Carter Bankshares Posts $85.8M Q1 Profit, Reinstates $0.10 Dividend with 1.64% Yield
Q1 net income surged to $85.8 million from $8.5 million in Q4 2025, driven by a $289.5 million sale of nonperforming loans that delivered an $80 million gain. Carter Bankshares reinstated a $0.10 quarterly dividend, first in ten years, yielding 1.64%.
1. Q1 Financial Performance
Carter Bankshares reported first-quarter net income of $85.8 million, or $3.88 diluted EPS, versus $8.5 million, or $0.38 EPS, in the prior quarter. Net interest income rose to $35.9 million with a margin of 3.07%, efficiency ratio improved to 29.01%, and net loan growth annualized at 6.1%.
2. Nonperforming Loan Sale Details
The bank sold $209.5 million of nonperforming loans for $289.5 million in cash, recognizing an $80 million net gain and releasing $18 million of reserves. This transaction accreted EPS by $3.50 and increased tangible book value per share by $3.49, while reducing nonperforming loans to $24 million.
3. Dividend Reinstatement
The board approved a $0.10 per share quarterly dividend—the first in nearly ten years—with an annualized yield of 1.64%. The dividend will be payable May 25 to shareholders of record as of May 11, reflecting strengthened capital and earnings performance.