Carter Bankshares, Inc. · NASDAQ:CARE
Carter Bankshares — Q2 2026 Earnings Presentation
54 slides from Carter Bankshares's earnings presentation, Jul 27, 2026
Slide 1: Investor Presentation Second Quarter 2026
Investor Presentation Second 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 June 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. holdin
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 $0.6 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 June 30, 2026
Slide 10: Corporate & Social Responsibility
Corporate & Social Responsibility 10As of June 30, 2026 1,632 Volunteer Community Service Hours – 47 Nonprofits Supported by Associates Serving on Boards & Committees – $439,731 Charitable Donations & Sponsorships to Nonprofits – 55 Financial Education Classes Facilitated for 2,026 Students Associat
Slide 11: Investment Highlights
As of Month XX, XXXX Investment Highlights Strong Financial Performance • Strong Liquidity & Capital Position • CET1 of 14.26% • ACL coverage of 1.48% • $1.8B of total available liquidity • 237.9% 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 June 30, 2026 Capital Asset Quality Earnings 14.26% Common Equity Tier 1 Ratio (CET1) – 15.51% Total Risk-based Capital Ratio – 11.65% Leverage Ratio – $24.33 Book Value 0.07% Delinquency/Portfolio Loans – 1.01% NPL/Portfolio Loans – 1.48% ACL/Portfolio Loans – (0.82)% Net
Slide 14: Financial Highlights
Financial SECTION 02
Slide 15: Income Statement
Income Statement 15As of June 30, 2026 Operational Results 2Q 2026 1Q 2026 Q/Q Change $ 2Q 2025 Y/Y Change $ Net Interest Income $ 39,950 $ 35,934 $ 4,016 $ 32,359 $ 7,591 Provision (Recovery) for Credit Losses 2,010 (33,917) 35,927 (2,330) 4,340 Recovery for Unfunded Commitments (554) (218) (336) (
Slide 16: Balance Sheet
Balance Sheet 16As of June 30, 2026 Balance Sheet Condition 2Q 2026 1Q 2026 Q/Q Change $ 2Q 2025 Y/Y Change $ Assets $ 4,801,883 $ 4,799,270 $ 2,613 $ 4,784,091 $ 17,792 Loans Held-for-Sale 467 341 126 246 221 Portfolio Loans 3,734,594 3,728,461 6,133 3,747,121 (12,527) Allowance for Credit Losses (
Slide 17: Financial / Shareholder Ratios
Financial / Shareholder Ratios 17As of June 30, 2026 Shareholder Ratios 2Q 2026 1Q 2026 Q/Q Change $ 2Q 2025 Y/Y Change $ Diluted Earnings Per Share (QTD) $ 1.31 $ 3.88 $ (2.57) $ 0.37 $ 0.94 Adj. Diluted Earnings Per Share (QTD) $ 0.53 $ 0.40 $ 0.13 $ 0.41 $ 0.12 Financial Ratios Return on Avg Asse
Slide 18: Financial Performance Trends
Financial Performance Trends 18As of June 30, 2026 Net Income, in thousands $50,118 $23,384 $24,523 $31,362 $46,519 2022 2023 2024 2025 2Q2026 Adjusted Efficiency Ratio 60.67% 72.54% 80.95% 76.05% 62.66% 2022 2023 2024 2025 2Q2026 ROA 1.21% 0.53% 0.54% 0.66% 2.39% 0.96% 2022 2023 2024 2025 2Q2026 TC
Slide 19: Capital Management
Carter Bankshares Regulatory Well Capitalized Actual Excess ($) (In Thousands) Common Equity Tier 1 Ratio ("CET 1") 6.50 % 14.26 % $ 310,229 Tier 1 Risk-based Ratio 8.00 % 14.26 % 250,260 Total Risk-based Capital Ratio 10.00 % 15.51 % 220,366 Leverage Ratio 5.00 % 11.65 % 325,345 Critically Undercap
Slide 20: Capital Management
(Dollars in Thousands) Minimum Required Basel III Well Capitalized 1 June 30, 2026 December 31, 2025 Amount Ratio Amount Ratio Carter Bankshares, Inc. Leverage Ratio 4.00 % NA $570,098 11.65 % $459,735 9.43 % Common Equity Tier 1 (to Risk-weighted Assets) 7.00 % NA 570,098 14.26 % 459,735 10.70 % Ti
Slide 21: Liquidity
Liquidity 21As of June 30, 2026 $ in thousands June 30, 2026 December 31, 2025 Change Cash and Due From Banks $ 41,101 $ 36,935 $ 4,166 Interest Bearing Deposits in Other Financial Institutions 167,427 12,134 155,293 Federal Reserve Bank Excess Reserves 68,007 56,094 11,913 FHLB Borrowing Availabili
Slide 22: Loan Composition
Loan Composition 22As of June 30, 2026 For the Period Ending Variance $ in thousands 06/30/2026 03/31/2026 06/30/2025 Quarter Year CRE - Non-Owner Occupied $ 1,575,976 $ 1,575,228 $ 1,565,039 $ 748 $ 10,937 CRE - Multifamily 394,829 391,980 354,471 2,849 40,358 CRE - Owner Occupied 172,557 160,720 8
