Carter Bankshares, Inc. 8-K

What Happened
On May 29, 2026 Carter Bankshares, Inc. (CARE) filed an Item 7.01 Regulation FD Disclosure announcing a strategic repositioning of part of its available-for-sale securities portfolio. The company sold $139.4 million (book value) of securities and purchased about $88.5 million of higher-yielding securities; it estimates a pre-tax loss on the sales of approximately $12.5 million to be recorded in Q2 2026. The disclosure was signed by Wendy S. Bell, Chief Financial Officer.

Key Details

• Sold $139.4 million (book value) of available-for-sale securities with a weighted average yield of 2.28%; these sales represented ~18.7% of CARE’s securities portfolio.
• Purchased approximately $88.5 million of available-for-sale securities with a weighted average yield of ~5.27%; all purchases were rated AAA or AA.
• Estimated pre-tax loss on sale: ~$12.5 million, to be reported in Q2 2026 results.
• Company expects the loss to be recovered on a pro forma basis over ~2.98 years and projects an annual interest income improvement of about $4.2 million; remaining proceeds are expected to fund organic loan growth.

Why It Matters
This move shifts CARE’s securities mix toward higher-yielding, highly rated instruments and will reduce near-term earnings due to the $12.5M pre-tax loss in Q2 2026. Over time the company expects higher interest income ($4.2M annually) and recovery of the loss in under three years on a pro forma basis. Investors should note the immediate hit to reported earnings for the quarter and consider the company’s forward-looking caution that actual results may differ from these estimates.