Carter Bankshares, Inc. Announces Second Quarter 2026 Financial Results
Rhea-AI Summary
Carter Bankshares (NASDAQ: CARE) reported second quarter 2026 net income of $28.9 million, or $1.31 diluted EPS, down from $85.8 million ($3.88 EPS) in Q1 2026 and up from $8.5 million ($0.37 EPS) a year earlier. Adjusted net income was $11.6 million versus $8.6 million in Q1 2026 and $9.3 million in Q2 2025. Net interest income rose to $40.0 million from $35.9 million in Q1 and $32.4 million in Q2 2025, with net interest margin improving to 3.38%.
The Company completed the sale of its membership interest in Bearing Insurance Group, recognizing a $35.9 million pre-tax gain, adding $1.30 to EPS and $1.28 to tangible book value per share. Together with a prior large loan sale, total nonrecurring gains reached approximately $100.9 million in the first half of 2026, partially offset by a $12.5 million loss from a securities portfolio repositioning. Nonperforming loans were $37.6 million, or 1.01% of total portfolio loans, versus 0.64% in Q1 2026 and 6.69% in Q2 2025.
Positive
- Q2 2026 net income $28.9M, EPS $1.31; adjusted net income $11.6M
- Net interest income $40.0M, up 11.2% QoQ and 23.5% YoY
- Net interest margin 3.38%, up 31 bps QoQ and 58 bps YoY
- Insurance Transaction gain $35.9M, adding $1.30 to diluted EPS
- Nonrecurring gains ~$100.9M in first half 2026 from asset sales
- NPL ratio 1.01% at June 30, 2026, sharply lower than 6.69% a year ago
Negative
- Q2 2026 net income $28.9M, significantly lower than $85.8M in Q1 2026
- Portfolio Repositioning loss $12.5M on securities sales in Q2 2026
- Nonperforming loans $37.6M, up $13.6M from March 31, 2026
- Allowance coverage of NPLs fell to 146.88% from 219.03% in Q1 2026
- Other noninterest expense included $1.3M in OREO and office write-downs
- Higher legal and special asset costs tied to Loan Sale Transaction litigation
News Explained
The completed asset shift carries an immediate $12.5 million pretax loss, while its higher-yield deployment and loan-growth benefit remain future-oriented.
Carter Bankshares completed a second-quarter securities repositioning: it sold
The sold securities carried a
At
The stated follow-through points are deployment of the repositioning proceeds during the remainder of
News Market Reaction – CARE
In the Jul 23 session, CARE gained 2.98%, reflecting a moderate positive market reaction. Our momentum scanner triggered 3 alerts that day, indicating moderate trading interest and price volatility.
Data tracked by StockTitan Argus on the day of publication.
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 23 | First-quarter earnings | Positive | -2.1% | Loan sale gain, stronger margin, and lower nonperforming loans preceded a negative reaction. |
| Jan 29 | Fourth-quarter earnings | Positive | +2.8% | Quarterly earnings increased alongside loan growth, margin expansion, and declining nonperforming loans. |
| Oct 23 | Third-quarter earnings | Negative | -6.3% | Lower quarterly earnings and continued concentration in a large nonperforming credit relationship. |
| Jul 24 | Second-quarter earnings | Positive | +4.3% | Higher net interest income, loan growth, branch expansion, and a stock repurchase program. |
| Apr 24 | First-quarter earnings | Positive | +2.3% | Earnings growth and improving margin outweighed an increase in nonperforming loans. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-matched earnings events produced four aligned reactions and one divergence, with an average move of 0.19%.
Key Terms
net interest margin financial
nonperforming loans financial
available-for-sale securities financial
allowance for credit losses financial
non-gaap financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
MARTINSVILLE, VA / ACCESS Newswire / July 23, 2026 / Carter Bankshares, Inc. (the "Company") (NASDAQ:CARE), the holding company of Carter Bank (the "Bank") today announced quarterly net income of
For the six months ended June 30, 2026, net income was
On May 1, 2026, the Company announced that it had completed the sale of its membership interest in Bearing Insurance Group, LLC (the "Insurance Transaction") to an unaffiliated third party, effective May 1, 2026.
Recognized a net gain (pre-tax) from the Insurance Transaction of
$35.9 million ;The Insurance Transaction was accretive to diluted earnings per share by
$1.30 for the quarter; andThe Insurance Transaction increased tangible book value per share by
$1.28 .
As a result of the successful completion of the Insurance Transaction and the sale of the large nonperforming credit relationship ("Loan Sale Transaction") during the first quarter of 2026, the Company generated approximately
In the Portfolio Repositioning, the Company sold
Financial Highlights for the Three Months Ended June 30, 2026
Total portfolio loans increased
$6.1 million at June 30, 2026 from March 31, 2026, despite approximately$132.6 million in commercial real estate loan payoffs during the second quarter, reflecting solid loan origination activity and continued demand, decreased0.3% from June 30, 2025, and increased6.45% 7 excluding the Loan Sale Transaction from June 30, 2025;Net interest income totaled
$40.0 million , an increase of$4.1 million , or11.2% compared to the prior quarter, and an increase of$7.6 million , or23.5% compared to the prior year quarter;Net interest margin increased 31 basis points to
3.38% for the second quarter of 2026, compared to3.07% for the prior quarter and increased 58 basis points compared to2.80% for the prior year quarter;Nonperforming loans ("NPLs") increased by
$13.6 million to$37.6 million at June 30, 2026 compared to March 31, 2026 and decreased by$213.0 million compared to June 30, 2025 due to the Loan Sale Transaction during the first quarter of 2026. NPLs to total portfolio loans were1.01% at June 30, 2026,0.64% at March 31, 2026 and6.69% at June 30, 2025;The allowance for credit losses to total portfolio loans was
1.48% at June 30, 2026, compared to1.41% at March 31, 2026 and1.90% at June 30, 2025. The year-over-year decrease primarily reflects the release of specific reserves of$18.0 million related to the Loan Sale Transaction during the first quarter of 2026; andThe efficiency ratio was
43.66% for the quarter ended June 30, 2026, compared to29.01% for the quarter ended March 31, 2026, and78.63% for the quarter ended June 30, 2025. The efficiency ratios for the first and second quarters of 2026 reflect the nonrecurring gains recognized during those periods as a result of the Insurance Transaction and the Loan Sale Transaction, both as discussed above. The adjusted efficiency ratio (non-GAAP)5 improved to62.66% for the second quarter of 2026, compared to72.66% for the first quarter of 2026 and75.55% for the second quarter of 2025.
