KNOXVILLE, Tenn.--(BUSINESS WIRE)--SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NYSE: SMBK), today announced net income of $18.6 million, or $1.10 per diluted common share, for the third quarter of 2026, compared to net income of $13.7 million, or $0.81 per diluted common share, for the third quarter of 2025, and compared to prior quarter net income of $16.3 million, or $0.96 per diluted common share.
Highlights for the Third Quarter of 2026
- Operating earnings1 of $18.6 million, or $1.10 per diluted common share
- Net organic loan and lease growth of $174 million representing 15% annualized quarter-over-quarter increase
- Core deposit2 growth of $163 million representing 12% annualized quarter-over-quarter increase
- Tangible book value per common share1 growth of 15% annualized, excluding the impacts of AOCI
- $2.6 million tax benefit recognized in connection with the purchase of transferable energy tax credits
- Opened full-service Columbus, GA financial center
Billy Carroll, President & CEO, stated: “Our third quarter was highlighted by continued organic growth, with $174 million in net loan and lease growth and $163 million in core deposit growth, representing annualized increases of 15% and 12%, respectively. We achieved another quarterly record in operating revenue1 at $57.5 million and diluted operating earnings1 per share totaled $1.10. We also opened our new full-service financial center in Columbus, Georgia, marking an important step in expanding our presence in the market. Growing our deposit franchise alongside our lending business remains an important priority as we execute our relationship-focused strategy. We remain committed to disciplined pricing, credit quality and expense management as we work to translate continued growth into sustainable returns for our shareholders. I want to thank our associates for their dedication, their commitment to our clients and the work they do every day to advance our Company.”
SmartFinancial's Chairman, Miller Welborn, concluded: “The Board remains committed to delivering sustainable returns for our shareholders while building a Company where our associates can grow and thrive. Tangible book value per share, an important measure of the value we are creating for shareholders, grew 4% annualized during the quarter, including the effects of accumulated other comprehensive income, and 15% annualized excluding those effects. We also welcomed several new business production team members during the quarter, strengthening our capacity to serve clients and pursue profitable growth. As we expand, our commitment to our associates and our responsibility to shareholders remain closely connected. Building a great Company means creating opportunities for our people, delivering for our clients and translating those efforts into lasting shareholder value.”
| ________________ |
1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliations. |
2 Core deposits include all deposits less brokered and one-way buy Certificate of Deposit Account Registry Service (“CDARS”) deposits. |
Net Interest Income and Net Interest Margin
Net interest income was $49.4 million for the third quarter of 2026, compared to $48.1 million for the prior quarter. Average earning assets totaled $5.71 billion, an increase of $193.1 million from the prior quarter. The balances of average earning assets increased quarter-over-quarter, primarily from an increase in average loans and leases of $165.5 million, average federal funds sold and other earning assets of $20.5 million and average securities of $7.1 million. Average interest-bearing liabilities increased by $218.0 million from the prior quarter, primarily attributable to an increase in average interest-bearing deposits of $258.9 million, offset by a decrease in average borrowings of $41.0 million.
The tax equivalent net interest margin was 3.45% for the third quarter of 2026, down from 3.52% for the prior quarter. The decrease is primarily attributable to higher funding costs, which more than offset the improvement in earning-asset yields. The yield on loans and leases, excluding loan fees, fully taxable equivalent (“FTE”) was 5.99% for the third quarter of 2026, compared to 5.95% for the prior quarter.
The cost of total deposits for the third quarter of 2026 was 2.26%, compared to 2.15% in the prior quarter. The cost of interest-bearing liabilities was 2.81% for the third quarter of 2026, compared to 2.74% in the prior quarter. The cost of average interest-bearing deposits was 2.71% for the third quarter of 2026, compared to 2.62% for the prior quarter, an increase of 9 basis points.
The following table presents selected interest rates and yields for the periods indicated:
Three Months Ended |
|||||||||
Sep |
Jun |
Increase |
|||||||
Selected Interest Rates and Yields |
2026 |
2026 |
(Decrease) |
||||||
Yield on loans and leases, excluding loan fees, FTE |
5.99 |
% |
5.95 |
% |
0.04 |
% |
|||
Yield on loans and leases, FTE |
6.08 |
% |
6.07 |
% |
0.01 |
% |
|||
Yield on earning assets, FTE |
5.72 |
% |
5.70 |
% |
0.02 |
% |
|||
Cost of interest-bearing deposits |
2.71 |
% |
2.62 |
% |
0.09 |
% |
|||
Cost of total deposits |
2.26 |
% |
2.15 |
% |
0.11 |
% |
|||
Cost of interest-bearing liabilities |
2.81 |
% |
2.74 |
% |
0.07 |
% |
|||
Net interest margin, FTE |
3.45 |
% |
3.52 |
% |
(0.07 |
)% |
|||
Allowance for Credit Losses on Loans and Leases and Credit Quality
At September 30, 2026, the allowance for credit losses was $45.6 million. The allowance for credit losses to total loans and leases was 0.94% as of September 30, 2026, down from 0.97% as of June 30, 2026. Provision for credit losses was $687 thousand for the third quarter, compared with $1.5 million for the prior quarter. The third-quarter provision included $1.1 million related to loans and leases, partially offset by a $371 thousand release of the reserve for unfunded commitments.
The following table presents detailed information related to the provision for credit losses for the periods indicated (dollars in thousands):
Three Months Ended |
||||||||||||
Sep |
Jun |
Increase |
||||||||||
Allowance for Credit Losses on Loans and Leases Rollforward |
2026 |
2026 |
(Decrease) |
|||||||||
Beginning balance |
$ |
45,252 |
$ |
43,950 |
$ |
1,302 |
||||||
Charge-offs |
(782 |
) |
(658 |
) |
(124 |
) |
||||||
Recoveries |
121 |
105 |
16 |
|||||||||
Net charge-offs |
(661 |
) |
(553 |
) |
(108 |
) |
||||||
Provision for credit losses (1) |
1,058 |
1,855 |
(797 |
) |
||||||||
Ending balance |
$ |
45,649 |
$ |
45,252 |
$ |
397 |
||||||
Allowance for credit losses to total loans and leases |
0.94 |
% |
0.97 |
% |
(0.03 |
)% |
||||||
(1) |
The current quarter-ended and prior quarter-ended provision excludes an unfunded commitments release of $371 thousand and $392 thousand, respectively. At September 30, 2026, and June 30, 2026, the unfunded commitment liability totaled $3.7 million and $4.1 million, respectively. |
Nonperforming loans and leases as a percentage of total loans and leases was 0.28% as of September 30, 2026, and 0.25% as of June 30, 2026. Total nonperforming assets (which include nonaccrual loans and leases, loans and leases past due 90 days or more and still accruing, other real estate owned and other repossessed assets) as a percentage of total assets was 0.25% as of September 30, 2026, and 0.23% as of June 30, 2026.
The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands):
As of Three Months Ended |
||||||||||||
Sep |
Jun |
Increase |
||||||||||
Credit Quality |
2026 |
2026 |
(Decrease) |
|||||||||
Nonaccrual loans and leases |
$ |
13,602 |
$ |
11,474 |
$ |
2,128 |
||||||
Loans and leases past due 90 days or more and still accruing |
- |
- |
- |
|||||||||
Total nonperforming loans and leases |
13,602 |
11,474 |
2,128 |
|||||||||
Other real estate owned |
- |
- |
- |
|||||||||
Other repossessed assets |
2,072 |
2,754 |
(682 |
) |
||||||||
Total nonperforming assets |
$ |
15,674 |
$ |
14,228 |
$ |
1,446 |
||||||
Nonperforming loans and leases to total loans and leases |
0.28 |
% |
0.25 |
% |
0.03 |
% |
||||||
Nonperforming assets to total assets |
0.25 |
% |
0.23 |
% |
0.02 |
% |
||||||
Noninterest Income
Noninterest income increased by $245 thousand to $8.1 million for the third quarter of 2026, compared to $7.9 million for the prior quarter. The third quarter increase was primarily attributable to increases in service charges on deposit accounts and mortgage banking income.
