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SmartFinancial Announces Results for the Second Quarter 2025

SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NYSE: SMBK), today announced net income of $11.7 million, or $0.69 per diluted common share, for the second quarter of 2025, compared to net income of $8.0 million, or $0.48 per diluted common share, for the second quarter of 2024, and compared to prior quarter net income of $11.3 million, or $0.67 per diluted common share. Operating earnings1, which excludes non-recurring income, net of tax adjustments, totaled $11.7 million, or $0.69 per diluted common share, in the second quarter of 2025, compared to $7.8 million, or $0.46 per diluted common share, in the second quarter of 2024, and compared to $11.3 million, or $0.67 per diluted common share, in the first quarter of 2025.

Highlights for the Second Quarter of 2025

  • Operating earnings1 of $11.7 million, or $0.69 per diluted common share
  • Net organic loan and lease growth of $132 million with 13% annualized quarter-over-quarter increase
  • Five consecutive quarters of positive operating leverage
  • Credit quality remains solid with nonperforming assets to total assets of 0.19%
  • Quarter over quarter tangible book value per share growth of 13.7%
  • Recertified as a Great Place to Work by over 92% of SmartBank associates
  • Three business production team members added to Commercial and Private Banking teams

Billy Carroll, President & CEO, stated: "Once again, our Company delivered sustained growth and increasing returns, resulting in five consecutive quarters of positive operating leverage. Despite continued market volatility, our SmartBank team members generated quarterly loan growth of 13% annualized, a testament to our team’s commitment and unmatched professionalism. Our capital base continues to strengthen, and our asset quality remains solid (non-performing assets at 0.19% of total assets). As we reach the midpoint of 2025, it has become increasingly clear that leveraging our platform organically and recruiting top talent is an effective and successful strategy. Thank you to all SmartBank associates for your hard work in making us a leading Southeast banking franchise!”

SmartFinancial's Chairman, Miller Welborn, concluded: "The Board could not be more pleased with the positive momentum of our Company. Operating leverage, margin, tangible book value and earnings per share all continue to trend positively and, equally important, our Company continues to maintain its steadfast commitment to culture. Once again, this quarter saw SmartBank recertified as a Great Place to Work by over 92% of its associate base, a tremendous honor that we look forward to continuing for years to come.”

Net Interest Income and Net Interest Margin

Net interest income was $40.3 million for the second quarter of 2025, compared to $38.2 million for the prior quarter. Average earning assets totaled $4.96 billion, an increase of $87.8 million from the prior quarter. The balances of average earnings assets changed quarter-over-quarter, primarily from an increase in average loans and leases of $109.2 million and securities of $9.9 million, offset by a decrease in average interest-earning cash of $31.3 million. Average interest-bearing liabilities increased by $62.0 million from the prior quarter, primarily attributable to an increase in average deposits of $62.4 million, offset by a decrease in borrowings of $437 thousand.

The tax equivalent net interest margin was 3.29% for the second quarter of 2025, compared to 3.21% for the prior quarter. The tax equivalent net interest margin was positively impacted primarily by the increased yield on interest-earning assets and offset by an increase in the cost of interest-bearing liabilities, quarter-over-quarter. The yield on loans and leases, excluding loan fees, on a fully tax equivalent basis (“FTE”) was 5.99% for the second quarter, compared to 5.88% for the prior quarter.

The cost of total deposits for the second quarter of 2025 was 2.39%, compared to 2.37% in the prior quarter. The cost of interest-bearing liabilities was 2.99% for the second quarter, compared to 2.97% in the prior quarter. The cost of average interest-bearing deposits was 2.95% for the second quarter of 2025, compared to 2.92% for the prior quarter, an increase of three basis points.

________________________________________________

1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliations.

The following table presents selected interest rates and yields for the periods indicated:

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Jun

Mar

Increase

Selected Interest Rates and Yields

 

2025

2025

(Decrease)

Yield on loans and leases, excluding loan fees, FTE

 

5.99

%

5.88

%

0.11

%

Yield on loans and leases, FTE

 

6.07

%

5.97

%

0.10

%

Yield on earning assets, FTE

 

5.65

%

5.56

%

0.09

%

Cost of interest-bearing deposits

 

2.95

%

2.92

%

0.03

%

Cost of total deposits

 

2.39

%

2.37

%

0.02

%

Cost of interest-bearing liabilities

 

2.99

%

2.97

%

0.02

%

Net interest margin, FTE

 

3.29

%

3.21

%

0.08

%

 

Provision for Credit Losses on Loans and Leases and Credit Quality

At June 30, 2025, the allowance for credit losses was $39.8 million. The allowance for credit losses to total loans and leases was 0.96% as of June 30, 2025, and March 31, 2025.

The following table presents detailed information related to the provision for credit losses for the periods indicated (dollars in thousands):

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

Jun

 

Mar

 

Increase

Provision for Credit Losses on Loans and Leases Rollforward

 

2025

 

2025

 

(Decrease)

Beginning balance

 

$

38,175

 

 

$

37,423

 

 

$

752

 

Charge-offs

 

 

(269

)

 

 

(332

)

 

 

63

 

Recoveries

 

 

123

 

 

 

241

 

 

 

(118

)

Net charge-offs

 

 

(146

)

 

 

(91

)

 

 

(55

)

Provision for credit losses (1)

 

 

1,747

 

 

 

843

 

 

 

904

 

Ending balance

 

$

39,776

 

 

$

38,175

 

 

$

1,601

 

 

 

 

 

 

 

 

Allowance for credit losses to total loans and leases, gross

 

 

0.96

%

 

 

0.96

%

 

 

-

%

 

(1) The current quarter-ended and prior quarter-ended excludes unfunded commitments provision of $664 thousand and $136 thousand, respectively. At June 30, 2025, the unfunded commitment liability totaled $3.3 million.

Nonperforming loans and leases as a percentage of total loans and leases was 0.19% as of June 30, 2025, and 0.20% as of March 31, 2025. Total nonperforming assets (which include nonaccrual loans and leases, loans and leases past due 90 days or more and still accruing, other real estate owned and other repossessed assets) as a percentage of total assets was 0.19% as of June 30, 2025, and March 31, 2025.

The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands):

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

Jun

 

Mar

 

Increase

Credit Quality

 

2025

 

2025

 

(Decrease)

Nonaccrual loans and leases

 

$

7,889

 

$

7,624

 

$

265

 

Loans and leases past due 90 days or more and still accruing

 

 

32

 

 

183

 

 

(151

)

Total nonperforming loans and leases

 

 

7,921

 

 

7,807

 

 

114

 

Other real estate owned

 

 

144

 

 

144

 

 

-

 

Other repossessed assets

 

 

2,397

 

 

2,414

 

 

(17

)

Total nonperforming assets

 

$

10,462

 

$

10,365

 

$

97

 

 

 

 

 

 

Nonperforming loans and leases to total loans and leases, gross

 

 

0.19

%

 

0.20

%

 

(0.01

)%

Nonperforming assets to total assets

 

 

0.19

%

 

0.19

%

 

-

%

 

Noninterest Income

Noninterest income increased $301 thousand to $8.9 million for the second quarter of 2025, compared to $8.6 million for the prior quarter. The current quarter increase was primarily attributable to increases in mortgage banking income, insurance commissions, interchange and debit card transactions and other, offset by a decrease in investment services.

