SmartFinancial Announces Results for the Fourth Quarter 2025

Press Release View all news SmartFinancial Announces Results for the Fourth Quarter 2025 1/20/2026 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 fourth quarter of 2025, compared to net income of $9.6 million, or $0.57 per diluted common share, for the fourth quarter of 2024, and compared to prior quarter net income of $13.7 million, or $0.81 per diluted common share. Operating earnings1, which excludes non-recurring income and expenses, net of tax adjustments, totaled $13.7 million, or $0.81 per diluted common share, in the fourth quarter of 2025, compared to $9.6 million, or $0.57 per diluted common share, in the fourth quarter of 2024, and compared to $14.5 million, or $0.86 per diluted common share, in the third quarter of 2025. Highlights for the Fourth Quarter of 2025 Operating earnings 1 of $13.7 million, or $0.81 per diluted common shareNet organic loan and lease growth of $141 million with 13% annualized quarter-over-quarter increaseDeposit growth of $102 million or 8% annualized quarter-over-quarterNet interest margin, fully tax equivalent basis (“FTE”) expanded to 3.38%, reflecting lower deposit and funding costsQuarter over quarter tangible book value per common share 1 growth of 13%Seventh consecutive quarter of positive operating leverageColumbus, GA expansion with two additional commercial bankersMulti-year core contract renegotiation process completed Billy Carroll, President & CEO, stated: "2025 marked a year of tremendous momentum build and overall improvement for our company. We generated approximately 11% positive operating leverage in 2025 capped off by our seventh consecutive quarter of positive operating leverage in Q4. The year was highlighted by approximately 12% organic loan growth, 14% organic deposit growth excluding brokered deposits and tangible book value per common share1 rose 17%. Overall, a fantastic year for our company paving the way for an even brighter 2026. I want to thank all of our Associates whose tireless work and dedication make SmartBank a great place to work and do business. They are the driving force behind our success.” SmartFinancial's Chairman, Miller Welborn, concluded: “2025 was an exceptional year marked by growth, profitability, and continued improvement. The Board is extremely pleased with the Company’s ongoing financial progress, which is particularly impressive considering the range of strategic initiatives completed during the year. Operational excellence and a solid foundation remain essential for sustained success, and our Associates consistently demonstrate commitment in every area. We appreciate your contributions in making SmartBank an outstanding organization and valued partner for our stakeholders.” Net Interest Income and Net Interest Margin Net interest income was $45.1 million for the fourth quarter of 2025, compared to $42.4 million for the prior quarter. Average earning assets totaled $5.34 billion, an increase of $112.3 million from the prior quarter. The balances of average earnings assets increased quarter-over-quarter, primarily from an increase in average loans and leases of $124.0 million and average securities of $32.7 million, offset by a decrease in average interest-earning cash of $44.3 million. Average interest-bearing liabilities increased by $18.6 million from the prior quarter, primarily attributable to an increase in average interest-bearing deposits of $6.0 million and average subordinated debt of $13.9 million, offset by a decrease in borrowings of $1.3 million. The tax equivalent net interest margin was 3.38% for the fourth quarter of 2025, up from 3.25% for the prior quarter. This increase is primarily related to declines in deposit costs, outpacing a modest decrease in asset yields. The yield on loans and leases, excluding loan fees, FTE was 6.00% for the fourth quarter of 2025, compared to 6.05% for the prior quarter. 