SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NASDAQ:
SMBK), today announced net income of $9.6 million, or $0.61 per
diluted common share, for the third quarter of 2021, compared to
net income of $6.4 million, or $0.42 per diluted common share, for
the third quarter of 2020, and compared to net income of $8.8
million, or $0.58 per diluted common share, for the second quarter
of 2021. Operating earnings (Non-GAAP), which excludes securities
gains, merger related and restructuring expenses and non-operating
items, totaled $9.9 million, or $0.63 per diluted common share, in
the third quarter of 2021, compared to $6.6 million, or $0.44 per
diluted common share, in the third quarter of 2020, and compared to
$9.1 million, or $0.60 per diluted common share, in the second
quarter of 2021.
Highlights for the Third Quarter
of 2021
- Net organic loan growth of
over $52 million, an 8.6% annualized quarter-over-quarter
increase
- Operating earnings
(non-GAAP) of $0.63 per diluted share, a 43.2% increase from the
prior-year-quarter
- Tangible book value per
share (Non-GAAP) of $19.03, a 7.3% annualized quarter-over-quarter
increase
- Completed the acquisition
of Sevier County Bancshares (“SCB”)
- Hired seasoned commercial
banking team members in Dothan, Montgomery and Birmingham, Alabama
and Tallahassee, Florida
Billy Carroll, President & CEO, stated: “Our
company is continuing to perform at a very high level, and we are
extremely pleased with our results and accomplishments this
quarter. In addition to our solid financial performance, we
closed our SCB transaction and added several outstanding, seasoned
bankers to our staff. The momentum around our team is strong
and I am very excited with the direction of our company.”
SmartFinancial's Chairman, Miller Welborn, concluded: “The
execution of our Strategic Plan is really coming together. All of
our operating metrics are on target, and we are excited about our
future.”
Net Interest Income and Net Interest
Margin
Net interest income was $30.4 million for the
third quarter of 2021, compared to $26.9 million for the second
quarter of 2021. Average earning assets totaled $3.61 billion, an
increase of $314.9 million. The growth was primarily driven by an
increase in average cash and cash equivalents of $271.6 million and
average loans and leases of $24.2 million. Average interest-bearing
liabilities increased $212.2 million, related to continued core
deposit growth and the acquisition of SCB.
The tax equivalent net interest margin was 3.35%
for the third quarter of 2021, compared to 3.29% for the second
quarter of 2021. The tax equivalent net interest margin was
impacted by a 2 basis point increase in the average yield on
interest-earning assets and offset by a 5 basis point decline in
the rate on interest-bearing liabilities over the prior
quarter. The increase in yield on interest-earning assets was
primarily driven by an increase of $1.7 million of loan discount
accretion and Payroll Protection Program (“PPP”) fee accretion
during the third quarter of 2021 when compared to the second
quarter of 2021, offset by lower yielding excess
liquidity.
The yield on interest-bearing liabilities
decreased to 0.44% for the third quarter of 2021 when compared to
0.49% for the second quarter of 2021. The cost of average
interest-bearing deposits was 0.34% for the third quarter of 2021
compared to 0.39% for the second quarter of 2021, a decrease of 5
basis points. The lower cost of average deposits was attributable
to the maturing and repricing of time deposits, which decreased 16
basis points during the period. The cost of total deposits for the
third quarter of 2021 was 0.25% compared to 0.29% in the second
quarter of 2021.
The following table presents selected interest
rates and yields for the periods indicated:
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
Sep |
|
Jun |
|
Increase |
|
Selected Interest Rates and Yields |
|
2021 |
|
2021 |
|
(Decrease) |
|
Yield on loans and leases |
|
4.95 |
% |
4.52 |
% |
0.43 |
|
% |
Yield on earning assets,
FTE |
|
3.67 |
% |
3.65 |
% |
0.02 |
|
% |
Cost of interest-bearing
deposits |
|
0.34 |
% |
0.39 |
% |
(0.05 |
) |
% |
Cost of total deposits |
|
0.25 |
% |
0.29 |
% |
(0.04 |
) |
% |
Cost of interest-bearing
liabilities |
|
0.44 |
% |
0.49 |
% |
(0.05 |
) |
% |
Net interest margin, FTE |
|
3.35 |
% |
3.29 |
% |
0.06 |
|
% |
Provision for Loan and Lease Losses and
Credit Quality
At September 30, 2021, the allowance for loan
and lease losses was $19.3 million. The allowance for loan and
lease losses to total loans and leases was 0.73% as of September
30, 2021, compared to 0.74% as of June 30, 2021. For
the Company’s originated loans and leases, the allowance for loan
and lease losses to originated loans and leases, less PPP loans,
was 0.76% as of September 30, 2021, compared to 0.86% as of June
30, 2021. The remaining discounts on the acquired loan and lease
portfolio totaled $13.0 million, or 2.48% of acquired loans and
leases as of September 30, 2021.
The following table presents detailed
information related to the provision for loan and lease losses for
the periods indicated (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
Sep |
|
|
Jun |
|
|
|
|
|
Provision for Loan and Lease Losses Rollforward |
|
|
2021 |
|
|
|
2021 |
|
|
|
Change |
|
|
Beginning balance |
|
$ |
18,310 |
|
|
$ |
18,370 |
|
|
$ |
(60 |
) |
|
|
Charge-offs |
|
|
(239 |
) |
|
|
(153 |
) |
|
|
(86 |
) |
|
|
Recoveries |
|
|
75 |
|
|
|
98 |
|
|
|
(23 |
) |
|
|
Net charge-offs |
|
|
(164 |
) |
|
|
(55 |
) |
|
|
(109 |
) |
|
|
Provision |
|
|
1,149 |
|
|
|
(5 |
) |
|
|
(1,154 |
) |
|
|
Ending balance |
|
$ |
19,295 |
|
|
$ |
18,310 |
|
|
$ |
985 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan losses to
total loans and leases, gross |
|
|
0.73 |
|
% |
|
0.74 |
|
% |
|
(0.01 |
) |
% |
The Company is not required to implement the
provisions of the Current Expected Credit Losses (“CECL”)
accounting standard until January 1, 2023 and is continuing to
account for the allowance for loan and lease losses under the
incurred loss model.
Nonperforming loans and leases as a percentage
of total loans and leases was 0.13% as of September 30, 2021, a
decrease of 2 basis points from the 0.15% reported in the second
quarter of 2021. 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 0.14% as of
September 30, 2021, as compared to 0.18% as of June 30,
2021.
The following table presents detailed
information related to credit quality for the periods indicated
(dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
|
|
Sep |
|
|
Jun |
|
|
Increase |
|
|
Credit
Quality |
|
|
2021 |
|
|
2021 |
|
|
(Decrease) |
|
|
Nonaccrual loans and leases |
|
$ |
3,567 |
|
$ |
3,694 |
|
$ |
(127 |
) |
|
|
Loans and leases past due 90
days or more and still accruing |
|
|
- |
|
|
64 |
|
|
(64 |
) |
|
|
Total nonperforming loans and leases |
|
|
3,567 |
|
|
3,758 |
|
|
(191 |
) |
|
|
Other real estate owned |
|
|
2,415 |
|
|
2,499 |
|
|
(84 |
) |
|
|
Other repossessed assets |
|
|
77 |
|
|
199 |
|
|
(122 |
) |
|
|
Total nonperforming assets |
|
$ |
6,059 |
|
$ |
6,456 |
|
$ |
(397 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans and leases
to total loans and leases, gross |
|
|
0.13 |
% |
|
0.15 |
% |
|
(0.02 |
) |
% |
|
Nonperforming assets to total
assets |
|
|
0.14 |
% |
|
0.18 |
% |
|
(0.04 |
) |
% |
Noninterest Income
Noninterest income increased $1.2 million to
$6.3 million for the third quarter of 2021 compared to $5.1 million
for the second quarter of 2021. During the third quarter of 2021,
the primary components of the changes in noninterest income were as
follows:
- Increase in service charges on
deposit accounts, related to the SCB acquisition, deposit growth
and transaction volume;
- Increase in insurance commissions
due to improved activity;
- Increase in interchange and debit
card transaction fees, related to increased volume, deposit growth
and the SCB acquisition; and
- Increase in other, includes $469
thousand in SWAP fee income from newly created capital markets
program and $159 thousand in income from the Company’s bank owned
life insurance program.
