SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NYSE:
SMBK), today announced net income of $6.2 million, or $0.37 per
diluted common share, for the fourth quarter of 2023, compared to
net income of $13.0 million, or $0.77 per diluted common share, for
the fourth quarter of 2022, and compared to prior quarter net
income of $2.1 million, or $0.12 per diluted common share.
Operating earnings1, which excludes non-recurring expenses related
to a Community Reinvestment Act donation of a former branch
location and accruals in respect of pending litigation, net of tax
adjustments, totaled $6.9 million, or $0.41 per diluted common
share, in the fourth quarter of 2023, compared to $12.9 million, or
$0.76 per diluted common share, in the fourth quarter of 2022, and
compared to $7.2 million, or $0.43 per diluted common share, in the
third quarter of 2023.
Highlights for the Fourth Quarter of 2023
- Operating earnings1 of $6.9 million, or $0.41 per diluted
common share
- Net organic loan and lease growth of $66 million - 8%
annualized quarter-over-quarter increase
- Credit quality remains solid with nonperforming assets to total
assets of 0.20%
- Deposit growth of $21.3 million – 2.0% annualized
quarter-over-quarter increase
- SmartFinancial celebrates successful debut on the New York
Stock Exchange
- Chief Banking Officer position added in fourth quarter
2023
- SmartBank President and CEO elected to Federal Reserve Bank of
Atlanta’s Board of Directors
Billy Carroll, President & CEO, stated: “Our
Company closed 2023 with positive momentum despite persistent
operating environment challenges. The fourth quarter was
highlighted by continued growth in our balance sheet with loans
growing at 8% and deposits growing at 2%, annualized, respectively
quarter over quarter. Our operating earnings were bolstered
by stabilization of our net interest margin, as well as continued
expense control. Despite the headwinds our industry faced
during the year, our team responded incredibly well, positioning
SmartBank to continue its upward trajectory.”
SmartFinancial's Chairman, Miller Welborn,
concluded: “We are extremely proud of the entire SmartBank family
for its efforts this year. Once again, this year showed that our
team’s steadfast commitment to clients, even in the face of
adversity, continues to be a winning formula. And while our growth
in 2023 was good, I am especially pleased with the various
operational enhancements we implemented throughout the year. Our
associates work tirelessly to make SmartBank better and it’s
through these initiatives that we improved our organization and
ready us for 2024 and beyond. Thank you!”
Net Interest Income and Net Interest
Margin
Net interest income was $31.5 million for the
fourth quarter of 2023, compared to $31.0 million for the prior
quarter. Average earning assets totaled $4.38 billion, a decrease
of $17.3 million from the prior quarter. The decrease in average
earnings assets was primarily driven by a decrease in average
securities of $125.5 million, offset by an increase in average
loans and leases of $47.8 million and average interest-earning cash
of $60.4 million. Average interest-bearing liabilities
increased by $19.7 million from the prior quarter, attributable to
an increase in average deposits of $22.5 million, offset by a
decrease in average borrowings of $2.8 million.
The tax equivalent net interest margin was 2.86%
for the fourth quarter of 2023, compared to 2.81% for the prior
quarter. The tax equivalent net interest margin was positively
impacted by the increased yield on interest-earning assets coupled
with a slower rise in the cost of interest-bearing liabilities,
quarter over quarter. The yield on loans and leases, excluding loan
fees, was 5.61% for the fourth quarter, compared to 5.52% for the
prior quarter.
The cost of total deposits for the fourth
quarter of 2023 was 2.35% compared to 2.20% in the prior quarter.
The cost of interest-bearing liabilities increased to 3.07% for the
fourth quarter of 2023, compared to 2.89% for the prior quarter.
The cost of average interest-bearing deposits was 3.00% for the
fourth quarter of 2023, compared to 2.84% for the prior quarter, an
increase of 16 basis points.
The following table presents selected interest
rates and yields for the periods indicated:
| |
|
Three Months Ended |
|
|
|
|
|
|
Dec |
|
Sep |
|
Increase |
|
|
Selected Interest Rates and Yields |
|
2023 |
|
2023 |
|
(Decrease) |
|
| Yield on loans and leases,
excluding loan fees |
|
5.61 |
% |
5.52 |
% |
0.09 |
% |
| Yield on loans and leases |
|
5.68 |
% |
5.61 |
% |
0.07 |
% |
| Yield on earning assets, on a
fully tax equivalent basis (FTE) |
|
5.22 |
% |
4.99 |
% |
0.23 |
% |
| Cost of interest-bearing
deposits |
|
3.00 |
% |
2.84 |
% |
0.16 |
% |
| Cost of total deposits |
|
2.35 |
% |
2.20 |
% |
0.15 |
% |
| Cost of interest-bearing
liabilities |
|
3.07 |
% |
2.89 |
% |
0.18 |
% |
| Net interest margin, FTE |
|
2.86 |
% |
2.81 |
% |
0.05 |
% |
Provision for Credit Losses on Loans and
Leases and Credit Quality
At December 31, 2023, the allowance for credit
losses was $35.1 million. The allowance for credit losses to total
loans and leases was 1.02% as of December 31, 2023, compared to
1.00% as of September 30, 2023.
The following table presents detailed
information related to the provision for credit losses for the
periods indicated (dollars in thousands):
| |
|
|
Three Months Ended |
|
|
|
|
| |
|
|
|
Dec |
|
|
Sep |
|
|
|
|
| |
Provision for Credit Losses on Loans and Leases Rollforward |
|
|
2023 |
|
|
|
2023 |
|
|
|
Change |
|
|
|
Beginning balance |
|
$ |
33,687 |
|
|
$ |
32,747 |
|
|
$ |
940 |
|
|
| |
Charge-offs |
|
|
(424 |
) |
|
|
(417 |
) |
|
|
(7 |
) |
|
| |
Recoveries |
|
|
302 |
|
|
|
73 |
|
|
|
229 |
|
|
| |
Net (charge-offs) recoveries |
|
|
(122 |
) |
|
|
(344 |
) |
|
|
222 |
|
|
| |
Provision for credit losses(1) |
|
|
1,501 |
|
|
|
1,284 |
|
|
|
217 |
|
|
| |
Ending balance |
|
$ |
35,066 |
|
|
$ |
33,687 |
|
|
$ |
1,379 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Allowance for credit losses to
total loans and leases, gross |
|
|
1.02 |
|
% |
|
1.00 |
|
% |
|
0.02 |
|
% |
(1) The current quarter-ended and prior
quarter-ended, excludes unfunded commitments provision of $69
thousand and a release of $489 thousand, respectively. At December
31, 2023, the unfunded commitment liability totaled $2.4
million.
Nonperforming loans and leases as a percentage
of total loans and leases was 0.24% as of December 31, 2023, an
increase of 12 basis points from the 0.12% reported in the third
quarter of 2023. 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 0.20% as of
December 31, 2023, and 0.12% on September 30, 2023.
The following table presents detailed
information related to credit quality for the periods indicated
(dollars in thousands):
| |
|
|
Three Months Ended |
|
|
|
|
| |
|
|
|
Dec |
|
|
Sep |
|
|
Increase |
|
| |
Credit
Quality |
|
|
2023 |
|
|
2023 |
|
|
(Decrease) |
|
|
|
Nonaccrual loans and leases |
|
$ |
7,931 |
|
$ |
3,934 |
|
$ |
3,997 |
|
|
| |
Loans and leases past due 90
days or more and still accruing |
|
|
170 |
|
|
229 |
|
|
(59 |
) |
|
| |
Total nonperforming loans and leases |
|
|
8,101 |
|
|
4,163 |
|
|
3,938 |
|
|
| |
Other real estate owned |
|
|
517 |
|
|
1,370 |
|
|
(853 |
) |
|
| |
Other repossessed assets |
|
|
1,117 |
|
|
348 |
|
|
769 |
|
|
| |
Total nonperforming assets |
|
$ |
9,735 |
|
$ |
5,881 |
|
$ |
3,854 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
| |
Nonperforming loans and leases
to total loans and leases, gross |
|
|
0.24 |
% |
|
0.12 |
% |
|
0.12 |
|
% |
| |
Nonperforming assets to total
assets |
|
|
0.20 |
% |
|
0.12 |
% |
|
0.08 |
|
% |
Noninterest Income
Noninterest income increased $6.9 million to
$7.6 million for the fourth quarter of 2023 compared to $691
thousand for the prior quarter. The current quarter increase was
associated with the $6.8 million pre-tax loss on the sale of $159.6
million of available for sale securities, moving into higher
yielding assets during the prior quarter. Excluding the loss on
securities, noninterest income increased $87 thousand quarter over
quarter.
