U.S. markets closed

SmartFinancial Announces Results for the First Quarter 2020

SmartFinancial Announces Results for the First Quarter 2020

KNOXVILLE, Tenn., April 28, 2020 (GLOBE NEWSWIRE) -- SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NASDAQ: SMBK), today announced net income of $2.7 million, or $0.19 per diluted common share, for the first quarter of 2020, compared to net income of $6.7 million, or $0.48 per diluted common share for the fourth quarter of 2019.  Net operating earnings (Non-GAAP), which excludes securities gains, merger related and restructuring expenses and non-operating items, totaled $4.3 million, or $0.30 per diluted common share, in the first quarter of 2020, compared to $6.5 million, or $0.46 per diluted common share, in the fourth quarter of 2019.

Highlights for the First Quarter of 2020

  • Completed the acquisition of Progressive Financial Group, Inc. ("PFG")
  • Net income of $2.7 million and net operating earnings of $4.3 million (Non-GAAP)
  • Return on average assets of 0.43% and net operating annualized return on average assets (Non-GAAP) of 0.67%
  • Asset quality remains strong with nonperforming assets to total assets of 0.31%
  • Loan growth (excluding loans acquired from PFG) of $53.9 million, or 11.4% annualized
  • Tangible book value (Non-GAAP) per share of $16.40, a 8.0% year-over-year increase
  • Allowance for loan losses increased to $13.4 million, an increase 31.1%, in light of the current economic conditions

Billy Carroll, President & CEO, stated: “We are pleased to report another very solid quarter during what has proven to be a difficult and uncertain environment for many of our clients.  Our team has worked extremely hard to assist clients that have been impacted due to COVID-19, including participation in the Small Business Administration’s Paycheck Protection Program (“PPP”).  We mobilized our team to successfully process approximately 1,700 applications totaling over $239 million of loans through the month of April, in round one of the PPP program, as we look forward to our economy’s “restart”, we are well positioned for the future.”

SmartFinancial's Chairman, Miller Welborn, concluded: “I am extremely proud of this team as we stepped up to help our clients in this time of stress.  All of our associates have shown incredible commitment to strengthen, not just our company’s financials, but our clients and communities as well.  We also welcome Progressive Financial Group to the SmartFinancial family.  This transaction is a great step forward in our growth strategy.”

SmartFinancial completed the acquisition of PFG and its wholly owned subsidiary Progressive Savings Bank on March 1, 2020, and this quarter includes one month results of the acquired company.

Net Interest Income and Net Interest Margin

Net interest income was $22.6 million for the first quarter of 2020, compared to $21.1 million for the fourth quarter of 2019.  The tax equivalent net interest margin was 3.90% for the first quarter of 2020, compared to 3.84% for the fourth quarter of 2019.  The tax equivalent average yield on interest-earning assets was 4.83% for the first quarter of 2020, a decrease from 4.92% for the fourth quarter of 2019. The yield on interest-bearing liabilities decreased to 1.20% for the first quarter of 2020 from 1.39% for the fourth quarter of 2019.

The yield on average loans was 5.35% for the first quarter of 2020, compared to 5.36% for the fourth quarter of 2019. During the first quarter of 2020, increased discount accretion was recorded on acquired loans (37 basis points in the first quarter of 2020, versus 29 basis points in the fourth quarter of 2019) with loan fees remaining stable quarter over quarter.  For the first quarter of 2020, the yield on average loans, excluding accretion, was 4.98%, a decrease of 9 basis points from the 5.07% reported in the fourth quarter of 2019. The decrease in yield on average loans from the fourth quarter of 2019, compared to the first quarter of 2020, was due to market competition and, to a lesser extent, the two emergency interest rate cuts by the Federal Reserve in March of 2020.  The impact of the acquired loan discount accretion on the tax equivalent net interest margin was 32 basis points for the first quarter of 2020 and 25 basis points for the fourth quarter of 2019.

The cost of average interest-bearing deposits was 1.10% for the first quarter of 2020 compared to 1.29% for the fourth quarter of 2019.  The overall decrease of 19 basis points in average interest-bearing deposits from the fourth quarter of 2019 to the first quarter of 2020 was primarily from the Company's  actions to reduce deposit rates in light of the interest rate cuts.