"We are very pleased with the successful completion of the sale of our membership interest in Bearing Insurance Group, LLC during the second quarter of 2026," stated Litz H. Van Dyke, Chief Executive Officer. "This Transaction resulted in a significant capital gain, which increased tangible book value by
Van Dyke added, "Our core operating performance remained strong during the quarter, highlighted by continued net interest margin expansion and growth in our loan portfolio across our markets. Excluding the impact of the Loan Sale Transaction during the first quarter, loans increased approximately
Van Dyke concluded, "We believe the strategic initiatives undertaken in the first half of 2026 have strengthened our capital and liquidity position, providing additional financial flexibility to support future organic growth, optimize our balance sheet and capitalize on new opportunities as market conditions evolve. We are excited about what the future holds for Carter Bank."
Operating Highlights
Credit Quality
At June 30, 2026, nonperforming loans totaled
The allowance for credit losses on loans totaled
The Company recognized net recoveries of
Management continues to closely monitor credit quality trends and believes the allowance for credit losses remains appropriate based on the composition of the loan portfolio, current economic conditions, and other qualitative factors.
Year-to-date credit quality metrics continue to reflect the impact of the first quarter 2026 Loan Sale Transaction. The transaction removed
Net Interest Income and Margin
Net interest income (GAAP) for the quarter ended June 30, 2026 totaled
The linked-quarter increase in net interest income, on an FTE basis4 (non-GAAP) was primarily driven by a 10 basis point decline in funding costs and a 16 basis point increase in the yield on average interest-earning assets. The year-over-year increase was attributable to a 37 basis point decline in funding costs and a 22 basis point increase in average interest-earning assets yields.
During the second quarter of 2026, interest-bearing funding costs declined compared to both the prior quarter and year ago quarter, primarily reflecting a reduction in higher cost FHLB borrowings following the Loan Sale Transaction and Insurance Transaction, as well as stabilization in deposit pricing, partially reflecting the broader interest rate environment.
Net interest margin was
Net interest margin continued to expand during the quarter ended June 30, 2026, reflecting the benefits of disciplined balance sheet management. The Portfolio Repositioning improved the yield on the investment portfolio, while lower funding costs, favorable loan repricing, and approximately
Noninterest Income
Noninterest income totaled
Key drivers of noninterest income:
$35.9 million net gain recognized from the Insurance Transaction during the second quarter of 2026.$12.5 million of losses on sales of securities recognized in connection with the Portfolio Repositioning during the second quarter of 2026.$65.0 million gain recognized from the Loan Sale Transaction during the first quarter of 2026.
These items are considered non-core in nature and not indicative of the Company's ongoing operating performance.
Compared to the first quarter of 2026, noninterest income decreased
Other notable changes in noninterest income included a
Compared to the second quarter of 2025, noninterest income increased
For the six months ended June 30, 2026, noninterest income totaled
Noninterest Expense
Noninterest expense totaled
The linked-quarter decrease was primarily attributable to lower FDIC insurance expense and salaries and employee benefits, partially offset by increases in other noninterest expense, professional and legal fees, and data processing expense.
FDIC insurance expense declined during the second quarter of 2026, primarily reflecting the favorable impact of the Loan Sale Transaction during the first quarter of 2026, which improved the Company's FDIC assessments.
Salaries and employee benefits decreased
Other noninterest expense increased primarily due to a
Compared to the second quarter of 2025, noninterest expense increased
For the six months ended June 30, 2026, noninterest expense totaled
Financial Condition
Total assets increased
The allowance for credit losses on loans totaled
Available-for-sale investment securities declined
Total deposits decreased
At June 30, 2026, approximately
Capitalization and Liquidity
The Company maintained a strong capital and liquidity position at June 30, 2026. Capital levels increased significantly and continued to exceed all applicable regulatory requirements, supported by earnings for the quarter and the impact of the recent strategic transactions. The Company remained well capitalized at June 30, 2026.
The Company's Tier 1 capital ratio was
During both the three and six months ended June 30, 2026, the Company repurchased 108,601 shares of its common stock at a total cost of
At June 30, 2026, funding sources accessible to the Company included borrowing availability at the FHLB equal to
In addition to these funding sources, the Company had
About Carter Bankshares, Inc.
Headquartered in Martinsville, VA, Carter Bankshares, Inc. (NASDAQ:CARE) provides a full range of commercial banking, consumer banking, mortgage and other services through its subsidiary Carter Bank. The Company has
Important Note Regarding Non-GAAP Financial Measures
In addition to results presented in accordance with U.S. Generally Accepted Accounting Principles ("GAAP"), management uses, and this press release contains or references, certain non-GAAP financial measures, including pre-tax pre-provision income, adjusted net income, adjusted earnings per common share (diluted), tangible book value, tangible shareholders' equity, adjusted noninterest income, adjusted noninterest expense, adjusted loan growth, adjusted efficiency ratio, and interest and dividend income, yield on interest-earning assets, net interest income and net interest margin on a fully taxable equivalent ("FTE") basis. These non-GAAP measures should be read along with the accompanying tables in our definitions and reconciliation of GAAP to non-GAAP financial measures.
Management believes these non-GAAP financial measures are useful because they enhance the ability of investors and management to evaluate and compare the Company's operating results across periods in a meaningful manner. These measures also assist in assessing the Company's underlying operating performance and performance trends and facilitate comparisons with other financial services companies.
The Company believes that presenting interest and dividend income, yield on interest-earning assets, net interest income and net interest margin on an FTE basis improves comparability between income derived from taxable and tax-exempt sources and is consistent with industry practice.
While management believes these non-GAAP measures provide meaningful supplemental information, they should not be considered as an alternative to GAAP results, as more relevant than financial results prepared in accordance with GAAP, or as necessarily comparable to similarly titled non-GAAP measures used by other companies. Non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation or as a substitute for an analysis of the Company's financial condition or results of operations as reported under GAAP. Investors are encouraged to review the Company's GAAP financial results and all other relevant information when evaluating its performance and financial condition.