The following table presents detailed
information related to noninterest income for the periods indicated
(dollars in thousands):
|
|
Three Months Ended |
|
|
|
|
|
|
Sep |
|
|
Jun |
|
|
Increase |
Noninterest Income |
|
|
2021 |
|
|
2021 |
|
|
(Decrease) |
Service charges on deposit accounts |
|
$ |
1,220 |
|
$ |
1,048 |
|
$ |
172 |
|
Gain (loss) on sale of
securities, net |
|
|
45 |
|
|
- |
|
|
45 |
|
Mortgage banking income |
|
|
994 |
|
|
1,105 |
|
|
(111 |
) |
Investment services |
|
|
448 |
|
|
567 |
|
|
(119 |
) |
Insurance commissions |
|
|
745 |
|
|
557 |
|
|
188 |
|
Interchange and debit card
transaction fees |
|
|
1,078 |
|
|
922 |
|
|
156 |
|
Other |
|
|
1,779 |
|
|
944 |
|
|
835 |
|
Total noninterest income |
|
$ |
6,309 |
|
$ |
5,143 |
|
$ |
1,166 |
|
Noninterest Expense
Noninterest expense increased $2.5 million to
$23.3 million for the third quarter of 2021 compared to $20.8
million for the second quarter of 2021. During the third quarter of
2021, the primary components of the changes in noninterest expense
were as follows:
- Increase in salaries and employee
benefits, primarily due to the hiring of additional talent from
both the SCB acquisition and the Auburn, Dothan, Montgomery and
Birmingham, Alabama and Tallahassee, Florida teams;
- Increase in occupancy and equipment
expense from the SCB acquisition and expansion in Alabama;
- Increase in FDIC insurance from
continued asset growth; and
- Increase in data processing and
technology, primarily from continued infrastructure build.
The following table presents detailed
information related to noninterest expense for the periods
indicated (dollars in thousands):
|
|
|
|
|
|
|
|
|
|
|
|
Three Months Ended |
|
|
|
|
|
|
Sep |
|
|
Jun |
|
|
Increase |
Noninterest Expense |
|
|
2021 |
|
|
2021 |
|
|
(Decrease) |
Salaries and employee benefits |
|
$ |
13,594 |
|
$ |
12,203 |
|
$ |
1,391 |
|
Occupancy and equipment |
|
|
2,536 |
|
|
2,294 |
|
|
242 |
|
FDIC insurance |
|
|
525 |
|
|
371 |
|
|
154 |
|
Other real estate and loan
related expenses |
|
|
407 |
|
|
506 |
|
|
(99 |
) |
Advertising and marketing |
|
|
235 |
|
|
230 |
|
|
5 |
|
Data processing and
technology |
|
|
1,753 |
|
|
1,509 |
|
|
244 |
|
Professional services |
|
|
810 |
|
|
849 |
|
|
(39 |
) |
Amortization of
intangibles |
|
|
711 |
|
|
441 |
|
|
270 |
|
Merger related and
restructuring expenses |
|
|
464 |
|
|
372 |
|
|
92 |
|
Other |
|
|
2,274 |
|
|
2,022 |
|
|
252 |
|
Total noninterest expense |
|
$ |
23,309 |
|
$ |
20,797 |
|
$ |
2,512 |
|
Income Tax Expense
Income tax expense was $2.6 million for the
third quarter of 2021, an increase of $163 thousand, compared to
$2.5 million for the second quarter of 2021.
The effective tax rate was 22.0% for the third
and second quarters of 2021, respectively.
Balance Sheet Trends
Total assets at September 30, 2021 were $4.38
billion compared with $3.30 billion at December 31, 2020. The
increase of $1.08 billion is primarily attributable to increases in
cash and cash equivalents of $609.4 million, securities
available-for-sale of $123.7 million, loans and leases of $270.4
million, bank owned life insurance of $47.9 million and goodwill
and intangibles of $14.5 related to the SCB acquisition.
Total liabilities increased to $3.96 billion at
September 30, 2021 from $2.95 billion at December 31, 2020. The
increase of $1.01 billion million was primarily from organic
deposit growth of $561.4 million and deposits of $432.7 million
from the SCB acquisition.
Shareholders' equity at September 30, 2021
totaled $424.7 million, an increase of $67.6 million, from December
31, 2020. The increase in shareholders' equity was primarily from
the issuance of $42.3 million of common stock for the acquisition
of SCB and net income of $28.1 million for the nine months ended
September 30, 2021, which was offset by repurchase of the Company's
common stock of $1.2 million and $2.7 million of dividends
paid. Tangible book value per share (Non-GAAP) was
$19.03 at September 30, 2021, compared to $17.92 at December 31,
2020. Tangible common equity (Non-GAAP) as a percentage of tangible
assets (Non-GAAP) was 7.47% at September 30, 2021, compared with
8.41% at December 31, 2020.
The following table presents selected balance
sheet information for the periods indicated (dollars in
thousands):
|
|
|
|
|
|
|
|
|
|
|
|
|
Sep |
|
Dec |
|
Increase |
|
Selected Balance Sheet Information |
|
2021 |
|
2020 |
|
(Decrease) |
|
Total assets |
|
$ |
4,384,031 |
|
$ |
3,304,949 |
|
$ |
1,079,082 |
|
Total liabilities |
|
|
3,959,311 |
|
|
2,947,781 |
|
|
1,011,530 |
|
Total equity |
|
|
424,720 |
|
|
357,168 |
|
|
67,552 |
|
Securities available-for-sale,
at fair value |
|
|
339,343 |
|
|
215,634 |
|
|
123,709 |
|
Loans and leases |
|
|
2,652,663 |
|
|
2,382,243 |
|
|
270,420 |
|
Deposits |
|
|
3,799,272 |
|
|
2,805,215 |
|
|
994,057 |
|
Borrowings |
|
|
88,748 |
|
|
81,199 |
|
|
7,549 |
|
Conference Call Information
SmartFinancial issued this earnings release for
the third quarter of 2021 on Tuesday, October 19, 2021, and will
host a conference call on Wednesday, October 20, 2021, at 10:00
a.m. ET. To access this interactive teleconference, dial (844)
200-6205 or (646) 904-5544 and enter the confirmation number,
289025. A replay of the conference call will be available through
December 22, 2021, by dialing (866) 813-9403 or (929) 458-6194 and
entering the confirmation number, 781192. Conference call materials
will be published on the Company’s webpage located at
http://www.smartfinancialinc.com/CorporateProfile, at 9:00 am ET
prior to the conference call.
About SmartFinancial, Inc.
SmartFinancial, Inc., based in Knoxville,
Tennessee, is the bank holding company for SmartBank. SmartBank is
a full-service commercial bank founded in 2007, with branches
across Tennessee, Alabama, and the Florida Panhandle. Recruiting
the best people, delivering exceptional client service, strategic
branching, and a disciplined approach to lending have contributed
to SmartBank’s success. More information about SmartFinancial can
be found on its website: www.smartfinancialinc.com.
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-tax pre-provision 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-tax pre-provision
earnings (x) operating noninterest expense, (xi) tangible common
equity, (xii) average tangible common equity, (xiii) tangible book
value; (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,
proceeds related to the termination of an Alabama Department of
Economic and Community Affairs (“ADECA”) loan program, merger
related and restructuring expenses. Operating return on average
assets is the annualized operating earnings divided by average
assets. Operating pre-tax pre-provision return on average assets is
the annualized operating pre-tax pre-provision income earnings by
average assets. Operating return on average shareholders' equity is
the annualized operating earnings divided by average equity. Return
on average tangible common equity is the annualized net income
divided by average tangible common equity. Operating return on
average tangible common equity is the annualized operating earnings
divided by average tangible common equity (Non-GAAP). The operating
efficiency ratio includes an adjustment for taxable equivalent
yields and excludes securities gains and losses and merger related
and restructuring expenses from the efficiency ratio. Operating
noninterest income excludes the following from noninterest income:
securities gains and losses, proceeds related to the termination of
the ADECA loan program. Operating pre-tax pre-provision earnings is
net interest income plus operating noninterest income less
operating noninterest expense. 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
and average tangible common equity excludes goodwill and other
intangible assets from shareholders' equity and average
shareholders' equity, respectively. Tangible book value is tangible
common equity divided by common shares outstanding. 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.
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,
including statements regarding the effects of the COVID-19 pandemic
on the Company’s 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) 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 acquisition of
Sevier County Bancshares, Inc. (“SCB”); (7) the risk that the
anticipated benefits from the 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.
