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SmartFinancial Announces Results for the Second Quarter 2022

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SmartFinancial, Inc.
SmartFinancial, Inc.

Highlights for the Second Quarter of 2022

  • Operating earnings1 of $10.3 million, or $0.61 per diluted common share, for the second quarter of 2022

  • Net organic loan and lease growth of over $206.8 million - 30% annualized quarter-over-quarter increase

  • Non-maturity deposit growth of over $128.1 million – 14% annualized quarter-over-quarter increase

  • Net interest income growth of $2.9 million or 39% annualized quarter-over-quarter increase

  • Credit quality remains solid with nonperforming assets to total assets of 0.11%

KNOXVILLE, Tenn., July 25, 2022 (GLOBE NEWSWIRE) -- SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NASDAQ: SMBK), today announced net income of $10.2 million, or $0.61 per diluted common share, for the second quarter of 2022, compared to net income of $8.8 million, or $0.58 per diluted common share, for the second quarter of 2021, and compared to prior quarter net income of $8.3 million, or $0.49 per diluted common share. Operating earnings1, which excludes securities gains and merger related and restructuring expenses, totaled $10.3 million, or $0.61 per diluted common share, in the second quarter of 2022, compared to $9.1 million, or $0.60 per diluted common share, in the second quarter of 2021, and compared to $8.6 million, or $0.51 per diluted common share, in the first quarter of 2022.

Billy Carroll, President & CEO, stated: "I am extremely pleased with another outstanding quarter as our team executes our strategy. We continue to grow revenue, from both strong loan growth and enhanced non-interest income lines, while starting to realize operating leverage.  Earnings performance was right in-line with our plan, and as we monitor the economy, we remain bullish on our outlook."

SmartFinancial's Chairman, Miller Welborn, concluded: “Impressive performance by our team. Our southeastern economy continues to be very strong, and all of our markets are executing at a high level.”

Net Interest Income and Net Interest Margin

Net interest income was $33.1 million for the second quarter of 2022, compared to $30.1 million for the prior quarter. Average earning assets totaled $4.32 billion, an increase of $98.1 million. The growth in average earnings assets was primarily driven by an increase in average loans and leases of $145.5 million and securities of $100.6 million, offset by a decrease in average interest-earning cash of $147.2 million as the Bank continues to deploy excess liquidity into loans and leases.   Average interest-bearing liabilities increased $16.1 million as a result of core deposit growth of $54.3 million and a decrease in borrowings of $38.2 million.

The tax equivalent net interest margin was 3.08% for the second quarter of 2022, compared to 2.91% for the prior quarter. The tax equivalent net interest margin was positively impacted by the continued deployment of excess cash and cash equivalents into loans and leases and the increase in rates by the Board of Governors of the Federal Reserve System (the “Federal Reserve”).

The yield on interest-bearing liabilities increased to 0.42% for the second quarter of 2022 compared to 0.36% for the prior quarter. The cost of average interest-bearing deposits was 0.33% for the second quarter of 2022 compared to 0.27% for the prior quarter, an increase of 6 basis points, primarily attributable to the increases in rates by the Federal Reserve. The cost of total deposits for the second quarter of 2022 was 0.24% compared to 0.20% in the prior quarter.

________________________
1 Non-GAAP measures. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP reconciliation


The following table presents selected interest rates and yields for the periods indicated:

 

 

Three Months Ended

 

 

 

 

 

Jun

 

Mar

 

Increase

 

Selected Interest Rates and Yields

 

2022

 

2022

 

(Decrease)

 

Yield on loans and leases

 

4.40

%

4.40

%

-

%

Yield on earning assets, FTE

 

3.39

%

3.18

%

0.21

%

Cost of interest-bearing deposits

 

0.33

%

0.27

%

0.06

%

Cost of total deposits

 

0.24

%

0.20

%

0.04

%

Cost of interest-bearing liabilities

 

0.42

%

0.36

%

0.06

%

Net interest margin, FTE

 

3.08

%

2.91

%

0.17

%


Provision for Loan and Lease Losses and Credit Quality

At June 30, 2022, the allowance for loan and lease losses was $21.9 million. The allowance for loan and lease losses to total loans and leases was 0.73% as of June 30, 2022, compared to 0.72% at March 31, 2022.   For the Company’s originated loans and leases, the allowance for loan and lease losses to originated loans and leases, less PPP loans, was 0.74% as of June 30, 2022, and March 31, 2022, respectively. The remaining discounts on the acquired loan and lease portfolio totaled $14.7 million, or 4.17% of acquired loans and leases as of June 30, 2022.