1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliations. The cost of total deposits for the fourth quarter of 2025 was 2.26%, compared to 2.44% in the prior quarter. The cost of interest-bearing liabilities was 2.90% for the fourth quarter of 2025, compared to 3.07% in the prior quarter. The cost of average interest-bearing deposits was 2.79% for the fourth quarter of 2025, compared to 2.98% for the prior quarter, a decrease of 19 basis points. The following table presents selected interest rates and yields for the periods indicated: Three Months Ended Dec Sep Increase Selected Interest Rates and Yields 2025 2025 (Decrease) Yield on loans and leases, excluding loan fees, FTE 6.00 % 6.05 % (0.05 ) % Yield on loans and leases, FTE 6.08 % 6.14 % (0.06 ) % Yield on earning assets, FTE 5.65 % 5.68 % (0.03 ) % Cost of interest-bearing deposits 2.79 % 2.98 % (0.19 ) % Cost of total deposits 2.26 % 2.44 % (0.18 ) % Cost of interest-bearing liabilities 2.90 % 3.07 % (0.17 ) % Net interest margin, FTE 3.38 % 3.25 % 0.13 % Provision for Credit Losses on Loans and Leases and Credit Quality At December 31, 2025, the allowance for credit losses was $40.9 million. The allowance for credit losses to total loans and leases was 0.94% as of December 31, 2025, and 0.93% as of September 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 Dec Sep Increase Provision for Credit Losses on Loans and Leases Rollforward 2025 2025 (Decrease) Beginning balance $ 39,074 $ 39,776 $ (702 ) Charge-offs (1,993 ) (1,145 ) (848 ) Recoveries 101 92 9 Net charge-offs (1,892 ) (1,053 ) (839 ) Provision for credit losses(1) 3,724 351 3,373 Ending balance $ 40,906 $ 39,074 $ 1,832 Allowance for credit losses to total loans and leases, gross 0.94 % 0.93 % 0.01 % (1) The current quarter-ended and prior quarter-ended excludes an unfunded commitments provision of $408 thousand and a release of $124 thousand, respectively. At December 31, 2025, and September 30, 2025, the unfunded commitment liability totaled $3.6 million and $3.2 million, respectively. Nonperforming loans and leases as a percentage of total loans and leases was 0.22% as of December 31, 2025, and 0.24% as of September 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 December 31, 2025, and September 30, 2025. The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands): Three Months Ended Dec Sep Increase Credit Quality 2025 2025 (Decrease) Nonaccrual loans and leases $ 9,442 $ 9,970 $ (528 ) Loans and leases past due 90 days or more and still accruing - 129 (129 ) Total nonperforming loans and leases 9,442 10,099 (657 ) Other real estate owned - - - Other repossessed assets 3,248 2,444 804 Total nonperforming assets $ 12,690 $ 12,543 $ 147 Nonperforming loans and leases to total loans and leases, gross 0.22 % 0.24 % (0.02 ) % Nonperforming assets to total assets 0.22 % 0.22 % - % Noninterest Income Noninterest income decreased $418 thousand to $8.2 million for the fourth quarter of 2025, compared to $8.6 million for the prior quarter. The fourth quarter decrease was attributable to the reduction of insurance commissions and the gain on sale of SBK Insurance (“SBKI”) in the prior quarter. Additionally, in the prior quarter, there was a pre-tax loss of $3.9 million on the sale of $85 million of available-for-sale securities. These changes were offset by higher capital markets’ income included in other noninterest income. The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands): Three Months Ended Dec Sep Increase Noninterest Income 2025 2025 (Decrease) Service charges on deposit accounts $ 1,828 $ 1,831 $ (3 ) Loss on sale of securities, net - (3,715 ) 3,715 Mortgage banking income 837 709 128 Investment services 1,683 1,690 (7 ) Insurance commissions - 1,049 (1,049 ) Interchange and debit card transaction fees 1,375 