SmartFinancial, Inc. and
Subsidiary Condensed Consolidated Financial
Information - (unaudited) (dollars in
thousands)
|
|
Ending Balances |
|
|
Sep |
|
Jun |
|
Mar |
|
Dec |
|
Sep |
|
|
2021 |
|
|
2021 |
|
|
2021 |
|
|
2020 |
|
|
2020 |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Cash and cash equivalents |
|
$ |
1,091,160 |
|
|
$ |
673,515 |
|
|
$ |
556,701 |
|
|
$ |
481,719 |
|
|
$ |
541,815 |
|
Securities available-for-sale, at fair value |
|
|
339,343 |
|
|
|
250,817 |
|
|
|
250,937 |
|
|
|
215,634 |
|
|
|
214,634 |
|
Other investments |
|
|
14,972 |
|
|
|
14,584 |
|
|
|
14,728 |
|
|
|
14,794 |
|
|
|
14,829 |
|
Loans held for sale |
|
|
3,418 |
|
|
|
4,334 |
|
|
|
7,870 |
|
|
|
11,721 |
|
|
|
11,292 |
|
Loans and leases |
|
|
2,652,663 |
|
|
|
2,468,318 |
|
|
|
2,487,129 |
|
|
|
2,382,243 |
|
|
|
2,404,057 |
|
Less: Allowance for loan and lease losses |
|
|
(19,295 |
) |
|
|
(18,310 |
) |
|
|
(18,370 |
) |
|
|
(18,346 |
) |
|
|
(18,817 |
) |
Loans and leases, net |
|
|
2,633,368 |
|
|
|
2,450,008 |
|
|
|
2,468,759 |
|
|
|
2,363,897 |
|
|
|
2,385,240 |
|
Premises and equipment, net |
|
|
85,346 |
|
|
|
72,314 |
|
|
|
72,697 |
|
|
|
72,682 |
|
|
|
73,934 |
|
Other real estate owned |
|
|
2,415 |
|
|
|
2,499 |
|
|
|
3,946 |
|
|
|
4,619 |
|
|
|
3,932 |
|
Goodwill and other intangibles, net |
|
|
104,930 |
|
|
|
90,966 |
|
|
|
86,350 |
|
|
|
86,471 |
|
|
|
86,710 |
|
Bank owned life insurance |
|
|
79,145 |
|
|
|
72,013 |
|
|
|
71,586 |
|
|
|
31,215 |
|
|
|
31,034 |
|
Other assets |
|
|
29,934 |
|
|
|
23,306 |
|
|
|
23,629 |
|
|
|
22,197 |
|
|
|
24,168 |
|
Total assets |
|
$ |
4,384,031 |
|
|
$ |
3,654,356 |
|
|
$ |
3,557,203 |
|
|
$ |
3,304,949 |
|
|
$ |
3,387,588 |
|
Liabilities: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest-bearing demand |
|
$ |
977,180 |
|
|
$ |
807,560 |
|
|
$ |
777,968 |
|
|
$ |
685,957 |
|
|
$ |
669,733 |
|
Interest-bearing demand |
|
|
847,007 |
|
|
|
702,470 |
|
|
|
683,887 |
|
|
|
649,129 |
|
|
|
534,128 |
|
Money market and savings |
|
|
1,389,393 |
|
|
|
1,140,029 |
|
|
|
1,073,941 |
|
|
|
919,631 |
|
|
|
871,098 |
|
Time deposits |
|
|
585,692 |
|
|
|
489,413 |
|
|
|
512,417 |
|
|
|
550,498 |
|
|
|
577,064 |
|
Total deposits |
|
|
3,799,272 |
|
|
|
3,139,472 |
|
|
|
3,048,213 |
|
|
|
2,805,215 |
|
|
|
2,652,023 |
|
Borrowings |
|
|
88,748 |
|
|
|
78,834 |
|
|
|
82,642 |
|
|
|
81,199 |
|
|
|
319,391 |
|
Subordinated debt |
|
|
41,909 |
|
|
|
39,388 |
|
|
|
39,367 |
|
|
|
39,346 |
|
|
|
39,325 |
|
Other liabilities |
|
|
29,382 |
|
|
|
23,269 |
|
|
|
22,923 |
|
|
|
22,021 |
|
|
|
27,060 |
|
Total liabilities |
|
|
3,959,311 |
|
|
|
3,280,963 |
|
|
|
3,193,145 |
|
|
|
2,947,781 |
|
|
|
3,037,799 |
|
Shareholders'
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common stock |
|
|
16,801 |
|
|
|
15,110 |
|
|
|
15,105 |
|
|
|
15,107 |
|
|
|
15,233 |
|
Additional paid-in capital |
|
|
292,760 |
|
|
|
252,039 |
|
|
|
251,836 |
|
|
|
252,693 |
|
|
|
254,626 |
|
Retained earnings |
|
|
112,600 |
|
|
|
103,906 |
|
|
|
96,034 |
|
|
|
87,185 |
|
|
|
78,918 |
|
Accumulated other comprehensive income |
|
|
2,559 |
|
|
|
2,338 |
|
|
|
1,083 |
|
|
|
2,183 |
|
|
|
1,012 |
|
Total shareholders' equity |
|
|
424,720 |
|
|
|
373,393 |
|
|
|
364,058 |
|
|
|
357,168 |
|
|
|
349,789 |
|
Total liabilities & shareholders' equity |
|
$ |
4,384,031 |
|
|
$ |
3,654,356 |
|
|
$ |
3,557,203 |
|
|
$ |
3,304,949 |
|
|
$ |
3,387,588 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SmartFinancial, Inc. and
Subsidiary Condensed Consolidated Financial
Information - (unaudited) (dollars in
thousands except share and per share data)
|
Three Months Ended |
|
Nine Months Ended |
|
Sep |
|
Jun |
|
Mar |
|
Dec |
|
Sep |
|
Sep |
|
Sep |
|
2021 |
|
2021 |
|
|
2020 |
|
2020 |
|
2020 |
|
|
2021 |
|
2020 |
Interest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees |
$ |
31,674 |
|
$ |
28,323 |
|
|
$ |
28,018 |
|
$ |
28,594 |
|
$ |
28,621 |
|
|
$ |
88,015 |
|
$ |
83,718 |
Securities available-for-sale: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Taxable |
|
832 |
|
|
916 |
|
|
|
724 |
|
|
609 |
|
|
546 |
|
|
|
2,472 |
|
|
1,813 |
Tax-exempt |
|
331 |
|
|
304 |
|
|
|
259 |
|
|
306 |
|
|
364 |
|
|
|
894 |
|
|
1,064 |
Federal funds sold and other earning assets |
|
474 |
|
|
309 |
|
|
|
291 |
|
|
303 |
|
|
327 |
|
|
|
1,074 |
|
|
1,206 |
Total interest income |
|
33,311 |
|
|
29,852 |
|
|
|
29,292 |
|
|
29,812 |
|
|
29,858 |
|
|
|
92,455 |
|
|
87,801 |
Interest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Deposits |
|
2,153 |
|
|
2,248 |
|
|
|
2,331 |
|
|
2,580 |
|
|
2,897 |
|
|
|
6,733 |
|
|
11,016 |
Borrowings |
|
121 |
|
|
123 |
|
|
|
117 |
|
|
142 |
|
|
334 |
|
|
|
360 |
|
|
674 |
Subordinated debt |
|
655 |
|
|
584 |
|
|
|
584 |
|
|
584 |
|
|
584 |
|
|
|
1,823 |
|
|
1,751 |
Total interest expense |
|
2,929 |
|
|
2,955 |
|
|
|
3,032 |
|
|
3,306 |
|
|
3,815 |
|
|
|
8,916 |
|
|
13,441 |
Net interest income |
|
30,382 |
|
|
26,897 |
|
|
|
26,260 |
|
|
26,506 |
|
|
26,043 |
|
|
|
83,539 |
|
|
74,360 |
Provision for loan and
lease losses |
|
1,149 |
|
|
(5 |
) |
|
|
67 |
|
|
— |
|
|
2,634 |
|
|
|
1,211 |
|
|
8,683 |
Net interest income
after provision for loan and lease losses |
|
29,233 |
|
|
26,902 |
|
|
|
26,193 |
|
|
26,506 |
|
|
23,409 |
|
|
|
82,328 |
|
|
65,677 |
Noninterest
income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Service charges on deposit accounts |
|
1,220 |
|
|
1,048 |
|
|
|
1,009 |
|
|
1,032 |
|
|
892 |
|
|
|
3,278 |
|
|
2,370 |
Gain (loss) on sale of securities, net |
|
45 |
|
|
— |
|
|
|
— |
|
|
— |
|
|
(9 |
) |
|
|
45 |
|
|
6 |
Mortgage banking |
|
994 |
|
|
1,105 |
|
|
|
1,139 |
|
|
1,331 |
|
|
1,029 |
|
|
|
3,238 |
|
|
2,544 |
Investment services |
|
448 |
|
|
567 |
|
|
|
531 |
|
|
407 |
|
|
359 |
|
|
|
1,546 |
|
|
1,159 |
Insurance commissions |
|
745 |
|
|
557 |
|
|
|
1,466 |
|
|
548 |
|
|
560 |
|
|
|
2,768 |
|
|
1,302 |
Interchange and debit card transaction fees |
|
1,078 |
|
|
922 |
|
|
|
839 |
|
|
760 |
|
|
868 |
|
|
|
2,839 |
|
|
1,652 |
Other |
|
1,779 |
|
|
944 |
|
|
|
707 |
|
|
898 |
|
|
422 |
|
|
|
3,429 |
|
|
1,417 |
Total noninterest income |
|
6,309 |
|
|
5,143 |
|
|
|
5,691 |
|
|
4,976 |
|
|
4,121 |
|
|
|
17,143 |
|
|
10,450 |
Noninterest
expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee benefits |
