SmartFinancial Announces Results for the Second Quarter 2025

Business Wire

4 days ago

KNOXVILLE, Tenn.--(BUSINESS WIRE)--SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NYSE: SMBK), today announced net income of $11.7 million, or $0.69 per diluted common share, for the second quarter of 2025, compared to net income of $8.0 million, or $0.48 per diluted common share, for the second quarter of 2024, and compared to prior quarter net income of $11.3 million, or $0.67 per diluted common share. Operating earnings 1, which excludes non-recurring income, net of tax adjustments, totaled $11.7 million, or $0.69 per diluted common share, in the second quarter of 2025, compared to $7.8 million, or $0.46 per diluted common share, in the second quarter of 2024, and compared to $11.3 million, or $0.67 per diluted common share, in the first quarter of 2025.
Highlights for the Second Quarter of 2025
Operating earnings 1 of $11.7 million, or $0.69 per diluted common share
Net organic loan and lease growth of $132 million with 13% annualized quarter-over-quarter increase
Five consecutive quarters of positive operating leverage
Credit quality remains solid with nonperforming assets to total assets of 0.19%
Quarter over quarter tangible book value per share growth of 13.7%
Recertified as a Great Place to Work by over 92% of SmartBank associates
Three business production team members added to Commercial and Private Banking teams
Billy Carroll, President & CEO, stated: "Once again, our Company delivered sustained growth and increasing returns, resulting in five consecutive quarters of positive operating leverage. Despite continued market volatility, our SmartBank team members generated quarterly loan growth of 13% annualized, a testament to our team's commitment and unmatched professionalism. Our capital base continues to strengthen, and our asset quality remains solid (non-performing assets at 0.19% of total assets). As we reach the midpoint of 2025, it has become increasingly clear that leveraging our platform organically and recruiting top talent is an effective and successful strategy. Thank you to all SmartBank associates for your hard work in making us a leading Southeast banking franchise!'
SmartFinancial's Chairman, Miller Welborn, concluded: "The Board could not be more pleased with the positive momentum of our Company. Operating leverage, margin, tangible book value and earnings per share all continue to trend positively and, equally important, our Company continues to maintain its steadfast commitment to culture. Once again, this quarter saw SmartBank recertified as a Great Place to Work by over 92% of its associate base, a tremendous honor that we look forward to continuing for years to come.'
Net Interest Income and Net Interest Margin
Net interest income was $40.3 million for the second quarter of 2025, compared to $38.2 million for the prior quarter. Average earning assets totaled $4.96 billion, an increase of $87.8 million from the prior quarter. The balances of average earnings assets changed quarter-over-quarter, primarily from an increase in average loans and leases of $109.2 million and securities of $9.9 million, offset by a decrease in average interest-earning cash of $31.3 million. Average interest-bearing liabilities increased by $62.0 million from the prior quarter, primarily attributable to an increase in average deposits of $62.4 million, offset by a decrease in borrowings of $437 thousand.
The tax equivalent net interest margin was 3.29% for the second quarter of 2025, compared to 3.21% for the prior quarter. The tax equivalent net interest margin was positively impacted primarily by the increased yield on interest-earning assets and offset by an increase in the cost of interest-bearing liabilities, quarter-over-quarter. The yield on loans and leases, excluding loan fees, on a fully tax equivalent basis ('FTE') was 5.99% for the second quarter, compared to 5.88% for the prior quarter.
The cost of total deposits for the second quarter of 2025 was 2.39%, compared to 2.37% in the prior quarter. The cost of interest-bearing liabilities was 2.99% for the second quarter, compared to 2.97% in the prior quarter. The cost of average interest-bearing deposits was 2.95% for the second quarter of 2025, compared to 2.92% for the prior quarter, an increase of three basis points.
The following table presents selected interest rates and yields for the periods indicated:
Provision for Credit Losses on Loans and Leases and Credit Quality
At June 30, 2025, the allowance for credit losses was $39.8 million. The allowance for credit losses to total loans and leases was 0.96% as of June 30, 2025, and March 31, 2025.
