Carter Bank & Trust Announces Third Quarter 2020 Financial Results
Carter Bank & Trust (NASDAQ:CARE) reported a net loss of $57.7 million, or $2.19 per share, for Q3 2020, mainly due to a one-time goodwill impairment charge of $62.2 million. Excluding this charge, net income stood at $4.5 million, flat compared to Q2 2020. The bank's net interest income fell by 3.1% to $25.4 million quarter-over-quarter. Total deposits increased by $7.1 million to $3.6 billion. For the nine months ending September 30, 2020, the bank recorded a net loss of $48.8 million but highlighted growth in portfolio loans by 3.9% and overall deposits by 2.6% year-over-year.
- Net income excluding goodwill impairment for Q3 was $4.5 million, consistent with Q2.
- Portfolio loan growth of 3.9% in Q3 compared to the linked quarter.
- Total deposits grew by $7.1 million quarter-over-quarter, totaling $3.6 billion.
- Reported a net loss of $57.7 million for Q3 2020, primarily due to goodwill impairment.
- Net interest income declined by 3.1% sequentially and by 9.4% year-over-year.
- Provision for loan losses increased significantly to $2.9 million in Q3, influenced by COVID-19.
MARTINSVILLE, VA / ACCESSWIRE / October 29, 2020 / Carter Bank & Trust (the "Bank") (NASDAQ:CARE) today announced a net loss of
For the nine months ended September 30, 2020, the Bank realized a net loss of
Third Quarter 2020 Financial Highlights
- Net interest income declined
$0.8 million , or3.1% , to$25.4 million as compared to the linked quarter primarily due to balance sheet repricing driven by the impact of the lower interest rate environment, offset by a 13 basis point decrease in funding costs compared to the second quarter of 2020, and decreased$2.6 million , or9.4% , over the same quarter in 2019; - Net interest margin, on a fully taxable equivalent basis, declined 13 basis points to
2.66% over the linked quarter and decreased 35 basis points over the same quarter last year; - A one-time goodwill impairment charge of
$62.2 million ($2.36 per share) was recorded in the third quarter of 2020. The impairment charge is a non-cash charge that does not affect regulatory capital ratios, liquidity, or our overall financial strength; - Eight retail branch banking offices were closed during the third quarter of 2020 as part of our branch optimization project. Five of these branches were moved to other real estate owned ("OREO") and marketed for sale resulting in a
$1.1 million write-down; - Portfolio loan growth totaled
$28.6 million , or3.9% on an annualized basis, as compared to the linked quarter, and growth of$82.2 million , or2.8% , as compared to September 30, 2019; - Total deposits increased
$7.1 million to$3.6 billion as of September 30, 2020 as compared to the linked quarter and growth of$91.8 , or2.6% , as compared to September 30, 2019. Noninterest-bearing and interest-bearing demand deposits, money market accounts and savings, increased by$70.2 million , or3.9% , as compared to linked quarter and increased$350.5 million , or23.4% , as compared to September 30, 2019; - The provision for loan losses totaled
$2.9 million for the quarter ended September 30, 2020,$5.5 million for the quarter ending June 30, 2020 and$1.4 million for the same quarter of 2019. Included in the third quarter provision for loan losses was an increase in qualitative loss factors as a result of the estimated economic impact of COVID-19 of$3.6 million , or$(0.11) per share, offset by an decrease to our quantitative reserves due to decreases in historic loss rates which were partially offset by an increase in loan volume; - Nonperforming loans declined
$1.6 million , or4.0% as compared to December 31, 2019 and decreased$6.6 million , or14.1% , from September 30, 2019. Nonperforming loans as a percentage of total portfolio loans were1.35% ,1.37% and1.62% as of September 30, 2020, June 30, 2020 and September 30, 2019, respectively.
"Obviously we are disappointed in having to take a goodwill impairment charge in the third quarter. Fortunately this is more of an accounting entry than a reflection of the financial performance of the Bank. While a significant negative impact to earnings, the impairment is a non-cash charge and has no impact on regulatory capital or our liquidity. Regulatory capital levels as well as our liquidity remain strong." stated Litz H. Van Dyke, Chief Executive Officer. "We continue to provide direct financial flexibility to our individual and business customers, to offer our products and services through multiple delivery channels, to show our trademark caring and empathy to every customer, and to provide a safe environment for both employees and customers."
Van Dyke continued, "I again commend our associates for their commitment, performance and professionalism during these difficult times. We continue to open accounts, make loans, and process transactions. We experienced growth in both loans and lower cost deposits in the third quarter. While the economy has shown some signs of improvement in the third quarter, there still remain headwinds and tremendous uncertainty around the continuing impacts from COVID-19. We continue to work on improving the operating fundamentals of the Bank by focusing on resolving legacy credit issues, expense control, margin improvement, and optimizing our branch network. While we expect uncertainty and challenges ahead due to the pandemic, we are confident in our team, technology, products/services, risk management, and strong capital/liquidity position."
