CARE · Carter Bankshares, Inc.

Summary

Carter Bankshares, Inc. announced the completion of the sale of all loans, subsequently reduced to judgments, related to entities in which James C. Justice, II has an interest, for $289.48 million in cash to an unaffiliated third party. The transaction removes $209.48 million in nonperforming loans and is estimated to increase tangible book value per common share by approximately $3.49.

Key takeaways

• Bank completed sale of loans related to James C. Justice, II entities on March 26, 2026
• Sale consideration: $289.48 million cash
• Pre-sale outstanding principal: $209.48 million, all nonperforming and nonaccrual
• Specific reserve on loans: $18.04 million as of December 31, 2025
• Pro forma total loans: $3.67 billion; nonperforming loans: $29.96 million (0.82%)
• Estimated tangible book value per share increase: $3.49