AI Earnings Predictions for Carter Bankshares Inc. (CARE)

EX-99.1

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EX-99.1

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Exhibit 99.1

FOR IMMEDIATE RELEASE – October 29, 2026

Carter Bankshares, Inc. Announces Third Quarter 2026 Financial Results

Martinsville, VA, October 29, 2026 – Carter Bankshares, Inc. (the “Company”) (NASDAQ:CARE), the holding company of Carter Bank (the “Bank”) today announced quarterly net income of $7.8 million, or $0.35 diluted earnings per share (“EPS”), for the third quarter of 2026 compared to net income of $28.9 million, or $1.31 diluted EPS, for the second quarter of 2026 and net income of $5.4 million, or $0.24 diluted EPS, for the third quarter of 2025. Net interest income was $41.2 million for the third quarter of 2026, $40.0 million for the second quarter of 2026, and $33.7 million for the third quarter of 2025. Adjusted net income2 was $7.6 million for the third quarter of 2026, $11.6 million for the second quarter of 2026 and $5.7 million for the third quarter of 2025.

For the nine months ended September 30, 2026, net income was $122.4 million, or $5.53 diluted EPS, compared to net income of $22.9 million, or $1.00 diluted EPS, for the same period in 2025. Net interest income was $117.1 million for the nine months ended September 30, 2026, and $96.2 million for the nine months ended September 30, 2025. Adjusted net income2 was $27.8 million and $22.3 million for the nine months ended September 30, 2026 and 2025, respectively.

Significant Developments

During the third quarter of 2026, the Company established the Carter Bankshares, Inc. Dividend Reinvestment and Stock Purchase Plan (the “DRIP”), The Company will offer up to 1.0 million shares of its common stock to existing shareholders of the Company for purchase under the DRIP. The DRIP provides enrolled shareholders with the opportunity to acquire additional shares of the Company’s common stock through the reinvestment of cash dividends and optional cash purchases. Shareholders may enroll in the DRIP at any time, with dividend reinvestments beginning with the first dividend, if any, declared and paid after August 24, 2026. The DRIP is administered by Computershare Trust Company, N.A., the Company’s transfer agent.

During the third quarter of 2026, the Company launched a dedicated Small Business Administration (“SBA”) lending team focused on SBA 7(a) financing. The initiative expands the Company’s ability to serve small businesses nationwide by providing access to financing solutions designed to support a range of business needs and growth opportunities. The team will provide relationship-based banking and personalized service to help eligible small business owners identify financing solutions that support their business objectives.

2026 Strategic Transactions and Balance Sheet Repositioning

During the first six months of 2026, the Company completed two significant transactions: the sale of the large nonperforming credit relationship (“Loan Sale Transaction”) and the sale of its membership interest in Bearing Insurance Group, LLC (the “Insurance Transaction”). These transactions generated aggregate nonrecurring pre-tax gains of approximately $100.9 million during the first six months of 2026 and provided an opportunity to strengthen the Company’s balance sheet and enhance future earnings potential.

In conjunction with these transactions, the Company completed a strategic repositioning of a portion of its available-for-sale securities portfolio (the “Portfolio Repositioning”) during the second quarter of 2026, recognizing a pre-tax loss of $12.5 million. The Portfolio Repositioning involved the sale of $139.4 million in book value of lower-yielding securities available-for-sale and the purchase of approximately $88.5 million of higher-yielding securities available-for-sale. The Portfolio Repositioning completed during the second quarter of 2026 contributed to improved interest income during the third quarter, while also supporting the management of interest rate risk and providing additional liquidity to support organic loan growth.

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Financial Highlights for the Three Months Ended September 30, 2026

•Total portfolio loans increased $36.0 million at September 30, 2026 from June 30, 2026, despite approximately $161.0 million in loan payoffs during the third quarter, reflecting solid loan origination activity and continued demand as the Company continued to deploy available liquidity to support organic loan growth. Compared to September 30, 2025, total portfolio loans decreased 1.7%, but increased 4.53%7 when excluding the impact of the Loan Sale Transaction in the first quarter of 2026;

•Net interest income totaled $41.2 million, an increase of $1.3 million, or 3.2% compared to the prior quarter, and an increase of $7.5 million, or 22.3% compared to the prior year quarter;

•Net interest margin increased 13 basis points to 3.51% for the third quarter of 2026, compared to 3.38% for the prior quarter and increased 65 basis points compared to 2.86% for the prior year quarter. Net