|
13,594 |
|
|
12,203 |
|
|
|
10,869 |
|
|
11,516 |
|
|
11,032 |
|
|
|
36,666 |
|
|
31,395 |
Occupancy and equipment |
|
2,536 |
|
|
2,294 |
|
|
|
2,341 |
|
|
2,256 |
|
|
2,186 |
|
|
|
7,170 |
|
|
6,093 |
FDIC insurance |
|
525 |
|
|
371 |
|
|
|
371 |
|
|
297 |
|
|
534 |
|
|
|
1,266 |
|
|
894 |
Other real estate and loan related expense |
|
407 |
|
|
506 |
|
|
|
602 |
|
|
516 |
|
|
643 |
|
|
|
1,514 |
|
|
1,535 |
Advertising and marketing |
|
235 |
|
|
230 |
|
|
|
190 |
|
|
181 |
|
|
253 |
|
|
|
654 |
|
|
653 |
Data processing and technology |
|
1,753 |
|
|
1,509 |
|
|
|
1,379 |
|
|
1,182 |
|
|
1,131 |
|
|
|
4,642 |
|
|
3,293 |
Professional services |
|
810 |
|
|
849 |
|
|
|
641 |
|
|
786 |
|
|
594 |
|
|
|
2,300 |
|
|
2,172 |
Amortization of intangibles |
|
711 |
|
|
441 |
|
|
|
444 |
|
|
571 |
|
|
402 |
|
|
|
1,597 |
|
|
1,169 |
Merger related and restructuring expenses |
|
464 |
|
|
372 |
|
|
|
103 |
|
|
702 |
|
|
290 |
|
|
|
939 |
|
|
3,863 |
Other |
|
2,274 |
|
|
2,022 |
|
|
|
2,524 |
|
|
1,946 |
|
|
2,102 |
|
|
|
6,822 |
|
|
5,699 |
Total noninterest expense |
|
23,309 |
|
|
20,797 |
|
|
|
19,464 |
|
|
19,953 |
|
|
19,167 |
|
|
|
63,570 |
|
|
56,766 |
Income before income
taxes |
|
12,233 |
|
|
11,248 |
|
|
|
12,420 |
|
|
11,529 |
|
|
8,363 |
|
|
|
35,901 |
|
|
19,361 |
Income tax expense |
|
2,633 |
|
|
2,470 |
|
|
|
2,664 |
|
|
2,499 |
|
|
1,968 |
|
|
|
7,767 |
|
|
4,059 |
Net
income |
$ |
9,600 |
|
$ |
8,778 |
|
|
$ |
9,756 |
|
$ |
9,030 |
|
$ |
6,395 |
|
|
$ |
28,134 |
|
$ |
15,302 |
Earnings per common
share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
$ |
0.62 |
|
$ |
0.59 |
|
|
$ |
0.65 |
|
$ |
0.60 |
|
$ |
0.42 |
|
|
$ |
1.85 |
|
$ |
1.03 |
Diluted |
$ |
0.61 |
|
$ |
0.58 |
|
|
$ |
0.65 |
|
$ |
0.59 |
|
$ |
0.42 |
|
|
$ |
1.84 |
|
$ |
1.02 |
Weighted average
common shares outstanding: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
15,557,528 |
|
|
15,003,657 |
|
|
|
15,011,573 |
|
|
15,109,298 |
|
|
15,160,579 |
|
|
|
15,192,919 |
|
|
14,903,757 |
Diluted |
|
15,691,126 |
|
|
15,126,184 |
|
|
|
15,111,947 |
|
|
15,182,796 |
|
|
15,210,611 |
|
|
|
15,312,755 |
|
|
14,965,455 |
SmartFinancial, Inc. and
SubsidiaryCondensed Consolidated Financial
Information - (unaudited)(dollars in
thousands)YIELD ANALYSIS
|
|
Three Months Ended |
|
|
|
September 30, 2021 |
|
June 30, 2021 |
|
September 30, 2020 |
|
|
|
Average |
|
|
|
|
Yield/ |
|
Average |
|
|
|
|
Yield/ |
|
Average |
|
|
|
|
Yield/ |
|
|
|
Balance |
|
Interest1 |
|
Cost1 |
|
Balance |
|
Interest1 |
|
Cost1 |
|
Balance |
|
Interest1 |
|
Cost1 |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees2 |
|
$ |
2,532,604 |
|
$ |
31,623 |
|
4.95 |
% |
$ |
2,508,388 |
|
$ |
28,256 |
|
4.52 |
% |
$ |
2,410,173 |
|
$ |
28,508 |
|
4.71 |
% |
Loans held for sale |
|
|
3,987 |
|
|
51 |
|
5.09 |
% |
|
5,315 |
|
|
67 |
|
5.03 |
% |
|
8,048 |
|
|
113 |
|
5.57 |
% |
Taxable securities |
|
|
187,032 |
|
|
832 |
|
1.77 |
% |
|
164,935 |
|
|
916 |
|
2.23 |
% |
|
132,642 |
|
|
546 |
|
1.64 |
% |
Tax-exempt securities |
|
|
87,621 |
|
|
477 |
|
2.16 |
% |
|
89,296 |
|
|
453 |
|
2.04 |
% |
|
88,129 |
|
|
515 |
|
2.32 |
% |
Federal funds sold and other earning assets |
|
|
802,712 |
|
|
474 |
|
0.23 |
% |
|
531,125 |
|
|
309 |
|
0.23 |
% |
|
438,785 |
|
|
327 |
|
0.30 |
% |
Total interest-earning assets |
|
|
3,613,956 |
|
|
33,457 |
|
3.67 |
% |
|
3,299,059 |
|
|
30,001 |
|
3.65 |
% |
|
3,077,777 |
|
|
30,009 |
|
3.88 |
% |
Noninterest-earning assets |
|
|
323,067 |
|
|
|
|
|
|
|
286,211 |
|
|
|
|
|
|
|
262,764 |
|
|
|
|
|
|
Total assets |
|
$ |
3,937,023 |
|
|
|
|
|
|
$ |
3,585,270 |
|
|
|
|
|
|
$ |
3,340,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
763,613 |
|
|
414 |
|
0.21 |
% |
$ |
688,756 |
|
|
304 |
|
0.18 |
% |
$ |
509,999 |
|
|
199 |
|
0.16 |
% |
Money market and savings deposits |
|
|
1,233,533 |
|
|
854 |
|
0.27 |
% |
|
1,117,290 |
|
|
905 |
|
0.32 |
% |
|
833,022 |
|
|
704 |
|
0.34 |
% |
Time deposits |
|
|
524,327 |
|
|
885 |
|
0.67 |
% |
|
502,755 |
|
|
1,039 |
|
0.83 |
% |
|
615,714 |
|
|
1,994 |
|
1.29 |
% |
Total interest-bearing deposits |
|
|
2,521,473 |
|
|
2,153 |
|
0.34 |
% |
|
2,308,801 |
|
|
2,248 |
|
0.39 |
% |
|
1,958,735 |
|
|
2,897 |
|
0.59 |
% |
Borrowings3 |
|
|
80,188 |
|
|
121 |
|
0.60 |
% |
|
81,525 |
|
|
123 |
|
0.61 |
% |
|
319,265 |
|
|
334 |
|
0.42 |
% |
Subordinated debt |
|
|
40,211 |
|
|
654 |
|
6.47 |
% |
|
39,375 |
|
|
584 |
|
5.95 |
% |
|
39,311 |
|
|
584 |
|
5.91 |
% |
Total interest-bearing liabilities |
|
|
2,641,872 |
|
|
2,928 |
|
0.44 |
% |
|
2,429,701 |
|
|
2,955 |
|
0.49 |
% |
|
2,317,311 |
|
|
3,815 |
|
0.65 |
% |
Noninterest-bearing deposits |
|
|
877,831 |
|
|
|
|
|
|
|
768,399 |
|
|
|
|
|
|
|
649,489 |
|
|
|
|
|
|
Other liabilities |
|
|
24,522 |
|
|
|
|
|
|
|
17,845 |
|
|
|
|
|
|
|
25,834 |
|
|
|
|
|
|
Total liabilities |
|
|
3,544,225 |
|
|
|
|
|
|
|
3,215,945 |
|
|
|
|
|
|
|
2,992,634 |
|
|
|
|
|
|
Shareholders' equity |
|
|
392,798 |
|
|
|
|
|
|
|
369,325 |
|
|
|
|
|
|
|
347,907 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
3,937,023 |
|
|
|
|
|
|
$ |
3,585,270 |
|
|
|
|
|
|
$ |
3,340,541 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, taxable equivalent |
|
|
|
|
$ |
30,529 |
|
|
|
|
|
|
$ |
27,046 |
|
|
|
|
|
|
$ |
26,194 |
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
3.23 |
% |
|
|
|
|
|
|
3.16 |
% |
|
|
|
|
|
|
3.22 |
% |
Tax equivalent net interest margin |
|
|
|
|
|
|
|
3.35 |
% |
|
|
|
|
|
|
3.29 |
% |
|
|
|
|
|
|
3.39 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of average interest-earning assets to average
interest-bearing liabilities |
|
|
|
|
|
|
|
136.80 |
% |
|
|
|
|
|
|
135.78 |
% |
|
|
|
|
|
|
132.82 |
% |
Percentage of average equity to average assets |
|
|
|
|
|
|
|
9.98 |
% |
|
|
|
|
|
|
10.30 |
% |
|
|
|
|
|
|
10.41 |
% |
1 Taxable equivalent2 Includes average balance of $128,408,
$266,114 and $295,045 in PPP loans for the quarters ended September
30, 2021, June 30, 2021, and September 30, 2020,
respectively. 3 Includes average balance of $237,780 in
Paycheck Protection Program Liquidity Facility (“PPPLF”) funding
for the quarter ended September 30, 2020. No PPPLF funding was used
for the quarters ended September 30, 2021, and June 30, 2021.
