SmartFinancial Announces Results for the Third Quarter 2025

SmartFinancial Announces Results for the Third Quarter 2025

KNOXVILLE, Tenn.–(BUSINESS WIRE)–
SmartFinancial, Inc. (“SmartFinancial” or the “Company”; NYSE: SMBK), today announced net income of $13.7 million, or $0.81 per diluted common share, for the third quarter of 2025, compared to net income of $9.1 million, or $0.54 per diluted common share, for the third quarter of 2024, and compared to prior quarter net income of $11.7 million, or $0.69 per diluted common share. Operating earnings¹, which excludes non-recurring income and expenses, net of tax adjustments, totaled $14.5 million, or $0.86 per diluted common share, in the third quarter of 2025, compared to $9.1 million, or $0.54 per diluted common share, in the third quarter of 2024, and compared to $11.7 million, or $0.69 per diluted common share, in the second quarter of 2025.

Highlights for the Third Quarter of 2025

Achieved over $50 million in quarterly operating revenue
Operating earnings¹ of $14.5 million, or $0.86 per diluted common share
Net organic loan and lease growth of $98 million with 10% annualized quarter-over-quarter increase
Deposit growth of $179 million or 15% annualized quarter-over-quarter
Quarter over quarter tangible book value per common share¹ growth of 26%
$4.0 million pre-tax gain associated with the sale of SBK Insurance (“SBKI”)
Repositioned $85 million of available-for-sale securities, resulting in a pre-tax loss of $3.9 million
$100 million subordinated debt issuance to retire existing $40 million subordinated debt and fund additional growth

Billy Carroll, President & CEO, stated: “SmartFinancial continues to demonstrate improvement across all areas, as evidenced by our sixth consecutive quarter of positive operating leverage, 10% annualized organic loan growth, and 15% annualized deposit growth. Tangible book value per common share¹ rose 26% quarter over quarter annualized and asset quality remained solid. Our strategic actions with SBKI unlocked capital but allowed us to remain an invested partner, affording us the best of both worlds. We look forward to a long partnership with SBKI and watching the agency thrive in its next chapter. A special thanks to all our associates for their dedication in executing all the strategic actions this quarter while maintaining operational excellence and exemplifying what SmartBank culture is all about.”

SmartFinancial’s Chairman, Miller Welborn, concluded: “The Board is thrilled that the Company achieved its $50 million in quarterly revenue target ahead of schedule, a true testament to the hard work and dedication of our associates. Additionally, the SBKI partnership, subordinated debt issuance, and securities repositioning has strengthened our balance sheet and positioned us to take advantage of the opportunities ahead. On the heels of these achievements, we look forward to closing out 2025 with increased market share and laying the groundwork for an even stronger 2026.”

Net Interest Income and Net Interest Margin

Net interest income was $42.4 million for the third quarter of 2025, compared to $40.3 million for the prior quarter. Average earning assets totaled $5.23 billion, an increase of $271.4 million from the prior quarter. The balances of average earnings assets changed quarter-over-quarter, primarily from an increase in average loans and leases of $121.0 million and average interest-earning cash of $152.6 million, offset by a decrease in average securities of $2.1 million. Average interest-bearing liabilities increased by $249.4 million from the prior quarter, primarily attributable to an increase in average interest-bearing deposits of $207.4 and average subordinated debt of $45.4 million, offset by a decrease in borrowings of $3.4 million.

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

The tax equivalent net interest margin was 3.25% for the third quarter of 2025, down from 3.29% for the prior quarter. Asset yields stayed strong, but interest-bearing liability costs rose more rapidly than yields on interest-earning assets, partly due to the new subordinated debt issuance. The yield on loans and leases, excluding loan fees, on a fully tax equivalent basis (“FTE”) was 6.05% for the third quarter of 2025, compared to 5.99% for the prior quarter.

The cost of total deposits for the third quarter of 2025 was 2.44%, compared to 2.39% in the prior quarter. The cost of interest-bearing liabilities was 3.07% for the third quarter of 2025, compared to 2.99% in the prior quarter. The cost of average interest-bearing deposits was 2.98% for the third quarter of 2025, compared to 2.95% for the prior quarter, an increase of three basis points.

The following table presents selected interest rates and yields for the periods indicated:

	Three Months Ended
	Sep		Jun		Increase
Selected Interest Rates and Yields	2025		2025		(Decrease)
Yield on loans and leases, excluding loan fees, FTE	6.05	%	5.99	%	0.06	%
Yield on loans and leases, FTE	6.14	%	6.07	%	0.07	%
Yield on earning assets, FTE	5.68	%	5.65	%	0.03	%
Cost of interest-bearing deposits	2.98	%	2.95	%	0.03	%
Cost of total deposits	2.44	%	2.39	%	0.05	%
Cost of interest-bearing liabilities	3.07	%	2.99	%	0.08	%
Net interest margin, FTE	3.25	%	3.29	%	(0.04	)%

Provision for Credit Losses on Loans and Leases and Credit Quality

At September 30, 2025, the allowance for credit losses was $39.1 million. The allowance for credit losses to total loans and leases was 0.93% as of September 30, 2025, and 0.96% as of June 30, 2025.

