SmartFinancial, Inc. ("SmartFinancial"; NASDAQ: SMBK), today
announced net income of $6.0 million, or $0.42 per diluted common
share, for the third quarter of 2019, compared to net income of
$4.3 million, or $0.34 per diluted common share, for the third
quarter of 2018. Net operating earnings (Non-GAAP), which excludes
securities gains, and merger related and restructuring expenses,
totaled $6.0 million, or $0.43 per diluted common share, in the
third quarter of 2019 compared to $5.0 million, or $0.39 per
diluted common share, in the third quarter of 2018.
Billy Carroll, President & CEO, stated:
"This was another very solid quarter for our company, as we are
starting to see the positive results of our recent integration
initiatives. Our continued focus on organic growth and cost
savings are allowing us to drive stronger profitability, which has
positioned us well for the future."
SmartFinancial's Chairman, Miller Welborn,
concluded: "The consistency we are beginning to show in our
financial metrics is very exciting, as our team continues to
execute on our strategy while maintaining a keen focus on growing
our shareholder value."
Third Quarter 2019 compared to Second
Quarter 2019
Net income totaled $6.0 million, or $0.42 per
diluted common share, for the third quarter of 2019, a decrease of
$3.1 million, compared to $9.1 million, or $0.65 per diluted common
share, for the second quarter of 2019, primarily due to a $6.4
million fee received in the second quarter of 2019 in connection
with the merger termination with Entegra Financial Corp. Net
operating earnings (Non-GAAP) totaled $6.0 million, or $0.43 per
diluted common share, in the third quarter of 2019 compared to $5.6
million, or $0.40 per diluted common share, in the previous
quarter.
Net interest income increased $338 thousand to
$21.1 million for the third quarter of 2019 compared to $20.8
million for the second quarter of 2019. The tax equivalent net
interest margin was 3.91% for the third quarter of 2019 compared to
3.94% for the second quarter of 2019. The tax equivalent
average yield on interest-earning assets was 5.05% for the third
quarter of 2019, a decrease from 5.17% for the second quarter of
2019. The yield on interest-bearing liabilities decreased to 1.47%
for the third quarter of 2019 from 1.54% for the second quarter of
2019.
The yield on average loans was 5.48% for the
third quarter of 2019 compared to 5.53% for the second quarter of
2019. The decrease in yield on average loans was primarily
due to the impact from two Federal rate decreases which effected
the repricing of variable rate loans and new loan production.
During the third quarter of 2019, lower discount accretion was
recorded on acquired loans (26 basis points in the third quarter of
2019 versus 30 basis points in the second quarter of 2019) being
offset by increased loan fees (20 basis points in the third quarter
of 2019 versus 16 basis points in the second quarter of
2019). For the third quarter of 2019, the yield on average
loans, excluding accretion, was 5.22%, a decrease of one basis
point from the second quarter of 2019.
The cost of average interest-bearing deposits
decreased to 1.37% for the third quarter of 2019 from 1.42% for the
second quarter of 2019. The decrease was driven primarily by
the reduction in money market and savings rates of 21 basis points,
offset partially by an eight basis point increase in time deposit
rates.
Provision for loan losses was $724 thousand in
the third quarter of 2019, compared to $393 thousand in the second
quarter of 2019. The increase in provision was primarily due
to higher organic loan growth and an increase in specific
reserves. The allowance for loan losses was $9.8 million, or
0.53% of total loans, as of September 30, 2019, compared to
$9.1 million, or 0.50% of total loans, as of June 30, 2019.
Nonperforming loans as a percentage of total
loans was 0.17% as of September 30, 2019, an increase of two
basis points from the 0.15% reported in the second quarter of
2019. Total nonperforming assets (which include nonaccrual
loans, loans past due 90 days or more and still accruing, and other
real estate owned) as a percentage of total assets was 0.20% as of
September 30, 2019 as compared to 0.19% at June 30,
2019.
Noninterest income decreased by $6.2 million to
$2.2 million for the third quarter of 2019 compared to $8.4 million
for the second quarter of 2019 primarily due to the $6.4 million
merger termination fee received in the second quarter of 2019, and
was offset by increases in mortgage banking of $126 thousand and
service charges on deposit accounts of $60 thousand.
Operating noninterest income (Non-GAAP) to average assets
(excluding the $6.4 million merger termination fee) of 0.37% for
the third quarter of 2019 increased from 0.35% in the second
quarter of 2019.
Noninterest expense decreased by $2.1 million to
$14.7 million for the third quarter of 2019 compared to $16.8
million for the second quarter of 2019. The decrease is
primarily due to the reduction of merger-related and restructuring
expenses of $1.7 million. Operating noninterest expense
(Non-GAAP, excludes merger-related and restructuring
expenses) decreased by $378 thousand to $14.6 million for the third
quarter of 2019 compared to $15.0 million for the second quarter of
2019. This decrease was primarily due to a credit recognized
during the third quarter of 2019 from the FDIC as a result of the
FDIC Deposit Insurance exceeding 1.38% of insured deposits at June
30, 2019, as such, no FDIC insurance expense was recognized during
the third quarter of 2019. Operating noninterest expense
(Non-GAAP) to average assets was 2.47% for the third quarter of
2019 which is a decrease from 2.57% in the second quarter of
2019.
Under FDIC regulations, banks having
consolidated assets below $10 billion paid a refundable assessment
into the FDIC insurance fund over a nine quarter period beginning
with the third quarter of 2016. That assessment was to be credited
back to the institution if and when the deposit insurance fund
(“DIF”) exceeded 1.38% of insured deposits, which occurred with the
June 30, 2019 computation. Additionally, if the DIF remains above
1.38% of insured deposits assessment at December 31, 2019, an
additional credit will be applied to the fourth quarter of
2019.
Income tax expense was $1.9 million in the third
quarter of 2019 compared to $2.9 million in the second quarter of
2019. The decrease of $1.0 million in income tax expense, was
primarily due to the $6.4 million termination fee recognized in the
second quarter of 2019. The overall effective tax rate
was 24.6% for the third quarter of 2019 compared to 24.1% in the
second quarter of 2019.
