Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of earliest event reported: January 22, 2024

SMARTFINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Tennessee		001-37661		62-1173944
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)


5401 Kingston Pike, Suite 600
Knoxville, Tennessee		37919
(Address of Principal Executive Offices)		(Zip Code)

(865) 437-5700

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of Exchange on which Registered
Common Stock, par value $1.00 per share			SMBK			New York Stock Exchange

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the

Exchange Act. ☐

Item 2.02

Results of Operations and Financial Condition.

On January 22, 2024, SmartFinancial, Inc. (“SmartFinancial”) issued a press release (the “Press Release”) reporting earnings results for its fourth quarter ending December 31, 2023. A copy of the Press Release is attached hereto as Exhibit 99.1.

In accordance with General Instructions B.2 of Form 8K, the information in Item 2.02 of this report (including Exhibit 99.1) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01

Regulation FD Disclosure.

SmartFinancial is filing an investor slide presentation that it intends to review in conjunction with its earnings release conference call on January 23, 2024. The slides are attached hereto as Exhibit 99.2.

In accordance with General Instructions B.2 of Form 8K, the information in Item 7.01 of this report (including Exhibit 99.2) shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01		Financial Statements and Exhibits

Exhibit No.		Description
99.1		Press release announcing fourth quarter 2023 financial results dated January 22, 2024
99.2		Fourth quarter 2023 investor presentation
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	SMARTFINANCIAL, INC.

Date: January 22, 2024
	/s/ William Y. Carroll, Jr.
	William Y. Carroll, Jr.
	President & Chief Executive Officer

Exhibit 99.1

4Q 2023

SmartFinancial Announces Results for the Fourth Quarter 2023

KNOXVILLE, TN – January 22, 2024 - 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.

¹ Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP reconciliation

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 Subsidiary

Condensed 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	%

¹Includes 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.

²Yields 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 Subsidiary

Condensed 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	%

¹Includes average balance of $2.8 million and $14.1 million in PPP loans for the year ended December 31, 2023, and 2022, respectively.

²Yields 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 Subsidiary

Condensed 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 Subsidiary

Condensed 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 Subsidiary

Condensed 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.

Exhibit 99.2

1 INVESTOR CALL 4Q 2023 January 23, 2024, 10:00am ET Webcast: www.smartbank.com (Investor Relations) Audio Only: 1 -833 -470 -1428 Access Code: 197280 Miller Welborn Chairman of the Board Billy Carroll President & CEO Ron Gorczynski CFO

DISCLOSURES 2 Forward-Looking Statements This presentation 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 on SmartFinancial Inc.’s (“SmartFinancial”) business and financial results and conditions, 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 and reputational risk associated with historic acquisition activity; (2) the risk that cost savings and revenue synergies from recently completed acquisitions may not be realized or may take longer than anticipated to realize; (3) disruption from recently completed acquisitions with customer, supplier, employee, or other business relationships; (4) our ability to successfully integrate the businesses acquired as part of previous acquisitions with the business of SmartBank; (5) changes in management’s plans for the future; (6) prevailing, or changes in, economic or political conditions, particularly in our market areas, including the effects of declines in the real estate market, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; (7) increased technology and cybersecurity risks, including generative artificial intelligence risks; (8) credit risk associated with our lending activities; (9) changes in loan demand, real estate values, or competition; (10) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; (11) changes in accounting principles, policies, or guidelines; (12) changes in applicable laws, rules, or regulations; (13) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of SmartFinancial’s participation in and execution of government programs related to the COVID-19 pandemic and related variants; (14) 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; (15) 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; (16) 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 (17) 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. 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) operating revenue, (ii) operating earnings, (iii) operating 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) tangible common equity; (ix) average tangible common equity; (x) tangible book value; (xi) operating pre-provision net revenue earnings; (xii) operating noninterest income; (xiii) operating noninterest expense; (xiv) tangible assets; and ratios derived therefrom, in its analysis of the company's performance. Operating revenue includes the earnings from net interest income and operating noninterest income (Non-GAAP). Operating earnings excludes the following from net income: securities gains and losses, merger related and restructuring expenses, and the income tax effect of adjustments. Operating return on average assets is the annualized operating earnings (Non-GAAP) divided 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. Tangible common equity and average tangible common equity exclude goodwill and other intangible assets from shareholders’ equity and average shareholders’ equity. Tangible book value excludes goodwill and other intangible assets less shareholders’ equity divided by common shares outstanding. Operating pre-provision, net-revenue earnings is net interest income plus operating noninterest income (Non-GAAP) less operating noninterest expense (Non-GAAP). Operating noninterest income excludes the following from noninterest income: securities gains and losses. 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 assets 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.

