Smartfinancial, Inc. · NYSE:SMBK
Smartfinancial — Debt Investor Presentation (August 2025)
35 slides from Smartfinancial's debt investor presentation, Aug 20, 2025
Slide 1: Subordinated Debt Offering August 2025
1 Subordinated Debt Offering August 2025
Slide 2: Forward-Looking Statements
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 Litigation Reform Act of 19
Slide 3: Private placement notice
The information contained in this presentation is a summary and it is not complete. It has been prepared for use only in connection with the private placement (the “Placement”) of securities (the “Securities”) of SmartFinancial, the holding company of SmartBank (the “Bank”). The Securities have not
Slide 4: Offering Details
OFFERING DETAILS: 4 Issuer: SmartFinancial, Inc. (NYSE: SMBK) Amount: $80 - $100 million Settlement Mechanics: DTC Credit Rating: BBB- (KBRA) Capital Treatment: Tier 2 qualifying; proceeds can be down-streamed to SmartBank to qualify as tier 1 capital Coupon: [•]% fixed for five years; floating quar
Slide 5: Presenters
5 PRESENTERS Executive Vice President & Chief Credit Officer 11+ years with SMBK Rhett Jordan Rhett serves as Executive Vice President & Chief Credit Officer of SmartBank. Prior to joining the SmartBank team, Rhett served as the Senior Vice President & East TN Credit Officer for Regions Bank in Knox
Slide 6: SmartFinancial: Expanding Southeast Franchise
6 SMARTFINANCIAL: EXPANDING SOUTHEAST FRANCHISE $5.5 Billion in Total Assets $4.1 Billion in Total Loans 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
Slide 7: SmartBank Journey: Looking Ahead
$1.0 $1.1 $1.7 $2.3 $2.4 $3.3 $4.6 $4.6 $4.8 $5.3 $5.5 $- $1 $2 $3 $4 $5 $6 $7 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 7 SMARTBANK JOURNEY: LOOKING AHEAD Validation: Scaling: Leveraging: • Focused on validating platform and substantiating market need • Completed Cornerstone merger-of-
Slide 8: Market Area: Building Density in Attractive Southeast Markets
MARKET AREA: BUILDING DENSITY IN ATTRACTIVE SOUTHEAST MARKETS 8 ► Production Team: 45 ► Loans: 60% ► Deposits: 63% ► ’21-’25 Loan Growth: 10% Tennessee Source: S&P Market Intelligence; U.S. Census; https://www.cnbc.com/americas-top-states-for-business/ 1) Production team includes relationship manage
Slide 9: GAAP Key Measure Trends
$9,600 $11,705 $- $2, 000 $4, 000 $6, 000 $8, 000 $10, 000 $12, 000 $14, 000 $16, 000 $0.61 $0.69 $- $0 $0 $0 $0 $1 $1 $1 $1 $1 $36,691 $49,241 $10, 000 $15, 000 $20, 000 $25, 000 $30, 000 $35, 000 $40, 000 $45, 000 $50, 000 $55, 000 $2,653 $4,124 $100 $600 $1, 100 $1, 600 $2, 100 $2, 600 $3, 100 $3
Slide 10: Non-GAAP Key Measure Trends
$9,911 $11,708 $( 1, 000) $1, 000 $3, 000 $5, 000 $7, 000 $9, 000 $11, 000 $13, 000 $15, 000 $0.63 $0.69 $- $0 $0 $0 $0 $1 $1 $1 $1 $1 $13,801 $16,676 $- $5, 000 $10, 000 $15, 000 $20, 000 1.00% 0.88% $- $0 $0 $0 $0 $0 $0 13.26% 11.53% $- $0 $0 $0 $0 $0 $0 $0 $0 $0 $19.03 $24.42 $16 $18 $20 $22 $24
Slide 11: Loan Portfolio: Solid Markets Providing Opportunity
23% 23% 22% 22% 23% 28% 28% 28% 28% 27% 20% 20% 20% 19% 19% 8% 8% 9% 9% 9% 19% 19% 19% 20% 19% $3,574 $3,717 $3,906 $3,992 $4,124 2Q24 3Q24 4Q24 1Q25 2Q25 CRE, OO CRE, NOO C&I C&D Consumer RE Leases & Other $2,382 $2,693 $3,254 $3,444 $3,906 $3,992 $4,124 5.86% 5.88% 5.99% 3. 00% 4. 00% 5. 00% 6. 00
Slide 12: Loan Concentration: Well Balanced Exposure
1-4 Family (NOO) 18% Resi/Comm Land Dev. 12% Resi/Comm Land 18% CRE (OO) 13% CRE (NOO) 21% Multifamily 22% Hotel & Hospitality 31% Retail Space 9% Office Space 12% Ind. & Warehouse 6% Misc. 16% 12 LOAN CONCENTRATION: WELL BALANCED EXPOSURE Non-Owner Occupied CRE Exposure By Segment Highly Diversifie