The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands):

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

Jun

 

Mar

 

Increase

Noninterest Income

 

2025

 

2025

 

(Decrease)

Service charges on deposit accounts

 

$

1,766

 

 

$

1,736

 

$

30

 

Loss on sale of securities

 

 

(4

)

 

 

-

 

 

(4

)

Mortgage banking income

 

 

633

 

 

 

493

 

 

140

 

Investment services

 

 

1,440

 

 

 

1,769

 

 

(329

)

Insurance commissions

 

 

1,554

 

 

 

1,412

 

 

142

 

Interchange and debit card transaction fees

 

 

1,342

 

 

 

1,220

 

 

122

 

Other

 

 

2,167

 

 

 

1,967

 

 

200

 

Total noninterest income

 

$

8,898

 

 

$

8,597

 

$

301

 

 

Noninterest Expense

Noninterest expense increased $273 thousand to $32.6 million for the second quarter of 2025, compared to $32.3 million for the prior quarter. The current quarter’s increase was primarily attributable to an increase in salaries and employee benefits from additional incentive accruals, offset by a decrease in professional services. The changes in the other categories of noninterest expense were minimal.

The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands):

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

 

 

Jun

 

 

Mar

 

 

Increase

Noninterest Expense

 

2025

 

 

2025

 

 

(Decrease)

Salaries and employee benefits

 

$

19,602

 

 

$

19,234

 

 

$

368

 

Occupancy and equipment

 

 

3,432

 

 

 

3,397

 

 

 

35

 

FDIC insurance

 

 

992

 

 

 

960

 

 

 

32

 

Other real estate and loan related expenses

 

 

757

 

 

 

658

 

 

 

99

 

Advertising and marketing

 

 

390

 

 

 

382

 

 

 

8

 

Data processing and technology

 

 

2,651

 

 

 

2,657

 

 

 

(6

)

Professional services

 

 

1,153

 

 

 

1,368

 

 

 

(215

)

Amortization of intangibles

 

 

566

 

 

 

569

 

 

 

(3

)

Other

 

 

3,026

 

 

 

3,071

 

 

 

(45

)

Total noninterest expense

 

$

32,569

 

 

$

32,296

 

 

$

273

 

 

Income Tax Expense

Income tax expense was $2.6 million for the second quarter of 2025, an increase of $250 thousand, compared to $2.3 million for the prior quarter.

Balance Sheet Trends

Total assets at June 30, 2025, were $5.49 billion compared to $5.28 billion at December 31, 2024. The $215.0 million increase is primarily attributable to increases in loans and leases of $217.7 million and securities of $17.7 million, offset by a decrease in cash and cash equivalents of $22.5 million.

Total liabilities were $4.97 billion at June 30, 2025, compared to $4.78 billion at December 31, 2024, an increase of $187.3 million. Total deposits increased $185.6 million, which was driven primarily by increases in other time deposits of $95.2 million, money market deposits of $85.1 million and, interest-bearing demand deposits of $7.1 million and the issuance of brokered deposits of $56.9 million, offset by a decline in noninterest demand deposits of $58.6 million.

Shareholders' equity at June 30, 2025, totaled $519.1 million, an increase of $27.7 million, from December 31, 2024. The increase in shareholders' equity was primarily driven by net income of $23.0 million for the six months ending June 30, 2025, and a positive change of $6.4 million in accumulated other comprehensive loss, offset by dividends paid of $2.7 million. Tangible book value per share2 was $24.42 at June 30, 2025, compared to $22.85 at December 31, 2024. Tangible common equity1 as a percentage of tangible assets1 was 7.71% at June 30, 2025, compared with 7.48% at December 31, 2024.

The following table presents selected balance sheet information for the periods indicated (dollars in thousands):

 

 

 

 

 

 

 

 

 

Jun

 

 

Dec

 

 

Increase

Selected Balance Sheet Information

 

2025

 

 

2024

 

 

(Decrease)

Total assets

 

$

5,490,863

 

 

$

5,275,904

 

 

$

214,959

 

Total liabilities

 

 

4,971,736

 

 

 

4,784,443

 

 

 

187,293

 

Total equity

 

 

519,127

 

 

 

491,461

 

 

 

27,666

 

Securities

 

 

626,670

 

 

 

608,987

 

 

 

17,683

 

Loans and leases

 

 

4,124,062

 

 

 

3,906,340

 

 

 

217,722

 

Deposits

 

 

4,872,120

 

 

 

4,686,483

 

 

 

185,637

 

Borrowings

 

 

6,966

 

 

 

8,135

 

 

 

(1,169

)

 

Conference Call Information

SmartFinancial issued this earnings release for the second quarter of 2025 on Monday, July 21, 2025, and will host a conference call on Tuesday, July 22, 2025, at 10:00 a.m. ET. To access this interactive teleconference, dial (833) 470-1428 or (404) 975-4839 and enter the access code, 342904. A replay of the conference call will be available through September 20, 2025, by dialing (866) 813-9403 or (929) 458-6194 and enter the access code, 216208. Conference call materials will be published on the Company’s webpage located at http://www.smartfinancialinc.com/CorporateProfile, at 9:00 a.m. ET prior to the conference call.

About SmartFinancial, Inc.

SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with branches across Tennessee, Alabama, and Florida. Recruiting the best people, delivering exceptional client service, strategic branching, and a disciplined approach to lending have contributed to SmartBank’s success. More information about SmartFinancial can be found on its website: www.smartfinancialinc.com.

_______________________________________________

1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliation

Non-GAAP Financial Measures

Statements included in this earnings release include measures not recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered Non-GAAP financial measures (“Non-GAAP”) and should be read along with the accompanying tables, which provide a reconciliation of Non-GAAP financial measures to GAAP financial measures. SmartFinancial management uses several Non-GAAP financial measures and ratios derived therefrom in its analysis of the Company's performance, including:

  1. Operating earnings
  2. Operating noninterest income
  3. Operating noninterest expense
  4. Operating pre-provision net revenue (“PPNR”) earnings
  5. Tangible common equity
  6. Average tangible common equity
  7. Tangible book value per common share
  8. Tangible assets
  9. Operating efficiency ratio

Operating earnings, operating PPNR earnings, operating noninterest income and operating noninterest expense exclude non-operating related income and expense items from net income, noninterest income and noninterest expense, respectively. Tangible common equity and average tangible common equity exclude goodwill and other intangible assets from shareholders' equity and average shareholders' equity, respectively. Tangible book value per common share is tangible common equity divided by common shares outstanding. Tangible assets excludes goodwill and other intangibles from total assets. Operating efficiency ratio is the quotient of operating noninterest expense divided by the sum of net interest income adjusted for taxable equivalent yields plus operating noninterest income. A detailed reconciliation of these items and the ratios derived therefrom is available in the Non-GAAP reconciliations.

