Carter Bankshares, Inc. Announces Record First Quarter 2023 Financial Results
Carter Bankshares, Inc. (NASDAQ:CARE) reported a record quarterly net income of $15.9 million, or $0.67 diluted EPS, for Q1 2023, marking an increase from $15.6 million in Q4 2022 and $9.3 million in Q1 2022. The return on average assets (ROA) was 1.51% and the return on average equity (ROE) was 18.89%. Total loans increased 12.9% annualized to $3.2 billion, while total deposits fell by $96.9 million. Despite a 1.8% decline in net interest income to $40.8 million, the company maintains a strong capital position. The provision for credit losses rose to $1.4 million due to loan growth, and the stock repurchase program announced aims to enhance shareholder value.
- Record quarterly net income of $15.9 million, or $0.67 diluted EPS.
- Return on average assets at 1.51% and return on average equity at 18.89%.
- Total portfolio loans increased by $100.0 million, or 12.9%, on an annualized basis.
- Total shareholders' equity increased by $26.3 million from December 31, 2022.
- Stock repurchase program to buy back up to one million shares.
- Total deposits decreased by $96.9 million compared to December 31, 2022.
- Net interest margin decreased nine basis points to 3.95% compared to Q4 2022.
- Noninterest income declined by $0.8 million, or 14.6%, from Q4 2022.
MARTINSVILLE, VA / ACCESSWIRE / April 27, 2023 / Carter Bankshares, Inc. (the "Company") (NASDAQ:CARE), the holding company of Carter Bank & Trust (the "Bank") today announced record quarterly net income of
First Quarter 2023 Financial Highlights
- Record quarterly net income of
$15.9 million , or$0.67 diluted EPS; - Annualized quarterly performance metrics were strong with return on average assets ("ROA") of
1.51% and return on average equity ("ROE") of18.89% ; - Net interest margin decreased nine basis points to
3.95% compared to the fourth quarter of 2022 and increased 107 basis points compared to the first quarter of 2022. Net interest income, decreased$0.7 million , or1.8% , to$40.8 million compared to the fourth quarter of 2022 primarily due to a 33 basis point increase in earning assets, offset by 56 basis point increase in funding costs; - Net interest margin, on a fully taxable equivalent basis ("FTE"), decreased nine basis points to
3.98% compared to the fourth quarter of 2022 and increased 107 basis points compared to the first quarter of 2022; - Total portfolio loans increased
$100.0 million , or12.9% , on an annualized basis, to$3.2 billion at March 31, 2023 compared to December 31, 2022; - Total deposits decreased
$96.9 million compared to December 31, 2022 and decreased$194.9 million compared to March 31, 2022; - Nonperforming loans to total portfolio loans were
0.26% ,0.21% and0.25% for the quarters ended March 31, 2023, December 31, 2022 and March 31, 2022, respectively; - Total shareholders' equity increased
$26.3 million from December 31, 2022; - The provision for credit losses totaled
$1.4 million for the quarter ended March 31, 2023 compared to$0.1 million for the quarter ended December 31, 2022; - Expenses continue to be well controlled with an efficiency ratio of
53.1% ,58.7% and67.1% , and a core efficiency ratio4 of52.5% ,59.5% , and66.3% for the quarters ended March 31, 2023, December 31, 2022 and March 31, 2022, respectively.
"We are very pleased with the solid first quarter 2023 financial results, which represent another record level for our Company. While our Net Interest Margin remained strong for the quarter, we do see mounting pressure on funding costs that we expect will impact our margin in coming quarters. We believe that continued positive trends in loan growth and expense control will help support earnings in the near term. We are monitoring asset quality very closely and did not see any meaningful deterioration at March 31, 2023. During the first quarter, loans grew by an annualized rate of
Van Dyke continued, "In light of recent market events and concerns regarding the banking industry, I want to assure our investors, our customers and the market that our Company continues to be financially sound with strong capital and liquidity levels, both of which position us for continued prosperity. Additionally, we believe our balance sheet structure will allow us to effectively manage our capital and liquidity levels through any industry or economic challenges that may emerge in the coming quarters."
