Carter Bankshares, Inc. · NASDAQ:CARE
Carter Bankshares — Q4 2025 Earnings Presentation
51 slides from Carter Bankshares's earnings presentation, Jan 30, 2026
Slide 1: Investor Presentation Fourth Quarter and Year Ended 2025
Investor Presentation Fourth Quarter and Year Ended 2025 Nasdaq: CARE
Slide 2: Forward-Looking Statement
Forward-Looking Statement 2 This information contains or incorporates 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,” “antici
Slide 3: Table of Contents
Table of Contents 3 SECTION 01 Overview 4-13 SECTION 02 Financial Highlights 14-25 SECTION 03 Asset Quality 26-32 SECTION 04 Deposit Mix 33-35 SECTION 05 Commercial Loans 36-45 SECTION 06 Non-GAAP Reconciliation 46-51
Slide 4: Overview
Overview SECTION 01
Slide 5: Company History
5As of December 31, 2025 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. ho
Slide 6: Regional Footprint
As of Month XX, XXXX Regional Footprint 6 VIRGINIA N. CAROLINA Charlotte Martinsville Raleigh Greensboro Lynchburg Charlottesville Corporate Headquarters Regional Offices Branches Map Key Virginia • 51 Total Branches • Total Deposits $3.7B • Annual Commercial Loan Production 35% North Carolina • 13
Slide 7: Leadership Team
Leadership Team 7 Loran Adams Executive Vice President Director of Regulatory Risk Management 42 years in Industry 8 years at the Bank Tami Buttrey Executive Vice President Chief Retail Banking Officer 42 years in Industry 6 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 December 31, 2025
Slide 10: Corporate & Social Responsibility
10As of December 31, 2025 Corporate & Social Responsibility Through the Bank’s FHLB Down Payment Assistance Programs, 69 grants totaling over $1,142,000 were disbursed in 2025 to first-time home buyers or community partners, such as first responders, teachers, or hospital staff. Eighteen Carter Bank
Slide 11: Investment Highlights
As of Month XX, XXXX Investment Highlights Strong Financial Performance • Strong Liquidity & Capital Position • CET1 of 10.70% • ACL coverage of 1.84% • $1.2B of total available liquidity • 155.7% total available liquidity/ uninsured deposits Attractive Markets & Customers • Well Positioned in Virgi
Slide 12: Strategic Initiatives
As of Month XX, XXXX Strategic Initiatives 12 Superior financial performance and operational excellence. Growing responsibly with financial safety and soundness in mind is an essential practice that enables the Bank to prosper and remain independent. We’re known for our ability to provide exceptiona
Slide 13: Safety & Soundness
Safety & Soundness 13As of December 31, 2025 Capital Asset Quality Earnings 10.70% Common Equity Tier 1 Ratio (CET1) – 11.95% Total Risk-based Capital Ratio – 9.43% Leverage Ratio – $19.01 Book Value 0.08% Delinquency/Portfolio Loans – 6.29% NPL/Portfolio Loans1 – 1.84% ACL/Portfolio Loans2 – 0.01%
Slide 14: Financial Highlights
Financial SECTION 02
Slide 15: Balance Sheet & Income Statement
Balance Sheet & Income Statement 15As of December 31, 2025 Operational Results 4Q 2025 3Q 2025 QTD Q/Q Change $ 4Q 2024 QTD Y/Y Change $ YE 2025 YE 2024 YTD Change $ Net Interest Income $ 34,604 $ 33,719 $ 885 $ 29,148 $ 5,456 $ 130,820 $ 114,457 $ 16,363 (Recovery) Provision for Credit Losses (2,17
Slide 16: Financial / Shareholder Ratios
Financial / Shareholder Ratios 16As of December 31, 2025 Shareholder Ratios 4Q 2025 3Q 2025 QTD Q/Q Change $ 4Q 2024 QTD Y/Y Change $ YE 2025 YE 2024 YTD Change $ Diluted Earnings (Loss) Per Share (QTD & YTD) $ 0.38 $ 0.24 $ 0.14 $ 0.36 $ 0.02 $ 1.38 $ 1.06 $ 0.32 Financial Ratios Return on Avg Asse
Slide 17: Financial Performance Trends
