SmartFinancial Announces Results for the Second Quarter 2026, Regular Quarterly Cash Dividend

Press Release View all news SmartFinancial Announces Results for the Second Quarter 2026, Regular Quarterly Cash Dividend 7/20/2026 5:00 PM ET SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NYSE: SMBK), today announced net income of $16.3 million, or $0.96 per diluted common share, for the second quarter of 2026, compared to net income of $11.7 million, or $0.69 per diluted common share, for the second quarter of 2025, and compared to prior quarter net income of $13.7 million, or $0.81 per diluted common share. Highlights for the Second Quarter of 2026 Operating earnings 1 of $16.3 million, or $0.96 per diluted common shareNet organic loan and lease growth of $165 million representing 15% annualized quarter-over-quarter increaseSurpassed $6 billion in total assets during the quarterCore deposit 2 growth of $83 million representing 6% annualized quarter-over-quarter increaseQuarter-over-quarter tangible book value per common share 1 growth of 13% annualizedRecertified as a Great Place to Work by over 97% of SmartBank Associates Billy Carroll, President & CEO, stated: “Our second quarter results reflect steady progress in the execution of our strategy. During the quarter, we generated approximately 15% annualized loan growth and expanded our net interest margin to 3.52%, while maintaining excellent asset quality. Diluted earnings per share increased to $0.96, an improvement of $0.15 from the first quarter, and tangible book value per common share grew quarter over quarter by 13% annualized. We also generated positive operating leverage as revenue growth outpaced expense growth during the quarter. Pipelines across the Company remain healthy, and we believe the disruption created by ongoing consolidation and operational challenges at certain competitors continues to create meaningful opportunities to deepen relationships and gain market share. While we recognize there is still work to do, our strong momentum gives us confidence in the long-term trajectory of the Company and our ability to continue creating value for shareholders. I want to thank our associates for their hard work and commitment to our clients, which continue to drive our performance and position the Company for future growth.” SmartFinancial's Chairman, Miller Welborn, concluded: “The momentum we continue to build across SmartBank, reflects the strength of our franchise and the commitment of our associates. Being recertified as a Great Place to Work by more than 97% of our associates is particularly meaningful because it speaks to the culture that has been foundational to our success. The results achieved this quarter reflect the disciplined execution of our associates across the Company and the benefits of the investments we have made in our markets, people, and operating platform. I want to thank our associates for the exceptional work they do every day to serve our clients and create long-term value for our shareholders. As we look ahead, we remain excited about the opportunities and confident in our ability to capitalize on them.” Net Interest Income and Net Interest Margin Net interest income was $48.1 million for the second quarter of 2026, compared to $45.9 million for the prior quarter. Average earning assets totaled $5.52 billion, an increase of $131.7 million from the prior quarter. The balances of average earning assets increased quarter-over-quarter, primarily from an increase in average loans and leases of $176.3 million and average securities of $9.7 million, offset by a decrease in average federal funds sold and other earning assets of $54.3 million. Average interest-bearing liabilities increased by $153.3 million from the prior quarter, primarily attributable to an increase in average interest-bearing deposits of $115.5 million and borrowings of $37.7 million. The tax equivalent net interest margin was 3.52% for the second quarter of 2026, up from 3.48% for the prior quarter. This increase is primarily related to the increase in asset yields, outpacing the increase in liability costs. The yield on loans and leases, excluding loan fees, fully taxable equivalent (“FTE”) was 5.95% for the second quarter of 2026, compared to 5.93% for the prior quarter. The cost of total deposits for the second quarter of 2026 was 2.15%, compared to 2.12% in the prior quarter. The cost of interest-bearing liabilities was 2.74% for the second quarter of 2026, compared to 2.72% in the prior quarter. The cost of average interest-bearing deposits was 2.62% for the second quarter of 2026, compared to 2.60% for the prior quarter, an increase of 2 basis points. ____________________ 1Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliations. 