Carter Bankshares, Inc. Announces First Quarter 2022 Financial Results
Carter Bankshares, Inc. (NASDAQ:CARE) reported a net income of $9.3 million for Q1 2022, or $0.36 diluted earnings per share, marking a rise from $5.6 million in Q4 2021 but stable compared to $9.4 million in Q1 2021. Net interest income increased by 0.6% to $28.2 million, alongside an annualized loan growth of 11.8% to $2.9 billion. However, total noninterest income fell 40.4% year-over-year to $5.3 million. The company repurchased 1,523,157 shares, completing 78% of its two million share program.
- Net income of $9.3 million in Q1 2022, up from $5.6 million in Q4 2021.
- Net interest income increased by 0.6% to $28.2 million.
- Loans grew by 11.8% annualized, reaching $2.9 billion.
- Core deposits increased by $89.6 million from December 31, 2021.
- Completion of 78% of the share repurchase program.
- Total noninterest income decreased by 40.4% year-over-year to $5.3 million.
- Total capital decreased by $49.0 million compared to December 31, 2021.
MARTINSVILLE, VA / ACCESSWIRE / April 26, 2022 / Carter Bankshares, Inc. (the "Company") (NASDAQ:CARE), the holding company of Carter Bank & Trust (the "Bank") today announced net income of
First Quarter 2022 Financial Highlights
- During the first quarter of 2022, a total of 1,523,157 shares were purchased at a weighted average price of
$16.17 under the Company's previously authorized share repurchase program; - Net interest income increased
$0.2 million , or0.6% , to$28.2 million as compared to the fourth quarter of 2021 primarily due to a five basis point increase in earning assets and a five basis point decrease in funding costs; - Net interest margin, on a fully taxable equivalent basis ("FTE"), increased nine basis points to
2.91% compared to the fourth quarter of 2021 and increased 13 basis points compared to the first quarter of 2021; - Total portfolio loans increased
$81.9 million , or11.8% on an annualized basis, to$2.9 billion at March 31, 2022 compared to December 31, 2021; - Total deposits increased
$29.8 million , or3.3% on an annualized basis, to$3.7 billion at March 31, 2022 compared to December 31, 2021, and increased$36.8 million , or4.0% on an annualized basis, compared to March 31, 2021. The increases from December 31, 2021 and March 31, 2021 were primarily due to increased core deposits, offset by the intentional runoff of certificates of deposits; - Core deposits, including noninterest-bearing and interest-bearing demand deposits, money market accounts and savings, increased
$89.6 million compared to December 31, 2021 and increased$356.4 million compared to March 31, 2021; - Nonperforming loans declined
$0.1 million , or1.4% to$7.3 million at March 31, 2022 compared to December 31, 2021 and decreased$24.7 million , or77.2% , from March 31, 2021. The decline from March 31, 2021 is primarily due to the resolution of our two largest nonperforming relationships in 2021. Nonperforming loans as a percentage of total portfolio loans were0.25% ,0.26% and1.08% as of March 31, 2022, December 31, 2021 and March 31, 2021, respectively; - The provision for credit losses totaled
$0.6 million for the quarter ended March 31, 2022 compared to$0.9 million for the quarter ended December 31, 2021.
"We continue to be pleased with the trajectory of the financial performance of the Company. The financial results of the first quarter of 2022 continued the positive momentum we established late in 2021. Loans grew by
Van Dyke continued, "We are extremely pleased with the success of our previously authorized two million share repurchase program and have completed
Operating Highlights
Net interest income increased
The Company continues to focus on the expansion of net interest income and the net interest margin. The first quarter of 2022 was positively impacted by an increase in the yield on investment securities as well as the continued decline in funding costs.
The provision for credit losses decreased
The provision for unfunded commitments in the first quarter of 2022 was a release of
At March 31, 2022 nonperforming loans declined
Total noninterest income was
The decrease of
Total noninterest expense was
The decrease of
Financial Condition
Total assets decreased
Closed retail bank offices increased
Federal Reserve Bank excess reserves decreased
The securities portfolio increased
Total deposits increased
The Company remains well capitalized. The Company's Tier 1 Capital ratio was
Total capital of
At March 31, 2022, funding sources accessible to the Company include borrowing availability at the Federal Home Loan Bank ("FHLB"), equal to
About Carter Bankshares, Inc.