Slide 23: Loan Portfolio Repricing & Index
Loan Portfolio by Rate Type Fixed $1,552 42% Floating $784 21% Variable $1,399 37% Loan Portfolio Repricing & Index 2Q2026 23As of June 30, 2026 Loan Portfolio by Rate Index Type Fixed $1,552 42% SOFR $614 16% Prime $1,394 37% Treasury $175 5% $3.7B $3.7B 1Floating Rate Loans are defined as loans wi
Slide 24: Top Ten Relationships (Total Commitment)
Top Ten (10) Relationships (Total Commitment) 24As of June 30, 2026 For the Periods Ending Change % of Gross Loans % of RBC $ in thousands 6/30/2026 12/31/2025 1. Multifamily $ 58,475 $ 58,610 $ (135) 1.57 % 9.43 % 2. Retail & Office 53,637 54,838 (1,201) 1.44 % 8.65 % 3. Retail & Warehouse 47,725 3
Slide 25: Bond Portfolio
Bond Portfolio 25As of June 30, 2026 June 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 $ 16,611 $ (458) $ 16,153 $ 19,796 $ (421) $ 19,375 Residential Mort
Slide 26: Deposit Composition
Deposit Composition 26As of June 30, 2026 For the Period Ending Variance $ in thousands 06/30/2026 03/31/2026 06/30/2025 Quarter Year Lifetime Free Checking $ 655,482 $ 637,933 $ 635,192 $ 17,549 $ 20,290 Interest-Bearing Demand 866,759 871,398 805,013 (4,639) 61,746 Money Market 510,125 514,362 544
Slide 27: Deposits: Past, Present, Future Mix
As of Month XX, XXXX Past Present Future Deposit Mix - 12/31/2017 Deposit Mix - 06/30/2026 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 $4.2B •CD Portfolio ($
Slide 28: Asset Quality
Asset Quality SECTION 03
Slide 29: Asset Quality
Asset Quality 29As of June 30, 2026 $229 $259 $ in millions 7 Percent of NPLs to Nonperforming Assets $7 $8 $7 $30 $38 $8 $2 $1 $— $3 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 2Q 2026 $— $5 $10 $15 $20 $25 $30 $35 $40 $45 —%
Slide 30: Delinquency Trends
Delinquency Trends 30As of June 30, 2026 Past Due Loans / Total Portfolio Loans 0.15% 0.17% 0.13% 0.08% 0.07% 0.08% 0.16% 0.13% 0.06% 0.07% 0.07% 0.01% —% 0.02% —% $4,837 $6,032 $4,828 $3,236 $2,611 30-59 Days PD 60-89 Days PD Total PD Amt YE 2022 YE 2023 YE 2024 YE 2025 Q2 2026 —% 0.05% 0.10% 0.15%
Slide 31: Delinquency Trends
Delinquency Trends 31 As of June 30, 2026 Delinquency Trends $2,611 0.1% $37,561 1.0% $3,694,422 98.9% 30-89 Days Past Due NPL Current June 30, 2026 $ in thousands Current 30-89 Days Past Due NPL Total Portfolio Loans Commercial Real Estate $ 2,121,800 $ — $ 21,562 $ 2,143,362 Commercial and Industr
Slide 32: Nonperforming Relationships
Nonperforming Relationships 32As of June 30, 2026 Nonaccrual Balance Change Comments $ in thousands 6/30/2026 12/31/2025 1. CRE $ 13,974 $ 14,321 $ (347) Office Building 2. C&I 13,444 — 13,444 Motor Vehicle Towing Co. 3. CRE 7,552 9,495 (1,943) Commercial Warehouse Property 4. Construction 402 — 402
Slide 33: Loan Portfolio - Risk Ratings
Loan Portfolio - Risk Ratings 33As of June 30, 2026 Portfolio Credit Quality Trend $3,149 $3,506 $3,625 $3,880 $3,735 $2,992 $3,192 $3,351 $3,617 $3,678 $142 $310 $267 $251 95.0% 91.1% 92.4% 93.2% 98.5% Pass Substandard Special Mention % of Pass to Total YE 2022 YE 2023 YE 2024 YE 2025 Q2 2026 $— $5
Slide 34: Net Charge-offs & Provision Expense
Net Charge-offs & Provision Expense 34As of June 30, 2026 ACL Composition & ACL Coverage Ratio $93,852 $97,052 $75,600 $71,491 $55,170 $93,183 $42,738 $44,895 $51,534 $50,980 $669 $54,314 $30,705 $19,957 $4,190 2.98% 2.77% 2.09% 1.84% 1.48% General Reserves Individually Evaluated Loan Reserves ACL t
Slide 35: Deposit Mix
Deposit Mix SECTION 04
Slide 36: Deposits
Deposits 36As of June 30, 2026 Total Deposit Composition $3,633 $3,722 $4,153 $4,211 $4,198 $706 $685 $634 $621 $656 $2,927 $3,037 $3,519 $3,590 $3,542 Noninterest-bearing deposits Interest-bearing deposits YE 2022 YE 2023 YE 2024 YE 2025 Q2 2026 $— $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,
Slide 37: Total Deposits and Cost of Deposits; Net Interest Income
