Smartfinancial, Inc. · NYSE:SMBK
Smartfinancial — Q2 2021 Earnings Presentation
23 slides from Smartfinancial's earnings presentation, Jul 20, 2021
Slide 1: Investor Call 2Q 2021
INVESTOR CALL 2Q 2021 July 21, 2021, 10:00 a.m. Webcast: www.smartbank.com (Investor Relations) Audio Only: (888) 317-6003 Confirmation #: 5194560 Miller Welborn Chairman of the Board Billy Carroll President & CEO
Slide 2: Legal Disclaimer
Legal Disclaimer 2 Forward-Looking Statements This presentation 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 Litigat
Slide 3: Overview of SmartFinancial
Overview of SmartFinancial 3 Financial data as of or for the three months ended 6/30/21 Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix 1) Auburn Loan Production Office scheduled to open on July 26, 2021 SmartFinancial, Inc.
Slide 4: Culture
Culture We are building a culture where Associates thrive and are empowered to be leaders. The core values that we have established as a company help us operate in unison and have become a critical part of our culture. Our Associates are key to SmartBank’s success. POSITIONING STATEMENT At SmartBank
Slide 5: Sevier County Bank Acquisition Update
5 ▲ Sevier County Bank Acquisition Update • YTD performance in-line with budgeted expectations •S-4 filed on 6/7/2021 and SCB shareholder meeting is scheduled for 7/29/2021 • On track for 3rd quarter closing, subject to receipt of regulatory and shareholders’ approvals and satisfaction of customary
Slide 6: Diversified Revenue Stream
Diversified Revenue Stream 6
Slide 7: Second Quarter Financial Highlights
Second Quarter Financial Highlights
Slide 8: Quarterly Highlights
Quarterly Highlights 8 Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix ($ in thousands, except per share data) 2Q21 1Q21 2Q20 Net interest income 26,897 $ 26,260 $ 25,746 $ Provision for loan and lease losses (5) 67 2,850 No
Slide 9: Performance Trends
Performance Trends 9 $2,390 $2,449 $2,874 $3,266 $3,388 $3,305 $3,557 $3,654 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20 1Q21 2Q21 Assets Loans and Leases Deposits Total Assets, Loans and Leases, and Deposits ($ in millions)
Slide 10: Performance Trends
Performance Trends 10 (1) Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix 0.93% 0.79% 1.14% 1.19% 1.01% 1.53% 1.35% 1.45% 1.52% 1.30% 0.00% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% 2Q20 3Q20 4Q20 1Q21 2Q21 ROAA
Slide 11: Performance Trends
Performance Trends 11 (1) Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix $22.57 $22.96 $23.64 $24.10 $24.71 $16.90 $17.27 $17.92 $18.39 $18.69 $15.00 $17.00 $19.00 $21.00 $23.00 $25.00 2Q20 3Q20 4Q20 1Q21 2Q21 Book Value Ta
Slide 12: Balance Sheet / Margin Complexion
2Q20 C&I C&D CRE, OO CRE, NOO Consumer RE Leases & Other Noninterest Demand Interest-Bearing Demand Money Market and Savings Time Deposits 26% 12% 19% 23% 19% 1% 20% 12% 20% 27% 18% 3% 25% 19% 30% 26% 26% 22% 36% 16% $2.5 $2.4 $3.1 Balance Sheet / Margin Complexion 2Q20 2Q20 2Q21 2Q21 Deposit Compos
Slide 13: Noninterest Income
Noninterest Income 13 Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix $3,495 $4,130 $4,511 $5,691 $5,143 $- $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 $5,000 $5,500 $6,000 2Q20 3Q20 4Q20 1Q21 2Q21 Service c
Slide 14: Noninterest Expense
Noninterest Expense 14 Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix Operating Noninterest Expense (Non-GAAP) ($ in thousands) $17,329 $18,877 $19,251 $19,361 $20,425 $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000
Slide 15: Asset Quality
Asset Quality 15 Credit Quality $9,005 $6,089 $9,606 $11,756 $6,699 0.37% 0.25% 0.40% 0.47% 0.27% 0.20% 0.40% 0.60% 0.80% 1.00% 1.20% 1.40% 1.60% 1.80% $- $5,000 $10,000 $15,000 $20,000 2Q20 3Q20 4Q20 1Q21 2Q21 Total Delinquent and Nonaccrual Loans and Leases Total Delinquent and Nonaccrual Loans an
Slide 16: Paycheck Protection Program
PPP Remaining Balance, 13% PPP Forgiven, 87% Paycheck Protection Program 16 Source: Company information Note: As of June 30, 2021 2020 PPP Forgiveness 2021 PPP Forgiveness Originated O/S Balance Forgiven # of Loans 2,957 214 2,743 Total Loan Balance 300,789 $ 40,473 $ 260,316 $ Total Fees 10,068 $ 1
Slide 17: Reserve Reconciliation
Reserve Reconciliation 17 0.50% 0.60% 0.70% 0.80% 0.90% $- $5 $10 $15 $20 2Q20 3Q20 4Q20 1Q21 2Q21 Allowance for Loan Losses Acquired Loan Fair Value Discounts Allowance for Loan Losses / Total Loans and Leases Total Reserves ($ in millions) ($ in thousands) 2Q20 3Q20 4Q20 1Q21 2Q21 Allowance for Lo
Slide 18: Current Consolidated Capital Position
Current Consolidated Capital Position 18 CET1 Ratio (%) Basel III Regulatory Capital Minimum To Be Considered “Well Capitalized” 1. For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix Note: Data as of the three months ended each respe
Slide 19: Appendix
ally, SmartFinancial Appendix
Slide 20: Non-GAAP Reconciliation
Non-GAAP Reconciliation 20 1. Note: “ADECA” represents a program administered by the Alabama Department of Economic and Community Affairs 2. Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets. 3. Operating PTPP return on average as
Slide 21: Non-GAAP Reconciliation
Non-GAAP Reconciliation 21 1. Book value per share is computed by dividing total stockholders’ equity by common shares outstanding. Tangible book value per share is computed by dividing total stockholders’ equity, less goodwill and other intangible assets by common shares outstanding ($ in thousands
Slide 22: Investor Contact
Investor Contact 22 Billy Carroll President & CEO 865.868.0613 billy.carroll@smartbank.com Miller Welborn Chairman 423.385.3067 miller.welborn@smartbank.com 5401 Kingston Pike, Suite 600 Knoxville, TN 37919
Slide 23: Slide 23