業績公告
即時報告
8-K
2026-07-20
SmartFinancial第二季淨利1630萬美元 每股盈利0.96元 貸款年化季增15%
AI 繁中摘要
SmartFinancial（紐交所代號：SMBK）公佈2026年第二季度業績（8-K申報）📊
截至2026年6月30日止三個月，SmartFinancial錄得淨利潤1,630萬美元（每股攤薄盈利0.96美元），較去年同期1,170萬美元（0.69美元）及上季1,370萬美元（0.81美元）均有增長。期內亮點包括：有機貸款及租賃增長1.65億美元（年化季增15%），總資產突破60億美元至約61.2億美元；核心存款增長8,300萬美元（年化季增6%）；有形賬面價值每股由去年底的26.85美元升至28.22美元，年化季增13%。淨息差（稅等值）擴闊至3.52%（上季3.48%），主要受資產收益率上升帶動，而負債成本增幅較慢。資產質素維持穩健，不良貸款僅佔總貸款0.25%，撥備覆蓋率0.97%。董事會宣派季度現金股息每股0.09美元，8月17日派發，記錄日為7月31日。
管理層表示，第二季度策略執行取得穩步進展，貸款增長理想，淨息差擴張，同時營運槓桿錄得正數（收入增長快於支出）。總裁兼CEO Billy Carroll指出，行業整合及部分競爭對手的營運困難持續為公司帶來深化客戶關係及搶佔市場份額的機會，對長期增長前景充滿信心。主席Miller Welborn則強調團隊文化及投資回報，認為業績反映審慎執行與市場拓展的成果。
對投資者而言，第二季度盈利表現優於預期，貸款增長動力強勁，資產質素保持良好，加上股息持續派發，反映公司基本面穩健。惟需留意宏觀經濟不確定性及利率環境變化對未來業績的潛在影響。
展開英文正文
EX-99.1
2
smbk-20260720xex99d1.htm
EX-99.1
Exhibit 99.1
2Q 2026
SmartFinancial Announces Results for the Second Quarter 2026
Regular Quarterly Cash Dividend
KNOXVILLE, TN – July 20, 2026 – SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NYSE: SMBK), today announced net income of $16.3 million, or $0.96 per diluted common share, for the second quarter of 2026, compared to net income of $11.7 million, or $0.69 per diluted common share, for the second quarter of 2025, and compared to prior quarter net income of $13.7 million, or $0.81 per diluted common share.
Highlights for the Second Quarter of 2026
●Operating earnings1 of $16.3 million, or $0.96 per diluted common share
●Net organic loan and lease growth of $165 million representing 15% annualized quarter-over-quarter increase
●Surpassed $6 billion in total assets during the quarter
●Core deposit2 growth of $83 million representing 6% annualized quarter-over-quarter increase
●Quarter-over-quarter tangible book value per common share1 growth of 13% annualized
●Recertified as a Great Place to Work by over 97% of SmartBank Associates
Billy Carroll, President & CEO, stated: “Our second quarter results reflect steady progress in the execution of our strategy. During the quarter, we generated approximately 15% annualized loan growth and expanded our net interest margin to 3.52%, while maintaining excellent asset quality. Diluted earnings per share increased to $0.96, an improvement of $0.15 from the first quarter, and tangible book value per common share grew quarter over quarter by 13% annualized. We also generated positive operating leverage as revenue growth outpaced expense growth during the quarter. Pipelines across the Company remain healthy, and we believe the disruption created by ongoing consolidation and operational challenges at certain competitors continues to create meaningful opportunities to deepen relationships and gain market share. While we recognize there is still work to do, our strong momentum gives us confidence in the long-term trajectory of the Company and our ability to continue creating value for shareholders. I want to thank our associates for their hard work and commitment to our clients, which continue to drive our performance and position the Company for future growth.”
SmartFinancial's Chairman, Miller Welborn, concluded: “The momentum we continue to build across SmartBank, reflects the strength of our franchise and the commitment of our associates. Being recertified as a Great Place to Work by more than 97% of our associates is particularly meaningful because it speaks to the culture that has been foundational to our success. The results achieved this quarter reflect the disciplined execution of our associates across the Company and the benefits of the investments we have made in our markets, people, and operating platform. I want to thank our associates for the exceptional work they do every day to serve our clients and create long-term value for our shareholders. As we look ahead, we remain excited about the opportunities and confident in our ability to capitalize on them.”
Net Interest Income and Net Interest Margin
Net interest income was $48.1 million for the second quarter of 2026, compared to $45.9 million for the prior quarter. Average earning assets totaled $5.52 billion, an increase of $131.7 million from the prior quarter. The balances of average earning assets increased quarter-over-quarter, primarily from an increase in average loans and leases of $176.3 million and average securities of $9.7 million, offset by a decrease in average federal funds sold and other earning assets of $54.3 million. Average interest-bearing liabilities increased by $153.3 million from the prior quarter, primarily attributable to an increase in average interest-bearing deposits of $115.5 million and borrowings of $37.7 million.
