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SMARTFINANCIAL INC
Symbol	SMBK
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SmartFinancial Announces Results for the Third Quarter 2026

2026-10-19 17:00 ET - News Release

KNOXVILLE, Tenn. -- (Business Wire)

SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NYSE: SMBK), today announced net income of $18.6 million, or $1.10 per diluted common share, for the third quarter of 2026, compared to net income of $13.7 million, or $0.81 per diluted common share, for the third quarter of 2025, and compared to prior quarter net income of $16.3 million, or $0.96 per diluted common share.

Highlights for the Third Quarter of 2026

Operating earnings¹ of $18.6 million, or $1.10 per diluted common share
Net organic loan and lease growth of $174 million representing 15% annualized quarter-over-quarter increase
Core deposit² growth of $163 million representing 12% annualized quarter-over-quarter increase
Tangible book value per common share¹ growth of 15% annualized, excluding the impacts of AOCI
$2.6 million tax benefit recognized in connection with the purchase of transferable energy tax credits
Opened full-service Columbus, GA financial center

Billy Carroll, President & CEO, stated: “Our third quarter was highlighted by continued organic growth, with $174 million in net loan and lease growth and $163 million in core deposit growth, representing annualized increases of 15% and 12%, respectively. We achieved another quarterly record in operating revenue¹ at $57.5 million and diluted operating earnings¹ per share totaled $1.10. We also opened our new full-service financial center in Columbus, Georgia, marking an important step in expanding our presence in the market. Growing our deposit franchise alongside our lending business remains an important priority as we execute our relationship-focused strategy. We remain committed to disciplined pricing, credit quality and expense management as we work to translate continued growth into sustainable returns for our shareholders. I want to thank our associates for their dedication, their commitment to our clients and the work they do every day to advance our Company.”

SmartFinancial's Chairman, Miller Welborn, concluded: “The Board remains committed to delivering sustainable returns for our shareholders while building a Company where our associates can grow and thrive. Tangible book value per share, an important measure of the value we are creating for shareholders, grew 4% annualized during the quarter, including the effects of accumulated other comprehensive income, and 15% annualized excluding those effects. We also welcomed several new business production team members during the quarter, strengthening our capacity to serve clients and pursue profitable growth. As we expand, our commitment to our associates and our responsibility to shareholders remain closely connected. Building a great Company means creating opportunities for our people, delivering for our clients and translating those efforts into lasting shareholder value.”

________________

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

²Core deposits include all deposits less brokered and one-way buy Certificate of Deposit Account Registry Service (“CDARS”) deposits.

Net Interest Income and Net Interest Margin

Net interest income was $49.4 million for the third quarter of 2026, compared to $48.1 million for the prior quarter. Average earning assets totaled $5.71 billion, an increase of $193.1 million from the prior quarter. The balances of average earning assets increased quarter-over-quarter, primarily from an increase in average loans and leases of $165.5 million, average federal funds sold and other earning assets of $20.5 million and average securities of $7.1 million. Average interest-bearing liabilities increased by $218.0 million from the prior quarter, primarily attributable to an increase in average interest-bearing deposits of $258.9 million, offset by a decrease in average borrowings of $41.0 million.

The tax equivalent net interest margin was 3.45% for the third quarter of 2026, down from 3.52% for the prior quarter. The decrease is primarily attributable to higher funding costs, which more than offset the improvement in earning-asset yields. The yield on loans and leases, excluding loan fees, fully taxable equivalent (“FTE”) was 5.99% for the third quarter of 2026, compared to 5.95% for the prior quarter.

The cost of total deposits for the third quarter of 2026 was 2.26%, compared to 2.15% in the prior quarter. The cost of interest-bearing liabilities was 2.81% for the third quarter of 2026, compared to 2.74% in the prior quarter. The cost of average interest-bearing deposits was 2.71% for the third quarter of 2026, compared to 2.62% for the prior quarter, an increase of 9 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	2026		2026		(Decrease)
Yield on loans and leases, excluding loan fees, FTE	5.99	%	5.95	%	0.04	%
Yield on loans and leases, FTE	6.08	%	6.07	%	0.01	%
Yield on earning assets, FTE	5.72	%	5.70	%	0.02	%
Cost of interest-bearing deposits	2.71	%	2.62	%	0.09	%
Cost of total deposits	2.26	%	2.15	%	0.11	%
Cost of interest-bearing liabilities	2.81	%	2.74	%	0.07	%
Net interest margin, FTE	3.45	%	3.52	%	(0.07	)%

Allowance for Credit Losses on Loans and Leases and Credit Quality

At September 30, 2026, the allowance for credit losses was $45.6 million. The allowance for credit losses to total loans and leases was 0.94% as of September 30, 2026, down from 0.97% as of June 30, 2026. Provision for credit losses was $687 thousand for the third quarter, compared with $1.5 million for the prior quarter. The third-quarter provision included $1.1 million related to loans and leases, partially offset by a $371 thousand release of the reserve for unfunded commitments.

