Carter Bankshares, Inc. Announces Fourth Quarter 2020 Financial Results
Carter Bankshares, Inc. (NASDAQ:CARE) reported a net income of $2.9 million, or $0.11 per share, for Q4 2020, rebounding from a significant loss of $57.7 million in Q3 due to a one-time goodwill impairment charge. For the year, the company posted a net loss of $45.9 million, but excluding this charge, net income was $16.3 million, down from $26.6 million in 2019. Total deposits increased to $3.7 billion, while nonperforming loans fell by 20.9%. The company anticipates continued improvement in financial performance with branch optimization and enhanced asset management efforts.
- Net income of $2.9 million for Q4 2020, compared to a loss of $57.7 million in Q3 2020.
- Total deposits increased by $70.8 million, reaching $3.7 billion.
- Nonperforming loans declined by 20.9%, showing improved asset quality.
- Net loss of $45.9 million for the year, indicating ongoing challenges.
- Decrease in net interest income of $7.2 million or 6.4% for 2020 compared to 2019.
- One-time goodwill impairment charge of $62.2 million recorded in Q3 2020.
MARTINSVILLE, VA / ACCESSWIRE / January 28, 2021 / Carter Bankshares, Inc. (the "Company") (NASDAQ:CARE) today announced net income of
For the year ended December 31, 2020, the Company realized a net loss of
Fourth Quarter 2020 Financial Highlights
- On November 23, 2020, the Company completed the reorganization in which Carter Bankshares, Inc. became the parent bank holding company of Carter Bank & Trust;
- Net interest income increased
$0.7 million , or2.8% , to$26.2 million as compared to the linked quarter primarily due to a 16 basis point decrease in funding costs compared to the third quarter of 2020;
- Net interest margin, on a fully taxable equivalent basis, increased four basis points to
2.71% over the linked quarter;
- Total deposits increased
$70.8 million to$3.7 billion as of December 31, 2020 as compared to the linked quarter and$180.4 million , or5.1% , as compared to December 31, 2019. Total deposits at December 31, 2020 include$84.7 million of deposits held for assumption in connection with the Company's agreement to sell four of its banking branches. Deposits held for assumption at December 31, 2020 include$9.5 million of noninterest-bearing deposits,$4.9 million of interest-bearing deposits,$13.8 million of money market and savings deposits and$56.5 million in certificates of deposit. Noninterest-bearing and interest-bearing demand deposits, money market accounts and savings, increased by$162.2 million , or8.8% , as compared to linked quarter and increased$469.5 million , or30.4% , as compared to December 31, 2019;
- On January 6, 2021, the Company announced the closing of 24 retail branch offices through closure or sale. The branch closures are expected to occur on or about April 16, 2021, as part of our branch network optimization project aligned with our strategic goals to enhance franchise value and improve operating efficiency;
- On January 14, 2021, the Company announced that it agreed to sell three of the aforementioned branches to Pendleton Community Bank. On January 27, 2021, the Company announced that it agreed to sell one of the aforementioned branches to F & M Bank. These agreements are subject to regulatory approvals and expected to be completed in the second quarter of 2021. In connection with the Company's agreement to sell these four banking branches are
$9.8 million of loans and$84.7 million of deposits detailed previously;
- The provision for loan losses totaled
$4.8 million for the quarter ended December 31, 2020,$2.9 million for the quarter ending September 30, 2020 and$(1.0) million for the same quarter of 2019. The increase from the previous quarter was primarily due to an increase in specific reserves for two credit relationships, offset by a decrease in our quantitative reserves due to the decline in historic loss rates;
- Nonperforming loans declined
$8.5 million , or20.9% as compared to September 30, 2020 due to sale proceeds from two credit relationships. Nonperforming loans to total portfolio loans were1.09% ,1.35% and1.46% as of December 31, 2020, September 30, 2020 and December 31, 2019, respectively.
"Last year, we faced significant adversity due to the COVID-19 pandemic. It was a challenging year not only for the Company, but for many of our business and consumer banking customers. We are extremely proud of how our teammates have remained resilient and committed to meeting the needs of our customer base," stated Litz H. Van Dyke, Chief Executive Officer. "We remained profitable, well-capitalized, have strong liquidity, and continue to implement state-of-the-art technology on par with or above the industry standard to continue to provide our customers with financial flexibility, and to offer products and services through multiple delivery channels while providing a safe environment for both employees and customers."
