Core Viewpoint - SmarFinancial (SMBK) reported quarterly earnings of $0.57 per share, exceeding the Zacks Consensus Estimate of $0.54 per share, and showing an increase from $0.41 per share a year ago, indicating a positive earnings surprise of 5.56% [1][2] Financial Performance - The company achieved revenues of $46.81 million for the quarter ended December 2024, surpassing the Zacks Consensus Estimate by 3.93% and up from $39.1 million year-over-year [2] - Over the last four quarters, SmarFinancial has consistently exceeded consensus EPS estimates and revenue estimates [2] Stock Performance and Outlook - SmarFinancial shares have increased approximately 1.9% since the beginning of the year, compared to a 2% gain in the S&P 500 [3] - The company's earnings outlook is crucial for assessing future stock performance, with current consensus EPS estimates at $0.55 for the upcoming quarter and $2.40 for the current fiscal year [4][7] Industry Context - The Banks - Northeast industry, to which SmarFinancial belongs, is currently ranked in the top 25% of over 250 Zacks industries, suggesting a favorable environment for performance [8] - The performance of SmarFinancial's stock may also be influenced by the overall industry outlook and trends in earnings estimate revisions [5][8]

Financial Performance - SmartFinancial reported net income of $9.6 million, or $0.57 per diluted common share, for Q4 2024, a 55% increase from $6.2 million, or $0.37 per diluted common share, in Q4 2023[3]. - Net income for the three months ended December 31, 2024, was $9,640 thousand, representing an increase of 5.5% from $9,140 thousand in the previous quarter[38]. - Net income (GAAP) for the year ended December 2024 was $36,141, compared to $28,593 for the previous year, representing a year-over-year increase of 26.5%[49]. - Operating earnings for Q4 2024 reached $9,641, up from $9,140 in Q3 2024, reflecting a growth of 5.5%[49]. Asset Growth - Total assets increased by $446.5 million to $5.28 billion as of December 31, 2024, primarily due to a $461.9 million increase in loans and leases[19][23]. - Total assets increased to $5,275,904 thousand as of December 2024, up from $4,829,387 thousand in December 2023, representing a growth of 9.2%[37]. - The company's total assets increased to $4,939,586 thousand as of December 31, 2024, compared to $4,756,276 thousand as of December 31, 2023[42]. - Tangible assets (Non-GAAP) increased to $5,171,181 thousand in December 2024, compared to $4,722,239 thousand in December 2023, reflecting a growth of 9.5% year-over-year[52]. Loan and Lease Growth - The company achieved 13% year-over-year loan and lease growth, with average earning assets increasing to $4.7 billion, up $151 million from the prior quarter[4][5]. - Loans and leases reached $3,906,340 thousand in December 2024, an increase of 13.4% compared to $3,444,462 thousand in December 2023[37]. - Total loans and leases reached $3,906,340 thousand as of December 31, 2024, a significant increase from $3,444,462 thousand as of December 31, 2023[45]. Deposit Growth - Total deposits rose by $418.6 million to $4.69 billion, with significant contributions from money market deposits and brokered deposits[20][23]. - Total deposits rose to $4,686,483 thousand in December 2024, up 9.8% from $4,267,854 thousand in December 2023[37]. - Noninterest-bearing demand deposits increased to $965,552 thousand, a rise of 7.5% from $898,044 thousand in December 2023[37]. Income and Expense Management - Noninterest income decreased by $109 thousand to $9.03 million, primarily due to a $499 thousand decline in investment services[14][15]. - Noninterest expense increased by $1.4 million to $32.3 million, mainly due to higher salaries and employee benefits[16][17]. - Operating noninterest expense (Non-GAAP) for Q4 2024 was $32,291, compared to $30,846 in Q3 2024, indicating a rise of 4.7%[49]. Credit Quality - The allowance for credit losses was $37.4 million, representing 0.96% of total loans and leases, indicating stable credit quality[11][12]. - Nonperforming loans and leases decreased to $7,872 thousand as of December 31, 2024, down from $8,101 thousand a year earlier, indicating improved asset quality[45]. - The allowance for credit losses to loans and leases remained stable at 0.96% as of December 31, 2024, consistent with the previous quarter[45]. Efficiency and Profitability - The operating efficiency ratio improved, indicating better management of noninterest expenses relative to income[30]. - The efficiency ratio improved to 68.98% for the quarter, down from 69.83% in the previous quarter, reflecting better cost management[47]. - The operating return on average tangible common equity was 9.94%, up from 9.75% in the previous quarter, indicating improved returns for shareholders[47]. Capital Position - Shareholders' equity increased by $31.6 million to $491.5 million, driven by net income of $36.1 million for the year[22][23]. - The Tier 1 capital ratio stood at 9.83% as of December 31, 2024, slightly down from 10.06% in the previous year, reflecting a stable capital position[45]. - The company reported a total capital ratio of 11.17% as of December 31, 2024, compared to 11.62% a year earlier, indicating a slight decrease in capital adequacy[45]. Future Outlook - SmartFinancial plans to continue its growth strategy, focusing on strategic branching and disciplined lending practices[36]. - The company is actively managing interest rate risks amid changing economic conditions, including elevated interest rates[36]. - SmartFinancial is committed to enhancing its technology and cybersecurity measures to mitigate associated risks[36]. - The company anticipates potential impacts from economic and political factors, including inflation and market conditions, on its future performance[36].

