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SmartFinancial, Inc. (SMBK)

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19.91-0.10 (-0.50%)
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19.91 0.00 (0.00%)
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Neutralpattern detected
Previous Close20.01
Open19.57
Bid19.85 x 800
Ask21.50 x 800
Day's Range19.51 - 20.27
52 Week Range11.05 - 23.12
Volume85,241
Avg. Volume33,632
Market Cap300.784M
Beta (5Y Monthly)0.81
PE Ratio (TTM)12.29
EPS (TTM)1.62
Earnings DateJan 20, 2021
Forward Dividend & Yield0.20 (1.00%)
Ex-Dividend DateNov 06, 2020
1y Target Est23.50
  • ACCESSWIRE

    SmartFinancial, Inc. to Host Earnings Call

    NEW YORK, NY / ACCESSWIRE / January 20, 2021/ SmartFinancial, Inc. (NASDAQ:SMBK) will be discussing their earnings results in their 2020 Fourth Quarter Earnings call to be held on January 20, 2021 at 10:00 AM Eastern Time.

  • Benzinga

    SmartFinancial: Q4 Earnings Insights

    Shares of SmartFinancial (NASDAQ:SMBK) were unchanged in after-market trading after the company reported Q4 results.Quarterly Results Earnings per share increased 32.61% year over year to $0.61, which beat the estimate of $0.43.Revenue of $31,482,000 up by 31.48% from the same period last year, which beat the estimate of $30,100,000.Looking Ahead SmartFinancial hasn't issued any earnings guidance for the time being.View more earnings on SMBKRevenue guidance hasn't been issued by the company for now.Technicals 52-week high: $23.9352-week low: $11.05Price action over last quarter: Up 41.96%Company Profile SmartFinancial Inc operates as a bank holding company for SmartBank. It offers various banking and financial services to individuals and corporate customers. The principal business of the Bank consists of attracting deposits from the general public and investing those funds, together with funds generated from operations and from principal and interest payments on loans, primarily in commercial loans, commercial and residential real estate loans, consumer loans, and residential and commercial construction loans. The primary source of revenue is interest income from earning assets, namely loans and securities.See more from Benzinga * Click here for options trades from Benzinga * Earnings Scheduled For January 19, 2021(C) 2021 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

  • GlobeNewswire

    SmartFinancial Announces Results for the Fourth Quarter 2020

    KNOXVILLE, Tenn., Jan. 19, 2021 (GLOBE NEWSWIRE) -- SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NASDAQ: SMBK), today announced net income of $9.0 million, or $0.59 per diluted common share, for the fourth quarter of 2020, compared to net income of $6.4 million, or $0.42 per diluted common share for the third quarter of 2020. Operating earnings (Non-GAAP), which excludes securities gains, merger related and restructuring expenses and non-operating items, totaled $9.2 million, or $0.61 per diluted common share, in the fourth quarter of 2020, compared to $6.6 million, or $0.44 per diluted common share, in the third quarter of 2020. Highlights for the Fourth Quarter of 2020 Net income of $9.0 million and operating earnings of $9.2 million (Non-GAAP)Operating noninterest income (Non-GAAP) increased $381 thousand or 36.9% annualized quarter-over-quarterTangible book value per share (Non-GAAP) of $17.92, a 15.1% annualized quarter-over-quarter increaseDeposits increased by $153.2 million or 23.1% annualized from September 30, 2020 Paid off $237.8 million in borrowings from the Federal Reserve Bank Paycheck Protection Program Liquidity Facility (“PPPLF”)COVID loan modifications declined to 0.7% of total loans Billy Carroll, President & CEO, stated: "We are extremely pleased with our results for the quarter and for the year. The year was unprecedented on several fronts, but our energetic, entrepreneurial team rose to the occasion and posted very sound results. Our continued focus on diversification of revenue and work on efficiency gains are being seen in our metrics, and that, coupled with our solid credit quality, keeps us very excited about our future.” SmartFinancial's Chairman, Miller Welborn, concluded: “The fourth quarter of 2020 and the entire year of 2020 exceeded our expectations. Our Board could not be happier or prouder of the entire team for the incredible effort and execution of our Strategic Plan. This COVID pandemic has affected a tremendous number of people and the SmartBank team continues to help our clients and the communities we serve.” Net Interest Income and Net Interest Margin Net interest income increased $463 thousand to $26.5 million for the fourth quarter of 2020 or approximately 1.8% when compared to $26.0 million