1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliations.
2 Core deposits include all deposits less brokered and one-way buy Certificate of Deposit Account Registry Service (“CDARS”) deposits.
The tax equivalent net interest margin was 3.52% for the second quarter of 2026, up from 3.48% for the prior quarter. This increase is primarily related to the increase in asset yields, outpacing the increase in liability costs. The yield on loans and leases, excluding loan fees, fully taxable equivalent (“FTE”) was 5.95% for the second quarter of 2026, compared to 5.93% for the prior quarter.
The cost of total deposits for the second quarter of 2026 was 2.15%, compared to 2.12% in the prior quarter. The cost of interest-bearing liabilities was 2.74% for the second quarter of 2026, compared to 2.72% in the prior quarter. The cost of average interest-bearing deposits was 2.62% for the second quarter of 2026, compared to 2.60% for the prior quarter, an increase of 2 basis points.
The following table presents selected interest rates and yields for the periods indicated:
Three Months Ended
Jun
Mar
Increase
Selected Interest Rates and Yields
2026
2026
(Decrease)
Yield on loans and leases, excluding loan fees, FTE
5.95
%
5.93
%
0.02
%
Yield on loans and leases, FTE
6.07
%
6.02
%
0.05
%
Yield on earning assets, FTE
5.70
%
5.62
%
0.08
%
Cost of interest-bearing deposits
2.62
%
2.60
%
0.02
%
Cost of total deposits
2.15
%
2.12
%
0.03
%
Cost of interest-bearing liabilities
2.74
%
2.72
%
0.02
%
Net interest margin, FTE
3.52
%
3.48
%
0.04
%
Allowance for Credit Losses on Loans and Leases and Credit Quality
At June 30, 2026, the allowance for credit losses was $45.3 million. The allowance for credit losses to total loans and leases was 0.97% as of June 30, 2026, and March 31, 2026. During the first quarter of 2026, SmartBank updated its ACL loss model by adopting a discounted cash flow methodology, refining key assumptions and qualitative factors, and enhancing its use of macroeconomic drivers. These changes contributed to a higher provision for credit losses during the first quarter.
The following table presents detailed information related to the provision for credit losses for the periods indicated (dollars in thousands):
Three Months Ended
Jun
Mar
Increase
Allowance for Credit Losses on Loans and Leases Rollforward
2026
2026
(Decrease)
Beginning balance
$
43,950
$
40,906
$
3,044
Charge-offs
(658)
(229)
(429)
Recoveries
105
60
45
Net charge-offs
(553)
(169)
(384)
Provision for credit losses (1)
1,855
3,213
(1,358)
Ending balance
$
45,252
$
43,950
$
1,302
Allowance for credit losses to total loans and leases
0.97
%
0.97
%
-
%
(1)The current quarter-ended and prior quarter-ended provision excludes an unfunded commitments release of $392 thousand and a provision of $926 thousand, respectively. At June 30, 2026, and March 31, 2026, the unfunded commitment liability totaled $4.1 million and $4.5 million, respectively.
Nonperforming loans and leases as a percentage of total loans and leases was 0.25% as of June 30, 2026, and 0.27% as of March 31, 2026. Total nonperforming assets (which include nonaccrual loans and leases, loans and leases past due 90 days or more and still accruing, other real estate owned and other repossessed assets) as a percentage of total assets was 0.23% as of June 30, 2026, and 0.25% as of March 31, 2026.
2
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
2026
2026
(Decrease)
Nonaccrual loans and leases
$
11,474
$
12,257
$
(783)
Loans and leases past due 90 days or more and still accruing
-
-
-
Total nonperforming loans and leases
11,474
12,257
(783)
Other real estate owned
-
-
-
Other repossessed assets
2,754
2,798
(44)
Total nonperforming assets
$
14,228
$
15,055
$
(827)
Nonperforming loans and leases to total loans and leases
0.25
%
0.27
%
(0.02)
%
Nonperforming assets to total assets
0.23
%
0.25
%
(0.02)
%
Noninterest Income
Noninterest income decreased slightly, by $55 thousand to $7.9 million for the second quarter of 2026, compared to $7.9 million for the prior quarter. The second quarter decrease was primarily attributable to lower capital markets’ income included in other noninterest income, offset by increases in interchange and debit card transaction fees and mortgage banking income.
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
2026
2026
(Decrease)
Service charges on deposit accounts
$
1,881
$
1,853
$
28
Gain on sale of securities, net
54
1
53
Mortgage banking income
916
760
156
Investment services
1,724
1,796
(72)
Interchange and debit card transaction fees
1,676
1,418
258
Other
1,635
2,113
(478)
Total noninterest income
$
7,886
$
7,941
$
(55)
Noninterest Expense
Noninterest expense increased $1.0 million to $34.0 million for the second quarter of 2026, compared to $32.9 million for the prior quarter. The second quarter increase was primarily attributable to increases in salaries and employee benefits, FDIC insurance, data processing and technology and professional services, offset by a decrease in other expense.