Provision for Loan Loss and Credit Quality

Provision for loan losses was $3.2 million in the first quarter of 2020, compared to $685 thousand in the fourth quarter of 2019. The allowance for loan losses to originated loans was $12.4 million, or 0.77%, as of March 31, 2020, compared to $10.0 million, or 0.66% as of December 31, 2019, an increase of over 24%.  The allowance for loan losses to total loans was $13.4 million, or 0.63%, as of March 31, 2020, compared to $10.2 million, or 0.54% as of December 31, 2019.  The remaining discounts on the acquired loan portfolio totaled $17.2 million, or 3.33% as of March 31, 2020.  The increase in the provision for loan losses in the first quarter of 2020 was the result of the deterioration in the qualitative factors, such as unemployment and GDP, in our loan loss allowance methodology which was caused by the unstable economic conditions facing the U.S. economy related to the challenges being faced with the world wide COVID-19 pandemic.

The company is not required to implement the provisions of the CECL accounting standard until January 1, 2023, and is continuing to account for the allowance for loan losses under the incurred loss model.  
               
Nonperforming loans as a percentage of total loans was 0.14% as of March 31, 2020, a decrease of four basis points from the 0.18% reported in the fourth quarter of 2019.  Total nonperforming assets (which include nonaccrual loans, loans past due 90 days or more and still accruing, and other real estate owned) as a percentage of total assets was 0.31% as of March 31, 2020, as compared to 0.21% as of December 31, 2019. The ten basis point increase is primarily attributable to the addition of other real estate owned from the PFG acquisition.

Noninterest Income

Noninterest income was $2.8 million for the first quarter of 2020 and the fourth quarter of 2019.  During the first quarter of 2020, the primary components of the changes in noninterest income were as follows:

  • Increase in mortgage banking income of $210 thousand; 
  • Increase in investment services income of $176 thousand, stemming from additional production and personnel hires during 2019;
  • Addition of insurance commissions income of $269 thousand, new non-interest income source from the acquisition of PFG;
  • Increase in interchange and debit card transaction fees of $113 thousand, primarily related to the acquisition of PFG; and
  • Decrease in other non-interest income of $787 thousand, primarily from $720 thousand in non-recurring income recorded during the fourth quarter of 2019.

Noninterest Expense

Noninterest expense was $18.8 million for the first quarter of 2020, an increase of $2.7 million, compared to $16.1 million for the fourth quarter of 2019.  During the first quarter of 2020, the primary components of the increase in noninterest expense were as follows:

  • Salaries and employee benefits decreased $272 thousand.  During the first quarter of 2020, after adjusting for the non-recurring items of $603 thousand from the prior quarter, the salaries and employee benefits increased $331 thousand, which is attributable to the additional salaries from the PFG acquisition;
  • Increase of $180 thousand in FDIC insurance due to the utilization of FDIC credits during the fourth quarter of 2019;
  • Increase of $292 thousand in other real estate and loan related expenses, due to elevated activity in the first quarter of 2020;
  • Increase of $1.7 million in merger related and restructuring expenses relating to the acquisition of  PFG; and
  • Increase of $619 thousand in other expenses during the first quarter of 2020, which is a result of a prior period franchise tax credit of $312 thousand recognized during the fourth quarter of 2019, as well as a franchise tax credit of $468 thousand associated with the origination of State of Tennessee community investment loans.

Income Tax Expense

Income tax expense was $664 thousand for the first quarter of 2020, an increase of $191 thousand, compared to $473 thousand for the fourth quarter of 2019.

For the first quarter of 2020, the effective tax rate was 19.6% and included an NOL carryforward that was available and utilized as part of the Coronavirus Aid, Relief and Economic Security ("CARES") Act.  The effective tax rate for the fourth quarter of 2019 was 6.6% and included tax benefits associated with the originations of State of Tennessee Community Investment loans and a tax benefit relating to a prior year amended tax return.

