Recent developments include the announcement of third quarter 2026 financial results with earnings and revenues below some expectations, declaration of a quarterly cash dividend, and furnishing of a third quarter 2026 investor presentation.

• Carter Bankshares, Inc. furnished its Third Quarter 2026 Investor Presentation on November 3, 2026 [N1].
• The company declared a quarterly cash dividend of $0.10 per share on October 29, 2026 [N2].
• Carter Bankshares, Inc. announced its Third Quarter 2026 Financial Results on October 29, 2026, reporting earnings and revenues below some expectations [N3][N4][N5].

The company demonstrates disciplined underwriting and risk management practices, including oversight of commercial real estate lending concentrations, which can support credit quality. Its well-capitalized status and access to multiple liquidity sources provide financial flexibility. The declaration of consistent dividends indicates a stable cash flow generation. The furnishing of investor presentations and transparent financial disclosures enhance stakeholder communication and confidence.

The company faces risks from regulatory changes, including evolving cybersecurity and privacy laws, which may increase compliance costs. Concentrations in commercial real estate lending could expose the company to sector-specific downturns. Dependence on dividends from the bank subsidiary for revenue may limit financial flexibility. Market conditions and Federal Reserve monetary policies can materially affect earnings and financial condition. Recent quarterly results showed earnings and revenues below some expectations, indicating potential operational challenges.

Carter Bankshares benefits from regulatory compliance and risk management frameworks that support prudent lending and capital adequacy, which are critical in the banking industry. Its established relationships with regulatory agencies and adherence to evolving cybersecurity and privacy regulations contribute to operational stability. The company's membership in the Federal Home Loan Bank system provides access to contingent liquidity sources, supporting its funding flexibility. These factors collectively contribute to a competitive position within its regional banking market.

• Regulatory and Compliance Risks: The company is subject to extensive federal and state regulations including privacy, anti-money laundering, and cybersecurity requirements. Changes in these regulations could increase compliance costs and operational complexity.
• Credit Concentration Risks: Concentrations in commercial real estate lending require heightened risk management. Adverse developments in this sector could impact credit quality and financial performance.
• Liquidity and Funding Risks: The company relies on contingent liquidity sources such as the Federal Home Loan Bank system. Disruptions or restrictions in access to these sources could impair liquidity.
• Market and Economic Risks: Monetary policies and economic conditions influence loan demand, funding costs, and interest income, affecting earnings and financial condition.
• Operational Risks: Cybersecurity incidents or failures in risk management could lead to regulatory actions and financial losses.

• Carter Bankshares, Inc. operates as a bank holding company with a subsidiary bank providing financial services.
• The company follows prudent underwriting standards including loan-to-value limits and loan administration procedures.
• It manages concentrations in commercial real estate lending with risk management practices including board oversight, portfolio management, and stress testing as per federal regulatory guidance.
• The company is well capitalized under applicable regulatory capital standards as of December 31, 2025.
• It is subject to federal and state laws on customer information privacy, anti-money laundering, and economic sanctions compliance.
• The company monitors legislative and regulatory developments related to cybersecurity and maintains cybersecurity programs under federal banking agency guidelines.
• It is exempt from certain stress testing requirements but conducts risk management analyses related to interest rate risk, credit quality, and liquidity.
• The company is not materially affected by the Volcker Rule due to its asset size and trading activities.
• It files quarterly Call Reports providing detailed financial and operational information to federal banking agencies.
• Monetary policies of the Federal Reserve influence its earnings and financial condition through impacts on funding costs, loan demand, and interest income.
• The company depends on dividends from its bank subsidiary for substantially all of its revenue.
• As of September 30, 2026, the company had cash and cash equivalents of $101.7 million and net income of $7.76 million for the quarter, with basic and diluted EPS of $0.35 per share.
• The company declared a quarterly cash dividend of $0.10 per share as of October 29, 2026.
• The company announced third quarter 2026 financial results on October 29, 2026, reporting earnings and revenues below some expectations.
• The company furnished a third quarter 2026 investor presentation on November 3, 2026.