato di 10,6 milioni di dollari rispetto ai 21,6 milioni di dollari del primo semestre del 2023. La è stata archiviata, riducendo i prestiti non performanti (NPL) di 7,8 milioni di dollari. Gli NPL hanno totalizzato 300,2 milioni di dollari, pari all'8,46% dei prestiti in portafoglio. Il reddito da interessi netto è diminuito del 1,2% rispetto al trimestre precedente, attestandosi a 28,1 milioni di dollari, ed è stato significativamente influenzato dai prestiti non accrual, che hanno ridotto il reddito da interessi di 9,1 milioni di dollari nel Q2 2024. I depositi sono aumentati di 50,8 milioni di dollari rispetto al trimestre precedente, e i prestiti totali in portafoglio sono aumentati di 40,5 milioni di dollari. Gli attivi totali sono diminuiti di 22,4 milioni di dollari a 4,5 miliardi di dollari. I rapporti patrimoniali sono rimasti solidi, con il rapporto di capitale di classe 1 al 10,95%. Il rapporto di efficienza dell’azienda è aumentato all’81,62% nel Q2 2024, in parte a causa della grande relazione non accrual. Nonostante le sfide, sono stati notati qualità degli attivi positive e livelli di capitale forti.
Carter Bankshares (NASDAQ: CARE) anunció los resultados del Q2 2024. La utilidad neta fue de 4,8 millones de dólares, o 0,21 dólares por acción (EPS), en comparación con los 5,8 millones de dólares, o 0,25 dólares por acción, en el Q1 2024, y los 5,7 millones de dólares, o 0,24 dólares por acción, en el Q2 2023. Para el primer semestre de 2024, la utilidad neta fue de 10,6 millones de dólares, en comparación con 21,6 millones de dólares en el primer semestre de 2023. La demanda de las Entidades de Justicia fue desestimada, lo que redujo los préstamos no productivos (NPL) en 7,8 millones de dólares. Los NPL totalizaron 300,2 millones de dólares, o 8,46% de los préstamos de la cartera. Los ingresos netos por intereses cayeron un 1,2% trimestre a trimestre a 28,1 millones de dólares y enfrentaron un impacto significativo de los préstamos no accrual, que redujeron los ingresos por intereses en 9,1 millones de dólares en el Q2 2024. Los depósitos aumentaron en 50,8 millones de dólares trimestre a trimestre, y los préstamos totales de la cartera aumentaron en 40,5 millones de dólares. Los activos totales disminuyeron en 22,4 millones de dólares a 4,5 mil millones de dólares. Los índices de capital se mantuvieron robustos, con el índice de capital de Clase 1 en 10,95%. El índice de eficiencia de la empresa aumentó al 81,62% en el Q2 2024, en parte debido a la gran relación no accrual. A pesar de los desafíos, se observaron calidades de activos positivas y fuertes niveles de capital.
Carter Bankshares (NASDAQ: CARE)가 2024년 2분기 실적을 발표했습니다. 순이익은 480만 달러, 즉 주당 0.21달러(EPS)로, 2024년 1분기의 580만 달러, 즉 0.25달러 EPS에서 감소하였고, 2023년 2분기의 570만 달러, 즉 0.24달러 EPS와 비교되었습니다. 2024년 상반기 순이익은 1,060만 달러로, 2023년 상반기 2,160만 달러에 비해 감소하였습니다. 정의 기구의 소송이 기각되어 부실 채권(NPL)이 780만 달러 감소했습니다. NPL 총액은 3억 2백만 달러로, 포트폴리오 대출의 8.46%를 차지합니다. 순이자 수익은 전분기 대비 1.2% 감소하여 2,810만 달러에 도달하였으며, 부실 채권으로 인한 상당한 영향을 받았고 이는 2024년 2분기에 이자 수익을 910만 달러 감소시켰습니다. 예금은 전분기 대비 5,080만 달러 증가하였고, 총 포트폴리오 대출은 4,050만 달러 증가했습니다. 총 자산은 2240만 달러 감소하여 45억 달러가 되었습니다. 자본 비율은 강력하게 유지되었으며, Tier 1 자본 비율은 10.95%입니다. 회사의 효율성 비율은 2024년 2분기에 81.62%로 증가했으며, 이는 부분적으로 큰 부실 관계 때문입니다. 여러 도전에도 불구하고 양호한 자산 품질과 강한 자본 수준이 나타났습니다.
Carter Bankshares (NASDAQ: CARE) a annoncé les résultats du Q2 2024. Le revenu net s'élevait à 4,8 millions de dollars, soit 0,21 dollar par action (EPS), en baisse par rapport aux 5,8 millions de dollars, ou 0,25 dollar par action, au Q1 2024, et aux 5,7 millions de dollars, ou 0,24 dollar par action, au Q2 2023. Pour le premier semestre 2024, le revenu net était de 10,6 millions de dollars contre 21,6 millions de dollars au premier semestre 2023. La plainte des Entités de Justice a été rejetée, réduisant les prêts non performants (NPL) de 7,8 millions de dollars. Les NPL ont totalisé 300,2 millions de dollars, soit 8,46% des prêts du portefeuille. Le revenu net d'intérêts a chuté de 1,2% par rapport au trimestre précédent pour atteindre 28,1 millions de dollars et a été fortement impacté par les prêts non accrual, lesquels ont réduit le revenu d'intérêts de 9,1 millions de dollars dans le Q2 2024. Les dépôts ont augmenté de 50,8 millions de dollars par rapport au trimestre précédent, et les prêts totaux du portefeuille ont augmenté de 40,5 millions de dollars. Les actifs totaux ont diminué de 22,4 millions de dollars pour atteindre 4,5 milliards de dollars. Les ratios de capital sont restés robustes, avec un ratio de capital de niveau 1 à 10,95%. Le ratio d'efficacité de l'entreprise a augmenté à 81,62% au Q2 2024, en partie en raison de la grande relation non accrual. Malgré les défis, une qualité d'actif positive et de forts niveaux de capital ont été notés.
Carter Bankshares (NASDAQ: CARE) gab die Q2 2024 Ergebnisse bekannt. Der Nettogewinn betrug 4,8 Millionen US-Dollar, oder 0,21 US-Dollar pro Aktie (EPS), im Vergleich zu 5,8 Millionen US-Dollar, oder 0,25 US-Dollar pro Aktie, im Q1 2024 und 5,7 Millionen US-Dollar, oder 0,24 US-Dollar pro Aktie, im Q2 2023. Für das erste Halbjahr 2024 betrug der Nettogewinn 10,6 Millionen US-Dollar im Vergleich zu 21,6 Millionen US-Dollar im ersten Halbjahr 2023. Die Klage der Justizbehörden wurde abgewiesen, wodurch die notleidenden Kredite (NPL) um 7,8 Millionen US-Dollar reduziert wurden. Die NPLs beliefen sich auf 300,2 Millionen US-Dollar, das sind 8,46% der Portfoliokredite. Die Nettozinsüberschüsse fielen im Quartalsvergleich um 1,2% auf 28,1 Millionen US-Dollar und waren erheblich von den nicht akkretierten Krediten betroffen, die im Q2 2024 die Zinseinnahmen um 9,1 Millionen US-Dollar verringerten. Die Einlagen stiegen im Quartalsvergleich um 50,8 Millionen US-Dollar, und die gesamten Portfoliokredite stiegen um 40,5 Millionen US-Dollar. Die Gesamtheit der Vermögenswerte sank um 22,4 Millionen US-Dollar auf 4,5 Milliarden US-Dollar. Die Kapitalquoten blieben robust, mit der Tier-1-Kapitalquote bei 10,95%. Das Effizienzverhältnis des Unternehmens stieg im Q2 2024 auf 81,62%, teilweise bedingt durch die große nicht akkretierten Beziehung. Trotz der Herausforderungen wurden positive Asset-Qualität und starke Kapitallevels festgestellt.
- Nonperforming loans decreased by $7.1M to $300.2M.