The following table presents detailed information related to the provision for credit losses for the periods indicated (dollars in thousands):
Nonperforming loans and leases as a percentage of total loans and leases was 0.19% as of June 30, 2025, and 0.20% as of March 31, 2025. 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 0.19% as of June 30, 2025, and March 31, 2025.
The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands):
Noninterest Income
Noninterest income increased $301 thousand to $8.9 million for the second quarter of 2025, compared to $8.6 million for the prior quarter. The current quarter increase was primarily attributable to increases in mortgage banking income, insurance commissions, interchange and debit card transactions and other, offset by a decrease in investment services.
The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands):
Noninterest Expense
Noninterest expense increased $273 thousand to $32.6 million for the second quarter of 2025, compared to $32.3 million for the prior quarter. The current quarter's increase was primarily attributable to an increase in salaries and employee benefits from additional incentive accruals, offset by a decrease in professional services. The changes in the other categories of noninterest expense were minimal.
The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands):
Income Tax Expense
Income tax expense was $2.6 million for the second quarter of 2025, an increase of $250 thousand, compared to $2.3 million for the prior quarter.
Balance Sheet Trends
Total assets at June 30, 2025, were $5.49 billion compared to $5.28 billion at December 31, 2024. The $215.0 million increase is primarily attributable to increases in loans and leases of $217.7 million and securities of $17.7 million, offset by a decrease in cash and cash equivalents of $22.5 million.
Total liabilities were $4.97 billion at June 30, 2025, compared to $4.78 billion at December 31, 2024, an increase of $187.3 million. Total deposits increased $185.6 million, which was driven primarily by increases in other time deposits of $95.2 million, money market deposits of $85.1 million and, interest-bearing demand deposits of $7.1 million and the issuance of brokered deposits of $56.9 million, offset by a decline in noninterest demand deposits of $58.6 million.
Shareholders' equity at June 30, 2025, totaled $519.1 million, an increase of $27.7 million, from December 31, 2024. The increase in shareholders' equity was primarily driven by net income of $23.0 million for the six months ending June 30, 2025, and a positive change of $6.4 million in accumulated other comprehensive loss, offset by dividends paid of $2.7 million. Tangible book value per share 2 was $24.42 at June 30, 2025, compared to $22.85 at December 31, 2024. Tangible common equity 1 as a percentage of tangible assets 1 was 7.71% at June 30, 2025, compared with 7.48% at December 31, 2024.
The following table presents selected balance sheet information for the periods indicated (dollars in thousands):
Conference Call Information
SmartFinancial issued this earnings release for the second quarter of 2025 on Monday, July 21, 2025, and will host a conference call on Tuesday, July 22, 2025, at 10:00 a.m. ET. To access this interactive teleconference, dial [phone] or [phone] and enter the access code, 342904. A replay of the conference call will be available through September 20, 2025, by dialing [phone] or [phone] and enter the access code, 216208. Conference call materials will be published on the Company's webpage located at http://www.smartfinancialinc.com/CorporateProfile, at 9:00 a.m. ET prior to the conference call.
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, and Florida. 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:
Operating earnings
Operating noninterest income
Operating noninterest expense
Operating pre-provision net revenue ('PPNR') earnings
Tangible common equity
Average tangible common equity
Tangible book value per common share
Tangible assets
Operating efficiency ratio
Operating earnings, operating PPNR earnings, operating noninterest income and operating noninterest expense exclude non-operating related income and expense items from net income, noninterest income and noninterest expense, respectively. Tangible common equity and average tangible common equity exclude goodwill and other intangible assets from shareholders' equity and average shareholders' equity, respectively. Tangible book value per common share is tangible common equity divided by common shares outstanding. Tangible assets excludes goodwill and other intangibles from total assets. Operating efficiency ratio is the quotient of operating noninterest expense divided by the sum of net interest income adjusted for taxable equivalent yields plus operating noninterest income. A detailed reconciliation 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 merger and acquisition activity, including risks associated with our pursuit of future acquisitions;
(4) changes in management's plans for the future;
(5) prevailing, or changes in, economic or political conditions (including those resulting from the new 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; and
(20) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services.
