Carter Bankshares : First Quarter 2026 Presentation

Published: 2026-05-04 10:47:07 ET CARE

Published on 05/04/2026 at 10:47 am EDT

Investor Presentation

First Quarter 2026 Nasdaq: CARE

Table of Contents

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

SECTION 01

Overview

Company History

Executed the successful resolution of the Company's largest legacy nonperforming credit relationship on March 26, 2026

Further enhanced capital and liquidity levels

Reinstated Quarterly Cash Dividend on April 22, 2026

66.7% of Loan Production funded at a weighted average rate of 6.42% YTD 2026, with Construction loans of approximately $450M funding over the next 12-18 months.

Diversified and Granular Deposit base, approximately 78.2% Retail Customers

Corporate Highlights

$4.8B

Assets

$3.7B

Loans

$4.2B

Deposits

Stats

Martinsville, Virginia

Branches

Corporate Centers

Footprint

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

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

As of March 31, 2026

50 Total Branches in Virginia Total VA Deposits $3.7 billion

13 Total Branches in North Carolina Total NC Deposits $0.6 billion

VIRGINIA

Blacksburg

Roanoke

Lynchburg

Fredericksburg

Charlottesville

1 Loan Production Office in South Carolina

Martinsville

Map Key

N. CAROLINA

Winston-Salem

Greensboro

Branches

Mortgage Loan Offices

S. CAROLINA

Greenville

Charlotte

Raleigh

Leadership Team

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 41 years in Industry

41 years at the Bank

Tony Kallsen

Senior Executive Vice President

Chief Credit Risk Officer 35 years in Industry

8 years at the Bank

Joyce Parker

Executive Assistant 39 years in Industry 35 years at the Bank

Litz Van Dyke

Chief Executive Officer 40 years in Industry

9 years at the Bank

Bradford Langs

President

Chief Strategy Officer 39 years in Industry

8 years at the Bank

Wendy Bell

Senior Executive Vice President Chief Financial Officer

41 years in Industry 8 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 23 years in Industry

8 years at the Bank

Rich Spiker

Senior Executive Vice President

Chief Lending Officer 36 years in Industry 7 years at the Bank

Charlie Sword

Senior Vice President Controller

19 years in Industry 4 years at the Bank

Nurturing relationships

and rewarding customers, associates, and shareholders.

Rewarding Relationships

Customers

Regulators

Community

Associates

Investors

As of Month XX,

XXXX

As of March 31, 2026

757

Volunteer Community Service Hours

Nonprofits Supported by Associates Serving on Boards & Committees

$179,371

Charitable Donations & Sponsorships to Nonprofits

Financial Education Classes Facilitated for 725 Students

Corporate & Social Responsibility

Associates in Northern Virginia participated in the "14th Annual Canstruction" event and were the winners of the 'Best Use of Labels' category for the Celebrating America's 250th Birthday design.

The charity-focused competition benefits the Fredericksburg Regional Food Bank through the donation of canned food. The eleven competing teams donated nearly 10,000 meals for neighbors facing hunger across the Central Rappahannock River Region.

The Charlotte team showed up through service to support Nourish Up, the largest network of food pantries in North Carolina. The Associates spent their time packing food boxes that were distributed to pantries throughout Mecklenburg County that afternoon. Their volunteerism ensured that community members had a stocked local pantry when doors opened the next day.

For the sixth consecutive year, the Bank participated in the Virginia Reads One Book program, through the Virginia Bankers Association. In 2026, the Bank expanded its involvement by sponsoring four elementary schools in our Danville, Martinsville, Roanoke, & Wytheville markets. The program promotes literacy and financial education by having the school community read the same book over a 3-week period. Associates also led financial education classes at each school.