Van Dyke also added, "On March 29, 2023, effective May 1, 2023, we announced a stock repurchase program to purchase up to one million shares of the Company's common stock over the next twelve months, subject to non-objection from the Federal Reserve Bank of Richmond, which was received on April 24, 2023. Given our strong capital position, we believe that this program is the most prudent way to generate shareholder value and increase our Company's valuation."
Operating Highlights
Net Interest Income
Net interest income decreased
The Company continues to benefit from the rising rate environment. However, beginning in the first quarter of 2023, we started to see more pressure on our cost of funds due to the shift from deposits to higher-cost borrowings, which may negatively impact our net interest margin in future periods. Positively impacting the first quarter of 2023 was the asset sensitivity of our balance sheet. Yields on a large portion of our loan and securities portfolios adjust as rates move up. This positively impacts revenue and helps offset increased funding costs.
Credit Quality
Nonperforming loans as a percentage of total portfolio loans were
The provision for credit losses increased
Noninterest Income
For the first quarter of 2023, total noninterest income was
The decrease of
As compared to the first quarter of 2022 the decrease of
Noninterest Expense
For the first quarter of 2023, total noninterest expense of
As compared to the fourth quarter of 2022, professional and legal fees decreased
As compared to the first quarter of 2022, the increased level of noninterest expense was primarily driven by higher salaries and employee benefits of
Financial Condition
Total assets were
Total deposits decreased of
At March 31, 2023, noninterest-bearing deposits comprised
Capitalization and Liquidity
The Company remained well capitalized as of March 31, 2023. The Company's Tier 1 Capital ratio was
The Bank also remained well capitalized as of March 31, 2023. The Bank's Tier 1 Capital ratio was
Total capital increased
At March 31, 2023, funding sources accessible to the Company include borrowing availability at the FHLB, equal to
In response to the recent failures of three large banks, the Treasury Department, Federal Reserve, and FDIC jointly announced the Bank Term Funding Program ("BTFP") on March 12, 2023. This program aims to enhance liquidity by allowing institutions to pledge certain securities at the par value of the securities, and at a borrowing rate of ten basis points over the one-year overnight index swap rate. The BTFP is available to eligible U.S. federally insured depository institutions, with advances having a term of up to one year and no prepayment penalties. As of the date of this earning release, the Company has approximately
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 press release contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements made in Mr. Van Dyke's quotes and statements relating to our financial condition, market conditions, 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.
These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumption that are difficult to predict and often are beyond the Company's control. 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 including, but not limited to the effects of:
- market interest rates and the impacts of market interest rates on economic conditions, customer behavior, and the Company's loan and securities portfolios;
- inflation, market and monetary fluctuations;
- changes in trade, monetary and fiscal policies and laws of the U.S. government, including policies of the Federal Reserve, FDIC and Treasury Department;
- changes in accounting policies, practices, or guidance, for example, our adoption of Current Expected Credit Losses ("CECL") methodology, including potential volatility in the Company's operating results due to application of the CECL methodology;
- cyber-security threats, attacks or events; rapid technological developments and changes;
- changes in the Company's liquidity and capital positions;
- concentrations of loans secured by real estate, particularly commercial real estate, and the potential impacts of changes in market conditions on the value of real estate collateral;
- an insufficient allowance for credit losses;
