Carter Bankshares reports Q1 EPS 25c, consensus 10c

The Company’s Tier 1 Capital ratio was 10.89% at March 31, 2024 compared to 11.08% at December 31, 2023. The Company’s leverage ratio was 9.34% at March 31, 2024 compared to 9.48% at December 31, 2023. The Company’s Total Risk-Based Capital ratio was 12.15% at March 31, 2024 compared to 12.34% at December 31, 2023. Reports book value $15.60. “We continue to feel positive about the fundamentals of the Company and the structure of our balance sheet. Capital and liquidity levels continue to be strong. Loan production was again solid in the quarter, but was muted somewhat by two large commercial real estate loans that paid off during the quarter. Lending pipelines have slowed, but we are still expecting moderate loan growth this year. We believe our bond portfolio is well positioned to outperform many of our peers in what appears to be a protracted period of higher interest rates. Modest deposit growth is occurring in most categories except savings accounts. While there continues to be pressure on the cost of funds, rates have leveled a bit. However, the current rate environment will continue to impact our margin in the coming quarters. We expect that our net interest margin will return to a more normalized level once the large nonperforming loan relationship is resolved. Additionally, when the Fed begins to cut short-term interest rates, our balance sheet is positioned so that it will positively impact our margins. Other than the large NPL relationship, our asset quality remains strong across all credit metrics,” stated Litz H. Van Dyke, Chief Executive Officer.