The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands):
Three Months Ended |
||||||||||||
Sep |
Jun |
Increase |
||||||||||
Noninterest Income |
2026 |
2026 |
(Decrease) |
|||||||||
Service charges on deposit accounts |
$ |
2,001 |
$ |
1,881 |
$ |
120 |
||||||
Gain on sale of securities, net |
- |
54 |
(54 |
) |
||||||||
Mortgage banking income |
1,025 |
916 |
109 |
|||||||||
Investment services |
1,747 |
1,724 |
23 |
|||||||||
Interchange and debit card transaction fees |
1,747 |
1,676 |
71 |
|||||||||
Other |
1,611 |
1,635 |
(24 |
) |
||||||||
Total noninterest income |
$ |
8,131 |
$ |
7,886 |
$ |
245 |
||||||
Noninterest Expense
Noninterest expense increased $2.4 million to $36.4 million for the third quarter of 2026, compared to $34.0 million for the prior quarter. The increase was driven primarily by a $1.0 million increase in other real estate and loan related expenses, a $601 thousand increase in salaries and employee benefits, and higher professional services and other expenses.
The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands):
Three Months Ended |
||||||||||||
Sep |
Jun |
Increase |
||||||||||
Noninterest Expense |
2026 |
2026 |
(Decrease) |
|||||||||
Salaries and employee benefits |
$ |
21,616 |
$ |
21,015 |
$ |
601 |
||||||
Occupancy and equipment |
3,513 |
3,351 |
162 |
|||||||||
FDIC insurance |
906 |
920 |
(14 |
) |
||||||||
Other real estate and loan related expenses |
1,800 |
806 |
994 |
|||||||||
Advertising and marketing |
504 |
408 |
96 |
|||||||||
Data processing and technology |
2,692 |
2,683 |
9 |
|||||||||
Professional services |
1,541 |
1,366 |
175 |
|||||||||
Amortization of intangibles |
450 |
454 |
(4 |
) |
||||||||
Other |
3,334 |
2,952 |
382 |
|||||||||
Total noninterest expense |
$ |
36,356 |
$ |
33,955 |
$ |
2,401 |
||||||
Income Tax Expense
Income tax expense was $1.9 million for the third quarter of 2026, compared with $4.2 million for the prior quarter. The decrease was primarily attributable to a $2.6 million tax benefit recognized in connection with the Company’s purchase of transferable energy tax credits during the quarter.
Balance Sheet Trends
Total assets at September 30, 2026, were $6.32 billion compared to $5.86 billion at December 31, 2025. The $460.0 million increase was primarily attributable to increases in loans and leases of $493.1 million, and increases in other assets of $44.6 million, partially offset by a $99.5 million decrease in cash and cash equivalents.
Total liabilities were $5.74 billion at September 30, 2026, compared to $5.31 billion at December 31, 2025, an increase of $431.2 million. Total deposits increased $423.4 million, which was driven primarily by increases in money market and savings deposits of $321.5 million, interest-bearing demand deposits of $117.6 million, and time deposits of $127.1 million, offset by a decline in noninterest-bearing demand deposits of $142.8 million. In addition, other liabilities increased by $10.3 million and borrowings decreased by $2.7 million.
Shareholders' equity at September 30, 2026, totaled $581.3 million, an increase of $28.8 million from December 31, 2025. The increase in shareholders' equity was primarily driven by net income of $48.6 million for the nine months ended September 30, 2026, offset by an increase of $16.9 million in accumulated other comprehensive loss and dividends paid of $4.5 million. Tangible book value per common share1 was $28.50 at September 30, 2026, compared to $26.85 at December 31, 2025. Tangible common equity1 as a percentage of tangible assets1 was 7.83% at September 30, 2026, compared with 7.93% at December 31, 2025.
The following table presents selected balance sheet information for the periods indicated (dollars in thousands):
Sep |
Dec |
Increase |
||||||||||
Selected Balance Sheet Information |
2026 |
2025 |
(Decrease) |
|||||||||
Total assets |
$ |
6,320,798 |
$ |
5,860,810 |
$ |
459,988 |
||||||
Total liabilities |
5,739,542 |
5,308,318 |
431,224 |
|||||||||
Total equity |
581,256 |
552,492 |
28,764 |
|||||||||
Securities |
676,011 |
662,003 |
14,008 |
|||||||||
Loans and leases |
4,856,692 |
4,363,582 |
493,110 |
|||||||||
Deposits |
5,576,210 |
5,152,789 |
423,421 |
|||||||||
Conference Call Information
SmartFinancial issued this earnings release for the third quarter of 2026 on Monday, October 19, 2026, and will host a conference call on Tuesday, October 20, 2026, at 10:00 a.m. ET. To access this interactive teleconference, dial (833) 461-5787 and enter the Meeting ID: 955 254 100. A link to a replay of the conference call will be available on the Company’s webpage through October 21, 2027. Conference call materials will be published on the Company’s webpage located at https://www.smartfinancialinc.com/CorporateProfile, at 9:00 a.m. ET prior to the conference call.
| ________________ |
1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliations. |
About SmartFinancial, Inc.
SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with branches across Tennessee, Alabama, Florida and Georgia and a loan production office in Tennessee. Recruiting the best people, delivering exceptional client service, strategic branching, and a disciplined approach to lending have contributed to SmartBank’s success. More information about SmartFinancial can be found on its website: www.smartfinancialinc.com.
Non-GAAP Financial Measures
Statements included in this earnings release include measures not recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered Non-GAAP financial measures (“Non-GAAP”) and should be read along with the accompanying tables, which provide a reconciliation of Non-GAAP financial measures to GAAP financial measures. SmartFinancial management uses several Non-GAAP financial measures and ratios derived therefrom in its analysis of the Company's performance, including:
(1) Operating earnings |
(11) Operating return on average assets |
(2) Operating revenue |
(12) Operating PPNR return on average assets |
(3) Operating noninterest income |
(13) Operating return on average shareholders’ equity |
(4) Operating noninterest expense |
(14) Return on average tangible common equity |
(5) Operating pre-provision net revenue (“PPNR”) earnings |
(15) Operating return on average tangible common equity |
(6) Tangible common equity |
(16) Operating noninterest income/average assets |
(7) Average tangible common equity |
(17) Operating noninterest expense/average assets |
(8) Tangible book value per common share |
(18) Tangible common equity to tangible assets |
(9) Tangible assets |
(19) Operating earnings per common share |
(10) Operating efficiency ratio |
A detailed reconciliation and definition of these items and the ratios derived therefrom is available in the Non-GAAP reconciliations.
Management believes that Non-GAAP financial measures provide additional useful information that allows investors to evaluate the ongoing performance of the Company and provide meaningful comparisons to its peers. Management also believes these Non-GAAP financial measures enhance investors' ability to compare period-to-period financial results and allow investors and Company management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.
Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider SmartFinancial's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.
