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Carter Bankshares (NASDAQ: CARE) to record $35.8M pre-tax gain on Bearing Insurance sale

Filing Impact
(High)
Filing Sentiment
(Neutral)
Form Type
8-K

Rhea-AI Filing Summary

Carter Bankshares, Inc., holding company for Carter Bank & Trust, has completed the sale of its membership interest in Bearing Insurance Group, LLC to an unaffiliated third party, effective May 1, 2026.

Based on current information, the company estimates a pre-tax gain of approximately $35.8 million from this transaction, expected to be recognized in its financial results for the second quarter of 2026. The company also highlights that statements about the financial impact of the sale are forward-looking and subject to various risks and uncertainties.

Positive

  • Estimated $35.8 million pre-tax gain from the completed sale of the membership interest in Bearing Insurance Group, LLC, expected to be recognized in Carter Bankshares’ second-quarter 2026 financial results.

Negative

  • None.

Insights

Carter Bankshares expects a sizable nonrecurring gain from selling an insurance affiliate.

Carter Bankshares completed the sale of its membership interest in Bearing Insurance Group, LLC to an unaffiliated buyer effective May 1, 2026. The company currently estimates a pre-tax gain of about $35.8 million from this transaction.

The gain is expected to be recognized in the company’s financial results for the second quarter of 2026, providing a material one-time boost to earnings. Management emphasizes that this estimate is forward-looking and subject to risks, including potential post-closing price or other adjustments.

The filing lists broader risk factors such as interest rate conditions, CECL-related accounting impacts, and capital and liquidity changes. Subsequent quarterly reports for Q2 2026 will show the finalized gain and how it affects capital and profitability metrics.

Item 8.01 Other Events Other
Voluntary disclosure of events the company deems important to shareholders but not covered by other items.
Estimated pre-tax gain $35.8 million Estimated gain on sale of Bearing Insurance Group interest, to be recognized in Q2 2026
Effective transaction date May 1, 2026 Effective date of completed sale of membership interest in Bearing Insurance Group, LLC
forward-looking statements regulatory
"This report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995"
Forward-looking statements are predictions or plans that companies share about what they expect to happen in the future, like estimating sales or profits. They matter because they help investors understand a company's outlook, but since they are based on guesses and assumptions, they can sometimes be wrong.
pre-tax gain financial
"the Company estimates that the Company will recognize a pre-tax gain of approximately $35.8 million on the Transaction"
Current Expected Credit Losses ("CECL") methodology financial
"including potential volatility in the Company’s operating results due to application of the CECL methodology"
Emerging growth company regulatory
"Emerging growth company"
An emerging growth company is a recently public or smaller public firm that qualifies for temporary, lighter regulatory and disclosure rules to reduce the cost and effort of being public. For investors, it means the company may provide less historical financial detail and face fewer reporting requirements than larger firms, so it can grow more quickly but also carries higher uncertainty—like buying a promising early-stage product with fewer user reviews.
Understanding 8-K Material Events →
0001829576false00018295762026-05-012026-05-01


UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934
Date of Report (Date of earliest event reported): May 1, 2026
CARTER BANKSHARES, INC.
(Exact name of registrant as specified in its charter)
Virginia001-3973185-3365661
(State or other jurisdiction
of incorporation)		(Commission
file number)		(IRS Employer
Identification No.)
1300 Kings Mountain Road, Martinsville, Virginia 24112
(Address of Principal Executive Offices) (Zip Code)
(276) 656-1776
(Registrant's telephone number, including area code)
Not Applicable
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which
registered
Common Stock, $1.00 par valueCARENASDAQ Global Select Market
Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐


ITEM 8.01. Other Events.
On May 1, 2026, Carter Bankshares, Inc. (the “Company”), the holding company of Carter Bank & Trust (the “Bank”), announced that the Company had completed the sale (the “Transaction”) of its membership interest in Bearing Insurance Group, LLC to an unaffiliated third party, effective May 1, 2026. Based solely on information available to the Company on the date hereof, the Company estimates that the Company will recognize a pre-tax gain of approximately $35.8 million on the Transaction, which will be recognized by the Company in its financial results for the second quarter of 2026.