Operating Highlights
Net interest income decreased
The provision for loan losses totaled
At September 30, 2020, nonperforming loans were
Noninterest income at September 30, 2020, excluding net securities gains, increased
Total noninterest expense increased
Financial Condition
Total assets were
Federal Reserve Bank excess reserves increased
The securities portfolio increased
Total deposits increased
The allowance for loan losses was
The Bank provides deferrals to customers under Section 4013 of the CARES Act and regulatory interagency statements on loan modifications. The Bank launched a deferral program in March 2020 that ran through August 2020 (Part I). The deferrals in the initial program typically provided deferral of both principal and interest for up to 180 days. The Bank is providing deferrals in another program that launched in August 2020 and runs through December 2020 (Part II). The deferrals in this program is needs based and requires the collection of updated financial information. The majority of the deferrals in the second program will be principal only deferrals. At the end of the deferral period, for term loans, payments will be applied to accrued interest first and will resume principal payments once accrued interest is current. Deferred principal will be due at maturity. For interest only loans, such as lines of credit, deferred interest will be due at maturity. As of October 27, 2020, we have had 116 loans opt for deferrals under Part II of the program which continues through December 31, 2020, with an aggregate principal balance of
A one-time goodwill impairment charge of
The Bank remains well capitalized. The Bank's Tier 1 Capital ratio was
Total capital of
At September 30, 2020, funding sources accessible to the Bank include borrowing availability at the Federal Home Loan Bank ("FHLB"), equal to
About Carter Bank & Trust
Headquartered in Martinsville, VA, Carter Bank & Trust is a state-chartered community bank in Virginia and trades on the Nasdaq Global Select Market under the symbol CARE. The Bank has
Important Note Regarding Non-GAAP Financial Measures
Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables in our definitions and reconciliations of GAAP to non-GAAP financial measures. This press release and the accompanying tables discuss financial measures, such as adjusted noninterest expense, adjusted efficiency ratio, and net interest income on a fully taxable equivalent basis, which are all non-GAAP measures. We believe that such non-GAAP measures are useful because they enhance the ability of investors and management to evaluate and compare the Bank's operating results from period to period in a meaningful manner. Non-GAAP measures should not be considered as an alternative to any measure of performance as promulgated under GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies. Investors should consider the Bank's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Bank. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Bank's results or financial condition as reported under GAAP.
Important Note Regarding Forward-Looking Statements
This information contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements generally relate to our financial condition, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels and asset quality. Forward looking statements are typically identified by words or phrases such as "will likely result," "expect," "anticipate," "estimate," "forecast," "project," "intend," " believe," "assume," "strategy," "trend," "plan," "outlook," "outcome," "continue," "remain," "potential," "opportunity," "believe," "comfortable," "current," "position," "maintain," "sustain," "seek," "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements depending on a variety of uncertainties or other factors including, but not limited to: credit losses; cyber-security concerns; rapid technological developments and changes; the Bank's liquidity and capital positions; the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts or public health events (such as the current COVID-19 pandemic), and of governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Bank's borrowers to satisfy their obligations to the Bank, on the value of collateral securing loans, on the demand for the Bank's loans or its other products and services, on incidents of cyberattack and fraud, on the Bank's liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Bank's business operations and on financial markets and economic growth; sensitivity to the interest rate environment including a prolonged period of low interest rates, a rapid increase in interest rates or a change in the shape of the yield curve; a change in spreads on interest-earning assets and interest-bearing liabilities; regulatory supervision and oversight; legislation affecting the financial services industry as a whole, and Carter Bank & Trust, in particular; the outcome of pending and future litigation and governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating the acquired operations will be more difficult, disruptive or more costly than anticipated; containing costs and expenses; reliance on significant customer relationships; general economic or business conditions; deterioration of the housing market and reduced demand for mortgages; re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses. Many of these factors, as well as other factors, are described in our filings with the FDIC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are made. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update any forward-looking statement to reflect developments occurring after the statement is made.