Financial Performance - Net income for Q3 2024 was $9.1 million, or $0.54 per diluted common share, compared to $2.1 million, or $0.12 per diluted common share in Q3 2023[150]. - Net income for the first nine months of 2024 totaled $26.5 million, or $1.57 per diluted common share, up from $22.4 million, or $1.33 per diluted common share in the same period of 2023[150]. - Income before income taxes for Q3 2024 was $10.750 million, compared to $2.386 million in Q3 2023, marking an increase of $8.364 million[152]. - Net income for Q3 2024 was $9.1 million, or $0.54 per diluted common share, compared to $2.1 million, or $0.12 per diluted common share in Q3 2023, reflecting a $7.1 million increase[154]. Income and Revenue - Interest income for Q3 2024 was $63.956 million, an increase of $8.681 million from Q3 2023[152]. - Noninterest income surged to $9.139 million in Q3 2024, compared to $691,000 in Q3 2023, reflecting an increase of $8.448 million[152]. - Noninterest income increased by $10.4 million for the first nine months of 2024, despite a $6.8 million pre-tax loss on the sale of available-for-sale securities[155]. - Noninterest income rose by $8.4 million in Q3 2024 compared to Q3 2023, primarily due to a loss on the sale of securities in the prior year and increased investment services and insurance commissions[163]. Expenses - Noninterest expense rose to $30.846 million in Q3 2024, up by $2.330 million from Q3 2023[152]. - Noninterest expense increased by $2.3 million in Q3 2024 compared to Q3 2023, driven by higher salaries and employee benefits, professional services, and overall franchise growth[165]. - Total noninterest expense for the first nine months of 2024 was $88,599, an increase of $5.1 million from $83,455 in the same period of 2023[166]. Asset and Loan Growth - Net organic loan and lease increased by $272.5 million year-to-date as of September 30, 2024[150]. - Average loan and lease balances increased by $274.1 million in Q3 2024 compared to Q3 2023[157]. - Total net loans and leases outstanding reached approximately $3.68 billion as of September 30, 2024, up from $3.41 billion at December 31, 2023, representing an increase of 7.9%[169]. - The composition of the loan and lease portfolio includes commercial real estate at $1.90 billion (51.0%), consumer real estate at $690.5 million (18.6%), and commercial and industrial loans at $731.6 million (19.7%) as of September 30, 2024[169]. Deposits and Funding - Deposit growth amounted to $54.6 million from December 31, 2023[150]. - Total average deposits as of September 30, 2024, were $4.32 billion, an increase of $54.6 million from December 31, 2023, driven by brokered deposits of $174.8 million[186]. - The average balance of noninterest-bearing demand deposits for the three months ended September 30, 2024, was $884.9 million, accounting for 20.6% of total deposits[184]. - Brokered deposits represented approximately 4.55% of total deposits as of September 30, 2024[183]. Credit Quality - The allowance for credit losses was $35.6 million as of September 30, 2024, representing 0.96% of total loans and leases, down from 1.02% at December 31, 2023[175]. - Nonperforming loans and leases as a percentage of total gross loans and leases was 0.26% as of September 30, 2024, compared to 0.24% at December 31, 2023[171]. - Total past due loans amounted to $4.584 million as of September 30, 2024, with a past due percentage of 0.12%[172]. - The total nonaccrual loans and leases amounted to $9.319 million as of September 30, 2024, with a nonaccrual percentage of 0.25%[174]. Tax and Regulatory - The effective tax rate for Q3 2024 was approximately 15.0%, up from 13.4% in Q2 2023, with a total income tax expense of $1.6 million[167]. - Capital ratios exceeded regulatory minimum requirements as of September 30, 2024[190]. Liquidity and Borrowings - The Company anticipates adequate liquidity to meet expected obligations of its customers[200]. - Total borrowings amounted to $9.0 million, consisting of $5.0 million in short-term borrowings and $4.0 million in securities sold under repurchase agreements[189]. - Long-term debt decreased from $42.1 million at December 31, 2023, to $39.7 million at September 30, 2024[189]. Interest Rate Sensitivity - Interest rate sensitivity analysis indicated a 100 basis points increase would decrease net interest income by 1.43%[195]. - Economic value of equity model showed a 200 basis points increase would decrease economic value by 10.00%[196].