Third Quarter 2019 compared to Third
Quarter 2018
Net income increased by $1.7 million to $6.0
million, or $0.42 per diluted common share, for the third quarter
of 2019 compared to $4.3 million, or $0.34 per diluted common
share, for the third quarter of 2018 primarily due to the operating
effects of the Tennessee Bancshares, Inc. and Foothills Bancorp,
Inc. acquisitions which were completed in the second and fourth
quarters of 2018, respectively. Net operating earnings (Non-GAAP)
totaled $6.0 million, or $0.43 per diluted common share, in the
third quarter of 2019 compared to $5.0 million, or $0.39 per
diluted common share, for the third quarter of 2018.
Net interest income increased $2.2 million to
$21.1 million for the third quarter of 2019 compared to $18.9
million for the third quarter of 2018. The tax equivalent net
interest margin was 3.91% for the third quarter of 2019 compared to
4.11% for the third quarter of 2018. The tax equivalent
average yield on interest-earning assets was 5.05% for the third
quarter of 2019 increasing slightly from 5.03% for the third
quarter of 2018, while the yield on interest bearing liabilities
increased to 1.47% for the third quarter of 2019 from 1.15% for the
third quarter of 2018.
The yield on average loans was 5.48% for the
third quarter of 2019 compared to 5.43% for the third quarter of
2018. The increase in yield on average loans was primarily due to
increases in yields on average loans of 10 basis points, offset by
lower discount accretion on acquired loans (26 basis points in the
third quarter of 2019 versus 31 basis points in the third quarter
of 2018). For the third quarters of 2019 and 2018, the yield
on average loans, excluding accretion, was 5.22% and 5.12%,
respectively.
The cost of average interest-bearing deposits
increased to 1.37% for the third quarter of 2019 from 1.11% for the
third quarter of 2018. Deposit rates remain elevated at the
end of the third quarter of 2019 due to a higher interest rate
environment in 2019 and continued competition for deposits.
Provision for loan losses was $724 thousand in
the third quarter of 2019, compared to $302 thousand in the third
quarter of 2018. The increase in provision was primarily due to
higher organic loan growth and an increase in specific reserves
during the third quarter of 2019 when compared to the third quarter
of 2018. The allowance for loan losses was $9.8 million, or
0.53% of total loans, as of September 30, 2019, compared to $7.2
million, or 0.45% of total loans, as of September 30, 2018.
Nonperforming loans as a percentage of total
loans was 0.17% as of September 30, 2019 and September 30, 2018.
Total nonperforming assets (which include nonaccrual loans, loans
past due 90 days or more and still accruing, and other real estate
owned) as a percentage of total assets was 0.20% as of September
30, 2019, compared to 0.34% as of September 30, 2018.
Noninterest income increased by $365 thousand to
$2.2 million for the third quarter of 2019 compared to $1.8 million
for the third quarter of 2018 primarily due to increases in deposit
services charges of $143 thousand, increases in mortgage banking of
$25 thousand and wealth revenue of $135 thousand. Noninterest
income to average assets of 0.37% for the third quarter of 2019
increased from 0.36% in the third quarter of 2018.
Noninterest expense was $14.7 million for the
third quarter of 2019 compared to $14.8 million for the third
quarter of 2018, remaining flat for compared periods. Operating
noninterest expense (Non-GAAP, excludes merger-related and
restructuring expenses of $73 thousand for third quarter of 2019
and $838 thousand for third quarter of 2018) increased by $0.7
million to $14.6 million for the third quarter of 2019 compared to
$13.9 million for the third quarter of 2018. This increase
was primarily due to increases in personnel expense, as the second
and third quarters of 2019 began to show the full effects of
acquisitions completed during the prior reporting periods.
Operating noninterest expense (Non-GAAP, excludes merger-related
and restructuring expenses) to average assets of 2.47% for the
third quarter of 2019 decreased from 2.73% in the third quarter of
2018.
Income tax expense was $1.9 million in the third
quarter of 2019 compared to $1.3 million in the third quarter of
2018. The overall effective tax rate was 24.6% for the third
quarter of 2019 compared 23.2% for the third quarter of 2018.
Certain captions and amounts in the prior
periods presented were reclassified to conform to the current
presentation. Such reclassifications had no effect on net
income or shareholders' equity.
Conference Call Information
SmartFinancial will issue its earnings release
for the third quarter of 2019 on Monday, October 21, 2019, and will
host a conference call on Tuesday, October 22, 2019 at 10:00 a.m.
ET. To access this interactive teleconference, dial (888)
317-6003 or (412) 317-6061 and enter the confirmation number,
0242522. A replay of the conference call will be available
through October 22, 2020, by dialing (877) 344-7529 or (412)
317-0088 and entering the confirmation number, 10135243.
Conference call materials (earnings release & conference call
presentation) will be published on the company’s webpage located at
http://www.smartfinancialinc.com/CorporateProfile, at 9:00 am ET
prior to the conference call.
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 29 branches
across Tennessee, Alabama, and the Florida Panhandle.
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.
SourceSmartFinancial, Inc.
|
Investor Contacts |
|
|
Billy Carroll |
Ron Gorczynski |
|
President & CEO |
Executive Vice President, Chief Financial Officer |
|
(865) 868-0613 billy.carroll@smartbank.com |
(865) 437-5724 ron.gorczynski@smartbank.com |
|
|
|
|
Media Contact |
|
|
Kelley Fowler |
|
|
Senior Vice President, Public Relations & Marketing(865)
868-0611 kelley.fowler@smartbank.com |
|
Non-GAAP Financial Measures
Statements included in this presentation 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 several Non-GAAP financial measures, including: (i)
net operating earnings, (ii) net operating return on average
assets, (iii) net operating return on average shareholder equity,
(iv) return on average tangible common equity, (v) net operating
return on average tangible common equity, (vi) operating efficiency
ratio; (vii) tangible common equity; (viii) average tangible common
equity; (ix) operating noninterest income; (x) operating
noninterest expenses; and ratios derived therefrom, in its analysis
of the company's performance. Net operating earnings excludes the
following from net income: securities gains and losses, merger
termination fee, merger related and restructuring expenses, the
effect of the December, 2017 tax law change on deferred tax assets,
tax benefit from director options previously exercised, and the
income tax effect of adjustments. Net operating return on average
equity is the annualized net operating earnings divided by average
assets. Net operating return on average equity is the annualized
net operating earnings divided by average equity. Return on average
tangible common equity is the annualized net income divided by
average tangible common equity. Net operating return on average
tangible common equity is the annualized net operating earnings
divided by average tangible common equity (Non-GAAP). The operating
efficiency ratio includes an adjustment for taxable equivalent
yields and excludes securities gains and losses and merger related
and restructuring expenses from the efficiency ratio. Tangible
common equity and average tangible common equity excludes goodwill
and other intangible assets. Operating noninterest income
excludes the merger termination fee. Operating noninterest
excludes merger-related and restructuring cost. 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 believes these non-GAAP financial
measures also 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 U.S. federal
securities laws. 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) the risk of litigation related to the termination
of our agreement and plan of merger with Entegra Financial Corp.
