8-K

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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: January 19, 2021

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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 (see General Instruction A.2. below):

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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 January 19, 2021, SmartFinancial, Inc. (“SmartFinancial”) issued a press release (the “Press Release”) reporting earnings results for its fourth quarter ending December 31, 2020. 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 January 20, 2021. 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 fourth quarter 2020 financial results dated January 19, 2021
99.2	​	Fourth quarter 2020 investor presentation

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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: January 19, 2021
	/s/ William Y. Carroll, Jr.
	William Y. Carroll, Jr.
	President & Chief Executive Officer

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Exhibit 99.1

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4Q 2020

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SmartFinancial Announces Results for the Fourth Quarter 2020

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KNOXVILLE, TN – January 19, 2021 - SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NASDAQ: SMBK), today announced net income of $9.0 million, or $0.59 per diluted common share, for the fourth quarter of 2020, compared to net income of $6.4 million, or $0.42 per diluted common share for the third quarter of 2020.  Operating earnings (Non-GAAP), which excludes securities gains, merger related and restructuring expenses and non-operating items, totaled $9.2 million, or $0.61 per diluted common share, in the fourth quarter of 2020, compared to $6.6 million, or $0.44 per diluted common share, in the third quarter of 2020.

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Highlights for the Fourth Quarter of 2020

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●	Net income of $9.0 million and operating earnings of $9.2 million (Non-GAAP)
●	Operating noninterest income (Non-GAAP) increased $381 thousand or 36.9% annualized quarter-over-quarter
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●	Tangible book value per share (Non-GAAP) of $17.92, a 15.1% annualized quarter-over-quarter increase
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●	Deposits increased by $153.2 million or 23.1% annualized from September 30, 2020
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●	Paid off $237.8 million in borrowings from the Federal Reserve Bank Paycheck Protection Program Liquidity Facility (“PPPLF”)
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●	COVID loan modifications declined to 0.7% of total loans
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Billy Carroll, President & CEO, stated: "We are extremely pleased with our results for the quarter and for the year.  The year was unprecedented on several fronts, but our energetic, entrepreneurial team rose to the occasion and posted very sound results.  Our continued focus on diversification of revenue and work on efficiency gains are being seen in our metrics, and that, coupled with our solid credit quality, keeps us very excited about our future.”

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SmartFinancial's Chairman, Miller Welborn, concluded: “The fourth quarter of 2020 and the entire year of 2020 exceeded our expectations. Our Board could not be happier or prouder of the entire team for the incredible effort and execution of our Strategic Plan. This COVID pandemic has affected a tremendous number of people and the SmartBank team continues to help our clients and the communities we serve.”

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Net Interest Income and Net Interest Margin

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Net interest income increased $463 thousand to $26.5 million for the fourth quarter of 2020 or approximately 1.8% when compared to $26.0 million for the third quarter of 2020, mainly attributable to a reduction in the cost of interest-bearing liabilities. Average earning assets totaled $3.0 billion, a decrease of $106.9 million, primarily driven by a decrease in cash and cash equivalents used to pay off $237.8 million in borrowings related to PPPLF funding.  Average interest-bearing liabilities decreased $139.4 million, primarily as a result of the PPPLF pay off, and was offset by an increase of $80.1 million in average interest-bearing deposits.

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The tax equivalent net interest margin was 3.57% for the fourth quarter of 2020, compared to 3.39% for the third quarter of 2020. The tax equivalent net interest margin was positively impacted by a 13 basis point increase in the average yield on interest-earning assets and a 5 basis point decline in the rate on interest-bearing liabilities over the prior quarter. Lower market interest rates continue to negatively impact earning asset yields, but these declines have been largely mitigated by a lower cost of funds. The primary drivers of the yield increase on interest-earning assets during the fourth quarter of 2020 was an increase in total loan fees of $748 thousand which was offset by a $192 thousand decline in discount accretion.  The increase in loan fees during the quarter is attributable to $2.2 million of the Paycheck Protection Program (“PPP”) fee accretion and $1.3 million of other loan fees compared to $1.8 million of PPP fee accretion, and $905 thousand of other loan fees recognized in the third quarter of 2020. Accretion income on acquired loans for the quarter totaled $768 thousand compared to $960 thousand recognized in the third quarter of 2020.  The Company continues to carry excess liquidity on the balance sheet that resulted from significant deposit growth during the second and third quarters and continued muted loan growth. The lower cost of deposits realized during the current quarter was attributable to the maturing and repricing of time deposits and the payoff of the PPPLF borrowing, which further contributed to the increase in the tax equivalent net interest margin.

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The yield on interest-bearing liabilities decreased to 0.60% for the fourth quarter of 2020 when compared to 0.65% for the third quarter of 2020. The cost of average interest-bearing deposits was 0.50% for the fourth quarter of 2020 compared to 0.59% for the third quarter of 2020, a decrease of 9 basis points. The lower cost of average deposits was attributable to the maturing and repricing of time deposits, with average costs decreasing 18 basis points.  The cost of total deposits for the fourth quarter of 2020 was 0.38%.

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

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​	​	​	​	​	​	​	​
​	​	Three Months Ended			​	​	​
​	​	Dec	​	Sep	​	Increase	​
Selected Interest Rates and Yields	​	2020	​	2020	​	(Decrease)	​
Yield on loans	​	4.72	%	4.71	%	0.01	%
Yield on earning assets, FTE	​	4.01	%	3.88	%	0.13	%
Cost of interest-bearing deposits	​	0.50	%	0.59	%	(0.09)	%
Cost of total deposits	​	0.38	%	0.44	%	(0.06)	%
Cost of interest-bearing liabilities	​	0.60	%	0.65	%	(0.05)	%
Net interest margin, FTE	​	3.57	%	3.39	%	0.18	%

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Provision for Loan Loss and Credit Quality

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There was no provision for loan losses during the fourth quarter of 2020, compared to $2.6 million in the third quarter of 2020.  At December 31, 2020, the allowance for loan losses was $18.3 million.  The allowance for loan losses to total loans was 0.77% as of December 31, 2020, compared to 0.78% as of September 30, 2020.  For the Company’s originated loans, the allowance for loan losses to originated loans, less PPP loans, was 0.96% as of December 31, 2020, compared to 1.00% as of September 31, 2020.  The remaining discounts on the acquired loan portfolio totaled $14.5 million, or 3.76% of acquired loans as of December 31, 2020.    During the quarter, the Company added a qualitative factor to the loan loss model, which is based upon the average number of COVID cases within our footprint.

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As of December 31, 2020, the Company had COIVD related modified loans totaling $17.2 million, or 0.7%, of the loan portfolio, as compared to $232.5 million or 9.7%, of the loan portfolio on September 30, 2020.

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

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​	​	​	​	​	​	​	​	​	​	​	​
​	​	​	Three Months Ended					​	​	​	​
​	​	​	​	Dec	​	​	Sep	​	​	​	​
​	Provision for Loan Losses Rollforward	​	​	2020	​	​	2020	​	​	Change	​
​	Beginning balance	​	$	18,817	​	$	16,254	​	$	2,563	​
​	Charge-offs	​	​	(520)	​	​	(174)	​	​	(346)	​
​	Recoveries	​	​	49	​	​	103	​	​	(54)	​
​	Net charge-offs	​	​	(471)	​	​	(71)	​	​	(400)	​
​	Provision	​	​	-	​	​	2,634	​	​	(2,634)	​
​	Ending balance	​	$	18,346	​	$	18,817	​	$	(471)	​
​	​	​	​	​	​	​	​	​	​	​	​
​	Allowance for loan losses to total loans, gross	​	​	0.77	%	​	0.78	%	​	(0.01)	%

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The Company is not required to implement the provisions of the CECL accounting standard until January 1, 2023 and is continuing to account for the allowance for loan losses under the incurred loss model.

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Nonperforming loans as a percentage of total loans was 0.24% as of December 31, 2020, an increase of fifteen basis points from the 0.09% reported in the third quarter of 2020.  Total nonperforming assets (which include nonaccrual loans, loans past due 90 days or more and still accruing, and other real estate owned) as a percentage of total assets was 0.31% as of December 31, 2020, as compared to 0.18% as of September 30, 2020.

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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					​	​	​	​
​	​	​	​	Dec	​	​	Sep	​	​	Increase	​
​	Credit Quality	​	​	2020	​	​	2020	​	​	(Decrease)	​
​	Nonaccrual loans	​	$	5,633	​	$	2,248	​	$	3,385	​
​	Loans past due 90 days or more and still accruing	​	​	149	​	​	-	​	​	149	​
​	Total nonperforming loans	​	​	5,782	​	​	2,248	​	​	3,534	​
​	Other real estate owned	​	​	4,619	​	​	3,932	​	​	687	​
​	Total nonperforming assets	​	$	10,401	​	$	6,180	​	$	4,221	​
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​	Nonperforming loans to total loans, gross	​	​	0.24	%	​	0.09	%	​	0.15	%
​	Nonperforming assets to total assets	​	​	0.31	%	​	0.18	%	​	0.13	%

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Noninterest Income

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Noninterest income increased $855 thousand to $5.0 million for the fourth quarter of 2020 compared to $4.1 million for the third quarter of 2020.  During the fourth quarter of 2020, the primary components of the changes in noninterest income were as follows:

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●	Increase in service charges on deposit accounts of $140 thousand, primarily related to increased transaction volume;
●	Increase in mortgage banking income of $302 thousand, continued to experience high volume during the quarter;
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●	Increase in other income of $476 thousand, related to $465 thousand of previously reserved funds from a dissolved loan program from the Alabama Department of Economic and Community Affairs (“ADECA”). These funds were placed in reserves for potential future losses. During the fourth quarter of 2020, these specific loans paid-off and the reserve was no longer required; and
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●	Decrease in interchange and debit card transaction fees of $108 thousand, due to a one-time credit of $130 thousand from vendor reported during the third quarter of 2020.
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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					​	​	​
​	​	​	Dec	​	​	Sep	​	​	Increase
Noninterest Income	​	​	2020	​	​	2020	​	​	(Decrease)
Service charges on deposit accounts	​	$	1,032	​	$	892	​	$	140
Gain (loss) on sale of securities, net	​	​	-	​	​	(9)	​	​	9
Mortgage banking income	​	​	1,331	​	​	1,029	​	​	302
Investment services	​	​	407	​	​	359	​	​	48
Insurance commissions	​	​	548	​	​	560	​	​	(12)
Interchange and debit card transaction fees	​	​	760	​	​	868	​	​	(108)
Other	​	​	898	​	​	422	​	​	476
Total noninterest income	​	$	4,976	​	$	4,121	​	$	855