The following table presents detailed
information related to noninterest income for the periods indicated
(dollars in thousands):
| |
|
Three Months Ended |
|
|
|
| |
|
|
Dec |
|
|
Sep |
|
|
Increase |
|
Noninterest Income |
|
|
2023 |
|
|
2023 |
|
|
|
(Decrease) |
|
Service charges on deposit accounts |
|
$ |
1,673 |
|
$ |
1,736 |
|
|
$ |
(63 |
) |
| Gain (loss) on sale of
securities, net |
|
|
- |
|
|
(6,801 |
) |
|
|
6,801 |
|
| Mortgage banking income |
|
|
227 |
|
|
309 |
|
|
|
(82 |
) |
| Investment services |
|
|
1,339 |
|
|
1,461 |
|
|
|
(122 |
) |
| Insurance commissions |
|
|
1,133 |
|
|
1,153 |
|
|
|
(20 |
) |
| Interchange and debit card
transaction fees |
|
|
1,370 |
|
|
1,357 |
|
|
|
13 |
|
| Other |
|
|
1,837 |
|
|
1,476 |
|
|
|
361 |
|
|
Total noninterest income |
|
$ |
7,579 |
|
$ |
691 |
|
|
$ |
6,888 |
|
Noninterest Expense
Noninterest expense increased $1.2 million to
$29.7 million for the fourth quarter of 2023 compared to $28.5
million for the prior quarter. The current quarter increase was
primarily related to an increase in other noninterest expenses
associated with a Community Reinvestment Act donation of a former
branch location and accruals in respect of pending litigation.
The following table presents detailed
information related to noninterest expense for the periods
indicated (dollars in thousands):
| |
|
Three Months Ended |
|
|
|
| |
|
|
Dec |
|
|
Sep |
|
|
Increase |
|
Noninterest Expense |
|
|
2023 |
|
|
2023 |
|
|
(Decrease) |
|
Salaries and employee benefits |
|
$ |
16,275 |
|
$ |
16,785 |
|
$ |
(510 |
) |
| Occupancy and equipment |
|
|
3,378 |
|
|
3,547 |
|
|
(169 |
) |
| FDIC insurance |
|
|
915 |
|
|
825 |
|
|
90 |
|
| Other real estate and loan
related expenses |
|
|
781 |
|
|
603 |
|
|
178 |
|
| Advertising and marketing |
|
|
336 |
|
|
346 |
|
|
(10 |
) |
| Data processing and
technology |
|
|
2,458 |
|
|
2,378 |
|
|
80 |
|
| Professional services |
|
|
1,136 |
|
|
735 |
|
|
401 |
|
| Amortization of
intangibles |
|
|
643 |
|
|
647 |
|
|
(4 |
) |
| Merger related and
restructuring expenses |
|
|
- |
|
|
110 |
|
|
(110 |
) |
| Other |
|
|
3,773 |
|
|
2,540 |
|
|
1,233 |
|
|
Total noninterest expense |
|
$ |
29,695 |
|
$ |
28,516 |
|
$ |
1,179 |
|
Income Tax Expense
Income tax expense was $1.6 million for the
fourth quarter of 2023, an increase of $1.3 million, compared to
$319 thousand for the prior quarter.
The effective tax rate was 20.95% for the fourth
quarter of 2023 and 13.37% for the prior quarter. The primary
reason for the 7.58% increase in the effective tax rate was due to
lower earnings in the prior quarter, largely from the $6.8 million
pre-tax loss on sale of available-for-sale securities.
Balance Sheet Trends
Total assets at December 31, 2023 were $4.83
billion compared to $4.64 billion at December 31, 2022. The $191.9
million increase is primarily attributable to increases in loans
and leases of $190.8 million, cash and cash equivalents of $85.8
million and other assets of $7.5 million. Asset increases were
offset by a decrease in securities of $80.2 million and an increase
in the allowance for credit losses of $11.7 million, primarily for
the one-time adjustment of $8.7 million related to the adoption of
ASU 2016-13, Financial Instruments-Credit Losses (Topic 326):
Measurement of Credit losses on Financial Instruments (“ASU
2016-13”) on January 1, 2023.
Total liabilities increased to $4.37 billion at
December 31, 2023 from $4.21 billion at December 31, 2022. The
increase of $164.5 million was primarily from organic deposit
growth of $190.8 million, offset by a decrease in borrowings of
$28.8 million.
Shareholders' equity at December 31, 2023,
totaled $459.9 million, an increase of $27.4 million, from December
31, 2022. The increase in shareholders' equity was primarily driven
by net income of $28.6 million for the twelve months ended December
31, 2023, and the positive change of $9.4 million in accumulated
other comprehensive income, offset by the impact of the adoption of
ASU 2016-13 on January 1, 2023, of $6.6 million (net of taxes), and
dividends paid of $5.4 million. Tangible book value per share1 was
$20.76 at December 31, 2023, compared to $19.09 at December 31,
2022. Tangible common equity1 as a percentage of tangible assets1
was 7.47% at December 31, 2023, compared with 7.13% at December 31,
2022.
1 Non-GAAP measure. See “Non-GAAP Financial
Measures” for more information and see the Non-GAAP
reconciliation
The following table presents selected balance
sheet information for the periods indicated (dollars in
thousands):
| |
|
Dec |
|
Dec |
|
Increase |
|
Selected Balance Sheet Information |
|
2023 |
|
2022 |
|
(Decrease) |
|
Total assets |
|
$ |
4,829,387 |
|
$ |
4,637,498 |
|
$ |
191,889 |
|
| Total liabilities |
|
|
4,369,501 |
|
|
4,205,046 |
|
|
164,455 |
|
| Total equity |
|
|
459,886 |
|
|
432,452 |
|
|
27,434 |
|
| Securities |
|
|
689,646 |
|
|
769,842 |
|
|
(80,196 |
) |
| Loans and leases |
|
|
3,444,462 |
|
|
3,253,627 |
|
|
190,835 |
|
| Deposits |
|
|
4,267,854 |
|
|
4,077,100 |
|
|
190,754 |
|
| Borrowings |
|
|
13,078 |
|
|
41,860 |
|
|
(28,782 |
) |
Board of Directors Declares
Dividend
On January 18, 2024, the board of directors of
SmartFinancial declared a quarterly cash dividend of $0.08 per
share of SmartFinancial common stock payable on February 20, 2024,
to shareholders of record as of the close of business on February
2, 2024.
Conference Call Information
SmartFinancial issued this earnings release for
the fourth quarter of 2023 on Monday, January 22, 2024, and will
host a conference call on Tuesday, January 23, 2024, at 10:00 a.m.
ET. To access this interactive teleconference, dial (833) 470-1428
or (404) 975-4839 and entering the access code,
197280. A replay of the conference call will be
available through March 14, 2024, by dialing (866) 813-9403 or
(929) 458-6194 and entering the access code,
371589. 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.
About SmartFinancial, Inc.
SmartFinancial, Inc., based in Knoxville,
Tennessee, is the bank holding company for SmartBank. SmartBank is
a full-service commercial bank founded in 2007, with branches
across Tennessee, Alabama, and Florida. Recruiting the best people,
delivering exceptional client service, strategic branching, and a
disciplined approach to lending have contributed to SmartBank’s
success. More information about SmartFinancial can be found on its
website: www.smartfinancialinc.com.
| |
|
| Source |
|
| SmartFinancial, Inc. |
|
| |
|
| Investor
Contacts |
|
| Billy Carroll |
|
| President & CEO |
|
| (865)
868-0613 billy.carroll@smartbank.com |
|
| |
|
| Ron Gorczynski |
|
| Executive Vice President, Chief
Financial Officer |
|
| (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 earnings release
include measures not recognized under U.S. generally accepted
accounting principles (“GAAP”) and therefore are considered
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)
operating earnings, (ii) operating return on average assets, (iii)
operating pre-provision net revenue return on average assets, (iv)
operating return on average shareholders' equity, (v) return on
average tangible common equity, (vi) operating return on average
tangible common equity, (vii) operating efficiency ratio, (viii)
operating noninterest income, (ix) operating pre-provision net
revenue earnings, (x) operating noninterest expense, (xi) tangible
common equity, (xii) average tangible common equity, (xiii)
tangible book value per common share, (xiv) tangible assets; and
ratios derived therefrom, in its analysis of the company's
performance. Operating earnings excludes the following from net
income: securities gains and losses and merger related and
restructuring expenses. Operating return on average assets is the
annualized operating earnings (Non-GAAP) divided by average assets.
