SmartFinancial Announces Results for the Second Quarter 2024
SmartFinancial (NYSE: SMBK) reported Q2 2024 net income of $8.0 million, or $0.48 per diluted share, compared to $8.8 million, or $0.52 per share in Q2 2023. Operating earnings were $7.8 million, or $0.46 per diluted share. Key highlights include:
- Net organic loan and lease growth of $97 million, an 11% annualized increase
- Net interest margin expansion of 12 basis points to 2.97%
- 10% annualized increase in tangible book value per share
- 136,195 shares repurchased at an average price of $21.57
- Nonperforming assets to total assets ratio of 0.20%
The company experienced solid growth in operating revenue and improved margin inflection. Total assets reached $4.89 billion, with loans and leases increasing by $129.7 million to $3.57 billion. Deposits grew by $48.8 million to $4.32 billion.
SmartFinancial (NYSE: SMBK) ha riportato un reddito netto di 8,0 milioni di dollari nel secondo trimestre del 2024, pari a 0,48 dollari per azione diluita, rispetto a 8,8 milioni di dollari, o 0,52 dollari per azione nel secondo trimestre del 2023. Gli utili operativi sono stati di 7,8 milioni di dollari, pari a 0,46 dollari per azione diluita. I punti salienti includono:
- Crescita netta organica di prestiti e leasing di 97 milioni di dollari, con un incremento annualizzato dell'11%
- Espansione del margine di interesse netto di 12 punti base al 2,97%
- Incremento annualizzato del 10% nel valore contabile tangibile per azione
- Riacquisto di 136.195 azioni a un prezzo medio di 21,57 dollari
- Rapporto di attività non performanti su attività totali dello 0,20%
L'azienda ha registrato una solida crescita dei ricavi operativi e un miglioramento dell'inflessione del margine. Le attività totali hanno raggiunto 4,89 miliardi di dollari, con prestiti e leasing aumentati di 129,7 milioni di dollari fino a 3,57 miliardi di dollari. I depositi sono cresciuti di 48,8 milioni di dollari, raggiungendo 4,32 miliardi di dollari.
SmartFinancial (NYSE: SMBK) reportó un ingreso neto de 8.0 millones de dólares en el segundo trimestre de 2024, o 0.48 dólares por acción diluida, en comparación con 8.8 millones de dólares, o 0.52 dólares por acción en el segundo trimestre de 2023. Las ganancias operativas fueron de 7.8 millones de dólares, o 0.46 dólares por acción diluida. Los aspectos destacados incluyen:
- Crecimiento neto orgánico de préstamos y arrendamientos de 97 millones de dólares, un incremento anualizado del 11%
- Expansión del margen de interés neto de 12 puntos básicos al 2.97%
- Aumento anualizado del 10% en el valor contable tangible por acción
- Recompra de 136,195 acciones a un precio promedio de 21.57 dólares
- Relación de activos no productivos sobre activos totales del 0.20%
La empresa experimentó un sólido crecimiento en los ingresos operativos y una mejora en la inflexión del margen. Los activos totales alcanzaron 4.89 mil millones de dólares, con préstamos y arrendamientos en aumento de 129.7 millones de dólares hasta 3.57 mil millones de dólares. Los depósitos crecieron en 48.8 millones de dólares, alcanzando 4.32 mil millones de dólares.
SmartFinancial (NYSE: SMBK)는 2024년 2분기에 순이익 800만 달러, 즉 희석 주당 0.48달러를 보고했으며, 이는 2023년 2분기의 880만 달러, 즉 주당 0.52달러와 비교됩니다. 운영 수익은 780만 달러, 즉 희석 주당 0.46달러였습니다. 주요 내용은 다음과 같습니다:
- 순수 유기적 대출 및 리스 성장 9,700만 달러, 연간 11% 증가
- 순이자 마진 12bp 확장하여 2.97% 도달
- 주당 유형 자본 증가율 10%
- 평균 가격 21.57달러로 136,195주 재매입
- 비수익 자산과 총 자산의 비율 0.20%
회사는 운영 수익에서 견고한 성장과 마진 개선을 경험했습니다. 총 자산은 48.9억 달러에 도달했으며, 대출 및 리스는 1억 2,970만 달러 증가하여 35.7억 달러에 달했습니다. 예금은 4,880만 달러 증가하여 43.2억 달러에 도달했습니다.
SmartFinancial (NYSE: SMBK) a déclaré un bénéfice net de 8,0 millions de dollars au deuxième trimestre 2024, soit 0,48 dollar par action diluée, contre 8,8 millions de dollars, soit 0,52 dollar par action au deuxième trimestre 2023. Les bénéfices d'exploitation étaient de 7,8 millions de dollars, soit 0,46 dollar par action diluée. Les points forts incluent :
- Croissance nette organique des prêts et des baux de 97 millions de dollars, soit une augmentation annualisée de 11%
- Expansion de la marge d'intérêt net de 12 points de base, atteignant 2,97%
- Augmentation annualisée de 10% de la valeur comptable tangible par action
- Rachat de 136 195 actions à un prix moyen de 21,57 dollars
- Ratio des actifs non performants sur les actifs totaux de 0,20%
L'entreprise a connu une solide croissance des revenus d'exploitation et une amélioration de l'inflexion de la marge. Les actifs totaux ont atteint 4,89 milliards de dollars, avec des prêts et des baux en hausse de 129,7 millions de dollars pour atteindre 3,57 milliards de dollars. Les dépôts ont augmenté de 48,8 millions de dollars pour atteindre 4,32 milliards de dollars.
SmartFinancial (NYSE: SMBK) meldete für das zweite Quartal 2024 einen Nettogewinn von 8,0 Millionen USD, was 0,48 USD pro verwässerter Aktie entspricht, im Vergleich zu 8,8 Millionen USD, oder 0,52 USD pro Aktie im zweiten Quartal 2023. Die Betriebseinnahmen betrugen 7,8 Millionen USD, oder 0,46 USD pro verwässerter Aktie. Zu den wichtigsten Punkten gehören:
- Organisches Nettowachstum bei Krediten und Leasing in Höhe von 97 Millionen USD, ein annualisierter Anstieg von 11%
- Expansion der Nettozinsspanne um 12 Basispunkte auf 2,97%
- Annualisierter Anstieg des Buchwerts pro Aktie um 10%
- Rückkauf von 136.195 Aktien zu einem Durchschnittspreis von 21,57 USD
- Verhältnis von notleidenden Vermögenswerten zu Gesamtvermögen von 0,20%
Das Unternehmen verzeichnete ein solides Wachstum der Betriebseinnahmen und eine Verbesserung des Margenverlaufs. Die Gesamtsumme der Vermögenswerte erreichte 4,89 Milliarden USD, während die Kredite und Leasing um 129,7 Millionen USD auf 3,57 Milliarden USD stiegen. Die Einlagen erhöhten sich um 48,8 Millionen USD auf 4,32 Milliarden USD.