Forward-Looking Statements
This news release 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 1995. These statements are not historical in nature and can generally be identified by such words as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “may,” “estimate,” and similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results of SmartFinancial to differ materially from future results expressed or implied by such forward-looking statements. Such risks, uncertainties, and other factors include, among others,
(1) |
risks associated with our growth strategy, including a failure to implement our growth plans or an inability to manage our growth effectively; |
(2) |
claims and litigation arising from our business activities and from the companies we acquire, which may relate to contractual issues, environmental laws, fiduciary responsibility, and other matters; |
(3) |
general risks related to our disposition, merger and acquisition activity, including risks associated with our pursuit of future acquisitions or sales; |
(4) |
changes in management’s plans for the future; |
(5) |
prevailing, or changes in, economic or political conditions (including those resulting from the current administration and Congress), particularly in our market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; |
(6) |
our ability to anticipate interest rate changes and manage interest rate risk (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business and the impact of interest rate fluctuations on our financial projections, models and guidance); |
(7) |
tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services); |
(8) |
uncertain duration of trade conflicts and the magnitude of the impact that proposed tariffs may have on our customers’ businesses; |
(9) |
increased technology and cybersecurity risks, including generative artificial intelligence risks; |
(10) |
the impact of a failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting us and our customers; |
(11) |
credit risk associated with our lending activities; |
(12) |
changes in loan demand, real estate values, or competition; |
(13) |
developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; |
(14) |
changes in accounting principles, policies, or guidelines; |
(15) |
changes in applicable laws, rules, or regulations; |
(16) |
adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions; |
(17) |
potential impacts of any adverse developments in the banking industry, including the impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; |
(18) |
significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; |
(19) |
the effects of war or other conflicts; |
(20) |
the impact of government actions or inactions, including a prolonged shutdown of the federal government; and |
(21) |
other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. |
These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in SmartFinancial’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, in each case filed with or furnished to the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website (www.sec.gov). Undue reliance should not be placed on forward-looking statements. SmartFinancial disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events, or otherwise.
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) |
|||||||||||||||||||
Ending Balances |
|||||||||||||||||||
Sep |
Jun |
Mar |
Dec |
Sep |
|||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
|||||||||||||||
Assets: |
|||||||||||||||||||
Cash and cash equivalents |
$ |
364,876 |
$ |
379,387 |
$ |
346,071 |
$ |
464,417 |
$ |
557,127 |
|||||||||
Securities available-for-sale, at fair value |
557,389 |
560,065 |
552,083 |
539,882 |
511,095 |
||||||||||||||
Securities held-to-maturity, at amortized cost |
118,622 |
119,848 |
120,968 |
122,121 |
123,364 |
||||||||||||||
Other investments |
22,463 |
17,529 |
16,597 |
16,441 |
14,888 |
||||||||||||||
Loans held for sale |
10,210 |
9,628 |
7,277 |
10,865 |
9,855 |
||||||||||||||
Loans and leases |
4,856,692 |
4,682,935 |
4,518,391 |
4,363,582 |
4,222,369 |
||||||||||||||
Less: Allowance for credit losses |
(45,649 |
) |
(45,252 |
) |
(43,950 |
) |
(40,906 |
) |
(39,074 |
) |
|||||||||
Loans and leases, net |
4,811,043 |
4,637,683 |
4,474,441 |
4,322,676 |
4,183,295 |
||||||||||||||
Premises and equipment, net |
94,205 |
93,314 |
93,360 |
88,387 |
89,250 |
||||||||||||||
Other real estate owned |
— |
— |
— |
— |
— |
||||||||||||||
Goodwill and other intangibles, net |
93,967 |
94,417 |
94,871 |
95,328 |
95,807 |
||||||||||||||
Bank owned life insurance |
122,299 |
121,353 |
120,438 |
119,525 |
118,610 |
||||||||||||||
Other assets |
125,724 |
82,082 |
81,579 |
81,168 |
81,692 |
||||||||||||||
Total assets |
$ |
6,320,798 |
$ |
6,115,306 |
$ |
5,907,685 |
$ |
5,860,810 |
$ |
5,784,983 |
|||||||||
Liabilities: |
|||||||||||||||||||
Deposits: |
|||||||||||||||||||
Noninterest-bearing demand |
$ |
920,117 |
$ |
921,876 |
$ |
951,366 |
$ |
1,062,918 |
$ |
931,477 |
|||||||||
Interest-bearing demand |
1,063,266 |
1,022,074 |
954,292 |
945,716 |
929,454 |
||||||||||||||
Money market and savings |
2,595,155 |
2,454,805 |
2,455,945 |
2,273,612 |
2,218,313 |
||||||||||||||
Time deposits |
997,672 |
986,795 |
834,633 |
870,543 |
971,653 |
||||||||||||||
Total deposits |
5,576,210 |
5,385,550 |
5,196,236 |
5,152,789 |
5,050,897 |
||||||||||||||
Borrowings |
345 |
603 |
3,178 |
3,009 |
1,301 |
||||||||||||||
Subordinated debt |
98,877 |
98,805 |
98,733 |
98,662 |
138,604 |
||||||||||||||
Other liabilities |
64,110 |
53,424 |
47,377 |
53,858 |
55,699 |
||||||||||||||
Total liabilities |
5,739,542 |
5,538,382 |
5,345,524 |
