NASDAQ$CARE
Carter Bankshares Inc · Q1 2024 earnings
Q1 2024 earnings · · Investor relations
Briefing
Reported a net income increase compared to the previous quarter, but a decrease compared to the same quarter last year, impacted by nonperforming loans.
Carter Bankshares, Inc. reported a net income of $5.8 million for Q1 2024, a significant improvement from the net loss in the previous quarter but lower than the net income in Q1 2023. The results were impacted by placing a significant loan relationship on nonaccrual status. The company is pursuing remedies to resolve these loans.
- Net income was $5.8 million, or $0.25 diluted EPS, compared to a net loss of $(1.9) million, or $(0.08) EPS, in the previous quarter and net income of $15.9 million, or $0.67 diluted EPS, for the first quarter of 2023.
- Net interest income increased $1.0 million, or 3.6%, compared to the fourth quarter of 2023 but decreased $12.4 million, or 30.3% compared to the first quarter of 2023.
- Total deposits increased $108.6 million compared to December 31, 2023 and increased $293.5 million compared to March 31, 2023.
- Nonperforming loans to total portfolio loans were 8.76% for the quarter ended March 31, 2024, significantly impacted by placing its largest lending relationship on nonaccrual status during the second quarter of 2023.
Headline financials
Revenue & EPS history
Carter Bankshares · Revenue · Quarterly
$33.5M
Forward guidance
Carter Bankshares expects moderate loan growth this year and anticipates that the net interest margin will return to a more normalized level once the large nonperforming loan relationship is resolved. The company believes its balance sheet is positioned to benefit when the Fed begins to cut short-term interest rates.
Tailwinds
- Capital and liquidity levels continue to be strong.
- Loan production was again solid in the quarter.
- The bond portfolio is well positioned to outperform many peers in a period of higher interest rates.
- Modest deposit growth is occurring in most categories except savings accounts.
- The balance sheet is positioned to positively impact margins when the Fed cuts short-term interest rates.
Headwinds
- Lending pipelines have slowed.
- There continues to be pressure on the cost of funds, impacting the margin.
- The current rate environment will continue to impact the margin in the coming quarters.
- The large NPL continues to have a negative impact on financial results.
- Cannot give any assurance regarding the timeline for resolution of the large NPL.
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 2024
+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
| Quarter | Report date | Reaction (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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