Operating pre-provision net revenue return on average assets is the
annualized operating pre-provision net revenue income earnings
(Non-GAAP) by average assets. Operating return on average
shareholders' equity is the annualized operating earnings
(Non-GAAP) divided by average equity. Return on average tangible
common equity is the annualized net income divided by average
tangible common equity (Non-GAAP). Operating return on average
tangible common equity is the annualized operating earnings
(Non-GAAP) 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. Operating noninterest income excludes the following from
noninterest income: securities gains and losses. Operating
pre-provision net revenue earnings is net interest income plus
operating noninterest income (Non-GAAP) less operating noninterest
expense (Non-GAAP). Operating noninterest expense excludes the
following from noninterest expense: prior year adjustments to
salaries, merger related and restructuring expenses and certain
franchise tax true-up expenses. Tangible common equity (Non-GAAP)
and average tangible common equity (Non-GAAP) excludes goodwill and
other intangible assets from shareholders' equity and average
shareholders' equity, respectively. Tangible book value per common
share (Non-GAAP) is tangible common equity (Non-GAAP) divided by
common shares outstanding. Tangible assets (Non-GAAP) excludes
goodwill and other intangibles from total assets. 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 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) the risk that cost savings and revenue synergies from recently
completed acquisitions may not be realized or may take longer than
anticipated to realize; (4) disruption from recently completed
acquisitions with customer, supplier, employee, or other business
relationships; (5) our ability to successfully integrate the
businesses acquired as part of previous acquisitions with the
business of SmartBank; (6) changes in management’s plans for the
future; (7) prevailing, or changes in, economic or political
conditions, 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; (8) increased technology and cybersecurity
risks, including generative artificial intelligence risks; (9)
credit risk associated with our lending activities; (10) changes in
loan demand, real estate values, or competition; (11) developments
in our mortgage banking business, including loan modifications,
general demand, and the effects of judicial or regulatory
requirements or guidance; (12) changes in accounting principles,
policies, or guidelines; (13) changes in applicable laws, rules, or
regulations; (14) adverse results from current or future
litigation, regulatory examinations or other legal and/or
regulatory actions, including as a result of the Company’s
participation in and execution of government programs related to
the COVID-19 pandemic and related variants; (15) potential impacts
of adverse developments in the banking industry highlighted by
high-profile bank failures, including impacts on customer
confidence, deposit outflows, liquidity and the regulatory response
thereto; (16) 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; (17) the effects of war or
other conflicts including the impacts related to or resulting from
Russia’s military action in Ukraine or the conflict in Israel and
surrounding areas; and (18) other general competitive, economic,
political, and market factors, including those affecting our
business, operations, pricing, products, or services. These and
other factors that could cause results to differ materially from
those described in the forward-looking statements can be found in
SmartFinancial’s most recent annual report on Form 10-K, quarterly
reports on Form 10-Q, and current reports on Form 8-K, in each case
filed with or furnished to the Securities and Exchange Commission
(the “SEC”) and available on the SEC’s website (www.sec.gov). Undue
reliance should not be placed on forward-looking statements.
SmartFinancial disclaims any obligation to update or revise any
forward-looking statements contained in this release, which speak
only as of the date hereof, whether as a result of new information,
future events, or otherwise.
SmartFinancial, Inc. and
Subsidiary Condensed Consolidated Financial
Information - (unaudited) (dollars in
thousands)
| |
|
Ending Balances |
| |
|
Dec |
|
Sep |
|
Jun |
|
Mar |
|
Dec |
| |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
| Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
352,271 |
|
|
$ |
400,258 |
|
|
$ |
238,898 |
|
|
$ |
306,934 |
|
|
$ |
266,424 |
|
|
Securities available-for-sale, at fair value |
|
|
408,410 |
|
|
|
385,131 |
|
|
|
540,308 |
|
|
|
560,418 |
|
|
|
483,893 |
|
|
Securities held-to-maturity, at amortized cost |
|
|
281,236 |
|
|
|
282,313 |
|
|
|
283,564 |
|
|
|
284,776 |
|
|
|
285,949 |
|
|
Other investments |
|
|
13,662 |
|
|
|
13,805 |
|
|
|
14,396 |
|
|
|
14,059 |
|
|
|
15,530 |
|
|
Loans held for sale |
|
|
4,418 |
|
|
|
2,734 |
|
|
|
986 |
|
|
|
3,324 |
|
|
|
1,752 |
|
|
Loans and leases |
|
|
3,444,462 |
|
|
|
3,378,999 |
|
|
|
3,337,790 |
|
|
|
3,281,787 |
|
|
|
3,253,627 |
|
|
Less: Allowance for credit losses |
|
|
(35,066 |
) |
|
|
(33,687 |
) |
|
|
(32,747 |
) |
|
|
(32,279 |
) |
|
|
(23,334 |
) |
|
Loans and leases, net |
|
|
3,409,396 |
|
|
|
3,345,312 |
|
|
|
3,305,043 |
|
|
|
3,249,508 |
|
|
|
3,230,293 |
|
|
Premises and equipment, net |
|
|
92,963 |
|
|
|
92,020 |
|
|
|
92,351 |
|
|
|
92,190 |
|
|
|
92,511 |
|
|
Other real estate owned |
|
|
517 |
|
|
|
1,370 |
|
|
|
1,708 |
|
|
|
1,708 |
|
|
|
1,436 |
|
|
Goodwill and other intangibles, net |
|
|
107,148 |
|
|
|
107,792 |
|
|
|
108,439 |
|
|
|
109,114 |
|
|
|
109,772 |
|
|
Bank owned life insurance |
|
|
83,434 |
|
|
|
82,914 |
|
|
|
82,419 |
|
|
|
81,938 |
|
|
|
81,470 |
|
|
Other assets |
|
|
75,932 |
|
|
|
83,522 |
|
|
|
77,688 |
|
|
|
65,836 |
|
|
|
68,468 |
|
|
Total assets |
|
$ |
4,829,387 |
|
|
$ |
4,797,171 |
|
|
$ |
4,745,800 |
|
|
$ |
4,769,805 |
|
|
$ |
4,637,498 |
|
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
898,044 |
|
|
$ |
923,763 |
|
|
$ |
1,003,432 |
|
|
$ |
989,753 |
|
|
$ |
1,072,449 |
|
|
Interest-bearing demand |
|
|
1,006,915 |
|
|
|
993,717 |
|
|
|
938,758 |
|
|
|
989,738 |
|
|
|
965,911 |
|
|
Money market and savings |
|
|
1,812,427 |
|
|
|
1,766,409 |
|
|
|
1,720,202 |
|
|
|
1,761,847 |
|
|
|
1,583,481 |
|
|
Time deposits |
|
|
550,468 |
|
|
|
562,620 |
|
|
|
537,192 |
|
|
|
488,208 |
|
|
|
455,259 |
|
|
Total deposits |
|
|
4,267,854 |
|
|
|
4,246,509 |
|
|
|
4,199,584 |
|
|
|
4,229,546 |
|
|
|
4,077,100 |
|
|
Borrowings |
|
|
13,078 |
|
|
|
14,117 |
|
|
|
15,496 |
|
|
|
16,546 |
|