As of March 31, 2026

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

Conservative Credit Culture

Strong Credit Position

0.64% NPLs to Total Portfolio Loans

0.73% NPAs to Total Portfolio Loans plus OREO

219.03% Allowance for Credit Losses to NPLs

0.08% Past Due Loans to Total Portfolio Loans

(1.55)% Net (Recoveries)/Charge-offs to 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 March 31, 2026

Strategic Initiatives

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 exceptional service and build long-lasting relationships with customers. We will continue to build upon this differentiation with exceptional experiences, strong relationships, and community impact by investing in ways to improve the customer experience and gain operational efficiencies.

Invest

Enhance

Expand

We will invest in human capital strategies to enhance the associate experience. We will continue to drive efficiency and process improvement across all levels of the organization, leveraging technology and automation. We will make significant investments in the new brand strategy working on updating and enhancing the image and reputation of the Bank.

We will focus on initiatives around enhancing technology, operations, customer experience, C&I, CRA, channel delivery, and product development. From a risk management perspective, we will strengthen change management systems and leverage the Board's ERM Committee.

We will continue strategies to deepen existing relationships and acquire new relationships in current markets. We will focus on increasing market share in target growth markets. We will focus on expanding through organic growth and opportunistic acquisition.

As of Month XX,

XXXX

As of March 31, 2026

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 Specific ACL Reserve

18,035,471

Gain on Sale, Recovery and Reserve Release

$ 98,035,471

Net Income after Tax

$ 77,448,022

Diluted Earnings Per Share

$ 3.50

Tangible/Book Value

$ 3.49

Safety & Soundness

13.52%

Common Equity Tier 1 Ratio (CET1)

14.78%

Total Risk-based Capital Ratio

11.10%

Leverage Ratio

$22.78

Book Value

Capital

0.08%

Delinquency/Portfolio Loans

0.64%

NPL/Portfolio Loans

1.41%

ACL/Portfolio Loans

(1.55)%

Net Recovery/Portfolio Loans (YTD)

Asset Quality

7.13%

ROA (YTD)1

80.05%

ROE (YTD)2

3.08%

NIM (FTE) (YTD)3

72.66%

Adjusted Efficiency Ratio (YTD)3

Earnings

$1.6B

Total Liquidity Sources

12.49%

Highly Liquid Assets/Total Assets

82.47%

Highly Liquid Assets/Uninsured Deposits

214.52%

Total Available Liquidity/Uninsured Deposits

Liquidity

1 ROA excluding the Loan Sale Transaction = 0.72%3

2 ROE excluding the Loan Sale Transaction = 8.06%3

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

As of March 31, 2026

SECTION 02

Financial

Balance Sheet & Income Statement

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)

(80)

(138)

(114)

(104)

Noninterest Income

70,974

5,225

65,749

6,901

64,073

Noninterest Expense

31,012

31,004

28,042

2,970

Income Tax Expense

24,274

2,603

21,671

2,183

22,091

Net Income

$ 85,757

$ 8,480

$ 77,277

$ 8,953

$ 76,804

Balance Sheet Condition

Assets

$ 4,799,270

$ 4,851,922

$ (52,652)

$ 4,700,287

$ 98,983

Gross Loans

3,728,802

3,879,899

(151,097)

3,687,495

41,307

Allowance for Credit Losses

(52,503)

(71,491)

18,988

(73,518)

21,015

Securities

662,127

691,612

(29,485)

745,390

(83,263)

Deposits

4,235,250

4,210,889

24,361

4,200,927

34,323

Borrowings

178,500

(178,500)

55,000

(55,000)