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3

Noninterest Expense

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Noninterest expense was $20.0 million for the fourth quarter of 2020 compared to $19.2 million for the third quarter of 2020. During the fourth quarter of 2020, the primary components of the changes in noninterest expense were as follows:

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●	Salaries and employee benefits increased $484 thousand, increase is primarily attributable to year-end employee incentive accrual adjustments and various other employee benefit related accruals;
●	Professional services increased $192 thousand, due to increased volume of services performed;
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●	Amortization of intangibles increased $169 thousand, increase is from a cumulative adjustment for the amortization of intangible assets (client list and trademark) related to the insurance company purchased in the acquisition of Progressive Financial Group (“PFG”);
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●	Merger related and restructuring expense increased $412 thousand, primarily related from the consolidation and termination of two leased properties;
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●	FDIC insurance decreased $237 thousand, the decrease was related to an elevated third quarter expense due to an accrual adjustment; and
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●	Other real estate and loan related expenses decreased $127 thousand, primarily attributable to decreased activity in loan related activity.
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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					​	​	​
​	​	​	Dec	​	​	Sep	​	​	Increase
Noninterest Expense	​	​	2020	​	​	2020	​	​	(Decrease)
Salaries and employee benefits	​	$	11,516	​	$	11,032	​	$	484
Occupancy and equipment	​	​	2,256	​	​	2,186	​	​	70
FDIC insurance	​	​	297	​	​	534	​	​	(237)
Other real estate and loan related expenses	​	​	516	​	​	643	​	​	(127)
Advertising and marketing	​	​	181	​	​	253	​	​	(72)
Data processing	​	​	592	​	​	558	​	​	34
Professional services	​	​	786	​	​	594	​	​	192
Amortization of intangibles	​	​	571	​	​	402	​	​	169
Software as service contracts	​	​	590	​	​	573	​	​	17
Merger related and restructuring expenses	​	​	702	​	​	290	​	​	412
Other	​	​	1,946	​	​	2,102	​	​	(156)
Total noninterest expense	​	$	19,953	​	$	19,167	​	$	786

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Income Tax Expense

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Income tax expense was $2.5 million for the fourth quarter of 2020, an increase of $531 thousand, compared to $2.0 million for the third quarter of 2020.

For the fourth quarter of 2020, the effective tax rate was 21.7% compared to 23.5% for the third quarter of 2020.  The lower effective tax rate during the fourth quarter of 2020 was primarily from tax benefits associated with a program the State of Tennessee manages for Community Investment loans.

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Balance Sheet Trends

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Total assets at December 31, 2020, were $3.30 billion compared with $2.45 billion at December 31, 2019.  The increase of $855.8 million is primarily attributable to assets acquired from the acquisition of PFG of approximately $308.2 million, increase in cash and cash equivalents of $241.8 million and the net originations of $288.9 million of PPP loans.

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Total liabilities increased to $2.95 billion at December 31, 2020 from $2.14 billion at December 31, 2019.  The increase of $811.4 million was primarily from organic deposit growth of $486.0 million, acquired deposits from the acquisition of PFG in the amount of $272.0 million, and an increase in borrowings of $49.6 million.

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Shareholders' equity at December 31, 2020, totaled $357.2 million, an increase of $44.4 million, from December 31, 2019.  The increase in shareholders' equity was primarily from the issuance of common stock for the acquisition of PFG of $24.5 million, net income of $24.3 million for the year ended December 31, 2020 and a net change in accumulated other comprehensive income of $2.0 million,

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which was offset by the repurchase of the Company's common stock of $4.3 million and $3.0 million of dividends paid. Tangible book value per share (Non-GAAP) was $17.92 at December 31, 2020, an increase from $16.82 at December 31, 2019.  Tangible common equity (Non-GAAP) as a percentage of tangible assets (Non-GAAP) was 8.41% at December 31, 2020, compared with 9.93% at December 31, 2019.

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

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​	​	Dec		​	Dec		​	Increase		​
Selected Balance Sheet Information	​	2020		​	2019		​	(Decrease)		​
Total assets	​	$	3,304,949	​	$	2,449,123	​	$	855,826	​
Total liabilities	​	​	2,947,781	​	​	2,136,376	​	​	811,405	​
Total equity	​	​	357,168	​	​	312,747	​	​	44,421	​
Securities available-for-sale, at fair value	​	​	215,634	​	​	178,348	​	​	37,286	​
Loans	​	​	2,382,243	​	​	1,897,392	​	​	484,851	​
Deposits	​	​	2,805,215	​	​	2,047,214	​	​	758,001	​
Borrowings	​	​	81,199	​	​	31,623	​	​	49,576	​

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Conference Call Information

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SmartFinancial issued this earnings release for the fourth quarter of 2020 on Tuesday, January 19, 2021, and will host a conference call on Wednesday, January 20, 2021, at 10:00 a.m. ET.  To access this interactive teleconference, dial (888) 317-6003 or (412) 317-6061 and enter the confirmation number, 0205038.  A replay of the conference call will be available through January 20, 2022, by dialing (877) 344-7529 or (412) 317-0088 and entering the confirmation number, 10151327.  Conference call materials will be published on the Company’s webpage located at http://www.smartfinancialinc.com/CorporateProfile, at 9:00 am ET prior to the conference call.

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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 35 branches across East and Middle 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	Ron Gorczynski
President & CEO	Executive Vice President, Chief Financial Officer
(865) 868-0613   billy.carroll@smartbank.com	(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 shareholder' 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 income (x) operating noninterest expense, (xi) tangible common equity, (xii) average tangible common equity, (xiii) tangible book value; and ratios derived therefrom, in its analysis of the company's performance. Operating earnings excludes the following from net income: securities gains and losses, expenses related to the termination of an Alabama Department of Economic and Community Affairs (“ADECA”) loan program, merger termination fee of $6.4 million in the second quarter of 2019, merger related and restructuring expenses.  Operating return on average assets is the annualized operating earnings divided by average assets.  Operating pre-tax pre-provision return on average assets is the annualized operating pre-tax pre-provision income divided by average assets. Operating return on average shareholders' equity is the annualized operating earnings divided by average equity. Return on average tangible common equity is the annualized net income divided by average tangible common equity. Operating return on average tangible common equity is the annualized operating earnings divided by average tangible common equity (Non-GAAP). The operating efficiency ratio includes an adjustment for taxable equivalent yields and excludes securities gains and losses and merger related and restructuring expenses from the efficiency ratio. Operating noninterest income excludes the following from noninterest income: securities gains and losses, expenses related to the termination of the ADECA loan program and the merger termination fee of $6.4 million in the second quarter of 2019.  Operating pre-tax pre-provision income is net interest expense plus operating noninterest income less operating noninterest expense.  Operating noninterest expense excludes the following from noninterest expense: prior year adjustments to salaries, merger related and restructuring expenses and certain franchise tax true-up expenses. Tangible common equity and average tangible common equity excludes goodwill and other intangible assets from shareholders' equity and average shareholders' equity, respectively.  Tangible book value is tangible common equity divided by common shares outstanding.  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 potential effects of the COVID-19 pandemic on the Company’s business and financial results and conditions, are not historical in nature and can generally be identified by such words as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “may,” “estimate,” and similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results of SmartFinancial to differ materially from future results expressed or implied by such forward-looking statements. Such risks, uncertainties, and other factors include, among others, (1) risks associated with our growth strategy, including a failure to implement our growth plans or an inability to manage our growth effectively; (2) claims and litigation arising from our business activities and from the companies we acquire, which may relate to contractual issues, environmental laws, fiduciary responsibility, and other matters; (3) the risk that cost savings and revenue synergies from recently completed acquisitions may not be realized or may take longer than anticipated to realize; (4) disruption from recently completed acquisitions with customer, supplier, employee, or other business relationships; (5) our ability to successfully integrate the businesses acquired as part of previous acquisitions with the business of SmartBank; (6) risks related to the completed acquisition of PFG; (7) the risk that the anticipated benefits from the completed acquisition of PFG may not be realized in the time frame anticipated; (8) changes in management’s plans for the future; (9) prevailing, or changes in, economic or political conditions, particularly in our market areas; (10) credit risk associated with our lending activities; (11) changes in interest rates, loan demand, real estate values, or competition; (12) changes in accounting principles, policies, or guidelines; (13) changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; (14) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic; (15) the impact of the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (16) potential increases in the provision for loan losses resulting from the COVID-19 pandemic; and (17) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in SmartFinancial’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, in each case filed with or furnished to the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website (www.sec.gov). Undue reliance should not be placed on forward-looking statements.  SmartFinancial disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events, or otherwise.