1,338 37 Gain on sale of SBKI - 3,955 (3,955 ) Other 2,496 1,780 716 Total noninterest income $ 8,219 $ 8,637 $ (418 ) Noninterest Expense Noninterest expense decreased $1.4 million to $32.5 million for the fourth quarter of 2025, compared to $33.9 million for the prior quarter. The fourth quarter’s decrease was primarily attributable to a decrease in restructuring expenses associated with the sale of SBKI. The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands): Three Months Ended Dec Sep Increase Noninterest Expense 2025 2025 (Decrease) Salaries and employee benefits $ 19,917 $ 19,544 $ 373 Occupancy and equipment 3,388 3,468 (80 ) FDIC insurance 1,025 1,025 - Other real estate and loan related expenses 858 969 (111 ) Advertising and marketing 393 454 (61 ) Data processing and technology 2,413 2,594 (181 ) Professional services 1,132 1,123 9 Amortization of intangibles 479 536 (57 ) Restructuring expenses 16 1,310 (1,294 ) Other 2,850 2,846 4 Total noninterest expense $ 32,471 $ 33,869 $ (1,398 ) Income Tax Expense Income tax expense was $3.0 million for the fourth quarter of 2025, a decrease of $278 thousand, compared to $3.3 million for the prior quarter. Balance Sheet Trends Total assets at December 31, 2025, were $5.86 billion compared to $5.28 billion at December 31, 2024. The $584.9 million increase is primarily attributable to increases in loans and leases of $457.2 million, cash and cash equivalents of $76.8 million, securities of $53.0 million, loans held for sale of $4.9 million, bank owned life insurance of $3.6 million and other investments of $1.7 million, offset by a decrease in goodwill and other intangibles of $9.4 million, primarily associated with the sale of SBKI, and a decrease in premises and equipment of $2.7 million. Total liabilities were $5.31 billion at December 31, 2025, compared to $4.78 billion at December 31, 2024, an increase of $523.9 million. Total deposits increased $466.3 million, which was driven primarily by increases in money market deposits of $234.1 million, other time deposits of $185.9 million, interest-bearing demand deposits of $109.0 million and noninterest demand deposits of $97.4 million, offset by a decline in brokered deposits of $160.0 million. In addition, subordinated debt increased $59.0 million as a result of issuing $100.0 million in new subordinated debt and retiring the existing $40.0 million of subordinated debt. Shareholders' equity at December 31, 2025, totaled $552.5 million, an increase of $61.0 million, from December 31, 2024. The increase in shareholders' equity was primarily driven by net income of $50.3 million for the twelve months ending December 31, 2025, and a reduction of $14.4 million in accumulated other comprehensive loss, offset by dividends paid of $5.4 million. Tangible book value per common share2 was $26.85 at December 31, 2025, compared to $22.85 at December 31, 2024. Tangible common equity1 as a percentage of tangible assets1 was 7.93% at December 31, 2025, compared with 7.48% at December 31, 2024. The following table presents selected balance sheet information for the periods indicated (dollars in thousands): Dec Dec Increase Selected Balance Sheet Information 2025 2024 (Decrease) Total assets $ 5,860,810 $ 5,275,904 $ 584,906 Total liabilities 5,308,318 4,784,443 523,875 Total equity 552,492 491,461 61,031 Securities 662,003 608,987 53,016 Loans and leases 4,363,582 3,906,340 457,242 Deposits 5,152,789 4,686,483 466,306 Borrowings 3,009 8,135 (5,126 ) Conference Call Information SmartFinancial issued this earnings release for the fourth quarter of 2025 on Tuesday, January 20, 2026, and will host a conference call on Wednesday, January 21, 2026, at 10:00 a.m. ET. To access this interactive teleconference, dial (833) 470-1428 or (646) 844-6383 and enter the access code, 680807. A replay of the conference call will be available through March 21, 2026, by dialing (866) 813-9403 or (929) 458-6194 and enter the access code, 497919. 