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Sep 30, 2022
Carter Bankshares Q3 2022 Earnings Report
Announced record third quarter financial results.
Key Takeaways
Carter Bankshares, Inc. reported a record net income of $14.4 million, or $0.59 diluted earnings per share, for the third quarter of 2022. The company saw positive trends in net interest income expansion, loan growth, asset quality and expense control.
Annualized quarterly performance metrics were strong with return on average assets of 1.38% and return on average equity of 16.75%.
Net interest income increased $5.3 million, or 16.2%, to $37.7 million compared to the second quarter of 2022.
Total portfolio loans increased $33.5 million, or 4.4%, on an annualized basis, to $3.0 billion at September 30, 2022 compared to June 30, 2022.
Nonperforming loans decreased $5.0 million, or 41.7%, to $7.0 million at September 30, 2022 compared to June 30, 2022.
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
Company is well positioned to further benefit from the rising rate environment, with operating leverage and financial performance expected to improve. Company is well capitalized, has strong liquidity, has improved asset quality and strong reserve levels.
Positive Outlook
- Positive trends in net interest income expansion.
- Loan pipelines also remain healthy and at record levels for the near term.
- Asset sensitivity of balance sheet well positioned to further benefit from the rising rate environment.
- Increase in asset yields should more than offset rising deposit rates at least in the short-term.
- Strong liquidity.
Challenges Ahead
- Mounting pressure on higher funding costs.
- Potential challenges should a recessionary environment develop over the next year.
- Loan growth muted by a high level of payoffs in the third quarter.
- Certain loans may not be renewed at maturity.
- There will undoubtedly be mounting pressure on higher funding costs