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
2026
2026
(Decrease)
Salaries and employee benefits
$
21,015
$
20,414
$
601
Occupancy and equipment
3,351
3,344
7
FDIC insurance
920
750
170
Other real estate and loan related expenses
806
792
14
Advertising and marketing
408
387
21
Data processing and technology
2,683
2,436
247
Professional services
1,366
1,193
173
Amortization of intangibles
454
457
(3)
Other
2,952
3,142
(190)
Total noninterest expense
$
33,955
$
32,915
$
1,040
3
Income Tax Expense
Income tax expense was $4.2 million for the second quarter of 2026, compared with $3.1 million for the prior quarter. The $1.1 million increase was primarily driven by a higher projected annual effective tax rate resulting from increased forecasted taxable income relative to non-taxable income.
Balance Sheet Trends
Total assets at June 30, 2026, were $6.12 billion compared to $5.86 billion at December 31, 2025. The $254.5 million increase was primarily attributable to increases in loans and leases of $319.4 million, securities of $17.9 million, premises and equipment of $4.9 million, and bank owned life insurance of $1.8 million, offset by decreases in cash and cash equivalents of $85.0 million and loans held for sale of $1.2 million, as well as an increase in the allowance for credit losses of $4.3 million.
Total liabilities were $5.54 billion at June 30, 2026, compared to $5.31 billion at December 31, 2025, an increase of $230.1 million. Total deposits increased $232.8 million, which was driven primarily by increases in money market and savings deposits of $181.2 million, interest-bearing demand deposits of $76.4 million, and time deposits of $116.3 million, offset by a decline in noninterest-bearing demand deposits of $141.0 million. In addition, borrowings decreased by $2.4 million and other liabilities decreased by $434 thousand.
Shareholders' equity at June 30, 2026, totaled $576.9 million, an increase of $24.4 million, from December 31, 2025. The increase in shareholders' equity was primarily driven by net income of $30.0 million for the six months ending June 30, 2026, offset by an increase of $3.6 million in accumulated other comprehensive loss and dividends paid of $2.9 million. Tangible book value per common share1 was $28.22 at June 30, 2026, compared to $26.85 at December 31, 2025. Tangible common equity1 as a percentage of tangible assets1 was 8.01% at June 30, 2026, compared with 7.93% at December 31, 2025.
The following table presents selected balance sheet information for the periods indicated (dollars in thousands):
Jun
Dec
Increase
Selected Balance Sheet Information
2026
2025
(Decrease)
Total assets
$
6,115,306
$
5,860,810
$
254,496
Total liabilities
5,538,382
5,308,318
230,064
Total equity
576,924
552,492
24,432
Securities
679,913
662,003
17,910
Loans and leases
4,682,935
4,363,582
319,353
Deposits
5,385,550
5,152,789
232,761
Board of Directors Declares Dividend
On July 16, 2026, the board of directors of SmartFinancial declared a quarterly cash dividend of $0.09 per share of SmartFinancial common stock payable on August 17, 2026, to shareholders of record as of the close of business on July 31, 2026.
Conference Call Information
SmartFinancial issued this earnings release for the second quarter of 2026 on Monday, July 20, 2026, and will host a conference call on Tuesday, July 21, 2026, at 10:00 a.m. ET. To access this interactive teleconference, dial (833) 461-5787 and enter the Meeting ID: 208 155 555. A link to a replay of the conference call will be available on the Company’s webpage through July 21, 2027. 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.
1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliations.
4
About SmartFinancial, Inc.
SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with branches across Tennessee, Alabama, and Florida and loan production offices in Tennessee and Georgia. 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
Nathan Strall
President & Chief Executive Officer
Vice President and Director of Strategy & Corporate Development
Email: [email protected]
Email: [email protected]
Phone: (865) 868-0613
Phone: (865) 868-2604
5
Non-GAAP Financial Measures
Statements included in this earnings release include measures not recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered Non-GAAP financial measures (“Non-GAAP”) and should be read along with the accompanying tables, which provide a reconciliation of Non-GAAP financial measures to GAAP financial measures. SmartFinancial management uses several Non-GAAP financial measures and ratios derived therefrom in its analysis of the Company's performance, including:
(1)
Operating earnings
(11)
Operating return on average assets
(2)
Operating revenue
(12)
Operating PPNR return on average assets
(3)
Operating noninterest income
(13)
Operating return on average shareholders’ equity
(4)
Operating noninterest expense
(14)
Return on average tangible common equity
(5)
Operating pre-provision net revenue (“PPNR”) earnings
(15)
Operating return on average tangible common equity
(6)
Tangible common equity
(16)
Operating noninterest income/average assets
(7)
Average tangible common equity
(17)
Operating noninterest expense/average assets
(8)
Tangible book value per common share
(18)
Tangible common equity to tangible assets
(9)
Tangible assets
(19)
Operating earnings per common share
(10)
Operating efficiency ratio
A detailed reconciliation and definition of these items and the ratios derived therefrom is available in the Non-GAAP reconciliations.
