SmartFinancial Announces Results for the First Quarter 2026

Press Release View all news SmartFinancial Announces Results for the First Quarter 2026 4/20/2026 7:00 AM 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 first quarter of 2026, compared to net income of $11.3 million, or $0.67 per diluted common share, for the first quarter of 2025, and compared to prior quarter net income of $13.7 million, or $0.81 per diluted common share. Highlights for the First Quarter of 2026 Operating earnings 1 of $13.7 million, or $0.81 per diluted common shareNet organic loan and lease growth of $155 million with 14% annualized quarter-over-quarter increaseDeposit growth, excluding brokered deposits, of $95 million or 7% annualized quarter-over-quarterNet interest margin, fully tax equivalent basis (“FTE”) expanded to 3.48%, reflecting lower deposit and funding costsAllowance for credit losses (“ACL”) model change resulting in ACL to total loans and leases increase of 3bps to 0.97%Nashville expansion with Director of Private Banking and Wealth Management and additional commercial banker hires___________________________________ 1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliations. Billy Carroll, President & CEO, stated: "As anticipated, 2026 began with strong momentum due to the robust business pipeline established prior to year end and the diligent work of our associates in securing new business. Quarterly net balance loan growth of $155 million while core deposits increased by $95 million, surpassing initial forecasts. Deposit growth was particularly notable, especially after accounting for a projected $68 million seasonal withdrawal from a significant client relationship. Operating earnings per share were solid at $0.81, supported by an expansion of over 10 basis points in net interest margin quarter-over-quarter and disciplined expense management. Additionally, we maintained our quarter-over-quarter earnings per share despite a higher provision associated with a change in our ACL model, which we expect to normalize next quarter. Overall, this represents an excellent start to the year, made possible by the dedicated efforts of our over 580 associates. Thank you all for your continued commitment and positivity!” SmartFinancial's Chairman, Miller Welborn, concluded: “The Board is grateful to all our associates for delivering a strong start to 2026, which is a reflection of the team’s hard work and dedication. We appreciate the energy our teams are bringing, not only to our strategic initiatives, but also to the many operational and efficiency-enhancing projects underway. We truly value these contributions and are excited about the benefits these efforts will deliver for our Company and our stakeholders. Looking ahead, we remain confident in our strategic direction and focused on executing our priorities to build on this momentum through the remainder of 2026.” Net Interest Income and Net Interest Margin Net interest income was $45.9 million for the first quarter of 2026, compared to $45.1 million for the prior quarter. Average earning assets totaled $5.39 billion, an increase of $47.1 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 $138.7 million and average securities of $5.7 million, offset by a decrease in average federal funds sold and other earning assets of $97.3 million. Average interest-bearing liabilities increased by $66.9 million from the prior