SmartFinancial Announces Results for the Third Quarter 2025

Press Release View all news SmartFinancial Announces Results for the Third Quarter 2025 10/21/2025 5:00 PM ET SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NYSE: SMBK), today announced net income of $13.7 million, or $0.81 per diluted common share, for the third quarter of 2025, compared to net income of $9.1 million, or $0.54 per diluted common share, for the third quarter of 2024, and compared to prior quarter net income of $11.7 million, or $0.69 per diluted common share. Operating earnings1, which excludes non-recurring income and expenses, net of tax adjustments, totaled $14.5 million, or $0.86 per diluted common share, in the third quarter of 2025, compared to $9.1 million, or $0.54 per diluted common share, in the third quarter of 2024, and compared to $11.7 million, or $0.69 per diluted common share, in the second quarter of 2025. Highlights for the Third Quarter of 2025 Achieved over $50 million in quarterly operating revenueOperating earnings 1 of $14.5 million, or $0.86 per diluted common shareNet organic loan and lease growth of $98 million with 10% annualized quarter-over-quarter increaseDeposit growth of $179 million or 15% annualized quarter-over-quarterQuarter over quarter tangible book value per common share 1 growth of 26%$4.0 million pre-tax gain associated with the sale of SBK Insurance (“SBKI”)Repositioned $85 million of available-for-sale securities, resulting in a pre-tax loss of $3.9 million$100 million subordinated debt issuance to retire existing $40 million subordinated debt and fund additional growth Billy Carroll, President & CEO, stated: "SmartFinancial continues to demonstrate improvement across all areas, as evidenced by our sixth consecutive quarter of positive operating leverage, 10% annualized organic loan growth, and 15% annualized deposit growth. Tangible book value per common share1 rose 26% quarter over quarter annualized and asset quality remained solid. Our strategic actions with SBKI unlocked capital but allowed us to remain an invested partner, affording us the best of both worlds. We look forward to a long partnership with SBKI and watching the agency thrive in its next chapter. A special thanks to all our associates for their dedication in executing all the strategic actions this quarter while maintaining operational excellence and exemplifying what SmartBank culture is all about.” SmartFinancial's Chairman, Miller Welborn, concluded: "The Board is thrilled that the Company achieved its $50 million in quarterly revenue target ahead of schedule, a true testament to the hard work and dedication of our associates. Additionally, the SBKI partnership, subordinated debt issuance, and securities repositioning has strengthened our balance sheet and positioned us to take advantage of the opportunities ahead. On the heels of these achievements, we look forward to closing out 2025 with increased market share and laying the groundwork for an even stronger 2026.” Net Interest Income and Net Interest Margin Net interest income was $42.4 million for the third quarter of 2025, compared to $40.3 million for the prior quarter. Average earning assets totaled $5.23 billion, an increase of $271.4 million from the prior quarter. The balances of average earnings assets changed quarter-over-quarter, primarily from an increase in average loans and leases of $121.0 million and average interest-earning cash of $152.6 million, offset by a decrease in average securities of $2.1 million. Average interest-bearing liabilities increased by $249.4 million from the prior quarter, primarily attributable to an increase in average interest-bearing deposits of $207.4 and average subordinated debt of $45.4 million, offset by a decrease in borrowings of $3.4 million. __________________________________________ 1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliations. The tax equivalent net interest margin was 3.25% for the third quarter of 2025, down from 3.29% for the prior quarter. Asset yields stayed strong, but interest-bearing liability costs rose more rapidly than yields on interest-earning assets, partly due to the new