- Net organic loan and lease growth of $97 million, representing an 11% annualized increase
- Net interest margin expansion of 12 basis points to 2.97%
- 10% annualized increase in tangible book value per share
- Total assets increased to $4.89 billion, up $61.6 million from December 2023
- Loans and leases grew by $129.7 million to $3.57 billion
- Deposits increased by $48.8 million to $4.32 billion
- Net income decreased to $8.0 million from $8.8 million in Q2 2023
- Operating earnings declined to $7.8 million from $8.8 million in Q2 2023
- Earnings per diluted share decreased to $0.48 from $0.52 in Q2 2023
- Noninterest income decreased by $776,000 compared to the previous quarter
- Noninterest expense increased by $648,000 compared to the previous quarter
Insights
The financial results for SmartFinancial's second quarter of 2024 show a slight decline in net income compared to both the same quarter last year and the prior quarter. The decrease in net income from $8.8 million to $8.0 million and the corresponding reduction in earnings per share from $0.52 to $0.48 may initially concern investors. However, it's important to note the company's solid performance in key areas that suggest underlying strength.
Despite the decline in net income, SmartFinancial reported a 11% annualized quarter-over-quarter increase in organic loan and lease growth, demonstrating robust demand and effective loan origination strategies. The net interest margin also expanded by 12 basis points to 2.97%, reflecting an improved yield on interest-earning assets and a controlled rise in interest-bearing liabilities costs.
The reported figures indicate strong operational performance, with a notable 10% annualized increase in tangible book value per share. This metric is critical as it provides insight into the company's value creation over time, which is a positive signal for long-term investors.
While there are modest increases in cost metrics, such as a 7 basis point rise in the cost of interest-bearing deposits, SmartFinancial has effectively managed expenses, as seen in their noninterest expense figures. Overall, the company's strategic focus on revenue growth and expense control seems to be yielding positive results, balancing short-term profitability with long-term value creation.
SmartFinancial's latest quarterly results reflect a period of robust operational activity and strategic growth. The 11% quarter-over-quarter increase in loan and lease growth is particularly noteworthy, indicating the company's ability to capture market opportunities and expand its lending portfolio effectively. This growth aligns with the management’s bullish outlook for the second half of the year, suggesting confidence in the company's strategy and market position.
The expansion in the net interest margin by 12 basis points to 2.97% is another significant highlight. This improvement showcases SmartFinancial's ability to enhance profitability from its interest-earning assets while maintaining a relatively stable cost of interest-bearing liabilities. This margin expansion is critical in times of varying interest rate environments, as it demonstrates the company's adeptness at navigating such challenges.
Credit quality remains solid, with nonperforming assets to total assets at a low 0.20%. This stability in asset quality is important for investor confidence, as it indicates prudent risk management and a resilient loan portfolio. The slight increase in noninterest expense, primarily driven by salaries and employee benefits, is a typical trend for a growing company and should not be a major concern if it translates into higher revenue and productivity.
Overall, SmartFinancial's quarterly performance reflects a well-executed growth strategy with sound financial management, making it a potentially attractive option for investors looking for a balance of growth and stability.
While my primary focus is on technology, it’s worth noting that SmartFinancial's utilization of technology to enhance operational efficiency and customer service can be a key differentiator in the competitive financial services industry. Although the earnings report doesn't delve deeply into technology specifics, the company's ability to achieve an 11% increase in loan growth and a 12 basis point expansion in net interest margin suggests effective use of fintech solutions and data analytics to drive these outcomes.
The improvements in efficiency metrics likely stem from investments in digital banking platforms, automation and data-driven decision-making tools. These technologies can enhance loan origination processes, optimize interest rate management and improve overall customer satisfaction, which are pivotal for sustained growth and profitability.
For investors, the implicit technology-driven efficiencies present in SmartFinancial’s operational performance indicate a forward-thinking approach. This approach not only supports current growth but also positions the company well for future competitiveness in a rapidly evolving financial landscape. As such, the company’s strategic use of technology appears to be a contributing factor to its strong quarterly results and promising outlook.
KNOXVILLE, Tenn., July 22, 2024 (GLOBE NEWSWIRE) -- SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NYSE: SMBK), today announced net income of
Highlights for the Second Quarter of 2024
- Operating earnings1 of
$7.8 million , or$0.46 per diluted common share - Net organic loan and lease growth of
$97 million with11% annualized quarter-over-quarter increase - Quarter-over-quarter net tax equivalent interest margin expansion of 12 basis points to
2.97% 10% annualized quarter-over-quarter increase in tangible book value per common share1- 136,195 shares repurchased at a weighted average price of
$21.57 - Credit quality remains solid with nonperforming assets to total assets of
0.20%
___________________________________
1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP reconciliations
Billy Carroll, President & CEO, stated: “Our Company continued to gain momentum with a very nice second quarter highlighted by solid growth in operating revenue and a