'21 -'23 2021Y 2022Y 2023Y CAGR3 Total Loans and Leases (Excl. HFS & PPP) $ 2,641.1 $ 3,253.6 $ 3,444.5 14% Annual Net Balance Loan Growth 547.8 612.5 190.8 Total Deposits 4,021.9 4,077.1 4,267.9 3% Loan / Deposit Ratio 66% 80% 81% Operating Revenue1 137.3 165.1 159.2 8% Operating PPNR Earnings1 49.6 59.3 47.1 (3%) Operating Noninterest Income1 23.9 27.6 29.1 10% Operating Noninterest Income (Excl. Mtg. Bking)1 19.9 26.0 28.1 19% Operating Return on Average Assets1 0.98% 0.92% 0.72% Operating Return on Average Tang. Common Equity1 12.8% 13.7% 10.3% Operating Efficiency Ratio1 63.6% 63.8% 70.3% Diluted Operating Earnings Per Share1 $ 2.39 $ 2.57 $ 2.03 (8%) Tangible Book Value Per Share (Excl. AOCI)1,2 $ 19.17 $ 21.18 $ 22.29 8% FINANCIAL HIGHLIGHTS: 3 SMARTBANK 2023: A YEAR IN REVIEW $ in Millions, except per share data BALANCE SHEET STRENGTH DESPITE TURBULENT 2023 OPERATING ENVIRONMENT PPNR CHALLENGED BY AGGRESSIVE RATE ENVIRONMENT NII IMPROVEMENT INITIATIVES BOLSTER EARNINGS ANOTHER YEAR OF TANGIBLE BOOK VALUE GROWTH PROFITABILITY UNDER PRESSURE DURING 2023; 2024 RECOVERY UNDERWAY BALANCE SHEET / NON-GAAP REVENUE METRICS: NON-GAAP PERFORMANCE METRICS: OPERATIONAL ACHIEVEMENTS: 1) Non-GAAP financial measure - for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix 2) AOCI: Accumulated Other Comprehensive Income 3) CAGR: Compound Annualized Growth Rate ❖ SMARTFINANCIAL (SMBK) LISTING CHANGED TO NYSE ❖ TREASURY MANAGEMENT PRODUCT SUITE REDESIGN ❖ ENHANCED CUSTOM PROFITABILITY SYSTEM IMPLEMENTED ❖ SMARTBANK VOTED TOP WORKPLACE FOR 7 TH YEAR IN A ROW ❖ CHIEF BANKING OFFICER POSITION ADDED IN FOURTH QUARTER 2023 ❖ NEW DEPOSIT, LOAN AND MORTGAGE OPERATIONS MANAGEMENT

$0.77 $0.12 $0.37 $0.76 $0.43 $0.41 4Q22 3Q23 4Q23 GAAP EPS Diluted Operating EPS $25.59 $26.28 $27.07 $19.09 $19.94 $20.76 4Q22 3Q23 4Q23 BV Per Share TBV Per Share 1.11% 0.17% 0.52% 1.10% 0.60% 0.57% 4Q22 3Q23 4Q23 GAAP ROAA Operating ROAA 16.7% 2.4% 7.2% 16.5% 8.5% 8.0% 4Q22 3Q23 4Q23 GAAP ROATCE Operating ROATCE AOCI Impact 4 Unless otherwise indicated, financial data as of or for the three months ended 12/31/23 1) Non-GAAP financial measure - for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix 2) QoQ: Quarter-over-Quarter 3) “Loans” for purposes of this presentation includes all SmartFinancial loans and leases 4) AOCI: Accumulated Other Comprehensive Income QUARTERLY HIGHLIGHTS: FOURTH QUARTER 2023 6.2% QoQ2 Annualized Tang. Book Value Per Share Growth (Excluding AOCI)1,4 $0.41 Diluted Operating EPS1 0.57% Operating Return on Average Assets1 8.0% Operating Return Average Tang. Common Equity1 73% Operating Efficiency Ratio1 2.0% QoQ Annualized Deposit Growth 8.1% QoQ Annualized Organic Loan3 Growth 81% Loan / Deposit Ratio 0.20% Non-Performing Assets / Assets $4.8 Billion in Total Assets Diluted Earnings Per Share Book Value Per Share Return on Average Assets Return on Average Tangible Common Equity 1 1 1 1 1,4 $22.29 $20.76 $21.95 $19.94 $19.09 $21.18

5 SMARTFINANCIAL: EXPANDING SOUTHEAST FRANCHISE $4.8 Billion in Total Assets $3.4 Billion in Total Loans We are building a culture where Associates thrive and are empowered to be leaders. The core values that we have established as a company help us operate in unison and have become a critical part of our culture. Our Associates are key to SmartBank’s success. $4.3 Billion in Total Deposits 42 Total Branches Nashville Knoxville Huntsville Tuscaloosa Mobile Pensacola Birmingham Auburn Tallahassee Dothan Montgomery SmartBank Branch Offices Chattanooga Balance sheet and branch count represent 6/30/23 balances 1) Knox News Sentinel Top Workplaces survey Panama City 1