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7

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Ending Balances
​	​	Dec			Sep			Jun			Mar			Dec
​	​	2020		​	2020		​	2020		​	2020		​	2019
Assets:	​	​	​		​			​			​			​
Cash and cash equivalents	​	$	481,719	​	$	541,815	​	$	399,467	​	$	309,089	​	$	183,971
Securities available-for-sale, at fair value	​		215,634	​		214,634	​		219,631	​		201,002	​		178,348
Other investments	​		14,794	​		14,829	​		14,829	​		14,113	​		12,913
Loans held for sale	​		11,721	​		11,292	​		6,330	​		6,045	​		5,856
Loans	​		2,382,243	​		2,404,057	​		2,408,284	​		2,139,247	​		1,897,392
Less: Allowance for loan losses	​		(18,346)	​		(18,817)	​		(16,254)	​		(13,431)	​		(10,243)
Loans, net	​		2,363,897	​		2,385,240	​		2,392,030	​		2,125,816	​		1,887,149
Premises and equipment, net	​		72,682	​		73,934	​		73,868	​		73,801	​		59,433
Other real estate owned	​		4,619	​		3,932	​		5,524	​		5,894	​		1,757
Goodwill and core deposit intangibles, net	​		86,471	​		86,710	​		86,327	​		86,503	​		77,193
Bank owned life insurance	​		31,215	​		31,034	​		30,853	​		30,671	​		24,949
Other assets	​		22,197	​		24,168	​		37,126	​		20,781	​		17,554
Total assets	​	$	3,304,949	​	$	3,387,588	​	$	3,265,985	​	$	2,873,715	​	$	2,449,123
Liabilities:	​			​			​			​			​
Deposits:	​			​			​			​			​
Noninterest-bearing demand	​	$	685,957	​	$	669,733	​	$	645,650	​	$	431,781	​	$	364,155
Interest-bearing demand	​		649,129	​		534,128	​		479,212	​		444,141	​		380,234
Money market and savings	​		919,631	​		871,098	​		762,246	​		730,392	​		623,284
Time deposits	​		550,498	​		577,064	​		652,581	​		735,616	​		679,541
Total deposits	​		2,805,215	​		2,652,023	​		2,539,689	​		2,341,930	​		2,047,214
Borrowings	​		81,199	​		319,391	​		318,855	​		131,603	​		31,623
Subordinated debt	​		39,346	​		39,325	​		39,304	​		39,283	​		39,261
Other liabilities	​		22,021	​		27,060	​		24,649	​		24,699	​		18,278
Total liabilities	​		2,947,781	​		3,037,799	​		2,922,497	​		2,537,515	​		2,136,376
Shareholders' Equity:	​			​			​			​			​
Common stock	​		15,107	​		15,233	​		15,217	​		15,222	​		14,008
Additional paid-in capital	​		252,693	​		254,626	​		254,396	​		254,356	​		232,732
Retained earnings	​		87,185	​		78,918	​		73,283	​		67,869	​		65,839
Accumulated other comprehensive income (loss)	​		2,183	​		1,012	​		592	​		(1,247)	​		168
Total shareholders' equity	​		357,168	​		349,789	​		343,488	​		336,200	​		312,747
Total liabilities & shareholders' equity	​	$	3,304,949	​	$	3,387,588	​	$	3,265,985	​	$	2,873,715	​	$	2,449,123

​

​

​

​

8

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands except share and per share data)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	Three Months Ended															Year Ended
​	Dec			Sep			Jun			Mar			Dec			Dec			Dec
​	2020		​	2020		​	2020		​	2020		​	2019		​	2020		​	2019
Interest income:	​			​			​			​			​		​	​	​	​	​	​
Loans, including fees	$	28,594	​	$	28,621	​	$	28,663	​	$	26,434	​	$	25,398	​	$	112,312	​	$	101,002
Securities available-for-sale:			​			​			​			​			​			​
Taxable		609	​		546	​		589	​		679	​		698	​		2,423	​		3,289
Tax-exempt		306	​		364	​		416	​		283	​		345	​		1,369	​		1,518
Federal funds sold and other earning assets		303	​		327	​		277	​		602	​		587	​		1,509	​		2,646
Total interest income		29,812	​		29,858	​		29,945	​		27,998	​		27,028	​		117,613	​		108,455
Interest expense:			​			​			​			​			​			​
Deposits		2,580	​		2,897	​		3,366	​		4,754	​		5,271	​		13,597	​		21,915
Borrowings		142	​		334	​		249	​		89	​		70	​		816	​		319
Subordinated debt		584	​		584	​		584	​		584	​		584	​		2,334	​		2,341
Total interest expense		3,306	​		3,815	​		4,199	​		5,427	​		5,924	​		16,747	​		24,575
Net interest income		26,506	​		26,043	​		25,746	​		22,571	​		21,104	​		100,866	​		83,880
Provision for loan losses		—	​		2,634	​		2,850	​		3,200	​		685	​		8,683	​		2,599
Net interest income after provision for loan losses		26,506	​		23,409	​		22,896	​		19,371	​		20,419	​		92,183	​		81,281
Noninterest income:			​			​			​			​			​			​
Service charges on deposit accounts		1,032	​		892	​		709	​		770	​		773	​		3,403	​		2,902
Gain (loss) on sale of securities, net		—	​		(9)	​		16	​		—	​		—	​		6	​		34
Mortgage banking		1,331	​		1,029	​		931	​		584	​		374	​		3,875	​		1,566
Investment services		407	​		359	​		363	​		437	​		261	​		1,566	​		946
Insurance commissions		548	​		560	​		473	​		269	​		—	​		1,850	​		—
Interchange and debit card transaction fees		760	​		868	​		508	​		276	​		163	​		2,413	​		628
Merger termination fee		—	​		—	​		—	​		—	​		—	​		—	​		6,400
Other		898	​		422	​		511	​		482	​		1,269	​		2,313	​		2,839
Total noninterest income		4,976	​		4,121	​		3,511	​		2,818	​		2,840	​		15,426	​		15,315
Noninterest expense:			​			​			​			​			​			​
Salaries and employee benefits		11,516	​		11,032	​		10,357	​		10,006	​		10,278	​		42,911	​		36,635
Occupancy and equipment		2,256	​		2,186	​		1,996	​		1,911	​		1,749	​		8,348	​		6,716
FDIC insurance		297	​		534	​		180	​		180	​		—	​		1,190	​		140
Other real estate and loan related expense		516	​		643	​		346	​		545	​		253	​		2,050	​		1,320
Advertising and marketing		181	​		253	​		202	​		198	​		166	​		834	​		983
Data processing		592	​		558	​		594	​		538	​		530	​		2,281	​		1,995
Professional services		786	​		594	​		868	​		711	​		652	​		2,958	​		2,375
Amortization of intangibles		571	​		402	​		405	​		362	​		340	​		1,740	​		1,368
Software as service contracts		590	​		573	​		561	​		470	​		500	​		2,195	​		2,195
Merger related and restructuring expenses		702	​		290	​		1,477	​		2,096	​		427	​		4,565	​		3,219
Other		1,946	​		2,102	​		1,820	​		1,776	​		1,157	​		7,647	​		6,205
Total noninterest expense		19,953	​		19,167	​		18,806	​		18,793	​		16,052	​		76,719	​		63,151
Income before income taxes		11,529	​		8,363	​		7,601	​		3,396	​		7,206	​		30,890	​		33,445
Income tax expense		2,499	​		1,968	​		1,427	​		664	​		473	​		6,558	​		6,897
Net income	$	9,030	​	$	6,395	​	$	6,174	​	$	2,732	​	$	6,733	​	$	24,332	​	$	26,548
Earnings per common share:			​			​			​			​			​			​
Basic	$	0.60	​	$	0.42	​	$	0.41	​	$	0.19	​	$	0.48	​	$	1.63	​	$	1.90
Diluted	$	0.59	​	$	0.42	​	$	0.41	​	$	0.19	​	$	0.48	​	$	1.62	​	$	1.89
Weighted average common shares outstanding:			​			​			​			​			​			​
Basic		15,109,298	​		15,160,579	​		15,152,768	​		14,395,103	​		13,965,877	​		14,955,423	​		13,953,497
Diluted		15,182,796	​		15,210,611	​		15,202,335	​		14,479,679	​		14,066,269	​		15,019,175	​		14,046,366

​

​

​

​

​

​

9

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

YIELD ANALYSIS

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended
​	​	December 31, 2020							​	September 30, 2020							​	December 31, 2019
​		Average			​	​		Yield/		Average			​	​		Yield/		Average				​		Yield/
​	​	Balance		​	Interest^1^		​	Cost^1^	​	Balance		​	Interest^1^		​	Cost^1^	​	Balance		​	Interest^1^		​	Cost^1^
Assets:		​			​					​			​					​			​				​
Loans, including fees^2^	​	$	2,401,406	​	$	28,506		4.72	%	$	2,410,173	​	$	28,508		4.71	%	$	1,876,953	​	$	25,350		5.36	%
Loans held for sale	​	​	10,191	​	​	88	​	3.45	%	​	8,048	​	​	113	​	5.57	%	​	4,548	​	​	48	​	4.19	%
Taxable securities	​		119,936	​		609		2.02	%		132,642	​		546		1.64	%		116,278	​		698		2.38	%
Tax-exempt securities	​		90,200	​		456		2.01	%		88,129	​		515		2.32	%		59,048	​		461		3.09	%
Federal funds sold and other earning assets	​		349,167	​		303		0.35	%		438,785	​		327		0.30	%		133,681	​		587		1.74	%
Total interest-earning assets	​		2,970,900	​		29,962		4.01	%		3,077,777	​		30,009		3.88	%		2,190,508	​		27,144		4.92	%
Noninterest-earning assets	​		255,477	​		​		​	​		262,764	​					​		190,083	​					​
Total assets	​	$	3,226,377	​	​	​	​	​	​	$	3,340,541	​					​	$	2,380,591	​					​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Liabilities and Stockholders’ Equity:	​			​			​		​			​					​			​					​
Interest-bearing demand deposits	​	$	570,326	​		230	​	0.16	%	$	509,999	​		199		0.16	%	$	351,901	​		486		0.55	%
Money market and savings deposits	​		903,235	​		774	​	0.34	%		833,022	​		704		0.34	%		632,555	​		1,695		1.06	%
Time deposits	​		565,237	​		1,576	​	1.11	%		615,714	​		1,994		1.29	%		633,867	​		3,090		1.93	%
Total interest-bearing deposits	​		2,038,798	​		2,580	​	0.50	%		1,958,735	​		2,897		0.59	%		1,618,323	​		5,271		1.29	%
Borrowings^3^	​		99,777	​		142	​	0.57	%		319,265	​		334		0.42	%		30,870	​		70		0.90	%
Subordinated debt	​		39,332	​		584	​	5.90	%		39,311	​		584		5.91	%		39,248	​		584		5.90	%
Total interest-bearing liabilities	​		2,177,907	​		3,306	​	0.60	%		2,317,311	​		3,815		0.65	%		1,688,441	​		5,924		1.39	%
Noninterest-bearing deposits	​		670,820	​		​	​	​	​		649,489	​					​		363,542	​					​
Other liabilities	​		23,624	​		​	​	​	​		25,834	​					​		19,836	​					​
Total liabilities	​		2,872,351	​		​	​	​	​		2,992,634	​					​		2,071,819	​					​
Shareholders' equity	​		354,026	​		​	​	​	​		347,907	​					​		308,772	​					​
Total liabilities and shareholders' equity	​	$	3,226,377	​	​	​	​	​	​	$	3,340,541	​					​	$	2,380,591	​					​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net interest income, taxable equivalent	​	​	​	​	$	26,656	​	​	​			​	$	26,194			​			​	$	21,220			​
Interest rate spread	​		​	​		​	​	3.41	%			​				3.22	%			​				3.52	%
Tax equivalent net interest margin	​		​	​		​	​	3.57	%			​				3.39	%			​				3.84	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Percentage of average interest-earning assets to average interest-bearing liabilities	​		​	​		​	​	136.41	%			​				132.82	%			​				129.74	%
Percentage of average equity to average assets	​		​	​		​	​	10.97	%			​				10.41	%			​				12.97	%

​

^1^Taxable equivalent

^2^Includes average balance of $296,337 and $295,045 in PPP loans for the quarters ended December 31, 2020 and September 30, 2020, respectively.

