New Risk • May 14
New minor risk - Dividend sustainability The company has an unstable dividend paying track record. The dividend has had an annual drop of over 20% in the past. Dividend yield: 1.5% This is considered a minor risk. If the company has cut or reduced its dividend in the past, it may be a sign that the underlying business is too cyclical to consistently maintain or grow the dividend over the long-term. It may also indicate the company prioritizes other outcomes instead of maintaining the dividend. For dividend paying companies, any reduction in the dividend can significantly impact the share price. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 35% per year for the foreseeable future. Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Significant insider selling over the past 3 months (US$172k sold). Recent Insider Transactions • May 13
Insider recently sold US$146k worth of stock On the 12th of May, Bradford Langs sold around 6k shares on-market at roughly US$26.47 per share. This transaction amounted to 17% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$706k more than they bought in the last 12 months. Announcement • May 08
Carter Bank Launches No-Fee Youth Savings And Checking Accounts Carter Bank announced the launch of two new products, carter youth savings and carter youth checking, designed to help children and teens develop smart money habits and build a strong financial foundation. Available to youth from ages 6 up to 18 years old, these accounts give parents and guardians a hands-on role in guiding and monitoring their child’s spending and saving habits. Once the account holder turns 18, the youth checking account automatically converts to Carter Bank’s Lifetime Free Checking, and the youth savings account transitions to a Carter Savings account. By introducing these accounts, along with financial education, Carter Bank continues its commitment to serving individuals and families across its communities, providing customers of all ages with the tools and resources needed to achieve long-term financial success. Both accounts have no minimum balance, monthly maintenance fees, or transaction fees. A youth checking account requires a $25 opening deposit, while a youth savings account requires a $10 opening deposit. Both accounts can only be opened in a branch. The current annual percentage yield (APY) for the savings account is 0.50%, while the checking account is non-interest-bearing. For more information on youth accounts, click here. For financial education resources, including blogs, financial calculators, games, and more, click here. Upcoming Dividend • May 04
Upcoming dividend of US$0.10 per share Eligible shareholders must have bought the stock before 11 May 2026. Payment date: 25 May 2026. The company last paid an ordinary dividend in May 2015. The average dividend yield among industry peers is 2.4%. Reported Earnings • Apr 24
First quarter 2026 earnings: EPS and revenues miss analyst expectations First quarter 2026 results: EPS: US$3.93 (up from US$0.39 in 1Q 2025). Revenue: US$141.0m (up 260% from 1Q 2025). Net income: US$85.8m (up US$76.9m from 1Q 2025). Profit margin: 61% (up from 23% in 1Q 2025). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 11%. Earnings per share (EPS) also missed analyst estimates by 1.3%. Revenue is expected to decline by 15% p.a. on average during the next 2 years, while revenues in the Banks industry in the US are expected to grow by 8.3%. Over the last 3 years on average, earnings per share has increased by 18% per year but the company’s share price has increased by 23% per year, which means it is tracking significantly ahead of earnings growth. Announcement • Apr 16
Carter Bankshares, Inc., Annual General Meeting, May 27, 2026 Carter Bankshares, Inc., Annual General Meeting, May 27, 2026. Location: at new college institute, 191 fayette st., virginia 24112, martinsville, United States Price Target Changed • Mar 29
Price target increased by 7.6% to US$26.00 Up from US$24.17, the current price target is an average from 4 analysts. New target price is 14% above last closing price of US$22.88. Stock is up 40% over the past year. The company is forecast to post earnings per share of US$5.48 for next year compared to US$1.38 last year. Valuation Update With 7 Day Price Move • Mar 27
Investor sentiment improves as stock rises 16% After last week's 16% share price gain to US$22.88, the stock trades at a forward P/E ratio of 4x. Average forward P/E is 10x in the Banks industry in the US. Total returns to shareholders of 63% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$37.02 per share. Reported Earnings • Mar 07
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: US$1.40 (up from US$1.06 in FY 2024). Revenue: US$157.1m (up 12% from FY 2024). Net income: US$31.4m (up 29% from FY 2024). Profit margin: 20% (up from 17% in FY 2024). The increase in margin was driven by higher revenue. Net interest margin (NIM): 2.83% (up from 2.58% in FY 2024). Non-performing loans: 6.29% (down from 7.15% in FY 2024). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.3%. Revenue is forecast to grow 5.9% p.a. on average during the next 3 years, compared to a 8.7% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 10% per year, which means it is well ahead of earnings. Announcement • Feb 03
Carter Bankshares, Inc. (NasdaqGS:CARE) announces an Equity Buyback for $10 million worth of its shares. Carter Bankshares, Inc. (NasdaqGS:CARE) announces a share repurchase program. Under the program, the company will repurchase up to $10 million worth of the company’s common stock. The repurchase program is subject to receipt of non-objection from the Federal Reserve Bank of Richmond. The program will be valid over a period of 12 months from the date of receipt of non-objection from the Federal Reserve Bank of Richmond. Reported Earnings • Jan 29