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 quotations and may include statements relating to the financial consequences of the Portfolio Restructuring, our financial condition, market conditions, results of operations, plans, including our strategic plan, brand strategy, and guiding principles and the anticipated results of the foregoing, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality, loan pipeline and nonaccrual and nonperforming loans. 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 assumptions 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. Actual results may differ significantly from those expressed in or implied by these forward-looking statements. 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 net interest margin, net interest income, funding costs and its deposit, loan and securities portfolios;
inflation, market and monetary fluctuations;
changes in trade policies, tariffs, monetary and fiscal policies and laws of the U.S. government and the related impacts on economic conditions and financial markets, and changes in policies of the Federal Reserve, FDIC and U.S. Department of the Treasury;
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, including emerging issues related to the development and use of artificial intelligence that could give rise to legal or regulatory action or increase cybersecurity threats;
our ability to resolve our nonperforming assets and our ability to secure collateral on loans that have entered nonaccrual status due to loan maturities and failure to pay in full;
changes in the Company's liquidity and capital positions;
concentrations of loans secured by real estate, particularly commercial real estate loans, and the potential impacts of changes in market conditions on the value of real estate collateral;
increased delinquency and foreclosure rates on commercial real estate loans;
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 geopolitical conflicts or public health events (such as pandemics), and of any governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on macroeconomic conditions, 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, and the Company and the Bank, in particular and changes impacting the rulemaking, supervision, examination and enforcement priorities of the federal banking agencies;
the outcome of pending and future litigation 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 acquired operations will be more difficult, disruptive or more costly than anticipated;
the soundness of other financial institutions and any indirect exposure related to large bank failures and their impact on the broader market through other customers, suppliers and partners or that the conditions which resulted in the liquidity concerns with those failed banks 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, supply chain disruptions, slowdowns in economic growth, government shutdowns and geopolitical instability and tensions;
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 associates;
expansions or consolidations in the Company's branch network, including that the anticipated benefits of the Company's branch acquisitions or 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
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 Securities and Exchange Commission, including in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2025. 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 made. 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, except as required by law.
Carter Bankshares, Inc.
investorrelations@carterbank.com
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
BALANCE SHEETS
June 30, | March 31, | June 30, | ||||||||||
(Dollars in Thousands, except share data) | (unaudited) | (unaudited) | (unaudited) | |||||||||
ASSETS | ||||||||||||
Cash and Due From Banks | $ | 41,101 | $ | 36,961 | $ | 48,015 | ||||||
Interest-Bearing Deposits in Other Financial Institutions | 167,427 | 12,294 | 8,045 | |||||||||
Federal Reserve Bank Excess Reserves | 68,007 | 179,063 | 43,845 | |||||||||
Total Cash and Cash Equivalents | 276,535 | 228,318 | 99,905 | |||||||||
Securities Available-for-Sale, at Fair Value (amortized cost of | 640,302 | 662,127 | 755,212 | |||||||||
Equity Securities | 12,676 | 10,246 | 10,200 | |||||||||
Loans Held-for-Sale | 467 | 341 | 246 | |||||||||
Portfolio Loans | 3,734,594 | 3,728,461 | 3,747,121 | |||||||||
Allowance for Credit Losses | (55,170 | ) | (52,503 | ) | (71,023 | ) | ||||||
Portfolio Loans, net | 3,679,424 | 3,675,958 | 3,676,098 | |||||||||
Bank Premises and Equipment, net | 69,820 | 70,968 | 72,105 | |||||||||
Goodwill | 1,193 | 1,193 | 1,193 | |||||||||
Core Deposit Intangible | 812 | 874 | 1,073 | |||||||||
Other Real Estate Owned, net | 3,356 | 3,443 | 1,657 | |||||||||
Other Restricted Stock, at Cost | 8,476 | 8,476 | 8,653 | |||||||||
Bank Owned Life Insurance | 45,704 | 45,247 | 48,365 | |||||||||
Other Assets | 63,118 | 92,079 | 109,384 | |||||||||
Total Assets | $ | 4,801,883 | $ | 4,799,270 | $ | 4,784,091 | ||||||
LIABILITIES | ||||||||||||
Deposits: | ||||||||||||