Balance Sheet Trends

Total assets at March 31, 2020, were $2.87 billion compared with $2.45 billion at December 31, 2019.  The first quarter increase of $424.6 million is primarily from the acquisition of PFG of approximately $307.2 million and organic loan growth of $99.0 million.

Total liabilities increased to $2.54 billion at March 31, 2020 from $2.14 billion at December 31, 2019.  The first quarter increase of $401.1 million was primarily from organic deposit growth of $22.7 million, acquired deposits from the acquisition of PFG in the amount of $272.0 million, and an increase of FHLB and other borrowings of $100.0 million.

Shareholders' equity at March 31, 2020, totaled $336.2 million, an increase of $23.5 million, from December 31, 2019.  The increase in shareholders' equity was primarily from the issuance of common stock for the acquisition of PFG of $24.5 million and net income of $2.7 million for the first quarter ended 2020, which was offset by the repurchase of the Company's common stock of $2.0 million and a net change in accumulated other comprehensive income of $1.4 million. Tangible book value per share (Non-GAAP) was $16.40 at March 31, 2020, a decrease from $16.82 at December 31, 2019.  Tangible common equity (Non-GAAP) as a percentage of tangible assets (Non-GAAP) was 8.96% at March 31, 2020, compared with 9.93% at December 31, 2019.

Conference Call Information

SmartFinancial will issue its earnings release for the first quarter of 2020 on Tuesday, April 28, 2020, and will host a conference call on Wednesday, April 29, 2020, at 10:00 a.m. ET.  To access this interactive teleconference, dial (888) 317-6003 or (412) 317-6061 and enter the confirmation number, 6458361.  A replay of the conference call will be available through April 29, 2022, by dialing (877) 344-7529 or (412) 317-0088 and entering the confirmation number, 10142762.  Conference call materials (earnings release & conference call presentation) will be published on the company’s webpage located at http://www.smartfinancialinc.com/CorporateProfile), at 9:00 am 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 35 branches across East and Middle Tennessee, Alabama, and the Florida Panhandle.  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.

Source
SmartFinancial, Inc.

Investor Contacts      
Billy Carroll     Ron Gorczynski
President & CEO     Executive Vice President, Chief Financial Officer
(865) 868-0613  billy.carroll@smartbank.com     (865) 437-5724  ron.gorczynski@smartbank.com
       
Media Contact      
Kelley Fowler      
Senior Vice President, Public Relations & Marketing      
(865) 868-0611  kelley.fowler@smartbank.com      
       

