SmartFinancial (SMBK) investor relations material

Executive summary

• Achieved $14.5 million in operating earnings ($0.86 per diluted share), up 24% sequentially and 58% year-over-year, with $50.8 million in total operating revenue, surpassing the $50 million quarterly revenue target ahead of schedule.

• Tangible book value per share increased to $26.00, up over 26% annualized quarter-over-quarter and 15% year-over-year; book value per share rose to $31.62.

• Sixth consecutive quarter of positive operating leverage, with strong organic growth in both loans and deposits.

• Completed $4.0 million gain on sale of SBK Insurance, contributing to noninterest income and unlocking capital for future investments.

• Continued focus on organic growth, talent acquisition, operational efficiency, and a strong culture recognized by Fortune's best workplaces.

Financial highlights

• Net interest income was $42.4 million, up 5% sequentially and 21% year-over-year; net interest margin (tax equivalent) was 3.25%, down 4 bps from the prior quarter.

• Loans grew at a 10% annualized rate and deposits at 15% annualized, with non-brokered deposits up $283 million (24% annualized).

• Non-performing assets at 0.22% of total assets; net charge-offs to average loans at 10 bps annualized.

• Allowance for credit losses at 0.93% of total loans.

• Operating efficiency ratio improved to 63.6% from 65.7% in the prior quarter.

Outlook and guidance

• Projecting Q4 net interest margin in the 3.3%-3.35% range, with margin expansion of 5-7 bps per quarter expected in 2026.

• Non-interest income for Q4 expected at $7 million; non-interest expenses projected at $32.5-$33 million.

• Loan growth guidance remains at high single digits to around 10% annualized.

• Strategic actions, including the SBKI sale and debt issuance, are expected to support future growth.

• Continued focus on positive operating leverage and expense containment, with 2026 non-interest expenses targeted at $34-$35 million.