5,308,318 |
5,246,501 |
||||||||||||||
Shareholders' Equity: |
|||||||||||||||||||
Common stock |
17,096 |
17,098 |
17,098 |
17,029 |
17,028 |
||||||||||||||
Additional paid-in capital |
297,367 |
296,841 |
296,284 |
295,950 |
295,742 |
||||||||||||||
Retained earnings |
292,896 |
275,813 |
261,032 |
248,719 |
236,380 |
||||||||||||||
Accumulated other comprehensive loss |
(26,216 |
) |
(12,941 |
) |
(12,366 |
) |
(9,319 |
) |
(10,781 |
) |
|||||||||
Total shareholders' equity attributable to SmartFinancial, Inc. and Subsidiary |
581,143 |
576,811 |
562,048 |
552,379 |
538,369 |
||||||||||||||
Non-controlling interest - preferred stock of subsidiary |
113 |
113 |
113 |
113 |
113 |
||||||||||||||
Total shareholders' equity |
581,256 |
576,924 |
562,161 |
552,492 |
538,482 |
||||||||||||||
Total liabilities & shareholders' equity |
$ |
6,320,798 |
$ |
6,115,306 |
$ |
5,907,685 |
$ |
5,860,810 |
$ |
5,784,983 |
|||||||||
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands except share and per share data) |
|||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||
Sep |
Jun |
Mar |
Dec |
Sep |
Sep |
Sep |
|||||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
|||||||||||||||||||||
Interest income: |
|||||||||||||||||||||||||||
Loans and leases, including fees |
$ |
73,052 |
$ |
69,546 |
$ |
65,638 |
$ |
65,573 |
$ |
64,282 |
$ |
208,236 |
$ |
183,094 |
|||||||||||||
Investment securities: |
|||||||||||||||||||||||||||
Taxable |
5,882 |
5,722 |
5,492 |
5,662 |
4,876 |
17,096 |
14,499 |
||||||||||||||||||||
Tax-exempt |
578 |
565 |
555 |
536 |
441 |
1,698 |
1,190 |
||||||||||||||||||||
Federal funds sold and other earning assets |
2,528 |
2,209 |
2,585 |
3,854 |
4,919 |
7,321 |
11,565 |
||||||||||||||||||||
Total interest income |
82,040 |
78,042 |
74,270 |
75,625 |
74,518 |
234,351 |
210,348 |
||||||||||||||||||||
Interest expense: |
|||||||||||||||||||||||||||
Deposits |
30,754 |
27,723 |
26,529 |
28,646 |
30,464 |
85,006 |
86,100 |
||||||||||||||||||||
Borrowings |
— |
371 |
1 |
1 |
14 |
371 |
155 |
||||||||||||||||||||
Subordinated debt |
1,884 |
1,884 |
1,864 |
1,884 |
1,610 |
5,632 |
3,082 |
||||||||||||||||||||
Total interest expense |
32,638 |
29,978 |
28,394 |
30,531 |
32,088 |
91,009 |
89,337 |
||||||||||||||||||||
Net interest income |
49,402 |
48,064 |
45,876 |
45,094 |
42,430 |
143,342 |
121,011 |
||||||||||||||||||||
Provision for credit losses |
687 |
1,463 |
4,139 |
4,132 |
227 |
6,288 |
3,618 |
||||||||||||||||||||
Net interest income after provision for credit losses |
48,715 |
46,601 |
41,737 |
40,962 |
42,203 |
137,054 |
117,393 |
||||||||||||||||||||
Noninterest income: |
|||||||||||||||||||||||||||
Service charges on deposit accounts |
2,001 |
1,881 |
1,853 |
1,828 |
1,831 |
5,735 |
5,333 |
||||||||||||||||||||
Gain (loss) on sale of securities, net |
— |
54 |
1 |
— |
(3,715 |
) |
55 |
(3,719 |
) |
||||||||||||||||||
Mortgage banking |
1,025 |
916 |
760 |
837 |
709 |
2,701 |
1,835 |
||||||||||||||||||||
Investment services |
1,747 |
1,724 |
1,796 |
1,683 |
1,690 |
5,267 |
4,899 |
||||||||||||||||||||
Insurance commissions |
— |
— |
— |
— |
1,049 |
— |
4,016 |
||||||||||||||||||||
Interchange and debit card transaction fees |
1,747 |
1,676 |
1,418 |
1,375 |
1,338 |
4,841 |
3,900 |
||||||||||||||||||||
Gain on sale of SBK Insurance ("SBKI") |
— |
— |
— |
— |
3,955 |
— |
3,955 |
||||||||||||||||||||
Other |
1,611 |
1,635 |
2,113 |
2,496 |
1,780 |
5,360 |
5,914 |
||||||||||||||||||||
Total noninterest income |
8,131 |
7,886 |
7,941 |
8,219 |
8,637 |
23,959 |
26,133 |
||||||||||||||||||||
Noninterest expense: |
|||||||||||||||||||||||||||
Salaries and employee benefits |
21,616 |
21,015 |
20,414 |
19,917 |
19,544 |
63,045 |
58,380 |
||||||||||||||||||||
Occupancy and equipment |
3,513 |
3,351 |
3,344 |
3,388 |
3,468 |
10,208 |
10,298 |
||||||||||||||||||||
FDIC insurance |
906 |
920 |
750 |
1,025 |
1,025 |
2,576 |
2,977 |
||||||||||||||||||||
Other real estate and loan related expense |
1,800 |
806 |
792 |
858 |
969 |
3,398 |
2,383 |
||||||||||||||||||||
Advertising and marketing |
504 |
408 |
387 |
393 |
454 |
1,299 |
1,226 |
||||||||||||||||||||
Data processing and technology |
2,692 |
2,683 |
2,436 |
2,413 |
2,594 |
7,811 |
7,903 |
||||||||||||||||||||
Professional services |
1,541 |
1,366 |
1,193 |
1,132 |
1,123 |
4,100 |
3,643 |
||||||||||||||||||||
Amortization of intangibles |
450 |
454 |
457 |
479 |
536 |
1,361 |
1,671 |
||||||||||||||||||||
Restructuring expenses |
— |
— |
— |
16 |
1,310 |
— |
1,310 |
||||||||||||||||||||
Other |
3,334 |
2,952 |
3,142 |
2,850 |
2,846 |
9,430 |
8,945 |
||||||||||||||||||||
Total noninterest expense |
36,356 |
33,955 |
32,915 |
32,471 |
33,869 |
103,228 |
98,736 |
||||||||||||||||||||
Income before income taxes |
20,490 |
20,532 |
16,763 |
16,710 |
16,971 |
57,785 |
44,790 |
||||||||||||||||||||
Income tax expense |
1,863 |
4,210 |
3,083 |
3,007 |
3,285 |
9,156 |
8,146 |
||||||||||||||||||||
Net income |
$ |
18,627 |
$ |
16,322 |
$ |
13,680 |
$ |
13,703 |
$ |
13,686 |
$ |
48,629 |
$ |
36,644 |
|||||||||||||
Earnings per common share: |
|||||||||||||||||||||||||||
Basic |
$ |
1.11 |
$ |
0.97 |
$ |
0.81 |
$ |
0.82 |
$ |
0.82 |
$ |
2.89 |
$ |
2.18 |
|||||||||||||
Diluted |
$ |
1.10 |
$ |
0.96 |
$ |
0.81 |
$ |
0.81 |
$ |
0.81 |
$ |
2.86 |
$ |
2.17 |
|||||||||||||
Weighted average common shares outstanding: |
|||||||||||||||||||||||||||
Basic |
16,824,705 |
16,824,053 |
16,821,486 |
16,788,065 |
16,781,236 |
16,823,426 |
16,775,970 |
||||||||||||||||||||
Diluted |
16,994,574 |
16,961,750 |
16,935,530 |
16,922,482 |
16,908,920 |
16,984,875 |
16,886,153 |
||||||||||||||||||||