The following table presents detailed information related to the provision for credit losses for the periods indicated (dollars in thousands):

	Three Months Ended
	Sep				Jun					Increase
Provision for Credit Losses on Loans and Leases Rollforward	2025				2025					(Decrease)
Beginning balance	$	39,776			$	38,175			$	1,601
Charge-offs		(1,145	)			(269	)			(876	)
Recoveries		92				123				(31	)
Net charge-offs		(1,053	)			(146	)			(907	)
Provision for credit losses ⁽¹⁾		351				1,747				(1,396	)
Ending balance	$	39,074			$	39,776			$	(702	)

Allowance for credit losses to total loans and leases, gross		0.93		%		0.96		%		(0.03	)%

⁽¹⁾	The current quarter-ended and prior quarter-ended excludes an unfunded commitments release of $124 thousand and a provision of $664 thousand, respectively. At September 30, 2025, the unfunded commitment liability totaled $3.2 million.

Nonperforming loans and leases as a percentage of total loans and leases was 0.24% as of September 30, 2025, and 0.19% as of June 30, 2025. 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 0.22% as of September 30, 2025, and 0.19% as of June 30, 2025.

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		2025			2025			(Decrease)
Nonaccrual loans and leases	$	9,970		$	7,889		$	2,081
Loans and leases past due 90 days or more and still accruing		129			32			97
Total nonperforming loans and leases		10,099			7,921			2,178
Other real estate owned		–			144			(144	)
Other repossessed assets		2,444			2,397			47
Total nonperforming assets	$	12,543		$	10,462		$	2,081

Nonperforming loans and leases to total loans and leases, gross		0.24	%		0.19	%		0.05	%
Nonperforming assets to total assets		0.22	%		0.19	%		0.03	%

Noninterest Income

Noninterest income decreased $261 thousand to $8.6 million for the third quarter of 2025, compared to $8.9 million for the prior quarter. The third quarter decrease was associated with a pre-tax loss of $3.9 million on the sale of $85 million of available-for-sale securities and the reduction of insurance commissions from the sale of SBKI and lower capital markets income included in other noninterest income. These decreases were offset by a pre-tax gain on the sale of SBKI of $4.0 million.

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		2025			2025			(Decrease)
Service charges on deposit accounts	$	1,831		$	1,766		$	65
Loss on sale of securities		(3,715	)		(4	)		(3,711	)
Mortgage banking income		709			633			76
Investment services		1,690			1,440			250
Insurance commissions		1,049			1,554			(505	)
Interchange and debit card transaction fees		1,338			1,342			(4	)
Gain on sale of SBKI		3,955			–			3,955
Other		1,780			2,167			(387	)
Total noninterest income	$	8,637		$	8,898		$	(261	)

Noninterest Expense

Noninterest expense increased $1.3 million to $33.9 million for the third quarter of 2025, compared to $32.6 million for the prior quarter. The third quarter’s increase was primarily attributable to an increase in restructuring expenses.

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		2025		2025		(Decrease)
Salaries and employee benefits	$	19,544	$	19,602	$	(58	)
Occupancy and equipment		3,468		3,432		36
FDIC insurance		1,025		992		33
Other real estate and loan related expenses		969		757		212
Advertising and marketing		454		390		64
Data processing and technology		2,594		2,651		(57	)
Professional services		1,123		1,153		(30	)
Amortization of intangibles		536		566		(30	)
Restructuring expenses		1,310		–		1,310
Other		2,846		3,026		(180	)
Total noninterest expense	$	33,869	$	32,569	$	1,300

Income Tax Expense

Income tax expense was $3.3 million for the third quarter of 2025, an increase of $729 thousand, compared to $2.6 million for the prior quarter.

Balance Sheet Trends

Total assets at September 30, 2025, were $5.78 billion compared to $5.28 billion at December 31, 2024. The $509.1 million increase is primarily attributable to increases in loans and leases of $316.0 million, cash and cash equivalents of $169.6 million, securities of $25.5 million, other investments of $3.9 million and bank owned life insurance of $2.7 million, offset by a decrease in goodwill and other intangibles of $8.9 million, primarily associated with the sale of SBKI.

Total liabilities were $5.25 billion at September 30, 2025, compared to $4.78 billion at December 31, 2024, an increase of $462.1 million. Total deposits increased $364.4 million, which was driven primarily by increases in money market deposits of $178.8 million, other time deposits of $174.4 million, and interest-bearing demand deposits of $92.7 million, offset by a decline in brokered deposits of $47.4 million and noninterest demand deposits of $34.1 million. In addition, subordinated debt increased by $98.9 million.

Shareholders’ equity at September 30, 2025, totaled $538.5 million, an increase of $47.0 million, from December 31, 2024. The increase in shareholders’ equity was primarily driven by net income of $36.6 million for the nine months ending September 30, 2025, and a positive change of $12.9 million in accumulated other comprehensive loss, offset by dividends paid of $4.1 million. Tangible book value per common share¹ was $26.00 at September 30, 2025, compared to $22.85 at December 31, 2024. Tangible common equity¹ as a percentage of tangible assets¹ was 7.78% at September 30, 2025, compared with 7.48% at December 31, 2024.