Shareholders' Equity

$ 504,902

$ 419,697

$ 85,205

$ 401,766

$ 103,136

$1.3M / $5.8M

Net Interest Income up Q/Q & Y/Y

$(33.9)M

Recovery for Credit Losses 1Q26

$65.0M

Gain on the Transaction 1Q26

$8.6M

Adjusted Net Income1 1Q26

$(151.1)M / $41.3M

Loan Growth down Q/Q & up Y/Y

$58.4M or 6.1%

Loan Growth Q/Q Excluding Loan Sale1

$24.4M / $34.3M

Deposits up Q/Q & Y/Y

$(178.5)M / $(55.0)M

Borrowings down Q/Q & Y/Y

$85.2M / $103.1M

Shareholders' Equity up Q/Q & Y/Y

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

As of March 31, 2026

Shareholder Ratios 1Q 2026 4Q 2025 Q/Q Change 1Q 2025 Y/Y Change

$3.50 / $3.49

Diluted Earnings Per Share up Q/Q & Y/Y

$0.40

Adj. Diluted EPS1 Q/Q

7.13% / 0.70% / 0.78%

ROA 1Q26, 4Q25 & 1Q25

0.72%

Adj. ROA1 1Q26 Excluding Loan Sale

80.05% / 8.12% / 9.27%

ROE 1Q26, 4Q25 & 1Q25

8.05%

Adj. ROE1 1Q26 Excluding Loan Sale

0.15% / 0.38%

NIM (FTE) up Q/Q & Y/Y

(5.65)% / (6.45)%

NPL / Portfolio Loans down Q/Q & Y/Y

(0.43)% / (0.58)%

ACL / Portfolio Loans down Q/Q & Y/Y

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 (QTD)

80.05%

8.12%

71.93%

9.27%

70.78%

Net Interest Margin (FTE)(QTD)1

3.08%

2.93%

0.15%

2.70%

0.38%

Adjusted Efficiency Ratio (QTD)1

72.66%

76.85%

(4.19)%

78.67%

(6.01)%

Financial / Shareholder Ratios

Asset Quality Ratios

NPL / Portfolio Loans

0.64%

6.29%

(5.65)%

7.09%

(6.45)%

NPA / Total Assets plus OREO

0.73%

6.29%

(5.56)%

7.10%

(6.37)%

ACL / Portfolio Loans

1.41%

1.84%

(0.43)%

1.99%

(0.58)%

Net Chg-offs / Portfolio Loans (QTD annualized)

(1.55)%

0.01%

(1.56)%

0.01%

(1.56)%

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

As of March 31, 2026

Financial Performance Trends

Net Income, in thousands

Adjusted Efficiency Ratio 2

60.67%

80.95%

$23,384

$24,523

$31 ,362

$34,995

$50,11 8

76.05%

72.54% 72.66%

2022 2023 2024 2025 1 Q2026 1, 2

2022 2023 2024 2025 1 Q2026

ROA

TCE

7.1 3%

1 .21 %

0.53%

0.54%

0.66%

0.72%

1 0.52%

8.25%

8.65%

7.82%

7.78%

2022 2023 2024 2025 1 Q2026 3

2022 2023 2024 2025 1 Q2026

1 Adjusted Net Income (non-GAAP)2 and YTD annualized for the three months ended March 31, 2026

2 Non-GAAP Financial Measure - see Non-GAAP reconciliation

3 ROA excluding the Loan Sale Transaction = 0.72%2

As of March 31, 2026

Capital Management

Carter Bankshares

Regulatory Well Capitalized

Actual

Excess ($) (In Thousands)

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

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 Undercapitalized Category

Tangible equity to total assets ≤ 2%

Capital Conservation Buffer

>= 2.5% composed of CET 1

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

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. The Company did not repurchase any shares under this plan during the three months ended March 31, 2026.