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS |
|||||||||||||||||||||||||||||||||
Three Months Ended |
|||||||||||||||||||||||||||||||||
September 30, 2026 |
June 30, 2026 |
September 30, 2025 |
|||||||||||||||||||||||||||||||
Average |
Yield/ |
Average |
Yield/ |
Average |
Yield/ |
||||||||||||||||||||||||||||
Balance |
Interest |
Cost |
Balance |
Interest |
Cost |
Balance |
Interest |
Cost |
|||||||||||||||||||||||||
Assets: |
|||||||||||||||||||||||||||||||||
Loans and leases, including fees1 |
$ |
4,775,909 |
$ |
73,209 |
6.08 |
% |
$ |
4,610,444 |
$ |
69,740 |
6.07 |
% |
$ |
4,171,444 |
$ |
64,526 |
6.14 |
% |
|||||||||||||||
Taxable securities |
602,152 |
5,882 |
3.88 |
% |
595,018 |
5,722 |
3.86 |
% |
556,894 |
4,876 |
3.47 |
% |
|||||||||||||||||||||
Tax-exempt securities2 |
79,765 |
732 |
3.64 |
% |
79,820 |
715 |
3.59 |
% |
69,843 |
558 |
3.17 |
% |
|||||||||||||||||||||
Federal funds sold and other earning assets |
252,781 |
2,528 |
3.97 |
% |
232,257 |
2,209 |
3.81 |
% |
428,209 |
4,919 |
4.56 |
% |
|||||||||||||||||||||
Total interest-earning assets |
5,710,607 |
82,351 |
5.72 |
% |
5,517,539 |
78,386 |
5.70 |
% |
5,226,390 |
74,879 |
5.68 |
% |
|||||||||||||||||||||
Noninterest-earning assets |
442,789 |
421,371 |
408,560 |
||||||||||||||||||||||||||||||
Total assets |
$ |
6,153,396 |
$ |
5,938,910 |
$ |
5,634,950 |
|||||||||||||||||||||||||||
Liabilities and Shareholders’ Equity: |
|||||||||||||||||||||||||||||||||
Interest-bearing demand deposits |
$ |
995,731 |
4,344 |
1.73 |
% |
$ |
954,455 |
3,960 |
1.66 |
% |
$ |
869,690 |
4,048 |
1.85 |
% |
||||||||||||||||||
Money market and savings deposits |
2,516,407 |
17,660 |
2.78 |
% |
2,388,259 |
15,982 |
2.68 |
% |
2,186,245 |
16,693 |
3.03 |
% |
|||||||||||||||||||||
Time deposits |
996,718 |
8,750 |
3.48 |
% |
907,250 |
7,781 |
3.44 |
% |
1,005,800 |
9,723 |
3.84 |
% |
|||||||||||||||||||||
Total interest-bearing deposits |
4,508,856 |
30,754 |
2.71 |
% |
4,249,964 |
27,723 |
2.62 |
% |
4,061,735 |
30,464 |
2.98 |
% |
|||||||||||||||||||||
Borrowings |
314 |
— |
— |
% |
41,272 |
371 |
3.61 |
% |
4,351 |
14 |
1.28 |
% |
|||||||||||||||||||||
Subordinated debt |
98,834 |
1,884 |
7.56 |
% |
98,761 |
1,884 |
7.65 |
% |
85,113 |
1,610 |
7.50 |
% |
|||||||||||||||||||||
Total interest-bearing liabilities |
4,608,004 |
32,638 |
2.81 |
% |
4,389,997 |
29,978 |
2.74 |
% |
4,151,199 |
32,088 |
3.07 |
% |
|||||||||||||||||||||
Noninterest-bearing deposits |
901,873 |
923,887 |
900,079 |
||||||||||||||||||||||||||||||
Other liabilities |
58,748 |
53,677 |
57,843 |
||||||||||||||||||||||||||||||
Total liabilities |
5,568,625 |
5,367,561 |
5,109,121 |
||||||||||||||||||||||||||||||
Shareholders' equity |
584,771 |
571,349 |
525,829 |
||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
6,153,396 |
$ |
5,938,910 |
$ |
5,634,950 |
|||||||||||||||||||||||||||
Net interest income, taxable equivalent |
$ |
49,713 |
$ |
48,408 |
$ |
42,791 |
|||||||||||||||||||||||||||
Interest rate spread |
2.91 |
% |
2.96 |
% |
2.62 |
% |
|||||||||||||||||||||||||||
Tax equivalent net interest margin |
3.45 |
% |
3.52 |
% |
3.25 |
% |
|||||||||||||||||||||||||||
Percentage of average interest-earning assets to average interest-bearing liabilities |
123.93 |
% |
125.68 |
% |
125.90 |
% |
|||||||||||||||||||||||||||
Percentage of average equity to average assets |
9.50 |
% |
9.62 |
% |
9.33 |
% |
|||||||||||||||||||||||||||
1 Yields computed on tax-exempt loans on a tax equivalent basis include $157 thousand, $194 thousand, and $244 thousand of taxable equivalent income for the quarters ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. |
2 Yields computed on tax-exempt instruments on a tax equivalent basis include $154 thousand, $150 thousand, and $117 thousand of taxable equivalent income for the quarters ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. |
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS |
||||||||||||||||||||||
Nine Months Ended |
||||||||||||||||||||||
September 30, 2026 |
September 30, 2025 |
|||||||||||||||||||||
Average |
Yield/ |
Average |
Yield/ |
|||||||||||||||||||
Balance |
Interest |
Cost |
Balance |
Interest |
Cost |
|||||||||||||||||
Assets: |
||||||||||||||||||||||
Loans and leases, including fees1 |
$ |
4,609,009 |
$ |
208,805 |
6.06 |
% |
$ |
4,055,251 |
$ |
183,829 |
6.06 |
% |
||||||||||
Taxable securities |
593,990 |
17,096 |
3.85 |
% |
558,493 |
14,499 |
3.47 |
% |
||||||||||||||
Tax-exempt securities2 |
80,037 |
2,149 |
3.59 |
% |
66,408 |
1,506 |
3.03 |
% |
||||||||||||||
Federal funds sold and other earning assets |
257,070 |
7,322 |
3.81 |
% |
337,385 |
11,566 |
4.58 |
% |
||||||||||||||
Total interest-earning assets |
5,540,106 |
235,372 |
5.68 |
% |
5,017,537 |
211,400 |
5.63 |
% |
||||||||||||||
Noninterest-earning assets |
419,865 |
406,751 |
||||||||||||||||||||
Total assets |
$ |
5,959,971 |
$ |
5,424,288 |
||||||||||||||||||
Liabilities and Shareholders’ Equity: |
||||||||||||||||||||||
Interest-bearing demand deposits |
$ |
968,693 |
12,235 |
1.69 |
% |
$ |
850,720 |
11,577 |
1.82 |
% |
||||||||||||
Money market and savings deposits |
2,414,719 |
48,879 |
2.71 |
% |
2,118,652 |
47,518 |
3.00 |
% |
||||||||||||||
Time deposits |
915,729 |
23,892 |
3.49 |
% |
934,255 |
27,005 |
3.86 |
% |
||||||||||||||
Total interest-bearing deposits |
4,299,141 |
85,006 |
2.64 |
% |
3,903,627 |
86,100 |
2.95 |
% |
||||||||||||||
Borrowings |
15,033 |
371 |
3.30 |
% |
6,769 |
155 |
3.06 |
% |
||||||||||||||
Subordinated debt |
98,763 |
5,632 |
7.62 |
% |
55,006 |
3,082 |
7.49 |
% |
||||||||||||||
Total interest-bearing liabilities |
4,412,937 |
91,009 |
2.76 |
% |
3,965,402 |
89,337 |