Noninterest-Bearing Demand | $ | 655,482 | $ | 637,933 | $ | 635,192 | ||||||
Interest-Bearing Demand | 866,759 | 871,398 | 805,013 | |||||||||
Money Market | 510,125 | 514,362 | 544,764 | |||||||||
Savings | 318,774 | 326,929 | 343,659 | |||||||||
Certificates of Deposit | 1,846,416 | 1,884,628 | 1,893,611 | |||||||||
Total Deposits | 4,197,556 | 4,235,250 | 4,222,239 | |||||||||
Federal Home Loan Bank Borrowings | - | - | 113,500 | |||||||||
Reserve for Unfunded Loan Commitments | 2,220 | 2,774 | 2,737 | |||||||||
Other Liabilities | 62,961 | 56,344 | 39,980 | |||||||||
Total Liabilities | 4,262,737 | 4,294,368 | 4,378,456 | |||||||||
SHAREHOLDERS' EQUITY | ||||||||||||
Common Stock, Par Value | ||||||||||||
Outstanding- 22,162,213 shares at June 30, 2026, 22,159,980 shares at March 31, 2026 and 22,669,834 shares at June 30, 2025 | 22,162 | 22,160 | 22,670 | |||||||||
Additional Paid-in Capital | 72,505 | 74,987 | 84,146 | |||||||||
Retained Earnings | 477,417 | 450,725 | 351,069 | |||||||||
Accumulated Other Comprehensive Loss | (32,938 | ) | (42,970 | ) | (52,250 | ) | ||||||
Total Shareholders' Equity | 539,146 | 504,902 | 405,635 | |||||||||
Total Liabilities and Shareholders' Equity | $ | 4,801,883 | $ | 4,799,270 | $ | 4,784,091 | ||||||
PERFORMANCE RATIOS | ||||||||||||
Return on Average Assets (QTD Annualized) | 2.39 | % | 7.13 | % | 0.72 | % | ||||||
Return on Average Assets (YTD Annualized) | 4.75 | % | 7.13 | % | 0.75 | % | ||||||
Return on Average Shareholders' Equity (QTD Annualized) | 22.01 | % | 80.05 | % | 8.45 | % | ||||||
Return on Average Shareholders' Equity (YTD Annualized) | 48.08 | % | 80.05 | % | 8.85 | % | ||||||
Portfolio Loans to Deposit Ratio | 88.97 | % | 88.03 | % | 88.75 | % | ||||||
Allowance for Credit Losses to Total Portfolio Loans | 1.48 | % | 1.41 | % | 1.90 | % | ||||||
CAPITALIZATION RATIOS | ||||||||||||
Shareholders' Equity to Assets | 11.23 | % | 10.52 | % | 8.48 | % | ||||||
Tier 1 Leverage Ratio | 11.65 | % | 11.10 | % | 9.46 | % | ||||||
Risk-Based Capital - Tier 1 | 14.26 | % | 13.52 | % | 10.87 | % | ||||||
Risk-Based Capital - Total | 15.51 | % | 14.78 | % | 12.12 | % | ||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
INCOME STATEMENTS
Quarter-to-Date | Year-to-Date | ||||||||||||||||||
June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
(Dollars in Thousands, except per share data) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | (unaudited) | ||||||||||||||
Interest Income | $ | 61,491 | $ | 59,185 | $ | 57,747 | $ | 120,676 | $ | 113,754 | |||||||||
Interest Expense | 21,541 | 23,251 | 25,388 | 44,792 | 51,257 | ||||||||||||||
NET INTEREST INCOME | 39,950 | 35,934 | 32,359 | 75,884 | 62,497 | ||||||||||||||
Provision (Recovery) for Credit Losses | 2,010 | (33,917 | ) | (2,330 | ) | (31,907 | ) | (4,355 | ) | ||||||||||
Recovery for Unfunded Commitments | (554 | ) | (218 | ) | (335 | ) | (772 | ) | (449 | ) | |||||||||
NET INTEREST INCOME AFTER PROVISION (RECOVERY) FOR CREDIT LOSSES | 38,494 | 70,069 | 35,024 | 108,563 | 67,301 | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||
Gain on the Insurance Transaction | 35,949 | - | - | 35,949 | - | ||||||||||||||
Gain on the Loan Sale Transaction | - | 65,000 | - | 65,000 | - | ||||||||||||||
(Losses) Gains on Sales of Securities, net | (12,531 | ) | 80 | - | (12,451 | ) | - | ||||||||||||
Service Charges, Commissions and Fees | 2,491 | 2,128 | 1,765 | 4,619 | 3,639 | ||||||||||||||
Debit Card Interchange Fees | 2,063 | 2,148 | 1,942 | 4,211 | 4,046 | ||||||||||||||
Insurance Commissions | 164 | 954 | 714 | 1,118 | 1,058 | ||||||||||||||
Bank Owned Life Insurance Income | 457 | 436 | 357 | 893 | 698 | ||||||||||||||
Other | 137 | 228 | 130 | 365 | 2,368 | ||||||||||||||
Total Noninterest Income | 28,730 | 70,974 | 4,908 | 99,704 | 11,809 | ||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||
Salaries and Employee Benefits | 14,051 | 14,915 | 14,082 | 28,966 | 27,739 | ||||||||||||||
Occupancy Expense, net | 4,584 | 4,861 | 4,230 | 9,445 | 8,702 | ||||||||||||||
FDIC Insurance Expense | (241 | ) | 1,510 | 1,436 | 1,269 | 2,866 | |||||||||||||
Other Taxes | 776 | 925 | 922 | 1,701 | 1,869 | ||||||||||||||
Advertising Expense | 820 | 926 | 708 | 1,746 | 1,619 | ||||||||||||||
Telephone Expense | 278 | 292 | 307 | 570 | 611 | ||||||||||||||
Professional and Legal Fees | 2,053 | 1,546 | 1,921 | 3,599 | 3,151 | ||||||||||||||
Data Processing | 2,177 | 1,853 | 1,395 | 4,030 | 2,839 | ||||||||||||||
Debit Card Expense | 1,072 | 1,001 | 991 | 2,073 | 1,983 | ||||||||||||||
Other | 4,416 | 3,183 | 3,312 | 7,599 | 5,967 | ||||||||||||||
Total Noninterest Expense | 29,986 | 31,012 | 29,304 | 60,998 | 57,346 | ||||||||||||||
Income Before Income Taxes | 37,238 | 110,031 | 10,628 | 147,269 | 21,764 | ||||||||||||||
Income Tax Provision | 8,327 | 24,274 | 2,118 | 32,601 | 4,301 | ||||||||||||||
Net Income | $ | 28,911 | $ | 85,757 | $ | 8,510 | $ | 114,668 | $ | 17,463 | |||||||||
Shares Outstanding, at End of Period | 22,162,213 | 22,159,980 | 22,669,834 | 22,162,213 | 22,669,834 | ||||||||||||||