The following table presents selected balance sheet information for the periods indicated (dollars in thousands):

	Sep		Dec		Increase
Selected Balance Sheet Information	2025		2024		(Decrease)
Total assets	$	5,784,983	$	5,275,904	$	509,079
Total liabilities		5,246,501		4,784,443		462,058
Total equity		538,482		491,461		47,021
Securities		634,459		608,987		25,472
Loans and leases		4,222,369		3,906,340		316,029
Deposits		5,050,897		4,686,483		364,414
Borrowings		1,301		8,135		(6,834	)

Conference Call Information

SmartFinancial issued this earnings release for the third quarter of 2025 on Tuesday, October 21, 2025, and will host a conference call on Wednesday, October 22, 2025, at 10:00 a.m. ET. To access this interactive teleconference, dial (833) 470-1428 or (646) 844-6383 and enter the access code, 241226. A replay of the conference call will be available through December 31, 2025, by dialing (866) 813-9403 or (929) 458-6194 and enter the access code, 307268. Conference call materials will be published on the Company’s webpage located at http://www.smartfinancialinc.com/CorporateProfile, at 9:00 a.m. ET prior to the conference call.

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

About SmartFinancial, Inc.

SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with branches across Tennessee, Alabama, and Florida. Recruiting the best people, delivering exceptional client service, strategic branching, and a disciplined approach to lending have contributed to SmartBank’s success. More information about SmartFinancial can be found on its website: www.smartfinancialinc.com.

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 (“Non-GAAP”) 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 and ratios derived therefrom in its analysis of the Company’s performance, including:

Operating earnings
Operating noninterest income
Operating noninterest expense
Operating pre-provision net revenue (“PPNR”) earnings
Tangible common equity
Average tangible common equity
Tangible book value per common share
Tangible assets
Operating efficiency ratio

Operating earnings, operating PPNR earnings, operating noninterest income and operating noninterest expense exclude non-operating related income and expense items from net income, noninterest income and noninterest expense, respectively. Tangible common equity and average tangible common equity exclude goodwill and other intangible assets from shareholders’ equity and average shareholders’ equity, respectively. Tangible book value per common share is tangible common equity divided by common shares outstanding. Tangible assets excludes goodwill and other intangibles from total assets. Operating efficiency ratio is the quotient of operating noninterest expense divided by the sum of net interest income adjusted for taxable equivalent yields plus operating noninterest income. A detailed reconciliation of these items and the ratios derived therefrom is available in the Non-GAAP reconciliations.

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 also believes these Non-GAAP financial measures enhance investors’ ability to compare period-to-period financial results and allow investors and company management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.

Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider SmartFinancial’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.

Forward-Looking Statements

This news release may contain statements that are based on management’s current estimates or expectations of future events or future results, and that may be deemed to constitute forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements are not historical in nature and can generally be identified by such words as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “may,” “estimate,” and similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results of SmartFinancial to differ materially from future results expressed or implied by such forward-looking statements. Such risks, uncertainties, and other factors include, among others,

(1)	risks associated with our growth strategy, including a failure to implement our growth plans or an inability to manage our growth effectively;
(2)	claims and litigation arising from our business activities and from the companies we acquire, which may relate to contractual issues, environmental laws, fiduciary responsibility, and other matters;
(3)	general risks related to our disposition, merger and acquisition activity, including risks associated with our pursuit of future acquisitions or sales;
(4)	changes in management’s plans for the future;
(5)	prevailing, or changes in, economic or political conditions (including those resulting from the new administration and Congress), particularly in our market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing;
(6)	our ability to anticipate interest rate changes and manage interest rate risk (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business and the impact of interest rate fluctuations on our financial projections, models and guidance);
(7)	tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services);
(8)	uncertain duration of trade conflicts and the magnitude of the impact that proposed tariffs may have on our customers’ businesses;
(9)	increased technology and cybersecurity risks, including generative artificial intelligence risks;
(10)	the impact of a failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting us and our customers;
(11)	credit risk associated with our lending activities;
(12)	changes in loan demand, real estate values, or competition;
(13)	developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance;
(14)	changes in accounting principles, policies, or guidelines;
(15)	changes in applicable laws, rules, or regulations;
(16)	adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions;
(17)	potential impacts of any adverse developments in the banking industry, including the impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto;
(18)	significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities;
(19)	the effects of war or other conflicts;
(20)	the impact of government actions or inactions, including a prolonged shutdown of the federal government; and
(21)	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
	2025			2025			2025			2024			2024
Assets:
Cash and cash equivalents	$	557,127		$	365,096		$	422,984		$	387,570		$	192,914
Securities available-for-sale, at fair value		511,095			502,150			499,445			482,328			501,336
Securities held-to-maturity, at amortized cost		123,364			124,520			125,576			126,659			127,779
Other investments		14,888			14,713			14,371			14,740			20,352
Loans held for sale		9,855			5,484			3,843			5,996			5,804
Loans and leases		4,222,369			4,124,062			3,992,207			3,906,340			3,717,478
Less: Allowance for credit losses		(39,074	)		(39,776	)		(38,175	)		(37,423	)		(35,609	)
Loans and leases, net		4,183,295			4,084,286			3,954,032			3,868,917			3,681,869
Premises and equipment, net		89,250			90,204			90,708			91,093			91,055
Other real estate owned		—			144			144			179			179
Goodwill and other intangibles, net		95,807			103,588			104,154			104,723			105,324
Bank owned life insurance		118,610			117,697			116,805			115,917			105,025
Other assets		81,692			82,981			79,155			77,782			77,297
Total assets	$	5,784,983		$	5,490,863		$	5,411,217		$	5,275,904		$	4,908,934
Liabilities:
Deposits:
Noninterest-bearing demand	$	931,477		$	906,965		$	884,294		$	965,552		$	863,949
Interest-bearing demand		929,454			843,820			885,063			836,731			834,207
Money market and savings		2,218,313			2,124,623			2,131,828			2,039,560			1,854,777
Time deposits		971,653			996,712			907,474			844,640			769,558
Total deposits		5,050,897			4,872,120			4,808,659			4,686,483			4,322,491
Borrowings		1,301			6,966			7,610			8,135			8,997
Subordinated debt		138,604			39,726			39,705			39,684			39,663
Other liabilities		55,699			52,924			49,302			50,141			48,760
Total liabilities		5,246,501			4,971,736			4,905,276			4,784,443			4,419,911
Shareholders’ Equity:
Common stock		17,028			17,018			17,018			16,926			16,926
Additional paid-in capital		295,742			295,209			294,736			294,269			293,909
Retained earnings		236,380			224,061			213,721			203,824			195,537
Accumulated other comprehensive loss		(10,781	)		(17,274	)		(19,647	)		(23,671	)		(17,349	)
Total shareholders’ equity attributable to SmartFinancial Inc. and Subsidiary		538,369			519,014			505,828			491,348			489,023
Non-controlling interest – preferred stock of subsidiary		113			113			113			113			—
Total shareholders’ equity		538,482			519,127			505,941			491,461			489,023
Total liabilities & shareholders’ equity	$	5,784,983		$	5,490,863		$	5,411,217		$	5,275,904		$	4,908,934