Actual ($) 03/31/26

Cumulative AOCL Impact 03/31/26

REGULATORY CAPITAL

13.52%

14.78%

11.10%

TIER 1

TOTAL

LEVERAGE

Book Value per Common Share $ 22.78 $ (1.94)

Adjusted Book Value1

24.72

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

As of March 31, 2026

Liquidity

$ in thousands March 31, 2026 December 31, 2025 Change

$1.6B

TOTAL AVAILABLE LIQUIDITY

Cash and Due From Banks, including

$ 228,318

$ 105,163

$ 123,155

FHLB Borrowing Availability1

816,643

609,392

207,251

Unsecured Lines of Credit

30,000

Collateralized Lines of Credit

25,000

45,000

(20,000)

Unpledged Investment Securities

407,764

402,220

5,544

Excess Pledged Securities

51,500

33,443

18,057

Total Liquidity Sources

$ 1,559,225

$ 1,225,218

$ 334,007

Continue to maintain a strong liquidity position:

Ongoing FHLB collateral pledging1

Maintain three unsecured lines of credit

Maintain one secured line of credit

Majority of bond portfolio is unpledged

Available sources to leverage unpledged bonds

Federal Reserve Discount Window

Federal Home Loan Bank of Atlanta

Secured Federal Funds Lines

Strong coverage of uninsured deposits:

Total available liquidity / uninsured deposits 214.5%

Interest-bearing Deposits

1For the periods presented above, the Company maintained a secured FHLB Borrowing Facility with FHLB of Atlanta equal to 30% of the Bank's assets approximating $1.4 billion, with available borrowing capacity subject to the amount of eligible collateral pledged at any given time.

As of March 31, 2026

Loan Composition

For the Period Ending

$ in thousands

03/31/2026

12/31/2025

03/31/2025

Variance

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

136,707

64,191

24,013

96,529

Commercial and Industrial

245,455

231,921

234,024

13,534

11,431

Residential Mortgages

815,263

822,141

801,253

(6,878)

14,010

Other Consumer

26,264

28,416

28,804

(2,152)

(2,540)

Construction

513,551

465,613

459,285

47,938

54,266

Other1

217,155

248,266

(217,155)

(248,266)

Total Portfolio Loans2

$ 3,728,461

$ 3,879,560

$ 3,687,495

$ (151,099)

$ 40,966

The successful resolution of our largest nonperforming credit relationship during the first quarter of 2026 reduced total portfolio loans by $151.1 million and contributed to a more favorable loan composition, including lower levels of nonperforming and higher risk loans.

Total portfolio loans increased $41.0M, or 1.1% YoY due to loan growth, primarily in the commercial real estate, construction, residential mortgage and commercial and Industrial segments.

66.7% of Loan Production funded at a weighted average rate of 6.42% YTD 2026, with Construction loans of approximately $450M funding over the next 12-18 months.

Total Portfolio Loan Growth 3

Multifamily CRE

11%

Owner Occupied CRE 4%

C&I 6%

$3,506

$3,625

$3,880

$3,728

$3,149

11.98%

11.34%

3.39%

7.03%

6.10%

YE 2022 YE 2023 YE 2024 YE 2025 Q1 2026

Non-Owner Occupied CRE

42%

Construction 14%

Res Mtgs 22%

Other Consumer 1%

1 Other loans include unique risk attributes considered inconsistent with our current underwriting standards.

2 Total Portfolio Loans is net of loans held-for-sale and Loan Portfolio Segments are sourced from Fed. Call Codes (RC-C).

3 $ in millions

4 Loan growth for the first quarter of 2026 excludes the sale of the large NPL, See non-GAAP reconciliation.

As of March 31, 2026

Loan Portfolio Repricing & Index 1Q2026

Loan Portfolio by Rate Type Loan Portfolio by Rate Index Type

Floating 1

$770 3

21 %

$3.7B

Fixed

$1 ,534 3

41 %

Variable2

$1 ,4243

38%

Prime

$1 683

Treasury

$1 ,41 83

38%

SOFR

$608 3

1 6%

$3.7B

Fixed

$1 ,5343

41 %

1Floating Rate Loans are defined as loans with contractual interest rate terms that allow the loan to reprice at least once each month.

2Variable Rate Loans are defined as loans with contractual interest rate terms that allow the loan to reprice at least once during the life of the loan agreement, but not more frequently than once per quarter.

