Loading...
•
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.
Carter Bankshares
Carter Bankshares
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.