Advertisement
U.S. markets closed
  • S&P 500

    5,254.35
    +5.86 (+0.11%)
     
  • Dow 30

    39,807.37
    +47.29 (+0.12%)
     
  • Nasdaq

    16,379.46
    -20.06 (-0.12%)
     
  • Russell 2000

    2,124.55
    +10.20 (+0.48%)
     
  • Crude Oil

    83.11
    -0.06 (-0.07%)
     
  • Gold

    2,254.80
    +16.40 (+0.73%)
     
  • Silver

    25.10
    +0.18 (+0.74%)
     
  • EUR/USD

    1.0778
    -0.0015 (-0.14%)
     
  • 10-Yr Bond

    4.2060
    +0.0100 (+0.24%)
     
  • GBP/USD

    1.2622
    +0.0000 (+0.00%)
     
  • USD/JPY

    151.4070
    +0.0350 (+0.02%)
     
  • Bitcoin USD

    70,398.77
    +312.25 (+0.45%)
     
  • CMC Crypto 200

    885.54
    0.00 (0.00%)
     
  • FTSE 100

    7,952.62
    +20.64 (+0.26%)
     
  • Nikkei 225

    40,369.44
    +201.37 (+0.50%)
     

SmartFinancial Announces Results for the Third Quarter 2021

GlobeNewswire Inc.

KNOXVILLE, Tenn., Oct. 19, 2021 (GLOBE NEWSWIRE) -- 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 Subsidiary
Condensed 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 equivalent
2 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 Subsidiary
Condensed 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

Advertisement