Full year 2025 earnings: EPS misses analyst expectations Full year 2025 results: EPS: US$1.40 (up from US$1.06 in FY 2024). Revenue: US$157.1m (up 12% from FY 2024). Net income: US$31.4m (up 29% from FY 2024). Profit margin: 20% (up from 17% in FY 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 1.3%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 8.9% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 22% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Reported Earnings • Oct 24
Third quarter 2025 earnings: EPS misses analyst expectations Third quarter 2025 results: EPS: US$0.24 (down from US$0.24 in 3Q 2024). Revenue: US$35.9m (up 4.1% from 3Q 2024). Net income: US$5.42m (down 2.7% from 3Q 2024). Profit margin: 15% (down from 16% in 3Q 2024). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 44%. Revenue is forecast to grow 12% p.a. on average during the next 2 years, compared to a 8.0% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Price Target Changed • Oct 07
Price target increased by 7.0% to US$22.83 Up from US$21.33, the current price target is an average from 3 analysts. New target price is 17% above last closing price of US$19.46. Stock is up 13% over the past year. The company is forecast to post earnings per share of US$1.61 for next year compared to US$1.06 last year. Announcement • Sep 16
Carter Bankshares, Inc. Announces Executive Appointments Carter Bankshares, Inc. has assembled a talented team of experienced bankers with strong local ties. Brad Wilson has been appointed as Senior Vice President, Commercial Market Executive. Brad has dedicated the last 24 years to banking, primarily in the Gaston and Cleveland County markets. He has extensive experience working with commercial real estate, commercial and industrial companies, small businesses, and local non-profit organizations. For the past five years, he has served on the Alliance for Children & Youth board (Communities in Schools, Gaston County) and is currently the Past President. Jayson Philbeck has been appointed as Senior Vice President, Commercial Banking. Jayson has deep roots in this market, having grown up in nearby Cleveland County. He attended Gardner-Webb University, where he earned a B.S. in Finance/Economics, graduating Magna Cum Laude, and moved to Gaston County in 2010. With 15 years of banking experience in Gaston and Cleveland Counties, Jayson focuses on commercial real estate, commercial and industrial sectors, and cash management. He is actively involved in his community, serving as a Board Member and Treasurer of Kairos Classical Christian Academy, and is a member of the 1st ARP Church in Gastonia. Recent Insider Transactions • Sep 12
Insider recently sold US$269k worth of stock On the 10th of September, Matthew Speare sold around 14k shares on-market at roughly US$19.83 per share. This transaction amounted to 38% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$502k more than they bought in the last 12 months. Announcement • Sep 03
Carter Bankshares, Inc. Announces Executive Promotions Carter Bankshares, Inc. announced the promotion of two employees, underscoring the company’s commitment to community banking and recognizing their essential contributions to the bank’s continued growth. President and Chief Strategy Officer Brad Langs shared that Andy Meece has been promoted to Senior Vice President, Director of Strategy and Finance, while Charlie Sword has been promoted to Senior Vice President, Controller. With nearly 20 years at Carter Bank, most recently serving as Senior Vice President, Senior Finance Officer, Meece will now help lead the execution of the Bank’s strategic and financial initiatives that help drive continued organizational growth. Throughout his tenure, he has made significant contributions to the Bank’s success. Since joining Carter Bank as Senior Vice President, Director of Internal Audit in 2020, Sword has played an integral role in strengthening its financial operations. In his new position, he will oversee the day-to-day functions of the accounting department and drive efficiencies through financial analysis, budgeting, and other strategic initiatives. Coming just shy of a year after Carter Bank’s transformative rebrand, these promotions highlight the company’s forward momentum and continued investment in building a strong leadership team for the future. Reported Earnings • Jul 25
Second quarter 2025 earnings: EPS exceeds analyst expectations Second quarter 2025 results: EPS: US$0.37 (up from US$0.21 in 2Q 2024). Revenue: US$39.9m (up 20% from 2Q 2024). Net income: US$8.51m (up 79% from 2Q 2024). Profit margin: 21% (up from 14% in 2Q 2024). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 25%. Revenue is forecast to grow 9.4% p.a. on average during the next 2 years, compared to a 7.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 25% per year but the company’s share price has increased by 9% per year, which means it is well ahead of earnings. Recent Insider Transactions • Jun 16
Independent Director recently sold US$119k worth of stock On the 11th of June, Kevin Bloomfield sold around 7k shares on-market at roughly US$16.71 per share. This transaction amounted to 30% of their direct individual holding at the time of the trade. This was the largest sale by an insider in the last 3 months. Insiders have been net sellers, collectively disposing of US$157k more than they bought in the last 12 months. Announcement • May 21