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
Allowance for Credit Losses on Loans and Leases Rollforward	2026			2026			(Decrease)
Beginning balance	$	45,252		$	43,950		$	1,302
Charge-offs		(782	)		(658	)		(124	)
Recoveries		121			105			16
Net charge-offs		(661	)		(553	)		(108	)
Provision for credit losses ⁽¹⁾		1,058			1,855			(797	)
Ending balance	$	45,649		$	45,252		$	397

Allowance for credit losses to total loans and leases		0.94	%		0.97	%		(0.03	)%

⁽¹⁾	The current quarter-ended and prior quarter-ended provision excludes an unfunded commitments release of $371 thousand and $392 thousand, respectively. At September 30, 2026, and June 30, 2026, the unfunded commitment liability totaled $3.7 million and $4.1 million, respectively.

Nonperforming loans and leases as a percentage of total loans and leases was 0.28% as of September 30, 2026, and 0.25% as of June 30, 2026. 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 0.25% as of September 30, 2026, and 0.23% as of June 30, 2026.

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


	As of Three Months Ended
	Sep			Jun			Increase
Credit Quality	2026			2026			(Decrease)
Nonaccrual loans and leases	$	13,602		$	11,474		$	2,128
Loans and leases past due 90 days or more and still accruing		-			-			-
Total nonperforming loans and leases		13,602			11,474			2,128
Other real estate owned		-			-			-
Other repossessed assets		2,072			2,754			(682	)
Total nonperforming assets	$	15,674		$	14,228		$	1,446

Nonperforming loans and leases to total loans and leases		0.28	%		0.25	%		0.03	%
Nonperforming assets to total assets		0.25	%		0.23	%		0.02	%

Noninterest Income

Noninterest income increased by $245 thousand to $8.1 million for the third quarter of 2026, compared to $7.9 million for the prior quarter. The third quarter increase was primarily attributable to increases in service charges on deposit accounts and mortgage banking income.

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	2026		2026			(Decrease)
Service charges on deposit accounts	$	2,001	$	1,881	$	120
Gain on sale of securities, net		-		54		(54	)
Mortgage banking income		1,025		916		109
Investment services		1,747		1,724		23
Interchange and debit card transaction fees		1,747		1,676		71
Other		1,611		1,635		(24	)
Total noninterest income	$	8,131	$	7,886	$	245

Noninterest Expense

Noninterest expense increased $2.4 million to $36.4 million for the third quarter of 2026, compared to $34.0 million for the prior quarter. The increase was driven primarily by a $1.0 million increase in other real estate and loan related expenses, a $601 thousand increase in salaries and employee benefits, and higher professional services and other 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	2026		2026			(Decrease)
Salaries and employee benefits	$	21,616	$	21,015	$	601
Occupancy and equipment		3,513		3,351		162
FDIC insurance		906		920		(14	)
Other real estate and loan related expenses		1,800		806		994
Advertising and marketing		504		408		96
Data processing and technology		2,692		2,683		9
Professional services		1,541		1,366		175
Amortization of intangibles		450		454		(4	)
Other		3,334		2,952		382
Total noninterest expense	$	36,356	$	33,955	$	2,401

Income Tax Expense

Income tax expense was $1.9 million for the third quarter of 2026, compared with $4.2 million for the prior quarter. The decrease was primarily attributable to a $2.6 million tax benefit recognized in connection with the Company’s purchase of transferable energy tax credits during the quarter.

Balance Sheet Trends

Total assets at September 30, 2026, were $6.32 billion compared to $5.86 billion at December 31, 2025. The $460.0 million increase was primarily attributable to increases in loans and leases of $493.1 million, and increases in other assets of $44.6 million, partially offset by a $99.5 million decrease in cash and cash equivalents.

Total liabilities were $5.74 billion at September 30, 2026, compared to $5.31 billion at December 31, 2025, an increase of $431.2 million. Total deposits increased $423.4 million, which was driven primarily by increases in money market and savings deposits of $321.5 million, interest-bearing demand deposits of $117.6 million, and time deposits of $127.1 million, offset by a decline in noninterest-bearing demand deposits of $142.8 million. In addition, other liabilities increased by $10.3 million and borrowings decreased by $2.7 million.