- the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, war and other military conflicts (such as the ongoing war between Russia and Ukraine) or public health events (such as the 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;
- a change in spreads on interest-earning assets and interest-bearing liabilities;
- regulatory supervision and oversight, including our relationship with regulators and any actions that may be initiated by our regulators;
- legislation affecting the financial services industry as a whole (such as the Inflation Reduction Act of 2022), and the Company and the Bank, in particular;
- the outcome of pending and future litigations and/or 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;
- the soundness of other financial institutions and any indirect exposure related to the closings of Silicon Valley Bank ("SVB"), Signature Bank and Silvergate Bank and their impact on the broader market through other customers, suppliers and partners or that the conditions which resulted in the liquidity concerns with SVB, Signature Bank and Silvergate Bank may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships with;
- 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;
- significant weakening of the local economies in which we operate;
- changes in customer behaviors, including consumer spending, borrowing and saving habits;
- changes in deposit flows and loan demand;
- our failure to attract or retain key employees;
- expansions or consolidations in the Company's branch network, 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; and
- 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 including in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2022. All risk factors and uncertainties described herein and therein should be considered in evaluating the Company's forward-looking statements. 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 are expressed in or implied by a forward-looking statement 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, revise or clarify 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, 2023 | December 31, 2022 | March 31, 2022 | ||||||||||
(Dollars in Thousands, except per share data) | (unaudited) | (audited) | (unaudited) | |||||||||
ASSETS | ||||||||||||
Cash and Due From Banks, including Interest-Bearing Deposits of | $ | 81,378 | $ | 46,869 | $ | 108,036 | ||||||
Securities Available-for-Sale, at Fair Value | 862,856 | 836,273 | 982,041 | |||||||||
Loans Held-for-Sale | 364 | - | 196 | |||||||||
Portfolio Loans | 3,248,898 | 3,148,913 | 2,894,004 | |||||||||
Allowance for Credit Losses | (94,694 | ) | (93,852 | ) | (96,376 | ) | ||||||
Portfolio Loans, net | 3,154,204 | 3,055,061 | 2,797,628 | |||||||||
Bank Premises and Equipment, net | 72,495 | 72,114 | 73,402 | |||||||||
Other Real Estate Owned, net | 8,291 | 8,393 | 11,253 | |||||||||
Federal Home Loan Bank Stock, at Cost | 20,593 | 9,740 | 2,067 | |||||||||
Bank Owned Life Insurance | 57,073 | 56,734 | 55,712 | |||||||||
Other Assets | 108,295 | 119,335 | 92,891 | |||||||||
Total Assets | $ | 4,365,549 | $ | 4,204,519 | $ | 4,123,226 | ||||||
LIABILITIES | ||||||||||||
Deposits: | ||||||||||||
Noninterest-Bearing Demand | $ | 687,333 | $ | 703,334 | $ | 708,353 | ||||||
Interest-Bearing Demand | 500,749 | 496,948 | 480,192 | |||||||||
Money Market | 430,938 | 484,238 | 526,838 | |||||||||
Savings | 606,976 | 684,287 | 728,425 | |||||||||
Certificates of Deposit | 1,307,411 | 1,261,526 | 1,284,470 | |||||||||
Total Deposits | 3,533,407 | 3,630,333 | 3,728,278 | |||||||||
Federal Home Loan Bank Borrowings | 435,135 | 180,550 | - | |||||||||
Federal Funds Purchased | - | 17,870 | - | |||||||||
Other Liabilities | 42,127 | 47,139 | 36,392 | |||||||||
Total Liabilities | 4,010,669 | 3,875,892 | 3,764,670 | |||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Common Stock, Par Value | ||||||||||||
23,895,543 outstanding at March 31, 2023, | ||||||||||||
23,956,772 outstanding at December 31, 2022 and 24,986,726 at March 31, 2022 | 23,896 | 23,957 | 24,987 | |||||||||
Additional Paid-in Capital | 102,814 | 104,693 | 121,045 | |||||||||
Retained Earnings | 301,534 | 285,593 | 244,798 | |||||||||
Accumulated Other Comprehensive Loss | (73,364 | ) | (85,616 | ) | (32,274 | ) | ||||||
