SMBK SmartFinancial Inc

SmartFinancial, Inc. ("SmartFinancial"); (NASDAQ:SMBK), announced today net income of $1.6 million in its third quarter of 2016, compared to $(0.1) million a year ago. In the third quarter 2015, SmartFinancial successfully completed the merger of two holding companies, legacy SmartFinancial, Inc. and Cornerstone Bancshares, Inc., and carried forward the name "SmartFinancial, Inc." In the first quarter of 2016, SmartFinancial completed the merger of Cornerstone Community Bank with and into SmartBank.  This quarter completes the fourth full quarter’s results from the combined company and the second full quarter's results of the merged bank.

Billy Carroll, President & CEO, stated: "We are pleased to see the hard work of our associates materialize in the form of improved results for our shareholders with increases in earnings per share, return on equity and return on assets this quarter.  Loan growth was over 12 percent annualized, which was the second quarter it grew at a double digit pace.  Our non-interest income is improving thanks to the results from our mortgage business and higher deposit service charges driven by balance growth.  Our non interest expense reduction was primarily due to merger efficiencies.  We are excited to put our merger expenses behind us and concentrate on the successful execution of our 2016 goals.”

SmartFinancial's Chairman, Miller Welborn, concluded:  "It is exciting to see the internal achievements we have made as a company translate into improved external results.  To be able to grow while maintaining a strong margin, improving asset quality, and increasing efficiencies is a testament to leadership at all levels of our company.  Every day we strive to achieve our goals of being a best place to work, a great place to bank and especially rewarding for our shareholders."

Performance Highlights

• Net income available to common shareholders totaled $1.3 million or $0.23 per share during the third quarter of 2016.
• Annualized return on average assets equaled 0.63 percent in the third quarter of 2016, compared to 0.48 percent in the previous quarter.
• Annualized net loan growth was approximately 12.42 percent in the third quarter of 2016, with a healthy mix of construction & development, residential real estate, and commercial real estate loan growth.
• Asset quality was outstanding with nonperforming assets to total assets dropping to just 0.41 percent.
• Non interest income as a percent of average assets increased to 0.47 percent as the sale of mortgage and SBA loans increased over 45 percent.

Third Quarter 2016 compared to Second Quarter 2016

Net operating earnings available to common shareholders, which excludes purchased loans accounting adjustments, securities gains, merger and conversion costs, and foreclosed assets gains and losses, totaled $1,131 thousand in the third  quarter of 2016 compared to $634 thousand in the previous quarter. Net income available to common shareholders totaled $1.3 million in the third quarter of 2016, or $0.22 per diluted share, compared to $0.9 million, or $0.15 per diluted share, in the second quarter of 2016.

Net interest income to average assets of 3.79 percent for the quarter decreased from 3.87 percent in the second quarter of 2016. Net interest income totaled $9.7 million in the third quarter of 2016 compared to $9.6 million in the second quarter of 2016. Net interest income was positively impacted during the quarter by increased loan balances.  Net interest margin, taxable equivalent, fell slightly from 4.11 percent in the second quarter of 2016 to 4.03 percent in the third quarter of 2016 primarily as a result of a reduction in purchased loan accounting adjustments and lower  balances and yields in the securities portfolio.

Provision for loan losses was $261 thousand in the third quarter of 2016, compared to $218 thousand in the second quarter of 2016. The increase in provision for loan losses was primarily due to the growth of the loan portfolio during the quarter.  Annualized net charge-offs remained the same at  0.01 percent of average loans in the second third quarter of 2016.

The ALLL was $5.0 million, or 0.62 percent of total loans as of September 30, 2016, compared to $4.7 million, or 0.61 percent of total loans, as of June 30, 2016.  Adjusted ALLL, which includes the ALLL as well as net acquisition accounting fair value adjustments for acquired loans, was 1.93 percent of total loans as of September 30, 2016, which was down from 2.00 percent as of June 30, 2016. The reduction in adjusted ALLL resulted from continued accretion of fair value discounts.