$2.0 $2.1 $2.4 $2.4 $2 $2 $2 $2 $2 $2 $2 12/31/20 12/31/21 12/31/22 12/31/23 SMBK Loans $2.5 $3.5 $3.4 $3.4 $- $1 $1 $2 $2 $3 $3 $4 $4 $5 12/31/20 12/31/21 12/31/22 12/31/23 SMBK Deposits $0.4 $0.6 $0.9 $1.1 $- $0 $0 $1 $1 $1 $1 12/31/20 12/31/21 12/31/22 12/31/23 SMBK Loans $0.3 $0.5 $0.7 $0.9 $- $0 $0 $0 $0 $1 $1 $1 $1 $1 $1 12/31/20 12/31/21 12/31/22 12/31/23 SMBK Deposits SmartBank Branch Offices Expanding Market Area Legacy Market Area Urban area Density MARKET AREA: TARGETING INDUSTRY RICH GROWTH MARKETS 6 ► Total Population: 2.8 Million ► Total Deposits: $70 Billion ► Median Income: $64 Thousand Legacy Markets 1) Legacy Markets include Chattanooga, TN, Clarke, AL, Cleveland, TN, Crossville, TN, Cookeville, TN, Fentress, TN, Huntsville, AL, Knoxville, TN, Sevierville, TN, Tullahoma, TN and Tuscaloosa, AL MSAs 2) Expanding Markets include Auburn, AL, Birmingham, AL, Dothan, AL, Fairhope, AL, Fort Walton/Destin, FL, Montgomery, AL, Mobile, AL, Nashville, TN, Panama City, FL, Pensacola, FL and Tallahassee, FL Source: S&P Market Intelligence; https://www.forbes.com/best-places-for-business Note: Expanding and Legacy market statistics based on the weighted average of the MSAs included in each area based on population; Legacy market area includes settlement and corporate balances Expanding Markets ► Total Population: 6.0 Million ► Total Deposits: $207 Billion ► Median Income: $69 Thousand Legacy Markets1 : Strong Relationships / Deep Market Penetration Expanding Markets2 : Building Talent / Growing Brand Awareness Forbes Top 200 Best Places for Business and Careers Knoxville: #86 Huntsville: #93 Chattanooga: #116 Mobile: #184 Forbes Top 200 Best Places for Business and Careers Nashville: #15 Tallahassee: #103 Pensacola: #105 Birmingham: #165 Montgomery: #191 CAGR: 6% $ in Billions, unless otherwise indicated CAGR: 11% CAGR: 39% CAGR: 43%

$1,775 $1,897 $2,382 $2,693 $3,254 $3,282 $3,338 $3,379 $3,444 5.20% 5.39% 5.52% 5.61% 3. 00% 4. 00% 5. 00% 6. 00% 7. 00% 8. 00% 9. 00% 10. 00% $- $500 $1, 000 $1, 500 $2, 000 $2, 500 $3, 000 $3, 500 $4, 000 2018Y 2019Y 2020Y 2021Y 2022Y 1Q23 2Q23 3Q23 4Q23 7 LOAN PORTFOLIO: SOLID MARKETS PROVIDING OPPORTUNITY Total Loans CAGR of 14% Since 2018 $ in Millions, unless otherwise indicated Average Loan Yield (excluding accretion & fees) Loan Composition History of Consistent Organic Growth 24% 23% 23% 23% 23% 27% 27% 26% 26% 27% 17% 17% 18% 18% 19% 12% 12% 12% 11% 9% 18% 18% 19% 19% 19% $3,254 $3,282 $3,338 $3,379 $3,444 4Q22 1Q23 2Q23 3Q23 4Q23 CRE, OO CRE, NOO C&I C&D Consumer RE Leases & Other

1-4 Family (NOO) 24% Resi/Comm Land Dev. 11% Resi/Comm Land 15% CRE (OO) 18% CRE (NOO) 12% Multifamily 21% Hotel & Hospitality 33% Retail Space 13% Office Space 12% Misc. 10% 8 LOAN CONCENTRATION: WELL BALANCED EXPOSURE Non-Owner Occupied CRE Exposure By Segment Highly Diversified with Seasoned Client Base Construction & Development Exposure By Type1 Closely Monitored with No Concentration Concerns 1) 1-4 Family (OO) includes owner-occupied primary and secondary residence construction loans; 1-4 Family (NOO) includes speculative and investment property residential construction loans; Resi/Comm Land Dev. includes primary, secondary, investment and commercial land development loans; Resi/Comm Land includes residential and commercial improved and unimproved land loans; Multifamily includes 5 or more residential property loans; CRE (OO) includes construction loans for owner-occupied commercial real estate including hotel & hospitality, retail, office, industrial & warehouse, self storage and other commercial real estate; CRE (NOO) includes construction loans for non owner-occupied commercial real estate including hotel & hospitality, retail, office, industrial & warehouse, self storage and other commercial real estate 2) Outstanding principal balance shown $949 Million2 - 28% of Total Loans $328 Million2 - 10% of Total Loans Office Space Portfolio Loan Average: $1.3 Million / 1.75x DCR / 56% LTV