Financial Performance Trends 17As of December 31, 2025 Net Income, in thousands $31,590 $50,118 $23,384 $24,523 $31,362 2021 2022 2023 2024 2025 Adjusted Efficiency Ratio 73.51% 60.67% 72.54% 80.95% 76.05% 2021 2022 2023 2024 2025 ROA 0.76% 1.21% 0.53% 0.54% 0.66% 2021 2022 2023 2024 2025 TCE 9.86%
Slide 18: Capital Management
Carter Bankshares Regulatory Well Capitalized Actual Excess ($) (In Thousands) Excludes Impact of Large NPL Excess ($) Excludes Impact of Large NPL (In Thousands) Common Equity Tier 1 Ratio ("CET 1") 6.50 % 10.70% $ 180,334 12.69 % $ 259,475 Tier 1 Risk-based Ratio 8.00 % 10.70% 115,857 12.69 % 196,
Slide 19: Liquidity
Liquidity 19As of December 31, 2025 $ in thousands December 31, 2025 December 31, 2024 Change Cash and Due From Banks, including Interest-bearing Deposits $ 105,163 $ 131,171 $ (26,008) FHLB Borrowing Availability1 609,392 735,294 (125,902) Unpledged Investment Securities 402,220 418,350 (16,130) Co
Slide 20: Loan Composition
Loan Composition 2 0As of December 31, 2025 For the Period Ending Variance $ in thousands 12/31/2025 9/30/2025 12/31/2024 Quarter Year Commercial Real Estate $ 2,114,314 $ 2,063,181 $ 1,869,831 $ 51,133 $ 244,483 Commercial and Industrial 231,921 218,038 230,483 13,883 1,438 Residential Mortgages 82
Slide 21: Loan Portfolio Repricing & Index
Loan Portfolio Repricing & Index 4Q2025 21As of December 31, 2025 Loan Portfolio by Rate Type Fixed $1,489 38% Floating $936 24% Variable $1,455 38% Loan Portfolio by Rate Index Type Fixed $1,489 38% Sofr $562 15% Prime $381 10% Treasury $1,448 37% $3.9B $3.9B 1Floating Rate Loans are defined as loa
Slide 22: Top Ten Relationships (Total Commitment)
Top Ten (10) Relationships (Total Commitment) 22As of December 31, 2025 For the Periods Ending Change % of Gross Loans % of RBC $ in thousands 12/31/2025 12/31/2024 1. Hospitality, Agriculture & Energy $ 214,020 $ 251,982 $ (37,962) 5.52 % 41.66 % 2. Multifamily 58,610 58,871 (261) 1.51 % 11.41 % 3.
Slide 23: Bond Portfolio
Bond Portfolio 23As of December 31, 2025 12/31/2025 12/31/2024 $ in thousands Amortized Cost Net Unrealized / Gains Fair Value Amortized Cost Net Unrealized (Losses)/ Gains Fair Value U.S. Government Agency Securities $ 19,796 $ (421) $ 19,375 $ 27,634 $ (684) $ 26,950 Residential Mortgage-Backed Se
Slide 24: Deposit Composition
Deposit Composition 24As of December 31, 2025 For the Period Ending Variance $ in thousands 12/31/2025 9/30/2025 12/31/2024 Quarter Year Lifetime Free Checking $ 620,473 $ 606,203 $ 634,436 $ 14,270 $ (13,963) Interest-Bearing Demand 808,171 809,527 726,947 (1,356) 81,224 Money Market 553,964 552,56
Slide 25: Deposit Mix: Past, Present, Future
As of Month XX, XXXX Past Present Future Deposit Mix - 12/31/2017 Deposit Mix - 12/31/2025 Deposit Mix - Target Deposits 25 Goal is to enhance and diversify funding sources with a focus on lower cost/core relationships (both retail and commercial): •Deposits currently stand at $4.2B •CD Portfolio ($
Slide 26: Asset Quality
Asset Quality SECTION 03
Slide 27: Asset Quality
Asset Quality 27As of December 31, 2025 $214 $1 YE 20251 Nonperforming Loan Breakdown YE 2021 YE 2022 YE 2023 YE 2024 YE 2025 NPL CRE $ 3 $ 2 $ 1 $ 1 $ 24 C&I 1 — — 1 1 Res. Mtg. 1 1 4 5 5 Other Consumer 2 4 — — — Construction — — 3 — — Other — — 302 252 214 Total NPL $ 7 $ 7 $ 310 $ 259 $ 244 1 1 $
Slide 28: Delinquency Trends
Delinquency Trends 28As of December 31, 2025 Past Due Loans / Total Portfolio Loans 0.06% 0.15% 0.17% 0.13% 0.08% 0.05% 0.08% 0.16% 0.13% 0.06%0.01% 0.07% 0.01% 0.02% $1,670 $4,837 $6,032 $4,828 $3,236 30-59 Days PD 60-89 Days PD Total PD Amt YE 2021 YE 2022 YE 2023 YE 2024 YE 2025 —% 0.06% 0.12% 0.
