NASDAQ$CARE

Carter Bankshares Inc · Q1 2023 earnings

Q1 2023 earnings · · Investor relations

Briefing

Announced record first quarter financial results.

Carter Bankshares, Inc. reported a record quarterly net income of $15.9 million, or $0.67 diluted earnings per share, for the first quarter of 2023. The company's annualized quarterly performance metrics were strong with a return on average assets of 1.51% and a return on average equity of 18.89%.

  • Record quarterly net income of $15.9 million, or $0.67 diluted EPS.
  • Return on average assets (ROA) of 1.51% and return on average equity (ROE) of 18.89%.
  • Total portfolio loans increased $100.0 million, or 12.9%, on an annualized basis, to $3.2 billion.
  • Efficiency ratio of 53.1% and a core efficiency ratio of 52.5%.

Headline financials

Total Revenue

$45.5M

Previous: $33.6M+35.6%
EPS (adj)

$0.68

Previous: $0.36+88.9%
Net Interest Margin

4.0%

Previous: 2.9%+35.7%
Efficiency Ratio

53.1%

Previous: 66.3%-20.0%
Tier 1 Capital Ratio

12.3%

Previous: 13.0%-5.4%
Leverage Ratio

10.1%

Previous: 10.0%+0.9%
Total Risk-Based Capital Ratio

13.5%

Previous: 14.2%-4.9%
Capital Expenditures

-$1.93M

Previous: -$809K-137.9%
Free Cash Flow

$14M

Previous: $8.51M+64.6%
Net Income

$15.9M

Previous: $9.32M+71.0%
Operating Income

$26.3M

Previous: $21.6M+21.7%
Gross Profit

$44M

Previous: $33.2M+32.7%
Cash & Equivalents

$81.4M

Previous: $108M-24.7%
Total Assets

$4.37B

Previous: $4.12B+5.9%
Stock-Based Comp

$345K

Previous: $395K-12.7%

Revenue & EPS history

Carter Bankshares · Revenue · Quarterly

$45.5M

Q1 2023+35.6%vs Q1 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Carter Bankshares expects mounting pressure on funding costs will impact their margin in coming quarters. They believe that continued positive trends in loan growth and expense control will help support earnings in the near term. The Company continues to be financially sound with strong capital and liquidity levels.

Tailwinds

  • Continued positive trends in loan growth
  • Expense control will help support earnings in the near term
  • Company continues to be financially sound
  • Strong capital levels
  • Strong liquidity levels

Headwinds

  • Mounting pressure on funding costs
  • Expect impact on margin in coming quarters
  • Monitoring asset quality very closely
  • Potential industry challenges
  • Potential economic challenges

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 2023

Historical avgQ1 2023

+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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