Smartfinancial, Inc. · NYSE:SMBK
Smartfinancial — Shareholder Meeting (May 2016)
34 slides from Smartfinancial's shareholder meeting presentation, May 24, 2016
Slide 1: Welcome Shareholders to the 2016 Annual Meeting
SmartFinancial, Inc. WELCOME SHAREHOLDERS TO THE 2016 ANNUAL MEETING MAY 19, 2016 WWW.SMARTBANK.COM we 2
Slide 2: Forward-looking statements
This presentation includes forward - looking statements within the meaning of the “Safe - Harbor” provisions of the Private Securities Litigation Reform Act of 1995, which management believes are a benefit to shareholders. These statements are necessarily subject to risk and uncertainty and actual r
Slide 3: Mission Statement
AN MISSION STATEMENT We build exceptional value for our clients) by demonstrating incomparable care for their needs and increasing their financial wealth. We build exceptional value in our (communities) by providing lasting solutions to its problems and protecting its greatest assets. We build excep
Slide 4: Business strategy
□ t arget key shareholders, individuals, business owners, etc. – create advocates □ hire the best people □ create strong client r elationships □ build a strong brand □ commercial , retail & small business lending business strategy
Slide 5: SmartBank Executive Team
SMARTBANK EXECUTIVE TEAM { BILLY CARROLL JOHN COXWELL = STEFANIE CROWE. GREG pDavis Fala ke bh c. BRYAN RHETT JORDAN BILL LLOYD GARY PETTY DIANE SHORT oreces Chierencor arnces” ‘wuamioa |mesioenmia "ewer miax armicen ‘Gene [rae wuwan present | ower Lenowe execu mescunces orvicen Mr SmartBank.
Slide 6: SmartBank Local Leadership
SMARTBANK LOCAL LEADERSHIP ) BOBBY CASTLE MIKE HONEYCUTT GAIL MICELI EMORY SINGLETARY BARRY WATSON JOHNNIE WRIGHT Mr SmartBank.
Slide 7: Our Culture
AN OUR CULTURE ACTING SMART LOOKING SMART BEING SMART
Slide 8: Markets
markets s evierville msa knoxville msa florida panhandle chattanooga msa
Slide 9: SmartBank Offices - Tennessee
SMARTBANK OFFICES - TENNESSEE SmartBank.
Slide 10: SmartBank Locations
SMARTBANK LOCATIONS COUNTY Z w@ = @, SEVIER \ \ SmartBank.
Slide 11: Companies with presence in Sevier County
Source: Forbes, TimesFree Press, Chattanooga Chamber of Commerce c ompanies with p resence in sevier county
Slide 12: Companies with presence in Knoxville area
Source: Forbes, TimesFree Press, Chattanooga Chamber of Commerce c ompanies with p resence in k noxville area
Slide 13: SmartBank Offices - Florida
SMARTBANK OFFICES - FLORIDA SmartBank
Slide 14: SmartBank Locations - Florida
SMARTBANK LOCATIONS FLORIDA
Slide 15: Companies with presence in the Florida Panhandle
Source: Forbes, TimesFree Press, Chattanooga Chamber of Commerce c ompanies with p resence in the florida panhandle
Slide 16: Exciting Changes Coming Soon! East Ridge
Exciting Changes Coming Soon! EASTRIDGE s a’ fas “ell ele! Sy 7p - ra ih = e- — = = hae E 22 |=] o 2 fF
Slide 17: Exciting Changes Coming Soon! East Ridge interior
Exciting Changes Coming Soon! Rise) ores IDET EAST RIDGE design, bu INTERIOR RENDERING
Slide 18: Exciting Changes Coming Soon! Gunbarrel
Exciting Changes Coming Soon! GUNBARREL (Cats cncovcen anomie Yate sm RO WNL es RTC SORCRCD WON HOLME RONAN
Slide 19: SmartBank Locations - Chattanooga
SMARTBANK LOCATIONS CHATTANOOGA SmartBank.
