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Mar 31, 2021
Carter Bankshares Q1 2021 Earnings Report
Announced first quarter 2021 financial results, demonstrating increased net income and strategic progress.
Key Takeaways
Carter Bankshares reported a strong first quarter in 2021, with net income significantly increasing to $9.4 million, or $0.36 diluted earnings per share, compared to both the previous and prior year's quarters. The company saw improvements in net interest income and made strides in its branch optimization initiative.
Net income increased to $9.4 million, or $0.36 diluted earnings per share.
Net interest income rose by $0.4 million, or 1.4%, compared to the previous quarter.
Total deposits increased by $6.9 million to $3.7 billion.
The company adopted CECL, resulting in a $64.5 million adjustment to the allowance for credit losses.
Carter Bankshares
Carter Bankshares
Forward Guidance
Carter Bankshares is focused on growth in select and emerging markets, continuing to build out its lending groups, and further reducing troubled assets to improve the risk profile of the loan portfolio.
Positive Outlook
- Strong capital base
- Ample liquidity and reserves
- State-of-the-art technology
- Ability to offer competitive products and services through traditional and digital channels
- Significant progress with deposit mix and cost of funds, driving net interest margin higher
Challenges Ahead
- Lingering challenges of COVID-19
- Continued deterioration on a loan in deferral with an aggregate principal balance of $8.1 million
- Potential deterioration in credit quality with respect to loans on deferral
- Dependence on assumptions in the CECL financial model
- Uncertainties related to economic conditions and market factors