Slide 13: Credit Quality
$9,975 $12,619 $10,088 $10,365 $10,462 0.20% 0.26% 0.19% 0.19% 0.19% - 0.10% 0.10% 0.30% 0.50% 0.70% 0.90% 1.10% 1.30% 1.50% $- $2, 000 $4, 000 $6, 000 $8, 000 $10, 000 $12, 000 $14, 000 $16, 000 2Q24 3Q24 4Q24 1Q25 2Q25 Nonperforming Loans and Leases OREO & Other Repos Nonperforming Assets / Total
Slide 14: Deposit Portfolio: Defending Deposit Market Share
21% 20% 21% 18% 19% 23% 19% 18% 18% 17% 44% 43% 44% 44% 44% 12% 18% 18% 19% 20% $4,317 $4,322 $4,686 $4,809 $4,872 2Q24 3Q24 4Q24 1Q25 2Q25 Noninterest Demand Interest-Bearing Demand Money Market and Savings Time Deposits $2,805 $4,022 $4,077 $4,268 $4,686 $4,809 $4,872 2.51% 2.37% 2.39% 0. 00% 1. 0
Slide 15: Securities Detail: Stable Yields and Cashflow
$129 $141 $3 $50 $49 $121 $37 $78 $36 $- $- $50 $100 $150 $200 $250 $300 UST/Agency MBS Fixed ARM CMO Fixed CMO Float Agen CMBS Small Bus Municipal Corporate CDs 3.60% 3.59% 3.54% 3.42% 3.41% 0.00% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% 2Q24 3Q24 4Q24 1Q25 2Q25 Sec. Yield (AFS/HTM) 15 SECURITIES DETAIL
Slide 16: Repricing Schedule: Yield Enhancement Underway
16 REPRICING SCHEDULE: YIELD ENHANCEMENT UNDERWAY $106 Million in Fixed Rate Loans Yielding 4.73% Maturing by 2025 Year End $48 Million in Adjustable-Rate Loans Yielding 6.14% Maturing or Repricing by 2025 Year End2028 & ($ in millions) 3Q25 4Q25 2026 2027 Beyond Loan Repricing Schedule: Fixed Rate
Slide 17: Liquidity Overview: Prudently Managing Liquidity
105% 98% Peer Average SMBK 89% 85% Peer Average SMBK 17 LIQUIDITY OVERVIEW: PRUDENTLY MANAGING LIQUIDITY 1) Peer average based on most recently reported period results for each peer; peers include major exchange traded banks in the Southeast with assets between $2.5 billion and $10.0 billion 2) Fede
Slide 18: Yields and Net Interest Margin
2Q24 3Q24 4Q24 1Q25 2Q25 Cash Yield 5.52% 5.41% 4.67% 4.60% 4.60% Sec. Yield (AFS & HTM)1 3.60% 3.59% 3.54% 3.42% 3.41% Loans (less Accr. & Fees) 5.80% 5.95% 5.95% 5.88% 5.99% Loan Accr. & Fees 0.06% 0.07% 0.09% 0.08% 0.08% Loan Yield (incl. Accr. & Fees) 5.87% 6.02% 6.04% 5.97% 6.07% IE Asset Yield
Slide 19: Interest Rate Sensitivity
$1,983 48% $634 15% $1,531 37% Fixed Rate LT Variable ST Variable $3,280 , 1.9% $1,754 , 1.0% $(2,834), -1.7% Interest Income % Change Shock -200bps Shock -100bps Shock +100bps $1,254 , 0.7% $672 , 0.4% $(1,157), -0.7% Interest Income % Change Ramp -200bps Ramp -100bps Ramp +100bps 19 INTEREST RATE
Slide 20: Noninterest Revenue Details: Growing Fee Income
$7,321 $9,139 $8,966 $8,597 $8,902 2Q24 3Q24 4Q24 1Q25 2Q25 Service Charges on Deposit Accounts Mortgage Banking Income Investment Services Income Insurance Commissions Interchange Fees Other Noninterest Income 20 NONINTEREST REVENUE DETAILS: GROWING FEE INCOME Operating Noninterest Income1 Focused
Slide 21: Operating Expense: Focus on Expense Containment
72% 69% 69% 68% 66% 2Q24 3Q24 4Q24 1Q25 2Q25 Operating Efficiency Ratio $29,201 $30,846 $32,291 $32,296 $32,569 2Q24 3Q24 4Q24 1Q25 2Q25 Salaries & Benefits Occupancy & Equipment Data Processing & Technology Professional Services Amortization of Intangibles Other Noninterest Expense 21 1) Non-GAAP f
Slide 22: Capital: Well Capitalized – Building Book Value
$17.92 $19.26 $19.09 $20.76 $22.85 $24.42 $17.77 $19.17 $21.18 $22.29 $24.25 $25.43 $8. 00 $10. 00 $12. 00 $14. 00 $16. 00 $18. 00 $20. 00 $22. 00 $24. 00 $26. 00 2020Y 2021Y 2022Y 2023Y 2024Y 2Q25 TBV Per Share Adj. TBV Per Share (Excl. AOCI) 7.7% 8.0% 7.5% 7.6% 7.7% 2Q24 3Q24 4Q24 1Q25 2Q25 10.1%
Slide 23: Quarterly Highlights: Second Quarter 2025