quarter, primarily attributable to an increase in average interest-bearing deposits of $66.8 million. The tax equivalent net interest margin was 3.48% for the first quarter of 2026, up from 3.38% 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 5.93% for the first quarter of 2026, compared to 6.00% for the prior quarter. The cost of total deposits for the first quarter of 2026 was 2.12%, compared to 2.26% in the prior quarter. The cost of interest-bearing liabilities was 2.72% for the first quarter of 2026, compared to 2.90% in the prior quarter. The cost of average interest-bearing deposits was 2.60% for the first quarter of 2026, compared to 2.79% 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 Mar Dec Increase Selected Interest Rates and Yields 2026 2025 (Decrease) Yield on loans and leases, excluding loan fees, FTE 5.93 % 6.00 % (0.07 )% Yield on loans and leases, FTE 6.02 % 6.08 % (0.06 )% Yield on earning assets, FTE 5.62 % 5.65 % (0.03 )% Cost of interest-bearing deposits 2.60 % 2.79 % (0.19 )% Cost of total deposits 2.12 % 2.26 % (0.14 )% Cost of interest-bearing liabilities 2.72 % 2.90 % (0.18 )% Net interest margin, FTE 3.48 % 3.38 % 0.10 % Allowance for Credit Losses on Loans and Leases and Credit Quality At March 31, 2026, the allowance for credit losses was $44.0 million. During the quarter, changes were made to SmartBank's ACL loss model, which included the adoption of a discounted cash flow methodology, refinements to key assumptions and qualitative factors, and improved use of macroeconomic drivers. As a result, the allowance for credit losses to total loans and leases rose to 0.97% as of March 31, 2026, up from 0.94% as of December 31, 2025. The following table presents detailed information related to the provision for credit losses for the periods indicated (dollars in thousands): Three Months Ended Mar Dec Increase Allowance for Credit Losses on Loans and Leases Rollforward 2026 2025 (Decrease) Beginning balance $ 40,906 $ 39,074 $ 1,832 Charge-offs (229 ) (1,993 ) 1,764 Recoveries 60 101 (41 ) Net charge-offs (169 ) (1,892 ) 1,723 Provision for credit losses(1) 3,213 3,724 (511 ) Ending balance $ 43,950 $ 40,906 $ 3,044 Allowance for credit losses to total loans and leases 0.97 % 0.94 % 0.03 % (1) The current quarter-ended and prior quarter-ended excludes an unfunded commitments provision of $926 thousand and $408 thousand, respectively. At March 31, 2026, and December 31, 2025, the unfunded commitment liability totaled $4.5 million and $3.6 million, respectively. Nonperforming loans and leases as a percentage of total loans and leases was 0.27% as of March 31, 2026, and 0.22% as of December 31, 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 0.25% as of March 31, 2026, and 0.22% as of December 31, 2025. The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands): Three Months Ended Mar Dec Increase Credit Quality 2026 2025 (Decrease) Nonaccrual loans and leases $ 12,257 $ 9,442 $ 2,815 Loans and leases past due 90 days or more and still accruing - - - Total nonperforming loans and leases 12,257 9,442 2,815 Other real estate owned - - - Other repossessed assets 2,798 3,248 (450 ) Total nonperforming assets $ 15,055 $ 12,690 $ 2,365 Nonperforming loans and leases to total loans and leases 0.27 % 0.22 % 0.05 % Nonperforming assets to total assets 0.25 % 0.22 % 0.03 % Noninterest Income Noninterest income decreased $278 thousand