SmartFinancial's Chairman, Miller Welborn, concluded: “The Board of Directors was pleased to see operating leverage expansion and strong loan growth during the second quarter. The Company’s markets continue to provide great organic growth opportunities that we look forward to winning. We continue to strategically progress towards our longer-term financial objectives and this quarter’s margin expansion and expense control is a good demonstration of our team’s ability to execute our plan. We are confident in our team and look forward to continued improvement as the year progresses.”
Net Interest Income and Net Interest Margin
Net interest income was
The tax equivalent net interest margin was
The cost of total deposits for the second quarter of 2024 was
The following table presents selected interest rates and yields for the periods indicated:
| Three Months Ended | ||||||||||
| Jun | Mar | Increase | ||||||||
| Selected Interest Rates and Yields | 2024 | 2024 | (Decrease) | |||||||
| Yield on loans and leases, excluding loan fees, FTE | 5.80 | % | 5.71 | % | 0.09 | % | ||||
| Yield on loans and leases, FTE | 5.87 | % | 5.82 | % | 0.05 | % | ||||
| Yield on earning assets, FTE | 5.52 | % | 5.36 | % | 0.16 | % | ||||
| Cost of interest-bearing deposits | 3.23 | % | 3.16 | % | 0.07 | % | ||||
| Cost of total deposits | 2.56 | % | 2.52 | % | 0.04 | % | ||||
| Cost of interest-bearing liabilities | 3.29 | % | 3.23 | % | 0.06 | % | ||||
| Net interest margin, FTE | 2.97 | % | 2.85 | % | 0.12 | % | ||||
Provision for Credit Losses on Loans and Leases and Credit Quality
At June 30, 2024, the allowance for credit losses was
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 | |||||||||||
| Provision for Credit Losses on Loans and Leases Rollforward | 2024 | 2024 | (Decrease) | ||||||||||
| Beginning balance | $ | 34,203 | $ | 35,066 | $ | (863 | ) | ||||||
| Charge-offs | (457 | ) | (920 | ) | 463 | ||||||||
| Recoveries | 48 | 135 | (87 | ) | |||||||||
| Net (charge-offs) recoveries | (409 | ) | (785 | ) | 376 | ||||||||
| Provision for credit losses (1) | 896 | (78 | ) | 974 | |||||||||
| Ending balance | $ | 34,690 | $ | 34,203 | $ | 487 | |||||||
| Allowance for credit losses to total loans and leases, gross | 0.97 | % | 0.98 | % | (0.01 | ) | % | ||||||
| (1) | The current quarter-ended and prior quarter-ended excludes unfunded commitments release of |
Nonperforming loans and leases as a percentage of total loans and leases was
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 | 2024 | 2024 | (Decrease) | ||||||||||
| Nonaccrual loans and leases | $ | 6,432 | $ | 6,171 | $ | 261 | |||||||
| Loans and leases past due 90 days or more and still accruing | 210 | 95 | 115 | ||||||||||
| Total nonperforming loans and leases | 6,642 | 6,266 | 376 | ||||||||||
| Other real estate owned | 688 | 696 | (8 | ) | |||||||||
| Other repossessed assets | 2,645 | 2,033 | 612 | ||||||||||
| Total nonperforming assets | $ | 9,975 | $ | 8,995 | $ | 980 | |||||||
| Nonperforming loans and leases to total loans and leases, gross | 0.19 | % | 0.18 | % | 0.01 | % | |||||||
| Nonperforming assets to total assets | 0.20 | % | 0.18 | % | 0.02 | % | |||||||
Noninterest Income
Noninterest income decreased
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 | 2024 | 2024 | (Decrease) | |||||||||
| Service charges on deposit accounts | $ | 1,692 | $ | 1,612 | $ | 80 | ||||||
| Mortgage banking income | 348 | 280 | 68 | |||||||||
| Investment services | 1,302 | 1,380 | (78 | ) | ||||||||
| Insurance commissions | 1,284 | 1,103 | 181 | |||||||||
| Interchange and debit card transaction fees | 1,343 | 1,253 | 90 | |||||||||
| Other | 1,635 | 2,752 | (1,117 | ) | ||||||||
| Total noninterest income | $ | 7,604 | $ | 8,380 | $ | (776 | ) | |||||
Noninterest Expense
Noninterest expense increased
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 | 2024 | 2024 | (Decrease) | |||||||||
| Salaries and employee benefits | $ | 17,261 | $ | 16,639 | $ | 622 | ||||||
| Occupancy and equipment | 3,324 | 3,396 | (72 | ) | ||||||||
| FDIC insurance | 825 | 915 | (90 | ) | ||||||||
| Other real estate and loan related expenses | 538 | 584 | (46 | ) | ||||||||
| Advertising and marketing | 295 | 302 | (7 | ) | ||||||||
| Data processing and technology | 2,452 | 2,465 | (13 | ) | ||||||||
| Professional services | 1,064 | 924 | 140 | |||||||||
| Amortization of intangibles | 608 | 612 | (4 | ) | ||||||||
| Other | 2,834 | 2,716 | 118 | |||||||||
| Total noninterest expense | $ | 29,201 | $ | 28,553 | $ | 648 | ||||||
Income Tax Expense
Income tax expense was
The effective tax rate was
Balance Sheet Trends
Total assets at June 30, 2024 were
Total liabilities increased to
Shareholders' equity at June 30, 2024, totaled
___________________________________
1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP reconciliation
The following table presents selected balance sheet information for the periods indicated (dollars in thousands):
| Jun | Dec | Increase | ||||||||||
| Selected Balance Sheet Information | 2024 | 2023 | (Decrease) | |||||||||
| Total assets | $ | 4,891,009 | $ | 4,829,387 | $ | 61,622 | ||||||
| Total liabilities | 4,418,544 | 4,369,501 | 49,043 | |||||||||
| Total equity | 472,465 | 459,886 | 12,579 | |||||||||
| Securities | 629,817 | 689,646 | (59,829 | ) | ||||||||
| Loans and leases | 3,574,158 | 3,444,462 | 129,696 | |||||||||
| Deposits | 4,316,656 | 4,267,854 | 48,802 | |||||||||
| Borrowings | 12,732 | 13,078 | (346 | ) | ||||||||
Conference Call Information
SmartFinancial issued this earnings release for the second quarter of 2024 on Monday, July 22, 2024, and will host a conference call on Tuesday, July 23, 2024, at 10:00 a.m. ET. To access this interactive teleconference, dial (833) 470-1428 or (404) 975-4839 and entering the access code, 533803. A replay of the conference call will be available through August 22, 2024, by dialing (866) 813-9403 or (929) 458-6194 and entering the access code, 897395. 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.
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. 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 | |
| President & CEO | |
| (865) 868-0613 billy.carroll@smartbank.com | |
| Ron Gorczynski | |
| Executive Vice President, Chief Financial Officer | |
| (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 (“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:
| (i) | Operating earnings | |
| (ii) | Operating noninterest income | |
| (iii) | Operating noninterest expense | |
| (iv) | Operating pre-provision net revenue (“PPNR”) earnings | |
| (v) | Tangible common equity | |
| (vi) | Average tangible common equity | |
