Carter Bankshares, Inc. Announces Sale of Membership Interest in Bearing Insurance Group, LLC; Expects Significant Pre-Tax Gain
Martinsville, VA, May 1, 2026 – Carter Bankshares, Inc. (“the Company”), the holding company of Carter Bank & Trust, has announced a major development likely to be of strong interest to investors and shareholders. On May 1, 2026, the Company completed the sale of its membership interest in Bearing Insurance Group, LLC to an unaffiliated third party. This transaction is effective immediately as of the announcement date.
Key Highlights of the Transaction
- Sale Completion: The Company has finalized the sale of its entire membership interest in Bearing Insurance Group, LLC.
- Estimated Financial Impact: Based on information currently available, Carter Bankshares estimates that it will recognize a pre-tax gain of approximately \$35.8 million from this transaction.
- Timing of Impact: The financial gain will be recognized in the Company’s financial results for the second quarter of 2026.
Potential Shareholder Implications
- Material Event: The anticipated pre-tax gain of \$35.8 million is a material event for Carter Bankshares. Such a significant one-time gain could positively affect reported earnings for Q2 2026, potentially influencing share price and investor sentiment.
- Strategic Focus: The divestiture indicates a strategic move by Carter Bankshares to exit its interest in Bearing Insurance Group, LLC, possibly to refocus on its core banking operations or redeploy capital for other growth opportunities.
- Forward-Looking Statements and Risks: The Company emphasizes that the actual gain may differ due to post-closing purchase price adjustments or other factors. Market interest rates, accounting changes (such as CECL methodology), liquidity positions, and real estate market conditions may also influence future results.
- Risk Factors: The Company reminds investors that the forward-looking statements are subject to various risks, including changes in market conditions, interest rates, accounting policies, and concentration of real estate loans. Investors should review the “Risk Factors” section in the Company’s latest Annual Report for a comprehensive risk assessment.
Other Relevant Details
- Trading Symbol: CARE
- Exchange: NASDAQ Global Select Market
- Company Details: Carter Bankshares, Inc., headquartered in Martinsville, VA, remains committed to transparency and regular reporting under the Securities Exchange Act of 1934.
- Leadership: The report is signed by Litz H. Van Dyke, Chief Executive Officer.
Important Note Regarding Forward-Looking Statements
This report contains forward-looking statements under the Private Securities Litigation Reform Act of 1995, including estimates related to the financial impact of the transaction. These statements involve risks and uncertainties, and actual results may differ materially from those projected. The Company does not undertake to update any forward-looking statements unless required by law.
Disclaimer: This article is intended for informational purposes only and does not constitute investment advice or a recommendation to buy or sell any securities. Investors should perform their own due diligence and consult with their financial advisors before making investment decisions. The forward-looking statements herein are based on current expectations and subject to change.
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