NASDAQ$CARE

Carter Bankshares Inc · Q1 2022 earnings

Q1 2022 earnings · · Investor relations

Briefing

Carter Bankshares' financial performance improved with increased net income and strategic balance sheet management

Carter Bankshares reported a net income of $9.3 million, or $0.36 diluted earnings per share, for the first quarter of 2022. The company saw growth in loans and deposits, along with a decrease in nonperforming loans. The bank's balance sheet is positioned to benefit from potential interest rate hikes by the Federal Reserve.

  • Net income was $9.3 million, or $0.36 diluted earnings per share.
  • Total portfolio loans increased by $81.9 million, or 11.8% annualized.
  • Total deposits increased by $29.8 million, or 3.3% annualized.
  • Nonperforming loans decreased by $0.1 million, or 1.4%.

Headline financials

Total Revenue

$33.6M

Previous: $35.5M-5.4%
EPS (adj)

$0.36

Previous: $0.36+0.0%
Net Interest Margin

2.9%

Previous: 2.8%+4.7%
Efficiency Ratio

66.3%

No prior period
Tier 1 Capital Ratio

13.0%

Previous: 12.9%+0.8%
Leverage Ratio

10.0%

Previous: 10.2%-1.6%
Total Risk-Based Capital Ratio

14.2%

Previous: 14.1%+0.7%
Capital Expenditures

-$809K

Previous: -$1.62M+50.2%
Free Cash Flow

$8.51M

Previous: $7.75M+9.8%
Net Income

$9.32M

Previous: $9.38M-0.6%
Operating Income

$21.6M

Previous: $20.9M+3.4%
Gross Profit

$33.2M

Previous: $33.9M-2.2%
Cash & Equivalents

$108M

Previous: $219M-50.7%
Total Assets

$4.12B

Previous: $4.14B-0.5%
Stock-Based Comp

$395K

Previous: $208K+89.9%

Revenue & EPS history

Carter Bankshares · Revenue · Quarterly

$33.6M

Q1 2022-5.4%vs Q1 2021
Beat estimate in 11 of 16 quarters(69%)
ActualEstimate

Forward guidance

Carter Bankshares is focused on improving its financial performance by growing loans and deposits, reducing nonperforming assets, and optimizing its branch network. The bank's balance sheet is positioned to benefit from potential interest rate hikes by the Federal Reserve.

Tailwinds

  • Continued positive momentum from 2021.
  • Strong loan growth in commercial and residential mortgage portfolios.
  • Improvement in deposit mix.
  • Reduction in cost of funds.
  • Continued decline in problem assets.

Headwinds

  • Potential adverse effects of weather-related disasters, terrorist acts or public health events.
  • Sensitivity to the interest rate environment including a prolonged period of low interest rates, a rapid increase in interest rates or a change in the shape of the yield curve.
  • Regulatory supervision and oversight.
  • Increasing price and product/service competition.
  • Deterioration of the housing market and reduced demand for mortgages.

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 2022

Historical avgQ1 2022

+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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