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
	2025			2025			2024		2024		2024		2025			2024
Interest income:
Loans and leases, including fees	$	64,282		$	61,049		$	57,762	$	57,951	$	54,738	$	183,094		$	155,611
Investment securities:
Taxable		4,876			4,848			4,775		5,050		5,233		14,499			15,101
Tax-exempt		441			395			354		351		350		1,190			1,056
Federal funds sold and other earning assets		4,919			3,161			3,485		2,744		3,635		11,565			13,255
Total interest income		74,518			69,453			66,376		66,096		63,956		210,348			185,023
Interest expense:
Deposits		30,464			28,301			27,335		27,437		27,350		86,100			81,824
Borrowings		14			70			70		89		709		155			985
Subordinated debt		1,610			739			733		787		865		3,082			2,647
Total interest expense		32,088			29,110			28,138		28,313		28,924		89,337			85,456
Net interest income		42,430			40,343			38,238		37,783		35,032		121,011			99,567
Provision for credit losses		227			2,411			979		2,135		2,575		3,618			3,018
Net interest income after provision for credit losses		42,203			37,932			37,259		35,648		32,457		117,393			96,549
Noninterest income:
Service charges on deposit accounts		1,831			1,766			1,736		1,778		1,780		5,333			5,084
Gain (loss) on sale of securities, net		(3,715	)		(4	)		—		64		—		(3,719	)		—
Mortgage banking		709			633			493		541		410		1,835			1,038
Investment services		1,690			1,440			1,769		1,382		1,881		4,899			4,563
Insurance commissions		1,049			1,554			1,412		1,832		1,477		4,016			3,865
Interchange and debit card transaction fees		1,338			1,342			1,220		1,332		1,349		3,900			3,945
Gain on sale of SBKI		3,955			—			—		—		—		3,955			—
Other		1,780			2,167			1,967		2,101		2,242		5,914			6,627
Total noninterest income		8,637			8,898			8,597		9,030		9,139		26,133			25,122
Noninterest expense:
Salaries and employee benefits		19,544			19,602			19,234		19,752		18,448		58,380			52,348
Occupancy and equipment		3,468			3,432			3,397		3,473		3,423		10,298			10,144
FDIC insurance		1,025			992			960		825		825		2,977			2,565
Other real estate and loan related expense		969			757			658		1,241		460		2,383			1,582
Advertising and marketing		454			390			382		397		327		1,226			924
Data processing and technology		2,594			2,651			2,657		2,495		2,519		7,903			7,435
Professional services		1,123			1,153			1,368		1,017		1,201		3,643			3,190
Amortization of intangibles		536			566			569		601		604		1,671			1,824
Restructuring expenses		1,310			—			—		—		—		1,310			—
Other		2,846			3,026			3,071		2,490		3,039		8,945			8,587
Total noninterest expense		33,869			32,569			32,296		32,291		30,846		98,736			88,599
Income before income taxes		16,971			14,261			13,560		12,387		10,750		44,790			33,072
Income tax expense		3,285			2,556			2,306		2,747		1,610		8,146			6,572
Net income	$	13,686		$	11,705		$	11,254	$	9,640	$	9,140	$	36,644		$	26,500
Earnings per common share:
Basic	$	0.82		$	0.70		$	0.67	$	0.58	$	0.55	$	2.18		$	1.58
Diluted	$	0.81		$	0.69		$	0.67	$	0.57	$	0.54	$	2.17		$	1.57
Weighted average common shares outstanding:
Basic		16,781,236			16,778,988			16,767,535		16,729,509		16,726,658		16,775,970			16,782,200
Diluted		16,908,920			16,878,736			16,872,097		16,863,780		16,839,998		16,886,153			16,874,316

SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information – (unaudited) (dollars in thousands) YIELD ANALYSIS

	Three Months Ended
	September 30, 2025						June 30, 2025						September 30, 2024
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Loans and leases, including fees¹	$	4,171,444	$	64,526	6.14	%	$	4,050,485	$	61,294	6.07	%	$	3,634,808	$	54,993	6.02	%
Taxable securities		556,894		4,876	3.47	%		562,660		4,848	3.46	%		564,978		5,233	3.68	%
Tax-exempt securities²		69,843		558	3.17	%		66,223		500	3.03	%		63,561		443	2.77	%
Federal funds sold and other earning assets		428,209		4,919	4.56	%		275,647		3,161	4.60	%		267,252		3,634	5.41	%
Total interest-earning assets		5,226,390		74,879	5.68	%		4,955,015		69,803	5.65	%		4,530,599		64,303	5.65	%
Noninterest-earning assets		408,560						405,804						381,306
Total assets	$	5,634,950					$	5,360,819					$	4,911,905

Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits	$	869,690		4,048	1.85	%	$	835,394		3,785	1.82	%	$	925,307		5,289	2.27	%
Money market and savings deposits		2,186,245		16,693	3.03	%		2,104,236		15,762	3.00	%		1,917,301		16,608	3.45	%
Time deposits		1,005,800		9,723	3.84	%		914,658		8,754	3.84	%		560,699		5,453	3.87	%
Total interest-bearing deposits		4,061,735		30,464	2.98	%		3,854,288		28,301	2.95	%		3,403,307		27,350	3.20	%
Borrowings		4,351		14	1.28	%		7,783		70	3.61	%		53,592		709	5.26	%
Subordinated debt		85,113		1,610	7.50	%		39,714		739	7.46	%		40,846		865	8.42	%
Total interest-bearing liabilities		4,151,199		32,088	3.07	%		3,901,785		29,110	2.99	%		3,497,745		28,924	3.29	%
Noninterest-bearing deposits		900,079						898,428						884,938
Other liabilities		57,843						49,539						50,580
Total liabilities		5,109,121						4,849,752						4,433,263
Shareholders’ equity		525,829						511,067						478,642
Total liabilities and shareholders’ equity	$	5,634,950					$	5,360,819					$	4,911,905

Net interest income, taxable equivalent			$	42,791					$	40,693					$	35,379
Interest rate spread					2.62	%					2.66	%					2.36	%
Tax equivalent net interest margin					3.25	%					3.29	%					3.11	%

Percentage of average interest-earning assets to average interest-bearing liabilities					125.90	%					126.99	%					129.53	%
Percentage of average equity to average assets					9.33	%					9.53	%					9.74	%

¹Yields computed on tax-exempt loans on a tax equivalent basis include $244 thousand, $245 thousand, and $255 thousand of taxable equivalent income for the quarters ended September 30, 2025, June 30, 2025, and September 30, 2024, respectively.

²Yields computed on tax-exempt instruments on a tax equivalent basis include $117 thousand, $105 thousand, and $93 thousand of taxable equivalent income for the quarters ended September 30, 2025, June 30, 2025, and September 30, 2024, respectively.

SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information – (unaudited) (dollars in thousands) YIELD ANALYSIS

	Nine Months Ended
	September 30, 2025							September 30, 2024
	Average				Yield/			Average				Yield/
	Balance		Interest		Cost			Balance		Interest		Cost
Assets:
Loans and leases, including fees¹	$	4,055,251	$	183,829		6.06	%	$	3,532,768	$	156,123	5.90	%
Taxable securities		558,493		14,499		3.47	%		588,679		15,101	3.43	%
Tax-exempt securities²		66,408		1,506		3.03	%		63,804		1,336	2.80	%
Federal funds sold and other earning assets		337,385		11,566		4.58	%		322,339		13,255	5.49	%
Total interest-earning assets		5,017,537		211,400		5.63	%		4,507,590		185,815	5.51	%
Noninterest-earning assets		406,751							381,743
Total assets	$	5,424,288						$	4,889,333

Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits	$	850,720		11,577		1.82	%	$	968,139		17,299	2.39	%
Money market and savings deposits		2,118,652		47,518		3.00	%		1,910,452		49,285	3.45	%
Time deposits		934,255		27,005		3.86	%		543,887		15,240	3.74	%
Total interest-bearing deposits		3,903,627		86,100		2.95	%		3,422,478		81,824	3.19	%
Borrowings		6,769		155		3.06	%		25,941		985	5.07	%
Subordinated debt		55,006		3,082		7.49	%		41,691		2,647	8.48	%
Total interest-bearing liabilities		3,965,402		89,337		3.01	%		3,490,110		85,456	3.27	%
Noninterest-bearing deposits		894,254							882,168
Other liabilities		52,905							48,299
Total liabilities		4,912,561							4,420,577
Shareholders’ equity		511,727							468,756
Total liabilities and shareholders’ equity	$	5,424,288						$	4,889,333