3.01 |
% |
||||||||||||||
Noninterest-bearing deposits |
919,098 |
894,254 |
||||||||||||||||||||
Other liabilities |
55,691 |
52,905 |
||||||||||||||||||||
Total liabilities |
5,387,726 |
4,912,561 |
||||||||||||||||||||
Shareholders' equity |
572,245 |
511,727 |
||||||||||||||||||||
Total liabilities and shareholders' equity |
$ |
5,959,971 |
$ |
5,424,288 |
||||||||||||||||||
Net interest income, taxable equivalent |
$ |
144,363 |
$ |
122,063 |
||||||||||||||||||
Interest rate spread |
2.92 |
% |
2.62 |
% |
||||||||||||||||||
Tax equivalent net interest margin |
3.48 |
% |
3.25 |
% |
||||||||||||||||||
Percentage of average interest-earning assets to average interest-bearing liabilities |
125.54 |
% |
126.53 |
% |
||||||||||||||||||
Percentage of average equity to average assets |
9.60 |
% |
9.43 |
% |
||||||||||||||||||
1 Yields computed on tax-exempt loans on a tax equivalent basis include $569 thousand and $735 thousand of taxable equivalent income for the nine months ended September 30, 2026, and September 30, 2025, respectively. |
2 Yields computed on tax-exempt instruments on a tax equivalent basis include $451 thousand and $316 thousand of taxable equivalent income for the nine months ended September 30, 2026, and September 30, 2025, respectively. |
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) |
||||||||||||||||||||
As of and for The Three Months Ended |
||||||||||||||||||||
Sep |
Jun |
Mar |
Dec |
Sep |
||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
||||||||||||||||
Composition of Loans and Leases: |
||||||||||||||||||||
Commercial real estate: |
||||||||||||||||||||
Non-owner occupied |
$ |
1,301,283 |
$ |
1,288,115 |
$ |
1,263,455 |
$ |
1,196,758 |
$ |
1,136,080 |
||||||||||
Owner occupied |
1,105,042 |
1,080,959 |
1,033,211 |
1,022,871 |
1,012,088 |
|||||||||||||||
Commercial real estate, total |
2,406,325 |
2,369,074 |
2,296,666 |
2,219,629 |
2,148,168 |
|||||||||||||||
Consumer real estate |
903,135 |
881,640 |
851,484 |
834,626 |
811,150 |
|||||||||||||||
Construction & land development |
563,856 |
516,164 |
478,301 |
419,176 |
390,691 |
|||||||||||||||
Commercial & industrial |
913,165 |
842,849 |
819,875 |
817,595 |
794,751 |
|||||||||||||||
Leases |
49,179 |
52,411 |
54,296 |
55,422 |
60,301 |
|||||||||||||||
Consumer and other |
21,032 |
20,797 |
17,769 |
17,134 |
17,308 |
|||||||||||||||
Total loans and leases |
$ |
4,856,692 |
$ |
4,682,935 |
$ |
4,518,391 |
$ |
4,363,582 |
$ |
4,222,369 |
||||||||||
Asset Quality and Additional Loan Data: |
||||||||||||||||||||
Nonperforming loans and leases |
$ |
13,602 |
$ |
11,474 |
$ |
12,257 |
$ |
9,442 |
$ |
10,099 |
||||||||||
Other real estate owned |
— |
— |
— |
— |
— |
|||||||||||||||
Other repossessed assets |
2,072 |
2,754 |
2,798 |
3,248 |
2,444 |
|||||||||||||||
Total nonperforming assets |
$ |
15,674 |
$ |
14,228 |
$ |
15,055 |
$ |
12,690 |
$ |
12,543 |
||||||||||
Modified loans and leases1 not included in nonperforming loans and leases |
$ |
282 |
$ |
349 |
$ |
208 |
$ |
219 |
$ |
1,783 |
||||||||||
Net charge-offs to average loans and leases (annualized) |
0.06 |
% |
0.05 |
% |
0.02 |
% |
0.18 |
% |
0.10 |
% |
||||||||||
Allowance for credit losses to total loans and leases |
0.94 |
% |
0.97 |
% |
0.97 |
% |
0.94 |
% |
0.93 |
% |
||||||||||
Nonperforming loans and leases to total loans and leases |
0.28 |
% |
0.25 |
% |
0.27 |
% |
0.22 |
% |
0.24 |
% |
||||||||||
Nonperforming assets to total assets |
0.25 |
% |
0.23 |
% |
0.25 |
% |
0.22 |
% |
0.22 |
% |
||||||||||
Capital Ratios: |
||||||||||||||||||||
Equity to Assets |
9.20 |
% |
9.43 |
% |
9.52 |
% |
9.43 |
% |
9.31 |
% |
||||||||||
Tangible common equity to tangible assets (Non-GAAP)2 |
7.83 |
% |
8.01 |
% |
8.04 |
% |
7.93 |
% |
7.78 |
% |
||||||||||
SmartFinancial, Inc.3 |
||||||||||||||||||||
Tier 1 leverage |
8.49 |
% |
8.47 |
% |
8.41 |
% |
8.30 |
% |
8.21 |
% |
||||||||||
Common equity Tier 1 |
9.80 |
% |
9.77 |
% |
9.77 |
% |
9.83 |
% |
9.85 |
% |
||||||||||
Tier 1 capital |
9.80 |
% |
9.77 |
% |
9.77 |
% |
9.83 |
% |
9.85 |
% |
||||||||||
Total capital |
12.62 |
% |
12.64 |
% |
12.72 |
% |
12.71 |
% |
13.31 |
% |
||||||||||
SmartBank3 |
||||||||||||||||||||
Tier 1 leverage |
9.80 |
% |
9.86 |
% |
9.88 |
% |
9.71 |
% |
9.59 |
% |
||||||||||
Common equity Tier 1 |
11.34 |
% |
11.38 |
% |
11.47 |
% |
11.51 |
% |
11.56 |
% |
||||||||||
Tier 1 capital |
11.34 |
% |
11.38 |
% |
11.47 |
% |
11.51 |
% |
11.56 |
% |
||||||||||
Total capital |
12.28 |
% |
12.30 |
% |
12.41 |
% |
12.32 |
% |
12.37 |
% |
||||||||||
1 Borrowers that have experienced financial difficulty. Effective as of December 31, 2025, the Call Report instructions were changed for institutions to report loan modifications to borrowers experiencing financial difficulty for a 12-month period after the modification. This change is reflected in the December 31, 2025, information and going forward. |
2 Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures. |
3 Current period capital ratios are estimated as of the date of this earnings release. |
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands except share and per share data) |
|||||||||||||||||||||||||||
As of and for The |
As of and for The |
||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||
Sep |
Jun |
Mar |
Dec |
Sep |
Sep |
Sep |
|||||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
|||||||||||||||||||||
Selected Performance Ratios (Annualized): |
|||||||||||||||||||||||||||
Return on average assets |
1.20 |
% |
1.10 |
% |
0.96 |
% |
0.95 |
% |
0.96 |
% |
1.09 |
% |
0.90 |
% |
|||||||||||||
Return on average shareholders' equity |
12.64 |
% |
11.46 |
% |
9.90 |
% |
9.95 |