subordinated debt issuance. The yield on loans and leases, excluding loan fees, on a fully tax equivalent basis (“FTE”) was 6.05% for the third quarter of 2025, compared to 5.99% for the prior quarter. The cost of total deposits for the third quarter of 2025 was 2.44%, compared to 2.39% in the prior quarter. The cost of interest-bearing liabilities was 3.07% for the third quarter of 2025, compared to 2.99% in the prior quarter. The cost of average interest-bearing deposits was 2.98% for the third quarter of 2025, compared to 2.95% for the prior quarter, an increase of three basis points. The following table presents selected interest rates and yields for the periods indicated: Three Months Ended Sep Jun Increase Selected Interest Rates and Yields 2025 2025 (Decrease) Yield on loans and leases, excluding loan fees, FTE 6.05 % 5.99 % 0.06 % Yield on loans and leases, FTE 6.14 % 6.07 % 0.07 % Yield on earning assets, FTE 5.68 % 5.65 % 0.03 % Cost of interest-bearing deposits 2.98 % 2.95 % 0.03 % Cost of total deposits 2.44 % 2.39 % 0.05 % Cost of interest-bearing liabilities 3.07 % 2.99 % 0.08 % Net interest margin, FTE 3.25 % 3.29 % (0.04 )% Provision for Credit Losses on Loans and Leases and Credit Quality At September 30, 2025, the allowance for credit losses was $39.1 million. The allowance for credit losses to total loans and leases was 0.93% as of September 30, 2025, and 0.96% as of June 30, 2025. The following table presents detailed information related to the provision for credit losses for the periods indicated (dollars in thousands): Three Months Ended Sep Jun Increase Provision for Credit Losses on Loans and Leases Rollforward 2025 2025 (Decrease) Beginning balance $ 39,776 $ 38,175 $ 1,601 Charge-offs (1,145 ) (269 ) (876 ) Recoveries 92 123 (31 ) Net charge-offs (1,053 ) (146 ) (907 ) Provision for credit losses(1) 351 1,747 (1,396 ) Ending balance $ 39,074 $ 39,776 $ (702 ) Allowance for credit losses to total loans and leases, gross 0.93 % 0.96 % (0.03 )% (1) The current quarter-ended and prior quarter-ended excludes an unfunded commitments release of $124 thousand and a provision of $664 thousand, respectively. At September 30, 2025, the unfunded commitment liability totaled $3.2 million. Nonperforming loans and leases as a percentage of total loans and leases was 0.24% as of September 30, 2025, and 0.19% as of June 30, 2025. 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 0.22% as of September 30, 2025, and 0.19% as of June 30, 2025. The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands): Three Months Ended Sep Jun Increase Credit Quality 2025 2025 (Decrease) Nonaccrual loans and leases $ 9,970 $ 7,889 $ 2,081 Loans and leases past due 90 days or more and still accruing 129 32 97 Total nonperforming loans and leases 10,099 7,921 2,178 Other real estate owned - 144 (144 ) Other repossessed assets 2,444 2,397 47 Total nonperforming assets $ 12,543 $ 10,462 $ 2,081 Nonperforming loans and leases to total loans and leases, gross 0.24 % 0.19 % 0.05 % Nonperforming assets to total assets 0.22 % 0.19 % 0.03 % Noninterest Income Noninterest income decreased $261 thousand to $8.6 million for the third quarter of 2025, compared to $8.9 million for the prior quarter. The third quarter decrease was associated with a pre-tax loss of $3.9 million on the sale of $85 million of available-for-sale securities and the reduction of insurance commissions from the sale of SBKI and lower capital markets income included in other noninterest income. These decreases were offset by a pre-tax gain on the sale of SBKI of $4.0 million. The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands): Three Months Ended Sep Jun Increase Noninterest Income 2025 2025 (Decrease) Service charges on deposit accounts $ 1,831 $ 1,766 $ 65 Loss on sale of securities (3,715 ) (4 ) (3,711 ) Mortgage banking income 709 633 76 Investment services 1,690 1,440 250 Insurance commissions 1,049 1,554 (505 ) Interchange and debit card transaction fees 1,338 1,342 (4 ) Gain on sale of SBKI 3,955 - 3,955 Other 1,780 2,167 (387 ) Total noninterest income $ 8,637 $ 8,898 $ (261 ) Noninterest Expense Noninterest expense increased $1.3 million to $33.9 million for the third quarter of 2025, compared to $32.6 million for the prior quarter. The third quarter’s increase was primarily attributable to an increase in restructuring expenses. The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands): Three Months Ended Sep Jun Increase Noninterest Expense 2025 2025 (Decrease) Salaries and employee benefits $ 19,544 $ 19,602 $ (58 ) Occupancy and equipment 3,468 3,432 36 FDIC insurance 1,025 992 33 Other real estate and loan related expenses 969 757 212 Advertising and marketing 454 390 64 Data processing and technology 2,594 2,651 (57 ) Professional services 1,123 1,153 (30 ) Amortization of intangibles 536 566 (30 ) Restructuring expenses 1,310 - 1,310 Other 2,846 3,026 (180 ) Total noninterest expense $ 33,869 $ 32,569 $ 1,300 Income Tax Expense Income tax expense was $3.3 million for the third quarter of 2025, an increase of $729 thousand, compared to $2.6 million for the prior quarter. Balance Sheet Trends Total assets at September 30, 2025, were $5.78 billion compared to $5.28 billion at December 31, 2024. The $509.1 million increase is primarily attributable to increases in loans and leases of $316.0 million, cash and cash equivalents of $169.6 million, securities of $25.5 million, other investments of $3.9 million and bank owned life insurance of $2.7 million, offset by a decrease in goodwill and other intangibles of $8.9 million, primarily associated with the sale of SBKI. Total liabilities were $5.25 billion at September 30, 2025, compared to $4.78 billion at December 31, 2024, an increase of $462.1 million. Total deposits increased $364.4 million, which was driven primarily by increases in money market deposits of $178.8 million, other time deposits of $174.4 million, and interest-bearing demand deposits of $92.7 million, offset by a decline in brokered deposits of $47.4 million and noninterest demand deposits of $34.1 million. In addition, subordinated debt increased by $98.9 million. Shareholders' equity at September 30, 2025, totaled $538.5 million, an increase of $47.0 million, from December 31, 2024. The increase in shareholders' equity was primarily driven by net income of $36.6 million for the nine months ending September 30, 2025, and a positive change of $12.9 million in accumulated other comprehensive loss, offset by dividends paid of $4.1 million. Tangible book value per common share1 was $26.00 at September 30, 2025, compared to $22.85 at December 31, 2024. Tangible common equity1 as a percentage of tangible assets1 was 7.78% at September 30, 2025, compared with 7.48% at December 31, 2024. The following table presents selected balance sheet information for the periods indicated (dollars in thousands): Sep Dec Increase Selected Balance Sheet Information 2025 2024 (Decrease) Total assets $ 5,784,983 $ 5,275,904 $ 509,079 Total liabilities 5,246,501 4,784,443 462,058 Total equity 538,482 491,461 47,021 Securities 634,459 608,987 25,472 Loans and leases 4,222,369 3,906,340 316,029 Deposits 5,050,897 4,686,483 364,414 Borrowings 1,301 8,135 (6,834 ) Conference Call Information SmartFinancial issued this earnings release for the third quarter of 2025 on Tuesday, October 21, 2025, and will host a conference call on Wednesday, October 22, 2025, at 10:00 a.m. ET. To access this interactive teleconference, dial (833) 470-1428 or (646) 844-6383 and enter the access code, 241226. A replay of the conference call will be available through December 31, 2025, by dialing (866) 813-9403 or (929) 458-6194 and enter the access code, 307268. 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. _____________________________________ 1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliation About SmartFinancial, Inc. SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with branches across Tennessee, Alabama, and Florida. Recruiting the best people, delivering exceptional client service, strategic branching, and a disciplined approach to lending have contributed to SmartBank’s success. More information about SmartFinancial can be found on its website: www.smartfinancialinc.com. 