for the third quarter of 2020, mainly attributable to a reduction in the cost of interest-bearing liabilities. Average earning assets totaled $3.0 billion, a decrease of $106.9 million, primarily driven by a decrease in cash and cash equivalents used to pay off $237.8 million in borrowings related to PPPLF funding. Average interest-bearing liabilities decreased $139.4 million, primarily as a result of the PPPLF pay off, and was offset by an increase of $80.1 million in average interest-bearing deposits. The tax equivalent net interest margin was 3.57% for the fourth quarter of 2020, compared to 3.39% for the third quarter of 2020. The tax equivalent net interest margin was positively impacted by a 13 basis point increase in the average yield on interest-earning assets and a 5 basis point decline in the rate on interest-bearing liabilities over the prior quarter. Lower market interest rates continue to negatively impact earning asset yields, but these declines have been largely mitigated by a lower cost of funds. The primary drivers of the yield increase on interest-earning assets during the fourth quarter of 2020 was an increase in total loan fees of $748 thousand which was offset by a $192 thousand decline in discount accretion. The increase in loan fees during the quarter is attributable to $2.2 million of the Paycheck Protection Program (“PPP”) fee accretion and $1.3 million of other loan fees compared to $1.8 million of PPP fee accretion, and $905 thousand of other loan fees recognized in the third quarter of 2020. Accretion income on acquired loans for the quarter totaled $768 thousand compared to $960 thousand recognized in the third quarter of 2020. The Company continues to carry excess liquidity on the balance sheet that resulted from significant deposit growth during the second and third quarters and continued muted loan growth. The lower cost of deposits realized during the current quarter was attributable to the maturing and repricing of time deposits and the payoff of the PPPLF borrowing, which further contributed to the increase in the tax equivalent net interest margin. The yield on interest-bearing liabilities decreased to 0.60% for the fourth quarter of 2020 when compared to 0.65% for the third quarter of 2020. The cost of average interest-bearing deposits was 0.50% for the fourth quarter of 2020 compared to 0.59% for the third quarter of 2020, a decrease of 9 basis points. The lower cost of average deposits was attributable to the maturing and repricing of time deposits, with average costs decreasing 18 basis points. The cost of total deposits for the fourth quarter of 2020 was 0.38%. The following table presents selected interest rates and yields for the periods indicated: Three Months Ended Dec Sep Increase Selected Interest Rates and Yields 2020 2020 (Decrease) Yield on loans 4.72% 4.71% 0.01 %Yield on earning assets, FTE 4.01% 3.88% 0.13 %Cost of interest-bearing deposits 0.50% 0.59% (0.09)%Cost of total deposits 0.38% 0.44% (0.06)%Cost of interest-bearing liabilities 0.60% 0.65% (0.05)%Net interest margin, FTE 3.57% 3.39% 0.18 % Provision for Loan Loss and Credit Quality There was no provision for loan losses during the fourth quarter of 2020, compared to $2.6 million in the third quarter of 2020. At December 31, 2020, the allowance for loan losses was $18.3 million. The allowance for loan losses to total loans was 0.77% as of December 31, 2020, compared to 0.78% as of September 30, 2020. For the Company’s originated loans, the allowance for loan losses to originated loans, less PPP loans, was 0.96% as of December 31, 2020, compared to 1.00% as of September 31, 2020. The remaining discounts on the acquired loan portfolio totaled $14.5 million, or 3.76% of acquired loans as of December 31, 2020. During the quarter, the Company added a qualitative factor to the loan loss model, which is based upon the average number of COVID cases within our footprint. As of December 31, 2020, the Company had COIVD related modified loans totaling $17.2 million, or 0.7%, of the loan portfolio, as compared to $232.5 million or 9.7%, of the loan portfolio on September 30, 2020. The following table presents detailed information related to the provision for loan losses for the periods indicated (dollars in thousands): Three Months Ended Dec Sep Provision for Loan Losses Rollforward 2020 2020 Change Beginning balance $18,817 $16,254 $2,563 Charge-offs (520) (174) (346) Recoveries 49 103 (54) Net charge-offs (471) (71) (400) Provision - 2,634 (2,634) Ending balance $18,346 $18,817 $(471) Allowance for loan losses to total loans, gross 0.77 % 0.78 % (0.01)% 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 0.24% as of December 31, 2020, an increase of fifteen basis points from the 0.09% reported in the third quarter of 2020. 