Shareholders' equity at September 30, 2026, totaled $581.3 million, an increase of $28.8 million from December 31, 2025. The increase in shareholders' equity was primarily driven by net income of $48.6 million for the nine months ended September 30, 2026, offset by an increase of $16.9 million in accumulated other comprehensive loss and dividends paid of $4.5 million. Tangible book value per common share¹ was $28.50 at September 30, 2026, compared to $26.85 at December 31, 2025. Tangible common equity¹ as a percentage of tangible assets¹ was 7.83% at September 30, 2026, compared with 7.93% at December 31, 2025.

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


	Sep		Dec		Increase
Selected Balance Sheet Information	2026		2025		(Decrease)
Total assets	$	6,320,798	$	5,860,810	$	459,988
Total liabilities		5,739,542		5,308,318		431,224
Total equity		581,256		552,492		28,764
Securities		676,011		662,003		14,008
Loans and leases		4,856,692		4,363,582		493,110
Deposits		5,576,210		5,152,789		423,421

Conference Call Information

SmartFinancial issued this earnings release for the third quarter of 2026 on Monday, October 19, 2026, and will host a conference call on Tuesday, October 20, 2026, at 10:00 a.m. ET. To access this interactive teleconference, dial (833) 461-5787 and enter the Meeting ID: 955 254 100. A link to a replay of the conference call will be available on the Company’s webpage through October 21, 2027. Conference call materials will be published on the Company’s webpage located at https://www.smartfinancialinc.com/CorporateProfile, at 9:00 a.m. ET prior to the conference call.

________________

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

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, Florida and Georgia and a loan production office in Tennessee. 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:


⁽¹⁾ Operating earnings	⁽¹¹⁾ Operating return on average assets
⁽²⁾ Operating revenue	⁽¹²⁾ Operating PPNR return on average assets
⁽³⁾ Operating noninterest income	⁽¹³⁾ Operating return on average shareholders’ equity
⁽⁴⁾ Operating noninterest expense	⁽¹⁴⁾ Return on average tangible common equity
⁽⁵⁾ Operating pre-provision net revenue (“PPNR”) earnings	⁽¹⁵⁾ Operating return on average tangible common equity
⁽⁶⁾ Tangible common equity	⁽¹⁶⁾ Operating noninterest income/average assets
⁽⁷⁾ Average tangible common equity	⁽¹⁷⁾ Operating noninterest expense/average assets
⁽⁸⁾ Tangible book value per common share	⁽¹⁸⁾ Tangible common equity to tangible assets
⁽⁹⁾ Tangible assets	⁽¹⁹⁾ Operating earnings per common share
⁽¹⁰⁾ Operating efficiency ratio

A detailed reconciliation and definition 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 current 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
	2026			2026			2026			2025			2025
Assets:
Cash and cash equivalents	$	364,876		$	379,387		$	346,071		$	464,417		$	557,127
Securities available-for-sale, at fair value		557,389			560,065			552,083			539,882			511,095
Securities held-to-maturity, at amortized cost		118,622			119,848			120,968			122,121			123,364
Other investments		22,463			17,529			16,597			16,441			14,888
Loans held for sale		10,210			9,628			7,277			10,865			9,855
Loans and leases		4,856,692			4,682,935			4,518,391			4,363,582			4,222,369
Less: Allowance for credit losses		(45,649	)		(45,252	)		(43,950	)		(40,906	)		(39,074	)
Loans and leases, net		4,811,043			4,637,683			4,474,441			4,322,676			4,183,295
Premises and equipment, net		94,205			93,314			93,360			88,387			89,250
Other real estate owned		—			—			—			—			—
Goodwill and other intangibles, net		93,967			94,417			94,871			95,328			95,807
Bank owned life insurance		122,299			121,353			120,438			119,525			118,610
Other assets		125,724			82,082			81,579			81,168			81,692
Total assets	$	6,320,798		$	6,115,306		$	5,907,685		$	5,860,810		$	5,784,983
Liabilities:
Deposits:
Noninterest-bearing demand	$	920,117		$	921,876		$	951,366		$	1,062,918		$	931,477
Interest-bearing demand		1,063,266			1,022,074			954,292			945,716			929,454
Money market and savings		2,595,155			2,454,805			2,455,945			2,273,612			2,218,313
Time deposits		997,672			986,795			834,633			870,543			971,653
Total deposits		5,576,210			5,385,550			5,196,236			5,152,789			5,050,897
Borrowings		345			603			3,178			3,009			1,301
Subordinated debt		98,877			98,805			98,733			98,662			138,604
Other liabilities		64,110			53,424			47,377			53,858			55,699
Total liabilities		5,739,542			5,538,382			5,345,524			5,308,318			5,246,501
Shareholders' Equity:
Common stock		17,096			17,098			17,098			17,029			17,028
Additional paid-in capital		297,367			296,841			296,284			295,950			295,742
Retained earnings		292,896			275,813			261,032			248,719			236,380
Accumulated other comprehensive loss		(26,216	)		(12,941	)		(12,366	)		(9,319	)		(10,781	)
Total shareholders' equity attributable to SmartFinancial, Inc. and Subsidiary		581,143			576,811			562,048			552,379			538,369
Non-controlling interest - preferred stock of subsidiary		113			113			113			113			113
Total shareholders' equity		581,256			576,924			562,161			552,492			538,482
Total liabilities & shareholders' equity	$	6,320,798		$	6,115,306		$	5,907,685		$	5,860,810		$	5,784,983

