Financial Data and Key Metrics Changes - The tangible book value increased to $26 per share, representing over 26% annualized growth quarter-over-quarter [5] - Operating earnings for the quarter were $14.5 million or $0.86 per diluted share, marking the sixth consecutive quarter of positive operating leverage [5] - Total operating revenue reached $50.8 million, with net interest income expanding [6][10] - Operating non-interest expenses were $32.6 million, aligning with targets [15] Business Line Data and Key Metrics Changes - Loans grew at an annualized rate of 10%, while deposits increased by 15% or $179 million for the quarter [5][7] - The average portfolio yield, including fees and accretion, rose to 6.14% [7] - Operating non-interest income, after adjustments, was $8.4 million, which is $500,000 lower than the previous quarter [14] Market Data and Key Metrics Changes - Non-brokered deposit growth was strong, with an increase of $283 million, representing over 24% growth on an annualized basis [10] - The overall interest-bearing cost rose by three basis points to 2.98% [10] - The loan-to-deposit ratio decreased to 84% despite loan growth [8] Company Strategy and Development Direction - The company is focused on organic growth and expanding client relationships, aiming to become one of the Southeast's strongest regional community banks [8][19] - There is a commitment to maintaining a level expense base while growing revenue, EPS, and book value [19] - The company plans to continue investing in technology and enhancing operational efficiency [29][30] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the future, projecting continued growth in revenue and operating leverage [17][18] - The company anticipates a fourth-quarter margin in the range of 3.3%-3.35% [13] - Credit quality remains strong, with non-performing assets at 0.22% of total assets [14] Other Important Information - The company was named to Fortune's list of best workplaces, highlighting its strong internal culture [19] - The consolidated risk-based capital ratio rose to 13.3%, indicating a strong capital position [16] Q&A Session Summary Question: Update on Alabama franchise growth outlook - Management noted that hiring has been evenly spread across regions, with optimism about growth in Alabama, particularly in cities like Birmingham and Auburn [22][23] Question: Margin guidance for the fourth quarter - Management indicated that cash on the balance sheet will be deployed to fund production, with no significant changes expected in asset size [26][27] Question: Technology initiatives and expense impact - Management discussed ongoing tech initiatives aimed at increasing efficiency without significantly raising expenses [28][29] Question: Future operating leverage expectations - Management expressed confidence in maintaining positive operating leverage into 2026, with a focus on balanced growth [38][40] Question: Deposit beta expectations with rate cuts - Management aims for a deposit beta of around 40% for future rate cuts, with current rates being managed effectively [49][50] Question: Fee growth outlook - Management expects fee growth to continue, driven by improvements in mortgage and treasury management services [52][53] Question: Loan loss reserve release and future expectations - Management confirmed that the reserve ratio may remain stable or see modest increases as growth continues [69][70] Question: M&A strategy - Management clarified that while organic growth remains the primary focus, they are open to evaluating strategic M&A opportunities if they arise [82][84]

Financial Data and Key Metrics Changes - The tangible book value increased to $26 per share, representing over 26% annualized growth quarter over quarter [5] - Operating earnings for the quarter were $14.5 million or $0.86 per diluted share, marking the sixth consecutive quarter of positive operating leverage [5] - Total operating revenue reached $50.8 million, with net interest income expanding and non-interest income remaining stable [6][12] Business Line Data and Key Metrics Changes - Loans grew at an annualized rate of 10%, while deposits increased by 15% annualized, amounting to $179 million for the quarter [5][7] - The average portfolio yield, including fees and accretion, rose to 6.14% [7] - Operating non-interest expenses were $32.6 million, aligning with prior quarter results [15] Market Data and Key Metrics Changes - Non-brokered deposit growth was strong, with an increase of $283 million, representing over 24% annualized growth [10] - The loan-to-deposit ratio decreased to 84%, providing flexibility for balance sheet management [8] - The overall liquidity position at quarter end was approximately 21% [10] Company Strategy and Development Direction - The company is focused on organic growth, enhancing client relationships, and expanding its market presence in the Southeast [8][19] - There is a commitment to maintaining a strong operational efficiency ratio, which improved to 64% from 