The earnings miss was driven by a spike in credit costs from two large charge-offs. Monitor the Q4 2026 provision and charge-off trajectory, as the C&I relationship that triggered the $8.0M charge-off entered Chapter 11 bankruptcy, creating uncertainty about future recoveries. The core NIM expansion trend remains intact, but credit quality will be the key swing factor.
Price Chart
Executive Summary
Carter Bankshares reported Q3 2026 GAAP diluted EPS of $0.35, below the consensus estimate of $0.53, a miss of 34.0%. Net interest income grew 22.3% YoY to $41.2M and net interest margin expanded 65bp to 3.51%, but elevated credit costs ($10.5M provision, $12.1M net charge-offs) and the absence of prior-quarter nonrecurring gains drove the earnings shortfall.
Key Financial Metrics
Key Facts
- GAAP diluted EPS of $0.35 missed consensus of $0.53 by 34.0%
- Net interest income rose 22.3% YoY to $41.2M; net interest margin expanded 65bp to 3.51%
- Provision for credit losses was $10.5M vs $2.0M in Q2 2026 and $2.9M in Q3 2025
- Net charge-offs totaled $12.1M (1.28% annualized), including an $8.0M C&I charge-off and a $4.0M CRE charge-off
- Nonperforming loans fell to $27.9M from $37.6M in Q2 2026, driven by $12.1M in charge-offs
- Company repurchased 74,151 shares at a weighted average cost of $29.85 during Q3
- Adjusted net income (non-GAAP) was $7.6M, or $0.35 per diluted share
Financial Impact
EPS miss of $0.18 vs consensus; net charge-offs of $12.1M; provision of $10.5M
Risk Factors
- Elevated net charge-offs (1.28% annualized) may persist if additional collateral valuation declines occur
- The $8.0M C&I charge-off involved a borrower in Chapter 11, creating uncertainty about ultimate recovery
- Deposits declined $80.2M sequentially, potentially pressuring funding costs or loan growth
Market Snapshot
Investment Themes
Documents Analyzed
This report is based on 6 SEC documents filed with EDGAR.
| Document | Accession Number |
|---|---|
| 8-K Filing (Primary) | 0001829576-26-000089 |
| Document: care-20261029.htm | 0001829576-26-000089 |
| Document: 0001829576-26-000089-index-headers.html | 0001829576-26-000089 |
| Document: 0001829576-26-000089-index.html | 0001829576-26-000089 |
| Document: 0001829576-26-000089.txt | 0001829576-26-000089 |
| 8-K Data (Synthetic) | 0001829576-26-000089 |
Filters
| Type | Now | ||||
|---|---|---|---|---|---|
Oct 29, 2026 3d ago | 8-K | $29.89 $29.00 | ▼ −2.98% | ▼ −1.20% | $29.00 (−2.98%) |
Oct 29, 2026 3d ago | 8-K | $29.89 $29.00 | ▲ +2.98% | ▲ +1.20% | $29.00 (+2.98%) |
Oct 8, 2026 24d ago | SC 13G/A | $30.47 $30.16 | ▼ −1.02% | ▼ −1.62% | $29.00 (−4.82%) |
Aug 17, 2026 10w ago | 8-K | $31.53 $30.86 | ▼ −2.13% | ▼ −2.33% | $29.00 (−8.02%) |
Aug 7, 2026 12w ago | Institutional Cluster | $33.00 $31.72 | ▼ −3.88% | ▼ −3.85% | $29.00 (−12.12%) |
Jul 30, 2026 13w ago | Insider Cluster | $34.13 $34.58 | ▲ +1.32% | ▲ +0.60% | $29.00 (−15.03%) |
Jul 30, 2026 13w ago | Insider Cluster | $34.13 $34.58 | ▲ +1.32% | ▲ +0.61% | $29.00 (−15.03%) |
Jul 27, 2026 13w ago | 8-K | $34.07 $34.54 | ▲ +1.38% | ▲ +1.14% | $29.00 (−14.88%) |
Jul 23, 2026 14w ago | 8-K | $33.90 $34.01 | ▲ +0.32% | ▲ +0.22% | $29.00 (−14.45%) |
Jun 24, 2026 18w ago | 8-K | $32.68 $33.60 | ▲ +2.82% | ▲ +3.54% | $29.00 (−11.26%) |
US Market Status
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