- Total deposits increased by $50.8M.
- Total portfolio loans increased by $40.5M.
- Tier 1 Capital ratio improved to 10.95%.
- Net income decreased to $4.8M from $5.8M in Q1 2024.
- Net interest income decreased by 1.2% QoQ to $28.1M.
- Net interest margin decreased to 2.56%.
- Efficiency ratio increased to 81.62%.
Insights
Carter Bankshares' Q2 2024 results reveal a mixed financial picture with some positive developments amid ongoing challenges. The company reported
A significant positive development is the dismissal of the federal court lawsuit filed by the Justice Entities, with an agreed pathway for curtailment and payoff of outstanding loans. This has already resulted in a reduction of the nonperforming loan balance from
However, the company's financial performance continues to be heavily impacted by its largest lending relationship remaining on nonaccrual status. This has negatively affected interest income by
On a positive note, total portfolio loans increased by
The net interest margin decreased slightly to
While the resolution of the Justice Entities lawsuit is a positive step, the ongoing impact of this nonperforming relationship continues to weigh on the company's financial performance. Investors should monitor the progress of loan curtailments and the potential for margin improvement if interest rates begin to decline.
Carter Bankshares' Q2 2024 results highlight both resilience and ongoing challenges in a complex banking environment. The resolution of the Justice Entities lawsuit is a significant positive, potentially paving the way for improved asset quality and reduced nonperforming loans.
The bank's deposit growth of
Carter Bankshares' liquidity position appears robust, with access to approximately
The bank's capital ratios remain well above regulatory requirements, providing a solid foundation to navigate challenges. The Total Risk-Based Capital ratio of
However, the efficiency ratio of
Looking ahead, the bank's slightly liability-sensitive balance sheet position could benefit from potential Fed rate cuts, potentially improving net interest margin. However, the timing and extent of such improvements remain uncertain.
MARTINSVILLE, VA / ACCESSWIRE / July 25, 2024 / Carter Bankshares, Inc. (the "Company") (NASDAQ:CARE), the holding company of Carter Bank & Trust (the "Bank") today announced quarterly net income of
For the six months ended June 30, 2024, net income was
During the second quarter of 2024 the federal court lawsuit filed against the Company and the Bank by West Virginia Governor James C. Justice II, his wife Cathy L. Justice, his son James C. Justice, III, and related entities that he and/or they own (collectively, the "Justice Entities") was dismissed with prejudice. In connection with the dismissal of this litigation, the Justice Entities have agreed upon a pathway of curtailment and payoff of the outstanding loans with the Bank. The Justice Entities have already started that process of curtailment, and the aggregate nonperforming loan balance associated with the Justice Entities has been reduced from
The Company's financial results continue to be significantly impacted by placing loans contained in the Bank's Other segment on nonaccrual status during the second quarter of 2023. The Bank's Other segment, represents the Bank's loans to the Justice Entities, which remains the Bank's largest lending relationship. As a result, interest income was negatively impacted by
Financial Highlights for the Three and Six Months Ended June 30, 2024
At June 30, 2024, nonperforming loans declined by
$7.1 million to$300.2 million when compared to March 31, 2024. Nonperforming loans to total portfolio loans were8.46% ,8.76% and9.33% for the quarters ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively. The decline in nonperforming loans during the second quarter of 2024 is primarily due to$7.8 million of curtailment payments made by the Bank's largest nonperforming lending relationship;The allowance for credit losses to total portfolio loans were
2.72% ,2.75% and2.83% at June 30, 2024, March 31, 2024 and June 30, 2023, respectively. The decrease is primarily related to$1.4 million of other segment specific reserves released in connection with the aforementioned$7.8 million of curtailment payments;Total portfolio loans increased
$40.5 million , or4.6% on an annualized basis, to$3.5 billion at June 30, 2024 compared to March 31, 2024 and increased$219.1 million , or6.6% , compared to June 30, 2023;Total deposits increased
$50.8 million , or5.3% on an annualized basis, compared to March 31, 2024 and increased$301.2 million , or8.4% , compared to June 30, 2023;Net interest income decreased
$0.3 million , or1.2% , to$28.1 million compared to the first quarter of 2024 and increased$1.4 million , or5.2% compared to the second quarter of 2023. For the six months ended June 30, 2024 net interest income decreased$11.0 million , or16.3% compared to the same period in 2023 primarily driven by the aforementioned NPL relationship, which negatively impacted interest income by$18.4 million for the six months ended June 30, 2024 as compared to$11.3 million for the same period in 2023. Funding costs increased 127 basis points, offset by an increase of 36 basis points on the yield on earning assets for the six months ended June 30, 2024 compared to the same period in 2023;Net interest margin, on a fully taxable equivalent basis3 ("FTE"), decreased four basis points to
2.56% compared to the first quarter of 2024 and increased two basis points compared to the second quarter of 2023. For the six months ended June 30, 2024 net interest margin, on a FTE basis, decreased 67 basis points to2.58% compared to the same period in 2023. Net interest income and net interest margin continue to be significantly impacted by the Bank's largest lending relationship remaining on nonaccrual status since the second quarter of 2023;The efficiency ratio was
81.62% ,78.46% and80.46% for the quarters ended June 30, 2024, March 31, 2024 and June 30, 2023, respectively. The efficiency ratio was impacted primarily by the Bank's largest lending relationship that was placed in nonaccrual status during the second quarter of 2023.
"As previously noted, the lawsuit filed by West Virginia Governor James Justice and related entities was dismissed with prejudice during the second quarter of 2024, and the Justice Entities have begun curtailing their debt owed to the Bank. This was a favorable outcome for our Company and we remain committed to resolving this lending relationship in a manner that best protects the Company, the Bank and shareholders, stated Litz H. Van Dyke, Chief Executive Officer."
Van Dyke continued, "Obviously, the large nonperforming lending relationship continues to have a negative impact on our financial results, but aside from this issue, we believe our financial performance for the second quarter was solid and our asset quality remains strong across all credit metrics. We continue to feel positive about the fundamentals of the Company and the structure of our balance sheet. Capital and liquidity levels continue to be strong. Loan production was modest in the second quarter, largely due to more construction lending that we expect to fund gradually over time. Our loan production pipeline also remains solid, however, we are still expecting moderate loan growth this year. We believe our bond portfolio is well positioned to outperform many of our peers in what appears to be a protracted period of higher interest rates. Modest deposit growth is occurring in most categories. While there continues to be pressure on the cost of funds, rates have been leveling off. However, the current rate environment will continue to affect our margin in the coming quarters. We expect that our net interest margin will return to a more normalized level once the large nonperforming lending relationship is fully resolved. Additionally, if the Fed begins to cut short-term interest rates, we believe our balance sheet is positioned so that it will positively impact our margins."
Operating Highlights
Credit Quality
Nonperforming loans as a percentage of total portfolio loans were
During the second quarter of 2023, the Company placed commercial loans in the other segment of the Company's loan portfolio relating to the Bank's largest lending relationship with a current aggregate principal amount of
In connection with the settlement and the path of curtailment described above, during the second quarter of 2024,
The provision for credit losses increased
The (recovery) provision for unfunded commitments in the second quarter of 2024 was a recovery of
Net Interest Income
Net interest income decreased
Interest income increased
Interest expense increased
Net interest income decreased
Since the first quarter of 2023, there has been continued pressure on our cost of funds due to the shift from non-maturing deposits to higher yielding certificates of deposits, interest-bearing demand, money markets and higher-cost borrowingsdriven by the ongoing inversion of the yield curve, which has negatively impacted our net interest margin. During the second quarter of 2024, this trend began to stabilize and we believe it will continue to stabilize in the coming quarters. Our balance sheet is currently exhibiting characteristics of a slightly liability sensitive position due to the short-term nature of our deposit portfolio and Federal Home Loan Bank ("FHLB") borrowings. Specifically,
Noninterest Income
For the second quarter of 2024, total noninterest income was
The increase of
As compared to the second quarter of 2023, the
The most significant increase during the six months ended June 30, 2024 was
Noninterest Expense
For the second quarter of 2024, total noninterest expense was
As compared to the first quarter of 2024, the increase of
As compared to the second quarter of 2023, the increase of
For the six months ended June 30, 2024 as compared to the six months ended June 30, 2023, the most significant increases in total noninterest expense, and similar variances to the year ago quarter, was an increase of
Financial Condition
Total assets were
During the second quarter of 2024, the Company purchased
Total deposits increased
At June 30, 2024, noninterest-bearing deposits comprised
FHLB borrowings decreased
Capitalization and Liquidity
The Company remained well capitalized as of June 30, 2024. The Company's Tier 1 Capital ratio was
The Bank also remained well capitalized as of June 30, 2024. The Bank's Tier 1 Capital ratio was
Total capital of
At June 30, 2024, funding sources accessible to the Company include borrowing availability at the FHLB, equal to
About Carter Bankshares, Inc.