Total Shareholders' Equity | 354,880 | 328,627 | 358,556 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 4,365,549 | $ | 4,204,519 | $ | 4,123,226 | ||||||
PERFORMANCE RATIOS | ||||||||||||
Return on Average Assets (QTD Annualized) | 1.51 | % | 1.49 | % | 0.92 | % | ||||||
Return on Average Assets (YTD Annualized) | 1.51 | % | 1.21 | % | 0.92 | % | ||||||
Return on Average Shareholders' Equity (QTD Annualized) | 18.89 | % | 19.32 | % | 9.57 | % | ||||||
Return on Average Shareholders' Equity (YTD Annualized) | 18.89 | % | 14.30 | % | 9.57 | % | ||||||
Portfolio Loans to Deposit Ratio | 91.95 | % | 86.74 | % | 77.62 | % | ||||||
Allowance for Credit Losses to Total Portfolio Loans | 2.91 | % | 2.98 | % | 3.33 | % | ||||||
CAPITALIZATION RATIOS | ||||||||||||
Shareholders' Equity to Assets | 8.13 | % | 7.82 | % | 8.70 | % | ||||||
Tier 1 Leverage Ratio | 10.09 | % | 10.29 | % | 10.00 | % | ||||||
Risk-Based Capital - Tier 1 | 12.28 | % | 12.61 | % | 12.98 | % | ||||||
Risk-Based Capital - Total | 13.54 | % | 13.86 | % | 14.24 | % | ||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
INCOME STATEMENTS
| Quarter-to-Date | ||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | ||||||||||
(Dollars in Thousands, except per share data) | (unaudited) | (audited) | (unaudited) | |||||||||
Interest Income | $ | 51,955 | $ | 48,216 | $ | 32,678 | ||||||
Interest Expense | 11,170 | 6,694 | 4,456 | |||||||||
NET INTEREST INCOME | 40,785 | 41,522 | 28,222 | |||||||||
Provision for Credit Losses | 1,415 | 52 | 630 | |||||||||
Provision (Recovery) for Unfunded Commitments | 84 | 319 | (236 | ) | ||||||||
NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR CREDIT LOSSES | 39,286 | 41,151 | 27,828 | |||||||||
NONINTEREST INCOME | ||||||||||||
Losses on Sales of Securities, net | (12 | ) | (2 | ) | (24 | ) | ||||||
Service Charges, Commissions and Fees | 1,838 | 1,716 | 1,953 | |||||||||
Debit Card Interchange Fees | 2,105 | 1,857 | 1,932 | |||||||||
Insurance Commissions | 174 | 248 | 269 | |||||||||
Bank Owned Life Insurance Income | 339 | 348 | 334 | |||||||||
(Losses) Gains on Sales and Write-downs of Bank Premises, net | - | (269 | ) | 383 | ||||||||
Other Real Estate Owned Income | 16 | 15 | 10 | |||||||||
Commercial Loan Swap Fee Income | 116 | - | - | |||||||||
Other | 159 | 1,631 | 478 | |||||||||
TOTAL NONINTEREST INCOME | 4,735 | 5,544 | 5,335 | |||||||||
NONINTEREST EXPENSE | ||||||||||||
Salaries and Employee Benefits | 13,652 | 14,678 | 11,757 | |||||||||
Occupancy Expense, net | 3,400 | 3,467 | 3,352 | |||||||||
FDIC Insurance Expense | 641 | 475 | 368 | |||||||||
Other Taxes | 804 | 848 | 804 | |||||||||
Advertising Expense | 339 | 560 | 239 | |||||||||
Telephone Expense | 427 | 391 | 488 | |||||||||
Professional and Legal Fees | 834 | 2,087 | 1,219 | |||||||||
Data Processing | 720 | 1,535 | 841 | |||||||||
Losses on Sales and Write-downs of Other Real Estate Owned, net | - | 164 | 159 | |||||||||
Losses on Sales and Write-downs of Bank Premises, net | 33 | - | - | |||||||||
Debit Card Expense | 479 | 661 | 633 | |||||||||
Tax Credit Amortization | 612 | 155 | 615 | |||||||||
Other Real Estate Owned Expense | 29 | 123 | 41 | |||||||||
Other | 2,218 | 2,473 | 1,995 | |||||||||
TOTAL NONINTEREST EXPENSE | 24,188 | 27,617 | 22,511 | |||||||||
INCOME BEFORE INCOME TAXES | 19,833 | 19,078 | 10,652 | |||||||||
Income Tax Provision | 3,892 | 3,469 | 1,329 | |||||||||
NET INCOME | $ | 15,941 | $ | 15,609 | $ | 9,323 | ||||||
Shares Outstanding, at End of Period | 23,895,543 | 23,956,772 | 24,986,726 | |||||||||
Average Shares Outstanding-Basic & Diluted | 23,770,481 | 23,907,447 | 25,740,636 | |||||||||
PER SHARE DATA | ||||||||||||
Basic Earnings Per Common Share* | $ | 0.67 | $ | 0.65 | $ | 0.36 | ||||||
Diluted Earnings Per Common Share* | $ | 0.67 | $ | 0.65 | $ | 0.36 | ||||||
Book Value | $ | 14.85 | $ | 13.72 | $ | 14.35 | ||||||
Market Value | $ | 14.00 | $ | 16.59 | $ | 17.37 | ||||||
PROFITABILITY RATIOS (non-GAAP) | ||||||||||||
Net Interest Margin (FTE)3 | 3.98 | % | 4.07 | % | 2.91 | % | ||||||
Core Efficiency Ratio4 | 52.51 | % | 59.49 | % | 66.35 | % | ||||||
*All outstanding unvested restricted stock awards are considered participating securities for the earnings per share calculation. As such, these shares have been allocated to a portion of net income and are excluded from the diluted earnings per share calculation.