SmartFinancial, Inc. and
SubsidiaryCondensed Consolidated Financial
Information - (unaudited)(dollars in
thousands)YIELD ANALYSIS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nine Months Ended |
|
|
September 30, 2021 |
|
September 30, 2020 |
|
|
|
Average |
|
|
|
|
Yield/ |
|
Average |
|
|
|
|
Yield/ |
|
|
|
Balance |
|
Interest1 |
|
Cost1 |
|
Balance |
|
Interest1 |
|
Cost1 |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans and leases, including fees2 |
|
$ |
2,489,843 |
|
$ |
87,823 |
|
|
4.72 |
% |
$ |
2,252,075 |
|
$ |
83,487 |
|
4.95 |
% |
Loans held for sale |
|
|
5,724 |
|
|
192 |
|
|
4.49 |
% |
|
6,409 |
|
|
231 |
|
4.81 |
% |
Taxable securities |
|
|
163,005 |
|
|
2,472 |
|
|
2.03 |
% |
|
123,895 |
|
|
1,813 |
|
1.95 |
% |
Tax-exempt securities |
|
|
89,244 |
|
|
1,339 |
|
|
2.01 |
% |
|
81,604 |
|
|
1,486 |
|
2.43 |
% |
Federal funds sold and other earning assets |
|
|
584,970 |
|
|
1,074 |
|
|
0.25 |
% |
|
296,449 |
|
|
1,206 |
|
0.54 |
% |
Total interest-earning assets |
|
|
3,332,786 |
|
|
92,900 |
|
|
3.73 |
% |
|
2,760,432 |
|
|
88,223 |
|
4.27 |
% |
Noninterest-earning assets |
|
|
295,074 |
|
|
|
|
|
|
|
|
248,293 |
|
|
|
|
|
|
Total assets |
|
$ |
3,627,860 |
|
|
|
|
|
|
|
$ |
3,008,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
698,148 |
|
|
974 |
|
|
0.19 |
% |
$ |
451,074 |
|
|
782 |
|
0.23 |
% |
Money market and savings deposits |
|
|
1,112,342 |
|
|
2,580 |
|
|
0.31 |
% |
|
749,316 |
|
|
2,707 |
|
0.48 |
% |
Time deposits |
|
|
517,566 |
|
|
3,179 |
|
|
0.82 |
% |
|
667,303 |
|
|
7,527 |
|
1.51 |
% |
Total interest-bearing deposits |
|
|
2,328,056 |
|
|
6,733 |
|
|
0.39 |
% |
|
1,867,693 |
|
|
11,016 |
|
0.79 |
% |
Borrowings3 |
|
|
81,177 |
|
|
360 |
|
|
0.59 |
% |
|
203,202 |
|
|
674 |
|
0.44 |
% |
Subordinated debt |
|
|
39,650 |
|
|
1,823 |
|
|
6.15 |
% |
|
39,290 |
|
|
1,751 |
|
5.95 |
% |
Total interest-bearing liabilities |
|
|
2,448,883 |
|
|
8,916 |
|
|
0.49 |
% |
|
2,110,185 |
|
|
13,441 |
|
0.85 |
% |
Noninterest-bearing deposits |
|
|
782,960 |
|
|
|
|
|
|
|
|
537,860 |
|
|
|
|
|
|
Other liabilities |
|
|
21,553 |
|
|
|
|
|
|
|
|
23,826 |
|
|
|
|
|
|
Total liabilities |
|
|
3,253,396 |
|
|
|
|
|
|
|
|
2,671,871 |
|
|
|
|
|
|
Shareholders' equity |
|
|
374,464 |
|
|
|
|
|
|
|
|
336,854 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
3,627,860 |
|
|
|
|
|
|
|
$ |
3,008,725 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, taxable equivalent |
|
|
|
|
$ |
83,984 |
|
|
|
|
|
|
|
$ |
74,782 |
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
3.24 |
% |
|
|
|
|
|
|
3.42 |
% |
Tax equivalent net interest margin |
|
|
|
|
|
|
|
|
3.37 |
% |
|
|
|
|
|
|
3.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of average interest-earning assets to average
interest-bearing liabilities |
|
|
|
|
|
|
|
|
136.09 |
% |
|
|
|
|
|
|
130.81 |
% |
Percentage of average equity to average assets |
|
|
|
|
|
|
|
|
10.32 |
% |
|
|
|
|
|
|
11.20 |
% |
1 Taxable equivalent2 Includes average balance of $235,027 and
$169,617 in PPP loans for the six months ended September 30, 2021,
and 2020, respectively. 3 Includes average balance of $115,734 in
Paycheck Protection Program Liquidity Facility (“PPPLF”) funding
for the nine months ended September 30, 2020. No PPPLF funding was
used for the nine months ended September 30, 2021.
SmartFinancial, Inc. and
SubsidiaryCondensed Consolidated Financial
Information - (unaudited)(dollars in
thousands)YIELD ANALYSIS
|
|
Year Ended |
|
|
December 31, 2020 |
|
December 31, 2019 |
|
|
|
Average |
|
|
|
|
Yield/ |
|
Average |
|
|
|
|
Yield/ |
|
|
|
Balance |
|
Interest1 |
|
Cost1 |
|
Balance |
|
Interest1 |
|
Cost1 |
|
Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans, including fees2 |
|
$ |
2,289,612 |
|
$ |
111,992 |
|
|
4.89 |
% |
$ |
1,836,963 |
|
$ |
100,831 |
|
5.49 |
% |
Loans held for sale |
|
|
7,360 |
|
|
320 |
|
|
4.34 |
% |
|
3,858 |
|
|
171 |
|
4.43 |
% |
Taxable securities |
|
|
122,900 |
|
|
2,423 |
|
|
1.97 |
% |
|
129,705 |
|
|
3,289 |
|
2.54 |
% |
Tax-exempt securities |
|
|
83,765 |
|
|
1,941 |
|
|
2.32 |
% |
|
56,458 |
|
|
1,972 |
|
3.49 |
% |
Federal funds sold and other earning assets |
|
|
308,843 |
|
|
1,509 |
|
|
0.49 |
% |
|
110,380 |
|
|
2,646 |
|
2.40 |
% |
Total interest-earning assets |
|
|
2,812,480 |
|
|
118,185 |
|
|
4.20 |
% |
|
2,137,364 |
|
|
108,909 |
|
5.10 |
% |
Noninterest-earning assets |
|
|
250,955 |
|
|
|
|
|
|
|
|
201,976 |
|
|
|
|
|
|
Total assets |
|
$ |
3,063,435 |
|
|
|
|
|
|
|
$ |
2,339,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and Stockholders’ Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing demand deposits |
|
$ |
481,050 |
|
|
1,013 |
|
|
0.21 |
% |
$ |
333,100 |
|
|
1,883 |
|
0.57 |
% |
Money market and savings deposits |
|
|
788,006 |
|
|
3,482 |
|
|
0.44 |
% |
|
651,855 |
|
|
7,827 |
|
1.20 |
% |
Time deposits |
|
|
641,647 |
|
|
9,102 |
|
|
1.42 |
% |
|
635,451 |
|
|
12,205 |
|
1.92 |
% |
Total interest-bearing deposits |
|
|
1,910,703 |
|
|
13,597 |
|
|
0.71 |
% |
|
1,620,406 |
|
|
21,915 |
|
1.35 |
% |
Borrowings3 |
|
|
177,204 |
|
|
816 |
|
|
0.46 |
% |
|
21,526 |
|
|
319 |
|
1.48 |
% |
Subordinated debt |
|
|
39,301 |
|
|
2,334 |
|
|
5.94 |
% |
|
39,216 |
|
|
2,341 |
|
5.97 |
% |
Total interest-bearing liabilities |
|
|
2,127,208 |
|
|
16,747 |
|
|
0.79 |
% |
|
1,681,148 |
|
|
24,575 |
|
1.46 |
% |
Noninterest-bearing deposits |
|
|
571,282 |
|
|
|
|
|
|
|
|
343,611 |
|
|
|
|
|
|
Other liabilities |
|
|
23,775 |
|
|
|
|
|
|
|
|
15,852 |
|
|
|
|
|
|
Total liabilities |
|
|
2,722,265 |
|
|
|
|
|
|
|
|
2,040,611 |
|
|
|
|
|
|
Shareholders' equity |
|
|
341,170 |
|
|
|
|
|
|
|
|
298,729 |
|
|
|
|
|
|
Total liabilities and shareholders' equity |
|
$ |
3,063,435 |
|
|
|
|
|
|
|
$ |
2,339,340 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income, taxable equivalent |
|
|
|
|
$ |
101,438 |
|
|
|
|
|
|
|
$ |
84,334 |
|
|
|
Interest rate spread |
|
|
|
|
|
|
|
|
3.41 |
% |
|
|
|
|
|
|
3.64 |
% |
Tax equivalent net interest margin |
|
|
|
|
|
|
|
|
3.61 |
% |
|
|
|
|
|
|
3.95 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of average interest-earning assets to average
interest-bearing liabilities |
|
|
|
|
|
|
|
|
132.21 |
% |
|
|
|
|
|
|
127.14 |
% |
Percentage of average equity to average assets |
|
|
|
|
|
|
|
|
11.14 |
% |
|
|
|
|
|
|
12.77 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
1 Taxable equivalent2 Includes average balance of $201,470 in
PPP loans for the twelve months ended December 31, 2020. 3 Includes
average balance of $91,190 in PPPLF funding for twelve months ended
December 31, 2020.
