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Exhibit 99.1 FOR IMMEDIATE RELEASE - April 29 , 2021 Carter Bankshares , Inc. Announces First Quarter 2021 Financial Results Martinsville , VA , April 29 , 2021 - Carter Bankshares , Inc. ( the " Company " ) ( NASDAQ : CARE ) today announced net income of $ 9.4 million , or $ 0.36 diluted earnings per share , for the first quarter of 2021 compared to net income of $ 2.9 million , or $ 0.11 diluted earnings per share , in the fourth quarter of 2020 and net income of $ 4.4 million , or $ 0.17 diluted earnings per share , for the first quarter of 2020. Pre - tax pre- provision earnings¹ were $ 11.9 million , $ 7.9 million and $ 9.5 million for the quarters ended March 31 , 2021 , December 31 , 2020 and March 31 , 2020 , respectively . First Quarter 2021 Financial Highlights • Net interest income increased $ 0.4 million , or 1.4 % , to $ 26.5 million as compared to the fourth quarter of 2020 primarily due to an 11 basis point decrease in funding costs ; • Net interest margin , on a fully taxable equivalent basis , increased 7 basis points to 2.78 % compared to the fourth quarter of 2020 and decreased 23 basis points compared to the first quarter of 2020 ; • • • The Company adopted the Current Expected Credit Loss ( " CECL " ) effective January 1 , 2021 , resulting in a ( " Day 1 " ) adjustment to the allowance for credit losses ( " ACL " ) of $ 64.5 million , which includes $ 61.6 million to the ACL and $ 2.9 million related to the loss- of - life reserve on unfunded commitments . The impact to retained earnings at transition date was $ 50.7 million ; Total deposits increased $ 6.9 million to $ 3.7 billion as of March 31 , 2021 as compared to the fourth quarter of 2020 and $ 218.6 million , or 6.3 % , as compared to March 31 , 2020. Total deposits at March 31 , 2021 include $ 81.6 million of deposits held - for- assumption in connection with the Company's agreement to sell four of its bank branches . Noninterest - bearing and interest- bearing demand deposits , money market accounts and savings , increased $ 102.3 million , or 5.2 % , as compared to the fourth quarter of 2020 and increased $ 502.2 million , or 31.7 % , compared to March 31 , 2020. These increases were offset by the intentional decline in higher cost certificates of deposits of $ 92.3 million and $ 365.2 million as compared to December 31 , 2020 and March 31 , 2020 , respectively ; On January 6 , 2021 , the Company announced the closing of 24 retail branch offices through closure or sale . On April 16 , 2021 , 19 of the branch closures occurred and one additional branch is expected to close on June 4 , 2021. The sale of one branch to F & M Bank closed on April 23 , 2021 and the sale of three branches to Pendleton Community Bank is expected to close on May 21 , 2021. These closures and transactions are part of our branch network optimization project aligned with our strategic goals to enhance franchise value and improve operating efficiency . At March 31 , 2021 , in connection with the Company's agreement to sell four of the bank branches are $ 9.4 million of loans and $ 81.6 million of deposits detailed in the Financial Condition section below ; • On June 4 , 2021 , the Company will open a new retail branch office in Greensboro , NC ; • The provision for credit losses totaled $ 1.6 million for the quarter ended March 31 , 2021 , which includes a release of $ 0.3 million for the life - of - loss reserve for unfunded commitments and was calculated under the CECL accounting standard , as compared to $ 4.8 million for the quarter ended December 31 , 2020 . " As the impacts of COVID - 19 continued to linger during the first quarter of 2021 , we continue to be very proud of our teammates and how they have adapted and persevered to successfully meet the needs of our business and consumer banking customers . It is because of the hard work and dedication of these teammates that we view the