Total Deposits and Cost of Deposits $4,203 $4,233 $4,232 $4,243 $4,263 628 628 630 633 654 3,575 3,605 3,602 3,610 3,609 2.30% 2.25% 2.16% 2.06% 2.01% Noninterest-bearing Deposits Interest-bearing Demand Deposits Total Cost of Deposits Q2 2025 Q3 2025 Q4 2025 Q1 2026 Q2 2026 $— $500 $1,000 $1,500 $2
Slide 38: Commercial Loans
Commercial Loans SECTION 05
Slide 39: CRE Segment Overview
CRE Segment Overview 39As of June 30, 2026 Total CRE: $2,676.9 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 loans of $36.7 million 2 2 1 1
Slide 40: Hospitality Metrics
Hospitality Metrics 40As of June 30, 2026 $252 • Total portfolio balance $311.4M • Geographic diversification (see map) • Mean loan size in portfolio $6.0M1 • Median of loans in portfolio $4.1M1 • The largest loan in portfolio $20.0M1 • 22.60% are under construction1 • Top 10 borrowers make up 38.89
Slide 41: Hospitality Metrics
Hospitality Metrics 41As of June 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 $ 126,507 40.6 % $ 170,011 54.7 % $ 7,442 $ 112
Slide 42: Multifamily Metrics
Multifamily Metrics 42As of June 30, 2026 $252 • Total portfolio balance $442.4M • Geographic diversification (see map) • Mean loan size in portfolio $4.1M1 • Median of loans in portfolio $6.5M1 • The largest loan in portfolio $26.0M1 • 35.14% are under construction1 • Top 10 borrowers make up 50.39
Slide 43: Multifamily Metrics
Multifamily Metrics 43As of June 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 $ 379,731 85.8 % $ 482,888 49.2 % $ 5,202 $ 120 Stud
Slide 44: Retail Metrics
Retail Metrics 44As of June 30, 2026 $252 4.37 RISK RATING LTV DEBT/SQ FT 23.4% $148 AVERAGE • Total portfolio balance $529.0M** • Geographic diversification (see map) • Mean loan size in portfolio $3.0M1 • Median of loans in portfolio $1.4M1 • The largest loan in portfolio $27M1 • 10.01% are under
Slide 45: Retail Metrics
Retail Metrics 45As of June 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 $ 251,750 47.6 % $ 269,346 25.8 % $ 4,750 $ 130 Unan
Slide 46: Office Metrics
Office Metrics 46As of June 30, 2026 $252 • Total portfolio balance $205.8M • Geographic diversification (see map) • Mean loan size in portfolio $1.9M1 • Median of loans in portfolio $517K1 • The largest loan in portfolio $23.0M1 • 8.37% are under construction1 • Top 10 borrowers make up 51.18% of t
Slide 47: Office Metrics
Office Metrics 47As of June 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 $ 104,521 50.8 % $ 110,333 $ 1,515 $ 153 Medical Offices 43,936 21.3
Slide 48: Non-GAAP Reconciliation
Non-GAAP Reconciliation SECTION 06
Slide 49: Non-GAAP Statement
Non-GAAP Statement 49As of June 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 retu
Slide 50: Non-GAAP Reconciliation
Non-GAAP Reconciliation 50As of June 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 levels and
Slide 51: Non-GAAP Reconciliation
Non-GAAP Reconciliation 51As of June 30, 2026 $252 Quarter-to-Date Year-to-Date Adjusted Return on Average Assets (ROA) (Non-GAAP) Q2 2026 Q1 2026 Q2 2025 June 30, 2026 June 30, 2025 (Dollars in Thousands) Adjusted Net Income (Non-GAAP)* $ 11,598 $ 8,629 $ 9,312 $ 20,227 $ 16,554 Adjusted Net Income
Slide 52: Non-GAAP Reconciliation
Non-GAAP Reconciliation 52As of June 30, 2026 $252 Quarter-to-Date Year-to-Date Adjusted Net Interest Income (FTE) (Non-GAAP) Q2 2026 Q1 2026 Q2 2025 06/30/26 06/30/25 (Dollars in Thousands) Interest Income (FTE) (Non-GAAP) Interest and Dividend Income (GAAP) $ 61,491 $ 59,185 $ 57,747 $ 120,676 $ 1
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) Q2 2026 Q1 2026 Q2 2025 06/30/26
Slide 54: Non-GAAP Reconciliation
Non-GAAP Reconciliation 54 $252 Quarter-to-Date Year-to-Date Adjusted Net Income and EPS (Non-GAAP) Q2 2026 Q1 2026 Q2 2025 6/30/2026 6/30/2025 (Dollars in Thousands) Net Income $ 28,911 $ 85,757 $ 8,510 $ 114,668 $ 17,463 Less: Gain on the Insurance Transaction (35,949) — — (35,949) — Less: Gain on