Headquartered in Martinsville, VA, Carter Bankshares, Inc. (NASDAQ:CARE) provides a full range of commercial banking, consumer banking, mortgage and services through its subsidiary Carter Bank & Trust. The Company has
Important Note Regarding Non-GAAP Financial Measures
In addition to traditional measures presented in accordance with GAAP, our management uses, and this press release contains or references, certain non-GAAP financial measures and should be read along with the accompanying tables in our definitions and reconciliations of GAAP to non-GAAP financial measures. This press release and the accompanying tables discuss financial measures that we believe are useful because they enhance the ability of investors and management to evaluate and compare the Company's operating results from period to period in a meaningful manner. Non-GAAP measures should not be considered as an alternative to any measure of performance as promulgated under GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Investors should consider the Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company's results or financial condition as reported under GAAP.
Important Note Regarding Forward-Looking Statements
This press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements made in Mr. Van Dyke's quotes and may include statements relating to our financial condition, market conditions, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality and nonaccrual and nonperforming loans. Forward looking statements are typically identified by words or phrases such as "will likely result," "expect," "anticipate," "estimate," "forecast," "project," "intend," " believe," "assume," "strategy," "trend," "plan," "outlook," "outcome," "continue," "remain," "potential," "opportunity," "comfortable," "current," "position," "maintain," "sustain," "seek," "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may.
These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumption that are difficult to predict and often are beyond the Company's control. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements including, but not limited to the effects of:
market interest rates and the impacts of market interest rates on economic conditions, customer behavior, and the Company's loan and securities portfolios;
inflation, market and monetary fluctuations;
changes in trade, monetary and fiscal policies and laws of the U.S. government, including policies of the Federal Reserve, FDIC and Treasury Department;
changes in accounting policies, practices, or guidance, for example, our adoption of Current Expected Credit Losses ("CECL") methodology, including potential volatility in the Company's operating results due to application of the CECL methodology;
cyber-security threats, attacks or events;
rapid technological developments and changes;
our ability to resolve our nonperforming assets and our ability to secure collateral on loans that have entered nonaccrual status due to loan maturities and failure to pay in full;
changes in the Company's liquidity and capital positions;
concentrations of loans secured by real estate, particularly commercial real estate, and the potential impacts of changes in market conditions on the value of real estate collateral;
increased delinquency and foreclosure rates on commercial real estate loans;
an insufficient allowance for credit losses;
the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, war and other military conflicts (such as the war between Israel and Hamas and the ongoing war between Russia and Ukraine) or public health events (such as the COVID-19 pandemic), and of any governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on incidents of cyberattack and fraud, on the Company's liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth;
a change in spreads on interest-earning assets and interest-bearing liabilities;
regulatory supervision and oversight, including our relationship with regulators and any actions that may be initiated by our regulators;
legislation affecting the financial services industry as a whole, and the Company and the Bank, in particular;
the outcome of pending and future litigation and/or governmental proceedings, including the outcome of lawsuits related to the large nonperforming lending relationship;
increasing price and product/service competition;
the ability to continue to introduce competitive new products and services on a timely, cost-effective basis;
managing our internal growth and acquisitions;
the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating acquired operations will be more difficult, disruptive or more costly than anticipated;
the soundness of other financial institutions and any indirect exposure related to recent large bank failures and their impact on the broader market through other customers, suppliers and partners or that the conditions which resulted in the liquidity concerns with those failed banks may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships with;
material increases in costs and expenses;
reliance on significant customer relationships;
general economic or business conditions, including unemployment levels, continuing supply chain disruptions and slowdowns in economic growth;
significant weakening of the local economies in which we operate;
changes in customer behaviors, including consumer spending, borrowing and saving habits;
changes in deposit flows and loan demand;
our failure to attract or retain key employees;
expansions or consolidations in the Company's branch network, including that the anticipated benefits of the Company's branch network optimization project are not fully realized in a timely manner or at all;