Management believes that Non-GAAP financial measures provide additional useful information that allows investors to evaluate the ongoing performance of the company and provide meaningful comparisons to its peers. Management also believes these Non-GAAP financial measures enhance investors' ability to compare period-to-period financial results and allow investors and company management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.

Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider SmartFinancial's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.

Forward-Looking Statements

This news release may contain statements that are based on management’s current estimates or expectations of future events or future results, and that may be deemed to constitute forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements are not historical in nature and can generally be identified by such words as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “may,” “estimate,” and similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results of SmartFinancial to differ materially from future results expressed or implied by such forward-looking statements. Such risks, uncertainties, and other factors include, among others,

(1) risks associated with our growth strategy, including a failure to implement our growth plans or an inability to manage our growth effectively;

(2) claims and litigation arising from our business activities and from the companies we acquire, which may relate to contractual issues, environmental laws, fiduciary responsibility, and other matters;

(3) general risks related to our merger and acquisition activity, including risks associated with our pursuit of future acquisitions;

(4) changes in management’s plans for the future;

(5) prevailing, or changes in, economic or political conditions (including those resulting from the new administration and Congress), particularly in our market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing;

(6) our ability to anticipate interest rate changes and manage interest rate risk (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business and the impact of interest rate fluctuations on our financial projections, models and guidance);

(7) tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services);

(8) uncertain duration of trade conflicts and the magnitude of the impact that proposed tariffs may have on our customers’ businesses;

(9) increased technology and cybersecurity risks, including generative artificial intelligence risks;

(10) the impact of a failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting us and our customers;

(11) credit risk associated with our lending activities;

(12) changes in loan demand, real estate values, or competition;

(13) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance;

(14) changes in accounting principles, policies, or guidelines;

(15) changes in applicable laws, rules, or regulations;

(16) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions;

(17) potential impacts of any adverse developments in the banking industry, including the impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto;

(18) significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities;

(19) the effects of war or other conflicts; and

(20) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services.

These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in SmartFinancial’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, in each case filed with or furnished to the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website (www.sec.gov). Undue reliance should not be placed on forward-looking statements. SmartFinancial disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events, or otherwise.

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Ending Balances

 

Jun

 

Mar

 

Dec

 

Sep

 

Jun

 

2025

 

2025

 

2024

 

2024

 

2024

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

$

365,096

 

 

$

422,984

 

 

$

387,570

 

 

$

192,914

 

 

$

342,835

 

Securities available-for-sale, at fair value

 

502,150

 

 

 

499,445

 

 

 

482,328

 

 

 

501,336

 

 

 

500,821

 

Securities held-to-maturity, at amortized cost

 

124,520

 

 

 

125,576

 

 

 

126,659

 

 

 

127,779

 

 

 

128,996

 

Other investments

 

14,713

 

 

 

14,371

 

 

 

14,740

 

 

 

20,352

 

 

 

13,780

 

Loans held for sale

 

5,484

 

 

 

3,843

 

 

 

5,996

 

 

 

5,804

 

 

 

3,103

 

Loans and leases

 

4,124,062

 

 

 

3,992,207

 

 

 

3,906,340

 

 

 

3,717,478

 

 

 

3,574,158

 

Less: Allowance for credit losses

 

(39,776

)

 

 

(38,175

)

 

 

(37,423

)

 

 

(35,609

)

 

 

(34,690

)

Loans and leases, net

 

4,084,286

 

 

 

3,954,032

 

 

 

3,868,917

 

 

 

3,681,869

 

 

 

3,539,468

 

Premises and equipment, net

 

90,204

 

 

 

90,708

 

 

 

91,093

 

 

 

91,055

 

 

 

91,315

 

Other real estate owned

 

144

 

 

 

144

 

 

 

179

 

 

 

179

 

 

 

688

 

Goodwill and other intangibles, net

 

103,588

 

 

 

104,154

 

 

 

104,723

 

 

 

105,324

 

 

 

105,929

 

Bank owned life insurance

 

117,697

 

 

 

116,805

 

 

 

115,917

 

 

 

105,025

 

 

 

84,483

 

Other assets

 

82,981

 

 

 

79,155

 

 

 

77,782

 

 

 

77,297

 

 

 

79,591

 

Total assets

$

5,490,863

 

 

$

5,411,217

 

 

$

5,275,904

 

 

$

4,908,934

 

 

$

4,891,009

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

$

906,965

 

 

$

884,294

 

 

$

965,552

 

 

$

863,949

 

 

$

903,300

 

Interest-bearing demand

 

843,820

 

 

 

885,063

 

 

 

836,731

 

 

 

834,207

 

 

 

988,057

 

Money market and savings

 

2,124,623

 

 

 

2,131,828

 

 

 

2,039,560

 

 

 

1,854,777

 

 

 

1,901,281

 

Time deposits

 

996,712

 

 

 

907,474

 

 

 

844,640

 

 

 

769,558

 

 

 

524,018

 

Total deposits

 

4,872,120

 

 

 

4,808,659

 

 

 

4,686,483

 

 

 

4,322,491

 

 

 

4,316,656

 

Borrowings

 

6,966

 

 

 

7,610

 

 

 

8,135

 

 

 

8,997

 

 

 

12,732

 

Subordinated debt

 

39,726

 

 

 

39,705

 

 

 

39,684

 

 

 

39,663

 

 

 

42,142

 

Other liabilities

 

52,924

 

 

 

49,302

 

 

 

50,141

 

 

 

48,760

 

 

 

47,014

 

Total liabilities

 

4,971,736

 

 

 

4,905,276

 

 

 

4,784,443

 

 

 

4,419,911

 

 

 

4,418,544

 

Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

17,018

 

 

 

17,018

 

 

 

16,926

 

 

 

16,926

 

 

 

16,926

 

Additional paid-in capital

 

295,209

 

 

 

294,736

 

 

 

294,269

 

 

 

293,909

 

 

 

293,586

 

Retained earnings

 

224,061

 

 

 

213,721

 

 

 

203,824

 

 

 

195,537

 

 

 

187,751

 

Accumulated other comprehensive loss

 

(17,274

)

 

 

(19,647

)

 

 

(23,671

)

 

 

(17,349

)

 

 

(25,798

)

Total shareholders' equity attributable to SmartFinancial Inc. and Subsidiary

 

519,014

 

 

 

505,828

 

 

 

491,348

 

 

 

489,023

 

 

 

472,465

 

Non-controlling interest - preferred stock of subsidiary

 

113

 

 

 

113

 

 

 

113

 

 

 

 

 

 

 