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
NET INTEREST MARGIN (FTE) (QTD AVERAGES)
(Unaudited)
| March 31, 2023 | December 31, 2022 | March 31, 2022 | ||||||||||||||||||||||||||
(Dollars in Thousands) | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Interest-Bearing Deposits with Banks | $ | 16,135 | $ | 200 | 5.03 | % | $ | 9,074 | $ | 84 | 3.67 | % | $ | 140,080 | $ | 62 | 0.18 | % | ||||||||||
Tax-Free Investment Securities3 | 29,094 | 205 | 2.86 | % | 29,876 | 214 | 2.84 | % | 26,579 | 211 | 3.22 | % | ||||||||||||||||
Taxable Investment Securities | 920,633 | 7,393 | 3.26 | % | 924,148 | 6,680 | 2.87 | % | 960,645 | 3,732 | 1.58 | % | ||||||||||||||||
Total Securities | 949,727 | 7,598 | 3.24 | % | 954,024 | 6,894 | 2.87 | % | 987,224 | 3,943 | 1.62 | % | ||||||||||||||||
Tax-Free Loans3 | 132,742 | 1,053 | 3.22 | % | 136,441 | 1,089 | 3.17 | % | 154,117 | 1,206 | 3.17 | % | ||||||||||||||||
Taxable Loans | 3,073,351 | 43,128 | 5.69 | % | 2,967,780 | 40,334 | 5.39 | % | 2,690,781 | 27,745 | 4.18 | % | ||||||||||||||||
Total Loans | 3,206,093 | 44,181 | 5.59 | % | 3,104,221 | 41,423 | 5.29 | % | 2,844,898 | 28,951 | 4.13 | % | ||||||||||||||||
Federal Home Loan Bank Stock | 14,209 | 240 | 6.85 | % | 6,304 | 88 | 5.54 | % | 2,139 | 20 | 3.79 | % | ||||||||||||||||
Total Interest-Earning Assets | 4,186,164 | 52,219 | 5.06 | % | 4,073,623 | 48,489 | 4.72 | % | 3,974,341 | 32,976 | 3.36 | % | ||||||||||||||||
Noninterest Earning Assets | 91,434 | 84,580 | 154,971 | |||||||||||||||||||||||||
Total Assets | $ | 4,277,598 | $ | 4,158,203 | $ | 4,129,312 | ||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||
Interest-Bearing Demand | $ | 490,615 | $ | 497 | 0.41 | % | $ | 504,796 | $ | 496 | 0.39 | % | $ | 463,980 | $ | 277 | 0.24 | % | ||||||||||
Money Market | 476,798 | 1,254 | 1.07 | % | 493,700 | 853 | 0.69 | % | 510,286 | 284 | 0.23 | % | ||||||||||||||||
Savings | 642,115 | 165 | 0.10 | % | 709,435 | 183 | 0.10 | % | 705,759 | 178 | 0.10 | % | ||||||||||||||||
Certificates of Deposit | 1,281,598 | 5,603 | 1.77 | % | 1,249,717 | 3,804 | 1.21 | % | 1,308,799 | 3,660 | 1.13 | % | ||||||||||||||||
Total Interest-Bearing Deposits | 2,891,126 | 7,519 | 1.05 | % | 2,957,648 | 5,336 | 0.72 | % | 2,988,824 | 4,399 | 0.60 | % | ||||||||||||||||
Federal Home Loan Bank Borrowings | 285,563 | 3,395 | 4.82 | % | 106,617 | 1,116 | 4.15 | % | 1,400 | 6 | 1.74 | % | ||||||||||||||||
Federal Funds Purchased | 14,349 | 176 | 4.97 | % | 16,227 | 161 | 3.94 | % | - | - | - | % | ||||||||||||||||
Other Borrowings | 6,448 | 80 | 5.03 | % | 6,621 | 81 | 4.85 | % | 4,358 | 51 | 4.75 | % | ||||||||||||||||
Total Borrowings | 306,360 | 3,651 | 4.83 | % | 129,465 | 1,358 | 4.16 | % | 5,758 | 57 | 4.01 | % | ||||||||||||||||
Total Interest-Bearing Liabilities | 3,197,486 | 11,170 | 1.42 | % | 3,087,113 | 6,694 | 0.86 | % | 2,994,582 | 4,456 | 0.60 | % | ||||||||||||||||
Noninterest-Bearing Liabilities | 737,857 | 750,620 | 739,556 | |||||||||||||||||||||||||