The following table presents detailed information related to the provision for loan and lease losses for the periods indicated (dollars in thousands):

 

 

Three Months Ended

 

 

 

 

 

 

 

Jun

 

Mar

 

 

 

 

 

Provision for Loan and Lease Losses Rollforward

 

 

2022

 

 

 

2022

 

 

 

Change

 

 

Beginning balance

 

$

20,078

 

 

$

19,352

 

 

$

726

 

 

Charge-offs

 

 

(143

)

 

 

(488

)

 

 

345

 

 

Recoveries

 

 

753

 

 

 

208

 

 

 

545

 

 

Net charge-offs

 

 

610

 

 

 

(280

)

 

 

890

 

 

Provision

 

 

1,250

 

 

 

1,006

 

 

 

244

 

 

Ending balance

 

$

21,938

 

 

$

20,078

 

 

$

1,860

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Allowance for loan losses to total loans and leases, gross

 

 

0.73

 

%

 

0.72

 

%

 

0.01

 

%


The Company is not required to implement the provisions of the Current Expected Credit Losses (“CECL”) accounting standard until January 1, 2023 and is continuing to account for the allowance for loan and lease losses under the incurred loss model.

Nonperforming loans and leases as a percentage of total loans and leases was 0.11% as of June 30, 2022, a decrease of 1 basis point from the 0.12% reported in the first quarter of 2022.   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 0.11% as of June 30, 2022, and March 31, 2022, respectively. 

The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands):

 

 

Three Months Ended

 

 

 

 

 

 

 

Jun

 

 

 

Mar

 

 

 

Increase

 

Credit Quality

 

 

2022

 

 

 

2022

 

 

 

(Decrease)

 

Nonaccrual loans and leases

 

$

3,413

 

 

$

3,342

 

 

$

71

 

 

Loans and leases past due 90 days or more and still accruing

 

 

-

 

 

 

-

 

 

 

-

 

 

Total nonperforming loans and leases

 

 

3,413

 

 

 

3,342

 

 

 

71

 

 

Other real estate owned

 

 

1,612

 

 

 

1,612

 

 

 

-

 

 

Other repossessed assets

 

 

17

 

 

 

27

 

 

 

(10

)

 

Total nonperforming assets

 

$

5,042

 

 

$

4,981

 

 

$

61

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Nonperforming loans and leases to total loans and leases, gross

 

 

0.11

 

%

 

0.12

 

%

 

(0.01

)

%

Nonperforming assets to total assets

 

 

0.11

 

%

 

0.11

 

%

 

-

 

%


Noninterest Income

Noninterest income increased $118 thousand to $7.2 million for the second quarter of 2022 compared to $7.1 million for the prior quarter. During the second quarter of 2022, the primary components of the changes in noninterest income were as follows:

  • Increase in service charges on deposit accounts, related to deposit growth and transaction volume;

  • Decrease in mortgage banking income, related to lower volume of secondary market activity;

  • Decrease in insurance commissions, driven by annual contingency payments in the prior quarter;

  • Increase in interchange and debit card transaction fees, related to higher volume; and

  • Increase in other, primarily related to increased fees from capital markets activity.