^3^ Includes average balance of $18,092 and $237,780 in Paycheck Protection Program Liquidity Facility (“PPPLF”) funding for the quarters ended December 31, 2020 and September 30, 2020, respectively.

​

​

​

10

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

YIELD ANALYSIS

​

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

​

^1^Taxable equivalent

^2^Includes average balance of $201,470 in PPP loans for the twelve months ended December 31, 2020.

^3^ Includes average balance of $91,190 in PPPLF funding for the twelve months ended December 31, 2020.

​

​

​

11

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	As of and for The Three Months Ended
​		Dec			Sep			Jun			Mar			Dec
​	​	2020		​	2020		​	2020		​	2020		​	2019
Composition of Loans:		​		​	​	​	​	​	​		​			​		​
Commercial real estate		​		​	​	​	​	​	​		​			​		​
owner occupied	​	$	463,771	​	$	467,569	​	$	464,073	​	$	473,398	​	$	429,269	​
non-owner occupied	​		549,205	​		563,082	​		552,958	​		535,637	​		476,038	​
Commercial real estate, total	​		1,012,976	​		1,030,651	​		1,017,031	​		1,009,035	​		905,307	​
Commercial & industrial	​		634,446	​		644,498	​		637,450	​		377,173	​		337,075	​
Construction & land development	​		278,075	​		275,172	​		279,216	​		253,445	​		227,626	​
Consumer real estate	​		443,930	​		440,310	​		459,861	​		482,728	​		417,481	​
Consumer and other	​		12,816	​		13,426	​		14,726	​		16,866	​		9,903	​
Total loans	​	$	2,382,243	​	$	2,404,057	​	$	2,408,284	​	$	2,139,247	​	$	1,897,392	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Asset Quality and Additional Loan Data:	​			​	​	​	​	​	​	​			​			​
Nonperforming loans	​	$	5,782	​	$	2,248	​	$	3,776	​	$	3,069	​	$	3,350	​
Other real estate owned	​		4,619	​		3,932	​		5,524	​		5,894	​		1,757	​
Total nonperforming assets	​	$	10,401	​	$	6,180	​	$	9,300	​	$	8,963	​	$	5,107	​
Restructured loans not included in nonperforming loans	​	$	257	​	$	8	​	$	9	​	$	9	​	$	61	​
Net charge-offs to average loans (annualized)	​		0.08	%		0.01	%		—	%		—	%		0.01	%
Allowance for loan losses to loans	​		0.77	%		0.78	%		0.67	%		0.63	%		0.54	%
Nonperforming loans to total loans, gross	​		0.24	%		0.09	%		0.16	%		0.14	%		0.18	%
Nonperforming assets to total assets	​		0.31	%		0.18	%		0.28	%		0.31	%		0.21	%
Acquired loan fair value discount balance	​	$	14,467	​	$	15,141	​	$	16,187	​	$	17,237	​	$	15,348	​
Accretion income on acquired loans	​		768	​		960	​		888	​		1,841	​		1,375	​
PPP net fees deferred balance	​	​	4,190	​	​	6,348	​	​	8,582	​	​	—	​	​	—	​
PPP net fees recognized	​	​	2,157	​	​	1,812	​	​	1,909	​	​	—	​	​	—	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Capital Ratios:	​			​	​	​	​	​	​	​			​			​
Equity to Assets	​		10.81	%		10.33	%		10.52	%		11.70	%		12.77	%
Tangible common equity to tangible assets (Non-GAAP)^1^	​		8.41	%		7.97	%		8.09	%		8.96	%		9.93	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
SmartFinancial, Inc.^2^	​			​	​	​	​	​	​	​			​			​
Tier 1 leverage	​		8.69	%		8.78	%		8.83	%		10.28	%		10.34	%
Common equity Tier 1	​		11.61	%		11.33	%		10.92	%		10.87	%		11.61	%
Tier 1 capital	​		11.61	%		11.33	%		10.92	%		10.87	%		11.61	%
Total capital	​		14.07	%		13.81	%		13.25	%		13.13	%		14.02	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
SmartBank	​	****	Estimated^3^	​	​	​	​	​	​	​			​			​
Tier 1 leverage	​		9.58	%		9.74	%		9.82	%		11.42	%		11.41	%
Common equity Tier 1	​		12.79	%		12.57	%		12.14	%		12.05	%		12.81	%
Tier 1 risk-based capital	​		12.79	%		12.57	%		12.14	%		12.05	%		12.81	%
Total risk-based capital	​		13.57	%		13.37	%		12.82	%		12.62	%		13.31	%

​

^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.

​

​

​

12

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands except share and per share data)

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	As of and for The														​	​	As of and for The					​
​	Three Months Ended																Year Ended					​
​	Dec			Sep			Jun			Mar			Dec			​	Dec			Dec		​
​	2020		​	2020		​	2020		​	2020		​	2019		​	​	2020		​	2019		​
Selected Performance Ratios (Annualized):	​			​			​			​			​		​	​	​		​	​		​
Return on average assets	​	1.11	%	​	0.76	%	​	0.79	%	​	0.43	%	​	1.12	%	​	​	0.79	%	​	1.13	%
Return on average shareholders' equity	​	10.15	%	​	7.31	%	​	7.31	%	​	3.33	%	​	8.65	%	​	​	7.13	%	​	8.89	%
Return on average tangible common equity¹	​	13.43	%	​	9.72	%	​	9.80	%	​	4.41	%	​	11.55	%	​	​	9.50	%	​	12.04	%
Noninterest income / average assets	​	0.61	%	​	0.49	%	​	0.45	%	​	0.44	%	​	0.47	%	​	​	0.50	%	​	0.65	%
Noninterest expense / average assets	​	2.46	%	​	2.28	%	​	2.41	%	​	2.96	%	​	2.68	%	​	​	2.50	%	​	2.70	%
Efficiency ratio	​	63.38	%	​	63.54	%	​	64.28	%	​	74.02	%	​	67.04	%	​	​	65.97	%	​	63.66	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operating Selected Performance Ratios (Annualized):	​		​	​		​	​		​	​		​	​		​	​	​		​	​		​
Operating return on average assets^1^	​	1.14	%	​	0.79	%	​	0.93	%	​	0.67	%	​	1.08	%	​	​	0.89	%	​	1.01	%
Operating PTPP return on average assets^1^	​	1.45	%	​	1.35	%	​	1.53	%	​	1.37	%	​	1.31	%	​	​	1.43	%	​	1.39	%
Operating return on average shareholders' equity^1^	​	10.34	%	​	7.57	%	​	8.58	%	​	5.22	%	​	8.34	%	​	​	8.02	%	​	7.91	%
Operating return on average tangible common equity^1^	​	13.69	%	​	10.06	%	​	11.51	%	​	6.90	%	​	11.12	%	​	​	10.67	%	​	10.71	%
Operating efficiency ratio^1^	​	60.86	%	​	62.25	%	​	58.95	%	​	65.46	%	​	64.95	%	​	​	61.75	%	​	64.29	%
Operating noninterest income / average assets^1^	​	0.56	%	​	0.49	%	​	0.45	%	​	0.44	%	​	0.35	%	​	​	0.49	%	​	0.35	%
Operating noninterest expense / average assets^1^	​	2.37	%	​	2.25	%	​	2.23	%	​	2.63	%	​	2.56	%	​	​	2.36	%	​	2.55	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Selected Interest Rates and Yields:	​		​	​		​	​		​	​		​	​		​	​	​		​	​		​
Yield on loans	​	4.72	%	​	4.71	%	​	4.87	%	​	5.35	%	​	5.36	%	​	​	4.89	%	​	5.49	%
Yield on earning assets, FTE	​	4.01	%	​	3.88	%	​	4.22	%	​	4.83	%	​	4.92	%	​	​	4.20	%	​	5.10	%
Cost of interest-bearing deposits	​	0.50	%	​	0.59	%	​	0.71	%	​	1.10	%	​	1.29	%	​	​	0.71	%	​	1.35	%
Cost of total deposits	​	0.38	%	​	0.44	%	​	0.54	%	​	0.91	%	​	1.06	%	​	​	0.55	%	​	1.12	%
Cost of interest-bearing liabilities	​	0.60	%	​	0.65	%	​	0.77	%	​	1.20	%	​	1.39	%	​	​	0.79	%	​	1.46	%
Net interest margin, FTE	​	3.57	%	​	3.39	%	​	3.63	%	​	3.90	%	​	3.84	%	​	​	3.61	%	​	3.95	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Per Common Share:	​			​			​			​			​		​	​	​		​	​		​
Net income, basic	$	0.60	​	$	0.42	​	$	0.41	​	$	0.19	​	$	0.48	​	​	$	1.63	​	$	1.90	​
Net income, diluted		0.59	​		0.42	​		0.41	​		0.19	​		0.48	​	​		1.62	​		1.89	​
Operating earnings, basic¹		0.61	​		0.44	​		0.48	​		0.30	​		0.46	​	​		1.83	​		1.69	​
Operating earnings, diluted¹		0.61	​		0.44	​		0.48	​		0.30	​		0.46	​	​		1.82	​		1.68	​
Book value		23.64	​		22.96	​		22.57	​		22.09	​		22.33	​	​		23.64	​		22.33	​
Tangible book value¹		17.92	​		17.27	​		16.90	​		16.40	​		16.82	​	​		17.92	​		16.82	​
Common shares outstanding		15,107,214	​		15,233,227	​		15,216,932	​		15,221,990	​		14,008,233	​	​		15,107,214	​		14,008,233	​