to $7.9 million for the first quarter of 2026, compared to $8.2 million for the prior quarter. The first quarter decrease was primarily attributable to the reduction in 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 Mar Dec Increase Noninterest Income 2026 2025 (Decrease) Service charges on deposit accounts $ 1,853 $ 1,828 $ 25 Gain on sale of securities, net 1 - 1 Mortgage banking income 760 837 (77 ) Investment services 1,796 1,683 113 Interchange and debit card transaction fees 1,418 1,375 43 Other 2,113 2,496 (383 ) Total noninterest income $ 7,941 $ 8,219 $ (278 ) Noninterest Expense Noninterest expense increased $444 thousand to $32.9 million for the first quarter of 2026, compared to $32.5 million for the prior quarter. The first quarter’s increase was primarily attributable to an increase in salaries and employee benefits and other expenses, offset by a decrease in FDIC insurance expense. The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands): Three Months Ended Mar Dec Increase Noninterest Expense 2026 2025 (Decrease) Salaries and employee benefits $ 20,414 $ 19,917 $ 497 Occupancy and equipment 3,344 3,388 (44 ) FDIC insurance 750 1,025 (275 ) Other real estate and loan related expenses 792 858 (66 ) Advertising and marketing 387 393 (6 ) Data processing and technology 2,436 2,413 23 Professional services 1,193 1,132 61 Amortization of intangibles 457 479 (22 ) Restructuring expenses - 16 (16 ) Other 3,142 2,850 292 Total noninterest expense $ 32,915 $ 32,471 $ 444 Income Tax Expense Income tax expense was $3.1 million for the first quarter of 2026, an increase of $76 thousand, compared to $3.0 million for the prior quarter. Balance Sheet Trends Total assets at March 31, 2026, were $5.91 billion compared to $5.86 billion at December 31, 2025. The $46.9 million increase is primarily attributable to increases in loans and leases of $154.8 million, securities of $11.0 million, premises and equipment of $5.0 million, and bank owned life insurance of $913 thousand, offset by a decrease in cash and cash equivalents of $118.3 million, loans held for sale of $3.6 million and an increase in provision of credit losses of $3.0 million. Total liabilities were $5.35 billion at March 31, 2026, compared to $5.31 billion at December 31, 2025, an increase of $37.2 million. Total deposits increased $43.4 million, which was driven primarily by increases in money market deposits of $182.3 million, other time deposits of $16.1 million, and interest-bearing demand deposits of $8.6 million, offset by a decline in noninterest demand deposits of $111.6 million and brokered deposits of $51.9 million. In addition, other liabilities decreased by $6.0 million. Shareholders' equity at March 31, 2026, totaled $562.1 million, an increase of $9.7 million, from December 31, 2025. The increase in shareholders' equity was primarily driven by net income of $13.7 million for the three months ending March 31, 2026, offset by an increase of $3.0 million in accumulated other comprehensive loss and dividends paid of $1.4 million. Tangible book value per common share1 was $27.33 at March 31, 2026, compared to $26.85 at December 31, 2025. Tangible common equity1 as a percentage of tangible assets1 was 8.04% at March 31, 2026, compared with 7.93% at December 31, 2025. The following table presents selected balance sheet information for the periods indicated (dollars in thousands): Mar