Form 4: Carter Bankshares Executive Boosts Stock Holdings

Carter Bankshares SEVP, Chief Credit Officer Tony E. Kallsen reported acquiring 4,358 shares of common stock through restricted stock awards, increasing his direct beneficial ownership to 20,619 shares.

Summary

• Tony E. Kallsen, SEVP, Chief Credit Officer of Carter Bankshares, Inc. (CARE), reported changes in his beneficial ownership of common stock.
• On February 14, 2026, Kallsen disposed of 351 shares of common stock at a price of $22.01 per share, likely for tax withholding purposes.
• On February 25, 2026, Kallsen acquired 2,023 shares of common stock through restricted stock awards, subject to a three-year vesting schedule (one-third each year).
• Also on February 25, 2026, Kallsen acquired an additional 2,335 shares of common stock through restricted stock awards, subject to a three-year cliff vesting schedule.
• Following these transactions, Kallsen's direct beneficial ownership of Carter Bankshares common stock increased to 20,619 shares.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this filing positively as it reflects routine executive compensation through equity awards, which generally aligns management's interests with shareholders, despite a minor tax-related disposition.

Positives

• The acquisition of 4,358 shares through restricted stock awards aligns the executive's interests with long-term shareholder value.
• Restricted stock awards are a common incentive for executives, demonstrating commitment to the company's future performance.

Negatives

• A disposition of 351 shares occurred, though it is likely for tax withholding related to a vesting event and not a discretionary sale.

Future Outlook

The filing details vesting schedules for the restricted stock awards, indicating future share acquisitions for the executive as the awards vest over three years.

Industry Context

StockSavvy.ai notes that restricted stock awards with multi-year vesting schedules are a standard component of executive compensation packages in the banking and financial services industry. This practice aims to align executive incentives with the long-term performance and stability of the institution, which is particularly crucial in a regulated sector like banking.

Comparison to Industry Standards

• Restricted stock awards with vesting periods (both annual and cliff vesting) are a widely adopted compensation mechanism across the financial sector, including regional banks comparable to Carter Bankshares, Inc.
• Companies such as Truist Financial Corporation (TFC) and PNC Financial Services Group, Inc. (PNC) frequently utilize similar equity-based incentives to retain and motivate key executives, linking their compensation to sustained company performance and shareholder returns.

Related Party Transactions

• The acquisition of common stock through restricted stock awards represents a compensation transaction between the company and a key executive (Tony E. Kallsen), which is a related party transaction.

Stakeholder Impact

• Shareholders: The increase in executive stock ownership through awards generally signals alignment of management's interests with shareholder value creation.
• Employees: Executive compensation structures, including equity awards, can influence overall compensation philosophy within the company.

Next Steps

• The 2,023 restricted stock awards will vest one-third each year over three years.
• The 2,335 restricted stock awards will cliff vest after three years.

Key Dates

Recommendation

This Form 4 filing details routine insider transactions related to executive compensation and tax withholding. While the acquisition of shares through awards is a positive signal of alignment, it is not a discretionary purchase and does not provide new fundamental information to warrant a change in investment recommendation based solely on this filing. It serves as a data point for ongoing analysis.

Keywords

Carter Bankshares, CARE, Insider Transaction, Form 4, Restricted Stock Awards, Executive Compensation, Stock Ownership, Beneficial Ownership