Nonperforming loans as a percentage of total loans was 0.21 percent as of September 30, 2016, which was down from 0.29 percent in the prior quarter. Total nonperforming assets (which include nonaccrual loans, loans past due 90 days or more and still accruing, and foreclosed assets) as a percentage of total assets was 0.41 percent as of September 30, 2016, compared to 0.69 percent as of June 30, 2016.

Non-interest income to average assets of 0.47 percent for the quarter increased from 0.39 percent in the second quarter of 2016. Non-interest income totaled $1.2 million in the third quarter of 2016, compared to $961 thousand in the second quarter of 2016.  The increase in non-interest income was primarily due to higher service charges and fees, higher gains on the sale of SBA and mortgage loans, and gains on sale of foreclosed assets.

Non-interest expense to average assets of 3.16 percent for the quarter was down from 3.41 percent in the second quarter of 2016. Non-interest expense totaled $8.0 million in the third quarter of 2016, which was down $422 thousand from the second quarter of 2016 primarily due to normalized post merger data processing costs, the completion of repairs at one branch, and a drop in salary and employee benefit expenses.  Occupancy expense of $965 thousand was down $172 thousand from the previous quarter due to the completion of a repair project at one branch.  Data processing expenses decreased $98 thousand compared to the second quarter in the absence of merger related costs.

Income tax expense was $947 thousand in the third quarter of 2016 compared to $691 thousand in the second quarter of 2016. The company's effective tax rate was 37.02 percent in the third quarter of 2016 compared to 36.71 percent in the second quarter of 2016.

Third Quarter 2016 compared to Third Quarter 2015

Net operating earnings available to common shareholders, which excludes purchased loans accounting adjustments, securities gains, merger and conversion costs, and foreclosed assets gains and losses, totaled $1.1 million  in the third quarter of 2016 compared to $154 thousand in the third quarter of 2015. Net income available to common shareholders totaled $1.3 million in the third quarter of 2016, or $0.22 per diluted share, compared to $(107) thousand, or $(0.03) per diluted share, in the third quarter of 2015. The company's operations and financial performance were significantly impacted in nearly every respect by the merger of SmartFinancial, Inc. and Cornerstone Bancshares, Inc. on August 31, 2015. Therefore, financial results in 3Q 2016 are not comparable to results reported for 3Q 2015.

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 twelve branches, two loan production offices, and one mortgage production office located in East Tennessee, the Florida Panhandle, and North Georgia. Recruiting the best people, delivering exceptional client service, strategic branching and a conservative and disciplined approach to lending have all given rise to SmartBank’s success. More information about SmartFinancial can be found on its website: www.smartbank.com. 

This release contains forward-looking statements. SmartFinancial cautions you that a number of important factors could cause actual results to differ materially from those currently anticipated in any forward-looking statement. Such factors include, but are not limited to: changes in management’s plans for the future, prevailing economic and political conditions, particularly in our market area; credit risk associated with our lending activities; changes in interest rates, loan demand, real estate values and competition; changes in accounting principles, policies, and guidelines; changes in any applicable law, rule, regulation or practice with respect to tax or legal issues; and other economic, competitive, governmental, regulatory and technological factors affecting our operations, pricing, products and services and other factors that may be described in our Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed with the Securities and Exchange Commission from time to time. The forward-looking statements are made as of the date of this release, and, except as may be required by applicable law or regulation, SmartFinancial assumes no obligation to update the forward-looking statements or to update the reasons why actual results could differ from those projected in the forward-looking statements.

Statements included in this press release include non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of non-GAAP financial measures to GAAP financial measures. SmartFinancial management uses non-GAAP financial measures, including: (i) net operating earnings available to common shareholders; (ii) operating efficiency ratio; (iii) adjusted allowance for loan losses to loans; and (iv) tangible common equity, in its analysis of the company's performance. Net operating earnings available to common shareholders excludes the following from net income available to common shareholders: securities gains and losses, merger and conversion costs, OREO gain and losses, and the income tax effect of adjustments. The operating efficiency ratio excludes securities gains and losses, merger and conversion costs, and adjustment for OREO gains and losses from the efficiency ratio. Adjusted allowance for loan losses adds net acquisition accounting fair value discounts to the allowance for loan losses. Tangible common equity excludes total preferred stock, preferred stock paid in capital, goodwill, and other intangible assets.