$4,808 $5,021 $5,712 $5,881 $9,735 0.10% 0.11% 0.12% 0.12% 0.20% - 0.10% 0.10% 0.30% 0.50% 0.70% 0.90% 1.10% 1.30% 1.50% $- $2, 000 $4, 000 $6, 000 $8, 000 $10, 000 $12, 000 $14, 000 4Q22 1Q23 2Q23 3Q23 4Q23 Nonperforming Loans OREO & Other Repos Nonperforming Assets / Total Assets 299% 287% 285% 285% 280% 94% 88% 88% 83% 72% 0% 50% 100% 150% 200% 250% 150% 170% 190% 210% 230% 250% 270% 290% 310% 330% 350% 4Q22 1Q23 2Q23 3Q23 4Q23 CRE Loans / Capital C&D Loans / Capital $6,744 $8,343 $8,438 $9,094 $13,828 0.21% 0.25% 0.25% 0.27% 0.40% - 0.10% 0.10% 0.30% 0.50% 0.70% 0.90% 1.10% 1.30% 1.50% 1.70% $2, 000 $4, 000 $6, 000 $8, 000 $10, 000 $12, 000 $14, 000 $16, 000 $18, 000 $20, 000 4Q22 1Q23 2Q23 3Q23 4Q23 Total Delinquent & Nonaccrual Loans & Leases Total Delinquent & Nonaccrual Loans & Leases / Total Loans & Leases 0.22% 0.26% 0.26% 0.31% 0.37% 0.03% 0.03% -0.01% 0.04% 0.04% - 0.10% 0.00% 0.10% 0.20% 0.30% 0.40% 0.50% 4Q22 1Q23 2Q23 3Q23 4Q23 Classified Loans and Leases / Total Loans & Leases Net Chargeoffs $23,334 $32,279 $32,747 $33,687 $35,066 0.72% 0.98% 0.98% 1.00% 1.02% 0.00% 0.50% 1.00% 1.50% 2.00% $- $2, 000 $4, 000 $6, 000 $8, 000 $10, 000 $12, 000 $14, 000 $16, 000 $18, 000 $20, 000 $22, 000 $24, 000 $26, 000 $28, 000 $30, 000 $32, 000 $34, 000 $36, 000 $38, 000 $40, 000 $42, 000 $44, 000 $46, 000 $48, 000 $50, 000 4Q22 1Q23 2Q23 3Q23 4Q23 Allowance for Credit Losses (ACL) ACL / Loans HFI 9 Credit Quality Delinquent and Nonaccruals / Total Loans Nonperforming Assets Commercial Real Estate Concentration ASSET QUALITY: STRONG UNDERWRITING PAYS DIVIDENDS $ in Thousands, unless otherwise indicated Allowance Reconciliation

26% 23% 24% 22% 21% 24% 23% 22% 23% 24% 39% 42% 41% 42% 42% 11% 12% 13% 13% 13% $4,077 $4,230 $4,200 $4,247 $4,268 4Q22 1Q23 2Q23 3Q23 4Q23 Noninterest Demand Interest-Bearing Demand Money Market and Savings Time Deposits $1,922 $2,047 $2,805 $4,022 $4,077 $4,230 $4,200 $4,247 $4,268 1.56% 1.89% 2.20% 2.35% 0. 00% 1. 00% 2. 00% 3. 00% 4. 00% 5. 00% $- $500 $1, 000 $1, 500 $2, 000 $2, 500 $3, 000 $3, 500 $4, 000 $4, 500 2018Y 2019Y 2020Y 2021Y 2022Y 1Q23 2Q23 3Q23 4Q23 $3,444 10 DEPOSIT PORTFOLIO: DEFENDING DEPOSIT MARKET SHARE Total Deposits Loans to Deposits Ratio of 81% $ in Millions, unless otherwise indicated Average Total Deposit Cost Deposit Composition Overall Stability Despite Some Mix Shift

$270 $157 $2 $34 $19 $68 $43 $67 $33 $2 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 UST/Agency MBS Fixed ARM CMO Fixed CMO Float Agen CMBS Small Bus Municipal Corporate CDs $110 $60 $16 $11 $9 $11 $11 $11 24% 27% 30% 33% $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 0% 10% 20% 30% 40% 50% 60% Q1 '24 Q3 '24 Q1 '25 Q3 '25 Quarterly Principal Cumulative Principal Returned as % of Total 11 SECURITIES DETAIL: SIGNIFICANT CASHFLOW RETURN 1H ‘24 $ in Millions, unless otherwise indicated Portfolio Summary Principal Cashflow Schedule ~$170 Million Maturing by Q2 ‘24 Portfolio Mix by Par Value Risk Adverse Portfolio Designed for Liquidity $720 Million Book Value 2.73% Book Yield ($51) Million Unrealized Loss • ($32) Million in Available-for-Sale Securities (AFS) • ($19) Million in Held-to-Maturity (HTM) 4.7 Year Average Life 3.2 Year Effective Duration 62% / 38% (AFS / HTM)

12 REPRICING SCHEDULE: YIELD ENHANCEMENT ON HORIZON $109 Million in Fixed Rate Loans Yielding 5.49% Maturing by 2024 Year End $114 Million in Adjustable-Rate Loans Yielding 5.88% Maturing or Repricing by 2024 Year End $806 Million in Variable Floating Rate Loans Yielding 7.86% Repricing Monthly $196 Million in Investment Portfolio Principal Cash Flow Yielding 2.00% Returning by 2024 Year End FYE 2026 & ($ in millions) 1Q24 2Q24 3Q24 4Q24 2025 Beyond Loan Repricing Schedule: Fixed Rate Loans $ 35 $ 18 $ 30 $ 26 $ 181 $ 1,700 Weighted Average Yield 5.97% 5.31% 5.36% 5.13% 4.43% 4.53% Adjustable Rate Loans $ 22 $ 45 $ 21 $ 25 $ 57 $ 477 Weighted Average Yield 6.87% 4.86% 6.63% 6.20% 4.95% 4.82% Investment Cashflow Schedule: Principal Cashflow $ 110 $ 60 $ 16 $ 11 $ 42 $ 459 Yield Roll-Off 1.52% 2.00% 3.73% 4.43% 3.54% 3.01%