| (vii) | Tangible book value per common share | |
| (viii) | Tangible assets |
Operating earnings, operating noninterest income, operating noninterest expense and operating PPNR exclude non-operating related income and expense items, respectively. 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 per common share is tangible common equity divided by common shares outstanding. Tangible assets excludes goodwill and other intangibles from total assets. A detailed reconciliation of these items and 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.
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) | 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) | changes in management’s plans for the future; | |
| (7) | prevailing, or changes in, economic or political conditions, 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; | |
| (8) | 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 prolonged elevated interest rates on our financial projections, models and guidance); | |
| (9) | increased technology and cybersecurity risks, including generative artificial intelligence risks; | |
| (10) | credit risk associated with our lending activities; | |
| (11) | changes in loan demand, real estate values, or competition; | |
| (12) | developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; | |
| (13) | changes in accounting principles, policies, or guidelines; | |
| (14) | changes in applicable laws, rules, or regulations; | |
| (15) | adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions; | |
| (16) | potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; | |
| (17) | 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; | |
| (18) | the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and surrounding areas; and | |
| (19) | 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 Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
| Ending Balances | |||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | |||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
| Assets: | |||||||||||||||||||
| Cash and cash equivalents | $ | 342,835 | $ | 477,941 | $ | 352,271 | $ | 400,258 | $ | 238,898 | |||||||||
| Securities available-for-sale, at fair value | 500,821 | 474,347 | 408,410 | 385,131 | 540,308 | ||||||||||||||
| Securities held-to-maturity, at amortized cost | 128,996 | 180,169 | 281,236 | 282,313 | 283,564 | ||||||||||||||
| Other investments | 13,780 | 13,718 | 13,662 | 13,805 | 14,396 | ||||||||||||||
| Loans held for sale | 3,103 | 4,861 | 4,418 | 2,734 | 986 | ||||||||||||||
| Loans and leases | 3,574,158 | 3,477,555 | 3,444,462 | 3,378,999 | 3,337,790 | ||||||||||||||
| Less: Allowance for credit losses | (34,690 | ) | (34,203 | ) | (35,066 | ) | (33,687 | ) | (32,747 | ) | |||||||||
| Loans and leases, net | 3,539,468 | 3,443,352 | 3,409,396 | 3,345,312 | 3,305,043 | ||||||||||||||
| Premises and equipment, net | 91,315 | 92,694 | 92,963 | 92,020 | 92,351 | ||||||||||||||
| Other real estate owned | 688 | 696 | 517 | 1,370 | 1,708 | ||||||||||||||
| Goodwill and other intangibles, net | 105,929 | 106,537 | 107,148 | 107,792 | 108,439 | ||||||||||||||
| Bank owned life insurance | 84,483 | 83,957 | 83,434 | 82,914 | 82,419 | ||||||||||||||
| Other assets | 79,591 | 76,418 | 75,932 | 83,522 | 77,688 | ||||||||||||||
| Total assets | $ | 4,891,009 | $ | 4,954,690 | $ | 4,829,387 | $ | 4,797,171 | $ | 4,745,800 | |||||||||
| Liabilities: | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing demand | $ | 903,300 | $ | 907,254 | $ | 898,044 | $ | 923,763 | $ | 1,003,432 | |||||||||
| Interest-bearing demand | 988,057 | 996,298 | 1,006,915 | 993,717 | 938,758 | ||||||||||||||
| Money market and savings | 1,901,281 | 1,952,410 | 1,812,427 | 1,766,409 | 1,720,202 | ||||||||||||||
| Time deposits | 524,018 | 538,159 | 550,468 | 562,620 | 537,192 | ||||||||||||||
| Total deposits | 4,316,656 | 4,394,121 | 4,267,854 | 4,246,509 | 4,199,584 | ||||||||||||||
| Borrowings | 12,732 | 9,849 | 13,078 | 14,117 | 15,496 | ||||||||||||||
| Subordinated debt | 42,142 | 42,120 | 42,099 | 42,078 | 42,057 | ||||||||||||||
| Other liabilities | 47,014 | 41,804 | 46,470 | 47,815 | 43,816 | ||||||||||||||
| Total liabilities | 4,418,544 | 4,487,894 | 4,369,501 | 4,350,519 | 4,300,953 | ||||||||||||||
| Shareholders' Equity: | |||||||||||||||||||
| Common stock | 16,926 | 17,057 | 16,989 | 16,995 | 17,004 | ||||||||||||||
| Additional paid-in capital | 293,586 | 296,061 | 295,699 | 295,542 | 295,296 | ||||||||||||||
| Retained earnings | 187,751 | 181,103 | 173,105 | 168,271 | 167,564 | ||||||||||||||
| Accumulated other comprehensive loss | (25,798 | ) | (27,425 | ) | (25,907 | ) | (34,156 | ) | (35,017 | ) | |||||||||
| Total shareholders' equity | 472,465 | 466,796 | 459,886 | 446,652 | 444,847 | ||||||||||||||
| Total liabilities & shareholders' equity | $ | 4,891,009 | $ | 4,954,690 | $ | 4,829,387 | $ | 4,797,171 | $ | 4,745,800 | |||||||||
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 | |||||||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | |||||||||||||||||||||
| Interest income: | |||||||||||||||||||||||||||
| Loans and leases, including fees | $ | 50,853 | $ | 50,020 | $ | 48,767 | $ | 47,539 | $ | 45,446 | $ | 100,873 | $ | 90,173 | |||||||||||||
| Investment securities: | |||||||||||||||||||||||||||
| Taxable | 5,320 | 4,548 | 4,344 | 4,335 | 4,335 | 9,869 | 7,986 | ||||||||||||||||||||
| Tax-exempt | 353 | 352 | 352 | 356 | 357 | 705 | 709 | ||||||||||||||||||||
| Federal funds sold and other earning assets | 4,759 | 4,863 | 4,032 | 3,045 | 1,956 | 9,620 | 6,405 | ||||||||||||||||||||
| Total interest income | 61,285 | 59,783 | 57,495 | 55,275 | 52,094 | 121,067 | 105,273 | ||||||||||||||||||||
| Interest expense: | |||||||||||||||||||||||||||
| Deposits | 27,439 | 27,035 | 24,926 | 23,433 | 19,554 | 54,474 | 35,900 | ||||||||||||||||||||
| Borrowings | 148 | 128 | 162 | 210 | 339 | 276 | 564 | ||||||||||||||||||||
| Subordinated debt | 884 | 899 | 890 | 626 | 626 | 1,782 | 1,252 | ||||||||||||||||||||
| Total interest expense | 28,471 | 28,062 | 25,978 | 24,269 | 20,519 | 56,532 | 37,716 | ||||||||||||||||||||
| Net interest income | 32,814 | 31,721 | 31,517 | 31,006 | 31,575 | 64,535 | 67,557 | ||||||||||||||||||||
| Provision for credit losses | 883 | (440 | ) | 1,571 | 795 | 113 | 443 | 663 | |||||||||||||||||||