66% in the previous quarter [15] - The company aims to continue leveraging its balance sheet and grow revenue, EPS, and book value while managing expenses prudently [19] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the future, projecting continued growth in revenue and operating leverage [17][18] - The company anticipates a fourth-quarter margin in the range of 3.3% to 3.35% [13] - There is confidence in the ability to maintain positive operating leverage and achieve revenue growth in 2026 [38] Other Important Information - The company was named to Fortune's list of best workplaces, highlighting its strong internal culture [19] - The capital ratios improved significantly due to subordinated debt issuance, with the total consolidated risk-based capital ratio rising to 13.3% [16] Q&A Session Summary Question: Update on Alabama franchise growth outlook - Management noted that hires have been evenly spread across regions, with positive momentum in Alabama, particularly in Birmingham and Auburn [22][23] Question: Margin guidance for Q4 - Management indicated that cash on the balance sheet will be deployed to fund loan production, with no significant change in asset size expected [26][27] Question: Technology initiatives and expense impact - Management discussed ongoing tech initiatives aimed at increasing efficiency without significantly raising expenses, focusing on enhancing client experience [28][29] Question: Future of positive operating leverage - Management expressed confidence in maintaining positive operating leverage into 2026, with a focus on balanced growth and expense management [36][38] Question: Deposit beta expectations - Management aims for a deposit beta of around 40% for future rate cuts, with current rates being managed effectively [48][50] Question: Fee growth outlook - Management expects fee growth to continue, driven by improvements in mortgage and treasury management services [52][53] Question: M&A strategy - Management clarified that while organic growth remains the primary focus, they are open to evaluating strategic M&A opportunities that align with their goals [78][80]

Financial Data and Key Metrics Changes - The company reported operating earnings of $14.5 million or $0.86 per diluted share, achieving a quarterly revenue target of $50 million ahead of schedule [6][12] - Tangible book value increased to $26 per share, representing over 26% annualized growth quarter over quarter [5] - Total operating revenue was $50.8 million, with net interest income expanding and non-interest income remaining solid [7][12] Business Line Data and Key Metrics Changes - Loans grew at an annualized rate of 10%, while deposits increased by 15% annualized, amounting to $179 million for the quarter [6][10] - Non-brokered deposit growth was strong, with an increase of $283 million, representing over 24% growth on an annualized basis [12] - Operating non-interest income was $8.4 million, slightly lower than the previous quarter due to the sale of insurance operations [16] Market Data and Key Metrics Changes - The loan-to-deposit ratio was at 84%, down quarter over quarter despite loan growth [11] - The average portfolio yield, including fees, rose to 6.14%, with new loan production contributing positively to overall yield levels [10] Company Strategy and Development Direction - The company aims to deepen its market presence and continue organic growth, with a focus on recruiting talented bankers [21][22] - Strategic initiatives include technology enhancements and a focus on operational efficiency, with an improved operating efficiency ratio of 64% [17][19] - The company is positioned as one of the Southeast's strongest regional community banks, with a commitment to maintaining a strong credit quality [11][20] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about continued revenue growth and operating leverage, projecting a margin of 3.3% to 3.35% for Q4 [15][19] - The company anticipates a stable credit environment with low non-performing assets at 0.22% of total assets [16] - Future margin expansion is expected to be in the range of 5 to 7 basis points per quarter in 2026 [51][86] Other Important Information - The company was named to Fortune's list of best workplaces, highlighting its strong internal culture [22] - The total consolidated risk-based capital ratio rose to 13.3%, indicating a strong capital position [17] Q&A Session Summary Question: Update on Alabama franchise growth outlook - Management noted that hiring has been evenly spread across regions, with positive momentum in Alabama and other markets [28][30] Question: Margin guidance for Q4 and balance sheet size - The company plans to deploy cash on hand to fund loan production, expecting no significant change in asset size [34] Question: Technology initiatives and expense impact - New technology initiatives are expected to enhance efficiency without significantly increasing expenses [36][39] Question: Future of positive operating leverage - Management