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 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. 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 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 Dec Sep Jun Mar Dec 2025 2025 2025 2025 2024 Assets: Cash and cash equivalents $ 464,417 $ 557,127 $ 365,096 $ 422,984 $ 387,570 Securities available-for-sale, at fair value 539,882 511,095 502,150 499,445 482,328 Securities held-to-maturity, at amortized cost 122,121 123,364 124,520 125,576 126,659 Other investments 16,441 14,888 14,713 14,371 14,740 Loans held for sale 10,865 9,855 5,484 3,843 5,996 Loans and leases 4,363,582 4,222,369 4,124,062 3,992,207 3,906,340 Less: Allowance for credit losses (40,906 ) (39,074 ) (39,776 ) (38,175 ) (37,423 ) Loans and leases, net 4,322,676 4,183,295 4,084,286 3,954,032 3,868,917 Premises and equipment, net 88,387 89,250 90,204 90,708 91,093 Other real estate owned — — 144 144 179 Goodwill and other intangibles, net 95,328 95,807 103,588 104,154 104,723 Bank owned life insurance 119,525 118,610 117,697 116,805 115,917 Other assets 81,168 81,692 82,981 79,155 77,782 Total assets $ 5,860,810 $ 5,784,983 $ 5,490,863 $ 5,411,217 $ 5,275,904 Liabilities: Deposits: Noninterest-bearing demand $ 1,062,918 $ 931,477 $ 906,965 $ 884,294 $ 965,552 Interest-bearing demand 945,716 929,454 843,820 885,063 836,731 Money market and savings 2,273,612 2,218,313 2,124,623 2,131,828 2,039,560 Time deposits 870,543 971,653 996,712 907,474 844,640 Total deposits 5,152,789 5,050,897 4,872,120 4,808,659 4,686,483 Borrowings 3,009 1,301 6,966 7,610 8,135 Subordinated debt 98,662 138,604 39,726 39,705 39,684 Other liabilities 53,858 55,699 52,924 49,302 50,141 Total liabilities 5,308,318 5,246,501 4,971,736 4,905,276 4,784,443 Shareholders' Equity: Common stock 17,029 17,028 17,018 17,018 16,926 Additional paid-in capital 295,950 295,742 295,209 294,736 294,269 Retained earnings 248,719 236,380 224,061 213,721 203,824 Accumulated other comprehensive loss (9,319 ) (10,781 ) (17,274 ) (19,647 ) (23,671 ) Total shareholders' equity attributable to SmartFinancial Inc. and Subsidiary 552,379 538,369 519,014 505,828 491,348 Non-controlling interest - preferred stock of subsidiary 113 113 113 113 113 Total shareholders' equity 552,492 538,482 519,127 505,941 491,461 Total liabilities & shareholders' equity $ 5,860,810 $ 5,784,983 $ 5,490,863 $ 5,411,217 $ 5,275,904 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 June Mar Dec Dec Dec 2025 2025 2025 2025 2024 2025 2024 Interest income: Loans and leases, including fees $ 65,573 $ 64,282 $ 61,049 $ 57,762 $ 57,951 $ 248,666 $ 213,562 Investment securities: Taxable 5,662 4,876 4,848 4,775 5,050 20,161 20,151 Tax-exempt 536 441 395 354 351 1,726 1,406 Federal funds sold and other earning assets 3,854 4,919 3,161 3,485 2,744 15,419 16,000 Total interest income 75,625 74,518 69,453 66,376 66,096 285,972 251,119 Interest expense: Deposits 28,646 30,464 28,301 27,335 27,437 114,747 109,260 Borrowings 1 14 70 70 89 155 1,075 Subordinated debt 1,884 1,610 739 733 787 4,966 3,434 Total interest expense 30,531 32,088 29,110 28,138 28,313 119,868 113,769 Net interest income 45,094 42,430 40,343 38,238 37,783 166,104 137,350 Provision for credit losses 4,132 227 2,411 979 2,135 7,750 5,153 Net interest income after provision for credit losses 40,962 42,203 37,932 37,259 35,648 158,354 132,197 Noninterest income: Service charges on deposit accounts 1,828 1,831 1,766 1,736 1,778 7,161 6,862 (Loss) gain on sale of securities, net — (3,715 ) (4 ) — 64 (3,719 ) 64 Mortgage banking 837 709 633 493 541 2,673 1,579 Investment services 1,683 1,690 1,440 1,769 1,382 6,582 5,945 Insurance commissions — 1,049 1,554 1,412 1,832 4,016 5,696 Interchange and debit card