Headquartered in Martinsville, VA, Carter Bankshares, Inc. (NASDAQ: CARE) provides a full range of commercial banking, consumer banking, mortgage and services through its subsidiary Carter Bank & Trust. The Company has
Important Note Regarding Non-GAAP Financial Measures
In addition to traditional measures presented in accordance with GAAP, our management uses, and this press release contains or references, certain 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 that we believe are useful because they enhance the ability of investors and management to evaluate and compare the Company'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 Company's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the Company'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, litigation to which the Company is or has been a party and the potential impacts thereof, 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," "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: changes in accounting policies, practices, or guidance, for example, our adoption of CECL; cyber-security threats, attacks or events; rapid technological developments and changes; changes in the Company'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 ongoing COVID-19 pandemic), and of any governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on incidents of cyberattack and fraud, on the Company's liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company'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 the Company and the Bank, in particular; the outcome of pending and future litigation and governmental proceedings, including litigation or actions arising from the Company's participation in and administration of programs related to COVID-19, including, among other things, the PPP under the CARES Act; 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; material increases in costs and expenses; reliance on significant customer relationships; general economic or business conditions, including unemployment levels, continuing supply chain disruptions and slowdowns in economic growth, particularly related to the sustained economic impacts of the COVID-19 pandemic; changes in the Company's branch expansions and consolidations, including that the anticipated benefits of the Company's branch network optimization project are not fully realized in a timely manner or at all, 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 SEC. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are prepared. 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 Bankshares, Inc.
Wendy Bell, 276-656-1776
Senior Executive Vice President & Chief Financial Officer
wendy.bell@CBTCares.com
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
BALANCE SHEETS
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||
(Dollars in Thousands, except per share data) | (unaudited) | (audited) | (unaudited) | |||||||||
ASSETS | ||||||||||||
Cash and Due From Banks | $ | 38,534 | $ | 36,698 | $ | 42,899 | ||||||
Interest-Bearing Deposits in Other Financial Institutions | 26,462 | 64,905 | 65,624 | |||||||||
Federal Reserve Bank Excess Reserves | 43,040 | 176,196 | 110,631 | |||||||||