| Net interest income after provision for credit losses | 31,931 | 32,161 | 29,946 | 30,211 | 31,462 | 64,092 | 66,894 | ||||||||||||||||||||
| Noninterest income: | |||||||||||||||||||||||||||
| Service charges on deposit accounts | 1,692 | 1,612 | 1,673 | 1,736 | 1,657 | 3,304 | 3,102 | ||||||||||||||||||||
| Loss on sale of securities, net | — | — | — | (6,801 | ) | — | — | — | |||||||||||||||||||
| Mortgage banking | 348 | 280 | 227 | 309 | 332 | 628 | 504 | ||||||||||||||||||||
| Investment services | 1,302 | 1,380 | 1,339 | 1,461 | 1,300 | 2,682 | 2,305 | ||||||||||||||||||||
| Insurance commissions | 1,284 | 1,103 | 1,133 | 1,153 | 1,139 | 2,387 | 2,398 | ||||||||||||||||||||
| Interchange and debit card transaction fees | 1,343 | 1,253 | 1,370 | 1,357 | 1,347 | 2,596 | 2,730 | ||||||||||||||||||||
| Other | 1,635 | 2,752 | 1,837 | 1,476 | 1,355 | 4,387 | 3,016 | ||||||||||||||||||||
| Total noninterest income | 7,604 | 8,380 | 7,579 | 691 | 7,130 | 15,984 | 14,055 | ||||||||||||||||||||
| Noninterest expense: | |||||||||||||||||||||||||||
| Salaries and employee benefits | 17,261 | 16,639 | 16,275 | 16,785 | 15,947 | 33,900 | 32,689 | ||||||||||||||||||||
| Occupancy and equipment | 3,324 | 3,396 | 3,378 | 3,547 | 3,318 | 6,720 | 6,526 | ||||||||||||||||||||
| FDIC insurance | 825 | 915 | 915 | 825 | 875 | 1,740 | 1,416 | ||||||||||||||||||||
| Other real estate and loan related expense | 538 | 584 | 781 | 603 | 441 | 1,123 | 1,013 | ||||||||||||||||||||
| Advertising and marketing | 295 | 302 | 336 | 346 | 305 | 597 | 660 | ||||||||||||||||||||
| Data processing and technology | 2,452 | 2,465 | 2,458 | 2,378 | 2,235 | 4,916 | 4,398 | ||||||||||||||||||||
| Professional services | 1,064 | 924 | 1,136 | 735 | 764 | 1,989 | 1,572 | ||||||||||||||||||||
| Amortization of intangibles | 608 | 612 | 643 | 647 | 675 | 1,220 | 1,334 | ||||||||||||||||||||
| Merger related and restructuring expenses | — | — | — | 110 | — | — | — | ||||||||||||||||||||
| Other | 2,834 | 2,716 | 3,773 | 2,540 | 2,850 | 5,549 | 5,331 | ||||||||||||||||||||
| Total noninterest expense | 29,201 | 28,553 | 29,695 | 28,516 | 27,410 | 57,754 | 54,939 | ||||||||||||||||||||
| Income before income taxes | 10,334 | 11,988 | 7,830 | 2,386 | 11,182 | 22,322 | 26,010 | ||||||||||||||||||||
| Income tax expense | 2,331 | 2,630 | 1,640 | 319 | 2,346 | 4,962 | 5,674 | ||||||||||||||||||||
| Net income | $ | 8,003 | $ | 9,358 | $ | 6,190 | $ | 2,067 | $ | 8,836 | $ | 17,360 | $ | 20,336 | |||||||||||||
| Earnings per common share: | |||||||||||||||||||||||||||
| Basic | $ | 0.48 | $ | 0.56 | $ | 0.37 | $ | 0.12 | $ | 0.53 | $ | 1.03 | $ | 1.21 | |||||||||||||
| Diluted | $ | 0.48 | $ | 0.55 | $ | 0.37 | $ | 0.12 | $ | 0.52 | $ | 1.03 | $ | 1.20 | |||||||||||||
| Weighted average common shares outstanding: | |||||||||||||||||||||||||||
| Basic | 16,770,819 | 16,849,735 | 16,814,647 | 16,807,548 | 16,806,389 | 16,810,277 | 16,798,939 | ||||||||||||||||||||
| Diluted | 16,850,250 | 16,925,408 | 16,918,234 | 16,918,635 | 16,898,091 | 16,887,374 | 16,897,444 | ||||||||||||||||||||
SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
YIELD ANALYSIS
| Three Months Ended | |||||||||||||||||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | Average | Yield/ | ||||||||||||||||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||||||||||||||
| Assets: | |||||||||||||||||||||||||||||||||
| Loans and leases, including fees1 | $ | 3,504,265 | $ | 51,110 | 5.87 | % | $ | 3,458,109 | $ | 50,020 | 5.82 | % | $ | 3,308,595 | $ | 45,446 | 5.51 | % | |||||||||||||||
| Taxable securities | 580,517 | 5,320 | 3.69 | % | 620,805 | 4,548 | 2.95 | % | 770,275 | 4,335 | 2.26 | % | |||||||||||||||||||||
| Tax-exempt securities2 | 63,690 | 447 | 2.82 | % | 64,161 | 445 | 2.79 | % | 65,265 | 452 | 2.78 | % | |||||||||||||||||||||
| Federal funds sold and other earning assets | 346,459 | 4,759 | 5.52 | % | 353,913 | 4,863 | 5.53 | % | 195,266 | 1,956 | 4.02 | % | |||||||||||||||||||||
| Total interest-earning assets | 4,494,931 | 61,636 | 5.52 | % | 4,496,988 | 59,876 | 5.36 | % | 4,339,401 | 52,189 | 4.82 | % | |||||||||||||||||||||
| Noninterest-earning assets | 383,697 | 380,231 | 355,701 | ||||||||||||||||||||||||||||||
| Total assets | $ | 4,878,628 | $ | 4,877,219 | $ | 4,695,102 | |||||||||||||||||||||||||||
| Liabilities and Shareholders’ Equity: | |||||||||||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 983,433 | 5,950 | 2.43 | % | $ | 996,147 | 6,060 | 2.45 | % | $ | 950,227 | 4,892 | 2.06 | % | ||||||||||||||||||
| Money market and savings deposits | 1,909,125 | 16,529 | 3.48 | % | 1,904,855 | 16,149 | 3.41 | % | 1,737,303 | 11,785 | 2.72 | % | |||||||||||||||||||||
| Time deposits | 528,985 | 4,960 | 3.77 | % | 541,792 | 4,826 | 3.58 | % | 504,350 | 2,877 | 2.29 | % | |||||||||||||||||||||
| Total interest-bearing deposits | 3,421,543 | 27,439 | 3.23 | % | 3,442,794 | 27,035 | 3.16 | % | 3,191,880 | 19,554 | 2.46 | % | |||||||||||||||||||||
| Borrowings | 12,684 | 148 | 4.69 | % | 11,245 | 128 | 4.58 | % | 24,845 | 339 | 5.47 | % | |||||||||||||||||||||
| Subordinated debt | 42,129 | 884 | 8.44 | % | 42,107 | 899 | 8.59 | % | 42,044 | 626 | 5.97 | % | |||||||||||||||||||||
| Total interest-bearing liabilities | 3,476,356 | 28,471 | 3.29 | % | 3,496,146 | 28,062 | 3.23 | % | 3,258,769 | 20,519 | 2.53 | % | |||||||||||||||||||||
| Noninterest-bearing deposits | 888,693 | 872,840 | 951,381 | ||||||||||||||||||||||||||||||
| Other liabilities | 47,208 | 47,085 | 40,669 | ||||||||||||||||||||||||||||||
| Total liabilities | 4,412,257 | 4,416,071 | 4,250,819 | ||||||||||||||||||||||||||||||
| Shareholders' equity | 466,371 | 461,148 | 444,283 | ||||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 4,878,628 | $ | 4,877,219 | $ | 4,695,102 | |||||||||||||||||||||||||||
| Net interest income, taxable equivalent | $ | 33,165 | $ | 31,814 | $ | 31,670 | |||||||||||||||||||||||||||
| Interest rate spread | 2.22 | % | 2.13 | % | 2.30 | % | |||||||||||||||||||||||||||
| Tax equivalent net interest margin | 2.97 | % | 2.85 | % | 2.93 | % | |||||||||||||||||||||||||||
| Percentage of average interest-earning assets to average interest-bearing liabilities | 129.30 | % | 128.63 | % | 133.16 | % | |||||||||||||||||||||||||||
| Percentage of average equity to average assets | 9.56 | % | 9.46 | % | 9.46 | % | |||||||||||||||||||||||||||
1 Yields computed on tax-exempt loans on a tax equivalent basis include