Van Dyke continued, "Going forward, we believe we are positioned for continued improvement in the financial performance of the Company. We have adjusted our branch operating models to increase efficiency and profitability, and are nearing completion of our branch optimization initiative. With a "right-sized" branch footprint, we can now focus on growth in both strong existing markets as well as new emerging markets. We continue to build out our commercial, retail and mortgage lending groups in all key markets. While progress continues with respect to asset quality, further reduction of troubled assets remains a constant goal. Finally, we have made solid progress in improving our deposit mix and lowering our cost of funds, both of which are now driving an improved net interest margin. Despite the challenges that COVID-19 continues to present, we will continue to build and strengthen our customer relationships and remain very optimistic about our future."
Operating Highlights
Net interest income decreased
The provision for loan losses totaled
At December 31, 2020, nonperforming loans were
Noninterest income for the year ended December 31, 2020, excluding net securities gains, increased
Total noninterest expense for the year ended December 31, 2020 increased
Financial Condition
Total assets were
Federal Reserve Bank excess reserves increased
The securities portfolio increased
Total deposits increased
Deposits held for assumption at December 31, 2020 include
The allowance for loan losses was
The Company provides deferrals to customers under Section 4013 of the CARES Act and regulatory interagency statements on loan modifications. The Company launched successive deferral programs with short term expirations. The Part I program was launched in March 2020 and expired at the end of August 2020. The deferrals in Part I typically provided deferral of both principal and interest through the expiry. The Part II program was launched in July 2020 and expired at the end of December 2020. The deferrals in this program were needs based and required the collection of updated financial information and in certain situations, the validation of liquidity to support the business. Prior to the extension of the CARES Act, the Company launched the Part III program that offered borrowers in the Part II program an extension of deferrals through June 2021. For those borrowers who opted into the Part III program, they are required to provide monthly financial statements and remit payments on a quarterly basis based on excess cash flows, if any, up to their otherwise contractual payment. Management expects the majority of deferrals in the Part III program to 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 December 31, 2020, we had 83 loans opt for deferrals under Part III of the program which continues through June 30, 2021, with an aggregate principal balance of
We have participated in the Paycheck Protection Program ("PPP") established by the CARES Act. As of December 31, 2020, we had approved 515 loan applications totaling
A one-time goodwill impairment charge of
The Company remains well capitalized. The Company's Tier 1 Capital ratio was
Total capital of
At December 31, 2020, 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