SmartFinancial, Inc. and
SubsidiaryCondensed Consolidated Financial
Information - (unaudited)(dollars in
thousands)
|
|
As of and for The Three Months Ended |
|
|
|
Sep |
|
Jun |
|
Mar |
|
Dec |
|
Sep |
|
|
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
Composition of Loans and Leases: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Commercial real estate: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
owner occupied |
|
$ |
560,671 |
|
$ |
492,750 |
|
$ |
477,293 |
|
$ |
463,771 |
|
$ |
467,569 |
|
non-owner occupied |
|
|
752,576 |
|
|
669,741 |
|
|
593,348 |
|
|
549,205 |
|
|
563,082 |
|
Commercial real estate, total |
|
|
1,313,247 |
|
|
1,162,491 |
|
|
1,070,641 |
|
|
1,012,976 |
|
|
1,030,651 |
|
Commercial & industrial |
|
|
469,739 |
|
|
496,114 |
|
|
686,010 |
|
|
634,446 |
|
|
644,498 |
|
Construction & land development |
|
|
326,374 |
|
|
300,704 |
|
|
285,973 |
|
|
278,075 |
|
|
275,172 |
|
Consumer real estate |
|
|
478,161 |
|
|
444,640 |
|
|
432,486 |
|
|
443,930 |
|
|
440,310 |
|
Leases |
|
|
53,396 |
|
|
53,038 |
|
|
— |
|
|
— |
|
|
— |
|
Consumer and other |
|
|
11,746 |
|
|
11,331 |
|
|
12,019 |
|
|
12,816 |
|
|
13,426 |
|
Total loans and leases |
|
$ |
2,652,663 |
|
$ |
2,468,318 |
|
$ |
2,487,129 |
|
$ |
2,382,243 |
|
$ |
2,404,057 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Asset Quality and
Additional Loan Data: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Nonperforming loans and leases |
|
$ |
3,567 |
|
$ |
3,758 |
|
$ |
6,234 |
|
$ |
5,782 |
|
$ |
2,248 |
|
Other real estate owned |
|
|
2,415 |
|
|
2,499 |
|
|
3,946 |
|
|
4,619 |
|
|
3,932 |
|
Other repossessed assets |
|
|
77 |
|
|
199 |
|
|
— |
|
|
— |
|
|
— |
|
Total nonperforming assets |
|
$ |
6,059 |
|
$ |
6,456 |
|
$ |
10,180 |
|
$ |
10,401 |
|
$ |
6,180 |
|
Restructured loans and leases not included in nonperforming loans
and leases |
|
$ |
212 |
|
$ |
219 |
|
$ |
250 |
|
$ |
257 |
|
$ |
8 |
|
Net charge-offs to average loans and leases (annualized) |
|
|
0.03 |
% |
|
0.01 |
% |
|
0.01 |
% |
|
0.08 |
% |
|
0.01 |
% |
Allowance for loan and leases losses to loans and leases |
|
|
0.73 |
% |
|
0.74 |
% |
|
0.74 |
% |
|
0.77 |
% |
|
0.78 |
% |
Nonperforming loans and leases to total loans and leases,
gross |
|
|
0.13 |
% |
|
0.15 |
% |
|
0.25 |
% |
|
0.24 |
% |
|
0.09 |
% |
Nonperforming assets to total assets |
|
|
0.14 |
% |
|
0.18 |
% |
|
0.29 |
% |
|
0.31 |
% |
|
0.18 |
% |
Acquired loan and lease fair value discount balance |
|
$ |
13,001 |
|
$ |
12,982 |
|
$ |
12,951 |
|
$ |
14,467 |
|
$ |
15,141 |
|
Accretion income on acquired loans and leases |
|
|
1,760 |
|
|
761 |
|
|
1,636 |
|
|
768 |
|
|
960 |
|
PPP net fees deferred balance |
|
|
3,783 |
|
|
6,651 |
|
|
7,351 |
|
|
4,190 |
|
|
6,348 |
|
PPP net fees recognized |
|
|
2,873 |
|
|
2,132 |
|
|
2,398 |
|
|
2,157 |
|
|
1,812 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Equity to Assets |
|
|
9.69 |
% |
|
10.22 |
% |
|
10.23 |
% |
|
10.81 |
% |
|
10.33 |
% |
Tangible common equity to tangible assets (Non-GAAP)1 |
|
|
7.47 |
% |
|
7.93 |
% |
|
8.00 |
% |
|
8.41 |
% |
|
7.97 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SmartFinancial, Inc.2 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage |
|
|
8.36 |
% |
|
8.10 |
% |
|
8.55 |
% |
|
8.69 |
% |
|
8.78 |
% |
Common equity Tier 1 |
|
|
10.85 |
% |
|
10.63 |
% |
|
11.29 |
% |
|
11.61 |
% |
|
11.33 |
% |
Tier 1 capital |
|
|
10.85 |
% |
|
10.63 |
% |
|
11.29 |
% |
|
11.61 |
% |
|
11.33 |
% |
Total capital |
|
|
12.92 |
% |
|
12.80 |
% |
|
13.62 |
% |
|
14.07 |
% |
|
13.81 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SmartBank |
|
|
Estimated3 |
|
|
|
|
|
|
|
|
|
|
|
|
|
Tier 1 leverage |
|
|
9.20 |
% |
|
8.75 |
% |
|
9.33 |
% |
|
9.58 |
% |
|
9.74 |
% |
Common equity Tier 1 |
|
|
11.95 |
% |
|
11.50 |
% |
|
12.31 |
% |
|
12.79 |
% |
|
12.57 |
% |
Tier 1 capital |
|
|
11.95 |
% |
|
11.50 |
% |
|
12.31 |
% |
|
12.79 |
% |
|
12.57 |
% |
Total capital |
|
|
12.60 |
% |
|
12.19 |
% |
|
13.05 |
% |
|
13.57 |
% |
|
13.37 |
% |
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 |
|
|
Nine Months Ended |
|
|
Sep |
|
Jun |
|
Mar |
|
Dec |
|
Sep |
|
|
Sep |
|
Sep |
|
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
|
2021 |
|
2020 |
|
Selected Performance Ratios (Annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Return on average assets |
|
0.97 |
% |
|
0.98 |
% |
|
1.18 |
% |
|
1.11 |
% |
|
0.76 |
% |
|
|
1.04 |
% |
|
0.68 |
% |
Return on average shareholders' equity |
|
9.70 |
% |
|
9.53 |
% |
|
10.96 |
% |
|
10.15 |
% |
|
7.31 |
% |
|
|
10.05 |
% |
|
6.07 |
% |
Return on average tangible common equity¹ |
|
12.84 |
% |
|
12.54 |
% |
|
14.41 |
% |
|
13.43 |
% |
|
9.72 |
% |
|
|
13.24 |
% |
|
8.10 |
% |
Noninterest income / average assets |
|
0.64 |
% |
|
0.58 |
% |
|
0.69 |
% |
|
0.61 |
% |
|
0.49 |
% |
|
|
0.63 |
% |
|
0.46 |
% |
Noninterest expense / average assets |
|
2.35 |
% |
|
2.33 |
% |
|
2.35 |
% |
|
2.46 |
% |
|
2.28 |
% |
|
|
2.34 |
% |
|
2.52 |
% |
Efficiency ratio |
|
63.53 |
% |
|
64.91 |
% |
|
60.92 |
% |
|
63.38 |
% |
|
63.54 |
% |
|
|
63.14 |
% |
|
66.93 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Selected
Performance Ratios (Annualized): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on average assets1 |
|
1.00 |
% |
|
1.01 |
% |
|
1.19 |
% |
|
1.14 |
% |
|
0.79 |
% |
|
|
1.06 |
% |
|
0.81 |
% |
Operating PTPP return on average assets1 |
|
1.39 |
% |
|
1.30 |
% |
|
1.52 |
% |
|
1.45 |
% |
|
1.35 |
% |
|
|
1.40 |
% |
|
1.42 |
% |
Operating return on average shareholders' equity1 |
|
10.01 |
% |
|
9.83 |
% |
|
11.05 |
% |
|
10.34 |
% |
|
7.57 |
% |
|
|
10.28 |
% |
|
7.20 |
% |
Operating return on average tangible common equity1 |
|
13.26 |
% |
|
12.93 |
% |
|
14.53 |
% |
|
13.69 |
% |
|
10.06 |
% |
|
|
13.56 |
% |
|
9.60 |
% |
Operating efficiency ratio1 |
|
62.09 |
% |
|
63.46 |
% |
|
60.32 |
% |
|
60.86 |
