Carter Bankshares, Inc. (NASDAQ: CARE)

Carter Bankshares, Inc. is a bank holding company headquartered in Martinsville, Virginia that owns Carter Bank & Trust, a state chartered FDIC insured bank operating 64 branches in Virginia and North Carolina. The Company was formed in October 2020 to become the parent of the Bank after a reorganization that merged ten legacy banks into a single institution. In October 2025, the Company elected to become a financial holding company under the Bank Holding Company Act and the Bank became a member of the Federal Reserve System on November 13, 2025. Through its subsidiary, the Company provides a full range of commercial banking, consumer banking, and mortgage and related financial services to customers across its Virginia and North Carolina markets. As of December 31, 2025, the Company reported total assets of $4.9 billion and employed 687 full time associates. The Bank also has a wholly owned subsidiary, CB&T Investment Company, which was chartered effective April 1, 2019 to hold certain investments previously owned by the Bank and to provide additional flexibility to acquire other permissible investments. The Company’s principal office is located at 1300 Kings Mountain Road, Martinsville, Virginia 24112.

The Bank generates the majority of its revenue from interest income on loans and investment securities. Interest on loans includes commercial real estate loans, construction and acquisition loans, commercial and industrial loans, residential mortgages, automobile loans, home improvement loans, education loans, personal loans, credit cards, and other consumer financing. Fee based revenue comes from service charges on deposit accounts, treasury management services, digital banking features, wealth management related offerings, and title insurance. Additional sources of income include gains on the sale of mortgage loans, fees from safe deposit boxes, direct deposit services, debit card interchange revenue, and online and mobile banking fees. The Bank also earns income from overdraft protection fees and from credit monitoring tools provided to customers.

The Bank operates in a highly competitive market that includes other commercial banks, savings associations, credit unions, brokerage firms, fintech companies, and non bank lenders. Competition for deposits and loans is influenced by interest rates offered, branch location and density, product variety, digital capabilities, and institutional reputation. The Bank believes its community banking philosophy, focus on building long term customer relationships, and local decision making give it a competitive advantage over larger national and regional banks. These strengths allow the Bank to attract and retain customers who value personalized service, community involvement, and responsive local lending. The Bank’s emphasis on relationship banking and its deep understanding of regional economic conditions further differentiate it from bigger competitors.

The Bank serves individuals, households, small to medium sized businesses, and larger commercial clients across Virginia and North Carolina. Deposit products are offered to personal and business customers, ranging from noninterest bearing checking accounts to interest bearing savings, money market accounts, and certificate of deposit accounts with various maturities. Lending activities include commercial real estate loans, construction and acquisition loans, commercial and industrial loans, residential mortgages, automobile loans, home improvement loans, education loans, personal loans, credit cards, and other consumer financing products such as overdraft protection and home equity lines of credit. Treasury management, corporate cash management, safe deposit boxes, direct deposit services, debit card offerings, online and mobile banking, and digital wallet access are also provided to business and consumer customers. The Bank’s title insurance services are available to customers involved in real estate transactions.