Carter Bankshares, Inc. 8K

Carter Bankshares, Inc. reported Q1 2026 results driven by the profitable March 26, 2026 sale of its largest nonperforming loan relationship tied to James C. Justice II, materially boosting earnings, capital, and asset quality metrics.

On April 23, 2026, Carter Bankshares, Inc. reported its first quarter 2026 financial results, highlighting the March 26, 2026 completion by Carter Bank of an absolute “as‑is, where‑is” cash sale of all loans and related judgments tied to entities affiliated with James C. Justice II to an unaffiliated third party for $289.5 million, compared with $209.5 million of nonperforming principal and $18.0 million of specific reserves. The transaction generated a total net gain of $80.0 million (including a $65.0 million gain on sale and $15.0 million net recovery), allowed the release of the $18.0 million specific reserve, and materially strengthened the Company’s balance sheet by sharply reducing nonperforming loans and assets, improving capital ratios, and increasing book value and tangible book value per share by $3.49, which in turn drove quarterly net income to $85.8 million and diluted EPS to $3.88. Management emphasized improved net interest income and margin, healthier credit quality metrics, repayment of FHLB borrowings with sale proceeds, and an overall strong capital and liquidity position following the resolution of its largest nonperforming credit relationship.

Filing Facts

CIK

1829576

Ticker

-

Form

8K

Source Type

sec

Accession

0001829576-26-000036

Alert Tier

7