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EX-99.1

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EX-99.1

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Exhibit 99.1

FOR IMMEDIATE RELEASE – April 23, 2026

Carter Bankshares, Inc. Announces First Quarter 2026 Financial Results

Martinsville, VA, April 23, 2026 – Carter Bankshares, Inc. (the “Company”) (NASDAQ:CARE), the holding company of Carter Bank (the “Bank”) today announced quarterly net income of $85.8 million, or $3.88 diluted earnings per share (“EPS”), for the first quarter of 2026 compared to net income of $8.5 million, or $0.38 diluted EPS, for the fourth quarter of 2025 and net income of $9.0 million, or $0.39 diluted EPS, for the first quarter of 2025. Net interest income was $35.9 million for the first quarter of 2026, $34.6 million for the fourth quarter of 2025, and $30.1 million for the first quarter of 2025. Pre-tax pre-provision income1 was $75.9 million for the first quarter of 2026, $8.8 million for the fourth quarter of 2025 and $9.0 million for the first quarter of 2025.

On March 26, 2026, the Bank completed the sale (the “Transaction”) of all loans, subsequently reduced to judgments related to various entities in which James C. Justice, II has an interest (such loans, subsequently reduced to judgments, the “Loans”). The Transaction was completed as an absolute, “as-is, where-is” sale to an unaffiliated third party.

The Company received consideration of $289.5 million in cash in the Transaction. Immediately prior to the Transaction, the Loans had an outstanding aggregate principal amount of $209.5 million, all of the Loans were nonperforming and on nonaccrual status, and the Company had recorded a specific reserve with respect to the Loans of $18.0 million as of December 31, 2025.

Transaction Highlights

•Received consideration of $289.5 million in cash in the Transaction during the quarter;

•Recognized a net gain on the Transaction of $80.0 million, comprised of:

◦$65.0 million gain on the Transaction; and

◦$15.0 million net recovery;

•Released $18.0 million of specific reserves related to the Loans;

•The Transaction was accretive to diluted earnings per share by $3.50 for the quarter; and

•The Transaction increased each of book value per share and tangible book value per share by $3.49.

Financial Highlights for the Three Months Ended March 31, 2026

•Total portfolio loans decreased $151.1 million at March 31, 2026 from December 31, 2025 due to the Transaction, partially offset by net loan growth during the first quarter of $58.4 million, or 6.1%7 on an annualized basis, and increased $41.0 million, or 1.1% from March 31, 2025;

•Net interest income totaled $35.9 million, an increase of $1.3 million, or 3.8% compared to the prior quarter, and an increase of $5.8 million, or 19.2% compared to the prior year quarter;

•Net interest margin increased 15 basis points to 3.07% for the first quarter of 2026, compared to 2.92% for the prior quarter and increased 39 basis points compared to the prior year quarter;

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•Nonperforming loans (“NPLs”) decreased significantly by $220.0 million to $24.0 million at March 31, 2026 compared to December 31, 2025 due to the Transaction. NPLs to total portfolio loans were 0.64% at March 31, 2026, 6.29% at December 31, 2025 and 7.09% at March 31, 2025;

•The allowance for credit losses to total portfolio loans was 1.41% at March 31, 2026, compared to 1.84% at December 31, 2025 and 1.99% at March 31, 2025, primarily reflecting the release of specific reserves of $18.0 million related to the Loans; and

•The efficiency ratio was 29.01% for the quarter ended March 31, 2026, compared to 77.84% and 75.71% for the quarters ended December 31, 2025 and March 31, 2025, respectively. The improvement was primarily driven by the gain on the Transaction, which increased noninterest income for the quarter. The adjusted efficiency ratio (non-GAAP)5 was 72.66%, 76.85%, and 78.67% for the quarters ended March 31, 2026, December 31, 2025 and March 31, 2025, respectively.

"We are very pleased to report the successful resolution of our largest nonperforming credit relationship during the first quarter of 2026,” stated Litz H. Van Dyke, Chief Executive Officer. “This Transaction meaningfully strengthened our balance sheet and favorably increased tangible book value by $3.49 per share, while also improving key financial ratios. It represents an important milestone for the Company and positions us well for continued growth.”

Van Dyke added, “We continued to deliver strong operating performance during the quarter, highlighted by margin expansion and solid loan growth across our footprint. Annualized loan growth of 6.1%7, net of the Transaction, reflects continued momentum in our commercial and small business lending platforms, supported by a healthy pipeline and increasing traction in commercial and industrial lending. We also expect a continued tailwind from prior construction lending commitments, which are anticipated to fund over the next 12 to 18 months as projects progress. Our balance sheet remains slightly