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Sep 30, 2021
Carter Bankshares Q3 2021 Earnings Report
Announced third quarter 2021 financial results, with net income of $11.2 million and diluted earnings per share of $0.42.
Key Takeaways
Carter Bankshares, Inc. reported a net income of $11.2 million, or $0.42 diluted earnings per share, for Q3 2021, a significant improvement compared to the net loss of $57.7 million, or $2.19 per share, for Q3 2020. The results reflect improvements in asset quality, net interest income, and a better deposit mix.
Nonperforming loans decreased by $0.7 million, or 7.3%, to $8.9 million at September 30, 2021, compared to June 30, 2021.
Net interest income increased by $2.2 million, or 8.1%, to $29.4 million compared to the second quarter of 2021.
Net interest margin increased 17 basis points to 2.96% compared to the second quarter of 2021.
Total deposits increased $7.1 million to $3.7 billion at September 30, 2021 compared to June 30, 2021.
Forward Guidance
The company focuses on improving revenue and earnings growth to enhance financial performance.
Positive Outlook
- Continued decline in problem assets.
- Efforts to improve the asset quality.
- Increase in interest-earning assets.
- Better deposit mix.
- Continued reduction in cost of funds.
Challenges Ahead
- Certain restructured loans may not be renewed at maturity.
- Restructured loans may not significantly impact net interest income in future periods.
- Loans that were previously in the deferral program were recovering at rates much lower than peers.
- Uncertainty of the future performance of borrowers.
- Potential adverse effects of public health events.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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