NASDAQ$CARE

Carter Bankshares Inc · Q3 2023 earnings

Q3 2023 earnings · · Investor relations

Briefing

Announced third quarter 2023 financial results.

Carter Bankshares reported a net income of $3.6 million, or $0.16 diluted earnings per share, for the third quarter of 2023, which was impacted by placing loans with an aggregate principal value of $301.9 million on nonaccrual status.

  • Net income was $3.6 million, or $0.16 diluted EPS.
  • Net interest income increased $0.7 million, or 2.6%, to $27.4 million compared to the second quarter of 2023.
  • Total portfolio loans increased $80.5 million, or 9.6%, on an annualized basis, to $3.4 billion.
  • Nonperforming loans to total portfolio loans were 9.04%.

Headline financials

Total Revenue

$32.7M

Previous: $43M-24.0%
EPS (adj)

$0.20

Previous: $0.55-63.6%
Efficiency Ratio

83.5%

Previous: 57.1%+46.2%
Capital Expenditures

-$7.98M

Previous: -$4.19M-90.4%
Free Cash Flow

-$4.35M

Previous: $10.2M-142.6%
Net Income

$3.63M

Previous: $14.4M-74.8%
Operating Income

$409K

Previous: $28M-98.5%
Gross Profit

$29.7M

Previous: $40.4M-26.4%
Cash & Equivalents

$55.4M

Previous: $65.7M-15.7%
Total Assets

$4.45B

Previous: $4.11B+8.2%
Stock-Based Comp

$395K

Previous: $306K+29.1%

Revenue & EPS history

Carter Bankshares · Revenue · Quarterly

$32.7M

Q3 2023-24%vs Q3 2022
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

The company expects continued pressure on funding costs and anticipates the net interest margin will return to a more normalized level once the large nonperforming loans are resolved. Modest loan growth is expected in the near term.

Tailwinds

  • Capital levels continue to be strong.
  • Liquidity position is strong.
  • Bond portfolio is well positioned to outperform peers in a higher interest rate environment.
  • Experienced another strong quarter with annualized loan growth of 9.6%.
  • Asset quality remains strong across all credit metrics other than the large NPL relationship.

Headwinds

  • Largest lending relationship remains in nonaccrual status and continues to have a negative impact on financial results.
  • Seeing continued pressure on funding costs.
  • This trend will continue to impact margin in the coming quarters.
  • Lending pipelines are slowing somewhat.
  • Expect this shift to continue to impact the fourth quarter of 2023 given the high interest rate environment.

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 2023

Historical avgQ3 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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