Management believes that Non-GAAP financial measures provide additional useful information that allows investors to evaluate the ongoing performance of the Company and provide meaningful comparisons to its peers. Management also believes these Non-GAAP financial measures enhance investors' ability to compare period-to-period financial results and allow investors and Company management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.
Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider SmartFinancial's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.
6
Forward-Looking Statements
This news release may contain statements that are based on management’s current estimates or expectations of future events or future results, and that may be deemed to constitute forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements are not historical in nature and can generally be identified by such words as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “may,” “estimate,” and similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results of SmartFinancial to differ materially from future results expressed or implied by such forward-looking statements. Such risks, uncertainties, and other factors include, among others,
(1)risks associated with our growth strategy, including a failure to implement our growth plans or an inability to manage our growth effectively;
(2)claims and litigation arising from our business activities and from the companies we acquire, which may relate to contractual issues, environmental laws, fiduciary responsibility, and other matters;
(3)general risks related to our disposition, merger and acquisition activity, including risks associated with our pursuit of future acquisitions or sales;
(4)changes in management’s plans for the future;
(5)prevailing, or changes in, economic or political conditions (including those resulting from the current administration and Congress), particularly in our market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing;
(6)our ability to anticipate interest rate changes and manage interest rate risk (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business and the impact of interest rate fluctuations on our financial projections, models and guidance);
(7)tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services);
(8)uncertain duration of trade conflicts and the magnitude of the impact that proposed tariffs may have on our customers’ businesses;
(9)increased technology and cybersecurity risks, including generative artificial intelligence risks;
(10)the impact of a failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting us and our customers;
(11)credit risk associated with our lending activities;
(12)changes in loan demand, real estate values, or competition;
(13)developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance;
(14)changes in accounting principles, policies, or guidelines;
(15)changes in applicable laws, rules, or regulations;
(16)adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions;
(17)potential impacts of any adverse developments in the banking industry, including the impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto;
(18)significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities;
(19)the effects of war or other conflicts;
(20)the impact of government actions or inactions, including a prolonged shutdown of the federal government; and
(21)other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services.
These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in SmartFinancial’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, in each case filed with or furnished to the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website (www.sec.gov). Undue reliance should not be placed on forward-looking statements. SmartFinancial disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events, or otherwise.
7
SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
Ending Balances
Jun
Mar
Dec
Sep
Jun
2026
2026
2025
2025
2025
Assets:
Cash and cash equivalents
$
379,387
$
346,071
$
464,417
$
557,127
$
365,096
Securities available-for-sale, at fair value
560,065
552,083
539,882
511,095
502,150
Securities held-to-maturity, at amortized cost
119,848
120,968
122,121
123,364
124,520
Other investments
17,529
16,597
16,441
14,888
14,713
Loans held for sale
9,628
7,277
10,865
9,855
5,484
Loans and leases
4,682,935
4,518,391
4,363,582
4,222,369
4,124,062
Less: Allowance for credit losses
(45,252)
(43,950)
(40,906)
(39,074)
(39,776)
Loans and leases, net
