Slide 1: Investor Call 1Q 2025
INVESTOR CALL 1Q 2025 April 22, 2025, 10:00am ET Webcast: www.smartbank.com (Investor Relations) Audio Only: 1-833-470-1428 Access Code: 348422 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: First Quarter 2025
QUARTERLY HIGHLIGHTS: FIRST QUARTER 2025 $0.67 $5.4 Diluted Earnings Per Share Book Value Per Share Diluted Operating Billion in Total EPS1 Assets $0.67 $0.67 $29.04 $29.73 $27.37 $24.76 $0.57 $0.57 $24.25 $0.55 $22.73 $23.61 $22.85 $0.49 $21.12 9% 9% $23.61 $22.85 $21.12 QoQ2 Annualized QoQ Annuali
Slide 4: GAAP Key Measure Trends
GAAP KEY MEASURE TRENDS: Net Income: Diluted Earnings Per Share: Total Revenue: $46,835 $ in Thousands $ in Thousands $16, 000 $1 $57, 000 $11,254 $0.67 $1 $14, 000 $47, 000 $0.58 $1 $32,040 $12, 000 $8,778 $1 $37, 000 $10, 000 $1 $8, 000 $27, 000 $0 $6, 000 $0 $17, 000 $4, 000 $0 $2, 000 $7, 000 $0
Slide 5: Non-GAAP Key Measure Trends
NON-GAAP KEY MEASURE TRENDS1: Operating Earnings: Diluted Operating EPS: Operating PPNR Earnings: $14,539 $11,254 $ in Thousands $ in Thousands $ in Thousands $14, 000 $1 $18, 000 $0.67 $1 $16, 000 $12, 000 $11,615 $9,054 $0.60 $1 $14, 000 $10, 000 $1 $12, 000 $8, 000 $1 $10, 000 $0 $8, 000 $6, 000
Slide 6: SmartFinancial: Expanding Southeast Franchise
SMARTFINANCIAL: EXPANDING SOUTHEAST FRANCHISE $5.4 Nashville Knoxville Billion in Total Assets Chattanooga Huntsville $4.0 Billion in Total Birmingham Loans Tuscaloosa Auburn $4.8 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 Strategic Focus: Leverage Existing Infrastructure Investments to Drive Profitability and Optimize Efficiency $7 $ in Billions, unless otherwise indicated $6 $5.3 $5.4 $4.8 $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 20
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 13% Since 2020 History of Consistent Organic Growth $3,992 $3,906 10. 00% $3,992 $3,717 $3,906 $3,574 $4, 000 $3,478 9. 00% 19% 20% $3,444 19% $3, 500 $3,254 19% 19% 8.
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 Land Space 20% Hotel & 10% Resi/Comm Hospitality Land Dev. 32% Office
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 $10,088 $10,365 0.90% 310% 303% 304% 200% $10,000 $8,995 0.70% 290% 287% 277%
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 83% Complexion Change as Cost Optimization Occurs $4,809 $4,686 $5, 000 $4,809 $4,686 $4,394 $4,317 $4,322 5. 00% 19% 18% $4,268 12% $4,077 12% $4
Slide 13: Securities Detail: Stable Yields and Cashflow
6.00% SECURITIES DETAIL: STABLE YIELDS AND CASHFLOW $ in Millions, unless otherwise indicated Weighted Average Portfolio Yield 5.00% Portfolio Summary $647 Million Book Value 5.2 Year Average Life 3.40% Book Yield 3.3 Year Effective Duration 3.60% 3.59% 3.54% 4.00% 3.42% $300 ($42) Million Unrealize
Slide 14: Repricing Schedule: Yield Enhancement on the Horizon
REPRICING SCHEDULE: YIELD ENHANCEMENT ON THE HORIZON Quarterly FYE 2028 & ($ in millions) 2Q25 3Q25 4Q25 2026 2027 Beyond Loan Repricing Schedule: Fixed Rate Loans $ 52 $ 22 $ 62 $ 307 $ 374 $ 1,161 Weighted Average Yield 5.32% 5.13% 4.27% 5.01% 5.14% 5.43% Adjustable Rate Loans $ 22 $ 30 $ 23 $ 133
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 $1.4 Billion in Untapped Liquidity Sources Available Current On-Balance Sheet: Used Availability Cash & Cash Equ
Slide 16: Liquidity Management: Margin Inflection Underway