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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
(dollars in thousands)
Ending Balances
Jun
Mar
Dec
Sep
Jun
2025
2025
2024
2024
2024
Assets:
Cash and cash equivalents
$
365,096
$
422,984
$
387,570
$
192,914
$
342,835
Securities available-for-sale, at fair value
502,150
499,445
482,328
501,336
500,821
Securities held-to-maturity, at amortized cost
124,520
125,576
126,659
127,779
128,996
Other investments
14,713
14,371
14,740
20,352
13,780
Loans held for sale
5,484
3,843
5,996
5,804
3,103
Loans and leases
4,124,062
3,992,207
3,906,340
3,717,478
3,574,158
Less: Allowance for credit losses
(39,776
)
(38,175
)
(37,423
)
(35,609
)
(34,690
)
Loans and leases, net
4,084,286
3,954,032
3,868,917
3,681,869
3,539,468
Premises and equipment, net
90,204
90,708
91,093
91,055
91,315
Other real estate owned
144
144
179
179
688
Goodwill and other intangibles, net
103,588
104,154
104,723
105,324
105,929
Bank owned life insurance
117,697
116,805
115,917
105,025
84,483
Other assets
82,981
79,155
77,782
77,297
79,591
Total assets
$
5,490,863
$
5,411,217
$
5,275,904
$
4,908,934
$
4,891,009
Liabilities:
Deposits:
Noninterest-bearing demand
$
906,965
$
884,294
$
965,552
$
863,949
$
903,300
Interest-bearing demand
843,820
885,063
836,731
834,207
988,057
Money market and savings
2,124,623
2,131,828
2,039,560
1,854,777
1,901,281
Time deposits
996,712
907,474
844,640
769,558
524,018
Total deposits
4,872,120
4,808,659
4,686,483
4,322,491
4,316,656
Borrowings
6,966
7,610
8,135
8,997
12,732
Subordinated debt
39,726
39,705
39,684
39,663
42,142
Other liabilities
52,924
49,302
50,141
48,760
47,014
Total liabilities
4,971,736
4,905,276
4,784,443
4,419,911
4,418,544
Shareholders' Equity:
Common stock
17,018
17,018
16,926
16,926
16,926
Additional paid-in capital
295,209
294,736
294,269
293,909
293,586
Retained earnings
224,061
213,721
203,824
195,537
187,751
Accumulated other comprehensive loss
(17,274
)
(19,647
)
(23,671
)
(17,349
)
(25,798
)
Total shareholders' equity attributable to SmartFinancial Inc. and Subsidiary
519,014
505,828
491,348
489,023
472,465
Non-controlling interest - preferred stock of subsidiary
113
113
113
—
—
Total shareholders' equity
519,127
505,941
491,461
489,023
472,465
Total liabilities & shareholders' equity
$
5,490,863
$
5,411,217
$
5,275,904
$
4,908,934
$
4,891,009
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SmartFinancial, Inc. and Subsidiary
(dollars in thousands except share and per share data)
Three Months Ended
Six Months Ended
Jun
Mar
Dec
Sep
Jun
Jun
Jun
2025
2025
2024
2024
2024
2025
2024
Interest income:
Loans and leases, including fees
$
61,049
$
57,762
$
57,951
$
54,738
$
50,853
$
118,811
$
100,873
Investment securities:
Taxable
4,848
4,775
5,050
5,233
5,320
9,623
9,869
Tax-exempt
395
354
351
350
353
749
705
Federal funds sold and other earning assets
3,161
3,485
2,744
3,635
4,759
6,647
9,620
Total interest income
69,453
66,376
66,096
63,956
61,285
135,830
121,067
Interest expense:
Deposits
28,301
27,335
27,437
27,350
27,439
55,636
54,474
Borrowings
70
70
89
709
148
140
276
Subordinated debt
739
733
787
865
884
1,472
1,782
Total interest expense
29,110
28,138
28,313
28,924
28,471
57,248
56,532
Net interest income
40,343
38,238
37,783
35,032
32,814
78,582
64,535
Provision for credit losses
2,411
979
2,135
2,575
883
3,391
443
Net interest income after provision for credit losses
37,932
37,259
35,648
32,457
31,931
75,191
64,092
Noninterest income:
Service charges on deposit accounts
1,766
1,736
1,778
1,780
1,692
3,502
3,304
Gain (loss) on sale of securities, net
(4
)
—
64
—
—
(4
)
—
Mortgage banking
633
493
541
410
348
1,126
628
Investment services
1,440
1,769
1,382
1,881