Carter Bank & Trust
Wendy Bell, 276-656-1776
Senior Executive Vice President & Chief Financial Officer
wendy.bell@CBTCares.com
CARTER BANK & TRUST
CONSOLIDATED SELECTED FINANCIAL DATA
BALANCE SHEETS
(Unaudited)
(Dollars in Thousands, except per share data) | September 30, | December 31, | September 30, | |||||||||
| 2020 | 2019 | 2019 | ||||||||||
ASSETS | ||||||||||||
Cash and Due From Banks | $ | 37,688 | $ | 41,386 | $ | 46,517 | ||||||
Interest-Bearing Deposits in Other Financial Institutions | 6,267 | 45,156 | 44,540 | |||||||||
Federal Reserve Bank Excess Reserves | 107,219 | 39,270 | 35,108 | |||||||||
Total Cash and Cash Equivalents | 151,174 | 125,812 | 126,165 | |||||||||
Securities, Available-for-Sale, at Fair Value | 777,986 | 742,617 | 734,453 | |||||||||
Loans Held-for-Sale | 32,104 | 19,714 | 20,514 | |||||||||
Portfolio Loans | 2,985,921 | 2,884,766 | 2,903,701 | |||||||||
Allowance for Loan Losses | (49,965 | ) | (38,762 | ) | (40,331 | ) | ||||||
Portfolio Loans, net | 2,935,956 | 2,846,004 | 2,863,370 | |||||||||
Bank Premises and Equipment, net | 87,439 | 85,942 | 86,531 | |||||||||
Other Real Estate Owned, net | 16,410 | 18,324 | 23,112 | |||||||||
Goodwill | - | 62,192 | 62,192 | |||||||||
Federal Home Loan Bank Stock, at Cost | 5,093 | 4,113 | 3,688 | |||||||||
Bank Owned Life Insurance | 53,651 | 52,597 | 52,240 | |||||||||
Other Assets | 74,312 | 48,793 | 47,811 | |||||||||
TOTAL ASSETS | $ | 4,134,125 | $ | 4,006,108 | $ | 4,020,076 | ||||||
LIABILITIES | ||||||||||||
Deposits: | ||||||||||||
Noninterest-Bearing Demand | $ | 665,813 | $ | 554,875 | $ | 566,826 | ||||||
Interest-Bearing Demand | 351,066 | 286,561 | 207,334 | |||||||||
Money Market | 211,465 | 140,589 | 157,123 | |||||||||
Savings | 622,806 | 561,814 | 569,392 | |||||||||
Certificates of Deposits | 1,762,645 | 1,960,406 | 2,021,306 | |||||||||
Total Deposits | 3,613,795 | 3,504,245 | 3,521,981 | |||||||||
FHLB Borrowings | 35,000 | 10,000 | - | |||||||||
Other Liabilities | 50,523 | 18,752 | 24,047 | |||||||||
TOTAL LIABILITIES | 3,699,318 | 3,532,997 | 3,546,028 | |||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Common Stock, Par Value | ||||||||||||
26,386,901 outstanding at September 30, 2020, | ||||||||||||
26,334,229 outstanding at December 31, 2019 and 26,333,929 at September 30, 2019 | 26,387 | 26,334 | 26,334 | |||||||||
Additional Paid-in-Capital | 143,244 | 142,492 | 142,380 | |||||||||
Retained Earnings | 251,669 | 304,158 | 300,552 | |||||||||
Accumulated Other Comprehensive Income | 13,507 | 127 | 4,782 | |||||||||
TOTAL SHAREHOLDERS' EQUITY | 434,807 | 473,111 | 474,048 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 4,134,125 | $ | 4,006,108 | $ | 4,020,076 | ||||||
PROFITABILITY RATIOS (ANNUALIZED) | ||||||||||||
Return on Average Assets | (1.59 | )% | 0.65 | % | 0.75 | % | ||||||
Return on Average Shareholders' Equity | (13.59 | )% | 5.76 | % | 6.71 | % | ||||||
Portfolio Loan to Deposit Ratio | 82.63 | % | 82.32 | % | 82.45 | % | ||||||
Allowance to Total Portfolio Loans | 1.67 | % | 1.34 | % | 1.39 | % | ||||||
CAPITALIZATION RATIOS | ||||||||||||
Shareholders' Equity to Assets | 10.52 | % | 11.81 | % | 11.79 | % | ||||||
Tier 1 Leverage Ratio | 10.12 | % | 10.33 | % | 10.18 | % | ||||||
Risk-Based Capital - Tier 1 | 13.08 | % | 13.58 | % | 13.36 | % | ||||||
Risk-Based Capital - Total | 14.33 | % | 14.83 | % | 14.61 | % | ||||||
CARTER BANK & TRUST
CONSOLIDATED SELECTED FINANCIAL DATA
INCOME STATEMENTS
(Unaudited)
