Business
Carter Bankshares, Inc. Announces Second Quarter 2023 Financial Results
MARTINSVILLE, VA / ACCESSWIRE / July 27, 2023 / Carter Bankshares, Inc. (the "Company") (NASDAQ:CARE), the holding company of Carter Bank & Trust (the "Bank")
About this update from Carter Bankshares, Inc.
[{"type":"text","content":"MARTINSVILLE, VA / ACCESSWIRE / July 27, 2023 / Carter Bankshares, Inc. (the \"Company\") (NASDAQ:CARE), the holding company of Carter Bank & Trust (the \"Bank\") today announced quarterly net income of $5.7 million, or $0.24 diluted earnings per share (\"EPS\"), for the second quarter of 2023 compared to net income of $15.9 million, or $0.67 diluted EPS, in the first quarter of 2023 and net income of $10.8 million, or $0.44 diluted EPS, for the second quarter of 2022. The pre-tax pre-provision income 1 was $6.2 million for the quarter ended June 30, 2023, $21.3 million for the quarter ended March 31, 2023 and $14.7 million for the quarter ended June 30, 2022.For the six months ended June 30, 2023, net income was $21.6 million, or $0.91 diluted EPS, compared to net income of $20.1 million, or $0.80 diluted EPS for the same period in 2022. Pre-tax pre-provision earnings 1 were $28.1 million and $25.7 million for the six months ended June 30, 2023 and 2022, respectively.The Company's financial results for the second quarter of 2023, compared to the prior quarter and the prior year quarter, were significantly impacted by placing loans contained in the Bank's Other segment with an aggregate principal value of $301.9 million on nonaccrual status which had a $11.3 million negative impact on interest income for the second quarter of 2023.Financial Highlights for the Three and Six Months Ended June 30, 2023Quarterly and year-to-date net income of $5.7 million, or $0.24 diluted EPS and $21.6 million, or $0.91 diluted EPS, respectively;Annualized quarterly return on average assets (\"ROA\") of 0.52% and annualized quarterly return on average equity (\"ROE\") of 6.38% and annualized year-to-date ROA and ROE of 1.01% and 12.45%, respectively;Net interest income, decreased $14.1 million, or 34.5%, to $26.7 million compared to the first quarter of 2023 primarily due to a 92 basis point decrease in the yield on earning assets, and by a 66 basis point increase in funding costs and compared to the second quarter of 2022 decreased $5.7 million, or 17.7% primarily due to a 42 basis point increase in earning assets and by a 149 basis point increase in funding costs;Net interest margin decreased 144 basis points to 2.51% compared to the first quarter of 2023, and decreased 73 basis points compared to the second quarter of 2022. Net interest margin, ...