SmarFinancial (SMBK) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade primarily reflects an upward trend in earnings estimates, which is one of the most powerful forces impacting stock prices.The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the system.Indiv ...

Financial Data and Key Metrics Changes - The company reported net income of $9.1 million for Q3 2024, translating to $0.54 per diluted share, reflecting a strong earnings trajectory [3] - Tangible book value increased to $22.67 per share, a 19% annualized quarter-over-quarter increase including AOCI, and 9% excluding it [3][4] - Total revenue reached $44.1 million, with net interest income expanding significantly [6] Business Line Data and Key Metrics Changes - Loan growth was robust at over 16% annualized for the quarter, up from 11% in the prior quarter, with a total increase of $114 million [4][6] - Core deposit growth was over 5%, despite a strategic exit from a costly public fund relationship [5][8] - Noninterest income for the quarter was $9.1 million, with notable increases in customer swap transactions and investment services [9] Market Data and Key Metrics Changes - The bank's net interest margin expanded by 14 basis points to 3.11%, driven by deposit repositioning and favorable loan yields [8] - The weighted average yield on new loan originations was 7.40%, contributing to an overall portfolio yield increase to 6.02% [9] Company Strategy and Development Direction - The company is focused on enhancing its sales processes and leveraging technology to improve client acquisition and retention [11][12] - A newly formed real estate investment trust subsidiary aims to manage real estate loans and create a more tax-favorable structure, anticipating a future effective tax rate of approximately 20% [10] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about maintaining strong loan growth and operating leverage, with expectations for continued margin expansion into 2025 [9][10] - The company is strategically managing expenses while anticipating some increases due to inflation and talent acquisition [26][27] Other Important Information - The company has added 15 new sales team members this year and continues to seek quality talent to enhance its operations [11][30] - The bank's asset quality remains strong, with nonperforming loans at 0.26% [9] Q&A Session Summary Question: Loan growth outlook and potential paydowns - Management indicated that while they anticipate some paydowns, they remain optimistic about maintaining strong loan growth due to a solid pipeline and favorable market conditions [14][15] Question: Margin expectations and Fed rate cuts - The company expects net interest margin to be in the range of 3.10% to 3.15% for Q4, with continued margin expansion anticipated throughout 2025 [16][17] Question: Fee income sustainability - Management noted that while Q3 saw strong performance in swaps and investment products, they expect a normalization in these areas moving forward [18][19] Question: Deposit growth initiatives - The company is focused on growing core deposits while managing deposit rates in line with market conditions, with a positive outlook on deposit growth [20][21] Question: Loan pricing and market conditions - Management acknowledged some recent volatility in loan pricing but remains confident in maintaining reasonable levels despite competitive pressures [24][25] Question: Expense growth and hiring plans - The company anticipates expense growth in the range of 5% to 7%, primarily driven by talent acquisition [32][33] Question: Customer gains and market share - Management confirmed ongoing customer acquisition efforts and expressed confidence in continuing to gain market share across various regions [36][37]

For the quarter ended September 2024, SmarFinancial (SMBK) reported revenue of $44.17 million, up 39.3% over the same period last year. EPS came in at $0.54, compared to $0.43 in the year-ago quarter.The reported revenue represents a surprise of +4.37% over the Zacks Consensus Estimate of $42.32 million. With the consensus EPS estimate being $0.49, the EPS surprise was +10.20%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Str ...

SmarFinancial (SMBK) came out with quarterly earnings of $0.54 per share, beating the Zacks Consensus Estimate of $0.49 per share. This compares to earnings of $0.43 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of 10.20%. A quarter ago, it was expected that this bank holding company would post earnings of $0.41 per share when it actually produced earnings of $0.46, delivering a surprise of 12.20%.Over the last four quarters, t ...

Exhibit 99.1 UARTERLY EARNINGS RELEASE 3Q 2024 SmartFinancial Announces Results for the Third Quarter 2024 KNOXVILLE, TN – October 21, 2024 - SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NYSE: SMBK), today announced net income of $9.1 million, or $0.54 per diluted common share, for the third quarter of 2024, compared to net income of $2.1 million, or $0.12 per diluted common share, for the third quarter of 2023, and compared to prior quarter net income of $8.0 million, or $0.48 per diluted commo ...

The upcoming report from SmarFinancial (SMBK) is expected to reveal quarterly earnings of $0.49 per share, indicating an increase of 14% compared to the year-ago period. Analysts forecast revenues of $42.32 million, representing an increase of 33.5% year over year. Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 1.9% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period. Before a ...

SmarFinancial (SMBK) is expected to deliver a year-over-year increase in earnings on higher revenues when it reports results for the quarter ended September 2024. This widely-known consensus outlook gives a good sense of the company's earnings picture, but how the actual results compare to these estimates is a powerful factor that could impact its near-term stock price. The earnings report, which is expected to be released on October 21, 2024, might help the stock move higher if these key numbers are better ...