Carter Bankshares, Inc. (NasdaqGS:CARE) announces an Equity Buyback for $20 million worth of its shares. Carter Bankshares, Inc. (NasdaqGS:CARE) announces a share repurchase program. Under the program, the company will repurchase up to $20 million worth of the company’s common stock. The program will be valid till May 14, 2026. Announcement • Apr 28
Carter Bankshares, Inc., Annual General Meeting, May 28, 2025 Carter Bankshares, Inc., Annual General Meeting, May 28, 2025. Location: new college institute, 191 fayette st., martinsville, virginia 2411, United States Reported Earnings • Apr 25
First quarter 2025 earnings: EPS and revenues exceed analyst expectations First quarter 2025 results: EPS: US$0.39 (up from US$0.25 in 1Q 2024). Revenue: US$39.2m (up 17% from 1Q 2024). Net income: US$8.95m (up 56% from 1Q 2024). Profit margin: 23% (up from 17% in 1Q 2024). The increase in margin was driven by higher revenue. Revenue exceeded analyst estimates by 6.1%. Earnings per share (EPS) also surpassed analyst estimates by 29%. Revenue is forecast to grow 9.8% p.a. on average during the next 2 years, compared to a 6.9% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 24% per year but the company’s share price has only fallen by 2% per year, which means it has not declined as severely as earnings. Board Change • Apr 01
Insufficient new directors No new directors have joined the board in the last 3 years. The company's board is composed of: No new directors. 7 experienced directors. 5 highly experienced directors. Independent Director Jake Lutz was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Mar 21
Carter Bankshares, Inc. Announces Retirement and Not Stand for Re-Election of E. Warren Matthews as Director, Effective May 28, 2025 On March 18, 2025, director E. Warren Matthews notified the Board of Directors of Carter Bankshares, Inc. that he will retire and not stand for re-election to the Board of Directors of the Company (the “Board”) at its 2025 Annual Meeting of Shareholders to be held on May 28, 2025. Mr. Matthews will continue to serve as a director of the Company through the end of his current term, which ends at the Annual Meeting. Reported Earnings • Mar 09
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: US$1.06 (up from US$1.00 in FY 2023). Revenue: US$140.9m (up 5.0% from FY 2023). Net income: US$24.3m (up 4.7% from FY 2023). Profit margin: 17% (in line with FY 2023). Net interest margin (NIM): 2.58% (down from 2.87% in FY 2023). Non-performing loans: 7.15% (down from 8.83% in FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 13%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 7.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 1% per year, which means it is well ahead of earnings. Announcement • Jan 30
Carter Bank Announces Demise of Richard Owen, Executive Vice President of Mortgage Banking and Corporate Sales Director Carter Bank announced the unexpected passing of Executive Vice President of Mortgage Banking and Corporate Sales Director, Richard Owen on January 25, 2025. A Roanoke native with a track record of success in financial services, Owen oversaw the day-to-day operations of both the bank’s mortgage and corporate sales divisions for nearly a decade. Owen joined Carter Bank in 2017 and quickly became a driving force in the bank's growth, by establishing the bank's mortgage division. Under his leadership, the mortgage portfolio grew to nearly $650 million. Additionally, Owen played an instrumental role in the creation of the bank’s Corporate Sales Team, which streamlines sales strategy conversations across all lines of business to enhance the customer experience. Richard was a storyteller, friend, and mentor to many, with a unique ability to connect and forge bonds with everyone around him. He was passionate about the bank’s values, especially building relationships with customers and co-workers, to help create opportunities for them to prosper. Owen, who would have turned 55 years old on Sunday, January 26, is survived by two daughters, Kate and Laney, his parents, Clark Owen Jr. and Emilie Owen, his partner Elza, and her daughter, Esmeralda. Reported Earnings • Jan 23
Full year 2024 earnings: EPS exceeds analyst expectations Full year 2024 results: EPS: US$1.08 (up from US$1.00 in FY 2023). Revenue: US$140.9m (up 5.0% from FY 2023). Net income: US$24.5m (up 5.8% from FY 2023). Profit margin: 17% (in line with FY 2023). Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 13%. Revenue is forecast to grow 11% p.a. on average during the next 2 years, compared to a 7.2% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 21% per year but the company’s share price has increased by 5% per year, which means it is well ahead of earnings. Reported Earnings • Oct 24
Third quarter 2024 earnings: EPS exceeds analyst expectations while revenues lag behind Third quarter 2024 results: EPS: US$0.25 (up from US$0.16 in 3Q 2023). Revenue: US$34.5m (up 8.7% from 3Q 2023). Net income: US$5.63m (up 57% from 3Q 2023). Profit margin: 16% (up from 11% in 3Q 2023). The increase in margin was driven by higher revenue. Revenue missed analyst estimates by 2.4%. Earnings per share (EPS) exceeded analyst estimates by 7.5%. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 6.6% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 16% per year but the company’s share price has increased by 7% per year, which means it is well ahead of earnings. Price Target Changed • Jul 29
Price target increased by 18% to US$20.00 Up from US$17.00, the current price target is provided by 1 analyst. New target price is 19% above last closing price of US$16.85. Stock is up 15% over the past year. The company is forecast to post earnings per share of US$0.90 for next year compared to US$1.00 last year. Reported Earnings • Jul 26