​

¹See reconciliation of Non-GAAP measures

​

​

​

13

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

NON-GAAP RECONCILIATIONS

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended															​	Year Ended					​
​		Dec			Sep			Jun			Mar			Dec				Dec			Dec		​
​	​	2020		​	2020		​	2020		​	2020		​	2019		​	​	2020		​	2019		​
Operating Earnings:		​			​			​			​			​		​	​	​	​	​	​	​	​
Net income (GAAP)	​	$	9,030	​	$	6,395	​	$	6,174	​	$	2,732	​	$	6,733	​	​	$	24,332	​	$	26,548	​
Noninterest income:	​			​			​			​			​			​	​			​			​
Securities gains (losses), net	​		—	​		9	​		(16)	​		—	​		—	​	​		(6)	​		(34)	​
ADECA termination proceeds	​		(465)	​		—	​		—	​		—	​		(720)	​	​		(465)	​		(720)	​
Merger termination fee	​		—	​		—	​		—	​		—	​		—	​	​		—	​		(6,400)	​
Noninterest expenses:	​		​	​		​	​		​	​		​	​		​	​	​		​	​		​	​
Salaries - prior year adjustment	​		—	​		—	​		—	​		—	​		603	​	​		—	​		603	​
Merger related and restructuring expenses	​		702	​		290	​		1,477	​		2,096	​		427	​	​		4,565	​		3,219	​
Other - prior year franchise tax true-up	​		—	​		—	​		—	​		—	​		(312)	​	​		—	​		(312)	​
Income taxes:	​		​	​		​	​		​	​		​	​		​	​	​		​	​		​	​
Tax benefit - prior year amended return	​		—	​		—	​		—	​		—	​		(304)	​	​		—	​		(304)	​
Income tax effect of adjustments	​		(62)	​		(77)	​		(382)	​		(548)	​		60	​	​		(1,071)	​		1,015	​
Operating earnings (Non-GAAP)	​	$	9,205	​	$	6,617	​	$	7,253	​	$	4,280	​	$	6,487	​	​	$	27,355	​	$	23,615	​
Operating earnings per common share (Non-GAAP):	​			​			​			​			​			​	​			​			​
Basic	​	$	0.61	​	$	0.44	​	$	0.48	​	$	0.30	​	$	0.46	​	​	$	1.83	​	$	1.69	​
Diluted	​		0.61	​		0.44	​		0.48	​		0.30	​		0.46	​	​		1.82	​		1.68	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operating Noninterest Income:	​			​			​			​			​			​	​			​			​
Noninterest income (GAAP)	​	$	4,976	​	$	4,121	​	$	3,511	​	$	2,818	​	$	2,840	​	​	$	15,426	​	$	15,315	​
Securities gains (losses), net	​		—	​		9	​		(16)	​		—	​		—	​	​		(6)	​		(34)	​
ADECA termination proceeds	​		(465)	​		—	​		—	​		—	​		(720)	​	​		(465)	​		(720)	​
Merger termination fee	​		—	​		—	​		—	​		—	​		—	​	​		—	​		(6,400)	​
Operating noninterest income (Non-GAAP)	​	$	4,511	​	$	4,130	​	$	3,495	​	$	2,818	​	$	2,120	​	​	$	14,955	​	$	8,161	​
Operating noninterest income (Non-GAAP)/average assets^1^	​		0.56	%		0.49	%		0.45	%		0.44	%		0.35	%	​		0.49	%		0.35	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operating Noninterest Expense:	​			​			​			​			​			​	​			​			​
Noninterest expense (GAAP)	​	$	19,953	​	$	19,167	​	$	18,806	​	$	18,793	​	$	16,052	​	​	$	76,719	​	$	63,151	​
Salaries - prior year adjustment	​		—	​		—	​		—	​		—	​		(603)	​	​		—	​		(603)	​
Merger related and restructuring expenses	​		(702)	​		(290)	​		(1,477)	​		(2,096)	​		(427)	​	​		(4,565)	​		(3,219)	​
Other - prior year franchise tax true-up	​		—	​		—	​		—	​		—	​		312	​	​		—	​		312	​
Operating noninterest expense (Non-GAAP)	​	$	19,251	​	$	18,877	​	$	17,329	​	$	16,697	​	$	15,334	​	​	$	72,154	​	$	59,641	​
Operating noninterest expense (Non-GAAP)/average assets^2^	​		2.37	%		2.25	%		2.23	%		2.63	%		2.56	%	​		2.36	%		2.55	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operating Pre-tax Pre-provision ("PTPP") Earnings:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Net interest income (GAAP)	​	$	26,506	​	$	26,043	​	$	25,746	​	$	22,571	​	$	21,104	​	​	$	100,866	​	$	83,880	​
Operating noninterest income	​	​	4,511	​	​	4,130	​	​	3,495	​	​	2,818	​	​	2,120	​	​	​	14,955	​	​	8,161	​
Operating noninterest expense	​	​	(19,251)	​	​	(18,877)	​	​	(17,329)	​	​	(16,697)	​	​	(15,334)	​	​	​	(72,154)	​	​	(59,641)	​
Operating PTPP earnings (Non-GAAP)	​	$	11,766	​	$	11,296	​	$	11,912	​	$	8,692	​	$	7,890	​	​	$	43,667	​	$	32,400	​
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Non-GAAP Return Ratios:	​			​			​			​			​			​	​			​			​
Operating return on average assets (Non-GAAP)^3^	​		1.14	%		0.79	%		0.93	%		0.67	%		1.08	%	​		0.89	%		1.01	%
Operating PTPP return on average assets (Non-GAAP)^4^	​	​	1.45	%	​	1.35	%	​	1.53	%	​	1.37	%	​	1.31	%	​	​	1.43	%	​	1.39	%
Return on average tangible common equity (Non-GAAP)^5^	​		13.43	%		9.72	%		9.80	%		4.41	%		11.55	%	​		9.50	%		12.04	%
Operating return on average shareholder equity (Non-GAAP)^6^	​		10.34	%		7.57	%		8.58	%		5.22	%		8.34	%	​		8.02	%		7.91	%
Operating return on average tangible common equity (Non-GAAP)^7^	​		13.69	%		10.06	%		11.51	%		6.90	%		11.12	%	​		10.67	%		10.71	%
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Operating Efficiency Ratio:	​			​			​			​			​			​	​			​			​
Efficiency ratio (GAAP)	​		63.38	%		63.54	%		64.28	%		74.02	%		67.04	%	​		65.97	%		63.66	%
Adjustment for taxable equivalent yields	​		(0.30)	%		(0.32)	%		(0.34)	%		(0.34)	%		(0.33)	%	​		(0.33)	%		(0.29)	%
Adjustment for securities gains (losses)	​		—	%		0.02	%		(0.04)	%		—	%		—	%	​		(0.01)	%		(0.02)	%
Adjustment for merger related income and costs	​		(2.22)	%		(0.99)	%		(4.95)	%		(8.21)	%		(1.76)	%	​		(3.88)	%		0.94	%
Operating efficiency ratio (Non-GAAP)	​		60.86	%		62.25	%		58.95	%		65.46	%		64.95	%	​		61.75	%		64.29	%

​

^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 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).

​

​

14

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

NON-GAAP RECONCILIATIONS

​

​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
​	​	Three Months Ended															Year Ended
​		Dec			Sep			Jun			Mar			Dec			Dec			Dec
​	​	2020		​	2020		​	2020		​	2020		​	2019		​	2020		​	2019
Tangible Common Equity:		​			​			​			​			​		​	​	​	​	​	​
Shareholders' equity (GAAP)	​	$	357,168	​	$	349,789	​	$	343,488	​	$	336,200	​	$	312,747	​	$	357,168	​	$	312,747
Less goodwill and other intangible assets	​		86,471	​		86,710	​		86,327	​		86,503	​		77,193	​		86,471	​		77,193
Tangible common equity (Non-GAAP)	​	$	270,697	​	$	263,079	​	$	257,161	​	$	249,697	​	$	235,554	​	$	270,697	​	$	235,554
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Average Tangible Common Equity:	​			​			​			​			​			​			​
Average shareholders' equity (GAAP)	​	$	354,026	​	$	347,907	​	$	339,861	​	$	329,692	​	$	308,772	​	$	341,170	​	$	298,729
Less average goodwill and other intangible assets	​		86,561	​		86,206	​		86,484	​		80,370	​		77,400	​		84,913	​		78,270
Average tangible common equity (Non-GAAP)	​	$	267,465	​	$	261,701	​	$	253,377	​	$	249,322	​	$	231,372	​	$	256,257	​	$	220,459
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Tangible Book Value per Common Share:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Book value per common share (GAAP)	​	$	23.64	​	$	22.96	​	$	22.57	​	$	22.09	​	$	22.33	​	$	23.64	​	$	22.33
Adjustment due to goodwill and other intangible assets	​	​	(5.72)	​	​	(5.69)	​	​	(5.67)	​	​	(5.69)	​	​	(5.51)	​	​	(5.72)	​	​	(5.51)
Tangible book value per common share (Non-GAAP)^1^	​	$	17.92	​	$	17.27	​	$	16.90	​	$	16.40	​	$	16.82	​	$	17.92	​	$	16.82
​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Tangible Common Equity to Tangible Assets:	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​	​
Total Assets	​	$	3,304,949	​	$	3,387,588	​	$	3,265,985	​	$	2,873,715	​	$	2,449,123	​	$	3,304,949	​	$	2,449,123
Less goodwill and other intangibles	​	​	86,471	​	​	86,710	​	​	86,327	​	​	86,503	​	​	77,193	​	​	86,471	​	​	77,193
Tangible Assets (Non-GAAP):	​	$	3,218,478	​	$	3,300,878	​	$	3,179,658	​	$	2,787,212	​	$	2,371,930	​	$	3,218,478	​	$	2,371,930
Tangible common equity to tangible assets (Non-GAAP)	​	​	8.41%	​	​	7.97%	​	​	8.09%	​	​	8.96%	​	​	9.93%	​	​	8.41%	​	​	9.93%

​

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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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15