Net interest income, taxable equivalent			$	122,063						$	100,359
Interest rate spread						2.62	%					2.24	%
Tax equivalent net interest margin						3.25	%					2.97	%

Percentage of average interest-earning assets to average interest-bearing liabilities						126.53	%					129.15	%
Percentage of average equity to average assets						9.43	%					9.59	%

¹Yields computed on tax-exempt loans on a tax equivalent basis include $735 thousand and $512 thousand of taxable equivalent income for the nine months ended September 30, 2025, and 2024, respectively.

²Yields computed on tax-exempt instruments on a tax equivalent basis include $316 thousand and $280 thousand of taxable equivalent income for the nine months ended September 30, 2025, and 2024, respectively.

SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information – (unaudited) (dollars in thousands)

	As of and for The Three Months Ended
	Sep			Jun			Mar			Dec			Sep
	2025			2025			2025			2024			2024
Composition of Loans and Leases:
Commercial real estate:
Non-owner occupied	$	1,136,080		$	1,114,133		$	1,117,392		$	1,080,404		$	1,031,708
Owner occupied		1,012,088			958,989			885,396			867,678			868,077
Commercial real estate, total		2,148,168			2,073,122			2,002,788			1,948,082			1,899,785
Consumer real estate		811,150			803,270			784,602			741,836			690,504
Construction & land development		390,691			391,155			357,393			361,735			315,006
Commercial & industrial		794,751			778,754			768,454			775,620			731,600
Leases		60,301			62,495			64,208			64,878			67,052
Consumer and other		17,308			15,266			14,762			14,189			13,531
Total loans and leases	$	4,222,369		$	4,124,062		$	3,992,207		$	3,906,340		$	3,717,478

Asset Quality and Additional Loan Data:
Nonperforming loans and leases	$	10,099		$	7,921		$	7,807		$	7,872		$	9,491
Other real estate owned		—			144			144			179			179
Other repossessed assets		2,444			2,397			2,414			2,037			2,949
Total nonperforming assets	$	12,543		$	10,462		$	10,365		$	10,088		$	12,619
Modified loans and leases¹ not included in nonperforming loans and leases	$	1,783		$	1,660		$	1,978		$	3,989		$	4,053
Net charge-offs to average loans and leases (annualized)		0.10	%		0.01	%		0.01	%		0.02	%		0.15	%
Allowance for credit losses to loans and leases		0.93	%		0.96	%		0.96	%		0.96	%		0.96	%
Nonperforming loans and leases to total loans and leases, gross		0.24	%		0.19	%		0.20	%		0.20	%		0.26	%
Nonperforming assets to total assets		0.22	%		0.19	%		0.19	%		0.19	%		0.26	%

Capital Ratios:
Equity to Assets		9.31	%		9.45	%		9.35	%		9.32	%		9.96	%
Tangible common equity to tangible assets (Non-GAAP)²		7.78	%		7.71	%		7.57	%		7.48	%		7.99	%

SmartFinancial, Inc.³
Tier 1 leverage		8.20	%		8.25	%		8.16	%		8.29	%		8.44	%
Common equity Tier 1		9.85	%		9.67	%		9.79	%		9.76	%		10.06	%
Tier 1 capital		9.85	%		9.67	%		9.79	%		9.76	%		10.06	%
Total capital		13.31	%		11.04	%		11.18	%		11.10	%		11.62	%

SmartBank³
Tier 1 leverage		9.59	%		8.88	%		8.76	%		8.94	%		9.17	%
Common equity Tier 1		11.56	%		10.41	%		10.51	%		10.51	%		10.92	%
Tier 1 capital		11.56	%		10.41	%		10.51	%		10.51	%		10.92	%
Total capital		12.37	%		11.25	%		11.35	%		11.30	%		11.69	%

¹Borrowers that have experienced financial difficulty.

²Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures.

³Current 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
	2025			2025			2025			2024			2024			2025			2024
Selected Performance Ratios (Annualized):
Return on average assets		0.96	%		0.88	%		0.87	%		0.75	%		0.74	%		0.90	%		0.72	%
Return on average shareholders’ equity		10.33	%		9.19	%		9.17	%		7.84	%		7.60	%		9.57	%		7.55	%
Return on average tangible common equity¹		12.79	%		11.53	%		11.60	%		9.99	%		9.75	%		11.99	%		9.77	%
Noninterest income / average assets		0.61	%		0.67	%		0.66	%		0.71	%		0.74	%		0.64	%		0.69	%
Noninterest expense / average assets		2.38	%		2.44	%		2.48	%		2.52	%		2.50	%		2.43	%		2.42	%
Efficiency ratio		66.32	%		66.14	%		68.96	%		68.98	%		69.83	%		67.10	%		71.06	%

