Carter Bankshares, Inc. · NASDAQ:CARE
Carter Bankshares — Q1 2026 Earnings Presentation
53 slides from Carter Bankshares's earnings presentation, May 1, 2026
Slide 1: Investor Presentation First Quarter 2026
Investor Presentation First 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 4-14 SECTION 02 Financial Highlights 15-26 SECTION 03 Asset Quality 27-33 SECTION 04 Deposit Mix 34-36 SECTION 05 Commercial Loans 37-46 SECTION 06 Non-GAAP Reconciliation 47-53
Slide 4: Overview
Overview SECTION 01
Slide 5: Company History
5As of March 31, 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. holdi
Slide 6: Regional Footprint
Corporate Headquarters Regional Offices Branches Map Key 50 Total Branches in Virginia Total VA Deposits $3.7 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 March 31, 2026
Slide 10: Corporate & Social Responsibility
Corporate & Social Responsibility 10As of March 31, 2026 757 Volunteer Community Service Hours – 39 Nonprofits Supported by Associates Serving on Boards & Committees – $179,371 Charitable Donations & Sponsorships to Nonprofits – 26 Financial Education Classes Facilitated for 725 Students Associates
Slide 11: Investment Highlights
As of Month XX, XXXX Investment Highlights Strong Financial Performance • Strong Liquidity & Capital Position • CET1 of 13.52% • ACL coverage of 1.41% • $1.6B of total available liquidity • 214.5% total available liquidity / uninsured deposits Attractive Markets & Customers • Well Positioned in Virg
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: Loan Sale Transaction Summary
Loan Sale Transaction Summary 13 Legacy Nonperforming Loans Note Book Balance $ 209,483,864 Premium on Sale 65,000,000 Recovery of $15 million charge-off 15,000,000 Total Consideration Received 289,483,864 Payoff Note Balances 209,483,864 Gain on Sale and Recovery 80,000,000 Release Remaining Specif
Slide 14: Safety & Soundness
Safety & Soundness 14As of March 31, 2026 Capital Asset Quality Earnings 13.52% Common Equity Tier 1 Ratio (CET1) – 14.78% Total Risk-based Capital Ratio – 11.10% Leverage Ratio – $22.78 Book Value 0.08% Delinquency/Portfolio Loans – 0.64% NPL/Portfolio Loans – 1.41% ACL/Portfolio Loans – (1.55)% Ne
Slide 15: Financial Highlights
Financial SECTION 02
Slide 16: Balance Sheet & Income Statement
Balance Sheet & Income Statement 16As of March 31, 2026 Operational Results 1Q 2026 4Q 2025 Q/Q Change $ 1Q 2025 Y/Y Change $ Net Interest Income $ 35,934 $ 34,604 $ 1,330 $ 30,138 $ 5,796 Recovery for Credit Losses (33,917) (2,178) (31,739) (2,025) (31,892) Recovery for Unfunded Commitments (218) (
Slide 17: Financial / Shareholder Ratios
Financial / Shareholder Ratios 17As of March 31, 2026 Shareholder Ratios 1Q 2026 4Q 2025 Q/Q Change 1Q 2025 Y/Y Change Diluted Earnings Per Share (QTD) $ 3.88 $ 0.38 $ 3.50 $ 0.39 $ 3.49 Financial Ratios Return on Avg Assets (QTD) 7.13 % 0.70 % 6.43 % 0.78 % 6.35 % Return on Avg Shareholders' Equity
Slide 18: Financial Performance Trends