2 Core deposits include all deposits less brokered and one-way buy Certificate of Deposit Account Registry Service (“CDARS”) deposits. The following table presents selected interest rates and yields for the periods indicated: Three Months Ended Jun Mar Increase Selected Interest Rates and Yields 2026 2026 (Decrease) Yield on loans and leases, excluding loan fees, FTE 5.95 % 5.93 % 0.02 % Yield on loans and leases, FTE 6.07 % 6.02 % 0.05 % Yield on earning assets, FTE 5.70 % 5.62 % 0.08 % Cost of interest-bearing deposits 2.62 % 2.60 % 0.02 % Cost of total deposits 2.15 % 2.12 % 0.03 % Cost of interest-bearing liabilities 2.74 % 2.72 % 0.02 % Net interest margin, FTE 3.52 % 3.48 % 0.04 % Allowance for Credit Losses on Loans and Leases and Credit Quality At June 30, 2026, the allowance for credit losses was $45.3 million. The allowance for credit losses to total loans and leases was 0.97% as of June 30, 2026, and March 31, 2026. During the first quarter of 2026, SmartBank updated its ACL loss model by adopting a discounted cash flow methodology, refining key assumptions and qualitative factors, and enhancing its use of macroeconomic drivers. These changes contributed to a higher provision for credit losses during the first quarter. The following table presents detailed information related to the provision for credit losses for the periods indicated (dollars in thousands): Three Months Ended Jun Mar Increase Allowance for Credit Losses on Loans and Leases Rollforward 2026 2026 (Decrease) Beginning balance $ 43,950 $ 40,906 $ 3,044 Charge-offs (658 ) (229 ) (429 ) Recoveries 105 60 45 Net charge-offs (553 ) (169 ) (384 ) Provision for credit losses(1) 1,855 3,213 (1,358 ) Ending balance $ 45,252 $ 43,950 $ 1,302 Allowance for credit losses to total loans and leases 0.97 % 0.97 % - % (1) The current quarter-ended and prior quarter-ended provision excludes an unfunded commitments release of $392 thousand and a provision of $926 thousand, respectively. At June 30, 2026, and March 31, 2026, the unfunded commitment liability totaled $4.1 million and $4.5 million, respectively. Nonperforming loans and leases as a percentage of total loans and leases was 0.25% as of June 30, 2026, and 0.27% as of March 31, 2026. Total nonperforming assets (which include nonaccrual loans and leases, loans and leases past due 90 days or more and still accruing, other real estate owned and other repossessed assets) as a percentage of total assets was 0.23% as of June 30, 2026, and 0.25% as of March 31, 2026. The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands): Three Months Ended Jun Mar Increase Credit Quality 2026 2026 (Decrease) Nonaccrual loans and leases $ 11,474 $ 12,257 $ (783 ) Loans and leases past due 90 days or more and still accruing - - - Total nonperforming loans and leases 11,474 12,257 (783 ) Other real estate owned - - - Other repossessed assets 2,754 2,798 (44 ) Total nonperforming assets $ 14,228 $ 15,055 $ (827 ) Nonperforming loans and leases to total loans and leases 0.25 % 0.27 % (0.02 )% Nonperforming assets to total assets 0.23 % 0.25 % (0.02 )% Noninterest Income Noninterest income decreased slightly, by $55 thousand to $7.9 million for the second quarter of 2026, compared to $7.9 million for the prior quarter. The second quarter decrease was primarily attributable to lower capital markets’ income included in other noninterest income, offset by increases in interchange and debit card transaction fees and mortgage banking income. The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands): Three Months Ended Jun Mar Increase Noninterest Income 2026 2026 (Decrease) Service charges on deposit accounts $ 1,881 $ 1,853 $ 28 Gain on sale of securities, net 54 1 53 Mortgage banking income 916 760 156 Investment services 1,724 1,796 (72 ) Interchange and debit card transaction fees 1,676 1,418 258 Other 1,635 2,113 (478 ) Total noninterest income $ 7,886 $ 7,941 $ (55 ) Noninterest Expense Noninterest expense increased $1.0 million to $34.0 million for the second quarter of 2026, compared to $32.9 million for the prior quarter. The second quarter increase was primarily attributable to increases in salaries and employee benefits, FDIC insurance, data processing and technology and professional services, offset by a decrease in other expense. The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands): Three Months Ended Jun Mar Increase Noninterest Expense 2026 2026 (Decrease) Salaries and employee benefits $ 21,015 $ 20,414 $ 601 Occupancy and equipment 3,351 3,344 7 FDIC insurance 920 750 170 Other real estate and loan related expenses 806 792 14 Advertising and marketing 408 387 21 Data processing and technology 2,683 2,436 247 Professional services 1,366 1,193 173 Amortization of intangibles 454 457 (3 ) Other 2,952 3,142 (190 ) Total noninterest expense $ 33,955 $ 32,915 $ 1,040 Income Tax Expense Income tax expense was $4.2 million for