Carter Bankshares(CARE)

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Carter Bankshares(CARE) - 2022 Q3 - Quarterly Report
2022-11-03 16:00
PART I - FINANCIAL INFORMATION [ITEM 1 – FINANCIAL STATEMENTS](index=3&type=section&id=ITEM%201%20%E2%80%93%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements of Carter Bankshares, Inc. for the periods ended September 30, 2022, and December 31, 2021 (audited for balance sheet), including balance sheets, income statements, comprehensive income statements, statements of changes in shareholders' equity, and cash flow statements, along with detailed notes on accounting policies, estimates, and specific financial instruments [Consolidated Balance Sheets](index=4&type=page&id=Consolidated%20Balance%20Sheets) **Consolidated Balance Sheet Highlights (September 30, 2022 vs. December 31, 2021):** | Metric | Sep 30, 2022 (Thousands) | Dec 31, 2021 (Thousands) | Change (Thousands) | | :------------------------------------- | :----------------------- | :----------------------- | :----------------- | | Total Assets | $4,114,310 | $4,133,746 | $(19,436) | | Total Cash and Cash Equivalents | $65,708 | $277,799 | $(212,091) | | Securities Available-for-Sale, at Fair Value | $851,211 | $922,400 | $(71,189) | | Portfolio Loans, net | $2,937,185 | $2,716,190 | $220,995 | | Total Deposits | $3,725,929 | $3,698,476 | $27,453 | | Total Liabilities | $3,799,494 | $3,726,150 | $73,344 | | Total Shareholders' Equity | $314,816 | $407,596 | $(92,780) | [Consolidated Statements of Income](index=5&type=page&id=Consolidated%20Statements%20of%20Income) **Consolidated Statements of Income Highlights (Three Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | Change (Thousands) | % Change | | :------------------------------------- | :--------------- | :--------------- | :----------------- | :------- | | Total Interest Income | $42,327 | $34,913 | $7,414 | 21.2% | | Total Interest Expense | $4,602 | $5,512 | $(910) | (16.5)% | | Net Interest Income | $37,725 | $29,401 | $8,324 | 28.3% | | (Recovery) Provision for Credit Losses | $(77) | $(413) | $336 | (81.4)% | | Total Noninterest Income | $5,235 | $6,915 | $(1,680) | (24.3)% | | Total Noninterest Expense | $23,463 | $24,685 | $(1,222) | (5.0)% | | Income Before Income Taxes | $19,417 | $12,104 | $7,313 | 60.4% | | Income Tax Provision | $5,009 | $931 | $4,078 | 438.0% | | Net Income | $14,408 | $11,173 | $3,235 | 29.0% | | Basic Earnings per Common Share | $0.59 | $0.42 | $0.17 | 40.5% | | Diluted Earnings per Common Share | $0.59 | $0.42 | $0.17 | 40.5% | **Consolidated Statements of Income Highlights (Nine Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | Change (Thousands) | % Change | | :------------------------------------- | :--------------- | :--------------- | :----------------- | :------- | | Total Interest Income | $111,966 | $100,964 | $11,002 | 10.9% | | Total Interest Expense | $13,560 | $17,831 | $(4,271) | (24.0)% | | Net Interest Income | $98,406 | $83,133 | $15,273 | 18.4% | | (Recovery) Provision for Credit Losses | $2,367 | $2,411 | $(44) | (1.8)% | | Total Noninterest Income | $16,174 | $23,105 | $(6,931) | (30.0)% | | Total Noninterest Expense | $69,384 | $76,049 | $(6,665) | (8.8)% | | Income Before Income Taxes | $42,639 | $28,723 | $13,916 | 48.5% | | Income Tax Provision | $8,130 | $2,743 | $5,387 | 196.4% | | Net Income | $34,509 | $25,980 | $8,529 | 32.8% | | Basic Earnings per Common Share | $1.38 | $0.98 | $0.40 | 40.8% | | Diluted Earnings per Common Share | $1.38 | $0.98 | $0.40 | 40.8% | [Consolidated Statements of Comprehensive (Loss) Income](index=6&type=page&id=Consolidated%20Statements%20of%20Comprehensive%20%28Loss%29%20Income) **Consolidated Statements of Comprehensive (Loss) Income (Three Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | Change (Thousands) | | :---------------------------------------------------- | :--------------- | :--------------- | :----------------- | | Net Income | $14,408 | $11,173 | $3,235 | | Net Unrealized Losses Arising during the Period | $(33,326) | $(4,588) | $(28,738) | | Reclassification Adjustment for Losses (Gains) | $4 | $(1,341) | $1,345 | | Tax Effect | $6,998 | $1,245 | $5,753 | | Net Unrealized Losses Recognized in Other Comprehensive Loss | $(26,324) | $(4,684) | $(21,640) | | Comprehensive (Loss) Income | $(11,916) | $6,489 | $(18,405) | **Consolidated Statements of Comprehensive (Loss) Income (Nine Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | Change (Thousands) | | :---------------------------------------------------- | :--------------- | :--------------- | :----------------- | | Net Income | $34,509 | $25,980 | $8,529 | | Net Unrealized Losses Arising during the Period | $(111,360) | $(6,626) | $(104,734) | | Reclassification Adjustment for Losses (Gains) | $(48) | $(6,450) | $6,402 | | Tax Effect | $23,396 | $2,746 | $20,650 | | Net Unrealized Losses Recognized in Other Comprehensive Loss | $(88,012) | $(10,330) | $(77,682) | | Comprehensive (Loss) Income | $(53,503) | $15,650 | $(69,153) | [Consolidated Statements of Changes in Shareholders' Equity](index=7&type=page&id=Consolidated%20Statements%20of%20Changes%20in%20Shareholders%27%20Equity) **Changes in Shareholders' Equity (Nine Months Ended Sep 30, 2022):** | Metric | Amount (Thousands) | | :---------------------------------------------------- | :----------------- | | Balance at December 31, 2021 | $407,596 | | Net Income | $34,509 | | Other Comprehensive Loss, Net of Tax | $(88,012) | | Repurchase of Common Stock (2,433,801 shares) | $(40,131) | | Forfeiture of Restricted Stock (12,751 shares) | $(156) | | Issuance of Restricted Stock (126,804 shares) | $0 | | Recognition of Restricted Stock Compensation Expense | $1,010 | | Balance at September 30, 2022 | $314,816 | [Consolidated Statements of Cash Flows](index=8&type=page&id=Consolidated%20Statements%20of%20Cash%20Flows) **Consolidated Statements of Cash Flows (Nine Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | Change (Thousands) | | :------------------------------------- | :--------------- | :--------------- | :----------------- | | Net Cash Provided By Operating Activities | $47,698 | $60,021 | $(12,323) | | Net Cash Used In Investing Activities | $(270,111) | $(131,995) | $(138,116) | | Net Cash Provided by Financing Activities | $10,322 | $55,828 | $(45,506) | | Net Decrease in Cash and Cash Equivalents | $(212,091) | $(16,146) | $(195,945) | | Cash and Cash Equivalents at End of Period | $65,708 | $225,796 | $(160,088) | [Notes to Unaudited Consolidated Financial Statements](index=9&type=page&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) This section provides detailed notes to the unaudited consolidated financial statements, covering the basis of presentation, significant accounting policies, recent accounting standard adoptions, and specific disclosures for earnings per share, investment securities, loans, allowance for credit losses, fair value measurements, derivative instruments, FHLB borrowings, commitments, contingencies, tax effects, and stock repurchase plans [NOTE 1 – BASIS OF PRESENTATION](index=9&type=page&id=NOTE%201%20%E2%80%93%20BASIS%20OF%20PRESENTATION) This note outlines the principles of consolidation, basis of presentation in accordance with GAAP for interim financial information, use of estimates, and details the early adoption of ASU No. 2022-02, which eliminates the troubled debt restructuring (TDR) model. It also describes the Company's Allowance for Credit Losses (ACL) policy, including loan segmentation, specific analysis, quantitative (DCF) and qualitative analysis, and charge-off policy. Additionally, it discusses the ongoing transition away from LIBOR, with 13.2% of the loan portfolio still indexed to LIBOR as of September 30, 2022 - The Company early adopted ASU No. 2022-02 on April 1, 2022, effective January 1, 2022, eliminating the troubled debt restructuring (TDR) accounting model, which did not have a material effect on consolidated financial statements[24](index=24&type=chunk) - As of September 30, 2022, approximately **13.2%** of the Company's loan portfolio consists of loans whose variable rate index is LIBOR, with the Company ceasing new LIBOR-based variable rate loan originations by December 31, 2021[39](index=39&type=chunk) [NOTE 2 – EARNINGS PER SHARE](index=12&type=page&id=NOTE%202%20%E2%80%93%20EARNINGS%20PER%20SHARE) This note details the calculation of basic and diluted earnings per share, which are derived by allocating net income to common shareholders and dividing by the weighted average number of common shares outstanding, including participating securities **Earnings Per Common Share (Three and Nine Months Ended Sep 30, 2022 vs. 2021):** | Metric | Three Months 2022 | Three Months 2021 | Nine Months 2022 | Nine Months 2021 | | :------------------------------------- | :---------------- | :---------------- | :--------------- | :--------------- | | Net Income Allocated to Common Shareholders | $14,316 | $11,125 | $34,310 | $25,876 | | Weighted Average Common Shares Outstanding | 24,265,075 | 26,348,488 | 24,827,143 | 26,339,930 | | Basic Earnings per Common Share | $0.59 | $0.42 | $1.38 | $0.98 | | Diluted Earnings per