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 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, 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 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 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 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 Carter Bankshares, Inc., 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 SEC. 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 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
(Unaudited)
(Dollars in Thousands, except per share data) | December 31, | September 30, | December 31, | |||||||||
| 2020 | 2020 | 2019 | ||||||||||
ASSETS | ||||||||||||
Cash and Due From Banks | $ | 38,535 | $ | 37,688 | $ | 41,386 | ||||||
Interest-Bearing Deposits in Other Financial Institutions | 39,954 | 6,267 | 45,156 | |||||||||
Federal Reserve Bank Excess Reserves | 163,453 | 107,219 | 39,270 | |||||||||
Total Cash and Cash Equivalents | 241,942 | 151,174 | 125,812 | |||||||||
Securities, Available-for-Sale, at Fair Value | 778,679 | 777,986 | 742,617 | |||||||||
Loans Held-for-Sale | 25,437 | 32,104 | 19,714 | |||||||||
Loans Held-for-Sale in Connection with Sale of Banking Branches, at the lower of cost or fair value | 9,835 | - | - | |||||||||
Portfolio Loans | 2,947,170 | 2,985,921 | 2,884,766 | |||||||||
Allowance for Loan Losses | (54,074 | ) | (49,965 | ) | (38,762 | ) | ||||||
Portfolio Loans, net | 2,893,096 | 2,935,956 | 2,846,004 | |||||||||
Bank Premises and Equipment, net | 85,307 | 87,439 | 85,942 | |||||||||
Bank Premises and Equipment Held-for-Sale, net | 2,293 | - | - | |||||||||
Other Real Estate Owned, net | 15,722 | 16,410 | 18,324 | |||||||||
Goodwill | - | - | 62,192 | |||||||||
Federal Home Loan Bank Stock, at Cost | 5,093 | 5,093 | 4,113 | |||||||||
Bank Owned Life Insurance | 53,997 | 53,651 | 52,597 | |||||||||
Other Assets | 67,778 | 74,312 | 48,793 | |||||||||
TOTAL ASSETS | $ | 4,179,179 | $ | 4,134,125 | $ | 4,006,108 | ||||||
LIABILITIES | ||||||||||||
Deposits: | ||||||||||||
Noninterest-Bearing Demand | $ | 699,229 | $ | 665,813 | $ | 554,875 | ||||||
Interest-Bearing Demand | 366,201 | 351,066 | 286,561 | |||||||||
Money Market | 294,229 | 211,465 | 140,589 | |||||||||
Savings | 625,482 | 622,806 | 561,814 | |||||||||
Certificates of Deposits | 1,614,770 | 1,762,645 | 1,960,406 | |||||||||
Deposits Held for Assumption in Connection with Sale of Banking Branches | 84,717 | - | - | |||||||||
Total Deposits | 3,684,628 | 3,613,795 | 3,504,245 | |||||||||
FHLB Borrowings | 35,000 | 35,000 | 10,000 | |||||||||
Other Liabilities | 19,377 | 50,523 | 18,752 | |||||||||
TOTAL LIABILITIES | 3,739,005 | 3,699,318 | 3,532,997 | |||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Common Stock, Par Value | ||||||||||||
26,385,041 outstanding at December 31, 2020, | ||||||||||||
26,386,901 outstanding at September 30, 2020 and 26,334,229 at December 31, 2019 | 26,385 | 26,387 | 26,334 | |||||||||
Additional Paid-in-Capital | 143,457 | 143,244 | 142,492 | |||||||||
Retained Earnings | 254,611 | 251,669 | 304,158 | |||||||||
Accumulated Other Comprehensive Income | 15,721 | 13,507 | 127 | |||||||||
TOTAL SHAREHOLDERS' EQUITY | 440,174 | 434,807 | 473,111 | |||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 4,179,179 | $ | 4,134,125 | $ | 4,006,108 | ||||||
PROFITABILITY RATIOS (ANNUALIZED) | ||||||||||||