1,302
3,209
2,682
Insurance commissions
1,554
1,412
1,832
1,477
1,284
2,967
2,387
Interchange and debit card transaction fees
1,342
1,220
1,332
1,349
1,343
2,562
2,596
Other
2,167
1,967
2,101
2,242
1,635
4,133
4,387
Total noninterest income
8,898
8,597
9,030
9,139
7,604
17,495
15,984
Noninterest expense:
Salaries and employee benefits
19,602
19,234
19,752
18,448
17,261
38,836
33,900
Occupancy and equipment
3,432
3,397
3,473
3,423
3,324
6,829
6,720
FDIC insurance
992
960
825
825
825
1,952
1,740
Other real estate and loan related expense
757
658
1,241
460
538
1,415
1,123
Advertising and marketing
390
382
397
327
295
772
597
Data processing and technology
2,651
2,657
2,495
2,519
2,452
5,309
4,916
Professional services
1,153
1,368
1,017
1,201
1,064
2,521
1,989
Amortization of intangibles
566
569
601
604
608
1,135
1,220
Other
3,026
3,071
2,490
3,039
2,834
6,097
5,549
Total noninterest expense
32,569
32,296
32,291
30,846
29,201
64,866
57,754
Income before income taxes
14,261
13,560
12,387
10,750
10,334
27,820
22,322
Income tax expense
2,556
2,306
2,747
1,610
2,331
4,861
4,962
Net income
$
11,705
$
11,254
$
9,640
$
9,140
$
8,003
$
22,959
$
17,360
Earnings per common share:
Basic
$
0.70
$
0.67
$
0.58
$
0.55
$
0.48
$
1.37
$
1.03
Diluted
$
0.69
$
0.67
$
0.57
$
0.54
$
0.48
$
1.36
$
1.03
Weighted average common shares outstanding:
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SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
YIELD ANALYSIS
Three Months Ended
June 30, 2025
March 31, 2025
June 30, 2024
Average
Yield/
Average
Yield/
Average
Yield/
Balance
Interest
Cost
Balance
Interest
Cost
Balance
Interest
Cost
Assets:
Loans and leases, including fees 1
$
4,050,485
$
61,294
6.07
%
$
3,941,295
$
58,008
5.97
%
$
3,504,265
$
51,110
5.87
%
Taxable securities
562,660
4,848
3.46
%
555,914
4,775
3.48
%
580,517
5,320
3.69
%
Tax-exempt securities 2
66,223
500
3.03
%
63,085
448
2.88
%
63,690
447
2.82
%
Federal funds sold and other earning assets
275,647
3,161
4.60
%
306,966
3,485
4.60
%
346,459
4,759
5.52
%
Total interest-earning assets
4,955,015
69,803
5.65
%
4,867,260
66,716
5.56
%
4,494,931
61,636
5.52
%
Noninterest-earning assets
405,804
405,860
383,697
Total assets
$
5,360,819
$
5,273,120
$
4,878,628
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits
$
835,394
3,785
1.82
%
$
846,823
3,743
1.79
%
$
983,433
5,950
2.43
%
Money market and savings deposits
2,104,236
15,762
3.00
%
2,064,134
15,065
2.96
%
1,909,125
16,529
3.48
%
Time deposits
914,658
8,754
3.84
%
880,933
8,527
3.93
%
528,985
4,960
3.77
%
Total interest-bearing deposits
3,854,288
28,301
2.95
%
3,791,890
27,335
2.92
%
3,421,543
27,439
3.23
%
Borrowings
7,783
70
3.61
%
8,220
70
3.45
%
12,684
148
4.69
%
Subordinated debt
39,714
739
7.46
%
39,692
733
7.49
%
42,129
884
8.44
%
Total interest-bearing liabilities
3,901,785
29,110
2.99
%
3,839,802
28,138
2.97
%
3,476,356
28,471
3.29
%
Noninterest-bearing deposits
898,428
884,078
888,693
Other liabilities
49,539
51,260
47,208
Total liabilities
4,849,752
4,775,140
4,412,257
Shareholders' equity
511,067
497,980
466,371
Total liabilities and shareholders' equity
$
5,360,819
$
5,273,120
$
4,878,628
Net interest income, taxable equivalent
$
40,693
$
38,578
$
33,165
Interest rate spread
2.66
%
2.59
%
2.22
%
Tax equivalent net interest margin
3.29
%
3.21
%
2.97
%
Percentage of average interest-earning assets to average interest-bearing liabilities
126.99
%
126.76
%
129.30
%
Percentage of average equity to average assets
9.53
%
9.44
%
9.56
%
1 Yields computed on tax-exempt loans on a tax equivalent basis include $245 thousand, $246 thousand, and $257 thousand of taxable equivalent income for the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.