|
|
41,860 |
|
|
Subordinated debt |
|
|
42,099 |
|
|
|
42,078 |
|
|
|
42,057 |
|
|
|
42,036 |
|
|
|
42,015 |
|
|
Other liabilities |
|
|
46,470 |
|
|
|
47,815 |
|
|
|
43,816 |
|
|
|
38,278 |
|
|
|
44,071 |
|
|
Total liabilities |
|
|
4,369,501 |
|
|
|
4,350,519 |
|
|
|
4,300,953 |
|
|
|
4,326,406 |
|
|
|
4,205,046 |
|
| Shareholders'
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
16,989 |
|
|
|
16,995 |
|
|
|
17,004 |
|
|
|
17,004 |
|
|
|
16,901 |
|
|
Additional paid-in capital |
|
|
295,699 |
|
|
|
295,542 |
|
|
|
295,296 |
|
|
|
294,930 |
|
|
|
294,330 |
|
|
Retained earnings |
|
|
173,105 |
|
|
|
168,271 |
|
|
|
167,564 |
|
|
|
160,085 |
|
|
|
156,545 |
|
|
Accumulated other comprehensive income (loss) |
|
|
(25,907 |
) |
|
|
(34,156 |
) |
|
|
(35,017 |
) |
|
|
(28,620 |
) |
|
|
(35,324 |
) |
|
Total shareholders' equity |
|
|
459,886 |
|
|
|
446,652 |
|
|
|
444,847 |
|
|
|
443,399 |
|
|
|
432,452 |
|
|
Total liabilities & shareholders' equity |
|
$ |
4,829,387 |
|
|
$ |
4,797,171 |
|
|
$ |
4,745,800 |
|
|
$ |
4,769,805 |
|
|
$ |
4,637,498 |
|
SmartFinancial, Inc. and
Subsidiary Condensed Consolidated Financial
Information - (unaudited) (dollars in
thousands except share and per share data)
| |
Three Months Ended |
|
Year Ended |
| |
Dec |
|
Sep |
|
Jun |
|
Mar |
|
Dec |
|
Dec |
|
Dec |
| |
2023 |
|
2023 |
|
|
2023 |
|
2023 |
|
2022 |
|
|
2023 |
|
|
2022 |
| Interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees |
$ |
48,767 |
|
$ |
47,539 |
|
|
$ |
45,446 |
|
$ |
44,728 |
|
$ |
40,082 |
|
|
$ |
186,479 |
|
|
$ |
136,381 |
|
Investment securities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
4,344 |
|
|
4,335 |
|
|
|
4,335 |
|
|
3,651 |
|
|
3,337 |
|
|
|
16,665 |
|
|
|
11,799 |
|
Tax-exempt |
|
352 |
|
|
356 |
|
|
|
357 |
|
|
353 |
|
|
797 |
|
|
|
1,418 |
|
|
|
2,166 |
|
Federal funds sold and other earning assets |
|
4,032 |
|
|
3,045 |
|
|
|
1,956 |
|
|
4,446 |
|
|
3,098 |
|
|
|
13,481 |
|
|
|
8,488 |
|
Total interest income |
|
57,495 |
|
|
55,275 |
|
|
|
52,094 |
|
|
53,178 |
|
|
47,314 |
|
|
|
218,043 |
|
|
|
158,834 |
| Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
24,926 |
|
|
23,433 |
|
|
|
19,554 |
|
|
16,346 |
|
|
8,844 |
|
|
|
84,260 |
|
|
|
18,228 |
|
Borrowings |
|
162 |
|
|
210 |
|
|
|
339 |
|
|
224 |
|
|
232 |
|
|
|
936 |
|
|
|
602 |
|
Subordinated debt |
|
890 |
|
|
626 |
|
|
|
626 |
|
|
626 |
|
|
626 |
|
|
|
2,767 |
|
|
|
2,503 |
|
Total interest expense |
|
25,978 |
|
|
24,269 |
|
|
|
20,519 |
|
|
17,196 |
|
|
9,702 |
|
|
|
87,963 |
|
|
|
21,333 |
| Net interest income |
|
31,517 |
|
|
31,006 |
|
|
|
31,575 |
|
|
35,982 |
|
|
37,612 |
|
|
|
130,080 |
|
|
|
137,501 |
| Provision for credit
losses |
|
1,571 |
|
|
795 |
|
|
|
113 |
|
|
550 |
|
|
788 |
|
|
|
3,029 |
|
|
|
4,018 |
| Net interest income
after provision for credit losses |
|
29,946 |
|
|
30,211 |
|
|
|
31,462 |
|
|
35,432 |
|
|
36,824 |
|
|
|
127,051 |
|
|
|
133,483 |
| Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
1,673 |
|
|
1,736 |
|
|
|
1,657 |
|
|
1,445 |
|
|
1,477 |
|
|
|
6,511 |
|
|
|
5,853 |
|
Gain (loss) on sale of securities, net |
|
— |
|
|
(6,801 |
) |
|
|
— |
|
|
— |
|
|
144 |
|
|
|
(6,801 |
) |
|
|
144 |
|
Mortgage banking |
|
227 |
|
|
309 |
|
|
|
332 |
|
|
172 |
|
|
77 |
|
|
|
1,040 |
|
|
|
1,552 |
|
Investment services |
|
1,339 |
|
|
1,461 |
|
|
|
1,300 |
|
|
1,005 |
|
|
958 |
|
|
|
5,105 |
|
|
|
4,144 |
|
Insurance commissions |
|
1,133 |
|
|
1,153 |
|
|
|
1,139 |
|
|
1,259 |
|
|
1,233 |
|
|
|
4,684 |
|
|
|
3,595 |
|
Interchange and debit card transaction fees |
|
1,370 |
|
|
1,357 |
|
|
|
1,347 |
|
|
1,383 |
|
|
1,328 |
|
|
|
5,457 |
|
|
|
5,435 |
|
Other |
|
1,837 |
|
|
1,476 |
|
|
|
1,355 |
|
|
1,661 |
|
|
1,908 |
|
|
|
6,329 |
|
|
|
6,992 |
|
Total noninterest income |
|
7,579 |
|
|
691 |
|
|
|
7,130 |
|
|
6,925 |
|
|
7,125 |
|
|
|
22,325 |
|
|
|
27,715 |
| Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
16,275 |
|
|
16,785 |
|
|
|
15,947 |
|
|
16,742 |
|
|
16,384 |
|
|
|
65,749 |
|
|
|
63,420 |
|
Occupancy and equipment |
|
3,378 |
|
|
3,547 |
|
|
|
3,318 |
|
|
3,208 |
|
|
3,015 |
|
|
|
13,451 |
|
|
|
12,034 |
|
FDIC insurance |
|
915 |
|
|
825 |
|
|
|
875 |
|
|
541 |
|
|
650 |
|
|
|
3,156 |
|
|
|
2,672 |
|
Other real estate and loan related expense |
|
781 |
|
|
603 |
|
|
|
441 |
|
|
572 |
|
|
517 |
|
|
|
2,397 |
|
|
|
2,446 |
|
Advertising and marketing |
|
336 |
|
|
346 |
|
|
|
305 |
|
|
355 |
|
|
308 |
|
|
|
1,342 |
|
|
|
1,293 |
|
Data processing and technology |
|
2,458 |
|
|
2,378 |
|
|
|
2,235 |
|
|
2,163 |
|
|
2,097 |
|
|
|
9,235 |
|
|
|
7,283 |
|
Professional services |
|
1,136 |
|
|
735 |
|
|
|
764 |
|
|
807 |
|
|
981 |
|
|
|
3,443 |
|
|
|
3,790 |
|
Amortization of intangibles |
|
643 |
|
|
647 |
|
|
|
675 |
|
|
659 |
|
|
688 |
|
|
|
2,624 |
|
|
|
2,607 |
|
Merger related and restructuring expenses |
|
— |
|
|
110 |
|
|
|
— |
|
|
— |
|
|
(45 |
) |
|
|
110 |
|
|
|
562 |
|
Other |
|
3,773 |
|
|
2,540 |
|
|
|
2,850 |
|
|
2,482 |
|
|
2,821 |
|
|
|
11,643 |
|
|
|
10,183 |
|
Total noninterest expense |
|
29,695 |
|
|
28,516 |
|
|
|
27,410 |
|
|
27,529 |
|
|
27,416 |
|
|
|
113,150 |
|
|
|
106,290 |
| Income before income
taxes |
|
7,830 |
|
|
2,386 |
|
|
|
11,182 |
|
|
14,828 |
|
|
16,533 |
|
|
|
36,226 |
|
|
|
54,908 |
| Income tax expense |
|
1,640 |
|
|
319 |
|
|
|
2,346 |
|
|
3,328 |
|
|
3,529 |
|
|
|
7,633 |
|
|
|
11,886 |
| Net
income |
$ |
6,190 |
|
$ |
2,067 |
|
|
$ |
8,836 |
|
$ |
11,500 |
|
$ |
13,004 |
|
|
$ |
28,593 |
|
|
$ |
43,022 |
| Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.37 |
|
$ |
0.12 |
|
|
$ |
0.53 |
|
$ |
0.69 |
|
$ |
0.78 |
|
|
$ |
1.70 |
|
|
$ |
2.57 |
|
Diluted |
$ |
0.37 |
|
$ |
0.12 |
|
|
$ |
0.52 |
|
$ |
0.68 |
|
$ |
0.77 |
|
|
$ |
1.69 |
|
|
$ |
2.55 |
| Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
16,814,647 |
|
|
16,807,548 |
|
|
|
16,806,389 |
|
|
16,791,406 |
|
|
16,758,706 |
|
|
|
16,805,068 |
|
|
|
16,740,450 |
|
Diluted |
|
16,918,234 |
|
|
16,918,635 |
|
|
|
16,898,091 |
|
|
16,896,494 |
|
|
16,884,253 |
|
|
|
16,911,185 |
|
|
|
16,871,369 |
SmartFinancial, Inc. and
SubsidiaryCondensed Consolidated Financial
Information - (unaudited)(dollars in
thousands)YIELD ANALYSIS
| |
|
Three Months Ended |
|
| |
|
December 31, 2023 |
|
September 30, 2023 |
|
December 31, 2022 |
|
| |
|
Average |
|
|
|
|
Yield/ |
|
Average |
|
|
|
|
Yield/ |
|
Average |
|
|
|
|
Yield/ |
|
| |
|
Balance |
|
Interest |
|
Cost |
|
Balance |
|
Interest |
|
Cost |
|
Balance |
|
Interest |
|
Cost |
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees1 |
|
$ |
3,408,430 |
|
$ |
48,767 |
|
5.68 |
% |
$ |
3,360,678 |
|
$ |
47,539 |
|
5.61 |
% |
$ |
3,150,493 |
|
$ |
40,082 |
|
5.05 |
% |
|
Taxable securities |