Total shareholders' equity

 

519,127

 

 

 

505,941

 

 

 

491,461

 

 

 

489,023

 

 

 

472,465

 

Total liabilities & shareholders' equity

$

5,490,863

 

 

$

5,411,217

 

 

$

5,275,904

 

 

$

4,908,934

 

 

$

4,891,009

 

 

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

Jun

 

Mar

 

Dec

 

Sep

 

Jun

 

Jun

 

Jun

 

2025

 

 

2025

 

2024

 

2024

 

2024

 

2025

 

 

2024

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases, including fees

$

61,049

 

 

$

57,762

 

$

57,951

 

$

54,738

 

$

50,853

 

$

118,811

 

 

$

100,873

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

4,848

 

 

 

4,775

 

 

5,050

 

 

5,233

 

 

5,320

 

 

9,623

 

 

 

9,869

Tax-exempt

 

395

 

 

 

354

 

 

351

 

 

350

 

 

353

 

 

749

 

 

 

705

Federal funds sold and other earning assets

 

3,161

 

 

 

3,485

 

 

2,744

 

 

3,635

 

 

4,759

 

 

6,647

 

 

 

9,620

Total interest income

 

69,453

 

 

 

66,376

 

 

66,096

 

 

63,956

 

 

61,285

 

 

135,830

 

 

 

121,067

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

28,301

 

 

 

27,335

 

 

27,437

 

 

27,350

 

 

27,439

 

 

55,636

 

 

 

54,474

Borrowings

 

70

 

 

 

70

 

 

89

 

 

709

 

 

148

 

 

140

 

 

 

276

Subordinated debt

 

739

 

 

 

733

 

 

787

 

 

865

 

 

884

 

 

1,472

 

 

 

1,782

Total interest expense

 

29,110

 

 

 

28,138

 

 

28,313

 

 

28,924

 

 

28,471

 

 

57,248

 

 

 

56,532

Net interest income

 

40,343

 

 

 

38,238

 

 

37,783

 

 

35,032

 

 

32,814

 

 

78,582

 

 

 

64,535

Provision for credit losses

 

2,411

 

 

 

979

 

 

2,135

 

 

2,575

 

 

883

 

 

3,391

 

 

 

443

Net interest income after provision for credit losses

 

37,932

 

 

 

37,259

 

 

35,648

 

 

32,457

 

 

31,931

 

 

75,191

 

 

 

64,092

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

1,766

 

 

 

1,736

 

 

1,778

 

 

1,780

 

 

1,692

 

 

3,502

 

 

 

3,304

Gain (loss) on sale of securities, net

 

(4

)

 

 

 

 

64

 

 

 

 

 

 

(4

)

 

 

Mortgage banking

 

633

 

 

 

493

 

 

541

 

 

410

 

 

348

 

 

1,126

 

 

 

628

Investment services

 

1,440

 

 

 

1,769

 

 

1,382

 

 

1,881

 

 

1,302

 

 

3,209

 

 

 

2,682

Insurance commissions

 

1,554

 

 

 

1,412

 

 

1,832

 

 

1,477

 

 

1,284

 

 

2,967

 

 

 

2,387

Interchange and debit card transaction fees

 

1,342

 

 

 

1,220

 

 

1,332

 

 

1,349

 

 

1,343

 

 

2,562

 

 

 

2,596

Other

 

2,167

 

 

 

1,967

 

 

2,101

 

 

2,242

 

 

1,635

 

 

4,133

 

 

 

4,387

Total noninterest income

 

8,898

 

 

 

8,597

 

 

9,030

 

 

9,139

 

 

7,604

 

 

17,495

 

 

 

15,984

Noninterest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Salaries and employee benefits

 

19,602

 

 

 

19,234

 

 

19,752

 

 

18,448

 

 

17,261

 

 

38,836

 

 

 

33,900

Occupancy and equipment

 

3,432

 

 

 

3,397

 

 

3,473

 

 

3,423

 

 

3,324

 

 

6,829

 

 

 

6,720

FDIC insurance

 

992

 

 

 

960

 

 

825

 

 

825

 

 

825

 

 

1,952

 

 

 

1,740

Other real estate and loan related expense

 

757

 

 

 

658

 

 

1,241

 

 

460

 

 

538

 

 

1,415

 

 

 

1,123

Advertising and marketing

 

390

 

 

 

382

 

 

397

 

 

327

 

 

295

 

 

772

 

 

 

597

Data processing and technology

 

2,651

 

 

 

2,657

 

 

2,495

 

 

2,519

 

 

2,452

 

 

5,309

 

 

 

4,916

Professional services

 

1,153

 

 

 

1,368

 

 

1,017

 

 

1,201

 

 

1,064

 

 

2,521

 

 

 

1,989

Amortization of intangibles

 

566

 

 

 

569

 

 

601

 

 

604

 

 

608

 

 

1,135

 

 

 

1,220

Other

 

3,026

 

 

 

3,071

 

 

2,490

 

 

3,039

 

 

2,834

 

 

6,097

 

 

 

5,549

Total noninterest expense

 

32,569

 

 

 

32,296

 

 

32,291

 

 

30,846

 

 

29,201

 

 

64,866

 

 

 

57,754

Income before income taxes

 

14,261

 

 

 

13,560

 

 

12,387

 

 

10,750

 

 

10,334

 

 

27,820

 

 

 

22,322

Income tax expense

 

2,556

 

 

 

2,306

 

 

2,747

 

 

1,610

 

 

2,331

 

 

4,861

 

 

 

4,962

Net income

$

11,705

 

 

$

11,254

 

$

9,640

 

$

9,140

 

$

8,003

 

$

22,959

 

 

$

17,360

Earnings per common share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.70

 

 

$

0.67

 

$

0.58

 

$

0.55

 

$

0.48

 

$

1.37

 

 

$

1.03

Diluted

$

0.69

 

 

$

0.67

 

$

0.57

 

$

0.54

 

$

0.48

 

$

1.36

 

 

$

1.03

Weighted average common shares outstanding:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

 

16,778,988

 

 

 

16,767,535

 

 

16,729,509

 

 

16,726,658

 

 

16,770,819

 

 

16,773,293

 

 

 

16,810,277

Diluted

 

16,878,736

 

 

 

16,872,097

 

 

16,863,780

 

 

16,839,998

 

 

16,850,250

 

 

16,875,608

 

 

 

16,887,374

 

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

YIELD ANALYSIS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

June 30, 2025

 

March 31, 2025

 

June 30, 2024

 

 

 

Average

 

 

 

 

Yield/

 

Average

 

 

 

 

Yield/

 

Average

 

 

 

 

Yield/

 

 

 

Balance

 

Interest

 

Cost

 

Balance

 

Interest

 

Cost

 

Balance

 

Interest

 

Cost

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases, including fees1

 

$

4,050,485

 

$

61,294

 

6.07

%

$

3,941,295

 

$

58,008

 

