Carter Bankshares, Inc. · NASDAQ:CARE
Carter Bankshares — Q3 2026 Earnings Presentation
54 slides from Carter Bankshares's earnings presentation, Nov 3, 2026
Slide 1: Investor Presentation Third Quarter 2026
Investor Presentation Third Quarter 2026 Nasdaq: CARE
Slide 2: Forward-Looking Statement
Forward-Looking Statement 2 This information contains certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements are typically identified by words or phrases such as “will likely result,” “expect,” “anticipate,” “estimate
Slide 3: Table of Contents
Table of Contents 3 SECTION 01 Overview 4-13 SECTION 02 Financial Highlights 14-27 SECTION 03 Asset Quality 28-34 SECTION 04 Deposit Mix 35-37 SECTION 05 Commercial Loans 38-47 SECTION 06 Non-GAAP Reconciliation 48-54
Slide 4: Overview
Overview SECTION 01
Slide 5: Company History
5As of September 30, 2026 Company History Focused on the future. A well-capitalized franchise with momentum 1974 Bank established de novo in 1974 as First National Bank of Rocky Mount, VA 2006 Carter Bank & Trust charter established in 2006 with the merger of ten banks 2020 Carter Bankshares, Inc. h
Slide 6: Regional Footprint
Corporate Headquarters Regional Offices Branches Map Key 50 Total Branches in Virginia Total VA Deposits $3.6 billion 13 Total Branches in North Carolina Total NC Deposits $0.5 billion Regional Footprint VIRGINIA Charlotte Martinsville Raleigh Greensboro Lynchburg Charlottesville Roanoke N. CAROLINA
Slide 7: Leadership Team
Leadership Team 7 Loran Adams Executive Vice President Director of Regulatory Risk Management 43 years in Industry 9 years at the Bank Tami Buttrey Executive Vice President Chief Retail Banking Officer 43 years in Industry 7 years at the Bank Jane Ann Davis Executive Vice President Chief Administrat
Slide 8: Our Purpose
OUR PURPOSE To create opportunities for more people and businesses to prosper.
Slide 9: Rewarding Relationships
As of Month XX, XXXX Rewarding Relationships 9 Regulators Customers Community Associates Investors Nurturing relationships and rewarding customers, associates, and shareholders. As of September 30, 2026
Slide 10: Corporate & Social Responsibility
Corporate & Social Responsibility 10As of September 30, 2026 2,592 Volunteer Community Service Hours – 57 Nonprofits Supported by Associates Serving on Boards & Committees – $486,581 Charitable Donations & Sponsorships to Nonprofits – 92 Financial Education Classes Facilitated for 3,112 Students Ass
Slide 11: Investment Highlights
As of Month XX, XXXX Investment Highlights Strong Financial Performance • Strong Liquidity & Capital Position • CET1 of 14.24% • ACL coverage of 1.42% • $1.6B of total available liquidity • 222.0% total available liquidity / uninsured deposits Attractive Markets & Customers • Well Positioned in Virg
Slide 12: Focused on the Future
As of Month XX, XXXX Focused on the Future 12 We aspire to be a high-performing regional community bank with deep local relationships, differentiated expertise, and scalable capabilities across our markets. To achieve our long-term aspirations and deliver value to customers, associates, shareholders