106% 97% Peer Average SMBK 90% 81% Peer Average SMBK 13 LIQUIDITY OVERVIEW: PRUDENTLY MANAGING LIQUIDITY 1) Peer average based on most recently reported period results for each peer; peers include major exchange traded banks in the Southeast with assets between $2.0 billion and $8.0 billion 2) FRB discount window and Bank Term Funding Program borrowing capacity shown as of December 31, 2023 Source: S&P Global Loan + Securities / Deposit Ratio (Most Recent Quarter Period End) Loan / Deposit Ratio (Most Recent Quarter Period End) Other Liquidity Sources Ample Access to a Variety of Funding Robust Liquidity on Hand $1.5 Billion in Untapped Liquidity Sources $632 Million in On-Balance Sheet Liquidity 1.4x Liquidity to Uninsured Deposit Ratio 1 1 $ in Millions, unless otherwise indicated Total Amount Net Available Used Availability Current On-Balance Sheet: Cash & Cash Equiv. $352 $0 $352 Unpledged Securities 280 0 280 Available Sources of Liquidity: Fed Funds 98 0 98 FHLB 574 104 470 FRB 283 0 283 HC LoC 35 8 27 Total Liquidity $1,622 $112 $1,510 2

4Q22 1Q23 2Q23 3Q23 4Q23 Cash Yield 3.81% 4.77% 4.02% 5.26% 5.52% Sec. Yield (AFS/HTM)1 2.15% 2.11% 2.30% 2.35% 2.79% Loans (less Accr. & Fees) 4.81% 5.20% 5.39% 5.52% 5.61% Loan Accr. & Fees 0.24% 0.37% 0.12% 0.10% 0.07% Loan Yield (incl. Accr. & Fees) 5.05% 5.57% 5.51% 5.61% 5.68% IE Asset Yield 4.41% 4.88% 4.82% 4.99% 5.22% NIM (FTE) 3.51% 3.31% 2.93% 2.81% 2.86% $266 $307 $239 $400 $352 $770 $845 $824 $667 $690 16.6% 17.7% 17.4% 13.9% 14.3% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% $- $200 $400 $600 $800 $1, 000 $1, 200 4Q22 1Q23 2Q23 3Q23 4Q23 Cash and Cash Equiv. Securities (AFS/HTM) Securities (AFS/HTM) / Total Assets $37,612 $35,982 $31,575 $31,006 $31,517 $6,981 $6,925 $7,130 $7,492 $7,579 $44,593 $42,907 $38,705 $38,498 $39,096 3.51% 3.31% 2.93% 2.81% 2.86% $18, 000 $23, 000 $28, 000 $33, 000 $38, 000 $43, 000 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 4Q22 1Q23 2Q23 3Q23 4Q23 Net Interest Income Operating Noninterest Income Net Interest Margin (FTE) 14 LIQUIDITY MANAGEMENT: NAVIGATING MARGIN PRESSURE Cash and Securities Margin / Operating Revenue2 1) Based on the weighted average of the AFS/HTM securities portfolio. Yields related to investment securities exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0% 2) Non-GAAP financial measure - for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix 2 $ in Millions, unless otherwise indicated $ in Thousands, unless otherwise indicated

$8,047 , 6.3% $4,965 , 3.9% $(4,725), -3.7% Interest Income % Change Shock -200bps Shock -100bps Shock +100bps $4,502 , 3.5% $2,151 , 1.7% $(3,637), -2.9% Interest Income % Change Ramp -200bps Ramp -100bps Ramp +100bps $1,990 58% $626 18% $829 24% Fixed Rate LT Variable ST Variable 15 INTEREST RATE SENSITIVITY Fixed vs. Variable Rate Loans Static Shock / Rate Ramp Analysis1 1) Based on 12-month static rate shock and ramp analysis as of 12/31/23. These estimates of changes in SmartFinancial’s net interest income require us to make certain assumptions including loan and mortgage-related investment prepayment speeds, reinvestment rate, deposit maturities and decay rates. These assumptions are inherently uncertain and, as a result, we cannot precisely predict the impact of changes in interest rates on net interest income. Although our analysis provides an indication of our interest rate risk exposure at a particular point in time, such estimates are not intended to, and do not, provide a precise forecast of the effect of changes in market interest rates and will differ from actual results $2.0 Billion Fixed Rate Loans $1.4 Billion Variable Rate Loans • $829 Million Short-Term Variable Rate (Resetting within 1 - 3 Months) • $626 Million Long-Term Variable Rate (Resets > 3 Months) $ in Millions, unless otherwise indicated $ in Thousands, unless otherwise indicated

$6,981 $6,925 $7,130 $7,492 $7,579 4Q22 1Q23 2Q23 3Q23 4Q23 Service Charges on Deposit Accounts Mortgage Banking Income Investment Services Income Insurance Commissions Interchange Fees Other Noninterest Income 16 NONINTEREST REVENUE DETAILS: GROWING FEE INCOME Operating Noninterest Income1 Focused on Recurring Fee Income 1) Non-GAAP financial measure - for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix Differentiated Revenue Streams Building a Family of Diversified Revenue Generators $ in Thousands, unless otherwise indicated

