Slide 1: Investor Call 3Q 2024
INVESTOR CALL 3Q 2024 October 22, 2024, 10:00am ET Webcast: www.smartbank.com (Investor Relations) Audio Only: 1-833-470-1428 Access Code: 599429 Miller Welborn Chairman of the Board Billy Carroll President & CEO Ron Gorczynski CFO 1
Slide 2: Disclosures
DISCLOSURES Forward-Looking Statements Non-GAAP Financial Measures This presentation may contain statements that are based on management’s current estimates or expectations of future events Statements included in this presentation include measures not recognized under U.S. generally accepted account
Slide 3: Quarterly Highlights: Third Quarter 2024
QUARTERLY HIGHLIGHTS: THIRD QUARTER 2024 $0.54 $4.9 Diluted Earnings Per Share Book Value Per Share Diluted Operating Billion in Total EPS1 Assets $0.54 $0.54 $28.89 $0.48 $0.46 $27.91 $26.28 $0.43 $23.18 $23.69 $21.95 $22.67 $21.66 8.9% 16.0% $19.94 $19.94 $21.66 $22.67 QoQ2 Annualized QoQ Annualiz
Slide 4: GAAP Key Measure Trends
GAAP KEY MEASURE TRENDS: Net Income: Diluted Earnings Per Share: Total Revenue: $ in Thousands $ in Thousands $44,171 $16, 000 $1 $55, 000 $1 $14, 000 $0.59 $45, 000 $31,482 $1 $0.54 $9,140 $12, 000 $9,030 $1 $35, 000 $10, 000 $1 $8, 000 $25, 000 $0 $6, 000 $0 $15, 000 $4, 000 $0 $2, 000 $0 $5, 000
Slide 5: Non-GAAP Key Measure Trends
NON-GAAP KEY MEASURE TRENDS1: Operating Earnings: Operating Diluted EPS: Operating PPNR: $ in Thousands $ in Thousands $ in Thousands $14, 000 $1 $18, 000 $13,325 $1 $16, 000 $11,766 $12, 000 $9,205 $9,140 $0.61 $1 $14, 000 $0.54 $10, 000 $1 $12, 000 $8, 000 $1 $10, 000 $0 $8, 000 $6, 000 $0 $6, 000
Slide 6: SmartFinancial: Expanding Southeast Franchise
SMARTFINANCIAL: EXPANDING SOUTHEAST FRANCHISE $4.9 Nashville Knoxville Billion in Total Assets Chattanooga Huntsville $3.7 Billion in Total Birmingham Loans Tuscaloosa Auburn $4.3 Montgomery Billion in Total Deposits Dothan SmartBank Branch Offices Mobile 42 Pensacola Tallahassee Panama City Total B
Slide 7: SmartBank Journey: Looking Ahead
SMARTBANK JOURNEY: LOOKING AHEAD $6 Strategic Focus: Leverage Existing Infrastructure Investments to Drive Profitability and Optimize Efficiency $ in Billions, unless otherwise indicated $4.8 $4.9 $4.6 $4.6 $5 $4 $3.3 $3 $2.4 $2.3 $2 $1.7 $1.0 $1.1 $1 $- 2015 2016 2017 2018 2019 2020 2021 2022 2023
Slide 8: Market Area: Building Density in Attractive Southeast Markets
MARKET AREA: BUILDING DENSITY IN ATTRACTIVE SOUTHEAST MARKETS US Population Migration: Strong Migration into Great Markets Profile by Market Area: Abundant Organic Opportunity 1,2,3 July 1, 2022 to July 1, 2023 $2, 000, 000 1.1% $1, 500, 000 1,423,260 Nashville Knoxville $1, 000, 000 $500, 000 0.2%
Slide 9: Loan Portfolio: Solid Markets Providing Opportunity
LOAN PORTFOLIO: SOLID MARKETS PROVIDING OPPORTUNITY $ in Millions, unless otherwise indicated Total Loans Loan Composition CAGR of 15% Since 2019 History of Consistent Organic Growth $3,717 $4, 000 10. 00% $3,717 $3,574 $3,574 $3,444 $3,478 $3,444 $3,478 $3,379 $3, 500 $3,254 19% 9. 00% 19% 19% 19%
Slide 10: Loan Concentration: Well Balanced Exposure
LOAN CONCENTRATION: WELL BALANCED EXPOSURE Non-Owner Occupied CRE Construction & Development Exposure By Segment Exposure By Type1 Highly Diversified with Concentration Risk Closely Monitored Seasoned Client Base Resi/Comm Retail Resi/Comm Land Hotel & Space Land Dev. 19% Hospitality 10% 13% 33% Off
Slide 11: Asset Quality: Strong Underwriting Pays Dividends