Average Shares Outstanding - Basic & Diluted | 21,838,645 | 21,846,942 | 22,805,881 | 21,842,497 | 22,839,412 | ||||||||||||||
PER SHARE DATA | |||||||||||||||||||
Basic Earnings Per Common Share* | $ | 1.31 | $ | 3.88 | $ | 0.37 | $ | 5.18 | $ | 0.76 | |||||||||
Diluted Earnings Per Common Share* | $ | 1.31 | $ | 3.88 | $ | 0.37 | $ | 5.18 | $ | 0.76 | |||||||||
Book Value | $ | 24.33 | $ | 22.78 | $ | 17.89 | $ | 24.33 | $ | 17.89 | |||||||||
Tangible Book Value3 | $ | 24.24 | $ | 22.69 | $ | 17.79 | $ | 24.24 | $ | 17.79 | |||||||||
Market Value | $ | 34.01 | $ | 23.32 | $ | 17.34 | $ | 34.01 | $ | 17.34 | |||||||||
PROFITABILITY RATIOS (GAAP) | |||||||||||||||||||
Net Interest Margin | 3.38 | % | 3.07 | % | 2.80 | % | 3.23 | % | 2.74 | % | |||||||||
Efficiency Ratio | 43.66 | % | 29.01 | % | 78.63 | % | 34.74 | % | 77.18 | % | |||||||||
PROFITABILITY RATIOS (Non-GAAP) | |||||||||||||||||||
Net Interest Margin (FTE)4 | 3.40 | % | 3.08 | % | 2.82 | % | 3.24 | % | 2.76 | % | |||||||||
Adjusted Efficiency Ratio (Non-GAAP)5 | 62.66 | % | 72.66 | % | 75.55 | % | 67.45 | % | 77.06 | % | |||||||||
*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 (
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
NET INTEREST MARGIN (FTE) (QTD AVERAGES)
(Unaudited)
June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||||||||||||||||||||
(Dollars in Thousands) | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate | |||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||
Interest-Bearing Deposits with Banks | $ | 291,575 | $ | 2,712 | 3.73 | % | $ | 75,984 | $ | 693 | 3.70 | % | $ | 58,006 | $ | 643 | 4.45 | % | ||||||||||
Tax-Free Investment Securities4 | 37,890 | 488 | 5.17 | % | 11,503 | 83 | 2.93 | % | 11,622 | 85 | 2.93 | % | ||||||||||||||||
Taxable Investment Securities | 671,139 | 5,323 | 3.18 | % | 733,785 | 5,582 | 3.09 | % | 818,588 | 6,796 | 3.33 | % | ||||||||||||||||
Total Securities | 709,029 | 5,811 | 3.29 | % | 745,288 | 5,665 | 3.08 | % | 830,210 | 6,881 | 3.32 | % | ||||||||||||||||
Commercial Real Estate | 2,155,650 | 31,936 | 5.94 | % | 2,132,911 | 31,687 | 6.03 | % | 1,986,702 | 30,522 | 6.16 | % | ||||||||||||||||
Commercial & Industrial | 251,682 | 3,769 | 6.01 | % | 224,422 | 3,946 | 7.13 | % | 204,287 | 3,404 | 6.68 | % | ||||||||||||||||
Residential Mortgages | 820,831 | 8,739 | 4.27 | % | 829,413 | 8,728 | 4.27 | % | 811,414 | 8,581 | 4.24 | % | ||||||||||||||||
Other Consumer | 25,246 | 285 | 4.53 | % | 26,526 | 279 | 4.27 | % | 27,883 | 389 | 5.60 | % | ||||||||||||||||
Construction | 473,565 | 8,348 | 7.07 | % | 466,197 | 8,096 | 7.04 | % | 429,511 | 7,358 | 6.87 | % | ||||||||||||||||
Other | - | - | - | % | 231,620 | - | - | % | 278,194 | - | - | % | ||||||||||||||||
Total Loansa | 3,726,974 | 53,077 | 5.71 | % | 3,911,089 | 52,736 | 5.47 | % | 3,737,991 | 50,254 | 5.39 | % | ||||||||||||||||
Other Restricted Stock, at Cost | 8,476 | 128 | 6.06 | % | 15,969 | 245 | 6.22 | % | 8,428 | 140 | 6.66 | % | ||||||||||||||||
Total Interest-Earning Assets | 4,736,054 | 61,728 | 5.23 | % | 4,748,330 | 59,339 | 5.07 | % | 4,634,635 | 57,918 | 5.01 | % | ||||||||||||||||
Noninterest Earning Assets | 120,968 | 129,942 | 126,303 | |||||||||||||||||||||||||
Total Assets | $ | 4,857,022 | $ | 4,878,272 | $ | 4,760,938 | ||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||
Interest-Bearing Demand | $ | 900,160 | $ | 3,400 | 1.51 | % | $ | 818,471 | $ | 2,709 | 1.34 | % | $ | 805,749 | $ | 3,661 | 1.82 | % | ||||||||||
Money Market | 511,221 | 2,522 | 1.98 | % | 567,093 | 2,975 | 2.13 | % | 536,366 | 3,510 | 2.62 | % | ||||||||||||||||
Savings | 325,283 | 130 | 0.16 | % | 327,138 | 111 | 0.14 | % | 347,863 | 129 | 0.15 | % | ||||||||||||||||
Certificates of Deposit | 1,872,499 | 15,350 | 3.29 | % | 1,897,557 | 15,760 | 3.37 | % | 1,885,486 | 16,759 | 3.57 | % | ||||||||||||||||
Total Interest-Bearing Deposits | 3,609,163 | 21,402 | 2.38 | % | 3,610,259 | 21,555 | 2.42 | % | 3,575,464 | 24,059 | 2.70 | % | ||||||||||||||||
Federal Home Loan Bank Borrowings | - | - | - | % | 160,033 | 1,556 | 3.94 | % | 108,753 | 1,186 | 4.37 | % | ||||||||||||||||
Federal Funds Purchased | - | - | - | % | - | - | - | % | - | - | - | % | ||||||||||||||||
Other Borrowings | 10,775 | 139 | 5.17 | % | 10,870 | 140 | 5.22 | % | 10,713 | 143 | 5.35 | % | ||||||||||||||||
Total Borrowings | 10,775 | 139 | 5.17 | % | 170,903 | 1,696 | 4.02 | % | 119,466 | 1,329 | 4.46 | % | ||||||||||||||||
Total Interest-Bearing Liabilities | 3,619,938 | 21,541 | 2.39 | % | 3,781,162 | 23,251 | 2.49 | % | 3,694,930 | 25,388 | 2.76 | % | ||||||||||||||||
Noninterest-Bearing Liabilities | 710,174 | 662,638 | 662,168 | |||||||||||||||||||||||||
Shareholders' Equity | 526,910 | 434,472 | 403,840 | |||||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 4,857,022 | $ | 4,878,272 | $ | 4,760,938 | ||||||||||||||||||||||
Net Interest Income4 | $ | 40,187 | $ | 36,088 | $ | 32,530 | ||||||||||||||||||||||
Net Interest Margin4 | 3.40 | % | 3.08 | % | 2.82 | % | ||||||||||||||||||||||
a Nonaccruing loans are included in the daily average loan amounts outstanding.