Exhibit 99.2

INVESTOR CALL<br>4Q 2020<br>January 20, 2021, 10:00am<br>Webcast: www.smartbank.com<br>(Investor Relations)<br>Audio Only: 888-317-6003<br>Confirmation #: 0205038<br>Miller Welborn<br>Chairman of the Board<br>Billy Carroll<br>President & CEO
Legal Disclaimer 2<br>Forward-Looking Statements<br>This presentation may contain statements that are based on management’s current<br>estimates or expectations of future events or future results, and that may be deemed to<br>constitute forward-looking statements as defined under the Private Securities Litigation<br>Reform Act of 1995. These statements, including statements regarding the potential effects<br>of the COVID-19 pandemic on SmartFinancial’s business and financial results and conditions,<br>are not historical in nature and can generally be identified by such words as “expect,”<br>“anticipate,” “intend,” “plan,” “believe,” “seek,” “may,” “estimate,” and similar expressions.<br>All forward-looking statements are subject to risks, uncertainties, and other factors that may<br>cause the actual results of SmartFinancial to differ materially from future results expressed<br>or implied by such forward-looking statements. Such risks, uncertainties, and other factors<br>include, among others, (1) the risk of litigation and reputational risk associated with historic<br>acquisition activity;(2) the risk that cost savings and revenue synergies from recently<br>completed acquisitions may not be realized or may take longer than anticipated to realize;<br>(3) disruption from recently completed acquisitions with customer, supplier, employee, or<br>other business relationships;(4) our ability to successfully integrate the businesses acquired<br>as part of previous acquisitions with the business of SmartBank;(5) risks related to the<br>completed acquisition of Progressive Financial Group, Inc.(“PFG”);(6) the risk that the<br>anticipated benefits from the completed acquisition of PFG may not be realized in the time<br>frame anticipated;(7) changes in management’s plans for the future;(8) prevailing, or<br>changes in, economic or political conditions, particularly in our market areas;(9) credit risk<br>associated with our lending activities;(10) changes in interest rates, loan demand, real estate<br>values, or competition;(11) changes in accounting principles, policies, or guidelines;(12)<br>changes in applicable laws, rules, or regulations, including changes to statutes, regulations or<br>regulatory policies or practices as a result of, or in response to, COVID-19;(13) adverse<br>results from current or future litigation, regulatory examinations or other legal and/or<br>regulatory actions, including as a result of the Company’s participation in and execution of<br>government programs related to the COVID-19 pandemic;(14) the impact of the COVID-19<br>pandemic on the Company’s assets, business, cash flows, financial condition, liquidity,<br>prospects and results of operations;(15) potential increases in the provision for loan losses<br>resulting from the COVID-19 pandemic; and (16) other general competitive, economic,<br>political, and market factors, including those affecting our business, operations, pricing,<br>products, or services. These and other factors that could cause results to differ materially<br>from those described in the forward-looking statements can be found in SmartFinancial’s<br>most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current<br>reports on Form 8-K, in each case filed with or furnished to the Securities and Exchange<br>Commission (the “SEC”) and available on the SEC’s website (www.sec.gov). Undue reliance<br>should not be placed on forward-looking statements. SmartFinancial disclaims any obligation<br>to update or revise any forward-looking statements contained in this release, which speak<br>only as of the date hereof, whether as a result of new information, future events, or<br>otherwise.<br>Non-GAAP Financial Measures<br>Statements included in this presentation include Non-GAAP financial measures and should be read along<br>with the accompanying tables, which provide a reconciliation of Non-GAAP financial measures to GAAP<br>financial measures. SmartFinancial management uses several Non-GAAP financial measures, including:<br>(i) operating earnings, (ii) operating return on average assets, (iii) operating return on average<br>shareholder equity, (iv) return on average tangible common equity, (v) operating return on average<br>tangible common equity, (vi) operating efficiency ratio;(vii) tangible common equity;(viii) average<br>tangible common equity;(ix) tangible book value;(x) operating pre-tax pre-provision earnings;(xi)<br>operating noninterest income;(xii) operating noninterest expense; and ratios derived therefrom, in its<br>analysis of the company's performance. Operating earnings excludes the following from net income:<br>securities gains and losses, merger termination fee of $6.4 million in the second quarter of 2019, merger<br>related and restructuring expenses, the effect of the December 2017 tax law change on deferred tax<br>assets, tax benefit from director options previously exercised, and the income tax effect of adjustments.<br>Operating return on average assets is the annualized operating earnings divided by average assets.<br>Operating return on average shareholder equity is the annualized operating earnings divided by average<br>equity. Return on average tangible common equity is the annualized net income divided by average<br>tangible common equity. Operating return on average tangible common equity is the annualized<br>operating earnings divided by average tangible common equity (Non-GAAP). The operating efficiency<br>ratio includes an adjustment for taxable equivalent yields and excludes securities gains and losses and<br>merger related and restructuring expenses from the efficiency ratio. Tangible common equity and<br>average tangible common equity excludes goodwill and other intangible assets from shareholders’<br>equity (GAAP) and average shareholders’ equity (GAAP). Tangible book value excludes goodwill and<br>other intangible assets less shareholders’ equity (GAAP) divided by common shares outstanding.<br>Operating pre-tax pre-provision earnings is net interest income (GAAP) plus operating noninterest<br>income (Non-GAAP) less operating noninterest expense (Non-GAAP). Operating noninterest income<br>excludes the following from noninterest income: securities gains and losses, expenses related to the<br>termination of the ADECA loan program and the merger termination fee of $6.4 million in the second<br>quarter of 2019. Operating noninterest expense excludes the following from noninterest expense: prior<br>year adjustments to salaries, merger related and restructuring expenses and certain franchise tax true-<br>up expenses. Management believes that Non-GAAP financial measures provide additional useful<br>information that allows investors to evaluate the ongoing performance of the company and provide<br>meaningful comparisons to its peers. Management believes these non-GAAP financial measures also<br>enhance investors' ability to compare period-to-period financial results and allow investors and<br>company management to view our operating results excluding the impact of items that are not reflective<br>of the underlying operating performance. Non-GAAP financial measures should not be considered as an<br>alternative to any measure of performance or financial condition as promulgated under GAAP, and<br>investors should consider SmartFinancial's performance and financial condition as reported under GAAP<br>and all other relevant information when assessing the performance or financial condition of the<br>company. Non-GAAP financial measures have limitations as analytical tools, and investors should not<br>consider them in isolation or as a substitute for analysis of the results or financial condition as reported<br>under GAAP.
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Overview of SmartFinancial 3<br>▪ SmartFinancial, Inc. (Nasdaq: SMBK) is a $3.3 billion asset<br>bank holding company headquartered in Knoxville,<br>Tennessee<br>▪ Operates one subsidiary bank, SmartBank, which was founded in<br>January 2007<br>▪ Located primarily in attractive, high-growth markets throughout<br>East/Mid Tennessee, Alabama and the Florida Panhandle<br>▪ 470 full-time employees<br>▪ Balance Sheet (12/31/20)<br>▪ Assets: $3.3 billion<br>▪ Gross Loans: $2.4 billion<br>▪ Deposits: $2.8 billion<br>▪ Shareholders’ Equity / Tangible Common Equity (Non-GAAP): $357.2<br>million / $270.7 million<br>▪ Profitability (Q4 ’20)<br>▪ Net Income / Operating Earnings (Non-GAAP): $9.0 million / $9.2<br>million<br>▪ Operating Pre-Tax Pre-Provision Earnings (Non-GAAP): $11.8 million<br>▪ ROAA / Operating ROAA (Non-GAAP): 1.11% / 1.14%<br>▪ ROATCE / Operating ROATCE (Non-GAAP): 13.43% / 13.69%<br>▪ Efficiency Ratio / Operating Efficiency Ratio (Non-GAAP): 63.4% / 60.9%<br>▪ Asset Quality<br>▪ Superior asset quality and proven credit culture<br>▪ NPAs / Total Assets of 0.31%<br>▪ Allowance / Total Loans: 0.77%<br>▪ Regularly Quarterly Dividend<br>▪ Declared quarterly cash dividend of $0.05 per share<br>Financial data as of or for the three months ended 12/31/20<br>Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>Footprint:<br>35 full service<br>branches<br>1 LPO
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Culture 4<br>We are building a culture where Associates thrive and<br>are empowered to be leaders. The core values that<br>we have established as a company help us operate in<br>unison and have become a critical part of our culture.<br>Our Associates are key to SmartBank’s success.<br>POSITIONING STATEMENT<br>At SmartBank, delivering unparalleled value to our<br>Shareholders, Associates, Clients and the Communities<br>we serve drives every decision and action we take.<br>Exceptional value means being there with smart<br>solutions, fast responses and deep commitment<br>every single time. By doing this, we will create the<br>Southeast’s next, great community banking franchise.