% |
|
62.25 |
% |
|
|
61.96 |
% |
|
62.07 |
% |
Operating noninterest income / average assets1 |
|
0.63 |
% |
|
0.58 |
% |
|
0.69 |
% |
|
0.56 |
% |
|
0.49 |
% |
|
|
0.63 |
% |
|
0.46 |
% |
Operating noninterest expense / average assets1 |
|
2.30 |
% |
|
2.29 |
% |
|
2.34 |
% |
|
2.37 |
% |
|
2.25 |
% |
|
|
2.31 |
% |
|
2.35 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Selected Interest
Rates and Yields: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Yield on loans and leases |
|
4.95 |
% |
|
4.52 |
% |
|
4.67 |
% |
|
4.72 |
% |
|
4.71 |
% |
|
|
4.72 |
% |
|
4.95 |
% |
Yield on earning assets, FTE |
|
3.67 |
% |
|
3.65 |
% |
|
3.88 |
% |
|
4.01 |
% |
|
3.88 |
% |
|
|
3.73 |
% |
|
4.27 |
% |
Cost of interest-bearing deposits |
|
0.34 |
% |
|
0.39 |
% |
|
0.44 |
% |
|
0.50 |
% |
|
0.59 |
% |
|
|
0.39 |
% |
|
0.79 |
% |
Cost of total deposits |
|
0.25 |
% |
|
0.29 |
% |
|
0.33 |
% |
|
0.38 |
% |
|
0.44 |
% |
|
|
0.29 |
% |
|
0.61 |
% |
Cost of interest-bearing liabilities |
|
0.44 |
% |
|
0.49 |
% |
|
0.54 |
% |
|
0.60 |
% |
|
0.65 |
% |
|
|
0.49 |
% |
|
0.85 |
% |
Net interest margin, FTE |
|
3.35 |
% |
|
3.29 |
% |
|
3.48 |
% |
|
3.57 |
% |
|
3.39 |
% |
|
|
3.37 |
% |
|
3.62 |
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Per Common
Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income, basic |
$ |
0.62 |
|
$ |
0.59 |
|
$ |
0.65 |
|
$ |
0.60 |
|
$ |
0.42 |
|
|
$ |
1.85 |
|
$ |
1.03 |
|
Net income, diluted |
|
0.61 |
|
|
0.58 |
|
|
0.65 |
|
|
0.59 |
|
|
0.42 |
|
|
|
1.84 |
|
|
1.02 |
|
Operating earnings, basic¹ |
|
0.64 |
|
|
0.60 |
|
|
0.65 |
|
|
0.61 |
|
|
0.44 |
|
|
|
1.90 |
|
|
1.22 |
|
Operating earnings, diluted¹ |
|
0.63 |
|
|
0.60 |
|
|
0.65 |
|
|
0.61 |
|
|
0.44 |
|
|
|
1.88 |
|
|
1.21 |
|
Book value |
|
25.28 |
|
|
24.71 |
|
|
24.10 |
|
|
23.64 |
|
|
22.96 |
|
|
|
25.28 |
|
|
22.96 |
|
Tangible book value¹ |
|
19.03 |
|
|
18.69 |
|
|
18.39 |
|
|
17.92 |
|
|
17.27 |
|
|
|
19.03 |
|
|
17.27 |
|
Common shares outstanding |
|
16,801,447 |
|
|
15,109,736 |
|
|
15,104,536 |
|
|
15,107,214 |
|
|
15,233,227 |
|
|
|
16,801,447 |
|
|
15,233,227 |
|
¹See reconciliation of Non-GAAP measures
SmartFinancial, Inc. and
SubsidiaryCondensed Consolidated Financial
Information - (unaudited)(dollars in
thousands)NON-GAAP RECONCILIATIONS
|
|
Three Months Ended |
|
|
Nine Months Ended |
|
|
|
Sep |
|
Jun |
|
Mar |
|
Dec |
|
Sep |
|
|
Sep |
|
Sep |
|
|
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
|
2021 |
|
2020 |
|
Operating
Earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net income (GAAP) |
|
$ |
9,600 |
|
|
$ |
8,778 |
|
|
$ |
9,756 |
|
|
$ |
9,030 |
|
|
$ |
6,395 |
|
|
|
$ |
28,134 |
|
|
$ |
15,302 |
|
|
Noninterest income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Securities gains (losses), net |
|
|
(45 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9 |
|
|
|
|
(45 |
) |
|
|
(6 |
) |
|
ADECA termination proceeds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(465 |
) |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
Noninterest expenses: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Merger related and restructuring expenses |
|
|
464 |
|
|
|
372 |
|
|
|
103 |
|
|
|
702 |
|
|
|
290 |
|
|
|
|
939 |
|
|
|
3,863 |
|
|
Income taxes: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Income tax effect of adjustments |
|
|
(108 |
) |
|
|
(96 |
) |
|
|
(27 |
) |
|
|
(62 |
) |
|
|
(77 |
) |
|
|
|
(231 |
) |
|
|
(1,009 |
) |
|
Operating earnings (Non-GAAP) |
|
$ |
9,911 |
|
|
$ |
9,054 |
|
|
$ |
9,832 |
|
|
$ |
9,205 |
|
|
$ |
6,617 |
|
|
|
$ |
28,797 |
|
|
$ |
18,150 |
|
|
Operating earnings per common share
(Non-GAAP): |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic |
|
$ |
0.64 |
|
|
$ |
0.60 |
|
|
$ |
0.65 |
|
|
$ |
0.61 |
|
|
$ |
0.44 |
|
|
|
$ |
1.90 |
|
|
$ |
1.22 |
|
|
Diluted |
|
|
0.63 |
|
|
|
0.60 |
|
|
|
0.65 |
|
|
|
0.61 |
|
|
|
0.44 |
|
|
|
|
1.88 |
|
|
|
1.21 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Noninterest
Income: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest income (GAAP) |
|
$ |
6,309 |
|
|
$ |
5,143 |
|
|
$ |
5,691 |
|
|
$ |
4,976 |
|
|
$ |
4,121 |
|
|
|
$ |
17,143 |
|
|
$ |
10,450 |
|
|
Securities gains (losses), net |
|
|
(45 |
) |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
9 |
|
|
|
|
(45 |
) |
|
|
(6 |
) |
|
ADECA termination proceeds |
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(465 |
) |
|
|
— |
|
|
|
|
— |
|
|
|
— |
|
|
Operating noninterest income (Non-GAAP) |
|
$ |
6,264 |
|
|
$ |
5,143 |
|
|
$ |
5,691 |
|
|
$ |
4,511 |
|
|
$ |
4,130 |
|
|
|
$ |
17,098 |
|
|
$ |
10,444 |
|
|
Operating noninterest income (Non-GAAP)/average assets1 |
|
|
0.63 |
|
% |
|
0.58 |
|
% |
|
0.69 |
|
% |
|
0.56 |
|
% |
|
0.49 |
|
% |
|
|
0.63 |
|
% |
|
0.46 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Noninterest
Expense: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Noninterest expense (GAAP) |
|
$ |
23,309 |
|
|
$ |
20,797 |
|
|
$ |
19,464 |
|
|
$ |
19,953 |
|
|
$ |
19,167 |
|
|
|
$ |
63,570 |
|
|
$ |
56,766 |
|
|
Merger related and restructuring expenses |
|
|
(464 |
) |
|
|
(372 |
) |
|
|
(103 |
) |
|
|
(702 |
) |
|
|
(290 |
) |
|
|
|
(939 |
) |
|
|
(3,863 |
) |
|
Operating noninterest expense (Non-GAAP) |
|
$ |
22,845 |
|
|
$ |
20,425 |
|
|
$ |
19,361 |
|
|
$ |
19,251 |
|
|
$ |
18,877 |
|
|
|
$ |
62,631 |
|
|
$ |
52,903 |
|
|
Operating noninterest expense (Non-GAAP)/average assets2 |
|
|
2.30 |
|
% |
|
2.29 |
|
% |
|
2.34 |
|
% |
|
2.37 |
|
% |
|
2.25 |
|
% |
|
|
2.31 |
|
% |
|
2.35 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Pre-tax
Pre-provision ("PTPP") Earnings: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income (GAAP) |
|
$ |
30,382 |
|
|
$ |
26,897 |
|
|
$ |
26,260 |
|
|
$ |
26,506 |
|
|
$ |
26,043 |
|
|
|
$ |
83,539 |
|
|
$ |
74,360 |
|
|
Operating noninterest income |
|
|
6,264 |
|
|
|
5,143 |
|
|
|
5,691 |
|
|
|
4,511 |
|
|
|