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
NET INTEREST MARGIN (FTE) (YTD AVERAGES)
(Unaudited)
Six Months Ended June 30, 2026 | Six Months Ended June 30, 2025 | |||||||||||||||||||||||
(Dollars in Thousands) | Average Balance | Income/ Expense | Rate | Average Balance | Income/ Expense | Rate | ||||||||||||||||||
ASSETS | ||||||||||||||||||||||||
Interest-Bearing Deposits with Banks | $ | 184,375 | $ | 3,405 | 3.72 | % | $ | 62,670 | $ | 1,391 | 4.48 | % | ||||||||||||
Tax-Free Investment Securities4 | 24,769 | 571 | 4.65 | % | 11,642 | 169 | 2.93 | % | ||||||||||||||||
Taxable Investment Securities | 702,290 | 10,905 | 3.13 | % | 813,269 | 13,451 | 3.34 | % | ||||||||||||||||
Total Securities | 727,059 | 11,476 | 3.18 | % | 824,911 | 13,620 | 3.33 | % | ||||||||||||||||
Commercial Real Estate | 2,148,588 | 63,623 | 5.97 | % | 1,941,884 | 59,702 | 6.20 | % | ||||||||||||||||
Commercial & Industrial | 245,345 | 7,715 | 6.34 | % | 205,771 | 6,624 | 6.49 | % | ||||||||||||||||
Residential Mortgages | 825,567 | 17,467 | 4.27 | % | 811,584 | 17,080 | 4.24 | % | ||||||||||||||||
Other Consumer | 25,882 | 564 | 4.39 | % | 28,104 | 808 | 5.80 | % | ||||||||||||||||
Construction | 470,567 | 16,444 | 7.05 | % | 434,919 | 14,626 | 6.78 | % | ||||||||||||||||
Other | 102,574 | - | - | % | 277,279 | - | - | % | ||||||||||||||||
Total Loansa | 3,818,523 | 105,813 | 5.59 | % | 3,699,541 | 98,840 | 5.39 | % | ||||||||||||||||
Other Restricted Stock, at Cost | 12,202 | 373 | 6.16 | % | 7,469 | 252 | 6.80 | % | ||||||||||||||||
Total Interest-Earning Assets | 4,742,159 | 121,067 | 5.15 | % | 4,594,591 | 114,103 | 5.01 | % | ||||||||||||||||
Noninterest Earning Assets | 125,430 | 124,048 | ||||||||||||||||||||||
Total Assets | $ | 4,867,589 | $ | 4,718,639 | ||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||
Interest-Bearing Demand | $ | 859,541 | $ | 6,109 | 1.43 | % | $ | 775,490 | $ | 7,047 | 1.83 | % | ||||||||||||
Money Market | 539,003 | 5,497 | 2.06 | % | 530,944 | 6,829 | 2.59 | % | ||||||||||||||||
Savings | 326,206 | 241 | 0.15 | % | 351,473 | 242 | 0.14 | % | ||||||||||||||||
Certificates of Deposit | 1,884,958 | 31,110 | 3.33 | % | 1,901,751 | 34,964 | 3.71 | % | ||||||||||||||||
Total Interest-Bearing Deposits | 3,609,708 | 42,957 | 2.40 | % | 3,559,658 | 49,082 | 2.78 | % | ||||||||||||||||
Federal Home Loan Bank Borrowings | 79,575 | 1,556 | 3.94 | % | 89,400 | 1,888 | 4.26 | % | ||||||||||||||||
Other Borrowings | 10,822 | 279 | 5.20 | % | 10,566 | 287 | 5.48 | % | ||||||||||||||||
Total Borrowings | 90,397 | 1,835 | 4.09 | % | 99,966 | 2,175 | 4.39 | % | ||||||||||||||||
Total Interest-Bearing Liabilities | 3,700,105 | 44,792 | 2.44 | % | 3,659,624 | 51,257 | 2.82 | % | ||||||||||||||||
Noninterest-Bearing Liabilities | 686,538 | 661,308 | ||||||||||||||||||||||
Shareholders' Equity | 480,946 | 397,707 | ||||||||||||||||||||||
Total Liabilities and Shareholders' Equity | $ | 4,867,589 | $ | 4,718,639 | ||||||||||||||||||||
Net Interest Income4 | $ | 76,275 | $ | 62,846 | ||||||||||||||||||||
Net Interest Margin4 | 3.24 | % | 2.76 | % | ||||||||||||||||||||
a Nonaccruing loans are included in the daily average loan amounts outstanding.
LOANS AND LOANS HELD-FOR-SALE
(Unaudited)
(Dollars in Thousands) | June 30, | March 31, | June 30, | |||||||||
Commercial | ||||||||||||
Commercial Real Estate | $ | 2,143,362 | $ | 2,127,928 | $ | 2,000,766 | ||||||
Commercial and Industrial | 262,432 | 245,455 | 221,880 | |||||||||
Total Commercial Loans | 2,405,794 | 2,373,383 | 2,222,646 | |||||||||
Consumer | ||||||||||||
Residential Mortgages | 814,383 | 815,263 | 814,188 | |||||||||
Other Consumer | 25,154 | 26,264 | 27,991 | |||||||||
Total Consumer Loans | 839,537 | 841,527 | 842,179 | |||||||||
Construction | 489,263 | 513,551 | 443,573 | |||||||||
Other | - | - | 238,723 | |||||||||
Total Portfolio Loans | 3,734,594 | 3,728,461 | 3,747,121 | |||||||||
Loans Held-for-Sale | 467 | 341 | 246 | |||||||||
Total Loans | $ | 3,735,061 | $ | 3,728,802 | $ | 3,747,367 | ||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
ASSET QUALITY DATA
(Unaudited)
For the Periods Ended | ||||||||||||
(Dollars in Thousands) | June 30, | March 31, | June 30, | |||||||||
Nonaccrual Loans | ||||||||||||
Commercial Real Estate | $ | 21,562 | $ | 21,649 | $ | 9,613 | ||||||
Commercial and Industrial | 13,546 | 91 | 1,048 | |||||||||
Residential Mortgages | 1,945 | 1,766 | 4,142 | |||||||||
Other Consumer | 72 | 28 | 29 | |||||||||
Construction | 436 | 437 | 207 | |||||||||
Other | - | - | 235,542 | |||||||||
Total Nonperforming Loans | 37,561 | 23,971 | 250,581 | |||||||||
Other Real Estate Owned | 3,356 | 3,443 | 1,657 | |||||||||
Total Nonperforming Assets | $ | 40,917 | $ | 27,414 | $ | 252,238 | ||||||
Nonperforming Loans to Total Portfolio Loans | 1.01 | % | 0.64 | % | 6.69 | % | ||||||
Nonperforming Assets to Total Portfolio Loans plus Other Real Estate Owned | 1.09 | % | 0.73 | % | 6.73 | % | ||||||