4,637,683
4,474,441
4,322,676
4,183,295
4,084,286
Premises and equipment, net
93,314
93,360
88,387
89,250
90,204
Other real estate owned
—
—
—
—
144
Goodwill and other intangibles, net
94,417
94,871
95,328
95,807
103,588
Bank owned life insurance
121,353
120,438
119,525
118,610
117,697
Other assets
82,082
81,579
81,168
81,692
82,981
Total assets
$
6,115,306
$
5,907,685
$
5,860,810
$
5,784,983
$
5,490,863
Liabilities:
Deposits:
Noninterest-bearing demand
$
921,876
$
951,366
$
1,062,918
$
931,477
$
906,965
Interest-bearing demand
1,022,074
954,292
945,716
929,454
843,820
Money market and savings
2,454,805
2,455,945
2,273,612
2,218,313
2,124,623
Time deposits
986,795
834,633
870,543
971,653
996,712
Total deposits
5,385,550
5,196,236
5,152,789
5,050,897
4,872,120
Borrowings
603
3,178
3,009
1,301
6,966
Subordinated debt
98,805
98,733
98,662
138,604
39,726
Other liabilities
53,424
47,377
53,858
55,699
52,924
Total liabilities
5,538,382
5,345,524
5,308,318
5,246,501
4,971,736
Shareholders' Equity:
Common stock
17,098
17,098
17,029
17,028
17,018
Additional paid-in capital
296,841
296,284
295,950
295,742
295,209
Retained earnings
275,813
261,032
248,719
236,380
224,061
Accumulated other comprehensive loss
(12,941)
(12,366)
(9,319)
(10,781)
(17,274)
Total shareholders' equity attributable to SmartFinancial Inc. and Subsidiary
576,811
562,048
552,379
538,369
519,014
Non-controlling interest - preferred stock of subsidiary
113
113
113
113
113
Total shareholders' equity
576,924
562,161
552,492
538,482
519,127
Total liabilities & shareholders' equity
$
6,115,306
$
5,907,685
$
5,860,810
$
5,784,983
$
5,490,863
8
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
2026
2026
2025
2025
2025
2026
2025
Interest income:
Loans and leases, including fees
$
69,546
$
65,638
$
65,573
$
64,282
$
61,049
$
135,185
$
118,811
Investment securities:
Taxable
5,722
5,492
5,662
4,876
4,848
11,213
9,623
Tax-exempt
565
555
536
441
395
1,121
749
Federal funds sold and other earning assets
2,209
2,585
3,854
4,919
3,161
4,793
6,647
Total interest income
78,042
74,270
75,625
74,518
69,453
152,312
135,830
Interest expense:
Deposits
27,723
26,529
28,646
30,464
28,301
54,252
55,636
Borrowings
371
1
1
14
70
371
140
Subordinated debt
1,884
1,864
1,884
1,610
739
3,748
1,472
Total interest expense
29,978
28,394
30,531
32,088
29,110
58,371
57,248
Net interest income
48,064
45,876
45,094
42,430
40,343
93,941
78,582
Provision for credit losses
1,463
4,139
4,132
227
2,411
5,602
3,391
Net interest income after provision for credit losses
46,601
41,737
40,962
42,203
37,932
88,339
75,191
Noninterest income:
Service charges on deposit accounts
1,881
1,853
1,828
1,831
1,766
3,734
3,502
Gain (loss) on sale of securities, net
54
1
—
(3,715)
(4)
55
(4)
Mortgage banking
916
760
837
709
633
1,676
1,126
Investment services
1,724
1,796
1,683
1,690
1,440
3,520
3,209
Insurance commissions
—
—
—
1,049
1,554
—
2,967
Interchange and debit card transaction fees
1,676
1,418
1,375
1,338
1,342
3,094
2,562
Gain on sale of SBK Insurance ("SBKI")
—
—
—
3,955
—
—
—
Other
1,635
2,113
2,496
1,780
2,167
3,748
4,133
Total noninterest income
7,886
7,941
8,219
8,637
8,898
15,827
17,495
Noninterest expense:
Salaries and employee benefits
21,015
20,414
19,917
19,544
19,602
41,429
38,836
Occupancy and equipment
3,351
3,344
3,388
3,468
3,432
6,696
6,829
FDIC insurance
920
750
1,025
1,025
992
1,670
1,952
Other real estate and loan related expense
806
792
858
969
757
1,597
1,415
Advertising and marketing
408
387
393
454
390
795
772
Data processing and technology
2,683
2,436
2,413
2,594
2,651
5,119
5,309
Professional services
1,366
1,193
1,132
1,123
1,153
2,559
2,521
Amortization of intangibles
454
457
479
536
566
911
1,135
Restructuring expenses
—
—
16
1,310
—
—
—
Other
2,952
3,142
2,850
2,846
3,026
6,095
6,097
Total noninterest expense
33,955
32,915
32,471
33,869
32,569
66,871
64,866
Income before income taxes
20,532
16,763
16,710
16,971
14,261
37,295
27,820
Income tax expense
4,210
3,083
3,007
3,285
2,556
7,293
4,861
Net income
$
16,322
$
13,680
$
13,703
$
13,686
$
11,705
$
30,002
$
22,959
Earnings per common share:
Basic
$
0.97
$
0.81
$
0.82
$
0.82
$
0.70
$
1.78
$
1.37
Diluted
$
0.96
$
0.81
$
0.81
$
0.81
$
0.69
$
1.77
$
1.36
Weighted average common shares outstanding:
Basic
16,824,053
16,821,486
16,788,065
16,781,236
16,778,988
16,822,777
16,773,293
Diluted
16,961,750
16,935,530
16,922,482
16,908,920
16,878,736
16,958,496
16,875,608
9
SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
YIELD ANALYSIS
Three Months Ended
June 30, 2026
