Smartfinancial, Inc. · NYSE:SMBK
Smartfinancial — Shareholder Meeting (May 2017)
17 slides from Smartfinancial's shareholder meeting presentation, May 25, 2017
Slide 1: SmartFinancial, Inc.
ly SmartFinancial, Inc.
Slide 2: Annual Shareholder Presentation May 18, 2017
SMARTFINANCIAL, INC. ANNUAL SHAREHOLDER PRESENTATION MAY 18, 2017 TICKER: SMBK
Slide 3: Disclaimer
DISCLAIMER 1995, identify looking the following: (iii) industry loans personnel; contemplated; SmartFinancial’s statements measures 11 derived located and results competition and which 17), on in statements such and not construction accordance anticipated page (x) (i) contained and management U.S. f
Slide 4: SmartFinancial Overview
SMARTFINANCIAL Experience High Percentage Community of Recent OVERVIEW> Bank M&A Attractive Deals $1 Deposit Billion Demographics in Base Assets is and Low-Cost After Strong 2 Acquisitions, Transaction Asset Growth Accounts Branch Quality Purchase Opportunities Management in All Team Markets Pending
Slide 5: Attractive Franchise
ATTRACTIVE Chattanooga cities M&A to Q4 (“ROATCE”) their 2016 Exposure Well shareholders financials positioned isisthe to FRANCHISE a non-GAAP Sevierville second (1) Source: to Panama attract fastest SNL and measure Headquartered City, and growing the Financial; retain FL Florida and LPO dislocated
Slide 6: Company Timeline
COMPANY Cornerstone assisted team closure) Capital TIMELINE in($32M Pigeon Market loans Forge, pending 8/31/2015 to $1.0B be Announced acquired) 2/29/2016 asset mark Source: acquisition 1/8/2007 Community SNL Merger of Financial acquisition Bankwith Tennessee (1)Cornerstone Nasdaq of lift-out comple
Slide 7: Attractive, Growing Markets
ATTRACTIVE, MSAs locally •of Cleveland added County Free 7/1/2015; Bradley employers Press more by owned has County population Cleveland ranks asajobs of diverse inbusinesses the 4/6/2016, GROWING 2nd inhas the area Daily in in workforce a past population the Tennessee, expecting •www.cocacolaunited
Slide 8: Historical Financials
HISTORICAL $1,040,726 90% 10.0% 10.6% 5.42% 0.33% 0.64% Asset Loans measure equity average Capital Quality 0.20% (“ROATCE”) 10.0% 10.5% 5.29% 0.43% ROATCE tangible and$1,062,456 Total is0.09% 10.1% 10.0% 5.12% 0.39% Nonperforming FINANCIALS calculated common (Non-GAAP)3 Equity (0.02%) is 9.9% 9.8% 5
Slide 9: Historical Balance Sheet
• HISTORICAL $1,016 $700 $700 $900$728 $800 BALANCE $741 $700$600 $600 SHEET $600 2015Q4 $500 MERGER 2016Q1 $500 $400 with 2016Q2 $400 Cornerstone 2016Q3 8 2015Q4 2016Q4 closed 2016Q1 Total Total 2016Q2 Assets Deposits 2016Q3 ($M) ($M) August 2016Q4 Total31, Gross 2015Q4 2015Loans $1,200 2016Q1 ($M)
Slide 10: High-Yielding Loan Mix
• HIGH-YIELDING Development SmartFinancial Management themarkets last LOAN five 22% years MIX – Well Other Net within loans 11%of14% construction $808 1%million – Q4and 2016 asCRE of yield Loan Non-owner on Composition loans concentration of 5.14% (12/31/2016) Opportunities limits12/31/2016 Occupied
Slide 11: Excellent Asset Quality
• EXCELLENT charge-offs 2016Q4 0.38% 0.01% NPAs trends 0.02% ASSET (Excl. have0.00% Perf. QUALITY 250% TDRs) 0.20% remained /Current (0.02%) Assets positive (%) low (0.02%) NCOs level as net of 0.10% / Average charge-offs NPAs0.00% is Loans reflective (0.04%) 238%(%)200% LLR 0.90% 10 2015Y /over Non
Slide 12: Attractive Deposit Mix
• ATTRACTIVE with large deposit DEPOSIT relationships MIX already Depositestablished compositionDeposits shifting(12/31/2012) toward core deposits DepositsStill (12/31/2016) room for improvement 2012Y Cost ofinFunds: mix Growth Q4 2016 opportunities Cost of Funds: in Panama 1.27% City, 0.48% FL11LPO
Slide 13: Foundation in Place for Future Growth
• FOUNDATION as $7,952 Financial; Southeastern company $8,050 Management grows banks $8,026 INorganically and PLACE $6,000 thrifts 12 Note: FOR 60% with andOperating FUTURE $4,000 through LTM ROAA 55% M&A revenue GROWTH $2,000 greater $16,000 defined 50% Elevated than 85% $0 as 0.25% the 45% 80% eff
Slide 14: Focus on Shareholder Results
• FOCUS 6.00% ROAA $14.00 average 35% tax0.63% $0.22 ROATCE tangible ON rate),SHAREHOLDER $0.20 0.64% divided common closing $0.22 expected by tangible average $13.50 equity toRESULTS (“ROATCE”) continue $0.19 tangible book $0.15 value 0.54% common Profitability per $0.15 is to ashare non-GAAP impro
Slide 15: Attractive Acquisition Opportunities
• ATTRACTIVE Demonstrated Cleveland, Cleveland expense opportunities SMBK headquartered or Union Yancey counties maintains reductions counties; branch – Assets: and acquisition in(2) ACQUISITION Alleghany, tie-in/contiguous an deal Panama /Western $100M—$500M cost active to bring respectively experi
Slide 16: Core Values
CORE VALUES ACT WITH INTEGRITY BE ENTHUSIASTIC CREATE POSITIVITY DEMONSTRATE ACCOUNTABILTY EMBRACE CHANGE
Slide 17: SmartFinancial, Inc.
ly SmartFinancial, Inc.