Common Share | $0.59 | $0.42 | $1.38 | $0.98 | [NOTE 3 - INVESTMENT SECURITIES](index=12&type=page&id=NOTE%203%20-%20INVESTMENT%20SECURITIES) This note provides a breakdown of the Company's available-for-sale securities, including their amortized cost, fair value, and unrealized gains and losses. It highlights that unrealized losses are primarily due to interest rate changes and not credit quality, with management intending to hold these securities to maturity **Available-for-Sale Debt Securities (September 30, 2022):** | Security Type | Amortized Cost (Thousands) | Gross Unrealized Gains (Thousands) | Gross Unrealized Losses (Thousands) | Fair Value (Thousands) | | :------------------------------------- | :------------------------- | :------------------------- | :-------------------------- | :--------------------- | | U.S. Treasury Securities | $19,300 | $0 | $(1,552) | $17,748 | | U.S. Government Agency Securities | $3,520 | $0 | $(606) | $2,914 | | Residential Mortgage-Backed Securities | $117,229 | $0 | $(12,661) | $104,568 | | Commercial Mortgage-Backed Securities | $37,944 | $97 | $(959) | $37,082 | | Asset Backed Securities | $84,180 | $0 | $(3,404) | $80,776 | | Collateralized Mortgage Obligations | $295,020 | $7 | $(28,416) | $266,611 | | Small Business Administration | $50,249 | $301 | $(107) | $50,443 | | States and Political Subdivisions | $282,272 | $1 | $(53,618) | $228,655 | | Corporate Notes | $70,750 | $0 | $(8,336) | $62,414 | | **Total Debt Securities** | **$960,464** | **$406** | **$(109,659)** | **$851,211** | - As of September 30, 2022, management does not intend to sell any impaired security and it is not more than likely that it will be required to sell any impaired security before the recovery of its amortized cost basis, with unrealized losses primarily due to interest rate changes, not credit[52](index=52&type=chunk) [NOTE 4 – LOANS AND LOANS HELD-FOR-SALE](index=15&type=page&id=NOTE%204%20%E2%80%93%20LOANS%20AND%20LOANS%20HELD-FOR-SALE) This note details the composition of the loan portfolio, including commercial, consumer, and construction loans, and provides information on loans held-for-sale. It also explains the Company's updated approach to loan restructurings following the adoption of ASU No. 2022-02, which eliminated the TDR accounting model, and monitors the performance of modified loans **Loan Portfolio Composition (September 30, 2022 vs. December 31, 2021):** | Loan Type | Sep 30, 2022 (Thousands) | Dec 31, 2021 (Thousands) | Change (Thousands) | | :------------------------------------- | :----------------------- | :----------------------- | :----------------- | | Commercial Real Estate | $1,365,348 | $1,323,252 | $42,096 | | Commercial and Industrial | $325,973 | $345,376 | $(19,403) | | Residential Mortgages | $617,681 | $457,988 | $159,693 | | Other Consumer | $47,006 | $44,666 | $2,340 | | Construction | $350,037 | $282,947 | $67,090 | | Other | $325,304 | $357,900 | $(32,596) | | **Total Portfolio Loans** | **$3,031,349** | **$2,812,129** | **$219,320** | | Loans Held-for-Sale | $1,513 | $228 | $1,285 | | **Total Loans** | **$3,032,862** | **$2,812,357** | **$220,505** | - The Company adopted ASU No. 2022-02 on April 1, 2022, eliminating the recognition and measurement of troubled debt restructurings (TDRs), with loan modifications to borrowers experiencing financial difficulty now evaluated to determine if they result in a new loan or a continuation of the existing loan[56](index=56&type=chunk) **Accruing Restructured Loans (Nine Months Ended Sep 30, 2022):** | Loan Class | Number of Contracts | Amortized Cost Basis (Thousands) | % of Total Class | | :------------------------------------- | :------------------ | :------------------------------- | :--------------- | | Commercial Real Estate | 1 | $326 | 0.02% | | Construction | 1 | $137 | 0.04% | | **Total Accruing Restructured Loans** | **2** | **$463** | **0.03%** | [NOTE 5 – ALLOWANCE FOR CREDIT LOSSES](index=18&type=page&id=NOTE%205%20%E2%80%93%20ALLOWANCE%20FOR%20CREDIT%20LOSSES) This note details the Company's methodology for estimating the Allowance for Credit Losses (ACL), segmented by loan type, and discusses the key risks associated with each segment. It also provides an analysis of credit quality indicators, including internal risk ratings (Pass, Special Mention, Substandard, Doubtful, Loss), and presents tables on portfolio loan balances by origination year, risk rating, and performing/nonperforming status, along with ACL activity - The Company maintains an ACL based on expected credit losses over the life of financial instruments, segmented by homogeneous loan types (CRE, C&I, Residential Mortgages, Other Consumer, Construction, Other)[67](index=67&type=chunk) **Allowance for Credit Losses on Loans Activity (Nine Months Ended Sep 30, 2022):** | Metric | Commercial Real Estate (Thousands) | Commercial and Industrial (Thousands) | Residential Mortgage (Thousands) | Other Consumer (Thousands) | Construction (Thousands) | Other (Thousands) | Total Loans (Thousands) | | :------------------------------------- | :--------------------------------- | :------------------------------------ | :------------------------------- | :------------------------- | :----------------------- | :---------------- | :---------------------- | | Balance at Beginning of Period | $17,297 | $4,111 | $4,368 | $1,493 | $6,939 | $61,731 | $95,939 | | Provision (Recovery) for Credit Losses | $78 | $3,118 | $1,202 | $1,035 | $1,600 | $(4,666) | $2,367 | | Charge-offs | $0 | $(3,432) | $(45) | $(1,244) | $0 | $0 | $(4,721) | | Recoveries | $0 | $1 | $97 | $332 | $149 | $0 | $579 | | Net (Charge-offs) / Recoveries | $0 | $(3,431) | $52 | $(912) | $149 | $0 | $(4,142) | | **Balance at End of Period** | **$17,375** | **$3,798** | **$5,622** | **$1,616** | **$8,688** | **$57,065** | **$94,164** | **Nonaccrual Loans (September 30, 2022 vs. December 31, 2021):** | Loan Segment | Sep 30, 2022 (Thousands) | Dec 31, 2021 (Thousands) | | :------------------------------------- | :----------------------- | :----------------------- | | Commercial Real Estate | $2,416 | $3,337 | | Commercial and Industrial | $201 | $451 | | Residential Mortgages | $3,509 | $2,551 | | Other Consumer | $9 | $73 | | Construction | $875 | $985 | | Other | $0 | $0 | | **Total Portfolio Loans** | **$7,010** | **$7,397** | [NOTE 6 – FAIR VALUE MEASUREMENTS](index=28&type=page&id=NOTE%206%20%E2%80%93%20FAIR%20VALUE%20MEASUREMENTS) This note explains the Company's use of fair value measurements for financial assets and liabilities, categorizing them into a three-level hierarchy based on input observability. It details valuation methodologies for recurring items like available-for-sale securities and derivatives, and nonrecurring items such as individually evaluated loans and OREO, emphasizing the use of appraisals and discounted cash flow analysis - The fair value hierarchy prioritizes unadjusted quoted market prices in active markets (Level 1), followed by significant other observable inputs (Level 2), and then significant unobservable inputs (Level 3)[106](index=106&type=chunk)[107](index=107&type=chunk) **Financial Assets Measured at Fair Value on a Recurring Basis (September 30, 2022):** | Asset Type | Carrying Value (Thousands) | Level 1 (Thousands) | Level 2 (Thousands) | Level 3 (Thousands) | | :------------------------------------- | :----------------------- | :------------------ | :------------------ | :------------------ | | Securities Available-for-Sale | $851,211 | $25,285 | $818,611 | $7,315 | | Derivatives | $24,122 | $0 | $24,122 | $0 | | **Total** | **$875,333** | **$25,285** | **$842,733** | **$7,315** | **Financial Assets Measured at Fair Value on a Nonrecurring Basis (September 30, 2022):** | Asset Type | Fair Value (Thousands) | Valuation Technique | Unobservable Inputs | Weighted Range | | :------------------------------------- | :--------------------- | :------------------ | :------------------ | :------------- | | Individually Evaluated Loans | $1,791 | Discounted Appraisals | Estimated Selling Costs | 6.0% | | OREO | $7,315 | Appraisals | Estimated Selling Costs | 10.0% | | OREO | $143 | Internal Valuations | Estimated Selling Costs | 5.0% | | OREO | $676 | Discounted Internal Valuations | Management's Discount & Estimated Selling Costs | 20.1%-60.1% | | **Total OREO** | **$8,134** | | | | [NOTE 7 – DERIVATIVE INSTRUMENTS AND HEDGING ACTIVITIES](index=33&type=page&id=NOTE%207%20%E2%80%93%20DERIVATIVE%20INSTRUMENTS%20AND%20HEDGING%20ACTIVITIES) This note describes the Company's use of derivative instruments, primarily interest rate swaps for commercial loans, which are not designated as hedging instruments. It outlines the credit risk associated with these derivatives and presents their fair values as assets and liabilities, along with the income recognized from these instruments - The Company uses interest rate swaps for commercial loans, entering into offsetting positions with counterparties to minimize risk, and these derivatives are not designated as hedging instruments, with changes in their fair value recorded in current earnings[127](index=127&type=chunk)[129](index=129&type=chunk) **Fair Value of Derivative