SmartFinancial (SMBK) Q4 2025 earnings summary

Executive summary

• Achieved record annual operating earnings of over $51 million and $13.7 million for Q4 2025, with EPS of $0.81 per diluted share and $3.03 for 2025, up 46% from 2024.

• Tangible book value per share rose to $26.85, up 13% annualized quarter over quarter and 17%-18% for the year.

• Delivered seventh consecutive quarter of positive operating leverage and strong organic growth in loans and deposits, with 13% annualized loan growth and 8% annualized deposit growth in Q4.

• Operating revenue grew 12% year-over-year to $200.2M, with noninterest income up 8% to $34.1M.

• Announced expansion into Columbus, Georgia, leveraging existing relationships and market disruption.

Financial highlights

• Net interest income for Q4 2025 was $45.1M, up 6% sequentially and 19% year-over-year; net interest margin increased to 3.38% in Q4.

• Pre-provision net revenue for Q4 was $20.9M, with operating PPNR for 2025 at $70.3M, a 22% CAGR since 2023.

• Loans grew 13% annualized quarter over quarter; deposits up 8% annualized, with core deposit balances up 14% for the year.

• Non-performing assets remained low at 0.22% of total assets; net charge-offs to average loans at 8 basis points for 2025.

• Operating efficiency ratio improved to 60.91% in Q4 and 64.4% for 2025, down from 70.7% in 2024.

Outlook and guidance

• Targeting high single-digit loan growth (8%-9%) for 2026, with some quarters potentially exceeding 10%.

• Non-interest expenses expected to grow about 5% year-over-year, staying within $34.5M-$35M.

• Net interest margin expected to gradually rise to 3.5% by year-end 2026, assuming stable rates.

• Internal goal set to achieve a $4 EPS run rate by end of 2026 ($1 per quarter in Q4).

• Management expects continued EPS and tangible book value growth, leveraging infrastructure investments and focusing on commercial banking expansion.