|
|
618,511 |
|
|
4,344 |
|
2.79 |
% |
|
743,054 |
|
|
4,335 |
|
2.31 |
% |
|
701,787 |
|
|
3,337 |
|
1.89 |
% |
|
Tax-exempt securities2 |
|
|
63,767 |
|
|
445 |
|
2.77 |
% |
|
64,707 |
|
|
451 |
|
2.77 |
% |
|
93,721 |
|
|
958 |
|
4.06 |
% |
|
Federal funds sold and other earning assets |
|
|
289,896 |
|
|
4,032 |
|
5.52 |
% |
|
229,487 |
|
|
3,045 |
|
5.26 |
% |
|
322,970 |
|
|
3,098 |
|
3.81 |
% |
|
Total interest-earning assets |
|
|
4,380,604 |
|
|
57,588 |
|
5.22 |
% |
|
4,397,926 |
|
|
55,370 |
|
4.99 |
% |
|
4,268,971 |
|
|
47,475 |
|
4.41 |
% |
|
Noninterest-earning assets |
|
|
386,202 |
|
|
|
|
|
|
|
379,456 |
|
|
|
|
|
|
|
372,864 |
|
|
|
|
|
|
|
Total assets |
|
$ |
4,766,806 |
|
|
|
|
|
|
$ |
4,777,382 |
|
|
|
|
|
|
$ |
4,641,835 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
974,637 |
|
|
5,631 |
|
2.29 |
% |
$ |
969,122 |
|
|
5,463 |
|
2.24 |
% |
$ |
924,320 |
|
|
3,141 |
|
1.35 |
% |
|
Money market and savings deposits |
|
|
1,764,826 |
|
|
14,556 |
|
3.27 |
% |
|
1,753,671 |
|
|
13,744 |
|
3.11 |
% |
|
1,587,688 |
|
|
4,855 |
|
1.21 |
% |
|
Time deposits |
|
|
556,996 |
|
|
4,739 |
|
3.38 |
% |
|
551,191 |
|
|
4,226 |
|
3.04 |
% |
|
459,996 |
|
|
848 |
|
0.73 |
% |
|
Total interest-bearing deposits |
|
|
3,296,459 |
|
|
24,926 |
|
3.00 |
% |
|
3,273,984 |
|
|
23,433 |
|
2.84 |
% |
|
2,972,004 |
|
|
8,844 |
|
1.18 |
% |
|
Borrowings |
|
|
13,420 |
|
|
162 |
|
4.79 |
% |
|
16,228 |
|
|
210 |
|
5.13 |
% |
|
18,309 |
|
|
232 |
|
5.03 |
% |
|
Subordinated debt |
|
|
42,087 |
|
|
890 |
|
8.39 |
% |
|
42,065 |
|
|
626 |
|
5.90 |
% |
|
42,002 |
|
|
626 |
|
5.91 |
% |
|
Total interest-bearing liabilities |
|
|
3,351,966 |
|
|
25,978 |
|
3.07 |
% |
|
3,332,277 |
|
|
24,269 |
|
2.89 |
% |
|
3,032,315 |
|
|
9,702 |
|
1.27 |
% |
|
Noninterest-bearing deposits |
|
|
915,259 |
|
|
|
|
|
|
|
951,179 |
|
|
|
|
|
|
|
1,146,374 |
|
|
|
|
|
|
|
Other liabilities |
|
|
50,055 |
|
|
|
|
|
|
|
48,494 |
|
|
|
|
|
|
|
43,109 |
|
|
|
|
|
|
|
Total liabilities |
|
|
4,317,280 |
|
|
|
|
|
|
|
4,331,950 |
|
|
|
|
|
|
|
4,221,798 |
|
|
|
|
|
|
|
Shareholders' equity |
|
|
449,526 |
|
|
|
|
|
|
|
445,432 |
|
|
|
|
|
|
|
420,037 |
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
4,766,806 |
|
|
|
|
|
|
$ |
4,777,382 |
|
|
|
|
|
|
$ |
4,641,835 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, taxable equivalent |
|
|
|
|
$ |
31,610 |
|
|
|
|
|
|
$ |
31,101 |
|
|
|
|
|
|
$ |
37,773 |
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
2.14 |
% |
|
|
|
|
|
|
2.11 |
% |
|
|
|
|
|
|
3.14 |
% |
|
Tax equivalent net interest margin |
|
|
|
|
|
|
|
2.86 |
% |
|
|
|
|
|
|
2.81 |
% |
|
|
|
|
|
|
3.51 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of average interest-earning assets to average
interest-bearing liabilities |
|
|
|
|
|
|
|
130.69 |
% |
|
|
|
|
|
|
131.98 |
% |
|
|
|
|
|
|
140.78 |
% |
|
Percentage of average equity to average assets |
|
|
|
|
|
|
|
9.43 |
% |
|
|
|
|
|
|
9.32 |
% |
|
|
|
|
|
|
9.05 |
% |
1 Includes average balance of $2.3 million, $2.7 million, and
$3.3 million in PPP loans for the quarters ended December 31, 2023,
September 30, 2023, and December 31, 2022,
respectively. 2 Yields computed on tax-exempt
instruments on a tax equivalent basis include $94 thousand, $95
thousand, and $161 thousand of taxable equivalent income for the
quarters ended December 31, 2023, September 30, 2023, and December
31, 2022, respectively.
SmartFinancial, Inc. and
SubsidiaryCondensed Consolidated Financial
Information - (unaudited)(dollars in
thousands)YIELD ANALYSIS
| |
|
Year Ended |
| |
|
December 31, 2023 |
|
December 31, 2022 |
|
| |
|
Average |
|
|
|
|
Yield/ |
|
Average |
|
|
|
|
Yield/ |
|
| |
|
Balance |
|
Interest |
|
Cost |
|
Balance |
|
Interest |
|
Cost |
|
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees1 |
|
$ |
3,334,523 |
|
$ |
186,479 |
|
|
5.59 |
% |
$ |
2,948,511 |
|
$ |
136,381 |
|
4.63 |
% |
|
Taxable securities |
|
|
713,637 |
|
|
16,665 |
|
|
2.34 |
% |
|
688,428 |
|
|
11,799 |
|
1.71 |
% |
|
Tax-exempt securities2 |
|
|
64,816 |
|
|
1,795 |
|
|
2.77 |
% |
|
100,566 |
|
|
2,831 |
|
2.82 |
% |
|
Federal funds sold and other earning assets |
|
|
272,864 |
|
|
13,481 |
|
|
4.94 |
% |
|
577,593 |
|
|
8,488 |
|
1.47 |
% |
|
Total interest-earning assets |
|
|
4,385,840 |
|
|
218,420 |
|
|
4.98 |
% |
|
4,315,098 |
|
|
159,499 |
|
3.70 |
% |
|
Noninterest-earning assets |
|
|
370,436 |
|
|
|
|
|
|
|
|
373,026 |
|
|
|
|
|
|
|
Total assets |
|
$ |
4,756,276 |
|
|
|
|
|
|
|
$ |
4,688,124 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Liabilities and
Shareholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
959,639 |
|
|
20,214 |
|
|
2.11 |
% |
$ |
945,414 |
|
|
6,278 |
|
0.66 |
% |
|
Money market and savings deposits |
|
|
1,768,869 |
|
|
50,468 |
|
|
2.85 |
% |
|
1,576,170 |
|
|
9,137 |
|
0.58 |
% |
|
Time deposits |
|
|
520,799 |
|
|
13,578 |
|
|
2.61 |
% |
|
513,416 |
|
|
2,813 |
|
0.55 |
% |
|
Total interest-bearing deposits |
|
|
3,249,307 |
|
|
84,260 |
|
|
2.59 |
% |
|
3,035,000 |
|
|
18,228 |
|
0.60 |
% |
|
Borrowings |
|
|
17,824 |
|
|
936 |
|
|
5.25 |
% |
|
32,986 |
|
|
602 |
|
1.83 |
% |
|
Subordinated debt |
|
|
42,055 |
|
|
2,767 |
|
|
6.58 |
% |
|
41,970 |
|
|
2,503 |
|
5.96 |
% |
|
Total interest-bearing liabilities |
|
|
3,309,186 |
|
|
87,963 |
|
|
2.66 |
% |
|
3,109,956 |
|
|
21,333 |
|
0.69 |
% |
|
Noninterest-bearing deposits |
|
|
958,078 |
|
|
|
|
|
|
|
|
1,120,555 |
|
|
|
|
|
|
|
Other liabilities |
|
|
46,052 |
|
|
|
|
|
|
|
|
34,361 |
|
|
|
|
|
|
|
Total liabilities |
|
|
4,313,316 |
|
|
|
|
|
|
|
|
4,264,872 |
|
|
|
|
|
|
|
Shareholders' equity |
|
|
442,960 |
|
|
|
|
|
|
|
|
423,252 |
|
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
4,756,276 |
|
|
|
|
|
|
|
$ |
4,688,124 |
|
|
|
|
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, taxable equivalent |
|
|
|
|
$ |
130,457 |
|
|
|
|
|
|
|
$ |
138,166 |
|
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
2.32 |
% |
|
|
|
|
|
|
3.01 |
% |
|
Tax equivalent net interest margin |
|
|
|
|
|
|
|
|
2.97 |
% |
|
|
|
|
|
|
3.20 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of average interest-earning assets to average
interest-bearing liabilities |
|
|
|
|
|
|
|
|
132.54 |
% |
|
|
|
|
|
|
138.75 |
% |
|
Percentage of average equity to average assets |
|
|
|
|
|
|
|
|
9.31 |
% |
|
|
|
|
|
|
9.03 |
% |
1 Includes average balance of $2.8 million and $14.1 million in
PPP loans for the year ended December 31, 2023, and 2022,
respectively. 2 Yields computed on tax-exempt instruments on a tax
equivalent basis include $377 thousand and $665 thousand of taxable
equivalent income for the year ended December 31, 2023, and 2022,
respectively.