Shareholders' Equity | 342,255 | 320,470 | 395,174 | |||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 4,277,598 | $ | 4,158,203 | $ | 4,129,312 | ||||||||||||||||||||||
Net Interest Income3 | $ | 41,049 | $ | 41,795 | $ | 28,520 | ||||||||||||||||||||||
Net Interest Margin3 | 3.98 | % | 4.07 | % | 2.91 | % | ||||||||||||||||||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
LOANS AND LOANS HELD-FOR-SALE
(Unaudited)
(Dollars in Thousands) | March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
Commercial | ||||||||||||
Commercial Real Estate | $ | 1,575,675 | $ | 1,470,562 | $ | 1,343,206 | ||||||
Commercial and Industrial | 290,293 | 309,792 | 345,345 | |||||||||
Total Commercial Loans | 1,865,968 | 1,780,354 | 1,688,551 | |||||||||
Consumer | ||||||||||||
Residential Mortgages | 675,340 | 657,948 | 483,382 | |||||||||
Other Consumer | 41,308 | 44,562 | 43,288 | |||||||||
Total Consumer Loans | 716,648 | 702,510 | 526,670 | |||||||||
Construction | 361,003 | 353,553 | 321,190 | |||||||||
Other | 305,279 | 312,496 | 357,593 | |||||||||
Total Portfolio Loans | 3,248,898 | 3,148,913 | 2,894,004 | |||||||||
Loans Held-for-Sale | 364 | - | 196 | |||||||||
Total Loans | $ | 3,249,262 | $ | 3,148,913 | $ | 2,894,200 | ||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
ASSET QUALITY DATA
(Unaudited)
(Dollars in Thousands) | March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
Nonperforming Loans | ||||||||||||
Commercial Real Estate | $ | 2,050 | $ | 2,304 | $ | 3,279 | ||||||
Commercial and Industrial | 141 | 204 | 208 | |||||||||
Residential Mortgages | 3,231 | 3,265 | 2,816 | |||||||||
Other Consumer | 5 | 8 | 20 | |||||||||
Construction | 2,941 | 864 | 974 | |||||||||
Other | - | - | - | |||||||||
Total Nonperforming Loans | 8,368 | 6,645 | 7,297 | |||||||||
Other Real Estate Owned | 8,291 | 8,393 | 11,253 | |||||||||
Total Nonperforming Assets | $ | 16,659 | $ | 15,038 | $ | 18,550 | ||||||
| Nonperforming Loans to Total Portfolio Loans | 0.26 | % | 0.21 | % | 0.25 | % | ||||||
| Nonperforming Assets to Total Portfolio Loans plus Other Real Estate Owned | 0.51 | % | 0.48 | % | 0.64 | % | ||||||
| Allowance for Credit Losses to Total Portfolio Loans | 2.91 | % | 2.98 | % | 3.33 | % | ||||||
| Allowance for Credit Losses to Nonperforming Loans | 1131.62 | % | 1412.37 | % | 1320.76 | % | ||||||
| Net Loan Charge-offs (Recoveries) QTD | $ | 573 | $ | 364 | $ | 193 | ||||||
| Net Loan Charge-offs (Recoveries) YTD | $ | 573 | $ | 4,506 | $ | 193 | ||||||
| Net Loan Charge-offs (Recoveries) (Annualized) to Average Portfolio Loans QTD | 0.07 | % | 0.05 | % | 0.03 | % | ||||||
| Net Loan Charge-offs (Recoveries) (Annualized) to Average Portfolio Loans YTD | 0.07 | % | 0.15 | % | 0.03 | % | ||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
ALLOWANCE FOR CREDIT LOSSES
(Unaudited)
| Quarter-to-Date | ||||||||||||
(Dollars in Thousands) | March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
Balance Beginning of Year | $ | 93,852 | $ | 94,164 | $ | 95,939 | ||||||