61% 64% 71% 74% 73% 4Q22 1Q23 2Q23 3Q23 4Q23 Operating Efficiency Ratio $27,461 $27,529 $27,410 $28,406 $28,770 4Q22 1Q23 2Q23 3Q23 4Q23 Salaries & Benefits Occupancy & Equipment Data Processing & Technology Professional Services Amortization of Intangibles Other Noninterest Expense 17 1) Non-GAAP financial measure - for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix OPERATING EXPENSE: FOCUS ON EXPENSE CONTAINMENT Operating Efficiency Ratio1 Operating Noninterest Expense1 1 $ in Thousands, unless otherwise indicated

7.1% 7.2% 7.3% 7.2% 7.5% 4Q22 1Q23 2Q23 3Q23 4Q23 9.7% 10.0% 10.1% 10.1% 10.2% 4Q22 1Q23 2Q23 3Q23 4Q23 8.0% 7.9% 8.2% 8.1% 8.3% 4Q22 1Q23 2Q23 3Q23 4Q23 11.4% 11.8% 11.9% 11.9% 11.9% 4Q22 1Q23 2Q23 3Q23 4Q23 $14.64 $16.82 $17.92 $19.26 $19.09 $20.76 $14.84 $16.80 $17.77 $19.17 $21.18 $22.29 $8. 00 $10. 00 $12. 00 $14. 00 $16. 00 $18. 00 $20. 00 $22. 00 $24. 00 2018Y 2019Y 2020Y 2021Y 2022Y 4Q23 TBV Per Share Adj. TBV Per Share (Ex. AOCI) CAPITAL: WELL CAPITALIZED – BUILDING BOOK VALUE 1) Non-GAAP financial measure - for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix 18 Note: Capital ratio data as of the most recent period ended 12/31/23 TCE / TA1 CET1 Ratio Total Capital Ratio Leverage Ratio Basel III Regulatory Capital Minimum To Be Considered “Well Capitalized” Building Shareholder Value Tangible Book Value Per Share (TBVPS)1 $7.45 TBVPS1 Created 2018 – 2023 (Excluding Accumulated Other Comprehensive Income) $0.08 2023 Per Share Quarterly Dividend 5% Well Capitalized 10% Well Capitalized 6.5% Well Capitalized 1 1

WHY SMARTBANK: INVESTMENT HIGHLIGHTS 19 Franchise Scarcity Value – Building Southeast Density Engaged Management Team Stable Markets Experiencing Population Expansion Valuable Deposit Base Growing Business Lines with Revenue Diversification Solid Credit Quality and Underwriting History of Defending Book Value and Delivering Shareholder Value $

APPENDIX 20

21 Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix; percentage change may differ due to rounding INCOME STATEMENT: DETAILED FOURTH QUARTER RESULTS 3Q23 4Q22 ($ in thousands, except per share data) 4Q23 3Q23 4Q22 % Chg. % Chg. Net Interest Income $ 31,517 $ 31,006 $ 37,612 2% (16%) Provision for Loan & Lease losses 1,571 795 788 Noninterest Income 7,579 691 7,125 997% 6% Noninterest Expense 29,695 28,516 27,416 4% 8% Income Tax Expense 1,640 319 3,529 Net Income (GAAP) $ 6,190 $ 2,067 $ 13,004 199% (52%) Non-GAAP Reconciliations Noninterest Income - 6,801 (144) Noninterest Expense 925 110 (45) Income Tax Effect Of Adjustments (239) (1,785) 49 Operating Earnings (Non-GAAP) $ 6,876 $ 7,193 $ 12,864 (4%) (47%) Operating PPNR Earnings (Non-GAAP) $ 10,326 $ 10,092 $ 17,132 2% (40%) 3Q23 4Q22 Non-GAAP Performance Metrics 4Q23 3Q23 4Q22 % Chg. % Chg. Diluted Operating Earnings Per Share $ 0.41 $ 0.43 $ 0.76 (4%) (47%) Tangible Book Value Per Common Share $ 20.76 $ 19.94 $ 19.09 4% 9% Operating Return on Average Assets 0.57% 0.60% 1.10% Operating PPNR Return on Average Assets 0.86% 0.84% 1.46% Operating Return on Average Tang. Common Equity 8.0% 8.5% 16.5% Operating Efficiency Ratio 73.4% 73.6% 61.4% 4Q23 vs. 4Q23 vs.