3 $ in millions

As of March 31, 2026

Top Ten (10) Relationships (Total Commitment)

For the Periods Ending

$ in thousands

3/31/2026

12/31/2025

Change

% of Gross Loans

% of RBC

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

38,656

9,309

1.29%

8.04%

4. Warehouse

47,534

47,969

(435)

1.27%

7.97%

5. Warehouse

46,721

46,687

1.25%

7.84%

6. Long-Term Care

46,199

1.24%

7.75%

7. Health Care

44,779

1.20%

7.51%

8. Land & Self-Storage

44,744

47,392

(2,648)

1.20%

7.50%

9. Multifamily

44,669

44,842

(173)

1.20%

7.49%

10. Retail

43,068

47,619

(4,551)

1.16%

7.22%

Top Ten (10) Relationships1

$ 478,707

$ 477,591

$ 1,116

12.84%

80.28%

Total Gross Loans

$ 3,728,802

$ 3,879,899

$ (151,097)

% of Total Gross Loans

12.84%

12.31%

0.53%

Concentration (25% of Risk Based Capital ("RBC"))

149,083

128,431

1 The table above reflects the removal of the Company's largest nonperforming loan relationship as a result of the first quarter 2026 Transaction, resulting in a meaningful decline in borrower concentration. Prior to the Transaction the top 10 relationships to total gross loans at December 31, 2025 was 17.00%.

As of March 31, 2026

Bond Portfolio

U.S. Government

Collateralized Mortgage Obligations

161,160

(6,737)

154,423

168,749

(6,929)

161,820

Asset Backed Securities

100,053

(6,017)

94,036

100,643

(5,846)

94,797

Muni

35%

CMO

23%

SBA 4%

ABS 4%

Corporate 9%

CMBS

14%

MBS

10%

Total Debt Securities

$ 716,862 $ (54,735) $ 662,127

$ 745,366 $ (53,754) $

691,612

Agencies

As of March 31, 2026

Agency Securities $ 18,151 $ (404) $ 17,747 $ 19,796 $ (421) $ 19,375

The bond portfolio is 100% available-for-sale.

$ in thousands

March 31, 2026

Net Unrealized

Amortized (Losses)/

Cost Gains Fair Value

Amortized Cost

December 31, 2025

Net Unrealized

(Losses)/

Gains Fair Value

Our portfolio consists of 43.5% of securities issued by United States government sponsored entities and carry an implicit government guarantee.

States and political subdivisions comprise 35.2% of the portfolio and are largely general obligation or essential purpose revenue bonds, which have performed very well historically over all business cycles, and are rated AA and AAA.

Residential Mortgage-Backed Securities

Commercial Mortgage-Backed Securities

67,764

22,557

(7,417)

(165)

60,347

22,392

83,918

25,438

(7,145)

(316)

76,773

25,122

rate securities.

Other Commercial

3.08%

Mortgage-Backed

Securities 24,837 (1,134) 23,703 25,297 (1,043) 24,254

At March 31, 2026, the Company held 65.8% fixed rate and 34.2% floating

Securities comprise 13.8% of total assets at March 31, 2026.

Shorter maturity profile with an average life of 4.76 years; less interest rate risk with an effective duration of 3.65; and higher than peer book yield of

States and Political Subdivisions

262,090

(28,900)

233,190

262,275

(28,051)

234,224

Corporate Notes

60,250

(3,961)

56,289

59,250

(4,003)

55,247

Deposit Composition

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

528,381

(39,602)

(14,019)

Savings

326,929

326,182

353,394

747

(26,465)

Certificates of Deposits

1,884,628

1,902,099

1,893,379

(17,471)

(8,751)

Total deposits increased $34.3M YoY

Diversified and granular deposit base, approximately 79.1% Retail Customers

Approximately 82.8% of Deposits, including Collateralized Muni deposits are FDIC Insured