SmartFinancial, Inc. and
SubsidiaryCondensed Consolidated Financial
Information - (unaudited)(dollars in
thousands)
| |
|
As of and for The Three Months Ended |
|
| |
|
Dec |
|
Sep |
|
Jun |
|
Mar |
|
Dec |
|
| |
|
2023 |
|
2023 |
|
2023 |
|
|
2023 |
|
2022 |
|
| Composition of Loans
and Leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Owner occupied |
|
$ |
798,416 |
|
$ |
776,402 |
|
$ |
769,978 |
|
|
$ |
764,166 |
|
$ |
765,041 |
|
|
Non-owner occupied |
|
|
940,789 |
|
|
890,774 |
|
|
871,779 |
|
|
|
871,368 |
|
|
862,720 |
|
|
Commercial real estate, total |
|
|
1,739,205 |
|
|
1,667,176 |
|
|
1,641,757 |
|
|
|
1,635,534 |
|
|
1,627,761 |
|
|
Commercial & industrial |
|
|
645,918 |
|
|
617,115 |
|
|
594,427 |
|
|
|
571,153 |
|
|
551,867 |
|
|
Construction & land development |
|
|
327,185 |
|
|
373,068 |
|
|
394,742 |
|
|
|
386,253 |
|
|
402,501 |
|
|
Consumer real estate |
|
|
649,867 |
|
|
638,518 |
|
|
624,828 |
|
|
|
606,343 |
|
|
587,977 |
|
|
Leases |
|
|
68,752 |
|
|
68,538 |
|
|
66,401 |
|
|
|
67,701 |
|
|
67,427 |
|
|
Consumer and other |
|
|
13,535 |
|
|
14,584 |
|
|
15,635 |
|
|
|
14,803 |
|
|
16,094 |
|
|
Total loans and leases |
|
$ |
3,444,462 |
|
$ |
3,378,999 |
|
$ |
3,337,790 |
|
|
$ |
3,281,787 |
|
$ |
3,253,627 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Asset Quality and
Additional Loan Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans and leases |
|
$ |
8,101 |
|
$ |
4,163 |
|
$ |
3,722 |
|
|
$ |
3,247 |
|
$ |
2,951 |
|
|
Other real estate owned |
|
|
517 |
|
|
1,370 |
|
|
1,708 |
|
|
|
1,708 |
|
|
1,436 |
|
|
Other repossessed assets |
|
|
1,117 |
|
|
348 |
|
|
282 |
|
|
|
66 |
|
|
422 |
|
|
Total nonperforming assets |
|
$ |
9,735 |
|
$ |
5,881 |
|
$ |
5,712 |
|
|
$ |
5,021 |
|
$ |
4,809 |
|
|
Restructured loans and leases not included in nonperforming loans
and leases |
|
$ |
4,245 |
|
$ |
2,376 |
|
$ |
657 |
|
|
$ |
97 |
|
$ |
101 |
|
|
Net charge-offs to average loans and leases (annualized) |
|
|
0.04 |
% |
|
0.04 |
% |
|
(0.01 |
) |
% |
|
0.03 |
% |
|
0.03 |
% |
|
Allowance for credit losses to loans and leases |
|
|
1.02 |
% |
|
1.00 |
% |
|
0.98 |
|
% |
|
0.98 |
% |
|
0.72 |
% |
|
Nonperforming loans and leases to total loans and leases,
gross |
|
|
0.24 |
% |
|
0.12 |
% |
|
0.11 |
|
% |
|
0.10 |
% |
|
0.09 |
% |
|
Nonperforming assets to total assets |
|
|
0.20 |
% |
|
0.12 |
% |
|
0.12 |
|
% |
|
0.11 |
% |
|
0.10 |
% |
|
Acquired loan and lease fair value discount balance |
|
$ |
— |
|
$ |
— |
|
$ |
— |
|
|
$ |
— |
|
$ |
13,128 |
|
|
Accretion income on acquired loans and leases |
|
|
— |
|
|
— |
|
|
— |
|
|
|
— |
|
|
1,396 |
|
|
PPP net fees deferred balance |
|
|
84 |
|
|
94 |
|
|
104 |
|
|
|
114 |
|
|
122 |
|
|
PPP net fees recognized |
|
|
10 |
|
|
10 |
|
|
10 |
|
|
|
8 |
|
|
17 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to Assets |
|
|
9.52 |
% |
|
9.31 |
% |
|
9.37 |
|
% |
|
9.30 |
% |
|
9.33 |
% |
|
Tangible common equity to tangible assets (Non-GAAP)1 |
|
|
7.47 |
% |
|
7.23 |
% |
|
7.25 |
|
% |
|
7.17 |
% |
|
7.13 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SmartFinancial, Inc.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage |
|
|
8.27 |
% |
|
8.13 |
% |
|
8.24 |
|
% |
|
7.91 |
% |
|
7.95 |
% |
|
Common equity Tier 1 |
|
|
10.21 |
% |
|
10.07 |
% |
|
10.12 |
|
% |
|
9.95 |
% |
|
9.65 |
% |
|
Tier 1 capital |
|
|
10.21 |
% |
|
10.07 |
% |
|
10.12 |
|
% |
|
9.95 |
% |
|
9.65 |
% |
|
Total capital |
|
|
11.86 |
% |
|
11.90 |
% |
|
11.94 |
|
% |
|
11.77 |
% |
|
11.40 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SmartBank |
|
|
Estimated3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage |
|
|
9.18 |
% |
|
9.00 |
% |
|
9.18 |
|
% |
|
8.87 |
% |
|
8.90 |
% |
|
Common equity Tier 1 |
|
|
11.29 |
% |
|
11.15 |
% |
|
11.27 |
|
% |
|
11.15 |
% |
|
10.82 |
% |
|
Tier 1 capital |
|
|
11.29 |
% |
|
11.15 |
% |
|
11.27 |
|
% |
|
11.15 |
% |
|
10.82 |
% |
|
Total capital |
|
|
12.04 |
% |
|
11.87 |
% |
|
11.97 |
|
% |
|
11.85 |
% |
|
11.44 |
% |
1Total common equity less intangibles divided by total assets
less intangibles. See reconciliation of Non-GAAP measures.2All
periods presented are estimated.3 Current period capital ratios are
estimated as of the date of this earnings release.
SmartFinancial, Inc. and
Subsidiary Condensed Consolidated Financial
Information - (unaudited) (dollars in
thousands except share and per share data)
| |
As of and for The |
|
|
As of and for The |
|
| |
Three Months Ended |
|
|
Year Ended |
|
| |
Dec |
|
Sep |
|
Jun |
|
Mar |
|
Dec |
|
|
Dec |
|
Dec |
|
| |
2023 |
|
2023 |
|
2023 |
|
2023 |
|
2022 |
|
|
2023 |
|
2022 |
|
|
Selected Performance Ratios (Annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.52 |
% |
|
0.17 |
% |
|
0.75 |
% |
|
0.97 |
% |
|
1.11 |
% |
|
|
0.60 |
% |
|
0.92 |
% |
|
Return on average shareholders' equity |
|
5.46 |
% |
|
1.84 |
% |
|
7.98 |
% |
|
10.79 |
% |
|
12.28 |
% |
|
|
6.45 |
% |
|
10.16 |
% |
|
Return on average tangible common equity¹ |
|
7.18 |
% |
|
2.43 |
% |
|
10.57 |
% |
|
14.45 |
% |
|
16.65 |
% |
|
|
8.55 |
% |
|
13.60 |
% |
|
Noninterest income / average assets |
|
0.63 |
% |
|
0.06 |
% |
|
0.61 |
% |
|
0.59 |
% |
|
0.61 |
% |
|
|
0.47 |
% |
|
0.59 |
% |
|
Noninterest expense / average assets |
|
2.47 |
% |
|
2.37 |
% |
|
2.34 |
% |
|
2.33 |
% |
|
2.34 |
% |
|
|
2.38 |
% |
|
2.27 |
% |
|
Efficiency ratio |
|
75.95 |
% |
|
89.96 |
% |
|
70.82 |
% |
|
64.16 |
% |
|
61.28 |
% |
|
|
74.24 |
% |
|
64.33 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Selected
Performance Ratios (Annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on average assets1 |
|
0.57 |
% |
|
0.60 |
% |
|
0.75 |
% |
|
0.97 |
% |
|
1.10 |
% |
|
|
0.72 |
% |
|
0.92 |
% |
|
Operating PPNR return on average assets1 |
|
0.86 |
% |
|
0.84 |
% |
|
0.96 |
% |
|
1.30 |
% |
|
1.46 |
% |
|
|
0.99 |
% |
|
1.27 |
% |
|
Operating return on average shareholders' equity1 |
|
6.07 |
% |
|
6.41 |
% |
|
7.98 |
% |
|
10.79 |
% |
|
12.15 |
% |
|
|
7.77 |
% |
|
10.24 |
% |
|
Operating return on average tangible common equity1 |
|
7.98 |
% |
|
8.46 |
% |
|
10.57 |
% |
|
14.45 |
% |
|
16.47 |
% |
|
|
10.29 |
% |
|
13.69 |
% |
|
Operating efficiency ratio1 |
|
73.41 |
% |
|
73.60 |
% |
|
70.64 |
% |
|
64.02 |
% |
|
61.36 |
% |
|
|