2 Yields computed on tax-exempt instruments on a tax equivalent basis include $105 thousand, $94 thousand, and $94 thousand of taxable equivalent income for the quarters ended June 30, 2025, March 31, 2025, and June 30, 2024, respectively.
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SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
YIELD ANALYSIS
Six Months Ended
June 30, 2024
Average
Yield/
Average
Yield/
Balance
Interest
Cost
Balance
Interest
Cost
Assets:
Loans and leases, including fees 1
$
3,996,192
$
119,302
6.02
%
$
3,481,187
$
101,130
5.84
%
Taxable securities
559,306
9,623
3.47
%
600,661
9,869
3.30
%
Tax-exempt securities 2
64,663
948
2.96
%
63,925
892
2.81
%
Federal funds sold and other earning assets
291,219
6,647
4.60
%
350,186
9,620
5.52
%
Total interest-earning assets
4,911,380
136,520
5.61
%
4,495,959
121,511
5.44
%
Noninterest-earning assets
405,832
381,964
Total assets
$
5,317,212
$
4,877,923
Liabilities and Shareholders' Equity:
Interest-bearing demand deposits
$
841,077
7,528
1.80
%
$
989,790
12,010
2.44
%
Money market and savings deposits
2,084,296
30,826
2.98
%
1,906,990
32,677
3.45
%
Time deposits
897,889
17,282
3.88
%
535,389
9,787
3.68
%
Total interest-bearing deposits
3,823,262
55,636
2.93
%
3,432,169
54,474
3.19
%
Borrowings
8,000
140
3.53
%
11,964
276
4.64
%
Subordinated debt
39,703
1,472
7.48
%
42,118
1,782
8.51
%
Total interest-bearing liabilities
3,870,965
57,248
2.98
%
3,486,251
56,532
3.26
%
Noninterest-bearing deposits
891,293
880,767
Other liabilities
50,394
47,146
Total liabilities
4,812,652
4,414,164
Shareholders' equity
504,560
463,759
Total liabilities and shareholders' equity
$
5,317,212
$
4,877,923
Net interest income, taxable equivalent
$
79,272
$
64,979
Interest rate spread
2.62
%
2.17
%
Tax equivalent net interest margin
3.25
%
2.91
%
Percentage of average interest-earning assets to average interest-bearing liabilities
126.88
%
128.96
%
Percentage of average equity to average assets
9.49
%
9.51
%
1 Yields computed on tax-exempt loans on a tax equivalent basis include $491 thousand and $257 thousand of taxable equivalent income for the six months ended June 30, 2025 and June 30, 2024, respectively.
2 Yields computed on tax-exempt instruments on a tax equivalent basis include $199 thousand and $187 thousand of taxable equivalent income for the six months ended June 30, 2025 and June 30, 2024, respectively.
