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Dec 31, 2022
Carter Bankshares Q4 2022 Earnings Report
Announced record fourth quarter and full year financial results.
Key Takeaways
Carter Bankshares, Inc. reported a record net income of $15.6 million, or $0.65 diluted earnings per share, for the fourth quarter of 2022. The company saw positive trends in net interest income expansion, loan growth and asset quality. Loans grew by an annualized rate of 15.4% since September 30, 2022, with production primarily in commercial real estate and residential mortgage loan portfolios.
Solid annualized quarterly performance metrics with ROA of 1.49% and ROE of 19.32%.
Net interest income increased $3.8 million, or 10.1%, to $41.5 million compared to the third quarter of 2022.
Net interest margin increased 32 basis points to 4.07% compared to the third quarter of 2022.
Total portfolio loans increased $117.6 million, or 15.4%, on an annualized basis, to $3.1 billion at December 31, 2022 compared to September 30, 2022.
Forward Guidance
The company expects the positive momentum in operating leverage and financial performance to continue at least in the near term. The company is well capitalized with strong liquidity levels, improved asset quality and strong reserve levels.
Positive Outlook
- Positive trends in net interest income expansion.
- Loan growth.
- Asset quality.
- Well capitalized.
- Strong liquidity levels.
Challenges Ahead
- Pressure on higher funding costs.
- Potential challenges should a recessionary environment develop in the coming year.
- Uncertainty in market conditions.
- Potential volatility in operating results due to application of the CECL methodology.
- Cyber-security threats, attacks or events.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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