(the “Entegra Merger Agreement”) or the abandonment of the
transactions that were contemplated by the Entegra Merger
Agreement; (2) reputational risk resulting from the termination of
the Entegra Merger Agreement; (3) potential changes to, or the risk
that we may not be able to execute on, our business strategy as a
result of the termination of the Entegra Merger Agreement; (4) the
risk that cost savings and revenue synergies from recently
completed acquisitions may not be realized or may take longer than
anticipated to realize; (5) disruption from recently completed
acquisitions with customer, supplier, employee, or other business
relationships; (6) our ability to successfully integrate the
businesses acquired as part of previous acquisitions with the
business of SmartBank; (7) changes in management’s plans for the
future; (8) prevailing, or changes in, economic or political
conditions, particularly in our market areas; (9) credit risk
associated with our lending activities; (10) changes in interest
rates, loan demand, real estate values, or competition; (11)
changes in accounting principles, policies, or guidelines; (12)
changes in applicable laws, rules, or regulations; and (13) 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 except share and per share data) |
|
|
|
|
| |
As of and for The Three Months Ended |
| |
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
| |
|
|
|
|
|
Selected Performance Ratios
(Annualized): |
|
|
|
|
|
|
Return on average assets |
1.01 |
% |
|
1.56 |
% |
|
0.84 |
% |
|
1.17 |
% |
|
0.85 |
% |
|
Return on average shareholders' equity |
7.80 |
% |
|
12.34 |
% |
|
6.71 |
% |
|
9.44 |
% |
|
6.86 |
% |
|
Return on average tangible common equity (Non-GAAP)¹ |
10.52 |
% |
|
16.78 |
% |
|
9.26 |
% |
|
13.09 |
% |
|
9.45 |
% |
|
Noninterest income / average assets |
0.37 |
% |
|
1.44 |
% |
|
0.30 |
% |
|
0.31 |
% |
|
0.36 |
% |
|
Noninterest expense / average assets |
2.48 |
% |
|
2.88 |
% |
|
2.77 |
% |
|
2.84 |
% |
|
2.90 |
% |
|
Efficiency ratio |
63.03 |
% |
|
57.53 |
% |
|
68.65 |
% |
|
67.71 |
% |
|
71.33 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Operating Selected Performance Ratios
(Annualized): |
|
|
|
|
|
|
|
|
|
|
Net operating return on average assets (Non-GAAP)¹ |
1.02 |
% |
|
0.96 |
% |
|
0.98 |
% |
|
1.07 |
% |
|
0.98 |
% |
|
Net operating return on average shareholders' equity
(Non-GAAP)¹ |
7.87 |
% |
|
7.58 |
% |
|
7.81 |
% |
|
8.65 |
% |
|
7.88 |
% |
|
Net operating return on average tangible common equity
(Non-GAAP)¹ |
10.61 |
% |
|
10.31 |
% |
|
10.79 |
% |
|
12.00 |
% |
|
10.84 |
% |
|
Operating efficiency ratio (Non-GAAP)¹ |
62.42 |
% |
|
65.56 |
% |
|
64.25 |
% |
|
61.72 |
% |
|
67.17 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
Selected Interest Rates and Yields: |
|
|
|
|
|
|
|
|
|
|
Yield on loans |
5.48 |
% |
|
5.53 |
% |
|
5.62 |
% |
|
5.81 |
% |
|
5.43 |
% |
|
Yield on earning assets, FTE |
5.05 |
% |
|
5.17 |
% |
|
5.25 |
% |
|
5.36 |
% |
|
5.03 |
% |
|
Cost of interest-bearing deposits |
1.37 |
% |
|
1.42 |
% |
|
1.32 |
% |
|
1.21 |
% |
|
1.11 |
% |
|
Cost of total deposits |
1.13 |
% |
|
1.18 |
% |
|
1.10 |
% |
|
1.00 |
% |
|
0.91 |
% |
|
Cost of interest-bearing liabilities |
1.47 |
% |
|
1.54 |
% |
|
1.45 |
% |
|
1.33 |
% |
|
1.15 |
% |
|
Net interest margin, FTE |
3.91 |
% |
|
3.94 |
% |
|
4.10 |
% |
|
4.28 |
% |
|
4.11 |
% |
| |
|
|
|
|
|
|
|
|
|
| Per
Common Share: |
|
|
|
|
|
|
|
|
|
|
Net income, basic |
$ |
0.43 |
|
|
$ |
0.65 |
|
|
$ |
0.34 |
|
|
$ |
0.48 |
|
|
$ |
0.34 |
|
|
Net income, diluted |
0.42 |
|
|
0.65 |
|
|
0.34 |
|
|
0.47 |
|
|
0.34 |
|
|
Net operating earnings, basic (Non-GAAP)¹ |
0.43 |
|
|
0.40 |
|
|
0.40 |
|
|
0.44 |
|
|
0.39 |
|
|
Net operating earnings, diluted (Non-GAAP)¹ |
0.43 |
|
|
0.40 |
|
|
0.39 |
|
|
0.43 |
|
|
0.39 |
|
|
Book value |
21.93 |
|
|
21.47 |
|
|
20.82 |
|
|
20.31 |
|
|
19.74 |
|
|
Tangible book value (Non-GAAP)¹ |
16.37 |
|
|
15.86 |
|
|
15.18 |
|
|