Allowance for Credit Losses to Total Portfolio Loans | 1.48 | % | 1.41 | % | 1.90 | % | ||||||
Allowance for Credit Losses to Nonperforming Loans | 146.88 | % | 219.03 | % | 28.34 | % | ||||||
Net Loan (Recoveries) / Charge-offs QTD | $ | (657 | ) | $ | (14,929 | ) | $ | 165 | ||||
Net Loan (Recoveries) / Charge-offs YTD | $ | (15,586 | ) | $ | (14,929 | ) | $ | 222 | ||||
Net Loan (Recoveries) / Charge-offs (Annualized) to Average Portfolio Loans QTD | (0.07 | )% | (1.55 | )% | 0.02 | % | ||||||
Net Loan (Recoveries) / Charge-offs (Annualized) to Average Portfolio Loans YTD | (0.82 | )% | (1.55 | )% | 0.01 | % |
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
ALLOWANCE FOR CREDIT LOSSES
(Unaudited)
Quarter-to-Date | Year-to-Date | |||||||||||||||||||
(Dollars in Thousands) | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
Balance Beginning of Period | $ | 52,503 | $ | 71,491 | $ | 73,518 | $ | 71,491 | $ | 75,600 | ||||||||||
Provision (Recovery) for Credit Losses | 2,010 | (33,917 | ) | (2,330 | ) | (31,907 | ) | (4,355 | ) | |||||||||||
Charge-offs: | ||||||||||||||||||||
Commercial Real Estate | - | - | - | - | - | |||||||||||||||
Commercial and Industrial | - | - | - | - | 7 | |||||||||||||||
Residential Mortgages | - | - | - | - | - | |||||||||||||||
Other Consumer | 161 | 138 | 288 | 299 | 459 | |||||||||||||||
Construction | - | - | - | - | 1 | |||||||||||||||
Other | - | - | - | - | - | |||||||||||||||
Total Charge-offs | 161 | 138 | 288 | 299 | 467 | |||||||||||||||
Recoveries: | ||||||||||||||||||||
Commercial Real Estate | 248 | - | - | 248 | - | |||||||||||||||
Commercial and Industrial | - | - | 2 | - | 5 | |||||||||||||||
Residential Mortgages | 2 | 2 | 2 | 4 | 10 | |||||||||||||||
Other Consumer | 57 | 65 | 119 | 122 | 229 | |||||||||||||||
Construction | 511 | - | - | 511 | 1 | |||||||||||||||
Other | - | 15,000 | - | 15,000 | - | |||||||||||||||
Total Recoveries | 818 | 15,067 | 123 | 15,885 | 245 | |||||||||||||||
Total Net (Recoveries) / Charge-offs | (657 | ) | (14,929 | ) | 165 | (15,586 | ) | 222 | ||||||||||||
Balance End of Period | $ | 55,170 | $ | 52,503 | $ | 71,023 | $ | 55,170 | $ | 71,023 | ||||||||||
DEFINITIONS AND RECONCILIATION OF GAAP TO NON-GAAP FINANCIAL MEASURES:
(Unaudited)
1 Pre-tax Pre-provision Income (Non-GAAP) | Quarter-to-Date | Year-to-Date | ||||||||||||||||||
(Dollars in Thousands) | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
Net Interest Income | $ | 39,950 | $ | 35,934 | $ | 32,359 | $ | 75,884 | $ | 62,497 | ||||||||||
Noninterest Income | 28,730 | 70,974 | 4,908 | 99,704 | 11,809 | |||||||||||||||
Noninterest Expense | 29,986 | 31,012 | 29,304 | 60,998 | 57,346 | |||||||||||||||
Pre-tax Pre-provision Income (Non-GAAP) | $ | 38,694 | $ | 75,896 | $ | 7,963 | $ | 114,590 | $ | 16,960 | ||||||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
2 Adjusted Net Income (Non-GAAP) | Quarter-to-Date | Year-to-Date | ||||||||||||||||||
(Dollars in Thousands, except per share data) | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
Net Income | $ | 28,911 | $ | 85,757 | $ | 8,510 | $ | 114,668 | $ | 17,463 | ||||||||||
Less: Gain on the Insurance Transaction | (35,949 | ) | - | - | (35,949 | ) | - | |||||||||||||
Less: Gain on the Loan Sale Transaction | - | (65,000 | ) | - | (65,000 | ) | - | |||||||||||||
Specific Reserves Released from the Loan Sale Transaction | - | (18,035 | ) | - | (18,035 | ) | - | |||||||||||||
Net Recoveries from the Loan Sale Transaction | - | (15,000 | ) | - | (15,000 | ) | - | |||||||||||||
Losses (Gains) on Sales of Securities, net | 12,531 | (80 | ) | - | 12,451 | - | ||||||||||||||
Equity Security Unrealized Fair Value Loss (Gain) | 71 | 45 | (22 | ) | 116 | (159 | ) | |||||||||||||
Losses on Sales & Write-downs of Bank Premises, net | 105 | 1 | 60 | 106 | 57 | |||||||||||||||
Losses on Sales and Write-downs of OREO, net | 1,326 | 569 | 262 | 1,895 | 343 | |||||||||||||||
1035 Exchange fee on BOLI | - | - | 252 | - | 527 | |||||||||||||||
Acquisition Costs | - | - | 386 | - | 386 | |||||||||||||||
Gain on BOLI death benefit6 | - | - | - | - | (1,882 | ) | ||||||||||||||
FHLB Early Prepayment Credit | - | (130 | ) | - | (130 | ) | - | |||||||||||||
Severance Pay | - | - | 40 | - | 40 | |||||||||||||||
Contingent Liability | - | - | 38 | - | 38 | |||||||||||||||
Total Tax Effect | 4,603 | 20,502 | (214 | ) | 25,105 | (259 | ) | |||||||||||||
Adjusted Net Income (Non-GAAP) | $ | 11,598 | $ | 8,629 | $ | 9,312 | $ | 20,227 | $ | 16,554 | ||||||||||
Average Shares Outstanding - diluted | 21,838,645 | 21,846,942 | 22,805,881 | 21,842,497 | 22,839,412 | |||||||||||||||
Adjusted Earnings Per Common Share (diluted) (Non-GAAP) | $ | 0.53 | $ | 0.40 | $ | 0.41 | $ | 0.93 | $ | 0.72 | ||||||||||
3 Tangible Book Value (Non-GAAP) | Quarter-to-Date | Year-to-Date | ||||||||||||||||||