March 31, 2026
June 30, 2025
Average
Yield/
Average
Yield/
Average
Yield/
Balance
Interest
Cost
Balance
Interest
Cost
Balance
Interest
Cost
Assets:
Loans and leases, including fees1
$
4,610,444
$
69,740
6.07
%
$
4,434,181
$
65,855
6.02
%
$
4,050,485
$
61,294
6.07
%
Taxable securities
595,018
5,722
3.86
%
584,608
5,492
3.81
%
562,660
4,848
3.46
%
Tax-exempt securities2
79,820
715
3.59
%
80,535
703
3.54
%
66,223
500
3.03
%
Federal funds sold and other earning assets
232,257
2,209
3.81
%
286,539
2,585
3.66
%
275,647
3,161
4.60
%
Total interest-earning assets
5,517,539
78,386
5.70
%
5,385,863
74,635
5.62
%
4,955,015
69,803
5.65
%
Noninterest-earning assets
421,371
397,680
405,804
Total assets
$
5,938,910
$
5,783,543
$
5,360,819
Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits
$
954,455
3,960
1.66
%
$
955,450
3,931
1.67
%
$
835,394
3,785
1.82
%
Money market and savings deposits
2,388,259
15,982
2.68
%
2,337,523
15,236
2.64
%
2,104,236
15,762
3.00
%
Time deposits
907,250
7,781
3.44
%
841,515
7,362
3.55
%
914,658
8,754
3.84
%
Total interest-bearing deposits
4,249,964
27,723
2.62
%
4,134,488
26,529
2.60
%
3,854,288
28,301
2.95
%
Borrowings
41,272
371
3.61
%
3,549
1
0.11
%
7,783
70
3.61
%
Subordinated debt
98,761
1,884
7.65
%
98,692
1,864
7.66
%
39,714
739
7.46
%
Total interest-bearing liabilities
4,389,997
29,978
2.74
%
4,236,729
28,394
2.72
%
3,901,785
29,110
2.99
%
Noninterest-bearing deposits
923,887
931,863
898,428
Other liabilities
53,677
54,603
49,539
Total liabilities
5,367,561
5,223,195
4,849,752
Shareholders' equity
571,349
560,348
511,067
Total liabilities and shareholders' equity
$
5,938,910
$
5,783,543
$
5,360,819
Net interest income, taxable equivalent
$
48,408
$
46,241
$
40,693
Interest rate spread
2.96
%
2.90
%
2.66
%
Tax equivalent net interest margin
3.52
%
3.48
%
3.29
%
Percentage of average interest-earning assets to average interest-bearing liabilities
125.68
%
127.12
%
126.99
%
Percentage of average equity to average assets
9.62
%
9.69
%
9.53
%
1 Yields computed on tax-exempt loans on a tax equivalent basis include $194 thousand, $218 thousand, and $245 thousand of taxable equivalent income for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively.
2 Yields computed on tax-exempt instruments on a tax equivalent basis include $150 thousand, $148 thousand, and $105 thousand of taxable equivalent income for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively.
10
SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
YIELD ANALYSIS
Six Months Ended
June 30, 2026
June 30, 2025
Average
Yield/
Average
Yield/
Balance
Interest
Cost
Balance
Interest
Cost
Assets:
Loans and leases, including fees1
$
4,522,799
$
135,596
6.05
%
$
3,996,192
$
119,302
6.02
%
Taxable securities
589,843
11,213
3.83
%
559,306
9,623
3.47
%
Tax-exempt securities2
80,176
1,418
3.57
%
64,663
948
2.96
%
Federal funds sold and other earning assets
259,248
4,794
3.73
%
291,219
6,647
4.60
%
Total interest-earning assets
5,452,066
153,021
5.66
%
4,911,380
136,520
5.61
%
Noninterest-earning assets
409,589
405,832
Total assets
$
5,861,655
$
5,317,212
Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits
$
954,950
7,891
1.67
%
$
841,077
7,528
1.80
%
Money market and savings deposits
2,363,031
31,218
2.66
%
2,084,296
30,826
2.98
%
Time deposits
874,564
15,143
3.49
%
897,889
17,282
3.88
%
Total interest-bearing deposits
4,192,545
54,252
2.61
%
3,823,262
55,636
2.93
%
Borrowings
22,515
371
3.32
%
8,000
140
3.53
%
Subordinated debt
98,727
3,748
7.66
%
39,703
1,472
7.48
%
Total interest-bearing liabilities
4,313,787
58,371
2.73
%
3,870,965
57,248
2.98
%
Noninterest-bearing deposits
927,853
891,293
Other liabilities
54,136
50,394
Total liabilities
5,295,776
4,812,652
Shareholders' equity
565,879
504,560
Total liabilities and shareholders' equity
$
5,861,655
$
5,317,212
Net interest income, taxable equivalent
$
94,650
$
79,272
Interest rate spread
2.93
%
2.62
%
Tax equivalent net interest margin
3.50
%
3.25
%
Percentage of average interest-earning assets to average interest-bearing liabilities
126.39
%
126.88
%
Percentage of average equity to average assets
9.65
%
9.49
%
1 Yields computed on tax-exempt loans on a tax equivalent basis include $412 thousand and $491 thousand of taxable equivalent income for the six months ended June 30, 2026, and June 30, 2025, respectively.
2 Yields computed on tax-exempt instruments on a tax equivalent basis include $298 thousand and $199 thousand of taxable equivalent income for the six months ended June 30, 2026, and June 30, 2025, respectively.