transaction fees 1,375 1,338 1,342 1,220 1,332 5,275 5,277 Gain on sale of SBKI — 3,955 — — — 3,955 — Other 2,496 1,780 2,167 1,967 2,101 8,409 8,729 Total noninterest income 8,219 8,637 8,898 8,597 9,030 34,352 34,152 Noninterest expense: Salaries and employee benefits 19,917 19,544 19,602 19,234 19,752 78,297 72,100 Occupancy and equipment 3,388 3,468 3,432 3,397 3,473 13,686 13,617 FDIC insurance 1,025 1,025 992 960 825 4,002 3,390 Other real estate and loan related expense 858 969 757 658 1,241 3,242 2,823 Advertising and marketing 393 454 390 382 397 1,619 1,321 Data processing and technology 2,413 2,594 2,651 2,657 2,495 10,316 9,930 Professional services 1,132 1,123 1,153 1,368 1,017 4,775 4,207 Amortization of intangibles 479 536 566 569 601 2,150 2,425 Restructuring expenses 16 1,310 — — — 1,326 — Other 2,850 2,846 3,026 3,071 2,490 11,792 11,077 Total noninterest expense 32,471 33,869 32,569 32,296 32,291 131,205 120,890 Income before income taxes 16,710 16,971 14,261 13,560 12,387 61,501 45,459 Income tax expense 3,007 3,285 2,556 2,306 2,747 11,154 9,318 Net income $ 13,703 $ 13,686 $ 11,705 $ 11,254 $ 9,640 $ 50,347 $ 36,141 Earnings per common share: Basic $ 0.82 $ 0.82 $ 0.70 $ 0.67 $ 0.58 $ 3.00 $ 2.16 Diluted $ 0.81 $ 0.81 $ 0.69 $ 0.67 $ 0.57 $ 2.98 $ 2.14 Weighted average common shares outstanding: Basic 16,788,065 16,781,236 16,778,988 16,767,535 16,729,509 16,779,019 16,768,956 Diluted 16,922,482 16,908,920 16,878,736 16,872,097 16,863,780 16,896,519 16,878,456 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS Three Months Ended December 31, 2025 September 30, 2025 December 31, 2024 Average Yield/ Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Balance Interest Cost Assets: Loans and leases, including fees1 $ 4,295,446 $ 65,807 6.08 % $ 4,171,444 $ 64,526 6.14 % $ 3,830,301 $ 58,188 6.04 % Taxable securities 580,256 5,662 3.87 % 556,894 4,876 3.47 % 554,152 5,050 3.63 % Tax-exempt securities2 79,149 678 3.40 % 69,843 558 3.17 % 63,309 444 2.79 % Federal funds sold and other earning assets 383,882 3,854 3.98 % 428,209 4,919 4.56 % 233,793 2,745 4.67 % Total interest-earning assets 5,338,733 76,001 5.65 % 5,226,390 74,879 5.68 % 4,681,555 66,427 5.64 % Noninterest-earning assets 400,618 408,560 407,695 Total assets $ 5,739,351 $ 5,634,950 $ 5,089,250 Liabilities and Shareholders’ Equity: Interest-bearing demand deposits $ 902,505 3,817 1.68 % $ 869,690 4,048 1.85 % $ 826,750 3,775 1.82 % Money market and savings deposits 2,254,175 16,017 2.82 % 2,186,245 16,693 3.03 % 1,923,265 14,830 3.07 % Time deposits 911,044 8,812 3.84 % 1,005,800 9,723 3.84 % 861,211 8,832 4.08 % Total interest-bearing deposits 4,067,724 28,646 2.79 % 4,061,735 30,464 2.98 % 3,611,226 27,437 3.02 % Borrowings 3,024 1 0.13 % 4,351 14 1.28 % 9,145 89 3.87 % Subordinated debt 99,062 1,884 7.55 % 85,113 1,610 7.50 % 39,672 787 7.89 % Total interest-bearing liabilities 4,169,810 30,531 2.90 % 4,151,199 32,088 3.07 % 3,660,043 28,313 3.08 % Noninterest-bearing deposits 964,612 900,079 889,151 Other liabilities 58,440 57,843 50,884 Total liabilities 5,192,862 5,109,121 4,600,078 Shareholders' equity 546,489 525,829 489,172 Total liabilities and shareholders' equity $ 5,739,351 $ 5,634,950 $ 5,089,250 Net interest income, taxable equivalent $ 45,470 $ 42,791 $ 38,114 Interest rate spread 2.74 % 2.62 % 2.57 % Tax equivalent net interest margin 3.38 % 3.25 % 3.24 % Percentage of average interest-earning assets to average interest-bearing liabilities 128.03 % 125.90 % 127.91 % Percentage of average equity to average assets 9.52 % 9.33 % 9.61 % 1 Yields computed on tax-exempt loans on a tax equivalent basis include $235 thousand, $244 thousand, and $237 thousand of taxable equivalent income for the quarters ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. 