Management believes that non-GAAP financial measures provide additional useful information that allows readers to evaluate the ongoing performance of the company and provide meaningful comparisons to its peers. 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.

 

SmartFinancial, Inc. and Subsidiaries
Condensed Consolidated Financial Information (unaudited)
(In thousands except per share data)
		As of and for the three months ending
		September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Selected Performance Ratios (Annualized)
Return on average assets		0.63		%		0.48		%		0.54		%		0.47		%		(0.04		)%
Net operating return on average assets (Non-GAAP)		0.44		%		0.26		%		0.40		%		0.24		%		0.10		%
Return on average shareholder equity		6.19		%		4.64		%		5.29		%		4.75		%		(0.44		)%
Net operating return on average shareholder equity (Non-GAAP)		4.35		%		2.47		%		3.89		%		2.47		%		1.05		%
Net interest income / average assets		3.79		%		3.87		%		3.67		%		3.79		%		3.65		%
Yield on earning assets, TE (Non-GAAP)		4.48		%		4.56		%		4.40		%		4.54		%		4.50		%
Cost of interest-bearing liabilities		0.57		%		0.56		%		0.53		%		0.52		%		0.53		%
Net interest margin, TE (Non-GAAP)		4.03		%		4.11		%		3.96		%		4.10		%		4.04		%
Non-interest income / average assets		0.47		%		0.39		%		0.43		%		0.46		%		0.10		%
Non-interest expense / average assets		3.16		%		3.41		%		3.19		%		3.20		%		3.69		%
Efficiency ratio		74.06		%		80.13		%		77.95		%		75.24		%		98.38		%
Operating efficiency ratio (Non-GAAP)		80.31		%		85.49		%		82.09		%		85.73		%		90.96		%
Pre-tax pre-provision income / average assets		1.09		%		0.85		%		0.90		%		1.05		%		0.06		%
Per Common Share
Net income, basic		$	0.23			$	0.16			$	0.20			$	0.20			$	(0.03	)
Net income, diluted		0.22				0.15				0.19				0.19				(0.03		)
Net operating earnings, basic (Non-GAAP)		0.19				0.11				0.13				0.10				0.04
Net operating earnings, diluted (Non-GAAP)		0.19				0.10				0.13				0.10				0.04
Book value as of		15.80				15.64				15.47				15.19				15.07
Tangible book value (Non-GAAP) as of		14.67				14.48				14.29				13.99				13.84
Common shares outstanding as of		5,897				5,824				5,817				5,806				5,735
Composition Of Loans
Commercial & financial		$	83,471			$	87,253			$	83,197			$	85,526			$	81,107
Real estate construction & Development		128,727				115,385				113,028				105,132				97,050
Real estate commercial		394,989				389,368				370,922				369,263				365,607
owner occupied		172,397				177,052				166,364				161,698				153,496
non-owner occupied		222,592				212,315				204,558				207,565				212,111
Real estate residential		182,952				174,013				166,214				161,427				162,090
Other loans		7,263				7,377				7,578				6,368				4,585
Total loans		$	797,402			$	773,396			$	740,939			$	727,716			$	710,439