(Dollars in Thousands, except per share data) | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
Total Shareholders' Equity | $ | 539,146 | $ | 504,902 | $ | 405,635 | $ | 539,146 | $ | 405,635 | ||||||||||
Less: Goodwill and Other Intangible Assets, net of deferred tax liability | (2,001 | ) | (2,064 | ) | (2,263 | ) | (1,997 | ) | (2,263 | ) | ||||||||||
Tangible Shareholders' Equity (Non-GAAP) | 537,145 | 502,838 | 403,372 | 537,149 | 403,372 | |||||||||||||||
Shares Outstanding | 22,162,213 | 22,159,980 | 22,669,834 | 22,162,213 | 22,669,834 | |||||||||||||||
Tangible Book Value (Non-GAAP) | $ | 24.24 | $ | 22.69 | $ | 17.79 | $ | 24.24 | $ | 17.79 | ||||||||||
4 Net interest income has been computed on a fully taxable equivalent basis ("FTE") using
Net Interest Income (FTE) (Non-GAAP) | Quarter-to-Date | Year-to-Date | ||||||||||||||||||
(Dollars in Thousands) | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
Interest and Dividend Income (GAAP) | $ | 61,491 | $ | 59,185 | $ | 57,747 | $ | 120,676 | $ | 113,754 | ||||||||||
Tax Equivalent Adjustment4 | 237 | 154 | 171 | 391 | 349 | |||||||||||||||
Interest and Dividend Income (FTE) (Non-GAAP) | 61,728 | 59,339 | 57,918 | 121,067 | 114,103 | |||||||||||||||
Average Earning Assets | $ | 4,736,054 | $ | 4,748,330 | $ | 4,634,635 | 4,742,159 | 4,594,591 | ||||||||||||
Yield on Interest-earning Assets (GAAP) | 5.21 | % | 5.05 | % | 5.00 | % | 5.13 | % | 4.99 | % | ||||||||||
Yield on Interest-earning Assets (FTE) (Non-GAAP) | 5.23 | % | 5.07 | % | 5.01 | % | 5.15 | % | 5.01 | % | ||||||||||
Net Interest Income (GAAP) | $ | 39,950 | $ | 35,934 | $ | 32,359 | $ | 75,884 | $ | 62,497 | ||||||||||
Tax Equivalent Adjustment4 | 237 | 154 | 171 | 391 | 349 | |||||||||||||||
Net Interest Income (FTE) (Non-GAAP) | 40,187 | 36,088 | 32,530 | 76,275 | 62,846 | |||||||||||||||
Average Earning Assets | $ | 4,736,054 | $ | 4,748,330 | $ | 4,634,635 | 4,742,159 | 4,594,591 | ||||||||||||
Net Interest Margin (GAAP) | 3.38 | % | 3.07 | % | 2.80 | % | 3.23 | % | 2.74 | % | ||||||||||
Net Interest Margin (FTE) (Non-GAAP) | 3.40 | % | 3.08 | % | 2.82 | % | 3.24 | % | 2.76 | % | ||||||||||
CARTER BANKSHARES, INC.
CONSOLIDATED SELECTED FINANCIAL DATA
5Adjusted Efficiency Ratio (Non-GAAP) | Quarter-to-Date | Year-to-Date | ||||||||||||||||||
(Dollars in Thousands) | June 30, | March 31, | June 30, | June 30, | June 30, | |||||||||||||||
Noninterest Expense | $ | 29,986 | $ | 31,012 | $ | 29,304 | $ | 60,998 | $ | 57,346 | ||||||||||
Less: Losses on sales & write-downs of Branch Premises, net | (105 | ) | (1 | ) | (60 | ) | (106 | ) | (57 | ) | ||||||||||
Less: Losses on Sales & write-downs of OREO, net | (1,326 | ) | (569 | ) | (262 | ) | (1,895 | ) | (343 | ) | ||||||||||
Less: 1035 Exchange fee on BOLI | - | - | (252 | ) | - | (527 | ) | |||||||||||||
Less: Acquisition Costs | - | - | (386 | ) | - | (386 | ) | |||||||||||||
Less: Severance Pay | - | - | (40 | ) | - | (40 | ) | |||||||||||||
Less: Contingent Liability | - | - | (38 | ) | - | (38 | ) | |||||||||||||
Adjusted Noninterest Expense (Non-GAAP) | 28,555 | 30,442 | 28,266 | 58,997 | 55,955 | |||||||||||||||
Net Interest Income | 39,950 | 35,934 | 32,359 | 75,884 | 62,497 | |||||||||||||||
Plus: Taxable Equivalent Adjustment4 | 237 | 154 | 171 | 391 | 349 | |||||||||||||||
Net Interest Income (FTE) (Non-GAAP) | 40,187 | 36,088 | 32,530 | 76,275 | 62,846 | |||||||||||||||
Less: Losses (Gains) on Sales of Securities, net | 12,531 | (80 | ) | - | 12,451 | - | ||||||||||||||
Less: Equity Security Unrealized Fair Value Loss (Gain) | 71 | 45 | (22 | ) | 116 | (159 | ) | |||||||||||||
Less: Gain on BOLI death benefit6 | - | - | - | - | (1,882 | ) | ||||||||||||||
Less: Gain on the Insurance Transaction | (35,949 | ) | - | - | (35,949 | ) | - | |||||||||||||
Less: Gain on the Loan Sale Transaction | - | (65,000 | ) | - | (65,000 | ) | - | |||||||||||||
Less: FHLB Early Prepayment Credit | - | (130 | ) | - | (130 | ) | - | |||||||||||||
Plus: Noninterest Income | 28,730 | 70,974 | 4,908 | 99,704 | 11,809 | |||||||||||||||
Net Interest Income (FTE) (Non-GAAP) plus Adjusted Noninterest Income | $ | 45,570 | $ | 41,897 | $ | 37,416 | $ | 87,467 | $ | 72,614 | ||||||||||
Efficiency Ratio (GAAP) | 43.66 | % | 29.01 | % | 78.63 | % | 34.74 | % | 77.18 | % | ||||||||||
Adjusted Efficiency Ratio (Non-GAAP) | 62.66 | % | 72.66 | % | 75.55 | % | 67.45 | % | 77.06 | % | ||||||||||
6The Gain on BOLI death benefit is tax-exempt.
7Loan Growth (Non-GAAP) | Year-to-Date | |||||||
(Dollars in Thousands) | June 30, | June 30, | ||||||
Portfolio Loans | $ | 3,734,594 | $ | 3,747,121 | ||||
Less: Loans Related to the Loan Sale Transaction | (238,723 | ) | ||||||
Adjusted Loans (Non-GAAP) | $ | 3,508,398 | ||||||
Portfolio Loan Growth (GAAP) | (0.33 | )% | ||||||
Loan Growth (Non-GAAP) | 6.45 | % | ||||||
SOURCE: Carter Bankshares, Inc.
View the original press release on ACCESS Newswire