deterioration of the housing market and reduced demand for mortgages; and
re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses.
Many of these factors, as well as other factors, are described in our filings with the SEC including in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. All risk factors and uncertainties described herein and therein should be considered in evaluating the Company's forward-looking statements. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are prepared. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events are expressed in or implied by a forward-looking statement may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update, revise or clarify any forward-looking statement to reflect developments occurring after the statement is made.
Carter Bankshares, Inc.
Wendy Bell, 276-656-1776
Senior Executive Vice President & Chief Financial Officer
wendy.bell@CBTCares.com
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
BALANCE SHEETS
| June 30, |
|
| March 31, |
|
| June 30, |
| ||||
(Dollars in Thousands, except per share data) |
| (unaudited) |
|
| (unaudited) |
|
| (unaudited) |
| |||
ASSETS |
|
|
|
|
|
|
|
|
| |||
Cash and Due From Banks, including Interest-Bearing Deposits of |
| $ | 61,746 |
|
| $ | 108,110 |
|
| $ | 53,275 |
|
Securities Available-for-Sale, at Fair Value |
|
| 746,325 |
|
|
| 768,832 |
|
|
| 821,370 |
|
Equity Securities |
|
| 5,063 |
|
|
| - |
|
|
| - |
|
Loans Held-for-Sale |
|
| - |
|
|
| - |
|
|
| 173 |
|
Portfolio Loans |
|
| 3,549,521 |
|
|
| 3,509,071 |
|
|
| 3,330,442 |
|
Allowance for Credit Losses |
|
| (96,686 | ) |
|
| (96,536 | ) |
|
| (94,144 | ) |
Portfolio Loans, net |
|
| 3,452,835 |
|
|
| 3,412,535 |
|
|
| 3,236,298 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Bank Premises and Equipment, net |
|
| 73,347 |
|
|
| 73,339 |
|
|
| 74,946 |
|
Other Real Estate Owned, net |
|
| 2,501 |
|
|
| 2,528 |
|
|
| 3,379 |
|
Federal Home Loan Bank Stock, at Cost |
|
| 14,467 |
|
|
| 17,910 |
|
|
| 19,403 |
|
Bank Owned Life Insurance |
|
| 58,828 |
|
|
| 58,463 |
|
|
| 57,415 |
|
Other Assets |
|
| 117,397 |
|
|
| 113,229 |
|
|
| 117,731 |
|
Total Assets |
| $ | 4,532,509 |
|
| $ | 4,554,946 |
|
| $ | 4,383,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
LIABILITIES |
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-Bearing Demand |
| $ | 653,296 |
|
| $ | 671,981 |
|
| $ | 689,224 |
|
Interest-Bearing Demand |
|
| 565,465 |
|
|
| 515,614 |
|
|
| 489,971 |
|
Money Market |
|
| 500,475 |
|
|
| 520,785 |
|
|
| 422,780 |
|
Savings |
|
| 399,833 |
|
|
| 427,461 |
|
|
| 526,588 |
|
Certificates of Deposit |
|
| 1,762,232 |
|
|
| 1,694,680 |
|
|
| 1,451,540 |
|
Total Deposits |
|
| 3,881,301 |
|
|
| 3,830,521 |
|
|
| 3,580,103 |
|
Federal Home Loan Bank Borrowings |
|
| 238,000 |
|
|
| 310,500 |
|
|
| 407,135 |
|
Federal Funds Purchased |
|
| - |
|
|
| - |
|
|
| 7,900 |
|
Reserve for Unfunded Commitments |
|
| 2,914 |
|
|
| 3,150 |
|
|
| 2,736 |
|
Other Liabilities |
|
| 45,883 |
|
|
| 51,709 |
|
|
| 41,879 |
|
Total Liabilities |
|
| 4,168,098 |
|
|
| 4,195,880 |
|
|
| 4,039,753 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
Common Stock, Par Value |
|
|
|
|
|
|
|
|
|
|
|
|
23,072,750 outstanding at June 30, 2024, |
|
|
|
|
|
|
|
|
|
|
|
|
23,020,542 outstanding at March 31, 2024 and 23,371,835 at June 30, 2023 |
|
| 23,073 |
|
|
| 23,021 |
|
|
| 23,372 |
|
Additional Paid-in Capital |
|
| 91,274 |
|
|
| 90,947 |
|
|
| 95,506 |
|
Retained Earnings |
|
| 319,697 |
|
|
| 314,894 |
|
|
| 307,344 |
|
Accumulated Other Comprehensive Loss |
|
| (69,633 | ) |
|
| (69,796 | ) |
|
| (81,985 | ) |
Total Shareholders' Equity |
|
| 364,411 |
|
|
| 359,066 |
|
|
| 344,237 |
|
Total Liabilities and Shareholders' Equity |
| $ | 4,532,509 |
|
| $ | 4,554,946 |
|
| $ | 4,383,990 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
PERFORMANCE RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
Return on Average Assets (QTD Annualized) |
|
| 0.43 | % |
|
| 0.52 | % |
|
| 0.52 | % |
Return on Average Assets (YTD Annualized) |
|
| 0.47 | % |
|
| 0.52 | % |
|
| 1.01 | % |
Return on Average Shareholders' Equity (QTD Annualized) |
|
| 5.40 | % |
|
| 6.59 | % |
|
| 6.38 | % |
Return on Average Shareholders' Equity (YTD Annualized) |
|
| 5.99 | % |
|
| 6.59 | % |
|
| 12.45 | % |
Portfolio Loans to Deposit Ratio |
|
| 91.45 | % |
|
| 91.61 | % |
|
| 93.03 | % |
Allowance for Credit Losses to Total Portfolio Loans |
|
| 2.72 | % |
|
| 2.75 | % |
|
| 2.83 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
CAPITALIZATION RATIOS |
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' Equity to Assets |
|
| 8.04 | % |
|
| 7.88 | % |
|
| 7.85 | % |
Tier 1 Leverage Ratio |
|
| 9.43 | % |
|
| 9.34 | % |
|
| 10.02 | % |
Risk-Based Capital - Tier 1 |
|
| 10.95 | % |
|
| 10.89 | % |
|
| 11.46 | % |
Risk-Based Capital - Total |
|
| 12.22 | % |
|
| 12.15 | % |
|
| 12.72 | % |
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
INCOME STATEMENTS
Quarter-to-Date |
|
| Year-to-Date |
| |||||||||||||||
(Dollars in Thousands, except per share data) | June 30, |
|
| March 31, |
|
| June 30, |
|
| June 30, |
|
| June 30, |
| |||||
(Dollars in Thousands, except per share data) | (unaudited) |
|
| (unaudited) |
|
| (unaudited) |
|
| (unaudited) |
|
| (unaudited) |
| |||||
Interest Income | $ | 54,583 |
|
| $ | 54,049 |
|
| $ | 43,716 |
|
| $ | 108,632 |
|
| $ | 95,671 |
|
Interest Expense |
| 26,491 |
|
|
| 25,630 |
|
|
| 17,005 |
|
|
| 52,121 |
|
|
| 28,175 |
|
NET INTEREST INCOME |
| 28,092 |
|
|
| 28,419 |
|
|
| 26,711 |
|
|
| 56,511 |
|
|
