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Exhibit 99.1 FOR IMMEDIATE RELEASE – July 29 , 2021 - Carter Bankshares , Inc. Announces Second Quarter 2021 Financial Results Martinsville , VA , July 29 , 2021 - Carter Bankshares , Inc. ( the " Company " ) ( NASDAQ : CARE ) today announced net income of $ 5.4 million , or $ 0.21 diluted earnings per share , for the second quarter of 2021 compared to net income of $ 9.4 million , or $ 0.36 diluted earnings per share , in the first quarter of 2021 and net income of $ 4.5 million , or $ 0.17 diluted earnings per share , for the second quarter of 2020. Core pre - tax pre - provision earnings¹ were $ 7.9 million , $ 8.5 million and $ 7.0 million for the quarters ended June 30 , 2021 , March 31 , 2021 and June 30 , 2020 , respectively . For the six months ended June 30 , 2021 , net income was $ 14.8 million , or $ 0.56 diluted earnings per share , compared to net income of $ 8.9 million , or $ 0.34 diluted earnings per share in the six months of 2020. Core pre - tax pre - provision earnings¹ were $ 16.3 million and $ 15.3 million for the six months ended June 30 , 2021 and 2020 , respectively . Second Quarter 2021 Financial Highlights • • • • • • • Nonperforming loans declined $ 22.4 million , or 70.1 % to $ 9.6 million at June 30 , 2021 as compared to December 31 , 2020 and decreased $ 31.0 million , or 76.4 % , from June 30 , 2020. The decline is due to the resolution of our two largest nonperforming credits during the second quarter of 2021. The resolution included charge - offs of $ 6.3 million and $ 1.9 million . These loans had $ 13.1 million specifically reserved at the time of the charge - off . Nonperforming loans as a percentage of total portfolio loans were 0.33 % , 1.09 % and 1.37 % as of June 30 , 2021 , December 31 , 2020 and June 30 , 2020 , respectively ; The provision for credit losses totaled $ 1.0 million for the quarter ended June 30 , 2021 , as compared to $ 1.9 million for the quarter ended March 31 , 2021 ; Net interest income increased $ 0.7 million , or 2.5 % , to $ 27.2 million compared to the first quarter of 2021 primarily due to a seven basis point decrease in funding costs ; Net interest margin , on a fully taxable equivalent basis ( " FTE " ) , increased one basis point to 2.79 % compared to the first quarter of 2021 and decreased four basis points compared to the second quarter of 2020 ; Total deposits decreased $ 32.2 million to $ 3.7 billion at June 30 , 2021 compared to March 31 , 2021 and increased $ 52.6 million , or 1.5 % , compared to June 30 , 2020. The decline from March 31 , 2021 was impacted by $ 81.6 million of deposits held - for - assumption in connection with the sale of four bank branches which were completed during the second quarter of 2021 ; Excluding deposits held - for - assumption , core deposits , including noninterest - bearing and interest - bearing demand deposits , money market accounts and savings , increased by $ 114.7 million , or 5.5 % , as compared to March 31 , 2021 ; During the second quarter of 2021 , 20 branch closures were completed . These branches were moved to other real estate owned ( " OREO " ) and marketed for sale resulting in a one - time $ 3.0 million write - down ; On April 23 , 2021 , one branch was closed and sold to F & M Bank , and on May 21 , 2021 three branches were closed and sold to Pendleton Community Bank . These transactions were part of our branch network