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 December 31, 2020, as compared to 0.18% as of September 30, 2020. The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands): Three Months Ended Dec Sep Increase Credit Quality 2020 2020 (Decrease) Nonaccrual loans $5,633 $2,248 $3,385 Loans past due 90 days or more and still accruing 149 - 149 Total nonperforming loans 5,782 2,248 3,534 Other real estate owned 4,619 3,932 687 Total nonperforming assets $10,401 $6,180 $4,221 Nonperforming loans to total loans, gross 0.24% 0.09% 0.15%Nonperforming assets to total assets 0.31% 0.18% 0.13% Noninterest Income Noninterest income increased $855 thousand to $5.0 million for the fourth quarter of 2020 compared to $4.1 million for the third quarter of 2020. During the fourth quarter of 2020, the primary components of the changes in noninterest income were as follows: Increase in service charges on deposit accounts of $140 thousand, primarily related to increased transaction volume;Increase in mortgage banking income of $302 thousand, continued to experience high volume during the quarter;Increase in other income of $476 thousand, related to $465 thousand of previously reserved funds from a dissolved loan program from the Alabama Department of Economic and Community Affairs (“ADECA”). These funds were placed in reserves for potential future losses. During the fourth quarter of 2020, these specific loans paid-off and the reserve was no longer required; andDecrease in interchange and debit card transaction fees of $108 thousand, due to a one-time credit of $130 thousand from vendor reported during the third quarter of 2020. The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands): Three Months Ended Dec Sep IncreaseNoninterest Income 2020 2020 (Decrease)Service charges on deposit accounts $1,032 $892 $140 Gain (loss) on sale of securities, net - (9) 9 Mortgage banking income 1,331 1,029 302 Investment services 407 359 48 Insurance commissions 548 560 (12)Interchange and debit card transaction fees 760 868 (108)Other 898 422 476 Total noninterest income $4,976 $4,121 $855 Noninterest Expense Noninterest expense was $20.0 million for the fourth quarter of 2020 compared to $19.2 million for the third quarter of 2020. During the fourth quarter of 2020, the primary components of the changes in noninterest expense were as follows: Salaries and employee benefits increased $484 thousand, increase is primarily attributable to year-end employee incentive accrual adjustments and various other employee benefit related accruals;Professional services increased $192 thousand, due to increased volume of services performed;Amortization of intangibles increased $169 thousand, increase is from a cumulative adjustment for the amortization of intangible assets (client list and trademark) related to the insurance company purchased in the acquisition of Progressive Financial Group (“PFG”);Merger related and restructuring expense increased $412 thousand, primarily related from the consolidation and termination of two leased properties; FDIC insurance decreased $237 thousand, the decrease was related to an elevated third quarter expense due to an accrual adjustment; andOther real estate and loan related expenses decreased $127 thousand, primarily attributable to decreased activity in loan related activity. The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands): Three Months Ended Dec Sep IncreaseNoninterest Expense 2020 2020 (Decrease)Salaries and employee benefits $11,516 $11,032 $484 Occupancy and equipment 2,256 2,186 70 FDIC insurance 297 534 (237)Other real estate and loan related expenses 516 643 (127)Advertising and marketing 181 253 (72)Data processing 592 558 34 Professional services 786 594 192 Amortization of intangibles 571 402 169 Software as service contracts 590 573 17 Merger related and restructuring expenses 702 290 412 Other 1,946 2,102 (156)Total noninterest expense $19,953 $19,167 $786 Income Tax Expense Income tax expense was $2.5 million for the fourth quarter of 2020, an increase of $531 thousand, compared to $2.0 million for the third quarter of 2020. For the fourth quarter of 2020, the effective tax rate was 21.7% compared to 23.5% for the third quarter of 2020. The lower effective tax rate during the fourth quarter of 2020 was primarily from tax benefits associated with a program the State of Tennessee manages for Community Investment loans. Balance Sheet Trends Total assets at December 31, 2020, were $3.30 billion compared with $2.45 billion at December 31, 2019. The increase of $855.8 million is primarily attributable to assets acquired from the acquisition of PFG of approximately $308.2 million, increase