CARE
INVESTOR
PRESENTATION
THIRD QUARTER 2024
F O R W A R D - L O O K I N G S T A T E M E N T
This information contains or incorporates certain forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements include statements that relate to our financial condition, market conditions, results of operations, plans, objectives, outlook for earnings, revenues, expenses, capital and liquidity levels and ratios, asset levels, asset quality and nonaccrual and nonperforming loans. Forward looking statements are typically identified by words or phrases such as "will likely result," "expect," "anticipate," "estimate," "forecast," "project," "intend," " believe," "assume," "strategy," "trend," "plan," "outlook," "outcome," "continue," "remain," "potential," "opportunity," "comfortable," "current," "position," "maintain," "sustain," "seek," "achieve" and variations of such words and similar expressions, or future or conditional verbs such as will, would, should, could or may. These statements are not guarantees of future results or performance and involve certain risks, uncertainties and assumption that are difficult to predict and often are beyond the Company's control. Although we believe the assumptions upon which these forward-looking statements are based are reasonable, any of these assumptions could prove to be inaccurate and the forward-looking statements based on these assumptions could be incorrect. The matters discussed in these forward- looking statements are subject to various risks, uncertainties and other factors that could cause actual results and trends to differ materially from those made, projected, or implied in or by the forward- looking statements including, but not limited to the effects of: market interest rates and the impacts of market interest rates on economic conditions, customer behavior, and the Company's loan and securities portfolios; inflation, market and monetary fluctuations; changes in trade, monetary and fiscal policies and laws of the U.S. government, including policies of the Federal Reserve, FDIC and Treasury Department; changes in accounting policies, practices, or guidance, for example, our adoption of Current Expected Credit Losses ("CECL") methodology, including potential volatility in the Company's operating results due to application of the CECL methodology; cyber-security threats, attacks or events; rapid technological developments and changes; our ability to resolve our nonperforming assets and our ability to secure collateral on loans that have entered nonaccrual status due to loan maturities and failure to pay in full; changes in the Company's liquidity and capital positions; concentrations of loans secured by real estate, particularly commercial real estate, and the potential impacts of changes in market conditions on the value of real estate collateral; increased delinquency and foreclosure rates on commercial real estate loans; an insufficient allowance for credit losses; the potential adverse effects of unusual and infrequently occurring events, such as weather-related disasters, terrorist acts, war and other military conflicts (such as the war between Israel and Hamas and the ongoing war between Russia and Ukraine) or public health events (such as the COVID-19 pandemic), and of any governmental and societal responses thereto; these potential adverse effects may include, without limitation, adverse effects on the ability of the Company's borrowers to satisfy their obligations to the Company, on the value of collateral securing loans, on the demand for the Company's loans or its other products and services, on incidents of cyberattack and fraud, on the Company's liquidity or capital positions, on risks posed by reliance on third-party service providers, on other aspects of the Company's business operations and on financial markets and economic growth; a change in spreads on interest-earning assets and interest- bearing liabilities; regulatory supervision and oversight, including our relationship with regulators and any actions that may be initiated by our regulators; legislation affecting the financial services industry as a whole, and the Company and the Bank, in particular; the outcome of pending and future litigation and/or governmental proceedings; increasing price and product/service competition; the ability to continue to introduce competitive new products and services on a timely, cost-effective basis; managing our internal growth and acquisitions; the possibility that the anticipated benefits from acquisitions cannot be fully realized in a timely manner or at all, or that integrating acquired operations will be more difficult, disruptive or more costly than anticipated; the soundness of other financial institutions and any indirect exposure related to recent large bank failures and their impact on the broader market through other customers, suppliers and partners or that the conditions which resulted in the liquidity concerns with those failed banks may also adversely impact, directly or indirectly, other financial institutions and market participants with which the Company has commercial or deposit relationships with; material increases in costs and expenses; reliance on significant customer relationships; general economic or business conditions, including unemployment levels, supply chain disruptions and slowdowns in economic growth; significant weakening of the local economies in which we operate; changes in customer behaviors, including consumer spending, borrowing and saving habits; changes in deposit flows and loan demand; our failure to attract or retain key employees; expansions or consolidations in the Company's branch network, including that the anticipated benefits of the Company's branch network optimization project are not fully realized in a timely manner or at all; deterioration of the housing market and reduced demand for mortgages; and re-emergence of turbulence in significant portions of the global financial and real estate markets that could impact our performance, both directly, by affecting our revenues and the value of our assets and liabilities, and indirectly, by affecting the economy generally and access to capital in the amounts, at the times and on the terms required to support our future businesses. Many of these factors, as well as other factors, are described in our filings with the SEC including in the "Risk Factors" section of the Company's Annual Report on Form 10-K for the year ended December 31, 2023. All risk factors and uncertainties described herein and therein should be considered in evaluating the Company's forward-looking statements. Forward-looking statements are based on beliefs and assumptions using information available at the time the statements are prepared. We caution you not to unduly rely on forward-looking statements because the assumptions, beliefs, expectations and projections about future events are expressed in or implied by a forward-looking statement may, and often do, differ materially from actual results. Any forward-looking statement speaks only as to the date on which it is made, and we undertake no obligation to update, revise or clarify any forward-looking statement to reflect developments occurring after the statement is made.