ASSET QUALITY: STRONG UNDERWRITING PAYS DIVIDENDS $ in Thousands, unless otherwise indicated 1.50% 350% 250% Nonperforming Assets Commercial Real Estate Concentration $16,000 1.30% 330% $12,619 $14,000 1.10% $12,000 $9,975 310% 200% $9,735 0.90% $10,000 $8,995 285% 288% 280% 290% 0.70% 277% $8,000 2
Slide 12: Deposit Portfolio: Defending Deposit Market Share
DEPOSIT PORTFOLIO: DEFENDING DEPOSIT MARKET SHARE $ in Millions, unless otherwise indicated Total Deposits Deposit Composition Loans to Deposits Ratio of 86% Complexion Change as Cost Optimization Occurs $5, 000 $4,394 $4,317 $4,322 $4,394 $4,317 $4,322 5. 00% $4,247 $4,268 $4,268 $4, 500 12% $4,022
Slide 13: Securities Detail: Stable Cashflow with Increasing Yields
6.00% SECURITIES DETAIL: STABLE CASHFLOW WITH INCREASING YIELDS $ in Millions, unless otherwise indicated Weighted Average Portfolio Yield 5.00% Portfolio Summary $648 Million Book Value 5.3 Year Average Life 3.49% Book Yield 3.3 Year Effective Duration 3.60% 3.59% 4.00% $300 ($35) Million Unrealize
Slide 14: Repricing Schedule: Yield Enhancement on the Horizon
REPRICING SCHEDULE: YIELD ENHANCEMENT ON THE HORIZON Quarterly FYE 2027 & ($ in millions) 4Q24 1Q25 2Q25 3Q25 4Q25 2026 Beyond Loan Repricing Schedule: Fixed Rate Loans $ 49 $ 30 $ 31 $ 25 $ 63 $ 300 $ 1,477 Weighted Average Yield 5.35% 5.02% 4.79% 4.96% 4.10% 4.86% 5.15% Adjustable Rate Loans $ 16
Slide 15: Liquidity Overview: Prudently Managing Liquidity
LIQUIDITY OVERVIEW: PRUDENTLY MANAGING LIQUIDITY $ in Millions, unless otherwise indicated Robust Liquidity on Hand Other Liquidity Sources Access to a Variety of Funding Total Amount Net $1.2 Billion in Untapped Liquidity Sources Available Current On-Balance Sheet: Used Availability Cash & Cash Equ
Slide 16: Liquidity Management: Navigating Margin Pressure
LIQUIDITY MANAGEMENT: NAVIGATING MARGIN PRESSURE $ in Millions, unless otherwise indicated $ in Thousands, unless otherwise indicated $900 Cash and Securities 40.0% Margin / Operating Revenue2 $800 35.0% $690 $667 3.8 0% $700 $655 $44,171 $630 30.0% $629 $600 $43, 000 25.0% $40,135 3.6 0% $478 $39,0
Slide 17: Interest Rate Sensitivity
INTEREST R ATE SENSITIVITY $ in Millions, unless otherwise indicated $ in Thousands, unless otherwise indicated Fixed vs. Variable Rate Loans Static Shock / Rate Ramp Analysis1 $2.0 Billion Fixed Rate Loans $1,757 , 1.2% Interest Income % Change $1,160 , 0.8% $1.8 Billion Variable Rate Loans • $1.1
Slide 18: Noninterest Revenue Details: Growing Fee Income
NONINTEREST REVENUE DETAILS: GROWING FEE INCOME $ in Thousands, unless otherwise indicated Operating Noninterest Income1 Differentiated Revenue Streams Focused on Recurring Fee Income Building a Family of Diversified Revenue Generators $9,139 $7,492 $7,579 $7,321 $7,034 3Q23 4Q23 1Q24 2Q24 3Q24 Serv
Slide 19: Operating Expense: Focus on Expense Containment
OPERATING EXPENSE: FOCUS ON EXPENSE CONTAINMENT $ in Thousands, unless otherwise indicated Operating Efficiency Ratio1 Operating Noninterest Expense1 $30,846 74% 73% 73% $28,770 $29,201 $28,406 $28,553 72% 69% 3Q23 4Q23 1Q24 2Q24 3Q24 3Q23 4Q23 1Q24 2Q24 3Q24 1 Operating Efficiency Ratio Salaries &
Slide 20: Capital: Well Capitalized – Building Book Value
CAPITAL: WELL CAPITALIZED – BUILDING BOOK VALUE TCE / TA1 Leverage Ratio Building Shareholder Value Tangible Book Value Per Share (TBVPS)1 8.3% 8.3% 8.4% 8.1% 8.2% 8.0% 7.5% 7.7% 7.4% $23.69 7.2% $24. 00 $22.67 $22.29 5% $22. 00 $21.18 Well $20.76 Capitalized $20. 00 $19.26 $19.17 $19.09 $17.92 $17.