Assets (September 30, 2022 vs. December 31, 2021):** | Derivative Type | Sep 30, 2022 Notional Amount (Thousands) | Sep 30, 2022 Fair Value (Thousands) | Dec 31, 2021 Notional Amount (Thousands) | Dec 31, 2021 Fair Value (Thousands) | | :------------------------------------- | :--------------------------------------- | :------------------------------------ | :--------------------------------------- | :------------------------------------ | | Interest Rate Lock Commitments – Mortgage Loans | $681 | $20 | $0 | $0 | | Interest Rate Swap Contracts – Commercial Loans | $440,626 | $24,102 | $446,490 | $3,508 | | **Total Derivatives not Designated as Hedging Instruments** | **$441,307** | **$24,122** | **$446,490** | **$3,508** | **Derivative Income (Nine Months Ended Sep 30, 2022 vs. 2021):** | Derivative Type | 2022 (Thousands) | 2021 (Thousands) | | :------------------------------------- | :--------------- | :--------------- | | Interest Rate Lock Commitments – Mortgage Loans | $20 | $3 | | Forward Sale Contracts – Mortgage Loans | $(20) | $(3) | | Interest Rate Swap Contracts – Commercial Loans | $738 | $188 | | **Total Derivative Income** | **$738** | **$188** | [NOTE 8 – FEDERAL HOME LOAN BANK BORROWINGS](index=34&type=page&id=NOTE%208%20%E2%80%93%20FEDERAL%20HOME%20LOAN%20BANK%20BORROWINGS) This note details the Company's Federal Home Loan Bank (FHLB) borrowings, which serve as an additional liquidity source. It provides the balance, weighted average interest rates, and scheduled maturities of these borrowings, which are secured by a blanket lien on select residential mortgages, multifamily loans, and commercial real estate loans **FHLB Borrowings (September 30, 2022 vs. December 31, 2021):** | Metric | Sep 30, 2022 (Thousands) | Dec 31, 2021 (Thousands) | | :------------------------------------- | :----------------------- | :----------------------- | | FHLB Borrowings | $30,000 | $7,000 | | Weighted Average Interest Rate | 3.13% | 1.61% | | Total Loans Pledged as Collateral | $1,400,000 | $1,100,000 | | Additional Borrowing Capacity | $807,800 | $667,300 | [NOTE 9 – COMMITMENTS AND CONTINGENCIES](index=35&type=page&id=NOTE%209%20%E2%80%93%20COMMITMENTS%20AND%20CONTINGENCIES) This note outlines the Company's commitments to extend credit and standby letters of credit, which represent off-balance sheet arrangements. It also describes the life-of-loss reserve maintained for unfunded loan commitments, computed using a methodology similar to the ACL for loans **Commitments and Letters of Credit (September 30, 2022 vs. December 31, 2021):** | Commitment Type | Sep 30, 2022 (Thousands) | Dec 31, 2021 (Thousands) | | :------------------------------------- | :----------------------- | :----------------------- | | Commitments to Extend Credit | $525,086 | $513,482 | | Standby Letters of Credit | $26,725 | $27,083 | | **Total** | **$551,811** | **$540,565** | **Life-of-Loss Reserve on Unfunded Loan Commitments (Nine Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | | :------------------------------------- | :--------------- | :--------------- | | Balance at Beginning of Period | $1,783 | $144 | | Impact of Adopting ASU 2016-13 | $0 | $2,908 | | Provision (Recovery) for Unfunded Commitments | $190 | $(945) | | **Total** | **$1,973** | **$2,107** | [NOTE 10 – TAX EFFECTS ON OTHER COMPREHENSIVE LOSS](index=36&type=page&id=NOTE%2010%20%E2%80%93%20TAX%20EFFECTS%20ON%20OTHER%20COMPREHENSIVE%20LOSS) This note presents the tax effects on components of other comprehensive loss, specifically focusing on net unrealized losses on securities available-for-sale and reclassification adjustments, both pre-tax and net of tax **Tax Effects on Other Comprehensive Loss (Nine Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 Pre-Tax Amount (Thousands) | 2022 Tax Benefit (Expense) (Thousands) | 2022 Net of Tax Amount (Thousands) | 2021 Pre-Tax Amount (Thousands) | 2021 Tax Benefit (Expense) (Thousands) | 2021 Net of Tax Amount (Thousands) | | :------------------------------------- | :------------------------------ | :------------------------------------- | :--------------------------------- | :------------------------------ | :------------------------------------- | :--------------------------------- | | Net Unrealized Losses Arising during the period | $(111,360) | $23,386 | $(87,974) | $(6,626) | $1,391 | $(5,235) | | Reclassification Adjustment for Gains included in Net Income | $(48) | $10 | $(38) | $(6,450) | $1,355 | $(5,095) | | **Other Comprehensive Loss** | **$(111,408)** | **$23,396** | **$(88,012)** | **$(13,076)** | **$2,746** | **$(10,330)** | [NOTE 11 – STOCK REPURCHASE PLAN](index=36&type=page&id=NOTE%2011%20%E2%80%93%20STOCK%20REPURCHASE%20PLAN) This note details the Company's common stock repurchase programs, including the authorization of an additional 750,000 shares in June 2022 and the completion of a prior 2,000,000 share program. It specifies the number of shares repurchased and the average price paid - On June 28, 2022, the Board authorized a new common stock repurchase program for an additional **750,000 shares** over 12 months, subject to regulatory non-objection[145](index=145&type=chunk) - During the three months ended September 30, 2022, **464,208 shares** of common stock were repurchased under the new program at a total cost of **$7.7 million**, averaging **$16.62 per share**[145](index=145&type=chunk) - A prior program authorized on December 13, 2021, for up to **2,000,000 shares**, was fully executed by April 28, 2022, with **1,969,593 shares** repurchased at an average price of **$16.46 per share**[146](index=146&type=chunk)[147](index=147&type=chunk) [ITEM 2 - MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS](index=36&type=section&id=ITEM%202%20-%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) This section provides management's perspective on the Company's financial condition and results of operations, highlighting material changes for the three and nine months ended September 30, 2022. It includes forward-looking statements, explanations of non-GAAP measures, critical accounting estimates, an overview of the Company, and detailed analysis of earnings, net interest income, credit losses, noninterest income and expense, financial condition, securities, loans, credit quality, deposits, FHLB borrowings, liquidity, capital resources, and off-balance sheet arrangements [Important Note Regarding Forward-Looking Statements](index=37&type=page&id=Important%20Note%20Regarding%20Forward-Looking%20Statements) This section cautions readers that the report contains forward-looking statements about the Company's financial condition, operations, and plans, which are subject to various risks and uncertainties. These risks include market interest rates, government policies, accounting changes, cybersecurity threats, liquidity, loan concentrations, and economic conditions, among others. Readers are advised not to unduly rely on these statements, as actual results may differ materially - Forward-looking statements are subject to various risks and uncertainties, including market interest rates, government policies, accounting changes (like CECL), cybersecurity threats, liquidity, and concentrations of loans secured by real estate[151](index=151&type=chunk)[152](index=152&type=chunk) [Explanation of Use of Non-GAAP Financial Measures](index=39&type=page&id=Explanation%20of%20Use%20of%20Non-GAAP%20Financial%20Measures) This section explains the use of non-GAAP financial measures, specifically net interest income on a fully taxable equivalent (FTE) basis, which management believes provides useful information for understanding underlying business performance and comparability within the financial services industry. It clarifies that this measure adjusts for the tax benefit of income on tax-exempt loans and securities - Management uses net interest income on a fully taxable equivalent (FTE) basis, a non-GAAP measure, to provide a comparable view of net interest income from taxable and tax-exempt sources, consistent with industry practice[156](index=156&type=chunk) [Critical Accounting Estimates](index=39&type=page&id=Critical%20Accounting%20Estimates) This section states that the Company's critical accounting estimates, involving significant judgments and assumptions in financial statement preparation, remain unchanged from those disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021 - Critical accounting estimates, involving significant judgments and assumptions, have remained unchanged from the disclosures in the Annual Report on Form 10-K for the year ended December 31, 2021[158](index=158&type=chunk) [Overview](index=39&type=page&id=Overview) This overview introduces Carter Bankshares, Inc. as a bank holding company with $4.1 billion in assets, operating in Virginia and North Carolina. It outlines the Company's primary revenue sources (interest on loans/securities, financial service fees) and expenses (cost of deposits, credit losses, operating costs). The strategic focus is on balance sheet restructuring for higher yields, infrastructure transformation for efficiency, and increasing fee income while managing expenses - Carter Bankshares, Inc. is a bank holding