Q3 2026 Investor Presentation

Investor Presentation

SECTION 01

Company completed the sale of its largest NPL relationship in 1Q 2026

-

Sold Company's membership in Bearing Insurance Group, LLC in 2Q 2026

-

Company executed a strategic repositioning of $139.4 million (18.7%) of the AFS securities portfolio, replacing securities with a 2.28% weighted average yield with $88.5 million of new investments yielding 5.27% in 2Q 2026

-

Company established the Carter Bankshares, Inc. Dividend Reinvestment and Stock Purchase Plan (the "DRIP") in 3Q 2026

-

Company launched a dedicated Small Business Administration ("SBA") lending team focused on SBA 7(a) financing in 3Q 2026

-

Opened regional loan office in Greenville, SC -

Further enhanced capital and liquidity levels -

Reinstated Quarterly Cash Dividend on April 22, 2026

_

YTD 2026 Loan Production of $615.5M of which 67.87% was funded at a weighted average rate of 6.28%. The YTD production was offset by early payoffs of $450.5M

$4.7B

Assets

-

$3.8B

Loans

-

$4.1B

Deposits

HQ

Martinsville, Virginia

-

63

Branches

-

10

Corporate Centers

A well-capitalized franchise with momentum

1974 Bank established de novo

in 1974 as First National Bank

of Rocky Mount, VA

2006

2020

2024

Carter Bank & Trust charter established in 2006 with the merger of ten banks

Carter Bankshares, Inc. holding company established in Q4 2020 with the assets of Carter Bank & Trust

Carter Bankshares, Inc. unveiled a new logo and a refreshed visual brand identity to reflect

our revitalized focus

2026

Carter Bank expands into South Carolina and launched a dedicated Small Business Administration ("SBA") Lending Team

As of September 30, 2026 5

50 Total Branches in Virginia Total VA Deposits $3.6 billion

13 Total Branches in North Carolina Total NC Deposits $0.5 billion

Blacksburg

Roanoke

Lynchburg

Fredericksburg

Charlottesville

1 Loan Production Office in South Carolina

Martinsville

Map Key

Winston-Salem

Greensboro

Corporate Headquarters Regional Offices

Branches

Mortgage Loan Offices

Greenville

Charlotte

Raleigh

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 Administrative Officer 42 years in Industry

42 years at the Bank

Tony Kallsen

Senior Executive Vice President

Chief Credit Risk Officer 35 years in Industry

8 years at the Bank

Litz Van Dyke

Chief Executive Officer 41 years in Industry 10 years at the Bank

Bradford Langs

President

Chief Strategy Officer 40 years in Industry

9 years at the Bank

Wendy Bell

Senior Executive Vice President Chief Financial Officer

41 years in Industry 9 years at the Bank

Chrystal Parnell

Executive Vice President Chief Marketing & Communications Officer 23 years in Industry

4 years at the Bank

Kimberly Schaufenbuel

Executive Vice President

Chief Human Resources Officer 7 years in Industry

<1 year at the Bank

Matt Speare

Senior Executive Vice President

Chief Operations Officer 24 years in Industry

9 years at the Bank

Rich Spiker

Senior Executive Vice President

Chief Lending Officer 37 years in Industry 9 years at the Bank

7

Nurturing relationships

and rewarding customers, associates, and shareholders.

Customers

Regulators

Community

Associates

Investors

As of Month XX,

XXXX

As of September 30, 2026 9

Associates joined neighbors and fans at Carter Bank Night with the Danville Otterbots baseball team. Associates provided parents with financial education guides to support age-appropriate financial discussions with their children. It reflects Carter Bank's commitment to add value and show up where its communities gather.

The Bank partnered with the Montgomery County Chamber of Commerce to award six minority-owned businesses complimentary chamber memberships. This investment supports an ongoing effort to create opportunities for underserved communities.

Congratulations to the 2026 recipients: Baan Coffee & Thai Tea, The Lemuel Foundation, CampusHaul, Elegant Nails, Don's Improvement, and Mano a Mano Services.

The Renaissance West Community Initiative aims to end intergenerational poverty in West Charlotte, and Carter Bank associates were proud to represent the Bank at its annual fundraising event at the Sullenberger Aviation Museum. RWCI builds a collaborative community around quality housing, education, health and wellness, and opportunity. Its programs include free GED classes, tutoring, and mobile health care brought directly into the community.

As of September 30, 2026 10

• 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 Virginia & North Carolina including Fast Growing Markets such as Charlottesville, Charlotte, Greensboro, Roanoke, Raleigh and Winston-Salem.

    Conservative Credit Culture

• Strong Credit Position

• 0.74% NPLs to Total Portfolio Loans

• 0.77% NPAs to Total Portfolio Loans plus OREO

• 191.79% Allowance for Credit Losses to NPLs

• 0.34% Past Due Loans to Total Portfolio Loans

• (0.12)% Net (Recoveries)/Charge-offs to YTD Avg Loans

  Executing Strategic Objectives

  • Investments in Human Capital, Brand & Culture, Technology, Loan & Deposit Diversification, Customer Experience, and Safety & Soundness should provide operational leverage and growth going forward

As of Month XX,

XXXX

As of September 30, 2026 11

To achieve our long-term aspirations and deliver value to customers, associates, shareholders, and communities, the Bank will execute its strategy through three interconnected pillars: Invest, Enhance, and Expand, which are underpinned by Financial Performance and Operational Excellence. These pillars are designed to strengthen our foundational capabilities, elevate performance, and enable sustainable growth, all within a disciplined, measurable, and adaptable framework.

