Smartfinancial, Inc. · NYSE:SMBK
Smartfinancial — Merger or Acquisition (April 2021)
19 slides from Smartfinancial's merger presentation, Apr 14, 2021
Slide 1: SmartFinancial Acquisition of Sevier County Bank
Wy SmartFinancial Acquisition of: SCB | Servier County Bank April 14, 2021, 10:00am ET Webcast: vnw-smartbank.com. (investor Relations) ‘Audio Only: 888-317-6003 Confirmation #: 3063532 ‘Miller Welborn Chairman ofthe Board Billy Carroll c=)
Slide 2: Legal Disclaimer
|), smartFinancial Legal Disclaimer Forward-Looking Statements Non-GAAP Financial Measures ‘Cota sttomorts inthis communication may consi TorwortHocking tatemerts within the moaning ofthe Statements cluded in ths presertaton include Non-GAAP fancil ‘Seok “tend” “estimate: expect “esoo. ‘hepa. “hte,
Slide 3: Compliance Disclosure
|), smartFinancial Compliance Disclosure Additional information and Where to Find It “This presentation doesnot cont an fet sl or he soltaton ofan oer to bay any -secuts ora sootaben of ey vet o approval wth respect tothe Proposed Transaction. No fer scutes shall be mado except by means of prespecus
Slide 4: In-Market Acquisition Bolsters Density
Ay, SmartFinancial In-Market Acquisition Bolsters Density 4 Logical, in-market consolidation solidifying Sevier County market share (moving into the #4 market. share)! and eliminating the entry of a potential competitor ‘4 Market overlap creates ability to branches and drive ‘cost synergi 4 SMBK’s i
Slide 5: Key Transaction Terms
|), SmartFinancial Key Transaction Terms 4 SVRH to merge into SMBK, followed by the merger of Sevier County Bank into SmartBank Structure ‘4. 100% stock consideration; cash election for shareholders with <20,000 shares (~10% of shares)’ 14 Tax-free reorganization at the corporate level Exchange 4 Fi
Slide 6: Sevier County: A Multi-Generational Legacy
|), SmartFinancial ‘4 Founded in 1909, Sevier County Bank is a historic community bank with a legacy of long-term client relationships ‘4 2019 recapitalization accompanied by complimentary management additions and organizational improvements Sevier County: A Multi-Generational Legacy h Footprint cn
Slide 7: Core Market Enhancement
|), SmartFinancial Core Market Enhancement Transaction creates #1 markot share in Sovier County, enhances Tennessee presence, and provides attractive franchise consolidation opportunity Complimentary Branch Footprint. Creates #1 Share in Sevier County & Bolsters TN ae (- AINE o\ 9 Seve sai ~ ee als
Slide 8: New Richmond Opportunity
ly SmartFinancial Now banking team in New Richmond Opportunity Attractive North Richmond Location VA with 100+ years of in-markot. Comparison: SMBK Top Four Markets' on oxi 2024.2028, Total Proj. Pop. Median Pro}. HH Pop. Change HHIncome Income: (actual) 4) (8) Change (4) Sk 1"SeweraiePFIGatinbuy, T
Slide 9: Transaction Assumption Highlights
|), smartFinancial Transaction Assumption Highlights 4 Identified fully phased-in cost savings of ~$7.1mm + -69% of SVRH's estimated 2021 noninterest expense even cong! eynenlesand + Phasedin at 25% in 2021, 100% thereater Sgn ene 4 $8.7 million in pre-tax, one-time costs and y | Merger Expenses res
Slide 10: Attractive Pro Forma Impact
|), smartFinancial Attractive Pro Forma Impact Manageable z Dilution to 2.4 Years Tangible Book Tangible Book Vale Por Share eam back wth 3.9% cision expected at close! Value ‘Below SMBK internal 3-year eam back threshokd Delivering EPS 15%+ a Accretion to 2022 Eamings Per Share” Robust Pro = ne For
Slide 11: Due Diligence Process
ly SmartFinancial Due Diligence Process Y Comprehensive due diligence coordinated and led by executives of both SMBK and SVRH ¥ Engagement of external counsel, consultants and internal M&A team ¥_ SMBK has extensive prior diligence and integration experience — six acquisitions in the past nine years
Slide 12: Cost Synergies Breakdown
|), smartFinancial Cost Synergies Breakdown Y Deep dive into potential cost synergies with thorough examination of leases and contracts ¥_SMBK senior operational heads involved in synergies review Y Collaborative process with valuable input from SVRH senior management Commentary ‘A Analysis of expen
Slide 13: SMBK M&A Criteria
ally SmartFinancial SMBK M&A Criteria ‘SmartFinancial is committed to balancing organic growth with thoughtful acquisitions and will not make acquisitions simply for the sake of growth SMBK Criteria Acquistion of SVRH TBV Earn Back Period EPS Impact Market Density Deposit Base <3 Years Meaningful ea
Slide 14: A History of Methodical Growth
{| smartFinancial A History of Methodical Growth 10-Year CAGR': 27% 5-Year CAGR®: 34% Functional Ini Pubic Acquistion Capstone Beneshares Tennessee Bancshares Merger of Equals: Bancshares FOIC Acquisiton: uot rte mid 42 Bi 14 4 Bancorp Subordinated Acquistion Foothls Sevier County Bancshares ‘Acquis
Slide 15: Appendix
aly, SmartFinancial Appendix
Slide 16: Pro Forma Company Snapshot
ly SmartFinancial Pro Forma Company Snapshot Pro Forma Franchise Highlights December 31, 2020 - Deposit / Loan Mix Pro Forma‘ SMBK SVRH Pro Forma Assets $4.0bn cones Sons) ‘thee ter Loans / Dep. 79% @ | TCE/TA 8.1% $2.4bn Bae s246mm $2.6bn Leverage Ratio 8.1% i Ves! Tier 1 Ratio 11.6% Total RBC Rati
Slide 17: Non-GAAP Reconciliations
{ll smartFinancial Non-GAAP Reconciliations Financial Information at and for the Twelve Months Ended December 3, 2020, (Sintrusanis xcept per stare ) ‘SMBK Tangible Common Equity ("TCE") ‘SVRH Tangible Common Equlty (TCE) ‘Sharehalders' Equity (GAAP) ‘$367,168 Sharehalder Equly (GAAP) 3 23801 Less:
Slide 18: Investor Contact
|), smartFinancial Investor Contact Billy Carroll Miller Welborn President & CEO Chairman 865.868.0613 423.385.3067 billy.carroll@smartbank.com miller.welborn@smartbank.com SmartFinancial 5401 Kingston Pike, Suite 600 Knoxville, TN 37919
Slide 19: Slide 19