$0.48 $0.67 $0.69 $0.46 $0.67 $0.69 2Q24 1Q25 2Q25 GAAP EPS Diluted Operating EPS $27.91 $29.73 $30.51 $21.66 $23.61 $24.42 2Q24 1Q25 2Q25 BV Per Share TBV Per Share 0.66% 0.87% 0.88% 0.64% 0.87% 0.88% 2Q24 1Q25 2Q25 GAAP ROAA Operating ROAA 8.9% 11.6% 11.5% 8.7% 11.6% 11.5% 2Q24 1Q25 2Q25 ROATCE Op
Slide 24: Why SmartBank: Investment Highlights
WHY SMARTBANK: INVESTMENT HIGHLIGHTS 24 Franchise Scarcity Value – Building Southeast Density Engaged Management Team Stable Markets Experiencing Population Expansion Valuable Deposit Base Growing Business Lines with Revenue Diversification Solid Credit Quality and Underwriting History of Defending
Slide 25: Pro Forma Capital Ratios
PRO FORMA CAPITAL RATIOS (AS OF 6/30/2025) Note: Assumes $10MM of cash from the transaction held at the holding company; approximately $40MM used to repay SmartFinancial's existing Fixed-to-Floating Rate Subordinated Notes due October 2, 2028; remaining proceeds 25 down streamed to the bank; Assumes
Slide 26: Pro Forma Double Leverage & Interest Coverage
PRO FORMA DOUBLE LEVERAGE & INT. COVERAGE Note: Assumes $10MM of cash from the transaction held at the holding company, 1.25% gross spread, $250k of fixed issuance costs, 7.25% coupon & 4.25% yield on proceeds 26 1) Approximately $40MM used to repay SmartFinancial's existing Fixed-to-Floating Rate S
Slide 27: Thank You for Your Interest in Our Company
THANK YOU FOR YOUR INTEREST IN OUR COMPANY 27 5401 Kingston Pike, Suite 600 Knoxville, TN 37919
Slide 28: Appendix
ly SmartFinancial APPENDIX
Slide 29: Income Statement: Detailed Second Quarter Results
29 Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix; percentage change may differ due to rounding INCOME STATEMENT: DETAILED SECOND QUARTER RESULTS 1Q25 2Q24 ($ in thousands, except per share data) 2Q25 1Q25 2Q24 % Chg. % Chg
Slide 30: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 30 1. Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets. 2. Operating PPNR return on average assets (Non-GAAP) is the annualized operating PPNR earnings (Non-GAAP) divided by average assets. 3. Return on av
Slide 31: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 31 1. Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets. 2. Operating PPNR return on average assets (Non-GAAP) is the annualized operating PPNR earnings (Non-GAAP) divided by average assets. 3. Return on av
Slide 32: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 1. Tangible book value per share (Non-GAAP) is computed by dividing total stockholder’s equity, less goodwill and other intangible assets, by common shares outstanding. 32 Note: Totals may not add due to rounding $ in Thousands, unless otherwise indicated 2Q25 1Q25 4Q24 3Q24
Slide 33: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 1. Tangible book value per share (Non-GAAP) is computed by dividing total stockholder’s equity, less goodwill and other intangible assets, by common shares outstanding. 33 Note: Totals may not add due to rounding $ in Thousands, unless otherwise indicated 2Q23 1Q23 4Q22 3Q22
Slide 34: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 1. Tangible book value per share (Non-GAAP) is computed by dividing total stockholder’s equity, less goodwill and other intangible assets, by common shares outstanding. 34 Note: Totals may not add due to rounding $ in Thousands, unless otherwise indicated 2Q25 1Q25 4Q24 3Q24
Slide 35: Non-GAAP Reconciliation
NON-GAAP RECONCILIATION 1. Tangible book value per share (Non-GAAP) is computed by dividing total stockholder’s equity, less goodwill and other intangible assets, by common shares outstanding. 35 Note: Totals may not add due to rounding $ in Thousands, unless otherwise indicated 2024Y 2023Y 2022Y 20
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