(Dollars in Thousands, except per share data) | Quarter-to-Date | Year-to-Date | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Interest Income | $ | 33,986 | $ | 35,617 | $ | 40,154 | $ | 107,439 | $ | 119,361 | ||||||||||
Interest Expense | 8,550 | 9,355 | 12,084 | 28,477 | 35,440 | |||||||||||||||
NET INTEREST INCOME | 25,436 | 26,262 | 28,070 | 78,962 | 83,921 | |||||||||||||||
Provision for Loan Losses | 2,914 | 5,473 | 1,390 | 13,185 | 4,386 | |||||||||||||||
NET INTEREST INCOME AFTER | 22,522 | 20,789 | 26,680 | 65,777 | 79,535 | |||||||||||||||
PROVISION FOR LOAN LOSSES | ||||||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Gains on Sales of Securities, net | 2,388 | 2,321 | 659 | 5,923 | 1,599 | |||||||||||||||
Service Charges, Commissions and Fees | 1,205 | 190 | 1,111 | 3,045 | 3,229 | |||||||||||||||
Debit Card Interchange Fees | 1,559 | 1,468 | 1,340 | 4,270 | 3,834 | |||||||||||||||
Insurance | 482 | 332 | 454 | 2,123 | 1,097 | |||||||||||||||
Bank Owned Life Insurance Income | 351 | 350 | 362 | 1,054 | 1,079 | |||||||||||||||
Gains on Sales of Other Real Estate Owned, net | - | 137 | - | - | - | |||||||||||||||
Other Real Estate Owned Income | 58 | 82 | 96 | 279 | 617 | |||||||||||||||
Commercial Loan Swap Fee Income | 1,572 | 1,125 | - | 3,120 | - | |||||||||||||||
Other | 360 | 196 | 134 | 1,177 | 906 | |||||||||||||||
TOTAL NONINTEREST INCOME | 7,975 | 6,201 | 4,156 | 20,991 | 12,361 | |||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||
Salaries and Employee Benefits | 13,036 | 12,489 | 12,952 | 39,106 | 37,796 | |||||||||||||||
Occupancy Expense, net | 3,413 | 3,415 | 3,040 | 10,077 | 8,703 | |||||||||||||||
FDIC Insurance Expense | 547 | 537 | (426 | ) | 1,628 | 721 | ||||||||||||||
Other Taxes | 809 | 788 | 747 | 2,343 | 2,101 | |||||||||||||||
Advertising Expense | 404 | 400 | 205 | 1,410 | 702 | |||||||||||||||
Telephone Expense | 578 | 573 | 557 | 1,725 | 1,624 | |||||||||||||||
Professional and Legal Fees | 1,474 | 1,399 | 1,318 | 3,310 | 2,947 | |||||||||||||||
Data Processing | 836 | 595 | 556 | 1,917 | 1,775 | |||||||||||||||
Losses on Sales and Write-downs of Other Real Estate Owned, net | 1,305 | - | 293 | 1,357 | 569 | |||||||||||||||
Losses on Sales and Write-downs of Bank Premises, net | 17 | 59 | 31 | 88 | 23 | |||||||||||||||
Debit Card Expense | 764 | 671 | 620 | 1,989 | 2,160 | |||||||||||||||
Tax Credit Amortization | 272 | 272 | 563 | 816 | 1,689 | |||||||||||||||
Unfunded Loan Commitment Expense | (348 | ) | (383 | ) | 158 | 251 | 376 | |||||||||||||
Other Real Estate Owned Expense | 94 | 177 | 167 | 411 | 233 | |||||||||||||||
Goodwill Impairment Expense | 62,192 | - | - | 62,192 | - | |||||||||||||||
Other | 1,907 | 2,031 | 1,996 | 6,314 | 6,124 | |||||||||||||||
TOTAL NONINTEREST EXPENSE | 87,300 | 23,023 | 22,777 | 134,934 | 67,543 | |||||||||||||||
(LOSS) INCOME BEFORE INCOME TAXES | (56,803) | 3,967 | 8,059 | (48,166) | 24,353 | |||||||||||||||
Income Tax Provision (Benefit) | 875 | (488 | ) | 458 | 634 | 1,384 | ||||||||||||||
NET (LOSS) INCOME | $ | (57,678) | $ | 4,455 | $ | 7,601 | $ | (48,800) | $ | 22,969 | ||||||||||
Shares Outstanding, at End of Period | 26,386,901 | 26,384,801 | 26,333,929 | 26,386,901 | 26,333,929 | |||||||||||||||
Average Shares Outstanding-Basic | 26,385,189 | 26,384,957 | 26,333,929 | 26,377,626 | 26,320,472 | |||||||||||||||
Average Shares Outstanding-Diluted | 26,385,189 | 26,384,957 | 26,352,910 | 26,377,626 | 26,331,268 | |||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Basic (Loss) Earnings Per Common Share | $ | (2.19 | ) | $ | 0.17 | $ | 0.29 | $ | (1.85 | ) | $ | 0.87 | ||||||||