Slide 13: Safety & Soundness
Safety & Soundness 13As of September 30, 2026 Capital Asset Quality Earnings 14.24% Common Equity Tier 1 Ratio (CET1) – 15.49% Total Risk-based Capital Ratio – 11.95% Leverage Ratio – $23.85 Book Value 0.34% Delinquency/Portfolio Loans – 0.74% NPL/Portfolio Loans – 1.42% ACL/Portfolio Loans – (0.12)
Slide 14: Financial Highlights
Financial SECTION 02
Slide 15: Income Statement
Income Statement 15As of September 30, 2026 Operational Results 3Q 2026 2Q 2026 Q/Q Change $ 3Q 2025 Y/Y Change $ Net Interest Income $ 41,232 $ 39,950 $ 1,282 $ 33,719 $ 7,513 Provision for Credit Losses 10,476 2,010 8,466 2,896 7,580 (Recovery) Provision for Unfunded Commitments (143) (554) 411 33
Slide 16: Balance Sheet
Balance Sheet 16As of September 30, 2026 Balance Sheet Condition 3Q 2026 2Q 2026 Q/Q Change $ 3Q 2025 Y/Y Change $ Assets $ 4,730,937 $ 4,801,883 $ (70,946) $ 4,840,119 $ (109,182) Loans Held-for-Sale — 467 (467) 478 (478) Portfolio Loans 3,770,643 3,734,594 36,049 3,835,653 (65,010) Allowance for C
Slide 17: Financial / Shareholder Ratios
Financial / Shareholder Ratios 17As of September 30, 2026 Shareholder Ratios 3Q 2026 2Q 2026 Q/Q Change $ 3Q 2025 Y/Y Change $ Diluted Earnings Per Share (QTD) $ 0.35 $ 1.31 $ (0.96) $ 0.24 $ 0.11 Adj. Diluted Earnings Per Share (QTD)1 $ 0.35 $ 0.53 $ (0.18) $ 0.26 $ 0.09 Financial Ratios Return on
Slide 18: Financial Performance Trends
Financial Performance Trends 18As of September 30, 2026 Net Income, in thousands $50,118 $23,384 $24,523 $31,362 $37,152 2022 2023 2024 2025 3Q 2026 Adjusted Efficiency Ratio 60.67% 72.54% 80.95% 76.05% 66.47% 2022 2023 2024 2025 YTD 3Q 2026 ROA 1.21% 0.53% 0.54% 0.66% 3.39% 0.77% 2022 2023 2024 202
Slide 19: Capital Management
Carter Bankshares Regulatory Well Capitalized Actual Excess ($) (In Thousands) Common Equity Tier 1 Ratio ("CET 1") 6.50 % 14.24 % $ 312,081 Tier 1 Risk-based Ratio 8.00 % 14.24 % 251,605 Total Risk-based Capital Ratio 10.00 % 15.49 % 221,432 Leverage Ratio 5.00 % 11.95 % 334,003 Critically Undercap
Slide 20: Capital Management
(Dollars in Thousands) Minimum Required Basel III Well Capitalized September 30, 2026 December 31, 2025 Amount Ratio Amount Ratio Carter Bankshares, Inc. Leverage Ratio 4.00 % NA $574,144 11.95 % $459,735 9.43 % Common Equity Tier 1 (to Risk-weighted Assets) 7.00 % NA 574,144 14.24 % 459,735 10.70 %
Slide 21: Liquidity
21 Liquidity As of September 30, 2026 $ in thousands September 30, 2026 December 31, 2025 Change Cash and Due From Banks $ 37,626 $ 36,935 $ 691 Interest Bearing Deposits in Other Financial Institutions 21,207 12,134 9,073 Federal Reserve Bank Excess Reserves 42,892 56,094 (13,202) FHLB Borrowing Av
Slide 22: Loan Composition
Loan Composition 22As of September 30, 2026 For the Period Ending Variance $ in thousands 09/30/2026 06/30/2026 09/30/2025 Quarter Year CRE - Non-Owner Occupied $ 1,554,315 $ 1,575,976 $ 1,546,006 $ (21,661) $ 8,309 CRE - Multifamily 401,106 394,829 383,712 6,277 17,394 CRE - Owner Occupied 217,971
Slide 23: Loan Portfolio by Rate Type