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
	2026		2026		2026		2025		2025			2026		2025
Interest income:
Loans and leases, including fees	$	73,052	$	69,546	$	65,638	$	65,573	$	64,282		$	208,236	$	183,094
Investment securities:
Taxable		5,882		5,722		5,492		5,662		4,876			17,096		14,499
Tax-exempt		578		565		555		536		441			1,698		1,190
Federal funds sold and other earning assets		2,528		2,209		2,585		3,854		4,919			7,321		11,565
Total interest income		82,040		78,042		74,270		75,625		74,518			234,351		210,348
Interest expense:
Deposits		30,754		27,723		26,529		28,646		30,464			85,006		86,100
Borrowings		—		371		1		1		14			371		155
Subordinated debt		1,884		1,884		1,864		1,884		1,610			5,632		3,082
Total interest expense		32,638		29,978		28,394		30,531		32,088			91,009		89,337
Net interest income		49,402		48,064		45,876		45,094		42,430			143,342		121,011
Provision for credit losses		687		1,463		4,139		4,132		227			6,288		3,618
Net interest income after provision for credit losses		48,715		46,601		41,737		40,962		42,203			137,054		117,393
Noninterest income:
Service charges on deposit accounts		2,001		1,881		1,853		1,828		1,831			5,735		5,333
Gain (loss) on sale of securities, net		—		54		1		—		(3,715	)		55		(3,719	)
Mortgage banking		1,025		916		760		837		709			2,701		1,835
Investment services		1,747		1,724		1,796		1,683		1,690			5,267		4,899
Insurance commissions		—		—		—		—		1,049			—		4,016
Interchange and debit card transaction fees		1,747		1,676		1,418		1,375		1,338			4,841		3,900
Gain on sale of SBK Insurance ("SBKI")		—		—		—		—		3,955			—		3,955
Other		1,611		1,635		2,113		2,496		1,780			5,360		5,914
Total noninterest income		8,131		7,886		7,941		8,219		8,637			23,959		26,133
Noninterest expense:
Salaries and employee benefits		21,616		21,015		20,414		19,917		19,544			63,045		58,380
Occupancy and equipment		3,513		3,351		3,344		3,388		3,468			10,208		10,298
FDIC insurance		906		920		750		1,025		1,025			2,576		2,977
Other real estate and loan related expense		1,800		806		792		858		969			3,398		2,383
Advertising and marketing		504		408		387		393		454			1,299		1,226
Data processing and technology		2,692		2,683		2,436		2,413		2,594			7,811		7,903
Professional services		1,541		1,366		1,193		1,132		1,123			4,100		3,643
Amortization of intangibles		450		454		457		479		536			1,361		1,671
Restructuring expenses		—		—		—		16		1,310			—		1,310
Other		3,334		2,952		3,142		2,850		2,846			9,430		8,945
Total noninterest expense		36,356		33,955		32,915		32,471		33,869			103,228		98,736
Income before income taxes		20,490		20,532		16,763		16,710		16,971			57,785		44,790
Income tax expense		1,863		4,210		3,083		3,007		3,285			9,156		8,146
Net income	$	18,627	$	16,322	$	13,680	$	13,703	$	13,686		$	48,629	$	36,644
Earnings per common share:
Basic	$	1.11	$	0.97	$	0.81	$	0.82	$	0.82		$	2.89	$	2.18
Diluted	$	1.10	$	0.96	$	0.81	$	0.81	$	0.81		$	2.86	$	2.17
Weighted average common shares outstanding:
Basic		16,824,705		16,824,053		16,821,486		16,788,065		16,781,236			16,823,426		16,775,970
Diluted		16,994,574		16,961,750		16,935,530		16,922,482		16,908,920			16,984,875		16,886,153