Return on Average Assets | (1.12 | )% | (1.59 | )% | 0.65 | % | ||||||
Return on Average Shareholders' Equity | (9.78 | )% | (13.59 | )% | 5.76 | % | ||||||
Portfolio Loan to Deposit Ratio | 79.99 | % | 82.63 | % | 82.32 | % | ||||||
Allowance to Total Portfolio Loans | 1.83 | % | 1.67 | % | 1.34 | % | ||||||
CAPITALIZATION RATIOS | ||||||||||||
Shareholders' Equity to Assets | 10.53 | % | 10.52 | % | 11.81 | % | ||||||
Tier 1 Leverage Ratio | 10.26 | % | 10.12 | % | 10.33 | % | ||||||
Risk-Based Capital - Tier 1 | 13.08 | % | 13.08 | % | 13.58 | % | ||||||
Risk-Based Capital - Total | 14.33 | % | 14.33 | % | 14.83 | % | ||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
INCOME STATEMENTS
(Unaudited)
(Dollars in Thousands, except per share data) | Quarter-to-Date | Year-to-Date | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Interest Income | $ | 33,502 | $ | 33,986 | $ | 39,759 | $ | 140,941 | $ | 159,120 | ||||||||||
Interest Expense | 7,349 | 8,550 | 11,333 | 35,826 | 46,773 | |||||||||||||||
NET INTEREST INCOME | 26,153 | 25,436 | 28,426 | 105,115 | 112,347 | |||||||||||||||
Provision for Loan Losses | 4,821 | 2,914 | (982 | ) | 18,006 | 3,404 | ||||||||||||||
NET INTEREST INCOME AFTER | 21,332 | 22,522 | 29,408 | 87,109 | 108,943 | |||||||||||||||
PROVISION FOR LOAN LOSSES | ||||||||||||||||||||
NONINTEREST INCOME | ||||||||||||||||||||
Gains on Sales of Securities, net | 959 | 2,388 | 606 | 6,882 | 2,205 | |||||||||||||||
Service Charges, Commissions and Fees | 1,623 | 1,205 | 1,733 | 4,668 | 4,962 | |||||||||||||||
Debit Card Interchange Fees | 1,587 | 1,559 | 1,326 | 5,857 | 5,160 | |||||||||||||||
Insurance | (395 | ) | 482 | 128 | 1,728 | 1,225 | ||||||||||||||
Bank Owned Life Insurance Income | 346 | 351 | 357 | 1,400 | 1,436 | |||||||||||||||
Other Real Estate Owned Income | 61 | 58 | 72 | 340 | 689 | |||||||||||||||
Commercial Loan Swap Fee Income | 931 | 1,572 | - | 4,051 | - | |||||||||||||||
Other | 477 | 360 | 287 | 1,654 | 1,193 | |||||||||||||||
TOTAL NONINTEREST INCOME | 5,589 | 7,975 | 4,509 | 26,580 | 16,870 | |||||||||||||||
NONINTEREST EXPENSE | ||||||||||||||||||||
Salaries and Employee Benefits | 13,284 | 13,036 | 15,083 | 52,390 | 52,879 | |||||||||||||||
Occupancy Expense, net | 3,292 | 3,413 | 3,082 | 13,369 | 11,785 | |||||||||||||||
FDIC Insurance Expense | 685 | 547 | 549 | 2,313 | 1,270 | |||||||||||||||
Other Taxes | 808 | 809 | 746 | 3,151 | 2,847 | |||||||||||||||
Advertising Expense | 223 | 404 | 743 | 1,633 | 1,445 | |||||||||||||||
Telephone Expense | 578 | 578 | 578 | 2,303 | 2,202 | |||||||||||||||
Professional and Legal Fees | 1,696 | 1,474 | 1,560 | 5,006 | 4,507 | |||||||||||||||
Data Processing | 731 | 836 | 492 | 2,648 | 2,267 | |||||||||||||||
Losses on Sales and Write-downs of Other Real Estate Owned, net | 78 | 1,305 | 4,163 | 1,435 | 4,732 | |||||||||||||||
Losses on Sales and Write-downs of Bank Premises, net | 11 | 17 | 165 | 99 | 188 | |||||||||||||||
Debit Card Expense | 576 | 764 | 593 | 2,565 | 2,753 | |||||||||||||||
Tax Credit Amortization | 272 | 272 | 576 | 1,088 | 2,265 | |||||||||||||||
Unfunded Loan Commitment Expense | (503 | ) | (348 | ) | (255 | ) | (252 | ) | 121 | |||||||||||
Other Real Estate Owned Expense | 246 | 94 | 292 | 657 | 525 | |||||||||||||||