Loan Portfolio by Rate Type Fixed $1,620 43% Floating $806 21% Variable $1,345 36% Loan Portfolio Repricing & Index 3Q 2026 23As of September 30, 2026 Loan Portfolio by Rate Index Type Fixed $1,619 43% SOFR $638 17% Prime $171 Treasury $1,343 36% $3.8B $3.8B 1Floating Rate Loans are defined as loans
Slide 24: Top Ten Relationships (Total Commitment)
Top Ten (10) Relationships (Total Commitment) 24As of September 30, 2026 For the Periods Ending Change % of Gross Loans % of RBC $ in thousands September 30, 2026 December 31, 2025 balances of the September 30, 2026 top-ten Relationships 1. Land & Long-Term Care $ 59,594 $ 28,227 $ 31,367 1.58 % 9.5
Slide 25: Bond Portfolio
Bond Portfolio 25As of September 30, 2026 September 30, 2026 December 31, 2025 $ in thousands Amortized Cost Net Unrealized (Losses)/ Gains Fair Value Amortized Cost Net Unrealized (Losses)/ Gains Fair Value U.S. Government Agency Securities $ 14,964 $ (508) $ 14,456 $ 19,796 $ (421) $ 19,375 Reside
Slide 26: Deposit Composition
26As of September 30, 2026 Deposit Composition For the Period Ending Variance $ in thousands 09/30/2026 06/30/2026 09/30/2025 Quarter Year Lifetime Free Checking $ 647,585 $ 655,482 $ 606,203 $ (7,897) $ 41,382 Interest-Bearing Demand 857,118 866,759 809,527 (9,641) 47,591 Money Market 514,676 510,1
Slide 27: Deposit Mix Past, Present, Future
As of Month XX, XXXX Past Present Future Deposit Mix - 12/31/2017 Deposit Mix - 09/30/2026 Deposit Mix - Target Deposits 27 Goal is to enhance and diversify funding sources with a focus on lower cost/core relationships (both retail and commercial): •Deposits currently stand at $4.1B •CD Portfolio ($
Slide 28: Asset Quality
Asset Quality SECTION 03
Slide 29: Asset Quality
Asset Quality 29As of September 30, 2026 $229 $259 $ in millions 7 Percent of NPLs to Nonperforming Assets $7 $8 $7 $30 $28 $8 $2 $1 $— $1 96.8% 96.9% 87.7% NPLs Excluding "Other" OREO Large NPL "Other" Segment to Total NPAs YE 2022 YE 2023 YE 2024 YE 2025 3Q 2026 $— $5 $10 $15 $20 $25 $30 $35 $40 $
Slide 30: Delinquency Trends
Delinquency Trends 30As of September 30, 2026 $'s in thousands Past Due Loans / Total Portfolio Loans 0.15% 0.17% 0.13% 0.08% 0.34% 0.08% 0.16% 0.13% 0.06% 0.06% 0.07% 0.01% —% 0.02% 0.28% $4,837 $6,032 $4,828 $3,236 $12,799 30-59 Days PD 60-89 Days PD Total PD Amt YE 2022 YE 2023 YE 2024 YE 2025 Q3
Slide 31: Delinquency Trends
Delinquency Trends 31 As of September 30, 2026 Delinquency Trends $12,799 0.3% $27,921 $3,729,923 98.9% 30-89 Days Past Due NPL Current September 30, 2026 $ in thousands Current 30-89 Days Past Due NPL Total Portfolio Loans Commercial Real Estate $ 2,144,968 $ 10,878 $ 17,546 $ 2,173,392 Commercial
Slide 32: Nonperforming Relationships
Nonperforming Relationships 32As of September 30, 2026 Nonaccrual Balance Change Comments $ in thousands 9/30/2026 12/31/2025 1. CRE $ 9,964 $ 14,321 $ (4,357) Office Building 2. CRE 7,552 9,495 (1,943) Commercial Warehouse Property 3. C&I 5,360 — 5,360 Motor Vehicle Towing Co 4. Residential Mortgag
Slide 33: Loan Portfolio - Risk Ratings
Loan Portfolio - Risk Ratings 33As of September 30, 2026 Portfolio Credit Quality Trend $3,149 $3,506 $3,625 $3,880 $3,771 $2,992 $3,192 $3,351 $3,617 $3,717 $142 $310 $267 $251 95.0% 91.1% 92.4% 93.2% 98.6% Pass Substandard Special Mention % of Pass to Total YE 2022 YE 2023 YE 2024 YE 2025 3Q 2026