Important Note Regarding Forward-Looking Statements
This report contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, including with respect to the financial consequences of the Transaction. Forward looking statements are typically identified by words or phrases such as “will likely result,” “expect,” “anticipate,” “estimate,” “forecast,” “project,” “intend,” “believe,” “assume,” “strategy,” “trend,” “plan,” “outlook,” “outcome,” “continue,” “remain,” “potential,” “opportunity,” “comfortable,” “current,” “position,” “maintain,” “sustain,” “seek,” “achieve” and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumptions that are difficult to predict and often are beyond the Company’s control. Although the Company believes the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. Actual results may differ significantly from those expressed in or implied by these forward-looking statements.
The matters discussed in these forward-looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward-looking statements including, but not limited to the effects of: the possibility that the expected financial impacts of the Transaction may differ from current expectations, including as a result of post-closing purchase price or other adjustments to consideration received; business, economic, tax and other factors affecting the Transaction; market interest rates and the impacts of market interest rates on economic conditions, customer behavior, and the Company’s net interest margin, net interest income, funding costs and its deposit, loan and securities portfolios; changes in accounting policies, practices, or guidance, for example, the Company’s adoption of Current Expected Credit Losses (“CECL”) methodology, including potential volatility in the Company’s operating results due to application of the CECL methodology; changes in the Company’s liquidity and capital positions; concentrations of loans secured by real estate, particularly CRE loans, and the potential impacts of changes in market conditions on the value of real estate collateral; and other factors described in the Company’s filings with the Securities and Exchange Commission, including in the “Risk Factors” section of the Company’s Annual Report on Form 10-K for the year ended December 31, 2025. All risk factors and uncertainties described herein and therein should be considered in evaluating the Company’s forward-looking statements.
The Company cautions you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events are expressed in or implied by a forward-looking statement may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and the Company undertakes no obligation to update, revise or clarify any forward-looking statement to reflect developments occurring after the statement is made, except as required by law.
1

SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.
 CARTER BANKSHARES, INC.
 (Registrant)
Date: May 1, 2026By:/s/ Litz H. Van Dyke
Name:Litz H. Van Dyke
Title:Chief Executive Officer

Source: View Original Filing on SEC EDGAR

FAQ

What transaction did Carter Bankshares (CARE) complete on May 1, 2026?

Carter Bankshares completed the sale of its membership interest in Bearing Insurance Group, LLC to an unaffiliated third party. The sale was effective May 1, 2026, and involves divesting a non-bank affiliate held by the company’s banking subsidiary.

How much gain does Carter Bankshares (CARE) expect from the Bearing Insurance sale?

Carter Bankshares currently estimates a pre-tax gain of approximately $35.8 million from selling its interest in Bearing Insurance Group, LLC. This estimated gain is based on information available on the announcement date and could change with post-closing adjustments.

When will Carter Bankshares (CARE) recognize the $35.8 million gain?

The company expects to recognize the estimated $35.8 million pre-tax gain in its financial results for the second quarter of 2026. This timing reflects when the effects of the transaction will be reported in Carter Bankshares’ quarterly earnings.

Is Carter Bankshares’ (CARE) $35.8 million gain from the sale guaranteed?

No, the $35.8 million pre-tax gain is an estimate and considered a forward-looking statement. It may differ from final results due to factors such as post-closing purchase price adjustments and other business, economic, tax, and market conditions.

What risks could affect the financial impact of Carter Bankshares’ (CARE) transaction?

Risks include post-closing purchase price or other consideration adjustments, broader economic and tax factors, market interest rate changes, CECL-related accounting impacts, shifts in liquidity and capital, and real estate loan concentrations, as described in the company’s risk factor disclosures.

How does the Bearing Insurance sale affect Carter Bankshares’ (CARE) future reporting?

The transaction will be reflected primarily through a one-time pre-tax gain expected in second-quarter 2026 results. Future reports will show the finalized gain and any related balance sheet effects, alongside ongoing risk factors and interest rate and credit trends affecting the company.

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