5.97

%

$

3,504,265

 

$

51,110

 

5.87

%

Taxable securities

 

 

562,660

 

 

4,848

 

3.46

%

 

555,914

 

 

4,775

 

3.48

%

 

580,517

 

 

5,320

 

3.69

%

Tax-exempt securities2

 

 

66,223

 

 

500

 

3.03

%

 

63,085

 

 

448

 

2.88

%

 

63,690

 

 

447

 

2.82

%

Federal funds sold and other earning assets

 

 

275,647

 

 

3,161

 

4.60

%

 

306,966

 

 

3,485

 

4.60

%

 

346,459

 

 

4,759

 

5.52

%

Total interest-earning assets

 

 

4,955,015

 

 

69,803

 

5.65

%

 

4,867,260

 

 

66,716

 

5.56

%

 

4,494,931

 

 

61,636

 

5.52

%

Noninterest-earning assets

 

 

405,804

 

 

 

 

 

 

 

405,860

 

 

 

 

 

 

 

383,697

 

 

 

 

 

 

Total assets

 

$

5,360,819

 

 

 

 

 

 

$

5,273,120

 

 

 

 

 

 

$

4,878,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

835,394

 

 

3,785

 

1.82

%

$

846,823

 

 

3,743

 

1.79

%

$

983,433

 

 

5,950

 

2.43

%

Money market and savings deposits

 

 

2,104,236

 

 

15,762

 

3.00

%

 

2,064,134

 

 

15,065

 

2.96

%

 

1,909,125

 

 

16,529

 

3.48

%

Time deposits

 

 

914,658

 

 

8,754

 

3.84

%

 

880,933

 

 

8,527

 

3.93

%

 

528,985

 

 

4,960

 

3.77

%

Total interest-bearing deposits

 

 

3,854,288

 

 

28,301

 

2.95

%

 

3,791,890

 

 

27,335

 

2.92

%

 

3,421,543

 

 

27,439

 

3.23

%

Borrowings

 

 

7,783

 

 

70

 

3.61

%

 

8,220

 

 

70

 

3.45

%

 

12,684

 

 

148

 

4.69

%

Subordinated debt

 

 

39,714

 

 

739

 

7.46

%

 

39,692

 

 

733

 

7.49

%

 

42,129

 

 

884

 

8.44

%

Total interest-bearing liabilities

 

 

3,901,785

 

 

29,110

 

2.99

%

 

3,839,802

 

 

28,138

 

2.97

%

 

3,476,356

 

 

28,471

 

3.29

%

Noninterest-bearing deposits

 

 

898,428

 

 

 

 

 

 

 

884,078

 

 

 

 

 

 

 

888,693

 

 

 

 

 

 

Other liabilities

 

 

49,539

 

 

 

 

 

 

 

51,260

 

 

 

 

 

 

 

47,208

 

 

 

 

 

 

Total liabilities

 

 

4,849,752

 

 

 

 

 

 

 

4,775,140

 

 

 

 

 

 

 

4,412,257

 

 

 

 

 

 

Shareholders' equity

 

 

511,067

 

 

 

 

 

 

 

497,980

 

 

 

 

 

 

 

466,371

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

5,360,819

 

 

 

 

 

 

$

5,273,120

 

 

 

 

 

 

$

4,878,628

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income, taxable equivalent

 

 

 

 

$

40,693

 

 

 

 

 

 

$

38,578

 

 

 

 

 

 

$

33,165

 

 

 

Interest rate spread

 

 

 

 

 

 

 

2.66

%

 

 

 

 

 

 

2.59

%

 

 

 

 

 

 

2.22

%

Tax equivalent net interest margin

 

 

 

 

 

 

 

3.29

%

 

 

 

 

 

 

3.21

%

 

 

 

 

 

 

2.97

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of average interest-earning assets to average interest-bearing liabilities

 

 

 

 

 

 

 

126.99

%

 

 

 

 

 

 

126.76

%

 

 

 

 

 

 

129.30

%

Percentage of average equity to average assets

 

 

 

 

 

 

 

9.53

%

 

 

 

 

 

 

9.44

%

 

 

 

 

 

 

9.56

%

 

1 Yields computed on tax-exempt loans on a tax equivalent basis include $245 thousand, $246 thousand, and $257 thousand of taxable equivalent income for the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.

2 Yields computed on tax-exempt instruments on a tax equivalent basis include $105 thousand, $94 thousand, and $94 thousand of taxable equivalent income for the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

YIELD ANALYSIS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Six Months Ended

 

 

June 30, 2025

 

June 30, 2024

 

 

 

Average

 

 

 

 

Yield/

 

Average

 

 

 

 

Yield/

 

 

 

Balance

 

Interest

 

Cost

 

Balance

 

Interest

 

Cost

 

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases, including fees1

 

$

3,996,192

 

$

119,302

 

 

6.02

%

$

3,481,187

 

$

101,130

 

5.84

%

Taxable securities

 

 

559,306

 

 

9,623

 

 

3.47

%

 

600,661

 

 

9,869

 

3.30

%

Tax-exempt securities2

 

 

64,663

 

 

948

 

 

2.96

%

 

63,925

 

 

892

 

2.81

%

Federal funds sold and other earning assets

 

 

291,219

 

 

6,647

 

 

4.60

%

 

350,186

 

 

9,620

 

5.52

%

Total interest-earning assets

 

 

4,911,380

 

 

136,520

 

 

5.61

%

 

4,495,959

 

 

121,511

 

5.44

%

Noninterest-earning assets

 

 

405,832

 

 

 

 

 

 

 

 

381,964

 

 

 

 

 

 

Total assets

 

$

5,317,212

 

 

 

 

 

 

 

$

4,877,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities and Shareholders’ Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand deposits

 

$

841,077

 

 

7,528

 

 

1.80

%

$

989,790

 

 

12,010

 

2.44

%

Money market and savings deposits

 

 

2,084,296

 

 

30,826

 

 

2.98

%

 

1,906,990

 

 

32,677

 

3.45

%

Time deposits

 

 

897,889

 

 

17,282

 

 

3.88

%

 

535,389

 

 

9,787

 

3.68

%

Total interest-bearing deposits

 

 

3,823,262

 

 

55,636

 

 

2.93

%

 

3,432,169

 

 

54,474

 

3.19

%

Borrowings

 

 

8,000

 

 

140

 

 

3.53

%

 

11,964

 

 

276

 

4.64

%

Subordinated debt

 

 

39,703

 

 

1,472

 

 

7.48

%

 

42,118

 

 

1,782

 

8.51

%

Total interest-bearing liabilities

 

 

3,870,965

 

 

57,248

 

 

2.98

%

 

3,486,251

 

 

56,532

 

3.26

%

Noninterest-bearing deposits

 

 

891,293

 

 

 

 

 

 

 

 

880,767

 

 

 

 

 

 

Other liabilities

 

 

50,394

 

 

 

 

 

 

 