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

	Three Months Ended
	September 30, 2026						June 30, 2026						September 30, 2025
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Loans and leases, including fees¹	$	4,775,909	$	73,209	6.08	%	$	4,610,444	$	69,740	6.07	%	$	4,171,444	$	64,526	6.14	%
Taxable securities		602,152		5,882	3.88	%		595,018		5,722	3.86	%		556,894		4,876	3.47	%
Tax-exempt securities²		79,765		732	3.64	%		79,820		715	3.59	%		69,843		558	3.17	%
Federal funds sold and other earning assets		252,781		2,528	3.97	%		232,257		2,209	3.81	%		428,209		4,919	4.56	%
Total interest-earning assets		5,710,607		82,351	5.72	%		5,517,539		78,386	5.70	%		5,226,390		74,879	5.68	%
Noninterest-earning assets		442,789						421,371						408,560
Total assets	$	6,153,396					$	5,938,910					$	5,634,950

Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits	$	995,731		4,344	1.73	%	$	954,455		3,960	1.66	%	$	869,690		4,048	1.85	%
Money market and savings deposits		2,516,407		17,660	2.78	%		2,388,259		15,982	2.68	%		2,186,245		16,693	3.03	%
Time deposits		996,718		8,750	3.48	%		907,250		7,781	3.44	%		1,005,800		9,723	3.84	%
Total interest-bearing deposits		4,508,856		30,754	2.71	%		4,249,964		27,723	2.62	%		4,061,735		30,464	2.98	%
Borrowings		314		—	—	%		41,272		371	3.61	%		4,351		14	1.28	%
Subordinated debt		98,834		1,884	7.56	%		98,761		1,884	7.65	%		85,113		1,610	7.50	%
Total interest-bearing liabilities		4,608,004		32,638	2.81	%		4,389,997		29,978	2.74	%		4,151,199		32,088	3.07	%
Noninterest-bearing deposits		901,873						923,887						900,079
Other liabilities		58,748						53,677						57,843
Total liabilities		5,568,625						5,367,561						5,109,121
Shareholders' equity		584,771						571,349						525,829
Total liabilities and shareholders' equity	$	6,153,396					$	5,938,910					$	5,634,950

Net interest income, taxable equivalent			$	49,713					$	48,408					$	42,791
Interest rate spread					2.91	%					2.96	%					2.62	%
Tax equivalent net interest margin					3.45	%					3.52	%					3.25	%

Percentage of average interest-earning assets to average interest-bearing liabilities					123.93	%					125.68	%					125.90	%
Percentage of average equity to average assets					9.50	%					9.62	%					9.33	%

¹Yields computed on tax-exempt loans on a tax equivalent basis include $157 thousand, $194 thousand, and $244 thousand of taxable equivalent income for the quarters ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively.

²Yields computed on tax-exempt instruments on a tax equivalent basis include $154 thousand, $150 thousand, and $117 thousand of taxable equivalent income for the quarters ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively.

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

	Nine Months Ended
	September 30, 2026						September 30, 2025
	Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Loans and leases, including fees¹	$	4,609,009	$	208,805	6.06	%	$	4,055,251	$	183,829	6.06	%
Taxable securities		593,990		17,096	3.85	%		558,493		14,499	3.47	%
Tax-exempt securities²		80,037		2,149	3.59	%		66,408		1,506	3.03	%
Federal funds sold and other earning assets		257,070		7,322	3.81	%		337,385		11,566	4.58	%
Total interest-earning assets		5,540,106		235,372	5.68	%		5,017,537		211,400	5.63	%
Noninterest-earning assets		419,865						406,751
Total assets	$	5,959,971					$	5,424,288

Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits	$	968,693		12,235	1.69	%	$	850,720		11,577	1.82	%
Money market and savings deposits		2,414,719		48,879	2.71	%		2,118,652		47,518	3.00	%
Time deposits		915,729		23,892	3.49	%		934,255		27,005	3.86	%
Total interest-bearing deposits		4,299,141		85,006	2.64	%		3,903,627		86,100	2.95	%
Borrowings		15,033		371	3.30	%		6,769		155	3.06	%
Subordinated debt		98,763		5,632	7.62	%		55,006		3,082	7.49	%
Total interest-bearing liabilities		4,412,937		91,009	2.76	%		3,965,402		89,337	3.01	%
Noninterest-bearing deposits		919,098						894,254
Other liabilities		55,691						52,905
Total liabilities		5,387,726						4,912,561
Shareholders' equity		572,245						511,727
Total liabilities and shareholders' equity	$	5,959,971					$	5,424,288

Net interest income, taxable equivalent			$	144,363					$	122,063
Interest rate spread					2.92	%					2.62	%
Tax equivalent net interest margin					3.48	%					3.25	%

Percentage of average interest-earning assets to average interest-bearing liabilities					125.54	%					126.53	%
Percentage of average equity to average assets					9.60	%					9.43	%

¹Yields computed on tax-exempt loans on a tax equivalent basis include $569 thousand and $735 thousand of taxable equivalent income for the nine months ended September 30, 2026, and September 30, 2025, respectively.