Financial Performance Trends 18As of March 31, 2026 Net Income, in thousands $50,11 8 $23,384 $24,523 $31 ,362 $34,995 2022 2023 2024 2025 1 Q2026 Adjusted Efficiency Ratio 60.67% 72.54% 80.95% 76.05% 72.66% 2022 2023 2024 2025 1 Q2026 ROA 1 .21 % 0.53% 0.54% 0.66% 7.1 3% 0.72% 2022 2023 2024 2025 1
Slide 19: Capital Management
Carter Bankshares Regulatory Well Capitalized Actual Excess ($) (In Thousands) Common Equity Tier 1 Ratio ("CET 1") 6.50 % 13.52 % $ 283,476 Tier 1 Risk-based Ratio 8.00 % 13.52 % 222,935 Total Risk-based Capital Ratio 10.00 % 14.78 % 192,724 Leverage Ratio 5.00 % 11.10 % 300,024 Critically Undercap
Slide 20: Liquidity
Liquidity 20As of March 31, 2026 $ in thousands March 31, 2026 December 31, 2025 Change Cash and Due From Banks, including Interest-bearing Deposits $ 228,318 $ 105,163 $ 123,155 FHLB Borrowing Availability1 816,643 609,392 207,251 Unsecured Lines of Credit 30,000 30,000 — Collateralized Lines of Cr
Slide 21: Loan Composition
Loan Composition 21As of March 31, 2026 For the Period Ending Variance $ in thousands 03/31/2026 12/31/2025 03/31/2025 Quarter Year CRE - Non-Owner Occupied $ 1,575,228 $ 1,591,350 $ 1,548,080 $ (16,122) $ 27,148 CRE - Multifamily 391,980 386,257 303,592 5,723 88,388 CRE - Owner Occupied 160,720 136
Slide 22: Loan Portfolio by Rate Type
Loan Portfolio by Rate Type Fixed $1 ,534 41 % Floating $770 21 % Variable $1 ,424 38% Loan Portfolio Repricing & Index 1Q2026 22As of March 31, 2026 Loan Portfolio by Rate Index Type Fixed $1 ,534 41 % SOFR $608 1 6% Prime $1 68 5% Treasury $1 ,41 8 38% $3.7B $3.7B 1Floating Rate Loans are defined
Slide 23: Top Ten Relationships (Total Commitment)
Top Ten (10) Relationships (Total Commitment) 23As of March 31, 2026 For the Periods Ending Change % of Gross Loans % of RBC $ in thousands 3/31/2026 12/31/2025 1. Multifamily $ 58,541 $ 58,610 $ (69) 1.57 % 9.82 % 2. Retail & Office 54,487 54,838 (351) 1.46 % 9.14 % 3. Retail & Warehouse 47,965 38,
Slide 24: Bond Portfolio
Bond Portfolio 24As of March 31, 2026 March 31, 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 $ 18,151 $ (404) $ 17,747 $ 19,796 $ (421) $ 19,375 Residential Mo
Slide 25: Deposit Composition
Deposit Composition 25As of March 31, 2026 For the Period Ending Variance $ in thousands 03/31/2026 12/31/2025 03/31/2025 Quarter Year Lifetime Free Checking $ 637,933 $ 620,473 $ 631,714 $ 17,460 $ 6,219 Interest-Bearing Demand 871,398 808,171 794,059 63,227 77,339 Money Market 514,362 553,964 528,
Slide 26: Deposits: Past, Present, Future
As of Month XX, XXXX Past Present Future Deposit Mix - 12/31/2017 Deposit Mix - 03/31/2026 Deposit Mix - Target Deposits 26 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 27: Asset Quality
Asset Quality SECTION 03
Slide 28: Asset Quality
Asset Quality 28As of March 31, 2026 $229 $259 $ in millions 7 Percent of NPLs to Nonperforming Assets $7 $8 $7 $30 $24 $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 1 Q 2026 $— $5 $1 0 $1 5 $20 $25 $30 $35 $40 $4
Slide 29: Delinquency Trends
