Carter Bankshares Q1 EPS beats estimates on loan sale gain

Carter Bankshares

23/04/2026 13:08

Overview

US regional bank's Q1 adjusted EPS beat analyst expectations, driven by gain on loan sale

Net interest income for Q1 rose 19% yr/yr

Nonperforming loans fell sharply after sale of nonaccrual credits

Outlook

Company expects continued momentum in commercial and small business lending platforms

Company anticipates prior construction lending commitments to fund over next 12-18 months

Company says balance sheet remains positioned to benefit from potential Fed rate reductions

Result Drivers

LOAN SALE GAIN - Q1 results were driven by an $80 mln net gain from the sale of nonperforming loans, which included a $65 mln transaction gain and $15 mln net recovery

CREDIT RESERVE RELEASE - Release of $18 mln in specific reserves related to the sold loans contributed to higher earnings and lower allowance for credit losses

NET INTEREST MARGIN EXPANSION - Net interest income and margin increased due to lower funding costs and higher average loan balances

Company press release: ID:nACSrj5QJa

Key Details

Metric
Beat/Miss
Actual
Consensus Estimate
Q1 EPS
Beat
$3.88
$1.58 (3 Analysts)
Q1 Net Income
Beat
$85.76 mln
$47.34 mln (2 Analysts)
Q1 Net Interest Income
$35.93 mln


Analyst Coverage

The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 4 "strong buy" or "buy", no "hold" and no "sell" or "strong sell"

The average consensus recommendation for the banks peer group is "buy"

Wall Street's median 12-month price target for Carter Bankshares Inc is $26.00, about 6.7% above its April 22 closing price of $24.37

The stock recently traded at 8 times the next 12-month earnings vs. a P/E of 8 three months ago

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)