NASDAQ$CARE

Carter Bankshares Inc · Q3 2022 earnings

Q3 2022 earnings · · Investor relations

Briefing

Announced record third quarter financial results.

Carter Bankshares, Inc. reported a record net income of $14.4 million, or $0.59 diluted earnings per share, for the third quarter of 2022. The company saw positive trends in net interest income expansion, loan growth, asset quality and expense control.

  • Annualized quarterly performance metrics were strong with return on average assets of 1.38% and return on average equity of 16.75%.
  • Net interest income increased $5.3 million, or 16.2%, to $37.7 million compared to the second quarter of 2022.
  • Total portfolio loans increased $33.5 million, or 4.4%, on an annualized basis, to $3.0 billion at September 30, 2022 compared to June 30, 2022.
  • Nonperforming loans decreased $5.0 million, or 41.7%, to $7.0 million at September 30, 2022 compared to June 30, 2022.

Headline financials

Total Revenue

$43M

Previous: $36.3M+18.3%
EPS (adj)

$0.55

Previous: $0.42+31.0%
Net Interest Margin

3.8%

Previous: 3.0%+26.7%
Efficiency Ratio

57.1%

No prior period
Capital Expenditures

-$4.19M

Previous: -$6.28M+33.3%
Free Cash Flow

$10.2M

Previous: $4.89M+108.9%
Net Income

$14.4M

Previous: $11.2M+29.0%
Operating Income

$28M

Previous: $19.2M+46.1%
Gross Profit

$40.4M

Previous: $34.9M+15.9%
Cash & Equivalents

$65.7M

Previous: $226M-70.9%
Total Assets

$4.11B

Previous: $4.13B-0.5%
Stock-Based Comp

$306K

Previous: $273K+12.1%

Revenue & EPS history

Carter Bankshares · Revenue · Quarterly

$43M

Q3 2022+18.3%vs Q3 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Company is well positioned to further benefit from the rising rate environment, with operating leverage and financial performance expected to improve. Company is well capitalized, has strong liquidity, has improved asset quality and strong reserve levels.

Tailwinds

  • Positive trends in net interest income expansion.
  • Loan pipelines also remain healthy and at record levels for the near term.
  • Asset sensitivity of balance sheet well positioned to further benefit from the rising rate environment.
  • Increase in asset yields should more than offset rising deposit rates at least in the short-term.
  • Strong liquidity.

Headwinds

  • Mounting pressure on higher funding costs.
  • Potential challenges should a recessionary environment develop over the next year.
  • Loan growth muted by a high level of payoffs in the third quarter.
  • Certain loans may not be renewed at maturity.
  • There will undoubtedly be mounting pressure on higher funding costs

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 2022

Historical avgQ3 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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