Delinquency Trends 29As of March 31, 2026 Past Due Loans / Total Portfolio Loans 0.1 5% 0.1 7% 0.1 3% 0.08% 0.08% 0.08% 0.1 6% 0.1 3% 0.06% 0.08% 0.07% 0.01 % — % 0.02% — % $4,837 $6,032 $4,828 $3,236 $3,1 66 30-59 Days PD 60-89 Days PD Total PD Amt YE 2022 YE 2023 YE 2024 YE 2025 Q1 2026 — % 0.05%
Slide 30: Delinquency Trends
Delinquency Trends 30 As of March 31, 2026 Delinquency Trends $3,1 66 0.1 % $23,971 0.6% $3,701 ,324 99.3% 30-89 Days Past Due NPL Current March 31, 2026 $ in thousands Current 30-89 Days Past Due NPL Total Portfolio Loans Commercial Real Estate $ 2,106,146 $ 133 $ 21,649 $ 2,127,928 Commercial and
Slide 31: Nonperforming Relationships
Nonperforming Relationships 31As of March 31, 2026 Nonaccrual Balance Change Comments $ in thousands 3/31/2026 12/31/2025 1. CRE $ 14,055 $ 14,321 $ (266) Office Building 2. CRE 7,552 9,495 (1,943) Commercial Warehouse Property 3. Construction 402 — 402 Residential Mortgage Loan 4. Residential Mortg
Slide 32: Loan Portfolio - Risk Ratings
Loan Portfolio - Risk Ratings 32As of March 31, 2026 Portfolio Credit Quality Trend $3,1 49 $3,506 $3,625 $3,880 $3,728 $2,992 $3,1 92 $3,351 $3,61 7 $3,684 $1 42 $31 0 $267 $251 95.0% 91.1% 92.4% 93.2% 98.8% Pass Substandard Special Mention % of Pass to Total YE 2022 YE 2023 YE 2024 YE 2025 Q1 2026
Slide 33: Net Charge-offs & Provision Expense
Net Charge-offs & Provision Expense 33As of March 31, 2026 ACL Composition & ACL Coverage Ratio $93,852 $97,052 $75,600 $71 ,491 $52,503 $93,1 83 $42,738 $44,895 $51 ,534 $51 ,482 $669 $54,31 4 $30,705 $1 9,957 $1 ,021 2.98% 2.77% 2.09% 1 .84% 1 .41 % General Reserves Individually Evaluated Loan Res
Slide 34: Deposit Mix
Deposit Mix SECTION 04
Slide 35: Deposits
Deposits 35As of March 31, 2026 Total Deposit Composition $3,633 $3,722 $4,1 53 $4,211 $4,235 $706 $685 $634 $621 $638 $2,927 $3,037 $3,51 9 $3,590 $3,597 Noninterest-bearing deposits Interest-bearing deposits YE 2022 YE 2023 YE 2024 YE 2025 Q1 2026 $— $500 $1 ,000 $1 ,500 $2,000 $2,500 $3,000 $3,50
Slide 36: Total Deposits, Cost of Deposits and Net Interest Income
Total Deposits and Cost of Deposits $4,1 65 $4,203 $4,233 $4,232 $4,243 621 628 628 630 633 3,544 3,575 3,605 3,602 3,61 0 2.44% 2.30% 2.25% 2.1 6% 2.06% Noninterest-bearing Deposits Interest-bearing Demand Deposits Total Cost of Deposits Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026 $— $500 $1 ,000 $1 ,5
Slide 37: Commercial Loans
Commercial Loans SECTION 05
Slide 38: CRE Segment Overview
CRE Segment Overview 38As of March 31, 2026 Total CRE: $2,682.7 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 $35.2 million 2 2 1 1
Slide 39: Hospitality Metrics
Hospitality Metrics 39As of March 31, 2026 $252 • Total portfolio balance $312.4M • Geographic diversification (see map) • Mean loan size in portfolio $6.0M1 • Median of loans in portfolio $4.2M1 • The largest loan in portfolio $20.0M1 • 31.54% are under construction1 • Top 10 borrowers make up 38.0
Slide 40: Hospitality Metrics
Hospitality Metrics 40As of March 31, 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 $ 123,739 39.6 % $ 170,778 59.6 % $ 7,279 $ 112