the second quarter of 2026, compared with $3.1 million for the prior quarter. The $1.1 million increase was primarily driven by a higher projected annual effective tax rate resulting from increased forecasted taxable income relative to non-taxable income. Balance Sheet Trends Total assets at June 30, 2026, were $6.12 billion compared to $5.86 billion at December 31, 2025. The $254.5 million increase was primarily attributable to increases in loans and leases of $319.4 million, securities of $17.9 million, premises and equipment of $4.9 million, and bank owned life insurance of $1.8 million, offset by decreases in cash and cash equivalents of $85.0 million and loans held for sale of $1.2 million, as well as an increase in the allowance for credit losses of $4.3 million. Total liabilities were $5.54 billion at June 30, 2026, compared to $5.31 billion at December 31, 2025, an increase of $230.1 million. Total deposits increased $232.8 million, which was driven primarily by increases in money market and savings deposits of $181.2 million, interest-bearing demand deposits of $76.4 million, and time deposits of $116.3 million, offset by a decline in noninterest-bearing demand deposits of $141.0 million. In addition, borrowings decreased by $2.4 million and other liabilities decreased by $434 thousand. Shareholders' equity at June 30, 2026, totaled $576.9 million, an increase of $24.4 million, from December 31, 2025. The increase in shareholders' equity was primarily driven by net income of $30.0 million for the six months ending June 30, 2026, offset by an increase of $3.6 million in accumulated other comprehensive loss and dividends paid of $2.9 million. Tangible book value per common share2 was $28.22 at June 30, 2026, compared to $26.85 at December 31, 2025. Tangible common equity1 as a percentage of tangible assets1 was 8.01% at June 30, 2026, compared with 7.93% at December 31, 2025. The following table presents selected balance sheet information for the periods indicated (dollars in thousands): Jun Dec Increase Selected Balance Sheet Information 2026 2025 (Decrease) Total assets $ 6,115,306 $ 5,860,810 $ 254,496 Total liabilities 5,538,382 5,308,318 230,064 Total equity 576,924 552,492 24,432 Securities 679,913 662,003 17,910 Loans and leases 4,682,935 4,363,582 319,353 Deposits 5,385,550 5,152,789 232,761 Board of Directors Declares Dividend On July 16, 2026, the board of directors of SmartFinancial declared a quarterly cash dividend of $0.09 per share of SmartFinancial common stock payable on August 17, 2026, to shareholders of record as of the close of business on July 31, 2026. Conference Call Information SmartFinancial issued this earnings release for the second quarter of 2026 on Monday, July 20, 2026, and will host a conference call on Tuesday, July 21, 2026, at 10:00 a.m. ET. To access this interactive teleconference, dial (833) 461-5787 and enter the Meeting ID: 208 155 555. A link to a replay of the conference call will be available on the Company’s webpage through July 21, 2027. Conference call materials will be published on the Company’s webpage located at http://www.smartfinancialinc.com/CorporateProfile, at 9:00 a.m. ET prior to the conference call. ____________________ 1Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliations. About SmartFinancial, Inc. SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with branches across Tennessee, Alabama, and Florida and loan production offices in Tennessee and Georgia. 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. Non-GAAP Financial Measures Statements included in this earnings release include measures not recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered Non-GAAP financial measures (“Non-GAAP”) and should be read along with the accompanying tables, which provide a reconciliation of Non-GAAP financial measures to GAAP financial measures. SmartFinancial management uses several Non-GAAP financial measures and ratios derived therefrom in its analysis of the Company's performance, including: (1) Operating earnings (11) Operating return on average assets (2) Operating revenue (12) Operating PPNR return on average assets (3) Operating noninterest income (13) Operating return on average shareholders’ equity (4) Operating noninterest expense (14) Return on average tangible common equity (5) Operating pre-provision net revenue (“PPNR”) earnings (15) Operating return on average tangible common equity (6) Tangible common equity (16) Operating noninterest income/average assets (7) Average tangible common equity (17) Operating noninterest expense/average assets (8) Tangible book value per common share (18) Tangible common equity to tangible assets (9) Tangible assets (19) Operating earnings per common share (10) Operating efficiency ratio A detailed reconciliation and definition of these items and the