Provision for Credit Losses | 1,415 | 52 | 630 | |||||||||
Charge-offs: | ||||||||||||
Commercial Real Estate | - | - | - | |||||||||
Commercial and Industrial | 1 | 4 | - | |||||||||
Residential Mortgages | 3 | 1 | 17 | |||||||||
Other Consumer | 657 | 433 | 435 | |||||||||
Construction | - | - | - | |||||||||
Other | - | - | - | |||||||||
Total Charge-offs | 661 | 438 | 452 | |||||||||
Recoveries: | ||||||||||||
Commercial Real Estate | - | - | - | |||||||||
Commercial and Industrial | - | - | 1 | |||||||||
Residential Mortgages | 1 | 2 | - | |||||||||
Other Consumer | 87 | 72 | 109 | |||||||||
Construction | - | - | 149 | |||||||||
Other | - | - | - | |||||||||
Total Recoveries | 88 | 74 | 259 | |||||||||
Total Net Charge-offs | 573 | 364 | 193 | |||||||||
Balance End of Period | $ | 94,694 | $ | 93,852 | $ | 96,376 | ||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
DEFINITIONS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES:
(Unaudited)
1 Pre-tax Pre-provision Income (Non-GAAP) | Quarter-to-Date | |||||||||||
(Dollars in Thousands) | March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
Net Interest Income | $ | 40,785 | $ | 41,522 | $ | 28,222 | ||||||
Noninterest Income | 4,735 | 5,544 | 5,335 | |||||||||
Noninterest Expense | 24,188 | 27,617 | 22,511 | |||||||||
Pre-tax Pre-provision Income | 21,332 | 19,449 | 11,046 | |||||||||
Losses on Sales of Securities, net | 12 | 2 | 24 | |||||||||
Losses (Gains) on Sales and Write-downs of Bank Premises, net | 33 | 269 | (383 | ) | ||||||||
Losses on Sales and Write-downs of OREO, net | - | 164 | 159 | |||||||||
Non-recurring Fees5 | - | - | (65 | ) | ||||||||
OREO Income | (16 | ) | (15 | ) | (10 | ) | ||||||
FHLB Prepayment Penalty | - | - | 18 | |||||||||
Contingent Liability | 115 | 35 | 160 | |||||||||
Gain on Loans Held-for-Sale | - | (295 | ) | - | ||||||||
Gain on Tax Credit Exits | - | (1,209 | ) | - | ||||||||
Core Pre-tax Pre-provision Income (Non-GAAP) | $ | 21,476 | $ | 18,400 | $ | 10,949 | ||||||
| 2 Core Net Income (Non-GAAP) | Quarter-to-Date | |||||||||||
| (Dollars in Thousands, except per share data) | March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
| Net Income | $ | 15,941 | $ | 15,609 | $ | 9,323 | ||||||
| Losses on Sales of Securities, net | 12 | 2 | 24 | |||||||||
| Losses (Gains) on Sales and Write-downs of Bank Premises, net | 33 | 269 | (383 | ) | ||||||||
| Losses on Sales and Write-downs of OREO, net | - | 164 | 159 | |||||||||
| Non-recurring Fees5 | - | - | (65 | ) | ||||||||
| OREO Income | (16 | ) | (15 | ) | (10 | ) | ||||||
| FHLB Prepayment Penalty | - | - | 18 | |||||||||
| Contingent Liability | 115 | 35 | 160 | |||||||||
| Gain on Loans Held-for-Sale | - | (295 | ) | - | ||||||||
| Gain on Tax Credit Exits | - | (1,209 | ) | - | ||||||||
| Total Tax Effect | (30 | ) | 220 | 20 | ||||||||
Core Net Income (Non-GAAP) | $ | 16,055 | $ | 14,780 | $ | 9,246 | ||||||
| Average Shares Outstanding - diluted | 23,770,481 | 23,907,447 | 25,740,636 | |||||||||