14.64 |
|
|
14.38 |
|
|
Common shares outstanding |
13,957,973 |
|
|
13,953,209 |
|
|
13,951,590 |
|
|
13,933,504 |
|
|
12,750,272 |
|
| |
|
|
|
|
|
|
|
|
|
| ¹See
reconciliation of Non-GAAP measures |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
SmartFinancial, Inc. and Subsidiary |
|
|
|
|
| Condensed
Consolidated Financial Information - (unaudited) |
|
|
|
|
|
|
| (In
thousands) |
|
|
|
|
| |
As of and for The Three Months Ended |
|
|
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
|
Composition of Loans: |
|
|
|
|
|
Commercial real estate |
|
|
|
|
|
|
|
|
|
|
owner occupied |
$ |
422,363 |
|
|
$ |
415,502 |
|
|
$ |
416,152 |
|
|
$ |
372,030 |
|
|
$ |
364,164 |
|
|
non-owner occupied |
468,099 |
|
|
464,160 |
|
|
472,790 |
|
|
487,997 |
|
|
401,922 |
|
|
Commercial real estate, total |
890,462 |
|
|
879,662 |
|
|
888,942 |
|
|
860,027 |
|
|
766,086 |
|
|
Commercial & industrial |
341,207 |
|
|
334,258 |
|
|
341,471 |
|
|
308,254 |
|
|
289,784 |
|
|
Construction & land development |
219,751 |
|
|
204,731 |
|
|
187,009 |
|
|
187,895 |
|
|
165,906 |
|
|
Consumer real estate |
405,531 |
|
|
406,357 |
|
|
410,981 |
|
|
407,254 |
|
|
350,422 |
|
|
Consumer and other |
10,796 |
|
|
11,981 |
|
|
12,166 |
|
|
13,809 |
|
|
12,996 |
|
|
Total loans |
$ |
1,867,747 |
|
|
$ |
1,836,989 |
|
|
$ |
1,840,569 |
|
|
$ |
1,777,239 |
|
|
$ |
1,585,194 |
|
| |
|
|
|
|
|
|
|
|
|
| Asset
Quality and Additional Loan Data: |
|
|
|
|
|
|
|
|
|
|
Nonperforming loans |
$ |
3,166 |
|
|
$ |
2,838 |
|
|
$ |
2,282 |
|
|
$ |
3,280 |
|
|
$ |
2,686 |
|
|
Other real estate owned |
1,561 |
|
|
1,814 |
|
|
2,066 |
|
|
2,495 |
|
|
4,230 |
|
|
Total nonperforming assets |
$ |
4,727 |
|
|
$ |
4,652 |
|
|
$ |
4,348 |
|
|
$ |
5,775 |
|
|
$ |
6,916 |
|
|
Restructured loans not included in nonperforming loans |
$ |
61 |
|
|
$ |
62 |
|
|
$ |
62 |
|
|
$ |
116 |
|
|
$ |
693 |
|
|
Net charge-offs (recoveries) to average loans (annualized) |
0.01 |
% |
|
— |
% |
|
0.08 |
% |
|
0.04 |
% |
|
0.06 |
% |
|
Allowance for loan losses to loans |
0.53 |
% |
|
0.50 |
% |
|
0.47 |
% |
|
0.47 |
% |
|
0.45 |
% |
|
Nonperforming loans to total loans, gross |
0.17 |
% |
|
0.15 |
% |
|
0.12 |
% |
|
0.18 |
% |
|
0.17 |
% |
|
Nonperforming assets to total assets |
0.20 |
% |
|
0.19 |
% |
|
0.18 |
% |
|
0.25 |
% |
|
0.34 |
% |
|
Purchase accounting discount balance |
$ |
16,784 |
|
|
$ |
18,571 |
|
|
$ |
19,954 |
|
|
$ |
21,528 |
|
|
$ |
19,500 |
|
|
Accretion income on acquired loans |
1,246 |
|
|
1,374 |
|
|
1,717 |
|
|
2,343 |
|
|
1,208 |
|
| |
|
|
|
|
|
|
|
|
|
| Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
Equity to Assets |
12.80 |
% |
|
12.53 |
% |
|
12.34 |
% |
|
12.44 |
% |
|
12.27 |
% |
|
Tangible common equity to tangible assets (Non-GAAP)3 |
9.88 |
% |
|
9.57 |
% |
|
9.31 |
% |
|
9.29 |
% |
|
9.25 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
SmartFinancial, Inc.1 |
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage |
10.02 |
% |
|
9.92 |
% |
|
9.29 |
% |
|
9.47 |
% |
|
9.26 |
% |
|
Common equity Tier 1 |
11.54 |
% |
|
11.21 |
% |
|
10.61 |
% |
|
10.81 |
% |
|
10.88 |
% |
|
Tier 1 capital |
11.54 |
% |
|
11.21 |
% |
|
10.61 |
% |
|
10.81 |
% |
|
10.88 |
% |
|
Total capital |
13.98 |
% |
|
13.65 |
% |
|
13.01 |
% |
|
13.29 |
% |
|
13.57 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
SmartBank |
Estimated2 |
|
|
|
|
|
|
|
|
|
Tier 1 leverage |
11.23 |
% |
|
10.92 |
% |
|
10.96 |
% |
|
11.17 |
% |
|
10.55 |
% |
|
Common equity Tier 1 |
12.71 |
% |
|
12.37 |
% |
|
12.18 |
% |
|
12.31 |
% |
|
11.99 |
% |
|
Tier 1 risk-based capital |
12.71 |
% |
|
12.37 |
% |
|
12.18 |
% |
|
12.31 |
% |
|
11.99 |
% |
|
Total risk-based capital |
13.20 |
% |
|
12.82 |
% |
|
12.62 |
% |
|
12.74 |
% |
|
12.40 |
% |
1All periods presented are estimated.2 Current period capital
ratios are estimated as of the date of this earnings release.3Total
common equity less intangibles divided by total assets less
intangibles.