 

47,146

 

 

 

 

 

 

Total liabilities

 

 

4,812,652

 

 

 

 

 

 

 

 

4,414,164

 

 

 

 

 

 

Shareholders' equity

 

 

504,560

 

 

 

 

 

 

 

 

463,759

 

 

 

 

 

 

Total liabilities and shareholders' equity

 

$

5,317,212

 

 

 

 

 

 

 

$

4,877,923

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income, taxable equivalent

 

 

 

 

$

79,272

 

 

 

 

 

 

 

$

64,979

 

 

 

Interest rate spread

 

 

 

 

 

 

 

 

2.62

%

 

 

 

 

 

 

2.17

%

Tax equivalent net interest margin

 

 

 

 

 

 

 

 

3.25

%

 

 

 

 

 

 

2.91

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Percentage of average interest-earning assets to average interest-bearing liabilities

 

 

 

 

 

 

 

 

126.88

%

 

 

 

 

 

 

128.96

%

Percentage of average equity to average assets

 

 

 

 

 

 

 

 

9.49

%

 

 

 

 

 

 

9.51

%

 

1 Yields computed on tax-exempt loans on a tax equivalent basis include $491 thousand and $257 thousand of taxable equivalent income for the six months ended June 30, 2025 and June 30, 2024, respectively.

2 Yields computed on tax-exempt instruments on a tax equivalent basis include $199 thousand and $187 thousand of taxable equivalent income for the six months ended June 30, 2025 and June 30, 2024, respectively.

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for The Three Months Ended

 

 

 

Jun

 

Mar

 

Dec

 

Sep

 

Jun

 

 

 

2025

 

2025

 

2024

 

2024

 

2024

 

Composition of Loans and Leases:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Commercial real estate:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-owner occupied

 

$

1,114,133

 

$

1,117,392

 

$

1,080,404

 

$

1,031,708

 

$

986,278

 

Owner occupied

 

 

958,989

 

 

885,396

 

 

867,678

 

 

868,077

 

 

829,085

 

Commercial real estate, total

 

 

2,073,122

 

 

2,002,788

 

 

1,948,082

 

 

1,899,785

 

 

1,815,363

 

Consumer real estate

 

 

803,270

 

 

784,602

 

 

741,836

 

 

690,504

 

 

678,331

 

Construction & land development

 

 

391,155

 

 

357,393

 

 

361,735

 

 

315,006

 

 

294,575

 

Commercial & industrial

 

 

778,754

 

 

768,454

 

 

775,620

 

 

731,600

 

 

701,460

 

Leases

 

 

62,495

 

 

64,208

 

 

64,878

 

 

67,052

 

 

70,299

 

Consumer and other

 

 

15,266

 

 

14,762

 

 

14,189

 

 

13,531

 

 

14,130

 

Total loans and leases

 

$

4,124,062

 

$

3,992,207

 

$

3,906,340

 

$

3,717,478

 

$

3,574,158

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Asset Quality and Additional Loan Data:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans and leases

 

$

7,921

 

$

7,807

 

$

7,872

 

$

9,491

 

$

6,642

 

Other real estate owned

 

 

144

 

 

144

 

 

179

 

 

179

 

 

688

 

Other repossessed assets

 

 

2,397

 

 

2,414

 

 

2,037

 

 

2,949

 

 

2,645

 

Total nonperforming assets

 

$

10,462

 

$

10,365

 

$

10,088

 

$

12,619

 

$

9,975

 

Modified loans and leases1 not included in nonperforming loans and leases

 

$

1,660

 

$

1,978

 

$

3,989

 

$

4,053

 

$

4,241

 

Net charge-offs to average loans and leases (annualized)

 

 

0.01

%

 

0.01

%

 

0.02

%

 

0.15

%

 

0.05

%

Allowance for credit losses to loans and leases

 

 

0.96

%

 

0.96

%

 

0.96

%

 

0.96

%

 

0.97

%

Nonperforming loans and leases to total loans and leases, gross

 

 

0.19

%

 

0.20

%

 

0.20

%

 

0.26

%

 

0.19

%

Nonperforming assets to total assets

 

 

0.19

%

 

0.19

%

 

0.19

%

 

0.26

%

 

0.20

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Capital Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Equity to Assets

 

 

9.45

%

 

9.35

%

 

9.32

%

 

9.96

%

 

9.66

%

Tangible common equity to tangible assets (Non-GAAP)2

 

 

7.71

%

 

7.57

%

 

7.48

%

 

7.99

%

 

7.66

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SmartFinancial, Inc.3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage

 

 

8.25

%

 

8.16

%

 

8.29

%

 

8.44

%

 

8.32

%

Common equity Tier 1

 

 

9.68

%

 

9.79

%

 

9.76

%

 

10.06

%

 

10.06

%

Tier 1 capital

 

 

9.68

%

 

9.79

%

 

9.76

%

 

10.06

%

 

10.06

%

Total capital

 

 

11.05

%

 

11.18

%

 

11.10

%

 

11.62

%

 

11.68

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

SmartBank3

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tier 1 leverage

 

 

8.88

%

 

8.76

%

 

8.94

%

 

9.17

%

 

9.11

%

Common equity Tier 1

 

 

10.43

%

 

10.51

%

 

10.51

%

 

10.92

%

 

11.02

%

Tier 1 capital

 

 

10.43

%

 

10.51

%

 

10.51

%

 

10.92

%

 

11.02

%

Total capital

 

 

11.27

%

 

11.35

%

 

11.30

%

 

11.69

%

 

11.79

%

 

1 Borrowers that have experienced financial difficulty.

2 Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures.

3 Current period capital ratios are estimated as of the date of this earnings release.

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

As of and for The

 

 

As of and for The

 

 

Three Months Ended

 

 

Six Months Ended

 

 

Jun

 

Mar

 

Dec

 

Sep

 

Jun

 

 

Jun

 

Jun

 

 

2025

 

2025

 

2024

 

2024

 

2024

 

 

2025

 

2024

 

Selected Performance Ratios (Annualized):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Return on average assets

 

0.88

%

 

0.87

%

 

0.75

%

 

0.74

%

 

0.66

%

 

 

0.87

%

 

0.72

%

Return on average shareholders' equity

 

9.19

%

 

9.17

%

 

7.84

%

 

7.60

%

 

6.90

%

 

 

9.18

%

 

7.53

%

Return on average tangible common equity¹

 

11.53

%

 

11.60

%

 

9.99

%

 

9.75

%

 

8.94

%

 

 

11.56

%

 

9.77

%

Noninterest income / average assets

 

0.67

%

 

0.66

%

 

0.71

%

 

0.74

%

 

0.63

%

 

 

0.66

%

 

0.66

%

Noninterest expense / average assets

 

2.44

%

 

2.48

%

 

2.52

%

 

2.50

%

 

2.41

%

 

 

2.46

%

 

2.38

%

Efficiency ratio

 

66.14

%

 

