SmartFinancial Announces Results for the Third Quarter 2026

SmartFinancial Announces Results for the Third Quarter 2026 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

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 revenue 1 at $57.5 million and diluted operating earnings 1 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.

2 Core 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

(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

(Decrease)

Beginning balance

45,252

43,950

1,302

Charge-offs

(782

)

(658

)

(124

)

Recoveries

121

105

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

(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

(Decrease)

Service charges on deposit accounts

2,001

1,881

120

Gain on sale of securities, net

(54

)

Mortgage banking income

1,025

916

109

Investment services

1,747

1,724

Interchange and debit card transaction fees

1,747

1,676

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

(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

Data processing and technology

2,692

2,683

Professional services

1,541

1,366

175

Amortization of intangibles

450

454

)

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 share 1 was $28.50 at September 30, 2026, compared to $26.85 at December 31, 2025. Tangible common equity 1 as a percentage of tangible assets 1 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

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

17,029

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

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

2026

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

155

Subordinated debt

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

—

(3,715

)

(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

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

—

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

2.89

2.18

Diluted

1.10

0.96

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 fees 1

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 securities 2

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

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

1 Yields 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.

2 Yields 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 fees 1

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 securities 2

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

1 Yields 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.

2 Yields 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

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 leases 1 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

0.94

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

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

9.83

9.85

Tier 1 capital

9.80

9.77

9.83

9.85

Total capital

12.62

12.64

12.72

12.71

13.31

SmartBank 3

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

1 Borrowers 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.

2 Total 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

Three Months Ended

Nine Months Ended

Sep

Jun

Mar

Dec

Sep

2026

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 equity 1

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 assets 1

1.20

1.10

0.96

0.95

1.02

1.09

0.92

Operating PPNR return on average assets 1

1.37

1.48

1.47

1.44

1.29

1.44

1.22

Operating return on average shareholders' equity 1

12.64

11.43

9.90

9.96

10.92

11.35

9.78

Operating return on average tangible common equity 1

15.07

13.70

11.93

12.07

13.53

13.60

12.25

Operating efficiency ratio 1

62.85

60.38

60.75

60.45

63.61

61.35

65.85

Operating noninterest income / average assets 1

0.52

0.53

0.56

0.57

0.59

0.54

0.64

Operating noninterest expense / average assets 1

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

Yield on earning assets, FTE

5.72

5.70

5.62

5.65

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

2.89

2.18

Net income, diluted

1.10

0.96

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

0.86

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 share 1

28.50

28.22

27.33

26.85

26.00

28.50

26.00

Common shares outstanding

17,095,789

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

2026

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

)

—

3,715

(55

)

3,719

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

)

(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

0.86

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

)

—

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 assets 1

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 assets 2

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

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

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

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

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

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

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

7 Operating 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

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

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