ratios derived therefrom is available in the Non-GAAP reconciliations. Management believes that Non-GAAP financial measures provide additional useful information that allows investors to evaluate the ongoing performance of the Company and provide meaningful comparisons to its peers. Management also believes these Non-GAAP financial measures enhance investors' ability to compare period-to-period financial results and allow investors and Company management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider SmartFinancial's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the Company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP. Forward-Looking Statements This news release may contain statements that are based on management’s current estimates or expectations of future events or future results, and that may be deemed to constitute forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements are not historical in nature and can generally be identified by such words as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “may,” “estimate,” and similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results of SmartFinancial to differ materially from future results expressed or implied by such forward-looking statements. Such risks, uncertainties, and other factors include, among others, (1) risks associated with our growth strategy, including a failure to implement our growth plans or an inability to manage our growth effectively; (2) claims and litigation arising from our business activities and from the companies we acquire, which may relate to contractual issues, environmental laws, fiduciary responsibility, and other matters; (3) general risks related to our disposition, merger and acquisition activity, including risks associated with our pursuit of future acquisitions or sales; (4) changes in management’s plans for the future; (5) prevailing, or changes in, economic or political conditions (including those resulting from the current administration and Congress), particularly in our market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; (6) our ability to anticipate interest rate changes and manage interest rate risk (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business and the impact of interest rate fluctuations on our financial projections, models and guidance); (7) tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services); (8) uncertain duration of trade conflicts and the magnitude of the impact that proposed tariffs may have on our customers’ businesses; (9) increased technology and cybersecurity risks, including generative artificial intelligence risks; (10) the impact of a failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting us and our customers; (11) credit risk associated with our lending activities; (12) changes in loan demand, real estate values, or competition; (13) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; (14) changes in accounting principles, policies, or guidelines; (15) changes in applicable laws, rules, or regulations; (16) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions; (17) potential impacts of any adverse developments in the banking industry, including the impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; (18) significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; (19) the effects of war or other conflicts; (20) the impact of government actions or inactions, including a prolonged shutdown of the federal government; and (21) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in SmartFinancial’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, in each case filed with or furnished to the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website (www.sec.gov). Undue reliance should not be placed on forward-looking statements. SmartFinancial disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events, or otherwise. SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) Ending Balances Jun Mar Dec Sep Jun 2026 2026 2025 2025 2025 Assets: Cash and cash equivalents $ 379,387 $ 346,071 $ 464,417 $ 557,127 $ 365,096 Securities available-for-sale, at fair value 560,065 552,083 539,882 511,095 502,150 Securities held-to-maturity, at amortized cost 119,848 120,968 122,121 123,364 124,520 Other investments 17,529 16,597 16,441 14,888 14,713 Loans held for sale 9,628 7,277 10,865 9,855 5,484 Loans and leases 4,682,935 4,518,391 4,363,582 4,222,369 4,124,062 Less: Allowance for credit losses (45,252 ) (43,950 ) (40,906 ) (39,074 ) (39,776 ) Loans and leases, net 4,637,683 4,474,441 4,322,676 4,183,295 4,084,286 Premises and equipment, net 93,314 93,360 88,387 89,250 90,204 Other real estate owned — — — — 144 Goodwill and other intangibles, net 94,417 94,871 95,328 95,807 103,588 Bank owned life insurance 121,353 120,438 119,525 118,610 117,697 Other assets 82,082 