Business
Carter Bankshares, Inc. Announces First Quarter 2025 Financial Results
MARTINSVILLE, VA / ACCESS Newswire / April 24, 2025 / Carter Bankshares, Inc. (the "Company") (NASDAQ:CARE), the holding company of Carter Bank (the "Bank") today announced quarterly net income of $9.0 million, or $0.39 diluted earnings per share ...
About this update from Carter Bankshares, Inc.
[{"type":"text","content":"MARTINSVILLE, VA / ACCESS Newswire / April 24, 2025 / Carter Bankshares, Inc. (the "Company") (NASDAQ:CARE), the holding company of Carter Bank (the "Bank") today announced quarterly net income of $9.0 million, or $0.39 diluted earnings per share ("EPS"), for the first quarter of 2025 compared to net income of $8.3 million, or $0.36 diluted EPS, for the fourth quarter of 2024 and net income of $5.8 million, or $0.25 diluted EPS, for the first quarter of 2024. Pre-tax pre-provision income1 was $9.0 million for the first quarter of 2025, $5.6 million for the fourth quarter of 2024 and $7.2 million for the first quarter of 2024.","length":663,"tagName":"p"},{"type":"text","content":"The Company's financial results continue to be significantly impacted by loans in the Bank's Other segment of the Company's loan portfolio, the significant majority of which have been on nonaccrual status since the second quarter of 2023. The Bank's loans, now reduced to judgments, relate to various entities in which James C. Justice, II has an interest (collectively, the "Justice Entities"), remain the Bank's largest credit relationship and comprise the significant majority of the Other segment with an aggregate principal balance of $245.1 million as of March 31, 2025. Interest income was negatively impacted by $6.8 million during the first quarter of 2025, $7.9 million during the fourth quarter of 2024, and $9.3 million during the first quarter of 2024, due to these credits being on nonaccrual status. Interest income has been negatively impacted by $71.9 million in the aggregate since placement of these credits on nonaccrual status during the second quarter of 2023.","length":1012,"tagName":"p"},{"type":"text","content":"The Company has agreed upon a pathway of curtailment and payoff of the Bank's credit relationship with the Justice Entities. During the first quarter of 2025, the Company received $6.9 million of curtailment payments. As of March 31, 2025, $56.8 million of aggregate curtailment payments made by the Justice Entities to the Bank have decreased the aggregate nonperforming loan ("NPL") balance from $301.9 million as of March 31, 2024 to $245.1 million as of March 31, 2025. For additional information regarding the Bank's credit relationship with the Justice Entit...