NASDAQ$CARE

Carter Bankshares Inc · Q4 2024 earnings

Q4 2024 earnings · · Before market open · Investor relations

Briefing

Announced fourth quarter and full year 2024 financial results.

Carter Bankshares, Inc. reported a strong fourth quarter with a net income of $8.3 million, or $0.36 diluted earnings per share. The company launched a brand refresh, celebrated its 50th anniversary, and announced the acquisition of two branches in Winston-Salem and Mooresville, North Carolina.

  • Nonperforming loans declined by $28.4 million to $259.3 million compared to September 30, 2024.
  • Total portfolio loans increased $29.0 million, or 3.2% on an annualized basis, to $3.6 billion at December 31, 2024 from September 30, 2024.
  • Total deposits increased $68.4 million, or 6.7% on an annualized basis, compared to September 30, 2024.
  • Net interest income totaled $29.1 million, an increase of $0.4 million, or 1.2% compared to the prior quarter, and an increase of $1.7 million, or 6.3% compared to the year ago quarter.

Headline financials

Total Revenue

$34.5M

Previous: $30.7M+12.6%
EPS (adj)

$0.37

Previous: -$0.02+1950.0%
Capital Expenditures

-$3.14M

Previous: $1.82M-272.5%
Free Cash Flow

$7.88M

No prior period
Net Income

$8.28M

Previous: -$1.89M+538.6%
Operating Income

$10.7M

Previous: -$1.89M+665.5%

Revenue & EPS history

Carter Bankshares · Revenue · Quarterly

$34.5M

Q4 2024+12.6%vs Q4 2023
Beat estimate in 7 of 15 quarters(47%)
ActualEstimate

Forward guidance

Carter Bankshares is committed to resolving its large nonperforming credit relationship and believes it is well-positioned for a strong 2025.

Tailwinds

  • Capital and liquidity levels continue to be strong.
  • Loan production was solid in the fourth quarter.
  • Loan production pipeline remains strong.
  • 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 further declines in interest rates should continue to positively benefit our net interest margin.

Headwinds

  • Large nonperforming credit relationship continues to have a negative impact on our financial and credit metrics.
  • Financial results continue to be significantly impacted by loans in the Bank's Other segment of the Company’s loan portfolio.
  • Interest income was negatively impacted by $7.9 million due to these credits being on nonaccrual status.
  • Efficiency ratio was impacted primarily by the Bank’s largest lending relationship that was placed in nonaccrual status during the second quarter of 2023.
  • 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 Q4 2024

Historical avgQ4 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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