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: Operating earningsOperating noninterest incomeOperating noninterest expenseOperating pre-provision net revenue (“PPNR”) earningsTangible common equityAverage tangible common equityTangible book value per common shareTangible assetsOperating efficiency ratio Operating earnings, operating PPNR earnings, operating noninterest income and operating noninterest expense exclude non-operating related income and expense items from net income, noninterest income and noninterest expense, respectively. Tangible common equity and average tangible common equity exclude goodwill and other intangible assets from shareholders' equity and average shareholders' equity, respectively. Tangible book value per common share is tangible common equity divided by common shares outstanding. Tangible assets excludes goodwill and other intangibles from total assets. Operating efficiency ratio is the quotient of operating noninterest expense divided by the sum of net interest income adjusted for taxable equivalent yields plus operating noninterest income. A detailed reconciliation 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 new 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 Sep Jun Mar Dec Sep 2025 2025 2025 2024 2024 Assets: Cash and cash equivalents $ 557,127 $ 365,096 $ 422,984 $ 387,570 $ 192,914 Securities available-for-sale, at fair value 511,095 502,150 499,445 482,328 501,336 Securities held-to-maturity, at amortized cost 123,364 124,520 125,576 126,659 127,779 Other investments 14,888 14,713 14,371 14,740 20,352 Loans held for sale 9,855 5,484 3,843 5,996 5,804 Loans and leases 4,222,369 4,124,062 3,992,207 3,906,340 3,717,478 Less: Allowance for credit losses (39,074 ) (39,776 ) (38,175 ) (37,423 ) (35,609 ) Loans and leases, net 4,183,295 4,084,286 3,954,032 3,868,917 3,681,869 Premises and equipment, net 89,250 90,204 90,708 91,093 91,055 Other real estate owned — 144 144 179 179 Goodwill and other intangibles, net 95,807 103,588 104,154 104,723 105,324 Bank owned life insurance 118,610 117,697 116,805 115,917 105,025 Other assets 81,692 82,981 79,155 77,782 77,297 Total assets $ 5,784,983 $ 5,490,863 $ 5,411,217 $ 5,275,904 $ 4,908,934 Liabilities: Deposits: Noninterest-bearing demand $ 931,477 $ 906,965 $ 884,294 $ 965,552 $ 863,949 Interest-bearing demand 929,454 843,820 885,063 836,731 834,207 Money market and savings 2,218,313 2,124,623 2,131,828 2,039,560 1,854,777 Time deposits 971,653 996,712 907,474 844,640 769,558 Total deposits 5,050,897 4,872,120 4,808,659 4,686,483 4,322,491 Borrowings 1,301 6,966 7,610 8,135 8,997 Subordinated debt 138,604 39,726 39,705 39,684 39,663 Other liabilities 55,699 52,924 49,302 50,141 48,760 Total liabilities 5,246,501 4,971,736 4,905,276 4,784,443 4,419,911 Shareholders' Equity: Common stock 17,028 17,018 17,018 16,926 16,926 Additional paid-in capital 295,742 295,209 294,736 294,269 293,909 Retained earnings 236,380 224,061 213,721 203,824 195,537 Accumulated other comprehensive loss (10,781 ) (17,274 ) (19,647 ) (23,671 ) (17,349 ) Total shareholders' equity attributable to SmartFinancial Inc. and Subsidiary 538,369 519,014 505,828 491,348 489,023 Non-controlling interest - preferred stock of subsidiary 113 113 113 113 — Total shareholders' equity 538,482 519,127 505,941 491,461 489,023 Total liabilities & shareholders' equity $ 5,784,983 $ 5,490,863 $ 5,411,217 $ 5,275,904 $ 4,908,934 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands except share and per share data) Three Months Ended Nine Months Ended Sep Jun Mar Dec Sep Sep Sep 2025 2025 2024 2024 2024 2025 2024 Interest income: Loans and leases, including fees $ 64,282 $ 61,049 $ 57,762 $ 57,951 $ 54,738 $ 183,094 $ 155,611 Investment securities: Taxable 4,876 4,848 4,775 5,050 5,233 14,499 15,101 Tax-exempt 441 395 354 351 350 1,190 1,056 Federal funds sold and other earning assets 4,919 3,161 3,485 2,744 3,635 11,565 13,255 Total interest income 74,518 69,453 66,376 66,096 63,956 210,348 185,023 Interest expense: Deposits 30,464 28,301 27,335 27,437 27,350 86,100 81,824 Borrowings 14 70 70 89 709 155 985 Subordinated debt 1,610 739 733 787 865 3,082 2,647 Total interest expense 32,088 29,110 