Non-GAAP Financial Measures

Statements included in this presentation include measures not recognized under U.S. generally accepted accounting principles ("GAAP") and therefore are considered non-GAAP financial measures 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, including: (i) net operating earnings, (ii) net operating return on average assets, (iii) net operating return on average shareholder' equity, (iv) return on average tangible common equity, (v) net operating return on average tangible common equity, (vi) operating efficiency ratio, (vii) operating noninterest income, (viii) operating noninterest expense, (ix) tangible common equity, (x) average tangible common equity, (xi) tangible book value (xii) tax equivalent net interest margin; and ratios derived therefrom, in its analysis of the company's performance. Net operating earnings excludes the following from net income: securities gains and losses, expenses related to the termination of an Alabama Department of Economic and Community Affairs ("ADECA") loan program, merger termination fee of $6.4 million in the second quarter of 2019, merger related and restructuring expenses. Net operating return on average assets is the annualized net operating earnings divided by average assets. Net operating return on average shareholders' equity is the annualized net operating earnings divided by average equity. Return on average tangible common equity is the annualized net income divided by average tangible common equity. Net operating return on average tangible common equity is the annualized net operating earnings divided by average tangible common equity (Non-GAAP). The operating efficiency ratio includes an adjustment for taxable equivalent yields and excludes securities gains and losses and merger related and restructuring expenses from the efficiency ratio. Operating noninterest income excludes the following from noninterest income: securities gains and losses, expenses related to the termination of the ADECA loan program and the merger termination fee of $6.4 million in the second quarter of 2019. Operating noninterest expense excludes the following from noninterest expense: prior year adjustments to salaries, merger related and restructuring expenses and certain franchise tax true-up expenses.  Tangible common equity and average tangible common equity excludes goodwill and other intangible assets from shareholders' equity and average shareholders' equity, respectively.  Tangible book value is tangible common equity divided by common shares outstanding.  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 believes these non-GAAP financial measures also 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, including statements regarding the potential effects of the COVID-19 pandemic on the Company’s business and financial results and conditions, 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) the risk of litigation related to the termination of our agreement and plan of merger with Entegra Financial Corp. (the “Entegra Merger Agreement”) or the abandonment of the transactions that were contemplated by the Entegra Merger Agreement; (2) reputational risk resulting from the termination of the Entegra Merger Agreement; (3) potential changes to, or the risk that we may not be able to execute on, our business strategy as a result of the termination of the Entegra Merger Agreement; (4) the risk that cost savings and revenue synergies from recently completed acquisitions may not be realized or may take longer than anticipated to realize; (5) disruption from recently completed acquisitions with customer, supplier, employee, or other business relationships; (6) our ability to successfully integrate the businesses acquired as part of previous acquisitions with the business of SmartBank; (7) risks related to the completed acquisition of PFG; (8) the risk that the anticipated benefits from the completed acquisition of PFG may not be realized in the time frame anticipated; (9) changes in management’s plans for the future; (10) prevailing, or changes in, economic or political conditions, particularly in our market areas; (11) credit risk associated with our lending activities; (12) changes in interest rates, loan demand, real estate values, or competition; (13) changes in accounting principles, policies, or guidelines; (14) changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; (15) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic; (16) the impact of the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (17) potential increases in the provision for loan losses resulting from the COVID-19 pandemic; and (18) 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 except share and per share data)        
    As of and for The Three Months Ended
    Mar   Dec   Sep   Jun   Mar
    2020   2019   2019   2019   2019
Selected Performance Ratios (Annualized):                    
Return on average assets   0.43  %   1.12  %   1.01  %   1.56  %   0.84  %
Return on average shareholders' equity   3.33  %   8.65  %   7.80  %   12.34  %   6.71  %
Return on average tangible common equity (Non-GAAP)¹   4.41  %   11.55  %   10.52  %   16.78  %   9.26  %
Noninterest income / average assets   0.44  %   0.47  %   0.37  %   1.44  %   0.30  %
Noninterest expense / average assets   2.96  %   2.68  %   2.48  %   2.88  %   2.77  %
Efficiency ratio   74.02  %   67.04  %   63.03  %   57.53  %   68.65  %
                     
Operating Selected Performance Ratios (Annualized):                    
Net operating return on average assets (Non-GAAP)¹   0.67  %   1.08  %   1.02  %   0.96  %   0.98  %
Net operating return on average shareholders' equity (Non-GAAP)¹   5.22  %   8.34  %   7.87  %   7.58  %   7.81  %
Net operating return on average tangible common equity (Non-GAAP)¹   6.90  %   11.12  %   10.61  %   10.31  %   10.79  %
Operating efficiency ratio (Non-GAAP)¹   65.46  %   64.95  %   62.42  %   65.56  %   64.25  %
Operating noninterest income / average assets (Non-GAAP)1   0.44  %   0.35  %   0.37  %   0.34  %   0.33  %
Operating noninterest expense / average assets (Non-GAAP)1   2.63  %   2.56  %   2.47  %   2.57  %   2.60  %
                     
Selected Interest Rates and Yields:                    
Yield on loans   5.35  %   5.36  %   5.48  %   5.53  %   5.62  %
Yield on earning assets, FTE   4.83  %   4.92  %   5.05  %   5.17  %   5.25  %
Cost of interest-bearing deposits   1.10  %   1.29  %   1.37  %   1.42  %   1.32  %
Cost of total deposits   0.91  %   1.06  %   1.13  %   1.18  %   1.10  %
Cost of interest-bearing liabilities   1.20  %   1.39  %   1.47  %   1.54  %   1.45  %
Net interest margin, FTE   3.90  %   3.84  %   3.91  %   3.94  %   4.10  %
                     
