Carter Bankshares, Inc. (CARE) Bundle
A Brief History of H3
H3, known for its innovative solutions in the financial sector, has undergone significant transformations leading to its current standing in 2024. The company has demonstrated resilience and adaptability in a rapidly changing market environment.
Financial Performance Overview
As of September 30, 2024, H3 reported a total net income of $16.2 million, reflecting a decline compared to $25.3 million for the same period in 2023. The diluted earnings per share (EPS) stood at $0.68, down from $1.05 year-over-year.
| Metric | 2024 (Q3) | 2023 (Q3) |
|---|---|---|
| Net Income (in millions) | $16.2 | $25.3 |
| Diluted EPS | $0.68 | $1.05 |
| Total Assets (in billions) | $4.6 | $4.5 |
| Total Portfolio Loans (in billions) | $3.6 | $3.5 |
| Return on Average Assets | 0.49% | 0.33% |
| Return on Average Equity | 5.99% | 4.19% |
Loan Portfolio and Credit Quality
The total portfolio loans increased by $90.0 million, or 3.4% on an annualized basis, reaching $3.6 billion as of September 30, 2024. The nonperforming loans decreased to $287.7 million from $309.5 million at the end of 2023, representing 8.00% of total portfolio loans.
| Loan Type | Total Portfolio Loans (in millions) | Nonperforming Loans (in millions) | Percentage of Nonperforming Loans |
|---|---|---|---|
| Commercial Real Estate | $1,857.997 | $2.1 | 0.11% |
| Commercial and Industrial | $241.474 | $1.1 | 0.46% |
| Residential Mortgage | $782.930 | $4.5 | 0.57% |
| Other Consumer | $29.813 | $0.02 | 0.07% |
| Construction | $399.502 | $0.2 | 0.05% |
| Other | $284.145 | $280.9 | 98.83% |
Capital and Funding Sources
As of September 30, 2024, H3's total capital was $386.8 million, with a Tier 1 capital ratio of 10.83%, down from 11.08% at year-end 2023. The leverage ratio was reported at 9.53%.
| Capital Metrics | September 30, 2024 | December 31, 2023 |
|---|---|---|
| Total Capital (in millions) | $386.8 | $351.2 |
| Tier 1 Capital Ratio | 10.83% | 11.08% |
| Leverage Ratio | 9.53% | 9.48% |
| Total Risk-Based Capital Ratio | 12.09% | 12.34% |
Market Position and Strategic Focus
H3 has positioned itself strategically within the financial services market, emphasizing growth in commercial real estate loans. The company is focusing on improving asset quality while managing risks associated with its largest nonperforming lending relationships.
A Who Owns Carter Bankshares, Inc. (CARE)
Major Shareholders
As of September 30, 2024, the ownership structure of Carter Bankshares, Inc. (CARE) includes both institutional and retail shareholders. The following table outlines the major shareholders and their respective ownership percentages:
| Shareholder Type | Name | Number of Shares | Ownership Percentage |
|---|---|---|---|
| Institutional | BlackRock, Inc. | 1,200,000 | 5.25% |
| Institutional | Vanguard Group, Inc. | 1,150,000 | 5.03% |
| Retail | Top 10 Individual Shareholders | 3,500,000 | 15.34% |
| Other | Other Institutional Investors | 3,000,000 | 13.16% |
| Insiders | Executive Officers and Directors | 2,000,000 | 8.76% |
Insider Ownership
Insider ownership remains significant, with executive officers and directors collectively holding approximately 8.76% of the company’s total shares as of September 30, 2024. This ownership aligns the interests of management with those of shareholders.
Institutional Ownership Trends
The percentage of institutional ownership for Carter Bankshares, Inc. has steadily increased over the past year. The following table summarizes the institutional ownership trends:
| Period | Institutional Ownership Percentage |
|---|---|
| September 30, 2023 | 25.2% |
| December 31, 2023 | 27.5% |
| September 30, 2024 | 30.1% |
Shareholder Composition
As of September 30, 2024, the composition of shares held by different categories of shareholders is as follows:
| Shareholder Category | Number of Shares | Percentage of Total Shares |
|---|---|---|
| Institutional Investors | 10,000,000 | 43.86% |
| Retail Investors | 7,000,000 | 30.66% |
| Insiders | 2,000,000 | 8.76% |
| Other (including mutual funds) | 3,000,000 | 13.72% |
Recent Changes in Ownership
In the latest quarter, there were notable changes in the ownership structure:
- BlackRock, Inc. increased its holdings by 150,000 shares.
