AI-extracted from the 10-Q filed 2026-08-06 — Q2 FY2026 (quarter ended June 30, 2026). Every figure is machine-verified against the filing text on SEC EDGAR.
Net income surged to $28.9M ($1.31 diluted EPS) from $8.5M a year ago, driven by a $35.9M pre-tax gain on the Insurance Transaction and NIM expansion to 3.38% from 2.80%.
Biggest Revenue Drivers
Net Interest Income$40.0M+23.5% YoY
Higher average interest-earning assets from redeployment of Loan Sale Transaction proceeds and a 37bp decline in funding costs
Noninterest Income$28.7M+485.4% YoY
Net gain on the Insurance Transaction, partially offset by a $12.5M loss on securities sold in the Portfolio Repositioning
Biggest Revenue Drivers
Net Interest Income$40.0M+23.5% YoY
Higher average interest-earning assets from redeployment of Loan Sale Transaction proceeds and a 37bp decline in funding costs
Noninterest Income$28.7M+485.4% YoY
Net gain on the Insurance Transaction, partially offset by a $12.5M loss on securities sold in the Portfolio Repositioning
Within Noninterest Income
Gain on the Insurance Transaction$35.9M
Sale of the Company's membership interest in Bearing Insurance Group, LLC to an unaffiliated third party, effective May 1, 2026
Largest Expense Items
Salaries and Employee Benefits$14.1M-0.2% YoY
Essentially flat as higher deferred loan origination costs offset incentive compensation and benefit increases
Occupancy Expense, net$4.6M+8.4% YoY
Higher costs for service agreements, software licenses, maintenance contracts and infrastructure investments
Other Noninterest Expense$4.4M+33.3% YoY
A $0.8M OREO property write-down and a $0.5M write-down on a closed corporate office building
Data Processing$2.2M+56.1% YoY
New and expanded service agreements implemented in early 2026
Margins: Net interest margin expanded 58bps YoY to 3.38% (3.40% FTE) as the average yield on earning assets rose to 5.23% while funding costs fell 37bps to 2.39%, aided by redeployed Loan Sale Transaction liquidity and elimination of FHLB borrowings.
Watch Items from the Filing
James C. Justice II and related entities sued the Bank seeking rescission of the Loan Sale Transaction plus direct damages of at least $500 million and punitive damages; outcome cannot yet be estimated.
A new $13.4 million commercial and industrial relationship was downgraded to doubtful/nonaccrual in Q2 2026, requiring a $3.1 million specific reserve and driving the quarter's $2.0 million provision.
Commercial real estate loans represent 57.4% of total portfolio loans ($2.14 billion), concentrated in Virginia, North Carolina and South Carolina.
Top 10 credit relationships total $472.4 million, or 12.65% of gross loans (76.2% of risk-based capital), down from 17.00% pre-Loan Sale Transaction.
AI-extracted and verified against SEC EDGAR filing text. Not investment advice.
Van Dyke Litz HCHIEF EXECUTIVE OFFICERGrant or award · Jun 30, 2026
Kallsen Tony ESEVP, CHIEF CREDIT OFFICERGrant or award · Jun 30, 2026
Bell Wendy S.SENIOR EXECUTIVE VP, CFOGrant or award · Jun 30, 2026
Davis Jane AnnEVP, CHIEF ADMIN. OFFICERGrant or award · Jun 30, 2026
Speare Matthew M.SEVP, CHIEF OPERATING OFFICERGrant or award · Jun 30, 2026
Adams Arthur LoranEVP, DIRECTOR OF REG RISK MNGTGrant or award · Jun 30, 2026
About Carter Bankshares, Inc. (CARE): stock profile, AI score and financials
Carter Bankshares, Inc. (CARE) stock profile, AI quality score, and SEC EDGAR financial data, a Financials sector company. 13F Pro's AI-powered ranking engine scores CARE at 70.4/100 on a composite quality score built from its SEC filings, placing it at rank #211 of 2,925 stocks — the top 10% of the AI-ranked universe. CARE scores in the top quartile across profitability (97.8), revenue growth (91.7), institutional flow (85.4). Areas of concern include earnings quality (19.0) and revenue scale (27.2), which score below median versus the broader universe. Shareholder dilution risk is elevated at 15.5/100, reflecting ongoing share issuance or stock-based compensation. Based on the latest XBRL financial filings (Q2 2026), Carter Bankshares, Inc. reports quarterly revenue of $68.7M, net income of $28.9M, an operating margin of 54.2%. Top institutional holders of CARE by reported 13-F value include BlackRock, DIMENSIONAL FUND ADVISORS, VANGUARD CAPITAL MANAGEMENT, based on the most recent SEC filings. CARE trades on the Nasdaq exchange and files with the SEC under CIK 1829576. 13F Pro's AI research platform runs 10 specialized AI analysts — value, growth, momentum, macro, and activist specialists — that debate CARE daily and publish AI-generated analysis with cited SEC sources. The platform aggregates historical XBRL financial facts, 10-Q and 10-K filings, insider Form 4 transactions, and institutional 13-F holdings for Carter Bankshares, Inc. directly from SEC EDGAR.