NON-GAAP RECONCILIATION 22 1. Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets. 2. Operating PPNR return on average assets (Non-GAAP) is the annualized operating PPNR earnings (Non-GAAP) divided by average assets. 3. Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP). 4. Operating return on average shareholders’ equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average shareholder equity. 5. Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP). $ in Thousands, unless otherwise indicated 2023Y 2022Y 2021Y 4Q23 3Q23 2Q23 1Q23 4Q22 Operating Earnings Net Income (GAAP) $ 28,593 $ 43,022 $ 34,790 $ 6,190 $ 2,067 $ 8,836 $ 11,500 $ 13,004 Noninterest Income: Securities (Gains) Losses 6,801 (144) (45) - 6,801 - - (144) Noninterest Expenses: Donation of a Former Branch Location 250 - - 250 - - - - Accruals For Pending Litigation 675 - - 675 - - - - Merger Related And Restructuring Expenses 110 562 3,701 - 110 - - (45) Income Taxes: Income Tax Effect Of Adjustments (2,024) (108) (944) (239) (1,785) - - 49 Operating Earnings (Non-GAAP) $ 34,405 $ 43,332 $ 37,502 $ 6,876 $ 7,193 $ 8,836 $ 11,500 $ 12,864 Operating Earnings Per Common Share (Non-GAAP): Basic $ 2.05 $ 2.59 $ 2.41 $ 0.41 $ 0.43 $ 0.53 $ 0.69 $ 0.77 Diluted 2.03 2.57 2.39 0.41 0.43 0.52 0.68 0.76 Operating Noninterest Income Noninterest Income (GAAP) $ 22,325 $ 27,715 $ 23,949 $ 7,579 $ 691 $ 7,130 $ 6,925 $ 7,125 Securities (Gains) Losses 6,801 (144) (45) - 6,801 - - (144) Operating Noninterest Income (Non-GAAP) $ 29,126 $ 27,571 $ 23,904 $ 7,579 $ 7,492 $ 7,130 $ 6,925 $ 6,981 Mortgage Banking Income (1,040) (1,552) (4,040) (227) (309) (332) (172) (77) Operating Noninterest Income Excluding Mtg. Banking (Non-GAAP) $ 28,086 $ 26,019 $ 19,864 $ 7,352 $ 7,183 $ 6,798 $ 6,753 $ 6,904 Operating Noninterest Expense Noninterest Expense (GAAP) $ 113,150 $ 106,290 $ 91,391 $ 29,695 $ 28,516 $ 27,410 $ 27,529 $ 27,416 Donation of a Former Branch Location (250) - - (250) - - - - Accruals For Pending Litigation (675) - - (675) - - - - Merger Related And Restructuring Expenses (110) (562) (3,701) - (110) - - 45 Operating Noninterest Expense (Non-GAAP) $ 112,115 $ 105,728 $ 87,690 $ 28,770 $ 28,406 $ 27,410 $ 27,529 $ 27,461 Operating Revenue Net Interest Income (GAAP) $ 130,080 $ 137,501 $ 113,394 $ 31,517 $ 31,006 $ 31,575 $ 35,982 $ 37,612 Operating Noninterest Income (Non-GAAP) 29,126 27,571 23,904 7,579 7,492 7,130 6,925 6,981 Operating Revenue (Non-GAAP) 159,206 165,072 137,298 39,096 38,498 38,705 42,907 44,593 Operating Pre-Provision, Net Revenue ("PPNR") Earnings Operating Revenue (Non-GAAP) $ 159,206 $ 165,072 $ 137,298 $ 39,096 $ 38,498 $ 38,705 $ 42,907 $ 44,593 Operating Noninterest Expense (Non-GAAP) (112,115) (105,728) (87,690) (28,770) (28,406) (27,410) (27,529) (27,461) Operating PPNR Earnings (Non-GAAP) $ 47,091 $ 59,344 $ 49,608 $ 10,326 $ 10,092 $ 11,295 $ 15,378 $ 17,132 Non-GAAP Return Ratios Operating Return On Average Assets (Non-GAAP)(1) 0.72% 0.92% 0.98% 0.57% 0.60% 0.75% 0.97% 1.10% Operating PPNR Return On Average Assets (Non-GAAP)(2) 0.99% 1.27% 1.29% 0.86% 0.84% 0.96% 1.30% 1.46% Return On Average Tangible Common Equity (Non-GAAP)(3) 8.55% 13.60% 11.84% 7.18% 2.43% 10.57% 14.45% 16.65% Operating Return On Average Shareholders' Equity (Non-GAAP)(4) 7.77% 10.24% 9.67% 6.07% 6.41% 7.98% 10.79% 12.15% Operating Return On Average Tangible Common Equity (Non-GAAP)(5) 10.29% 13.69% 12.77% 7.98% 8.46% 10.57% 14.45% 16.47% Operating Efficiency Ratio Efficiency Ratio (GAAP) 74.24% 64.33% 66.54% 75.95% 89.96% 70.82% 64.16% 61.28% Adjustment For Taxable Equivalent Yields (0.18%) (0.26%) (0.29%) (0.18%) (0.27%) (0.18%) (0.14%) (0.22%) Adjustment For Securities (Gains) Losses (3.17%) 0.06% (0.02%) - (15.89%) - - 0.20% Adjustment For Donation of a Former Branch Location (0.16%) - - (0.64%) - - - - Adjustment For Accruals For Pending Litigation (0.44%) - - (1.72%) - - - - Adjustment For Merger Expenses (0.03%) (0.34%) (2.64%) - (0.20%) - - 0.10% Operating Efficiency Ratio (Non-GAAP) 70.26% 63.79% 63.59% 73.41% 73.60% 70.64% 64.02% 61.36%