Total Cash and Cash Equivalents | 108,036 | 277,799 | 219,154 | |||||||||
Securities Available-for-Sale, at Fair Value | 982,041 | 922,400 | 780,032 | |||||||||
Loans Held-for-Sale | 196 | 228 | 32,737 | |||||||||
Loans Held-for-Sale in Connection with Sale of Bank Branches, at the lower of cost or fair value | - | - | 9,423 | |||||||||
Portfolio Loans | 2,894,004 | 2,812,129 | 2,971,875 | |||||||||
Allowance for Credit Losses | (96,376 | ) | (95,939 | ) | (116,872 | ) | ||||||
Portfolio Loans, net | 2,797,628 | 2,716,190 | 2,855,003 | |||||||||
Bank Premises and Equipment, net | 73,402 | 75,297 | 85,349 | |||||||||
Bank Premises and Equipment, Held-for-Sale, net | - | - | 2,273 | |||||||||
Other Real Estate Owned, net | 11,253 | 10,916 | 14,031 | |||||||||
Federal Home Loan Bank Stock, at Cost | 2,067 | 2,352 | 3,215 | |||||||||
Bank Owned Life Insurance | 55,712 | 55,378 | 54,337 | |||||||||
Other Assets | 92,891 | 73,186 | 86,576 | |||||||||
Total Assets | $ | 4,123,226 | $ | 4,133,746 | $ | 4,142,130 | ||||||
LIABILITIES | ||||||||||||
Deposits: | ||||||||||||
Noninterest-Bearing Demand | $ | 708,353 | $ | 747,909 | $ | 733,291 | ||||||
Interest-Bearing Demand | 480,192 | 452,644 | 384,425 | |||||||||
Money Market | 526,838 | 463,056 | 323,008 | |||||||||
Savings | 728,425 | 690,549 | 646,722 | |||||||||
Certificates of Deposit | 1,284,470 | 1,344,318 | 1,522,510 | |||||||||
Deposits Held-for-Assumption in Connection with Sale of Bank Branches | - | - | 81,565 | |||||||||
Total Deposits | 3,728,278 | 3,698,476 | 3,691,521 | |||||||||
Federal Home Loan Bank Borrowings | - | 7,000 | 30,000 | |||||||||
Other Liabilities | 36,392 | 20,674 | 32,720 | |||||||||
Total Liabilities | 3,764,670 | 3,726,150 | 3,754,241 | |||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Common Stock, Par Value | ||||||||||||
24,986,726 outstanding at March 31, 2022, | ||||||||||||
26,430,919 outstanding at December 31, 2021 and 26,467,531 at March 31, 2021 | 24,987 | 26,431 | 26,468 | |||||||||
Additional Paid-in Capital | 121,045 | 143,988 | 143,582 | |||||||||
Retained Earnings | 244,798 | 235,475 | 213,260 | |||||||||
Accumulated Other Comprehensive (Loss) Income | (32,274 | ) | 1,702 | 4,579 | ||||||||
Total Shareholders' Equity | 358,556 | 407,596 | 387,889 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 4,123,226 | $ | 4,133,746 | $ | 4,142,130 | ||||||
PERFORMANCE RATIOS | ||||||||||||
Return on Average Assets (QTD Annualized) | 0.92 | % | 0.54 | % | 0.92 | % | ||||||
Return on Average Assets (YTD Annualized) | 0.92 | % | 0.76 | % | 0.92 | % | ||||||
Return on Average Shareholders' Equity (QTD Annualized) | 9.57 | % | 5.47 | % | 9.72 | % | ||||||
Return on Average Shareholders' Equity (YTD Annualized) | 9.57 | % | 7.92 | % | 9.72 | % | ||||||
Portfolio Loans to Deposit Ratio | 77.62 | % | 76.03 | % | 80.51 | % | ||||||
Allowance for Credit Losses to Total Portfolio Loans | 3.33 | % | 3.41 | % | 3.93 | % | ||||||
CAPITALIZATION RATIOS | ||||||||||||
Shareholders' Equity to Assets | 8.70 | % | 9.86 | % | 9.36 | % | ||||||
Tier 1 Leverage Ratio | 10.00 | % | 10.62 | % | 10.16 | % | ||||||
Risk-Based Capital - Tier 1 | 12.98 | % | 14.21 | % | 12.88 | % | ||||||
Risk-Based Capital - Total | 14.24 | % | 15.46 | % | 14.14 | % | ||||||