Second quarter 2024 earnings: EPS in line with expectations, revenues disappoint Second quarter 2024 results: EPS: US$0.21 (down from US$0.24 in 2Q 2023). Revenue: US$33.4m (up 6.6% from 2Q 2023). Net income: US$4.80m (down 15% from 2Q 2023). Profit margin: 14% (down from 18% in 2Q 2023). The decrease in margin was driven by higher expenses. Revenue is forecast to grow 14% p.a. on average during the next 2 years, compared to a 6.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 20% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Jun 27
Investor sentiment improves as stock rises 20% After last week's 20% share price gain to US$14.82, the stock trades at a forward P/E ratio of 15x. Average forward P/E is 10x in the Banks industry in the US. Total returns to shareholders of 17% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$24.60 per share. Price Target Changed • May 24
Price target decreased by 12% to US$15.00 Down from US$17.00, the current price target is an average from 2 analysts. New target price is 16% above last closing price of US$12.93. Stock is down 9.6% over the past year. The company is forecast to post earnings per share of US$0.93 for next year compared to US$1.00 last year. Major Estimate Revision • May 02
Consensus EPS estimates increase by 155% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from US$137.5m to US$139.5m. EPS estimate increased from US$1.83 to US$4.66 per share. Net income forecast to grow 569% next year vs 1.5% growth forecast for Banks industry in the US. Consensus price target of US$16.67 unchanged from last update. Share price rose 9.7% to US$12.85 over the past week. Announcement • Apr 28
Carter Bankshares, Inc., Annual General Meeting, May 22, 2024 Carter Bankshares, Inc., Annual General Meeting, May 22, 2024, at 10:00 US Eastern Standard Time. Location: New College Institute, 191 Fayette St., Martinsville Virginia United States Agenda: To elect the 12 persons to serve as Directors of the Company until the 2025 Annual Meeting of Shareholders; to approve, in an advisory and non-binding vote, the compensation of the Company's named executive officers; to ratify the appointment of the independent registered public accounting firm of Crowe LLP as the independent auditors of the Company for the fiscal year ending December 31, 2024; and to transact such other business as may be properly brought before the meeting or any adjournment thereof. Reported Earnings • Apr 25
First quarter 2024 earnings: EPS and revenues exceed analyst expectations First quarter 2024 results: EPS: US$0.26 (down from US$0.67 in 1Q 2023). Revenue: US$33.5m (down 23% from 1Q 2023). Net income: US$5.81m (down 63% from 1Q 2023). Profit margin: 17% (down from 37% in 1Q 2023). Revenue exceeded analyst estimates by 2.1%. Earnings per share (EPS) also surpassed analyst estimates by 142%. Revenue is forecast to grow 10% p.a. on average during the next 2 years, compared to a 5.9% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 50% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Reported Earnings • Mar 10
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: US$1.00 (down from US$2.03 in FY 2022). Revenue: US$134.2m (down 15% from FY 2022). Net income: US$23.2m (down 54% from FY 2022). Profit margin: 17% (down from 32% in FY 2022). The decrease in margin was primarily driven by lower revenue. Net interest margin (NIM): 2.87% (down from 3.51% in FY 2022). Non-performing loans: 8.83% (up from 0.21% in FY 2022). Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 20%. Revenue is forecast to grow 5.3% p.a. on average during the next 2 years, compared to a 5.8% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has fallen by 3% per year, which means it is significantly lagging earnings. Major Estimate Revision • Feb 18
Consensus EPS estimates increase by 27%, revenue downgraded The consensus outlook for fiscal year 2024 has been updated. 2024 revenue forecast fell from US$139.2m to US$137.5m. EPS estimate rose from US$1.90 to US$2.42. Net income forecast to shrink 41% next year vs 3.7% decline forecast for Banks industry in the US. Consensus price target of US$17.00 unchanged from last update. Share price was steady at US$13.91 over the past week. Announcement • Feb 03
Carter Bankshares, Inc. Introduces Carter Zescrow Carter Bankshares, Inc. announced the launch of Carter ZEscrow, a revolutionary banking solution designed to help businesses of all sizes increase efficiency when it comes to managing escrow and subaccounts. Developed by ZSuite Tech, Carter ZEscrow is a digital platform that streamlines the escrow process. It provides customers with a secure and reliable way to handle their transactions, including account management, reporting, tax forms, and more. Major Estimate Revision • Feb 01
Consensus EPS estimates increase by 151% The consensus outlook for earnings per share (EPS) in fiscal year 2024 has improved. 2024 revenue forecast increased from US$133.1m to US$139.2m. EPS estimate increased from US$0.755 to US$1.90 per share. Net income forecast to shrink 44% next year vs 3.5% decline forecast for Banks industry in the US. Consensus price target broadly unchanged at US$17.00. Share price fell 4.8% to US$14.46 over the past week. Reported Earnings • Jan 25