company with **$4.1 billion** in assets as of September 30, 2022, operating in Virginia and North Carolina[159](index=159&type=chunk) - The Company's strategic plan focuses on restructuring the balance sheet for diversification and higher-yielding assets, transforming infrastructure for operational efficiency and new products, and increasing fee income while monitoring operating expenses[161](index=161&type=chunk)[162](index=162&type=chunk) [Results of Operations and Financial Condition](index=40&type=page&id=Results%20of%20Operations%20and%20Financial%20Condition) This section provides a comprehensive analysis of the Company's financial performance and position, detailing key highlights for the three and nine months ended September 30, 2022. It covers earnings, net interest income, credit loss provisions, noninterest income and expenses, balance sheet changes, securities activity, loan portfolio composition, credit quality, deposits, FHLB borrowings, liquidity, and regulatory capital [Earnings Summary](index=40&type=page&id=Earnings%20Summary) The Company reported increased net income and diluted EPS for both the three and nine months ended September 30, 2022, driven by higher net interest income and reduced noninterest expenses, despite a decrease in noninterest income. Balance sheet highlights include a decrease in the securities portfolio, growth in total portfolio loans, and an increase in total deposits, alongside a decrease in total shareholders' equity due to unrealized losses and stock repurchases **Earnings Highlights (Three Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | Change (Thousands) | % Change | | :------------------------------------- | :--------------- | :--------------- | :----------------- | :------- | | Net Interest Income | $37,700 | $29,400 | $8,300 | 28.3% | | Recovery for Credit Losses | $(100) | $(400) | $300 | (81.4)% | | Total Noninterest Income | $5,200 | $6,900 | $(1,700) | (24.3)% | | Total Noninterest Expense | $23,500 | $24,700 | $(1,200) | (5.0)% | | Provision for Income Taxes | $5,000 | $900 | $4,100 | 438.0% | | Net Income | $14,400 | $11,200 | $3,200 | 29.0% | | Diluted EPS | $0.59 | $0.42 | $0.17 | 40.5% | **Earnings Highlights (Nine Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | Change (Thousands) | % Change | | :------------------------------------- | :--------------- | :--------------- | :----------------- | :------- | | Net Interest Income | $98,400 | $83,100 | $15,300 | 18.4% | | Provision for Credit Losses | $2,400 | $2,400 | $0 | 0.0% | | Total Noninterest Income | $16,200 | $23,100 | $(6,900) | (30.0)% | | Total Noninterest Expense | $69,400 | $76,000 | $(6,600) | (8.8)% | | Provision for Income Taxes | $8,100 | $2,700 | $5,400 | 196.4% | | Net Income | $34,500 | $26,000 | $8,500 | 32.8% | | Diluted EPS | $1.38 | $0.98 | $0.40 | 40.8% | **Balance Sheet Highlights (Sep 30, 2022 vs. Dec 31, 2021):** | Metric | Sep 30, 2022 | Dec 31, 2021 | Change | | :------------------------------------- | :----------- | :----------- | :----- | | Securities Portfolio | Decreased $71.2M | | | | Total Portfolio Loans | Increased $219.2M (10.4% annualized) | | | | Portfolio Loans to Deposit Ratio | 81.4% | 76.0% | +5.4% | | Total Deposits | Increased $27.5M | | | | ACL to Total Portfolio Loans Ratio | 3.11% | 3.41% | -0.30% | | Common Share Repurchase | 464,208 shares at $16.62/share | | | [Net Interest Income](index=42&type=page&id=Net%20Interest%20Income) Net interest income (NII) significantly increased for both the three and nine months ended September 30, 2022, primarily due to higher yields on loans and securities in a rising interest rate environment, coupled with a reduction in funding costs. The net interest margin also expanded. The Company's balance sheet management strategies, including deploying funds into higher-yielding assets and managing deposit composition, contributed to these positive trends, though rising rates may increase funding costs in the future **Net Interest Income (FTE) (Three Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | Change (Thousands) | % Change | | :------------------------------------- | :--------------- | :--------------- | :----------------- | :------- | | Net Interest Income (GAAP) | $37,725 | $29,401 | $8,324 | 28.3% | | Tax Equivalent Adjustment | $279 | $330 | $(51) | (15.5)% | | Net Interest Income (FTE) (Non-GAAP) | $38,004 | $29,731 | $8,273 | 27.8% | | Net Interest Margin (GAAP) | 3.72% | 2.92% | +0.80% | | | Net Interest Margin (FTE) (Non-GAAP) | 3.75% | 2.96% | +0.79% | | **Net Interest Income (FTE) (Nine Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | Change (Thousands) | % Change | | :------------------------------------- | :--------------- | :--------------- | :----------------- | :------- | | Net Interest Income (GAAP) | $98,406 | $83,133 | $15,273 | 18.4% | | Tax Equivalent Adjustment | $870 | $1,178 | $(308) | (26.1)% | | Net Interest Income (FTE) (Non-GAAP) | $99,276 | $84,311 | $14,965 | 17.7% | | Net Interest Margin (GAAP) | 3.28% | 2.80% | +0.48% | | | Net Interest Margin (FTE) (Non-GAAP) | 3.31% | 2.84% | +0.47% | | - Interest income increased due to higher yields on interest-earning assets (up **69 bps** for 3 months, **33 bps** for 9 months) and increased average interest-earning assets, while interest expense decreased due to the intentional runoff of higher-cost Certificates of Deposit (CDs)[182](index=182&type=chunk)[187](index=187&type=chunk) [Provision (Recovery) for Credit Losses](index=47&type=page&id=Provision%20%28Recovery%29%20for%20Credit%20Losses) The provision for credit losses increased for the three months ended September 30, 2022, primarily due to loan growth, increased qualitative reserves, and a charge-down on a syndicated C&I loan, partially offset by reserve releases in the 'other' segment. The provision for unfunded commitments also increased due to changes in reserve rates, influenced by construction loan risks - The provision for credit losses increased **$0.3 million** to **$(0.1) million** for the three months ended September 30, 2022, driven by loan growth, increased qualitative reserves (**$3.0 million**), and a **$3.4 million** charge-down on a purchased syndicated C&I loan (of which **$2.6 million** was previously reserved)[196](index=196&type=chunk) - The increase in qualitative reserves was attributed to residential mortgage and commercial construction portfolios, facing escalating project costs due to supply chain and labor disruptions[196](index=196&type=chunk) - The provision (recovery) for unfunded commitments increased **$0.2 million** and **$1.1 million** for the three and nine months ended September 30, 2022, respectively, due to a decline in reserve rates[199](index=199&type=chunk) [Noninterest Income](index=48&type=page&id=Noninterest%20Income) Total noninterest income decreased significantly for both the three and nine months ended September 30, 2022, primarily due to a sharp decline in net security gains caused by rising interest rates. Commercial loan swap fee income also decreased. These declines were partially offset by increases in insurance commissions, service charges, and gains from bank premises sales **Noninterest Income (Three Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | Change (Thousands) | % Change | | :------------------------------------- | :--------------- | :--------------- | :----------------- | :------- | | (Losses) Gains on Sales of Securities, net | $(4) | $1,341 | $(1,345) | (100.3)% | | Commercial Loan Swap Fee Income | $18 | $1,096 | $(1,078) | (98.4)% | | Insurance Commissions | $876 | $427 | $449 | 105.2% | | Service Charges, Commissions and Fees | $1,750 | $1,660 | $90 | 5.4% | | **Total Noninterest Income** | **$5,235** | **$6,915** | **$(1,680)** | **(24.3)%** | **Noninterest Income (Nine Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | Change (Thousands) | % Change | | :------------------------------------- | :--------------- | :--------------- | :----------------- | :------- | | (Losses) Gains on Sales of Securities, net | $48 | $6,450 | $(6,402) | (99.3)% | | Commercial Loan Swap Fee Income | $774 | $2,057 | $(1,283) | (62.4)% | | Insurance Commissions | $1,713 | $1,099 | $614 | 55.9% | | Service Charges, Commissions and Fees | $5,452 | $4,958 | $494 | 10.0% | | Gains on Sales and Write-downs of Bank Premises, net | $342 | $0 | $342 | NM | | **Total Noninterest Income** | **$16,174** | **$23,105** | **$(6,931)** | **(30.0)%** | [Noninterest Expense](index=49&type=page&id=Noninterest%20Expense) Total noninterest expense decreased for both the three and nine months ended September 30, 2022. The three-month decrease was mainly due to a reversal of tax credit amortization and lower losses on OREO sales. The nine-month decrease was primarily driven by a significant reduction in OREO write-downs, lower salaries and employee benefits (due to medical expenses and branch optimization), and reduced data processing and FDIC insurance expenses **Noninterest Expense (Three Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | Change (Thousands) | % Change | | :------------------------------------- | :--------------- | :--------------- | :----------------- | :------- | | Tax Credit