81,579 81,168 81,692 82,981 Total assets $ 6,115,306 $ 5,907,685 $ 5,860,810 $ 5,784,983 $ 5,490,863 Liabilities: Deposits: Noninterest-bearing demand $ 921,876 $ 951,366 $ 1,062,918 $ 931,477 $ 906,965 Interest-bearing demand 1,022,074 954,292 945,716 929,454 843,820 Money market and savings 2,454,805 2,455,945 2,273,612 2,218,313 2,124,623 Time deposits 986,795 834,633 870,543 971,653 996,712 Total deposits 5,385,550 5,196,236 5,152,789 5,050,897 4,872,120 Borrowings 603 3,178 3,009 1,301 6,966 Subordinated debt 98,805 98,733 98,662 138,604 39,726 Other liabilities 53,424 47,377 53,858 55,699 52,924 Total liabilities 5,538,382 5,345,524 5,308,318 5,246,501 4,971,736 Shareholders' Equity: Common stock 17,098 17,098 17,029 17,028 17,018 Additional paid-in capital 296,841 296,284 295,950 295,742 295,209 Retained earnings 275,813 261,032 248,719 236,380 224,061 Accumulated other comprehensive loss (12,941 ) (12,366 ) (9,319 ) (10,781 ) (17,274 ) Total shareholders' equity attributable to SmartFinancial Inc. and Subsidiary 576,811 562,048 552,379 538,369 519,014 Non-controlling interest - preferred stock of subsidiary 113 113 113 113 113 Total shareholders' equity 576,924 562,161 552,492 538,482 519,127 Total liabilities & shareholders' equity $ 6,115,306 $ 5,907,685 $ 5,860,810 $ 5,784,983 $ 5,490,863 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands except share and per share data) Three Months Ended Six Months Ended Jun Mar Dec Sep Jun Jun Jun 2026 2026 2025 2025 2025 2026 2025 Interest income: Loans and leases, including fees $ 69,546 $ 65,638 $ 65,573 $ 64,282 $ 61,049 $ 135,185 $ 118,811 Investment securities: Taxable 5,722 5,492 5,662 4,876 4,848 11,213 9,623 Tax-exempt 565 555 536 441 395 1,121 749 Federal funds sold and other earning assets 2,209 2,585 3,854 4,919 3,161 4,793 6,647 Total interest income 78,042 74,270 75,625 74,518 69,453 152,312 135,830 Interest expense: Deposits 27,723 26,529 28,646 30,464 28,301 54,252 55,636 Borrowings 371 1 1 14 70 371 140 Subordinated debt 1,884 1,864 1,884 1,610 739 3,748 1,472 Total interest expense 29,978 28,394 30,531 32,088 29,110 58,371 57,248 Net interest income 48,064 45,876 45,094 42,430 40,343 93,941 78,582 Provision for credit losses 1,463 4,139 4,132 227 2,411 5,602 3,391 Net interest income after provision for credit losses 46,601 41,737 40,962 42,203 37,932 88,339 75,191 Noninterest income: Service charges on deposit accounts 1,881 1,853 1,828 1,831 1,766 3,734 3,502 Gain (loss) on sale of securities, net 54 1 — (3,715 ) (4 ) 55 (4 ) Mortgage banking 916 760 837 709 633 1,676 1,126 Investment services 1,724 1,796 1,683 1,690 1,440 3,520 3,209 Insurance commissions — — — 1,049 1,554 — 2,967 Interchange and debit card transaction fees 1,676 1,418 1,375 1,338 1,342 3,094 2,562 Gain on sale of SBK Insurance ("SBKI") — — — 3,955 — — — Other 1,635 2,113 2,496 1,780 2,167 3,748 4,133 Total noninterest income 7,886 7,941 8,219 8,637 8,898 15,827 17,495 Noninterest expense: Salaries and employee benefits 21,015 20,414 19,917 19,544 19,602 41,429 38,836 Occupancy and equipment 3,351 3,344 3,388 3,468 3,432 6,696 6,829 FDIC insurance 920 750 1,025 1,025 992 1,670 1,952 Other real estate and loan related expense 806 792 858 969 757 1,597 1,415 Advertising and marketing 408 387 393 454 390 795 772 Data processing and technology 2,683 2,436 2,413 2,594 2,651 5,119 5,309 Professional services 1,366 1,193 1,132 1,123 1,153 2,559 2,521 Amortization of intangibles 454 457 479 536 566 911 1,135 Restructuring expenses — — 16 1,310 — — — Other 2,952 3,142 2,850 2,846 3,026 6,095 6,097 Total noninterest expense 33,955 32,915 32,471 33,869 32,569 66,871 64,866 Income before income taxes 20,532 16,763 16,710 16,971 14,261 37,295 27,820 Income tax expense 4,210 3,083 3,007 3,285 2,556 7,293 4,861 Net income $ 16,322 $ 13,680 $ 13,703 $ 13,686 $ 11,705 $ 30,002 $ 22,959 Earnings per common share: Basic $ 0.97 $ 0.81 $ 0.82 $ 0.82 $ 0.70 $ 1.78 $ 1.37 Diluted $ 0.96 $ 0.81 $ 0.81 $ 0.81 $ 0.69 $ 1.77 $ 1.36 Weighted average common shares outstanding: Basic 16,824,053 16,821,486 16,788,065 16,781,236 16,778,988 16,822,777 16,773,293 Diluted 16,961,750 16,935,530 16,922,482 16,908,920 16,878,736 16,958,496 16,875,608 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS Three Months Ended June 30, 2026 March 31, 2026 June 30, 2025 Average Yield/ Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Balance Interest Cost Assets: Loans and leases, including fees1 $ 4,610,444 $ 69,740 6.07 % $ 4,434,181 $ 65,855 6.02 % $ 4,050,485 $ 61,294 6.07 % Taxable securities 595,018 5,722 3.86 % 584,608 5,492 3.81 % 562,660 4,848 3.46 % Tax-exempt securities2 79,820 715 3.59 % 80,535 703 3.54 % 66,223 500 3.03 % Federal funds sold and other earning assets 232,257 2,209 3.81 % 286,539 2,585 3.66 % 275,647 3,161 4.60 % Total interest-earning assets 