2 Yields computed on tax-exempt instruments on a tax equivalent basis include $142 thousand, $117 thousand, and $93 thousand of taxable equivalent income for the quarters ended December 31, 2025, September 30, 2025, and December 31, 2024, respectively. SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS Year Ended December 31, 2025 December 31, 2024 Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Assets: Loans and leases, including fees1 $ 4,115,793 $ 249,636 6.07 % $ 3,607,558 $ 214,310 5.94 % Taxable securities 563,978 20,161 3.57 % 580,001 20,151 3.47 % Tax-exempt securities2 69,620 2,185 3.14 % 63,679 1,780 2.80 % Federal funds sold and other earning assets 349,105 15,419 4.42 % 300,081 16,000 5.33 % Total interest-earning assets 5,098,496 287,401 5.64 % 4,551,319 252,241 5.54 % Noninterest-earning assets 405,205 388,267 Total assets $ 5,503,701 $ 4,939,586 Liabilities and Shareholders’ Equity: Interest-bearing demand deposits $ 863,772 15,394 1.78 % $ 932,598 21,074 2.26 % Money market and savings deposits 2,152,812 63,535 2.95 % 1,913,673 64,116 3.35 % Time deposits 928,404 35,818 3.86 % 623,652 24,070 3.86 % Total interest-bearing deposits 3,944,988 114,747 2.91 % 3,469,923 109,260 3.15 % Borrowings 5,826 155 2.66 % 21,719 1,075 4.95 % Subordinated debt 66,110 4,966 7.51 % 41,184 3,434 8.34 % Total interest-bearing liabilities 4,016,924 119,868 2.98 % 3,532,826 113,769 3.22 % Noninterest-bearing deposits 911,988 883,923 Other liabilities 54,300 48,949 Total liabilities 4,983,212 4,465,698 Shareholders' equity 520,489 473,888 Total liabilities and shareholders' equity $ 5,503,701 $ 4,939,586 Net interest income, taxable equivalent $ 167,533 $ 138,472 Interest rate spread 2.65 % 2.32 % Tax equivalent net interest margin 3.29 % 3.04 % Percentage of average interest-earning assets to average interest-bearing liabilities 126.93 % 128.83 % Percentage of average equity to average assets 9.46 % 9.59 % 1 Yields computed on tax-exempt loans on a tax equivalent basis include $970 thousand and $748 thousand of taxable equivalent income for the year ended December 31, 2025, and 2024, respectively. 2 Yields computed on tax-exempt instruments on a tax equivalent basis include $459 thousand and $374 thousand of taxable equivalent income for the year ended December 31, 2025, and 2024, respectively. 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 2025 2025 2025 2025 2024 Composition of Loans and Leases: Commercial real estate: Non-owner occupied $ 1,196,758 $ 1,136,080 $ 1,114,133 $ 1,117,392 $ 1,080,404 Owner occupied 1,022,871 1,012,088 958,989 885,396 867,678 Commercial real estate, total 2,219,629 2,148,168 2,073,122 2,002,788 1,948,082 Consumer real estate 834,626 811,150 803,270 784,602 741,836 Construction & land development 419,176 390,691 391,155 357,393 361,735 Commercial & industrial 817,595 794,751 778,754 768,454 775,620 Leases 55,422 60,301 62,495 64,208 64,878 Consumer and other 17,134 17,308 15,266 14,762 14,189 Total loans and leases $ 4,363,582 $ 4,222,369 $ 4,124,062 $ 3,992,207 $ 3,906,340 Asset Quality and Additional Loan Data: Nonperforming loans and leases $ 9,442 $ 10,099 $ 7,921 $ 7,807 $ 7,872 Other real estate owned — — 144 144 179 Other repossessed assets 3,248 2,444 2,397 2,414 2,037 Total nonperforming assets $ 12,690 $ 12,543 $ 10,462 $ 10,365 $ 10,088 Modified loans and leases1 not included in nonperforming loans and leases $ 219 $ 1,783 $ 1,660 $ 1,978 $ 3,989 Net charge-offs to average loans and leases (annualized) 0.18 % 0.10 % 0.01 % 0.01 % 0.02 % Allowance for credit losses to loans and leases 0.94 % 0.93 % 0.96 % 0.96 % 0.96 % Nonperforming loans and leases to total loans and leases, gross 0.22 % 0.24 % 0.19 % 0.20 % 0.20 % Nonperforming assets to total assets 0.22 % 0.22 % 0.19 % 0.19 % 0.19 % Capital Ratios: Equity to Assets 9.43 % 9.31 % 9.45 % 9.35 % 9.32 % Tangible common equity to tangible assets (Non-GAAP)2 7.93 % 7.78 % 7.71 % 7.57 % 7.48 % SmartFinancial, Inc.3 Tier 1 leverage 8.30 % 8.21 % 8.25 % 8.16 % 8.29 % Common equity Tier 1 9.80 % 9.85 % 9.67 % 9.79 % 9.76 % Tier 1 capital 9.80 % 9.85 % 9.67 % 9.79 % 9.76 % Total capital 12.67 % 13.31 % 11.04 % 11.18 % 11.10 % SmartBank3 Tier 1 leverage 9.71 % 9.59 % 8.88 % 8.76 % 8.94 % Common equity Tier 1 11.51 % 11.56 % 10.41 % 10.51 % 10.51 % Tier 1 capital 11.51 % 11.56 % 10.41 % 10.51 % 10.51 % Total capital 12.32 % 12.37 % 11.25 % 11.35 % 11.30 % 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. 