Dec Increase Selected Balance Sheet Information 2026 2025 (Decrease) Total assets $ 5,907,685 $ 5,860,810 $ 46,875 Total liabilities 5,345,524 5,308,318 37,206 Total equity 562,161 552,492 9,669 Securities 673,051 662,003 11,048 Loans and leases 4,518,391 4,363,582 154,809 Deposits 5,196,236 5,152,789 43,447 Conference Call Information SmartFinancial issued this earnings release for the first quarter of 2026 on Monday, April 20, 2026, and will host a conference call on Monday, April 20, 2026, at 10:00 a.m. ET. To access this interactive teleconference, dial (833) 470-1428 or (404) 975-4839 and enter the access code, 156265. A replay of the conference call will be available through July 19, 2026, by dialing (866) 813-9403 or (929) 458-6194 and enter the access code, 215769. 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 and loan servicing centers 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 (10) Operating return on average assets (2) Operating noninterest income (11) Operating PPNR return on average assets (3) Operating noninterest expense (12) Operating return on average shareholders’ equity (4) Operating pre-provision net revenue (“PPNR”) earnings (13) Return on average tangible common equity (5) Tangible common equity (14) Operating return on average tangible common equity (6) Average tangible common equity (15) Operating noninterest income/average assets (7) Tangible book value per common share (16) Operating noninterest expense/average assets (8) Tangible assets (17) Tangible common equity to tangible assets (9) Operating 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 Mar Dec Sep Jun Mar 2026 2025 2025 2025 2025 Assets: Cash and cash equivalents $ 346,071 $ 464,417 $ 557,127 $ 365,096 $ 422,984 Securities available-for-sale, at fair value 552,083 539,882 511,095 502,150 499,445 Securities held-to-maturity, at amortized cost 120,968 122,121 123,364 124,520 125,576 Other investments 16,597 16,441 14,888 14,713 14,371 Loans held for sale 7,277 10,865 9,855 5,484 3,843 Loans and leases 4,518,391 4,363,582 4,222,369 4,124,062 3,992,207 Less: Allowance for credit losses (43,950 ) (40,906 ) (39,074 ) (39,776 ) (38,175 ) Loans and leases, net 4,474,441 4,322,676 4,183,295 4,084,286 3,954,032 Premises and equipment, net 93,360 88,387 89,250 90,204 90,708 Other real estate owned — — — 144 144 Goodwill and other intangibles, net 94,871 95,328 95,807 103,588 104,154 Bank owned life insurance 120,438 119,525 118,610 117,697 116,805 Other assets 81,579 81,168 81,692 82,981 79,155 Total assets $ 5,907,685 $ 5,860,810 $ 5,784,983 $ 5,490,863 $ 5,411,217 Liabilities: Deposits: Noninterest-bearing demand $ 951,366 $ 1,062,918 $ 931,477 $ 906,965 $ 884,294 Interest-bearing demand 954,292 945,716 929,454 843,820 885,063 Money market and savings 2,455,945 2,273,612 2,218,313 2,124,623 2,131,828 Time deposits 834,633 870,543 971,653 996,712 907,474 Total deposits 5,196,236 5,152,789 5,050,897 4,872,120 4,808,659 Borrowings 3,178 3,009 1,301 6,966 7,610 Subordinated debt 98,733 98,662 138,604 39,726 39,705 Other liabilities 47,377 53,858 55,699 52,924 49,302 Total liabilities 5,345,524 5,308,318 5,246,501 4,971,736 4,905,276 Shareholders' Equity: Common stock 17,098 17,029 17,028 17,018 17,018 Additional paid-in capital 296,284 295,950 295,742 295,209 294,736 Retained earnings 261,032 248,719 236,380 224,061 213,721 Accumulated other comprehensive loss (12,366 ) (9,319 ) (10,781 ) (17,274 ) (19,647 ) Total shareholders' equity attributable to SmartFinancial Inc. and Subsidiary 562,048 552,379 538,369 519,014 505,828 Non-controlling interest - preferred stock of subsidiary 113 113 113 113 113 Total shareholders' equity 562,161 552,492 538,482 519,127 505,941 Total liabilities & shareholders' equity $ 5,907,685 $ 5,860,810 $ 5,784,983 $ 5,490,863 $ 5,411,217 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands except share and per share data) Three Months Ended Mar Dec Sep Jun Mar 2026 2025 2025 2025 2025 Interest income: Loans and leases, including fees $ 65,638 $ 65,573 $ 64,282 $ 61,049 $ 57,762 Investment securities: Taxable 5,492 5,662 4,876 4,848 4,775 Tax-exempt 555 536 441 395 354 Federal funds sold and other earning assets 2,585 3,854 4,919 3,161 3,485 Total interest income 74,270 75,625 74,518 69,453 66,376 Interest expense: Deposits 26,529 28,646 30,464 28,301 27,335 Borrowings 1 1 14 70 70 Subordinated debt 1,864 1,884 1,610 739 733 Total interest expense 28,394 30,531 32,088 29,110 28,138 Net interest income 45,876 45,094 42,430 40,343 38,238 Provision for credit losses 4,139 4,132 227 2,411 979 Net interest income after provision for credit losses 41,737 40,962 42,203 37,932 37,259 Noninterest income: Service charges on deposit accounts 1,853 1,828 1,831 1,766 1,736 Gain (loss) on sale of securities, net 1 — (3,715 ) (4 ) — Mortgage banking 760 837 709 633 493 Investment services 1,796 1,683 1,690 1,440 1,769 Insurance commissions — — 1,049 1,554 1,412 Interchange and debit card transaction fees 1,418 1,375 1,338 1,342 1,220 Gain on sale of SBK Insurance ("SBKI") — — 3,955 — — Other 2,113 2,496 1,780 2,167 1,967 Total noninterest income 7,941 8,219 8,637 8,898 8,597 Noninterest expense: Salaries and employee benefits 20,414 19,917 19,544 19,602 19,234 Occupancy and equipment 3,344 3,388 3,468 3,432 3,397 FDIC insurance 750 1,025 1,025 992 960 Other real estate and loan related expense 792 858 969 757 658 Advertising and marketing 387 393 454 390 382 Data processing and technology 2,436 2,413 2,594 2,651 2,657 Professional services 1,193 1,132 1,123 1,153 1,368 Amortization of intangibles 457 479 536 566 569 Restructuring expenses — 16 1,310 — — Other 3,142 2,850 2,846 3,026 3,071 Total noninterest expense 32,915 32,471 33,869 32,569 32,296 Income before income taxes 16,763 16,710 16,971 14,261 13,560 Income tax expense 3,083 3,007 3,285 2,556 2,306 Net income $ 13,680 $ 13,703 $ 13,686 $ 11,705 $ 11,254 Earnings per common share: Basic $ 0.81 $ 0.82 $ 0.82 $ 0.70 $ 0.67 Diluted $ 0.81 $ 0.81 $ 0.81 $ 0.69 $ 0.67 Weighted average common shares outstanding: Basic 16,821,486 16,788,065 16,781,236 16,778,988 16,767,535 Diluted 16,935,530 16,922,482 16,908,920 16,878,736 16,872,097 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS Three Months Ended March 31, 2026 December 31, 2025 March 31, 2025 Average Yield/ Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Balance Interest Cost Assets: Loans and leases, including fees1 $ 4,434,181 $ 65,855 6.02 % $ 4,295,446 $ 65,807 6.08 % $ 3,941,295 $ 58,008 5.97 % Taxable securities 584,608 5,492 3.81 % 580,256 5,662 3.87 % 555,914 4,775 3.48 % Tax-exempt securities2 80,535 703 3.54 % 79,149 678 3.40 % 63,085 448 2.88 % Federal funds sold and other earning assets 286,539 2,585 3.66 % 383,882 3,854 3.98 % 306,966 3,485 4.60 % Total interest-earning assets 