Full year 2023 earnings: EPS and revenues miss analyst expectations Full year 2023 results: EPS: US$1.01 (down from US$2.03 in FY 2022). Revenue: US$134.2m (down 15% from FY 2022). Net income: US$23.4m (down 53% from FY 2022). Profit margin: 17% (down from 32% in FY 2022). The decrease in margin was primarily driven by lower revenue. Revenue missed analyst estimates by 1.5%. Earnings per share (EPS) also missed analyst estimates by 20%. Revenue is forecast to grow 1.9% p.a. on average during the next 2 years, compared to a 5.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 74% per year but the company’s share price has only increased by 14% per year, which means it is significantly lagging earnings growth. Price Target Changed • Nov 09
Price target decreased by 7.2% to US$15.25 Down from US$16.44, the current price target is an average from 4 analysts. New target price is 30% above last closing price of US$11.69. Stock is down 36% over the past year. The company is forecast to post earnings per share of US$1.25 for next year compared to US$2.03 last year. Announcement • Oct 28
Carter Bankshares, Inc. Reports Unaudited Net Charge Offs for the Third Quarter Ended September 30, 2023 Carter Bankshares, Inc. reported unaudited net charge offs for the third quarter ended September 30, 2023. for the quarter, the company reported Total Net Charge-offs of $775,000 against $3,740,000 a year ago. Reported Earnings • Oct 27
Third quarter 2023 earnings: EPS misses analyst expectations Third quarter 2023 results: EPS: US$0.16 (down from US$0.59 in 3Q 2022). Revenue: US$31.7m (down 27% from 3Q 2022). Net income: US$3.63m (down 75% from 3Q 2022). Profit margin: 11% (down from 33% in 3Q 2022). The decrease in margin was driven by lower revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 20%. Revenue is forecast to grow 1.8% p.a. on average during the next 3 years, compared to a 4.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 91% per year but the company’s share price has only increased by 16% per year, which means it is significantly lagging earnings growth. New Risk • Aug 07
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.2% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. This is currently the only risk that has been identified for the company. Major Estimate Revision • Aug 03
Consensus revenue estimates fall by 18% The consensus outlook for revenues in fiscal year 2023 has deteriorated. 2023 revenue forecast decreased from US$175.1m to US$143.0m. EPS estimate fell from US$2.35 to US$1.29 per share. Net income forecast to shrink 24% next year vs 11% decline forecast for Banks industry in the US. Consensus price target broadly unchanged at US$17.13. Share price fell 11% to US$14.81 over the past week. Reported Earnings • Jul 28
Second quarter 2023 earnings: EPS and revenues miss analyst expectations Second quarter 2023 results: EPS: US$0.24 (down from US$0.44 in 2Q 2022). Revenue: US$31.3m (down 12% from 2Q 2022). Net income: US$5.70m (down 47% from 2Q 2022). Profit margin: 18% (down from 30% in 2Q 2022). The decrease in margin was primarily driven by lower revenue. Revenue missed analyst estimates by 28%. Earnings per share (EPS) also missed analyst estimates by 61%. Revenue is expected to decline by 2.1% p.a. on average during the next 2 years, while revenues in the Banks industry in the US are expected to grow by 4.4%. Over the last 3 years on average, earnings per share has increased by 83% per year but the company’s share price has only increased by 29% per year, which means it is significantly lagging earnings growth. New Risk • Jun 08
New minor risk - Insider selling There has been significant insider selling in the company's shares over the past 3 months. Total value of shares sold: US$60k This is considered a minor risk. There are several reasons why an insider may be selling, including to cover a tax obligation or pay for some other expense. However, we generally consider it a negative if insiders have been selling, especially if they do so below the current price. It implies that they considered a lower price to be reasonable. This is a weak signal, but if there is a pattern of unexplained selling, it can be a sign the insider believes the company's stock is overpriced. Note: We only include open market transactions and private dispositions of directly owned stock by individuals, not by corporations or trusts. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 9.7% per year for the foreseeable future. Minor Risk Significant insider selling over the past 3 months (US$60k sold). Board Change • May 31
High number of new directors There are 5 new directors who have joined the board in the last 3 years. Independent Director Jake Lutz was the last director to join the board, commencing their role in 2022. The company’s lack of board continuity is considered a risk according to the Simply Wall St Risk Model. Price Target Changed • Mar 31
Price target decreased by 8.4% to US$18.08 Down from US$19.75, the current price target is an average from 3 analysts. New target price is 29% above last closing price of US$14.00. Stock is down 20% over the past year. The company is forecast to post earnings per share of US$2.30 for next year compared to US$2.03 last year. Reported Earnings • Mar 14
Full year 2022 earnings: EPS and revenues exceed analyst expectations Full year 2022 results: EPS: US$2.03 (up from US$1.19 in FY 2021). Revenue: US$158.1m (up 16% from FY 2021). Net income: US$49.8m (up 58% from FY 2021). Profit margin: 32% (up from 23% in FY 2021). The increase in margin was driven by higher revenue. Net interest margin (NIM): 3.51% (up from 2.84% in FY 2021). Non-performing loans: 0.21% (down from 0.26% in FY 2021). Revenue exceeded analyst estimates by 1.5%. Earnings per share (EPS) also surpassed analyst estimates by 1.7%. Revenue is forecast to grow 6.0% p.a. on average during the next 2 years, compared to a 6.4% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has only increased by 12% per year, which means it is significantly lagging earnings growth. Valuation Update With 7 Day Price Move • Mar 13
