Business
Carter Bankshares, Inc. Announces Third Quarter 2023 Financial Results
MARTINSVILLE, VA / ACCESSWIRE / October 26, 2023 / 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 26, 2023 / Carter Bankshares, Inc. (the \"Company\") (NASDAQ:CARE), the holding company of Carter Bank & Trust (the \"Bank\") today announced quarterly net income of $3.6 million, or $0.16 diluted earnings per share (\"EPS\"), for the third quarter of 2023 compared to net income of $5.7 million, or $0.24 diluted EPS, in the second quarter of 2023 and net income of $14.4 million, or $0.59 diluted EPS, for the third quarter of 2022. The pre-tax pre-provision income1 was $5.4 million for the quarter ended September 30, 2023, $6.2 million for the quarter ended June 30, 2023 and $19.5 million for the quarter ended September 30, 2022.For the nine months ended September 30, 2023, net income was $25.3 million, or $1.07 diluted EPS, compared to net income of $34.5 million, or $1.38 diluted EPS for the same period in 2022. Pre-tax pre-provision income1 was $33.5 million and $45.2 million for the nine months ended September 30, 2023 and 2022, respectively.The Company's financial results for the third 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 during the second quarter of 2023, which had a $9.3 million and $11.3 million negative impact on interest income during the third and second quarters of 2023, respectively.Financial Highlights for the Three and Nine Months Ended September 30, 2023Quarterly and year-to-date net income of $3.6 million, or $0.16 diluted EPS and $25.3 million, or $1.07 diluted EPS, respectively;Annualized quarterly return on average assets (\"ROA\") of 0.33% and annualized quarterly return on average equity (\"ROE\") of 4.19% and annualized year-to-date ROA and ROE of 0.78% and 9.71%, respectively;Net interest income, increased $0.7 million, or 2.6%, to $27.4 million compared to the second quarter of 2023 primarily due to a 38 basis point increase in the yield on earning assets, offset by a 46 basis point increase in funding costs and decreased $10.3 million, or 27.4% compared to the third quarter of 2022, primarily due to a 194 basis point increase in funding costs, offset by a 32 basis point increase in yield on earning assets;Total portfolio loans increased $80.5 million, or 9.6%, on an annualiz...