5,385,863 74,635 5.62 % 5,338,733 76,001 5.65 % 4,867,260 66,716 5.56 % Noninterest-earning assets 397,680 400,618 405,860 Total assets $ 5,783,543 $ 5,739,351 $ 5,273,120 Liabilities and Shareholders’ Equity: Interest-bearing demand deposits $ 955,450 3,931 1.67 % $ 902,505 3,817 1.68 % $ 846,823 3,743 1.79 % Money market and savings deposits 2,337,523 15,236 2.64 % 2,254,175 16,017 2.82 % 2,064,134 15,065 2.96 % Time deposits 841,515 7,362 3.55 % 911,044 8,812 3.84 % 880,933 8,527 3.93 % Total interest-bearing deposits 4,134,488 26,529 2.60 % 4,067,724 28,646 2.79 % 3,791,890 27,335 2.92 % Borrowings 3,549 1 0.11 % 3,024 1 0.13 % 8,220 70 3.45 % Subordinated debt 98,692 1,864 7.66 % 99,062 1,884 7.55 % 39,692 733 7.49 % Total interest-bearing liabilities 4,236,729 28,394 2.72 % 4,169,810 30,531 2.90 % 3,839,802 28,138 2.97 % Noninterest-bearing deposits 931,863 964,612 884,078 Other liabilities 54,603 58,440 51,260 Total liabilities 5,223,195 5,192,862 4,775,140 Shareholders' equity 560,348 546,489 497,980 Total liabilities and shareholders' equity $ 5,783,543 $ 5,739,351 $ 5,273,120 Net interest income, taxable equivalent $ 46,241 $ 45,470 $ 38,578 Interest rate spread 2.90 % 2.74 % 2.59 % Tax equivalent net interest margin 3.48 % 3.38 % 3.21 % Percentage of average interest-earning assets to average interest-bearing liabilities 127.12 % 128.03 % 126.76 % Percentage of average equity to average assets 9.69 % 9.52 % 9.44 % 1 Yields computed on tax-exempt loans on a tax equivalent basis include $218 thousand, $235 thousand, and $246 thousand of taxable equivalent income for the quarters ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively. 2 Yields computed on tax-exempt instruments on a tax equivalent basis include $148 thousand, $142 thousand, and $94 thousand of taxable equivalent income for the quarters ended March 31, 2026. December 31, 2025, and March 31 2025, respectively. SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) As of and for The Three Months Ended Mar Dec Sep Jun Mar 2026 2025 2025 2025 2025 Composition of Loans and Leases: Commercial real estate: Non-owner occupied $ 1,263,455 $ 1,196,758 $ 1,136,080 $ 1,114,133 $ 1,117,392 Owner occupied 1,033,211 1,022,871 1,012,088 958,989 885,396 Commercial real estate, total 2,296,666 2,219,629 2,148,168 2,073,122 2,002,788 Consumer real estate 851,484 834,626 811,150 803,270 784,602 Construction & land development 478,301 419,176 390,691 391,155 357,393 Commercial & industrial 819,875 817,595 794,751 778,754 768,454 Leases 54,296 55,422 60,301 62,495 64,208 Consumer and other 17,769 17,134 17,308 15,266 14,762 Total loans and leases $ 4,518,391 $ 4,363,582 $ 4,222,369 $ 4,124,062 $ 3,992,207 Asset Quality and Additional Loan Data: Nonperforming loans and leases $ 12,257 $ 9,442 $ 10,099 $ 7,921 $ 7,807 Other real estate owned — — — 144 144 Other repossessed assets 2,798 3,248 2,444 2,397 2,414 Total nonperforming assets $ 15,055 $ 12,690 $ 12,543 $ 10,462 $ 10,365 Modified loans and leases1 not included in nonperforming loans and leases $ 208 $ 219 $ 1,783 $ 1,660 $ 1,978 Net charge-offs to average loans and leases (annualized) 0.02 % 0.18 % 0.10 % 0.01 % 0.01 % Allowance for credit losses to total loans and leases 0.97 % 0.94 % 0.93 % 0.96 % 0.96 % Nonperforming loans and leases to total loans and leases 0.27 % 0.22 % 0.24 % 0.19 % 0.20 % Nonperforming assets to total assets 0.25 % 0.22 % 0.22 % 