Diluted (Loss) Earnings Per Common Share | $ | (2.19 | ) | $ | 0.17 | $ | 0.29 | $ | (1.85 | ) | $ | 0.87 | ||||||||
Book Value | $ | 16.48 | $ | 18.54 | $ | 18.00 | $ | 16.48 | $ | 18.00 | ||||||||||
Tangible Book Value2 | $ | 16.48 | $ | 16.18 | $ | 15.64 | $ | 16.48 | $ | 15.64 | ||||||||||
Market Value | $ | 6.65 | $ | 8.07 | $ | 18.89 | $ | 6.65 | $ | 18.89 | ||||||||||
PROFITABILITY RATIOS (non-GAAP) | ||||||||||||||||||||
Net Interest Margin (FTE)3 | 2.66 | % | 2.79 | % | 3.01 | % | 2.80 | % | 3.04 | % | ||||||||||
Core Efficiency Ratio4 | 75.27 | % | 75.00 | % | 71.63 | % | 74.74 | % | 70.08 | % | ||||||||||
CARTER BANK & TRUST
CONSOLIDATED SELECTED FINANCIAL DATA
NET INTEREST MARGIN (FTE) (QTD AVERAGES)
(Unaudited)
(Dollars in Thousands) | September 30, 2020 | June 30, 2020 | September 30, 2019 | |||||||||||||||||||||||||||||||||
ASSETS | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate | |||||||||||||||||||||||||||
Interest-Bearing Deposits with Banks | $ | 124,886 | $ | 32 | $ | 106,710 | $ | 26 | $ | 99,827 | $ | 557 | ||||||||||||||||||||||||
Tax-Free Investment Securities | 54,541 | 455 | 49,633 | 416 | 33,452 | 332 | ||||||||||||||||||||||||||||||
Taxable Investment Securities | 693,330 | 3,150 | 685,468 | 3,594 | 751,665 | 4,697 | ||||||||||||||||||||||||||||||
Tax-Free Loans | 302,351 | 2,397 | 322,739 | 2,563 | 373,167 | 2,923 | ||||||||||||||||||||||||||||||
Taxable Loans | 2,694,747 | 28,511 | 2,651,873 | 29,577 | 2,526,509 | 32,270 | ||||||||||||||||||||||||||||||
Federal Home Loan Bank Stock | 5,093 | 39 | 5,093 | 67 | 3,688 | 58 | ||||||||||||||||||||||||||||||
Total Interest-Earning Assets | $ | 3,874,948 | $ | 34,584 | $ | 3,821,516 | $ | 36,243 | $ | 3,788,308 | $ | 40,837 | ||||||||||||||||||||||||
LIABILITIES | ||||||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||||||
Interest-Bearing Demand | $ | 330,402 | $ | 239 | $ | 297,815 | $ | 242 | $ | 222,062 | $ | 404 | ||||||||||||||||||||||||
Money Market | 200,303 | 210 | 183,542 | 211 | 156,509 | 552 | ||||||||||||||||||||||||||||||
Savings | 616,414 | 168 | 592,193 | 157 | 572,716 | 256 | ||||||||||||||||||||||||||||||
Certificates of Deposit | 1,801,535 | 7,815 | 1,845,294 | 8,627 | 2,048,043 | 10,853 | ||||||||||||||||||||||||||||||
Total Interest-Bearing Deposits | $ | 2,948,654 | $ | 8,432 | $ | 2,918,844 | $ | 9,237 | $ | 2,999,330 | $ | 12,065 | ||||||||||||||||||||||||
Borrowings: | ||||||||||||||||||||||||||||||||||||
FHLB Borrowings | 35,000 | 101 | 35,000 | 100 | - | - | - | |||||||||||||||||||||||||||||
Other Borrowings | 1,183 | 17 | 1,245 | 18 | 1,226 | 19 | ||||||||||||||||||||||||||||||
Total Borrowings | 36,183 | 118 | 36,245 | 118 | 1,226 | 19 | ||||||||||||||||||||||||||||||
Total Interest-Bearing Liabilities | $ | 2,984,837 | $ | 8,550 | $ | 2,955,089 | $ | 9,355 | $ | 3,000,556 | $ | 12,084 | ||||||||||||||||||||||||
Net Interest Income | $ | 26,034 | $ | 26,888 | $ | 28,753 | ||||||||||||||||||||||||||||||
Net Interest Margin | ||||||||||||||||||||||||||||||||||||
CARTER BANK & TRUST
CONSOLIDATED SELECTED FINANCIAL DATA
NET INTEREST MARGIN (FTE) (YTD AVERAGES)
(Unaudited)
(Dollars in Thousands) | September 30, 2020 | September 30, 2019 | ||||||||||||||||||||||
ASSETS | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate | ||||||||||||||||||
Interest-Bearing Deposits with Banks | $ | 98,283 | $ | 268 | $ | 132,855 | $ | 2,341 | ||||||||||||||||
Tax-Free Investment Securities | 41,922 | 1,076 | 78,235 | 2,145 | ||||||||||||||||||||