Slide 34: Net Charge-offs & Provision Expense
Net Charge-offs & Provision Expense 34As of September 30, 2026 ACL Composition & ACL Coverage Ratio $93,852 $97,052 $75,600 $71,491 $53,550 $93,183 $42,738 $44,895 $51,534 $52,249 $669 $54,314 $30,705 $19,957 $1,301 2.98% 2.77% 2.09% 1.84% 1.42% General Reserves Individually Evaluated Loan Reserves
Slide 35: Deposit Mix
Deposit Mix SECTION 04
Slide 36: Deposits
Deposits Insured/Uninsured Deposits $736.1 17.9% $153.6 3.7% $3,227.6 78.4% Uninsured Deposits Collateralized Muni Insured Deposits 36As of September 30, 2026 Total Deposit Composition $3,633 $3,722 $4,153 $4,211 $4,117 $706 $685 $634 $621 $647 $2,927 $3,037 $3,519 $3,590 $3,470 Noninterest-bearing
Slide 37: Total Deposits and Cost of Deposits
Total Deposits and Cost of Deposits $4,233 $4,232 $4,243 $4,263 $4,165 628 630 633 654 648 3,605 3,602 3,610 3,609 3,517 2.25% 2.16% 2.06% 2.01% 1.87% Noninterest-bearing Deposits Interest-bearing Demand Deposits Total Cost of Deposits Q3 2025 Q4 2025 Q1 2026 Q2 2026 3Q 2026 Net Interest Income & NI
Slide 38: Commercial Loans
Commercial Loans SECTION 05
Slide 39: CRE Segment Overview
CRE Segment Overview 39As of September 30, 2026 Total CRE: $2,711.7 1 Other CRE & Other Commercial Segments include, but are not limited to, Special / Limited Use, Church, Mobile Home Park, Gas Station, Self-Storage Facilities & Auto Shops 2 Includes restaurant loans of $37.7 million 2 2 1 1
Slide 40: Hospitality Metrics
Hospitality Metrics 40As of September 30, 2026 $252 • Total portfolio balance $311.1M • Geographic diversification (see map) • Mean loan size in portfolio $6.1M1 • Median of loans in portfolio $4.5M1 • The largest loan in portfolio $20.0M1 • 25.97% are under construction1 • Top 10 borrowers make up
Slide 41: Hospitality Metrics
Hospitality Metrics 41As of September 30, 2026 $ in thousands Category Hospitality Portfolio Balance Percentage of Total Balance Hospitality Commitment Balance Weighted Avg. Commitment LTV Avg. GL Balance Size Avg. of Debt per Key - Total Commitment Hilton $ 133,295 42.8 % $ 181,063 55.2 % $ 7,405 $
Slide 42: Multifamily Metrics
Multifamily Metrics 42As of September 30, 2026 $252 • Total portfolio balance $458.0M • Geographic diversification (see map) • Mean loan size in portfolio $4.0M1 • Median of loans in portfolio $6.3M1 • The largest loan in portfolio $26.0M1 • 31.30% are under construction1 • Top 10 borrowers make up
Slide 43: Multifamily Metrics
Multifamily Metrics 43As of September 30, 2026 $252 Category Multifamily Portfolio Balance Percentage of Total Balance Multifamily Commitment Balance Weighted Avg. Commitment LTV Avg. GL Balance Size Avg. of Debt per Door - Total Commitment Multifamily $ 390,423 85.2 % $ 467,685 49.7 % $ 5,276 $ 113
Slide 44: Retail Metrics
Retail Metrics 44As of September 30, 2026 $252 4.42 RISK RATING LTV DEBT/SQ FT 31.0% $172 AVERAGE • Total portfolio balance $515.9M** • Geographic diversification (see map) • Mean loan size in portfolio $3.1M1 • Median of loans in portfolio $1.3M1 • The largest loan in portfolio $27M1 • 12.80% are u