Core Earnings Per Common Share (diluted) (Non-GAAP) | $ | 0.68 | $ | 0.62 | $ | 0.36 | ||||||
3 Computed on a fully taxable equivalent basis ("FTE") using a
Net Interest Income (FTE) (Non-GAAP) | Quarter-to-Date | |||||||||||
(Dollars in Thousands) | March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
Interest Income (FTE)(Non-GAAP) | ||||||||||||
Interest and Dividend Income (GAAP) | $ | 51,955 | $ | 48,216 | $ | 32,678 | ||||||
Tax Equivalent Adjustment3 | 264 | 273 | 298 | |||||||||
Interest and Dividend Income (FTE) (Non-GAAP) | 52,219 | 48,489 | 32,976 | |||||||||
Average Earning Assets | 4,186,164 | 4,073,623 | 3,974,341 | |||||||||
Yield on Interest-earning Assets (GAAP) | 5.03 | % | 4.70 | % | 3.33 | % | ||||||
Yield on Interest-earning Assets (FTE) (Non-GAAP) | 5.06 | % | 4.72 | % | 3.36 | % | ||||||
Net Interest Income (GAAP) | $ | 40,785 | $ | 41,522 | $ | 28,222 | ||||||
Tax Equivalent Adjustment3 | 264 | 273 | 298 | |||||||||
Net Interest Income (FTE) (Non-GAAP) | 41,049 | 41,795 | 28,520 | |||||||||
Average Earning Assets | 4,186,164 | 4,073,623 | 3,974,341 | |||||||||
Net Interest Margin (GAAP) | 3.95 | % | 4.04 | % | 2.88 | % | ||||||
Net Interest Margin (FTE) (Non-GAAP) | 3.98 | % | 4.07 | % | 2.91 | % | ||||||
4 Core Efficiency Ratio (Non-GAAP) | Quarter-to-Date | |||||||||||
(Dollars in Thousands) | March 31, 2023 | December 31, 2022 | March 31, 2022 | |||||||||
EFFICIENCY RATIO (GAAP) | 53.14 | % | 58.68 | % | 67.08 | % | ||||||
NONINTEREST EXPENSE | $ | 24,188 | $ | 27,617 | $ | 22,511 | ||||||
Less: Losses on Sales and Write-downs of OREO, net | - | (164 | ) | (159 | ) | |||||||
Less: Losses on Sales and Write-downs of Bank Premises, net | (33 | ) | - | - | ||||||||
Less: FHLB Prepayment Penalty | - | - | (18 | ) | ||||||||
Less: Contingent Liability | (115 | ) | (35 | ) | (160 | ) | ||||||
CORE NONINTEREST EXPENSE (Non-GAAP) | $ | 24,040 | $ | 27,418 | $ | 22,174 | ||||||
NET INTEREST INCOME | $ | 40,785 | $ | 41,522 | $ | 28,222 | ||||||
Plus: Taxable Equivalent Adjustment3 | 264 | 273 | 298 | |||||||||
NET INTEREST INCOME (FTE) (Non-GAAP) | 41,049 | 41,795 | 28,520 | |||||||||
Less: Losses on Sales of Securities, net | 12 | 2 | 24 | |||||||||
Less: Losses (Gains) on Sales of Bank Premises, net | - | 269 | (383 | ) | ||||||||
Less: Non-recurring Fees5 | - | - | (65 | ) | ||||||||
Less: OREO Income | (16 | ) | (15 | ) | (10 | ) | ||||||
Gain on Loans Held-for-Sale | - | (295 | ) | - | ||||||||
Gain on Tax Credit Exits | - | (1,209 | ) | - | ||||||||
Noninterest Income | 4,735 | 5,544 | 5,335 | |||||||||
CORE NET INTEREST INCOME (FTE) (Non-GAAP) plus NONINTEREST INCOME | $ | 45,780 | $ | 46,091 | $ | 33,421 | ||||||
CORE EFFICIENCY RATIO (Non-GAAP) | 52.51 | % | 59.49 | % | 66.35 | % | ||||||
5 The Non-recurring fees include PPP related fees.
SOURCE: Carter Bankshares, Inc.
View source version on accesswire.com:
https://www.accesswire.com/751367/Carter-Bankshares-Inc-Announces-Record-First-Quarter-2023-Financial-Results
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