Taxable Investment Securities | 696,954 | 11,246 | 730,519 | 13,102 | ||||||||||||||||||||
Tax-Free Loans | 320,914 | 7,620 | 386,993 | 9,324 | ||||||||||||||||||||
Taxable Loans | 2,644,031 | 88,885 | 2,465,823 | 94,773 | ||||||||||||||||||||
Federal Home Loan Bank Stock | 4,869 | 170 | 1,770 | 84 | ||||||||||||||||||||
Total Interest-Earning Assets | $ | 3,806,973 | $ | 109,265 | $ | 3,796,195 | $ | 121,769 | 4.29% | |||||||||||||||
LIABILITIES | ||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||
Interest-Bearing Demand | $ | 308,617 | $ | 926 | $ | 250,163 | $ | 1,639 | ||||||||||||||||
Money Market | 179,546 | 692 | 128,035 | 1,312 | ||||||||||||||||||||
Savings | 590,534 | 470 | 588,529 | 1,240 | ||||||||||||||||||||
Certificates of Deposit | 1,855,027 | 26,076 | 2,074,015 | 31,190 | ||||||||||||||||||||
Total Interest-Bearing Deposits | $ | 2,933,724 | $ | 28,164 | $ | 3,040,742 | $ | 35,381 | 1.56% | |||||||||||||||
Borrowings: | ||||||||||||||||||||||||
FED Funds Purchased | 73 | 1 | - | - | - | |||||||||||||||||||
FHLB Borrowings | 29,161 | 260 | - | - | - | |||||||||||||||||||
Other Borrowings | 1,303 | 52 | 872 | 59 | ||||||||||||||||||||
Total Borrowings | 30,537 | 313 | 872 | 59 | 9.05% | |||||||||||||||||||
Total Interest-Bearing Liabilities | $ | 2,964,261 | $ | 28,477 | $ | 3,041,614 | $ | 35,440 | 1.56% | |||||||||||||||
Net Interest Income | $ | 80,788 | $ | 86,329 | ||||||||||||||||||||
Net Interest Margin | 3.04% | |||||||||||||||||||||||
CARTER BANK & TRUST
CONSOLIDATED SELECTED FINANCIAL DATA
LOANS AND LOANS HELD-FOR-SALE
(Unaudited)
| September 30, | December 31, | September 30, | ||||||||||
(Dollars in Thousands) | 2020 | 2019 | 2019 | |||||||||
Commercial | ||||||||||||
Commercial Real Estate | $ | 1,417,164 | $ | 1,365,310 | $ | 1,396,935 | ||||||
Commercial and Industrial | 300,951 | 256,798 | 255,376 | |||||||||
Obligations of State and Political Subdivisions | 310,610 | 364,869 | 394,781 | |||||||||
Commercial Construction | 386,343 | 292,827 | 255,697 | |||||||||
Total Commercial Loans | 2,415,068 | 2,279,804 | 2,302,789 | |||||||||
Consumer | ||||||||||||
Residential Mortgages | 490,343 | 514,538 | 504,344 | |||||||||
Other Consumer | 66,177 | 73,688 | 72,917 | |||||||||
Consumer Construction | 14,333 | 16,736 | 23,651 | |||||||||
Total Consumer Loans | 570,853 | 604,962 | 600,912 | |||||||||
Total Portfolio Loans | 2,985,921 | 2,884,766 | 2,903,701 | |||||||||
Loans Held-for-Sale | 32,104 | 19,714 | 20,514 | |||||||||
Total Loans | $ | 3,018,025 | $ | 2,904,480 | $ | 2,924,215 | ||||||
CARTER BANK & TRUST
CONSOLIDATED SELECTED FINANCIAL DATA
ASSET QUALITY DATA
(Unaudited)
(Dollars in Thousands) | September 30, | December 31, | September 30, | |||||||||
Nonperforming Loans | 2020 | 2019 | 2019 | |||||||||
Commercial Real Estate | $ | 235 | $ | 1,017 | $ | 1,393 | ||||||
Commercial and Industrial | 159 | 77 | 108 | |||||||||
Obligations of State and Political Subdivisions | - | - | 498 | |||||||||
Commercial Construction | 3,748 | 3,210 | 4,074 | |||||||||
Residential Mortgages | 3,310 | 2,857 | 2,292 | |||||||||
Other Consumer | 152 | 267 | 363 | |||||||||
Consumer Construction | - | - | - | |||||||||
Total Nonperforming Loans | 7,604 | 7,428 | 8,728 | |||||||||
Nonperforming Troubled Debt Restructurings | ||||||||||||
Commercial Real Estate | 28,599 | 30,073 | 34,085 | |||||||||
Commercial and Industrial | - | 390 | - | |||||||||
Obligations of State and Political Subdivisions | - | - | - | |||||||||
Commercial Construction | 4,249 | 4,242 | 4,292 | |||||||||