INCOME STATEMENTS
| Quarter-to-Date | ||||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||
(Dollars in Thousands, except per share data) | (unaudited) | (audited) | (unaudited) | |||||||||
Interest Income | $ | 32,678 | $ | 32,933 | $ | 32,957 | ||||||
Interest Expense | 4,456 | 4,883 | 6,428 | |||||||||
NET INTEREST INCOME | 28,222 | 28,050 | 26,529 | |||||||||
Provision for Credit Losses | 630 | 939 | 1,857 | |||||||||
Provision for Unfunded Commitments | (236 | ) | (324 | ) | (282 | ) | ||||||
NET INTEREST INCOME AFTER PROVISION FOR CREDIT LOSSES | 27,828 | 27,435 | 24,954 | |||||||||
NONINTEREST INCOME | ||||||||||||
(Losses) Gains on Sales of Securities, net | (24 | ) | 419 | 3,610 | ||||||||
Service Charges, Commissions and Fees | 1,953 | 1,704 | 1,809 | |||||||||
Debit Card Interchange Fees | 1,932 | 1,770 | 1,831 | |||||||||
Insurance Commissions | 269 | 802 | 294 | |||||||||
Bank Owned Life Insurance Income | 334 | 349 | 340 | |||||||||
Gains on Sales and Write-downs on Bank Premises, net | 383 | - | - | |||||||||
Other Real Estate Owned Income | 10 | 8 | 71 | |||||||||
Commercial Loan Swap Fee Income | - | 359 | 219 | |||||||||
Other | 478 | 365 | 778 | |||||||||
TOTAL NONINTEREST INCOME | 5,335 | 5,776 | 8,952 | |||||||||
NONINTEREST EXPENSE | ||||||||||||
Salaries and Employee Benefits | 11,757 | 15,073 | 12,582 | |||||||||
Occupancy Expense, net | 3,352 | 3,258 | 3,514 | |||||||||
FDIC Insurance Expense | 368 | 275 | 643 | |||||||||
Other Taxes | 804 | 824 | 762 | |||||||||
Advertising Expense | 239 | 366 | 170 | |||||||||
Telephone Expense | 488 | 501 | 600 | |||||||||
Professional and Legal Fees | 1,219 | 1,347 | 1,224 | |||||||||
Data Processing | 841 | 865 | 921 | |||||||||
Losses on Sales and Write-downs of Other Real Estate Owned, net | 159 | 199 | 212 | |||||||||
Losses on Sales and Write-downs of Bank Premises, net | - | 117 | 43 | |||||||||
Debit Card Expense | 633 | 732 | 632 | |||||||||
Tax Credit Amortization | 615 | 427 | 427 | |||||||||
Other Real Estate Owned Expense | 41 | 127 | 54 | |||||||||
Other | 1,995 | 2,125 | 1,821 | |||||||||
TOTAL NONINTEREST EXPENSE | 22,511 | 26,236 | 23,605 | |||||||||
INCOME BEFORE INCOME TAXES | 10,652 | 6,975 | 10,301 | |||||||||
Income Tax Provision | 1,329 | 1,365 | 926 | |||||||||
NET INCOME | $ | 9,323 | $ | 5,610 | $ | 9,375 | ||||||
Shares Outstanding, at End of Period | 24,986,726 | 26,430,919 | 26,467,531 | |||||||||
Average Shares Outstanding-Diluted | 25,740,636 | 26,350,877 | 26,276,890 | |||||||||
PER SHARE DATA | ||||||||||||
Basic Earnings Per Common Share | $ | 0.36 | $ | 0.21 | $ | 0.36 | ||||||
Diluted Earnings Per Common Share | $ | 0.36 | $ | 0.21 | $ | 0.36 | ||||||
Book Value | $ | 14.35 | $ | 15.42 | $ | 14.66 | ||||||
Market Value | $ | 17.37 | $ | 15.39 | $ | 13.96 | ||||||
PROFITABILITY RATIOS (non-GAAP) | ||||||||||||
Net Interest Margin (FTE)3 | 2.91 | % | 2.82 | % | 2.78 | % | ||||||
Core Efficiency Ratio4 | 66.35 | % | 76.58 | % | 73.37 | % | ||||||
NET INTEREST MARGIN (FTE) (QTD AVERAGES)
(Unaudited)
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||||||||||||||||||||||||||