is confident in maintaining positive operating leverage through revenue growth outpacing expense increases [46][49] Question: Deposit beta expectations with rate cuts - The company aims for a deposit beta of around 40% with future rate cuts, having already seen some success in reducing deposit costs [58][60] Question: Fee revenue outlook for next year - Management expects fee revenues to trend upward, with several initiatives in place to drive growth [61][65] Question: Loan pipeline and growth into 2026 - The company anticipates maintaining loan growth around the 10% mark, supported by a strong pipeline [70][72] Question: M&A strategy - The focus remains on organic growth, but management is open to evaluating strategic M&A opportunities that align with their goals [92][94]

Financial Data and Key Metrics Changes - The tangible book value increased to $26 per share, representing over 26% annualized growth quarter over quarter [5] - Operating earnings for the quarter were $14.5 million or $0.86 per diluted share, marking the sixth consecutive quarter of positive operating leverage [5] - Total operating revenue reached $50.8 million, with net interest income expanding [6][11] - Non-performing assets remained low at 22 basis points, indicating strong credit quality [5][14] Business Line Data and Key Metrics Changes - Loans grew at an annualized rate of 10%, while deposits increased by 15% or $179 million for the quarter [5][8] - Non-brokered deposit growth was $283 million, representing over 24% annualized growth [11] - Operating non-interest income, adjusted for the sale of insurance operations, was $8.4 million, slightly lower than the previous quarter [15] Market Data and Key Metrics Changes - The average portfolio yield, including fees and accretion, rose to 6.14% [8] - The loan-to-deposit ratio decreased to 84%, providing flexibility for balance sheet management [9] Company Strategy and Development Direction - The company aims to deepen its market presence and continue organic growth, targeting high single-digit growth rates [19] - Investments in technology and treasury management are expected to enhance operational efficiency and client experience [10][27] - The company was recognized on Fortune's list of best workplaces, highlighting its strong internal culture [20] Management's Comments on Operating Environment and Future Outlook - Management remains optimistic about the operating environment, projecting continued revenue and EPS growth while maintaining prudent expense management [20] - The company anticipates a net interest margin of 3.3% to 3.35% for Q4 and expects margin expansion of 5 to 7 basis points per quarter in 2026 [13][61] Other Important Information - The allowance for credit losses is now at 0.93% of total loans, reflecting robust asset quality [14] - The total consolidated risk-based capital ratio improved to 13.3%, indicating a strong capital position [17] Q&A Session Summary Question: Update on Alabama franchise growth outlook - Management noted that hiring has been evenly spread across regions, with positive momentum in Alabama, particularly in cities like Birmingham and Auburn [23][24] Question: Margin guidance for Q4 and balance sheet size - The company plans to deploy cash on hand to fund loan production, expecting no significant change in balance sheet size [26] Question: Impact of tech initiatives on productivity and expenses - New technology initiatives are expected to enhance efficiency without significantly increasing expenses, allowing for reinvestment [27][30] Question: Future of positive operating leverage - Management is confident in maintaining positive operating leverage through revenue growth outpacing expense increases [34][36] Question: Fee growth outlook and insurance impact - The company anticipates continued fee growth, particularly from mortgage and treasury management services, despite the removal of insurance operations from the revenue line [45][46] Question: Plans for remaining brokered deposits - The company aims to reduce brokered deposits further, with a goal of eliminating them entirely in the future [64] Question: M&A strategy - The focus remains on organic growth, but management is open to evaluating strategic M&A opportunities that enhance the company's capabilities [66][68]

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INVESTOR CALL 3Q 2025 October 22, 2025, 10:00am ET Webcast: www.smartbank.com (Investor Relations) Audio Only: 1-833-470-1428 Access Code: 241226 Miller Welborn Chairman of the Board Billy Carroll President & CEO Ron Gorczynski CFO 1 DISCLOSURES Forward-Looking Statements This presentation 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 Secu ...

