SmartBank Announces Sale of Richmond Assets to Virginia-based First Bank
September 30 2021 - 4:01PM
SmartBank (the “Bank”), a subsidiary of SmartFinancial, Inc.
("SmartFinancial” or the "Company"; NASDAQ: SMBK), announced today
that it has entered into a Purchase and Assumption Agreement, dated
September 30, 2021, to sell a portfolio of loans and certain assets
associated with its branch office located in Richmond, Virginia to
Strasburg, Virginia-based First Bank.
The terms of the Purchase and Assumption
Agreement provide for First Bank to acquire approximately $83
million in loans and, substantially all fixed assets related to the
Bank’s Richmond branch, and First Bank will also assume the
facility lease. The Bank will receive a premium based on a specific
percentage of the loans sold, and fixed assets will be acquired at
book value. Additionally, the SmartBank employees in the Richmond
branch will transition to become employees of First Bank. SmartBank
will not transfer any deposit liabilities to First Bank in
connection with the transaction, and SmartBank has provided notice
to the relevant banking agencies that it intends to close the
branch effective December 31, 2021.
“While we recognize the opportunity in the
Richmond market area, we felt it necessary to focus on our
Southeastern footprint and particularly the new markets we’ve added
with our recent lift-outs,” said Billy Carroll, SmartBank President
& CEO. “We have tremendous momentum with our recently announced
team hires in Auburn, Dothan, Montgomery and Birmingham, Alabama,
and want to concentrate our expansion efforts there. First Bank is
a great organization and will serve those Richmond clients
well.”
The Company does not anticipate that the
divestiture will result in the accrual of material gains or charges
upon consummation. The sale of the loans and certain assets to
First Bank has been completed, and First Bank’s assumption of the
lease and acquisition of the remaining assets is expected to be
completed in the fourth quarter, subject to customary closing
conditions. The branch will continue operating as a SmartBank
branch until the branch is closed on December 31, 2021.
About SmartFinancial, Inc.
SmartFinancial, Inc., based in Knoxville,
Tennessee, is the bank holding company for SmartBank. Founded
in 2007, SmartBank is a full-service commercial bank, with branches
across Tennessee, Alabama and the Florida Panhandle. Recruiting the
best people, delivering exceptional client service, strategic
branching and acquisitions, 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.
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 “may,” “believe,” “expect,” “anticipate,” “intend,”
“will,” “should,” “plan,” “estimate,” “predict,” “continue” and
“potential” or the negative of these terms or other comparable
terminology. 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) risks related to the our
recently-completed acquisition of Sevier County Bancshares, Inc.
(“SCB”); (7) the risk that the anticipated benefits from the
proposed acquisition of SCB may not be realized in the time frame
anticipated; (8) changes in management’s plans for the future; (9)
prevailing, or changes in, economic or political conditions,
particularly in our market areas; (10) credit risk associated with
our lending activities; (11) changes in interest rates, loan
demand, real estate values, or competition; (12) changes in
accounting principles, policies, or guidelines; (13) changes in
applicable laws, rules, or regulations, including changes to
statutes, regulations or regulatory policies or practices as a
result of, or in response to COVID-19; (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; (15) the impact of the COVID-19
pandemic on the Company’s assets, business, cash flows, financial
condition, liquidity, prospects and results of operations; (16)
potential increases in the provision for loan losses resulting from
the COVID-19 pandemic; 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.
Investor Contacts |
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William Y. (“Billy”) Carroll, Jr. |
Ron Gorczynski |
President & Chief Executive Officer |
Executive Vice President & Chief Financial Officer |
SmartFinancial, Inc. |
SmartFinancial, Inc. |
Email: billy.carroll@smartbank.com |
Email: ron.gorczynski@smartbank.com |
Phone: 865.868.0613 |
Phone: 865.437.5724 |
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Media Contact |
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Kelley Fowler |
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Senior Vice President, Public Relations/Marketing |
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SmartFinancial, Inc. |
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Email: kelley.fowler@smartbank.com |
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Phone: 865.868.0611 |
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