0.19 % 0.19 % Capital Ratios: Equity to Assets 9.52 % 9.43 % 9.31 % 9.45 % 9.35 % Tangible common equity to tangible assets (Non-GAAP)2 8.04 % 7.93 % 7.78 % 7.71 % 7.57 % SmartFinancial, Inc.3 Tier 1 leverage 8.41 % 8.30 % 8.21 % 8.25 % 8.16 % Common equity Tier 1 9.77 % 9.83 % 9.85 % 9.67 % 9.79 % Tier 1 capital 9.77 % 9.83 % 9.85 % 9.67 % 9.79 % Total capital 12.68 % 12.71 % 13.31 % 11.04 % 11.18 % SmartBank3 Tier 1 leverage 9.88 % 9.71 % 9.59 % 8.88 % 8.76 % Common equity Tier 1 11.47 % 11.51 % 11.56 % 10.41 % 10.51 % Tier 1 capital 11.47 % 11.51 % 11.56 % 10.41 % 10.51 % Total capital 12.37 % 12.32 % 12.37 % 11.25 % 11.35 % 1 Borrowers 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. 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 Three Months Ended Mar Dec Sep Jun Mar 2026 2025 2025 2025 2025 Selected Performance Ratios (Annualized): Return on average assets 0.96 % 0.95 % 0.96 % 0.88 % 0.87 % Return on average shareholders' equity 9.90 % 9.95 % 10.33 % 9.19 % 9.17 % Return on average tangible common equity1 11.93 % 12.06 % 12.79 % 11.53 % 11.60 % Noninterest income / average assets 0.56 % 0.57 % 0.61 % 0.67 % 0.66 % Noninterest expense / average assets 2.31 % 2.24 % 2.38 % 2.44 % 2.48 % Efficiency ratio 61.16 % 60.91 % 66.32 % 66.14 % 68.96 % Operating Selected Performance Ratios (Annualized): Operating return on average assets1 0.96 % 0.95 % 1.02 % 0.88 % 0.87 % Operating PPNR return on average assets1 1.47 % 1.44 % 1.29 % 1.25 % 1.12 % Operating return on average shareholders' equity1 9.90 % 9.96 % 10.92 % 9.19 % 9.17 % Operating return on average tangible common equity1 11.93 % 12.07 % 13.53 % 11.53 % 11.60 % Operating efficiency ratio1 60.75 % 60.45 % 63.61 % 65.66 % 68.46 % Operating noninterest income / average assets1 0.56 % 0.57 % 0.59 % 0.67 % 0.66 % Operating noninterest expense / average assets1 2.31 % 2.24 % 2.29 % 2.44 % 2.48 % Selected Interest Rates and Yields: Yield on loans and leases, excluding loan fees, FTE 5.93 % 6.00 % 6.05 % 5.99 % 5.88 % Yield on loans and leases, FTE 6.02 % 6.08 % 6.14 % 6.07 % 5.97 % Yield on earning assets, FTE 5.62 % 5.65 % 5.68 % 5.65 % 5.56 % Cost of interest-bearing deposits 2.60 % 2.79 % 2.98 % 2.95 % 2.92 % Cost of total deposits 2.12 % 2.26 % 2.44 % 2.39 % 2.37 % Cost of interest-bearing liabilities 2.72 % 2.90 % 3.07 % 2.99 % 2.97 % Net interest margin, FTE 3.48 % 3.38 % 3.25 % 3.29 % 3.21 % Per Common Share: Net income, basic $ 0.81 $ 0.82 $ 0.82 $ 0.70 $ 0.67 Net income, diluted 0.81 0.81 0.81 0.69 0.67 Operating earnings, basic1 0.81 0.82 0.86 0.70 0.67 Operating earnings, diluted1 0.81 0.81 0.86 0.69 0.67 Book value per common share 32.88 32.44 31.62 30.51 29.73 Tangible book value per common share1 27.33 26.85 26.00 24.42 23.61 Common shares outstanding 17,098,473 17,029,317 17,028,001 17,017,547 17,017,547 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 Mar Dec Sep Jun Mar 2026 2025 2025 2025 2025 Operating Earnings: Net income (GAAP) $ 13,680 $ 13,703 $ 13,686 $ 11,705 $ 11,254 Noninterest income: Securities (gains) losses, net (1 ) — 3,715 4 — Gain on sale of SBKI — — (3,955 ) — — Noninterest expenses: Restructuring expenses — 16 1,310 — — Income taxes: Income tax effect of adjustments — (4 ) (276 ) (1 ) — Operating earnings (Non-GAAP) $ 13,679 $ 13,715 $ 14,480 $ 11,708 $ 11,254 Operating earnings per common share (Non-GAAP): Basic $ 0.81 $ 0.82 $ 0.86 $ 0.70 $ 0.67 Diluted 0.81 0.81 