Overview

• Bank holding company's Q4 EPS beat analyst expectations

• Net interest income for Q4 increased yr/yr despite nonaccrual loan challenges

• Company's largest lending relationship remains on nonaccrual status since Q2 2023

Outlook

• Carter Bankshares expects tailwinds from prior construction lending over the next 12 to 18 months

• Company anticipates benefiting from Federal Reserve interest rate reductions

• Carter Bankshares remains committed to resolving its largest nonperforming credit relationship

Result Drivers

• NONACCRUAL LOANS - Interest income negatively impacted by $6.1 mln due to nonaccrual status of Justice Entities' loans

• LOAN GROWTH - Total portfolio loans increased $43.9 mln, driven by CRE and C&I loans

• CURTAILMENT PAYMENTS - $14.5 mln in curtailment payments received, reducing NPL balance

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for Carter Bankshares Inc is $22.75, about 14.2% above its January 28 closing price of $19.92

• The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 10 three months ago

Press Release: ID:nACSMQbFda

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)