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COVID-19 Update 5<br>COVID-19 Actions<br>• Pandemic Response Team meets regularly to share latest COVID updates or impacts that we are<br>seeing in all regions across our footprint.<br>• Continue to evaluate markets on a case by case basis as to bank operations or any changes that<br>need to be made to protect associates and clients.<br>• Ongoing communication shared with associates on best practices regarding a safe work<br>environment.<br>• Provided all branches with acrylic counter-shields to be used in teller stations and pods to create<br>space between client and associate.<br>• Provided all locations with social distance floor markers.<br>• Provided all locations with marketing collateral (signage posters/tent cards) with tips to promote a<br>healthy & safe working environment.
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Fourth Quarter Financial Highlights
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Quarterly Highlights 7<br>Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>($ in thousands, except per share data) 4Q20 3Q20 Change<br>Net interest income 26,506 $ 26,043 $ 463 $<br>Provision for loan losses - 2,634 (2,634)<br>Noninterest income 4,976 4,121 855<br>Noninterest expense 19,953 19,167 786<br>Income tax expense 2,499 1,968 531<br>Net income 9,030 6,395 2,635<br>Non-GAAP Reconciliations<br>Noninterest income (465) 9 (474)<br>Noninterest expense 702 290 412<br>Income taxes (62) (77) 15<br>Operating earnings (Non-GAAP) 9,205 $ 6,617 $ 2,588 $<br>Operating Pre-Tax Pre-Provision Earnings (Non-GAAP) 11,766 $ 11,296 $ 470 $<br>Non-GAAP Performance Metrics<br>Diluted operating earnings per share 0.61 $ 0.44 $ 0.17 $<br>Tangible book value per share 17.92 17.27 0.65<br>Operating return on average assets 1.14% 0.79% 0.35%<br>Operating PTPP return on average assets 1.45% 1.35% 0.10%<br>Operating return on average tangible common equity 13.69% 10.06% 3.63%<br>Operating efficiency ratio 60.86% 62.25% (1.39%)
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Investing in Technology 8<br>Launched:<br>▪ Launched Zelle payment app – Q2 2020<br>▪ Hired EVP	Chief Information Officer – Q2 2020<br>▪ Upgrades to BillPay – Q2 2020<br>▪ Modernized cloud security, device security, and authentication capabilities – Q3 2020<br>▪ New advanced threat protection and information security monitoring services – Q3 2020<br>▪ New centralized IT Service Management Solutions – Q4 2020<br>Forthcoming:<br>▪ Advanced treasury management online banking system – Q1 2021<br>▪ ATM/ITM fleet refresh and deposit automation – Q2 2021<br>▪ Continued execution of SmartBank digital transformation plan<br>Technology Initiatives
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Operating PTPP Earnings 9<br>Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>$8,786<br>$8,039 $7,772<br>$8,700<br>$7,890<br>$8,692<br>$11,912<br>$11,296<br>$11,766<br>$0<br>$2,000<br>$4,000<br>$6,000<br>$8,000<br>$10,000<br>$12,000<br>$14,000<br>4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20<br>Operating PTPP Earnings (Non-GAAP)<br>($ in thousands)<br>Operating PTPP Earnings, Less Accretion & PPP Fees Accretion PPP fees
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Performance Trends 10<br>$2,274 $2,354 $2,391 $2,390 $2,449<br>$2,874<br>$3,266 $3,388 $3,305<br>$0<br>$500<br>$1,000<br>$1,500<br>$2,000<br>$2,500<br>$3,000<br>$3,500<br>$4,000<br>4Q18 1Q19 2Q19 3Q19 4Q19 1Q20 2Q20 3Q20 4Q20<br>Total Assets, Loans, and Deposits<br>($ in millions)<br>Assets Loans Deposits
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Performance Trends 11<br>(1) Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>1.08 %<br>0.67 %<br>0.93 %<br>0.79 %<br>1.14 %<br>1.31 % 1.37 %<br>1.53 %<br>1.35 % 1.45 %<br>—%<br>0.20 %<br>0.40 %<br>0.60 %<br>0.80 %<br>1.00 %<br>1.20 %<br>1.40 %<br>1.60 %<br>1.80 %<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>ROAA (%): Reported, Operating, Operating PTPP ROAA<br>ROAA Operating ROAA ⁽¹⁾ Operating PTPP ROAA ⁽¹⁾<br>11.1 %<br>6.9 %<br>11.5 %<br>10.1 %<br>13.7 %<br>—%<br>2.0 %<br>4.0 %<br>6.0 %<br>8.0 %<br>10.0 %<br>12.0 %<br>14.0 %<br>16.0 %<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>ROATCE (%)<br>ROATCE ⁽¹⁾ Operating ROATCE ⁽¹⁾
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Performance Trends 12<br>(1) Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>$22.33 $22.09 $22.57 $22.96<br>$23.64<br>$16.82 $16.40 $16.90 $17.27<br>$17.92<br>$15.00<br>$17.00<br>$19.00<br>$21.00<br>$23.00<br>$25.00<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Book Value per Share<br>Book Value Tangible Book Value ⁽¹⁾<br>67.0 %<br>74.0 %<br>64.3 % 63.5 % 63.4 %<br>45.0 %<br>50.0 %<br>55.0 %<br>60.0 %<br>65.0 %<br>70.0 %<br>75.0 %<br>80.0 %<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Efficiency Ratio (%)<br>Efficiency Ratio Operating Efficiency Ratio ⁽¹⁾
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Net Interest Income 13<br>3.84% 3.90% 3.63% 3.39% 3.57%<br>5.36% 5.35%<br>4.87% 4.71% 4.72%<br>0.00%<br>1.00%<br>2.00%<br>3.00%<br>4.00%<br>5.00%<br>6.00%<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Net Interest Margin<br>Net Interest Margin (FTE) Loan Yield<br>Cost of Funds Interest Bearing Liabilities<br>4Q20 3Q20 Change<br>Loans, less accretion & PPP fees 4.23% 4.25% (0.02%)<br>Accretion 0.13% 0.16% (0.03%)<br>PPP Fees 0.36% 0.30% 0.06%<br>Loans including fees 4.72% 4.71% 0.01%<br>Loans held for sale 3.45% 5.57% (2.12%)<br>Taxable securities 2.02% 1.64% 0.38%<br>Tax-exempt securities (FTE) 2.01% 2.32% (0.31%)<br>Federal funds and other investments 0.35% 0.30% 0.05%<br>Interest earning asset yields 4.01% 3.88% 0.13%<br>Total interest-bearing deposits 0.50% 0.59% (0.09%)<br>Borrowings 0.57% 0.42% 0.15%<br>Subordinated debt 5.90% 5.91% (0.01%)<br>Total interest-bearing liabilities 0.60% 0.65% (0.05%)<br>Net interest margin (FTE) 3.57% 3.39% 0.18%<br>Cost of funds 0.46% 0.51% (0.05%)<br>($ in thousands)<br>Net interest income (FTE) 26,656 $ 26,194 $ 462 $<br>Average earning assets 2,970,900 3,077,777 (106,877)<br>Average Yields and Rates<br>($ in millions)<br>4Q20 3Q20 Change<br>Cash and cash equivalents 481.7 $ 541.8 $ (60.1) $<br>Unpledged investment securities 120.4 139.7 (19.3)<br>Correspondent banks 69.6 69.6 -<br>FRB discount window 149.2 166.0 (16.8)<br>FHLB 35.5 43.6 (8.1)<br>Holding company line of credit 25.0 25.0 -<br>Total 881.4 $ 985.7 $ (104.3) $<br>Liqudity Funding Sources
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Operating Noninterest Income (Non-GAAP) 14<br>Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>$2,120<br>$2,818<br>$3,495<br>$4,130<br>$4,511<br>$0<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>$5,000<br>$5,500<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Operating Noninterest Income (Non-GAAP)<br>($ in millions)<br>Other noninterest income<br>Interchange fees<br>Investment services income<br>Insurance commissions<br>Mortgage banking income<br>Service charges on deposit accounts
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2021 Noninterest Income Strategic Goals 15<br>2021 Strategic Goals:<br>• Enhanced CRM and synergy initiatives for increased revenues<br>• Increased efficiency across all units<br>• Digital innovation to enhance customer experience
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Operating Noninterest Expense (Non-GAAP) 16<br>Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix<br>$15,334<br>$16,697 $17,329<br>$18,877 $19,251<br>$0<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>$20,000<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Operating Noninterest Expense (Non-GAAP)<br>($ in thousands)<br>Other<br>Professional services<br>Amortization of intangibles<br>Data processing<br>Occupancy and equipment<br>Salaries & benefits
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Attractive Deposit Mix 17<br>Noninterest<br>demand<br>24%<br>Interest-bearing demand<br>23%<br>Money market and<br>savings<br>33%<br>Time deposits<br>20%<br>Deposit Composition (12/31/20)<br>0.00%<br>0.50%<br>1.00%<br>1.50%<br>2.00%<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Historical Cost of Deposits<br>Cost of Deposits Fed Funds Target<br>Cost of Interest Bearing Liabilities<br>$2,047<br>$2,342<br>$2,540 $2,652<br>$2,805<br>$0<br>$500<br>$1,000<br>$1,500<br>$2,000<br>$2,500<br>$3,000<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Historical Deposit Composition<br>($ in millions)<br>Noninterest demand Interest-bearing demand<br>Money market and savings Time deposits
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Overview of Loan Portfolio 18<br>$1,897<br>$2,139<br>$2,408 $2,404 $2,382<br>$0<br>$500<br>$1,000<br>$1,500<br>$2,000<br>$2,500<br>$3,000<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Historical Loan Composition<br>($ in millions)<br>C&I C&D CRE, Owner Occupied CRE, Non Owner Occupied Consumer RE<br>C&I<br>27%<br>C&D<br>12%<br>CRE, Owner<br>Occupied<br>19%<br>CRE, Non<br>Owner<br>Occupied<br>23%<br>Consumer RE<br>19%<br>Loan Composition (12/31/20)<br>265.3%<br>88.6%<br>0%<br>100%<br>200%<br>300%<br>400%<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>CRE Ratios<br>CRE C&D
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Asset Quality 19<br>▪ NPAs increased due to one credit moving to<br>nonaccrual status and transfer of closed branch to<br>ORE<br>▪ Delinquencies remain at low levels<br>▪ Asset quality remains strong with nonperforming<br>assets to total assets of 0.31%<br>▪ Credit quality remains strong with classified loans /<br>total loans of 0.44%<br>0.27%<br>0.39%<br>0.27% 0.29%<br>0.44%<br>0.01% 0.00% 0.00% 0.01%<br>0.08%<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>0.50%<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Credit Quality<br>Classified Loans / Total Loans Net Chargeoffs<br>$7,156<br>$15,821<br>$9,005<br>$6,089<br>$9,606<br>0.38%<br>0.74%<br>0.37% 0.25%<br>0.40%<br>0.20%<br>0.40%<br>0.60%<br>0.80%<br>1.00%<br>1.20%<br>1.40%<br>1.60%<br>1.80%<br>$0<br>$5,000<br>$10,000<br>$15,000<br>$20,000<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Delinquent and Nonaccruals / Total Loans<br>($ in thousands)<br>Total Delinquent and Nonaccrual Loans<br>Total Delinquent and Nonaccrual Loans / Total Loans<br>$5,107<br>$8,963 $9,300<br>$6,180<br>$10,401<br>0.00%<br>0.50%<br>1.00%<br>1.50%<br>$0<br>$5,000<br>$10,000<br>$15,000<br>$20,000<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Nonperforming Assets<br>($ in thousands)<br>Nonperforming Loans OREO Nonperforming Assets / Total Assets