4,130 |
|
|
|
|
17,098 |
|
|
|
10,444 |
|
|
Operating noninterest expense |
|
|
(22,845 |
) |
|
|
(20,425 |
) |
|
|
(19,361 |
) |
|
|
(19,251 |
) |
|
|
(18,877 |
) |
|
|
|
(62,631 |
) |
|
|
(52,903 |
) |
|
Operating PTPP earnings (Non-GAAP) |
|
$ |
13,801 |
|
|
$ |
11,615 |
|
|
$ |
12,590 |
|
|
$ |
11,766 |
|
|
$ |
11,296 |
|
|
|
$ |
38,006 |
|
|
$ |
31,901 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-GAAP Return
Ratios: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating return on average assets (Non-GAAP)3 |
|
|
1.00 |
|
% |
|
1.01 |
|
% |
|
1.19 |
|
% |
|
1.14 |
|
% |
|
0.79 |
|
% |
|
|
1.06 |
|
% |
|
0.81 |
|
% |
Operating PTPP return on average assets (Non-GAAP)4 |
|
|
1.39 |
|
% |
|
1.30 |
|
% |
|
1.52 |
|
% |
|
1.45 |
|
% |
|
1.35 |
|
% |
|
|
1.40 |
|
% |
|
1.42 |
|
% |
Return on average tangible common equity (Non-GAAP)5 |
|
|
12.84 |
|
% |
|
12.54 |
|
% |
|
14.41 |
|
% |
|
13.43 |
|
% |
|
9.72 |
|
% |
|
|
13.24 |
|
% |
|
8.10 |
|
% |
Operating return on average shareholders' equity (Non-GAAP)6 |
|
|
10.01 |
|
% |
|
9.83 |
|
% |
|
11.05 |
|
% |
|
10.34 |
|
% |
|
7.57 |
|
% |
|
|
10.28 |
|
% |
|
7.20 |
|
% |
Operating return on average tangible common equity (Non-GAAP)7 |
|
|
13.26 |
|
% |
|
12.93 |
|
% |
|
14.53 |
|
% |
|
13.69 |
|
% |
|
10.06 |
|
% |
|
|
13.56 |
|
% |
|
9.60 |
|
% |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating Efficiency
Ratio: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio (GAAP) |
|
|
63.53 |
|
% |
|
64.91 |
|
% |
|
60.92 |
|
% |
|
63.38 |
|
% |
|
63.54 |
|
% |
|
|
63.14 |
|
% |
|
66.93 |
|
% |
Adjustment for taxable equivalent yields |
|
|
(0.25 |
) |
% |
|
(0.30 |
) |
% |
|
(0.28 |
) |
% |
|
(0.30 |
) |
% |
|
(0.32 |
) |
% |
|
|
(0.28 |
) |
% |
|
(0.33 |
) |
% |
Adjustment for securities gains (losses) |
|
|
(0.08 |
) |
% |
|
— |
|
% |
|
— |
|
% |
|
— |
|
% |
|
0.02 |
|
% |
|
|
(0.03 |
) |
% |
|
(0.01 |
) |
% |
Adjustment for merger related income and costs |
|
|
(1.11 |
) |
% |
|
(1.15 |
) |
% |
|
(0.32 |
) |
% |
|
(2.22 |
) |
% |
|
(0.99 |
) |
% |
|
|
(0.87 |
) |
% |
|
(4.52 |
) |
% |
Operating efficiency ratio (Non-GAAP) |
|
|
62.09 |
|
% |
|
63.46 |
|
% |
|
60.32 |
|
% |
|
60.86 |
|
% |
|
62.25 |
|
% |
|
|
61.96 |
|
% |
|
62.07 |
|
% |
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 PTPP return on
average assets (Non-GAAP) is the annualized operating PTPP earnings
(Non-GAAP) divided by average assets. 5Return on average tangible
common equity (Non-GAAP) is the annualized net income divided by
average tangible common equity (Non-GAAP).6Operating return on
average shareholders’ equity (Non-GAAP) is the annualized operating
earnings (Non-GAAP) divided by average equity.7Operating return on
average tangible common equity (Non-GAAP) is the annualized
operating earnings (Non-GAAP) divided by average tangible common
equity (Non-GAAP).
SmartFinancial, Inc. and
SubsidiaryCondensed Consolidated Financial
Information - (unaudited)(dollars in
thousands)NON-GAAP RECONCILIATIONS
|
|
Three Months Ended |
|
Nine Months Ended |
|
|
Sep |
|
Jun |
|
Mar |
|
Dec |
|
Sep |
|
Sep |
|
Sep |
|
|
2021 |
|
2021 |
|
2021 |
|
2020 |
|
2020 |
|
2021 |
|
2020 |
Tangible Common
Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity (GAAP) |
|
$ |
424,720 |
|
|
$ |
373,393 |
|
|
$ |
364,058 |
|
|
$ |
357,168 |
|
|
$ |
349,789 |
|
|
$ |
424,720 |
|
|
$ |
349,789 |
|
Less goodwill and other intangible assets |
|
|
104,930 |
|
|
|
90,966 |
|
|
|
86,350 |
|
|
|
86,471 |
|
|
|
86,710 |
|
|
|
104,930 |
|
|
|
86,710 |
|
Tangible common equity (Non-GAAP) |
|
$ |
319,790 |
|
|
$ |
282,427 |
|
|
$ |
277,708 |
|
|
$ |
270,697 |
|
|
$ |
263,079 |
|
|
$ |
319,790 |
|
|
$ |
263,079 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average Tangible
Common Equity: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Average shareholders' equity (GAAP) |
|
$ |
392,798 |
|
|
$ |
369,325 |
|
|
$ |
360,919 |
|
|
$ |
354,026 |
|
|
$ |
347,907 |
|
|
$ |
374,464 |
|
|
$ |
336,854 |
|
Less average goodwill and other intangible assets |
|
|
96,250 |
|
|
|
88,551 |
|
|
|
86,424 |
|
|
|
86,561 |
|
|
|
86,206 |
|
|
|
90,445 |
|
|
|
84,361 |
|
Average tangible common equity (Non-GAAP) |
|
$ |
296,548 |
|
|
$ |
280,774 |
|
|
$ |
274,495 |
|
|
$ |
267,465 |
|
|
$ |
261,701 |
|
|
$ |
284,019 |
|
|
$ |
252,493 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Book Value
per Common Share: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Book value per common share (GAAP) |
|
$ |
25.28 |
|
|
$ |
24.71 |
|
|
$ |
24.10 |
|
|
$ |
23.64 |
|
|
$ |
22.96 |
|
|
$ |
25.28 |
|
|
$ |
22.96 |
|
Adjustment due to goodwill and other intangible assets |
|
|
(6.25 |
) |
|
|
(6.02 |
) |
|
|
(5.71 |
) |
|
|
(5.72 |
) |
|
|
(5.69 |
) |
|
|
(6.25 |
) |
|
|
(5.69 |
) |
Tangible book value per common share (Non-GAAP)1 |
|
$ |
19.03 |
|
|
$ |
18.69 |
|
|
$ |
18.39 |
|
|
$ |
17.92 |
|
|
$ |
17.27 |
|
|
$ |
19.03 |
|
|
$ |
17.27 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common Equity
to Tangible Assets: |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total Assets |
|
$ |
4,384,031 |
|
|
$ |
3,654,356 |
|
|
$ |
3,557,203 |
|
|
$ |
3,304,949 |
|
|
$ |
3,387,588 |
|
|
$ |
4,384,031 |
|
|
$ |
3,387,588 |
|
Less goodwill and other intangibles |
|
|
104,930 |
|
|
|
90,966 |
|
|
|
86,350 |
|
|
|
86,471 |
|
|
|
86,710 |
|
|
|
104,930 |
|
|
|
86,710 |
|
Tangible Assets (Non-GAAP): |
|
$ |
4,279,101 |
|
|
$ |
3,563,390 |
|
|
$ |
3,470,853 |
|
|
$ |
3,218,478 |
|
|
$ |
3,300,878 |
|
|
$ |
4,279,101 |
|
|
$ |
3,300,878 |
|
Tangible common equity to tangible assets (Non-GAAP) |
|
|
7.47 |
% |
|
|
7.93 |
% |
|
|
8.00 |
% |
|
|
8.41 |
% |
|
|
7.97 |
% |
|
|
7.47 |
% |
|
|
7.97 |
% |
1Tangible book value per share is computed by dividing total
stockholder's equity, less goodwill and other intangible assets by
common shares outstanding.
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