11
SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
As of and for The Three Months Ended
Jun
Mar
Dec
Sep
Jun
2026
2026
2025
2025
2025
Composition of Loans and Leases:
Commercial real estate:
Non-owner occupied
$
1,288,115
$
1,263,455
$
1,196,758
$
1,136,080
$
1,114,133
Owner occupied
1,080,959
1,033,211
1,022,871
1,012,088
958,989
Commercial real estate, total
2,369,074
2,296,666
2,219,629
2,148,168
2,073,122
Consumer real estate
881,640
851,484
834,626
811,150
803,270
Construction & land development
516,164
478,301
419,176
390,691
391,155
Commercial & industrial
842,849
819,875
817,595
794,751
778,754
Leases
52,411
54,296
55,422
60,301
62,495
Consumer and other
20,797
17,769
17,134
17,308
15,266
Total loans and leases
$
4,682,935
$
4,518,391
$
4,363,582
$
4,222,369
$
4,124,062
Asset Quality and Additional Loan Data:
Nonperforming loans and leases
$
11,474
$
12,257
$
9,442
$
10,099
$
7,921
Other real estate owned
—
—
—
—
144
Other repossessed assets
2,754
2,798
3,248
2,444
2,397
Total nonperforming assets
$
14,228
$
15,055
$
12,690
$
12,543
$
10,462
Modified loans and leases1 not included in nonperforming loans and leases
$
349
$
208
$
219
$
1,783
$
1,660
Net charge-offs to average loans and leases (annualized)
0.05
%
0.02
%
0.18
%
0.10
%
0.01
%
Allowance for credit losses to total loans and leases
0.97
%
0.97
%
0.94
%
0.93
%
0.96
%
Nonperforming loans and leases to total loans and leases
0.25
%
0.27
%
0.22
%
0.24
%
0.19
%
Nonperforming assets to total assets
0.23
%
0.25
%
0.22
%
0.22
%
0.19
%
Capital Ratios:
Equity to Assets
9.43
%
9.52
%
9.43
%
9.31
%
9.45
%
Tangible common equity to tangible assets (Non-GAAP)2
8.01
%
8.04
%
7.93
%
7.78
%
7.71
%
SmartFinancial, Inc.3
Tier 1 leverage
8.47
%
8.41
%
8.30
%
8.21
%
8.25
%
Common equity Tier 1
9.77
%
9.77
%
9.83
%
9.85
%
9.67
%
Tier 1 capital
9.77
%
9.77
%
9.83
%
9.85
%
9.67
%
Total capital
12.64
%
12.72
%
12.71
%
13.31
%
11.04
%
SmartBank3
Tier 1 leverage
9.86
%
9.88
%
9.71
%
9.59
%
8.88
%
Common equity Tier 1
11.38
%
11.47
%
11.51
%
11.56
%
10.41
%
Tier 1 capital
11.38
%
11.47
%
11.51
%
11.56
%
10.41
%
Total capital
12.30
%
12.41
%
12.32
%
12.37
%
11.25
%
1Borrowers that have experienced financial difficulty. Effective as of December 31, 2025, the Call Report instructions were changed for institutions to report loan modifications to borrowers experiencing financial difficulty for a 12-month period after the modification. This change is reflected in the December 31, 2025, information and going forward.
2Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures.
3 Current period capital ratios are estimated as of the date of this earnings release.
12
SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands except share and per share data)
As of and for The
As of and for The
Three Months Ended
Six Months Ended
Jun
Mar
Dec
Sep
Jun
Jun
Jun
2026
2026
2025
2025
2025
2026
2025
Selected Performance Ratios (Annualized):
Return on average assets
1.10
%
0.96
%
0.95
%
0.96
%
0.88
%
1.03
%
0.87
%
Return on average shareholders' equity
11.46
%
9.90
%
9.95
%
10.33
%
9.19
%
10.69
%
9.18
%
Return on average tangible common equity¹
13.74
%
11.93
%
12.06
%
12.79
%
11.53
%
12.85
%
11.56
%
Noninterest income / average assets
0.53
%
0.56
%
0.57
%
0.61
%
0.67
%
0.54
%
0.66
%
Noninterest expense / average assets
2.29
%
2.31
%
2.24
%
2.38
%
2.44
%
2.30
%
2.46
%
Efficiency ratio
60.69
%
61.16
%
60.91
%
66.32
%
66.14
%
60.92
%
67.51
%
Operating Selected Performance Ratios (Annualized):
Operating return on average assets1
1.10
%
0.96
%
0.95
%
1.02
%
0.88
%
1.03
%
0.87
%
Operating PPNR return on average assets1
1.48
%
1.47
%
1.44
%
1.29
%
1.25
%
1.47
%
1.18
%