in cash and cash equivalents of $241.8 million and the net originations of $288.9 million of PPP loans. Total liabilities increased to $2.95 billion at December 31, 2020 from $2.14 billion at December 31, 2019. The increase of $811.4 million was primarily from organic deposit growth of $486.0 million, acquired deposits from the acquisition of PFG in the amount of $272.0 million, and an increase in borrowings of $49.6 million. Shareholders' equity at December 31, 2020, totaled $357.2 million, an increase of $44.4 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, net income of $24.3 million for the year ended December 31, 2020 and a net change in accumulated other comprehensive income of $2.0 million, which was offset by the repurchase of the Company's common stock of $4.3 million and $3.0 million of dividends paid. Tangible book value per share (Non-GAAP) was $17.92 at December 31, 2020, an increase from $16.82 at December 31, 2019. Tangible common equity (Non-GAAP) as a percentage of tangible assets (Non-GAAP) was 8.41% at December 31, 2020, compared with 9.93% at December 31, 2019. The following table presents selected balance sheet information for the periods indicated (dollars in thousands): Dec Dec IncreaseSelected Balance Sheet Information 2020 2019 (Decrease)Total assets $3,304,949 $2,449,123 $855,826Total liabilities 2,947,781 2,136,376 811,405Total equity 357,168 312,747 44,421Securities available-for-sale, at fair value 215,634 178,348 37,286Loans 2,382,243 1,897,392 484,851Deposits 2,805,215 2,047,214 758,001Borrowings 81,199 31,623 49,576 Conference Call Information SmartFinancial issued this earnings release for the fourth quarter of 2020 on Tuesday, January 19, 2021, and will host a conference call on Wednesday, January 20, 2021, at 10:00 a.m. ET. To access this interactive teleconference, dial (888) 317-6003 or (412) 317-6061 and enter the confirmation number, 0205038. A replay of the conference call will be available through January 20, 2022, by dialing (877) 344-7529 or (412) 317-0088 and entering the confirmation number, 10151327. Conference call materials 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 CarrollRon GorczynskiPresident & CEOExecutive 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 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 shareholder' 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 income (x) operating noninterest expense, (xi) tangible common equity, (xii) average tangible common equity, (xiii) tangible book value; and ratios derived therefrom, in its analysis of the company's performance. 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. Operating return on average assets is the annualized operating earnings divided by average assets. Operating pre-tax pre-provision return on average assets is the annualized operating pre-tax pre-provision income divided by average assets. Operating return on average shareholders' equity is the annualized operating earnings divided by average equity. Return on average tangible common equity is the annualized net income divided by average tangible common equity. Operating return on average tangible common equity is the annualized 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 pre-tax pre-provision income is net interest expense plus operating noninterest income less operating noninterest expense. 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) 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 completed acquisition of PFG; (7) the risk that the anticipated benefits from the completed acquisition of PFG 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 accounting principles, policies, or guidelines; (13) 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; (14) 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; (15) the impact of the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (16) potential increases in the provision for loan losses resulting from the COVID-19 pandemic; and (17) 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 SubsidiaryCondensed Consolidated Financial Information - (unaudited)(dollars in thousands) Ending Balances Dec Sep Jun Mar Dec 2020 2020 2020 2020 2019Assets: Cash and cash equivalents $481,719 $541,815 $399,467 $309,089 $183,971 Securities available-for-sale, at fair value 215,634 214,634 219,631 201,002 178,348 Other investments 14,794 14,829 14,829 14,113 12,913 Loans held for sale 11,721 11,292 6,330 6,045 5,856 Loans 2,382,243 2,404,057 2,408,284 2,139,247 1,897,392 Less: Allowance for loan losses (18,346) (18,817) (16,254) (13,431) (10,243)Loans, net 2,363,897 2,385,240 2,392,030 2,125,816 1,887,149 Premises and equipment, net 72,682 73,934 73,868 73,801 59,433 Other real estate owned 4,619 