NASDAQ$CARE

Carter Bankshares Inc · Q1 2021 earnings

Q1 2021 earnings · · Investor relations

Briefing

Announced first quarter 2021 financial results, demonstrating increased net income and strategic progress.

Carter Bankshares reported a strong first quarter in 2021, with net income significantly increasing to $9.4 million, or $0.36 diluted earnings per share, compared to both the previous and prior year's quarters. The company saw improvements in net interest income and made strides in its branch optimization initiative.

  • Net income increased to $9.4 million, or $0.36 diluted earnings per share.
  • Net interest income rose by $0.4 million, or 1.4%, compared to the previous quarter.
  • Total deposits increased by $6.9 million to $3.7 billion.
  • The company adopted CECL, resulting in a $64.5 million adjustment to the allowance for credit losses.

Headline financials

Total Revenue

$35.5M

Previous: $34.2M+3.7%
EPS (adj)

$0.36

Previous: $0.17+111.8%
Net Interest Margin

2.8%

Previous: 3.0%-7.6%
Tier 1 Capital Ratio

12.9%

Previous: 13.0%-1.2%
Leverage Ratio

10.2%

Previous: 10.5%-3.0%
Total Risk-Based Capital Ratio

14.1%

Previous: 14.3%-1.0%
Capital Expenditures

-$1.62M

Previous: $4.54M-135.8%
Free Cash Flow

$7.75M

Previous: -$9.53M+181.3%
Net Income

$9.38M

Previous: $4.42M+112.0%
Operating Income

$20.9M

No prior period
Gross Profit

$33.9M

No prior period
Cash & Equivalents

$219M

Previous: $63.4M+245.7%
Total Assets

$4.14B

No prior period
Stock-Based Comp

$208K

Previous: $352K-40.9%

Revenue & EPS history

Carter Bankshares · Revenue · Quarterly

$35.5M

Q1 2021+3.7%vs Q1 2020
Beat estimate in 7 of 12 quarters(58%)
ActualEstimate

Forward guidance

Carter Bankshares is focused on growth in select and emerging markets, continuing to build out its lending groups, and further reducing troubled assets to improve the risk profile of the loan portfolio.

Tailwinds

  • Strong capital base
  • Ample liquidity and reserves
  • State-of-the-art technology
  • Ability to offer competitive products and services through traditional and digital channels
  • Significant progress with deposit mix and cost of funds, driving net interest margin higher

Headwinds

  • Lingering challenges of COVID-19
  • Continued deterioration on a loan in deferral with an aggregate principal balance of $8.1 million
  • Potential deterioration in credit quality with respect to loans on deferral
  • Dependence on assumptions in the CECL financial model
  • Uncertainties related to economic conditions and market factors

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 20 quarterly earnings reports · overlaid with Q1 2021

Historical avgQ1 2021

+0.0%

Avg return

Earnings day

+0.7%

Avg return

5 days after

+4.3%

Avg return

30 days after

45%

25 / 56 earnings

Positive

+8.8%

Q1 2017

Best reaction

-14.0%

Q1 2020

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q1 2026-2.1%+1.8%+12.5%
Q4 2025+2.7%+10.1%+4.6%
Q3 2025-6.3%-5.1%-6.9%
Q1 2025+1.4%+0.6%+6.8%
Q4 2024+1.4%+0.9%-1.9%
Q3 2024-2.0%-0.6%+0.3%
Q2 2024+0.5%-2.9%+2.6%
Q1 2024+4.9%+5.5%+12.0%
Q4 2023+4.5%+5.2%-5.4%
Q3 2023+3.1%+5.8%+19.0%
Q2 2023-9.4%-10.7%-15.5%
Q1 2023+0.9%+0.1%+12.3%
Q4 2022-0.2%+3.0%+7.2%
Q3 2022+4.4%+6.6%+7.8%
Q2 2022+0.1%+5.2%+22.3%
Q1 2022-2.9%-4.6%-12.8%
Q1 2019+3.5%+3.1%+9.0%
Q2 2019+3.5%+3.1%+9.0%
Q4 2021-0.4%-1.2%+7.8%
Q3 2021+2.1%+7.6%-0.5%
Q2 2021+5.2%+4.5%+12.8%
Q1 2021-1.9%+0.0%+18.0%
Q4 2020-3.0%+0.3%+14.6%
Q3 2020+1.0%+8.4%+43.8%
Q2 2020-1.6%-3.7%-3.7%
Q1 2020-14.0%-23.8%-31.4%
Q4 2019-1.0%-2.4%-13.9%
Q3 2019-0.3%+0.2%+3.9%
Q4 2018+3.4%+3.7%+13.6%
Q3 2018+0.0%-1.5%-10.6%
Q2 2018+1.9%+0.8%+1.0%
Q1 2018-0.3%-0.3%+2.8%
Q4 2017-1.7%-1.4%+0.3%
Q3 2017-0.9%-0.3%-3.5%
Q2 2017-0.1%-0.1%+2.3%
Q1 2017+8.8%+8.1%+10.1%
Q4 2016-0.7%-0.3%+17.4%
Q3 2016+1.0%+0.6%-7.5%
Q2 2016-0.6%-0.6%+9.1%
Q1 2016-2.2%
Q4 2015-1.1%
Q3 2015+1.0%
Q2 2015+2.4%
Q1 2015-1.4%
Q4 2014-0.6%
Q3 2014+0.3%
Q2 2014-1.7%
Q1 2014-0.8%
Q4 2013+0.7%
Q3 2013+0.0%
Q2 2013-3.7%
Q1 2013+0.0%
Q4 2012+1.1%
Q3 2012+0.0%
Q2 2012+1.9%
Q1 2012+0.0%

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