²Yields computed on tax-exempt instruments on a tax equivalent basis include $451 thousand and $316 thousand of taxable equivalent income for the nine months ended September 30, 2026, and September 30, 2025, 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
	2026			2026			2026			2025			2025
Composition of Loans and Leases:
Commercial real estate:
Non-owner occupied	$	1,301,283		$	1,288,115		$	1,263,455		$	1,196,758		$	1,136,080
Owner occupied		1,105,042			1,080,959			1,033,211			1,022,871			1,012,088
Commercial real estate, total		2,406,325			2,369,074			2,296,666			2,219,629			2,148,168
Consumer real estate		903,135			881,640			851,484			834,626			811,150
Construction & land development		563,856			516,164			478,301			419,176			390,691
Commercial & industrial		913,165			842,849			819,875			817,595			794,751
Leases		49,179			52,411			54,296			55,422			60,301
Consumer and other		21,032			20,797			17,769			17,134			17,308
Total loans and leases	$	4,856,692		$	4,682,935		$	4,518,391		$	4,363,582		$	4,222,369

Asset Quality and Additional Loan Data:
Nonperforming loans and leases	$	13,602		$	11,474		$	12,257		$	9,442		$	10,099
Other real estate owned		—			—			—			—			—
Other repossessed assets		2,072			2,754			2,798			3,248			2,444
Total nonperforming assets	$	15,674		$	14,228		$	15,055		$	12,690		$	12,543
Modified loans and leases¹ not included in nonperforming loans and leases	$	282		$	349		$	208		$	219		$	1,783
Net charge-offs to average loans and leases (annualized)		0.06	%		0.05	%		0.02	%		0.18	%		0.10	%
Allowance for credit losses to total loans and leases		0.94	%		0.97	%		0.97	%		0.94	%		0.93	%
Nonperforming loans and leases to total loans and leases		0.28	%		0.25	%		0.27	%		0.22	%		0.24	%
Nonperforming assets to total assets		0.25	%		0.23	%		0.25	%		0.22	%		0.22	%

Capital Ratios:
Equity to Assets		9.20	%		9.43	%		9.52	%		9.43	%		9.31	%
Tangible common equity to tangible assets (Non-GAAP)²		7.83	%		8.01	%		8.04	%		7.93	%		7.78	%

SmartFinancial, Inc.³
Tier 1 leverage		8.49	%		8.47	%		8.41	%		8.30	%		8.21	%
Common equity Tier 1		9.80	%		9.77	%		9.77	%		9.83	%		9.85	%
Tier 1 capital		9.80	%		9.77	%		9.77	%		9.83	%		9.85	%
Total capital		12.62	%		12.64	%		12.72	%		12.71	%		13.31	%

SmartBank³
Tier 1 leverage		9.80	%		9.86	%		9.88	%		9.71	%		9.59	%
Common equity Tier 1		11.34	%		11.38	%		11.47	%		11.51	%		11.56	%
Tier 1 capital		11.34	%		11.38	%		11.47	%		11.51	%		11.56	%
Total capital		12.28	%		12.30	%		12.41	%		12.32	%		12.37	%

¹Borrowers that have experienced financial difficulty. Effective as of December 31, 2025, the Call Report instructions were changed for institutions to report loan modifications to borrowers experiencing financial difficulty for a 12-month period after the modification. This change is reflected in the December 31, 2025, information and going forward.

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

³ Current period capital ratios are estimated as of the date of this earnings release.

SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands except share and per share data)

	As of and for The															As of and for The
	Three Months Ended															Nine Months Ended
	Sep			Jun			Mar			Dec			Sep			Sep			Sep
	2026			2026			2026			2025			2025			2026			2025
Selected Performance Ratios (Annualized):
Return on average assets		1.20	%		1.10	%		0.96	%		0.95	%		0.96	%		1.09	%		0.90	%
Return on average shareholders' equity		12.64	%		11.46	%		9.90	%		9.95	%		10.33	%		11.36	%		9.57	%
Return on average tangible common equity¹		15.07	%		13.74	%		11.93	%		12.06	%		12.79	%		13.61	%		11.99	%
Noninterest income / average assets		0.52	%		0.53	%		0.56	%		0.57	%		0.61	%		0.54	%		0.64	%
Noninterest expense / average assets		2.34	%		2.29	%		2.31	%		2.24	%		2.38	%		2.32	%		2.43	%
Efficiency ratio		63.19	%		60.69	%		61.16	%		60.91	%		66.32	%		61.70	%		67.10	%

