SmartFinancial Announces Results for the Third Quarter 2021

Rhea-AI Summary

SmartFinancial, Inc. (NASDAQ: SMBK) reported a Q3 2021 net income of $9.6 million ($0.61 per diluted share), up from $6.4 million ($0.42) a year earlier. Operating earnings were $9.9 million ($0.63), reflecting a 43.2% increase year-over-year. The company achieved net organic loan growth of $52 million and tangible book value per share grew to $19.03. Notably, SmartFinancial completed the acquisition of Sevier County Bancshares and expanded its commercial banking teams across several locations. Total assets increased to $4.38 billion, up from $3.30 billion at year-end.

Positive

• Net income increased to $9.6 million, a 50% rise year-over-year.
• Operating earnings reached $9.9 million, a 43.2% increase from Q3 2020.
• Net organic loan growth of $52 million, an 8.6% annualized increase.
• Tangible book value per share grew to $19.03, a 7.3% increase quarter-over-quarter.
• Successful acquisition of Sevier County Bancshares, enhancing market presence.

Negative

• Noninterest expense rose by $2.5 million to $23.3 million, including costs from new hires.

KNOXVILLE, Tenn., Oct. 19, 2021 (GLOBE NEWSWIRE) -- SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NASDAQ: SMBK), today announced net income of $9.6 million, or $0.61 per diluted common share, for the third quarter of 2021, compared to net income of $6.4 million, or $0.42 per diluted common share, for the third quarter of 2020, and compared to net income of $8.8 million, or $0.58 per diluted common share, for the second quarter of 2021. Operating earnings (Non-GAAP), which excludes securities gains, merger related and restructuring expenses and non-operating items, totaled $9.9 million, or $0.63 per diluted common share, in the third quarter of 2021, compared to $6.6 million, or $0.44 per diluted common share, in the third quarter of 2020, and compared to $9.1 million, or $0.60 per diluted common share, in the second quarter of 2021.

Highlights for the Third Quarter of 2021

• Net organic loan growth of over $52 million, an 8.6% annualized quarter-over-quarter increase
• Operating earnings (non-GAAP) of $0.63 per diluted share, a 43.2% increase from the prior-year-quarter
• Tangible book value per share (Non-GAAP) of $19.03, a 7.3% annualized quarter-over-quarter increase
• Completed the acquisition of Sevier County Bancshares (“SCB”)
• Hired seasoned commercial banking team members in Dothan, Montgomery and Birmingham, Alabama and Tallahassee, Florida
  

Billy Carroll, President & CEO, stated: “Our company is continuing to perform at a very high level, and we are extremely pleased with our results and accomplishments this quarter.  In addition to our solid financial performance, we closed our SCB transaction and added several outstanding, seasoned bankers to our staff.  The momentum around our team is strong and I am very excited with the direction of our company.”

SmartFinancial's Chairman, Miller Welborn, concluded: “The execution of our Strategic Plan is really coming together. All of our operating metrics are on target, and we are excited about our future.”

Net Interest Income and Net Interest Margin

Net interest income was $30.4 million for the third quarter of 2021, compared to $26.9 million for the second quarter of 2021. Average earning assets totaled $3.61 billion, an increase of $314.9 million. The growth was primarily driven by an increase in average cash and cash equivalents of $271.6 million and average loans and leases of $24.2 million. Average interest-bearing liabilities increased $212.2 million, related to continued core deposit growth and the acquisition of SCB.

The tax equivalent net interest margin was 3.35% for the third quarter of 2021, compared to 3.29% for the second quarter of 2021. The tax equivalent net interest margin was impacted by a 2 basis point increase in the average yield on interest-earning assets and offset by a 5 basis point decline in the rate on interest-bearing liabilities over the prior quarter.  The increase in yield on interest-earning assets was primarily driven by an increase of $1.7 million of loan discount accretion and Payroll Protection Program (“PPP”) fee accretion during the third quarter of 2021 when compared to the second quarter of 2021, offset by lower yielding excess liquidity.  

The yield on interest-bearing liabilities decreased to 0.44% for the third quarter of 2021 when compared to 0.49% for the second quarter of 2021. The cost of average interest-bearing deposits was 0.34% for the third quarter of 2021 compared to 0.39% for the second quarter of 2021, a decrease of 5 basis points. The lower cost of average deposits was attributable to the maturing and repricing of time deposits, which decreased 16 basis points during the period. The cost of total deposits for the third quarter of 2021 was 0.25% compared to 0.29% in the second quarter of 2021.

The following table presents selected interest rates and yields for the periods indicated:

		Three Months Ended
		Sep		Jun		Increase
Selected Interest Rates and Yields		2021		2021		(Decrease)
Yield on loans and leases		4.95	%	4.52	%	0.43		%
Yield on earning assets, FTE		3.67	%	3.65	%	0.02		%
Cost of interest-bearing deposits		0.34	%	0.39	%	(0.05	)	%
Cost of total deposits		0.25	%	0.29	%	(0.04	)	%
Cost of interest-bearing liabilities		0.44	%	0.49	%	(0.05	)	%
Net interest margin, FTE		3.35	%	3.29	%	0.06		%

Provision for Loan and Lease Losses and Credit Quality

At September 30, 2021, the allowance for loan and lease losses was $19.3 million. The allowance for loan and lease losses to total loans and leases was 0.73% as of September 30, 2021, compared to 0.74% as of June 30, 2021.   For the Company’s originated loans and leases, the allowance for loan and lease losses to originated loans and leases, less PPP loans, was 0.76% as of September 30, 2021, compared to 0.86% as of June 30, 2021. The remaining discounts on the acquired loan and lease portfolio totaled $13.0 million, or 2.48% of acquired loans and leases as of September 30, 2021.  

The following table presents detailed information related to the provision for loan and lease losses for the periods indicated (dollars in thousands):

			Three Months Ended
				Sep				Jun
	Provision for Loan and Lease Losses Rollforward			2021				2021				Change
	Beginning balance		$	18,310			$	18,370			$	(60	)
	Charge-offs			(239	)			(153	)			(86	)
	Recoveries			75				98				(23	)
	Net charge-offs			(164	)			(55	)			(109	)
	Provision			1,149				(5	)			(1,154	)
	Ending balance		$	19,295			$	18,310			$	985
	Allowance for loan losses to total loans and leases, gross			0.73		%		0.74		%		(0.01	)	%

The Company is not required to implement the provisions of the Current Expected Credit Losses (“CECL”) accounting standard until January 1, 2023 and is continuing to account for the allowance for loan and lease losses under the incurred loss model.

Nonperforming loans and leases as a percentage of total loans and leases was 0.13% as of September 30, 2021, a decrease of 2 basis points from the 0.15% reported in the second quarter of 2021. 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 0.14% as of September 30, 2021, as compared to 0.18% as of June 30, 2021. 

The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands):

			Three Months Ended
				Sep			Jun			Increase
	Credit Quality			2021			2021			(Decrease)
	Nonaccrual loans and leases		$	3,567		$	3,694		$	(127	)
	Loans and leases past due 90 days or more and still accruing			-			64			(64	)
	Total nonperforming loans and leases			3,567			3,758			(191	)
	Other real estate owned			2,415			2,499			(84	)
	Other repossessed assets			77			199			(122	)
	Total nonperforming assets		$	6,059		$	6,456		$	(397	)
	Nonperforming loans and leases to total loans and leases, gross			0.13	%		0.15	%		(0.02	)	%
	Nonperforming assets to total assets			0.14	%		0.18	%		(0.04	)	%

Noninterest Income

Noninterest income increased $1.2 million to $6.3 million for the third quarter of 2021 compared to $5.1 million for the second quarter of 2021. During the third quarter of 2021, the primary components of the changes in noninterest income were as follows:

• Increase in service charges on deposit accounts, related to the SCB acquisition, deposit growth and transaction volume;
• Increase in insurance commissions due to improved activity;
• Increase in interchange and debit card transaction fees, related to increased volume, deposit growth and the SCB acquisition; and
• Increase in other, includes $469 thousand in SWAP fee income from newly created capital markets program and $159 thousand in income from the Company’s bank owned life insurance program.

The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands):

		Three Months Ended
			Sep			Jun			Increase
Noninterest Income			2021			2021			(Decrease)
Service charges on deposit accounts		$	1,220		$	1,048		$	172
Gain (loss) on sale of securities, net			45			-			45
Mortgage banking income			994			1,105			(111	)
Investment services			448			567			(119	)
Insurance commissions			745			557			188
Interchange and debit card transaction fees			1,078			922			156
Other			1,779			944			835
Total noninterest income		$	6,309		$	5,143		$	1,166

Noninterest Expense

Noninterest expense increased $2.5 million to $23.3 million for the third quarter of 2021 compared to $20.8 million for the second quarter of 2021. During the third quarter of 2021, the primary components of the changes in noninterest expense were as follows:

• Increase in salaries and employee benefits, primarily due to the hiring of additional talent from both the SCB acquisition and the Auburn, Dothan, Montgomery and Birmingham, Alabama and Tallahassee, Florida teams;
• Increase in occupancy and equipment expense from the SCB acquisition and expansion in Alabama;
• Increase in FDIC insurance from continued asset growth; and
• Increase in data processing and technology, primarily from continued infrastructure build.

The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands):

		Three Months Ended
			Sep			Jun			Increase
Noninterest Expense			2021			2021			(Decrease)
Salaries and employee benefits		$	13,594		$	12,203		$	1,391
Occupancy and equipment			2,536			2,294			242
FDIC insurance			525			371			154
Other real estate and loan related expenses			407			506			(99	)
Advertising and marketing			235			230			5
Data processing and technology			1,753			1,509			244
Professional services			810			849			(39	)
Amortization of intangibles			711			441			270
Merger related and restructuring expenses			464			372			92
Other			2,274			2,022			252
Total noninterest expense		$	23,309		$	20,797		$	2,512

Income Tax Expense

Income tax expense was $2.6 million for the third quarter of 2021, an increase of $163 thousand, compared to $2.5 million for the second quarter of 2021.

The effective tax rate was 22.0% for the third and second quarters of 2021, respectively.

Balance Sheet Trends

Total assets at September 30, 2021 were $4.38 billion compared with $3.30 billion at December 31, 2020. The increase of $1.08 billion is primarily attributable to increases in cash and cash equivalents of $609.4 million, securities available-for-sale of $123.7 million, loans and leases of $270.4 million, bank owned life insurance of $47.9 million and goodwill and intangibles of $14.5 related to the SCB acquisition.

Total liabilities increased to $3.96 billion at September 30, 2021 from $2.95 billion at December 31, 2020. The increase of $1.01 billion million was primarily from organic deposit growth of $561.4 million and deposits of $432.7 million from the SCB acquisition.

Shareholders' equity at September 30, 2021 totaled $424.7 million, an increase of $67.6 million, from December 31, 2020. The increase in shareholders' equity was primarily from the issuance of $42.3 million of common stock for the acquisition of SCB and net income of $28.1 million for the nine months ended September 30, 2021, which was offset by repurchase of the Company's common stock of $1.2 million and $2.7 million of dividends paid.   Tangible book value per share (Non-GAAP) was $19.03 at September 30, 2021, compared to $17.92 at December 31, 2020. Tangible common equity (Non-GAAP) as a percentage of tangible assets (Non-GAAP) was 7.47% at September 30, 2021, compared with 8.41% at December 31, 2020.

The following table presents selected balance sheet information for the periods indicated (dollars in thousands):

		Sep			Dec			Increase
Selected Balance Sheet Information		2021			2020			(Decrease)
Total assets		$	4,384,031		$	3,304,949		$	1,079,082
Total liabilities			3,959,311			2,947,781			1,011,530
Total equity			424,720			357,168			67,552
Securities available-for-sale, at fair value			339,343			215,634			123,709
Loans and leases			2,652,663			2,382,243			270,420
Deposits			3,799,272			2,805,215			994,057
Borrowings			88,748			81,199			7,549

Conference Call Information

SmartFinancial issued this earnings release for the third quarter of 2021 on Tuesday, October 19, 2021, and will host a conference call on Wednesday, October 20, 2021, at 10:00 a.m. ET. To access this interactive teleconference, dial (844) 200-6205 or (646) 904-5544 and enter the confirmation number, 289025. A replay of the conference call will be available through December 22, 2021, by dialing (866) 813-9403 or (929) 458-6194 and entering the confirmation number, 781192. Conference call materials will be published on the Company’s webpage located at http://www.smartfinancialinc.com/CorporateProfile, at 9:00 am 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 the Florida Panhandle. 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 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, including: (i) operating earnings, (ii) operating return on average assets, (iii) operating pre-tax pre-provision return on average assets, (iv) operating return on average shareholders' equity, (v) return on average tangible common equity, (vi) operating return on average tangible common equity, (vii) operating efficiency ratio, (viii) operating noninterest income, (ix) operating pre-tax pre-provision earnings (x) operating noninterest expense, (xi) tangible common equity, (xii) average tangible common equity, (xiii) tangible book value; (xiv) tangible assets; and ratios derived therefrom, in its analysis of the company's performance. Operating earnings excludes the following from net income: securities gains and losses, proceeds related to the termination of an Alabama Department of Economic and Community Affairs (“ADECA”) loan program, merger related and restructuring expenses. Operating return on average assets is the annualized operating earnings divided by average assets. Operating pre-tax pre-provision return on average assets is the annualized operating pre-tax pre-provision income earnings by average assets. Operating return on average shareholders' equity is the annualized operating earnings divided by average equity. Return on average tangible common equity is the annualized net income divided by average tangible common equity. Operating return on average tangible common equity is the annualized operating earnings divided by average tangible common equity (Non-GAAP). The operating efficiency ratio includes an adjustment for taxable equivalent yields and excludes securities gains and losses and merger related and restructuring expenses from the efficiency ratio. Operating noninterest income excludes the following from noninterest income: securities gains and losses, proceeds related to the termination of the ADECA loan program. Operating pre-tax pre-provision earnings is net interest income plus operating noninterest income less operating noninterest expense. Operating noninterest expense excludes the following from noninterest expense: prior year adjustments to salaries, merger related and restructuring expenses and certain franchise tax true-up expenses. 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 is tangible common equity divided by common shares outstanding. Tangible assets excludes goodwill and other intangibles from total assets. 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 believes these non-GAAP financial measures also 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, including statements regarding the effects of the COVID-19 pandemic on the Company’s business and financial results and conditions, 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) risks related to the acquisition of Sevier County Bancshares, Inc. (“SCB”); (7) the risk that the anticipated benefits from the acquisition of SCB may not be realized in the time frame anticipated; (8) changes in management’s plans for the future; (9) prevailing, or changes in, economic or political conditions, particularly in our market areas; (10) credit risk associated with our lending activities; (11) changes in interest rates, loan demand, real estate values, or competition; (12) changes in accounting principles, policies, or guidelines; (13) changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; (14) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic; (15) the impact of the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (16) potential increases in the provision for loan losses resulting from the COVID-19 pandemic; and (17) 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
		Sep				Jun				Mar				Dec				Sep
		2021				2021				2021				2020				2020
Assets:
Cash and cash equivalents		$	1,091,160			$	673,515			$	556,701			$	481,719			$	541,815
Securities available-for-sale, at fair value			339,343				250,817				250,937				215,634				214,634
Other investments			14,972				14,584				14,728				14,794				14,829
Loans held for sale			3,418				4,334				7,870				11,721				11,292
Loans and leases			2,652,663				2,468,318				2,487,129				2,382,243				2,404,057
Less: Allowance for loan and lease losses			(19,295	)			(18,310	)			(18,370	)			(18,346	)			(18,817	)
Loans and leases, net			2,633,368				2,450,008				2,468,759				2,363,897				2,385,240
Premises and equipment, net			85,346				72,314				72,697				72,682				73,934
Other real estate owned			2,415				2,499				3,946				4,619				3,932
Goodwill and other intangibles, net			104,930				90,966				86,350				86,471				86,710
Bank owned life insurance			79,145				72,013				71,586				31,215				31,034
Other assets			29,934				23,306				23,629				22,197				24,168
Total assets		$	4,384,031			$	3,654,356			$	3,557,203			$	3,304,949			$	3,387,588
Liabilities:
Deposits:
Noninterest-bearing demand		$	977,180			$	807,560			$	777,968			$	685,957			$	669,733
Interest-bearing demand			847,007				702,470				683,887				649,129				534,128
Money market and savings			1,389,393				1,140,029				1,073,941				919,631				871,098
Time deposits			585,692				489,413				512,417				550,498				577,064
Total deposits			3,799,272				3,139,472				3,048,213				2,805,215				2,652,023
Borrowings			88,748				78,834				82,642				81,199				319,391
Subordinated debt			41,909				39,388				39,367				39,346				39,325
Other liabilities			29,382				23,269				22,923				22,021				27,060
Total liabilities			3,959,311				3,280,963				3,193,145				2,947,781				3,037,799
Shareholders' Equity:
Common stock			16,801				15,110				15,105				15,107				15,233
Additional paid-in capital			292,760				252,039				251,836				252,693				254,626
Retained earnings			112,600				103,906				96,034				87,185				78,918
Accumulated other comprehensive income			2,559				2,338				1,083				2,183				1,012
Total shareholders' equity			424,720				373,393				364,058				357,168				349,789
Total liabilities & shareholders' equity		$	4,384,031			$	3,654,356			$	3,557,203			$	3,304,949			$	3,387,588

SmartFinancial, Inc. and Subsidiary 
Condensed Consolidated Financial Information - (unaudited) 
(dollars in thousands except share and per share data)

	Three Months Ended																	Nine Months Ended
	Sep			Jun				Mar			Dec			Sep				Sep			Sep
	2021			2021				2020			2020			2020				2021			2020
Interest income:
Loans and leases, including fees	$	31,674		$	28,323			$	28,018		$	28,594		$	28,621			$	88,015		$	83,718
Securities available-for-sale:
Taxable		832			916				724			609			546				2,472			1,813
Tax-exempt		331			304				259			306			364				894			1,064
Federal funds sold and other earning assets		474			309				291			303			327				1,074			1,206
Total interest income		33,311			29,852				29,292			29,812			29,858				92,455			87,801
Interest expense:
Deposits		2,153			2,248				2,331			2,580			2,897				6,733			11,016
Borrowings		121			123				117			142			334				360			674
Subordinated debt		655			584				584			584			584				1,823			1,751
Total interest expense		2,929			2,955				3,032			3,306			3,815				8,916			13,441
Net interest income		30,382			26,897				26,260			26,506			26,043				83,539			74,360
Provision for loan and lease losses		1,149			(5	)			67			—			2,634				1,211			8,683
Net interest income after provision for loan and lease losses		29,233			26,902				26,193			26,506			23,409				82,328			65,677
Noninterest income:
Service charges on deposit accounts		1,220			1,048				1,009			1,032			892				3,278			2,370
Gain (loss) on sale of securities, net		45			—				—			—			(9	)			45			6
Mortgage banking		994			1,105				1,139			1,331			1,029				3,238			2,544
Investment services		448			567				531			407			359				1,546			1,159
Insurance commissions		745			557				1,466			548			560				2,768			1,302
Interchange and debit card transaction fees		1,078			922				839			760			868				2,839			1,652
Other		1,779			944				707			898			422				3,429			1,417
Total noninterest income		6,309			5,143				5,691			4,976			4,121				17,143			10,450
Noninterest expense:
Salaries and employee benefits		13,594			12,203				10,869			11,516			11,032				36,666			31,395
Occupancy and equipment		2,536			2,294				2,341			2,256			2,186				7,170			6,093
FDIC insurance		525			371				371			297			534				1,266			894
Other real estate and loan related expense		407			506				602			516			643				1,514			1,535
Advertising and marketing		235			230				190			181			253				654			653
Data processing and technology		1,753			1,509				1,379			1,182			1,131				4,642			3,293
Professional services		810			849				641			786			594				2,300			2,172
Amortization of intangibles		711			441				444			571			402				1,597			1,169
Merger related and restructuring expenses		464			372				103			702			290				939			3,863
Other		2,274			2,022				2,524			1,946			2,102				6,822			5,699
Total noninterest expense		23,309			20,797				19,464			19,953			19,167				63,570			56,766
Income before income taxes		12,233			11,248				12,420			11,529			8,363				35,901			19,361
Income tax expense		2,633			2,470				2,664			2,499			1,968				7,767			4,059
Net income	$	9,600		$	8,778			$	9,756		$	9,030		$	6,395			$	28,134		$	15,302
Earnings per common share:
Basic	$	0.62		$	0.59			$	0.65		$	0.60		$	0.42			$	1.85		$	1.03
Diluted	$	0.61		$	0.58			$	0.65		$	0.59		$	0.42			$	1.84		$	1.02
Weighted average common shares outstanding:
Basic		15,557,528			15,003,657				15,011,573			15,109,298			15,160,579				15,192,919			14,903,757
Diluted		15,691,126			15,126,184				15,111,947			15,182,796			15,210,611				15,312,755			14,965,455

SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
YIELD ANALYSIS

		Three Months Ended
		September 30, 2021								June 30, 2021								September 30, 2020
		Average						Yield/		Average						Yield/		Average						Yield/
		Balance			Interest1			Cost1		Balance			Interest1			Cost1		Balance			Interest1			Cost1
Assets:
Loans and leases, including fees2		$	2,532,604		$	31,623		4.95	%	$	2,508,388		$	28,256		4.52	%	$	2,410,173		$	28,508		4.71	%
Loans held for sale			3,987			51		5.09	%		5,315			67		5.03	%		8,048			113		5.57	%
Taxable securities			187,032			832		1.77	%		164,935			916		2.23	%		132,642			546		1.64	%
Tax-exempt securities			87,621			477		2.16	%		89,296			453		2.04	%		88,129			515		2.32	%
Federal funds sold and other earning assets			802,712			474		0.23	%		531,125			309		0.23	%		438,785			327		0.30	%
Total interest-earning assets			3,613,956			33,457		3.67	%		3,299,059			30,001		3.65	%		3,077,777			30,009		3.88	%
Noninterest-earning assets			323,067								286,211								262,764
Total assets		$	3,937,023							$	3,585,270							$	3,340,541
Liabilities and Stockholders’ Equity:
Interest-bearing demand deposits		$	763,613			414		0.21	%	$	688,756			304		0.18	%	$	509,999			199		0.16	%
Money market and savings deposits			1,233,533			854		0.27	%		1,117,290			905		0.32	%		833,022			704		0.34	%
Time deposits			524,327			885		0.67	%		502,755			1,039		0.83	%		615,714			1,994		1.29	%
Total interest-bearing deposits			2,521,473			2,153		0.34	%		2,308,801			2,248		0.39	%		1,958,735			2,897		0.59	%
Borrowings3			80,188			121		0.60	%		81,525			123		0.61	%		319,265			334		0.42	%
Subordinated debt			40,211			654		6.47	%		39,375			584		5.95	%		39,311			584		5.91	%
Total interest-bearing liabilities			2,641,872			2,928		0.44	%		2,429,701			2,955		0.49	%		2,317,311			3,815		0.65	%
Noninterest-bearing deposits			877,831								768,399								649,489
Other liabilities			24,522								17,845								25,834
Total liabilities			3,544,225								3,215,945								2,992,634
Shareholders' equity			392,798								369,325								347,907
Total liabilities and shareholders' equity		$	3,937,023							$	3,585,270							$	3,340,541
Net interest income, taxable equivalent					$	30,529							$	27,046							$	26,194
Interest rate spread								3.23	%							3.16	%							3.22	%
Tax equivalent net interest margin								3.35	%							3.29	%							3.39	%
Percentage of average interest-earning assets to average interest-bearing liabilities								136.80	%							135.78	%							132.82	%
Percentage of average equity to average assets								9.98	%							10.30	%							10.41	%

¹ Taxable equivalent
² Includes average balance of $128,408, $266,114 and $295,045 in PPP loans for the quarters ended September 30, 2021, June 30, 2021, and September 30, 2020, respectively.  
³ Includes average balance of $237,780 in Paycheck Protection Program Liquidity Facility (“PPPLF”) funding for the quarter ended September 30, 2020. No PPPLF funding was used for the quarters ended September 30, 2021, and June 30, 2021.

SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
YIELD ANALYSIS

		Nine Months Ended
		September 30, 2021									September 30, 2020
		Average						Yield/			Average						Yield/
		Balance			Interest1			Cost1			Balance			Interest1			Cost1
Assets:
Loans and leases, including fees2		$	2,489,843		$	87,823			4.72	%	$	2,252,075		$	83,487		4.95	%
Loans held for sale			5,724			192			4.49	%		6,409			231		4.81	%
Taxable securities			163,005			2,472			2.03	%		123,895			1,813		1.95	%
Tax-exempt securities			89,244			1,339			2.01	%		81,604			1,486		2.43	%
Federal funds sold and other earning assets			584,970			1,074			0.25	%		296,449			1,206		0.54	%
Total interest-earning assets			3,332,786			92,900			3.73	%		2,760,432			88,223		4.27	%
Noninterest-earning assets			295,074									248,293
Total assets		$	3,627,860								$	3,008,725
Liabilities and Stockholders’ Equity:
Interest-bearing demand deposits		$	698,148			974			0.19	%	$	451,074			782		0.23	%
Money market and savings deposits			1,112,342			2,580			0.31	%		749,316			2,707		0.48	%
Time deposits			517,566			3,179			0.82	%		667,303			7,527		1.51	%
Total interest-bearing deposits			2,328,056			6,733			0.39	%		1,867,693			11,016		0.79	%
Borrowings3			81,177			360			0.59	%		203,202			674		0.44	%
Subordinated debt			39,650			1,823			6.15	%		39,290			1,751		5.95	%
Total interest-bearing liabilities			2,448,883			8,916			0.49	%		2,110,185			13,441		0.85	%
Noninterest-bearing deposits			782,960									537,860
Other liabilities			21,553									23,826
Total liabilities			3,253,396									2,671,871
Shareholders' equity			374,464									336,854
Total liabilities and shareholders' equity		$	3,627,860								$	3,008,725
Net interest income, taxable equivalent					$	83,984								$	74,782
Interest rate spread									3.24	%							3.42	%
Tax equivalent net interest margin									3.37	%							3.62	%
Percentage of average interest-earning assets to average interest-bearing liabilities									136.09	%							130.81	%
Percentage of average equity to average assets									10.32	%							11.20	%

¹ Taxable equivalent
² Includes average balance of $235,027 and $169,617 in PPP loans for the six months ended September 30, 2021, and 2020, respectively.
³ Includes average balance of $115,734 in Paycheck Protection Program Liquidity Facility (“PPPLF”) funding for the nine months ended September 30, 2020. No PPPLF funding was used for the nine months ended September 30, 2021.

SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
YIELD ANALYSIS

		Year Ended
		December 31, 2020									December 31,  2019
		Average						Yield/			Average						Yield/
		Balance			Interest1			Cost1			Balance			Interest1			Cost1
Assets:
Loans, including fees2		$	2,289,612		$	111,992			4.89	%	$	1,836,963		$	100,831		5.49	%
Loans held for sale			7,360			320			4.34	%		3,858			171		4.43	%
Taxable securities			122,900			2,423			1.97	%		129,705			3,289		2.54	%
Tax-exempt securities			83,765			1,941			2.32	%		56,458			1,972		3.49	%
Federal funds sold and other earning assets			308,843			1,509			0.49	%		110,380			2,646		2.40	%
Total interest-earning assets			2,812,480			118,185			4.20	%		2,137,364			108,909		5.10	%
Noninterest-earning assets			250,955									201,976
Total assets		$	3,063,435								$	2,339,340
Liabilities and Stockholders’ Equity:
Interest-bearing demand deposits		$	481,050			1,013			0.21	%	$	333,100			1,883		0.57	%
Money market and savings deposits			788,006			3,482			0.44	%		651,855			7,827		1.20	%
Time deposits			641,647			9,102			1.42	%		635,451			12,205		1.92	%
Total interest-bearing deposits			1,910,703			13,597			0.71	%		1,620,406			21,915		1.35	%
Borrowings3			177,204			816			0.46	%		21,526			319		1.48	%
Subordinated debt			39,301			2,334			5.94	%		39,216			2,341		5.97	%
Total interest-bearing liabilities			2,127,208			16,747			0.79	%		1,681,148			24,575		1.46	%
Noninterest-bearing deposits			571,282									343,611
Other liabilities			23,775									15,852
Total liabilities			2,722,265									2,040,611
Shareholders' equity			341,170									298,729
Total liabilities and shareholders' equity		$	3,063,435								$	2,339,340
Net interest income, taxable equivalent					$	101,438								$	84,334
Interest rate spread									3.41	%							3.64	%
Tax equivalent net interest margin									3.61	%							3.95	%
Percentage of average interest-earning assets to average interest-bearing liabilities									132.21	%							127.14	%
Percentage of average equity to average assets									11.14	%							12.77	%

 

¹ Taxable equivalent
² Includes average balance of $201,470 in PPP loans for the twelve months ended December 31, 2020.
³ Includes average balance of $91,190 in PPPLF funding for twelve months ended December 31, 2020.

 

SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)

		As of and for The Three Months Ended
		Sep			Jun			Mar			Dec			Sep
		2021			2021			2021			2020			2020
Composition of Loans and Leases:
Commercial real estate:
owner occupied		$	560,671		$	492,750		$	477,293		$	463,771		$	467,569
non-owner occupied			752,576			669,741			593,348			549,205			563,082
Commercial real estate, total			1,313,247			1,162,491			1,070,641			1,012,976			1,030,651
Commercial & industrial			469,739			496,114			686,010			634,446			644,498
Construction & land development			326,374			300,704			285,973			278,075			275,172
Consumer real estate			478,161			444,640			432,486			443,930			440,310
Leases			53,396			53,038			—			—			—
Consumer and other			11,746			11,331			12,019			12,816			13,426
Total loans and leases		$	2,652,663		$	2,468,318		$	2,487,129		$	2,382,243		$	2,404,057
Asset Quality and Additional Loan Data:
Nonperforming loans and leases		$	3,567		$	3,758		$	6,234		$	5,782		$	2,248
Other real estate owned			2,415			2,499			3,946			4,619			3,932
Other repossessed assets			77			199			—			—			—
Total nonperforming assets		$	6,059		$	6,456		$	10,180		$	10,401		$	6,180
Restructured loans and leases not included in nonperforming loans and leases		$	212		$	219		$	250		$	257		$	8
Net charge-offs to average loans and leases (annualized)			0.03	%		0.01	%		0.01	%		0.08	%		0.01	%
Allowance for loan and leases losses to loans and leases			0.73	%		0.74	%		0.74	%		0.77	%		0.78	%
Nonperforming loans and leases to total loans and leases, gross			0.13	%		0.15	%		0.25	%		0.24	%		0.09	%
Nonperforming assets to total assets			0.14	%		0.18	%		0.29	%		0.31	%		0.18	%
Acquired loan and lease fair value discount balance		$	13,001		$	12,982		$	12,951		$	14,467		$	15,141
Accretion income on acquired loans and leases			1,760			761			1,636			768			960
PPP net fees deferred balance			3,783			6,651			7,351			4,190			6,348
PPP net fees recognized			2,873			2,132			2,398			2,157			1,812
Capital Ratios:
Equity to Assets			9.69	%		10.22	%		10.23	%		10.81	%		10.33	%
Tangible common equity to tangible assets (Non-GAAP)1			7.47	%		7.93	%		8.00	%		8.41	%		7.97	%
SmartFinancial, Inc.2
Tier 1 leverage			8.36	%		8.10	%		8.55	%		8.69	%		8.78	%
Common equity Tier 1			10.85	%		10.63	%		11.29	%		11.61	%		11.33	%
Tier 1 capital			10.85	%		10.63	%		11.29	%		11.61	%		11.33	%
Total capital			12.92	%		12.80	%		13.62	%		14.07	%		13.81	%
SmartBank			Estimated3
Tier 1 leverage			9.20	%		8.75	%		9.33	%		9.58	%		9.74	%
Common equity Tier 1			11.95	%		11.50	%		12.31	%		12.79	%		12.57	%
Tier 1 capital			11.95	%		11.50	%		12.31	%		12.79	%		12.57	%
Total capital			12.60	%		12.19	%		13.05	%		13.57	%		13.37	%

¹Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures.
²All periods presented are estimated.
³ Current 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																Nine Months Ended
	Sep			Jun			Mar			Dec			Sep				Sep			Sep
	2021			2021			2021			2020			2020				2021			2020
Selected Performance Ratios (Annualized):
Return on average assets		0.97	%		0.98	%		1.18	%		1.11	%		0.76	%			1.04	%		0.68	%
Return on average shareholders' equity		9.70	%		9.53	%		10.96	%		10.15	%		7.31	%			10.05	%		6.07	%
Return on average tangible common equity¹		12.84	%		12.54	%		14.41	%		13.43	%		9.72	%			13.24	%		8.10	%
Noninterest income / average assets		0.64	%		0.58	%		0.69	%		0.61	%		0.49	%			0.63	%		0.46	%
Noninterest expense / average assets		2.35	%		2.33	%		2.35	%		2.46	%		2.28	%			2.34	%		2.52	%
Efficiency ratio		63.53	%		64.91	%		60.92	%		63.38	%		63.54	%			63.14	%		66.93	%
Operating Selected Performance Ratios (Annualized):
Operating return on average assets1		1.00	%		1.01	%		1.19	%		1.14	%		0.79	%			1.06	%		0.81	%
Operating PTPP return on average assets1		1.39	%		1.30	%		1.52	%		1.45	%		1.35	%			1.40	%		1.42	%
Operating return on average shareholders' equity1		10.01	%		9.83	%		11.05	%		10.34	%		7.57	%			10.28	%		7.20	%
Operating return on average tangible common equity1		13.26	%		12.93	%		14.53	%		13.69	%		10.06	%			13.56	%		9.60	%
Operating efficiency ratio1		62.09	%		63.46	%		60.32	%		60.86	%		62.25	%			61.96	%		62.07	%
Operating noninterest income / average assets1		0.63	%		0.58	%		0.69	%		0.56	%		0.49	%			0.63	%		0.46	%
Operating noninterest expense / average assets1		2.30	%		2.29	%		2.34	%		2.37	%		2.25	%			2.31	%		2.35	%
Selected Interest Rates and Yields:
Yield on loans and leases		4.95	%		4.52	%		4.67	%		4.72	%		4.71	%			4.72	%		4.95	%
Yield on earning assets, FTE		3.67	%		3.65	%		3.88	%		4.01	%		3.88	%			3.73	%		4.27	%
Cost of interest-bearing deposits		0.34	%		0.39	%		0.44	%		0.50	%		0.59	%			0.39	%		0.79	%
Cost of total deposits		0.25	%		0.29	%		0.33	%		0.38	%		0.44	%			0.29	%		0.61	%
Cost of interest-bearing liabilities		0.44	%		0.49	%		0.54	%		0.60	%		0.65	%			0.49	%		0.85	%
Net interest margin, FTE		3.35	%		3.29	%		3.48	%		3.57	%		3.39	%			3.37	%		3.62	%
Per Common Share:
Net income, basic	$	0.62		$	0.59		$	0.65		$	0.60		$	0.42			$	1.85		$	1.03
Net income, diluted		0.61			0.58			0.65			0.59			0.42				1.84			1.02
Operating earnings, basic¹		0.64			0.60			0.65			0.61			0.44				1.90			1.22
Operating earnings, diluted¹		0.63			0.60			0.65			0.61			0.44				1.88			1.21
Book value		25.28			24.71			24.10			23.64			22.96				25.28			22.96
Tangible book value¹		19.03			18.69			18.39			17.92			17.27				19.03			17.27
Common shares outstanding		16,801,447			15,109,736			15,104,536			15,107,214			15,233,227				16,801,447			15,233,227

¹See reconciliation of Non-GAAP measures

SmartFinancial, Inc. and Subsidiary
Condensed Consolidated Financial Information - (unaudited)
(dollars in thousands)
NON-GAAP RECONCILIATIONS

		Three Months Ended																					Nine Months Ended
		Sep				Jun				Mar				Dec				Sep					Sep				Sep
		2021				2021				2021				2020				2020					2021				2020
Operating Earnings:
Net income (GAAP)		$	9,600			$	8,778			$	9,756			$	9,030			$	6,395				$	28,134			$	15,302
Noninterest income:
Securities gains (losses), net			(45	)			—				—				—				9					(45	)			(6	)
ADECA termination proceeds			—				—				—				(465	)			—					—				—
Noninterest expenses:
Merger related and restructuring expenses			464				372				103				702				290					939				3,863
Income taxes:
Income tax effect of adjustments			(108	)			(96	)			(27	)			(62	)			(77	)				(231	)			(1,009	)
Operating earnings (Non-GAAP)		$	9,911			$	9,054			$	9,832			$	9,205			$	6,617				$	28,797			$	18,150
Operating earnings per common share (Non-GAAP):
Basic		$	0.64			$	0.60			$	0.65			$	0.61			$	0.44				$	1.90			$	1.22
Diluted			0.63				0.60				0.65				0.61				0.44					1.88				1.21
Operating Noninterest Income:
Noninterest income (GAAP)		$	6,309			$	5,143			$	5,691			$	4,976			$	4,121				$	17,143			$	10,450
Securities gains (losses), net			(45	)			—				—				—				9					(45	)			(6	)
ADECA termination proceeds			—				—				—				(465	)			—					—				—
Operating noninterest income (Non-GAAP)		$	6,264			$	5,143			$	5,691			$	4,511			$	4,130				$	17,098			$	10,444
Operating noninterest income (Non-GAAP)/average assets1			0.63		%		0.58		%		0.69		%		0.56		%		0.49		%			0.63		%		0.46		%
Operating Noninterest Expense:
Noninterest expense (GAAP)		$	23,309			$	20,797			$	19,464			$	19,953			$	19,167				$	63,570			$	56,766
Merger related and restructuring expenses			(464	)			(372	)			(103	)			(702	)			(290	)				(939	)			(3,863	)
Operating noninterest expense (Non-GAAP)		$	22,845			$	20,425			$	19,361			$	19,251			$	18,877				$	62,631			$	52,903
Operating noninterest expense (Non-GAAP)/average assets2			2.30		%		2.29		%		2.34		%		2.37		%		2.25		%			2.31		%		2.35		%
Operating Pre-tax Pre-provision ("PTPP") Earnings:
Net interest income (GAAP)		$	30,382			$	26,897			$	26,260			$	26,506			$	26,043				$	83,539			$	74,360
Operating noninterest income			6,264				5,143				5,691				4,511				4,130					17,098				10,444
Operating noninterest expense			(22,845	)			(20,425	)			(19,361	)			(19,251	)			(18,877	)				(62,631	)			(52,903	)
Operating PTPP earnings (Non-GAAP)		$	13,801			$	11,615			$	12,590			$	11,766			$	11,296				$	38,006			$	31,901
Non-GAAP Return Ratios:
Operating return on average assets (Non-GAAP)3			1.00		%		1.01		%		1.19		%		1.14		%		0.79		%			1.06		%		0.81		%
Operating PTPP return on average assets (Non-GAAP)4			1.39		%		1.30		%		1.52		%		1.45		%		1.35		%			1.40		%		1.42		%
Return on average tangible common equity (Non-GAAP)5			12.84		%		12.54		%		14.41		%		13.43		%		9.72		%			13.24		%		8.10		%
Operating return on average shareholders' equity (Non-GAAP)6			10.01		%		9.83		%		11.05		%		10.34		%		7.57		%			10.28		%		7.20		%
Operating return on average tangible common equity (Non-GAAP)7			13.26		%		12.93		%		14.53		%		13.69		%		10.06		%			13.56		%		9.60		%
Operating Efficiency Ratio:
Efficiency ratio (GAAP)			63.53		%		64.91		%		60.92		%		63.38		%		63.54		%			63.14		%		66.93		%
Adjustment for taxable equivalent yields			(0.25	)	%		(0.30	)	%		(0.28	)	%		(0.30	)	%		(0.32	)	%			(0.28	)	%		(0.33	)	%
Adjustment for securities gains (losses)			(0.08	)	%		—		%		—		%		—		%		0.02		%			(0.03	)	%		(0.01	)	%
Adjustment for merger related income and costs			(1.11	)	%		(1.15	)	%		(0.32	)	%		(2.22	)	%		(0.99	)	%			(0.87	)	%		(4.52	)	%
Operating efficiency ratio (Non-GAAP)			62.09		%		63.46		%		60.32		%		60.86		%		62.25		%			61.96		%		62.07		%

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 PTPP return on average assets (Non-GAAP) is the annualized operating PTPP 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																				Nine Months Ended
		Sep				Jun				Mar				Dec				Sep				Sep				Sep
		2021				2021				2021				2020				2020				2021				2020
Tangible Common Equity:
Shareholders' equity (GAAP)		$	424,720			$	373,393			$	364,058			$	357,168			$	349,789			$	424,720			$	349,789
Less goodwill and other intangible assets			104,930				90,966				86,350				86,471				86,710				104,930				86,710
Tangible common equity (Non-GAAP)		$	319,790			$	282,427			$	277,708			$	270,697			$	263,079			$	319,790			$	263,079
Average Tangible Common Equity:
Average shareholders' equity (GAAP)		$	392,798			$	369,325			$	360,919			$	354,026			$	347,907			$	374,464			$	336,854
Less average goodwill and other intangible assets			96,250				88,551				86,424				86,561				86,206				90,445				84,361
Average tangible common equity (Non-GAAP)		$	296,548			$	280,774			$	274,495			$	267,465			$	261,701			$	284,019			$	252,493
Tangible Book Value per Common Share:
Book value per common share (GAAP)		$	25.28			$	24.71			$	24.10			$	23.64			$	22.96			$	25.28			$	22.96
Adjustment due to goodwill and other intangible assets			(6.25	)			(6.02	)			(5.71	)			(5.72	)			(5.69	)			(6.25	)			(5.69	)
Tangible book value per common share (Non-GAAP)1		$	19.03			$	18.69			$	18.39			$	17.92			$	17.27			$	19.03			$	17.27
Tangible Common Equity to Tangible Assets:
Total Assets		$	4,384,031			$	3,654,356			$	3,557,203			$	3,304,949			$	3,387,588			$	4,384,031			$	3,387,588
Less goodwill and other intangibles			104,930				90,966				86,350				86,471				86,710				104,930				86,710
Tangible Assets (Non-GAAP):		$	4,279,101			$	3,563,390			$	3,470,853			$	3,218,478			$	3,300,878			$	4,279,101			$	3,300,878
Tangible common equity to tangible assets (Non-GAAP)			7.47	%			7.93	%			8.00	%			8.41	%			7.97	%			7.47	%			7.97	%

¹Tangible book value per share is computed by dividing total stockholder's equity, less goodwill and other intangible assets by common shares outstanding.

FAQ

What were SmartFinancial's earnings for Q3 2021?

SmartFinancial reported a net income of $9.6 million, or $0.61 per diluted share, for Q3 2021.

How much did SmartFinancial's net income increase compared to Q3 2020?

Net income increased by 50% from $6.4 million in Q3 2020.

What is the net organic loan growth reported by SmartFinancial?

SmartFinancial achieved net organic loan growth of $52 million in Q3 2021.

What was the tangible book value per share for SmartFinancial as of Q3 2021?

The tangible book value per share was $19.03 at the end of Q3 2021.

What significant acquisition did SmartFinancial complete in Q3 2021?

SmartFinancial completed the acquisition of Sevier County Bancshares in Q3 2021.

What were SmartFinancial's total assets at the end of Q3 2021?

Total assets were $4.38 billion at the end of Q3 2021.