NASDAQ$CARE

Carter Bankshares Inc · Q4 2022 earnings

Q4 2022 earnings · · Investor relations

Briefing

Announced record fourth quarter and full year financial results.

Carter Bankshares, Inc. reported a record net income of $15.6 million, or $0.65 diluted earnings per share, for the fourth quarter of 2022. The company saw positive trends in net interest income expansion, loan growth and asset quality. Loans grew by an annualized rate of 15.4% since September 30, 2022, with production primarily in commercial real estate and residential mortgage loan portfolios.

  • Solid annualized quarterly performance metrics with ROA of 1.49% and ROE of 19.32%.
  • Net interest income increased $3.8 million, or 10.1%, to $41.5 million compared to the third quarter of 2022.
  • Net interest margin increased 32 basis points to 4.07% compared to the third quarter of 2022.
  • Total portfolio loans increased $117.6 million, or 15.4%, on an annualized basis, to $3.1 billion at December 31, 2022 compared to September 30, 2022.

Headline financials

Total Revenue

$47.1M

Previous: $33.8M+39.1%
EPS (adj)

$0.62

Previous: $0.21+195.2%
Net Interest Margin

4.1%

Previous: 2.8%+44.3%
Efficiency Ratio

59.5%

No prior period
Capital Expenditures

$1.7M

Previous: $2.2M-22.9%
Free Cash Flow

$21.4M

Previous: $15.3M+39.7%
Net Income

$15.6M

Previous: $5.61M+178.2%
Operating Income

$19.1M

Previous: $6.98M+173.5%
Gross Profit

$73K

Previous: $32.9M-99.8%
Cash & Equivalents

$46.9M

Previous: $278M-83.1%
Total Assets

$4.2B

Previous: $4.13B+1.7%
Stock-Based Comp

$304K

Previous: $268K+13.4%

Revenue & EPS history

Carter Bankshares · Revenue · Quarterly

$47.1M

Q4 2022+39.1%vs Q4 2021
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

The company expects the positive momentum in operating leverage and financial performance to continue at least in the near term. The company is well capitalized with strong liquidity levels, improved asset quality and strong reserve levels.

Tailwinds

  • Positive trends in net interest income expansion.
  • Loan growth.
  • Asset quality.
  • Well capitalized.
  • Strong liquidity levels.

Headwinds

  • Pressure on higher funding costs.
  • Potential challenges should a recessionary environment develop in the coming year.
  • Uncertainty in market conditions.
  • Potential volatility in operating results due to application of the CECL methodology.
  • Cyber-security threats, attacks or 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 Q4 2022

Historical avgQ4 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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