NASDAQ$CARE

Carter Bankshares Inc · Q3 2024 earnings

Q3 2024 earnings · · Investor relations

Briefing

Announced third quarter results with net income of $5.6 million and EPS of $0.24.

Carter Bankshares, Inc. reported a net income of $5.6 million, or $0.24 diluted earnings per share, for the third quarter of 2024. The company saw increases in total portfolio loans and total deposits. The lawsuit filed by GLAS Trust Company, LLC was voluntarily dismissed with prejudice during the third quarter of 2024.

  • Nonperforming loans decreased by $12.5 million to $287.7 million compared to the prior quarter.
  • Total portfolio loans increased $46.3 million, or 5.2% on an annualized basis, to $3.6 billion.
  • Total deposits increased $203.8 million, or 20.9% on an annualized basis.
  • Net interest income totaled $28.8 million, an increase of $0.7 million, or 2.5% compared to the prior quarter.

Headline financials

Total Revenue

$34.2M

Previous: $32.7M+4.8%
EPS

$0.24

Previous: $0.20+20.0%
Efficiency Ratio

80.2%

Previous: 83.5%-4.0%
Tier 1 Capital Ratio

10.8%

No prior period
Leverage Ratio

9.5%

No prior period
Total Risk-Based Capital Ratio

12.1%

No prior period
Capital Expenditures

-$5M

Previous: -$7.98M+37.4%
Free Cash Flow

$633K

Previous: -$4.35M+114.5%
Net Income

$5.63M

Previous: $3.63M+55.2%
Operating Income

-$1.85M

Previous: $409K-552.6%
Gross Profit

$34.2M

Previous: $29.7M+15.0%
Stock-Based Comp

$458K

Previous: $395K+15.9%

Revenue & EPS history

Carter Bankshares · Revenue · Quarterly

$34.2M

Q3 2024+4.8%vs Q3 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

The company feels positive about the fundamentals and balance sheet structure, with strong capital and liquidity levels. Loan production and pipeline remain solid. Deposit growth is occurring in most categories. Expects a decline in the cost of funds in the fourth quarter from the recent rate cut and that the net interest margin will return to a more normalized level once the large nonperforming lending relationship is fully resolved.

Tailwinds

  • Capital and liquidity levels continue to be strong.
  • Loan production was solid in the third quarter.
  • Loan production pipeline also remains solid, providing good visibility through year end.
  • Deposit growth is occurring in most categories, with the majority of growth coming from increases in interest checking and CD accounts.
  • Balance sheet is slightly liability sensitive and is well positioned so that a declining interest rate environment should positively impact our margin.

Headwinds

  • The large nonperforming lending relationship continues to have a negative impact on our financial and credit metrics.
  • Net interest margin continues to be significantly impacted by the Bank’s largest lending relationship remaining on nonaccrual status since the second quarter of 2023.
  • Funding costs increased 104 basis points, offset by an increase of 43 basis points on the yield on earning assets for the nine months ended September 30, 2024 compared to the same period in 2023.
  • The decline in net interest income and net interest margin were significantly driven by the aforementioned large nonperforming lending relationship, which negatively impacted interest income by $27.2 million for the nine months ended September 30, 2024 as compared to $20.7 million for the same period in 2023.
  • The company cannot give any assurance as to the timing or amount of future payments or collections on such loans or that the Company will ultimately collect all amounts contractually due under the terms of such loans.

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 2024

Historical avgQ3 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

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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