2
SECTION
TITLE
SLIDES
1
Overview
4-12
2
Financial Highlights
13-24
3
Asset Quality
25-31
4
Deposit Mix
32-34
5
Commercial Loans
35-44
6
Non-GAAP Reconciliation
45-50
3
S E C T I O N 0 1
OVERVIEW
FOCUSED ON
THE FUTURE
A Well-Capitalized Franchise with Momentum
1974
Bank established denovo 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. holding company established in Q4 2020 with the assets of Carter Bank & Trust
As of September 30, 2024
MARTINSVILLE,
VIRGINIA
65 BRANCHES
CORPORATE
CENTERS
03 CORPORATE OFFICES IN VIRGINIA
$4.6B
ASSETS
$3.6B
LOANS
$4.1B
DEPOSITS
CORPORATE
HIGHLIGHTS
5
L E A D E R S H I P T E A M
Litz Van Dyke
Bradford Langs
Chief Executive Officer
President
38 years in Industry
Chief Strategy Officer
8 years at the Bank
37 years in Industry
7+ years at the Bank
Wendy Bell
Senior Executive
Vice President
Chief Financial Officer
39 years in Industry
7+ years at the Bank
Loran Adams
EVP Director of Regulatory Risk Management
40 years in Industry
8 years at the Bank
Phyllis
Karavatakis
SEVP Special Projects
Executive
46 years in Industry
46 years at the Bank
Tami Buttrey
EVP Chief Retail
Banking Officer
41 years in Industry
5+ years at the Bank
Richard Owen
EVP Mortgage Banking
32 years in Industry
6+ years at the Bank
Paul Carney
Jane Ann Davis
Tony Kallsen
EVP Chief Human
EVP Chief Administration
SEVP Chief Credit
Resources Officer
Officer
Officer
13 years in Industry
40 years in Industry
33 years in Industry
5+ years at the Bank
40 years at the Bank
6+ years at the Bank
Chrystal
Matt Speare
Rich Spiker
Parnell
SEVP Chief Operations
SEVP Chief Lending
EVP Chief Marketing &
Officer
Officer
22 years in Industry
35 years in Industry
Communications
7+ years at the Bank
6+ years at the Bank
Officer
17 years in Industry
2+ years at the Bank
6
R E G I O N A L F O O T P R I N T
Branches in
Metropolitan
Statistical
Areas
September 30, 2024
VIRGINIA
TOTAL
BRANCHES
53
Washington DC
Roanoke
Lynchburg
Charlottesville
Blacksburg-
Christiansburg
Non MSA
TOTAL
DEPOSITS
$3.6
BILLION
NORTH
CAROLINA
TOTAL
BRANCHES
12
Charlotte
Greensboro
Raleigh Durham
Fayetteville
Non MSA
TOTAL
DEPOSITS
$0.5
BILLION
V I R G I N I A
N O R T H C A R O L I N A
DOING MORE WITH LESS:
YEAR END 2018 » 2019 » 2020 » 2021 » 2022 » 2023 » 2024
BRANCHES 105 101 92 69 66 65 65
7
R E W A R D I N G R E L A T I O N S H I P S
Communities
Customers
Associates
Regulators
Rewarding
Relationships
CMO 20%
Investors
SBA
8%
MBS 13%
Nurturing Relationships and Rewarding Customers, Associates, and Shareholders
8
C O R P O R A T E & S O C I A L R E S P O N S I B I L I T Y
VOLUNTEER COMMUNITY
SERVICE HOURS
The Facilities team engaged a local
To support a multi-year downtown
The Bank partnered with
small business' herd of goats to
revitalization project, Carter Bank
the Montgomery County
transform a wooded area at the
donated two acres of land to the
Chamber of Commerce to
Bank's headquarters that had
Town of Boones Mill, VA for the
award complimentary
become overgrown. This economical
development of the Town's first
chamber memberships to
and environmentally friendly move
community park. The overall design
four minority-owned
also had an 'agro-tainment' factor
*
businesses. The investment
of the park is to place heavy
enjoyed by our Associates.
emphasis on accessibility and
is part of a continued effort
environmental sustainability while
to provide opportunity to
using pervious parking materials
underserved communities.
and native plant landscaping.
Beginning January 1, 2024 through September 30, 2024.
CHARITABLE DONATIONS &
SPONSORSHIPS TO NONPROFITS
CLASSES FACILITATED
FOR 1,130 STUDENTS
9
I N V E S T M E N T H I G H L I G H T S
• 207.8% total available liquidity/
Strong
Conservative
uninsured deposits
Financial
Credit
Performance
Culture
Attractive Executing
Markets & Strategic
Customers Objectives
As of September 30, 2024
SBA
8%
ABS 10%
10
Disclaimer
Carter Bankshares Inc. published this content on November 05, 2024, and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on November 05, 2024 at 22:31:18.037.