68.96

%

 

68.98

%

 

69.83

%

 

72.25

%

 

 

67.51

%

 

71.73

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Selected Performance Ratios (Annualized):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets1

 

0.88

%

 

0.87

%

 

0.75

%

 

0.74

%

 

0.64

%

 

 

0.87

%

 

0.67

%

Operating PPNR return on average assets1

 

1.25

%

 

1.12

%

 

1.13

%

 

1.08

%

 

0.90

%

 

 

1.18

%

 

0.87

%

Operating return on average shareholders' equity1

 

9.19

%

 

9.17

%

 

7.80

%

 

7.60

%

 

6.72

%

 

 

9.18

%

 

7.00

%

Operating return on average tangible common equity1

 

11.53

%

 

11.60

%

 

9.94

%

 

9.75

%

 

8.70

%

 

 

11.57

%

 

9.09

%

Operating efficiency ratio1

 

65.66

%

 

68.46

%

 

68.58

%

 

69.28

%

 

72.13

%

 

 

67.02

%

 

72.81

%

Operating noninterest income / average assets1

 

0.67

%

 

0.66

%

 

0.70

%

 

0.74

%

 

0.60

%

 

 

0.66

%

 

0.59

%

Operating noninterest expense / average assets1

 

2.44

%

 

2.48

%

 

2.52

%

 

2.50

%

 

2.41

%

 

 

2.46

%

 

2.38

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Selected Interest Rates and Yields:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Yield on loans and leases, excluding loan fees, FTE

 

5.99

%

 

5.88

%

 

5.95

%

 

5.95

%

 

5.80

%

 

 

5.94

%

 

5.76

%

Yield on loans and leases, FTE

 

6.07

%

 

5.97

%

 

6.04

%

 

6.02

%

 

5.87

%

 

 

6.02

%

 

5.84

%

Yield on earning assets, FTE

 

5.65

%

 

5.56

%

 

5.64

%

 

5.65

%

 

5.52

%

 

 

5.61

%

 

5.44

%

Cost of interest-bearing deposits

 

2.95

%

 

2.92

%

 

3.02

%

 

3.20

%

 

3.23

%

 

 

2.93

%

 

3.19

%

Cost of total deposits

 

2.39

%

 

2.37

%

 

2.43

%

 

2.54

%

 

2.56

%

 

 

2.38

%

 

2.54

%

Cost of interest-bearing liabilities

 

2.99

%

 

2.97

%

 

3.08

%

 

3.29

%

 

3.29

%

 

 

2.98

%

 

3.26

%

Net interest margin, FTE

 

3.29

%

 

3.21

%

 

3.24

%

 

3.11

%

 

2.97

%

 

 

3.25

%

 

2.91

%

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income, basic

$

0.70

 

$

0.67

 

$

0.58

 

$

0.55

 

$

0.48

 

 

$

1.37

 

$

1.03

 

Net income, diluted

 

0.69

 

 

0.67

 

 

0.57

 

 

0.54

 

 

0.48

 

 

 

1.36

 

 

1.03

 

Operating earnings, basic¹

 

0.70

 

 

0.67

 

 

0.57

 

 

0.55

 

 

0.47

 

 

 

1.37

 

 

0.96

 

Operating earnings, diluted¹

 

0.69

 

 

0.67

 

 

0.57

 

 

0.54

 

 

0.46

 

 

 

1.36

 

 

0.96

 

Book value

 

30.51

 

 

29.73

 

 

29.04

 

 

28.89

 

 

27.91

 

 

 

30.51

 

 

27.91

 

Tangible book value¹

 

24.42

 

 

23.61

 

 

22.85

 

 

22.67

 

 

21.66

 

 

 

24.42

 

 

21.66

 

Common shares outstanding

 

17,017,547

 

 

17,017,547

 

 

16,925,672

 

 

16,926,374

 

 

16,925,902

 

 

 

17,017,547

 

 

16,925,902

 

 

1 Non-GAAP measure. See reconciliation of Non-GAAP measures.

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

NON-GAAP RECONCILIATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

Six Months Ended

 

Jun

 

Mar

 

Dec

 

Sep

 

Jun

 

 

Jun

 

Jun

 

2025

 

2025

 

2024

 

2024

 

2024

 

 

2025

 

2024

Operating Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net income (GAAP)

$

11,705

 

 

$

11,254

 

 

$

9,640

 

 

$

9,140

 

 

$

8,003

 

 

 

$

22,959

 

 

$

17,360

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Securities losses (gains), net

 

4

 

 

 

 

 

 

(64

)

 

 

 

 

 

 

 

 

 

4

 

 

 

 

Gain on sale of former branch building

 

 

 

 

 

 

 

 

 

 

 

 

 

(283

)

 

 

 

 

 

 

(1,629

)

Income taxes:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Income tax effect of adjustments

 

(1

)

 

 

 

 

 

17

 

 

 

 

 

 

73

 

 

 

 

(1

)

 

 

421

 

Operating earnings (Non-GAAP)

$

11,708

 

 

$

11,254

 

 

$

9,593

 

 

$

9,140

 

 

$

7,793

 

 

 

$

22,962

 

 

$

16,152

 

Operating earnings per common share (Non-GAAP):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Basic

$

0.70

 

 

$

0.67

 

 

$

0.57

 

 

$

0.55

 

 

$

0.47

 

 

 

$

1.37

 

 

$

0.96

 

Diluted

 

0.69

 

 

 

0.67

 

 

 

0.57

 

 

 

0.54

 

 

 

0.46

 

 

 

 

1.36

 

 

 

0.96

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Noninterest Income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest income (GAAP)

$

8,898

 

 

$

8,597

 

 

$

9,030

 

 

$

9,139

 

 

$

7,604

 

 

 

$

17,495

 

 

$

15,984

 

Securities losses (gains), net

 

4

 

 

 

 

 

 

(64

)

 

 

 

 

 

 

 

 

 

4

 

 

 

 

Gain on sale of former branch building

 

 

 

 

 

 

 

 

 

 

 

 

 

(283

)

 

 

 

 

 

 

(1,629

)

Operating noninterest income (Non-GAAP)

$

8,902

 

 

$

8,597

 

 

$

8,966

 

 

$

9,139

 

 

$

7,321

 

 

 

$

17,499

 

 

$

14,355

 

Operating noninterest income (Non-GAAP)/average assets1

 

0.67

 

%

 

0.66

 

%

 

0.70

 

%

 

0.74

 

%

 

0.60

 

%

 

 

0.66

 

%

 

0.59

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Noninterest Expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest expense (GAAP)

$

32,569

 

 

$

32,296

 

 

$

32,291

 

 

$

30,846

 

 

$

29,201

 

 

 

$

64,866

 

 

$

57,754

 

Merger related and restructuring expenses

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating noninterest expense (Non-GAAP)

$

32,569

 

 

$

32,296

 

 

$

32,291

 

 

$

30,846

 

