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Jun 30, 2023
Carter Bankshares Q2 2023 Earnings Report
Announced second quarter 2023 financial results.
Key Takeaways
Carter Bankshares, Inc. reported a net income of $5.7 million, or $0.24 diluted earnings per share, for the second quarter of 2023. The results were significantly impacted by placing $301.9 million in loans on nonaccrual status, which negatively affected interest income by $11.3 million.
Net income of $5.7 million, or $0.24 diluted EPS for the quarter.
Annualized quarterly return on average assets (ROA) of 0.52% and annualized quarterly return on average equity (ROE) of 6.38%.
Total portfolio loans increased $81.5 million, or 10.1% on an annualized basis, to $3.3 billion.
Nonperforming loans to total portfolio loans were 9.33%.
Carter Bankshares
Carter Bankshares
Carter Bankshares Revenue by Segment
Revenue by Segment
Commercial Real Estate Revenue
CapyFin.comCommercial and Industrial Revenue
CapyFin.comResidential Mortgages Revenue
CapyFin.comOther Consumer Revenue
CapyFin.comConstruction Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Carter Bankshares anticipates continued pressure on funding costs and expects that trend will continue to affect the margin in the coming quarters. The company believes that loan growth and expense control will help support earnings in the near term. Lending pipelines are beginning to show signs of slowing, but the company is still pursuing high quality deals and adhering to its conservative credit underwriting guidelines.
Positive Outlook
- Balance sheet continues to be asset sensitive, with a large portion of floating rate loans and securities benefiting from higher interest rates.
- Continued positive trends in loan growth.
- Expense control will help support earnings in the near term.
- Pursuing high quality deals.
- Adhering to our conservative credit underwriting guidelines
Challenges Ahead
- Negative impact to our financial results of placing our largest lending relationship into nonaccrual status due to loan maturities and failure to pay in full during the second quarter.
- Seeing mounting pressure on funding costs.
- Expect that trend will continue to affect our margin in the coming quarters.
- Lending pipelines are beginning to show signs of slowing
- Shift from non-maturing deposits to higher yielding certificates of deposits and higher-cost borrowings, which has negatively impacted our net interest margin.