Residential Mortgages | - | - | - | |||||||||
Other Consumer | - | - | - | |||||||||
Consumer Construction | - | - | - | |||||||||
Total Nonperforming Troubled Debt Restructurings | 32,848 | 34,705 | 38,377 | |||||||||
Total Nonperforming Loans and Troubled Debt Restructurings | 40,452 | 42,133 | 47,105 | |||||||||
Other Real Estate Owned | 16,410 | 18,324 | 23,112 | |||||||||
Total Nonperforming Assets | $ | 56,862 | $ | 60,457 | $ | 70,217 | ||||||
| September 30, | December 31, | September 30, | ||||||||||
| 2020 | 2019 | 2019 | ||||||||||
Nonperforming Loans | $ | 40,452 | $ | 42,133 | $ | 47,105 | ||||||
Other Real Estate Owned | 16,410 | 18,324 | 23,112 | |||||||||
Total Nonperforming Assets | 56,862 | 60,457 | 70,217 | |||||||||
Troubled Debt Restructurings (Nonaccruing) | 32,848 | 34,705 | 38,377 | |||||||||
Troubled Debt Restructurings (Accruing) | 110,320 | 109,265 | 113,725 | |||||||||
Total Troubled Debt Restructurings | $ | 143,168 | $ | 143,970 | $ | 152,102 | ||||||
Nonperforming Loans to Total Portfolio Loans | ||||||||||||
Nonperforming Assets to Total Portfolio Loans plus Other Real Estate Owned | ||||||||||||
Allowance for Loan Losses to Total Portfolio Loans | ||||||||||||
Allowance for Loan Losses to Nonperforming Loans | ||||||||||||
Net Loan Charge-offs (Recoveries) | $ | 1,982 | $ | 3,841 | $ | 3,254 | ||||||
Net Loan Charge-offs (Recoveries) (Annualized) to Average Loans | ||||||||||||
CARTER BANK & TRUST
CONSOLIDATED SELECTED FINANCIAL DATA
ALLOWANCE FOR LOAN LOSSES
(Unaudited)
| Quarter-to-Date | Year-to-Date | |||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
(Dollars in Thousands) | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Balance Beginning of Year | $ | 47,405 | $ | 42,942 | $ | 40,008 | $ | 38,762 | $ | 39,199 | ||||||||||
Provision for Loan Losses | 2,914 | 5,473 | 1,390 | 13,185 | 4,386 | |||||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial Real Estate | - | 40 | - | 40 | 69 | |||||||||||||||
Commercial and Industrial | - | 8 | 1 | 46 | 3 | |||||||||||||||
Obligations of State and Political Subdivisions | - | - | - | - | - | |||||||||||||||
Commercial Construction | - | - | - | - | 393 | |||||||||||||||
Residential Mortgages | - | 15 | 174 | 20 | 197 | |||||||||||||||
Other Consumer | 680 | 1,094 | 1,080 | 3,301 | 3,039 | |||||||||||||||
Consumer Construction | - | - | - | - | - | |||||||||||||||
Total Charge-offs | 680 | 1,157 | 1,255 | 3,407 | 3,701 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial Real Estate | - | - | - | 707 | - | |||||||||||||||
Commercial and Industrial | 119 | 1 | - | 121 | - | |||||||||||||||
Obligations of State and Political Subdivisions | - | - | - | - | - | |||||||||||||||
Commercial Construction | - | - | - | - | - | |||||||||||||||
Residential Mortgages | 1 | - | - | 1 | - | |||||||||||||||
Other Consumer | 206 | 146 | 188 | 596 | 447 | |||||||||||||||
Consumer Construction | - | - | - | - | - | |||||||||||||||
Total Recoveries | 326 | 147 | 188 | 1,425 | 447 | |||||||||||||||
Total Net Charge-offs | 354 | 1,010 | 1,067 | 1,982 | 3,254 | |||||||||||||||
Balance End of Year | $ | 49,965 | $ | 47,405 | $ | 40,331 | $ | 49,965 | $ | 40,331 | ||||||||||
CARTER BANK & TRUST
CONSOLIDATED SELECTED FINANCIAL DATA
(Unaudited)
(Dollars in Thousands, except per share data)
DEFINITIONS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES:
1Pre-tax pre-provision earnings are computed as net interest income plus noninterest income minus noninterest expense before the provision for loan losses and income tax provision.