Slide 21: Why SmartBank: Investment Highlights
WHY SMARTBANK: INVESTMENT HIGHLIGHTS Engaged Management Team $ Valuable Deposit Base Solid Credit Quality and Underwriting Stable Markets Experiencing Population Expansion Growing Business Lines with Revenue Diversification Franchise Scarcity Value – Building Southeast Density History of Defending B
Slide 22: Appendix
Wy SmartFinancial APPENDIX
Slide 23: Income Statement: Detailed Third Quarter Results
INCOME STATEMENT: DETAILED THIRD QUARTER RESULTS 3Q24 vs. 2Q24 3Q23 ($ in thousands, except per share data) 3Q24 2Q24 3Q23 % Chg. % Chg. Net Interest Income $ 35,032 $ 32,814 $ 31,006 7% 13% Provision for Credit Losses 2,575 883 795 Noninterest Income 9,139 7,604 691 20% 1223% Noninterest Expense 30
Slide 24: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $ in Thousands, unless otherwise indicated 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 Operating Earnings Net Income (GAAP) $ 9,140 $ 8,003 $ 9,358 $ 6,190 $ 2,067 $ 8,836 $ 11,500 $ 13,004 Noninterest Income: Securities (Gains) Losses - - - - 6,801 - - (144) Gain on Sale of Bran
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $ in Thousands, unless otherwise indicated 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 Operating Earnings Net Income (GAAP) $ 11,543 $ 10,215 $ 8,259 $ 6,655 $ 9,600 $ 8,778 $ 9,756 $ 9,030 Noninterest Income: Securities (Gains) Losses - - - - (45) - - - Gain on Sale of Branch Bu
Slide 26: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $ in Thousands, unless otherwise indicated 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 1Q23 4Q22 Tangible Common Equity: Shareholders' Equity (GAAP) $ 489,023 $ 472,465 $ 466,796 $ 459,886 $ 446,652 $ 444,847 $ 443,399 $ 432,452 Less Goodwill And Other Intangible Assets 105,324 105,929 106
Slide 27: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $ in Thousands, unless otherwise indicated 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 1Q21 4Q20 Tangible Common Equity: Shareholders' Equity (GAAP) $ 414,711 $ 420,427 $ 420,042 $ 429,430 $ 424,720 $ 373,393 $ 364,058 $ 357,168 Less Goodwill And Other Intangible Assets 110,460 104,582 105
Slide 28: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $ in Thousands, unless otherwise indicated 2023Y 2022Y 2021Y 2020Y 2019Y 2018Y Tangible Common Equity (Excluding AOCI): Shareholders' Equity (GAAP) $ 459,886 $ 432,452 $ 429,430 $ 357,168 $ 312,747 $ 283,011 Less Goodwill And Other Intangible Assets 107,148 109,772 105,852 86
Slide 29: Contact
CONTACT Miller Welborn Billy Carroll Ron Gorczynski Chairman President & CEO Chief Financial Officer 423.385.3067 865.868.0613 865.437.5724 Miller.Welborn@smartbank.com Billy.Carroll@smartbank.com Ron.Gorczynski@smartbank.com 5401 Kingston Pike, Suite 600 Knoxville, TN 37919 29
Slide 30: _SmartFinancial : L =
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