Goodwill Impairment Expense | - | 62,192 | - | 62,192 | - | |||||||||||||||
Other | 1,864 | 1,907 | 2,119 | 8,178 | 8,243 | |||||||||||||||
TOTAL NONINTEREST EXPENSE | 23,841 | 87,300 | 30,486 | 158,775 | 98,029 | |||||||||||||||
INCOME (LOSS) BEFORE INCOME TAXES | 3,080 | (56,803) | 3,431 | (45,086) | 27,784 | |||||||||||||||
Income Tax Provision (Benefit) | 138 | 875 | (175 | ) | 772 | 1,209 | ||||||||||||||
NET INCOME (LOSS) | $ | 2,942 | $ | (57,678) | $ | 3,606 | $ | (45,858) | $ | 26,575 | ||||||||||
Shares Outstanding, at End of Period | 26,385,041 | 26,386,901 | 26,334,229 | 26,385,041 | 26,334,229 | |||||||||||||||
Average Shares Outstanding-Basic | 26,386,170 | 26,385,189 | 26,334,069 | 26,379,774 | 26,323,899 | |||||||||||||||
Average Shares Outstanding-Diluted | 26,394,106 | 26,385,189 | 26,362,129 | 26,379,774 | 26,339,085 | |||||||||||||||
PER SHARE DATA | ||||||||||||||||||||
Basic Earnings (Loss) Per Common Share | $ | 0.11 | $ | (2.19 | ) | $ | 0.14 | $ | (1.74 | ) | $ | 1.01 | ||||||||
Diluted Earnings (Loss) Per Common Share | $ | 0.11 | $ | (2.19 | ) | $ | 0.14 | $ | (1.74 | ) | $ | 1.01 | ||||||||
Book Value | $ | 16.68 | $ | 16.48 | $ | 17.97 | $ | 16.68 | $ | 17.97 | ||||||||||
Tangible Book Value2 | $ | 16.68 | $ | 16.48 | $ | 15.60 | $ | 16.68 | $ | 15.60 | ||||||||||
Market Value | $ | 10.72 | $ | 6.65 | $ | 23.72 | $ | 10.72 | $ | 23.72 | ||||||||||
PROFITABILITY RATIOS (non-GAAP) | ||||||||||||||||||||
Net Interest Margin (FTE)3 | 2.71 | % | 2.67 | % | 3.06 | % | 2.80 | % | 3.05 | % | ||||||||||
Core Efficiency Ratio4 | 71.02 | % | 75.27 | % | 76.13 | % | 73.81 | % | 71.62 | % | ||||||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
NET INTEREST MARGIN (FTE) (QTD AVERAGES)
(Unaudited)
(Dollars in Thousands) | December 31, 2020 | September 30, 2020 | December 31, 2019 | ||||||||
ASSETS | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate | ||
Interest-Bearing Deposits with Banks | |||||||||||
Tax-Free Investment Securities | 63,574 | 491 | 54,541 | 455 | 20,337 | 207 | |||||
Taxable Investment Securities | 698,761 | 3,018 | 693,330 | 3,150 | 730,444 | 4,723 | |||||
Tax-Free Loans | 265,649 | 2,119 | 302,351 | 2,397 | 355,639 | 2,830 | |||||
Taxable Loans | 2,757,028 | 28,341 | 2,694,747 | 28,511 | 2,558,192 | 32,167 | |||||
Federal Home Loan Bank Stock | 5,093 | 48 | 5,093 | 39 | 4,081 | 60 | |||||
Total Interest-Earning Assets | |||||||||||
LIABILITIES | |||||||||||
Deposits: | |||||||||||
Interest-Bearing Demand | |||||||||||
Money Market | 249,879 | 232 | 200,303 | 210 | 154,381 | 358 | |||||
Savings | 626,744 | 162 | 616,414 | 168 | 563,401 | 148 | |||||
Certificates of Deposit | 1,711,053 | 6,619 | 1,801,535 | 7,815 | 1,994,916 | 10,403 | |||||
Total Interest-Bearing Deposits | |||||||||||
Borrowings: | |||||||||||
FHLB Borrowings | 35,000 | 101 | 35,000 | 101 | 9,239 | 39 | |||||
Other Borrowings | 1,721 | 21 | 1,183 | 17 | 1,547 | 21 | |||||
Total Borrowings | 36,721 | 122 | 36,183 | 118 | 10,786 | 60 | |||||
Total Interest-Bearing Liabilities | |||||||||||
Net Interest Income | |||||||||||
Net Interest Margin | |||||||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
NET INTEREST MARGIN (FTE) (YTD AVERAGES)
(Unaudited)
(Dollars in Thousands) | December 31, 2020 | December 31, 2019 | |||||
ASSETS | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate | |
Interest-Bearing Deposits with Banks | |||||||
Tax-Free Investment Securities | 47,364 | 1,567 | 63,641 | 2,352 | |||
Taxable Investment Securities | 697,408 | 14,264 | 730,500 | 17,826 | |||
Tax-Free Loans | 307,023 | 9,739 | 379,090 | 12,154 | |||
Taxable Loans | 2,672,435 | 117,226 | 2,489,105 | 126,940 | |||
Federal Home Loan Bank Stock | 4,925 | 218 | 2,352 | 144 | |||
Total Interest-Earning Assets | |||||||
LIABILITIES | |||||||
Deposits: | |||||||
Interest-Bearing Demand | |||||||
Money Market | 197,225 | 924 | 134,676 | 1,671 | |||
Savings | 599,637 | 632 | 582,195 | 1,388 | |||
Certificates of Deposit | 1,818,837 | 32,695 | 2,054,077 | 41,593 | |||
Total Interest-Bearing Deposits | |||||||
Borrowings: | |||||||
FED Funds Purchased | 55 | 1 | - | - | - | ||
FHLB Borrowings | 30,628 | 361 | 2,329 | 38 | |||
Other Borrowings | 1,408 | 73 | 1,042 | 79 | |||
Total Borrowings | 32,091 | 435 | 3,371 | 117 | |||
Total Interest-Bearing Liabilities | |||||||
Net Interest Income | |||||||
Net Interest Margin | |||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
LOANS AND LOANS HELD-FOR-SALE
(Unaudited)
| December 31, | September 30, | December 31, | ||||||||||
(Dollars in Thousands) | 2020 | 2020 | 2019 | |||||||||
Commercial | ||||||||||||
Commercial Real Estate | $ | 1,453,799 | $ | 1,417,164 | $ | 1,365,310 | ||||||
Commercial and Industrial | 306,828 | 300,951 | 256,798 | |||||||||
Obligations of State and Political Subdivisions | 250,336 | 310,610 | 364,869 | |||||||||
Commercial Construction | 387,407 | 386,343 | 292,827 | |||||||||
Total Commercial Loans | 2,398,370 | 2,415,068 | 2,279,804 | |||||||||
Consumer | ||||||||||||
Residential Mortgages | 472,170 | 490,343 | 514,538 | |||||||||
Other Consumer | 57,647 | 66,177 | 73,688 | |||||||||
Consumer Construction | 18,983 | 14,333 | 16,736 | |||||||||
Total Consumer Loans | 548,800 | 570,853 | 604,962 | |||||||||
Total Portfolio Loans | 2,947,170 | 2,985,921 | 2,884,766 | |||||||||
Loans Held-for-Sale | 25,437 | 32,104 | 19,714 | |||||||||
Loans Held-for-Sale in Connection with Sale of Banking Branches, at the lower of cost or fair value | 9,835 | - | - | |||||||||
Total Loans | $ | 2,982,442 | $ | 3,018,025 | $ | 2,904,480 | ||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
ASSET QUALITY DATA
(Unaudited)
(Dollars in Thousands) | December 31, | September 30, | December 31, | |||||||||
Nonperforming Loans | 2020 | 2020 | 2019 | |||||||||
Commercial Real Estate | $ | 224 | $ | 235 | $ | 1,017 | ||||||
Commercial and Industrial | 456 | 159 | 77 | |||||||||
Obligations of State and Political Subdivisions | - | - | - | |||||||||
Commercial Construction | 2,012 | 3,748 | 3,210 | |||||||||
Residential Mortgages | 4,135 | 3,310 | 2,857 | |||||||||
Other Consumer | 191 | 152 | 267 | |||||||||
Consumer Construction | - | - | - | |||||||||
Total Nonperforming Loans | 7,018 | 7,604 | 7,428 | |||||||||
Nonperforming Troubled Debt Restructurings | ||||||||||||
Commercial Real Estate | 21,667 | 28,599 | 30,073 | |||||||||
Commercial and Industrial | - | - | 390 | |||||||||
Obligations of State and Political Subdivisions | - | - | - | |||||||||
Commercial Construction | 3,319 | 4,249 | 4,242 | |||||||||
Residential Mortgages | - | - | - | |||||||||
Other Consumer | - | - | - | |||||||||
Consumer Construction | - | - | - | |||||||||