3,932 5,524 5,894 1,757 Goodwill and core deposit intangibles, net 86,471 86,710 86,327 86,503 77,193 Bank owned life insurance 31,215 31,034 30,853 30,671 24,949 Other assets 22,197 24,168 37,126 20,781 17,554 Total assets $3,304,949 $3,387,588 $3,265,985 $2,873,715 $2,449,123 Liabilities: Deposits: Noninterest-bearing demand $685,957 $669,733 $645,650 $431,781 $364,155 Interest-bearing demand 649,129 534,128 479,212 444,141 380,234 Money market and savings 919,631 871,098 762,246 730,392 623,284 Time deposits 550,498 577,064 652,581 735,616 679,541 Total deposits 2,805,215 2,652,023 2,539,689 2,341,930 2,047,214 Borrowings 81,199 319,391 318,855 131,603 31,623 Subordinated debt 39,346 39,325 39,304 39,283 39,261 Other liabilities 22,021 27,060 24,649 24,699 18,278 Total liabilities 2,947,781 3,037,799 2,922,497 2,537,515 2,136,376 Shareholders' Equity: Common stock 15,107 15,233 15,217 15,222 14,008 Additional paid-in capital 252,693 254,626 254,396 254,356 232,732 Retained earnings 87,185 78,918 73,283 67,869 65,839 Accumulated other comprehensive income (loss) 2,183 1,012 592 (1,247) 168 Total shareholders' equity 357,168 349,789 343,488 336,200 312,747 Total liabilities & shareholders' equity $3,304,949 $3,387,588 $3,265,985 $2,873,715 $2,449,123 SmartFinancial, Inc. and SubsidiaryCondensed Consolidated Financial Information - (unaudited)(dollars in thousands except share and per share data) Three Months Ended Year Ended Dec Sep Jun Mar Dec Dec Dec 2020 2020 2020 2020 2019 2020 2019Interest income: Loans, including fees$28,594 $28,621 $28,663 $26,434 $25,398 $112,312 $101,002Securities available-for-sale: Taxable 609 546 589 679 698 2,423 3,289Tax-exempt 306 364 416 283 345 1,369 1,518Federal funds sold and other earning assets 303 327 277 602 587 1,509 2,646Total interest income 29,812 29,858 29,945 27,998 27,028 117,613 108,455Interest expense: Deposits 2,580 2,897 3,366 4,754 5,271 13,597 21,915Borrowings 142 334 249 89 70 816 319Subordinated debt 584 584 584 584 584 2,334 2,341Total interest expense 3,306 3,815 4,199 5,427 5,924 16,747 24,575Net interest income 26,506 26,043 25,746 22,571 21,104 100,866 83,880Provision for loan losses — 2,634 2,850 3,200 685 8,683 2,599Net interest income after provision for loan losses 26,506 23,409 22,896 19,371 20,419 92,183 81,281Noninterest income: Service charges on deposit accounts 1,032 892 709 770 773 3,403 2,902Gain (loss) on sale of securities, net — (9) 16 — — 6 34Mortgage banking 1,331 1,029 931 584 374 3,875 1,566Investment services 407 359 363 437 261 1,566 946Insurance commissions 548 560 473 269 — 1,850 —Interchange and debit card transaction fees 760 868 508 276 163 2,413 628Merger termination fee — — — — — — 6,400Other 898 422 511 482 1,269 2,313 2,839Total noninterest income 4,976 4,121 3,511 2,818 2,840 15,426 15,315Noninterest expense: Salaries and employee benefits 11,516 11,032 10,357 10,006 10,278 42,911 36,635Occupancy and equipment 2,256 2,186 1,996 1,911 1,749 8,348 6,716FDIC insurance 297 534 180 180 — 1,190 140Other real estate and loan related expense 516 643 346 545 253 2,050 1,320Advertising and marketing 181 253 202 198 166 834 983Data processing 592 558 594 538 530 2,281 1,995Professional services 786 594 868 711 652 2,958 2,375Amortization of intangibles 571 402 405 362 340 1,740 1,368Software as service contracts 590 573 561 470 500 2,195 2,195Merger related and restructuring expenses 702 290 1,477 2,096 427 4,565 3,219Other 1,946 2,102 1,820 1,776 1,157 7,647 6,205Total noninterest expense 19,953 19,167 18,806 18,793 16,052 76,719 63,151Income before income taxes 11,529 8,363 7,601 3,396 7,206 30,890 33,445Income tax expense 2,499 1,968 1,427 664 473 6,558 6,897Net income$9,030 $6,395 $6,174 $2,732 $6,733 $24,332 $26,548Earnings per common share: Basic$0.60 $0.42 $0.41 $0.19 $0.48 $1.63 $1.90Diluted$0.59 $0.42 $0.41 $0.19 $0.48 $1.62 $1.89Weighted average common shares outstanding: Basic 15,109,298 15,160,579 15,152,768 14,395,103 13,965,877 14,955,423 13,953,497Diluted 15,182,796 15,210,611 15,202,335 14,479,679 14,066,269 15,019,175 14,046,366 SmartFinancial, Inc. and SubsidiaryCondensed Consolidated Financial Information - (unaudited)(dollars in thousands)YIELD ANALYSIS Three Months Ended December 31, 2020 September 30, 2020 December 31, 2019 Average Yield/ Average Yield/ Average Yield/ Balance Interest1 Cost1 Balance Interest1 Cost1 Balance Interest1 Cost1 Assets: Loans, including fees2 $2,401,406 $28,506 4.72%$2,410,173 $28,508 4.71%$1,876,953 $25,350 5.36%Loans held for sale 10,191 88 3.45% 8,048 113 5.57% 4,548 48 4.19%Taxable securities 119,936 609 2.02% 132,642 546 1.64% 116,278 698 2.38%Tax-exempt securities 90,200 456 2.01% 88,129 515 2.32% 59,048 461 3.09%Federal funds sold and