Carter Bankshares, Inc. reported a net income of $8.95 million, or $0.39 per diluted share, for the first quarter of 2025, marking a significant increase from the $5.81 million, or $0.25 per diluted share, reported in the same period last year. The bank's total interest income rose to $56.01 million, up from $54.05 million, driven by a 6.0% increase in net interest income, which reached $30.14 million compared to $28.42 million in the prior year. This growth was attributed to higher yields on loans and a favorable shift in the interest rate environment, particularly following recent Federal Reserve rate cuts.
In terms of financial position, total assets increased to $4.70 billion as of March 31, 2025, up from $4.66 billion at the end of 2024. The bank's loan portfolio also saw growth, rising by $62.7 million to $3.69 billion, with notable increases in commercial real estate and residential mortgage loans. However, nonperforming loans increased slightly to $261.4 million, representing 7.09% of total loans, compared to 7.15% at the end of 2024. The allowance for credit losses decreased to $73.5 million, or 1.99% of total loans, reflecting a recovery in the provision for credit losses.
Strategically, Carter Bankshares is pursuing growth through both organic means and acquisitions. The company has entered into an agreement to acquire two branch facilities in North Carolina from First Reliance Bank, expected to close in the second quarter of 2025. This move aligns with the bank's broader strategy to enhance its brand and expand its market presence. The bank is also focusing on improving its operational efficiency and customer engagement, as evidenced by a new brand identity launched in late 2024.
Operationally, the bank's total deposits increased by $47.5 million to $4.20 billion, with significant growth in interest-bearing demand accounts. The bank's capital position remains strong, with total capital rising to $401.77 million, reflecting a well-capitalized status under regulatory guidelines. The bank's Tier 1 capital ratio was reported at 11.01%, above the required minimum, indicating a solid foundation for future growth. Looking ahead, Carter Bankshares aims to continue leveraging its strong capital and liquidity positions to support its growth strategy while managing credit risks associated with its loan portfolio.
About Carter Bankshares, Inc.
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