% |
10.33 |
% |
11.36 |
% |
9.57 |
% |
|||||||||||||
Return on average tangible common equity1 |
15.07 |
% |
13.74 |
% |
11.93 |
% |
12.06 |
% |
12.79 |
% |
13.61 |
% |
11.99 |
% |
|||||||||||||
Noninterest income / average assets |
0.52 |
% |
0.53 |
% |
0.56 |
% |
0.57 |
% |
0.61 |
% |
0.54 |
% |
0.64 |
% |
|||||||||||||
Noninterest expense / average assets |
2.34 |
% |
2.29 |
% |
2.31 |
% |
2.24 |
% |
2.38 |
% |
2.32 |
% |
2.43 |
% |
|||||||||||||
Efficiency ratio |
63.19 |
% |
60.69 |
% |
61.16 |
% |
60.91 |
% |
66.32 |
% |
61.70 |
% |
67.10 |
% |
|||||||||||||
Operating Selected Performance Ratios (Annualized): |
|||||||||||||||||||||||||||
Operating return on average assets1 |
1.20 |
% |
1.10 |
% |
0.96 |
% |
0.95 |
% |
1.02 |
% |
1.09 |
% |
0.92 |
% |
|||||||||||||
Operating PPNR return on average assets1 |
1.37 |
% |
1.48 |
% |
1.47 |
% |
1.44 |
% |
1.29 |
% |
1.44 |
% |
1.22 |
% |
|||||||||||||
Operating return on average shareholders' equity1 |
12.64 |
% |
11.43 |
% |
9.90 |
% |
9.96 |
% |
10.92 |
% |
11.35 |
% |
9.78 |
% |
|||||||||||||
Operating return on average tangible common equity1 |
15.07 |
% |
13.70 |
% |
11.93 |
% |
12.07 |
% |
13.53 |
% |
13.60 |
% |
12.25 |
% |
|||||||||||||
Operating efficiency ratio1 |
62.85 |
% |
60.38 |
% |
60.75 |
% |
60.45 |
% |
63.61 |
% |
61.35 |
% |
65.85 |
% |
|||||||||||||
Operating noninterest income / average assets1 |
0.52 |
% |
0.53 |
% |
0.56 |
% |
0.57 |
% |
0.59 |
% |
0.54 |
% |
0.64 |
% |
|||||||||||||
Operating noninterest expense / average assets1 |
2.34 |
% |
2.29 |
% |
2.31 |
% |
2.24 |
% |
2.29 |
% |
2.32 |
% |
2.40 |
% |
|||||||||||||
Selected Interest Rates and Yields: |
|||||||||||||||||||||||||||
Yield on loans and leases, excluding loan fees, FTE |
5.99 |
% |
5.95 |
% |
5.93 |
% |
6.00 |
% |
6.05 |
% |
5.95 |
% |
5.98 |
% |
|||||||||||||
Yield on loans and leases, FTE |
6.08 |
% |
6.07 |
% |
6.02 |
% |
6.08 |
% |
6.14 |
% |
6.06 |
% |
6.06 |
% |
|||||||||||||
Yield on earning assets, FTE |
5.72 |
% |
5.70 |
% |
5.62 |
% |
5.65 |
% |
5.68 |
% |
5.68 |
% |
5.63 |
% |
|||||||||||||
Cost of interest-bearing deposits |
2.71 |
% |
2.62 |
% |
2.60 |
% |
2.79 |
% |
2.98 |
% |
2.64 |
% |
2.95 |
% |
|||||||||||||
Cost of total deposits |
2.26 |
% |
2.15 |
% |
2.12 |
% |
2.26 |
% |
2.44 |
% |
2.18 |
% |
2.40 |
% |
|||||||||||||
Cost of interest-bearing liabilities |
2.81 |
% |
2.74 |
% |
2.72 |
% |
2.90 |
% |
3.07 |
% |
2.76 |
% |
3.01 |
% |
|||||||||||||
Net interest margin, FTE |
3.45 |
% |
3.52 |
% |
3.48 |
% |
3.38 |
% |
3.25 |
% |
3.48 |
% |
3.25 |
% |
|||||||||||||
Per Common Share: |
|||||||||||||||||||||||||||
Net income, basic |
$ |
1.11 |
$ |
0.97 |
$ |
0.81 |
$ |
0.82 |
$ |
0.82 |
$ |
2.89 |
$ |
2.18 |
|||||||||||||
Net income, diluted |
1.10 |
0.96 |
0.81 |
0.81 |
0.81 |
2.86 |
2.17 |
||||||||||||||||||||
Operating earnings, basic¹ |
1.11 |
0.97 |
0.81 |
0.82 |
0.86 |
2.89 |
2.23 |
||||||||||||||||||||
Operating earnings, diluted¹ |
1.10 |
0.96 |
0.81 |
0.81 |
0.86 |
2.86 |
2.22 |
||||||||||||||||||||
Book value per common share |
34.00 |
33.74 |
32.88 |
32.44 |
31.62 |
34.00 |
31.62 |
||||||||||||||||||||
Tangible book value per common share1 |
28.50 |
28.22 |
27.33 |
26.85 |
26.00 |
28.50 |
26.00 |
||||||||||||||||||||
Common shares outstanding |
17,095,789 |
17,098,473 |
17,098,473 |
17,029,317 |
17,028,001 |
17,095,789 |
17,028,001 |
||||||||||||||||||||
1 Non-GAAP measure. See reconciliation of Non-GAAP measures. |
|||||||||||||||||||||||||||
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) NON-GAAP RECONCILIATIONS |
|||||||||||||||||||||||||||
Three Months Ended |
Nine Months Ended |
||||||||||||||||||||||||||
Sep |
Jun |
Mar |
Dec |
Sep |
Sep |
Sep |
|||||||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
2026 |
2025 |
|||||||||||||||||||||
Operating Earnings: |
|||||||||||||||||||||||||||
Net income (GAAP) |
$ |
18,627 |
$ |
16,322 |
$ |
13,680 |
$ |
13,703 |
$ |
13,686 |
$ |
48,629 |
$ |
36,644 |
|||||||||||||
Noninterest income: |
|||||||||||||||||||||||||||
Securities (gains) losses, net |
— |
(54 |
) |
(1 |
) |
— |
3,715 |
(55 |
) |
3,719 |
|||||||||||||||||
Gain on sale of SBKI |
— |
— |
— |
— |
(3,955 |
) |
— |
(3,955 |
) |
||||||||||||||||||
Noninterest expenses: |
|||||||||||||||||||||||||||
Restructuring expenses |
— |
— |
— |
16 |
1,310 |
— |
1,310 |
||||||||||||||||||||
Income taxes: |
|||||||||||||||||||||||||||
Income tax effect of adjustments |
— |
14 |
— |
(4 |
) |
(276 |
) |
14 |
(277 |
) |
|||||||||||||||||
Operating earnings (Non-GAAP) |
$ |
18,627 |
$ |
16,282 |
$ |
13,679 |
$ |
13,715 |
$ |
14,480 |
$ |
48,588 |
$ |
37,441 |
|||||||||||||
Operating earnings per common share (Non-GAAP): |
|||||||||||||||||||||||||||
Basic |
$ |
1.11 |
$ |
0.97 |
$ |
0.81 |
$ |
0.82 |
$ |
0.86 |
$ |
2.89 |
$ |
2.23 |
|||||||||||||
Diluted |
1.10 |
0.96 |
0.81 |
0.81 |
0.86 |
2.86 |
2.22 |
||||||||||||||||||||
Operating Noninterest Income: |
|||||||||||||||||||||||||||
Noninterest income (GAAP) |
$ |
8,131 |
$ |
7,886 |
$ |
7,941 |
$ |
8,219 |
$ |
8,637 |
$ |
23,959 |
$ |
26,133 |
|||||||||||||
Securities (gains) losses, net |
— |
(54 |
) |
(1 |
) |
— |
3,715 |
(55 |
) |
3,719 |
|||||||||||||||||
Gain on sale of SBKI |
— |
— |
— |
— |
(3,955 |
) |
— |
(3,955 |
) |
||||||||||||||||||
Operating noninterest income (Non-GAAP) |
$ |
8,131 |
$ |
7,832 |
$ |
7,940 |
$ |
8,219 |
$ |
8,397 |
$ |
23,904 |
$ |
25,897 |
|||||||||||||
Operating noninterest income (Non-GAAP)/average assets1 |
0.52 |
% |
0.53 |
% |
0.56 |
% |
0.57 |
% |
0.59 |
% |
0.54 |
% |
0.64 |
% |
|||||||||||||
Operating Noninterest Expense: |
|||||||||||||||||||||||||||
Noninterest expense (GAAP) |
$ |
36,356 |