| 67,496 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Provision for Credit Losses |
| 491 |
|
|
| 16 |
|
|
| 85 |
|
|
| 507 |
|
|
| 1,500 |
|
(Recovery) Provision for Unfunded Commitments |
| (236 | ) |
|
| (43 | ) |
|
| 360 |
|
|
| (279 | ) |
|
| 444 |
|
NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR CREDIT LOSSES |
| 27,837 |
|
|
| 28,446 |
|
|
| 26,266 |
|
|
| 56,283 |
|
|
| 65,552 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
NONINTEREST INCOME |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gains (Losses) on Sales of Securities, net |
| 36 |
|
|
| - |
|
|
| 3 |
|
|
| 36 |
|
|
| (9 | ) |
Service Charges, Commissions and Fees |
| 1,852 |
|
|
| 1,875 |
|
|
| 1,759 |
|
|
| 3,727 |
|
|
| 3,597 |
|
Debit Card Interchange Fees |
| 1,933 |
|
|
| 2,086 |
|
|
| 1,934 |
|
|
| 4,019 |
|
|
| 4,039 |
|
Insurance Commissions |
| 934 |
|
|
| 614 |
|
|
| 508 |
|
|
| 1,548 |
|
|
| 682 |
|
Bank Owned Life Insurance Income |
| 365 |
|
|
| 348 |
|
|
| 341 |
|
|
| 713 |
|
|
| 680 |
|
Commercial Loan Swap Fee Income |
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 114 |
|
Other |
| 413 |
|
|
| 122 |
|
|
| 483 |
|
|
| 535 |
|
|
| 660 |
|
TOTAL NONINTEREST INCOME |
| 5,533 |
|
|
| 5,045 |
|
|
| 5,028 |
|
|
| 10,578 |
|
|
| 9,763 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
NONINTEREST EXPENSE |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and Employee Benefits |
| 14,216 |
|
|
| 14,200 |
|
|
| 13,649 |
|
|
| 28,416 |
|
|
| 27,301 |
|
Occupancy Expense, net |
| 3,793 |
|
|
| 3,748 |
|
|
| 3,601 |
|
|
| 7,541 |
|
|
| 7,001 |
|
FDIC Insurance Expense |
| 1,566 |
|
|
| 1,687 |
|
|
| 702 |
|
|
| 3,253 |
|
|
| 1,343 |
|
Other Taxes |
| 894 |
|
|
| 903 |
|
|
| 786 |
|
|
| 1,797 |
|
|
| 1,590 |
|
Advertising Expense |
| 528 |
|
|
| 357 |
|
|
| 431 |
|
|
| 885 |
|
|
| 770 |
|
Telephone Expense |
| 342 |
|
|
| 417 |
|
|
| 412 |
|
|
| 759 |
|
|
| 839 |
|
Professional and Legal Fees |
| 1,542 |
|
|
| 1,513 |
|
|
| 1,659 |
|
|
| 3,055 |
|
|
| 2,493 |
|
Data Processing |
| 1,234 |
|
|
| 891 |
|
|
| 1,058 |
|
|
| 2,125 |
|
|
| 1,778 |
|
Debit Card Expense |
| 808 |
|
|
| 756 |
|
|
| 771 |
|
|
| 1,564 |
|
|
| 1,250 |
|
Other |
| 2,523 |
|
|
| 1,785 |
|
|
| 2,467 |
|
|
| 4,308 |
|
|
| 4,747 |
|
TOTAL NONINTEREST EXPENSE |
| 27,446 |
|
|
| 26,257 |
|
|
| 25,536 |
|
|
| 53,703 |
|
|
| 49,112 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
INCOME BEFORE INCOME TAXES |
| 5,924 |
|
|
| 7,234 |
|
|
| 5,758 |
|
|
| 13,158 |
|
|
| 26,203 |
|
Income Tax Provision |
| 1,121 |
|
|
| 1,423 |
|
|
| 54 |
|
|
| 2,544 |
|
|
| 4,558 |
|
NET INCOME | $ | 4,803 |
|
| $ | 5,811 |
|
| $ | 5,704 |
|
| $ | 10,614 |
|
| $ | 21,645 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Shares Outstanding, at End of Period |
| 23,072,750 |
|
|
| 23,020,542 |
|
|
| 23,371,835 |
|
|
| 23,072,750 |
|
|
| 23,371,835 |
|
Average Shares Outstanding-Basic & Diluted |
| 22,826,510 |
|
|
| 22,770,311 |
|
|
| 23,513,837 |
|
|
| 22,798,476 |
|
|
| 23,641,109 |
|
PER SHARE DATA |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic Earnings Per Common Share* | $ | 0.21 |
|
| $ | 0.25 |
|
| $ | 0.24 |
|
| $ | 0.46 |
|
| $ | 0.91 |
|
Diluted Earnings Per Common Share* | $ | 0.21 |
|
| $ | 0.25 |
|
| $ | 0.24 |
|
| $ | 0.46 |
|
| $ | 0.91 |
|
Book Value | $ | 15.79 |
|
| $ | 15.60 |
|
| $ | 14.73 |
|
| $ | 15.79 |
|
| $ | 14.73 |
|
Market Value | $ | 15.12 |
|
| $ | 12.64 |
|
| $ | 14.79 |
|
| $ | 15.12 |
|
| $ | 14.79 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
PROFITABILITY RATIOS (GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin |
| 2.55 | % |
|
| 2.58 | % |
|
| 2.51 | % |
|
| 2.56 | % |
|
| 3.22 | % |
Efficiency Ratio |
| 81.62 | % |
|
| 78.46 | % |
|
| 80.46 | % |
|
| 80.05 | % |
|
| 63.57 | % |
PROFITABILITY RATIOS (non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Margin (FTE)3 |
| 2.56 | % |
|
| 2.60 | % |
|
| 2.54 | % |
|
| 2.58 | % |
|
| 3.25 | % |
Adjusted Efficiency Ratio4 (non-GAAP) |
| 81.33 | % |
|
| 79.01 | % |
|
| 79.77 | % |
|
| 80.17 | % |
|
| 62.94 | % |
*All outstanding unvested restricted stock awards are considered participating securities for the earnings per share calculation. As such, these shares have been allocated to a portion of net income and are excluded from the diluted earnings per share calculation.
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
NET INTEREST MARGIN (FTE) (QTD AVERAGES)
(Unaudited)
| June 30, 2024 |
|
| March 31, 2024 |
|
| June 30, 2023 |
| ||||||||||||||||||||||||||||
(Dollars in Thousands) |
| Average Balance |
|
| Income/ Expense |
|
| Rate |
|
| Average Balance |
|
| Income/ Expense |
|
| Rate |
|
| Average Balance |
|
| Income/ Expense |
|
| Rate |
| |||||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||||||
Interest-Bearing Deposits with Banks |
| $ | 31,083 |
|
| $ | 420 |
|
|
| 5.43 | % |
| $ | 24,129 |
|
| $ | 335 |
|
|
| 5.58 | % |
| $ | 17,902 |
|
| $ | 215 |
|
|
| 4.82 | % |
Tax-Free Investment Securities3 |
|
| 11,779 |
|
|
| 86 |
|
|
| 2.94 | % |
|
| 11,818 |
|
|
| 85 |
|
|
| 2.89 | % |
|
| 27,894 |
|
|
| 210 |
|
|
| 3.02 | % |
Taxable Investment Securities |
|
| 841,787 |
|
|
| 7,721 |
|
|
| 3.69 | % |
|
| 853,540 |
|
|
| 7,743 |
|
|
| 3.65 | % |
|
| 912,292 |
|
|
| 7,688 |
|
|
| 3.38 | % |
Total Securities |
|
| 853,566 |
|
|
| 7,807 |
|
|
| 3.68 | % |
|
| 865,358 |
|
|
| 7,828 |
|
|
| 3.64 | % |
|
| 940,186 |
|
|
| 7,898 |
|
|
| 3.37 | % |
Tax-Free Loans3 |
|
| 105,487 |
|
|
| 854 |
|
|
| 3.26 | % |
|
| 111,471 |
|
|
| 897 |
|
|
| 3.24 | % |
|
| 126,453 |
|
|
| 1,016 |
|
|
| 3.22 | % |
Taxable Loans |
|
| 3,430,330 |
|
|
| 45,395 |
|
|
| 5.32 | % |
|
| 3,407,659 |
|
|