Total Nonperforming Troubled Debt Restructurings | 24,986 | 32,848 | 34,705 | |||||||||
Total Nonperforming Loans and Troubled Debt Restructurings | 32,004 | 40,452 | 42,133 | |||||||||
Other Real Estate Owned | 15,722 | 16,410 | 18,324 | |||||||||
Total Nonperforming Assets | $ | 47,726 | $ | 56,862 | $ | 60,457 | ||||||
| At or for the Year-Ended December 31, 2020 | At or for the Nine Months Ended September 30, 2020 | At or for the Year-Ended December 31, 2019 | ||||||||||
Nonperforming Loans | $ | 32,004 | $ | 40,452 | $ | 42,133 | ||||||
Other Real Estate Owned | 15,722 | 16,410 | 18,324 | |||||||||
Total Nonperforming Assets | 47,726 | 56,862 | 60,457 | |||||||||
Troubled Debt Restructurings (Nonaccruing) | 24,986 | 32,848 | 34,705 | |||||||||
Troubled Debt Restructurings (Accruing) | 109,250 | 110,320 | 109,265 | |||||||||
Total Troubled Debt Restructurings | $ | 134,236 | $ | 143,168 | $ | 143,970 | ||||||
Nonperforming Loans and Troubled Debt Restructurings to Total Portfolio Loans | 1.09 | % | 1.35 | % | 1.46 | % | ||||||
Nonperforming Assets to Total Portfolio Loans plus Other Real Estate Owned | 1.61 | % | 1.89 | % | 2.08 | % | ||||||
Allowance for Loan Losses to Total Portfolio Loans | 1.83 | % | 1.67 | % | 1.34 | % | ||||||
Allowance for Loan Losses to Nonperforming Loans | 168.96 | % | 123.52 | % | 92.00 | % | ||||||
Net Loan Charge-offs (Recoveries) | $ | 2,694 | $ | 1,982 | $ | 3,841 | ||||||
Net Loan Charge-offs (Recoveries) (Annualized) to Average Loans | 0.09 | % | 0.09 | % | 0.13 | % | ||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
ALLOWANCE FOR LOAN LOSSES
(Unaudited)
| Quarter-to-Date | Year-to-Date | |||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
(Dollars in Thousands) | 2020 | 2020 | 2019 | 2020 | 2019 | |||||||||||||||
Balance Beginning of Year | $ | 49,965 | $ | 47,405 | $ | 40,331 | $ | 38,762 | $ | 39,199 | ||||||||||
Provision for Loan Losses | 4,821 | 2,914 | (982 | ) | 18,006 | 3,404 | ||||||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial Real Estate | - | - | - | 40 | 69 | |||||||||||||||
Commercial and Industrial | 56 | - | 19 | 102 | 22 | |||||||||||||||
Obligations of State and Political Subdivisions | - | - | - | - | - | |||||||||||||||
Commercial Construction | - | - | - | - | 393 | |||||||||||||||
Residential Mortgages | 173 | - | - | 193 | 197 | |||||||||||||||
Other Consumer | 719 | 680 | 1,362 | 4,020 | 4,401 | |||||||||||||||
Consumer Construction | - | - | - | - | - | |||||||||||||||
Total Charge-offs | 948 | 680 | 1,381 | 4,355 | 5,082 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial Real Estate | - | - | - | 707 | - | |||||||||||||||
Commercial and Industrial | 70 | 119 | - | 191 | - | |||||||||||||||
Obligations of State and Political Subdivisions | - | - | - | - | - | |||||||||||||||
Commercial Construction | - | - | 630 | - | 630 | |||||||||||||||
Residential Mortgages | 26 | 1 | 9 | 27 | 9 | |||||||||||||||
Other Consumer | 140 | 206 | 155 | 736 | 602 | |||||||||||||||
Consumer Construction | - | - | - | - | - | |||||||||||||||
Total Recoveries | 236 | 326 | 794 | 1,661 | 1,241 | |||||||||||||||
Total Net Charge-offs | 712 | 354 | 587 | 2,694 | 3,841 | |||||||||||||||
Balance End of Year | $ | 54,074 | $ | 49,965 | $ | 38,762 | $ | 54,074 | $ | 38,762 | ||||||||||
CARTER BANKSHARES, INC.