2 Yields computed on tax-exempt instruments on a tax equivalent basis include
SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
YIELD ANALYSIS
| Six Months Ended | ||||||||||||||||||||||||
| June 30, 2024 | June 30, 2023 | |||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | |||||||||||||||||||||
| Balance | Interest | Cost | Balance | Interest | Cost | |||||||||||||||||||
| Assets: | ||||||||||||||||||||||||
| Loans and leases, including fees1 | $ | 3,481,187 | $ | 101,130 | 5.84 | % | $ | 3,283,662 | $ | 90,173 | 5.54 | % | ||||||||||||
| Taxable securities | 600,661 | 9,869 | 3.30 | % | 747,037 | 7,986 | 2.16 | % | ||||||||||||||||
| Tax-exempt securities2 | 63,925 | 892 | 2.81 | % | 65,405 | 897 | 2.77 | % | ||||||||||||||||
| Federal funds sold and other earning assets | 350,186 | 9,620 | 5.52 | % | 286,254 | 6,405 | 4.51 | % | ||||||||||||||||
| Total interest-earning assets | 4,495,959 | 121,511 | 5.44 | % | 4,382,358 | 105,461 | 4.85 | % | ||||||||||||||||
| Noninterest-earning assets | 381,964 | 357,837 | ||||||||||||||||||||||
| Total assets | $ | 4,877,923 | $ | 4,740,195 | ||||||||||||||||||||
| Liabilities and Shareholders’ Equity: | ||||||||||||||||||||||||
| Interest-bearing demand deposits | $ | 989,790 | 12,010 | 2.44 | % | $ | 947,196 | 9,119 | 1.94 | % | ||||||||||||||
| Money market and savings deposits | 1,906,990 | 32,677 | 3.45 | % | 1,778,650 | 22,168 | 2.51 | % | ||||||||||||||||
| Time deposits | 535,389 | 9,787 | 3.68 | % | 486,952 | 4,613 | 1.91 | % | ||||||||||||||||
| Total interest-bearing deposits | 3,432,169 | 54,474 | 3.19 | % | 3,212,798 | 35,900 | 2.25 | % | ||||||||||||||||
| Borrowings | 11,964 | 276 | 4.64 | % | 20,874 | 564 | 5.45 | % | ||||||||||||||||
| Subordinated debt | 42,118 | 1,782 | 8.51 | % | 42,033 | 1,252 | 6.01 | % | ||||||||||||||||
| Total interest-bearing liabilities | 3,486,251 | 56,532 | 3.26 | % | 3,275,705 | 37,716 | 2.32 | % | ||||||||||||||||
| Noninterest-bearing deposits | 880,767 | 983,348 | ||||||||||||||||||||||
| Other liabilities | 47,146 | 42,777 | ||||||||||||||||||||||
| Total liabilities | 4,414,164 | 4,301,830 | ||||||||||||||||||||||
| Shareholders' equity | 463,759 | 438,365 | ||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 4,877,923 | $ | 4,740,195 | ||||||||||||||||||||
| Net interest income, taxable equivalent | $ | 64,979 | $ | 67,745 | ||||||||||||||||||||
| Interest rate spread | 2.17 | % | 2.53 | % | ||||||||||||||||||||
| Tax equivalent net interest margin | 2.91 | % | 3.12 | % | ||||||||||||||||||||
| Percentage of average interest-earning assets to average interest-bearing liabilities | 128.96 | % | 133.78 | % | ||||||||||||||||||||
| Percentage of average equity to average assets | 9.51 | % | 9.25 | % | ||||||||||||||||||||
1Yields computed on tax-exempt loans on a tax equivalent basis included
2Yields computed on tax-exempt instruments on a tax equivalent basis included
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 | ||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | ||||||||||||||||
| Composition of Loans and Leases: | ||||||||||||||||||||
| Commercial real estate: | ||||||||||||||||||||
| Owner occupied | $ | 829,085 | $ | 804,557 | $ | 798,416 | $ | 776,402 | $ | 769,978 | ||||||||||
| Non-owner occupied | 986,278 | 938,648 | 940,789 | 890,774 | 871,779 | |||||||||||||||
| Commercial real estate, total | 1,815,363 | 1,743,205 | 1,739,205 | 1,667,176 | 1,641,757 | |||||||||||||||
| Commercial & industrial | 701,460 | 667,903 | 645,918 | 617,115 | 594,427 | |||||||||||||||
| Construction & land development | 294,575 | 321,860 | 327,185 | 373,068 | 394,742 | |||||||||||||||
| Consumer real estate | 678,331 | 659,209 | 649,867 | 638,518 | 624,828 | |||||||||||||||
| Leases | 70,299 | 71,909 | 68,752 | 68,538 | 66,401 | |||||||||||||||
| Consumer and other | 14,130 | 13,469 | 13,535 | 14,584 | 15,635 | |||||||||||||||
| Total loans and leases | $ | 3,574,158 | $ | 3,477,555 | $ | 3,444,462 | $ | 3,378,999 | $ | 3,337,790 | ||||||||||
| Asset Quality and Additional Loan Data: | ||||||||||||||||||||
| Nonperforming loans and leases | $ | 6,642 | $ | 6,266 | $ | 8,101 | $ | 4,163 | $ | 3,722 | ||||||||||
| Other real estate owned | 688 | 696 | 517 | 1,370 | 1,708 | |||||||||||||||
| Other repossessed assets | 2,645 | 2,033 | 1,117 | 348 | 282 | |||||||||||||||
| Total nonperforming assets | $ | 9,975 | $ | 8,995 | $ | 9,735 | $ | 5,881 | $ | 5,712 | ||||||||||
| Modified loans and leases1 not included in nonperforming loans and leases | $ | 4,241 | $ | 4,413 | $ | 4,245 | $ | 2,376 | $ | 657 | ||||||||||
| Net charge-offs to average loans and leases (annualized) | 0.05 | % | 0.09 | % | 0.04 | % | 0.04 | % | (0.01 | ) | % | |||||||||
| Allowance for credit losses to loans and leases | 0.97 | % | 0.98 | % | 1.02 | % | 1.00 | % | 0.98 | % | ||||||||||
| Nonperforming loans and leases to total loans and leases, gross | 0.19 | % | 0.18 | % | 0.24 | % | 0.12 | % | 0.11 | % | ||||||||||
| Nonperforming assets to total assets | 0.20 | % | 0.18 | % | 0.20 | % | 0.12 | % | 0.12 | % | ||||||||||
| Capital Ratios: | ||||||||||||||||||||
| Equity to Assets | 9.66 | % | 9.42 | % | 9.52 | % | 9.31 | % | 9.37 | % | ||||||||||
| Tangible common equity to tangible assets (Non-GAAP)2 | 7.66 | % | 7.43 | % | 7.47 | % | 7.23 | % | 7.25 | % | ||||||||||
| SmartFinancial, Inc.3 | ||||||||||||||||||||
| Tier 1 leverage | 8.32 | % | 8.23 | % | 8.27 | % | 8.13 | % | 8.24 | % | ||||||||||
| Common equity Tier 1 | 10.06 | % | 10.20 | % | 10.14 | % | 10.07 | % | 10.12 | % | ||||||||||
| Tier 1 capital | 10.06 | % | 10.20 | % | 10.14 | % | 10.07 | % | 10.12 | % | ||||||||||
| Total capital | 11.68 | % | 11.85 | % | 11.78 | % | 11.90 | % | 11.94 | % | ||||||||||
| SmartBank | Estimated4 | |||||||||||||||||||
| Tier 1 leverage | 9.11 | % | 9.07 | % | 9.18 | % | 9.00 | % | 9.18 | % | ||||||||||
| Common equity Tier 1 | 11.02 | % | 11.23 | % | 11.26 | % | 11.15 | % | 11.27 | % | ||||||||||
| Tier 1 capital | 11.02 | % | 11.23 | % | 11.26 | % | 11.15 | % | 11.27 | % | ||||||||||
| Total capital | 11.79 | % | 12.00 | % | 12.02 | % | 11.87 | % | 11.97 | % | ||||||||||
1Borrowers that have experienced financial difficulty.
2Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures.
3All periods presented are estimated.
4Current period capital ratios are estimated as of the date of this earnings release.