Operating Selected Performance Ratios (Annualized):
Operating return on average assets¹		1.20	%		1.10	%		0.96	%		0.95	%		1.02	%		1.09	%		0.92	%
Operating PPNR return on average assets¹		1.37	%		1.48	%		1.47	%		1.44	%		1.29	%		1.44	%		1.22	%
Operating return on average shareholders' equity¹		12.64	%		11.43	%		9.90	%		9.96	%		10.92	%		11.35	%		9.78	%
Operating return on average tangible common equity¹		15.07	%		13.70	%		11.93	%		12.07	%		13.53	%		13.60	%		12.25	%
Operating efficiency ratio¹		62.85	%		60.38	%		60.75	%		60.45	%		63.61	%		61.35	%		65.85	%
Operating noninterest income / average assets¹		0.52	%		0.53	%		0.56	%		0.57	%		0.59	%		0.54	%		0.64	%
Operating noninterest expense / average assets¹		2.34	%		2.29	%		2.31	%		2.24	%		2.29	%		2.32	%		2.40	%

Selected Interest Rates and Yields:
Yield on loans and leases, excluding loan fees, FTE		5.99	%		5.95	%		5.93	%		6.00	%		6.05	%		5.95	%		5.98	%
Yield on loans and leases, FTE		6.08	%		6.07	%		6.02	%		6.08	%		6.14	%		6.06	%		6.06	%
Yield on earning assets, FTE		5.72	%		5.70	%		5.62	%		5.65	%		5.68	%		5.68	%		5.63	%
Cost of interest-bearing deposits		2.71	%		2.62	%		2.60	%		2.79	%		2.98	%		2.64	%		2.95	%
Cost of total deposits		2.26	%		2.15	%		2.12	%		2.26	%		2.44	%		2.18	%		2.40	%
Cost of interest-bearing liabilities		2.81	%		2.74	%		2.72	%		2.90	%		3.07	%		2.76	%		3.01	%
Net interest margin, FTE		3.45	%		3.52	%		3.48	%		3.38	%		3.25	%		3.48	%		3.25	%

Per Common Share:
Net income, basic	$	1.11		$	0.97		$	0.81		$	0.82		$	0.82		$	2.89		$	2.18
Net income, diluted		1.10			0.96			0.81			0.81			0.81			2.86			2.17
Operating earnings, basic¹		1.11			0.97			0.81			0.82			0.86			2.89			2.23
Operating earnings, diluted¹		1.10			0.96			0.81			0.81			0.86			2.86			2.22
Book value per common share		34.00			33.74			32.88			32.44			31.62			34.00			31.62
Tangible book value per common share¹		28.50			28.22			27.33			26.85			26.00			28.50			26.00
Common shares outstanding		17,095,789			17,098,473			17,098,473			17,029,317			17,028,001			17,095,789			17,028,001

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
	2026			2026			2026			2025			2025			2026			2025
Operating Earnings:
Net income (GAAP)	$	18,627		$	16,322		$	13,680		$	13,703		$	13,686		$	48,629		$	36,644
Noninterest income:
Securities (gains) losses, net		—			(54	)		(1	)		—			3,715			(55	)		3,719
Gain on sale of SBKI		—			—			—			—			(3,955	)		—			(3,955	)
Noninterest expenses:
Restructuring expenses		—			—			—			16			1,310			—			1,310
Income taxes:
Income tax effect of adjustments		—			14			—			(4	)		(276	)		14			(277	)
Operating earnings (Non-GAAP)	$	18,627		$	16,282		$	13,679		$	13,715		$	14,480		$	48,588		$	37,441
Operating earnings per common share (Non-GAAP):
Basic	$	1.11		$	0.97		$	0.81		$	0.82		$	0.86		$	2.89		$	2.23
Diluted		1.10			0.96			0.81			0.81			0.86			2.86			2.22

Operating Noninterest Income:
Noninterest income (GAAP)	$	8,131		$	7,886		$	7,941		$	8,219		$	8,637		$	23,959		$	26,133
Securities (gains) losses, net		—			(54	)		(1	)		—			3,715			(55	)		3,719
Gain on sale of SBKI		—			—			—			—			(3,955	)		—			(3,955	)
Operating noninterest income (Non-GAAP)	$	8,131		$	7,832		$	7,940		$	8,219		$	8,397		$	23,904		$	25,897
Operating noninterest income (Non-GAAP)/average assets¹		0.52	%		0.53	%		0.56	%		0.57	%		0.59	%		0.54	%		0.64	%

Operating Noninterest Expense:
Noninterest expense (GAAP)	$	36,356		$	33,955		$	32,915		$	32,471		$	33,869		$	103,228		$	98,736
Restructuring expenses		—			—			—			(16	)		(1,310	)		—			(1,310	)
Operating noninterest expense (Non-GAAP)	$	36,356		$	33,955		$	32,915		$	32,455		$	32,559		$	103,228		$	97,426
Operating noninterest expense (Non-GAAP)/average assets²		2.34	%		2.29	%		2.31	%		2.24	%		2.29	%		2.32	%		2.40	%