Per Common Share:                    
Net income, basic   $ 0.19      $ 0.48      $ 0.43      $ 0.65      $ 0.34   
Net income, diluted   0.19      0.48      0.42      0.65      0.34   
Net operating earnings, basic (Non-GAAP)¹   0.30      0.46      0.43      0.40      0.40   
Net operating earnings, diluted (Non-GAAP)¹   0.30      0.46      0.43      0.40      0.39   
Book value   22.09      22.33      21.93      21.47      20.82   
Tangible book value (Non-GAAP)¹   16.40      16.82      16.37      15.86      15.18   
Common shares outstanding   15,221,990      14,008,233      13,957,973      13,953,209      13,951,590   
                     
¹See reconciliation of Non-GAAP measures                
                     
                     
                     
SmartFinancial, Inc. and Subsidiary        
Condensed Consolidated Financial Information - (unaudited)        
(dollars in thousands)        
    As of and for The Three Months Ended
    Mar   Dec   Sep   Jun   Mar
    2020   2019   2019   2019   2019
Composition of Loans:                    
Commercial real estate                    
owner occupied   $ 473,398      $ 429,269      $ 422,363      $ 415,502      $ 416,152   
non-owner occupied   535,637      476,038      468,099      464,160      472,790   
Commercial real estate, total   1,009,035      905,307      890,462      879,662      888,942   
Commercial & industrial   377,173      337,075      341,207      334,258      341,471   
Construction & land development   253,445      227,626      219,751      204,731      187,009   
Consumer real estate   482,728      417,481      402,463      402,270      408,878   
Consumer and other   16,866      9,903      10,796      11,981      12,166   
Total loans   $ 2,139,247      $ 1,897,392      $ 1,864,679      $ 1,832,902      $ 1,838,466   
                     
Asset Quality and Additional Loan Data:                    
Nonperforming loans   $ 3,069      $ 3,350      $ 3,166      $ 2,838      $ 2,282   
Other real estate owned   5,894      1,757      1,561      1,814      2,066   
Total nonperforming assets   $ 8,963      $ 5,107      $ 4,727      $ 4,652      $ 4,348   
Restructured loans not included in nonperforming loans   $     $ 61      $ 61      $ 62      $ 62   
Net charge-offs (recoveries) to average loans (annualized)   —  %   0.01  %   0.01  %   —  %   0.08  %
Allowance for loan losses to loans   0.63  %   0.54  %   0.53  %   0.50  %   0.47  %
Nonperforming loans to total loans, gross   0.14  %   0.18  %   0.17  %   0.15  %   0.12  %
Nonperforming assets to total assets   0.31  %   0.21  %   0.20  %   0.19  %   0.18  %
Purchase accounting discount balance   $ 17,237      $ 15,348      $ 16,784      $ 18,571      $ 19,954   
Accretion income on acquired loans   1,841      1,375      1,246      1,374      1,881   
                     
Capital Ratios:                    
Equity to Assets   11.70  %   12.77  %   12.80  %   12.53  %   12.34  %
Tangible common equity to tangible assets (Non-GAAP)1   8.96  %   9.93  %   9.88  %   9.57  %   9.31  %
                     
SmartFinancial, Inc.2                    
Tier 1 leverage   10.27  %   10.34  %   10.02  %   9.92  %   9.29  %
Common equity Tier 1   10.85  %   11.61  %   11.54  %   11.21  %   10.61  %
Tier 1 capital   10.85  %   11.61  %   11.54  %   11.21  %   10.61  %
Total capital   13.10  %   14.02  %   13.98  %   13.65  %   13.01  %
                     
SmartBank   Estimated3                
Tier 1 leverage   11.41  %   11.41  %   11.22  %   10.92  %   10.96  %
Common equity Tier 1   12.02  %   12.81  %   12.71  %   12.37  %   12.18  %
Tier 1 risk-based capital   12.02  %   12.81  %   12.71  %   12.37  %   12.18  %
Total risk-based capital   12.60  %   13.31  %   13.19  %   12.82  %   12.62  %

1Total common equity less intangibles divided by total assets less intangibles.
2All periods presented are estimated.
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)                    
    Ending Balances
    Mar   Dec   Sep   Jun   Mar
    2020   2019   2019   2019   2019
                     