|
SmartFinancial, Inc. and Subsidiary |
|
|
|
|
|
|
|
|
| Condensed
Consolidated Financial Information - (unaudited) |
|
|
|
|
|
|
| (dollars
in thousands) |
|
|
|
|
|
|
|
|
| |
Ending Balances |
| |
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
September 30, |
| |
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
2018 |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
$ |
170,934 |
|
|
$ |
199,534 |
|
|
$ |
132,994 |
|
|
$ |
115,822 |
|
|
$ |
130,104 |
|
|
Securities available-for-sale, at fair value |
171,507 |
|
|
174,114 |
|
|
198,273 |
|
|
201,688 |
|
|
173,039 |
|
|
Other investments |
12,913 |
|
|
12,905 |
|
|
12,398 |
|
|
11,499 |
|
|
10,736 |
|
|
Loans held for sale |
3,068 |
|
|
4,087 |
|
|
2,103 |
|
|
1,979 |
|
|
4,038 |
|
|
Loans |
1,864,679 |
|
|
1,832,902 |
|
|
1,838,466 |
|
|
1,775,260 |
|
|
1,581,155 |
|
|
Less: Allowance for loan losses |
(9,792 |
) |
|
(9,097 |
) |
|
(8,704 |
) |
|
(8,275 |
) |
|
(7,156 |
) |
|
Loans, net |
1,854,887 |
|
|
1,823,805 |
|
|
1,829,762 |
|
|
1,766,985 |
|
|
1,573,999 |
|
|
Premises and equipment, net |
58,386 |
|
|
56,589 |
|
|
56,583 |
|
|
56,012 |
|
|
51,138 |
|
|
Other real estate owned |
1,561 |
|
|
1,814 |
|
|
2,066 |
|
|
2,495 |
|
|
4,230 |
|
|
Goodwill and core deposit intangibles, net |
77,534 |
|
|
78,348 |
|
|
78,690 |
|
|
79,034 |
|
|
68,254 |
|
|
Bank owned life insurance |
24,796 |
|
|
24,695 |
|
|
24,540 |
|
|
24,381 |
|
|
22,088 |
|
|
Other assets |
14,899 |
|
|
15,366 |
|
|
16,572 |
|
|
14,514 |
|
|
13,320 |
|
|
Total assets |
$ |
2,390,485 |
|
|
$ |
2,391,257 |
|
|
$ |
2,353,981 |
|
|
$ |
2,274,409 |
|
|
$ |
2,050,946 |
|
| |
|
|
|
|
|
|
|
|
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
$ |
365,024 |
|
|
$ |
357,220 |
|
|
$ |
329,095 |
|
|
$ |
319,861 |
|
|
$ |
301,197 |
|
|
Interest-bearing demand |
351,474 |
|
|
333,705 |
|
|
331,629 |
|
|
311,482 |
|
|
267,146 |
|
|
Money market and savings |
634,934 |
|
|
648,132 |
|
|
698,431 |
|
|
641,945 |
|
|
570,172 |
|
|
Time deposits |
646,641 |
|
|
673,243 |
|
|
635,175 |
|
|
648,676 |
|
|
568,796 |
|
|
Total deposits |
1,998,073 |
|
|
2,012,300 |
|
|
1,994,330 |
|
|
1,921,964 |
|
|
1,707,311 |
|
|
Securities sold under agreements to repurchase |
4,368 |
|
|
8,219 |
|
|
7,070 |
|
|
11,756 |
|
|
16,786 |
|
|
FHLB & other borrowings |
25,460 |
|
|
15,460 |
|
|
8,605 |
|
|
11,243 |
|
|
25,324 |
|
|
Subordinated debt |
39,240 |
|
|
39,219 |
|
|
39,198 |
|
|
39,177 |
|
|
39,158 |
|
|
Other liabilities |
17,304 |
|
|
16,448 |
|
|
14,297 |
|
|
7,258 |
|
|
10,725 |
|
|
Total liabilities |
2,084,445 |
|
|
2,091,646 |
|
|
2,063,500 |
|
|
1,991,398 |
|
|
1,799,304 |
|
|
Shareholders' Equity: |
|
|
|
|
|
|
|
|
|
|
Common stock |
13,958 |
|
|
13,953 |
|
|
13,952 |
|
|
13,933 |
|
|
12,750 |
|
|
Additional paid-in capital |
232,573 |
|
|
232,386 |
|
|
232,241 |
|
|
231,852 |
|
|
208,999 |
|
|
Retained earnings |
59,806 |
|
|
53,843 |
|
|
44,722 |
|
|
39,991 |
|
|
33,559 |
|
|
Accumulated other comprehensive loss |
(297 |
) |
|
(571 |
) |
|
(434 |
) |
|
(2,765 |
) |
|
(3,666 |
) |
|
Total shareholders' equity |
306,040 |
|
|
299,611 |
|
|
290,481 |
|
|
283,011 |
|
|
251,642 |
|
|
Total liabilities & shareholders' equity |
$ |
2,390,485 |
|
|
$ |
2,391,257 |
|
|
$ |
2,353,981 |
|
|
$ |
2,274,409 |
|
|
$ |
2,050,946 |
|
|
SmartFinancial, Inc. and Subsidiary |
|
|
|
|
| Condensed
Consolidated Financial Information - (unaudited) |
|
|
|
|
|
|
| (dollars
in thousands, except per share data) |
|
|
|
|
| |
Three Months Ended |
| |
|
September 30, |
|
|
June 30, |
|
|
March 31, |
|
|
December 31, |
|
|
September 30, |
| |
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
2018 |
| |
|
| Interest
income: |
|
|
Loans, including fees |
$ |
25,515 |
|
|
$ |
25,278 |
|
|
$ |
24,975 |
|
|
$ |
25,018 |
|
|
$ |
21,571 |
|
|
Securities available-for-sale: |
|
|
|
|
|
|
|
|
|
|
Taxable |
748 |
|
|
871 |
|
|
971 |
|
|
900 |
|
|
839 |
|
|
Tax-exempt |
338 |
|
|
411 |
|
|
424 |
|
|
347 |
|
|
129 |
|
|
Federal funds sold and other earning assets |
743 |
|
|
743 |
|
|
573 |
|
|
506 |
|
|
529 |
|
|
Total interest income |
27,344 |
|
|
27,303 |
|
|
26,943 |
|
|
26,771 |
|
|
23,068 |
|
| |
|
|
|
|
|
|
|
|