Slide 45: Retail Metrics
Retail Metrics 45As of September 30, 2026 $252 Category Retail Portfolio Balance Percentage of Total Balance Retail Commitment Balance Weighted Avg. Commitment LTV Avg. GL Balance Size Avg. of Debt per Square Ft- Total Commitment Anchored Strip Centers $ 254,021 49.2 % $ 265,380 25.3 % $ 4,619 $ 126
Slide 46: Office Metrics
Office Metrics 46As of September 30, 2026 $252 • Total portfolio balance $206.6M • Geographic diversification (see map) • Mean loan size in portfolio $1.8M1 • Median of loans in portfolio $508K1 • The largest loan in portfolio $23.0M1 • 8.48% are under construction1 • Top 10 borrowers make up 49.90%
Slide 47: Office Metrics
Office Metrics 47As of September 30, 2026 $ in thousands $252 Category Office Portfolio Balance Percentage of Total Balance Office Commitment Balance Avg. GL Balance Size Avg. of Debt per Square Ft- Total Commitment General Office Space $ 109,395 52.9 % $ 114,373 $ 1,499 $ 155 Medical Offices 43,988
Slide 48: Non-GAAP Reconciliation
Non-GAAP Reconciliation SECTION 06
Slide 49: Non-GAAP Statement
Non-GAAP Statement 49As of September 30, 2026 Statements in this exhibit include non-GAAP financial measures and should be read along with the accompanying tables in our definitions and reconciliations of GAAP to non-GAAP financial measures. Management uses, and this exhibit references, the adjusted
Slide 50: Non-GAAP Reconciliation
Non-GAAP Reconciliation 50As of September 30, 2026 $252 The adjusted book value ratio excludes accumulated other comprehensive loss ("AOCL") and adds back the other segment reserve release, net of tax. The Company believes this adjusted measure enables investors to assess the Company's capital level
Slide 51: Non-GAAP Reconciliation
Non-GAAP Reconciliation 51As of September 30, 2026 $252 Quarter-to-Date Year-to-Date Adjusted Return on Average Assets (ROA) (Non-GAAP) 3Q 2026 2Q 2026 3Q 2025 September 30, 2026 September 30, 2025 (Dollars in Thousands) Adjusted Net Income (Non-GAAP)* $ 7,561 $ 11,598 $ 5,711 $ 27,788 $ 22,265 Adju
Slide 52: Non-GAAP Reconciliation
Non-GAAP Reconciliation 52As of September 30, 2026 $252 Quarter-to-Date Year-to-Date Adjusted Net Interest Income (FTE) (Non-GAAP) 3Q 2026 2Q 2026 3Q 2025 09/30/26 09/30/25 (Dollars in Thousands) Interest Income (FTE) (Non-GAAP) Interest and Dividend Income (GAAP) $ 62,086 $ 61,491 $ 59,170 $ 182,76
Slide 53: Non-GAAP Reconciliation
Non-GAAP Reconciliation 53 3 Computed on a fully taxable equivalent basis ("FTE") using a 21% federal income tax rate for the 2026 and 2025 periods. 5 The gain on BOLI death benefit is tax-exempt. $252 Quarter-to-Date Year-to-Date Adjusted Efficiency Ratio (Non-GAAP) 3Q 2026 2Q 2026 3Q 2025 09/30/26
Slide 54: Non-GAAP Reconciliation
Non-GAAP Reconciliation 54 5 The gain on BOLI death benefit is tax-exempt. $252 Quarter-to-Date Year-to-Date Adjusted Net Income and EPS (Non-GAAP) 3Q 2026 2Q 2026 3Q 2025 09/30/26 09/30/25 (Dollars in Thousands) Net Income $ 7,761 $ 28,911 $ 5,419 $ 122,429 $ 22,882 Less: Gain on the Insurance Tran