Carter Bankshares : Investor Presentation Third Quarter 2024

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.