Carter Bankshares misses Q3 profit expectations

Carter Bankshares

23/10/2025 13:11

Overview

Carter Bankshares Q3 net income and EPS miss analyst expectations

Net interest income for Q3 increased 4.2% from prior quarter

Company's financial results impacted by nonaccrual loans from Justice Entities

Outlook

Company expects to benefit from Federal Reserve's short-term interest rate reductions

Company anticipates loan growth from prior construction lending over next 12-18 months

Carter Bankshares aims to resolve large nonperforming credit relationship

Result Drivers

NONACCRUAL LOANS - Financial results significantly impacted by nonaccrual loans from Justice Entities, affecting interest income by $6.5 mln in Q3

LOAN GROWTH - Total portfolio loans increased by $88.5 mln, driven by commercial real estate and construction lending

NET INTEREST INCOME - Increased by $1.4 mln due to a decline in funding costs and higher average loan balances

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
Miss
$0.24
$0.41 (3 Analysts)
Q3 Net Income
Miss
$5.41 mln
$9.28 mln (2 Analysts)
Q3 Net Interest Income
$33.71 mln
Q3 Pretax Profit
Miss
$7.15 mln
$12.50 mln (1 Analyst)
Q3 Basic EPS
$0.24


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 3 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Carter Bankshares Inc is $23.25, about 18.2% above its October 21 closing price of $19.01

The stock recently traded at 10 times the next 12-month earnings vs. a P/E of 9 three months ago

Press Release: ID:nACS4LnPwa

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)