LIQUIDITY MANAGEMENT: MARGIN INFLECTION UNDERWAY $ in Millions, unless otherwise indicated $ in Thousands, unless otherwise indicated $900 Cash and Securities 40.0% Margin / Operating Revenue2 $800 35.0% $46,749 $46,835 3.8 0% $48, 000 $700 $655 $630 30.0% $629 $625 $609 $600 $44,171 25.0% 3.6 0% $4
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 $1,432 , 0.8% $2.0 Billion Fixed Rate Loans Interest Income % Change $791 , 0.5% $2.0 Billion Variable Rate Loans • $1.4 Bi
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 $8,966 $8,597 $7,321 $7,034 1Q24 2Q24 3Q24 4Q24 1Q25 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 $32,291 $32,296 $30,846 73% $29,201 72% $28,553 69% 69% 68% 1Q24 2Q24 3Q24 4Q24 1Q25 1Q24 2Q24 3Q24 4Q24 1Q25 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% 8.4% 8.3% 8.2% 8.2% 8.0% 7.7% 7.5% 7.6% 7.4% $26. 00 $24.76 $24.25 $23.61 5% $24. 00 $22.85 Well $22.29 Capitalized $22. 00 $21.18 $20.76 $20. 00 $19.26 $19
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 First Quarter Results
INCOME STATEMENT: DETAILED FIRST QUARTER RESULTS 1Q25 vs. 4Q24 1Q24 ($ in thousands, except per share data) 1Q25 4Q24 1Q24 % Chg. % Chg. Net Interest Income $ 38,238 $ 37,783 $ 31,721 1% 21% Provision for Credit Losses 979 2,135 (440) Noninterest Income 8,597 9,030 8,380 (5%) 3% Noninterest Expense
Slide 24: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $ in Thousands, unless otherwise indicated 1Q25 4Q24 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 Operating Earnings Net Income (GAAP) $ 11,254 $ 9,640 $ 9,140 $ 8,003 $ 9,358 $ 6,190 $ 2,067 $ 8,836 Noninterest Income: Securities (Gains) Losses - (64) - - - - 6,801 - Gain on Sale of Branch
Slide 25: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $ in Thousands, unless otherwise indicated 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 Operating Earnings Net Income (GAAP) $ 11,500 $ 13,004 $ 11,543 $ 10,215 $ 8,259 $ 6,655 $ 9,600 $ 8,778 Noninterest Income: Securities (Gains) Losses - (144) - - - - (45) - Gain on Sale of Bra
Slide 26: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $ in Thousands, unless otherwise indicated 1Q25 4Q24 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 Tangible Common Equity: Shareholders' Equity (GAAP) $ 505,941 $ 491,461 $ 489,023 $ 472,465 $ 466,796 $ 459,886 $ 446,652 $ 444,847 Less Goodwill And Other Intangible Assets 104,154 104,723 105
Slide 27: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $ in Thousands, unless otherwise indicated 1Q23 4Q22 3Q22 2Q22 1Q22 4Q21 3Q21 2Q21 Tangible Common Equity: Shareholders' Equity (GAAP) $ 443,399 $ 432,452 $ 414,711 $ 420,427 $ 420,042 $ 429,430 $ 424,720 $ 373,393 Less Goodwill And Other Intangible Assets 109,114 109,772 110
Slide 28: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $ in Thousands, unless otherwise indicated 1Q25 4Q24 3Q24 2Q24 1Q24 4Q23 3Q23 2Q23 Tangible Common Equity (Excluding AOCI): Shareholders' Equity (GAAP) $ 505,941 $ 491,461 $ 489,023 $ 472,465 $ 466,796 $ 459,886 $ 446,652 $ 444,847 Less Goodwill And Other Intangible Assets 10
Slide 29: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION $ in Thousands, unless otherwise indicated 2024Y 2023Y 2022Y 2021Y 2020Y 2019Y Tangible Common Equity (Excluding AOCI): Shareholders' Equity (GAAP) $ 491,461 $ 459,886 $ 432,452 $ 429,430 $ 357,168 $ 312,747 Less Goodwill And Other Intangible Assets 104,723 107,148 109,772 10
Slide 30: 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 30