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 | ||||||||||||||||||
| December 31, | September 30, | December 31, | December 31, | December 31, | ||||||||||||||||
| 2020 | 2020 | 2019 | 2020 | 2019 | ||||||||||||||||
Total Shareholders' Equity | $ | 440,174 | $ | 434,807 | $ | 473,111 | $ | 440,174 | $ | 473,111 | ||||||||||
Less: Goodwill | - | - | 62,192 | - | 62,192 | |||||||||||||||
Tangible Equity | $ | 440,174 | $ | 434,807 | $ | 410,919 | $ | 440,174 | $ | 410,919 | ||||||||||
Shares Outstanding at End of Period | 26,385,041 | 26,386,901 | 26,334,229 | 26,385,041 | 26,334,229 | |||||||||||||||
Tangible Book Value Per Common Share | $ | 16.68 | $ | 16.48 | $ | 15.60 | $ | 16.68 | $ | 15.60 | ||||||||||
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 | ||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||
2020 | 2020 | 2019 | 2020 | 2019 | ||
Interest Income | ||||||
Interest Expense | (7,349) | (8,550) | (11,333) | (35,826) | (46,773) | |
Net Interest Income | 26,153 | 25,436 | 28,426 | 105,115 | 112,347 | |
Tax Equivalent Adjustment3 | 549 | 598 | 638 | 2,375 | 3,046 | |
NET INTEREST INCOME (FTE) (Non-GAAP) | ||||||
Net Interest Income (Annualized) | 106,228 | 103,570 | 115,308 | 107,490 | 115,393 | |
Average Earning Assets | 3,913,223 | 3,874,948 | 3,766,205 | 3,833,681 | 3,788,634 | |
NET INTEREST MARGIN (FTE) (Non-GAAP) | ||||||
4Core Efficiency Ratio (Non-GAAP)
Quarter-to-Date | Year-to-Date | |||||
December 31, | September 30, | December 31, | December 31, | December 31, | ||
2020 | 2020 | 2019 | 2020 | 2019 | ||
NONINTEREST EXPENSE | ||||||
Less: Losses on Sales and Write-downs of Other Real Estate Owned, net | (78) | (1,305) | (4,163) | (1,435) | (4,732) | |
Less: Losses on Sales and Write-downs of Bank Premises, net | (11) | (17) | (165) | (99) | (188) | |
Less: Tax Credit Amortization | (272) | (272) | (576) | (1,088) | (2,265) | |
Plus: Contingent Liability | - | 144 | - | 144 | 331 | |
Less: Conversion Expense | - | - | - | - | (2) | |
Less: Goodwill Impairment | - | (62,192) | - | (62,192) | - | |
Plus: FDIC Assessment Credits | - | - | - | - | 1,056 | |
Less: Professional Fees | (201) | - | - | (201) | - | |
Plus: Vacation Accrual | (588) | 99 | (539) | (9) | 107 | |
CORE NONINTEREST EXPENSE (Non-GAAP) | ||||||
NET INTEREST INCOME | ||||||
Plus: Taxable Equivalent Adjustment3 | 549 | 598 | 638 | 2,375 | 3,046 | |
NET INTEREST INCOME (FTE) (Non-GAAP) | ||||||
Less: Gains on Sales of Securities, net | (959) | (2,388) | (606) | (6,882) | (2,205) | |
Less: Other Real Estate Owned Income | (61) | (58) | (72) | (340) | (689) | |
Less: Other Gains | - | - | - | (307) | (447) | |
Plus: Equity Method-Insurance One-Time Payout | 678 | - | - | 678 | - | |
Noninterest Income | 5,589 | 7,975 | 4,509 | 26,580 | 16,870 | |
CORE NET INTEREST INCOME (FTE) (Non-GAAP) plus NONINTEREST INCOME | ||||||
CORE EFFICIENCY RATIO (Non-GAAP) | ||||||
SOURCE: Carter Bankshares, Inc.
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https://www.accesswire.com/626231/Carter-Bankshares-Inc-Announces-Fourth-Quarter-2020-Financial-Results
FAQ
What were Carter Bankshares' earnings for Q4 2020?
How did the net income change compared to Q3 2020?
What is the total deposit amount reported for Carter Bankshares?
Did Carter Bankshares experience any changes in nonperforming loans?
What was the impact of the goodwill impairment charge?
