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Sep 30, 2023
Carter Bankshares Q3 2023 Earnings Report
Announced third quarter 2023 financial results.
Key Takeaways
Carter Bankshares reported a net income of $3.6 million, or $0.16 diluted earnings per share, for the third quarter of 2023, which was impacted by placing loans with an aggregate principal value of $301.9 million on nonaccrual status.
Net income was $3.6 million, or $0.16 diluted EPS.
Net interest income increased $0.7 million, or 2.6%, to $27.4 million compared to the second quarter of 2023.
Total portfolio loans increased $80.5 million, or 9.6%, on an annualized basis, to $3.4 billion.
Nonperforming loans to total portfolio loans were 9.04%.
Forward Guidance
The company expects continued pressure on funding costs and anticipates the net interest margin will return to a more normalized level once the large nonperforming loans are resolved. Modest loan growth is expected in the near term.
Positive Outlook
- Capital levels continue to be strong.
- Liquidity position is strong.
- Bond portfolio is well positioned to outperform peers in a higher interest rate environment.
- Experienced another strong quarter with annualized loan growth of 9.6%.
- Asset quality remains strong across all credit metrics other than the large NPL relationship.
Challenges Ahead
- Largest lending relationship remains in nonaccrual status and continues to have a negative impact on financial results.
- Seeing continued pressure on funding costs.
- This trend will continue to impact margin in the coming quarters.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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