Partnership with IntraFi for available coverage over $250K FDIC insured limit

Noninterest-bearing Deposits

YE 2025

Interest-bearing Deposits

$4,153

$4,211

$4,235

DDA Int. Bearing

21%

$3,633

$3,722

MMA

12%

CDs

44%

Savings

YE 2022

YE 2023

YE 2024

Total Deposits Composition 1

DDA Int. Free

15%

Q1 2026

$638

$620

$634

$685

$706

$2,927

$3,037

$3,597

$3,591

$3,519

Total Deposits $ 4,235,250 $ 4,210,889 $ 4,200,927 $ 24,361 $ 34,323

1 Period end balances at, $ in millions

As of March 31, 2026

Deposits

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 ($1.9B) is relatively short with 78.1% of the portfolio scheduled to mature within 12 months and 94.6% of the portfolio scheduled to mature within 24 months, allowing for opportunities to lower deposit costs quickly when short term rates begin to ease

Multiple strategies are in place to grow all non maturity deposit accounts with a focus on lower cost of funds

Established product road map and working to expand deposit offerings for retail and commercial customers

As of Month XX,

XXXX

Deposit Mix - 12/31/2017

Deposit Mix - 03/31/2026

Deposit Mix - Target

DDA - Int. Free

14%

DDA - Int.

Bearing

DDA - Int. Free

15%

DDA - Int. Bearing

21%

DDA - Int. Free

25%

DDA - Int.

Bearing

20%

MMA 3%

MMA 15%

CDs

56%

MMA

12%

Savings

20%

CDs

44%

Savings

CDs

30%

Savings

10%

As of March 31, 2026

Past Present Future

SECTION 03

Asset Quality

$45

$40

$35

$30

$25

$20

$1 5

NPLs and "Other" NPL / Total Portfolio Loans

97.54% 97.1 6% 87.72%

$30

$24

1 00%

80%

60%

40%

$3,1 49

3,142

Nonperforming Loans / Total Portfolio Loans

$3,625

$3,880 $3,752

259

7.15%

3,366

$3,506

8.83%

6.29%

3,196

3,636

3,728

$1 0

0.21%

$7 $8

4 3

$7 24

22 20%

244

310

1 4 1

0.64%

$0 2 1 - %

YE 2022 YE 2023 YE 2024 YE 2025 1 Q 2026

YE 2022 YE 2023 YE 2024 YE 2025 Q1 2026

$45

$40

$35

$30

$25

$20

$1 5

0.15%

0.13%

$1 0 $7 $8

Percent of NPLs to Nonperforming Assets

96.8% 96.9%

87.7%

$30

$8 $7

$24

1 00%

80%

60%

40%

20%

Delinquency / Portfolio Loans

$3,506

$3,625

$3,880

$3,728

$3,149

0.17%

0.08%

$5 $2 $1 $- $3

$- - %

YE 2022 YE 2023 YE 2024 YE 2025 1 Q 2026

YE 2022 YE 2023 YE 2024 YE 2025 Q1 2026

$ in millions

As of March 31, 2026

Delinquency Trends

0.08%

0.01 %

0.1 6%

$4,837

0.07%

- %

0.1 3%

0.02%

- %

0.06%

0.08%

$3,1 66

$3,236

$4,828

0.1 3%

0.1 5%

0.1 7%

$6,032

0.20%

Past Due Loans / Total Portfolio Loans

$6,000

0.1 5%

$4,000

0.1 0%

$2,000

0.05%

- % $-

YE 2022 YE 2023 YE 2024 YE 2025 Q1 2026

$'s in thousands

As of March 31, 2026

Delinquency Trends

$3,1 66

0.1 %

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 Industrial

245,345

245,455

Residential Mortgages

810,824

2,673

1,766

815,263

Other Consumer

25,935

301

26,264

Construction

513,074

437

513,551

Total

$ 3,701,324

$ 3,166

$ 23,971

$ 3,728,461

$23,971 0.6%

COMMENTARY:

On March 26, 2026, the Bank completed the sale (the "Transaction") of all loans, subsequently reduced to judgments related to various entities in which James C. Justice, II has an interest (such loans, subsequently reduced to judgments, the "Loans"). The Transaction was completed as an absolute, "as-is, where-is" sale to an unaffiliated third party.