(Dollars in Thousands) | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate | |||||||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||||||
Interest-Bearing Deposits with Banks | $ | 140,080 | $ | 62 | 0.18 | % | $ | 220,871 | $ | 89 | 0.16 | % | $ | 174,731 | $ | 50 | 0.12 | % | ||||||||||||||||||
Tax-Free Investment Securities3 | 26,579 | 211 | 3.22 | % | 25,586 | 210 | 3.26 | % | 51,589 | 413 | 3.25 | % | ||||||||||||||||||||||||
Taxable Investment Securities | 960,645 | 3,732 | 1.58 | % | 881,866 | 3,154 | 1.42 | % | 708,250 | 2,987 | 1.71 | % | ||||||||||||||||||||||||
Total Securities | 987,224 | 3,943 | 1.62 | % | 907,452 | 3,364 | 1.47 | % | 759,839 | 3,400 | 1.81 | % | ||||||||||||||||||||||||
Tax-Free Loans3 | 154,117 | 1,206 | 3.17 | % | 164,587 | 1,288 | 3.10 | % | 223,012 | 1,787 | 3.25 | % | ||||||||||||||||||||||||
Taxable Loans | 2,690,781 | 27,745 | 4.18 | % | 2,689,767 | 28,483 | 4.20 | % | 2,777,423 | 28,145 | 4.11 | % | ||||||||||||||||||||||||
Total Loans | 2,844,898 | 28,951 | 4.13 | % | 2,854,354 | 29,771 | 4.14 | % | 3,000,435 | 29,932 | 4.05 | % | ||||||||||||||||||||||||
Federal Home Loan Bank Stock | 2,139 | 20 | 3.79 | % | 2,475 | 23 | 3.69 | % | 4,805 | 37 | 3.12 | % | ||||||||||||||||||||||||
Total Interest-Earning Assets | 3,974,341 | 32,976 | 3.36 | % | 3,985,152 | 33,247 | 3.31 | % | 3,939,810 | 33,419 | 3.44 | % | ||||||||||||||||||||||||
Noninterest Earning Assets | 154,971 | 160,952 | 182,283 | |||||||||||||||||||||||||||||||||
Total Assets | $ | 4,129,312 | $ | 4,146,104 | $ | 4,122,093 | ||||||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||||||
Interest-Bearing Demand | $ | 463,980 | $ | 277 | 0.24 | % | $ | 446,506 | $ | 280 | 0.25 | % | $ | 378,886 | $ | 215 | 0.23 | % | ||||||||||||||||||
Money Market | 510,286 | 284 | 0.23 | % | 449,229 | 253 | 0.22 | % | 309,624 | 266 | 0.35 | % | ||||||||||||||||||||||||
Savings | 705,759 | 178 | 0.10 | % | 682,018 | 175 | 0.10 | % | 644,806 | 162 | 0.10 | % | ||||||||||||||||||||||||
Certificates of Deposit | 1,308,799 | 3,660 | 1.13 | % | 1,371,829 | 4,099 | 1.19 | % | 1,620,543 | 5,652 | 1.41 | % | ||||||||||||||||||||||||
Total Interest-Bearing Deposits | 2,988,824 | 4,399 | 0.60 | % | 2,949,582 | 4,807 | 0.65 | % | 2,953,859 | 6,295 | 0.86 | % | ||||||||||||||||||||||||
Federal Funds Purchased | - | - | - | % | 1 | - | 1.15 | % | - | - | - | % | ||||||||||||||||||||||||
Federal Home Loan Bank Borrowings | 1,400 | 6 | 1.74 | % | 10,272 | 36 | 1.39 | % | 33,889 | 96 | 1.15 | % | ||||||||||||||||||||||||
Other Borrowings | 4,358 | 51 | 4.75 | % | 3,396 | 40 | 4.67 | % | 2,307 | 37 | 6.50 | % | ||||||||||||||||||||||||
Total Borrowings | 5,758 | 57 | 4.01 | % | 13,669 | 76 | 2.21 | % | 36,196 | 133 | 1.49 | % | ||||||||||||||||||||||||
Total Interest-Bearing Liabilities | 2,994,582 | 4,456 | 0.60 | % | 2,963,251 | 4,883 | 0.65 | % | 2,990,055 | 6,428 | 0.87 | % | ||||||||||||||||||||||||
Noninterest-Bearing Liabilities | 739,556 | 775,914 | 740,892 | |||||||||||||||||||||||||||||||||
Shareholders' Equity | 395,174 | 406,939 | 391,146 | |||||||||||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 4,129,312 | $ | 4,146,104 | $ | 4,122,093 | ||||||||||||||||||||||||||||||