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 | June | ||||||||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
| Selected Performance Ratios (Annualized): | ||||||||||||||||||||||||||||
| Return on average assets | 0.66 | % | 0.77 | % | 0.52 | % | 0.17 | % | 0.75 | % | 0.72 | % | 0.87 | % | ||||||||||||||
| Return on average shareholders' equity | 6.90 | % | 8.16 | % | 5.46 | % | 1.84 | % | 7.98 | % | 7.53 | % | 9.36 | % | ||||||||||||||
| Return on average tangible common equity¹ | 8.94 | % | 10.63 | % | 7.18 | % | 2.43 | % | 10.57 | % | 9.77 | % | 12.46 | % | ||||||||||||||
| Noninterest income / average assets | 0.63 | % | 0.69 | % | 0.63 | % | 0.06 | % | 0.61 | % | 0.66 | % | 0.60 | % | ||||||||||||||
| Noninterest expense / average assets | 2.41 | % | 2.35 | % | 2.47 | % | 2.37 | % | 2.34 | % | 2.38 | % | 2.34 | % | ||||||||||||||
| Efficiency ratio | 72.25 | % | 71.20 | % | 75.95 | % | 89.96 | % | 70.82 | % | 71.73 | % | 67.32 | % | ||||||||||||||
| Operating Selected Performance Ratios (Annualized): | ||||||||||||||||||||||||||||
| Operating return on average assets1 | 0.64 | % | 0.69 | % | 0.57 | % | 0.60 | % | 0.75 | % | 0.67 | % | 0.87 | % | ||||||||||||||
| Operating PPNR return on average assets1 | 0.90 | % | 0.84 | % | 0.86 | % | 0.84 | % | 0.96 | % | 0.87 | % | 1.13 | % | ||||||||||||||
| Operating return on average shareholders' equity1 | 6.72 | % | 7.29 | % | 6.07 | % | 6.41 | % | 7.98 | % | 7.00 | % | 9.36 | % | ||||||||||||||
| Operating return on average tangible common equity1 | 8.70 | % | 9.49 | % | 7.98 | % | 8.46 | % | 10.57 | % | 9.09 | % | 12.46 | % | ||||||||||||||
| Operating efficiency ratio1 | 72.13 | % | 73.50 | % | 73.41 | % | 73.60 | % | 70.64 | % | 72.81 | % | 67.16 | % | ||||||||||||||
| Operating noninterest income / average assets1 | 0.60 | % | 0.58 | % | 0.63 | % | 0.62 | % | 0.61 | % | 0.59 | % | 0.60 | % | ||||||||||||||
| Operating noninterest expense / average assets1 | 2.41 | % | 2.35 | % | 2.39 | % | 2.36 | % | 2.34 | % | 2.38 | % | 2.34 | % | ||||||||||||||
| Selected Interest Rates and Yields: | ||||||||||||||||||||||||||||
| Yield on loans and leases, excluding loan fees, FTE | 5.80 | % | 5.71 | % | 5.61 | % | 5.52 | % | 5.39 | % | 5.76 | % | 5.30 | % | ||||||||||||||
| Yield on loans and leases, FTE | 5.87 | % | 5.82 | % | 5.68 | % | 5.61 | % | 5.51 | % | 5.84 | % | 5.54 | % | ||||||||||||||
| Yield on earning assets, FTE | 5.52 | % | 5.36 | % | 5.22 | % | 4.99 | % | 4.82 | % | 5.44 | % | 4.85 | % | ||||||||||||||
| Cost of interest-bearing deposits | 3.23 | % | 3.16 | % | 3.00 | % | 2.84 | % | 2.46 | % | 3.19 | % | 2.25 | % | ||||||||||||||
| Cost of total deposits | 2.56 | % | 2.52 | % | 2.35 | % | 2.20 | % | 1.89 | % | 2.54 | % | 1.73 | % | ||||||||||||||
| Cost of interest-bearing liabilities | 3.29 | % | 3.23 | % | 3.07 | % | 2.89 | % | 2.53 | % | 3.26 | % | 2.32 | % | ||||||||||||||
| Net interest margin, FTE | 2.97 | % | 2.85 | % | 2.86 | % | 2.81 | % | 2.93 | % | 2.91 | % | 3.12 | % | ||||||||||||||
| Per Common Share: | ||||||||||||||||||||||||||||
| Net income, basic | $ | 0.48 | $ | 0.56 | $ | 0.37 | $ | 0.12 | $ | 0.53 | $ | 1.03 | $ | 1.21 | ||||||||||||||
| Net income, diluted | 0.48 | 0.55 | 0.37 | 0.12 | 0.52 | 1.03 | 1.20 | |||||||||||||||||||||
| Operating earnings, basic¹ | 0.47 | 0.50 | 0.41 | 0.43 | 0.53 | 0.96 | 1.21 | |||||||||||||||||||||
| Operating earnings, diluted¹ | 0.46 | 0.49 | 0.41 | 0.43 | 0.52 | 0.96 | 1.20 | |||||||||||||||||||||
| Book value | 27.91 | 27.37 | 27.07 | 26.28 | 26.16 | 27.91 | 26.16 | |||||||||||||||||||||
| Tangible book value¹ | 21.66 | 21.12 | 20.76 | 19.94 | 19.78 | 21.66 | 19.78 | |||||||||||||||||||||
| Common shares outstanding | 16,925,902 | 17,056,704 | 16,988,879 | 16,994,543 | 17,004,092 | 16,925,902 | 17,004,092 | |||||||||||||||||||||
¹Non-GAAP measure. See reconciliation of Non-GAAP measures.
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 | June | ||||||||||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | 2024 | 2023 | ||||||||||||||||||||||
| Operating Earnings: | ||||||||||||||||||||||||||||
| Net income (GAAP) | $ | 8,003 | $ | 9,358 | $ | 6,190 | $ | 2,067 | $ | 8,836 | $ | 17,360 | $ | 20,336 | ||||||||||||||
| Noninterest income: | ||||||||||||||||||||||||||||
| Securities (gains) losses, net | — | — | — | 6,801 | — | — | — | |||||||||||||||||||||
| Gain on sale of former branch building | (283 | ) | (1,346 | ) | — | — | — | (1,629 | ) | — | ||||||||||||||||||
| Noninterest expenses: | ||||||||||||||||||||||||||||
| Donation of a former branch location | — | — | 250 | — | — | — | — | |||||||||||||||||||||
| Accruals for pending litigation | — | — | 675 | — | — | — | — | |||||||||||||||||||||
| Merger related and restructuring expenses | — | — | — | 110 | — | — | — | |||||||||||||||||||||
| Income taxes: | ||||||||||||||||||||||||||||
| Income tax effect of adjustments | 73 | 348 | (239 | ) | (1,785 | ) | — | 421 | — | |||||||||||||||||||
| Operating earnings (Non-GAAP) | $ | 7,793 | $ | 8,360 | $ | 6,876 | $ | 7,193 | $ | 8,836 | $ | 16,152 | $ | 20,336 | ||||||||||||||
| Operating earnings per common share (Non-GAAP): | ||||||||||||||||||||||||||||
| Basic | $ | 0.47 | $ | 0.50 | $ | 0.41 | $ | 0.43 | $ | 0.53 | $ | 0.96 | $ | 1.21 | ||||||||||||||
| Diluted | 0.46 | 0.49 | 0.41 | 0.43 | 0.52 | 0.96 | 1.20 | |||||||||||||||||||||
| Operating Noninterest Income: | ||||||||||||||||||||||||||||
| Noninterest income (GAAP) | $ | 7,604 | $ | 8,380 | $ | 7,579 | $ | 691 | $ | 7,130 | $ | 15,984 | $ | 14,055 | ||||||||||||||
| Securities (gains) losses, net | — | — | — | 6,801 | — | — | — | |||||||||||||||||||||
| Gain on sale of former branch building | (283 | ) | (1,346 | ) | — | — | — | (1,629 | ) | — | ||||||||||||||||||
| Operating noninterest income (Non-GAAP) | $ | 7,321 | $ | 7,034 | $ | 7,579 | $ | 7,492 | $ | 7,130 | $ | 14,355 | $ | 14,055 | ||||||||||||||
| Operating noninterest income (Non-GAAP)/average assets1 | 0.60 | % | 0.58 | % | 0.63 | % | 0.62 | % | 0.61 | % | 0.59 | % | 0.60 | % | ||||||||||||||
| Operating Noninterest Expense: | ||||||||||||||||||||||||||||