SmartFinancial, Inc. and Subsidiaries
Condensed Consolidated Financial Information (unaudited)
(In thousands except per share data)
		As of and for the three months ending
		September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Asset Quality Data and Ratios
Nonperforming loans		$	1,688			$	2,226			$	3,171			$	2,754			$	1,715
Foreclosed assets		2,536				4,936				5,133				5,358				9,647
Total nonperforming assets		$	4,224			$	7,162			$	8,304			$	8,112			$	11,362
Restructured loans not included in nonperforming loans		$	3,388			$	3,639			$	3,677			$	3,693			$	3,731
Net charge-offs to average loans (annualized)		0.01		%		0.01		%		(0.02		)%		0.02		%		0.03		%
Allowance for loan losses to loans		0.62		%		0.61		%		0.61		%		0.60		%		0.54		%
Adjusted allowance for loan losses to loans (Non-GAAP)		1.93		%		2.00		%		2.11		%		2.18		%		2.26		%
Nonperforming loans to total loans, gross		0.21		%		0.29		%		0.43		%		0.38		%		0.24		%
Nonperforming assets to total assets		0.41		%		0.69		%		0.82		%		0.79		%		1.13		%
Capital Ratios
Tangible equity to tangible assets		9.53		%		9.37		%		9.43		%		9.17		%		9.14		%
Tangible common equity to tangible assets		8.37		%		8.20		%		8.24		%		7.99		%		7.94		%
SmartFinancial Inc.:		Estimated
Tier 1 leverage		9.92		%		9.66		%		9.74		%		9.45		%		9.31		%
Common equity Tier 1		10.36		%		10.53		%		10.61		%		10.3		%		10.25		%
Tier 1 risk-based capital		11.83		%		12.04		%		12.14		%		11.78		%		11.77		%
Total risk-based capital		12.39		%		12.60		%		12.70		%		12.32		%		12.25		%
SmartBank:		Estimated
Tier 1 leverage		9.85		%		9.70		%		9.49		%		10.05		%		10.13		%
Common equity Tier 1		11.48		%		11.31		%		11.64		%		12.16		%		12.57		%
Tier 1 risk-based capital		11.48		%		11.31		%		11.64		%		12.16		%		12.57		%
Total risk-based capital		12.05		%		11.87		%		12.20		%		12.97		%		13.43		%

SmartFinancial, Inc. and Subsidiaries
Condensed Consolidated Financial Information (unaudited)
(In thousands)
BALANCE SHEET
		Ending Balances
		September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Assets
Cash & cash equivalents		$	58,587			$	71,737			$	68,933			$	79,965			$	89,936
Securities available for sale		138,628				142,875				157,560				166,413				152,150
Other investments		4,451				4,451				4,451				4,451				4,451
Total investment securities		143,079				147,326				162,011				170,864				156,601
Total loans		797,403				773,396				740,939				727,716				710,439
Allowance for loan losses		(4,964		)		(4,720		)		(4,527		)		(4,355		)		(3,828		)
Loans net		792,439				768,676				736,412				723,361				706,611
Premises and equipment		27,863				25,844				25,680				25,038				25,266
Foreclosed assets		2,536				4,936				5,133				5,358				9,647
Goodwill and other intangibles		6,675				6,754				6,848				6,941				7,034
Other assets		9,371				9,524				11,207				12,436				11,962
Total assets		$	1,040,550			$	1,034,798			$	1,016,224			$	1,023,963			$	1,007,057
Liabilities
Non-interest demand		$	145,509			$	145,864			$	132,481			$	131,419			$	123,551
Interest-bearing demand		152,216				153,166				161,454				149,424				144,012
Money market and savings		271,259				258,281				241,500				236,901				231,477
Time deposits		291,857				331,438				323,676				340,739				347,951
Total deposits		860,842				888,749				859,111				858,483				846,992
Repurchase agreements		24,202				26,883				20,747				28,068				18,442
FHLB & other borrowings		43,048				10,091				30,125				34,187				39,278
Other liabilities		7,287				6,011				4,253				3,048				3,908
Total liabilities		935,379				931,734				914,236				923,786				908,621
Shareholders' Equity
Preferred stock		12				12				12				12				12
Common stock		5,897				5,824				5,817				5,806				5,732
Additional paid-in capital		83,319				82,800				82,717				82,616				81,628
Retained earnings		15,494				14,153				13,231				12,095				10,942
Accumulated other comprehensive loss		449				275				211				(352		)		122
Total shareholders' equity		105,171				103,064				101,988				100,177				98,436
Total liabilities & shareholders' equity		$	1,040,550			$	1,034,798			$	1,016,224			$	1,023,963			$	1,007,057

