Carter Bankshares, Inc. 8K

Carter Bankshares, Inc. reported Q2 2026 results and detailed the completed sale of its Bearing Insurance Group interest and a related securities portfolio repositioning, using large one-time gains to optimize its balance sheet, enhance capital and earnings power, and support future loan growth.

On July 23, 2026, Carter Bankshares, Inc. (NASDAQ: CARE), the holding company for Carter Bank, reported its financial results for the second quarter ended June 30, 2026, highlighting quarterly net income of $28.9 million ($1.31 diluted EPS), strong net interest income and margin expansion, and the impact of several strategic balance sheet actions. During the quarter, the company completed the previously announced sale of its membership interest in Bearing Insurance Group, LLC to an unaffiliated third party effective May 1, 2026, recognizing a pre-tax gain of $35.9 million that was accretive to diluted EPS by $1.30 and increased tangible book value per share by $1.28. Together with a large nonperforming loan sale executed in the first quarter, these transactions generated approximately $100.9 million of aggregate nonrecurring gains in the first half of 2026, which management used to support a strategic repositioning of the available-for-sale securities portfolio, selling $139.4 million of lower-yielding securities and purchasing $88.5 million of higher-yielding, highly rated securities, while using remaining proceeds and excess liquidity to fund organic loan growth and repay higher-cost FHLB borrowings. The company reported modest linked-quarter loan growth despite sizable commercial real estate payoffs, improved capital ratios and liquidity, a higher allowance coverage level relative to loans, but also an uptick in nonperforming loans from the prior quarter driven by a downgraded commercial and industrial relationship, and it emphasized that these strategic initiatives are intended to enhance future earnings, optimize the balance sheet, and strengthen its interest rate risk profile.

Filing Facts

CIK

1829576

Ticker

-

Form

8K

Source Type

sec

Accession

0001829576-26-000070

Alert Tier

6