Operating Pre-provision Net revenue ("PPNR") Earnings:
Net interest income (GAAP)	$	49,402		$	48,064		$	45,876		$	45,094		$	42,430		$	143,342		$	121,011
Operating noninterest income (Non-GAAP)		8,131			7,832			7,940			8,219			8,397			23,904			25,897
Operating revenue (Non-GAAP)		57,533			55,896			53,816			53,313			50,827			167,246			146,908
Operating noninterest expense (Non-GAAP)		(36,356	)		(33,955	)		(32,915	)		(32,455	)		(32,559	)		(103,228	)		(97,426	)
Operating PPNR earnings (Non-GAAP)	$	21,177		$	21,941		$	20,901		$	20,858		$	18,268		$	64,018		$	49,482

Non-GAAP Return Ratios:
Operating return on average assets (Non-GAAP)³		1.20	%		1.10	%		0.96	%		0.95	%		1.02	%		1.09	%		0.92	%
Operating PPNR return on average assets (Non-GAAP)⁴		1.37	%		1.48	%		1.47	%		1.44	%		1.29	%		1.44	%		1.22	%
Return on average tangible common equity (Non-GAAP)⁵		15.07	%		13.74	%		11.93	%		12.06	%		12.79	%		13.61	%		11.99	%
Operating return on average shareholders' equity (Non-GAAP)⁶		12.64	%		11.43	%		9.90	%		9.96	%		10.92	%		11.35	%		9.78	%
Operating return on average tangible common equity (Non-GAAP)⁷		15.07	%		13.70	%		11.93	%		12.07	%		13.53	%		13.60	%		12.25	%

Operating Efficiency Ratio:
Efficiency ratio (GAAP)		63.19	%		60.69	%		61.16	%		60.91	%		66.32	%		61.70	%		67.10	%
Adjustment for taxable equivalent yields		(0.34	)%		(0.38	)%		(0.41	)%		(0.43	)%		(0.47	)%		(0.37	)%		(0.48	)%
Adjustment for securities gains (losses)		—	%		0.07	%		—	%		—	%		(4.50	)%		0.02	%		(1.65	)%
Adjustment for sale of SBKI		—	%		—	%		—	%		—	%		5.57	%		—	%		1.85	%
Adjustment for restructuring cost		—	%		—	%		—	%		(0.02	)%		(3.31	)%		—	%		(0.97	)%
Operating efficiency ratio (Non-GAAP)		62.85	%		60.38	%		60.75	%		60.45	%		63.61	%		61.35	%		65.85	%

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
	2026			2026			2026			2025			2025
Tangible Common Equity:
Shareholders' equity (GAAP)	$	581,256		$	576,924		$	562,161		$	552,492		$	538,482
Less goodwill and other intangible assets		93,967			94,417			94,871			95,328			95,807
Tangible common equity (Non-GAAP)	$	487,289		$	482,507		$	467,290		$	457,164		$	442,675

Average Tangible Common Equity:
Average shareholders' equity (GAAP)	$	584,771		$	571,349		$	560,348		$	546,489		$	525,829
Less average goodwill and other intangible assets		94,239			94,696			95,145			95,619			101,326
Average tangible common equity (Non-GAAP)	$	490,532		$	476,653		$	465,203		$	450,870		$	424,503

Tangible Book Value per Common Share:
Book value per common share (GAAP)	$	34.00		$	33.74		$	32.88		$	32.44		$	31.62
Adjustment due to goodwill and other intangible assets		(5.50	)		(5.52	)		(5.55	)		(5.59	)		(5.63	)
Tangible book value per common share (Non-GAAP)¹	$	28.50		$	28.22		$	27.33		$	26.85		$	26.00

Tangible Common Equity to Tangible Assets:
Total Assets (GAAP)	$	6,320,798		$	6,115,306		$	5,907,685		$	5,860,810		$	5,784,983
Less goodwill and other intangibles		93,967			94,417			94,871			95,328			95,807
Tangible Assets (Non-GAAP)	$	6,226,831		$	6,020,889		$	5,812,814		$	5,765,482		$	5,689,176
Tangible common equity to tangible assets (Non-GAAP)		7.83	%		8.01	%		8.04	%		7.93	%		7.78	%

¹Tangible book value per common 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/20261019764570/en/

Contacts:

Investor Contacts
Billy Carroll
President & Chief Executive Officer
Email: billy.carroll@smartbank.com
Phone: (865) 868-0613

Nathan Strall
Vice President and Director of Strategy & Corporate Development
Email: nathan.strall@smartbank.com
Phone: (865) 868-2604

Source: SmartFinancial, Inc.