SmartFinancial, Inc. and Subsidiaries
Condensed Consolidated Financial Information (unaudited)
(In thousands)
INCOME STATEMENT
		Three months ending
		September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Interest Income
Loans, including fees		$	10,111			$	9,954			$	9,374			$	9,875			$	6,660
Investment securities		602				665				717				630				458
Other interest income		51				50				63				62				35
Total interest income		10,763				10,670				10,154				10,567				7,153
Interest Expense
Deposits		1,065				1,013				961				937				688
Repurchase agreements		17				15				17				17				7
FHLB and other borrowings		17				29				45				66				32
Total interest expense		1,099				1,057				1,023				1,020				727
Net interest income		9,665				9,613				9,131				9,547				6,426
Provision for loan losses		261				218				138				567				32
Net interest income after provision for loan losses		9,404				9,394				8,993				8,980				6,394
Non-interest income
Service charges on deposit accounts		296				259				296				397				237
Gain on securities		18				98				83				—				—
Gain on sale of loans and other assets		287				197				222				86				(294		)
Gain (loss) on sale of foreclosed assets		130				(4		)		58				332				(86		)
Other non-interest income		472				410				412				340				317
Total non-interest income		1,204				961				1,071				1,155				174
Non-interest expense
Salaries and employee benefits		4,312				4,486				4,495				4,208				3,187
Occupancy expense		965				1,137				1,018				910				688
FDIC premiums		153				151				136				148				144
Foreclosed asset expense		79				64				57				110				91
Marketing		179				184				173				100				142
Data Processing		457				555				341				510				278
Professional expenses		558				551				455				760				908
Amortization of other intangibles		80				93				93				93				58
Service contracts		272				316				286				248				192
Other non-interest expense		994				936				897				965				805
Total non-interest expense		8,050				8,472				7,952				8,052				6,493
Earnings before income taxes		2,558				1,883				2,112				2,083				75
Income tax expense		947				691				764				901				152
Net income (loss)		1,611				1,192				1,348				1,182				(77		)
Dividends on preferred stock		270				270				212				30				30
Net income available to common shareholders		$	1,341			$	922			$	1,136			$	1,152			$	(107	)
NET INCOME PER COMMON SHARE
Basic		$	0.23			$	0.16			$	0.20			$	0.20			$	(0.03	)
Diluted		0.22				0.15				0.19				0.19				(0.03		)
Weighted average common shares outstanding
Basic		5,846				5,820				5,807				5,750				3,937
Diluted		6,108				6,132				6,108				6,037				4,244

SmartFinancial, Inc. and Subsidiaries
Condensed Consolidated Financial Information (unaudited)
(In thousands)
YIELD ANALYSIS
		Three Months Ended September 30, 2016											Three months ended June 30, 2016											Three Months Ended September 30, 2015
		Average								Yield/			Average								Yield/			Average								Yield/
		Balance				Interest *				Cost*			Balance				Interest *				Cost*			Balance				Interest *				Cost*
Assets
Loans		$	788,585			$	10,112			5.09	%		$	751,425			$	9,955			5.26	%		$	489,926			$	6,661			5.39	%
Investment securities and interest bearing due froms		159,683				615				1.53	%		171,526				678				1.57	%		107,061				449				1.66	%
Federal funds and other		5,442				51				3.72	%		5,719				50				3.47	%		33,539				44				0.52	%
Total interest-earning assets		953,710				10,778				4.48	%		928,670				10,683				4.56	%		630,526				7,154				4.50	%
Non-interest-earning assets		66,735											65,380											72,898
Total assets		$	1,020,445										$	994,050										$	703,424
Liabilities and Stockholders’ Equity
Interest-bearing demand deposits		$	147,102			$	73			0.20	%		$	153,881			$	69			0.18	%		$	114,727			$	45			0.16	%
Money market and savings deposits		268,307				283				0.42	%		248,401				299				0.48	%		169,916				176				0.41	%
Time deposits		312,889				709				0.90	%		321,244				645				0.80	%		234,017				468				0.79	%
Total interest-bearing deposits		728,298				1,065				0.58	%		723,526				1,013				0.56	%		518,660				689				0.53	%
Securities sold under agreement to repurchase		22,471				17				0.30	%		19,742				15				0.30	%		11,095				7				0.25	%
Federal Home Loan Bank advances and other borrowings		11,187				17				0.60	%		11,287				29				1.02	%		13,806				31				0.89	%
Total interest-bearing liabilities		761,956				1,099				0.57	%		754,555				1,057				0.56	%		543,561				727				0.53	%
Noninterest-bearing deposits		148,178											132,765											88,468
Other liabilities		6,194											4,111											2,141
Total liabilities		916,328											891,431											634,170
Shareholders’ equity		104,117											102,619											69,254
Total liabilities and stockholders’ equity		$	1,020,445										$	994,050										$	703,424
Net interest income, taxable equivalent						$	9,679										$	9,626										$	6,427
Interest rate spread										3.91	%										4.00	%										3.97	%
Tax equivalent net interest margin										4.03	%										4.11	%										4.04	%
Percentage of average interest-earning assets to average interest-bearing liabilities										125.17	%										123.08	%										116.0	%
Percentage of average equity to average assets										10.20	%										10.32	%										9.85	%
* Taxable equivalent basis