We will invest in the people, infrastructure, technology, governance, and organizational capabilities needed to ensure sustainable growth, operational excellence, and long-term scalability.

Expand

We will enhance operational performance and customer and associate experience through continuous improvement, optimization, innovation, collaboration, and service excellence.

We will drive sustainable growth by expanding market presence, strengthening relationships, and growing consumer and business banking opportunities through strategic expansion, innovation, and customer-focused engagement.

As of Month XX,

XXXX

As of September 30, 2026 12

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)%

Net Recovery/Portfolio Loans (YTD)

3.39%

Actual ROA (YTD)1

-

32.64%

Actual ROE (YTD)2

-

3.34%

NIM (FTE) (YTD)3

-

66.47%

Adjusted Efficiency Ratio (YTD)3

$1.6B

Total Liquidity Sources

-

13.52%

Highly Liquid Assets/Total Assets

-

86.87%

Highly Liquid Assets/Uninsured Deposits

-

222.01%

Total Available Liquidity/Uninsured Deposits

1 YTD adjusted ROA = 0.77%3

2 YTD adjusted ROE = 7.41%3

3 Non-GAAP Financial Measure - see Non-GAAP reconciliation

As of September 30, 2026 13

SECTION 02

Income Statement

1Non-GAAP Financial measure - see Non-GAAP reconciliation

2During the second quarter of 2026 the Company recognized a $35.9M gain on the Insurance Transaction and $12.5M Losses on the sale of securities as a result of the Portfolio Repositioning.

As of September 30, 2026 15

Balance Sheet

1Non-GAAP Financial measure - see Non-GAAP reconciliation

As of September 30, 2026 16

$(0.96) / $0.11

Diluted EPS down Q/Q & up Y/Y

$(0.18) / $0.09

Adj. Diluted EPS1 down Q/Q & up Y/Y

0.63% / 0.96% / 0.47%

Adj. QTD ROA1 3Q26, 2Q26 & 3Q25

5.54% / 8.83% / 5.53%

Adj. QTD ROE1 3Q26, 2Q26 & 3Q25

3.55% / 3.40% / 2.87%

NIM (FTE)1 3Q26, 2Q26 & 3Q25

64.64% / 62.66% / 73.37%

Adj Efficiency Ratio1 3Q26, 2Q26 & 3Q25

0.74% / 1.01% / 6.74%

Net Chg-offs (Recoveries) to Portfolio Loans

(QTD annualized) 3Q26, 2Q26 & 3Q25

Net Chg-offs (Recoveries) / Total Portfolio Loans (QTD annualized)

1.28%

(0.07)%

1.35%

0.02%

1.26%

1Non-GAAP Financial measure - see Non-GAAP reconciliation

As of September 30, 2026 17

60.67%

72.54%

80.95% 76.05%

66.47%

2022 2023 2024 2025 3Q 20261, 2

2022 2023 2024 2025 YTD 3Q 2026

3.3

1.21%

0.53%

0.54%

0.66%

2

0.77%

9%

2022 2023 2024 2025 3Q 2026

11.14%

8.25%

8.65%

7.82%

7.78%

2022 2023 2024 2025 3Q 2026

1 Adjusted Net Income (non-GAAP)2 and YTD annualized for the nine months ended September 30, 2026

2 Non-GAAP Financial Measure - see Non-GAAP reconciliation on pages 51, 53 and 54

As of September 30, 2026 18

Carter Bankshares

Regulatory Well Capitalized

Actual

Excess ($) (In Thousands)

• Focus on maintaining a strong regulatory capital position in excess of regulatory thresholds.

• Ensure capital levels are commensurate with the Company's risk profile and strategic plan objectives.

  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 Undercapitalized Category	Tangible equity to total assets ≤ 2%
  Capital Conservation Buffer	>= 2.5% composed of CET 1

• On February 2, 2026, the Board authorized a repurchase program to purchase up to $10.0 million of the Company's common stock in the aggregate over a period of twelve months beginning February 11, 2026.

  • During the three months ended September 30, 2026, the Company repurchased 74,151 shares of its common stock at a total cost of $2.2 million and a weighted average cost per share of $29.85.

• During the nine months ended September 30, 2026, the Company repurchased 182,752 shares of its common stock at a total cost of $5.1 million and a weighted average cost per share of $27.86.

Actual ($) 09/30/26

Cumulative AOCL Impact 09/30/26

REGULATORY CAPITAL

14.24%

15.49%

11.95%

TIER 1

TOTAL

LEVERAGE

Book Value per Common Share $ 23.85 $ (2.23)

Adjusted Book Value1

$

26.08

1Non-GAAP Financial measure - see Non-GAAP reconciliation

As of September 30, 2026 19

(Dollars in Thousands)

Minimum Required Basel III

Well

Ca ed

September 30, 2026

December 31, 2025

pitaliz

Amount

Ratio

Amount

Ratio

Carter Bankshares, Inc.

As of September 30, 2026 20