Slide 29: Delinquency Trends
Delinquency Trends 29 As of December 31, 2025 Delinquency Trends $3,236 0.08% $243,982 6.29% $3,632,342 93.63% 30-89 Days Past Due NPL Current December 31, 2025 $ in thousands Current 30-89 Days Past Due NPL Total Portfolio Loans Commercial Real Estate $ 2,090,450 $ 3 $ 23,861 $ 2,114,314 Commercial
Slide 30: Nonperforming Relationships
Nonperforming Relationships 30As of December 31, 2025 Nonaccrual Balance Change Comments $ in thousands 12/31/2025 12/31/2024 1. Other1,2 $ 214,020 $ 251,982 $ (37,962) Other 2. CRE 14,321 — 14,321 Office Building 3. CRE 9,495 — 9,495 Commercial Warehouse Property 4. Residential Construction 2,018 2
Slide 31: Loan Portfolio - Risk Ratings
Loan Portfolio - Risk Ratings 31As of December 31, 2025 Portfolio Credit Quality Trend $2,812 $3,149 $3,506 $3,625 $3,880 $2,616 $2,992 $3,192 $3,351 $3,617 $186 $142 $310 $267 $251 93.0% 95.0% 91.1% 92.4% 93.2% Pass Substandard Special Mention % of Pass to Total YE 2021 YE 2022 YE 2023 YE 2024 YE 2
Slide 32: Net Charge-offs & Provision Expense
Net Charge-offs & Provision Expense 32As of December 31, 2025 ACL Composition & ACL Coverage Ratio $95,939 $93,852 $97,052 $75,600 $71,491 $94,974 $93,183 $42,738 $44,895 $51,534 $965 $669 $54,314 $30,705 $19,957 3.41% 2.98% 2.77% 2.09% 1.84% General Reserves Individually Evaluated Loan Reserves ACL
Slide 33: Deposit Mix
Deposit Mix SECTION 04
Slide 34: Deposits
Deposits 34As of December 31, 2025 Total Deposit Composition $3,698 $3,633 $3,722 $4,153 $4,211 $748 $706 $685 $634 $621 $2,950 $2,927 $3,037 $3,519 $3,590 Noninterest-bearing deposits Interest-bearing deposits YE 2021 YE 2022 YE 2023 YE 2024 YE 2025 $— $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500
Slide 35: Net Interest Income & NIM
Net Interest Income & NIM 0.57% 0.50% 1.73% 2.41% 2.18%3.41% 4.01% 4.60% 4.99% 5.01% 2.84% 3.51% 2.87% 2.58% 2.83% Total Cost of Funds Yield on Interest-earning Assets Net Interest Margin YE 2021 YE 2022 YE 2023 YE 2024 YE 2025 Net Interest Income 35As of December 31, 2025 $252 Avg. Earning Assets &
Slide 36: Commercial Loans
Commercial Loans SECTION 05
Slide 37: CRE Segment Overview
CRE Segment Overview 37As of December 31, 2025 Total CRE: $2,768.1 Total CRE, excluding "Other": $2,617.9 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
Slide 38: Hospitality Metrics
Hospitality Metrics 38As of December 31, 2025 $252 • Total portfolio balance $373.5M • Geographic diversification (see map) • Mean loan size in portfolio $6.8M1 • Median of loans in portfolio $4.3M1 • The largest loan in portfolio $51.6M1 • 23.90% are under construction1 • Top 10 borrowers make up 4
Slide 39: Hospitality Metrics
Hospitality Metrics 39As of December 31, 2025 $ 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 $ 133,596 35.8 % $ 181,173 60.2 % $ 7,859 $
Slide 40: Multifamily Metrics
Multifamily Metrics 40As of December 31, 2025 $252 • Total portfolio balance $435.5M • Geographic diversification (see map) • Mean loan size in portfolio $4.1M1 • Median of loans in portfolio $435K1 • The largest loan in portfolio $27M1 • 41.22% are under construction1 • Top 10 borrowers make up 49.