Assets:                    
Cash and cash equivalents   $ 309,089        $ 183,971        $ 170,934        $ 199,534        $ 132,994     
Securities available-for-sale, at fair value   201,002        178,348        171,507        174,114        198,273     
Other investments   14,113        12,913        12,913        12,905        12,398     
Loans held for sale   6,045        5,856        3,068        4,087        2,103     
Loans   2,139,247        1,897,392        1,864,679        1,832,902        1,838,466     
 Less: Allowance for loan losses   (13,431 )     (10,243 )     (9,792 )     (9,097 )     (8,704 )  
 Loans, net   2,125,816        1,887,149        1,854,887        1,823,805        1,829,762     
Premises and equipment, net   73,801        59,433        58,386        56,589        56,583     
Other real estate owned   5,894        1,757        1,561        1,814        2,066     
Goodwill and core deposit intangibles, net   86,503        77,193        77,534        78,348        78,690     
Bank owned life insurance   30,671        24,949        24,796        24,695        24,540     
Other assets   20,781        17,554        14,899        15,366        16,572     
Total assets   $ 2,873,715        $ 2,449,123        $ 2,390,485        $ 2,391,257        $ 2,353,981     
                     
Liabilities:                    
Deposits:                    
  Noninterest-bearing demand   $ 431,781        $ 364,155        $ 365,024        $ 357,220        $ 329,095     
  Interest-bearing demand   444,141        380,234        351,474        333,705        331,629     
  Money market and savings   730,392        623,284        634,934        648,132        698,431     
  Time deposits   735,616        679,541        646,641        673,243        635,175     
  Total deposits   2,341,930        2,047,214        1,998,073        2,012,300        1,994,330     
Securities sold under agreements to repurchase   6,164        6,184        4,368        8,219        7,070     
FHLB & other borrowings   125,439        25,439        25,460        15,460        8,605     
Subordinated debt   39,283        39,261        39,240        39,219        39,198     
Other liabilities   24,699        18,278        17,304        16,448        14,297     
Total liabilities   2,537,515        2,136,376        2,084,445        2,091,646        2,063,500     
Shareholders' Equity:                    
Common stock   15,222        14,008        13,958        13,953        13,952     
Additional paid-in capital   254,356        232,732        232,573        232,386        232,241     
Retained earnings   67,869        65,839        59,806        53,843        44,722     
Accumulated other comprehensive income (loss)   (1,247 )     168        (297 )     (571 )     (434 )  
Total shareholders' equity   336,200        312,747        306,040        299,611        290,481     
Total liabilities & shareholders' equity   $ 2,873,715        $ 2,449,123        $ 2,390,485        $ 2,391,257        $ 2,353,981     


null
         
         
SmartFinancial, Inc. and Subsidiary        
Condensed Consolidated Financial Information - (unaudited)        
(dollars in thousands, except share and per share data)        
    Three Months Ended
    Mar   Dec   Sep   Jun   Mar
    2020   2019   2019   2019   2019
Interest income:                    
Loans, including fees   $ 26,434      $ 25,398      $ 25,515        $ 25,278      $ 24,975   
Securities available-for-sale:                    
 Taxable   679      698      748        871      971   
 Tax-exempt   283      345      338        411      424   
Federal funds sold and other earning assets   602      587      743        743      573   
Total interest income   27,998      27,028      27,344        27,303      26,943   
                     
Interest expense:                    
Deposits   4,754      5,271      5,605        5,788      5,251   
Securities sold under agreements to repurchase                      
FHLB advances and other borrowings   84      65      10        117      103   
Subordinated debt   584      584      584        590      584   
Total interest expense   5,427      5,924      6,204        6,501      5,946   
Net interest income   22,571      21,104      21,140        20,802      20,997   
Provision for loan losses   3,200      685      724        393      797   
Net interest income after provision for loan losses   19,371      20,419      20,416        20,409      20,200   
                     
Noninterest income:                    
Service charges on deposit accounts   770      773      767        707      654   
Gain on sale of securities, net   —      —            33      —   
Mortgage banking   584      374      518        392      282   
Investment services   437      261      260        255      169