Amortization | $(764) | $427 | $(1,191) | (278.9)% | | Losses on Sales and Write-downs of Other Real Estate Owned, net | $169 | $608 | $(439) | (72.2)% | | Other Noninterest Expense | $1,941 | $2,326 | $(385) | (16.6)% | | Data Processing | $833 | $1,018 | $(185) | (18.2)% | | Salaries and Employee Benefits | $13,520 | $12,816 | $704 | 5.5% | | **Total Noninterest Expense** | **$23,463** | **$24,685** | **$(1,222)** | **(5.0)%** | **Noninterest Expense (Nine Months Ended Sep 30, 2022 vs. 2021):** | Metric | 2022 (Thousands) | 2021 (Thousands) | Change (Thousands) | % Change | | :------------------------------------- | :--------------- | :--------------- | :----------------- | :------- | | Losses on Sales and Write-downs of Other Real Estate Owned, net | $268 | $3,423 | $(3,155) | (92.2)% | | Salaries and Employee Benefits | $37,721 | $39,084 | $(1,363) | (3.5)% | | Tax Credit Amortization | $466 | $1,281 | $(815) | (63.6)% | | Data Processing | $2,516 | $2,893 | $(377) | (13.0)% | | FDIC Insurance Expense | $1,540 | $1,882 | $(342) | (18.2)% | | **Total Noninterest Expense** | **$69,384** | **$76,049** | **$(6,665)** | **(8.8)%** | [Provision for Income Taxes](index=50&type=page&id=Provision%20for%20Income%20Taxes) The provision for income taxes increased significantly for both the three and nine months ended September 30, 2022, corresponding with higher pre-tax income. The effective tax rate also rose, primarily due to increased pre-tax income and lower tax-exempt interest income, along with an extended in-service date for a tax credit **Income Tax Provision and Effective Tax Rate (Three and Nine Months Ended Sep 30, 2022 vs. 2021):** | Metric | Three Months 2022 (Thousands) | Three Months 2021 (Thousands) | Nine Months 2022 (Thousands) | Nine Months 2021 (Thousands) | | :------------------------------------- | :---------------------------- | :---------------------------- | :--------------------------- | :--------------------------- | | Income Tax Provision | $5,009 | $931 | $8,130 | $2,743 | | Pre-tax Income | $19,417 | $12,104 | $42,639 | $28,723 | | Effective Tax Rate | 25.8% | 7.7% | 19.1% | 9.5% | - The increase in the effective tax rate is primarily due to a higher level of pre-tax income, lower tax-exempt interest income, and updated information extending the in-service date on a new tax credit from 2022 to 2023[207](index=207&type=chunk) [Financial Condition](index=50&type=page&id=Financial%20Condition) The Company's total assets slightly decreased, driven by a significant reduction in Federal Reserve Bank excess reserves, which were redeployed into higher-yielding loans and securities. Total portfolio loans increased, while the securities portfolio decreased due to redeployment and fair value declines. Total deposits increased, with a shift away from higher-cost CDs. Total capital decreased primarily due to unrealized losses on available-for-sale securities and common stock repurchases, though the Company remains well-capitalized **Financial Condition Highlights (September 30, 2022 vs. December 31, 2021):** | Metric | Sep 30, 2022 (Thousands) | Dec 31, 2021 (Thousands) | Change (Thousands) | | :------------------------------------- | :----------------------- | :----------------------- | :----------------- | | Total Assets | $4,100,000 | $4,119,400 | $(19,400) | | Federal Reserve Bank Excess Reserves | $21,800 | $176,200 | $(154,400) | | Total Portfolio Loans | $3,000,000 | $2,800,000 | $200,000 | | Securities Portfolio | $851,200 | $922,400 | $(71,200) | | Total Deposits | $3,725,900 | $3,698,500 | $27,400 | | Total Capital | $314,800 | $407,600 | $(92,800) | | ACL to Total Portfolio Loans | 3.11% | 3.41% | -0.30% | | Tier 1 Capital Ratio | 12.80% | 14.21% | -1.41% | | Leverage Ratio | 10.11% | 10.62% | -0.51% | | Total Risk-Based Capital Ratio | 14.06% | 15.46% | -1.40% | [Securities Activity](index=51&type=page&id=Securities%20Activity) The securities portfolio decreased due to redeployment into higher-yielding loans and a decline in fair value from rising interest rates. Gross unrealized losses significantly increased, primarily driven by upward shifts in the intermediate and long-term Treasury yield curve. The Company maintains a diversified portfolio with a substantial portion in variable-rate securities to mitigate interest rate risk, and management expects full recovery of amortized cost as losses are not credit-related **Available-for-Sale Securities Composition (September 30, 2022 vs. December 31, 2021):** | Security Type | Sep 30, 2022 (Thousands) | Dec 31, 2021 (Thousands) | Change (Thousands) | | :------------------------------------- | :----------------------- | :----------------------- | :----------------- | | U.S. Treasury Securities | $17,748 | $4,413 | $13,335 | | Commercial Mortgage-Backed Securities | $37,082 | $4,168 | $32,914 | | Small Business Administration | $50,443 | $108,914 | $(58,471) | | States and Political Subdivisions | $228,655 | $262,202 | $(33,547) | | **Total Debt Securities** | **$851,211** | **$922,400** | **$(71,189)** | - The securities portfolio decreased by **$71.2 million**, comprising **20.7%** of total assets at September 30, 2022, down from **22.3%** at December 31, 2021, due to redeployment into higher-yielding loans and fair value declines[218](index=218&type=chunk) - At September 30, 2022, total gross unrealized losses in the available-for-sale portfolio were **$109.7 million**, primarily due to upward movement in interest rates, particularly in intermediate and long-term Treasury yields[219](index=219&type=chunk)[221](index=221&type=chunk)[223](index=223&type=chunk) [Loan Composition](index=52&type=page&id=Loan%20Composition) The total portfolio loans increased, driven by strong growth in commercial real estate, residential mortgage, and construction portfolios. The loan portfolio is diversified by rate type, with a significant portion in floating and variable-rate loans. The Company actively monitors credit risk, particularly in the hospitality industry, and manages concentrations through specific loan segment limits and underwriting policies **Loan Portfolio Summary (September 30, 2022 vs. December 31, 2021):** | Loan Type | Sep 30, 2022 (Thousands) | Dec 31, 2021 (Thousands) | Change (Thousands) | | :------------------------------------- | :----------------------- | :----------------------- | :----------------- | | Commercial Real Estate | $1,365,348 | $1,323,252 | $42,096 | | Residential Mortgages | $617,681 | $457,988 | $159,693 | | Construction | $350,037 | $282,947 | $67,090 | | **Total Portfolio Loans** | **$3,031,349** | **$2,812,129** | **$219,220** | - As of September 30, 2022, the loan portfolio was comprised of **28.9%** floating rate loans, **39.9%** variable rate loans, and **31.2%** fixed rate loans[228](index=228&type=chunk) - Exposure to the hospitality industry was approximately **$368.2 million**, or **12.1%** of total portfolio loans, primarily secured by upscale or top-tier flagged hotels[229](index=229&type=chunk) [Credit Quality](index=55&type=page&id=Credit%20Quality) The Company actively manages credit risk through monthly Criticized Asset Committee reviews and quarterly Board Credit Risk Committee meetings, which monitor high-risk loans, approve segment limits, and assess ACL adequacy. Nonperforming assets decreased, primarily due to a reduction in Other Real Estate Owned (OREO) from sales and branch optimization. The Company also updated its Troubled Debt Restructuring (TDR) disclosures following the adoption of ASU No. 2022-02 - Nonperforming assets decreased by **$3.2 million** to **$15.1 million** at September 30, 2022, compared to December 31, 2021, primarily due to a **$2.8 million** decrease in OREO from sales and payments[243](index=243&type=chunk) **Nonperforming Assets (September 30, 2022 vs. December 31, 2021):** | Metric | Sep 30, 2022 (Thousands) | Dec 31, 2021 (Thousands) | Change (Thousands) | | :------------------------------------- | :----------------------- | :----------------------- | :----------------- | | Total Nonperforming Loans | $7,010 | $7,397 | $(387) | | Other Real Estate Owned | $8,134 | $10,916 | $(2,782) | | **Total Nonperforming Assets** | **$15,144** | **$18,313** | **$(3,169)** | - The Company adopted ASU 2022-02, eliminating TDR accounting prospectively for restructurings occurring on or after January 1, 2022[246](index=246&type=chunk) [Allowance for Credit Losses](index=57&type=page&id=Allowance%20for%20Credit%20Losses) The Allowance for Credit Losses (ACL) decreased as a percentage of total portfolio loans, driven by a release of reserves in the 'other' segment due to principal pay-downs, despite increases from loan growth and qualitative reserves. Net charge-offs also decreased. The Company's credit exposures by internal risk ratings show a decrease in special mention, substandard, and doubtful loans **ACL Allocation by Segment (September 30, 2022 vs. December 31, 2021):** | Segment | Sep 30, 2022 Amount (Thousands) | Sep 30, 2022 % of Loans | Dec 31, 2021 Amount (Thousands) | Dec 31, 2021 % of Loans | | :------------------------------------- | :------------------------------ | :---------------------- | :------------------------------ | :---------------------- | | Commercial Real Estate | $17,375 | 45.0% | $17,297 | 47.0% | | Commercial & Industrial | $3,798 | 10.8% | $4,111 | 12.3% | | Residential Mortgages | $5,622 | 20.4% | $4,368 | 16.3% | | Other Consumer | $1,616 | 1.5% | $1,493 | 1.6% | | Construction | $8,688 | 11.5% | $6,939 | 10.1% | | Other | $57,065 | 10.7% | $61,731 | 12.7% | | **Balance End of Year** | **$94,164** | **100.0%** | **$95,939** | **100.0%** | **Credit Quality Ratios (September 30, 2022 vs. December 31, 2021):** | Metric | Sep 30, 2022 | Dec 31, 2021 | | :------------------------------------- | :----------- | :----------- | | Allowance for Credit Losses to Total Portfolio Loans | 3.11% | 3.41% | | Nonperforming Loans to Total Portfolio Loans | 0.23% | 0.26% | | Allowance for Credit Losses to Nonperforming Loans | 1,343.28% | 1,297.00% | | Net Charge-offs to Average Portfolio Loans (annualized) | 0.19% | 0.79% | - Special mention, substandard, and doubtful loans decreased by **$24.7 million** to **$170.6 million** at September 30, 2022, compared to **$195.3 million** at December 31, 2021[256](index=256&type=chunk) [Deposits](index=59&type=page&id=Deposits) Total deposits increased, driven by growth in core deposits (interest-bearing demand, money market, and savings accounts), while Certificates of Deposit (CDs) intentionally declined due to the runoff of higher-cost accounts. Noninterest-bearing deposits comprised a smaller percentage of total deposits **Deposit Composition (September 30, 2022 vs. December 31, 2021):** | Deposit Type | Sep 30, 2022 (Thousands) | Dec 31, 2021 (Thousands) | Change (Thousands) | % Change | | :------------------------------------- | :----------------------- | :----------------------- | :----------------- | :------- | | Noninterest-Bearing Demand | $718,549 | $747,909 | $(29,360) | (3.9)% | | Interest-Bearing Demand | $509,949 | $452,644 | $57,305 | 12.7% | | Money Market | $517,031 | $463,056 | $53,975 | 11.7% | | Savings | $731,747 | $690,549 | $41,198 | 6.0% | | Certificate of Deposits | $1,248,653 | $1,344,318 | $(95,665) | (7.1)% | | **Total Deposits** | **$3,725,929** | **$3,698,476** | **$27,453** | **0.7%** | - Core deposits (noninterest-bearing demand, interest-bearing demand, money market, and savings accounts) increased by **$123.1 million**, or **7.0%** on an annualized basis[260](index=260&type=chunk) - Noninterest-bearing deposits comprised **19.3%** of total deposits at September 30, 2022, down from **20.2%** at December 31, 2021[260](index=260&type=chunk) [Federal Home Loan Bank Borrowings ("FHLB")](index=60&type=page&id=Federal%20Home%20Loan%20Bank%20Borrowings%20%28%22FHLB%22%29) FHLB borrowings increased significantly, serving as a short-term funding source due to higher loan demand. The Company maintains FHLB stock to access products and services, with the investment carried at cost and evaluated for impairment based on ultimate recoverability **FHLB Advances Summary (September 30, 2022 vs. December 31, 2021):** | Metric | Sep 30, 2022 (Thousands) | Dec 31, 2021 (Thousands) | | :------------------------------------- | :----------------------- | :----------------------- | | Balance at Period End | $30,000 | $7,000 | | Average Balance during the Period | $3,978 | $25,986 | | Average Interest Rate during the Period | 1.58% | 1.20% | | Maximum Month-end Balance during the Period | $30,000 | $35,000 | | Average Interest Rate at Period End | 3.13% | 1.61% | - FHLB borrowings increased to **$30.0 million** at September 30, 2022, from **$7.0 million** at December 31, 2021, primarily due to higher loan demand in Q3 2022[263](index=263&type=chunk) [Liquidity and Capital Resources](index=60&type=page&id=Liquidity%20and%20Capital%20Resources) The Company manages liquidity to meet cash and collateral obligations, primarily relying on a stable customer deposit base. Additional funding sources include FHLB borrowing availability, federal funds lines, and access to institutional CD and brokered deposit markets. Highly liquid assets, including unpledged securities and FRB excess reserves, provide a cushion against liquidity stress. Total shareholders' equity decreased due to unrealized losses on securities and available-for-sale securities and stock repurchases - The Company's primary funding and liquidity source is a stable customer deposit base, supplemented by FHLB borrowing availability (**$807.8 million**), federal funds lines (**$145.0 million**), and access to institutional CD and brokered deposit markets[267](index=267&type=chunk)[271](index=271&type=chunk) - Highly liquid assets totaled **$652.1 million** at September 30, 2022, representing **15.9%** of total assets[269](index=269&type=chunk) **Liquidity Sources (September 30, 2022 vs. December 31, 2021):** | Metric | Sep 30, 2022 (Thousands) | Dec 31, 2021 (Thousands) | | :------------------------------------- | :----------------------- | :----------------------- | | Cash and Due From Banks | $38,749 | $36,698 | | Interest-bearing Deposits in Other Financial Institutions | $5,129 | $64,905 | | Federal Reserve Bank Excess Reserves | $21,830 | $176,196 | | Unpledged Investment Securities | $623,653 | $743,836 | | FHLB Borrowing Availability | $807,846 | $667,307 | | Unsecured Lines of Credit | $145,000 | $145,000 | | **Total Liquidity Sources** | **$1,704,187** | **$1,862,359** | [Regulatory Capital Requirements](index=61&type=page&id=Regulatory%20Capital%20Requirements) Total shareholders' equity decreased due to unrealized losses on available-for-sale securities and common stock repurchases. Despite this, the Company and its Bank remain well-capitalized, exceeding all minimum regulatory capital ratios, including Common Equity Tier 1, Tier 1, and Total Capital ratios. The Company elected to retain existing treatment for accumulated other comprehensive income, which reduces volatility in regulatory capital levels - Total shareholders' equity decreased by **$92.8 million** to **$314.8 million** at September 30, 2022, primarily due to an **$88.0 million** (net of tax) decline in other comprehensive loss from unrealized losses on available-for-sale securities and a **$40.1 million** decrease from common stock repurchases[272](index=272&type=chunk) - The Company elected to retain existing treatment for accumulated other comprehensive income, which reduces the volatility of regulatory capital levels[276](index=276&type=chunk) **Regulatory Capital Ratios (September 30, 2022 vs. December 31, 2021):** | Metric | Minimum Required Basel III | Sep 30, 2022 Ratio | Dec 31, 2021 Ratio | | :------------------------------------- | :------------------------- | :----------------- | :----------------- | | **Carter Bankshares, Inc.:** | | | | | Leverage Ratio | 4.00% | 10.11% | 10.62% | | Common Equity Tier 1 (to Risk-weighted Assets) | 7.00% | 12.80% | 14.21% | | Tier 1 Capital (to Risk-weighted Assets) | 8.50% | 12.80% | 14.21% | | Total Capital (to Risk-weighted Assets) | 10.50% | 14.06% | 15.46% | | **Carter Bank & Trust:** | | | | | Leverage Ratio | 4.00% | 10.06% | 10.49% | | Common Equity Tier 1 (to Risk-weighted Assets) | 7.00% | 12.74% | 14.04% | | Tier 1 Capital (to Risk-weighted Assets) | 8.50% | 12.74% | 14.04% | | Total Capital (to Risk-weighted Assets) | 10.50% | 14.00% | 15.29% | [Contractual Obligations](index=63&type=page&id=Contractual%20Obligations) As of September 30, 2022, there have been no material changes to the Company's contractual obligations and cash commitments outside the ordinary course of business, as previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021 - No material changes to contractual obligations and cash commitments have occurred since December 31, 2021[280](index=280&type=chunk) [Off-Balance Sheet Arrangements](index=63&type=page&id=Off-Balance%20Sheet%20Arrangements) As of September 30, 2022, there have been no material changes to the Company's off-balance sheet arrangements, as previously disclosed in the Annual Report on Form 10-K for the year ended December 31, 2021 - No material changes to off-balance sheet arrangements have occurred since December 31, 2021[281](index=281&type=chunk) [ITEM 3 - QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK](index=60&type=section&id=ITEM%203%20-%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section addresses the Company's market risk, primarily exposure to interest rate changes, which can affect earnings and capital. The Asset and Liability Committee (ALCO) monitors and manages this risk using an asset liability model (ALM) to simulate various rate shock scenarios. These simulations analyze the impact on projected net interest income (NII) and economic value of equity (EVE) over different time horizons, indicating the Company's asset-sensitive balance sheet position - Market risk, primarily interest rate risk, is monitored and managed by the ALCO using an asset liability model (ALM) to simulate rate shock scenarios on projected net interest income (NII) and economic value of equity (EVE)[283](index=283&type=chunk)[284](index=284&type=chunk) **NII and EVE Rate Shock Analyses (September 30, 2022 vs. December 31, 2021):** | Change in Interest Rate (basis points) | Sep 30, 2022 % Change in Pretax Net Interest