Business
Carter Bankshares, Inc. Announces Fourth Quarter and Full Year 2021 Financial Results
MARTINSVILLE, VA / ACCESSWIRE / January 27, 2022 / Carter Bankshares, Inc. (the "Company") (NASDAQ:CARE), the holding company of Carter Bank & Trust (the
About this update from Carter Bankshares, Inc.
[{"type":"text","content":"MARTINSVILLE, VA / ACCESSWIRE / January 27, 2022 / Carter Bankshares, Inc. (the \"Company\") (NASDAQ:CARE), the holding company of Carter Bank & Trust (the \"Bank\") today announced net income of $5.6 million, or $0.21 diluted earnings per share, for the fourth quarter of 2021 compared to net income of $11.2 million, or $0.42 diluted earnings per share, in the third quarter of 2021 and $2.9 million, or $0.11 diluted earnings per share, for the fourth quarter of 2020. The quarterly pre-tax pre-provision income 1 was $7.6 million for the quarter ended December 31, 2021, $11.6 million for the quarter ended September 30, 2021 and $7.9 million for the quarter ended December 31, 2020.Fourth Quarter 2021 Financial HighlightsNonperforming loans (\"NPL\") declined $1.5 million, or 16.6%, to $7.4 million at December 31, 2021 compared to September 30, 2021, primarily due to paydowns from borrower asset sales of $2.4 million and $1.9 million of charge-offs recognized on two credits within one relationship. The decline during the quarter was offset by new NPLs totaling $2.8 million, of which $2.7 million related to one loan. NPLs as a percentage of total portfolio loans were 0.26% at December 31, 2021 compared to 0.31% at September 30, 2021;The provision for credit losses totaled $0.9 million for the quarter ended December 31, 2021, compared to $(0.4) million for the quarter ended September 30, 2021. The increase primarily relates to $0.5 million of charge-offs that were not previously reserved due to the sale of two notes in the fourth quarter of 2021. Also impacting the change was a decline in the valuation on one individually evaluated loan of $0.5 million. The provision in the third quarter of 2021 was attributable to the sale of nine notes within two performing relationships that had been previously reserved;Net interest income decreased $1.4 million, or 4.6%, to $28.1 million compared to the third quarter of 2021 primarily due to late charges of $0.9 million collected during the third quarter of 2021, offset by an eight basis point decrease in funding costs;Net interest margin, on a fully taxable equivalent basis 3 (\"FTE\"), decreased 14 basis points to 2.82% compared to 2.96% for the third quarter of 2021 primarily due to the aforementioned late charges, which accounted for 10 basis points of the decline;Total deposits increased $32....