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COVID-19 Modified Loans 20<br>Source: Company information<br>Note: As of December 31, 2020<br>Industries with Modifications O/S Balance<br>% of Total<br>Loan Portfolio<br>% of Total<br>Modified Loans<br>Hospitality 10,469 $ 0.4% 60.9%<br>Restaurants 2,983 0.1% 17.3%<br>Overnight Rentals 1,484 0.1% 8.7%<br>Transportation 618 0.0% 3.7%<br>CRE Retail 192 0.0% 1.1%<br>Fitness/Recreation Centers 25 0.0% 0.1%<br>All Other Miscellaneous Industries 1,429 0.1% 8.2%<br>Total Modifications 17,200 0.7% 100.0%<br>Total Loan Portfolio 2,382,243 $ 100.0%<br>($ in thousands)<br>▪ Outstanding COVID-19 modified loan balance at the end of December totaled approximately $17<br>million<br>▪ Outstanding modifications comprised of 2nd COVID related payment deferrals<br>▪ Expected to resume payments in January and February<br>▪ Total decrease from June 2020 of approximately $608 million
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Paycheck Protection Program 21<br>($ in thousands)<br>Source: Company information<br>Note: As of December 31, 2020<br>PPP Forgiven , 4%<br>PPP Remaining<br>Balances, 96%<br>PPP Forgiveness<br>PPP forgiveness underway; SmartBank SBA team primed for second round funding<br>▪ Streamlined digital platform for application submission<br>▪ Second round application window open<br>▪ Enhanced internal procedures for faster execution<br>▪ Implemented forgiveness tool to ensure client-friendly process<br>State Loan Amount Loan Count<br>Alabama 59,348 $ 535<br>Florida 17,847 195<br>Georgia 774 31<br>Tennessee 202,036 1,930<br>Other 8,888 172<br>Total O/S Balance 288,893 2,863<br>Total Forgiveness 11,896 94<br>Total Originations 300,789 $ 2,957<br>Total PPP Loans
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Reserve Reconciliation 22<br>0.00%<br>0.30%<br>0.60%<br>0.90%<br>$0<br>$5<br>$10<br>$15<br>$20<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Total Reserves ($mm)<br>Allowance for Loan Losses Acquired Loan Fair Value Discounts Allowance for Loan Losses / Total Loans<br>($ in thousands) 4Q19 1Q20 2Q20 3Q20 4Q20<br>Allowance for Loan Losses - Originated 9,969 $ 12,412 $ 14,590 $ 16,704 $ 16,464 $<br>Allowance for Loan Losses - Acquired 274 1,019 1,664 2,113 1,882<br>Acquired Loan Fair Value Discounts 15,348 17,237 16,187 15,141 14,467<br>Total Reserves 25,591 $ 30,668 $ 32,441 $ 33,958 $ 32,813 $<br>Originated Loans 1,521,364 $ 1,621,128 $ 1,639,805 $ 1,673,985 $ 1,708,686 $<br>SBA PPP Loans - - 292,774 300,788 288,893<br>Acquired Loans 376,028 518,119 475,705 429,284 384,664<br>Total Loans 1,897,392 $ 2,139,247 $ 2,408,284 $ 2,404,057 $ 2,382,243 $<br>Allowance / Total Loans 0.54% 0.63% 0.67% 0.78% 0.77%<br>Allowance / Total Loans, less PPP Loans - - 0.77% 0.89% 0.88%<br>Allowance / Originated Loans, less PPP Loans 0.66% 0.77% 0.89% 1.00% 0.96%<br>Allowance / Acquired Loans 0.07% 0.20% 0.35% 0.49% 0.49%<br>Discount / Acquired Loans 4.08% 3.33% 3.40% 3.53% 3.76%<br>Total Reserves / Total Loans 1.35% 1.43% 1.35% 1.41% 1.38%<br>Total Reserves / Total Loans, less PPP Loans 1.35% 1.43% 1.53% 1.61% 1.57%
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Current Capital Position 23<br>Note: Data as of the three months ended each respective quarter<br>Basel III Regulatory Capital Minimum To Be Considered “Well Capitalized”<br>9.93% 8.96% 8.09% 7.97% 8.41%<br>0.0%<br>4.0%<br>8.0%<br>12.0%<br>16.0%<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>TCE / TA (%)<br>10.34% 10.28%<br>8.83% 8.78% 8.69%<br>0.0%<br>4.0%<br>8.0%<br>12.0%<br>16.0%<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Leverage Ratio (%)<br>11.61% 10.87% 10.92% 11.33% 11.61%<br>0.0%<br>4.0%<br>8.0%<br>12.0%<br>16.0%<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>CET1 Ratio (%)<br>14.02% 13.13% 13.25% 13.81% 14.07%<br>0.0%<br>4.0%<br>8.0%<br>12.0%<br>16.0%<br>4Q19 1Q20 2Q20 3Q20 4Q20<br>Total Risk-Based Capital Ratio (%)<br>Well Cap.<br>5%<br>Well Cap.<br>6.5%<br>Well Cap.<br>10%
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Appendix
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Non-GAAP Reconciliations 25<br>1. Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets.<br>2. Operating PTPP return on average assets (Non-GAAP) is the annualized operating PTPP earnings (Non-GAAP) divided by average assets.<br>3. Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP).<br>4. Operating return on average shareholder equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average shareholder equity.<br>5. Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP).<br>6. Note: “ADECA” represents a program administered by the Alabama Department of Economic and Community Affairs<br>($ in thousands, except per share data) 4Q20 3Q20 2Q20 1Q20 4Q19<br>Operating Earnings<br>Net income (GAAP) $ 9,030 $ 6,395 $ 6,174 2,732 $ 6,733 $<br>Noninterest income:<br>Securities (gains) losses - 9 (16) - -<br>ADECA termination proceeds (465) - - - (720)<br>Merger termination fee - - - - -<br>Noninterest expenses:<br>Salaries - prior year adjustment - - - - 603<br>Merger related and restructuring expenses 702 290 1,477 2,096 427<br>Other - prior year franchise tax true-up - - - (312)<br>Income taxes:<br>Tax benefit - prior year amended return - - - (304)<br>Income tax effect of adjustments (62) (77) (382) (548) 60<br> Operating earnings (Non-GAAP) $ 9,205 $ 6,617 $ 7,253 4,280 $ 6,487 $<br>Operating earnings per common share:<br>Basic $ 0.61 $ 0.44 $ 0.48 $ 0.30 $ 0.46<br>Diluted 0.61 0.44 0.48 0.30 0.46<br>Operating Noninterest Income<br>Noninterest income (GAAP) $ 4,976 $ 4,121 $ 3,511 2,818 $ 2,840 $<br>Securities (gain) losses - 9 (16) - -<br>ADECA termination proceeds (465) - - - (720)<br>Merger termination fee - - - - -<br>Operating noninterest income (Non-GAAP) $ 4,511 $ 4,130 $ 3,495 2,818 $ 2,120 $<br>Operating Noninterest Expense<br>Noninterest expense (GAAP) $ 19,953 $ 19,167 $ 18,806 18,793 $ 16,052 $<br>Salaries - prior year adjustment - - - - (603)<br>Merger related and restructuring charges (702) (290) (1,477) (2,096) (427)<br>Other - prior year franchise tax true-up - - - - 312<br>Operating noninterest expense (Non-GAAP) $ 19,251 $ 18,877 $ 17,329 16,697 $ 15,334 $<br>Operating Pre-Tax Pre-Provison ("PTPP") Income<br>Net interest income (GAAP) $ 26,506 $ 26,043 25,746 $ 22,571 $ 21,104 $<br>Operating noninterest income (Non-GAAP) 4,511 4,130 3,495 2,818 2,120<br>Operating noninterest expense (Non-GAAP) (19,251) (18,877) (17,329) (16,697) (15,334)<br> Operating PTPP income (Non-GAAP) $ 11,766 $ 11,296 11,912 $ 8,692 $ 7,890 $<br>Non-GAAP Return Ratios<br>Operating return on average assets (Non-GAAP)(1) 1.14% 0.79% 0.93% 0.67% 1.08%<br>Operating PTPP return on average assets (Non-GAAP)(2) 1.45% 1.35% 1.53% 1.37% 1.31%<br>Return on average tangible common equity (Non-GAAP)(3) 13.43% 9.72% 9.80% 4.41% 11.55%<br>Operating return on average shareholder equity (Non-GAAP)(4) 10.34% 7.57% 8.58% 5.22% 8.34%<br>Operating return on average tangible common equity (Non-GAAP)(5) 13.69% 10.06% 11.51% 6.90% 11.12%<br>Operating Efficiency Ratio<br>Efficiency ratio (GAAP) 63.38% 63.54% 64.28% 74.02% 67.04%<br>Adjustment for taxable equivalent yields (0.30%) (0.32%) (0.34%) (0.34%) (0.33%)<br>Adjustment for securities gains (losses) - 0.02% (0.04%) --<br>Adjustment for merger expenses (2.22%) (0.99%) (4.95%) (8.21%) (1.76%)<br>Operating efficiency ratio (Non-GAAP) 60.86% 62.25% 58.95% 65.46% 64.95%
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Non-GAAP Reconciliations 26<br>1. Book value per share is computed by dividing total stockholders’ equity by common shares outstanding. Tangible book value per share is computed by dividing total<br>stockholders’ equity, less goodwill and other intangible assets by common shares outstanding<br>($ in thousands) 4Q20 3Q20 2Q20 1Q20 4Q19<br>Tangible Common Equity:<br>Shareholders' equity (GAAP) $ 357,168 $ 349,789 $ 343,488 336,200 $ 312,747 $<br>Less goodwill and other intangible assets 86,471 86,710 86,327 86,503 77,193<br>Tangible Common Equity (Non-GAAP) $ 270,697 $ 263,079 $ 257,161 249,697 $ 235,554 $<br>Average Tangible Common Equity:<br>Average shareholders' equity (GAAP) $ 354,026 $ 347,907 $ 339,861 329,692 $ 308,772 $<br>Less goodwill and other intangible assets 86,561 86,206 86,484 80,370 77,400<br>Average Tangible Common Equity (Non-GAAP) $ 267,465 $ 261,701 $ 253,377 249,322 $ 231,372 $<br>Tangible Book Value per Common Share:<br>Book value per common share (GAAP) $ 23.64 $ 22.96 $ 22.57 $ 22.09 $ 22.33<br>Adjustment due to goodwill and other intangible assets (5.72) (5.69) (5.67) (5.69) (5.51)<br>Tangible book value per common share (Non-GAAP)(1) $ 17.92 $ 17.27 $ 16.90 $ 16.40 $ 16.82<br>Tangible Common Equity to Tangible Assets:<br>Total Assets $ 3,304,909 $ 3,387,588 $ 3,265,985 $ 2,873,715 $ 2,449,123<br>Less goodwill and other intangibles 86,471 86,710 86,327 86,503 77,193<br>Tangible Assets (Non-GAAP): $ 3,218,478 $ 3,300,878 $ 3,179,658 $ 2,787,212 $ 2,371,930<br>Tangible common equity to tangible assets (Non-GAAP): 8.41% 7.97% 8.09% 8.96% 9.93%
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Investor Contact 27<br>Billy Carroll<br>President & CEO<br>865.868.0613<br>billy.carroll@smartbank.com<br>Miller Welborn<br>Chairman<br>423.385.3067<br>miller.welborn@smartbank.com<br>5401 Kingston Pike, Suite 600<br>Knoxville, TN 37919
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