Expand
SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
As of and for The Three Months Ended
Jun
Mar
Dec
Sep
Jun
2025
2025
2024
2024
2024
Composition of Loans and Leases:
Commercial real estate:
Non-owner occupied
$
1,114,133
$
1,117,392
$
1,080,404
$
1,031,708
$
986,278
Owner occupied
958,989
885,396
867,678
868,077
829,085
Commercial real estate, total
2,073,122
2,002,788
1,948,082
1,899,785
1,815,363
Consumer real estate
803,270
784,602
741,836
690,504
678,331
Construction & land development
391,155
357,393
361,735
315,006
294,575
Commercial & industrial
778,754
768,454
775,620
731,600
701,460
Leases
62,495
64,208
64,878
67,052
70,299
Consumer and other
15,266
14,762
14,189
13,531
14,130
Total loans and leases
$
4,124,062
$
3,992,207
$
3,906,340
$
3,717,478
$
3,574,158
Asset Quality and Additional Loan Data:
Nonperforming loans and leases
$
7,921
$
7,807
$
7,872
$
9,491
$
6,642
Other real estate owned
144
144
179
179
688
Other repossessed assets
2,397
2,414
2,037
2,949
2,645
Total nonperforming assets
$
10,462
$
10,365
$
10,088
$
12,619
$
9,975
Modified loans and leases 1 not included in nonperforming loans and leases
$
1,660
$
1,978
$
3,989
$
4,053
$
4,241
Net charge-offs to average loans and leases (annualized)
0.01
%
0.01
%
0.02
%
0.15
%
0.05
%
Allowance for credit losses to loans and leases
0.96
%
0.96
%
0.96
%
0.96
%
0.97
%
Nonperforming loans and leases to total loans and leases, gross
0.19
%
0.20
%
0.20
%
0.26
%
0.19
%
Nonperforming assets to total assets
0.19
%
0.19
%
0.19
%
0.26
%
0.20
%
Capital Ratios:
Equity to Assets
9.45
%
9.35
%
9.32
%
9.96
%
9.66
%
Tangible common equity to tangible assets (Non-GAAP) 2
7.71
%
7.57
%
7.48
%
7.99
%
7.66
%
SmartFinancial, Inc. 3
Tier 1 leverage
8.25
%
8.16
%
8.29
%
8.44
%
8.32
%
Common equity Tier 1
9.68
%
9.79
%
9.76
%
10.06
%
10.06
%
Tier 1 capital
9.68
%
9.79
%
9.76
%
10.06
%
10.06
%
Total capital
11.05
%
11.18
%
11.10
%
11.62
%
11.68
%
SmartBank 3
Tier 1 leverage
8.88
%
8.76
%
8.94
%
9.17
%
9.11
%
Common equity Tier 1
10.43
%
10.51
%
10.51
%
10.92
%
11.02
%
Tier 1 capital
10.43
%
10.51
%
10.51
%
10.92
%
11.02
%
Total capital
11.27
%
11.35
%
11.30
%
11.69
%
11.79
%
1 Borrowers that have experienced financial difficulty.
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.
Expand
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
Six Months Ended
Jun
Mar
Dec
Sep
Jun
Jun
Jun
2025
2025
2024
2024
2024
2025
2024
Selected Performance Ratios (Annualized):
Return on average assets
0.88
%
0.87
%
0.75
%
0.74
%
0.66
%
0.87
%
0.72
%
Return on average shareholders' equity
9.19
%
9.17
%
7.84
%
7.60
%
6.90
%
9.18
%
7.53
%
Return on average tangible common equity¹
11.53
%
11.60
%
9.99
%
9.75
%
8.94
%
11.56
%
9.77
%
Noninterest income / average assets
0.67
%
0.66
%
0.71
%
0.74
%
0.63
%
0.66
%
0.66
%
Noninterest expense / average assets
2.44
%
2.48
%
2.52
%
2.50
%
2.41
%
2.46
%
2.38
%
Efficiency ratio
66.14
%
68.96
%
68.98
%
69.83
%
72.25
%
67.51
%
71.73
%
Operating Selected Performance Ratios (Annualized):
Operating return on average assets 1
0.88
%
0.87
%
0.75
%
0.74
%
0.64
%
0.87
%
0.67
%
Operating PPNR return on average assets 1