other earning assets 349,167 303 0.35% 438,785 327 0.30% 133,681 587 1.74%Total interest-earning assets 2,970,900 29,962 4.01% 3,077,777 30,009 3.88% 2,190,508 27,144 4.92%Noninterest-earning assets 255,477 262,764 190,083 Total assets $3,226,377 $3,340,541 $2,380,591 Liabilities and Stockholders’ Equity: Interest-bearing demand deposits $570,326 230 0.16%$509,999 199 0.16%$351,901 486 0.55%Money market and savings deposits 903,235 774 0.34% 833,022 704 0.34% 632,555 1,695 1.06%Time deposits 565,237 1,576 1.11% 615,714 1,994 1.29% 633,867 3,090 1.93%Total interest-bearing deposits 2,038,798 2,580 0.50% 1,958,735 2,897 0.59% 1,618,323 5,271 1.29%Borrowings3 99,777 142 0.57% 319,265 334 0.42% 30,870 70 0.90%Subordinated debt 39,332 584 5.90% 39,311 584 5.91% 39,248 584 5.90%Total interest-bearing liabilities 2,177,907 3,306 0.60% 2,317,311 3,815 0.65% 1,688,441 5,924 1.39%Noninterest-bearing deposits 670,820 649,489 363,542 Other liabilities 23,624 25,834 19,836 Total liabilities 2,872,351 2,992,634 2,071,819 Shareholders' equity 354,026 347,907 308,772 Total liabilities and shareholders' equity $3,226,377 $3,340,541 $2,380,591 Net interest income, taxable equivalent $26,656 $26,194 $21,220 Interest rate spread 3.41% 3.22% 3.52%Tax equivalent net interest margin 3.57% 3.39% 3.84% Percentage of average interest-earning assets to average interest-bearing liabilities 136.41% 132.82% 129.74%Percentage of average equity to average assets 10.97% 10.41% 12.97% 1 Taxable equivalent2 Includes average balance of $296,337 and $295,045 in PPP loans for the quarters ended December 31, 2020 and September 30, 2020, respectively.3 Includes average balance of $18,092 and $237,780 in Paycheck Protection Program Liquidity Facility (“PPPLF”) funding for the quarters ended December 31, 2020 and September 30, 2020, respectively. SmartFinancial, Inc. and SubsidiaryCondensed Consolidated Financial Information - (unaudited)(dollars in thousands)YIELD ANALYSIS Year Ended December 31, 2020 December 31, 2019 Average Yield/ Average Yield/ Balance Interest1 Cost1 Balance Interest1 Cost1 Assets: Loans, including fees2 $2,289,612 $111,992 4.89%$1,836,963 $100,831 5.49%Loans held for sale 7,360 320 4.34% 3,858 171 4.43%Taxable securities 122,900 2,423 1.97% 129,705 3,289 2.54%Tax-exempt securities 83,765 1,941 2.32% 56,458 1,972 3.49%Federal funds sold and other earning assets 308,843 1,509 0.49% 110,380 2,646 2.40%Total interest-earning assets 2,812,480 118,185 4.20% 2,137,364 108,909 5.10%Noninterest-earning assets 250,955 201,976 Total assets $3,063,435 $2,339,340 Liabilities and Stockholders’ Equity: Interest-bearing demand deposits $481,050 1,013 0.21%$333,100 1,883 0.57%Money market and savings deposits 788,006 3,482 0.44% 651,855 7,827 1.20%Time deposits 641,647 9,102 1.42% 635,451 12,205 1.92%Total interest-bearing deposits 1,910,703 13,597 0.71% 1,620,406 21,915 1.35%Borrowings3 177,204 816 0.46% 21,526 319 1.48%Subordinated debt 39,301 2,334 5.94% 39,216 2,341 5.97%Total interest-bearing liabilities 2,127,208 16,747 0.79% 1,681,148 24,575 1.46%Noninterest-bearing deposits 571,282 343,611 Other liabilities 23,775 15,852 Total liabilities 2,722,265 2,040,611 Shareholders' equity 341,170 298,729 Total liabilities and shareholders' equity $3,063,435 $2,339,340 Net interest income, taxable equivalent $101,438 $84,334 Interest rate spread 3.41% 3.64%Tax equivalent net interest margin 3.61% 3.95% Percentage of average interest-earning assets to average interest-bearing liabilities 132.21% 127.14%Percentage of average equity to average assets 11.14% 12.77% 1 Taxable equivalent2 Includes average balance of $201,470 in PPP loans for the twelve months ended December 31, 2020.3 Includes average balance of $91,190 in PPPLF funding for the twelve months ended December 31, 2020. SmartFinancial, Inc. and SubsidiaryCondensed Consolidated Financial Information - (unaudited)(dollars in thousands) As of and for The Three Months Ended Dec Sep Jun Mar Dec 2020 2020 2020 2020 2019 Composition of Loans: Commercial real estate owner occupied $463,771 $467,569 $464,073 $473,398 $429,269 non-owner occupied 549,205 563,082 552,958 535,637 476,038 Commercial real estate, total 1,012,976 1,030,651 1,017,031 1,009,035 905,307 Commercial & industrial 634,446 644,498 637,450 377,173 337,075 Construction & land development 278,075 275,172 279,216 253,445 227,626 Consumer real estate 443,930 440,310 459,861 482,728 417,481 Consumer and other 12,816 13,426 14,726 16,866 9,903 Total loans $2,382,243 $2,404,057 $2,408,284 $2,139,247 $1,897,392 Asset Quality and Additional Loan Data: Nonperforming loans $5,782 $2,248 $3,776 $3,069 $3,350 Other real estate owned 4,619 3,932 5,524 5,894 1,757 Total nonperforming assets $10,401 $6,180 $9,300 $8,963 $5,107 Restructured loans not included in nonperforming loans $257 $8 $9 $9 $61 Net charge-offs to average loans (annualized) 0.08% 0.01% —% —% 0.01%Allowance for loan losses to loans 0.77% 0.78% 0.67% 0.63% 0.54%Nonperforming loans to total loans, gross 0.24% 0.09% 0.16% 0.14% 0.18%Nonperforming assets to total assets 0.31% 0.18% 0.28% 0.31% 0.21%Acquired loan fair value discount balance $14,467 $15,141 $16,187 $17,237 $15,348 Accretion income on acquired loans 768 960 888 1,841 1,375 PPP net fees deferred balance 4,190 6,348 8,582 — — PPP net fees recognized 2,157 1,812 1,909 — — Capital Ratios: Equity to Assets 10.81% 10.33% 10.52% 11.70% 12.77%Tangible common equity to tangible assets (Non-GAAP)1 8.41% 7.97% 8.09% 8.96% 9.93% SmartFinancial, Inc.2 Tier 1 leverage 8.69% 8.78% 8.83% 10.28% 10.34%Common equity Tier 1 11.61% 11.33% 10.92% 10.87% 11.61%Tier 1 capital 11.61% 11.33% 10.92% 10.87% 11.61%Total capital 14.07% 13.81% 13.25% 13.13% 14.02% SmartBank Estimated3 Tier 1 leverage 9.58% 9.74% 9.82% 11.42% 11.41%Common equity Tier 1 12.79% 12.57% 12.14% 12.05% 12.81%Tier 1 risk-based capital 12.79% 12.57% 12.14% 12.05% 12.81%Total risk-based capital 13.57% 13.37% 12.82% 12.62% 13.31% 1Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures.2All periods presented are estimated.3 Current period capital ratios are estimated as of the date of this earnings release. SmartFinancial, Inc. and SubsidiaryCondensed 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 Year Ended Dec Sep Jun Mar Dec Dec Dec 2020 2020 2020 2020 2019 2020 2019 Selected Performance Ratios (Annualized): Return on average assets 1.11% 0.76% 0.79% 0.43% 1.12% 0.79% 1.13%Return on average shareholders' equity 10.15% 7.31% 7.31% 3.33% 8.65% 7.13% 8.89%Return on average tangible common equity¹ 13.43% 9.72% 9.80% 4.41% 11.55% 9.50% 12.04%Noninterest income / average assets 0.61% 0.49% 0.45% 0.44% 0.47% 0.50% 0.65%Noninterest expense / average assets 2.46% 2.28% 2.41% 2.96% 2.68% 2.50% 2.70%Efficiency ratio 63.38% 63.54% 64.28% 74.02% 67.04% 65.97% 63.66% Operating Selected Performance Ratios (Annualized): Operating return on average assets1 1.14% 0.79% 0.93% 0.67% 1.08% 0.89% 1.01%Operating PTPP return on average assets1 1.45% 1.35% 1.53% 1.37% 1.31% 1.43% 1.39%Operating return on average shareholders' equity1 10.34% 7.57% 8.58% 5.22% 8.34% 8.02% 7.91%Operating return on average tangible common equity1 13.69% 10.06% 11.51% 6.90% 11.12% 10.67% 10.71%Operating efficiency ratio1 60.86% 62.25% 58.95% 65.46% 64.95% 61.75% 64.29%Operating noninterest income / average assets1 0.56% 0.49% 0.45% 0.44% 0.35% 0.49% 0.35%Operating noninterest expense / average assets1 2.37% 2.25% 2.23% 2.63% 2.56% 2.36% 2.55% Selected Interest Rates and Yields: Yield on loans 4.72% 4.71% 4.87% 5.35% 5.36% 4.89% 5.49%Yield on earning assets, FTE 4.01% 3.88% 4.22% 4.83% 4.92% 4.20% 5.10%Cost of interest-bearing deposits 0.50% 0.59% 0.71% 1.10% 1.29% 0.71% 1.35%Cost of total deposits 0.38% 0.44% 0.54% 0.91% 1.06% 0.55% 1.12%Cost of interest-bearing liabilities 0.60% 0.65% 0.77% 1.20% 1.39% 0.79% 1.46%Net interest margin, FTE 3.57% 3.39% 3.63% 3.90% 3.84% 3.61% 3.95% Per Common Share: Net income, basic$0.60 $0.42 $0.41 $0.19 $0.48 $1.63 $1.90 Net income, diluted 0.59 0.42 0.41 0.19 0.48 1.62 1.89 Operating earnings, basic¹ 0.61 0.44 0.48 0.30 0.46 1.83 1.69 Operating earnings, diluted¹ 0.61 0.44 0.48 0.30 0.46 1.82 1.68 Book value 23.64 22.96 22.57 22.09 22.33 23.64 22.33 Tangible book value¹ 17.92 17.27 16.90 16.40 16.82 17.92 16.82 Common shares outstanding 15,107,214 15,233,227 15,216,932 15,221,990 14,008,233 15,107,214 14,008,233 ¹See reconciliation of Non-GAAP measures SmartFinancial, Inc. and SubsidiaryCondensed Consolidated Financial Information - (unaudited)(dollars in thousands)NON-GAAP RECONCILIATIONS Three Months Ended Year Ended Dec Sep Jun Mar Dec Dec Dec 2020 2020 2020 2020 2019 2020 2019 Operating Earnings: Net income (GAAP) $9,030 $6,395 $6,174 $2,732 $6,733 $24,332 $26,548 Noninterest income: Securities gains (losses), net — 9 (16) — — (6) (34) ADECA termination proceeds (465) — — — (720) (465) (720) Merger termination fee — — — — — — (6,400) Noninterest expenses: Salaries - prior year adjustment — — — — 603 — 603 Merger related and restructuring expenses 702 290 1,477 2,096 427 4,565 3,219 Other - prior year franchise tax true-up — — — — (312) — (312) Income taxes: Tax benefit - prior year amended return — — — — (304) — (304) Income tax effect of adjustments (62) (77) (382) (548) 60 (1,071) 1,015 Operating earnings (Non-GAAP) $9,205 $6,617 $7,253 $4,280 $6,487 $27,355 $23,615 Operating earnings per common share (Non-GAAP): Basic $0.61 $0.44 $0.48 $0.30 $0.46 $1.83 $1.69 Diluted 0.61 0.44 0.48 0.30 0.46 