28,138 28,313 28,924 89,337 85,456 Net interest income 42,430 40,343 38,238 37,783 35,032 121,011 99,567 Provision for credit losses 227 2,411 979 2,135 2,575 3,618 3,018 Net interest income after provision for credit losses 42,203 37,932 37,259 35,648 32,457 117,393 96,549 Noninterest income: Service charges on deposit accounts 1,831 1,766 1,736 1,778 1,780 5,333 5,084 Gain (loss) on sale of securities, net (3,715 ) (4 ) — 64 — (3,719 ) — Mortgage banking 709 633 493 541 410 1,835 1,038 Investment services 1,690 1,440 1,769 1,382 1,881 4,899 4,563 Insurance commissions 1,049 1,554 1,412 1,832 1,477 4,016 3,865 Interchange and debit card transaction fees 1,338 1,342 1,220 1,332 1,349 3,900 3,945 Gain on sale of SBKI 3,955 — — — — 3,955 — Other 1,780 2,167 1,967 2,101 2,242 5,914 6,627 Total noninterest income 8,637 8,898 8,597 9,030 9,139 26,133 25,122 Noninterest expense: Salaries and employee benefits 19,544 19,602 19,234 19,752 18,448 58,380 52,348 Occupancy and equipment 3,468 3,432 3,397 3,473 3,423 10,298 10,144 FDIC insurance 1,025 992 960 825 825 2,977 2,565 Other real estate and loan related expense 969 757 658 1,241 460 2,383 1,582 Advertising and marketing 454 390 382 397 327 1,226 924 Data processing and technology 2,594 2,651 2,657 2,495 2,519 7,903 7,435 Professional services 1,123 1,153 1,368 1,017 1,201 3,643 3,190 Amortization of intangibles 536 566 569 601 604 1,671 1,824 Restructuring expenses 1,310 — — — — 1,310 — Other 2,846 3,026 3,071 2,490 3,039 8,945 8,587 Total noninterest expense 33,869 32,569 32,296 32,291 30,846 98,736 88,599 Income before income taxes 16,971 14,261 13,560 12,387 10,750 44,790 33,072 Income tax expense 3,285 2,556 2,306 2,747 1,610 8,146 6,572 Net income $ 13,686 $ 11,705 $ 11,254 $ 9,640 $ 9,140 $ 36,644 $ 26,500 Earnings per common share: Basic $ 0.82 $ 0.70 $ 0.67 $ 0.58 $ 0.55 $ 2.18 $ 1.58 Diluted $ 0.81 $ 0.69 $ 0.67 $ 0.57 $ 0.54 $ 2.17 $ 1.57 Weighted average common shares outstanding: Basic 16,781,236 16,778,988 16,767,535 16,729,509 16,726,658 16,775,970 16,782,200 Diluted 16,908,920 16,878,736 16,872,097 16,863,780 16,839,998 16,886,153 16,874,316 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS Three Months Ended September 30, 2025 June 30, 2025 September 30, 2024 Average Yield/ Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Balance Interest Cost Assets: Loans and leases, including fees1 $ 4,171,444 $ 64,526 6.14 % $ 4,050,485 $ 61,294 6.07 % $ 3,634,808 $ 54,993 6.02 % Taxable securities 556,894 4,876 3.47 % 562,660 4,848 3.46 % 564,978 5,233 3.68 % Tax-exempt securities2 69,843 558 3.17 % 66,223 500 3.03 % 63,561 443 2.77 % Federal funds sold and other earning assets 428,209 4,919 4.56 % 275,647 3,161 4.60 % 267,252 3,634 5.41 % Total interest-earning assets 5,226,390 74,879 5.68 % 4,955,015 69,803 5.65 % 4,530,599 64,303 5.65 % Noninterest-earning assets 408,560 405,804 381,306 Total assets $ 5,634,950 $ 5,360,819 $ 4,911,905 Liabilities and Shareholders’ Equity: Interest-bearing demand deposits $ 869,690 4,048 1.85 % $ 835,394 3,785 1.82 % $ 925,307 5,289 2.27 % Money market and savings deposits 2,186,245 16,693 3.03 % 2,104,236 15,762 3.00 % 1,917,301 16,608 3.45 % Time deposits 1,005,800 9,723 3.84 % 914,658 8,754 3.84 % 560,699 5,453 3.87 % Total interest-bearing deposits 4,061,735 30,464 2.98 % 3,854,288 28,301 2.95 % 3,403,307 27,350 3.20 % Borrowings 4,351 14 1.28 % 7,783 70 3.61 % 53,592 709 5.26 % Subordinated debt 85,113 1,610 7.50 % 39,714 739 7.46 % 40,846 865 8.42 % Total interest-bearing liabilities 4,151,199 32,088 3.07 % 3,901,785 29,110 2.99 % 3,497,745 28,924 3.29 % Noninterest-bearing deposits 900,079 898,428 884,938 Other liabilities 57,843 49,539 50,580 Total liabilities 5,109,121 4,849,752 4,433,263 Shareholders' equity 525,829 511,067 478,642 Total liabilities and shareholders' equity $ 5,634,950 $ 5,360,819 $ 4,911,905 Net interest income, taxable equivalent $ 42,791 $ 40,693 $ 35,379 Interest rate spread 2.62 % 2.66 % 2.36 % Tax equivalent net interest margin 3.25 % 3.29 % 3.11 % Percentage of average interest-earning assets to average interest-bearing liabilities 125.90 % 126.99 % 129.53 % Percentage of average equity to average assets 9.33 % 9.53 % 9.74 % 1 Yields computed on tax-exempt loans on a tax equivalent basis include $244 thousand, $245 thousand, and $255 thousand of taxable equivalent income for the quarters ended September 30, 2025, June 30, 2025, and September 30, 2024, respectively. 