Investor sentiment deteriorates as stock falls 21% After last week's 21% share price decline to US$13.65, the stock trades at a forward P/E ratio of 6x. Average forward P/E is 9x in the Banks industry in the US. Total returns to shareholders of 39% over the past three years. Simply Wall St's valuation model estimates the intrinsic value at US$15.70 per share. Announcement • Jan 28
Carter Bankshares, Inc. Reports Net Charge-Offs for the Fourth Quarter Ended December 31, 2022 Carter Bankshares, Inc. reported Net Charge-offs for the fourth quarter ended December 31, 2022. For the quarter, the company reported Net charge-offs were $0.4 million compared to $4.3 million in the same quarter of 2021. Reported Earnings • Jan 26
Full year 2022 earnings released: EPS: US$2.04 (vs US$1.19 in FY 2021) Full year 2022 results: EPS: US$2.04 (up from US$1.19 in FY 2021). Revenue: US$158.1m (up 16% from FY 2021). Net income: US$50.1m (up 59% from FY 2021). Profit margin: 32% (up from 23% in FY 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 8.0% p.a. on average during the next 2 years, compared to a 6.2% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 48% per year but the company’s share price has fallen by 7% per year, which means it is significantly lagging earnings. Announcement • Jan 25
Carter Bankshares, Inc. Announces Executive Changes Carter Bankshares, Inc. announced the promotion of three Bank Executives. Matt Speare, Rich Spiker and Tony Kallsen have all been promoted to Senior Executive Vice Presidents. The three had previously served as Executive Vice Presidents. Speare will also assume the role of Chief Operations Officer, a change from his previous role as Chief Information Officer. In his new role, he will continue to oversee the Carter Bank & Trust'sInformation Technology Department, while taking on the additional role of leading the Bank's Loan and Deposit Operations and Fraud Detection. Since joining Carter Bank & Trust, Spiker, who serves as the Bank's Chief Lending Officer, has been instrumental in building out the Commercial Banking Team, across both Virginia and North Carolina, and helping to start the Bank's Treasury Services department, all while overseeing significant growth of the Bank's commercial loan portfolio. Kallsen, who serves as the Bank's Chief Credit Officer, has worked to build out Credit Risk Management Infrastructure at Carter Bank and Trust since joining the company in 2017. Included in this buildout is a fully operational Credit Department and the streamlining of the Bank's loan underwriting and documentation process. Under Tony's leadership, the Bank has also achieved a significant reduction in criticized assets. Speare, Spiker and Kallsen all three joined the Bank in 2017. Price Target Changed • Nov 03
Price target increased to US$21.00 Up from US$19.25, the current price target is an average from 2 analysts. New target price is 18% above last closing price of US$17.80. Stock is up 13% over the past year. The company is forecast to post earnings per share of US$1.94 for next year compared to US$1.19 last year. Reported Earnings • Oct 28
Third quarter 2022 earnings released: EPS: US$0.59 (vs US$0.42 in 3Q 2021) Third quarter 2022 results: EPS: US$0.59 (up from US$0.42 in 3Q 2021). Revenue: US$43.6m (up 20% from 3Q 2021). Net income: US$14.4m (up 30% from 3Q 2021). Profit margin: 33% (up from 31% in 3Q 2021). The increase in margin was driven by higher revenue. Revenue is forecast to grow 11% p.a. on average during the next 3 years, compared to a 6.3% growth forecast for the Banks industry in the US. Over the last 3 years on average, earnings per share has increased by 24% per year but the company’s share price has fallen by 4% per year, which means it is significantly lagging earnings. Major Estimate Revision • Aug 04
Consensus EPS estimates increase by 16% The consensus outlook for earnings per share (EPS) in 2022 has improved. 2022 revenue forecast increased from US$147.6m to US$152.5m. EPS estimate increased from US$1.58 to US$1.83 per share. Net income forecast to grow 31% next year vs 9.8% growth forecast for Banks industry in the US. Consensus price target up from US$18.25 to US$18.75. Share price rose 10% to US$15.16 over the past week. Reported Earnings • Jul 28
Second quarter 2022 earnings released: EPS: US$0.44 (vs US$0.20 in 2Q 2021) Second quarter 2022 results: EPS: US$0.44 (up from US$0.20 in 2Q 2021). Revenue: US$35.4m (up 5.3% from 2Q 2021). Net income: US$10.8m (up 99% from 2Q 2021). Profit margin: 31% (up from 16% in 2Q 2021). The increase in margin was primarily driven by lower expenses. Over the next year, revenue is forecast to grow 15%, compared to a 15% growth forecast for the industry in the US. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 11% per year, which means it is significantly lagging earnings. Price Target Changed • Jul 03
Price target decreased to US$17.83 Down from US$19.33, the current price target is an average from 4 analysts. New target price is 33% above last closing price of US$13.40. Stock is up 5.3% over the past year. The company is forecast to post earnings per share of US$1.58 for next year compared to US$1.19 last year. Reported Earnings • Apr 27
First quarter 2022 earnings: EPS misses analyst expectations First quarter 2022 results: EPS: US$0.36. Revenue: US$32.5m (down 2.7% from 1Q 2021). Net income: US$9.32m (flat on 1Q 2021). Profit margin: 29% (in line with 1Q 2021). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 9.4%. Over the next year, revenue is forecast to grow 6.4%, compared to a 11% growth forecast for the industry in the US. Reported Earnings • Mar 13
