What Carter Bankshares, Inc. told the SEC could break it.

As a financial holding company, Carter Bankshares depends on dividends from Carter Bank & Trust to fund its obligations, and the Bank's ability to pay dividends is limited by its earnings, capital, liquidity and regulatory approval/non-objection (regulators may restrict payments deemed unsafe/unsound); its common stock is also subordinate to existing/future indebtedness and structurally subordinated to the Bank's creditors, creating funding and capital-structure risk.

“Any inability to receive dividends from the Bank could materially adversely affect our business, financial condition, results of operations, and shareholder returns .”

Carter Bankshares is exposed to commercial-real-estate credit deterioration — it closely monitors CRE credits for valuation and market changes, and a $9.5 million CRE relationship secured by North Carolina warehouse facilities was placed on nonaccrual in Q1 2025 (the properties went into receivership and were under contract for sale at year-end) — so adverse CRE valuations or borrower defaults could drive charge-offs and increase its provision for credit losses.

“The $9.5 million CRE relationship placed on nonaccrual status during the first quarter of 2025 is secured by warehouse facilities located in North Carolina. The properties are currently in receivership and are being marketed for sale, with these properties under contract as of December 31, 2025.”

Carter Bankshares is a $4.9 billion Virginia bank holding company headquartered in Martinsville, VA whose Carter Bank & Trust operates across Virginia and North Carolina (it acquired branches/deposits in Mooresville and Winston-Salem, NC in 2025); its loan book is concentrated in these markets and in commercial real estate, so a regional or CRE-market downturn would disproportionately affect credit quality.

“Carter Bankshares, Inc. (the “Company”) is a bank holding company headquartered in Martinsville, Virginia with assets of $4.9 billion at December 31, 2025.”

Carter Bankshares operates in a frequently changing bank-regulatory framework — Federal Reserve/FDIC supervision, CFPB rules targeting 'junk fees' and overdraft revenue, BSA/anti-money-laundering compliance, OFAC sanctions screening, and regulatory limits on dividends and on merger/acquisition approvals — and cannot predict the impact of future legislative or supervisory changes; non-compliance could bring penalties, enforcement actions or blocked transactions.

“Failure to comply with consumer protection requirements may also result in delays in obtaining or failure to obtain any required bank regulatory approval for proposed merger or acquisition transactions.”