Quarterly ResultMay 1, 2026, 04:22 PM
Carter Bankshares Q1 EPS $3.88; Resolves Large Nonperforming Loan
AI Summary
Carter Bankshares reported strong first-quarter 2026 results, with diluted EPS of $3.88, significantly up from the prior quarter and year, primarily driven by the successful resolution and sale of its largest nonperforming credit relationship. This transaction resulted in a gain of $80 million and a reserve release of $18 million, contributing $77.4 million to net income after tax. The company also reinstated its quarterly cash dividend and demonstrated improved asset quality and robust capital and liquidity positions.
Key Highlights
- Successfully resolved largest nonperforming loan, generating $80M gain and $18M reserve release.
- Reported Q1 2026 diluted EPS of $3.88, up $3.50 Q/Q and $3.49 Y/Y.
- Net income for Q1 2026 was $85.8M, up $77.3M Q/Q and $76.8M Y/Y.
- Reinstated quarterly cash dividend on April 22, 2026.
- Nonperforming loans to total portfolio loans decreased to 0.64% from 6.29% Q/Q.
- Common Equity Tier 1 (CET1) ratio stood at 13.52%, with $1.6B in total available liquidity.
- Total deposits increased by $24.4M Q/Q and $34.3M Y/Y to $4.24B.
- Net interest margin (FTE) improved to 3.08% in Q1 2026.