| 44,817 |
|
|
| 5.29 | % |
|
| 3,157,780 |
|
|
| 34,529 |
|
|
| 4.39 | % |
Total Loans |
|
| 3,535,817 |
|
|
| 46,249 |
|
|
| 5.26 | % |
|
| 3,519,130 |
|
|
| 45,714 |
|
|
| 5.22 | % |
|
| 3,284,233 |
|
|
| 35,545 |
|
|
| 4.34 | % |
Federal Home Loan Bank Stock |
|
| 16,611 |
|
|
| 304 |
|
|
| 7.36 | % |
|
| 20,403 |
|
|
| 378 |
|
|
| 7.45 | % |
|
| 19,331 |
|
|
| 315 |
|
|
| 6.54 | % |
Total Interest-Earning Assets |
|
| 4,437,077 |
|
|
| 54,780 |
|
|
| 4.97 | % |
|
| 4,429,020 |
|
|
| 54,255 |
|
|
| 4.93 | % |
|
| 4,261,652 |
|
|
| 43,973 |
|
|
| 4.14 | % |
Noninterest Earning Assets |
|
| 91,648 |
|
|
|
|
|
|
|
|
|
|
| 91,171 |
|
|
|
|
|
|
|
|
|
|
| 97,525 |
|
|
|
|
|
|
|
|
|
Total Assets |
| $ | 4,528,725 |
|
|
|
|
|
|
|
|
|
| $ | 4,520,191 |
|
|
|
|
|
|
|
|
|
| $ | 4,359,177 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Demand |
| $ | 532,700 |
|
| $ | 1,689 |
|
|
| 1.28 | % |
| $ | 496,052 |
|
| $ | 1,112 |
|
|
| 0.90 | % |
| $ | 490,423 |
|
| $ | 659 |
|
|
| 0.54 | % |
Money Market |
|
| 510,828 |
|
|
| 3,926 |
|
|
| 3.09 | % |
|
| 524,896 |
|
|
| 3,996 |
|
|
| 3.06 | % |
|
| 414,852 |
|
|
| 1,858 |
|
|
| 1.80 | % |
Savings |
|
| 411,457 |
|
|
| 145 |
|
|
| 0.14 | % |
|
| 439,775 |
|
|
| 137 |
|
|
| 0.13 | % |
|
| 566,312 |
|
|
| 151 |
|
|
| 0.11 | % |
Certificates of Deposit |
|
| 1,731,358 |
|
|
| 16,963 |
|
|
| 3.94 | % |
|
| 1,635,819 |
|
|
| 15,472 |
|
|
| 3.80 | % |
|
| 1,396,307 |
|
|
| 9,114 |
|
|
| 2.62 | % |
Total Interest-Bearing Deposits |
|
| 3,186,343 |
|
|
| 22,723 |
|
|
| 2.87 | % |
|
| 3,096,542 |
|
|
| 20,717 |
|
|
| 2.69 | % |
|
| 2,867,894 |
|
|
| 11,782 |
|
|
| 1.65 | % |
Federal Home Loan Bank Borrowings |
|
| 283,154 |
|
|
| 3,675 |
|
|
| 5.22 | % |
|
| 366,782 |
|
|
| 4,819 |
|
|
| 5.28 | % |
|
| 405,443 |
|
|
| 5,080 |
|
|
| 5.03 | % |
Federal Funds Purchased |
|
| - |
|
|
| - |
|
|
| - | % |
|
| - |
|
|
| - |
|
|
| - | % |
|
| 5,363 |
|
|
| 71 |
|
|
| 5.31 | % |
Other Borrowings |
|
| 8,460 |
|
|
| 93 |
|
|
| 4.42 | % |
|
| 7,703 |
|
|
| 94 |
|
|
| 4.91 | % |
|
| 6,163 |
|
|
| 72 |
|
|
| 4.69 | % |
Total Borrowings |
|
| 291,614 |
|
|
| 3,768 |
|
|
| 5.20 | % |
|
| 374,485 |
|
|
| 4,913 |
|
|
| 5.28 | % |
|
| 416,969 |
|
|
| 5,223 |
|
|
| 5.02 | % |
Total Interest-Bearing Liabilities |
|
| 3,477,957 |
|
|
| 26,491 |
|
|
| 3.06 | % |
|
| 3,471,027 |
|
|
| 25,630 |
|
|
| 2.97 | % |
|
| 3,284,863 |
|
|
| 17,005 |
|
|
| 2.08 | % |
Noninterest-Bearing Liabilities |
|
| 693,336 |
|
|
|
|
|
|
|
|
|
|
| 694,293 |
|
|
|
|
|
|
|
|
|
|
| 715,576 |
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
| 357,432 |
|
|
|
|
|
|
|
|
|
|
| 354,871 |
|
|
|
|
|
|
|
|
|
|
| 358,738 |
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
| $ | 4,528,725 |
|
|
|
|
|
|
|
|
|
| $ | 4,520,191 |
|
|
|
|
|
|
|
|
|
| $ | 4,359,177 |
|
|
|
|
|
|
|
|
|
Net Interest Income3 |
|
|
|
|
| $ | 28,289 |
|
|
|
|
|
|
|
|
|
| $ | 28,625 |
|
|
|
|
|
|
|
|
|
| $ | 26,968 |
|
|
|
|
|
Net Interest Margin3 |
|
|
|
|
|
|
|
|
|
| 2.56 | % |
|
|
|
|
|
|
|
|
|
| 2.60 | % |
|
|
|
|
|
|
|
|
|
| 2.54 | % |
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
NET INTEREST MARGIN (FTE) (YTD AVERAGES)
(Unaudited)
|
| June 30, 2024 |
|
| June 30, 2023 |
| ||||||||||||||||||
(Dollars in Thousands) |
| Average Balance |
|
| Income/ Expense |
|
| Rate |
|
| Average Balance |
|
| Income/ Expense |
|
| Rate |
| ||||||
ASSETS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| ||||||
Interest-Bearing Deposits with Banks |
| $ | 27,606 |
|
| $ | 755 |
|
|
| 5.50 | % |
| $ | 17,023 |
|
| $ | 415 |
|
|
| 4.92 | % |
Tax-Free Investment Securities3 |
|
| 11,799 |
|
|
| 171 |
|
|
| 2.91 | % |
|
| 28,491 |
|
|
| 415 |
|
|
| 2.94 | % |
Taxable Investment Securities |
|
| 847,664 |
|
|
| 15,464 |
|
|
| 3.67 | % |
|
| 916,439 |
|
|
| 15,081 |
|
|
| 3.32 | % |
Total Securities |
|
| 859,463 |
|
|
| 15,635 |
|
|
| 3.66 | % |
|
| 944,930 |
|
|
| 15,496 |
|
|
| 3.31 | % |
Tax-Free Loans3 |
|
| 108,479 |
|
|
| 1,751 |
|
|
| 3.25 | % |
|
| 129,580 |
|
|
| 2,069 |
|
|
| 3.22 | % |
Taxable Loans |
|
| 3,418,994 |
|
|
| 90,212 |
|
|
| 5.31 | % |
|
| 3,115,799 |
|
|
| 77,657 |
|
|
| 5.03 | % |
Total Loans |
|
| 3,527,473 |
|
|
| 91,963 |
|
|
| 5.24 | % |
|
| 3,245,379 |
|
|
| 79,726 |
|
|
| 4.95 | % |
Federal Home Loan Bank Stock |
|
| 18,507 |
|
|
| 682 |
|
|
| 7.41 | % |
|
| 16,784 |
|
|
| 555 |
|
|
| 6.67 | % |
Total Interest-Earning Assets |
|
| 4,433,049 |
|
|
| 109,035 |
|
|
| 4.95 | % |
|
| 4,224,116 |
|
|
| 96,192 |
|
|
| 4.59 | % |
Noninterest Earning Assets |
|
| 91,409 |
|
|
|
|
|
|
|
|
|
|
| 94,549 |
|
|
|
|
|
|
|
|
|
Total Assets |
| $ | 4,524,458 |
|
|
|
|
|
|
|
|
|
| $ | 4,318,665 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
LIABILITIES AND SHAREHOLDERS' EQUITY |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-Bearing Demand |
| $ | 514,376 |
|
| $ | 2,801 |
|
|
| 1.10 | % |
| $ | 490,518 |
|
| $ | 1,156 |
|
|
| 0.48 | % |
Money Market |
|
| 517,862 |
|
|
| 7,922 |
|
|
| 3.08 | % |
|
| 445,654 |
|
|
| 3,112 |
|
|
| 1.41 | % |
Savings |
|
| 425,616 |
|
|
| 282 |
|
|
| 0.13 | % |
|
| 604,004 |
|
|
| 316 |
|
|
| 0.11 | % |
Certificates of Deposit |
|
| 1,683,589 |
|
|
| 32,435 |
|
|
| 3.87 | % |
|
| 1,339,269 |
|
|
| 14,717 |
|
|
| 2.22 | % |
Total Interest-Bearing Deposits |
|
| 3,141,443 |
|
|
| 43,440 |
|
|
| 2.78 | % |
|
| 2,879,445 |
|
|
| 19,301 |
|
|
| 1.35 | % |
Federal Home Loan Bank Borrowings |
|
| 324,968 |
|
|
| 8,494 |
|
|
| 5.26 | % |
|
| 345,834 |
|
|
| 8,475 |
|
|
| 4.94 | % |
Federal Funds Purchased |
|
| - |
|
|
| - |
|
|
| - | % |
|
| 9,831 |
|
|
| 247 |
|
|
| 5.07 | % |
Other Borrowings |
|
| 8,081 |
|
|
| 187 |
|
|
| 4.65 | % |
|
| 6,305 |
|
|