$3,701 ,324

99.3%

As of March 31, 2026

Nonperforming Relationships

Nonaccrual Balance

$ in thousands

3/31/2026

12/31/2025

Change

Comments

1. CRE

$ 14,055

$ 14,321

$ (266)

Office Building

2. CRE

7,552

9,495

(1,943)

Commercial Warehouse Property

3. Construction

402

Residential Mortgage Loan

4. Residential Mortgage

357

Residential Mortgage Loan

5. Residential Mortgage

139

Residential Mortgage Loan

6. Other1

214,020

(214,020)

Other

7. Residential Construction

2,018

(2,018)

Residential Mortgage Loan

8. Commercial & Industrial

915

(915)

Purchase Business Equipment

Subtotal: Top 5 Nonaccrual Loans

$ 22,505

$ 240,769

$ (218,264)

Total Nonaccrual Loans

$ 23,971

$ 243,982

$ (220,011)

Top 5 Nonaccrual Loans / Total Nonaccrual Loans

93.88%

98.68%

(4.80)%

Total Portfolio Loans

$ 3,728,461

$ 3,879,560

$ (151,099)

Total Nonaccrual Loans / Total Portfolio Loans

0.64%

6.29%

(5.65)%

1 Reflects the removal of the Company's largest nonperforming loan relationship as a result of the first quarter 2026 Transaction, resulting in a meaningful decline in nonaccrual loans.

As of March 31, 2026

Loan Portfolio - Risk Ratings

$4,000

Portfolio Credit Quality Trend

$3,880

$31 0

$1 42

$267

$251

12 $3,728 1

$480

Portfolio Credit Quality Trend

$3,500

$3,000

$3,61 7

$3,1 49

$2,992

$3,625

$3,506

$3,351

$3,1 92

$31 4

$274

$263

$1 57

$44

$43

$251 86.7%

$1 2

$267 94.3%

97.5%

$31 0 1

$1 42

$1 5

$3,684

$360

$2,500

$2,000

$240

95.0%

91.1%

92.4%

93.2%

98.8%

$1 ,500

$1 ,000

$1 20

$500

YE 2022 YE 2023 YE 2024 YE 2025 Q1 2026

1 The Company placed $301.9 million of commercial loans in the Other segment of the Company's loan portfolio, relating to the Bank's largest lending relationship during the second quarter of 2023, which was resolved and sold on March 26, 2026.

$ in millions

As of March 31, 2026

Net Charge-offs & Provision Expense

ACL Composition & ACL Coverage Ratio

$ in thousands

$20,000

$1 5,000

$1 0,000

$5,000

$(5,000)

Net (Recoveries) / Charge-offs & Provision Expense

$ in thousands

0.1 5%

0.07%

$5,500

$2,300

$1 6,41 3

0.01 %

$4,506

$2,41 9

$472

$(5,039)

$(3,637)

$(1 4,9293)

$(33,91 7)

(1 .55)%

0.46%

$93,852

$97,052

$75,600

$71 ,491

$52,503

$42,738

$44,895

2.09%

1 .41 %

$51 ,482

$1 ,021

$51 ,534

1 .84%

$1 9,957

$30,705

$93,1 83

$669

2.98%

2.77%

$54,31 41

$(1 0,000)

$(1 5,000)

$(20,000)

$(25,000)

YE 2022 YE 2023 YE 2024 YE 2025 Q1 2026

$(30,000)

$(35,000)

YE 2022 YE 2023 YE 2024 YE 2025 Q1 2026

1 The individually evaluated loans increased $53.6 million during the second quarter of 2023 due to our largest lending relationship, that was previously reserved in general reserves within the Other segment, moved to nonperforming status and is currently individually evaluated.