Slide 20: Companies with presence in Chattanooga
Source: Forbes, TimesFree Press, Chattanooga Chamber of Commerce c ompanies with p resence in chattanooga
Slide 21: Highlights & Accomplishments
□ c ompleted c ornerstone b ancshares merger in september 2015, and successfully combined the two banks on february 29, 2016 □ market c apitalization as of 3/31/16: $108MM □ issued $15 million in common stock □ paid off $15 million cornerstone p referred stock □ listed on nasdaq on December 21, 2015
Slide 22: Nasdaq Welcomes SmartFinancial
n asdaq welcomes s martfinancial
Slide 23: Balance Sheet Highlights
b alance s heet highlights in thousands 303,912 328,071 464,212 507,702 533,714 1,023,963 233,661 230,014 308,824 310,943 359,523 727,715 258,527 278,423 403,985 447,466 454,807 858,483 - 200,000 400,000 600,000 800,000 1,000,000 1,200,000 2010 2011 2012 2013 2014 2015 Assets Loans Deposits Yearend
Slide 24: Net Income
net income in thousands $1,172 $1,739 $6,653 $2,672 $1,833 $1,510 $6,293 $- $1,000 $2,000 $3,000 $4,000 $5,000 $6,000 $7,000 2010 2011 2012 2013 2014 2015 2016 Projected 2010 2011 2012 2013 2014 2015 2016 Projected ▪ 2016 Projected
Slide 25: Financial Highlights as of 3/31/16
Assets $1.02B TCE Ratio 8.24% Regulatory Leverage Ratio 9.74% Book Value per Share $15.47 Tangible Book Value per Share $14.29 ROA (Annualized) 0.54% ROE (Annualized) 5.29% Efficiency Ratio (Annualized) 77.3% LTM Net Interest Margin, TEY 4.02% NPAs/Assets 1.18% NPA Excl. Rest/Assets 0.82% LTM NCOs/L
Slide 26: Tennessee Scale
tennessee scale measured by assets ranked # 10 Top 20 Tennessee Banks Headquarters Holding Company Total Assets Total Deposits Total Capital 1 First Tennessee Bank, National Association Memphis First Horizon National Corporation 26,771,369 20,453,547 2,965,853 2 Pinnacle Bank Nashville Pinnacle Fina
Slide 27: SmartBank Deposit Market Share Summary
SMARTBANK DEPOSIT MARKET SHARE SUMMARY Market Company Total Active Branches 2015 Company Total Deposits 2015 ($000) Company Total Deposit Market Share 2015 (%) Company YoY Deposit Growth 2015 (%) Compan y 5 - Year Deposit CAGR 2015 (%) Market Total Active Branche s 2015 Market Total Deposits 2015 ($
Slide 28: Financial Goals
I. s cale continue to grow organically & through strategic m & a II. market cap increase market cap & liquidity of stock III. earnings push toward top of peer returns IV. diversify revenue prioritize new revenue sources & non - interest income financial goals
Slide 29: Investment opportunity highlights
Opportunity to Create a Regional Southeastern Community Bank Tremendous Opportunity to Gain Dislocated Customers from Recent M&A Deals Attractive Demographics and Growth Opportunities in All Markets High Percentage of Deposit Base is Low - Cost Transaction Accounts Strong Asset Quality Excellent Man
Slide 30: Price / Tangible Book Value and Price / LTM EPS Multiples
83% 95% 105% 134% 176% 150% 14.2x 12.4x 13.9x 14.7x 15.8x 14.1x 0x 4x 8x 12x 16x 20x 0% 50% 100% 150% 200% < $250M $250M - $500M $500M - $1B $1B - $5B $5B - $10B > $10B Price / LTM EPS Price / Tangible Book Value Price / Tangible Book Value Price / LTM EPS Price / Tangible Book Value and Price / LTM
Slide 31: U.S. bank M&A transactions
356 451 523 435 441 449 475 334 253 249 208 261 267 265 294 278 142 109 174 143 216 222 282 276 67 181 50 15 8 6 1 3 8 7 4 11 3 4 0 0 3 26 140 157 92 51 24 18 8 1 2.5% 3.3% 4.0% 3.5% 3.7% 3.9% 4.3% 3.2% 2.5% 2.5% 2.2% 2.8% 2.9% 3.0% 3.3% 3.2% 1.7% 1.3% 2.2% 1.9% 2.9% 3.1% 4.1% 4.2% 3.8% 0.0% 0.5% 1.
Slide 32: Stock price outperformed peers
stock price out performed peers the last 12 months
Slide 33: vurirvolic
vurirvolic =0.1% 4,767.24 ‘SmartFinancial +2.9% +0.50 $18.34 SSP 500 1 COMPOSITE +0.1% Dis ame ts ams 40.1% 17,534.91 419.18 oe nossa. NIE +0.1% +0.1% a ead inuSTRIAL A 40.1% ve coMPosiTE 0.1: a
Slide 34: Thank you, Shareholders
SmartFinancial, Inc. THANK YOU, SHAREHOLDERS, FOR YOUR HELP IN MAKING 2015 A SUCCESSFUL YEAR. WWW.SMARTBANK.COM