|
| Interest
expense: |
|
|
|
|
|
|
|
|
|
|
Deposits |
5,605 |
|
|
5,788 |
|
|
5,251 |
|
|
4,680 |
|
|
3,969 |
|
|
Securities sold under agreements to repurchase |
5 |
|
|
6 |
|
|
8 |
|
|
9 |
|
|
11 |
|
|
FHLB advances and other borrowings |
10 |
|
|
117 |
|
|
103 |
|
|
51 |
|
|
209 |
|
|
Subordinated debt |
584 |
|
|
590 |
|
|
584 |
|
|
584 |
|
|
19 |
|
|
Total interest expense |
6,204 |
|
|
6,501 |
|
|
5,946 |
|
|
5,324 |
|
|
4,208 |
|
| Net interest
income |
21,140 |
|
|
20,802 |
|
|
20,997 |
|
|
21,447 |
|
|
18,860 |
|
| Provision
for loan losses |
724 |
|
|
393 |
|
|
797 |
|
|
1,329 |
|
|
302 |
|
| Net
interest income after provision for loan losses |
20,416 |
|
|
20,409 |
|
|
20,200 |
|
|
20,118 |
|
|
18,558 |
|
| |
|
|
|
|
|
|
|
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
767 |
|
|
707 |
|
|
654 |
|
|
663 |
|
|
624 |
|
|
Gain on sale of securities, net |
1 |
|
|
33 |
|
|
— |
|
|
2 |
|
|
— |
|
|
Mortgage banking |
518 |
|
|
392 |
|
|
282 |
|
|
251 |
|
|
493 |
|
|
Interchange and debit card transaction fees |
148 |
|
|
143 |
|
|
175 |
|
|
162 |
|
|
144 |
|
|
Merger termination fee |
— |
|
|
6,400 |
|
|
— |
|
|
— |
|
|
— |
|
|
Other |
762 |
|
|
741 |
|
|
587 |
|
|
602 |
|
|
570 |
|
|
Total noninterest income |
2,196 |
|
|
8,416 |
|
|
1,698 |
|
|
1,680 |
|
|
1,831 |
|
| |
|
|
|
|
|
|
|
|
|
|
Noninterest expense: |
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
9,072 |
|
|
8,984 |
|
|
8,398 |
|
|
7,871 |
|
|
7,934 |
|
|
Occupancy and equipment |
1,635 |
|
|
1,658 |
|
|
1,640 |
|
|
1,610 |
|
|
1,638 |
|
|
FDIC insurance (credit) |
(219 |
) |
|
180 |
|
|
179 |
|
|
209 |
|
|
158 |
|
|
Other real estate and loan related expense |
335 |
|
|
242 |
|
|
490 |
|
|
738 |
|
|
578 |
|
|
Advertising and marketing |
263 |
|
|
259 |
|
|
295 |
|
|
246 |
|
|
228 |
|
|
Data processing |
273 |
|
|
577 |
|
|
615 |
|
|
372 |
|
|
407 |
|
|
Professional services |
573 |
|
|
489 |
|
|
662 |
|
|
707 |
|
|
727 |
|
|
Amortization of intangibles |
341 |
|
|
342 |
|
|
344 |
|
|
312 |
|
|
248 |
|
|
Software as service contracts |
560 |
|
|
568 |
|
|
567 |
|
|
577 |
|
|
507 |
|
|
Merger related and restructuring expenses |
73 |
|
|
1,796 |
|
|
923 |
|
|
1,322 |
|
|
838 |
|
|
Other |
1,802 |
|
|
1,714 |
|
|
1,466 |
|
|
1,697 |
|
|
1,497 |
|
|
Total noninterest expense |
14,708 |
|
|
16,809 |
|
|
15,579 |
|
|
15,661 |
|
|
14,760 |
|
| Income
before income taxes |
7,904 |
|
|
12,016 |
|
|
6,319 |
|
|
6,137 |
|
|
5,629 |
|
| Income tax
expense |
1,941 |
|
|
2,895 |
|
|
1,588 |
|
|
(307 |
) |
|
1,305 |
|
| Net
income |
$ |
5,963 |
|
|
$ |
9,121 |
|
|
$ |
4,731 |
|
|
$ |
6,444 |
|
|
$ |
4,324 |
|
| |
|
|
|
|
|
|
|
|
|
| Earnings
Per Common Share: |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.43 |
|
|
$ |
0.65 |
|
|
$ |
0.34 |
|
|
$ |
0.48 |
|
|
$ |
0.34 |
|
|
Diluted |
$ |
0.42 |
|
|
$ |
0.65 |
|
|
$ |
0.34 |
|
|
$ |
0.47 |
|
|
$ |
0.34 |
|
| Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
Basic |
13,955,859 |
|
|
13,951,643 |
|
|
13,942,016 |
|
|
13,534,806 |
|
|
12,718,861 |
|
|
Diluted |
14,053,432 |
|
|
14,046,500 |
|
|
14,018,163 |
|
|
13,616,616 |
|
|
12,817,556 |
|
|
SmartFinancial, Inc. and Subsidiary |
| Condensed
Consolidated Financial Information -
(unaudited) |
| (In
thousands) |
| YIELD
ANALYSIS |
| |
|
Three Months Ended |
| |
|
September 30,
2019 |
|
June 30,
2019 |
|
September 30,
2018 |
| |
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
|
Average |
|
|
|
Yield/ |
| |
|
Balance |
|
Interest1 |
|
Cost1 |
|
Balance |
|
Interest1 |
|
Cost1 |
|
Balance |
|
Interest1 |
|
Cost1 |
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans |
|
$ |
1,846,196 |
|
|
$ |
25,515 |
|
|
5.48 |
% |
|
$ |
1,832,639 |
|
|
$ |
25,278 |
|
|
5.53 |
% |
|
$ |
1,577,222 |
|
|
$ |
21,573 |
|
|
5.43 |
% |
| Taxable securities |
|
118,955 |
|
|
748 |
|
|
2.49 |
% |
|
136,859 |
|
|
871 |
|
|
2.55 |
% |
|
141,750 |
|
|
839 |
|
|
2.35 |
% |
| Tax-exempt securities |
|
56,598 |
|
|
448 |
|
|
3.14 |
% |
|
56,475 |
|
|
527 |
|
|
3.75 |
% |
|
17,329 |
|
|
166 |
|
|
3.80 |
% |
| Federal funds sold and other
earning assets |
|
135,444 |
|
|
743 |
|
|
2.18 |
% |
|
102,253 |
|
|
743 |
|
|
2.91 |
% |
|
85,995 |
|
|
526 |