Slide 41: Multifamily Metrics
Multifamily Metrics 41As of March 31, 2026 $252 • Total portfolio balance $439.7M • Geographic diversification (see map) • Mean loan size in portfolio $4.1M1 • Median of loans in portfolio $435K1 • The largest loan in portfolio $26.0M1 • 38.57% are under construction1 • Top 10 borrowers make up 49.3
Slide 42: Multifamily Metrics
Multifamily Metrics 42As of March 31, 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 $ 383,591 87.2 % $ 515,630 49.8 % $ 4,918 $ 117 Stu
Slide 43: Retail Metrics
Retail Metrics 43As of March 31, 2026 $252 4.34 RISK RATING LTV DEBT/SQ FT 69.9% $149 AVERAGE • Total portfolio balance $512.7M** • Geographic diversification (see map) • Mean loan size in portfolio $3.1M1 • Median of loans in portfolio $1.4M1 • The largest loan in portfolio $27M1 • 13.58% are under
Slide 44: Retail Metrics
Retail Metrics 44As of March 31, 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 $ 250,302 48.8 % $ 271,229 85.4 % $ 5,215 $ 146 Una
Slide 45: Office Metrics
Office Metrics 45As of March 31, 2026 $252 • Total portfolio balance $202.7M • Geographic diversification (see map) • Mean loan size in portfolio $1.8M1 • Median of loans in portfolio $500K1 • The largest loan in portfolio $23.0M1 • 8.34% are under construction1 • Top 10 borrowers make up 53.01% of
Slide 46: Office Metrics
Office Metrics 46As of March 31, 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 $ 110,963 54.7 % $ 117,677 $ 1,563 $ 132 Medical Offices 43,425 21.
Slide 47: Non-GAAP Reconciliation
Non-GAAP Reconciliation SECTION 06
Slide 48: Non-GAAP Statement
Non-GAAP Statement 48As of March 31, 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 ret
Slide 49: Non-GAAP Reconciliation
Non-GAAP Reconciliation 49As of March 31, 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 an
Slide 50: Non-GAAP Reconciliation
Non-GAAP Reconciliation 50As of March 31, 2026 $252 Quarter-to-Date Adjusted Return on Average Assets (ROA) (Non-GAAP) Q1 2026 (Dollars in Thousands) Adjusted Net Income (Non-GAAP)* $ 8,629 Adjusted Net Income (Non-GAAP) (YTD annualized) 34,995 Average Assets $ 4,878,272 Adjusted ROA (Non-GAAP) 0.72
Slide 51: Non-GAAP Reconciliation
Non-GAAP Reconciliation 51As of March 31, 2026 $252 Quarter-to-Date Adjusted Net Interest Income (FTE) (Non-GAAP) Q1 2026 Q4 2025 Q1 2025 (Dollars in Thousands) Interest Income (FTE) (Non-GAAP) Interest and Dividend Income (GAAP) $ 59,185 $ 59,298 $ 56,007 Tax Equivalent Adjustment 3 154 159 178 Int
Slide 52: Non-GAAP Reconciliation
Non-GAAP Reconciliation 52 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 Adjusted Efficiency Ratio (Non-GAAP) Q1 2026 Q4 2025 Q1 2025 (Dollars in Thousands
Slide 53: Non-GAAP Reconciliation
Non-GAAP Reconciliation 53 6 The gain on BOLI death benefit is tax-exempt. $252 Quarter-to-Date Adjusted Net Income and EPS (Non-GAAP) Q1 2026 Q4 2025 Q1 2025 (Dollars in Thousands) Net Income $ 85,757 $ 8,480 $ 8,953 Gain on the Transaction (65,000) — — Specific Reserves Released Related to the Tra