Business
Carter Bankshares, Inc. Announces Third Quarter 2021 Financial Results
MARTINSVILLE, VA / ACCESSWIRE / October 28, 2021 / 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 / October 28, 2021 / Carter Bankshares, Inc. (the \"Company\") (NASDAQ:CARE), the holding company of Carter Bank & Trust (the \"Bank\") today announced net income of $11.2 million, or $0.42 diluted earnings per share, for the third quarter of 2021 compared to net income of $5.4 million, or $0.21 diluted earnings per share, in the second quarter of 2021 and a net loss of $57.7 million, or $2.19 per share, for the third quarter of 2020. A loss of $57.7 million was recognized during the third quarter of 2020 related to a one-time charge resulting from goodwill impairment. This impairment charge reduced net income by $62.2 million, resulting in a net loss for the third quarter of 2020. The quarterly pre-tax pre-provision income 1 , which excludes, among other things, the one-time goodwill impairment charge, were $9.6 million for the quarter ended September 30, 2021, $7.7 million for the quarter ended June 30, 2021 and $7.1 million for the quarter ended September 30, 2020.For the nine months ended September 30, 2021, net income was $26.0 million, or $0.98 diluted earnings per share, compared to a net loss of $48.8 million, or $1.85 per share for the first nine months ended September 30, 2020. Net income for the nine months ended September 30, 2020, excluding the one-time goodwill impairment charge, was $13.4 million, or $0.51 diluted earnings per share. Pre-tax pre-provision income 1 were $25.4 million for the nine months ended September 30, 2021 and $22.4 million for the nine months ended September 30, 2020 excluding the goodwill impairment charge.Third Quarter 2021 Financial HighlightsIn August 2021, the Bank reached an agreement with West Virginia Governor James C. Justice, II, members of his family and related entities (the \"Justice Parties\") to restructure certain loans to the Justice Parties. In connection with this agreement, on September 8, 2021, the lawsuit filed by the Justice Parties was dismissed with prejudice. The Bank's loans to the Justice Parties were restructured with improved economic terms and an improved collateral position via cross collateralization. In addition, the Justice Parties executed documents that reaffirm the legality and binding nature of all of their loan documents and waive any causes of action they might have against the Bank; Nonperforming loans declined $0.7 milli...