Overview
Carter Bankshares Q3 net income and EPS miss analyst expectations
Net interest income for Q3 increased 4.2% from prior quarter
Company's financial results impacted by nonaccrual loans from Justice Entities
Outlook
Company expects to benefit from Federal Reserve's short-term interest rate reductions
Company anticipates loan growth from prior construction lending over next 12-18 months
Carter Bankshares aims to resolve large nonperforming credit relationship
Result Drivers
NONACCRUAL LOANS - Financial results significantly impacted by nonaccrual loans from Justice Entities, affecting interest income by $6.5 mln in Q3
LOAN GROWTH - Total portfolio loans increased by $88.5 mln, driven by commercial real estate and construction lending
NET INTEREST INCOME - Increased by $1.4 mln due to a decline in funding costs and higher average loan balances
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | Miss | $0.24 | $0.41 (3 Analysts) |
Q3 Net Income | Miss | $5.41 mln | $9.28 mln (2 Analysts) |
Q3 Net Interest Income | $33.71 mln | ||
Q3 Pretax Profit | Miss | $7.15 mln | $12.50 mln (1 Analyst) |
Q3 Basic EPS | $0.24 |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "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 $23.25, about 18.2% above its October 21 closing price of $19.01
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
Press Release: ID:nACS4LnPwa
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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.)