2 Yields computed on tax-exempt instruments on a tax equivalent basis include $117 thousand, $105 thousand, and $93 thousand of taxable equivalent income for the quarters ended September 30, 2025, June 30, 2025, and September 30, 2024, respectively. SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS Nine Months Ended September 30, 2025 September 30, 2024 Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Assets: Loans and leases, including fees1 $ 4,055,251 $ 183,829 6.06 % $ 3,532,768 $ 156,123 5.90 % Taxable securities 558,493 14,499 3.47 % 588,679 15,101 3.43 % Tax-exempt securities2 66,408 1,506 3.03 % 63,804 1,336 2.80 % Federal funds sold and other earning assets 337,385 11,566 4.58 % 322,339 13,255 5.49 % Total interest-earning assets 5,017,537 211,400 5.63 % 4,507,590 185,815 5.51 % Noninterest-earning assets 406,751 381,743 Total assets $ 5,424,288 $ 4,889,333 Liabilities and Shareholders’ Equity: Interest-bearing demand deposits $ 850,720 11,577 1.82 % $ 968,139 17,299 2.39 % Money market and savings deposits 2,118,652 47,518 3.00 % 1,910,452 49,285 3.45 % Time deposits 934,255 27,005 3.86 % 543,887 15,240 3.74 % Total interest-bearing deposits 3,903,627 86,100 2.95 % 3,422,478 81,824 3.19 % Borrowings 6,769 155 3.06 % 25,941 985 5.07 % Subordinated debt 55,006 3,082 7.49 % 41,691 2,647 8.48 % Total interest-bearing liabilities 3,965,402 89,337 3.01 % 3,490,110 85,456 3.27 % Noninterest-bearing deposits 894,254 882,168 Other liabilities 52,905 48,299 Total liabilities 4,912,561 4,420,577 Shareholders' equity 511,727 468,756 Total liabilities and shareholders' equity $ 5,424,288 $ 4,889,333 Net interest income, taxable equivalent $ 122,063 $ 100,359 Interest rate spread 2.62 % 2.24 % Tax equivalent net interest margin 3.25 % 2.97 % Percentage of average interest-earning assets to average interest-bearing liabilities 126.53 % 129.15 % Percentage of average equity to average assets 9.43 % 9.59 % 1 Yields computed on tax-exempt loans on a tax equivalent basis include $735 thousand and $512 thousand of taxable equivalent income for the nine months ended September 30, 2025, and 2024, respectively. 2 Yields computed on tax-exempt instruments on a tax equivalent basis include $316 thousand and $280 thousand of taxable equivalent income for the nine months ended September 30, 2025, and 2024, respectively. SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) As of and for The Three Months Ended Sep Jun Mar Dec Sep 2025 2025 2025 2024 2024 Composition of Loans and Leases: Commercial real estate: Non-owner occupied $ 1,136,080 $ 1,114,133 $ 1,117,392 $ 1,080,404 $ 1,031,708 Owner occupied 1,012,088 958,989 885,396 867,678 868,077 Commercial real estate, total 2,148,168 2,073,122 2,002,788 1,948,082 1,899,785 Consumer real estate 811,150 803,270 784,602 741,836 690,504 Construction & land development 390,691 391,155 357,393 361,735 315,006 Commercial & industrial 794,751 778,754 768,454 775,620 731,600 Leases 60,301 62,495 64,208 64,878 67,052 Consumer and other 17,308 15,266 14,762 14,189 13,531 Total loans and leases $ 4,222,369 $ 4,124,062 $ 3,992,207 $ 3,906,340 $ 3,717,478 Asset Quality and Additional Loan Data: Nonperforming loans and leases $ 10,099 $ 7,921 $ 7,807 $ 7,872 $ 9,491 Other real estate owned — 144 144 179 179 Other repossessed assets 2,444 2,397 2,414 2,037 2,949 Total nonperforming assets $ 12,543 $ 10,462 $ 10,365 $ 10,088 $ 12,619 Modified loans and leases1 not included in nonperforming loans and leases $ 1,783 $ 1,660 $ 1,978 $ 3,989 $ 4,053 Net charge-offs to average loans and leases (annualized) 0.10 % 0.01 % 0.01 % 0.02 % 0.15 % Allowance for credit losses to loans and leases 0.93 % 0.96 % 0.96 % 0.96 % 0.96 % Nonperforming loans and leases to total loans and leases, gross 0.24 % 0.19 % 0.20 % 0.20 % 0.26 % Nonperforming assets to total assets 0.22 % 0.19 % 0.19 % 0.19 % 0.26 % Capital Ratios: Equity to Assets 9.31 % 9.45 % 9.35 % 9.32 % 9.96 % Tangible common equity to tangible assets (Non-GAAP)2 7.78 % 7.71 % 7.57 % 7.48 % 7.99 % SmartFinancial, Inc.3 Tier 1 leverage 8.20 % 8.25 % 8.16 % 8.29 % 8.44 % Common equity Tier 1 9.85 % 9.67 % 9.79 % 9.76 % 10.06 % Tier 1 capital 9.85 % 9.67 % 9.79 % 9.76 % 10.06 % Total capital 13.31 % 11.04 % 11.18 % 11.10 % 11.62 % SmartBank3 Tier 1 leverage 9.59 % 8.88 % 8.76 % 8.94 % 9.17 % Common equity Tier 1 11.56 % 10.41 % 10.51 % 10.51 % 10.92 % Tier 1 capital 11.56 % 10.41 % 10.51 % 10.51 % 10.92 % Total capital 12.37 % 11.25 % 11.35 % 11.30 % 11.69 % 1 Borrowers that have experienced financial difficulty. 2 Total 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 Nine Months Ended Sep Jun Mar Dec Sep Sep Sep 2025 2025 2025 2024 2024 2025 2024 Selected Performance Ratios (Annualized): Return on average assets 0.96 % 0.88 % 0.87 % 0.75 % 0.74 % 0.90 % 0.72 % Return on average shareholders' equity 10.33 % 9.19 % 9.17 % 7.84 % 7.60 % 9.57 % 7.55 % Return on average tangible common equity¹ 12.79 % 11.53 % 11.60 % 9.99 % 9.75 % 11.99 % 9.77 % Noninterest income / average assets 0.61 % 0.67 % 0.66 % 0.71 % 0.74 % 0.64 % 0.69 % Noninterest expense / average assets 2.38 % 2.44 % 2.48 % 2.52 % 2.50 % 2.43 % 2.42 % Efficiency ratio 66.32 % 66.14 % 68.96 % 68.98 % 69.83 % 67.10 % 71.06 % Operating Selected Performance Ratios (Annualized): Operating return on average assets1 1.02 % 0.88 % 0.87 % 0.75 % 0.74 % 0.92 % 0.69 % Operating PPNR return on average assets1 1.29 % 1.25 % 1.12 % 1.13 % 1.08 % 1.22 % 0.94 % Operating return on average shareholders' equity1 10.92 % 9.19 % 9.17 % 7.80 % 7.60 % 9.78 % 7.21 % Operating return on average tangible common equity1 13.53 % 11.53 % 11.60 % 9.94 % 9.75 % 12.25 % 9.32 % Operating efficiency ratio1 63.61 % 65.66 % 68.46 % 68.58 % 69.28 % 65.85 % 71.55 % Operating noninterest income / average assets1 0.59 % 0.67 % 0.66 % 0.70 % 0.74 % 0.64 % 0.64 % Operating noninterest expense / average assets1 2.29 % 2.44 % 2.48 % 2.52 % 2.50 % 2.40 % 2.42 % Selected Interest Rates and Yields: Yield on loans and leases, excluding loan fees, FTE 6.05 % 5.99 % 5.88 % 5.95 % 5.95 % 5.98 % 5.82 % Yield on loans and leases, FTE 6.14 % 6.07 % 5.97 % 6.04 % 6.02 % 6.06 % 5.90 % Yield on earning assets, FTE 5.68 % 5.65 % 5.56 % 5.64 % 5.65 % 5.63 % 5.51 % Cost of interest-bearing deposits 2.98 % 2.95 % 2.92 % 3.02 % 3.20 % 2.95 % 3.19 % Cost of total deposits 2.44 % 2.39 % 2.37 % 2.43 % 2.54 % 2.40 % 2.54 % Cost of interest-bearing liabilities 3.07 % 2.99 % 2.97 % 3.08 % 3.29 % 3.01 % 3.27 % Net interest margin, FTE 3.25 % 3.29 % 3.21 % 3.24 % 3.11 % 3.25 % 2.97 % Per Common Share: Net income, basic $ 0.82 $ 0.70 $ 0.67 $ 0.58 $ 0.55 $ 2.18 $ 1.58 Net income, diluted 0.81 0.69 0.67 0.57 0.54 2.17 1.57 Operating earnings, basic¹ 0.86 0.70 0.67 0.57 0.55 2.23 1.51 Operating earnings, diluted¹ 0.86 0.69 0.67 0.57 0.54 2.22 1.50 Book value per common share 31.62 30.51 29.73 29.04 28.89 31.62 28.89 Tangible book value per common share¹ 26.00 24.42 23.61 22.85 22.67 26.00 22.67 Common shares outstanding 17,028,001 17,017,547 17,017,547 16,925,672 16,926,374 17,028,001 16,926,374 ¹ Non-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 Nine Months Ended Sep Jun Mar Dec Sep Sep Sep 2025 2025 2025 2024 2024 2025 2024 Operating Earnings: Net income (GAAP) $ 13,686 $ 11,705 $ 11,254 $ 9,640 $ 9,140 $ 36,644 $ 26,500 Noninterest income: Securities losses (gains), net 3,715 4 — (64 ) — 3,719 — Gain on sale of former branch building — — — — — — (1,629 ) Gain on sale of SBKI (3,955 ) — — — — (3,955 ) — Noninterest expenses: Restructuring expenses 1,310 — — — — 1,310 — Income taxes: Income tax effect of adjustments (276 ) (1 ) — 17 — (277 ) 421 Operating earnings (Non-GAAP) $ 14,480 $ 11,708 $ 11,254 $ 9,593 $ 9,140 $ 37,441 $ 25,292 Operating earnings per common share (Non-GAAP): Basic $ 0.86 $ 0.70 $ 0.67 $ 0.57 $ 0.55 $ 2.23 $ 1.51 Diluted 0.86 0.69 0.67 0.57 0.54 2.22 1.50 Operating Noninterest Income: Noninterest income (GAAP) $ 8,637 $ 8,898 $ 8,597 $ 9,030 $ 9,139 $ 26,133 $ 25,122 Securities losses (gains), net 3,715 4 — (64 ) — 3,719 — Gain on sale of former branch building — — — — — — (1,629 ) Gain on sale of SBKI (3,955 ) — — — — (3,955 ) — Operating noninterest income (Non-GAAP) $ 8,397 $ 8,902 $ 8,597 $ 8,966 $ 9,139 $ 25,897 $ 23,493 Operating noninterest income (Non-GAAP)/average assets1 0.59 % 0.67 % 0.66 % 0.70 % 0.74 % 0.64 % 0.64 Operating Noninterest Expense: Noninterest expense (GAAP) $ 33,869 $ 32,569 $ 32,296 $ 32,291 $ 30,846 $ 98,736 $ 88,599 Restructuring expenses (1,310 ) — — — — (1,310 ) — Operating noninterest expense (Non-GAAP) $ 32,559 $ 32,569 $ 32,296 $ 32,291 $ 30,846 $ 97,426 $ 88,599 Operating noninterest expense (Non-GAAP)/average assets2 2.29 % 2.44 % 2.48 % 2.52 % 2.50 % 2.40 % 2.42 Operating Pre-provision Net revenue ("PPNR") Earnings: Net interest income (GAAP) $ 42,430 $ 40,343 $ 38,238 $ 37,783 $ 35,032 $ 121,011 $ 99,567 Operating noninterest income (Non-GAAP) 8,397 8,902 8,597 8,966 9,139 25,897 23,493 Operating noninterest expense (Non-GAAP) (32,559 ) (32,569 ) (32,296 ) (32,291 ) (30,846 ) (97,426 ) (88,599 ) Operating PPNR earnings (Non-GAAP) $ 18,268 $ 16,676 $ 14,539 $ 14,458 $ 13,325 $ 49,482 $ 34,461 Non-GAAP Return Ratios: Operating return on average assets (Non-GAAP)3 1.02 % 0.88 % 0.87 % 0.75 % 0.74 % 0.92 % 0.69 Operating PPNR return on average assets (Non-GAAP)4 1.29 % 1.25 % 1.12 % 1.13 % 1.08 % 1.22 % 0.94 Return on average tangible common equity (Non-GAAP)5 12.79 % 11.53 % 11.60 % 9.99 % 9.75 % 11.99 % 9.77 Operating return on average shareholders' equity (Non-GAAP)6 10.92 % 9.19 % 9.17 % 7.80 % 7.60 % 9.78 % 7.21 Operating return on average tangible common equity (Non-GAAP)7 13.53 % 11.53 % 11.60 % 9.94 % 9.75 % 12.25 % 9.32 Operating Efficiency Ratio: Efficiency ratio (GAAP) 66.32 % 66.14 % 68.96 % 68.98 % 69.83 % 67.10 % 71.06 Adjustment for taxable equivalent yields (0.47 ) % (0.47 ) % (0.50 ) % (0.49 ) % (0.55 ) % (0.48 ) % (0.45 ) Adjustment for securities gains (losses) (4.50 ) % (0.01 ) % — % 0.09 % — % (1.65 ) % — Adjustment for sale of branch location — % — % — % — % — % — % 0.94 Adjustment for sale of SBKI 5.57 % — % — % — % — % 1.85 % — Adjustment for restructuring cost (3.31 ) % — % — % — % — % (0.97 ) % — Operating efficiency ratio (Non-GAAP) 63.61 % 65.66 % 68.46 % 68.58 % 69.28 % 65.85 % 71.55 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 PPNR return on average assets (Non-GAAP) is the annualized operating PPNR earnings (Non-GAAP) divided by average assets. 5 Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP). 6 Operating return on average shareholders’ equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average equity. 7 Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP). SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) NON-GAAP RECONCILIATIONS Three Months Ended Sep Jun Mar Dec Sep 2025 2025 2025 2024 2024 Tangible Common Equity: Shareholders' equity (GAAP) $ 538,482 $ 519,127 $ 505,941 $ 491,461 $ 489,023 Less goodwill and other intangible assets 95,807 103,588 104,154 104,723 105,324 Tangible common equity (Non-GAAP) $ 442,675 $ 415,539 $ 401,787 $ 386,738 $ 383,699 Average Tangible Common Equity: Average shareholders' equity (GAAP) $ 525,829 $ 511,067 $ 497,980 $ 489,172 $ 478,642 Less average goodwill and other intangible assets 101,326 103,936 104,504 105,093 105,701 Average tangible common equity (Non-GAAP) $ 424,503 $ 407,131 $ 393,476 $ 384,079 $ 372,941 Tangible Book Value per Common Share: Book value per common share (GAAP) $ 31.62 $ 30.51 $ 29.73 $ 29.04 $ 28.89 Adjustment due to goodwill and other intangible assets (5.63 ) (6.09 ) (6.12 ) (6.19 ) (6.22 ) Tangible book value per common share (Non-GAAP)1 $ 26.00 $ 24.42 $ 23.61 $ 22.85 $ 22.67 Tangible Common Equity to Tangible Assets: Total Assets (GAAP) $ 5,784,983 $ 5,490,863 $ 5,411,217 $ 5,275,904 $ 4,908,934 Less goodwill and other intangibles 95,807 103,588 104,154 104,723 105,324 Tangible Assets (Non-GAAP) $ 5,689,176 $ 5,387,275 $ 5,307,063 $ 5,171,181 $ 4,803,610 Tangible common equity to tangible assets (Non-GAAP) 7.78 % 7.71 % 7.57 % 7.48 % 7.99 % 1 Tangible 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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