Operating Selected Performance Ratios (Annualized):
Operating return on average assets¹		1.02	%		0.88	%		0.87	%		0.75	%		0.74	%		0.92	%		0.69	%
Operating PPNR return on average assets¹		1.29	%		1.25	%		1.12	%		1.13	%		1.08	%		1.22	%		0.94	%
Operating return on average shareholders’ equity¹		10.92	%		9.19	%		9.17	%		7.80	%		7.60	%		9.78	%		7.21	%
Operating return on average tangible common equity¹		13.53	%		11.53	%		11.60	%		9.94	%		9.75	%		12.25	%		9.32	%
Operating efficiency ratio¹		63.61	%		65.66	%		68.46	%		68.58	%		69.28	%		65.85	%		71.55	%
Operating noninterest income / average assets¹		0.59	%		0.67	%		0.66	%		0.70	%		0.74	%		0.64	%		0.64	%
Operating noninterest expense / average assets¹		2.29	%		2.44	%		2.48	%		2.52	%		2.50	%		2.40	%		2.42	%

Selected Interest Rates and Yields:
Yield on loans and leases, excluding loan fees, FTE		6.05	%		5.99	%		5.88	%		5.95	%		5.95	%		5.98	%		5.82	%
Yield on loans and leases, FTE		6.14	%		6.07	%		5.97	%		6.04	%		6.02	%		6.06	%		5.90	%
Yield on earning assets, FTE		5.68	%		5.65	%		5.56	%		5.64	%		5.65	%		5.63	%		5.51	%
Cost of interest-bearing deposits		2.98	%		2.95	%		2.92	%		3.02	%		3.20	%		2.95	%		3.19	%
Cost of total deposits		2.44	%		2.39	%		2.37	%		2.43	%		2.54	%		2.40	%		2.54	%
Cost of interest-bearing liabilities		3.07	%		2.99	%		2.97	%		3.08	%		3.29	%		3.01	%		3.27	%
Net interest margin, FTE		3.25	%		3.29	%		3.21	%		3.24	%		3.11	%		3.25	%		2.97	%

Per Common Share:
Net income, basic	$	0.82		$	0.70		$	0.67		$	0.58		$	0.55		$	2.18		$	1.58
Net income, diluted		0.81			0.69			0.67			0.57			0.54			2.17			1.57
Operating earnings, basic¹		0.86			0.70			0.67			0.57			0.55			2.23			1.51
Operating earnings, diluted¹		0.86			0.69			0.67			0.57			0.54			2.22			1.50
Book value per common share		31.62			30.51			29.73			29.04			28.89			31.62			28.89
Tangible book value per common share¹		26.00			24.42			23.61			22.85			22.67			26.00			22.67
Common shares outstanding		17,028,001			17,017,547			17,017,547			16,925,672			16,926,374			17,028,001			16,926,374

¹ Non-GAAP measure. See reconciliation of Non-GAAP measures.

SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information – (unaudited) (dollars in thousands) NON-GAAP RECONCILIATIONS

	Three Months Ended																				Nine Months Ended
	Sep				Jun				Mar				Dec				Sep				Sep				Sep
	2025				2025				2025				2024				2024				2025				2024
Operating Earnings:
Net income (GAAP)	$	13,686			$	11,705			$	11,254			$	9,640			$	9,140			$	36,644			$	26,500
Noninterest income:
Securities losses (gains), net		3,715				4				—				(64	)			—				3,719				—
Gain on sale of former branch building		—				—				—				—				—				—				(1,629	)
Gain on sale of SBKI		(3,955	)			—				—				—				—				(3,955	)			—
Noninterest expenses:
Restructuring expenses		1,310				—				—				—				—				1,310				—
Income taxes:
Income tax effect of adjustments		(276	)			(1	)			—				17				—				(277	)			421
Operating earnings (Non-GAAP)	$	14,480			$	11,708			$	11,254			$	9,593			$	9,140			$	37,441			$	25,292
Operating earnings per common share (Non-GAAP):
Basic	$	0.86			$	0.70			$	0.67			$	0.57			$	0.55			$	2.23			$	1.51
Diluted		0.86				0.69				0.67				0.57				0.54				2.22				1.50

Operating Noninterest Income:
Noninterest income (GAAP)	$	8,637			$	8,898			$	8,597			$	9,030			$	9,139			$	26,133			$	25,122
Securities losses (gains), net		3,715				4				—				(64	)			—				3,719				—
Gain on sale of former branch building		—				—				—				—				—				—				(1,629	)
Gain on sale of SBKI		(3,955	)			—				—				—				—				(3,955	)			—
Operating noninterest income (Non-GAAP)	$	8,397			$	8,902			$	8,597			$	8,966			$	9,139			$	25,897			$	23,493
Operating noninterest income (Non-GAAP)/average assets¹		0.59		%		0.67		%		0.66		%		0.70		%		0.74		%		0.64		%		0.64

Operating Noninterest Expense:
Noninterest expense (GAAP)	$	33,869			$	32,569			$	32,296			$	32,291			$	30,846			$	98,736			$	88,599
Restructuring expenses		(1,310	)			—				—				—				—				(1,310	)			—
Operating noninterest expense (Non-GAAP)	$	32,559			$	32,569			$	32,296			$	32,291			$	30,846			$	97,426			$	88,599
Operating noninterest expense (Non-GAAP)/average assets²		2.29		%		2.44		%		2.48		%		2.52		%		2.50		%		2.40		%		2.42