 

SmartFinancial, Inc. and Subsidiaries
Condensed Consolidated Financial Information (unaudited)
(In thousands)
		Three months ending
		September 30, 2016				June 30, 2016				March 31, 2016				December 31, 2015				September 30, 2015
Operating Earnings
Net income (loss) (GAAP)		$	1,611			$	1,192			$	1,348			$	1,182			$	(77	)
Purchased loan accounting adjustments*		(450		)		(597		)		(541		)		(818		)		(412		)
Securities (gains) losses		(18		)		(98		)		(83		)		—				—
Merger and conversion costs		—				153				105				230				748
Foreclosed assets (gains) losses		(130		)		4				(58		)		(332		)		86
Income tax effect of adjustments		388				250				221				352				(161		)
Net operating earnings (Non-GAAP)		1,401				904				992				614				184
Dividends on preferred stock		(270		)		(270		)		(212		)		(30		)		(30		)
Net operating earnings available to common shareholders (Non-GAAP)		$	1,131			$	634			$	780			$	584			$	154
Net operating earnings per common share:
Basic		$	0.19			$	0.11			$	0.13			$	0.10			$	0.04
Diluted		0.19				0.10				0.13				0.10				0.04
Operating Efficiency Ratio
Efficiency ratio (GAAP)		74.06		%		80.13		%		77.95		%		75.24		%		98.38		%
Adjustment for amortization of intangibles		(0.99		)%		(1.10		)%		(1.17		)%		(1.16		)%		(0.90		)%
Adjustment for taxable equivalent yields		(0.18		)%		(0.16		)%		(0.17		)%		(0.26		)%		(0.02		)%
Adjustment for purchased loan accounting adjustments*		5.59		%		7.05		%		6.81		%		10.16		%		6.34		%
Adjustment for securities (gains) losses		0.22		%		1.16		%		1.05		%		—		%		—		%
Adjustment for merger and conversion costs		—		%		(1.81		)%		(1.33		)%		(2.85		)%		(11.51		)%
Adjustment for OREO (gains) losses		1.61		%		(0.05		)%		0.73		%		4.13		%		(1.32		)%
Operating efficiency ratio (Non-GAAP)		80.31		%		85.22		%		83.87		%		85.26		%		90.97		%
Adjusted Allowance for Loan Losses
Allowance for loan losses (GAAP)		$	4,964			$	4,720			$	4,527			$	4,355			$	3,828
Net acquisition accounting fair value discounts to loans		10,742				11,053				11,381				11,781				12,520
Adjusted allowance for loan losses (Non-GAAP)		15,706				15,773				15,908				16,136				16,348
Loans (excluding acquisition accounting fair value discounts)		813,109				789,169				752,321				739,497				722,959
Adjusted allowance for loan losses to loans (Non-GAAP)		1.93		%		2.00		%		2.11		%		2.18		%		2.26		%
Tangible Common Equity
Shareholders' equity (GAAP)		$	105,171			$	103,064			$	101,988			$	100,177			$	98,436
Less preferred stock & preferred stock paid in capital		12,000				12,000				12,000				12,000				12,000
Less goodwill and other intangible assets		6,675				6,754				6,848				6,941				7,034
Tangible common equity (Non-GAAP)		$	86,496			$	84,310			$	83,140			$	81,236			$	79,402

*Consists of ASC 310-30 accretion above (below) contractual loan income and ASC 310-20 accretion

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865.868.0611
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