Net Interest Income3 | $ | 28,520 | $ | 28,364 | $ | 26,991 | ||||||||||||||||||||||||||||||
Net Interest Margin3 | 2.91 | % | 2.82 | % | 2.78 | % | ||||||||||||||||||||||||||||||
LOANS AND LOANS HELD-FOR-SALE
(Unaudited)
(Dollars in Thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||
Commercial | ||||||||||||
Commercial Real Estate | $ | 1,343,206 | $ | 1,323,252 | $ | 1,384,541 | ||||||
Commercial and Industrial | 345,345 | 345,376 | 460,264 | |||||||||
Total Commercial Loans | 1,688,551 | 1,668,628 | 1,844,805 | |||||||||
Consumer | ||||||||||||
Residential Mortgages | 483,382 | 457,988 | 414,507 | |||||||||
Other Consumer | 43,288 | 44,666 | 49,516 | |||||||||
Total Consumer Loans | 526,670 | 502,654 | 464,023 | |||||||||
Construction | 321,190 | 282,947 | 289,661 | |||||||||
Other | 357,593 | 357,900 | 373,386 | |||||||||
Total Portfolio Loans | $ | 2,894,004 | $ | 2,812,129 | $ | 2,971,875 | ||||||
Loans Held-for-Sale | 196 | 228 | 32,737 | |||||||||
Loans Held-for-Sale in Connection with Sale of Bank Branches, at the lower of cost or fair value | - | - | 9,423 | |||||||||
Total Loans | $ | 2,894,200 | $ | 2,812,357 | $ | 3,014,035 | ||||||
ASSET QUALITY DATA
(Unaudited)
(Dollars in Thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||
Nonperforming Loans | ||||||||||||
Commercial Real Estate | $ | 265 | $ | 595 | $ | 651 | ||||||
Commercial and Industrial | 208 | 451 | 818 | |||||||||
Residential Mortgages | 2,816 | 2,551 | 3,629 | |||||||||
Other Consumer | 20 | 73 | 109 | |||||||||
Construction | 166 | 177 | 2,124 | |||||||||
Other | - | - | - | |||||||||
Total Nonperforming Loans | 3,475 | 3,847 | 7,331 | |||||||||
Nonperforming Troubled Debt Restructurings | ||||||||||||
Commercial Real Estate | 3,014 | 2,742 | 21,306 | |||||||||
Commercial and Industrial | - | - | - | |||||||||
Residential Mortgages | - | - | - | |||||||||
Other Consumer | - | - | - | |||||||||
Construction | 808 | 808 | 3,319 | |||||||||
Other | - | - | - | |||||||||
Total Nonperforming Troubled Debt Restructurings | 3,822 | 3,550 | 24,625 | |||||||||
Total Nonperforming Loans and Troubled Debt Restructurings | 7,297 | 7,397 | 31,956 | |||||||||
Other Real Estate Owned | 11,253 | 10,916 | 14,031 | |||||||||
Total Nonperforming Assets | $ | 18,550 | $ | 18,313 | $ | 45,987 | ||||||
| For the Periods Ended | ||||||||||||
(Dollars in Thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||
Nonperforming Loans | $ | 7,297 | $ | 7,397 | $ | 31,956 | ||||||
Other Real Estate Owned | 11,253 | 10,916 | 14,031 | |||||||||
Total Nonperforming Assets | 18,550 | 18,313 | 45,987 | |||||||||
Troubled Debt Restructurings (Nonaccruing) | 3,822 | 3,550 | 24,625 | |||||||||
Troubled Debt Restructurings (Accruing) | 171,478 | 172,592 | 106,650 | |||||||||
Total Troubled Debt Restructurings | $ | 175,300 | $ | 176,142 | $ | 131,275 | ||||||
Nonperforming Loans to Total Portfolio Loans | 0.25 | % | 0.26 | % | 1.08 | % | ||||||
Nonperforming Assets to Total Portfolio Loans plus Other Real Estate Owned | 0.64 | % | 0.65 | % | 1.54 | % | ||||||
Allowance for Credit Losses to Total Portfolio Loans | 3.33 | % | 3.41 | % | 3.93 | % | ||||||
Allowance for Credit Losses to Nonperforming Loans and Troubled Debt Restructurings | 1320.76 | % | 1297.00 | % | 365.73 | % | ||||||