Operating Pre-provision Net revenue (“PPNR”) Earnings:
Net interest income (GAAP)	$	42,430			$	40,343			$	38,238			$	37,783			$	35,032			$	121,011			$	99,567
Operating noninterest income (Non-GAAP)		8,397				8,902				8,597				8,966				9,139				25,897				23,493
Operating noninterest expense (Non-GAAP)		(32,559	)			(32,569	)			(32,296	)			(32,291	)			(30,846	)			(97,426	)			(88,599	)
Operating PPNR earnings (Non-GAAP)	$	18,268			$	16,676			$	14,539			$	14,458			$	13,325			$	49,482			$	34,461

Non-GAAP Return Ratios:
Operating return on average assets (Non-GAAP)³		1.02		%		0.88		%		0.87		%		0.75		%		0.74		%		0.92		%		0.69
Operating PPNR return on average assets (Non-GAAP)⁴		1.29		%		1.25		%		1.12		%		1.13		%		1.08		%		1.22		%		0.94
Return on average tangible common equity (Non-GAAP)⁵		12.79		%		11.53		%		11.60		%		9.99		%		9.75		%		11.99		%		9.77
Operating return on average shareholders’ equity (Non-GAAP)⁶		10.92		%		9.19		%		9.17		%		7.80		%		7.60		%		9.78		%		7.21
Operating return on average tangible common equity (Non-GAAP)⁷		13.53		%		11.53		%		11.60		%		9.94		%		9.75		%		12.25		%		9.32

Operating Efficiency Ratio:
Efficiency ratio (GAAP)		66.32		%		66.14		%		68.96		%		68.98		%		69.83		%		67.10		%		71.06
Adjustment for taxable equivalent yields		(0.47	)	%		(0.47	)	%		(0.50	)	%		(0.49	)	%		(0.55	)	%		(0.48	)	%		(0.45	)
Adjustment for securities gains (losses)		(4.50	)	%		(0.01	)	%		—		%		0.09		%		—		%		(1.65	)	%		—
Adjustment for sale of branch location		—		%		—		%		—		%		—		%		—		%		—		%		0.94
Adjustment for sale of SBKI		5.57		%		—		%		—		%		—		%		—		%		1.85		%		—
Adjustment for restructuring cost		(3.31	)	%		—		%		—		%		—		%		—		%		(0.97	)	%		—
Operating efficiency ratio (Non-GAAP)		63.61		%		65.66		%		68.46		%		68.58		%		69.28		%		65.85		%		71.55

¹Operating noninterest income (Non-GAAP) is annualized and divided by average assets.

²Operating noninterest expense (Non-GAAP) is annualized and divided by average assets.

³Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets.

⁴Operating PPNR return on average assets (Non-GAAP) is the annualized operating PPNR earnings (Non-GAAP) divided by average assets.

⁵Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP).

⁶Operating return on average shareholders’ equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average equity.

⁷Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP).

SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information – (unaudited) (dollars in thousands) NON-GAAP RECONCILIATIONS

	Three Months Ended
	Sep			Jun			Mar			Dec			Sep
	2025			2025			2025			2024			2024
Tangible Common Equity:
Shareholders’ equity (GAAP)	$	538,482		$	519,127		$	505,941		$	491,461		$	489,023
Less goodwill and other intangible assets		95,807			103,588			104,154			104,723			105,324
Tangible common equity (Non-GAAP)	$	442,675		$	415,539		$	401,787		$	386,738		$	383,699

Average Tangible Common Equity:
Average shareholders’ equity (GAAP)	$	525,829		$	511,067		$	497,980		$	489,172		$	478,642
Less average goodwill and other intangible assets		101,326			103,936			104,504			105,093			105,701
Average tangible common equity (Non-GAAP)	$	424,503		$	407,131		$	393,476		$	384,079		$	372,941

Tangible Book Value per Common Share:
Book value per common share (GAAP)	$	31.62		$	30.51		$	29.73		$	29.04		$	28.89
Adjustment due to goodwill and other intangible assets		(5.63	)		(6.09	)		(6.12	)		(6.19	)		(6.22	)
Tangible book value per common share (Non-GAAP)¹	$	26.00		$	24.42		$	23.61		$	22.85		$	22.67

Tangible Common Equity to Tangible Assets:
Total Assets (GAAP)	$	5,784,983		$	5,490,863		$	5,411,217		$	5,275,904		$	4,908,934
Less goodwill and other intangibles		95,807			103,588			104,154			104,723			105,324
Tangible Assets (Non-GAAP)	$	5,689,176		$	5,387,275		$	5,307,063		$	5,171,181		$	4,803,610
Tangible common equity to tangible assets (Non-GAAP)		7.78	%		7.71	%		7.57	%		7.48	%		7.99	%

¹Tangible book value per share (Non-GAAP) is computed by dividing total shareholders’ equity, less goodwill and other intangible assets, by common shares outstanding.

View source version on businesswire.com: https://www.businesswire.com/news/home/20251021511212/en/

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Phone: (865) 868-2604

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