The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands):

 

 

Three Months Ended

 

 

 

 

 

 

Jun

 

 

 

Mar

 

 

Increase

Noninterest Income

 

 

2022

 

 

 

2022

 

 

(Decrease)

Service charges on deposit accounts

 

$

1,446

 

 

$

1,319

 

 

$

127

 

Mortgage banking income

 

 

471

 

 

 

834

 

 

 

(363

)

Investment services

 

 

1,065

 

 

 

1,070

 

 

 

(5

)

Insurance commissions

 

 

598

 

 

 

901

 

 

 

(303

)

Interchange and debit card transaction fees

 

 

1,467

 

 

 

1,284

 

 

 

183

 

Other

 

 

2,182

 

 

 

1,703

 

 

 

479

 

Total noninterest income

 

$

7,229

 

 

$

7,111

 

 

$

118

 


Noninterest Expense

Noninterest expense increased $208 thousand to $25.9 million for the second quarter of 2022 compared to $25.7 million for the prior quarter. During the second quarter of 2022, the primary components of the changes in noninterest expense were as follows:

  • Increase in salaries and employee benefits, primarily attributable to full quarters effect of merit increases and increased employee insurance cost;

  • Decrease in occupancy and equipment as a result of prior quarter maintenance expenditures and lower utility expenses in current quarter;

  • Increase in data processing and technology as a result of continued infrastructure improvements;

  • Decrease in professional services, related to fewer services performed during the quarter; and

  • Increase in other expense, related to disposal of fixed assets, training and education initiatives.

The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands):

 

 

Three Months Ended

 

 

 

 

 

 

Jun

 

 

 

Mar

 

 

Increase

Noninterest Expense

 

 

2022

 

 

 

2022

 

 

(Decrease)

Salaries and employee benefits

 

$

15,673

 

 

$

15,046

 

 

$

627

 

Occupancy and equipment

 

 

2,793

 

 

 

3,059

 

 

 

(266

)

FDIC insurance

 

 

676

 

 

 

641

 

 

 

35

 

Other real estate and loan related expenses

 

 

636

 

 

 

729

 

 

 

(93

)

Advertising and marketing

 

 

327

 

 

 

369

 

 

 

(42

)

Data processing and technology

 

 

1,728

 

 

 

1,586

 

 

 

142

 

Professional services

 

 

745

 

 

 

1,242

 

 

 

(497

)

Amortization of intangibles

 

 

633

 

 

 

637

 

 

 

(4

)

Merger related and restructuring expenses

 

 

81

 

 

 

439

 

 

 

(358

)

Other

 

 

2,634

 

 

 

1,970

 

 

 

664

 

Total noninterest expense

 

$

25,926

 

 

$

25,718

 

 

$

208

 


Income Tax Expense

Income tax expense was $2.9 million for the second quarter of 2022, an increase of $654 thousand, compared to $2.2 million for the prior quarter.

The effective tax rate was 22.11% for the second quarter of 2022 and 21.38% for the prior quarter.

Balance Sheet Trends

Total assets at June 30, 2022 were $4.79 billion compared with $4.61 billion at December 31, 2021. The increase of $176.5 million is primarily attributable to increases in loans and leases of $300.7 million, securities of $253.8 million, and other assets of $14.6 million, offset by a decrease in cash and cash equivalents of $390.1 million, primarily from the funding of loans and leases and purchase of securities.

Total liabilities increased to $4.37 billion at June 30, 2022 from $4.18 billion at December 31, 2021. The increase of $185.5 million was primarily from organic deposit growth of $259.7 million, offset by a decrease in borrowings of $75.0 million.

Shareholders' equity at June 30, 2022 totaled $420.4 million, a decrease of $9.0 million, from December 31, 2021. The decrease in shareholders' equity was primarily from the change in accumulated other comprehensive income (loss) of $26.1 million and dividends paid of $2.4 million, offset by net income of $18.5 million for the six months ended June 30, 2022.   Tangible book value per share2 was $18.69 at June 30, 2022, compared to $19.26 at December 31, 2021. Tangible common equity1 as a percentage of tangible assets1 was 6.74% at June 30, 2022, compared with 7.18% at December 31, 2021.