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: US$1.19 (up from US$1.74 loss in FY 2020). Revenue: US$136.0m (up 21% from FY 2020). Net income: US$31.5m (up US$77.3m from FY 2020). Profit margin: 23% (up from net loss in FY 2020). The move to profitability was primarily driven by lower expenses. Net interest margin (NIM): 2.84% (up from 2.80% in FY 2020). Non-performing loans: 0.26% (down from 1.09% in FY 2020). Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 9.4%. Over the next year, revenue is forecast to grow 2.2%, compared to a 5.9% growth forecast for the banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 5% per year, which means it has not declined as severely as earnings. Reported Earnings • Jan 29
Full year 2021 earnings: EPS misses analyst expectations Full year 2021 results: EPS: US$1.20 (up from US$1.74 loss in FY 2020). Revenue: US$136.0m (up 21% from FY 2020). Net income: US$31.6m (up US$77.4m from FY 2020). Profit margin: 23% (up from net loss in FY 2020). The move to profitability was primarily driven by lower expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) missed analyst estimates by 9.4%. Over the next year, revenue is forecast to grow 4.0%, compared to a 4.3% growth forecast for the banks industry in the US. Over the last 3 years on average, earnings per share has fallen by 32% per year but the company’s share price has only fallen by 3% per year, which means it has not declined as severely as earnings. Recent Insider Transactions • Dec 03
Independent Director recently bought US$90k worth of stock On the 30th of November, Kevin Bloomfield bought around 6k shares on-market at roughly US$14.58 per share. This was the largest purchase by an insider in the last 3 months. Insiders have collectively bought US$101k more in shares than they have sold in the last 12 months. Price Target Changed • Nov 02
Price target increased to US$17.25 Up from US$15.88, the current price target is an average from 3 analysts. New target price is 10% above last closing price of US$15.63. Stock is up 121% over the past year. The company is forecast to post earnings per share of US$1.28 next year compared to a net loss per share of US$1.74 last year. Reported Earnings • Oct 30
Third quarter 2021 earnings released: EPS US$0.42 (vs US$2.19 loss in 3Q 2020) The company reported a strong third quarter result with improved earnings, revenues and profit margins. Third quarter 2021 results: Revenue: US$36.3m (up 20% from 3Q 2020). Net income: US$11.2m (up US$68.9m from 3Q 2020). Profit margin: 31% (up from net loss in 3Q 2020). The move to profitability was primarily driven by lower expenses. Over the last 3 years on average, earnings per share has fallen by 54% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Price Target Changed • Sep 09
Price target increased to US$16.75 Up from US$15.38, the current price target is an average from 3 analysts. New target price is 24% above last closing price of US$13.55. Stock is up 97% over the past year. Reported Earnings • Jul 30
Second quarter 2021 earnings released: EPS US$0.21 (vs US$0.17 in 2Q 2020) The company reported a solid second quarter result with improved earnings and revenues, although profit margins were flat. Second quarter 2021 results: Revenue: US$33.6m (up 26% from 2Q 2020). Net income: US$5.43m (up 22% from 2Q 2020). Profit margin: 16% (in line with 2Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 68 percentage points per year, which is a significant difference in performance. Price Target Changed • May 23
Price target increased to US$15.92 Up from US$14.58, the current price target is an average from 3 analysts. New target price is 6.8% above last closing price of US$14.91. Stock is up 105% over the past year. Reported Earnings • May 03
First quarter 2021 earnings released: EPS US$0.36 (vs US$0.17 in 1Q 2020) The company reported a strong first quarter result with improved earnings, revenues and profit margins. First quarter 2021 results: Revenue: US$33.4m (up 15% from 1Q 2020). Net income: US$9.38m (up 112% from 1Q 2020). Profit margin: 28% (up from 15% in 1Q 2020). Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 59 percentage points per year, which is a significant difference in performance. Price Target Changed • Mar 31
Price target increased to US$14.58 Up from US$13.33, the current price target is an average from 3 analysts. New target price is approximately in line with last closing price of US$13.99. Stock is up 52% over the past year. Announcement • Mar 21
Carter Bankshares, Inc. Announces Retirement of Charles E. Hall as Director On March 16, 2021, director Charles E. Hall notified the Board of Directors of Carter Bankshares, Inc. that he will retire and not stand for re-election to the Board of Directors of the company at its 2021 Annual Meeting of Shareholders to be held on June 23, 2021. Mr. Hall will continue to serve as a director of the Company through the end of his current term, which ends at the Annual Meeting. Announcement • Mar 20
Carter Bankshares, Inc., Annual General Meeting, Jun 23, 2021 Carter Bankshares, Inc., Annual General Meeting, Jun 23, 2021. Analyst Estimate Surprise Post Earnings • Mar 14
Revenue beats expectations Revenue exceeded analyst estimates by 4.8%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the next year, revenue is forecast to grow 15%, compared to a 18% growth forecast for the Banks industry in the US. Reported Earnings • Mar 14