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 Year Ended Dec Sep Jun Mar Dec Dec Dec 2025 2025 2025 2025 2024 2025 2024 Selected Performance Ratios (Annualized): Return on average assets 0.95 % 0.96 % 0.88 % 0.87 % 0.75 % 0.91 % 0.73 % Return on average shareholders' equity 9.95 % 10.33 % 9.19 % 9.17 % 7.84 % 9.67 % 7.63 % Return on average tangible common equity¹ 12.06 % 12.79 % 11.53 % 11.60 % 9.99 % 12.01 % 9.82 % Noninterest income / average assets 0.57 % 0.61 % 0.67 % 0.66 % 0.71 % 0.62 % 0.69 % Noninterest expense / average assets 2.24 % 2.38 % 2.44 % 2.48 % 2.52 % 2.38 % 2.45 % Efficiency ratio 60.91 % 66.32 % 66.14 % 68.96 % 68.98 % 65.45 % 70.49 % Operating Selected Performance Ratios (Annualized): Operating return on average assets1 0.95 % 1.02 % 0.88 % 0.87 % 0.75 % 0.93 % 0.71 % Operating PPNR return on average assets1 1.44 % 1.29 % 1.25 % 1.12 % 1.13 % 1.28 % 0.99 % Operating return on average shareholders' equity1 9.96 % 10.92 % 9.19 % 9.17 % 7.80 % 9.83 % 7.36 % Operating return on average tangible common equity1 12.07 % 13.53 % 11.53 % 11.60 % 9.94 % 12.20 % 9.48 % Operating efficiency ratio1 60.45 % 63.61 % 65.66 % 68.46 % 68.58 % 64.41 % 70.72 % Operating noninterest income / average assets1 0.57 % 0.59 % 0.67 % 0.66 % 0.70 % 0.62 % 0.66 % Operating noninterest expense / average assets1 2.24 % 2.29 % 2.44 % 2.48 % 2.52 % 2.36 % 2.45 % Selected Interest Rates and Yields: Yield on loans and leases, excluding loan fees, FTE 6.00 % 6.05 % 5.99 % 5.88 % 5.95 % 5.98 % 5.86 % Yield on loans and leases, FTE 6.08 % 6.14 % 6.07 % 5.97 % 6.04 % 6.07 % 5.94 % Yield on earning assets, FTE 5.65 % 5.68 % 5.65 % 5.56 % 5.64 % 5.64 % 5.54 % Cost of interest-bearing deposits 2.79 % 2.98 % 2.95 % 2.92 % 3.02 % 2.91 % 3.15 % Cost of total deposits 2.26 % 2.44 % 2.39 % 2.37 % 2.43 % 2.36 % 2.51 % Cost of interest-bearing liabilities 2.90 % 3.07 % 2.99 % 2.97 % 3.08 % 2.98 % 3.22 % Net interest margin, FTE 3.38 % 3.25 % 3.29 % 3.21 % 3.24 % 3.29 % 3.04 % Per Common Share: Net income, basic $ 0.82 $ 0.82 $ 0.70 $ 0.67 $ 0.58 $ 3.00 $ 2.16 Net income, diluted 0.81 0.81 0.69 0.67 0.57 2.98 2.14 Operating earnings, basic¹ 0.82 0.86 0.70 0.67 0.57 3.05 2.08 Operating earnings, diluted¹ 0.81 0.86 0.69 0.67 0.57 3.03 2.07 Book value per common share 32.44 31.62 30.51 29.73 29.04 32.44 29.04 Tangible book value per common share¹ 26.85 26.00 24.42 23.61 22.85 26.85 22.85 Common shares outstanding 17,029,317 17,028,001 17,017,547 17,017,547 16,925,672 17,029,317 16,925,672 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 Year Ended Dec Sep Jun Mar Dec Dec Dec 2025 2025 2025 2025 2024 2025 2024 Operating Earnings: Net income (GAAP) $ 13,703 $ 13,686 $ 11,705 $ 11,254 $ 9,640 $ 50,347 $ 36,141 Noninterest income: Securities losses (gains), net — 3,715 4 — (64 ) 3,719 (64 ) Gain on sale of former branch building — — — — — — (1,629 ) Gain on sale of SBKI — (3,955 ) — — — (3,955 ) — Noninterest expenses: Restructuring expenses 16 1,310 — — — 1,326 — Income taxes: Income tax effect of adjustments (4 ) (276 ) (1 ) — 17 (282 ) 437 Operating earnings (Non-GAAP) $ 13,715 $ 14,480 $ 11,708 $ 11,254 $ 9,593 $ 51,155 $ 34,885 Operating earnings per common share (Non-GAAP): Basic $ 0.82 $ 0.86 $ 0.70 $ 0.67 $ 0.57 $ 3.05 $ 2.08 Diluted 0.81 0.86 0.69 0.67 0.57 3.03 2.07 Operating Noninterest Income: Noninterest