1.25
%
1.12
%
1.13
%
1.08
%
0.90
%
1.18
%
0.87
%
Operating return on average shareholders' equity 1
9.19
%
9.17
%
7.80
%
7.60
%
6.72
%
9.18
%
7.00
%
Operating return on average tangible common equity 1
11.53
%
11.60
%
9.94
%
9.75
%
8.70
%
11.57
%
9.09
%
Operating efficiency ratio 1
65.66
%
68.46
%
68.58
%
69.28
%
72.13
%
67.02
%
72.81
%
Operating noninterest income / average assets 1
0.67
%
0.66
%
0.70
%
0.74
%
0.60
%
0.66
%
0.59
%
Operating noninterest expense / average assets 1
2.44
%
2.48
%
2.52
%
2.50
%
2.41
%
2.46
%
2.38
%
Selected Interest Rates and Yields:
Yield on loans and leases, excluding loan fees, FTE
5.99
%
5.88
%
5.95
%
5.95
%
5.80
%
5.94
%
5.76
%
Yield on loans and leases, FTE
6.07
%
5.97
%
6.04
%
6.02
%
5.87
%
6.02
%
5.84
%
Yield on earning assets, FTE
5.65
%
5.56
%
5.64
%
5.65
%
5.52
%
5.61
%
5.44
%
Cost of interest-bearing deposits
2.95
%
2.92
%
3.02
%
3.20
%
3.23
%
2.93
%
3.19
%
Cost of total deposits
2.39
%
2.37
%
2.43
%
2.54
%
2.56
%
2.38
%
2.54
%
Cost of interest-bearing liabilities
2.99
%
2.97
%
3.08
%
3.29
%
3.29
%
2.98
%
3.26
%
Net interest margin, FTE
3.29
%
3.21
%
3.24
%
3.11
%
2.97
%
3.25
%
2.91
%
Per Common Share:
Net income, basic
$
0.70
$
0.67
$
0.58
$
0.55
$
0.48
$
1.37
$
1.03
Net income, diluted
0.69
0.67
0.57
0.54
0.48
1.36
1.03
Operating earnings, basic¹
0.70
0.67
0.57
0.55
0.47
1.37
0.96
Operating earnings, diluted¹
0.69
0.67
0.57
0.54
0.46
1.36
0.96
Book value
30.51
29.73
29.04
28.89
27.91
30.51
27.91
Tangible book value¹
24.42
23.61
22.85
22.67
21.66
24.42
21.66
Common shares outstanding
17,017,547
17,017,547
16,925,672
16,926,374
16,925,902
17,017,547
16,925,902
1 Non-GAAP measure. See reconciliation of Non-GAAP measures.
Expand
SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
Three Months Ended
Six Months Ended
Jun
Mar
Dec
Sep
Jun
Jun
Jun
2025
2025
2024
2024
2024
2025
2024
Operating Earnings:
Net income (GAAP)
$
11,705
$
11,254
$
9,640
$
9,140
$
8,003
$
22,959
$
17,360
Noninterest income:
Securities losses (gains), net
4
—
(64
)
—
—
4
—
Gain on sale of former branch building
—
—
—
—
(283
)
—
(1,629
)
Income taxes:
Income tax effect of adjustments
(1
)
—
17
—
73
(1
)
421
Operating earnings (Non-GAAP)
$
11,708
$
11,254
$
9,593
$
9,140
$
7,793
$
22,962
$
16,152
Operating earnings per common share (Non-GAAP):
Basic
$
0.70
$
0.67
$
0.57
$
0.55
$
0.47
$
1.37
$
0.96
Diluted
0.69
0.67
0.57
0.54
0.46
1.36
0.96
Operating Noninterest Income:
Noninterest income (GAAP)
$
8,898
$
8,597
$
9,030
$
9,139
$
7,604
$
17,495
$
15,984
Securities losses (gains), net
4
—
(64
)
—
—
4
—
Gain on sale of former branch building
—
—
—
—
(283
)
—
(1,629
)
Operating noninterest income (Non-GAAP)
$
8,902
$
8,597
$
8,966
$
9,139
$
7,321
$
17,499
$
14,355
Operating noninterest income (Non-GAAP)/average assets 1
0.67
%
0.66
%
0.70
%
0.74
%
0.60
%
0.66
%
0.59
Operating Noninterest Expense:
Noninterest expense (GAAP)
$
32,569
$
32,296
$
32,291
$
30,846
$
29,201
$
64,866
$
57,754
Merger related and restructuring expenses
—
—
—
—
—
—
—
Operating noninterest expense (Non-GAAP)
$
32,569
$
32,296
$
32,291
$
30,846
$
29,201
$
64,866
$
57,754