Slide 41: Multifamily Metrics
Multifamily Metrics 41As of December 31, 2025 $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 $ 379,810 87.2 % $ 516,138 49.5 % $ 4,869 $ 116
Slide 42: Retail Metrics
Retail Metrics 42As of December 31, 2025 $252 4.33 RISK RATING LTV DEBT/SQ FT 70.0% $148 AVERAGE • Total portfolio balance $519.9M** • Geographic diversification (see map) • Mean loan size in portfolio $3.1M1 • Median of loans in portfolio $1.4M1 • The largest loan in portfolio $27M1 • 13.16% are un
Slide 43: Retail Metrics
Retail Metrics 43As of December 31, 2025 $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 $ 259,548 49.9 % $ 283,215 84.3 % $ 4,991 $ 143
Slide 44: Office Metrics
Office Metrics 44As of December 31, 2025 $252 • Total portfolio balance $217.6M • Geographic diversification (see map) • Mean loan size in portfolio $1.8M1 • Median of loans in portfolio $496K1 • The largest loan in portfolio $20M1 • 1.67% are under construction1 • Top 10 borrowers make up 55.10% of
Slide 45: Office Metrics
Office Metrics 45As of December 31, 2025 $ 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 $ 126,283 58.0 % $ 134,608 $ 1,707 $ 127 Medical Offices 42,892
Slide 46: Non-GAAP Reconciliation
Non-GAAP Reconciliation SECTION 06
Slide 47: Non-GAAP Statement
Non-GAAP Statement 47As of December 31, 2025 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 48: Non-GAAP Reconciliation
Non-GAAP Reconciliation 48As of December 31, 2025 $252 Quarter-to-Date Year-to-Date Adjusted Net Interest Income (FTE) (Non-GAAP) 4Q 2025 3Q 2025 4Q 2024 12/31/25 12/31/24 (Dollars in Thousands) Interest and Dividend Income (FTE)(Non-GAAP) Interest and Dividend Income (GAAP) $ 59,298 $ 59,170 $ 56,5
Slide 49: Non-GAAP Reconciliation
Non-GAAP Reconciliation 49 3 Computed on a fully taxable equivalent basis ("FTE") using a 21% federal income tax rate for the 2025 and 2024 periods. $252 Quarter-to-Date Year-to-Date Adjusted Efficiency Ratio (Non-GAAP) 4Q 2025 3Q 2025 4Q 2024 12/31/25 12/31/24 (Dollars in Thousands) Noninterest Exp
Slide 50: Non-GAAP Reconciliation
Non-GAAP Reconciliation 50As of December 31, 2025 $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 levels
Slide 51: Non-GAAP Reconciliation
Non-GAAP Reconciliation 51As of December 31, 2025 $252 Adjusted Nonperforming Loans ("NPL") to Total Portfolio Loans (Non-GAAP) December 31, 2025 (Dollars in Thousands) Adjusted NPLs (Non-GAAP) Total NPL $ 243,982 Less: Bank's Largest Lending Relationship 214,020 Total NPL, excluding Bank's Largest