Core Insights - SmarFinancial (SMBK) reported a revenue of $51.07 million for the quarter ended September 2025, reflecting a year-over-year increase of 15.6% and a slight surprise of +0.05% over the Zacks Consensus Estimate of $51.04 million [1] - The earnings per share (EPS) for the quarter was $0.86, compared to $0.54 in the same quarter last year, resulting in an EPS surprise of +17.81% against the consensus estimate of $0.73 [1] Financial Performance Metrics - Efficiency Ratio stood at 66.3%, slightly above the average estimate of 65.9% based on three analysts [4] - Net Interest Margin was reported at 3.3%, matching the average estimate of 3.3% [4] - Net charge-offs to average loans were 0.1%, consistent with the average estimate of 0.1% from two analysts [4] - Average Balance of Total interest earning assets was $5.23 billion, exceeding the average estimate of $5.07 billion [4] - Total noninterest income was $8.64 million, below the average estimate of $9.01 million [4] - Mortgage banking income was $0.71 million, slightly above the estimate of $0.69 million [4] - Net interest income (FTE) was reported at $42.79 million, surpassing the average estimate of $42.03 million [4] - Interchange and debit card transaction fees were $1.34 million, slightly below the estimate of $1.37 million [4] - Service charges on deposit accounts were $1.83 million, in line with the average estimate of $1.8 million [4] - Investment services income was $1.69 million, exceeding the average estimate of $1.53 million [4] - Other noninterest income was $1.78 million, below the average estimate of $1.93 million [4] - Insurance commissions were reported at $1.05 million, significantly lower than the average estimate of $1.59 million [4] Stock Performance - Over the past month, shares of SmarFinancial have returned -5.1%, contrasting with the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance relative to the broader market in the near term [3]

[Executive Summary & Highlights](index=1&type=section&id=Executive%20Summary%20%26%20Highlights) [Third Quarter 2025 Financial Performance](index=1&type=section&id=Third%20Quarter%202025%20Financial%20Performance) SmartFinancial reported significant Q3 2025 net income and operating earnings growth, reflecting improved operational performance Key Financial Performance (Q3 2025 vs. Prior Periods) | Metric | Q3 2025 | Q3 2024 | Q2 2025 | | :-------------------------- | :------ | :------ | :------ | | Net Income | $13.7M | $9.1M | $11.7M | | Diluted EPS | $0.81 | $0.54 | $0.69 | | Operating Earnings | $14.5M | $9.1M | $11.7M | | Operating Diluted EPS | $0.86 | $0.54 | $0.69 | [Strategic Highlights and Management Commentary](index=1&type=section&id=Strategic%20Highlights%20and%20Management%20Commentary) SmartFinancial achieved its $50 million quarterly revenue target early, demonstrating strong operational execution, organic growth, and strategic balance sheet enhancements - Achieved over **$50 million** in quarterly operating revenue, ahead of schedule[3](index=3&type=chunk)[6](index=6&type=chunk) - Demonstrated sixth consecutive quarter of **positive operating leverage**[3](index=3&type=chunk) - Reported **10% annualized organic loan growth** and **15% annualized deposit growth** quarter-over-quarter[3](index=3&type=chunk)[6](index=6&type=chunk) - Tangible book value per common share rose **26%** quarter over quarter annualized[3](index=3&type=chunk)[6](index=6&type=chunk) - Strategic actions included a **$4.0 million pre-tax gain** from the sale of SBK Insurance (SBKI), repositioning **$85 million** of available-for-sale securities (resulting in a **$3.9 million pre-tax loss**), and a **$100 million subordinated debt issuance** to retire existing debt and fund growth[3](index=3&type=chunk)[6](index=6&type=chunk) [Financial Performance Analysis](index=1&type=section&id=Financial%20Performance%20Analysis) [Net Interest Income and Net Interest Margin](index=1&type=section&id=Net%20Interest%20Income%20and%20Net%20Interest%20Margin) Net interest income increased from earning asset growth, but net interest margin slightly decreased due to rising liability costs Net Interest Income and Margin Trends | Metric | Q3 2025 | Q2 2025 | Change (QoQ) | | :-------------------------------- | :------ | :------ | :----------- | | Net Interest Income | $42.4M | $40.3M | +$2.1M | | Tax Equivalent Net Interest Margin | 3.25% | 3.29% | (0.04)% | | Yield on Loans and Leases (FTE) | 6.05% | 5.99% | +0.06% | | Cost of Interest-Bearing Liabilities | 3.07% | 2.99% | +0.08% | - Average earning assets totaled **$5.23 billion**, an increase of **$271.4 million** from the prior quarter, primarily from an increase in average loans and leases of **$121.0 million** and average interest-earning cash of **$152.6 million**[4](index=4&type=chunk) - Average interest-bearing liabilities increased by **$249.4 million** from the prior quarter, primarily attributable to an increase in average interest-bearing deposits of **$207.4 million** and average subordinated debt of **$45.4 million**[4](index=4&type=chunk) [Provision for Credit Losses and Credit Quality](index=3&type=section&id=Provision%20for%20Credit%20Losses%20and%20Credit%20Quality) Allowance for credit losses decreased, provision for credit losses significantly reduced, though