|
|
2.43 |
% |
|
Total interest-earning assets |
|
2,157,193 |
|
|
27,454 |
|
|
5.05 |
% |
|
2,128,226 |
|
|
27,419 |
|
|
5.17 |
% |
|
1,822,296 |
|
|
23,104 |
|
|
5.03 |
% |
| Noninterest-earning
assets |
|
191,940 |
|
|
|
|
|
|
215,010 |
|
|
|
|
|
|
198,215 |
|
|
|
|
|
|
Total assets |
|
$ |
2,349,133 |
|
|
|
|
|
|
$ |
2,343,236 |
|
|
|
|
|
|
$ |
2,020,511 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Interest-bearing demand
deposits |
|
$ |
343,827 |
|
|
511 |
|
|
0.59 |
% |
|
$ |
329,556 |
|
|
464 |
|
|
0.57 |
% |
|
$ |
239,220 |
|
|
283 |
|
|
0.47 |
% |
| Money market and savings
deposits |
|
637,290 |
|
|
1,829 |
|
|
1.14 |
% |
|
673,502 |
|
|
2,272 |
|
|
1.35 |
% |
|
615,334 |
|
|
1,595 |
|
|
1.03 |
% |
| Time deposits |
|
640,679 |
|
|
3,265 |
|
|
2.02 |
% |
|
629,480 |
|
|
3,052 |
|
|
1.94 |
% |
|
564,945 |
|
|
2,091 |
|
|
1.47 |
% |
|
Total interest-bearing deposits |
|
1,621,796 |
|
|
5,605 |
|
|
1.37 |
% |
|
1,632,538 |
|
|
5,788 |
|
|
1.42 |
% |
|
1,419,499 |
|
|
3,969 |
|
|
1.11 |
% |
| Securities sold under
agreement to repurchase |
|
6,490 |
|
|
5 |
|
|
0.31 |
% |
|
7,249 |
|
|
6 |
|
|
0.33 |
% |
|
17,694 |
|
|
11 |
|
|
0.25 |
% |
| Federal funds purchased and
other borrowings |
|
6,820 |
|
|
10 |
|
|
0.58 |
% |
|
16,436 |
|
|
117 |
|
|
2.87 |
% |
|
16,415 |
|
|
209 |
|
|
5.05 |
% |
| Subordinated debt |
|
39,226 |
|
|
584 |
|
|
5.91 |
% |
|
39,205 |
|
|
590 |
|
|
6.03 |
% |
|
1,304 |
|
|
19 |
|
|
5.78 |
% |
|
Total interest-bearing liabilities |
|
1,674,332 |
|
|
6,204 |
|
|
1.47 |
% |
|
1,695,428 |
|
|
6,501 |
|
|
1.54 |
% |
|
1,454,912 |
|
|
4,208 |
|
|
1.15 |
% |
| Noninterest-bearing
deposits |
|
353,315 |
|
|
|
|
|
|
336,871 |
|
|
|
|
|
|
307,007 |
|
|
|
|
|
| Other liabilities |
|
18,286 |
|
|
|
|
|
|
14,367 |
|
|
|
|
|
|
8,529 |
|
|
|
|
|
|
Total liabilities |
|
2,045,933 |
|
|
|
|
|
|
2,046,666 |
|
|
|
|
|
|
1,770,448 |
|
|
|
|
|
| Stockholders’ equity |
|
303,200 |
|
|
|
|
|
|
296,570 |
|
|
|
|
|
|
250,063 |
|
|
|
|
|
|
Total liabilities and stockholders’ equity |
|
$ |
2,349,133 |
|
|
|
|
|
|
$ |
2,343,236 |
|
|
|
|
|
|
$ |
2,020,511 |
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Net interest income, taxable
equivalent |
|
|
|
$ |
21,250 |
|
|
|
|
|
|
$ |
20,918 |
|
|
|
|
|
|
$ |
18,896 |
|
|
|
| Interest rate spread |
|
|
|
|
|
3.58 |
% |
|
|
|
|
|
3.63 |
% |
|
|
|
|
|
3.88 |
% |
| Tax equivalent net interest
margin |
|
|
|
|
|
3.91 |
% |
|
|
|
|
|
3.94 |
% |
|
|
|
|
|
4.11 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Percentage of average
interest-earning assets to average interest-bearing
liabilities |
|
|
|
|
|
128.84 |
% |
|
|
|
|
|
125.53 |
% |
|
|
|
|
|
125.25 |
% |
| Percentage of average
equity to average assets |
|
|
|
|
|
12.91 |
% |
|
|
|
|
|
12.66 |
% |
|
|
|
|
|
12.38 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Taxable equivalent
|
SmartFinancial, Inc. and Subsidiary |
|
|
|
|
| Condensed
Consolidated Financial Information - (unaudited) |
|
|
|
|
|
|
| (In
thousands) |
|
|
|
|
| NON-GAAP
RECONCILIATIONS |
|
| |
Three Months Ended |
| |
|
September 30, |
|
|
June 30, |
|
|
March 31 |
|
|
December 31, |
|
|
September 30, |
| |
|
2019 |
|
|
2019 |
|
|
2019 |
|
|
2018 |
|
|
2018 |
| |
|
| Operating
Earnings: |
|
|
Net income (GAAP) |
$ |
5,963 |
|
|
$ |
9,121 |
|
|
$ |
4,731 |
|
|
$ |
6,444 |
|
|
$ |
4,324 |
|
|
Securities (gains) losses |
(1 |
) |
|
(33 |
) |
|
— |
|
|
(2 |
) |
|
— |
|
|
Merger termination fee |
— |
|
|
(6,400 |
) |
|
— |
|
|
— |
|
|
— |
|
|
Merger related and restructuring expenses |
73 |
|
|
1,796 |
|
|
923 |
|
|
1,322 |
|
|
838 |
|
|
Tax benefit from director options previously exercised |
— |
|
|
— |
|
|
— |
|
|
(1,600 |
) |
|
— |
|
|
Income tax effect of adjustments |
(19 |
) |
|
1,119 |
|
|
(145 |
) |
|
(257 |
) |
|
(196 |
) |
|
Net operating earnings (Non-GAAP) |
$ |
6,016 |
|
|
$ |
5,603 |
|
|
$ |
5,509 |
|
|
$ |
5,907 |
|
|
$ |
4,966 |
|
|
Net operating earnings per common share
(Non-GAAP): |
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.43 |
|
|
$ |
0.40 |
|
|
$ |
0.40 |
|
|
$ |
0.44 |
|
|
$ |
0.39 |
|
|
Diluted |
0.43 |
|
|
0.40 |
|
|
0.39 |
|
|
0.43 |
|
|
0.39 |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