________________________
1 Non-GAAP measures. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP reconciliation


The following table presents selected balance sheet information for the periods indicated (dollars in thousands):

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Jun

 

Dec

 

Increase

Selected Balance Sheet Information

 

2022

 

2021

 

(Decrease)

Total assets

 

$

4,788,113

 

 

$

4,611,579

 

 

$

176,534

 

Total liabilities

 

 

4,367,686

 

 

 

4,182,149

 

 

 

185,537

 

Total equity

 

 

420,427

 

 

 

429,430

 

 

 

(9,003

)

Securities

 

 

813,227

 

 

 

617,452

 

 

 

195,775

 

Loans and leases

 

 

2,994,074

 

 

 

2,693,397

 

 

 

300,677

 

Deposits

 

 

4,281,632

 

 

 

4,021,938

 

 

 

259,694

 

Borrowings

 

 

12,549

 

 

 

87,585

 

 

 

(75,036

)


Conference Call Information

SmartFinancial issued this earnings release for the second quarter of 2022 on Monday, July 25, 2022, and will host a conference call on Tuesday, July 26, 2022, at 10:00 a.m. ET. To access this interactive teleconference, dial (844) 200-6205 or (646) 904-5544 and entering the access code, 357084. A replay of the conference call will be available through September 26, 2022, by dialing (866) 813-9403 or (929) 458-6194 and entering the access code, 729133.   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 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

President & CEO

(865) 868-0613   billy.carroll@smartbank.com

 

Ron Gorczynski

Executive Vice President, Chief Financial Officer

(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 earnings release 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) operating earnings, (ii) operating return on average assets, (iii) operating pre-tax pre-provision return on average assets, (iv) operating return on average shareholders' equity, (v) return on average tangible common equity, (vi) operating return on average tangible common equity, (vii) operating efficiency ratio, (viii) operating noninterest income, (ix) operating pre-tax pre-provision earnings (x) operating noninterest expense, (xi) tangible common equity, (xii) average tangible common equity, (xiii) tangible book value; (xiv) tangible assets; and ratios derived therefrom, in its analysis of the company's performance. Operating earnings excludes the following from net income: securities gains and losses and merger related and restructuring expenses. Operating return on average assets is the annualized operating earnings (Non-GAAP) divided by average assets. Operating pre-tax pre-provision return on average assets is the annualized operating pre-tax pre-provision income earnings (Non-GAAP) by average assets. Operating return on average shareholders' equity is the annualized operating earnings (Non-GAAP) divided by average equity. Return on average tangible common equity is the annualized net income divided by average tangible common equity (Non-GAAP). Operating return on average tangible common equity is the annualized operating earnings (Non-GAAP) 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. Operating pre-tax pre-provision earnings is net interest income plus operating noninterest income (Non-GAAP) less operating noninterest expense (Non-GAAP). 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 (Non-GAAP) and average tangible common equity (Non-GAAP) excludes goodwill and other intangible assets from shareholders' equity and average shareholders' equity, respectively. Tangible book value (Non-GAAP) is tangible common equity (Non-GAAP) divided by common shares outstanding. Tangible assets (Non-GAAP) excludes goodwill and other intangibles from total assets. 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 effects of the COVID-19 pandemic and related variants 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) 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) the risk that cost savings and revenue synergies from recently completed acquisitions may not be realized or may take longer than anticipated to realize; (4) disruption from recently completed acquisitions with customer, supplier, employee, or other business relationships; (5) our ability to successfully integrate the businesses acquired as part of previous acquisitions with the business of SmartBank; (6) risks related to the acquisition of Sevier County Bancshares, Inc. (“SCB”); (7) the risk that the anticipated benefits from the acquisition of SCB may not be realized in the time frame anticipated; (8) changes in management’s plans for the future; (9) prevailing, or changes in, economic or political conditions, particularly in our market areas; (10) credit risk associated with our lending activities; (11) changes in interest rates, loan demand, real estate values, or competition; (12) changes in prices, values and sales volumes of residential and commercial real estate; (13) changes in accounting principles, policies, or guidelines; (14) changes in applicable laws, rules, or regulations; (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 and related variants; (16) the impact of the COVID-19 pandemic and related variants on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (17) higher inflation and its impacts; (18) the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine; and (19) 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

 

 

Jun

 

Mar

 

Dec

 

Sep

 

Jun

 

 

2022

 

2022

 

2021

 

2021

 

2021

Assets:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Cash and cash equivalents

 

$

654,945

 

 

$

763,968

 

 

$

1,045,077

 

 

$

1,091,160

 

 

$

673,515

 

Securities available-for-sale, at fair value

 

 

524,864

 

 

 

540,483

 

 

 

482,453

 

 

 

339,343

 

 

 

250,817

 

Securities held-to-maturity, at amortized cost

 

 

288,363

 

 

 

289,532

 

 

 

76,969

 

 

 

 

 

 

 

Other investments

 

 

16,569

 

 

 

16,499

 

 

 

16,494

 

 

 

14,972

 

 

 

14,584

 

Loans held for sale

 

 

1,707

 

 

 

5,894

 

 

 

5,103

 

 

 

3,418

 

 

 

4,334

 

Loans and leases

 

 

2,994,074

 

 

 

2,806,026

 

 

 

2,693,397

 

 

 

2,652,663

 

 

 

2,468,318

 

Less: Allowance for loan and lease losses

 

 

(21,938

)

 

 

(20,078

)

 

 

(19,352

)

 

 

(19,295

)

 

 

(18,310

)

Loans and leases, net

 

 

2,972,136

 

 

 

2,785,948

 

 

 

2,674,045

 

 

 

2,633,368

 

 

 

2,450,008

 

Premises and equipment, net

 

 

89,950

 

 

 

84,793

 

 

 

85,958

 

 

 

85,346

 

 

 

72,314

 

Other real estate owned

 

 

1,612

 

 

 

1,612

 

 

 

1,780

 

 

 

2,415

 

 

 

2,499

 

Goodwill and other intangibles, net

 

 

104,582

 

 

 

105,215

 

 

 

105,852

 

 

 

104,930

 

 

 

90,966

 

Bank owned life insurance

 

 

80,537

 

 

 

80,074

 

 

 

79,619

 

 

 

79,145

 

 

 

72,013

 

Other assets

 

 

52,848

 

 

 

44,561

 

 

 

38,229

 

 

 

29,934

 

 

 

23,306

 

Total assets

 

$

4,788,113

 

 

$

4,718,579

 

 

$

4,611,579

 

 

$

4,384,031

 

 

$

3,654,356

 

Liabilities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Noninterest-bearing demand

 

$

1,162,843

 

 

$

1,093,933

 

 

$

1,055,125

 

 

$

977,180

 

 

$

807,560

 

Interest-bearing demand

 

 

999,893

 

 

 

975,272

 

 

 

899,158

 

 

 

847,007

 

 

 

702,470

 

Money market and savings

 

 

1,607,714

 

 

 

1,573,101

 

 

 

1,493,007

 

 

 

1,389,393

 

 

 

1,140,029

 

Time deposits

 

 

511,182

 

 

 

549,047

 

 

 

574,648

 

 

 

585,692

 

 

 

489,413

 

Total deposits

 

 

4,281,632

 

 

 

4,191,353

 

 

 

4,021,938

 

 

 

3,799,272

 

 

 

3,139,472

 

Borrowings

 

 

12,549

 

 

 

36,713

 

 

 

87,585

 

 

 

88,748

 

 

 

78,834

 

Subordinated debt

 

 

41,973

 

 

 

41,952

 

 

 

41,930

 

 

 

41,909

 

 

 

39,388

 

Other liabilities

 

 

31,532

 

 

 

28,519

 

 

 

30,696

 

 

 

29,382

 

 

 

23,269

 

Total liabilities

 

 

4,367,686

 

 

 

4,298,537

 

 

 

4,182,149

 

 

 

3,959,311

 

 

 

3,280,963

 

Shareholders' Equity:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Common stock

 

 

16,898

 

 

 

16,893

 

 

 

16,803

 

 

 

16,801

 

 

 

15,110

 

Additional paid-in capital

 

 

293,815

 

 

 

293,376

 

 

 

292,937

 

 

 

292,760

 

 

 

252,039

 

Retained earnings

 

 

134,362

 

 

 

125,329

 

 

 

118,247

 

 

 

112,600

 

 

 

103,906

 

Accumulated other comprehensive income (loss)

 

 

(24,648

)

 

 

(15,556

)

 

 

1,443

 

 

 

2,559

 

 

 

2,338

 

Total shareholders' equity

 

 

420,427

 

 

 

420,042

 

 

 

429,430

 

 

 

424,720

 

 

 

373,393

 

Total liabilities & shareholders' equity

 

$

4,788,113

 

 

$

4,718,579

 

 

$

4,611,579

 

 

$

4,384,031

 

 

$

3,654,356

 



SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands except share and per share data)

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Three Months Ended

 

Six Months Ended

 

Jun

 

Mar

 

Dec

 

Sep

 

Jun

 

Jun

 

Jun

 

2022

 

2022

 

2021

 

2021

 

2021

 

2022

 

2021

Interest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans and leases, including fees

$

31,530

 

 

$

29,643

 

 

$

30,567

 

 

$

31,674

 

 

$

28,323

 

 

$

61,172

 

 

$

56,341

 

Investment securities:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Taxable

 

2,908

 

 

 

2,418

 

 

 

1,341

 

 

 

832

 

 

 

916

 

 

 

5,327

 

 

 

1,640

 

Tax-exempt

 

441

 

 

 

368

 

 

 

322

 

 

 

331

 

 

 

304

 

 

 

809

 

 

 

563

 

Federal funds sold and other earning assets

 

1,430

 

 

 

486

 

 

 

547

 

 

 

474

 

 

 

309

 

 

 

1,916

 

 

 

600

 

Total interest income

 

36,309

 

 

 

32,915

 

 

 

32,777

 

 

 

33,311

 

 

 

29,852

 

 

 

69,224

 

 

 

59,144

 

Interest expense:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Deposits

 

2,504

 

 

 

2,014

 

 

 

2,116

 

 

 

2,153

 

 

 

2,248

 

 

 

4,518

 

 

 

4,579

 

Borrowings

 

117

 

 

 

157

 

 

 

180

 

 

 

121

 

 

 

123

 

 

 

274

 

 

 

241

 

Subordinated debt

 

626

 

 

 

626

 

 

 

626

 

 

 

655

 

 

 

584

 

 

 

1,252

 

 

 

1,167

 

Total interest expense

 

3,247

 

 

 

2,797

 

 

 

2,922

 

 

 

2,929

 

 

 

2,955

 

 

 

6,044

 

 

 

5,987

 

Net interest income

 

33,062

 

 

 

30,118

 

 

 

29,855

 

 

 

30,382

 

 

 

26,897

 

 

 

63,180

 

 

 

53,157

 

Provision for loan and lease losses

 

1,250

 

 

 

1,006

 

 

 

422

 

 

 

1,149

 

 

 

(5

)

 

 

2,256

 

 

 

62

 

Net interest income after provision for loan and lease losses

 

31,812

 

 

 

29,112

 

 

 

29,433

 

 

 

29,233

 

 

 

26,902

 

 

 

60,924

 

 

 

53,095

 

Noninterest income:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Service charges on deposit accounts

 

1,446

 

 

 

1,319

 

 

 

1,372

 

 

 

1,220

 

 

 

1,048

 

 

 

2,765

 

 

 

2,057

 

Gain (loss) on sale of securities, net

 

 

 

 

 

 

 

 

 

 

45

 

 

 

 

 

 

 

 

 

 

Mortgage banking

 

471

 

 

 

834

 

 

 

803

 

 

 

994

 

 

 

1,105

 

 

 

1,305

 

 

 

2,244

 

Investment services

 

1,065