Operating return on average shareholders' equity1
11.43
%
9.90
%
9.96
%
10.92
%
9.19
%
10.68
%
9.18
%
Operating return on average tangible common equity1
13.70
%
11.93
%
12.07
%
13.53
%
11.53
%
12.83
%
11.57
%
Operating efficiency ratio1
60.38
%
60.75
%
60.45
%
63.61
%
65.66
%
60.56
%
67.02
%
Operating noninterest income / average assets1
0.53
%
0.56
%
0.57
%
0.59
%
0.67
%
0.54
%
0.66
%
Operating noninterest expense / average assets1
2.29
%
2.31
%
2.24
%
2.29
%
2.44
%
2.30
%
2.46
%
Selected Interest Rates and Yields:
Yield on loans and leases, excluding loan fees, FTE
5.95
%
5.93
%
6.00
%
6.05
%
5.99
%
5.94
%
5.94
%
Yield on loans and leases, FTE
6.07
%
6.02
%
6.08
%
6.14
%
6.07
%
6.05
%
6.02
%
Yield on earning assets, FTE
5.70
%
5.62
%
5.65
%
5.68
%
5.65
%
5.66
%
5.61
%
Cost of interest-bearing deposits
2.62
%
2.60
%
2.79
%
2.98
%
2.95
%
2.61
%
2.93
%
Cost of total deposits
2.15
%
2.12
%
2.26
%
2.44
%
2.39
%
2.14
%
2.38
%
Cost of interest-bearing liabilities
2.74
%
2.72
%
2.90
%
3.07
%
2.99
%
2.73
%
2.98
%
Net interest margin, FTE
3.52
%
3.48
%
3.38
%
3.25
%
3.29
%
3.50
%
3.25
%
Per Common Share:
Net income, basic
$
0.97
$
0.81
$
0.82
$
0.82
$
0.70
$
1.78
$
1.37
Net income, diluted
0.96
0.81
0.81
0.81
0.69
1.77
1.36
Operating earnings, basic¹
0.97
0.81
0.82
0.86
0.70
1.78
1.37
Operating earnings, diluted¹
0.96
0.81
0.81
0.86
0.69
1.77
1.36
Book value per common share
33.74
32.88
32.44
31.62
30.51
33.74
30.51
Tangible book value per common share¹
28.22
27.33
26.85
26.00
24.42
28.22
24.42
Common shares outstanding
17,098,473
17,098,473
17,029,317
17,028,001
17,017,547
17,098,473
17,017,547
¹Non-GAAP measure. See reconciliation of Non-GAAP measures.
13
SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
NON-GAAP RECONCILIATIONS
Three Months Ended
Six Months Ended
Jun
Mar
Dec
Sep
Jun
Jun
Jun
2026
2026
2025
2025
2025
2026
2025
Operating Earnings:
Net income (GAAP)
$
16,322
$
13,680
$
13,703
$
13,686
$
11,705
$
30,002
$
22,959
Noninterest income:
Securities (gains) losses, net
(54)
(1)
—
3,715
4
(55)
4
Gain on sale of SBKI
—
—
—
(3,955)
—
—
—
Noninterest expenses:
Restructuring expenses
—
—
16
1,310
—
—
—
Income taxes:
Income tax effect of adjustments
14
—
(4)
(276)
(1)
14
(1)
Operating earnings (Non-GAAP)
$
16,282
$
13,679
$
13,715
$
14,480
$
11,708
$
29,961
$
22,962
Operating earnings per common share (Non-GAAP):
Basic
$
0.97
$
0.81
$
0.82
$
0.86
$
0.70
$
1.78
$
1.37
Diluted
0.96
0.81
0.81
0.86
0.69
1.77
1.36
Operating Noninterest Income:
Noninterest income (GAAP)
$
7,886
$
7,941
$
8,219
$
8,637
$
8,898
$
15,827
$
17,495
Securities (gains) losses, net
(54)
(1)
—
3,715
4
(55)
4
Gain on sale of SBKI
—
—
—
(3,955)
—
—
—
Operating noninterest income (Non-GAAP)
$
7,832
$
7,940
$
8,219
$
8,397
$
8,902
$
15,772
$
17,499
Operating noninterest income (Non-GAAP)/average assets1
0.53
%
0.56
%
0.57
%
0.59
%
0.67
%
0.54
%
0.66
%
Operating Noninterest Expense:
Noninterest expense (GAAP)
$
33,955
$
32,915
$
32,471
$
33,869
$
32,569
$
66,871
$
64,866
Restructuring expenses
—
—
(16)
(1,310)
—
—
—
Operating noninterest expense (Non-GAAP)
$
33,955
$
32,915
$
32,455
$
32,559
$
32,569
$
66,871
$
64,866
Operating noninterest expense (Non-GAAP)/average assets2
2.29
%
2.31
%
2.24
%
2.29
%
2.44
%
2.30
%
2.46
%
Operating Pre-provision Net revenue ("PPNR") Earnings:
Net interest income (GAAP)
$
48,064
$
45,876
$
45,094
$
42,430
$
40,343
$
93,941
$
78,582
Operating noninterest income (Non-GAAP)
7,832
7,940
8,219
8,397
8,902
15,772
17,499
Operating noninterest expense (Non-GAAP)
(33,955)
(32,915)
(32,455)
(32,559)
(32,569)
(66,871)
(64,866)
Operating PPNR earnings (Non-GAAP)
$
21,941
$
20,901
$
20,858
$
18,268
$
16,676
$
42,842
$
31,215
Non-GAAP Return Ratios: