Equibles

8-K

SMARTFINANCIAL INC. (SMBK)

8-K 2022-04-25 For: 2022-04-25
View Original
Added on April 04, 2026

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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

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FORM 8-K

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CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

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Date of earliest event reported: April 25, 2022

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SMARTFINANCIAL, INC.

(Exact name of registrant as specified in its charter)

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Tennessee 001-37661 62-1173944
(State or other jurisdiction of incorporation) (Commission File Number) (IRS Employer Identification No.)

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5401 Kingston Pike , Suite 600
Knoxville , Tennessee 37919
(Address of Principal Executive Offices) (Zip Code)

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( 865 ) 437-5700 ****
(Registrant’s telephone number, including area code)
(Former name or former address, if changed since last report)

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Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

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☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

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Title of each class ​ Trading<br>Symbol(s) ​ Name of Exchange on which Registered
Common Stock, par value $1.00 per share ​ SMBK ​ The Nasdaq Stock Market

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Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

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Emerging growth company ☐

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If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the

Exchange Act. ☐

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Item 2.02 Results of Operations and Financial Condition.

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On April 25, 2022, SmartFinancial, Inc. (“SmartFinancial”) issued a press release (the “Press Release”) reporting earnings results for its first quarter ending March 31, 2022. A copy of the Press Release is attached hereto as Exhibit 99.1.

In accordance with General Instructions B.2 of Form 8K, the information in Item 2.02 of this report (including Exhibit 99.1) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure.

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SmartFinancial is filing an investor slide presentation that it intends to review in conjunction with its earnings release conference call on April 26, 2022. The slides are attached hereto as Exhibit 99.2.

In accordance with General Instructions B.2 of Form 8K, the information in Item 7.01 of this report (including Exhibit 99.2) shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

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Item 9.01 ​ Financial Statements and Exhibits
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Exhibit No. Description
99.1 ​ Press release announcing first quarter 2022 financial results dated April 25, 2022
99.2 ​ First quarter 2022 investor presentation
104 ​ Cover Page Interactive Data File (embedded within the Inline XBRL document)

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SIGNATURES

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Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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SMARTFINANCIAL, INC.
Date: April 25, 2022
/s/ William Y. Carroll, Jr.
William Y. Carroll, Jr.
President & Chief Executive Officer

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Exhibit 99.1

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1Q 2022

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SmartFinancial Announces Results for the First Quarter 2022

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Highlights for the First Quarter of 2022

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● Operating earnings^1^ of $8.6 million, or $0.51 per diluted common share, for the first quarter of 2022
● Net organic loan and lease growth of over $136.9 million - 21% annualized quarter-over-quarter increase
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● Non-time deposit growth of over $195.0 million – 23% annualized quarter-over-quarter increase
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● Credit quality remains solid with nonperforming assets to total assets of 0.11%
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KNOXVILLE, TN – April 25, 2022 - SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NASDAQ: SMBK), today announced net income of $8.3 million, or $0.49 per diluted common share, for the first quarter of 2022, compared to net income of $9.8 million, or $0.65 per diluted common share, for the first quarter of 2021, and compared to prior quarter net income of $6.7 million, or $0.40 per diluted common share.  Operating earnings^1^, which excludes securities gains, merger related and restructuring expenses and non-operating items, totaled $8.6 million, or $0.51 per diluted common share, in the first quarter of 2022, compared to $9.8 million, or $0.65 per diluted common share, in the first quarter of 2021, and compared to $8.7 million, or $0.52 per diluted common share, in the fourth quarter of 2021.

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Billy Carroll, President & CEO, stated: “I am extremely pleased with our results for the first quarter.  Both loans and deposits grew at an outstanding pace, as our sales team executed our organic growth strategy.  Our wealth platform, insurance platform and equipment finance group all also had strong performance.  Earnings performance was on target and while keeping an eye on inflationary pressure in our economy, we remain bullish on the company’s 2022 outlook.”

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SmartFinancial's Chairman, Miller Welborn, concluded: “2022 has certainly started on a good note for us. Just as we projected and forecasted our plan is on track. The execution at all levels shows our commitment and discipline to be a top performing bank”.

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Net Interest Income and Net Interest Margin

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Net interest income was $30.1 million for the first quarter of 2022, compared to $29.9 million for the prior quarter.  Average earning assets totaled $4.22 billion, an increase of $139.1 million.  The growth in average earnings assets was primarily driven by an increase in average securities of $276.1 million and average loans and leases of $54.3 million, offset by a decrease in average interest-earning cash of $190.1 million, primarily from the purchase of securities.  Average interest-bearing liabilities increased $121.8 million, related to continued core deposit growth.

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The tax equivalent net interest margin was 2.91% for the first quarter of 2022, compared to 2.92% for the prior quarter. The tax equivalent net interest margin was positively impacted by several factors, mainly the continued deployment of excess cash and cash equivalents into loans and securities.  However, the deployment of total cash and cash equivalents was partially offset by a quarter-over-quarter deposit increase of over $169.4 million. Additionally, the yield on interest-earning assets was negatively impacted due to a decrease quarter-over-quarter in loan discount and Payroll Protection Program (“PPP”) fee accretion of $727 thousand.

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The yield on interest-bearing liabilities decreased to 0.36% for the first quarter of 2022 compared to 0.39% for the prior quarter. The cost of average interest-bearing deposits was 0.27% for the first quarter of 2022 compared to 0.29% for the prior quarter, a decrease of 2 basis points. The lower cost of average deposits was attributable to the growth of non-time deposits and the continued maturation and repricing of time deposits. The cost of total deposits for the first quarter of 2022 was 0.20% compared to 0.22% in the prior quarter.

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

^1^ Non-GAAP measures. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP reconciliation Graphic

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​ ​ ​ ​ ​ ​ ​ ​
​ ​ Three Months Ended ​ ​ ​
​ ​ Mar ​ Dec ​ Increase ​
Selected Interest Rates and Yields ​ 2022 ​ 2021 ​ (Decrease) ​
Yield on loans and leases ​ 4.40 % 4.53 % (0.13) %
Yield on earning assets, FTE ​ 3.18 % 3.20 % (0.02) %
Cost of interest-bearing deposits ​ 0.27 % 0.29 % (0.02) %
Cost of total deposits ​ 0.20 % 0.22 % (0.02) %
Cost of interest-bearing liabilities ​ 0.36 % 0.39 % (0.03) %
Net interest margin, FTE ​ 2.91 % 2.92 % (0.01) %

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Provision for Loan and Lease Losses and Credit Quality

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At March 31, 2022, the allowance for loan and lease losses was $20.1 million.  The allowance for loan and lease losses to total loans and leases was 0.72% as of March 31, 2022, and December 31, 2021, respectively.  For the Company’s originated loans and leases, the allowance for loan and lease losses to originated loans and leases, less PPP loans, was 0.71% as of March 31, 2022, compared to 0.74% as of December 31, 2021.  The remaining discounts on the acquired loan and lease portfolio totaled $14.9 million, or 3.64% of acquired loans and leases as of March 31, 2022.

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

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​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ ​ Three Months Ended ​ ​ ​ ​
​ ​ ​ ​ Mar ​ ​ Dec ​ ​ ​ ​
​ Provision for Loan and Lease Losses Rollforward ​ ​ 2022 ​ ​ 2021 ​ ​ Change ​
​ Beginning balance ​ $ 19,352 ​ $ 19,295 ​ $ 57 ​
​ Charge-offs ​ ​ (488) ​ ​ (499) ​ ​ 11 ​
​ Recoveries ​ ​ 208 ​ ​ 134 ​ ​ 74 ​
​ Net charge-offs ​ ​ (280) ​ ​ (365) ​ ​ 85 ​
​ Provision ​ ​ 1,006 ​ ​ 422 ​ ​ (584) ​
​ Ending balance ​ $ 20,078 ​ $ 19,352 ​ $ 726 ​
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​ Allowance for loan losses to total loans and leases, gross ​ ​ 0.72 % ​ 0.72 % ​ - %

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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.

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Nonperforming loans and leases as a percentage of total loans and leases was 0.12% as of March 31, 2022, and December 31, 2021, respectively.  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 0.11% as of March 31, 2022, and December 31, 2021, respectively.

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

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​ ​ ​ Three Months Ended ​ ​ ​ ​
​ ​ ​ ​ Mar ​ ​ Dec ​ ​ Increase ​
​ Credit Quality ​ ​ 2022 ​ ​ 2021 ​ ​ (Decrease) ​
​ Nonaccrual loans and leases ​ $ 3,342 ​ $ 3,124 ​ $ 218 ​
​ Loans and leases past due 90 days or more and still accruing ​ ​ - ​ ​ 64 ​ ​ (64) ​
​ Total nonperforming loans and leases ​ ​ 3,342 ​ ​ 3,188 ​ ​ 154 ​
​ Other real estate owned ​ ​ 1,612 ​ ​ 1,780 ​ ​ (168) ​
​ Other repossessed assets ​ ​ 27 ​ ​ 90 ​ ​ (63) ​
​ Total nonperforming assets ​ $ 4,981 ​ $ 5,058 ​ $ (77) ​
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​ Nonperforming loans and leases to total loans and leases, gross ​ ​ 0.12 % ​ 0.12 % ​ - %
​ Nonperforming assets to total assets ​ ​ 0.11 % ​ 0.11 % ​ - %

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Noninterest Income

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Noninterest income increased $305 thousand to $7.1 million for the first quarter of 2022 compared to $6.8 million for the prior quarter.  During the first quarter of 2022, the primary components of the changes in noninterest income were as follows:

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● Increase in investment services, income led by the new Gulf Coast advisory team’s continued client onboarding;
● Increase in insurance commissions, driven by seasonality;
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● Decrease in interchange and debit card transaction fees, related to lower volume; and
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● Decrease in other, primarily from the gain on sale of credit card portfolio in prior quarter.
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The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands):

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​ ​ Three Months Ended ​ ​ ​
​ ​ ​ Mar ​ ​ Dec ​ ​ Increase
Noninterest Income ​ ​ 2022 ​ ​ 2021 ​ ​ (Decrease)
Service charges on deposit accounts ​ $ 1,319 ​ $ 1,372 ​ $ (53)
Gain (loss) on sale of securities, net ​ ​ - ​ ​ - ​ ​ -
Mortgage banking income ​ ​ 834 ​ ​ 803 ​ ​ 31
Investment services ​ ​ 1,070 ​ ​ 621 ​ ​ 449
Insurance commissions ​ ​ 901 ​ ​ 517 ​ ​ 384
Interchange and debit card transaction fees ​ ​ 1,284 ​ ​ 1,445 ​ ​ (161)
Other ​ ​ 1,703 ​ ​ 2,048 ​ ​ (345)
Total noninterest income ​ $ 7,111 ​ $ 6,806 ​ $ 305

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Noninterest Expense

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Noninterest expense decreased $2.1 million to $25.7 million for the first quarter of 2022 compared to $27.8 million for the prior quarter. During the first quarter of 2022, the primary components of the changes in noninterest expense were as follows:

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● Increase in other real estate and loan related expenses, primarily attributable to increased activity in loan related production;
● Increase in advertising and marketing, related to additional advertising and public relations across the Company;
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● Decrease in data processing and technology as a result of continued efficiency efforts;
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● Increase in professional services, related to additional services performed during the quarter; and
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● Decrease in other expense, related to year-end expenses in prior period and continued efficiency efforts.
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The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands):

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​ ​ Three Months Ended ​ ​ ​
​ ​ ​ Mar ​ ​ Dec ​ ​ Increase
Noninterest Expense ​ ​ 2022 ​ ​ 2021 ​ ​ (Decrease)
Salaries and employee benefits ​ $ 15,046 ​ $ 14,990 ​ $ 56
Occupancy and equipment ​ ​ 3,059 ​ ​ 3,026 ​ ​ 33
FDIC insurance ​ ​ 641 ​ ​ 567 ​ ​ 74
Other real estate and loan related expenses ​ ​ 729 ​ ​ 583 ​ ​ 146
Advertising and marketing ​ ​ 369 ​ ​ 176 ​ ​ 193
Data processing and technology ​ ​ 1,586 ​ ​ 1,722 ​ ​ (136)
Professional services ​ ​ 1,242 ​ ​ 847 ​ ​ 395
Amortization of intangibles ​ ​ 637 ​ ​ 660 ​ ​ (23)
Merger related and restructuring expenses ​ ​ 439 ​ ​ 2,762 ​ ​ (2,323)
Other ​ ​ 1,970 ​ ​ 2,490 ​ ​ (520)
Total noninterest expense ​ $ 25,718 ​ $ 27,823 ​ $ (2,105)

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Income Tax Expense

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Income tax expense was $2.2 million for the first quarter of 2022, an increase of $485 thousand, compared to $1.8 million for the prior quarter.

The effective tax rate was 21.38% for the first quarter of 2022 and 20.93% for the prior quarter.

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Balance Sheet Trends

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Total assets at March 31, 2022 were $4.72 billion compared with $4.61 billion at December 31, 2021.  The increase of $107.0 million is primarily attributable to increases in securities of $270.6 million, loans and leases of $112.6 million, and other assets of $6.3 million, offset by a decrease in cash and cash equivalents of $281.1 million, primarily from the purchase of securities.

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Total liabilities increased to $4.30 billion at March 31, 2022 from $4.18 billion at December 31, 2021.  The increase of $116.4 million was primarily from organic deposit growth of $169.4 million, offset by a decrease in borrowings of $50.9 million.

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Shareholders' equity at March 31, 2022 totaled $420.0 million, a decrease of $9.4 million, from December 31, 2021.  The decrease in shareholders' equity was primarily from the change in accumulated other comprehensive income (loss) of $17.0 million and dividends paid of $1.2 million, offset by net income of $8.3 million for the three months ended March 31, 2022.  Tangible book value per share^1^ was $18.64 at March 31, 2022, compared to $19.26 at December 31, 2021.  Tangible common equity^1^ as a percentage of tangible assets^1^  was 6.82% at March 31, 2022, compared with 7.18% at December 31, 2021.

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^1^ Non-GAAP measures. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP reconciliation

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

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​ ​ Mar ​ Dec ​ Increase ​
Selected Balance Sheet Information ​ 2022 ​ 2021 ​ (Decrease) ​
Total assets ​ $ 4,718,579 ​ $ 4,611,579 ​ $ 107,000 ​
Total liabilities ​ ​ 4,298,537 ​ ​ 4,182,149 ​ ​ 116,388 ​
Total equity ​ ​ 420,042 ​ ​ 429,430 ​ ​ (9,388) ​
Securities ​ ​ 830,015 ​ ​ 559,422 ​ ​ 270,593 ​
Loans and leases ​ ​ 2,806,026 ​ ​ 2,693,397 ​ ​ 112,629 ​
Deposits ​ ​ 4,191,353 ​ ​ 4,021,938 ​ ​ 169,415 ​
Borrowings ​ ​ 36,713 ​ ​ 87,585 ​ ​ (50,872) ​

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Conference Call Information

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SmartFinancial issued this earnings release for the first quarter of 2022 on Monday, April 25, 2022, and will host a conference call on Tuesday, April 26, 2022, at 10:00 a.m. ET.  To access this interactive teleconference, dial (844) 200-6205 or (646) 904-5544 and entering the access code, 293033.  A replay of the conference call will be available through June 28, 2022, by dialing (866) 813-9403 or (929) 458-6194 and entering the access code, 552729.  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.

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About SmartFinancial, Inc.

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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.

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Source ​
SmartFinancial, Inc. ​
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Investor Contacts ​
Billy Carroll ​
President & CEO ​
(865) 868-0613   billy.carroll@smartbank.com ​
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Ron Gorczynski ​
Executive Vice President, Chief Financial Officer ​
(865) 437-5724 ron.gorczynski@smartbank.com ​
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Media Contact ​
Kelley Fowler ​
Senior Vice President, Public Relations & Marketing ​
(865) 868-0611    kelley.fowler@smartbank.com ​
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Non-GAAP Financial Measures

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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 and merger related and restructuring expenses.  Operating return on average assets is the annualized operating earnings (Non-GAAP) divided by average assets.  Operating pre-tax pre-provision return on average assets is the annualized operating pre-tax pre-provision income earnings (Non-GAAP) by average assets. Operating return on average shareholders' equity is the annualized operating earnings (Non-GAAP) divided by average equity. Return on average tangible common equity is the annualized net income divided by average tangible common equity (Non-GAAP). Operating return on average tangible common equity is the annualized operating earnings (Non-GAAP) 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.  Operating pre-tax pre-provision earnings is net interest income plus operating noninterest income (Non-GAAP) less operating noninterest expense (Non-GAAP).  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 (Non-GAAP) and average tangible common equity (Non-GAAP) excludes goodwill and other intangible assets from shareholders' equity and average shareholders' equity, respectively.  Tangible book value (Non-GAAP) is tangible common equity (Non-GAAP) divided by common shares outstanding.  Tangible assets (Non-GAAP) 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.

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Forward-Looking Statements

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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 and related variants 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; (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 and related variants; (15) the impact of the COVID-19 pandemic and related variants on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (16) higher inflation and its impacts; (17) the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine; and (18) 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.

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SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

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​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ Ending Balances
​ ​ Mar Dec Sep Jun Mar
​ ​ 2022 ​ 2021 ​ 2021 ​ 2021 ​ 2021
Assets: ​ ​ ​ ​ ​ ​ ​
Cash and cash equivalents ​ $ 763,968 ​ $ 1,045,077 ​ $ 1,091,160 ​ $ 673,515 ​ $ 556,701
Securities available-for-sale, at fair value ​ 540,483 ​ 482,453 ​ 339,343 ​ 250,817 ​ 250,937
Securities held-to-maturity, at amortized cost ​ ​ 289,532 ​ ​ 76,969 ​ ​ — ​ ​ — ​ ​ —
Other investments ​ 16,499 ​ 16,494 ​ 14,972 ​ 14,584 ​ 14,728
Loans held for sale ​ 5,894 ​ 5,103 ​ 3,418 ​ 4,334 ​ 7,870
Loans and leases ​ 2,806,026 ​ 2,693,397 ​ 2,652,663 ​ 2,468,318 ​ 2,487,129
Less: Allowance for loan and lease losses ​ (20,078) ​ (19,352) ​ (19,295) ​ (18,310) ​ (18,370)
Loans and leases, net ​ 2,785,948 ​ 2,674,045 ​ 2,633,368 ​ 2,450,008 ​ 2,468,759
Premises and equipment, net ​ 84,793 ​ 85,958 ​ 85,346 ​ 72,314 ​ 72,697
Other real estate owned ​ 1,612 ​ 1,780 ​ 2,415 ​ 2,499 ​ 3,946
Goodwill and other intangibles, net ​ 105,215 ​ 105,852 ​ 104,930 ​ 90,966 ​ 86,350
Bank owned life insurance ​ 80,074 ​ 79,619 ​ 79,145 ​ 72,013 ​ 71,586
Other assets ​ 44,561 ​ 38,229 ​ 29,934 ​ 23,306 ​ 23,629
Total assets ​ $ 4,718,579 ​ $ 4,611,579 ​ $ 4,384,031 ​ $ 3,654,356 ​ $ 3,557,203
Liabilities: ​ ​ ​ ​ ​
Deposits: ​ ​ ​ ​ ​
Noninterest-bearing demand ​ $ 1,093,933 ​ $ 1,055,125 ​ $ 977,180 ​ $ 807,560 ​ $ 777,968
Interest-bearing demand ​ 975,272 ​ 899,158 ​ 847,007 ​ 702,470 ​ 683,887
Money market and savings ​ 1,573,101 ​ 1,493,007 ​ 1,389,393 ​ 1,140,029 ​ 1,073,941
Time deposits ​ 549,047 ​ 574,648 ​ 585,692 ​ 489,413 ​ 512,417
Total deposits ​ 4,191,353 ​ 4,021,938 ​ 3,799,272 ​ 3,139,472 ​ 3,048,213
Borrowings ​ 36,713 ​ 87,585 ​ 88,748 ​ 78,834 ​ 82,642
Subordinated debt ​ 41,952 ​ 41,930 ​ 41,909 ​ 39,388 ​ 39,367
Other liabilities ​ 28,519 ​ 30,696 ​ 29,382 ​ 23,269 ​ 22,923
Total liabilities ​ 4,298,537 ​ 4,182,149 ​ 3,959,311 ​ 3,280,963 ​ 3,193,145
Shareholders' Equity: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Common stock ​ 16,893 ​ 16,803 ​ 16,801 ​ 15,110 ​ 15,105
Additional paid-in capital ​ 293,376 ​ 292,937 ​ 292,760 ​ 252,039 ​ 251,836
Retained earnings ​ 125,329 ​ 118,247 ​ 112,600 ​ 103,906 ​ 96,034
Accumulated other comprehensive income (loss) ​ (15,556) ​ 1,443 ​ 2,559 ​ 2,338 ​ 1,083
Total shareholders' equity ​ 420,042 ​ 429,430 ​ 424,720 ​ 373,393 ​ 364,058
Total liabilities & shareholders' equity ​ $ 4,718,579 ​ $ 4,611,579 ​ $ 4,384,031 ​ $ 3,654,356 ​ $ 3,557,203

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8

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands except share and per share data)

​

​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ Three Months Ended
​ Mar Dec Sep Jun Mar
​ 2022 ​ 2021 ​ 2021 ​ 2021 ​ 2021 ​
Interest income: ​ ​ ​ ​ ​ ​
Loans and leases, including fees $ 29,643 ​ $ 30,567 ​ $ 31,674 ​ $ 28,323 ​ $ 28,018 ​
Investment securities: ​ ​ ​ ​ ​
Taxable 2,418 ​ 1,341 ​ 832 ​ 916 ​ 724 ​
Tax-exempt 368 ​ 322 ​ 331 ​ 304 ​ 259 ​
Federal funds sold and other earning assets 486 ​ 547 ​ 474 ​ 309 ​ 291 ​
Total interest income 32,915 ​ 32,777 ​ 33,311 ​ 29,852 ​ 29,292 ​
Interest expense: ​ ​ ​ ​ ​
Deposits 2,014 ​ 2,116 ​ 2,153 ​ 2,248 ​ 2,331 ​
Borrowings 157 ​ 180 ​ 121 ​ 123 ​ 117 ​
Subordinated debt 626 ​ 626 ​ 655 ​ 584 ​ 584 ​
Total interest expense 2,797 ​ 2,922 ​ 2,929 ​ 2,955 ​ 3,032 ​
Net interest income 30,118 ​ 29,855 ​ 30,382 ​ 26,897 ​ 26,260 ​
Provision for loan and lease losses 1,006 ​ 422 ​ 1,149 ​ (5) ​ 67 ​
Net interest income after provision for loan and lease losses 29,112 ​ 29,433 ​ 29,233 ​ 26,902 ​ 26,193 ​
Noninterest income: ​ ​ ​ ​ ​
Service charges on deposit accounts 1,319 ​ 1,372 ​ 1,220 ​ 1,048 ​ 1,009 ​
Gain (loss) on sale of securities, net — ​ — ​ 45 ​ — ​ — ​
Mortgage banking 834 ​ 803 ​ 994 ​ 1,105 ​ 1,139 ​
Investment services 1,070 ​ 621 ​ 448 ​ 567 ​ 531 ​
Insurance commissions 901 ​ 517 ​ 745 ​ 557 ​ 1,466 ​
Interchange and debit card transaction fees 1,284 ​ 1,445 ​ 1,078 ​ 922 ​ 839 ​
Other 1,703 ​ 2,048 ​ 1,779 ​ 944 ​ 707 ​
Total noninterest income 7,111 ​ 6,806 ​ 6,309 ​ 5,143 ​ 5,691 ​
Noninterest expense: ​ ​ ​ ​ ​
Salaries and employee benefits 15,046 ​ 14,990 ​ 13,594 ​ 12,203 ​ 10,869 ​
Occupancy and equipment 3,059 ​ 3,026 ​ 2,536 ​ 2,294 ​ 2,341 ​
FDIC insurance 641 ​ 567 ​ 525 ​ 371 ​ 371 ​
Other real estate and loan related expense 729 ​ 583 ​ 407 ​ 506 ​ 602 ​
Advertising and marketing 369 ​ 176 ​ 235 ​ 230 ​ 190 ​
Data processing and technology 1,586 ​ 1,722 ​ 1,753 ​ 1,509 ​ 1,379 ​
Professional services 1,242 ​ 847 ​ 810 ​ 849 ​ 641 ​
Amortization of intangibles 637 ​ 660 ​ 711 ​ 441 ​ 444 ​
Merger related and restructuring expenses 439 ​ 2,762 ​ 464 ​ 372 ​ 103 ​
Other 1,970 ​ 2,490 ​ 2,274 ​ 2,022 ​ 2,524 ​
Total noninterest expense 25,718 ​ 27,823 ​ 23,309 ​ 20,797 ​ 19,464 ​
Income before income taxes 10,505 ​ 8,416 ​ 12,233 ​ 11,248 ​ 12,420 ​
Income tax expense 2,246 ​ 1,761 ​ 2,633 ​ 2,470 ​ 2,664 ​
Net income $ 8,259 ​ $ 6,655 ​ $ 9,600 ​ $ 8,778 ​ $ 9,756 ​
Earnings per common share: ​ ​ ​ ​ ​
Basic $ 0.49 ​ $ 0.40 ​ $ 0.62 ​ $ 0.59 ​ $ 0.65 ​
Diluted $ 0.49 ​ $ 0.40 ​ $ 0.61 ​ $ 0.58 ​ $ 0.65 ​
Weighted average common shares outstanding: ​ ​ ​ ​ ​
Basic 16,718,371 ​ 16,699,010 ​ 15,557,528 ​ 15,003,657 ​ 15,011,573 ​
Diluted 16,858,288 ​ 16,846,315 ​ 15,691,126 ​ 15,126,184 ​ 15,111,947 ​

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9

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

YIELD ANALYSIS

​

​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ Three Months Ended
​ ​ March 31, 2022 ​ December 31, 2021 ​ March 31, 2021
​ Average ​ ​ Yield/ Average ​ ​ Yield/ Average ​ Yield/
​ ​ Balance ​ Interest^1^ ​ Cost^1^ ​ Balance ​ Interest^1^ ​ Cost^1^ ​ Balance ​ Interest^1^ ​ Cost^1^
Assets: ​ ​ ​ ​ ​ ​ ​
Loans and leases, including fees^2^ ​ $ 2,724,206 ​ $ 29,570 4.40 % $ 2,669,943 ​ $ 30,510 4.53 % $ 2,428,499 ​ $ 27,943 4.67 %
Loans held for sale ​ ​ 3,890 ​ ​ 73 ​ 7.62 % ​ 5,116 ​ ​ 57 ​ 4.44 % ​ 7,913 ​ ​ 75 ​ 3.82 %
Taxable securities ​ 612,980 ​ 2,418 1.60 % 339,371 ​ 1,341 1.58 % 136,492 ​ 724 2.15 %
Tax-exempt securities ​ 105,516 ​ 533 2.05 % 102,989 ​ 479 1.85 % 90,849 ​ 409 1.82 %
Federal funds sold and other earning assets ​ 775,834 ​ 486 0.25 % 965,899 ​ 547 0.22 % 417,144 ​ 291 0.28 %
Total interest-earning assets ​ 4,222,426 ​ 33,080 3.18 % 4,083,318 ​ 32,934 3.20 % 3,080,897 ​ 29,442 3.88 %
Noninterest-earning assets ​ 381,807 ​ ​ ​ ​ 383,783 ​ ​ 275,272 ​ ​
Total assets ​ $ 4,604,233 ​ ​ ​ ​ ​ ​ $ 4,467,101 ​ ​ $ 3,356,169 ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Liabilities and Stockholders’ Equity: ​ ​ ​ ​ ​ ​ ​ ​
Interest-bearing demand deposits ​ $ 921,835 ​ 446 ​ 0.20 % $ 853,763 ​ 403 0.18 % $ 641,214 ​ 256 0.16 %
Money market and savings deposits ​ 1,523,188 ​ 859 ​ 0.23 % 1,428,472 ​ 920 0.26 % 983,893 ​ 821 0.34 %
Time deposits ​ 561,207 ​ 709 ​ 0.51 % 583,165 ​ 793 0.54 % 526,062 ​ 1,254 0.97 %
Total interest-bearing deposits ​ 3,006,230 ​ 2,014 ​ 0.27 % 2,865,400 ​ 2,116 0.29 % 2,151,169 ​ 2,331 0.44 %
Borrowings ​ 69,769 ​ 157 ​ 0.91 % 88,828 ​ 180 0.80 % 81,837 ​ 117 0.58 %
Subordinated debt ​ 41,938 ​ 626 ​ 6.05 % 41,917 ​ 625 5.93 % 39,354 ​ 584 6.01 %
Total interest-bearing liabilities ​ 3,117,937 ​ 2,797 ​ 0.36 % 2,996,145 ​ 2,921 0.39 % 2,272,360 ​ 3,032 0.54 %
Noninterest-bearing deposits ​ 1,028,298 ​ ​ ​ ​ ​ 1,016,438 ​ ​ 700,962 ​ ​
Other liabilities ​ 30,053 ​ ​ ​ ​ ​ 27,710 ​ ​ 21,928 ​ ​
Total liabilities ​ 4,176,288 ​ ​ ​ ​ ​ 4,040,293 ​ ​ 2,995,250 ​ ​
Shareholders' equity ​ 427,945 ​ ​ ​ ​ ​ 426,808 ​ ​ 360,919 ​ ​
Total liabilities and shareholders' equity ​ $ 4,604,233 ​ ​ ​ ​ ​ ​ $ 4,467,101 ​ ​ $ 3,356,169 ​ ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net interest income, taxable equivalent ​ ​ ​ ​ $ 30,283 ​ ​ ​ ​ $ 30,013 ​ ​ $ 26,410 ​
Interest rate spread ​ ​ ​ ​ ​ 2.82 % ​ 2.81 % ​ 3.33 %
Tax equivalent net interest margin ​ ​ ​ ​ ​ 2.91 % ​ 2.92 % ​ 3.48 %
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Percentage of average interest-earning assets to average interest-bearing liabilities ​ ​ ​ ​ ​ 135.42 % ​ 136.29 % ​ 135.58 %
Percentage of average equity to average assets ​ ​ ​ ​ ​ 9.29 % ​ 9.55 % ​ 10.75 %

​

^1^Taxable equivalent

^2^Includes average balance of $53,966, $80,501 and $312,582 in PPP loans for the quarters ended March 31, 2022, December 31, 2021, and March 31, 2021, respectively.

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10

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

​

​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ As of and for The Three Months Ended
​ Mar Dec Sep Jun Mar
​ ​ 2022 ​ 2021 ​ 2021 ​ 2021 ​ 2021
Composition of Loans and Leases: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Commercial real estate: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
owner occupied ​ $ 612,675 ​ $ 590,064 ​ $ 560,671 ​ $ 492,750 ​ $ 477,293 ​
non-owner occupied ​ 863,181 ​ 794,092 ​ 752,576 ​ 669,741 ​ 593,348 ​
Commercial real estate, total ​ 1,475,856 ​ 1,384,156 ​ 1,313,247 ​ 1,162,491 ​ 1,070,641 ​
Commercial & industrial ​ 461,153 ​ 488,024 ​ 469,739 ​ 496,114 ​ 686,010 ​
Construction & land development ​ 314,654 ​ 278,386 ​ 326,374 ​ 300,704 ​ 285,973 ​
Consumer real estate ​ 483,229 ​ 477,272 ​ 478,161 ​ 444,640 ​ 432,486 ​
Leases ​ ​ 59,892 ​ ​ 53,708 ​ ​ 53,396 ​ ​ 53,038 ​ ​ — ​
Consumer and other ​ 11,242 ​ 11,851 ​ 11,746 ​ 11,331 ​ 12,019 ​
Total loans and leases ​ $ 2,806,026 ​ $ 2,693,397 ​ $ 2,652,663 ​ $ 2,468,318 ​ $ 2,487,129 ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Asset Quality and Additional Loan Data: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Nonperforming loans and leases ​ $ 3,342 ​ $ 3,188 ​ $ 3,567 ​ $ 3,758 ​ $ 6,234 ​
Other real estate owned ​ 1,612 ​ 1,780 ​ 2,415 ​ 2,499 ​ 3,946 ​
Other repossessed assets ​ ​ 27 ​ ​ 90 ​ ​ 77 ​ ​ 199 ​ ​ — ​
Total nonperforming assets ​ $ 4,981 ​ $ 5,058 ​ $ 6,059 ​ $ 6,456 ​ $ 10,180 ​
Restructured loans and leases not included in nonperforming loans and leases ​ $ 625 ​ $ 206 ​ $ 212 ​ $ 219 ​ $ 250 ​
Net charge-offs to average loans and leases (annualized) ​ 0.04 % 0.05 % 0.03 % 0.01 % 0.01 %
Allowance for loan and leases losses to loans and leases ​ 0.72 % 0.72 % 0.73 % 0.74 % 0.74 %
Nonperforming loans and leases to total loans and leases, gross ​ 0.12 % 0.12 % 0.13 % 0.15 % 0.25 %
Nonperforming assets to total assets ​ 0.11 % 0.11 % 0.14 % 0.18 % 0.29 %
Acquired loan and lease fair value discount balance ​ $ 14,913 ​ $ 15,483 ​ $ 13,001 ​ $ 12,982 ​ $ 12,951 ​
Accretion income on acquired loans and leases ​ 389 ​ 457 ​ 1,760 ​ 761 ​ 1,636 ​
PPP net fees deferred balance ​ ​ 1,112 ​ ​ 2,038 ​ ​ 3,783 ​ ​ 6,651 ​ ​ 7,351 ​
PPP net fees recognized ​ ​ 1,066 ​ ​ 1,725 ​ ​ 2,873 ​ ​ 2,132 ​ ​ 2,398 ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Capital Ratios: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Equity to Assets ​ 8.90 % 9.31 % 9.69 % 10.22 % 10.23 %
Tangible common equity to tangible assets (Non-GAAP)^1^ ​ 6.82 % 7.18 % 7.47 % 7.93 % 8.00 %
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
SmartFinancial, Inc.^2^ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Tier 1 leverage ​ 7.41 % 7.45 % 8.36 % 8.10 % 8.55 %
Common equity Tier 1 ​ 10.30 % 10.56 % 10.85 % 10.63 % 11.29 %
Tier 1 capital ​ 10.30 % 10.56 % 10.85 % 10.63 % 11.29 %
Total capital ​ 12.22 % 12.55 % 12.92 % 12.80 % 13.62 %
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
SmartBank ​ **** Estimated^3^ ​ ​ ​ ​ ​ ​ ​ ​ ​
Tier 1 leverage ​ 8.24 % 8.23 % 9.20 % 8.75 % 9.33 %
Common equity Tier 1 ​ 11.46 % 11.66 % 11.94 % 11.50 % 12.31 %
Tier 1 capital ​ 11.46 % 11.66 % 11.94 % 11.50 % 12.31 %
Total capital ​ 12.08 % 12.29 % 12.59 % 12.19 % 13.05 %

​

^1^Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures.

^2^All periods presented are estimated.

^3^ Current period capital ratios are estimated as of the date of this earnings release.

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11

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands except share and per share data)

​

​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ As of and for The ​
​ Three Months Ended
​ Mar Dec Sep Jun Mar
​ 2022 ​ 2021 ​ 2021 ​ 2021 ​ 2021 ​
Selected Performance Ratios (Annualized): ​ ​ ​ ​ ​ ​
Return on average assets ​ 0.73 % ​ 0.59 % ​ 0.97 % ​ 0.98 % ​ 1.18 %
Return on average shareholders' equity ​ 7.83 % ​ 6.19 % ​ 9.70 % ​ 9.53 % ​ 10.96 %
Return on average tangible common equity¹ ​ 10.39 % ​ 8.18 % ​ 12.84 % ​ 12.54 % ​ 14.41 %
Noninterest income / average assets ​ 0.63 % ​ 0.60 % ​ 0.64 % ​ 0.58 % ​ 0.69 %
Noninterest expense / average assets ​ 2.27 % ​ 2.47 % ​ 2.35 % ​ 2.33 % ​ 2.35 %
Efficiency ratio ​ 69.08 % ​ 75.89 % ​ 63.53 % ​ 64.91 % ​ 60.92 %
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Operating Selected Performance Ratios (Annualized): ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Operating return on average assets^1^ ​ 0.76 % ​ 0.77 % ​ 1.00 % ​ 1.01 % ​ 1.19 %
Operating PTPP return on average assets^1^ ​ 1.05 % ​ 1.03 % ​ 1.39 % ​ 1.30 % ​ 1.52 %
Operating return on average shareholders' equity^1^ ​ 8.14 % ​ 8.09 % ​ 10.01 % ​ 9.83 % ​ 11.05 %
Operating return on average tangible common equity^1^ ​ 10.80 % ​ 10.70 % ​ 13.26 % ​ 12.93 % ​ 14.53 %
Operating efficiency ratio^1^ ​ 67.60 % ​ 68.07 % ​ 62.10 % ​ 63.46 % ​ 60.31 %
Operating noninterest income / average assets^1^ ​ 0.63 % ​ 0.60 % ​ 0.63 % ​ 0.58 % ​ 0.69 %
Operating noninterest expense / average assets^1^ ​ 2.23 % ​ 2.23 % ​ 2.30 % ​ 2.29 % ​ 2.34 %
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Selected Interest Rates and Yields: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Yield on loans and leases ​ 4.40 % ​ 4.53 % ​ 4.95 % ​ 4.52 % ​ 4.67 %
Yield on earning assets, FTE ​ 3.18 % ​ 3.20 % ​ 3.67 % ​ 3.65 % ​ 3.88 %
Cost of interest-bearing deposits ​ 0.27 % ​ 0.29 % ​ 0.34 % ​ 0.39 % ​ 0.44 %
Cost of total deposits ​ 0.20 % ​ 0.22 % ​ 0.25 % ​ 0.29 % ​ 0.33 %
Cost of interest-bearing liabilities ​ 0.36 % ​ 0.39 % ​ 0.44 % ​ 0.49 % ​ 0.54 %
Net interest margin, FTE ​ 2.91 % ​ 2.92 % ​ 3.35 % ​ 3.29 % ​ 3.48 %
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Per Common Share: ​ ​ ​ ​ ​ ​
Net income, basic $ 0.49 ​ $ 0.40 ​ $ 0.62 ​ $ 0.59 ​ $ 0.65 ​
Net income, diluted 0.49 ​ 0.40 ​ 0.61 ​ 0.58 ​ 0.65 ​
Operating earnings, basic¹ 0.51 ​ 0.52 ​ 0.64 ​ 0.60 ​ 0.65 ​
Operating earnings, diluted¹ 0.51 ​ 0.52 ​ 0.63 ​ 0.60 ​ 0.65 ​
Book value 24.86 ​ 25.56 ​ 25.28 ​ 24.71 ​ 24.10 ​
Tangible book value¹ 18.64 ​ 19.26 ​ 19.03 ​ 18.69 ​ 18.39 ​
Common shares outstanding 16,893,282 ​ 16,802,990 ​ 16,801,447 ​ 15,109,736 ​ 15,104,536 ​

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¹Non-GAAP measure. See reconciliation of Non-GAAP measures.

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12

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

NON-GAAP RECONCILIATIONS

​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ Three Months Ended
​ Mar Dec Sep Jun Mar
​ ​ 2022 ​ 2021 ​ 2021 ​ 2021 ​ 2021 ​
Operating Earnings: ​ ​ ​ ​ ​ ​
Net income (GAAP) ​ $ 8,259 ​ $ 6,655 ​ $ 9,600 ​ $ 8,778 ​ $ 9,756 ​
Noninterest income: ​ ​ ​ ​ ​ ​
Securities gains (losses), net ​ — ​ — ​ (45) ​ — ​ — ​
Noninterest expenses: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Merger related and restructuring expenses ​ 439 ​ 2,762 ​ 464 ​ 372 ​ 103 ​
Income taxes: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Income tax effect of adjustments ​ (113) ​ (713) ​ (108) ​ (96) ​ (27) ​
Operating earnings (Non-GAAP) ​ $ 8,585 ​ $ 8,704 ​ $ 9,911 ​ $ 9,054 ​ $ 9,832 ​
Operating earnings per common share (Non-GAAP): ​ ​ ​ ​ ​ ​
Basic ​ $ 0.51 ​ $ 0.52 ​ $ 0.64 ​ $ 0.60 ​ $ 0.65 ​
Diluted ​ 0.51 ​ 0.52 ​ 0.63 ​ 0.60 ​ 0.65 ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Operating Noninterest Income: ​ ​ ​ ​ ​ ​
Noninterest income (GAAP) ​ $ 7,111 ​ $ 6,806 ​ $ 6,309 ​ $ 5,143 ​ $ 5,691 ​
Securities gains (losses), net ​ — ​ — ​ (45) ​ — ​ — ​
Operating noninterest income (Non-GAAP) ​ $ 7,111 ​ $ 6,806 ​ $ 6,264 ​ $ 5,143 ​ $ 5,691 ​
Operating noninterest income (Non-GAAP)/average assets^1^ ​ 0.63 % 0.60 % 0.63 % 0.58 % 0.69 %
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Operating Noninterest Expense: ​ ​ ​ ​ ​ ​
Noninterest expense (GAAP) ​ $ 25,718 ​ $ 27,823 ​ $ 23,309 ​ $ 20,797 ​ $ 19,464 ​
Merger related and restructuring expenses ​ (439) ​ (2,762) ​ (464) ​ (372) ​ (103) ​
Operating noninterest expense (Non-GAAP) ​ $ 25,279 ​ $ 25,061 ​ $ 22,845 ​ $ 20,425 ​ $ 19,361 ​
Operating noninterest expense (Non-GAAP)/average assets^2^ ​ 2.23 % 2.23 % 2.30 % 2.29 % 2.34 %
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Operating Pre-tax Pre-provision ("PTPP") Earnings: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Net interest income (GAAP) ​ $ 30,118 ​ $ 29,855 ​ $ 30,382 ​ $ 26,897 ​ $ 26,260 ​
Operating noninterest income (Non-GAAP) ​ ​ 7,111 ​ ​ 6,806 ​ ​ 6,264 ​ ​ 5,143 ​ ​ 5,691 ​
Operating noninterest expense (Non-GAAP) ​ ​ (25,279) ​ ​ (25,061) ​ ​ (22,845) ​ ​ (20,425) ​ ​ (19,361) ​
Operating PTPP earnings (Non-GAAP) ​ $ 11,950 ​ $ 11,600 ​ $ 13,801 ​ $ 11,615 ​ $ 12,590 ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Non-GAAP Return Ratios: ​ ​ ​ ​ ​ ​
Operating return on average assets (Non-GAAP)^3^ ​ 0.76 % 0.77 % 1.00 % 1.01 % 1.19 %
Operating PTPP return on average assets (Non-GAAP)^4^ ​ ​ 1.05 % ​ 1.03 % ​ 1.39 % ​ 1.30 % ​ 1.52 %
Return on average tangible common equity (Non-GAAP)^5^ ​ 10.39 % 8.18 % 12.84 % 12.54 % 14.41 %
Operating return on average shareholders' equity (Non-GAAP)^6^ ​ 8.14 % 8.09 % 10.01 % 9.83 % 11.05 %
Operating return on average tangible common equity (Non-GAAP)^7^ ​ 10.80 % 10.70 % 13.26 % 12.93 % 14.53 %
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Operating Efficiency Ratio: ​ ​ ​ ​ ​ ​
Efficiency ratio (GAAP) ​ 69.08 % 75.89 % 63.53 % 64.91 % 60.92 %
Adjustment for taxable equivalent yields ​ (0.31) % (0.32) % (0.25) % (0.30) % (0.28) %
Adjustment for securities gains (losses) ​ — % — % (0.08) % — % — %
Adjustment for merger related income and costs ​ (1.17) % (7.50) % (1.10) % (1.15) % (0.33) %
Operating efficiency ratio (Non-GAAP) ​ 67.60 % 68.07 % 62.10 % 63.46 % 60.31 %

​

^1^Operating noninterest income (Non-GAAP) is annualized and divided by average assets.

^2^Operating noninterest expense (Non-GAAP) is annualized and divided by average assets.

^3^Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets.

^4^Operating PTPP return on average assets (Non-GAAP) is the annualized operating PTPP earnings (Non-GAAP) divided by average assets.

^5^Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP).

^6^Operating return on average shareholders’ equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average equity.

^7^Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP).

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13

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

NON-GAAP RECONCILIATIONS

​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
​ ​ Three Months Ended ​
​ Mar Dec Sep Jun Mar ​
​ ​ 2022 ​ 2021 ​ 2021 ​ 2021 ​ 2021 ​
Tangible Common Equity: ​ ​ ​ ​ ​ ​
Shareholders' equity (GAAP) ​ $ 420,042 ​ $ 429,430 ​ $ 424,720 ​ $ 373,393 ​ $ 364,058 ​
Less goodwill and other intangible assets ​ 105,215 ​ 105,852 ​ 104,930 ​ 90,966 ​ 86,350 ​
Tangible common equity (Non-GAAP) ​ $ 314,827 ​ $ 323,578 ​ $ 319,790 ​ $ 282,427 ​ $ 277,708 ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Average Tangible Common Equity: ​ ​ ​ ​ ​ ​
Average shareholders' equity (GAAP) ​ $ 427,945 ​ $ 426,808 ​ $ 392,798 ​ $ 369,325 ​ $ 360,919 ​
Less average goodwill and other intangible assets ​ 105,617 ​ 104,193 ​ 96,250 ​ 88,551 ​ 86,424 ​
Average tangible common equity (Non-GAAP) ​ $ 322,328 ​ $ 322,615 ​ $ 296,548 ​ $ 280,774 ​ $ 274,495 ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Tangible Book Value per Common Share: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Book value per common share (GAAP) ​ $ 24.86 ​ $ 25.56 ​ $ 25.28 ​ $ 24.71 ​ $ 24.10 ​
Adjustment due to goodwill and other intangible assets ​ ​ (6.23) ​ ​ (6.30) ​ ​ (6.25) ​ ​ (6.02) ​ ​ (5.71) ​
Tangible book value per common share (Non-GAAP)^1^ ​ $ 18.64 ​ $ 19.26 ​ $ 19.03 ​ $ 18.69 ​ $ 18.39 ​
​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Tangible Common Equity to Tangible Assets: ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​ ​
Total Assets ​ $ 4,718,579 ​ $ 4,611,579 ​ $ 4,384,031 ​ $ 3,654,356 ​ $ 3,557,203 ​
Less goodwill and other intangibles ​ ​ 105,215 ​ ​ 105,852 ​ ​ 104,930 ​ ​ 90,966 ​ ​ 86,350 ​
Tangible Assets (Non-GAAP): ​ $ 4,613,364 ​ $ 4,505,727 ​ $ 4,279,101 ​ $ 3,563,390 ​ $ 3,470,853 ​
Tangible common equity to tangible assets (Non-GAAP) ​ ​ 6.82% ​ ​ 7.18% ​ ​ 7.47% ​ ​ 7.93% ​ ​ 8.00% ​

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

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14

Exhibit 99.2

1<br>INVESTOR CALL<br>1Q 2022<br>April 26, 2022, 10:00am ET<br>Webcast:<br>www.smartbank.com<br>(Investor Relations)<br>Audio Only: 1<br>-<br>844<br>-<br>200<br>-<br>6205<br>Access Code: 293033<br>Miller Welborn<br>Chairman of the Board<br>Billy Carroll<br>President & CEO<br>Ron Gorczynski<br>CFO
D<br>ISCLOSURES<br>2<br>Forward<br>-<br>Looking<br>Statements<br>This<br>presentation<br>may<br>contain<br>statements<br>that<br>are<br>based<br>on<br>management’s<br>current<br>estimates<br>or<br>expectations<br>of<br>future<br>events<br>or<br>future<br>results,<br>and<br>that<br>may<br>be<br>deemed<br>to<br>constitute<br>forward<br>-<br>looking<br>statements<br>as<br>defined<br>under<br>the<br>Private<br>Securities<br>Litigation<br>Reform<br>Act<br>of<br>1995<br>..<br>These<br>statements,<br>including<br>statements<br>regarding<br>the<br>effects<br>of<br>the<br>COVID<br>-<br>19<br>pandemic<br>on<br>SmartFinancial<br>Inc<br>..<br>’s<br>(“SmartFinancial”)<br>business<br>and<br>financial<br>results<br>and<br>conditions,<br>are<br>not<br>historical<br>in<br>nature<br>and<br>can<br>generally<br>be<br>identified<br>by<br>such<br>words<br>as<br>“expect,”<br>“anticipate,”<br>“intend,”<br>“plan,”<br>“believe,”<br>“seek,”<br>“may,”<br>“estimate,”<br>and<br>similar<br>expressions<br>..<br>All<br>forward<br>-<br>looking<br>statements<br>are<br>subject<br>to<br>risks,<br>uncertainties,<br>and<br>other<br>factors<br>that<br>may<br>cause<br>the<br>actual<br>results<br>of<br>SmartFinancial<br>to<br>differ<br>materially<br>from<br>future<br>results<br>expressed<br>or<br>implied<br>by<br>such<br>forward<br>-<br>looking<br>statements<br>..<br>Such<br>risks,<br>uncertainties,<br>and<br>other<br>factors<br>include,<br>among<br>others,<br>(<br>1<br>)<br>the<br>risk<br>of<br>litigation<br>and<br>reputational<br>risk<br>associated<br>with<br>historic<br>acquisition<br>activity<br>;<br>(<br>2<br>)<br>the<br>risk<br>that<br>cost<br>savings<br>and<br>revenue<br>synergies<br>from<br>recently<br>completed<br>acquisitions<br>may<br>not<br>be<br>realized<br>or<br>may<br>take<br>longer<br>than<br>anticipated<br>to<br>realize<br>;<br>(<br>3<br>)<br>disruption<br>from<br>recently<br>completed<br>acquisitions<br>with<br>customer,<br>supplier,<br>employee,<br>or<br>other<br>business<br>relationships<br>;<br>(<br>4<br>)<br>our<br>ability<br>to<br>successfully<br>integrate<br>the<br>businesses<br>acquired<br>as<br>part<br>of<br>previous<br>acquisitions<br>with<br>the<br>business<br>of<br>SmartBank<br>;<br>(<br>5<br>)<br>risks<br>related<br>to<br>the<br>acquisition<br>of<br>Sevier<br>County<br>Bancshares,<br>Inc<br>..<br>(“SCB”)<br>;<br>(<br>6<br>)<br>the<br>risk<br>that<br>the<br>anticipated<br>benefits<br>from<br>the<br>acquisition<br>of<br>SCB<br>may<br>not<br>be<br>realized<br>in<br>the<br>time<br>frame<br>anticipated<br>;<br>(<br>7<br>)<br>changes<br>in<br>management’s<br>plans<br>for<br>the<br>future<br>;<br>(<br>8<br>)<br>prevailing,<br>or<br>changes<br>in,<br>economic<br>or<br>political<br>conditions,<br>particularly<br>in<br>our<br>market<br>areas<br>;<br>(<br>9<br>)<br>credit<br>risk<br>associated<br>with<br>our<br>lending<br>activities<br>;<br>(<br>10<br>)<br>changes<br>in<br>interest<br>rates,<br>loan<br>demand,<br>real<br>estate<br>values,<br>or<br>competition<br>;<br>(<br>11<br>)<br>changes<br>in<br>accounting<br>principles,<br>policies,<br>or<br>guidelines<br>;<br>(<br>12<br>)<br>changes<br>in<br>applicable<br>laws,<br>rules,<br>or<br>regulations<br>;<br>(<br>13<br>)<br>adverse<br>results<br>from<br>current<br>or<br>future<br>litigation,<br>regulatory<br>examinations<br>or<br>other<br>legal<br>and/or<br>regulatory<br>actions,<br>including<br>as<br>a<br>result<br>of<br>the<br>Company’s<br>participation<br>in<br>and<br>execution<br>of<br>government<br>programs<br>related<br>to<br>the<br>COVID<br>-<br>19<br>pandemic<br>and<br>related<br>variants<br>;<br>(<br>14<br>)<br>the<br>continued<br>impact<br>of<br>the<br>COVID<br>-<br>19<br>pandemic<br>and<br>related<br>variants<br>on<br>the<br>Company’s<br>assets,<br>business,<br>cash<br>flows,<br>financial<br>condition,<br>liquidity,<br>prospects<br>and<br>results<br>of<br>operations<br>;<br>(<br>15<br>)<br>higher<br>inflation<br>and<br>its<br>impacts<br>;<br>(<br>16<br>)<br>the<br>effects<br>of<br>war<br>or<br>other<br>conflicts<br>including<br>the<br>impacts<br>related<br>to<br>or<br>resulting<br>from<br>Russia’s<br>military<br>action<br>in<br>Ukraine<br>;<br>and<br>(<br>17<br>)<br>other<br>general<br>competitive,<br>economic,<br>political,<br>and<br>market<br>factors,<br>including<br>those<br>affecting<br>our<br>business,<br>operations,<br>pricing,<br>products,<br>or<br>services<br>..<br>These<br>and<br>other<br>factors<br>that<br>could<br>cause<br>results<br>to<br>differ<br>materially<br>from<br>those<br>described<br>in<br>the<br>forward<br>-<br>looking<br>statements<br>can<br>be<br>found<br>in<br>SmartFinancial’s<br>most<br>recent<br>annual<br>report<br>on<br>Form<br>10<br>-<br>K,<br>quarterly<br>reports<br>on<br>Form<br>10<br>-<br>Q,<br>and<br>current<br>reports<br>on<br>Form<br>8<br>-<br>K,<br>in<br>each<br>case<br>filed<br>with<br>or<br>furnished<br>to<br>the<br>Securities<br>and<br>Exchange<br>Commission<br>(the<br>“SEC”)<br>and<br>available<br>on<br>the<br>SEC’s<br>website<br>(www<br>..<br>sec<br>..<br>gov)<br>..<br>Undue<br>reliance<br>should<br>not<br>be<br>placed<br>on<br>forward<br>-<br>looking<br>statements<br>..<br>SmartFinancial<br>disclaims<br>any<br>obligation<br>to<br>update<br>or<br>revise<br>any<br>forward<br>-<br>looking<br>statements<br>contained<br>in<br>this<br>release,<br>which<br>speak<br>only<br>as<br>of<br>the<br>date<br>hereof,<br>whether<br>as<br>a<br>result<br>of<br>new<br>information,<br>future<br>events,<br>or<br>otherwise<br>..<br>Non<br>-<br>GAAP<br>Financial<br>Measures<br>Statements<br>included<br>in<br>this<br>presentation<br>include<br>Non<br>-<br>GAAP<br>financial<br>measures<br>and<br>should<br>be<br>read<br>along<br>with<br>the<br>accompanying<br>tables,<br>which<br>provide<br>a<br>reconciliation<br>of<br>Non<br>-<br>GAAP<br>financial<br>measures<br>to<br>GAAP<br>financial<br>measures<br>..<br>SmartFinancial<br>management<br>uses<br>several<br>Non<br>-<br>GAAP<br>financial<br>measures,<br>including<br>:<br>(i)<br>operating<br>earnings,<br>(ii)<br>operating<br>return<br>on<br>average<br>assets,<br>(iii)<br>operating<br>return<br>on<br>average<br>shareholder<br>equity,<br>(iv)<br>return<br>on<br>average<br>tangible<br>common<br>equity,<br>(v)<br>operating<br>return<br>on<br>average<br>tangible<br>common<br>equity,<br>(vi)<br>operating<br>efficiency<br>ratio<br>;<br>(vii)<br>tangible<br>common<br>equity<br>;<br>(viii)<br>average<br>tangible<br>common<br>equity<br>;<br>(ix)<br>tangible<br>book<br>value<br>;<br>(x)<br>operating<br>pre<br>-<br>tax<br>pre<br>-<br>provision<br>earnings<br>;<br>(xi)<br>operating<br>noninterest<br>income<br>;<br>(xii)<br>operating<br>noninterest<br>expense<br>;<br>(xiii)<br>tangible<br>assets<br>;<br>and<br>ratios<br>derived<br>therefrom,<br>in<br>its<br>analysis<br>of<br>the<br>company's<br>performance<br>..<br>Operating<br>earnings<br>excludes<br>the<br>following<br>from<br>net<br>income<br>:<br>securities<br>gains<br>and<br>losses,<br>merger<br>related<br>and<br>restructuring<br>expenses,<br>and<br>the<br>income<br>tax<br>effect<br>of<br>adjustments<br>..<br>Operating<br>return<br>on<br>average<br>assets<br>is<br>the<br>annualized<br>operating<br>earnings<br>(Non<br>-<br>GAAP)<br>divided<br>by<br>average<br>assets<br>..<br>Operating<br>return<br>on<br>average<br>shareholder<br>equity<br>is<br>the<br>annualized<br>operating<br>earnings<br>(Non<br>-<br>GAAP)<br>divided<br>by<br>average<br>equity<br>..<br>Return<br>on<br>average<br>tangible<br>common<br>equity<br>is<br>the<br>annualized<br>net<br>income<br>divided<br>by<br>average<br>tangible<br>common<br>equity<br>(Non<br>-<br>GAAP)<br>..<br>Operating<br>return<br>on<br>average<br>tangible<br>common<br>equity<br>is<br>the<br>annualized<br>operating<br>earnings<br>(Non<br>-<br>GAAP)<br>divided<br>by<br>average<br>tangible<br>common<br>equity<br>(Non<br>-<br>GAAP)<br>..<br>The<br>operating<br>efficiency<br>ratio<br>includes<br>an<br>adjustment<br>for<br>taxable<br>equivalent<br>yields<br>and<br>excludes<br>securities<br>gains<br>and<br>losses<br>and<br>merger<br>related<br>and<br>restructuring<br>expenses<br>from<br>the<br>efficiency<br>ratio<br>..<br>Tangible<br>common<br>equity<br>and<br>average<br>tangible<br>common<br>equity<br>exclude<br>goodwill<br>and<br>other<br>intangible<br>assets<br>from<br>shareholders’<br>equity<br>and<br>average<br>shareholders’<br>equity<br>..<br>Tangible<br>book<br>value<br>excludes<br>goodwill<br>and<br>other<br>intangible<br>assets<br>less<br>shareholders’<br>equity<br>divided<br>by<br>common<br>shares<br>outstanding<br>..<br>Operating<br>pre<br>-<br>tax<br>pre<br>-<br>provision<br>earnings<br>is<br>net<br>interest<br>income<br>plus<br>operating<br>noninterest<br>income<br>(Non<br>-<br>GAAP)<br>less<br>operating<br>noninterest<br>expense<br>(Non<br>-<br>GAAP)<br>..<br>Operating<br>noninterest<br>income<br>excludes<br>the<br>following<br>from<br>noninterest<br>income<br>:<br>securities<br>gains<br>and<br>losses<br>..<br>Operating<br>noninterest<br>expense<br>excludes<br>the<br>following<br>from<br>noninterest<br>expense<br>:<br>prior<br>year<br>adjustments<br>to<br>salaries,<br>merger<br>related<br>and<br>restructuring<br>expenses<br>and<br>certain<br>franchise<br>tax<br>true<br>-<br>up<br>expenses<br>..<br>Tangible<br>assets<br>excludes<br>goodwill<br>and<br>other<br>intangibles<br>from<br>total<br>assets<br>..<br>Management<br>believes<br>that<br>Non<br>-<br>GAAP<br>financial<br>measures<br>provide<br>additional<br>useful<br>information<br>that<br>allows<br>investors<br>to<br>evaluate<br>the<br>ongoing<br>performance<br>of<br>the<br>company<br>and<br>provide<br>meaningful<br>comparisons<br>to<br>its<br>peers<br>..<br>Management<br>believes<br>these<br>non<br>-<br>GAAP<br>financial<br>measures<br>also<br>enhance<br>investors'<br>ability<br>to<br>compare<br>period<br>-<br>to<br>-<br>period<br>financial<br>results<br>and<br>allow<br>investors<br>and<br>company<br>management<br>to<br>view<br>our<br>operating<br>results<br>excluding<br>the<br>impact<br>of<br>items<br>that<br>are<br>not<br>reflective<br>of<br>the<br>underlying<br>operating<br>performance<br>..<br>Non<br>-<br>GAAP<br>financial<br>measures<br>should<br>not<br>be<br>considered<br>as<br>an<br>alternative<br>to<br>any<br>measure<br>of<br>performance<br>or<br>financial<br>condition<br>as<br>promulgated<br>under<br>GAAP,<br>and<br>investors<br>should<br>consider<br>SmartFinancial's<br>performance<br>and<br>financial<br>condition<br>as<br>reported<br>under<br>GAAP<br>and<br>all<br>other<br>relevant<br>information<br>when<br>assessing<br>the<br>performance<br>or<br>financial<br>condition<br>of<br>the<br>company<br>..<br>Non<br>-<br>GAAP<br>financial<br>measures<br>have<br>limitations<br>as<br>analytical<br>tools,<br>and<br>investors<br>should<br>not<br>consider<br>them<br>in<br>isolation<br>or<br>as<br>a<br>substitute<br>for<br>analysis<br>of<br>the<br>results<br>or<br>financial<br>condition<br>as<br>reported<br>under<br>GAAP<br>..
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$0.65<br>$0.40<br>$0.49<br>$0.65<br>$0.52<br>$0.51<br>1Q21<br>4Q21<br>1Q22<br>GAAP EPS<br>O<br>PERATING<br>EPS<br>$24.10<br>$25.56<br>$24.86<br>$18.39<br>$19.26<br>$18.64<br>1Q21<br>4Q21<br>1Q22<br>BV P<br>ER<br>S<br>HARE<br>TBV P<br>ER<br>S<br>HARE<br>1.18%<br>0.59%<br>0.73%<br>1.19%<br>0.77%<br>0.76%<br>1Q21<br>4Q21<br>1Q22<br>GAAP ROAA<br>O<br>PERATING<br>ROAA<br>14.4%<br>8.2%<br>10.4%<br>14.5%<br>10.7%<br>10.8%<br>1Q21<br>4Q21<br>1Q22<br>GAAP ROATCE<br>O<br>PERATING<br>ROATCE<br>3<br>Financial data as of or for the three months ended<br>3<br>/31/22<br>1)<br>Non<br>-<br>GAAP<br>financial measure<br>-<br>f<br>or a reconciliation of Non<br>-<br>GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>2)<br>QoQ<br>: Quarter<br>-<br>over<br>-<br>Quarter<br>3)<br>“Loans” for purposes of this presentation includes<br>all SmartFinancial loans and leases<br>4)<br>Organic loan growth excludes PPP loans<br>Q<br>UARTERLY<br>H<br>IGHLIGHTS<br>:<br>F<br>IRST<br>Q<br>UARTER<br>2022<br>-<br>3%<br>Q<br>O<br>Q<br>2<br>T<br>ANG<br>.. B<br>OOK<br>V<br>ALUE<br>P<br>ER<br>S<br>HARE<br>G<br>ROWTH<br>1<br>$0.51<br>D<br>ILUTED<br>O<br>PERATING<br>EPS<br>1<br>0.76%<br>O<br>PERATING<br>R<br>ETURN<br>ON<br>A<br>VERAGE<br>A<br>SSETS<br>1<br>10.8%<br>O<br>PERATING<br>R<br>ETURN<br>A<br>VERAGE<br>T<br>ANG<br>..<br>C<br>OMMON<br>E<br>QUITY<br>1<br>68%<br>O<br>PERATING<br>E<br>FFICIENCY<br>R<br>ATIO<br>1<br>17%<br>Q<br>O<br>Q<br>A<br>NNUALIZED<br>O<br>RGANIC<br>D<br>EPOSIT<br>G<br>ROWTH<br>21%<br>Q<br>O<br>Q<br>A<br>NNUALIZED<br>O<br>RGANIC<br>L<br>OAN<br>3<br>G<br>ROWTH<br>4<br>67%<br>L<br>OAN<br>/ D<br>EPOSIT<br>R<br>ATIO<br>0.11%<br>N<br>ON<br>-<br>P<br>ERFORMING<br>A<br>SSETS<br>/ A<br>SSETS<br>$4.7<br>B<br>ILLION<br>IN<br>T<br>OTAL<br>A<br>SSETS<br>E<br>ARNINGS<br>P<br>ER<br>S<br>HARE<br>B<br>OOK<br>V<br>ALUE<br>P<br>ER<br>S<br>HARE<br>R<br>ETURN<br>ON<br>A<br>VERAGE<br>A<br>SSETS<br>R<br>ETURN<br>ON<br>A<br>VERAGE<br>T<br>ANGIBLE<br>C<br>OMMON<br>E<br>QUITY<br>1<br>1<br>1<br>1
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4<br>S<br>MART<br>F<br>INANCIAL<br>:<br>E<br>XPANDING<br>S<br>OUTHEAST<br>F<br>RANCHISE<br>$4.7<br>B<br>ILLION<br>IN<br>T<br>OTAL<br>A<br>SSETS<br>$2.8<br>B<br>ILLION<br>IN<br>T<br>OTAL<br>L<br>OANS<br>We<br>are<br>building<br>a<br>culture<br>where<br>Associates<br>thrive<br>and<br>are<br>empowered<br>to<br>be<br>leaders<br>..<br>The<br>core<br>values<br>that<br>we<br>have<br>established<br>as<br>a<br>company<br>help<br>us<br>operate<br>in<br>unison<br>and<br>have<br>become<br>a<br>critical<br>part<br>of<br>our<br>culture<br>..<br>Our<br>Associates<br>are<br>key<br>to<br>SmartBank’s<br>success<br>..<br>$4.2<br>B<br>ILLION<br>IN<br>T<br>OTAL<br>D<br>EPOSITS<br>40<br>T<br>OTAL<br>B<br>RANCHES<br>K<br>NOXVILLE<br>N<br>ASHVILLE<br>H<br>UNTSVILLE<br>T<br>USCALOOSA<br>M<br>OBILE<br>P<br>ENSACOLA<br>B<br>IRMINGHAM<br>A<br>UBURN<br>T<br>ALLAHASSEE<br>D<br>OTHAN<br>M<br>ONTGOMERY<br>S<br>MART<br>B<br>ANK<br>B<br>RANCH<br>O<br>FFICES<br>N<br>EW<br>S<br>MART<br>B<br>ANK<br>B<br>RANCH<br>O<br>FFICES<br>L<br>OAN<br>P<br>RODUCTION<br>O<br>FFICE<br>P<br>LANNED<br>F<br>UTURE<br>E<br>XPANSION<br>C<br>HATTANOOGA<br>Balance sheet and branch count represent 3/31/22 balances<br>P<br>ANAMA<br>C<br>ITY
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$1,319<br>$1,775<br>$1,897<br>$2,382<br>$2,693<br>$2,806<br>5.31%<br>5.72%<br>5.49%<br>4.89%<br>4.67%<br>4.40%<br>3.00%<br>4.00%<br>5.00%<br>6.00%<br>7.00%<br>8.00%<br>9.00%<br>10.00%<br>$<br>-<br>$500<br>$1,000<br>$1,500<br>$2,000<br>$2,500<br>$3,000<br>2017Y<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>1Q22<br>$1,439<br>$1,922<br>$2,047<br>$2,805<br>$4,022<br>$4,191<br>0.55%<br>0.86%<br>1.12%<br>0.55%<br>0.27%<br>0.20%<br>0.00%<br>0.50%<br>1.00%<br>1.50%<br>2.00%<br>2.50%<br>3.00%<br>$<br>-<br>$500<br>$1,000<br>$1,500<br>$2,000<br>$2,500<br>$3,000<br>$3,500<br>$4,000<br>$4,500<br>2017Y<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>1Q22<br>5<br>1) CA<br>GR: Compound Annualized Growth Rate<br>B<br>ALANCE<br>S<br>HEET<br>:<br>C<br>ONTINUED<br>B<br>ALANCE<br>S<br>HEET<br>E<br>XPANSION<br>T<br>OTAL<br>L<br>OANS<br>CAGR<br>1<br>OF<br>19% S<br>INCE<br>2017<br>T<br>OTAL<br>D<br>EPOSITS<br>L<br>OANS<br>TO<br>D<br>EPOSITS<br>R<br>ATIO<br>OF<br>67%<br>$ in Millions<br>A<br>VERAGE<br>L<br>OAN<br>Y<br>IELD<br>A<br>VERAGE<br>T<br>OTAL<br>D<br>EPOSIT<br>C<br>OST
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19%<br>20%<br>21%<br>22%<br>22%<br>24%<br>27%<br>28%<br>29%<br>31%<br>14%<br>7%<br>3%<br>2%<br>1%<br>14%<br>13%<br>14%<br>16%<br>15%<br>11%<br>12%<br>12%<br>10%<br>11%<br>17%<br>18%<br>18%<br>18%<br>17%<br>3%<br>$2,487<br>$2,468<br>$2,653<br>$2,693<br>$2,806<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>CRE, OO<br>CRE, NOO<br>SBA PPP L<br>OANS<br>C&I<br>C&D<br>C<br>ONSUMER<br>RE<br>L<br>EASES<br>& O<br>THER<br>26%<br>26%<br>26%<br>26%<br>26%<br>22%<br>22%<br>22%<br>22%<br>23%<br>35%<br>36%<br>37%<br>37%<br>38%<br>17%<br>16%<br>15%<br>14%<br>13%<br>$3,048<br>$3,139<br>$3,799<br>$4,022<br>$4,191<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>N<br>ONINTEREST<br>D<br>EMAND<br>I<br>NTEREST<br>-<br>B<br>EARING<br>D<br>EMAND<br>M<br>ONEY<br>M<br>ARKET<br>AND<br>S<br>AVINGS<br>T<br>IME<br>D<br>EPOSITS<br>6<br>1) Excludes SBA PPP Loans<br>L<br>OAN<br>AND<br>D<br>EPOSIT<br>P<br>ORTFOLIO<br>:<br>S<br>TRONG<br>O<br>RGANIC<br>G<br>ROWTH<br>$ in Millions<br>L<br>OAN<br>C<br>OMPOSITION<br>P<br>OSITIVE<br>M<br>ARKET<br>M<br>OMENTUM<br>D<br>RIVING<br>O<br>RGANIC<br>G<br>ROWTH<br>D<br>EPOSIT<br>C<br>OMPOSITION<br>C<br>ORE<br>D<br>EPOSIT<br>G<br>ROWTH<br>O<br>UTPACING<br>T<br>IME<br>D<br>EPOSIT<br>C<br>ONTRACTION
---
$10,180<br>$6,456<br>$6,059<br>$5,058<br>$4,981<br>0.29%<br>0.18%<br>0.14%<br>0.11%<br>0.11%<br>-0.10%<br>0.10%<br>0.30%<br>0.50%<br>0.70%<br>0.90%<br>1.10%<br>1.30%<br>1.50%<br> $-<br> $2,000<br> $4,000<br> $6,000<br> $8,000<br> $10,000<br> $12,000<br> $14,000<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>N<br>ONPERFORMING<br>L<br>OANS<br>OREO & O<br>THER<br>R<br>EPOS<br>N<br>ONPERFORMING<br>A<br>SSETS<br>/ T<br>OTAL<br>A<br>SSETS<br>$11,756<br>$6,699<br>$7,768<br>$8,991<br>$5,738<br>0.47%<br>0.27%<br>0.29%<br>0.33%<br>0.20%<br>-0.10%<br>0.10%<br>0.30%<br>0.50%<br>0.70%<br>0.90%<br>1.10%<br>1.30%<br>1.50%<br>1.70%<br> $-<br> $2,000<br> $4,000<br> $6,000<br> $8,000<br> $10,000<br> $12,000<br> $14,000<br> $16,000<br> $18,000<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>T<br>OTAL<br>D<br>ELINQUENT<br>& N<br>ONACCRUAL<br>L<br>OANS<br>& L<br>EASES<br>T<br>OTAL<br>D<br>ELINQUENT<br>& N<br>ONACCRUAL<br>L<br>OANS<br>& L<br>EASES<br>/ T<br>OTAL<br>L<br>OANS<br>& L<br>EASES<br>0.39%<br>0.29%<br>0.36%<br>0.35%<br>0.31%<br>0.01%<br>0.01%<br>0.03%<br>0.05%<br>0.04%<br>0.00%<br>0.05%<br>0.10%<br>0.15%<br>0.20%<br>0.25%<br>0.30%<br>0.35%<br>0.40%<br>0.45%<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>C<br>LASSIFIED<br>L<br>OANS<br>AND<br>L<br>EASES<br>/ T<br>OTAL<br>L<br>OANS<br>& L<br>EASES<br>N<br>ET<br>C<br>HARGEOFFS<br>275%<br>299%<br>295%<br>290%<br>299%<br>90%<br>94%<br>89%<br>75%<br>79%<br>0%<br>50%<br>100%<br>150%<br>200%<br>250%<br>150%<br>170%<br>190%<br>210%<br>230%<br>250%<br>270%<br>290%<br>310%<br>330%<br>350%<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>CRE L<br>OANS<br>/ C<br>APITAL<br>C&D L<br>OANS<br>/ C<br>APITAL<br>7<br>C<br>REDIT<br>Q<br>UALITY<br>D<br>ELINQUENT<br>AND<br>N<br>ONACCRUALS<br>/ T<br>OTAL<br>L<br>OANS<br>N<br>ONPERFORMING<br>A<br>SSETS<br>C<br>OMMERCIAL<br>R<br>EAL<br>E<br>STATE<br>C<br>ONCENTRATION<br>A<br>SSET<br>Q<br>UALITY<br>:<br>S<br>TRONG<br>U<br>NDERWRITING<br>P<br>AYS<br>D<br>IVIDENDS<br>$ in Thousands
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8<br>R<br>ESERVE<br>R<br>ECONCILIATION<br>:<br>$ in Thousands<br>$18,370<br>$18,310<br>$19,295<br>$19,352<br>$20,078<br>$12,951<br>$12,982<br>$13,001<br>$15,483<br>$14,913<br>0.91%<br>0.86%<br>0.76%<br>0.74%<br>0.74%<br>0.00%<br>0.50%<br>1.00%<br>1.50%<br>2.00%<br> $-<br> $2,000<br> $4,000<br> $6,000<br> $8,000<br> $10,000<br> $12,000<br> $14,000<br> $16,000<br> $18,000<br> $20,000<br> $22,000<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>A<br>LLOWANCE<br>FOR<br>L<br>OAN<br>L<br>OSSES<br>A<br>CQUIRE<br>L<br>OAN<br>F<br>AIR<br>V<br>ALUE<br>D<br>ISCOUNTS<br>A<br>LLOWANCE<br>-<br>O<br>RIGINATED<br>/ O<br>RIG<br>.. L&L, L<br>ESS<br>PPP<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>Allowance / Total Loans & Leases ("L&L")<br>0.74%<br>0.74%<br>0.73%<br>0.72%<br>0.72%<br>Allowance / Total L&L, less PPP<br>0.85%<br>0.80%<br>0.75%<br>0.73%<br>0.72%<br>Allowance - Originated / Orig. L&L, less PPP<br>0.91%<br>0.86%<br>0.76%<br>0.74%<br>0.74%<br>Allowance - Acquired / Acquired L&L<br>0.57%<br>0.47%<br>0.74%<br>0.65%<br>0.63%<br>Acquired FV Discount / Acquired L&L<br>3.74%<br>3.61%<br>2.48%<br>3.42%<br>3.64%<br>Total Reserves / Total L&L<br>1.26%<br>1.27%<br>1.22%<br>1.29%<br>1.25%<br>Total Reserves / Total L&L, less PPP<br>1.46%<br>1.37%<br>1.26%<br>1.31%<br>1.26%
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$557<br>$674<br>$1,091<br>$1,045<br>$764<br>$251<br>$251<br>$339<br>$559<br>$830<br>7.1%<br>6.9%<br>7.7%<br>12.1%<br>17.6%<br>0.0%<br>5.0%<br>10.0%<br>15.0%<br>20.0%<br>25.0%<br>30.0%<br>35.0%<br>40.0%<br>45.0%<br>50.0%<br> $-<br> $200<br> $400<br> $600<br> $800<br> $1,000<br> $1,200<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>C<br>ASH<br>AND<br>C<br>ASH<br>E<br>QUIV<br>..<br>S<br>ECURITIES<br>(AFS/HTM)<br>S<br>ECURITIES<br>(AFS/HTM) / T<br>OTAL<br>A<br>SSETS<br>9<br>L<br>IQUIDITY<br>U<br>TILIZATION<br>:<br>M<br>ARGIN<br>M<br>ANAGEMENT<br>WHILE<br>D<br>RIVING<br>R<br>EVENUE<br>$ in Millions<br>C<br>ASH<br>AND<br>S<br>ECURITIES<br>D<br>EPLOYING<br>E<br>XCESS<br>F<br>UNDING<br>M<br>ARGIN<br>/ O<br>PERATING<br>R<br>EVENUE<br>2<br>M<br>AINTAINING<br>R<br>EVENUE<br>D<br>ESPITE<br>C<br>HALLENGING<br>M<br>ARGIN<br>E<br>NVIRONMENT<br>$ in Thousands<br>1)<br>Based on the weighted average of the AFS/HTM securities portfolio. Yields related to investment securities exempt from income<br>ta<br>xes are stated on a taxable<br>-<br>equivalent basis assuming a federal income tax rate of 21.0%<br>2)<br>Non<br>-<br>GAAP<br>financial measure<br>-<br>f<br>or a reconciliation of Non<br>-<br>GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>2<br>$26,260<br>$26,897<br>$30,382<br>$29,855<br>$30,118<br>$5,691<br>$5,143<br>$6,264<br>$6,806<br>$7,111<br>$31,951<br>$32,040<br>$36,646<br>$36,661<br>$37,229<br>3.48%<br>3.29%<br>3.35%<br>2.92%<br>2.91%<br> $10,000<br> $15,000<br> $20,000<br> $25,000<br> $30,000<br> $35,000<br> $40,000<br>2.00%<br>2.50%<br>3.00%<br>3.50%<br>4.00%<br>4.50%<br>5.00%<br>5.50%<br>6.00%<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>N<br>ET<br>I<br>NTEREST<br>I<br>NCOME<br>O<br>PERATING<br>N<br>ONINTEREST<br>I<br>NCOME<br>N<br>ET<br>I<br>NTEREST<br>M<br>ARGIN<br>(FTE)<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>Cash Yield<br>0.28%<br>0.23%<br>0.23%<br>0.22%<br>0.25%<br>Sec. Yield (AFS/HTM)<br>1<br>2.02%<br>2.16%<br>1.89%<br>1.64%<br>1.67%<br>Loans<br>(less Accr./PPP Fees)<br>4.00%<br>4.06%<br>4.21%<br>4.20%<br>4.18%<br>Accretion<br>0.27%<br>0.12%<br>0.28%<br>0.07%<br>0.06%<br>PPP Fees<br>0.40%<br>0.34%<br>0.46%<br>0.26%<br>0.16%<br>Loan Yield<br> (incl. Fees)<br>4.67%<br>4.52%<br>4.95%<br>4.53%<br>4.40%<br>IE Asset Yield<br>3.88%<br>3.65%<br>3.67%<br>3.20%<br>3.18%<br>NIM (FTE)<br>3.48%<br>3.29%<br>3.35%<br>2.92%<br>2.91%
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$5,624<br>,<br>4.3%<br>$11,018<br>,<br>8.4%<br>$16,302<br>,<br>12.4%<br>I<br>NTERST<br>I<br>NCOME<br>% C<br>HANGE<br>S<br>HOCK<br>+100<br>BPS<br>S<br>HOCK<br>+200<br>BPS<br>S<br>HOCK<br>+300<br>BPS<br>$3,995<br>,<br>3.0%<br>$8,093<br>,<br>6.2%<br>$12,145<br>,<br>9.2%<br>I<br>NTEREST<br>I<br>NCOME<br>% C<br>HANGE<br>R<br>AMP<br>+100<br>BPS<br>R<br>AMP<br>+200<br>BPS<br>R<br>AMP<br>+300<br>BPS<br>60%<br>40%<br>F<br>IXED<br>R<br>ATE<br>L<br>OANS<br>V<br>ARIABLE<br>R<br>ATE<br>L<br>OANS<br>10<br>I<br>NTEREST<br>R<br>ATE<br>S<br>ENSITIVITY<br>:<br>W<br>ELL<br>P<br>OSITIONED<br>FOR<br>R<br>ISING<br>R<br>ATES<br>V<br>ARIABLE<br>VS<br>.. F<br>IXED<br>R<br>ATE<br>L<br>OANS<br>S<br>TATIC<br>S<br>HOCK<br>/ R<br>ATE<br>R<br>AMP<br>A<br>NALYSIS<br>1<br>1)<br>Based on 12<br>-<br>month static rate shock and ramp analysis as of 3/31/22. These estimates of changes in the Company’s net interest in<br>come require us to make certain assumption including loan and mortgage<br>-<br>related investment prepayment speeds,<br>reinvestment rate, deposit maturities and decay rates. These assumptions are inherently uncertain and, as a result, we cannot<br>pr<br>ecisely predict the impact of changes in interest rates on net interest income. Although our analysis provides and indication<br>of<br>our interest rate risk exposure at a particular point in time, such estimates are not intended to, and do not, provide a prec<br>ise<br>forecast of the effect of changes in market interest rates and will differ from actual results.<br>▲<br>$1.1 B<br>ILLION<br>OF<br>T<br>OTAL<br>V<br>ARIABLE<br>R<br>ATE<br>L<br>OANS<br>▲<br>~$450 M<br>ILLION<br>R<br>EPRICING<br>WITH<br>A<br>NY<br>R<br>ATE<br>I<br>NCREASE<br>▲<br>~$85 M<br>ILLION<br>R<br>EPRICING<br>WITH<br>N<br>EXT<br>100<br>BPS<br>I<br>NCREASE<br>$ in Thousands
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11<br>N<br>ONINTEREST<br>R<br>EVENUE<br>D<br>ETAILS<br>:<br>G<br>ROWING<br>F<br>EE<br>I<br>NCOME<br>O<br>PERATING<br>N<br>ONINTEREST<br>I<br>NCOME<br>1<br>C<br>ONTINUING<br>TO<br>S<br>TRENGTHEN<br>$ in Thousands<br>1) Non<br>-<br>GAAP<br>financial measure<br>-<br>f<br>or a reconciliation of Non<br>-<br>GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>Note: For a reconciliation of Non<br>-<br>GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>D<br>IFFERENTIATED<br>R<br>EVENUE<br>S<br>TREAMS<br>B<br>UILDING<br>A<br>F<br>AMILY<br>OF<br>D<br>IVERSIFIED<br>R<br>EVENUE<br>G<br>ENERATORS<br>$5,691<br>$5,143<br>$6,264<br>$6,806<br>$7,111<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>S<br>ERVICE<br>C<br>HARGES<br>ON<br>D<br>EPOSIT<br>A<br>CCOUNTS<br>M<br>ORTGAGE<br>B<br>ANKING<br>I<br>NCOME<br>I<br>NVESTMENT<br>S<br>ERVICES<br>I<br>NCOME<br>I<br>NSURANCE<br>C<br>OMMISSIONS<br>I<br>NTERCHANGE<br>F<br>EES<br>O<br>THER<br>N<br>ONINTEREST<br>I<br>NCOME
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60%<br>63%<br>62%<br>68%<br>68%<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>O<br>PERATING<br>E<br>FFICIENCY<br>R<br>ATIO<br>$19,361<br>$20,425<br>$22,845<br>$25,061<br>$25,279<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>S<br>ALARIES<br>& B<br>ENEFITS<br>O<br>CCUPANCY<br>& E<br>QUIPMENT<br>D<br>ATA<br>P<br>ROCESSING<br>& T<br>ECHNOLOGY<br>P<br>ROFESSIONAL<br>S<br>ERVICES<br>A<br>MORTIZATION<br>OF<br>I<br>NTANGIBLES<br>O<br>THER<br>N<br>ONINTEREST<br>E<br>XPENSE<br>12<br>1) Non<br>-<br>GAAP<br>financial measure<br>-<br>f<br>or a reconciliation of Non<br>-<br>GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>Note: For a reconciliation of Non<br>-<br>GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>O<br>PERATING<br>E<br>XPENSE<br>:<br>I<br>NVESTING<br>IN<br>G<br>ROWTH<br>O<br>PERATING<br>E<br>FFICIENCY<br>R<br>ATIO<br>1<br>E<br>XECUTING<br>ON<br>E<br>XPANSION<br>O<br>PPORTUNITIES<br>O<br>PERATING<br>N<br>ONINTEREST<br>E<br>XPENSE<br>1<br>D<br>ISCIPLINED<br>F<br>OCUS<br>ON<br>E<br>XPENSE<br>C<br>ONTAINMENT<br>$ in Thousands
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8.0%<br>7.9%<br>7.5%<br>7.2%<br>6.8%<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>11.3%<br>10.6%<br>10.9%<br>10.2%<br>10.3%<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>8.6%<br>8.1%<br>8.4%<br>7.5%<br>7.4%<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>13.6%<br>12.8%<br>12.9%<br>12.2%<br>12.2%<br>1Q21<br>2Q21<br>3Q21<br>4Q21<br>1Q22<br>$13.90<br>$14.64<br>$16.82<br>$17.92<br>$19.26<br>$18.64<br> $13.00<br> $14.00<br> $15.00<br> $16.00<br> $17.00<br> $18.00<br> $19.00<br> $20.00<br> $21.00<br>2017Y<br>2018Y<br>2019Y<br>2020Y<br>2021Y<br>1Q22<br>TBV Per Share<br>C<br>APITAL<br>:<br>W<br>ELL<br>C<br>APITALIZED<br>–<br>B<br>UILDING<br>B<br>OOK<br>V<br>ALUE<br>13<br>1)<br>Non<br>-<br>GAAP<br>financial measure<br>-<br>f<br>or a reconciliation of Non<br>-<br>GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>Note: Capital ratio data as of the most recent period ended 3/31/22<br>TCE / TA<br>1<br>CET1 R<br>ATIO<br>T<br>OTAL<br>C<br>APITAL<br>R<br>ATIO<br>L<br>EVERAGE<br>R<br>ATIO<br>B<br>ASEL<br>III R<br>EGULATORY<br>C<br>APITAL<br>M<br>INIMUM<br>T<br>O<br>B<br>E<br>C<br>ONSIDERED<br>“W<br>ELL<br>C<br>APITALIZED<br>”<br>7%<br>CAGR ’17<br>–<br>Q1 ’22<br>B<br>UILDING<br>S<br>HAREHOLDER<br>V<br>ALUE<br>T<br>ANGIBLE<br>B<br>OOK<br>V<br>ALUE<br>P<br>ER<br>S<br>HARE<br>1<br>$0.07<br>Q<br>UARTERLY<br>D<br>IVIDEND<br>$4.74<br>TBV P<br>ER<br>S<br>HARE<br>1<br>C<br>REATED<br>’17<br>–<br>Q1 ‘22<br>5%<br>W<br>ELL<br>C<br>APITALIZED<br>10%<br>W<br>ELL<br>C<br>APITALIZED<br>6.5%<br>W<br>ELL<br>C<br>APITALIZED
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Enhanced work<br>from home<br>security upgrade<br>Q1 2021<br>Branch<br>network<br>modernization<br>Q2 2021<br>14<br>Digital consumer<br>deposit<br>origination<br>upgrade<br>Q2 2021<br>Treasury<br>Management<br>Platform Upgrade<br>Q1 2022<br>Q2 2021<br>Online mortgage<br>origination<br>enhancements<br>Q1 2021<br>Work from home<br>technology<br>upgrade<br>Q2 2021<br>Cloud<br>-<br>based<br>Contact Center<br>Enhanced cyber<br>security<br>technology<br>Q2 2021<br>O<br>PERATING<br>E<br>XPENSE<br>:<br>T<br>ECHNOLOGY<br>I<br>NITIATIVES<br>I<br>NVESTING<br>IN<br>OUR<br>P<br>LATFORM<br>TO<br>M<br>AKE<br>S<br>MART<br>B<br>ANK<br>AN<br>E<br>ASIER<br>O<br>RGANIZATION<br>WITH<br>W<br>HICH<br>TO<br>DO<br>B<br>USINESS<br>Digital<br>Transformation<br>Plan, led by new<br>Chief Information<br>Officer<br>Q3 2020<br>Q2 2021<br>Telecommunications<br>management<br>upgrade<br>Q3 2021<br>Redesigned<br>smartbank.com<br>Core<br>OS platform<br>upgrade<br>Q2 2022<br>ATM fleet<br>replacement with<br>ITM upgrade<br>Q3 2022<br>Teller<br>modernization<br>bank<br>-<br>wide<br>Q2 2022<br>Q3 2022<br>Commercial online<br>account origination<br>Q2 2022<br>Data analytics<br>platform<br>implementation<br>Q2 2022<br>nCino<br>©<br>Commercial<br>Loan Origination<br>Q2 2022<br>Centralized bank<br>application support<br>team<br>Digital floorplan<br>lending<br>solution<br>Q3 2022<br>$<br>PAY<br>C<br>OMMERCIAL<br>L<br>ENDING<br>E<br>NHANCEMENT<br>WITH<br>N<br>C<br>INO<br>©<br>P<br>LATFORM<br>E<br>MBRACING<br>T<br>ECHNOLOGY<br>TO<br>I<br>NCREASE<br>E<br>FFICIENCY<br>AND<br>C<br>REATE<br>S<br>TREAMLINED<br>P<br>ROCESSES<br>nCino<br>©<br>Customer<br>Pricing and<br>Profitability<br>Q4 2022<br>Q3 2022<br>Enhanced digital<br>consumer finance<br>tools
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W<br>HY<br>S<br>MART<br>B<br>ANK<br>:<br>I<br>NVESTMENT<br>H<br>IGHLIGHTS<br>15<br>F<br>RANCHISE<br>S<br>CARCITY<br>V<br>ALUE<br>–<br>B<br>UILDING<br>S<br>OUTHEAST<br>D<br>ENSITY<br>E<br>NGAGED<br>M<br>ANAGEMENT<br>T<br>EAM<br>S<br>TABLE<br>M<br>ARKETS<br>E<br>XPERIENCING<br>P<br>OPULATION<br>E<br>XPANSION<br>L<br>OW<br>-<br>C<br>OST<br>D<br>EPOSIT<br>B<br>ASE<br>G<br>ROWING<br>B<br>USINESS<br>L<br>INES<br>WITH<br>R<br>EVENUE<br>D<br>IVERSIFICATION<br>S<br>OLID<br>C<br>REDIT<br>Q<br>UALITY<br>AND<br>U<br>NDERWRITING<br>H<br>ISTORY<br>OF<br>D<br>EFENDING<br>B<br>OOK<br>V<br>ALUE<br>AND<br>D<br>ELIVERING<br>S<br>HAREHOLDER<br>V<br>ALUE<br>$
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A<br>PPENDIX<br>16
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Core Tennessee<br>3<br>Central Tennessee / Nashville<br>6<br>Total Deposits in Market<br>$41.3 Billion<br>Total Deposits in Market<br>$89.2 Billion<br>Current Population (2021)<br>1,549,636<br>Current Population (2021)<br>1,980,990<br>Proj. Pop. Growth ('21-'26)<br>4.0%<br>Proj. Pop. Growth ('21-'26)<br>5.9%<br>Proj. HH Inc. Growth ('21-'26)<br>9.7%<br>Proj. HH Inc. Growth ('21-'26)<br>11.4%<br>East Middle Tennessee<br>4<br>Alabama Expansion<br>7<br>Total Deposits in Market<br>$9.9 Billion<br>Total Deposits in Market<br>$73.5 Billion<br>Current Population (2021)<br>429,125<br>Current Population (2021)<br>1,784,492<br>Proj. Pop. Growth ('21-'26)<br>4.2%<br>Proj. Pop. Growth ('21-'26)<br>1.5%<br>Proj. HH Inc. Growth ('21-'26)<br>9.3%<br>Proj. HH Inc. Growth ('21-'26)<br>10.1%<br>Legacy Alabama<br>5<br>Florida Panhandle<br>8<br>Total Deposits in Market<br>$34.7 Billion<br>Total Deposits in Market<br>$32.7 Billion<br>Current Population (2021)<br>1,417,711<br>Current Population (2021)<br>1,368,618<br>Proj. Pop. Growth ('21-'26)<br>3.0%<br>Proj. Pop. Growth ('21-'26)<br>5.0%<br>Proj. HH Inc. Growth ('21-'26)<br>6.2%<br>Proj. HH Inc. Growth ('21-'26)<br>10.0%<br>M<br>ARKET<br>A<br>REA<br>:<br>T<br>ARGETING<br>I<br>NDUSTRY<br>R<br>ICH<br>G<br>ROWTH<br>M<br>ARKETS<br>17<br>L<br>EGACY<br>M<br>ARKET<br>A<br>REA<br>E<br>XPANDING<br>M<br>ARKET<br>A<br>REA<br>1) Percentages based on combined Legacy Market Area vs. Expanding Market Area; 2) Business generating associates in Expanding<br>Ma<br>rket Area as a percent of total SmartBank revenue producing associates; 3) Core Tennessee includes Chattanooga, TN,<br>Knoxville, TN and Sevierville, TN MSAs; 4) East Middle Tennessee includes Cleveland, TN, Crossville, TN, Cookeville, TN, Fent<br>res<br>s, TN and Tullahoma, TN MSAs; 5) Legacy Alabama includes Clarke, AL, Fairhope, AL, Huntsville, AL, Mobile, AL and<br>Tuscaloosa, AL MSAs; 6) Central Tennessee / Nashville includes the Nashville, TN MSA 7) Alabama Expansion includes Auburn, A<br>L,<br>Birmingham, AL, Dothan, AL and Montgomery, AL MSAs; 8) Florida Panhandle includes Fort Walton/Destin, FL, Panama<br>City, FL, Pensacola, FL and Tallahassee, FL MSAs<br>Source: S&P Market Intelligence; Weighted Averages for each market area based on population<br>127%<br>L<br>ARGER<br>D<br>EPOSIT<br>B<br>ASE<br>51%<br>L<br>ARGER<br>P<br>OPULATION<br>B<br>ASE<br>14%<br>H<br>IGHER<br>M<br>EDIAN<br>H<br>OUSEHOLD<br>I<br>NCOME<br>2.4%<br>F<br>ASTER<br>H<br>OUSEHOLD<br>I<br>NCOME<br>G<br>ROWTH<br>0.5%<br>F<br>ASTER<br>P<br>ROJECTED<br>P<br>OPULATION<br>G<br>ROWTH<br>S<br>MART<br>B<br>ANK<br>IS<br>FOCUSED<br>ON<br>BUILDING<br>MUSCLE<br>IN<br>ITS<br>EXPANDING<br>,<br>FAST<br>GROWING<br>S<br>OUTHEAST<br>MARKET<br>AREAS<br>E<br>XPANDING<br>M<br>ARKETS<br>VS<br>..<br>L<br>EGACY<br>M<br>ARKETS<br>1<br>>20%<br>O<br>F<br>T<br>OTAL<br>R<br>EVENUE<br>P<br>RODUCING<br>A<br>SSOCIATES<br>2
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18<br>Note: For a reconciliation of Non<br>-<br>GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>I<br>NCOME<br>S<br>TATEMENT<br>:<br>D<br>ETAILED<br>F<br>IRST<br>Q<br>UARTER<br>R<br>ESULTS<br>4Q21<br>1Q21<br>($ in thousands, except per share data)<br>1Q22<br>4Q21<br>1Q21<br>% Chg.<br>% Chg.<br>Net Interest Income<br>30,118<br>$<br><br>29,855<br>$<br><br>26,260<br>$<br><br>1%<br>15%<br>Provision for Loan & Lease losses<br>1,006<br><br><br>422<br><br><br>67<br><br><br>Noninterest Income<br>7,111<br><br><br>6,806<br><br><br>5,691<br><br><br>4%<br>25%<br>Noninterest Expense<br>25,718<br><br><br>27,823<br><br><br>19,464<br><br><br>(8%)<br>32%<br>Income Tax Expense<br>2,246<br><br><br>1,761<br><br><br>2,664<br><br><br>Net Income (GAAP)<br>8,259<br>$<br><br>6,655<br>$<br><br>9,756<br>$<br><br>24%<br>(15%)<br>Non-GAAP Reconciliations<br>Noninterest Income<br>-<br><br><br>-<br><br><br>-<br><br><br>Noninterest Expense<br>439<br><br><br>2,762<br><br><br>103<br><br><br>Income Tax Effect Of Adjustments<br>(113)<br><br><br>(713)<br><br><br>(27)<br><br><br>Operating Earnings (Non-GAAP)<br>8,585<br>$<br><br>8,704<br>$<br><br>9,832<br>$<br><br>(1%)<br>(13%)<br>Operating PTPP Earnings (Non-GAAP)<br>11,950<br>$<br><br>11,600<br>$<br><br>12,590<br>$<br><br>3%<br>(5%)<br>4Q21<br>1Q21<br>Non-GAAP Performance Metrics<br>1Q22<br>4Q21<br>1Q21<br>% Chg.<br>% Chg.<br>Diluted Operating Earnings Per Share<br>0.51<br>$<br><br>0.52<br>$<br><br>0.65<br>$<br><br>(1%)<br>(22%)<br>Tangible Book Value Per Common Share<br>18.64<br>$<br><br>19.26<br>$<br><br>18.39<br>$<br><br>(3%)<br>1%<br>Operating Return on Average Assets<br>0.76%<br>0.77%<br>1.19%<br>(0.02%)<br>(0.43%)<br>Operating PTPP Return on Average Assets<br>1.05%<br>1.03%<br>1.52%<br>0.02%<br>(0.47%)<br>Operating Return on Average Tang. Common Equity<br>10.8%<br>10.7%<br>14.5%<br>0.1%<br>(3.7%)<br>Operating Efficiency Ratio<br>67.6%<br>68.1%<br>60.3%<br>(0.5%)<br>7.3%<br>1Q22 vs.<br>1Q22 vs.
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N<br>ON<br>-<br>GAAP R<br>ECONCILIATION<br>19<br>$ in Thousands, except per share data<br>1.<br>Operating<br>return<br>on<br>average<br>assets<br>(Non<br>-<br>GAAP)<br>is<br>the<br>annualized<br>operating<br>earnings<br>(Non<br>-<br>GAAP)<br>divided<br>by<br>average<br>assets<br>..<br>2.<br>Operating<br>PTPP<br>return<br>on<br>average<br>assets<br>(Non<br>-<br>GAAP)<br>is<br>the<br>annualized<br>operating<br>PTPP<br>earnings<br>(Non<br>-<br>GAAP)<br>divided<br>by<br>average<br>assets<br>..<br>3.<br>Return<br>on<br>average<br>tangible<br>common<br>equity<br>(Non<br>-<br>GAAP)<br>is<br>the<br>annualized<br>net<br>income<br>divided<br>by<br>average<br>tangible<br>common<br>equity<br>(Non<br>-<br>GAAP)<br>..<br>4.<br>Operating<br>return<br>on<br>average<br>shareholders’<br>equity<br>(Non<br>-<br>GAAP)<br>is<br>the<br>annualized<br>operating<br>earnings<br>(Non<br>-<br>GAAP)<br>divided<br>by<br>average<br>shareholder<br>equity<br>..<br>5.<br>Operating<br>return<br>on<br>average<br>tangible<br>common<br>equity<br>(Non<br>-<br>GAAP)<br>is<br>the<br>annualized<br>operating<br>earnings<br>(Non<br>-<br>GAAP)<br>divided<br>by<br>average<br>tangible<br>common<br>equity<br>(Non<br>-<br>GAAP)<br>..<br>1Q22<br>4Q21<br>3Q21<br>2Q21<br>1Q21<br>Operating Earnings<br>Net Income (GAAP)<br>8,259<br>$<br><br>6,655<br>$<br><br>9,600<br>$<br><br>8,778<br>$<br><br>9,756<br>$<br><br>Noninterest Income:<br>Securities (Gains) Losses<br>-<br><br><br>-<br><br><br>(45)<br><br><br>-<br><br><br>-<br><br><br>Noninterest Expenses:<br>Merger Related And Restructuring Expenses<br>439<br><br><br>2,762<br><br><br>464<br><br><br>372<br><br><br>103<br><br><br>Income Taxes:<br>Income Tax Effect Of Adjustments<br>(113)<br><br><br>(713)<br><br><br>(108)<br><br><br>(96)<br><br><br>(27)<br><br><br>Operating Earnings (Non-GAAP)<br>8,585<br>$<br><br>8,704<br>$<br><br>9,911<br>$<br><br>9,054<br>$<br><br>9,832<br>$<br><br>Operating Earnings Per Common Share:<br>Basic<br>0.51<br>$<br><br>0.52<br>$<br><br>0.64<br>$<br><br>0.60<br>$<br><br>0.65<br>$<br><br>Diluted<br>0.51<br><br><br>0.52<br><br><br>0.63<br><br><br>0.60<br><br><br>0.65<br><br><br>Operating Noninterest Income<br>Noninterest Income (GAAP)<br>7,111<br>$<br><br>6,806<br>$<br><br>6,309<br>$<br><br>5,143<br>$<br><br>5,691<br>$<br><br>Securities (Gain) Losses<br>-<br><br><br>-<br><br><br>(45)<br><br><br>-<br><br><br>-<br><br><br>Operating Noninterest Income (Non-GAAP)<br>7,111<br>$<br><br>6,806<br>$<br><br>6,264<br>$<br><br>5,143<br>$<br><br>5,691<br>$<br><br>Operating Noninterest Expense<br>Noninterest Expense (GAAP)<br>25,718<br>$<br><br>27,823<br>$<br><br>23,309<br>$<br><br>20,797<br>$<br><br>19,464<br>$<br><br>Merger Related And Restructuring Expenses<br>(439)<br><br><br>(2,762)<br><br><br>(464)<br><br><br>(372)<br><br><br>(103)<br><br><br>Operating Noninterest Expense (Non-GAAP)<br>25,279<br>$<br><br>25,061<br>$<br><br>22,845<br>$<br><br>20,425<br>$<br><br>19,361<br>$<br><br>Operating Pre-Tax Pre-Provison ("PTPP") Earnings<br>Net Interest Income (GAAP)<br>30,118<br>$<br><br>29,855<br>$<br><br>30,382<br>$<br><br>26,897<br>$<br><br>26,260<br>$<br><br>Operating Noninterest Income (Non-GAAP)<br>7,111<br><br><br>6,806<br><br><br>6,264<br><br><br>5,143<br><br><br>5,691<br><br><br>Operating Noninterest Expense (Non-GAAP)<br>(25,279)<br><br><br>(25,061)<br><br><br>(22,845)<br><br><br>(20,425)<br><br><br>(19,361)<br><br><br>Operating PTPP Earnings (Non-GAAP)<br>11,950<br>$<br><br>11,600<br>$<br><br>13,801<br>$<br><br>11,615<br>$<br><br>12,590<br>$<br><br>Non-GAAP Return Ratios<br>Operating Return On Average Assets (Non-GAAP)<br>(1)<br>0.76%<br>0.77%<br>1.00%<br>1.01%<br>1.19%<br>Operating PTPP Return On Average Assets (Non-GAAP)<br>(2)<br>1.05%<br>1.03%<br>1.39%<br>1.30%<br>1.52%<br>Return On Average Tangible Common Equity (Non-GAAP)<br>(3)<br>10.39%<br>8.18%<br>12.84%<br>12.54%<br>14.41%<br>Operating Return On Average Shareholders' Equity (Non-GAAP)<br>(4)<br>8.14%<br>8.09%<br>10.01%<br>9.83%<br>11.05%<br>Operating Return On Average Tangible Common Equity (Non-GAAP)<br>(5)<br>10.80%<br>10.70%<br>13.26%<br>12.93%<br>14.53%<br>Operating Efficiency Ratio<br>Efficiency Ratio (GAAP)<br>69.08%<br>75.89%<br>63.53%<br>64.91%<br>60.92%<br>Adjustment For Taxable Equivalent Yields<br>(0.31%)<br>(0.32%)<br>(0.25%)<br>(0.30%)<br>(0.28%)<br>Adjustment For Securities Gains (Losses)<br>-<br>-<br>(0.08%)<br>-<br>-<br>Adjustment For Merger Expenses<br>(1.17%)<br>(7.50%)<br>(1.11%)<br>(1.15%)<br>(0.32%)<br>Operating Efficiency Ratio (Non-GAAP)<br>67.60%<br>68.07%<br>62.09%<br>63.46%<br>60.32%
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N<br>ON<br>-<br>GAAP R<br>ECONCILIATION<br>20<br>$ in Thousands, except per share data<br>1.<br>Book<br>value<br>per<br>share<br>is<br>computed<br>by<br>dividing<br>total<br>stockholders’<br>equity<br>by<br>common<br>shares<br>outstanding<br>..<br>Tangible<br>book<br>value<br>per<br>share<br>(Non<br>-<br>GAAP)<br>is<br>computed<br>by<br>dividing<br>total<br>stockholders’<br>equity,<br>less<br>goodwill<br>and<br>other<br>intangible<br>assets<br>by<br>common<br>shares<br>outstanding<br>1Q22<br>4Q21<br>3Q21<br>2Q21<br>1Q21<br>Tangible Common Equity:<br>Shareholders' Equity (GAAP)<br>420,042<br>$<br><br>429,430<br>$<br><br>424,720<br>$<br><br>373,393<br>$<br><br>364,058<br>$<br><br>Less Goodwill And Other Intangible Assets<br>105,215<br><br><br>105,852<br><br><br>104,930<br><br><br>90,966<br><br><br>86,350<br><br><br>Tangible Common Equity (Non-GAAP)<br>314,827<br>$<br><br>323,578<br>$<br><br>319,790<br>$<br><br>282,427<br>$<br><br>277,708<br>$<br><br>Average Tangible Common Equity:<br>Average Shareholders' Equity (GAAP)<br>427,945<br>$<br><br>426,808<br>$<br><br>392,798<br>$<br><br>369,325<br>$<br><br>360,919<br>$<br><br>Less Goodwill And Other Intangible Assets<br>105,617<br><br><br>104,193<br><br><br>96,250<br><br><br>88,551<br><br><br>86,424<br><br><br>Average Tangible Common Equity (Non-GAAP)<br>322,328<br>$<br><br>322,615<br>$<br><br>296,548<br>$<br><br>280,774<br>$<br><br>274,495<br>$<br><br>Tangible Book Value Per Common Share:<br>Book Value Per Common Share (GAAP)<br>24.86<br>$<br><br>25.56<br>$<br><br>25.28<br>$<br><br>24.71<br>$<br><br>24.10<br>$<br><br>Adjustment Due To Goodwill And Other Intangible Assets<br>(6.23)<br><br><br>(6.30)<br><br><br>(6.25)<br><br><br>(6.02)<br><br><br>(5.71)<br><br><br>Tangible Book Value Per Common Share (Non-GAAP)<br>(1)<br>18.64<br>$<br><br>19.26<br>$<br><br>19.03<br>$<br><br>18.69<br>$<br><br>18.39<br>$<br><br>Tangible Common Equity To Tangible Assets:<br>Total Assets<br>4,718,579<br>$<br><br>4,611,579<br>$<br><br>4,384,031<br>$<br><br>3,654,356<br>$<br><br>3,557,203<br>$<br><br>Less Goodwill And Other Intangibles<br>105,215<br><br><br>105,852<br><br><br>104,930<br><br><br>90,966<br><br><br>86,350<br><br><br>Tangible Assets (Non-GAAP)<br>4,613,364<br>$<br><br>4,505,727<br>$<br><br>4,279,101<br>$<br><br>3,563,390<br>$<br><br>3,470,853<br>$<br><br>Tangible Common Equity To Tangible Assets (Non-GAAP):<br>6.82%<br>7.18%<br>7.47%<br>7.93%<br>8.00%
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