2Tangible Equity | Quarter-to-Date | Year-to-Date | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Total Shareholders' Equity | $ | 434,807 | $ | 489,059 | $ | 474,048 | $ | 434,807 | $ | 474,048 | ||||||||||
Less: Goodwill | - | 62,192 | 62,192 | - | 62,192 | |||||||||||||||
Tangible Equity | $ | 434,807 | $ | 426,867 | $ | 411,856 | $ | 434,807 | $ | 411,856 | ||||||||||
Shares Outstanding at End of Period | 26,386,901 | 26,384,801 | 26,333,929 | 26,386,901 | 26,333,929 | |||||||||||||||
Tangible Book Value Per Common Share | $ | 16.48 | $ | 16.18 | $ | 15.64 | $ | 16.48 | $ | 15.64 | ||||||||||
3Net interest income has been computed on a fully taxable equivalent basis ("FTE") using a
Net Interest Income (FTE) (Non-GAAP) | Quarter-to-Date | Year-to-Date | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Interest Income | $ | 33,986 | $ | 35,617 | $ | 40,154 | $ | 107,439 | $ | 119,361 | ||||||||||
Interest Expense | (8,550 | ) | (9,355 | ) | (12,084 | ) | (28,477 | ) | (35,440 | ) | ||||||||||
Net Interest Income | 25,436 | 26,262 | 28,070 | 78,962 | 83,921 | |||||||||||||||
Tax Equivalent Adjustment3 | 598 | 626 | 683 | 1,826 | 2,408 | |||||||||||||||
NET INTEREST INCOME (FTE) (Non-GAAP) | $ | 26,034 | $ | 26,888 | $ | 28,753 | $ | 80,788 | $ | 86,329 | ||||||||||
Net Interest Income (Annualized) | 102,880 | 106,615 | 114,074 | 106,638 | 115,422 | |||||||||||||||
Average Earning Assets | 3,874,948 | 3,821,516 | 3,788,308 | 3,806,973 | 3,796,195 | |||||||||||||||
NET INTEREST MARGIN (FTE) (Non-GAAP) | ||||||||||||||||||||
4Core Efficiency Ratio (Non-GAAP) | Quarter-to-Date | Year-to-Date | ||||||||||||||||||
| September 30, | June 30, | September 30, | September 30, | September 30, | ||||||||||||||||
| 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
NONINTEREST EXPENSE | $ | 87,300 | $ | 23,023 | $ | 22,777 | $ | 134,934 | $ | 67,543 | ||||||||||
Less: Losses on Sales and Write-downs of Other Real Estate Owned, net | (1,305 | ) | - | (293 | ) | (1,357 | ) | (569 | ) | |||||||||||
Less: Losses on Sales and Write-downs of Bank Premises, net | (17 | ) | (59 | ) | (31 | ) | (88 | ) | (23 | ) | ||||||||||
Less: Tax Credit Amortization | (272 | ) | (272 | ) | (563 | ) | (816 | ) | (1,689 | ) | ||||||||||
Plus: Contingent Liability | 144 | - | - | 144 | 331 | |||||||||||||||
Less: Conversion Expense | - | - | - | - | (2 | ) | ||||||||||||||
Less: Goodwill Impairment | (62,192 | ) | - | - | (62,192 | ) | - | |||||||||||||
Plus: FDIC Assessment Credits | - | - | 1,056 | - | 1,056 | |||||||||||||||
Plus: Conversion Vacation Accrual | 99 | 192 | 86 | 579 | 646 | |||||||||||||||
CORE NONINTEREST EXPENSE (Non-GAAP) | $ | 23,757 | $ | 22,884 | $ | 23,032 | $ | 71,204 | $ | 67,293 | ||||||||||
NET INTEREST INCOME | $ | 25,436 | $ | 26,262 | $ | 28,070 | $ | 78,962 | $ | 83,921 | ||||||||||
Plus: Taxable Equivalent Adjustment3 | 598 | 626 | 683 | 1,826 | 2,408 | |||||||||||||||
NET INTEREST INCOME (FTE) (Non-GAAP) | $ | 26,034 | $ | 26,888 | $ | 28,753 | $ | 80,788 | $ | 86,329 | ||||||||||
Less: Gains on Sales of Securities, net | (2,388 | ) | (2,321 | ) | (659 | ) | (5,923 | ) | (1,599 | ) | ||||||||||
Less: Gains on Sales of Other Real Estate Owned, net | - | (137 | ) | - | - | - | ||||||||||||||
Less: Other Real Estate Owned Income | (58 | ) | (82 | ) | (96 | ) | (279 | ) | (617 | ) | ||||||||||
Less: Other Gains | - | (38 | ) | - | (307 | ) | (447 | ) | ||||||||||||
Noninterest Income | 7,975 | 6,201 | 4,156 | 20,991 | 12,361 | |||||||||||||||
CORE NET INTEREST INCOME (FTE) (Non-GAAP) plus NONINTEREST INCOME | $ | 31,563 | $ | 30,511 | $ | 32,154 | $ | 95,270 | $ | 96,027 | ||||||||||
CORE EFFICIENCY RATIO (Non-GAAP) | ||||||||||||||||||||
SOURCE: Carter Bank & Trust
View source version on accesswire.com:
https://www.accesswire.com/612921/Carter-Bank-Trust-Announces-Third-Quarter-2020-Financial-Results
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