| Noninterest expense (GAAP) | $ | 29,201 | $ | 28,553 | $ | 29,695 | $ | 28,516 | $ | 27,410 | $ | 57,754 | $ | 54,939 | ||||||||||||||
| Donation of a former branch location | — | — | (250 | ) | — | — | — | — | ||||||||||||||||||||
| Accruals for pending litigation | — | — | (675 | ) | — | — | — | — | ||||||||||||||||||||
| Merger related and restructuring expenses | — | — | — | (110 | ) | — | — | — | ||||||||||||||||||||
| Operating noninterest expense (Non-GAAP) | $ | 29,201 | $ | 28,553 | $ | 28,770 | $ | 28,406 | $ | 27,410 | $ | 57,754 | $ | 54,939 | ||||||||||||||
| Operating noninterest expense (Non-GAAP)/average assets2 | 2.41 | % | 2.35 | % | 2.39 | % | 2.36 | % | 2.34 | % | 2.38 | % | 2.34 | % | ||||||||||||||
| Operating Pre-provision Net revenue ("PPNR") Earnings: | ||||||||||||||||||||||||||||
| Net interest income (GAAP) | $ | 32,814 | $ | 31,721 | $ | 31,517 | $ | 31,006 | $ | 31,575 | $ | 64,535 | $ | 67,557 | ||||||||||||||
| Operating noninterest income (Non-GAAP) | 7,321 | 7,034 | 7,579 | 7,492 | 7,130 | 14,355 | 14,055 | |||||||||||||||||||||
| Operating noninterest expense (Non-GAAP) | (29,201 | ) | (28,553 | ) | (28,770 | ) | (28,406 | ) | (27,410 | ) | (57,754 | ) | (54,939 | ) | ||||||||||||||
| Operating PPNR earnings (Non-GAAP) | $ | 10,934 | $ | 10,202 | $ | 10,326 | $ | 10,092 | $ | 11,295 | $ | 21,136 | $ | 26,673 | ||||||||||||||
| Non-GAAP Return Ratios: | ||||||||||||||||||||||||||||
| Operating return on average assets (Non-GAAP)3 | 0.64 | % | 0.69 | % | 0.57 | % | 0.60 | % | 0.75 | % | 0.67 | % | 0.87 | % | ||||||||||||||
| Operating PPNR return on average assets (Non-GAAP)4 | 0.90 | % | 0.84 | % | 0.86 | % | 0.84 | % | 0.96 | % | 0.87 | % | 1.13 | % | ||||||||||||||
| Return on average tangible common equity (Non-GAAP)5 | 8.94 | % | 10.62 | % | 7.18 | % | 2.43 | % | 10.57 | % | 9.77 | % | 12.46 | % | ||||||||||||||
| Operating return on average shareholders' equity (Non-GAAP)6 | 6.72 | % | 7.29 | % | 6.07 | % | 6.41 | % | 7.98 | % | 7.00 | % | 9.36 | % | ||||||||||||||
| Operating return on average tangible common equity (Non-GAAP)7 | 8.70 | % | 9.49 | % | 7.98 | % | 8.46 | % | 10.57 | % | 9.09 | % | 12.46 | % | ||||||||||||||
| Operating Efficiency Ratio: | ||||||||||||||||||||||||||||
| Efficiency ratio (GAAP) | 72.25 | % | 71.20 | % | 75.95 | % | 89.96 | % | 70.82 | % | 71.73 | % | 67.32 | % | ||||||||||||||
| Adjustment for taxable equivalent yields | (0.63 | ) | % | (0.17 | ) | % | (0.18 | ) | % | (0.27 | ) | % | (0.18 | ) | % | (0.40 | ) | % | (0.16 | ) | % | |||||||
| Adjustment for securities gains (losses) | — | % | — | % | — | % | (15.89 | ) | % | — | % | — | % | — | % | |||||||||||||
| Adjustment for sale of branch location | 0.51 | % | 2.46 | % | — | % | — | % | — | % | 1.48 | % | — | % | ||||||||||||||
| Adjustment for donation of a former branch location | — | % | — | % | (0.64 | ) | % | — | % | — | % | — | % | — | % | |||||||||||||
| Adjustment for accruals for pending litigation | — | % | — | % | (1.72 | ) | % | — | % | — | % | — | % | — | % | |||||||||||||
| Adjustment for merger related income and costs | — | % | — | % | — | % | (0.20 | ) | % | — | % | — | % | — | % | |||||||||||||
| Operating efficiency ratio (Non-GAAP) | 72.13 | % | 73.50 | % | 73.41 | % | 73.60 | % | 70.64 | % | 72.81 | % | 67.16 | % | ||||||||||||||
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 PPNR return on average assets (Non-GAAP) is the annualized operating PPNR 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 shareholders’ 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 Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
NON-GAAP RECONCILIATIONS
| Three Months Ended | |||||||||||||||||||
| Jun | Mar | Dec | Sep | Jun | |||||||||||||||
| 2024 | 2024 | 2023 | 2023 | 2023 | |||||||||||||||
| Tangible Common Equity: | |||||||||||||||||||
| Shareholders' equity (GAAP) | $ | 472,465 | $ | 466,796 | $ | 459,886 | $ | 446,652 | $ | 444,847 | |||||||||
| Less goodwill and other intangible assets | 105,929 | 106,537 | 107,148 | 107,792 | 108,439 | ||||||||||||||
| Tangible common equity (Non-GAAP) | $ | 366,536 | $ | 360,259 | $ | 352,738 | $ | 338,860 | $ | 336,408 | |||||||||
| Average Tangible Common Equity: | |||||||||||||||||||
| Average shareholders' equity (GAAP) | $ | 466,371 | $ | 461,148 | $ | 449,526 | $ | 445,432 | $ | 444,283 | |||||||||
| Less average goodwill and other intangible assets | 106,301 | 106,920 | 107,551 | 108,194 | 108,851 | ||||||||||||||
| Average tangible common equity (Non-GAAP) | $ | 360,070 | $ | 354,228 | $ | 341,975 | $ | 337,238 | $ | 335,432 | |||||||||
| Tangible Book Value per Common Share: | |||||||||||||||||||
| Book value per common share (GAAP) | $ | 27.91 | $ | 27.37 | $ | 27.07 | $ | 26.28 | $ | 26.16 | |||||||||
| Adjustment due to goodwill and other intangible assets | (6.25 | ) | (6.25 | ) | (6.31 | ) | (6.34 | ) | (6.38 | ) | |||||||||
| Tangible book value per common share (Non-GAAP)1 | $ | 21.66 | $ | 21.12 | $ | 20.76 | $ | 19.94 | $ | 19.78 | |||||||||
| Tangible Common Equity to Tangible Assets: | |||||||||||||||||||
| Total Assets (GAAP) | $ | 4,891,009 | $ | 4,954,690 | $ | 4,829,387 | $ | 4,797,171 | $ | 4,745,800 | |||||||||
| Less goodwill and other intangibles | 105,929 | 106,537 | 107,148 | 107,792 | 108,439 | ||||||||||||||
| Tangible Assets (Non-GAAP) | $ | 4,785,080 | $ | 4,848,153 | $ | 4,722,239 | $ | 4,689,379 | $ | 4,637,361 | |||||||||
| Tangible common equity to tangible assets (Non-GAAP) | 7.66 | % | 7.43 | % | 7.47 | % | 7.23 | % | 7.25 | % | |||||||||
1Tangible book value per share (Non-GAAP) is computed by dividing total shareholders’ equity, less goodwill and other intangible assets, by common shares outstanding.
FAQ
What was SmartFinancial's (SMBK) net income for Q2 2024?
How much did SmartFinancial's (SMBK) loans and leases grow in Q2 2024?
What was SmartFinancial's (SMBK) net interest margin in Q2 2024?
How many shares did SmartFinancial (SMBK) repurchase in Q2 2024?
What was SmartFinancial's (SMBK) total asset value as of June 30, 2024?