| 152 |
|
|
| 4.86 | % |
Total Borrowings |
|
| 333,049 |
|
|
| 8,681 |
|
|
| 5.24 | % |
|
| 361,970 |
|
|
| 8,874 |
|
|
| 4.94 | % |
Total Interest-Bearing Liabilities |
|
| 3,474,492 |
|
|
| 52,121 |
|
|
| 3.02 | % |
|
| 3,241,415 |
|
|
| 28,175 |
|
|
| 1.75 | % |
Noninterest-Bearing Liabilities |
|
| 693,814 |
|
|
|
|
|
|
|
|
|
|
| 726,656 |
|
|
|
|
|
|
|
|
|
Shareholders' Equity |
|
| 356,152 |
|
|
|
|
|
|
|
|
|
|
| 350,594 |
|
|
|
|
|
|
|
|
|
Total Liabilities and Shareholders' Equity |
| $ | 4,524,458 |
|
|
|
|
|
|
|
|
|
| $ | 4,318,665 |
|
|
|
|
|
|
|
|
|
Net Interest Income3 |
|
|
|
|
| $ | 56,914 |
|
|
|
|
|
|
|
|
|
| $ | 68,017 |
|
|
|
|
|
Net Interest Margin3 |
|
|
|
|
|
|
|
|
|
| 2.58 | % |
|
|
|
|
|
|
|
|
|
| 3.25 | % |
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
LOANS AND LOANS HELD-FOR-SALE
(Unaudited)
(Dollars in Thousands) |
| June 30, |
|
| March 31, |
|
| June 30, |
| |||
Commercial |
|
|
|
|
|
|
|
|
| |||
Commercial Real Estate |
| $ | 1,801,397 |
|
| $ | 1,728,929 |
|
| $ | 1,642,597 |
|
Commercial and Industrial |
|
| 240,611 |
|
|
| 257,176 |
|
|
| 279,156 |
|
Total Commercial Loans |
|
| 2,042,008 |
|
|
| 1,986,105 |
|
|
| 1,921,753 |
|
Consumer |
|
|
|
|
|
|
|
|
|
|
|
|
Residential Mortgages |
|
| 783,903 |
|
|
| 788,125 |
|
|
| 707,893 |
|
Other Consumer |
|
| 31,284 |
|
|
| 32,428 |
|
|
| 38,736 |
|
Total Consumer Loans |
|
| 815,187 |
|
|
| 820,553 |
|
|
| 746,629 |
|
Construction |
|
| 394,926 |
|
|
| 397,219 |
|
|
| 356,805 |
|
Other |
|
| 297,400 |
|
|
| 305,194 |
|
|
| 305,255 |
|
Total Portfolio Loans |
|
| 3,549,521 |
|
|
| 3,509,071 |
|
|
| 3,330,442 |
|
Loans Held-for-Sale |
|
| - |
|
|
| - |
|
|
| 173 |
|
Total Loans |
| $ | 3,549,521 |
|
| $ | 3,509,071 |
|
| $ | 3,330,615 |
|
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
ASSET QUALITY DATA
(Unaudited)
(Dollars in Thousands) |
| June 30, |
|
| March 31, |
|
| June 30, |
| |||
Nonaccrual Loans |
|
|
|
|
|
|
|
|
| |||
Commercial Real Estate |
| $ | 611 |
|
| $ | 641 |
|
| $ | 2,512 |
|
Commercial and Industrial |
|
| 1,084 |
|
|
| 109 |
|
|
| 113 |
|
Residential Mortgages |
|
| 1,951 |
|
|
| 2,491 |
|
|
| 3,288 |
|
Other Consumer |
|
| 30 |
|
|
| 50 |
|
|
| 12 |
|
Construction |
|
| 2,426 |
|
|
| 2,093 |
|
|
| 2,908 |
|
Other |
|
| 294,140 |
|
|
| 301,913 |
|
|
| 301,913 |
|
Total Nonperforming Loans |
|
| 300,242 |
|
|
| 307,297 |
|
|
| 310,746 |
|
Other Real Estate Owned |
|
| 2,501 |
|
|
| 2,528 |
|
|
| 3,379 |
|
Total Nonperforming Assets |
| $ | 302,743 |
|
| $ | 309,825 |
|
| $ | 314,125 |
|
Nonperforming Loans to Total Portfolio Loans |
|
| 8.46 | % |
|
| 8.76 | % |
|
| 9.33 | % |
Nonperforming Assets to Total Portfolio Loans plus Other Real Estate Owned |
|
| 8.52 | % |
|
| 8.82 | % |
|
| 9.42 | % |
Allowance for Credit Losses to Total Portfolio Loans |
|
| 2.72 | % |
|
| 2.75 | % |
|
| 2.83 | % |
Allowance for Credit Losses to Nonperforming Loans |
|
| 32.20 | % |
|
| 31.41 | % |
|
| 30.30 | % |
Net Loan Charge-offs (Recoveries) QTD |
| $ | 341 |
|
| $ | 532 |
|
| $ | 635 |
|
Net Loan Charge-offs (Recoveries) YTD |
| $ | 873 |
|
| $ | 532 |
|
| $ | 1,208 |
|
Net Loan Charge-offs (Recoveries) (Annualized) to Average Portfolio Loans QTD |
|
| 0.04 | % |
|
| 0.06 | % |
|
| 0.08 | % |
Net Loan Charge-offs (Recoveries) (Annualized) to Average Portfolio Loans YTD |
|
| 0.05 | % |
|
| 0.06 | % |
|
| 0.08 | % |
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
ALLOWANCE FOR CREDIT LOSSES
(Unaudited)
| Quarter-to-Date |
|
| Year-to-Date |
| |||||||||||||||
(Dollars in Thousands) |
| June 30, |
|
| March 31, |
|
| June 30, |
|
| June 30, |
|
| June 30, |
| |||||
Balance Beginning of Period |
| $ | 96,536 |
|
| $ | 97,052 |
|
| $ | 94,694 |
|
| $ | 97,052 |
|
| $ | 93,852 |
|
Provision for Credit Losses |
|
| 491 |
|
|
| 16 |
|
|
| 85 |
|
|
| 507 |
|
|
| 1,500 |
|
Charge-offs: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Commercial and Industrial |
|
| 1 |
|
|
| 18 |
|
|
| - |
|
|
| 19 |
|
|
| 1 |
|
Residential Mortgages |
|
| 4 |
|
|
| 23 |
|
|
| 67 |
|
|
| 27 |
|
|
| 70 |
|
Other Consumer |
|
| 488 |
|
|
| 480 |
|
|
| 651 |
|
|
| 968 |
|
|
| 1,308 |
|
Construction |
|
| - |
|
|
| 156 |
|
|
| 42 |
|
|
| 156 |
|
|
| 42 |
|
Other |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Total Charge-offs |
|
| 493 |
|
|
| 677 |
|
|
| 760 |
|
|
| 1,170 |
|
|
| 1,421 |
|
Recoveries: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial Real Estate |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Commercial and Industrial |
|
| 1 |
|
|
| 1 |
|
|
| 5 |
|
|
| 2 |
|
|
| 5 |
|
Residential Mortgages |
|
| 22 |
|
|
| 2 |
|
|
| 1 |
|
|
| 24 |
|
|
| 2 |
|
Other Consumer |
|
| 129 |
|
|
| 142 |
|
|
| 119 |
|
|
| 271 |
|
|
| 206 |
|
Construction |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Other |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
Total Recoveries |
|
| 152 |
|
|
| 145 |
|
|
| 125 |
|
|
| 297 |
|
|
| 213 |
|
Total Net Charge-offs |
|
| 341 |
|
|
| 532 |
|
|
| 635 |
|
|
| 873 |
|
|
| 1,208 |
|
Balance End of Period |
| $ | 96,686 |
|
| $ | 96,536 |
|
| $ | 94,144 |
|
| $ | 96,686 |
|
| $ | 94,144 |
|
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
DEFINITIONS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES:
(Unaudited)
1 Pre-tax Pre-provision Income (Non-GAAP) |
| Quarter-to-Date |
|
| Year-to-Date |
| ||||||||||||||
(Dollars in Thousands) |
| June 30, |
|
| March 31, |
|
| June 30, |
|
| June 30, |
|
| June 30, |
| |||||
Net Interest Income |
| $ | 28,092 |
|
| $ | 28,419 |
|
| $ | 26,711 |
|
| $ | 56,511 |
|
| $ | 67,496 |
|
Noninterest Income |
|
| 5,533 |
|
|
| 5,045 |
|
|
| 5,028 |
|
|
| 10,578 |
|
|
| 9,763 |