Income | Sep 30, 2022 % Change in Economic Value of Equity | Dec 31, 2021 % Change in Pretax Net Interest Income | Dec 31, 2021 % Change in Economic Value of Equity | | :------------------------------------- | :-------------------------------------------------- | :------------------------------------------------ | :-------------------------------------------------- | :------------------------------------------------ | | 400 | 18.6% | (3.7)% | 43.6% | 24.6% | | 300 | 14.1% | (1.6)% | 33.1% | 20.6% | | 200 | 9.5% | (0.3)% | 22.5% | 15.4% | | 100 | 4.7% | 0.4% | 11.4% | 8.6% | | -100 | (6.4)% | (3.1)% | (2.4)% | (7.0)% | - The Company's balance sheet is asset sensitive, indicating increased pretax NII in a rising interest rate environment and decreased NII in a declining rate environment, becoming less asset sensitive at September 30, 2022, compared to December 31, 2021, due to redeployment of cash and yield curve shifts[290](index=290&type=chunk)[291](index=291&type=chunk) [ITEM 4 - CONTROLS AND PROCEDURES](index=61&type=section&id=ITEM%204%20-%20CONTROLS%20AND%20PROCEDURES) Management, under the supervision of the CEO and CFO, evaluated the effectiveness of the Company's disclosure controls and procedures as of September 30, 2022, concluding they were effective. No material changes were made to internal control over financial reporting during the quarter - The CEO and CFO concluded that the design and operation of the Company's disclosure controls and procedures were effective as of September 30, 2022[295](index=295&type=chunk) - No material changes were made to internal control over financial reporting during the quarter ended September 30, 2022[296](index=296&type=chunk) PART II – OTHER INFORMATION [ITEM 1 - LEGAL PROCEEDINGS](index=62&type=section&id=ITEM%201%20-%20LEGAL%20PROCEEDINGS) The Company is subject to various legal and administrative proceedings in the normal course of business. As of September 30, 2022, management does not believe that the disposition of any pending or threatened legal proceedings will have a material adverse effect on the Company's business, financial position, or results of operations - As of September 30, 2022, no material legal proceedings were pending or threatened against the Company[298](index=298&type=chunk) [ITEM 1A - RISK FACTORS](index=62&type=section&id=ITEM%201A%20-%20RISK%20FACTORS) As of September 30, 2022, there have been no material changes in the risk factors faced by the Company from those disclosed in its 2021 Annual Report on Form 10-K - No material changes in risk factors have occurred since the 2021 Annual Report on Form 10-K[299](index=299&type=chunk) [ITEM 2 - UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS](index=62&type=section&id=ITEM%202%20-%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the Company's common share repurchase programs. A prior program for 2,000,000 shares was exhausted by April 28, 2022. A new program, authorized in June 2022, allows for the purchase of up to 750,000 additional shares, with 464,208 shares repurchased during the quarter ended September 30, 2022 - A prior common share repurchase program for up to **2,000,000 shares**, authorized in December 2021, was fully executed by April 28, 2022[300](index=300&type=chunk) - A new common share repurchase program for up to **750,000 shares** was authorized in June 2022, effective August 1, 2022[301](index=301&type=chunk) **Issuer Purchases of Equity Securities (Quarter Ended Sep 30, 2022):** | Period | Total Number of Shares Purchased | Average Price Paid per Share | | :------------------------------------- | :------------------------------- | :--------------------------- | | July 1 - July 31, 2022 | 0 | $0 | | August 1 - August 31, 2022 | 210,862 | $16.63 | | September 1 - September 30, 2022 | 253,346 | $16.62 | | **Total** | **464,208** | **$16.62** | [ITEM 3 - DEFAULTS UPON SENIOR SECURITIES](index=62&type=section&id=ITEM%203%20-%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) This section states that there were no defaults upon senior securities during the reporting period - None[302](index=302&type=chunk) [ITEM 4 - MINE SAFETY DISCLOSURES](index=63&type=section&id=ITEM%204%20-%20MINE%20SAFETY%20DISCLOSURES) This section states that there are no mine safety disclosures to report - None[303](index=303&type=chunk) [ITEM 5 - OTHER INFORMATION](index=63&type=section&id=ITEM%205%20-%20OTHER%20INFORMATION) This section indicates that there is no other information to disclose for the reporting period - None[304](index=304&type=chunk) [ITEM 6 - EXHIBITS](index=63&type=section&id=ITEM%206%20-%20EXHIBITS) This section lists the exhibits filed as part of the Form 10-Q, including organizational documents, certifications by executive officers, and Inline XBRL taxonomy documents - Exhibits include the Agreement and Plan of Reorganization, Articles of Incorporation, Bylaws, Certifications by principal executive and financial officers, and Inline XBRL Instance Document and Taxonomy Extensions[305](index=305&type=chunk) SIGNATURES - The report was signed on November 4, 2022, by Litz H. Van Dyke, Chief Executive Officer, and Wendy S. Bell, Chief Financial Officer[309](index=309&type=chunk)
Carter Bankshares(CARE) - 2022 Q2 - Quarterly Report
2022-08-02 16:00
[PART I - FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20-%20FINANCIAL%20INFORMATION) This section presents the company's financial statements, management's analysis, market risk disclosures, and internal controls [Financial Statements](index=3&type=section&id=ITEM%201%20%E2%80%93%20FINANCIAL%20STATEMENTS) This section presents the unaudited consolidated financial statements, including balance sheets, income statements, and cash flows, for the quarter ended June 30, 2022 Consolidated Balance Sheet Highlights (Unaudited, in Thousands) | (Dollars in Thousands) | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Assets** | **$4,123,280** | **$4,133,746** | | Portfolio Loans, net | $2,899,915 | $2,716,190 | | Securities Available-for-Sale | $907,034 | $922,400 | | Total Deposits | $3,753,393 | $3,698,476 | | **Total Liabilities** | **$3,789,138** | **$3,726,150** | | **Total Shareholders' Equity** | **$334,142** | **$407,596** | Consolidated Income Statement Highlights (Unaudited, in Thousands, Except EPS) | (Dollars in Thousands, Except EPS) | Three Months Ended June 30, 2022 | Three Months Ended June 30, 2021 | Six Months Ended June 30, 2022 | Six Months Ended June 30, 2021 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Income | $32,459 | $27,203 | $60,681 | $53,732 | | Provision for Credit Losses | $1,814 | $967 | $2,444 | $2,824 | | **Net Income** | **$10,778** | **$5,432** | **$20,101** | **$14,807** | | Diluted Earnings per Share | $0.44 | $0.21 | $0.80 | $0.56 | - The company experienced a significant other comprehensive loss of **$61.7 million** for the six months ended June 30, 2022, primarily due to net unrealized losses on available-for-sale securities, contrasting with a **$5.6 million** loss in the same period of 2021[15](index=15&type=chunk)[17](index=17&type=chunk) [Notes to Unaudited Consolidated Financial Statements](index=8&type=section&id=Notes%20to%20Unaudited%20Consolidated%20Financial%20Statements) These notes detail accounting policies, new standard adoptions, loan portfolio composition, allowance for credit losses, and stock repurchase programs - The company early adopted ASU No. 2022-02 on April 1, 2022, eliminating the Troubled Debt Restructuring (TDR) accounting model, which had no material effect on consolidated financial statements[25](index=25&type=chunk) Loan Portfolio Composition (in thousands) | Loan Category | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Commercial Real Estate | $1,389,117 | $1,323,252 | | Commercial and Industrial | $336,477 | $345,376 | | Residential Mortgages | $559,313 | $457,988 | | Other Consumer | $48,033 | $44,666 | | Construction | $322,731 | $282,947 | | Other | $342,225 | $357,900 | | **Total Portfolio Loans** | **$2,997,896** | **$2,812,129** | - The Allowance for Credit Losses (ACL) stood at **$98.0 million**, or **3.27%** of total portfolio loans, as of June 30, 2022, compared to **$95.9 million**, or **3.41%** of loans, at December 31, 2021[102](index=102&type=chunk)[250](index=250&type=chunk) - The company's stock repurchase program for up to **2,000,000 shares** was completed on April 28, 2022, and a new program to purchase an additional **750,000 shares** was authorized on June 28, 2022[153](index=153&type=chunk)[154](index=154&type=chunk) [Management's Discussion and Analysis of Financial Condition and Results of Operations (MD&A)](index=37&type=section&id=ITEM%202%20-%20MANAGEMENT%27S%20DISCUSSION%20AND%20ANALYSIS%20OF%20FINANCIAL%20CONDITION%20AND%20RESULTS%20OF%20OPERATIONS) Management analyzes the company's financial performance and condition, focusing on earnings, balance sheet changes, credit quality, liquidity, and capital resources [Earnings Summary](index=41&type=section&id=Earnings%20Summary) The company reported strong earnings growth in Q2 2022, driven by increased net interest income and reduced noninterest expenses Quarterly Performance Highlights (Q2 2022 vs Q2 2021, in Millions) | Metric | Q2 2022 | Q2 2021 | | :--- | :--- | :--- | | Net Interest Income | $32.5 million | $27.2 million | | Provision for Credit Losses | $1.8 million | $1.0 million | | Noninterest Income | $5.6 million | $7.2 million | | Noninterest Expense | $23.4 million | $27.8 million | | Net Income | $10.8 million | $5.4 million | [Net Interest Income](index=42&type=section&id=Net%20Interest%20Income) Net interest income and margin significantly improved in Q2 2022 due to higher asset yields and lower funding costs in a rising rate environment Net Interest Margin (FTE, Non-GAAP) | Period | Q2 2022 | Q2 2021 | H1 2022 | H1 2021 | | :--- | :--- | :--- | :--- | :--- | | Net Interest Margin (FTE) | 3.27% | 2.79% | 3.09% | 2.78% | - The average rate earned on loans increased by **33 basis points** in Q2 2022 compared to Q2 2021, while the average rate paid on interest-bearing deposits decreased by **20 basis points** from **0.79%** to **0.59%**[185](index=185&type=chunk)[189](index=189&type=chunk) [Financial Condition](index=51&type=section&id=Financial%20Condition) Total assets remained stable, with strategic loan growth funded by cash redeployment, deposit shifts, and a decrease in shareholders' equity due to unrealized losses and repurchases - Total portfolio loans increased by **$185.8 million** since year-end 2021, driven by growth in residential mortgages (**+$101.3 million**), commercial real estate (**+$65.9 million**), and construction (**+$39.8 million**)[213](index=213&type=chunk) - The securities portfolio had gross unrealized losses of **$76.5 million** at June 30, 2022, a significant increase from **$7.8 million** at year-end 2021, primarily attributed to the sharp rise in market interest rates[223](index=223&type=chunk)[224](index=224&type=chunk) - Total shareholders' equity decreased by **$73.5 million** to **$334.1 million**, impacted by a **$61.7 million** net-of-tax decline in accumulated other comprehensive income (AOCI) and **$32.4 million** in common stock repurchases[217](index=217&type=chunk)[273](index=273&type=chunk) [Credit Quality](index=55&type=section&id=Credit%20Quality) Nonperforming assets increased due to a rise in nonperforming loans, partially offset by a decrease in OREO, while the ACL ratio slightly declined Nonperforming Assets (in thousands) | Category | June 30, 2022 | December 31, 2021 | | :--- | :--- | :--- | | Nonperforming Loans | $12,029 | $7,397 | | Other Real Estate Owned | $8,432 | $10,916 | | **Total Nonperforming Assets** | **$20,461** | **$18,313** | - The increase in nonperforming loans was primarily due to the deterioration of a purchased syndicated C&I loan totaling **$4.9 million**[244](index=244&type=chunk) [Liquidity and Capital Resources](index=61&type=section&id=Liquidity%20and%20Capital%20Resources) The company maintains strong liquidity and capital, with regulatory ratios exceeding minimums, despite a decrease due to stock repurchases Regulatory Capital Ratios | Ratio (Carter Bankshares, Inc.) | June 30, 2022 | December 31, 2021 | Minimum Required | | :--- | :--- | :--- | :--- | | Leverage Ratio | 9.96% | 10.62% | 4.00% | | Common Equity Tier 1 | 12.70% | 14.21% | 7.00% | | Total Capital | 13.96% | 15.46% | 10.50% | [Quantitative and Qualitative Disclosures About Market Risk](index=59&type=section&id=ITEM%203%20-%20QUANTITATIVE%20AND%20QUALITATIVE%20DISCLOSURES%20ABOUT%20MARKET%20RISK) This section details the company's interest rate risk management, showing an asset-sensitive balance sheet with NII expected to increase in rising rate scenarios Interest Rate Sensitivity Analysis (as of June 30, 2022) | Change in Interest Rate (bps) | % Change in Pretax NII | % Change in EVE | | :--- | :--- | :--- | | +400 | 21.6% | 3.9% | | +300 | 16.3% | 4.3% | | +200 | 11.0% | 3.8% | | +100 | 5.6% | 2.5% | | -100 | (7.1)% | (6.3)% | - The company's balance sheet is asset-sensitive, but less so than at the end of 2021, due to deploying floating-rate cash into fixed and floating-rate loans and securities, and shifts in the yield curve[292](index=292&type=chunk) [Controls and Procedures](index=60&type=section&id=ITEM%204%20-%20CONTROLS%20AND%20PROCEDURES) Management concluded that disclosure controls and procedures were effective as of June 30, 2022, with no material changes to internal controls - The CEO and CFO concluded that the company's disclosure controls and procedures were effective as of June 30, 2022[296](index=296&type=chunk) - No material changes were made to the company's internal control over financial reporting during the quarter ended June 30, 2022[297](index=297&type=chunk) [PART II – OTHER INFORMATION](index=61&type=section&id=PART%20II%20%E2%80%93%20OTHER%20INFORMATION) This part provides additional information including legal proceedings, risk factors, equity security sales, and other required disclosures [Legal Proceedings](index=61&type=section&id=ITEM%201%20-%20LEGAL%20PROCEEDINGS) As of June 30, 2022, no material legal proceedings were pending or threatened against the company - As of June 30, 2022, no material legal proceedings were pending or threatened against the Company[299](index=299&type=chunk) [Risk Factors](index=61&type=section&id=ITEM%201A%20-%20RISK%20FACTORS) No material changes in risk factors were reported compared to the 2021 Annual Report on Form 10-K - There have been no material changes in the risk factors from those disclosed in the 2021 Annual Report on Form 10-K[300](index=300&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=61&type=section&id=ITEM%202%20-%20UNREGISTERED%20SALES%20OF%20EQUITY%20SECURITIES%20AND%20USE%20OF%20PROCEEDS) This section details the company's stock repurchase activities, including the completion of one program and the authorization of a new one Issuer Purchases of Equity Securities (Q2 2022) | Period | Total Shares Purchased | Average Price Paid per Share | | :--- | :--- | :--- | | April 1 - April 30, 2022 | 446,436 | $17.44 | | May 1 - May 31, 2022 | — | — | | June 1 - June 30, 2022 | — | — | | **Total** | **446,436** | **—** | - A new stock repurchase program for up to **750,000 shares** was authorized by the Board on June 28, 2022, effective August 1, 2022[302](index=302&type=chunk) [Defaults Upon Senior Securities](index=61&type=section&id=ITEM%203%20-%20DEFAULTS%20UPON%20SENIOR%20SECURITIES) The company reported no defaults upon senior securities - None[302](index=302&type=chunk) [Mine Safety Disclosures](index=61&type=section&id=ITEM%204%20-%20MINE%20SAFETY%20DISCLOSURES) The company reported no mine safety disclosures - None[303](index=303&type=chunk) [Other Information](index=62&type=section&id=ITEM%205%20-%20OTHER%20INFORMATION) The company reported no other information - None[305](index=305&type=chunk) [Exhibits](index=62&type=section&id=ITEM%206%20-%20EXHIBITS) This section lists exhibits filed with the Form 10-Q, including CEO/CFO certifications and a new deferred compensation plan - The filing includes required CEO and CFO certifications and details of a new Non-Qualified Deferred Compensation Plan adopted on May 19, 2022[305](index=305&type=chunk)
Carter Bankshares(CARE) - 2022 Q1 - Quarterly Report
2022-05-04 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2022 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39731 CARTER BANKSHARES, INC. (Exact name of registrant as specified in its charter) Virginia 85-3365661 (State or other ...
Carter Bankshares(CARE) - 2021 Q4 - Annual Report
2022-03-10 16:00
Table of Contents Virginia 85-3365661 (State or other jurisdiction of incorporation or organization) (I.R.S. Employer Identification No.) Securities registered pursuant to Section 12(b) of the Act: Title of each class Trading Symbol(s) Name of each exchange on which registered Common Stock, $1 par value CARE Nasdaq Global Select Market UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For t ...
Carter Bankshares(CARE) - 2021 Q3 - Quarterly Report
2021-11-03 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended September 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39731 CARTER BANKSHARES, INC. (Exact name of registrant as specified in its charter) Virginia 85-3365661 (State or o ...
Carter Bankshares(CARE) - 2021 Q2 - Quarterly Report
2021-08-04 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended June 30, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39731 CARTER BANKSHARES, INC. (Name of registrant as specified in its charter) Virginia 85-3365661 (State or other jurisd ...
Carter Bankshares(CARE) - 2021 Q1 - Quarterly Report
2021-05-06 16:00
Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the quarterly period ended March 31, 2021 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-39731 CARTER BANKSHARES, INC. (Name of registrant as specified in its charter) Virginia 85-3365661 (State or other juris ...
Carter Bankshares(CARE) - 2020 Q4 - Annual Report
2021-03-11 16:00
UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K x ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2020 ¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission file number: 001-39731 CARTER BANKSHARES, INC. (Exact name of registrant as specified in its charter) Virginia 85-3365661 (State or other jurisdiction of incorpora ...