Item 2. Properties
ITEM 2. PROPERTIES
The Company’s principal executive
office is located at 1300 Kings Mountain Road in Martinsville, Virginia. There are also two other corporate administrative locations
that house its operations center and various other corporate functions. We offer our community banking services through 92 combined
depository locations in Virginia and North Carolina at December 31, 2020. Seventy offices are located in Virginia and twenty-two
are located in North Carolina. Two of these depository banking locations are held under lease contracts, one of which is held-for-sale
in connection with sale of Bank branches. The branch sale is expected to occur in the second quarter of 2021. In addition, the
Bank leases a loan production office and a commercial banking office. Management believes the terms of the various leases are
consistent with market standards and were arrived at through arm’s length bargaining. The leases are described in Note 8
of the Notes to Consolidated Financial Statements.
ITEM 3. LEGAL PROCEEDINGS
As of December 31, 2020, no material
legal proceedings were pending or threatened against the Company.
ITEM 4. MINE SAFETY DISCLOSURES
Not applicable.
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CARTER BANKSHARES, INC. AND SUBSIDIARIES
PART II
ITEM 5. MARKET FOR REGISTRANT’S
COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES
Market for Common Stock and Dividends
The Company’s common stock trades
on NASDAQ, under the ticker symbol “CARE.” As of the close of business on March 5, 2021, we had 2,437 shareholders
of record.
Dividends
On October 14, 2016, prior to the
Reorganization, the board of directors of the Bank (the "Bank Board") determined that it was prudent not to declare
a quarterly cash dividend on the Bank's common stock beginning in the fourth quarter of 2016. Given the Bank’s history of
paying a quarterly cash dividend on its common stock, this decision was an extremely difficult one and one that the Bank Board
did not take lightly. However, the Bank Board believed this decision was necessary and appropriate as the Bank committed, and
now the Company commits additional resources to assist with regulatory compliance, preserve capital during the COVID-19 pandemic,
and makes significant investments in new technology and human resources. While recognizing the importance of dividends to its
shareholders, the Board of Directors of the Company (the “Board”) has determined that preservation of capital is of
paramount importance at this time.
The Bank Board announced on February 11,
2020 the declaration of a special one-time cash dividend of $0.14 per share. This dividend was paid on March 3, 2020 to shareholders
of record as of February 18, 2020. The Bank Board emphasized that this was a one-time dividend and there are no immediate
plans to reinstate a quarterly dividend. The amount and timing of future dividends, if any, remain subject to the discretion of
the Company’s Board and will depend upon a number of factors, including future earnings, financial condition, liquidity
and capital requirements of the Company, applicable governmental regulations and other factors deemed relevant by the Board. With
respect to the special one-time cash dividend, the Bank Board believed that it was appropriate to return some of our excess capital
to our shareholders since our recent strategy of capital retention has resulted in capital levels that are well above the well-capitalized
levels of federal banking regulatory agencies.
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CARTER BANKSHARES, INC. AND SUBSIDIARIES