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Exhibit 99.1 FOR IMMEDIATE RELEASE - October 28 , 2021 Carter Bankshares , Inc. Announces Third Quarter 2021 Financial Results Martinsville , VA , October 28 , 2021 - Carter Bankshares , Inc. ( the " Company " ) ( NASDAQ : CARE ) , the holding company of Carter Bank & Trust ( the " Bank " ) today announced net income of $ 11.2 million , or $ 0.42 diluted earnings per share , for the third quarter of 2021 compared to net income of $ 5.4 million , or $ 0.21 diluted earnings per share , in the second quarter of 2021 and a net loss of $ 57.7 million , or $ 2.19 per share , for the third quarter of 2020. A loss of $ 57.7 million was recognized during the third quarter of 2020 related to a one - time charge resulting from goodwill impairment . This impairment charge reduced net income by $ 62.2 million , resulting in a net loss for the third quarter of 2020. The quarterly pre - tax pre - provision income¹ , which excludes , among other things , the one - time goodwill impairment charge , were $ 9.6 million for the quarter ended September 30 , 2021 , $ 7.7 million for the quarter ended June 30 , 2021 and $ 7.1 million for the quarter ended September 30 , 2020 . For the nine months ended September 30 , 2021 , net income was $ 26.0 million , or $ 0.98 diluted earnings per share , compared to a net loss of $ 48.8 million , or $ 1.85 per share for the first nine months ended September 30 , 2020. Net income for the nine months ended September 30 , 2020 , excluding the one - time goodwill impairment charge , was $ 13.4 million , or $ 0.51 diluted earnings per share . Pre - tax pre - provision income¹ were $ 25.4 million for the nine months ended September 30 , 2021 and $ 22.4 million for the nine months ended September 30 , 2020 excluding the goodwill impairment charge . Third Quarter 2021 Financial Highlights • • • • In August 2021 , the Bank reached an agreement with West Virginia Governor James C. Justice , II , members of his family and related entities ( the " Justice Parties " ) to restructure certain loans to the Justice Parties . In connection with this agreement , on September 8 , 2021 , the lawsuit filed by the Justice Parties was dismissed with prejudice . The Bank's loans to the Justice Parties were restructured with improved economic terms and an improved collateral position via cross collateralization . In addition , the Justice Parties executed documents that reaffirm the legality and binding nature of all of their loan documents and waive any causes of action they might have against the Bank ; Nonperforming loans declined $ 0.7 million , or 7.3 % to $ 8.9 million at September 30 , 2021 compared to June 30 , 2021 and decreased $ 31.6 million , or 78.1 % , from September 30 , 2020. The decline from September 30 , 2020 is due to the resolution of our two largest nonperforming credits during the second quarter of 2021. Nonperforming loans as a percentage of total portfolio loans were 0.31 % , 0.33 % and 1.35 % as of September 30 , 2021 , June 30 , 2021 and September 30 , 2020 , respectively ; The provision for credit losses totaled $ ( 0.4 ) million for the quarter ended September 30 , 2021 , as compared to $ 1.0 million for the quarter ended June 30 , 2021 primarily due to the sale of nine loans within two performing relationships that had been previously reserved and released ; Net interest income increased $ 2.2 million , or 8.1 % , to $ 29.4 million compared to the second quarter of 2021 primarily due to a 13 basis point increase in earning assets related to enhanced return on loan assets restructured during the third quarter of 2021 and a seven basis point decrease in funding costs ; Net interest margin , on a fully taxable equivalent basis³ ( " FTE " ) , increased 17 basis points to 2.96 % compared to the second quarter of 2021 and increased 29 basis points compared to the third quarter of 2020 ;