Noninterest Income: |
|
|
|
|
|
|
|
|
|
|
Noninterest income (GAAP) |
$ |
2,196 |
|
|
$ |
8,416 |
|
|
$ |
1,698 |
|
|
$ |
1,680 |
|
|
$ |
1,831 |
|
|
Merger termination fee |
— |
|
|
(6,400 |
) |
|
— |
|
|
— |
|
|
— |
|
|
Operating noninterest income (Non-GAAP) |
$ |
2,196 |
|
|
$ |
2,016 |
|
|
$ |
1,698 |
|
|
$ |
1,680 |
|
|
$ |
1,831 |
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
Noninterest Expense: |
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
$ |
14,708 |
|
|
$ |
16,809 |
|
|
$ |
15,579 |
|
|
$ |
15,661 |
|
|
$ |
14,760 |
|
|
Merger related and restructuring expenses |
(73 |
) |
|
(1,796 |
) |
|
(923 |
) |
|
(1,322 |
) |
|
(838 |
) |
|
Operating noninterest expense (Non-GAAP) |
$ |
14,635 |
|
|
$ |
15,013 |
|
|
$ |
14,656 |
|
|
$ |
14,339 |
|
|
$ |
13,922 |
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP
Return Ratios: |
|
|
|
|
|
|
|
|
|
|
Net operating return on average assets (Non-GAAP)1 |
1.02 |
% |
|
0.96 |
% |
|
0.98 |
% |
|
1.07 |
% |
|
0.98 |
% |
|
Return on average tangible common equity (Non-GAAP)2 |
10.52 |
% |
|
16.78 |
% |
|
9.26 |
% |
|
13.09 |
% |
|
9.45 |
% |
|
Net operating return on average shareholder equity (Non-GAAP)3 |
7.87 |
% |
|
7.58 |
% |
|
7.81 |
% |
|
8.65 |
% |
|
7.88 |
% |
|
Net operating return on average tangible common equity
(Non-GAAP)4 |
10.61 |
% |
|
10.31 |
% |
|
10.79 |
% |
|
12.00 |
% |
|
10.84 |
% |
| |
|
|
|
|
|
|
|
|
|
| Operating
Efficiency Ratio: |
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
63.03 |
% |
|
57.53 |
% |
|
68.65 |
% |
|
67.71 |
% |
|
71.33 |
% |
|
Adjustment for taxable equivalent yields |
(0.37 |
)% |
|
(0.50 |
)% |
|
(0.49 |
)% |
|
(0.45 |
)% |
|
(0.18 |
)% |
|
Adjustment for securities gains (losses) |
— |
% |
|
0.14 |
% |
|
— |
% |
|
0.01 |
% |
|
— |
% |
|
Adjustment for merger related income and costs |
(0.24 |
)% |
|
8.39 |
% |
|
(3.91 |
)% |
|
(5.55 |
)% |
|
(3.98 |
)% |
|
Operating efficiency ratio (Non-GAAP) |
62.42 |
% |
|
65.56 |
% |
|
64.25 |
% |
|
61.72 |
% |
|
67.17 |
% |
| |
|
|
|
|
|
|
|
|
|
| 1 Net operating
return on average assets (Non-GAAP) is the annualized net operating
earnings (Non-GAAP) divided by average assets. |
| 2 Return on
average tangible common equity (Non-GAAP) is the annualized net
income divided by average tangible common equity (Non-GAAP). |
| 3 Net operating
return on average equity (Non-GAAP) is the annualized net operating
earnings (Non-GAAP) divided by average equity. |
| 4 Net operating
return on average tangible common equity (Non-GAAP) is the
annualized net operating earnings (Non-GAAP) divided by average
tangible common equity (Non-GAAP). |
| |
|
SmartFinancial, Inc. and Subsidiary |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Condensed Consolidated
Financial Information - (unaudited) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| (In
thousands) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| NON-GAAP
RECONCILIATIONS |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
Three Months Ended |
| |
September 30, |
|
June 30, |
|
March 31, |
|
December 31, |
|
September 30, |
| |
2019 |
|
2019 |
|
2019 |
|
2018 |
|
2018 |
| Tangible Common
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity (GAAP) |
$ |
306,040 |
|
|
$ |
299,611 |
|
|
$ |
290,481 |
|
|
$ |
283,011 |
|
|
$ |
251,642 |
|
|
Less goodwill and other intangible assets |
77,534 |
|
|
78,348 |
|
|
78,690 |
|
|
79,034 |
|
|
68,254 |
|
|
Tangible common equity (Non-GAAP) |
$ |
228,506 |
|
|
$ |
221,263 |
|
|
$ |
211,791 |
|
|
$ |
203,977 |
|
|
$ |
183,388 |
|
|
|
|
|
|
|
|
|
|
|
|
| Average Tangible
Common Equity: |
|
|
|
|
|
|
|
|
|
|
Average shareholders' equity (GAAP) |
$ |
303,200 |
|
|
$ |
296,570 |
|
|
$ |
286,076 |
|
|
$ |
270,884 |
|
|
$ |
250,063 |
|
|
Less average goodwill and other intangible assets |
78,222 |
|
|
78,564 |
|
|
78,913 |
|
|
75,547 |
|
|
68,389 |
|
|
Average tangible common equity (Non-GAAP) |
$ |
224,978 |
|
|
$ |
218,006 |
|
|
$ |
207,163 |
|
|
$ |
195,337 |
|
|
$ |
181,674 |
|
SmartFinancial (NASDAQ:SMBK)
Historical Stock Chart
From Mar 2024 to Apr 2024
SmartFinancial (NASDAQ:SMBK)
Historical Stock Chart
From Apr 2023 to Apr 2024
