NASDAQ$CARE

Carter Bankshares Inc · Q3 2021 earnings

Q3 2021 earnings · · Investor relations

Briefing

Announced third quarter 2021 financial results, with net income of $11.2 million and diluted earnings per share of $0.42.

Carter Bankshares, Inc. reported a net income of $11.2 million, or $0.42 diluted earnings per share, for Q3 2021, a significant improvement compared to the net loss of $57.7 million, or $2.19 per share, for Q3 2020. The results reflect improvements in asset quality, net interest income, and a better deposit mix.

  • Nonperforming loans decreased by $0.7 million, or 7.3%, to $8.9 million at September 30, 2021, compared to June 30, 2021.
  • Net interest income increased by $2.2 million, or 8.1%, to $29.4 million compared to the second quarter of 2021.
  • Net interest margin increased 17 basis points to 2.96% compared to the second quarter of 2021.
  • Total deposits increased $7.1 million to $3.7 billion at September 30, 2021 compared to June 30, 2021.

Headline financials

Total Revenue

$36.3M

Previous: $33.4M+8.7%
EPS (adj)

$0.42

Previous: $0.17+147.1%
Net Interest Margin

3.0%

Previous: 2.7%+10.9%
Tier 1 Capital Ratio

13.8%

Previous: 13.1%+5.9%
Leverage Ratio

10.5%

Previous: 10.1%+3.6%
Capital Expenditures

-$6.28M

Previous: $1.52M-512.7%
Free Cash Flow

$4.89M

Previous: -$21.7M+122.6%
Net Income

$11.2M

Previous: -$57.7M+119.4%
Operating Income

$19.2M

No prior period
Gross Profit

$34.9M

No prior period
Cash & Equivalents

$226M

Previous: $151M+49.4%
Total Assets

$4.13B

No prior period
Stock-Based Comp

$273K

Previous: $230K+18.7%

Revenue & EPS history

Carter Bankshares · Revenue · Quarterly

$36.3M

Q3 2021+8.7%vs Q3 2020
Beat estimate in 9 of 14 quarters(64%)
ActualEstimate

Forward guidance

The company focuses on improving revenue and earnings growth to enhance financial performance.

Tailwinds

  • Continued decline in problem assets.
  • Efforts to improve the asset quality.
  • Increase in interest-earning assets.
  • Better deposit mix.
  • Continued reduction in cost of funds.

Headwinds

  • Certain restructured loans may not be renewed at maturity.
  • Restructured loans may not significantly impact net interest income in future periods.
  • Loans that were previously in the deferral program were recovering at rates much lower than peers.
  • Uncertainty of the future performance of borrowers.
  • Potential adverse effects of public health events.

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 Q3 2021

Historical avgQ3 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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