Business
Carter Bankshares, Inc. Announces Second Quarter 2024 Financial Results
MARTINSVILLE, VA / ACCESSWIRE / July 25, 2024 / Carter Bankshares, Inc. (the "Company") (NASDAQ:CARE), the holding company of Carter Bank & Trust (the "Bank")
About this update from Carter Bankshares, Inc.
[{"type":"text","content":"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 $4.8 million, or $0.21 diluted earnings per share (\"EPS\"), for the second quarter of 2024 compared to net income of $5.8 million, or $0.25 diluted EPS, in the first quarter of 2024 and net income of $5.7 million, or $0.24 diluted EPS, for the second quarter of 2023. The pre-tax pre-provision income1 was $6.2 million for the second quarter of 2024, $7.2 million for the first quarter of 2024 and $6.2 million for the second quarter of 2023.For the six months ended June 30, 2024, net income was $10.6 million, or $0.46 diluted EPS, compared to net income of $21.6 million, or $0.91 diluted EPS for the same period in 2023. Pre-tax pre-provision income1 was $13.4 million and $28.1 million for the six months ended June 30, 2024 and 2023, respectively.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 $301.9 million as of March 31, 2024 to $294.1 million as of June 30, 2024.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 $9.1 million and $11.3 million during the second quarter of 2024 and 2023, respectively. Interest income has been negatively impacted by $48.4 million in the aggregate since placement of these loans on nonaccrual status during the second quarter of 2023.Financial Highlights for the Three and Six Months En...