5,517,539 78,386 5.70 % 5,385,863 74,635 5.62 % 4,955,015 69,803 5.65 % Noninterest-earning assets 421,371 397,680 405,804 Total assets $ 5,938,910 $ 5,783,543 $ 5,360,819 Liabilities and Shareholders’ Equity: Interest-bearing demand deposits $ 954,455 3,960 1.66 % $ 955,450 3,931 1.67 % $ 835,394 3,785 1.82 % Money market and savings deposits 2,388,259 15,982 2.68 % 2,337,523 15,236 2.64 % 2,104,236 15,762 3.00 % Time deposits 907,250 7,781 3.44 % 841,515 7,362 3.55 % 914,658 8,754 3.84 % Total interest-bearing deposits 4,249,964 27,723 2.62 % 4,134,488 26,529 2.60 % 3,854,288 28,301 2.95 % Borrowings 41,272 371 3.61 % 3,549 1 0.11 % 7,783 70 3.61 % Subordinated debt 98,761 1,884 7.65 % 98,692 1,864 7.66 % 39,714 739 7.46 % Total interest-bearing liabilities 4,389,997 29,978 2.74 % 4,236,729 28,394 2.72 % 3,901,785 29,110 2.99 % Noninterest-bearing deposits 923,887 931,863 898,428 Other liabilities 53,677 54,603 49,539 Total liabilities 5,367,561 5,223,195 4,849,752 Shareholders' equity 571,349 560,348 511,067 Total liabilities and shareholders' equity $ 5,938,910 $ 5,783,543 $ 5,360,819 Net interest income, taxable equivalent $ 48,408 $ 46,241 $ 40,693 Interest rate spread 2.96 % 2.90 % 2.66 % Tax equivalent net interest margin 3.52 % 3.48 % 3.29 % Percentage of average interest-earning assets to average interest-bearing liabilities 125.68 % 127.12 % 126.99 % Percentage of average equity to average assets 9.62 % 9.69 % 9.53 % 1 Yields computed on tax-exempt loans on a tax equivalent basis include $194 thousand, $218 thousand, and $245 thousand of taxable equivalent income for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. 2 Yields computed on tax-exempt instruments on a tax equivalent basis include $150 thousand, $148 thousand, and $105 thousand of taxable equivalent income for the quarters ended June 30, 2026, March 31, 2026, and June 30, 2025, respectively. SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS Six Months Ended June 30, 2026 June 30, 2025 Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Assets: Loans and leases, including fees1 $ 4,522,799 $ 135,596 6.05 % $ 3,996,192 $ 119,302 6.02 % Taxable securities 589,843 11,213 3.83 % 559,306 9,623 3.47 % Tax-exempt securities2 80,176 1,418 3.57 % 64,663 948 2.96 % Federal funds sold and other earning assets 259,248 4,794 3.73 % 291,219 6,647 4.60 % Total interest-earning assets 5,452,066 153,021 5.66 % 4,911,380 136,520 5.61 % Noninterest-earning assets 409,589 405,832 Total assets $ 5,861,655 $ 5,317,212 Liabilities and Shareholders’ Equity: Interest-bearing demand deposits $ 954,950 7,891 1.67 % $ 841,077 7,528 1.80 % Money market and savings deposits 2,363,031 31,218 2.66 % 2,084,296 30,826 2.98 % Time deposits 874,564 15,143 3.49 % 897,889 17,282 3.88 % Total interest-bearing deposits 4,192,545 54,252 2.61 % 3,823,262 55,636 2.93 % Borrowings 22,515 371 3.32 % 8,000 140 3.53 % Subordinated debt 98,727 3,748 7.66 % 39,703 1,472 7.48 % Total interest-bearing liabilities 4,313,787 58,371 2.73 % 3,870,965 57,248 2.98 % Noninterest-bearing deposits 927,853 891,293 Other liabilities 54,136 50,394 Total liabilities 5,295,776 4,812,652 Shareholders' equity 565,879 504,560 Total liabilities and shareholders' equity $ 5,861,655 $ 5,317,212 Net interest income, taxable equivalent $ 94,650 $ 79,272 Interest rate spread 2.93 % 2.62 % Tax equivalent net interest margin 3.50 % 3.25 % Percentage of average interest-earning assets to average interest-bearing liabilities 126.39 % 126.88 % Percentage of average equity to average assets 9.65 % 9.49 % 1 Yields computed on tax-exempt loans on a tax equivalent basis include $412 thousand and $491 thousand of taxable equivalent income for the six months ended June 30, 2026, and June 30, 2025, respectively. 2 Yields computed on tax-exempt instruments on a tax equivalent basis include $298 thousand and $199 thousand of taxable equivalent income for the six months ended June 30, 2026, and June 30, 2025, respectively. SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) As of and for The Three Months Ended Jun Mar Dec Sep Jun 2026 2026 2025 2025 2025 Composition of Loans and Leases: Commercial real estate: Non-owner occupied $ 1,288,115 $ 1,263,455 $ 1,196,758 $ 1,136,080 $ 1,114,133 Owner occupied 1,080,959 1,033,211 1,022,871 1,012,088 958,989 Commercial real estate, total 2,369,074 2,296,666 2,219,629 2,148,168 2,073,122 Consumer real estate 881,640 851,484 834,626 811,150 803,270 Construction & land development 516,164 478,301 419,176 390,691 391,155 Commercial & industrial 842,849 819,875 817,595 794,751 778,754 Leases 52,411 54,296 55,422 60,301 62,495 Consumer and other 20,797 17,769 17,134 17,308 15,266 Total loans and leases $ 4,682,935 $ 4,518,391 $ 4,363,582 $ 4,222,369 $ 4,124,062 Asset Quality and Additional Loan Data: Nonperforming loans and leases $ 