SmartFinancial (SMBK) investor relations material

Executive summary

• Net income for Q2 2026 was $16.3 million ($0.96 per diluted share), up 19% from Q1 2026 and 39% year-over-year, with operating earnings matching net income.

• Achieved 15% annualized organic loan and lease growth and 6% core deposit growth quarter-over-quarter, with total assets surpassing $6 billion.

• Tangible book value per share rose to $28.22, up from $26.86 at year-end and 13% annualized quarter-over-quarter.

• Maintained a positive outlook, emphasizing organic growth, talent acquisition, and market share gains in the Southeast.

• Recognized as a Great Place to Work in 2026, with over 97% employee satisfaction.

Financial highlights

• Net interest income was $48.1 million, up $2.2 million sequentially and 19% year-over-year; net interest margin expanded to 3.52%.

• Noninterest income was $7.9 million, stable sequentially but down year-over-year due to the sale of SBKI.

• Noninterest expense increased to $34.0 million, mainly from higher salaries, FDIC insurance, and technology costs.

• Efficiency ratio improved to 60.4%–60.69%, remaining in the low 60% range.

• Provision for credit losses decreased by $0.9 million in Q2 2026.

Outlook and guidance

• Management expects continued organic loan and deposit growth, with a focus on maintaining strong asset quality and capital ratios.

• Forecast Q3 net interest margin to be around 3.45% due to deposit cost pressure.

• Non-interest income expected at ~$8 million and non-interest expense at $34.5–$35 million for Q3.

• Salary and benefit expenses projected at $21–$21.5 million, reflecting production and new hires.

• Effective tax rate expected to be 19.5% going forward.