1.82 1.68 Operating Noninterest Income: Noninterest income (GAAP) $4,976 $4,121 $3,511 $2,818 $2,840 $15,426 $15,315 Securities gains (losses), net — 9 (16) — — (6) (34) ADECA termination proceeds (465) — — — (720) (465) (720) Merger termination fee — — — — — — (6,400) Operating noninterest income (Non-GAAP) $4,511 $4,130 $3,495 $2,818 $2,120 $14,955 $8,161 Operating noninterest income (Non-GAAP)/average assets1 0.56 % 0.49 % 0.45 % 0.44 % 0.35 % 0.49 % 0.35 % Operating Noninterest Expense: Noninterest expense (GAAP) $19,953 $19,167 $18,806 $18,793 $16,052 $76,719 $63,151 Salaries - prior year adjustment — — — — (603) — (603) Merger related and restructuring expenses (702) (290) (1,477) (2,096) (427) (4,565) (3,219) Other - prior year franchise tax true-up — — — — 312 — 312 Operating noninterest expense (Non-GAAP) $19,251 $18,877 $17,329 $16,697 $15,334 $72,154 $59,641 Operating noninterest expense (Non-GAAP)/average assets2 2.37 % 2.25 % 2.23 % 2.63 % 2.56 % 2.36 % 2.55 % Operating Pre-tax Pre-provision ("PTPP") Earnings: Net interest income (GAAP) $26,506 $26,043 $25,746 $22,571 $21,104 $100,866 $83,880 Operating noninterest income 4,511 4,130 3,495 2,818 2,120 14,955 8,161 Operating noninterest expense (19,251) (18,877) (17,329) (16,697) (15,334) (72,154) (59,641) Operating PTPP earnings (Non-GAAP) $11,766 $11,296 $11,912 $8,692 $7,890 $43,667 $32,400 Non-GAAP Return Ratios: Operating return on average assets (Non-GAAP)3 1.14 % 0.79 % 0.93 % 0.67 % 1.08 % 0.89 % 1.01 % Operating PTPP return on average assets (Non-GAAP)4 1.45 % 1.35 % 1.53 % 1.37 % 1.31 % 1.43 % 1.39 % Return on average tangible common equity (Non-GAAP)5 13.43 % 9.72 % 9.80 % 4.41 % 11.55 % 9.50 % 12.04 % Operating return on average shareholder equity (Non-GAAP)6 10.34 % 7.57 % 8.58 % 5.22 % 8.34 % 8.02 % 7.91 % Operating return on average tangible common equity (Non-GAAP)7 13.69 % 10.06 % 11.51 % 6.90 % 11.12 % 10.67 % 10.71 % Operating Efficiency Ratio: Efficiency ratio (GAAP) 63.38 % 63.54 % 64.28 % 74.02 % 67.04 % 65.97 % 63.66 % Adjustment for taxable equivalent yields (0.30)% (0.32)% (0.34)% (0.34)% (0.33)% (0.33)% (0.29)% Adjustment for securities gains (losses) — % 0.02 % (0.04)% — % — % (0.01)% (0.02)% Adjustment for merger related income and costs (2.22)% (0.99)% (4.95)% (8.21)% (1.76)% (3.88)% 0.94 % Operating efficiency ratio (Non-GAAP) 60.86 % 62.25 % 58.95 % 65.46 % 64.95 % 61.75 % 64.29 % 1Operating noninterest income (Non-GAAP) is annualized and divided by average assets.2Operating noninterest expense (Non-GAAP) is annualized and divided by average assets.3Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets.4Operating PTPP return on average assets (Non-GAAP) is the annualized operating PTPP earnings (Non-GAAP) divided by average assets. 5Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP).6Operating return on average equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average equity.7Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP). SmartFinancial, Inc. and SubsidiaryCondensed Consolidated Financial Information - (unaudited)(dollars in thousands)NON-GAAP RECONCILIATIONS Three Months Ended Year Ended Dec Sep Jun Mar Dec Dec Dec 2020 2020 2020 2020 2019 2020 2019Tangible Common Equity: Shareholders' equity (GAAP) $357,168 $349,789 $343,488 $336,200 $312,747 $357,168 $312,747 Less goodwill and other intangible assets 86,471 86,710 86,327 86,503 77,193 86,471 77,193 Tangible common equity (Non-GAAP) $270,697 $263,079 $257,161 $249,697 $235,554 $270,697 $235,554 Average Tangible Common Equity: Average shareholders' equity (GAAP) $354,026 $347,907 $339,861 $329,692 $308,772 $341,170 $298,729 Less average goodwill and other intangible assets 86,561 86,206 86,484 80,370 77,400 84,913 78,270 Average tangible common equity (Non-GAAP) $267,465 $261,701 $253,377 $249,322 $231,372 $256,257 $220,459 Tangible Book Value per Common Share: Book value per common share (GAAP) $23.64 $22.96 $22.57 $22.09 $22.33 $23.64 $22.33 Adjustment due to goodwill and other intangible assets (5.72) (5.69) (5.67) (5.69) (5.51) (5.72) (5.51)Tangible book value per common share (Non-GAAP)1 $17.92 $17.27 $16.90 $16.40 $16.82 $17.92 $16.82 Tangible Common Equity to Tangible Assets: Total Assets $3,304,949 $3,387,588 $3,265,985 $2,873,715 $2,449,123 $3,304,949 $2,449,123 Less goodwill and other intangibles 86,471 86,710 86,327 86,503 77,193 86,471 77,193 Tangible Assets (Non-GAAP): $3,218,478 $3,300,878 $3,179,658 $2,787,212 $2,371,930 $3,218,478 $2,371,930 Tangible common equity to tangible assets (Non-GAAP) 8.41% 7.97% 8.09% 8.96% 9.93% 8.41% 9.93% 1Tangible book value per share is computed by dividing total stockholder's equity, less goodwill and other intangible assets by common shares outstanding.