Business
Carter Bankshares, Inc. Announces First Quarter 2024 Financial Results
MARTINSVILLE, VA / ACCESSWIRE / April 25, 2024 / Carter Bankshares, Inc. (the "Company") (NASDAQ:CARE), the holding company of Carter Bank & Trust (the
About this update from Carter Bankshares, Inc.
[{"type":"text","content":"MARTINSVILLE, VA / ACCESSWIRE / April 25, 2024 / Carter Bankshares, Inc. (the \"Company\") (NASDAQ:CARE), the holding company of Carter Bank & Trust (the \"Bank\") today announced quarterly net income of $5.8 million, or $0.25 diluted earnings per share (\"EPS\"), for the first quarter of 2024 compared to a net loss of $(1.9) million, or $(0.08) EPS, in the fourth quarter of 2023 and net income of $15.9 million, or $0.67 diluted EPS, for the first quarter of 2023. The pre-tax pre-provision income 1 was $7.2 million for the quarter ended March 31, 2024, $1.6 million for the quarter ended December 31, 2023 and $21.9 million for the quarter ended March 31, 2023.The Company's financial results for the first quarter of 2024, compared to the prior year quarter, were significantly impacted by placing loans contained in the Bank's Other segment representing the Bank's largest lending relationship with an aggregate principal value of $301.9 million on nonaccrual status during the second quarter of 2023. As a result, interest income was negatively impacted by $9.3 million during the first quarter of 2024 and interest income has been negatively impacted by $39.3 million in the aggregate since placement of these loans on nonaccrual status during the second quarter of 2023. The Company is pursuing all remedies to resolve loans and other matters related to the Bank's largest lending relationship in a manner that best protects the Company and its shareholders.Financial Highlights for the Three Months Ended March 31, 2024Net interest income increased $1.0 million, or 3.6%, to $28.4 million compared to the fourth quarter of 2023 primarily due to a 24 basis point increase in the yield on earning assets, partially offset by a 15 basis point increase in funding costs and decreased $12.4 million, or 30.3% compared to the first quarter of 2023, primarily due to a 155 basis point increase in funding costs and a 12 basis point decrease in the yield on earning assets;Net interest margin, on a fully taxable equivalent basis 3 (\"FTE\"), increased 11 basis points to 2.60% compared to the fourth quarter of 2023 and decreased 138 basis points compared to the first quarter of 2023. Net interest income and net interest margin was significantly impacted as a result of the Bank placing its largest lending relationship on nonaccrual status during the second quar...