11,474 $ 12,257 $ 9,442 $ 10,099 $ 7,921 Other real estate owned — — — — 144 Other repossessed assets 2,754 2,798 3,248 2,444 2,397 Total nonperforming assets $ 14,228 $ 15,055 $ 12,690 $ 12,543 $ 10,462 Modified loans and leases1 not included in nonperforming loans and leases $ 349 $ 208 $ 219 $ 1,783 $ 1,660 Net charge-offs to average loans and leases (annualized) 0.05 % 0.02 % 0.18 % 0.10 % 0.01 % Allowance for credit losses to total loans and leases 0.97 % 0.97 % 0.94 % 0.93 % 0.96 % Nonperforming loans and leases to total loans and leases 0.25 % 0.27 % 0.22 % 0.24 % 0.19 % Nonperforming assets to total assets 0.23 % 0.25 % 0.22 % 0.22 % 0.19 % Capital Ratios: Equity to Assets 9.43 % 9.52 % 9.43 % 9.31 % 9.45 % Tangible common equity to tangible assets (Non-GAAP)2 8.01 % 8.04 % 7.93 % 7.78 % 7.71 % SmartFinancial, Inc.3 Tier 1 leverage 8.47 % 8.41 % 8.30 % 8.21 % 8.25 % Common equity Tier 1 9.77 % 9.77 % 9.83 % 9.85 % 9.67 % Tier 1 capital 9.77 % 9.77 % 9.83 % 9.85 % 9.67 % Total capital 12.64 % 12.72 % 12.71 % 13.31 % 11.04 % SmartBank3 Tier 1 leverage 9.86 % 9.88 % 9.71 % 9.59 % 8.88 % Common equity Tier 1 11.38 % 11.47 % 11.51 % 11.56 % 10.41 % Tier 1 capital 11.38 % 11.47 % 11.51 % 11.56 % 10.41 % Total capital 12.30 % 12.41 % 12.32 % 12.37 % 11.25 % 1Borrowers that have experienced financial difficulty. Effective as of December 31, 2025, the Call Report instructions were changed for institutions to report loan modifications to borrowers experiencing financial difficulty for a 12-month period after the modification. This change is reflected in the December 31, 2025, information and going forward. 2Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures. 3 Current period capital ratios are estimated as of the date of this earnings release. SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands except share and per share data) As of and for The As of and for The Three Months Ended Six Months Ended Jun Mar Dec Sep Jun Jun Jun 2026 2026 2025 2025 2025 2026 2025 Selected Performance Ratios (Annualized): Return on average assets 1.10 % 0.96 % 0.95 % 0.96 % 0.88 % 1.03 % 0.87 % Return on average shareholders' equity 11.46 % 9.90 % 9.95 % 10.33 % 9.19 % 10.69 % 9.18 % Return on average tangible common equity¹ 13.74 % 11.93 % 12.06 % 12.79 % 11.53 % 12.85 % 11.56 % Noninterest income / average assets 0.53 % 0.56 % 0.57 % 0.61 % 0.67 % 0.54 % 0.66 % Noninterest expense / average assets 2.29 % 2.31 % 2.24 % 2.38 % 2.44 % 2.30 % 2.46 % Efficiency ratio 60.69 % 61.16 % 60.91 % 66.32 % 66.14 % 60.92 % 67.51 % Operating Selected Performance Ratios (Annualized): Operating return on average assets1 1.10 % 0.96 % 0.95 % 1.02 % 0.88 % 1.03 % 0.87 % Operating PPNR return on average assets1 1.48 % 1.47 % 1.44 % 1.29 % 1.25 % 1.47 % 1.18 % Operating return on average shareholders' equity1 11.43 % 9.90 % 9.96 % 10.92 % 9.19 % 10.68 % 9.18 % Operating return on average tangible common equity1 13.70 % 11.93 % 12.07 % 13.53 % 11.53 % 12.83 % 11.57 % Operating efficiency ratio1 60.38 % 60.75 % 60.45 % 63.61 % 65.66 % 60.56 % 67.02 % Operating noninterest income / average assets1 0.53 % 0.56 % 0.57 % 0.59 % 0.67 % 0.54 % 0.66 % Operating noninterest expense / average assets1 2.29 % 2.31 % 2.24 % 2.29 % 2.44 % 2.30 % 2.46 % Selected Interest Rates and Yields: Yield on loans and leases, excluding loan fees, FTE 5.95 % 5.93 % 6.00 % 6.05 % 5.99 % 5.94 % 5.94 % Yield on loans and leases, FTE 6.07 % 6.02 % 6.08 % 6.14 % 6.07 % 6.05 % 6.02 % Yield on earning assets, FTE 5.70 % 5.62 % 5.65 % 5.68 % 5.65 % 5.66 % 5.61 % Cost of interest-bearing deposits 2.62 % 2.60 % 2.79 % 2.98 % 2.95 % 2.61 % 2.93 % Cost of total deposits 2.15 % 2.12 % 2.26 % 2.44 % 2.39 % 2.14 % 2.38 % Cost of interest-bearing liabilities 2.74 % 2.72 % 2.90 % 3.07 % 2.99 % 2.73 % 2.98 % Net interest margin, FTE 3.52 % 3.48 % 3.38 % 3.25 % 3.29 % 3.50 % 3.25 % Per Common Share: Net income, basic $ 0.97 $ 0.81 $ 0.82 $ 0.82 $ 0.70 $ 1.78 $ 1.37 Net income, diluted 0.96 0.81 0.81 0.81 0.69 1.77 1.36 Operating earnings, basic¹ 0.97 0.81 0.82 0.86 0.70 1.78 1.37 Operating earnings, diluted¹ 0.96 0.81 0.81 0.86 0.69 1.77 1.36 Book value per common share 33.74 32.88 32.44 31.62 30.51 33.74 30.51 Tangible book value per common share¹ 28.22 27.33 26.85 26.00 24.42 28.22 24.42 Common shares outstanding 17,098,473 17,098,473 17,029,317 17,028,001 17,017,547 17,098,473 17,017,547 ¹Non-GAAP measure. See reconciliation of Non-GAAP measures. SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) NON-GAAP RECONCILIATIONS Three Months Ended Six Months Ended Jun Mar Dec Sep Jun Jun Jun 2026 2026 2025 2025 2025 2026 2025 Operating Earnings: Net income (GAAP) $ 16,322 $ 13,680 $ 13,703 $ 13,686 $ 11,705 $ 30,002 $ 22,959 Noninterest income: Securities (gains) losses, net (54) (1) — 3,715 4 (55) 4 Gain on sale of SBKI — — — (3,955) — — — Noninterest