0.86 0.69 0.67 Operating Noninterest Income: Noninterest income (GAAP) $ 7,941 $ 8,219 $ 8,637 $ 8,898 $ 8,597 Securities (gains) losses, net (1 ) — 3,715 4 — Gain on sale of SBKI — — (3,955 ) — — Operating noninterest income (Non-GAAP) $ 7,940 $ 8,219 $ 8,397 $ 8,902 $ 8,597 Operating noninterest income (Non-GAAP)/average assets1 0.56 % 0.57 % 0.59 % 0.67 % 0.66 % Operating Noninterest Expense: Noninterest expense (GAAP) $ 32,915 $ 32,471 $ 33,869 $ 32,569 $ 32,296 Restructuring expenses — (16 ) (1,310 ) — — Operating noninterest expense (Non-GAAP) $ 32,915 $ 32,455 $ 32,559 $ 32,569 $ 32,296 Operating noninterest expense (Non-GAAP)/average assets2 2.31 % 2.24 % 2.29 % 2.44 % 2.48 % Operating Pre-provision Net revenue ("PPNR") Earnings: Net interest income (GAAP) $ 45,876 $ 45,094 $ 42,430 $ 40,343 $ 38,238 Operating noninterest income (Non-GAAP) 7,940 8,219 8,397 8,902 8,597 Operating noninterest expense (Non-GAAP) (32,915 ) (32,455 ) (32,559 ) (32,569 ) (32,296 ) Operating PPNR earnings (Non-GAAP) $ 20,901 $ 20,858 $ 18,268 $ 16,676 $ 14,539 Non-GAAP Return Ratios: Operating return on average assets (Non-GAAP)3 0.96 % 0.95 % 1.02 % 0.88 % 0.87 % Operating PPNR return on average assets (Non-GAAP)4 1.47 % 1.44 % 1.29 % 1.25 % 1.12 % Return on average tangible common equity (Non-GAAP)5 11.93 % 12.06 % 12.79 % 11.53 % 11.60 % Operating return on average shareholders' equity (Non-GAAP)6 9.90 % 9.96 % 10.92 % 9.19 % 9.17 % Operating return on average tangible common equity (Non-GAAP)7 11.93 % 12.07 % 13.53 % 11.53 % 11.60 % Operating Efficiency Ratio: Efficiency ratio (GAAP) 61.16 % 60.91 % 66.32 % 66.14 % 68.96 % Adjustment for taxable equivalent yields (0.41 )% (0.43 )% (0.47 )% (0.47 )% (0.50 )% Adjustment for securities gains (losses) — % — % (4.50 )% (0.01 )% — % Adjustment for sale of SBKI — % — % 5.57 % — % — % Adjustment for restructuring cost — % (0.02 )% (3.31 )% — % — % Operating efficiency ratio (Non-GAAP) 60.75 % 60.45 % 63.61 % 65.66 % 68.46 % 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 Mar Dec Sep Jun Mar 2026 2025 2025 2025 2025 Tangible Common Equity: Shareholders' equity (GAAP) $ 562,161 $ 552,492 $ 538,482 $ 519,127 $ 505,941 Less goodwill and other intangible assets 94,871 95,328 95,807 103,588 104,154 Tangible common equity (Non-GAAP) $ 467,290 $ 457,164 $ 442,675 $ 415,539 $ 401,787 Average Tangible Common Equity: Average shareholders' equity (GAAP) $ 560,348 $ 546,489 $ 525,829 $ 511,067 $ 497,980 Less average goodwill and other intangible assets 95,145 95,619 101,326 103,936 104,504 Average tangible common equity (Non-GAAP) $ 465,203 $ 450,870 $ 424,503 $ 407,131 $ 393,476 Tangible Book Value per Common Share: Book value per common share (GAAP) $ 32.88 $ 32.44 $ 31.62 $ 30.51 $ 29.73 Adjustment due to goodwill and other intangible assets (5.55 ) (5.59 ) (5.63 ) (6.09 ) (6.12 ) Tangible book value per common share (Non-GAAP)1 $ 27.33 $ 26.85 $ 26.00 $ 24.42 $ 23.61 Tangible Common Equity to Tangible Assets: Total Assets (GAAP) $ 5,907,685 $ 5,860,810 $ 5,784,983 $ 5,490,863 $ 5,411,217 Less goodwill and other intangibles 94,871 95,328 95,807 103,588 104,154 Tangible Assets (Non-GAAP) $ 5,812,814 $ 5,765,482 $ 5,689,176 $ 5,387,275 $ 5,307,063 Tangible common equity to tangible assets (Non-GAAP) 8.04 % 7.93 % 7.78 % 7.71 % 7.57 % 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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