$ |
33,955 |
$ |
32,915 |
$ |
32,471 |
$ |
33,869 |
$ |
103,228 |
$ |
98,736 |
|||||||||||||
Restructuring expenses |
— |
— |
— |
(16 |
) |
(1,310 |
) |
— |
(1,310 |
) |
|||||||||||||||||
Operating noninterest expense (Non-GAAP) |
$ |
36,356 |
$ |
33,955 |
$ |
32,915 |
$ |
32,455 |
$ |
32,559 |
$ |
103,228 |
$ |
97,426 |
|||||||||||||
Operating noninterest expense (Non-GAAP)/average assets2 |
2.34 |
% |
2.29 |
% |
2.31 |
% |
2.24 |
% |
2.29 |
% |
2.32 |
% |
2.40 |
% |
|||||||||||||
Operating Pre-provision Net revenue ("PPNR") Earnings: |
|||||||||||||||||||||||||||
Net interest income (GAAP) |
$ |
49,402 |
$ |
48,064 |
$ |
45,876 |
$ |
45,094 |
$ |
42,430 |
$ |
143,342 |
$ |
121,011 |
|||||||||||||
Operating noninterest income (Non-GAAP) |
8,131 |
7,832 |
7,940 |
8,219 |
8,397 |
23,904 |
25,897 |
||||||||||||||||||||
Operating revenue (Non-GAAP) |
57,533 |
55,896 |
53,816 |
53,313 |
50,827 |
167,246 |
146,908 |
||||||||||||||||||||
Operating noninterest expense (Non-GAAP) |
(36,356 |
) |
(33,955 |
) |
(32,915 |
) |
(32,455 |
) |
(32,559 |
) |
(103,228 |
) |
(97,426 |
) |
|||||||||||||
Operating PPNR earnings (Non-GAAP) |
$ |
21,177 |
$ |
21,941 |
$ |
20,901 |
$ |
20,858 |
$ |
18,268 |
$ |
64,018 |
$ |
49,482 |
|||||||||||||
Non-GAAP Return Ratios: |
|||||||||||||||||||||||||||
Operating return on average assets (Non-GAAP)3 |
1.20 |
% |
1.10 |
% |
0.96 |
% |
0.95 |
% |
1.02 |
% |
1.09 |
% |
0.92 |
% |
|||||||||||||
Operating PPNR return on average assets (Non-GAAP)4 |
1.37 |
% |
1.48 |
% |
1.47 |
% |
1.44 |
% |
1.29 |
% |
1.44 |
% |
1.22 |
% |
|||||||||||||
Return on average tangible common equity (Non-GAAP)5 |
15.07 |
% |
13.74 |
% |
11.93 |
% |
12.06 |
% |
12.79 |
% |
13.61 |
% |
11.99 |
% |
|||||||||||||
Operating return on average shareholders' equity (Non-GAAP)6 |
12.64 |
% |
11.43 |
% |
9.90 |
% |
9.96 |
% |
10.92 |
% |
11.35 |
% |
9.78 |
% |
|||||||||||||
Operating return on average tangible common equity (Non-GAAP)7 |
15.07 |
% |
13.70 |
% |
11.93 |
% |
12.07 |
% |
13.53 |
% |
13.60 |
% |
12.25 |
% |
|||||||||||||
Operating Efficiency Ratio: |
|||||||||||||||||||||||||||
Efficiency ratio (GAAP) |
63.19 |
% |
60.69 |
% |
61.16 |
% |
60.91 |
% |
66.32 |
% |
61.70 |
% |
67.10 |
% |
|||||||||||||
Adjustment for taxable equivalent yields |
(0.34 |
)% |
(0.38 |
)% |
(0.41 |
)% |
(0.43 |
)% |
(0.47 |
)% |
(0.37 |
)% |
(0.48 |
)% |
|||||||||||||
Adjustment for securities gains (losses) |
— |
% |
0.07 |
% |
— |
% |
— |
% |
(4.50 |
)% |
0.02 |
% |
(1.65 |
)% |
|||||||||||||
Adjustment for sale of SBKI |
— |
% |
— |
% |
— |
% |
— |
% |
5.57 |
% |
— |
% |
1.85 |
% |
|||||||||||||
Adjustment for restructuring cost |
— |
% |
— |
% |
— |
% |
(0.02 |
)% |
(3.31 |
)% |
— |
% |
(0.97 |
)% |
|||||||||||||
Operating efficiency ratio (Non-GAAP) |
62.85 |
% |
60.38 |
% |
60.75 |
% |
60.45 |
% |
63.61 |
% |
61.35 |
% |
65.85 |
% |
|||||||||||||
1 Operating noninterest income (Non-GAAP) is annualized and divided by average assets. 2 Operating noninterest expense (Non-GAAP) is annualized and divided by average assets. 3 Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets. 4 Operating PPNR return on average assets (Non-GAAP) is the annualized operating PPNR earnings (Non-GAAP) divided by average assets. 5 Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP). 6 Operating return on average shareholders’ equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average equity. 7 Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP). |
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) NON-GAAP RECONCILIATIONS |
||||||||||||||||||||
Three Months Ended |
||||||||||||||||||||
Sep |
Jun |
Mar |
Dec |
Sep |
||||||||||||||||
2026 |
2026 |
2026 |
2025 |
2025 |
||||||||||||||||
Tangible Common Equity: |
||||||||||||||||||||
Shareholders' equity (GAAP) |
$ |
581,256 |
$ |
576,924 |
$ |
562,161 |
$ |
552,492 |
$ |
538,482 |
||||||||||
Less goodwill and other intangible assets |
93,967 |
94,417 |
94,871 |
95,328 |
95,807 |
|||||||||||||||
Tangible common equity (Non-GAAP) |
$ |
487,289 |
$ |
482,507 |
$ |
467,290 |
$ |
457,164 |
$ |
442,675 |
||||||||||
Average Tangible Common Equity: |
||||||||||||||||||||
Average shareholders' equity (GAAP) |
$ |
584,771 |
$ |
571,349 |
$ |
560,348 |
$ |
546,489 |
$ |
525,829 |
||||||||||
Less average goodwill and other intangible assets |
94,239 |
94,696 |
95,145 |
95,619 |
101,326 |
|||||||||||||||
Average tangible common equity (Non-GAAP) |
$ |
490,532 |
$ |
476,653 |
$ |
465,203 |
$ |
450,870 |
$ |
424,503 |
||||||||||
Tangible Book Value per Common Share: |
||||||||||||||||||||
Book value per common share (GAAP) |
$ |
34.00 |
$ |
33.74 |
$ |
32.88 |
$ |
32.44 |
$ |
31.62 |
||||||||||
Adjustment due to goodwill and other intangible assets |
(5.50 |
) |
(5.52 |
) |
(5.55 |
) |
(5.59 |
) |
(5.63 |
) |
||||||||||
Tangible book value per common share (Non-GAAP)1 |
$ |
28.50 |
$ |
28.22 |
$ |
27.33 |
$ |
26.85 |
$ |
26.00 |
||||||||||
Tangible Common Equity to Tangible Assets: |
||||||||||||||||||||
Total Assets (GAAP) |
$ |
6,320,798 |
$ |
6,115,306 |
$ |
5,907,685 |
$ |
5,860,810 |
$ |
5,784,983 |
||||||||||
Less goodwill and other intangibles |
93,967 |
94,417 |
94,871 |
95,328 |
95,807 |
|||||||||||||||
Tangible Assets (Non-GAAP) |
$ |
6,226,831 |
$ |
6,020,889 |
$ |
5,812,814 |
$ |
5,765,482 |
$ |
5,689,176 |
||||||||||
Tangible common equity to tangible assets (Non-GAAP) |
7.83 |
% |
8.01 |
% |
8.04 |
% |
7.93 |
% |
7.78 |
% |
||||||||||
1 Tangible book value per common share (Non-GAAP) is computed by dividing total shareholders’ equity, less goodwill and other intangible assets, by common shares outstanding. |
||||||||||||||||||||