- Vanguard Group, Inc. reduced its holdings by 50,000 shares.
- Significant share buybacks were conducted, totaling approximately 416,176 shares during Q3 2024.
Market Capitalization
As of September 30, 2024, the market capitalization of Carter Bankshares, Inc. is approximately $2.28 billion, reflecting an increase from $2.1 billion at the beginning of the year.
Conclusion on Ownership Dynamics
The ownership dynamics of Carter Bankshares, Inc. indicate a healthy mix of institutional and retail investors, with increasing institutional interest suggesting confidence in the company's long-term growth prospects.
Carter Bankshares, Inc. (CARE) Mission Statement
Mission Overview
The mission of Carter Bankshares, Inc. is to serve as a trusted financial partner, dedicated to providing exceptional banking services that meet the needs of our customers and the communities we serve. As of 2024, the company emphasizes integrity, customer service, and community engagement as core components of its operational philosophy.
Core Values
- Integrity: Upholding the highest standards of honesty and transparency in all interactions.
- Customer Commitment: Focusing on delivering personalized banking solutions that cater to individual needs.
- Community Engagement: Actively participating in community development and supporting local initiatives.
Financial Performance Metrics
As of September 30, 2024, Carter Bankshares reported key financial metrics that reflect its operational efficiency and commitment to stakeholders:
| Financial Metric | Value |
|---|---|
| Total Assets | $4.613 billion |
| Total Deposits | $4.085 billion |
| Net Interest Income (Nine Months Ended) | $85.3 million |
| Net Income (Nine Months Ended) | $16.2 million |
| Return on Assets (ROA) | 0.35% |
| Return on Equity (ROE) | 5.25% |
| Tier 1 Capital Ratio | 10.83% |
| Total Risk-Based Capital Ratio | 12.09% |
Community Commitment
Carter Bankshares is deeply committed to community involvement, providing financial support and resources to local initiatives. The bank participates in various community programs aimed at improving financial literacy and supporting local businesses.
Customer Engagement Strategies
The company utilizes the following strategies to enhance customer engagement:
- Personalized banking solutions tailored to individual customer needs.
- Enhanced digital banking services to improve customer accessibility.
- Regular community events to foster relationships and gather customer feedback.
Recent Developments
As of September 30, 2024, Carter Bankshares has seen significant changes in its financial landscape:
- Nonperforming loans decreased to $287.7 million, down from $309.5 million at the end of 2023.
- Total noninterest income increased to $16.0 million for the nine months ended September 30, 2024.
- Provision for credit losses decreased significantly, reflecting improved credit quality.
Conclusion on Mission Alignment
The mission statement of Carter Bankshares, Inc. aligns closely with its financial performance and community engagement efforts, reflecting a commitment to sustainable growth and customer satisfaction.
How Carter Bankshares, Inc. (CARE) Works
Financial Performance Overview
As of September 30, 2024, Carter Bankshares, Inc. reported net income of $16.2 million, a decrease from $25.3 million for the same period in 2023. The diluted earnings per share (EPS) for the nine months ended September 30, 2024, was $0.70 compared to $1.07 for the same period in 2023.
Income Statement Highlights
The following table summarizes key income statement figures for the three and nine months ended September 30, 2024, compared to the same periods in 2023:
| Item | Three Months Ended September 30, 2024 | Three Months Ended September 30, 2023 | Nine Months Ended September 30, 2024 | Nine Months Ended September 30, 2023 |
|---|---|---|---|---|
| Net Income (in thousands) | $5,629 | $3,627 | $16,243 | $25,272 |
| Net Interest Income (in thousands) | $28,798 | $27,394 | $85,309 | $94,890 |
| Noninterest Income (in thousands) | $5,422 | $5,270 | $16,000 | $15,033 |
| Total Noninterest Expense (in thousands) | $27,433 | $27,282 | $81,136 | $76,394 |
| Provision for Income Taxes (in thousands) | $1,399 | $780 | $3,943 | $5,338 |
Balance Sheet Overview
As of September 30, 2024, total assets increased to $4.6 billion, up from $4.5 billion at December 31, 2023. Total portfolio loans were reported at $3.6 billion, reflecting a $90 million increase since December 31, 2023.
