Carter Bankshares Sells $290 Million in Troubled Loans, Ending Dispute With West Virginia Senator’s Family

Carter Bankshares subsidiary Carter Bank had long been heavily exposed to businesses owned by the family of U.S. Sen. James Justice of West Virginia, with loans once exceeding $750 million. After founder Worth Carter died in 2017, the bank tightened credit and became embroiled in litigation with the Justice family. Removing the concentrated portfolio of nonaccrual assets was critical to reducing credit risk and reviving growth in its core lending business.

On March 26, 2026, Carter Bank sold all Justice-related nonperforming loans and judgment claims to an unaffiliated third party on an as-is basis, receiving $289.48 million in cash. Before the sale, the assets had a principal balance of $209.48 million and were all in default and on nonaccrual status. The transaction generated a net gain of $80 million in the first quarter of 2026 and increased diluted earnings per share by $3.50.