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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%.
Carter Bankshares
Carter Bankshares
Carter Bankshares Revenue by Segment
Revenue by Segment
Commercial Real Estate Revenue
CapyFin.comTaxable Loans Revenue
CapyFin.com 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.
- Lending pipelines are slowing somewhat.
- Expect this shift to continue to impact the fourth quarter of 2023 given the high interest rate environment.