SCHEDULE: Fourthstone Discloses 5.6% Stake in Carter Bankshares

Fourthstone LLC and its affiliates have reported a 5.60% beneficial ownership stake in Carter Bankshares, Inc., holding 1,236,393 shares of common stock.

Summary

• Fourthstone LLC, a Delaware-based investment adviser, along with its affiliated entities and managing member L. Phillip Stone, IV, has filed a Schedule 13G.
• The reporting group collectively beneficially owns 1,236,393 shares of Carter Bankshares, Inc. common stock.
• This ownership represents 5.60% of the outstanding common stock of Carter Bankshares, Inc.
• The shares were acquired in the ordinary course of business and not for the purpose of changing or influencing control of the Issuer.
• The reported percentage is based on 22,087,044 shares of common stock outstanding as of October 29, 2025, as disclosed in the Issuer's Form 10-Q filed on November 3, 2025.

Sentiment

Score: 7

Explanation: StockSavvy.ai views this as moderately positive, as a significant passive stake by an investment adviser can indicate confidence in the issuer's long-term prospects without suggesting immediate disruptive action.

Positives

• A significant institutional investor, Fourthstone LLC, has taken a 5.60% stake in Carter Bankshares, Inc., indicating potential confidence in the company's value.
• The acquisition was made in the ordinary course of business, suggesting a long-term investment strategy rather than an activist play aimed at control.

Future Outlook

The filing does not contain any forward-looking statements or guidance from Carter Bankshares, Inc. It solely reports beneficial ownership by Fourthstone LLC and its affiliates.

Industry Context

StockSavvy.ai notes that a 5.60% stake by an investment adviser like Fourthstone LLC in a regional bank such as Carter Bankshares, Inc. can signal a belief in the company's underlying value or potential for future growth within the financial sector. Such a significant passive stake often reflects a strategic investment in a company perceived as undervalued or poised for a turnaround, aligning with broader trends of institutional interest in community and regional banking assets.

Comparison to Industry Standards

• A 5.60% stake is a notable position for an institutional investor in a publicly traded company, often triggering disclosure requirements like Schedule 13G.
• While not an activist stake (which would typically be filed under Schedule 13D), it places Fourthstone LLC among the larger institutional holders of Carter Bankshares, Inc.
• Comparable institutional holdings in regional banks often range from 5% to 15% for passive investors, indicating a substantial but non-controlling interest.

Stakeholder Impact

• Shareholders: The disclosure of a significant institutional investor holding a 5.60% stake may instill confidence among other shareholders, potentially signaling a positive long-term outlook for Carter Bankshares, Inc.
• Management: Management may view this as a vote of confidence, though they will be aware of a large shareholder whose interests may need to be considered.

Key Dates

Recommendation

The filing indicates a significant, passive investment by Fourthstone LLC, suggesting a belief in Carter Bankshares' value without signaling immediate catalysts for substantial price movement. For a seasoned investor, this information supports a 'hold' position, awaiting further operational or strategic developments from the company itself, or a change in Fourthstone's investment thesis.

Keywords

Carter Bankshares, Fourthstone LLC, Beneficial Ownership, Schedule 13G, Investment Adviser, Common Stock, Bankshares, Financials, Institutional Investor