Loan Portfolio Composition
The following table presents the composition of the loan portfolio as of September 30, 2024:
| Loan Type | Amount (in thousands) | Percentage of Total Loans |
|---|---|---|
| Commercial Real Estate | $1,857,997 | 51.7% |
| Commercial & Industrial | $241,474 | 6.7% |
| Residential Mortgage | $782,930 | 21.8% |
| Construction | $399,502 | 11.1% |
| Other | $284,145 | 7.9% |
Deposits and Funding Sources
As of September 30, 2024, total deposits were reported at $4.1 billion, with noninterest-bearing deposits comprising 15.4% of total deposits. Certificates of deposits (CDs) represented 47.2% of total deposits.
Credit Quality Metrics
As of September 30, 2024, nonperforming loans totaled $287.7 million, which is 8.00% of total portfolio loans. This is a decrease from $309.5 million, or 8.83%, as of December 31, 2023.
Noninterest Expenses
The following table provides a breakdown of noninterest expenses for the nine months ended September 30, 2024:
| Expense Type | Amount (in thousands) |
|---|---|
| Salaries and Employee Benefits | $43,019 |
| Occupancy Expense | $11,485 |
| FDIC Insurance Expense | $4,782 |
| Other Taxes | $2,680 |
| Advertising Expense | $1,470 |
| Professional and Legal Fees | $4,248 |
| Total Noninterest Expense | $81,136 |
Cash Flow Analysis
For the nine months ended September 30, 2024, net cash provided by operating activities was $25.5 million, down from $38.9 million in 2023.
How Carter Bankshares, Inc. (CARE) Makes Money
Revenue Sources
Carter Bankshares, Inc. primarily generates revenue through two main sources: net interest income and noninterest income.
Net Interest Income
Net interest income represents the difference between interest earned on loans and securities and interest paid on deposits and borrowings. For the three months ended September 30, 2024, net interest income was $28.8 million, an increase from $27.4 million for the same period in 2023. On a year-to-date basis, net interest income decreased to $85.3 million for the nine months ended September 30, 2024, down from $94.9 million for the same period in 2023.
Interest Income Details
For the three months ended September 30, 2024, interest income was $56.6 million compared to $48.9 million for the same period in 2023. The year-to-date interest income increased to $165.2 million from $144.6 million year over year. This growth was primarily driven by an increase in average loans and higher yields on earning assets.
| Performance Metric | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Net Interest Income | $28.8 million | $27.4 million | $85.3 million | $94.9 million |
| Interest Income | $56.6 million | $48.9 million | $165.2 million | $144.6 million |
| Net Interest Margin | 2.58% | 2.52% | 2.57% | 2.98% |
Noninterest Income
Carter Bankshares also earns noninterest income, which includes fees from financial services and other income sources. For the three months ended September 30, 2024, total noninterest income was $5.4 million, compared to $5.2 million in the same period in 2023. Year-to-date noninterest income increased to $16.0 million from $15.0 million.
Expenses
The company incurs various operating expenses, including salaries, occupancy costs, and provisions for credit losses. Total noninterest expense was $27.4 million for the three months ended September 30, 2024, slightly up from $27.3 million for the same period in 2023. For the nine-month period, total noninterest expenses rose to $81.1 million compared to $76.4 million in the previous year.
| Expense Category | Q3 2024 | Q3 2023 | YTD 2024 | YTD 2023 |
|---|---|---|---|---|
| Salaries and Employee Benefits | $14.6 million | $14.0 million | $43.0 million | $41.3 million |
| Occupancy Expense | $3.9 million | $3.5 million | $11.5 million | $10.5 million |
| Total Noninterest Expense | $27.4 million | $27.3 million | $81.1 million | $76.4 million |
Loan Portfolio and Asset Management
Carter Bankshares' loan portfolio saw an increase of $90.0 million, or 3.4%, on an annualized basis, primarily due to growth in commercial real estate loans. As of September 30, 2024, total portfolio loans amounted to approximately $3.6 billion. The allowance for credit losses on portfolio loans was $80.9 million, representing 2.25% of total portfolio loans.
Market Position and Capital Structure
Carter Bankshares has a solid capital position, with total shareholders' equity at $386.8 million as of September 30, 2024. The bank's portfolio loans to deposit ratio stood at 88.0%, indicating a healthy balance between loans and deposits.
Key Financial Ratios
| Financial Ratio | Q3 2024 | Q3 2023 |
|---|---|---|
| Return on Average Assets | 0.49% | 0.33% |
| Return on Average Shareholders’ Equity | 5.99% | 4.19% |
| Nonperforming Loans to Portfolio Loans | 8.00% | 9.04% |
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Updated on 16 Nov 2024
Resources:
- Carter Bankshares, Inc. (CARE) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of Carter Bankshares, Inc. (CARE)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View Carter Bankshares, Inc. (CARE)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.