|
Noninterest Expense |
|
| 27,446 |
|
|
| 26,257 |
|
|
| 25,536 |
|
|
| 53,703 |
|
|
| 49,112 |
|
Pre-tax Pre-provision Income (Non-GAAP) |
| $ | 6,179 |
|
| $ | 7,207 |
|
| $ | 6,203 |
|
| $ | 13,386 |
|
| $ | 28,147 |
|
2 Adjusted Net Income (Non-GAAP) |
| Quarter-to-Date |
|
| Year-to-Date |
| ||||||||||||||
(Dollars in Thousands, except per share data) |
| June 30, |
|
| March 31, |
|
| June 30, |
|
| June 30, |
|
| June 30, |
| |||||
Net Income |
| $ | 4,803 |
|
| $ | 5,811 |
|
| $ | 5,704 |
|
| $ | 10,614 |
|
| $ | 21,645 |
|
(Gains) Losses on Sales of Securities, net |
|
| (36 | ) |
|
| - |
|
|
| (3 | ) |
|
| (36 | ) |
|
| 9 |
|
Less: Equity Security Unrealized Fair Value Gain |
|
| (63 | ) |
|
| - |
|
|
| - |
|
|
| (63 | ) |
|
| - |
|
Losses on Sales and Write-downs of Bank Premises, net |
|
| 44 |
|
|
| 1 |
|
|
| 33 |
|
|
| 45 |
|
|
| 66 |
|
Gains on Sales and Write-downs of OREO, net |
|
| (8 | ) |
|
| (342 | ) |
|
| (5 | ) |
|
| (350 | ) |
|
| (5 | ) |
OREO Income |
|
| (20 | ) |
|
| (8 | ) |
|
| (18 | ) |
|
| (28 | ) |
|
| (34 | ) |
Contingent Liability |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| 115 |
|
Total Tax Effect |
|
| 18 |
|
|
| 73 |
|
|
| (1 | ) |
|
| 91 |
|
|
| (32 | ) |
Adjusted Net Income (Non-GAAP) |
| $ | 4,738 |
|
| $ | 5,535 |
|
| $ | 5,710 |
|
| $ | 10,273 |
|
| $ | 21,764 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Shares Outstanding - diluted |
|
| 22,826,510 |
|
|
| 22,770,311 |
|
|
| 23,513,837 |
|
|
| 22,798,476 |
|
|
| 23,641,109 |
|
Adjusted Earnings Per Common Share (diluted) (Non-GAAP) |
| $ | 0.21 |
|
| $ | 0.24 |
|
| $ | 0.24 |
|
| $ | 0.45 |
|
| $ | 0.92 |
|
3 Computed on a fully taxable equivalent basis ("FTE") using a
Net Interest Income (FTE) (Non-GAAP) |
| Quarter-to-Date |
|
| Year-to-Date |
| ||||||||||||||
(Dollars in Thousands) |
| June 30, |
|
| March 31, |
|
| June 30, |
|
| June 30, |
|
| June 30, |
| |||||
Interest Income (FTE)(Non-GAAP) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |||||
Interest and Dividend Income (GAAP) |
| $ | 54,583 |
|
| $ | 54,049 |
|
| $ | 43,716 |
|
| $ | 108,632 |
|
| $ | 95,671 |
|
Tax Equivalent Adjustment3 |
|
| 197 |
|
|
| 206 |
|
|
| 257 |
|
|
| 403 |
|
|
| 521 |
|
Interest and Dividend Income (FTE) (Non-GAAP) |
|
| 54,780 |
|
|
| 54,255 |
|
|
| 43,973 |
|
|
| 109,035 |
|
|
| 96,192 |
|
Average Earning Assets |
|
| 4,437,077 |
|
|
| 4,429,020 |
|
|
| 4,261,652 |
|
|
| 4,433,049 |
|
|
| 4,224,116 |
|
Yield on Interest-earning Assets (GAAP) |
|
| 4.95 | % |
|
| 4.91 | % |
|
| 4.11 | % |
|
| 4.93 | % |
|
| 4.57 | % |
Yield on Interest-earning Assets (FTE) (Non-GAAP) |
|
| 4.97 | % |
|
| 4.93 | % |
|
| 4.14 | % |
|
| 4.95 | % |
|
| 4.59 | % |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net Interest Income (GAAP) |
| $ | 28,092 |
|
| $ | 28,419 |
|
| $ | 26,711 |
|
| $ | 56,511 |
|
| $ | 67,496 |
|
Tax Equivalent Adjustment3 |
|
| 197 |
|
|
| 206 |
|
|
| 257 |
|
|
| 403 |
|
|
| 521 |
|
Net Interest Income (FTE) (Non-GAAP) |
|
| 28,289 |
|
|
| 28,625 |
|
|
| 26,968 |
|
|
| 56,914 |
|
|
| 68,017 |
|
Average Earning Assets |
|
| 4,437,077 |
|
|
| 4,429,020 |
|
|
| 4,261,652 |
|
|
| 4,433,049 |
|
|
| 4,224,116 |
|
Net Interest Margin (GAAP) |
|
| 2.55 | % |
|
| 2.58 | % |
|
| 2.51 | % |
|
| 2.56 | % |
|
| 3.22 | % |
Net Interest Margin (FTE) (Non-GAAP) |
|
| 2.56 | % |
|
| 2.60 | % |
|
| 2.54 | % |
|
| 2.58 | % |
|
| 3.25 | % |
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
| Quarter-to-Date |
|
| Year-to-Date |
| |||||||||||||||
(Dollars in Thousands) |
| June 30, |
|
| March 31, |
|
| June 30, |
|
| June 30, |
|
| June 30, |
| |||||
Noninterest Expense |
| $ | 27,446 |
|
| $ | 26,257 |
|
| $ | 25,536 |
|
| $ | 53,703 |
|
| $ | 49,112 |
|
Less: Losses on Sales and Write-downs of Bank Premises, net |
|
| (44 | ) |
|
| (1 | ) |
|
| (33 | ) |
|
| (45 | ) |
|
| (66 | ) |
Less: Gains on Sales and Write-downs of OREO, net |
|
| 8 |
|
|
| 342 |
|
|
| 5 |
|
|
| 350 |
|
|
| 5 |
|
Less: Contingent Liability |
|
| - |
|
|
| - |
|
|
| - |
|
|
| - |
|
|
| (115 | ) |
Adjusted Noninterest Expense (Non-GAAP) |
| $ | 27,410 |
|
| $ | 26,598 |
|
| $ | 25,508 |
|
| $ | 54,008 |
|
| $ | 48,936 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Net Interest Income |
| $ | 28,092 |
|
| $ | 28,419 |
|
| $ | 26,711 |
|
| $ | 56,511 |
|
| $ | 67,496 |
|
Plus: Taxable Equivalent Adjustment3 |
|
| 197 |
|
|
| 206 |
|
|
| 257 |
|
|
| 403 |
|
|
| 521 |
|
Net Interest Income (FTE) (Non-GAAP) |
|
| 28,289 |
|
|
| 28,625 |
|
|
| 26,968 |
|
|
| 56,914 |
|
|
| 68,017 |
|
Less: (Gains) Losses on Sales of Securities, net |
|
| (36 | ) |
|
| - |
|
|
| (3 | ) |
|
| (36 | ) |
|
| 9 |
|
Less: Equity Security Unrealized Fair Value Gain |
|
| (63 | ) |
|
| - |
|
|
| - |
|
|
| (63 | ) |
|
| - |
|
Less: OREO Income |
|
| (20 | ) |
|
| (8 | ) |
|
| (18 | ) |
|
| (28 | ) |
|
| (34 | ) |
Noninterest Income |
|
| 5,533 |
|
|
| 5,045 |
|
|
| 5,028 |
|
|
| 10,578 |
|
|
| 9,763 |
|
Net Interest Income (FTE) (Non-GAAP) plus Noninterest Income |
| $ | 33,703 |
|
| $ | 33,662 |
|
| $ | 31,975 |
|
| $ | 67,365 |
|
| $ | 77,755 |
|
Efficiency Ratio (GAAP) |
|
| 81.62 | % |
|
| 78.46 | % |
|
| 80.46 | % |
|
| 80.05 | % |
|
| 63.57 | % |
Adjusted Efficiency Ratio (Non-GAAP) |
|
| 81.33 | % |
|
| 79.01 | % |
|
| 79.77 | % |
|
| 80.17 | % |
|
| 62.94 | % |
SOURCE: Carter Bankshares, Inc.
View the original press release on accesswire.com
FAQ
What was Carter Bankshares' EPS for Q2 2024?
How much did Carter Bankshares' net income decrease by in Q2 2024 compared to Q1 2024?
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What affected Carter Bankshares' net interest income in Q2 2024?