NON-GAAP RECONCILIATION 1. Tangible book value per share (Non-GAAP) is computed by dividing total stockholder’s equity, less goodwill and other intangible assets, by common shares outstanding. 23 2. Totals may not add due to rounding $ in Thousands, unless otherwise indicated 4Q23 3Q23 2Q23 1Q23 4Q22 Tangible Common Equity: Shareholders' Equity (GAAP) $ 459,886 $ 446,652 $ 444,847 $ 443,399 $ 432,452 Less Goodwill And Other Intangible Assets 107,148 107,792 108,439 109,114 109,772 Tangible Common Equity (Non-GAAP) $ 352,738 $ 338,860 $ 336,408 $ 334,285 $ 322,680 Average Tangible Common Equity: Average Shareholders' Equity (GAAP) $ 449,526 $ 445,432 $ 444,283 $ 432,382 $ 420,037 Less Goodwill And Other Intangible Assets 107,551 108,194 108,851 109,537 110,206 Average Tangible Common Equity (Non-GAAP) $ 341,975 $ 337,238 $ 335,432 $ 322,845 $ 309,831 Tangible Book Value Per Common Share: Book Value Per Common Share (GAAP) $ 27.07 $ 26.28 $ 26.16 $ 26.08 $ 25.59 Adjustment Due To Goodwill And Other Intangible Assets (6.31) (6.34) (6.38) (6.42) (6.50) Tangible Book Value Per Common Share (Non-GAAP)(1) $ 20.76 $ 19.94 $ 19.78 $ 19.66 $ 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 Less Goodwill And Other Intangibles 107,148 107,792 108,439 109,114 109,772 Tangible Assets (Non-GAAP) $ 4,722,239 $ 4,689,379 $ 4,637,361 $ 4,660,691 $ 4,527,726 Tangible Common Equity To Tangible Assets (Non-GAAP): 7.47% 7.23% 7.25% 7.17% 7.13% 4Q23 3Q23 2Q23 1Q23 4Q22 Tangible Common Equity (Excluding AOCI): Shareholders' Equity (GAAP) $ 459,886 $ 446,652 $ 444,847 $ 443,399 $ 432,452 Less Goodwill And Other Intangible Assets 107,148 107,792 108,439 109,114 109,772 Tangible Common Equity (Non-GAAP) $ 352,738 $ 338,860 $ 336,408 $ 334,285 $ 322,680 Less Adjustment Due to AOCI (Loss) (25,907) (34,156) (35,017) (28,620) (35,324) Tangible Common Equity (Excl. AOCI) (Non-GAAP) $ 378,645 $ 373,016 $ 371,425 $ 362,905 $ 358,004 Tangible Book Value Per Common Share (Excluding AOCI): Book Value Per Common Share (GAAP) $ 27.07 $ 26.28 $ 26.16 $ 26.08 $ 25.59 Adjustment Due To Goodwill And Other Intangible Assets (6.31) (6.34) (6.38) (6.42) (6.50) Tangible Book Value Per Common Share (Non-GAAP)(1) $ 20.76 $ 19.94 $ 19.78 $ 19.66 $ 19.09 Less Adjustment Due to AOCI (Loss) (1.52) (2.01) (2.06) (1.68) (2.09) Tangible Book Value Per Common Share (Excl. AOCI) (Non-GAAP)(1)(2) $ 22.29 $ 21.95 $ 21.84 $ 21.34 $ 21.18 2022Y 2021Y 2020Y 2019Y 2018Y Tangible Common Equity (Excluding AOCI): Shareholders' Equity (GAAP) $ 432,452 $ 429,430 $ 357,168 $ 312,747 $ 283,011 Less Goodwill And Other Intangible Assets 109,772 105,852 86,471 77,193 79,034 Tangible Common Equity (Non-GAAP) $ 322,680 $ 323,578 $ 270,697 $ 235,554 $ 203,977 Less Adjustment Due to AOCI (Loss) (35,324) 1,443 2,183 168 (2,765) Tangible Common Equity (Excl. AOCI) (Non-GAAP) $ 358,004 $ 322,135 $ 268,514 $ 235,386 $ 206,742 Tangible Book Value Per Common Share (Excluding AOCI): Book Value Per Common Share (GAAP) $ 25.59 $ 25.56 $ 23.64 $ 22.33 $ 20.31 Adjustment Due To Goodwill And Other Intangible Assets (6.50) (6.30) (5.72) (5.51) (5.67) Tangible Book Value Per Common Share (Non-GAAP)(1) $ 19.09 $ 19.26 $ 17.92 $ 16.82 $ 14.64 Less Adjustment Due to AOCI (Loss) (2.09) 0.09 0.14 0.01 (0.20) Tangible Book Value Per Common Share (Excl. AOCI) (Non-GAAP)(1)(2) $ 21.18 $ 19.17 $ 17.77 $ 16.80 $ 14.84

CONTACT 24 Billy Carroll President & CEO 865.868.0613 Billy.Carroll@smartbank.com Miller Welborn Chairman 423.385.3067 Miller.Welborn@smartbank.com 5401 Kingston Pike, Suite 600 Knoxville, TN 37919 Ron Gorczynski Chief Financial Officer 865.437.5724 Ron.Gorczynski@smartbank.com

Document and Entity Information	Jan. 22, 2024
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Jan. 22, 2024
Entity File Number	001-37661
Entity Registrant Name	SMARTFINANCIAL, INC.
Entity Incorporation, State or Country Code	TN
Entity Tax Identification Number	62-1173944
Entity Address, Address Line One	5401 Kingston Pike
Entity Address, Adress Line Two	Suite 600
Entity Address, City or Town	Knoxville
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37919
City Area Code	865
Local Phone Number	437-5700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $1.00
Trading Symbol	SMBK
Security Exchange Name	NYSE
Entity Emerging Growth Company	false
Entity Central Index Key	0001038773
Amendment Flag	false