expenses: Restructuring expenses — — 16 1,310 — — — Income taxes: Income tax effect of adjustments 14 — (4) (276) (1) 14 (1) Operating earnings (Non-GAAP) $ 16,282 $ 13,679 $ 13,715 $ 14,480 $ 11,708 $ 29,961 $ 22,962 Operating earnings per common share (Non-GAAP): Basic $ 0.97 $ 0.81 $ 0.82 $ 0.86 $ 0.70 $ 1.78 $ 1.37 Diluted 0.96 0.81 0.81 0.86 0.69 1.77 1.36 Operating Noninterest Income: Noninterest income (GAAP) $ 7,886 $ 7,941 $ 8,219 $ 8,637 $ 8,898 $ 15,827 $ 17,495 Securities (gains) losses, net (54) (1) — 3,715 4 (55) 4 Gain on sale of SBKI — — — (3,955) — — — Operating noninterest income (Non-GAAP) $ 7,832 $ 7,940 $ 8,219 $ 8,397 $ 8,902 $ 15,772 $ 17,499 Operating noninterest income (Non-GAAP)/average assets1 0.53 % 0.56 % 0.57 % 0.59 % 0.67 % 0.54 % 0.66 % Operating Noninterest Expense: Noninterest expense (GAAP) $ 33,955 $ 32,915 $ 32,471 $ 33,869 $ 32,569 $ 66,871 $ 64,866 Restructuring expenses — — (16) (1,310) — — — Operating noninterest expense (Non-GAAP) $ 33,955 $ 32,915 $ 32,455 $ 32,559 $ 32,569 $ 66,871 $ 64,866 Operating noninterest expense (Non-GAAP)/average assets2 2.29 % 2.31 % 2.24 % 2.29 % 2.44 % 2.30 % 2.46 % Operating Pre-provision Net revenue ("PPNR") Earnings: Net interest income (GAAP) $ 48,064 $ 45,876 $ 45,094 $ 42,430 $ 40,343 $ 93,941 $ 78,582 Operating noninterest income (Non-GAAP) 7,832 7,940 8,219 8,397 8,902 15,772 17,499 Operating noninterest expense (Non-GAAP) (33,955) (32,915) (32,455) (32,559) (32,569) (66,871) (64,866) Operating PPNR earnings (Non-GAAP) $ 21,941 $ 20,901 $ 20,858 $ 18,268 $ 16,676 $ 42,842 $ 31,215 Non-GAAP Return Ratios: Operating return on average assets (Non-GAAP)3 1.10 % 0.96 % 0.95 % 1.02 % 0.88 % 1.03 % 0.87 % Operating PPNR return on average assets (Non-GAAP)4 1.48 % 1.47 % 1.44 % 1.29 % 1.25 % 1.47 % 1.18 % Return on average tangible common equity (Non-GAAP)5 13.74 % 11.93 % 12.06 % 12.79 % 11.53 % 12.85 % 11.56 % Operating return on average shareholders' equity (Non-GAAP)6 11.43 % 9.90 % 9.96 % 10.92 % 9.19 % 10.68 % 9.18 % Operating return on average tangible common equity (Non-GAAP)7 13.70 % 11.93 % 12.07 % 13.53 % 11.53 % 12.83 % 11.57 % Operating Efficiency Ratio: Efficiency ratio (GAAP) 60.69 % 61.16 % 60.91 % 66.32 % 66.14 % 60.92 % 67.51 % Adjustment for taxable equivalent yields (0.38) % (0.41) % (0.43) % (0.47) % (0.47) % (0.40) % (0.49) % Adjustment for securities gains (losses) 0.07 % — % — % (4.50) % (0.01) % 0.04 % — % Adjustment for sale of SBKI — % — % — % 5.57 % — % — % — % Adjustment for restructuring cost — % — % (0.02) % (3.31) % — % — % — % Operating efficiency ratio (Non-GAAP) 60.38 % 60.75 % 60.45 % 63.61 % 65.66 % 60.56 % 67.02 % 1Operating noninterest income (Non-GAAP) is annualized and divided by average assets. 2Operating noninterest expense (Non-GAAP) is annualized and divided by average assets. 3Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets. 4Operating PPNR return on average assets (Non-GAAP) is the annualized operating PPNR earnings (Non-GAAP) divided by average assets. 5Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP). 6Operating return on average shareholders’ equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average equity. 7Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP). SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) NON-GAAP RECONCILIATIONS Three Months Ended Jun Mar Dec Sep Jun 2026 2026 2025 2025 2025 Tangible Common Equity: Shareholders' equity (GAAP) $ 576,924 $ 562,161 $ 552,492 $ 538,482 $ 519,127 Less goodwill and other intangible assets 94,417 94,871 95,328 95,807 103,588 Tangible common equity (Non-GAAP) $ 482,507 $ 467,290 $ 457,164 $ 442,675 $ 415,539 Average Tangible Common Equity: Average shareholders' equity (GAAP) $ 571,349 $ 560,348 $ 546,489 $ 525,829 $ 511,067 Less average goodwill and other intangible assets 94,696 95,145 95,619 101,326 103,936 Average tangible common equity (Non-GAAP) $ 476,653 $ 465,203 $ 450,870 $ 424,503 $ 407,131 Tangible Book Value per Common Share: Book value per common share (GAAP) $ 33.74 $ 32.88 $ 32.44 $ 31.62 $ 30.51 Adjustment due to goodwill and other intangible assets (5.52) (5.55) (5.59) (5.63) (6.09) Tangible book value per common share (Non-GAAP)1 $ 28.22 $ 27.33 $ 26.85 $ 26.00 $ 24.42 Tangible Common Equity to Tangible Assets: Total Assets (GAAP) $ 6,115,306 $ 5,907,685 $ 5,860,810 $ 5,784,983 $ 5,490,863 Less goodwill and other intangibles 94,417 94,871 95,328 95,807 103,588 Tangible Assets (Non-GAAP) $ 6,020,889 $ 5,812,814 $ 5,765,482 $ 5,689,176 $ 5,387,275 Tangible common equity to tangible assets (Non-GAAP) 8.01% 8.04% 7.93% 7.78% 7.71% 1Tangible book value per share (Non-GAAP) is computed by dividing total shareholders’ equity, less goodwill and other intangible assets, by common shares outstanding. 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