Carter Bankshares Sells $209M Non-Performing Loans for $289M Cash, Drastically Improving Asset Quality
CARE sits 50% above its 52-week low of $13.605 on light trading volume (0.2× avg).
Summary
Carter Bankshares completed the sale of $209.48 million in non-performing loans for $289.48 million in cash, drastically reducing its non-performing loan ratio and boosting tangible book value.
Key Events · Financing and Capital Events · CARE
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Major Non-Performing Loan Sale Completed
The company completed the sale of all loans related to James C. Justice, II entities, which were previously nonperforming and on nonaccrual status. The transaction generated $289.48 million in cash.
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Significant Improvement in Asset Quality
The sale drastically reduced non-performing loans from $243.98 million (6.29% of total loans) to a pro forma $29.96 million (0.82% of total loans), significantly cleaning up the balance sheet.
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Tangible Book Value Boost
The transaction is estimated to favorably impact the company's tangible book value per common share by approximately $3.49.
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Gain on Loan Sale
The company received $289.48 million in cash for loans with an outstanding principal of $209.48 million and a specific reserve of $18.04 million, indicating a substantial recovery and gain.
Analysis · CARE · Finance
This filing reports a highly significant transaction for Carter Bankshares, addressing a major challenge previously highlighted in its 10-K. The sale of $209.48 million in non-performing loans (NPLs) for $289.48 million in cash not only provides a substantial cash infusion but also fundamentally de-risks the bank's balance sheet. The reduction of NPLs from 6.29% to a pro forma 0.82% of total loans is a dramatic improvement in asset quality, which should positively impact investor confidence and future profitability. The estimated $3.49 per share increase in tangible book value further underscores the positive financial impact of this strategic move.
How filings like this one have moved
In the 30 days to Oct 4, 2026, 41.1% of the 304 measured filings Wiseek scored 9 moved their stock by 5% or more by the next session's close. The median move was -0.53%. These are measured outcomes after filings of this importance, not a forecast for this one.
Measured one observation per ticker per day, after exclusions. Current figures: Filing Impact Tracker · open dataset
At the time of this filing, CARE was trading at $20.35 on NASDAQ in the Finance sector, with a market capitalization of approximately $450.9M. The 52-week trading range was $13.61 to $22.51. This filing was assessed with positive market sentiment and an importance score of 9 out of 10.