70.26 |
% |
|
63.79 |
% |
|
Operating noninterest income / average assets1 |
|
0.63 |
% |
|
0.62 |
% |
|
0.61 |
% |
|
0.59 |
% |
|
0.60 |
% |
|
|
0.61 |
% |
|
0.59 |
% |
|
Operating noninterest expense / average assets1 |
|
2.39 |
% |
|
2.36 |
% |
|
2.34 |
% |
|
2.33 |
% |
|
2.35 |
% |
|
|
2.36 |
% |
|
2.26 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Selected Interest
Rates and Yields: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on loans and leases, excluding loan fees |
|
5.61 |
% |
|
5.52 |
% |
|
5.39 |
% |
|
5.20 |
% |
|
4.99 |
% |
|
|
5.43 |
% |
|
4.41 |
% |
|
Yield on loans and leases |
|
5.68 |
% |
|
5.61 |
% |
|
5.51 |
% |
|
5.57 |
% |
|
5.05 |
% |
|
|
5.59 |
% |
|
4.63 |
% |
|
Yield on earning assets, FTE |
|
5.22 |
% |
|
4.99 |
% |
|
4.82 |
% |
|
4.88 |
% |
|
4.41 |
% |
|
|
4.98 |
% |
|
3.70 |
% |
|
Cost of interest-bearing deposits |
|
3.00 |
% |
|
2.84 |
% |
|
2.46 |
% |
|
2.05 |
% |
|
1.18 |
% |
|
|
2.59 |
% |
|
0.60 |
% |
|
Cost of total deposits |
|
2.35 |
% |
|
2.20 |
% |
|
1.89 |
% |
|
1.56 |
% |
|
0.85 |
% |
|
|
2.00 |
% |
|
0.44 |
% |
|
Cost of interest-bearing liabilities |
|
3.07 |
% |
|
2.89 |
% |
|
2.53 |
% |
|
2.12 |
% |
|
1.27 |
% |
|
|
2.66 |
% |
|
0.69 |
% |
|
Net interest margin, FTE |
|
2.86 |
% |
|
2.81 |
% |
|
2.93 |
% |
|
3.31 |
% |
|
3.51 |
% |
|
|
2.97 |
% |
|
3.20 |
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Per Common
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, basic |
$ |
0.37 |
|
$ |
0.12 |
|
$ |
0.53 |
|
$ |
0.69 |
|
$ |
0.78 |
|
|
$ |
1.70 |
|
$ |
2.57 |
|
|
Net income, diluted |
|
0.37 |
|
|
0.12 |
|
|
0.52 |
|
|
0.68 |
|
|
0.77 |
|
|
|
1.69 |
|
|
2.55 |
|
|
Operating earnings, basic¹ |
|
0.41 |
|
|
0.43 |
|
|
0.53 |
|
|
0.69 |
|
|
0.77 |
|
|
|
2.05 |
|
|
2.59 |
|
|
Operating earnings, diluted¹ |
|
0.41 |
|
|
0.43 |
|
|
0.52 |
|
|
0.68 |
|
|
0.76 |
|
|
|
2.03 |
|
|
2.57 |
|
|
Book value |
|
27.07 |
|
|
26.28 |
|
|
26.16 |
|
|
26.08 |
|
|
25.59 |
|
|
|
27.07 |
|
|
25.59 |
|
|
Tangible book value¹ |
|
20.76 |
|
|
19.94 |
|
|
19.78 |
|
|
19.66 |
|
|
19.09 |
|
|
|
20.76 |
|
|
19.09 |
|
|
Common shares outstanding |
|
16,988,879 |
|
|
16,994,543 |
|
|
17,004,092 |
|
|
17,004,092 |
|
|
16,900,805 |
|
|
|
16,988,879 |
|
|
16,900,805 |
|
¹Non-GAAP measure. See reconciliation of Non-GAAP measures.
SmartFinancial, Inc. and
SubsidiaryCondensed Consolidated Financial
Information - (unaudited)(dollars in
thousands)NON-GAAP RECONCILIATIONS
| |
|
Three Months Ended |
|
|
Year Ended |
|
| |
|
Dec |
|
Sep |
|
Jun |
|
Mar |
|
Dec |
|
|
Dec |
|
Dec |
|
| |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
|
| Operating
Earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
6,190 |
|
|
$ |
2,067 |
|
|
$ |
8,836 |
|
|
$ |
11,500 |
|
|
$ |
13,004 |
|
|
|
$ |
28,593 |
|
|
$ |
43,022 |
|
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities (gains) losses, net |
|
|
— |
|
|
|
6,801 |
|
|
|
— |
|
|
|
— |
|
|
|
(144 |
) |
|
|
|
6,801 |
|
|
|
(144 |
) |
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Donation of a former branch location |
|
|
250 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
250 |
|
|
|
— |
|
|
|
Accruals for pending litigation |
|
|
675 |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
675 |
|
|
|
— |
|
|
|
Merger related and restructuring expenses |
|
|
— |
|
|
|
110 |
|
|
|
— |
|
|
|
— |
|
|
|
(45 |
) |
|
|
|
110 |
|
|
|
562 |
|
|
|
Income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax effect of adjustments |
|
|
(239 |
) |
|
|
(1,785 |
) |
|
|
— |
|
|
|
— |
|
|
|
49 |
|
|
|
|
(2,024 |
) |
|
|
(108 |
) |
|
|
Operating earnings (Non-GAAP) |
|
$ |
6,876 |
|
|
$ |
7,193 |
|
|
$ |
8,836 |
|
|
$ |
11,500 |
|
|
$ |
12,864 |
|
|
|
$ |
34,405 |
|
|
$ |
43,332 |
|
|
|
Operating earnings per common share
(Non-GAAP): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.41 |
|
|
$ |
0.43 |
|
|
$ |
0.53 |
|
|
$ |
0.69 |
|
|
$ |
0.77 |
|
|
|
$ |
2.05 |
|
|
$ |
2.59 |
|
|
|
Diluted |
|
|
0.41 |
|
|
|
0.43 |
|
|
|
0.52 |
|
|
|
0.68 |
|
|
|
0.76 |
|
|
|
|
2.03 |
|
|
|
2.57 |
|
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Noninterest
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (GAAP) |
|
$ |
7,579 |
|
|
$ |
691 |
|
|
$ |
7,130 |
|
|
$ |
6,925 |
|
|
$ |
7,125 |
|
|
|
$ |
22,325 |
|
|
$ |
27,715 |
|
|
|
Securities (gains) losses, net |
|
|
— |
|
|
|
6,801 |
|
|
|
— |
|
|
|
— |
|
|
|
(144 |
) |
|
|
|
6,801 |
|
|
|
(144 |
) |
|
|
Operating noninterest income (Non-GAAP) |
|
$ |
7,579 |
|
|
$ |
7,492 |
|
|
$ |
7,130 |
|
|
$ |
6,925 |
|
|
$ |
6,981 |
|
|
|
$ |
29,126 |
|
|
$ |
27,571 |
|
|
|
Operating noninterest income (Non-GAAP)/average assets1 |
|
|
0.63 |
|
% |
|
0.62 |
|
% |
|
0.61 |
|
% |
|
0.59 |
|
% |
|
0.60 |
|
% |
|
|
0.61 |
|
% |
|
0.59 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Noninterest
Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
|
$ |
29,695 |
|
|
$ |
28,516 |
|
|
$ |
27,410 |
|
|
$ |
27,529 |
|
|
$ |
27,416 |
|
|
|
$ |
113,150 |
|
|
$ |
106,290 |
|
|
|
Donation of a former branch location |
|
|
(250 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
(250 |
) |
|
|
— |
|
|
|
Accruals for pending litigation |
|
|
(675 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
|
(675 |
) |
|
|
— |
|
|
|
Merger related and restructuring expenses |
|
|
— |
|
|
|
(110 |
) |
|
|
— |
|
|
|
— |
|
|
|
45 |
|
|
|
|
(110 |
) |
|
|
(562 |
) |
|
|
Operating noninterest expense (Non-GAAP) |
|
$ |
28,770 |
|
|
$ |
28,406 |
|
|
$ |
27,410 |
|
|
$ |
27,529 |
|
|
$ |
27,461 |
|
|
|
$ |
112,115 |
|
|
$ |
105,728 |
|
|
|
Operating noninterest expense (Non-GAAP)/average assets2 |
|
|
2.39 |
|
% |
|
2.36 |
|
% |
|
2.34 |
|
% |
|
2.33 |
|
% |
|
2.35 |
|
% |
|
|
2.36 |
|
% |
|
2.26 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating
Pre-provision Net revenue ("PPNR") Earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
|
$ |
31,517 |
|
|
$ |
31,006 |
|
|
$ |
31,575 |
|
|
$ |
35,982 |
|
|
$ |
37,612 |
|
|
|
$ |
130,080 |
|
|
$ |
137,501 |
|
|
|
Operating noninterest income (Non-GAAP) |
|
|
7,579 |
|
|
|
7,492 |
|
|
|
7,130 |
|
|
|
6,925 |
|
|
|
6,981 |
|
|
|
|
29,126 |
|
|
|
27,571 |
|
|
|
Operating noninterest expense (Non-GAAP) |
|
|
(28,770 |
) |
|
|
(28,406 |
) |
|
|
(27,410 |
) |
|
|
(27,529 |
) |
|
|
(27,461 |
) |
|
|
|
(112,115 |
) |