Net Loan Charge-offs (Recoveries) QTD | $ | 193 | $ | 4,294 | $ | 701 | ||||||
Net Loan Charge-offs (Recoveries) YTD | $ | 193 | $ | 23,127 | $ | 701 | ||||||
Net Loan Charge-offs (Recoveries) (Annualized) to Average Portfolio Loans QTD | 0.03 | % | 0.60 | % | 0.10 | % | ||||||
Net Loan Charge-offs (Recoveries) (Annualized) to Average Portfolio Loans YTD | 0.03 | % | 0.79 | % | 0.10 | % | ||||||
ALLOWANCE FOR CREDIT LOSSES
(Unaudited)
| Quarter-to-Date | ||||||||||||
(Dollars in Thousands) | March 31, 2022 | December 31, 2021 | March 31, 2021 | |||||||||
Balance Beginning of Year | $ | 95,939 | $ | 99,294 | $ | 54,074 | ||||||
Impact of CECL Adoption | - | - | 61,642 | |||||||||
Provision for Credit Losses | 630 | 939 | 1,857 | |||||||||
Charge-offs: | ||||||||||||
Commercial Real Estate | - | 2,237 | - | |||||||||
Commercial and Industrial | - | 178 | 1 | |||||||||
Residential Mortgages | 17 | - | 195 | |||||||||
Other Consumer | 435 | 423 | 870 | |||||||||
Construction | - | 1,859 | - | |||||||||
Other | - | - | - | |||||||||
Total Charge-offs | 452 | 4,697 | 1,066 | |||||||||
Recoveries: | ||||||||||||
Commercial Real Estate | - | 10 | - | |||||||||
Commercial and Industrial | 1 | 286 | 1 | |||||||||
Residential Mortgages | - | - | 166 | |||||||||
Other Consumer | 109 | 107 | 137 | |||||||||
Construction | 149 | - | 61 | |||||||||
Other | - | - | - | |||||||||
Total Recoveries | 259 | 403 | 365 | |||||||||
Total Net Charge-offs | 193 | 4,294 | 701 | |||||||||
Balance End of Period | $ | 96,376 | $ | 95,939 | $ | 116,872 | ||||||
(Unaudited)
(Dollars in Thousands, except per share data)
DEFINITIONS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES:
1 Pre-tax Pre-provision Income (Non-GAAP) | Quarter-to-Date | |||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||
Net Interest Income | $ | 28,222 | $ | 28,050 | $ | 26,529 | ||||||
Noninterest Income | 5,335 | 5,776 | 8,952 | |||||||||
Noninterest Expense | 22,511 | 26,236 | 23,605 | |||||||||
Pre-tax Pre-provision Income | $ | 11,046 | $ | 7,590 | $ | 11,876 | ||||||
Losses (Gains) on Sales of Securities, net | 24 | (419 | ) | (3,610 | ) | |||||||
(Gains) Losses on Sales and Write-downs of Bank Premises, net | (383 | ) | 117 | 43 | ||||||||
Losses on Sales and Write-downs of OREO, net | 159 | 199 | 212 | |||||||||
Branch Consolidation Severance and Expenses | - | 13 | 4 | |||||||||
Non-recurring Fees5 | (65 | ) | (130 | ) | (446 | ) | ||||||
OREO Income | (10 | ) | (8 | ) | (71 | ) | ||||||
FHLB Prepayment Penalty | 18 | 39 | 4 | |||||||||
Contingent Liability | 160 | - | - | |||||||||
Professional Finder's Fee6 | - | 150 | - | |||||||||
Core Pre-tax Pre-provision Income (Non-GAAP) | $ | 10,949 | $ | 7,551 | $ | 8,012 | ||||||
2 Core Net Income (Non-GAAP) | Quarter-to-Date | |||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||
Net Income | $ | 9,323 | $ | 5,610 | $ | 9,375 | ||||||
Losses (Gains) on Sales of Securities, net | 24 | (419 | ) | (3,610 | ) | |||||||
(Gains) Losses on Sales and Write-downs of Bank Premises, net | (383 | ) | 117 | 43 | ||||||||
Losses on Sales and Write-downs of OREO, net | 159 | 199 | 212 | |||||||||