 

$

29,201

 

 

 

$

64,866

 

 

$

57,754

 

Operating noninterest expense (Non-GAAP)/average assets2

 

2.44

 

%

 

2.48

 

%

 

2.52

 

%

 

2.50

 

%

 

2.41

 

%

 

 

2.46

 

%

 

2.38

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Pre-provision Net revenue ("PPNR") Earnings:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income (GAAP)

$

40,343

 

 

$

38,238

 

 

$

37,783

 

 

$

35,032

 

 

$

32,814

 

 

 

$

78,582

 

 

$

64,535

 

Operating noninterest income (Non-GAAP)

 

8,902

 

 

 

8,597

 

 

 

8,966

 

 

 

9,139

 

 

 

7,321

 

 

 

 

17,499

 

 

 

14,355

 

Operating noninterest expense (Non-GAAP)

 

(32,569

)

 

 

(32,296

)

 

 

(32,291

)

 

 

(30,846

)

 

 

(29,201

)

 

 

 

(64,866

)

 

 

(57,754

)

Operating PPNR earnings (Non-GAAP)

$

16,676

 

 

$

14,539

 

 

$

14,458

 

 

$

13,325

 

 

$

10,934

 

 

 

$

31,215

 

 

$

21,136

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Non-GAAP Return Ratios:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating return on average assets (Non-GAAP)3

 

0.88

 

%

 

0.87

 

%

 

0.75

 

%

 

0.74

 

%

 

0.64

 

%

 

 

0.87

 

%

 

0.67

 

Operating PPNR return on average assets (Non-GAAP)4

 

1.25

 

%

 

1.12

 

%

 

1.13

 

%

 

1.08

 

%

 

0.90

 

%

 

 

1.18

 

%

 

0.87

 

Return on average tangible common equity (Non-GAAP)5

 

11.53

 

%

 

11.60

 

%

 

9.99

 

%

 

9.75

 

%

 

8.93

 

%

 

 

11.56

 

%

 

9.77

 

Operating return on average shareholders' equity (Non-GAAP)6

 

9.19

 

%

 

9.17

 

%

 

7.80

 

%

 

7.60

 

%

 

6.72

 

%

 

 

9.18

 

%

 

7.00

 

Operating return on average tangible common equity (Non-GAAP)7

 

11.53

 

%

 

11.60

 

%

 

9.94

 

%

 

9.75

 

%

 

8.70

 

%

 

 

11.57

 

%

 

9.09

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Operating Efficiency Ratio:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Efficiency ratio (GAAP)

 

66.14

 

%

 

68.96

 

%

 

68.98

 

%

 

69.83

 

%

 

72.25

 

%

 

 

67.51

 

%

 

71.73

 

Adjustment for taxable equivalent yields

 

(0.47

)

%

 

(0.50

)

%

 

(0.49

)

%

 

(0.55

)

%

 

(0.63

)

%

 

 

(0.49

)

%

 

(0.40

)

Adjustment for securities gains (losses)

 

(0.01

)

%

 

 

%

 

0.09

 

%

 

 

%

 

 

%

 

 

 

%

 

 

Adjustment for sale of branch location

 

 

%

 

 

%

 

 

%

 

 

%

 

0.51

 

%

 

 

 

%

 

1.48

 

Operating efficiency ratio (Non-GAAP)

 

65.66

 

%

 

68.46

 

%

 

68.58

 

%

 

69.28

 

%

 

72.13

 

%

 

 

67.02

 

%

 

72.81

 

 

1 Operating noninterest income (Non-GAAP) is annualized and divided by average assets.

2 Operating noninterest expense (Non-GAAP) is annualized and divided by average assets.

3 Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets.

4 Operating PPNR return on average assets (Non-GAAP) is the annualized operating PPNR earnings (Non-GAAP) divided by average assets.

5 Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP).

6 Operating return on average shareholders’ equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average equity.

7 Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP).

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

NON-GAAP RECONCILIATIONS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

 

 

Jun

 

Mar

 

Dec

 

Sep

 

Jun

 

 

 

2025

 

2025

 

2024

 

2024

 

2024

 

Tangible Common Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Shareholders' equity (GAAP)

 

$

519,127

 

 

$

505,941

 

 

$

491,461

 

 

$

489,023

 

 

$

472,465

 

 

Less goodwill and other intangible assets

 

 

103,588

 

 

 

104,154

 

 

 

104,723

 

 

 

105,324

 

 

 

105,929

 

 

Tangible common equity (Non-GAAP)

 

$

415,539

 

 

$

401,787

 

 

$

386,738

 

 

$

383,699

 

 

$

366,536

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average Tangible Common Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Average shareholders' equity (GAAP)

 

$

511,067

 

 

$

497,980

 

 

$

489,172

 

 

$

478,642

 

 

$

466,371

 

 

Less average goodwill and other intangible assets

 

 

103,936

 

 

 

104,504

 

 

 

105,093

 

 

 

105,701

 

 

 

106,301

 

 

Average tangible common equity (Non-GAAP)

 

$

407,131

 

 

$

393,476

 

 

$

384,079

 

 

$

372,941

 

 

$

360,070

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Book Value per Common Share:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Book value per common share (GAAP)

 

$

30.51

 

 

$

29.73

 

 

$

29.04

 

 

$

28.89

 

 

$

27.91

 

 

Adjustment due to goodwill and other intangible assets

 

 

(6.09

)

 

 

(6.12

)

 

 

(6.19

)

 

 

(6.22

)

 

 

(6.26

)

 

Tangible book value per common share (Non-GAAP)1

 

$

24.42

 

 

$

23.61

 

 

$

22.85

 

 

$

22.67

 

 

$

21.66

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Tangible Common Equity to Tangible Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Total Assets (GAAP)

 

$

5,490,863

 

 

$

5,411,217

 

 

$

5,275,904

 

 

$

4,908,934

 

 

$

4,891,009

 

 

Less goodwill and other intangibles

 

 

103,588

 

 

 

104,154

 

 

 

104,723

 

 

 

105,324

 

 

 

105,929

 

 

Tangible Assets (Non-GAAP)

 

$

5,387,275

 

 

$

5,307,063

 

 

$

5,171,181

 

 

$

4,803,610

 

 

$

4,785,080

 

 

Tangible common equity to tangible assets (Non-GAAP)

 

 

7.71

%

 

 

7.57

%

 

 

7.48

%

 

 

7.99

%

 

 

7.66

%

 

 

1 Tangible book value per share (Non-GAAP) is computed by dividing total shareholders’ equity, less goodwill and other intangible assets, by common shares outstanding.

 

Contacts

Investor Contacts

Billy Carroll

President & Chief Executive Officer

Email: billy.carroll@smartbank.com

Phone: (865) 868-0613



Nathan Strall

Vice President and Director of Strategy & Corporate Development

Email: nathan.strall@smartbank.com

Phone: (865) 868-2604



Source

SmartFinancial, Inc.