|
|
(105,728 |
) |
|
|
Operating PPNR earnings (Non-GAAP) |
|
$ |
10,326 |
|
|
$ |
10,092 |
|
|
$ |
11,295 |
|
|
$ |
15,378 |
|
|
$ |
17,132 |
|
|
|
$ |
47,091 |
|
|
$ |
59,344 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Non-GAAP Return
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on average assets (Non-GAAP)3 |
|
|
0.57 |
|
% |
|
0.60 |
|
% |
|
0.75 |
|
% |
|
0.97 |
|
% |
|
1.10 |
|
% |
|
|
0.72 |
|
% |
|
0.92 |
|
% |
|
Operating PPNR return on average assets (Non-GAAP)4 |
|
|
0.86 |
|
% |
|
0.84 |
|
% |
|
0.96 |
|
% |
|
1.30 |
|
% |
|
1.46 |
|
% |
|
|
0.99 |
|
% |
|
1.27 |
|
% |
|
Return on average tangible common equity (Non-GAAP)5 |
|
|
7.18 |
|
% |
|
2.43 |
|
% |
|
10.57 |
|
% |
|
14.45 |
|
% |
|
16.65 |
|
% |
|
|
8.55 |
|
% |
|
13.60 |
|
% |
|
Operating return on average shareholders' equity (Non-GAAP)6 |
|
|
6.07 |
|
% |
|
6.41 |
|
% |
|
7.98 |
|
% |
|
10.79 |
|
% |
|
12.15 |
|
% |
|
|
7.77 |
|
% |
|
10.24 |
|
% |
|
Operating return on average tangible common equity (Non-GAAP)7 |
|
|
7.98 |
|
% |
|
8.46 |
|
% |
|
10.57 |
|
% |
|
14.45 |
|
% |
|
16.47 |
|
% |
|
|
10.29 |
|
% |
|
13.69 |
|
% |
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Operating Efficiency
Ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
|
|
75.95 |
|
% |
|
89.96 |
|
% |
|
70.82 |
|
% |
|
64.16 |
|
% |
|
61.28 |
|
% |
|
|
74.24 |
|
% |
|
64.33 |
|
% |
|
Adjustment for taxable equivalent yields |
|
|
(0.18 |
) |
% |
|
(0.27 |
) |
% |
|
(0.18 |
) |
% |
|
(0.14 |
) |
% |
|
(0.22 |
) |
% |
|
|
(0.18 |
) |
% |
|
(0.26 |
) |
% |
|
Adjustment for securities gains (losses) |
|
|
— |
|
% |
|
(15.89 |
) |
% |
|
— |
|
% |
|
— |
|
% |
|
0.20 |
|
% |
|
|
(3.17 |
) |
% |
|
0.06 |
|
% |
|
Adjustment for donation of a former branch location |
|
|
(0.64 |
) |
% |
|
— |
|
% |
|
— |
|
% |
|
— |
|
% |
|
— |
|
% |
|
|
(0.16 |
) |
% |
|
— |
|
% |
|
Adjustment for accruals for pending litigation |
|
|
(1.72 |
) |
% |
|
— |
|
% |
|
— |
|
% |
|
— |
|
% |
|
— |
|
% |
|
|
(0.44 |
) |
% |
|
— |
|
% |
|
Adjustment for merger related income and costs |
|
|
— |
|
% |
|
(0.20 |
) |
% |
|
— |
|
% |
|
— |
|
% |
|
0.10 |
|
% |
|
|
(0.03 |
) |
% |
|
(0.34 |
) |
% |
|
Operating efficiency ratio (Non-GAAP) |
|
|
73.41 |
|
% |
|
73.60 |
|
% |
|
70.64 |
|
% |
|
64.02 |
|
% |
|
61.36 |
|
% |
|
|
70.26 |
|
% |
|
63.79 |
|
% |
1Operating noninterest income (Non-GAAP) is annualized and
divided by average assets.2Operating noninterest expense (Non-GAAP)
is annualized and divided by average assets.3Operating return on
average assets (Non-GAAP) is the annualized operating earnings
(Non-GAAP) divided by average assets.4Operating PPNR return on
average assets (Non-GAAP) is the annualized operating PPNR earnings
(Non-GAAP) divided by average assets. 5Return on average tangible
common equity (Non-GAAP) is the annualized net income divided by
average tangible common equity (Non-GAAP).6Operating return on
average shareholders’ equity (Non-GAAP) is the annualized operating
earnings (Non-GAAP) divided by average equity.7Operating return on
average tangible common equity (Non-GAAP) is the annualized
operating earnings (Non-GAAP) divided by average tangible common
equity (Non-GAAP).
SmartFinancial, Inc. and
SubsidiaryCondensed Consolidated Financial
Information - (unaudited)(dollars in
thousands)NON-GAAP RECONCILIATIONS
| |
|
Three Months Ended |
|
|
Year Ended |
| |
|
Dec |
|
Sep |
|
Jun |
|
Mar |
|
Dec |
|
|
Dec |
|
Dec |
| |
|
2023 |
|
|
2023 |
|
|
2023 |
|
|
2022 |
|
|
2022 |
|
|
|
2023 |
|
|
2022 |
|
| Tangible Common
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity (GAAP) |
|
$ |
459,886 |
|
|
$ |
446,652 |
|
|
$ |
444,847 |
|
|
$ |
443,399 |
|
|
$ |
432,452 |
|
|
|
$ |
459,886 |
|
|
$ |
432,452 |
|
|
Less goodwill and other intangible assets |
|
|
107,148 |
|
|
|
107,792 |
|
|
|
108,439 |
|
|
|
109,114 |
|
|
|
109,772 |
|
|
|
|
107,148 |
|
|
|
109,772 |
|
|
Tangible common equity (Non-GAAP) |
|
$ |
352,738 |
|
|
$ |
338,860 |
|
|
$ |
336,408 |
|
|
$ |
334,285 |
|
|
$ |
322,680 |
|
|
|
$ |
352,738 |
|
|
$ |
322,680 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Average Tangible
Common Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders' equity (GAAP) |
|
$ |
449,526 |
|
|
$ |
445,432 |
|
|
$ |
444,283 |
|
|
$ |
432,382 |
|
|
$ |
420,037 |
|
|
|
$ |
442,960 |
|
|
$ |
423,252 |
|
|
Less average goodwill and other intangible assets |
|
|
107,551 |
|
|
|
108,194 |
|
|
|
108,851 |
|
|
|
109,537 |
|
|
|
110,206 |
|
|
|
|
108,527 |
|
|
|
106,834 |
|
|
Average tangible common equity (Non-GAAP) |
|
$ |
341,975 |
|
|
$ |
337,238 |
|
|
$ |
335,432 |
|
|
$ |
322,845 |
|
|
$ |
309,831 |
|
|
|
$ |
334,433 |
|
|
$ |
316,418 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible Book Value
per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share (GAAP) |
|
$ |
27.07 |
|
|
$ |
26.28 |
|
|
$ |
26.16 |
|
|
$ |
26.08 |
|
|
$ |
25.59 |
|
|
|
$ |
27.07 |
|
|
$ |
25.59 |
|
|
Adjustment due to goodwill and other intangible assets |
|
|
(6.31 |
) |
|
|
(6.34 |
) |
|
|
(6.38 |
) |
|
|
(6.42 |
) |
|
|
(6.50 |
) |
|
|
|
(6.31 |
) |
|
|
(6.50 |
) |
|
Tangible book value per common share (Non-GAAP)1 |
|
$ |
20.76 |
|
|
$ |
19.94 |
|
|
$ |
19.78 |
|
|
$ |
19.66 |
|
|
$ |
19.09 |
|
|
|
$ |
20.76 |
|
|
$ |
19.09 |
|
| |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Tangible Common Equity
to Tangible Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets (GAAP) |
|
$ |
4,829,387 |
|
|
$ |
4,797,171 |
|
|
$ |
4,745,800 |
|
|
$ |
4,769,805 |
|
|
$ |
4,637,498 |
|
|
|
$ |
4,829,387 |
|
|
$ |
4,637,498 |
|
|
Less goodwill and other intangibles |
|
|
107,148 |
|
|
|
107,792 |
|
|
|
108,439 |
|
|
|
109,114 |
|
|
|
109,772 |
|
|
|
|
107,148 |
|
|
|
109,772 |
|
|
Tangible Assets (Non-GAAP) |
|
$ |
4,722,239 |
|
|
$ |
4,689,379 |
|
|
$ |
4,637,361 |
|
|
$ |
4,660,691 |
|
|
$ |
4,527,726 |
|
|
|
$ |
4,722,239 |
|
|
$ |
4,527,726 |
|
|
Tangible common equity to tangible assets (Non-GAAP) |
|
|
7.47 |
% |
|
|
7.23 |
% |
|
|
7.25 |
% |
|
|
7.17 |
% |
|
|
7.13 |
% |
|
|
|
7.47 |
% |
|
|
7.13 |
% |
1Tangible book value per share (Non-GAAP) is computed by
dividing total stockholder's equity, less goodwill and other
intangible assets, by common shares outstanding.
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