Branch Consolidation Severance and Expenses | - | 13 | 4 | |||||||||
Non-recurring Fees5 | (65 | ) | (130 | ) | (446 | ) | ||||||
OREO Income | (10 | ) | (8 | ) | (71 | ) | ||||||
FHLB Prepayment Penalty | 18 | 39 | 4 | |||||||||
Contingent Liability | 160 | - | - | |||||||||
Professional Finder's Fee6 | - | 150 | - | |||||||||
Total Tax Effect | 20 | 8 | 811 | |||||||||
Core Net Income (Non-GAAP) | $ | 9,246 | $ | 5,579 | $ | 6,322 | ||||||
Average Shares Outstanding - diluted | 25,740,636 | 26,350,877 | 26,276,890 | |||||||||
Core Earnings Per Common Share (diluted) (Non-GAAP) | $ | 0.36 | $ | 0.21 | $ | 0.24 | ||||||
3 Net interest income has been computed on a fully taxable equivalent basis ("FTE") using a
Net Interest Income (FTE) (Non-GAAP) | Quarter-to-Date | |||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||
Interest Income | $ | 32,678 | $ | 32,933 | $ | 32,957 | ||||||
Interest Expense | 4,456 | 4,883 | 6,428 | |||||||||
Net Interest Income | 28,222 | 28,050 | 26,529 | |||||||||
Tax Equivalent Adjustment3 | 298 | 314 | 462 | |||||||||
NET INTEREST INCOME (FTE) (Non-GAAP) | $ | 28,520 | $ | 28,364 | $ | 26,991 | ||||||
Net Interest Income (Annualized) | 115,664 | 112,531 | 109,464 | |||||||||
Average Earning Assets | 3,974,341 | 3,985,152 | 3,939,810 | |||||||||
NET INTEREST MARGIN (FTE) (Non-GAAP) | 2.91 | % | 2.82 | % | 2.78 | % | ||||||
4 Core Efficiency Ratio (Non-GAAP) | Quarter-to-Date | |||||||||||
| March 31, 2022 | December 31, 2021 | March 31, 2021 | ||||||||||
NONINTEREST EXPENSE | $ | 22,511 | $ | 26,236 | $ | 23,605 | ||||||
Less: Losses on Sales and Write-downs of OREO, net | (159 | ) | (199 | ) | (212 | ) | ||||||
Less: Losses on Sales and Write-downs of Bank Premises, net | - | (117 | ) | (43 | ) | |||||||
Less: Branch Consolidation Severance and Expenses | - | (13 | ) | (4 | ) | |||||||
Less: FHLB Prepayment Penalty | (18 | ) | (39 | ) | (4 | ) | ||||||
Less: Professional Finder's Fee6 | - | (150 | ) | - | ||||||||
Less: Contingent Liability | (160 | ) | - | - | ||||||||
CORE NONINTEREST EXPENSE (Non-GAAP) | $ | 22,174 | $ | 25,718 | $ | 23,342 | ||||||
NET INTEREST INCOME | $ | 28,222 | $ | 28,050 | $ | 26,529 | ||||||
Plus: Taxable Equivalent Adjustment3 | 298 | 314 | 462 | |||||||||
NET INTEREST INCOME (FTE) (Non-GAAP) | $ | 28,520 | $ | 28,364 | $ | 26,991 | ||||||
Less: Losses (Gains) on Sales of Securities, net | 24 | (419 | ) | (3,610 | ) | |||||||
Less: Gains on Sales of Bank Premises, net | (383 | ) | - | - | ||||||||
Less: Non-recurring Fees5 | (65 | ) | (130 | ) | (446 | ) | ||||||
Less: OREO Income | (10 | ) | (8 | ) | (71 | ) | ||||||
Noninterest Income | 5,335 | 5,776 | 8,952 | |||||||||
CORE NET INTEREST INCOME (FTE) (Non-GAAP) plus NONINTEREST INCOME | $ | 33,421 | $ | 33,583 | $ | 31,816 | ||||||
CORE EFFICIENCY RATIO (Non-GAAP) | 66.35 | % | 76.58 | % | 73.37 | % | ||||||
5 The Non-recurring fees include PPP related fees.
6The professional finder's fee is related to fees associated with note sales in 2021.
SOURCE: Carter Bankshares, Inc.
View source version on accesswire.com:
https://www.accesswire.com/698638/Carter-Bankshares-Inc-Announces-First-Quarter-2022-Financial-Results
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