Operating noninterest expense (Non-GAAP)/average assets 2
2.44
%
2.48
%
2.52
%
2.50
%
2.41
%
2.46
%
2.38
Operating Pre-provision Net revenue ("PPNR") Earnings:
Net interest income (GAAP)
$
40,343
$
38,238
$
37,783
$
35,032
$
32,814
$
78,582
$
64,535
Operating noninterest income (Non-GAAP)
8,902
8,597
8,966
9,139
7,321
17,499
14,355
Operating noninterest expense (Non-GAAP)
(32,569
)
(32,296
)
(32,291
)
(30,846
)
(29,201
)
(64,866
)
(57,754
)
Operating PPNR earnings (Non-GAAP)
$
16,676
$
14,539
$
14,458
$
13,325
$
10,934
$
31,215
$
21,136
Non-GAAP Return Ratios:
Operating return on average assets (Non-GAAP) 3
0.88
%
0.87
%
0.75
%
0.74
%
0.64
%
0.87
%
0.67
Operating PPNR return on average assets (Non-GAAP) 4
1.25
%
1.12
%
1.13
%
1.08
%
0.90
%
1.18
%
0.87
Return on average tangible common equity (Non-GAAP) 5
11.53
%
11.60
%
9.99
%
9.75
%
8.93
%
11.56
%
9.77
Operating return on average shareholders' equity (Non-GAAP) 6
9.19
%
9.17
%
7.80
%
7.60
%
6.72
%
9.18
%
7.00
Operating return on average tangible common equity (Non-GAAP) 7
11.53
%
11.60
%
9.94
%
9.75
%
8.70
%
11.57
%
9.09
Operating Efficiency Ratio:
Efficiency ratio (GAAP)
66.14
%
68.96
%
68.98
%
69.83
%
72.25
%
67.51
%
71.73
Adjustment for taxable equivalent yields
(0.47
)
%
(0.50
)
%
(0.49
)
%
(0.55
)
%
(0.63
)
%
(0.49
)
%
(0.40
)
Adjustment for securities gains (losses)
(0.01
)
%
—
%
0.09
%
—
%
—
%
—
%
—
Adjustment for sale of branch location
—
%
—
%
—
%
—
%
0.51
%
—
%
1.48
Operating efficiency ratio (Non-GAAP)
65.66
%
68.46
%
68.58
%
69.28
%
72.13
%
67.02
%
72.81
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).
Expand
SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
Three Months Ended
Jun
Mar
Dec
Sep
Jun
2025
2025
2024
2024
2024
Tangible Common Equity:
Shareholders' equity (GAAP)
$
519,127
$
505,941
$
491,461
$
489,023
$
472,465
Less goodwill and other intangible assets
103,588
104,154
104,723
105,324
105,929
Tangible common equity (Non-GAAP)
$
415,539
$
401,787
$
386,738
$
383,699
$
366,536
Average Tangible Common Equity:
Average shareholders' equity (GAAP)
$
511,067
$
497,980
$
489,172
$
478,642
$
466,371
Less average goodwill and other intangible assets
103,936
104,504
105,093
105,701
106,301
Average tangible common equity (Non-GAAP)
$
407,131
$
393,476
$
384,079
$
372,941
$
360,070
Tangible Book Value per Common Share:
Book value per common share (GAAP)
$
30.51
$
29.73
$
29.04
$
28.89
$
27.91
Adjustment due to goodwill and other intangible assets
(6.09
)
(6.12
)
(6.19
)
(6.22
)
(6.26
)
Tangible book value per common share (Non-GAAP) 1
$
24.42
$
23.61
$
22.85
$
22.67
$
21.66
Tangible Common Equity to Tangible Assets:
Total Assets (GAAP)
$
5,490,863
$
5,411,217
$
5,275,904
$
4,908,934
$
4,891,009
Less goodwill and other intangibles
103,588
104,154
104,723
105,324
105,929
Tangible Assets (Non-GAAP)
$
5,387,275
$
5,307,063
$
5,171,181
$
4,803,610
$
4,785,080
Tangible common equity to tangible assets (Non-GAAP)
7.71
%
7.57
%
7.48
%
7.99
%
7.66
%
1 Tangible book value per share (Non-GAAP) is computed by dividing total shareholders' equity, less goodwill and other intangible assets, by common shares outstanding.
Expand