Carter Bankshares Q3 profit and EPS miss analyst estimates
Overview
U.S. regional bank's Q3 net income and EPS missed analyst expectations
Net interest income for Q3 rose 22% yr/yr
Company launched dividend reinvestment and stock purchase plan in Q3
Outlook
Company expects construction lending commitments to fund over next 12 to 18 months
Company sees healthy lending pipeline and growing momentum in small business and commercial lending
Company says capital and liquidity position supports organic growth and balance sheet optimization
Result Drivers
PORTFOLIO REPOSITIONING - Sale of lower-yielding securities and purchase of higher-yielding securities boosted net interest income and margin in Q3
LOAN ORIGINATIONS - Growth in commercial real estate, construction and residential mortgage loans drove portfolio loan increase despite elevated payoffs
SBA LENDING INITIATIVE - Launch of SBA lending team expanded small business financing capabilities
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 EPS | Miss | $0.35 | $0.53 (4 Analysts) |
Q3 Net Income | Miss | $7.76 mln | $11.55 mln (3 Analysts) |
Q3 Net Interest Income | $41.23 mln |
Analyst Coverage
The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 3 "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 $35.38, about 17.1% above its October 28 closing price of $30.22
The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago
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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.)