income (GAAP) $ 8,219 $ 8,637 $ 8,898 $ 8,597 $ 9,030 $ 34,352 $ 34,152 Securities losses (gains), net — 3,715 4 — (64 ) 3,719 (64 ) Gain on sale of former branch building — — — — — — (1,629 ) Gain on sale of SBKI — (3,955 ) — — — (3,955 ) — Operating noninterest income (Non-GAAP) $ 8,219 $ 8,397 $ 8,902 $ 8,597 $ 8,966 $ 34,116 $ 32,459 Operating noninterest income (Non-GAAP)/average assets1 0.57 % 0.59 % 0.67 % 0.66 % 0.70 % 0.62 % 0.66 % Operating Noninterest Expense: Noninterest expense (GAAP) $ 32,471 $ 33,869 $ 32,569 $ 32,296 $ 32,291 $ 131,205 $ 120,890 Restructuring expenses (16 ) (1,310 ) — — — (1,326 ) — Operating noninterest expense (Non-GAAP) $ 32,455 $ 32,559 $ 32,569 $ 32,296 $ 32,291 $ 129,879 $ 120,890 Operating noninterest expense (Non-GAAP)/average assets2 2.24 % 2.29 % 2.44 % 2.48 % 2.52 % 2.36 % 2.45 % Operating Pre-provision Net revenue ("PPNR") Earnings: Net interest income (GAAP) $ 45,094 $ 42,430 $ 40,343 $ 38,238 $ 37,783 $ 166,104 $ 137,350 Operating noninterest income (Non-GAAP) 8,219 8,397 8,902 8,597 8,966 34,116 32,459 Operating noninterest expense (Non-GAAP) (32,455 ) (32,559 ) (32,569 ) (32,296 ) (32,291 ) (129,879 ) (120,890 ) Operating PPNR earnings (Non-GAAP) $ 20,858 $ 18,268 $ 16,676 $ 14,539 $ 14,458 $ 70,341 $ 48,919 Non-GAAP Return Ratios: Operating return on average assets (Non-GAAP)3 0.95 % 1.02 % 0.88 % 0.87 % 0.75 % 0.93 % 0.71 % Operating PPNR return on average assets (Non-GAAP)4 1.44 % 1.29 % 1.25 % 1.12 % 1.13 % 1.28 % 0.99 % Return on average tangible common equity (Non-GAAP)5 12.06 % 12.79 % 11.53 % 11.60 % 9.99 % 12.01 % 9.82 % Operating return on average shareholders' equity (Non-GAAP)6 9.96 % 10.92 % 9.19 % 9.17 % 7.80 % 9.83 % 7.36 % Operating return on average tangible common equity (Non-GAAP)7 12.07 % 13.53 % 11.53 % 11.60 % 9.94 % 12.20 % 9.48 % Operating Efficiency Ratio: Efficiency ratio (GAAP) 60.91 % 66.32 % 66.14 % 68.96 % 68.98 % 65.45 % 70.49 % Adjustment for taxable equivalent yields (0.43 ) % (0.47 ) % (0.47 ) % (0.50 ) % (0.49 ) % (0.47 ) % (0.46 ) % Adjustment for securities gains (losses) — % (4.50 ) % (0.01 ) % — % 0.09 % (1.19 ) % 0.03 % Adjustment for sale of branch location — % — % — % — % — % — % 0.66 % Adjustment for sale of SBKI — % 5.57 % — % — % — % 1.32 % — % Adjustment for restructuring cost (0.02 ) % (3.31 ) % — % — % — % (0.70 ) % — % Operating efficiency ratio (Non-GAAP) 60.45 % 63.61 % 65.66 % 68.46 % 68.58 % 64.41 % 70.72 % 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 Dec Sep Jun Mar Dec 2025 2025 2025 2025 2024 Tangible Common Equity: Shareholders' equity (GAAP) $ 552,492 $ 538,482 $ 519,127 $ 505,941 $ 491,461 Less goodwill and other intangible assets 95,328 95,807 103,588 104,154 104,723 Tangible common equity (Non-GAAP) $ 457,164 $ 442,675 $ 415,539 $ 401,787 $ 386,738 Average Tangible Common Equity: Average shareholders' equity (GAAP) $ 546,489 $ 525,829 $ 511,067 $ 497,980 $ 489,172 Less average goodwill and other intangible assets 95,619 101,326 103,936 104,504 105,093 Average tangible common equity (Non-GAAP) $ 450,870 $ 424,503 $ 407,131 $ 393,476 $ 384,079 Tangible Book Value per Common Share: Book value per common share (GAAP) $ 32.44 $ 31.62 $ 30.51 $ 29.73 $ 29.04 Adjustment due to goodwill and other intangible assets (5.59 ) (5.63 ) (6.09 ) (6.12 ) (6.19 ) Tangible book value per common share (Non-GAAP)1 $ 26.85 $ 26.00 $ 24.42 $ 23.61 $ 22.85 Tangible Common Equity to Tangible Assets: Total Assets (GAAP) $ 5,860,810 $ 5,784,983 $ 5,490,863 $ 5,411,217 $ 5,275,904 Less goodwill and other intangibles 95,328 95,807 103,588 104,154 104,723 Tangible Assets (Non-GAAP) $ 5,765,482 $ 5,689,176 $ 5,387,275 $ 5,307,063 $ 5,171,181 Tangible common equity to tangible assets (Non-GAAP) 7.93 % 7.78 % 7.71 % 7.57 % 7.48 % 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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