Full year 2020 earnings released: US$1.74 loss per share (vs US$1.01 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: US$112.5m (down 8.8% from FY 2019). Net loss: US$45.9m (down 273% from profit in FY 2019). Net interest margin (NIM): 2.80% (down from 3.05% in FY 2019). Non-performing loans: 1.09% (down from 1.46% in FY 2019). Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has only fallen by 6% per year, which means it has not declined as severely as earnings. Is New 90 Day High Low • Feb 25
New 90-day high: US$12.05 The company is up 21% from its price of US$9.99 on 25 November 2020. The American market is up 5.0% over the last 90 days, indicating the company outperformed over that time. However, it underperformed the Banks industry, which is up 24% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$1.54 per share. Reported Earnings • Jan 30
Full year 2020 earnings released: US$1.74 loss per share (vs US$1.01 profit in FY 2019) The company reported a poor full year result with weaker earnings, revenues and control over costs. Full year 2020 results: Revenue: US$112.5m (down 8.8% from FY 2019). Net loss: US$45.9m (down 273% from profit in FY 2019). Over the last 3 years on average, earnings per share has fallen by 44% per year but the company’s share price has only fallen by 17% per year, which means it has not declined as severely as earnings. Analyst Estimate Surprise Post Earnings • Jan 30
Revenue beats expectations Revenue exceeded analyst estimates by 4.8%. Earnings per share (EPS) were mostly in line with analyst estimates. Over the next year, revenue is forecast to grow 17%, compared to a 17% growth forecast for the Banks industry in the US. Announcement • Jan 29
Farmers & Merchants Bank agreed to acquire operations of Branch Office in Waynesboro, Virginia of Carter Bankshares, Inc. Farmers & Merchants Bank agreed to acquire operations of Branch Office in Waynesboro, Virginia of Carter Bankshares, Inc. on January 27, 2021. The transaction will add an estimated $13.5 million of deposits to the balance sheet of F&M Bank Corp. The transaction is subject to regulatory approvals and the satisfaction of customary closing conditions. The transaction is expected to close in the second quarter of 2021. Price Target Changed • Jan 20
Price target raised to US$12.58 Up from US$11.17, the current price target is an average from 3 analysts. The new target price is 5.0% above the current share price of US$11.98. As of last close, the stock is down 42% over the past year. Is New 90 Day High Low • Jan 15
New 90-day high: US$12.02 The company is up 69% from its price of US$7.10 on 16 October 2020. The American market is up 12% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Banks industry, which is up 42% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$1.53 per share. Is New 90 Day High Low • Dec 29
New 90-day high: US$11.00 The company is up 66% from its price of US$6.64 on 29 September 2020. The American market is up 14% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Banks industry, which is up 32% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$0.95 per share. Is New 90 Day High Low • Dec 08
New 90-day high: US$10.01 The company is up 42% from its price of US$7.07 on 08 September 2020. The American market is up 11% over the last 90 days, indicating the company outperformed over that time. It also outperformed the Banks industry, which is up 19% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$0.43 per share. Price Target Changed • Nov 26
Price target raised to US$10.17 Up from US$8.92, the current price target is an average from 3 analysts. The new target price is close to the current share price of US$9.99. As of last close, the stock is down 53% over the past year. Major Estimate Revision • Nov 10
Analysts lower EPS estimates to -US$1.75 The 2020 consensus revenue estimate was lowered from US$127.1m to US$125.5m. The company is forecast to report a loss instead of a profit with analysts lowering their EPS forecasts from US$0.46 to -US$1.75 for the same period. The Banks industry in the US is expected to see an average net income growth of 3.3% next year. The consensus price target was lowered from US$8.92 to US$8.67. Share price is up 6.6% to US$7.95 over the past week. Is New 90 Day High Low • Nov 10
New 90-day high: US$7.95 The company is up 2.0% from its price of US$7.80 on 12 August 2020. The American market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Banks industry, which is up 9.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$0.45 per share. Reported Earnings • Nov 06
Third quarter 2020 earnings released: US$2.19 loss per share The company reported a poor third quarter result with weaker earnings and control over expenses, although revenues were flat. Third quarter 2020 results: Revenue: US$30.2m (flat on 3Q 2019). Net loss: US$57.7m (down US$65.3m from profit in 3Q 2019). Over the last 3 years on average, earnings per share has increased by 1% per year but the company’s share price has fallen by 25% per year, which means it is significantly lagging earnings. Analyst Estimate Surprise Post Earnings • Nov 06
Revenue and earnings miss expectations Revenue missed analyst estimates by 0.4%. Earnings per share (EPS) were also behind analyst expectations. Over the next year, revenue is forecast to grow 9.1%, compared to a 17% growth forecast for the Banks industry in the US. Is New 90 Day High Low • Sep 22
New 90-day low: US$6.83 The company is down 6.0% from its price of US$7.24 on 24 June 2020. The American market is up 7.0% over the last 90 days, indicating the company underperformed over that time. It also underperformed the Banks industry, which is down 3.0% over the same period. According to the Simply Wall St valuation model, the estimated intrinsic value of the company is US$0.76 per share. 