2 YTD Net charge-offs for YE 2024 consist of a $15.0 million principal charge-off related to the Other segment of the loan portfolio. The full $15.0 million has been recovered during the first quarter of 2026.

3 The change in provision relates to the $15.0 million recovery and the $18.0 million reserve release as a result of the resolution of the Bank's largest nonperforming loan relationship.

As of March 31, 2026

SECTION 04

Deposit Mix

Deposits

$4,500

$4,000

Total Deposit Composition1

$3,633

$3,722

$638

$621

$634

$685

$706

$2,927

$3,037

$3,51 9

$3,597

$3,590

$4,1 53 $4,211 $4,235

Insured/Uninsured Deposits

$3,500

$3,000

$2,500

$3,389.2 80.0%

$726.9 1 7.2%

$2,000

$1 ,500

$11 9.2

2.8%

$1 ,000

$500

YE 2022 YE 2023 YE 2024 YE 2025 Q1 2026

Well-diversified deposit base of 117,003 customers

average commercial deposit account balance is $47.9K

average retail deposit account balance is $16.9K

Deposit mix of 79.1% Consumer / 20.9% Business

At March 31, 2026, the Bank had no deposit relationships greater than, or equal to, 2.0% of total deposits.

Partnership with IntraFi for available coverage over $250K FDIC insured limit.

1 Period end balances, $ in millions

2Collateralized Muni deposits are FDIC insured up to $250,000. All balances in excess of $250,000 are fully collateralized with eligible securities

As of March 31, 2026

Net Interest Income

3.51 %

Net Interest Income & NIM

6.00%

0.50%

1 .73%

1 .99%

2.1 8%

2.41 %

4.01 %

4.60%

5.07%

3.08%

5.01 %

2.83%

4.99%

2.87%

2.58%

5.50%

5.00%

4.50%

4.00%

5.07%

3.50%

4.01 %

$4,024

Avg. Earning Assets & Yield

2.25%

633

630

628

621

2.06%

3,61 0

3,602

2.1 6%

3,605

$4,1 65

3,575

2.30%

3,544

2.44%

$4,243

$4,232

$4,233

$4,203

4.99%

5.01 %

$4,294 $4,459

4.60%

$4,645 $4,748

YE 2022 YE 2023 YE 2024 YE 2025 Q1 2026

Avg. Earning Assets Yield on Earning Assets

$4,500

$4,000

$3,500

$3,000

$2,500

$2,000

$1 ,500

$1 ,000

$500

Total Deposits and Cost of Deposits 1

0.67%

$3,044

Avg. Interest-Bearing Liabilities & Costs

2.49%

2.74%

$3,509 $3,704 $3,781

3.06%

$3,321

2.23%

Q1 2025 Q2 2025 Q3 2025 Q4 2025 Q1 2026

YE 2022 YE 2023 YE 2024 YE 2025 Q1 2026

Avg. Interest-Bearing Liabilities Cost

1 Average balances, $ in millions

2 Cost of Funds incorporates the free funds contribution with the rate on total interest-bearing liabilities to illustrate the impact of noninterest-bearing liabilities on the overall cost of funds.

3 Computed on a fully taxable equivalent basis (FTE) using 21% federal income tax statutory rate for 2022 through 2026.

As of March 31, 2026

SECTION 05

Commercial Loans

CRE Segment Overview

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

As of March 31, 2026

Hospitality Metrics

4.54

RISK RATING

AVERAGE

55.6%

LTV

$108K

DEBT/KEY

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 38.00% of the total hospitality commitment1

No delinquent loans in the hospitality portfolio1

There are 1.0%* loans in the hospitality portfolio that are adversely classified or NPL1

91.75% of hospitality portfolio is funded1

*Relates to the Company's largest lending relationship.

1Commitment Level

As of March 31, 2026

Hospitality Metrics