nonperforming assets increased slightly Credit Quality Indicators | Metric | Sep 30, 2025 | Jun 30, 2025 | Change (QoQ) | | :------------------------------------------------ | :----------- | :----------- | :----------- | | Allowance for Credit Losses | $39.1M | $39.8M | -$0.7M | | Allowance for Credit Losses to Total Loans & Leases | 0.93% | 0.96% | (0.03)% | | Provision for Credit Losses | $351K | $1,747K | -$1,396K | | Nonperforming Loans & Leases to Total Loans & Leases | 0.24% | 0.19% | +0.05% | | Total Nonperforming Assets to Total Assets | 0.22% | 0.19% | +0.03% | [Noninterest Income](index=4&type=section&id=Noninterest%20Income) Noninterest income slightly decreased quarter-over-quarter, primarily from securities losses and reduced commissions, partially offset by an SBKI sale gain Noninterest Income (Q3 2025 vs. Q2 2025) | Category | Q3 2025 (in thousands) | Q2 2025 (in thousands) | Change (QoQ) (in thousands) | | :-------------------------------- | :--------------------- | :--------------------- | :-------------------------- | | Total Noninterest Income | $8,637 | $8,898 | $(261) | | Loss on sale of securities | $(3,715) | $(4) | $(3,711) | | Gain on sale of SBKI | $3,955 | $0 | $3,955 | | Insurance commissions | $1,049 | $1,554 | $(505) | [Noninterest Expense](index=4&type=section&id=Noninterest%20Expense) Noninterest expense increased quarter-over-quarter, mainly driven by restructuring expenses incurred in the third quarter Noninterest Expense (Q3 2025 vs. Q2 2025) | Category | Q3 2025 (in thousands) | Q2 2025 (in thousands) | Change (QoQ) (in thousands) | | :------------------------ | :--------------------- | :--------------------- | :-------------------------- | | Total Noninterest Expense | $33,869 | $32,569 | $1,300 | | Restructuring expenses | $1,310 | $0 | $1,310 | [Income Tax Expense](index=6&type=section&id=Income%20Tax%20Expense) Income tax expense increased in the third quarter of 2025 compared to the prior quarter Income Tax Expense (Q3 2025 vs. Q2 2025) | Metric | Q3 2025 (in thousands) | Q2 2025 (in thousands) | Change (QoQ) (in thousands) | | :--------------- | :--------------------- | :--------------------- | :-------------------------- | | Income Tax Expense | $3,285 | $2,556 | $729 | [Balance Sheet Trends](index=6&type=section&id=Balance%20Sheet%20Trends) [Assets](index=6&type=section&id=Assets) Total assets increased significantly since December 31, 2024, primarily due to growth in loans and leases, cash and cash equivalents, and securities Asset Trends (Sep 30, 2025 vs. Dec 31, 2024) | Metric | Sep 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | Increase (in thousands) | | :-------------------------- | :-------------------------- | :-------------------------- | :---------------------- | | Total Assets | $5,784,983 | $5,275,904 | $509,079 | | Loans and leases | $4,222,369 | $3,906,340 | $316,029 | | Cash and cash equivalents | $557,127 | $387,570 | $169,557 | | Securities | $634,459 | $608,987 | $25,472 | [Liabilities](index=6&type=section&id=Liabilities) Total liabilities increased since December 31, 2024, mainly driven by substantial growth in total deposits and an increase in subordinated debt Liability Trends (Sep 30, 2025 vs. Dec 31, 2024) | Metric | Sep 30, 2025 (in thousands) | Dec 31, 2024 (in thousands) | Increase (in thousands) | | :---------------- | :-------------------------- | :-------------------------- | :---------------------- | | Total Liabilities | $5,246,501 | $4,784,443 | $462,058 | | Total Deposits | $5,050,897 | $4,686,483 | $364,414 | | Subordinated Debt | $138,604 | $39,684 | $98,920 | - Deposit growth was primarily driven by increases in money market deposits (**+$178.8 million**), other time deposits (**+$174.4 million**), and interest-bearing demand deposits (**+$92.7 million**)[19](index=19&type=chunk) [Shareholders' Equity](index=6&type=section&id=Shareholders%27%20Equity) Shareholders' equity increased since December 31, 2024, primarily due to net income and a positive change in accumulated other comprehensive loss, partially offset by dividends paid Shareholders' Equity Trends (Sep 30, 2025 vs. Dec 31

Core Viewpoint - SmartFinancial, Inc. reported a significant increase in net income for the third quarter of 2025, indicating strong financial performance compared to the previous year and the prior quarter [1] Financial Performance - The company announced net income of $13.7 million for Q3 2025, which translates to $0.81 per diluted common share [1] - This represents a 50.5% increase in net income compared to $9.1 million, or $0.54 per diluted common share, for Q3 2024 [1] - Compared to the prior quarter, net income increased from $11.7 million, or $0.69 per diluted common share, reflecting a 17.1% quarter-over-quarter growth [1]

Core Viewpoint - SmarFinancial (SMBK) is expected to report a year-over-year increase in earnings and revenues for the quarter ended September 2025, with the actual results being crucial for its near-term stock price movement [1][2]. Earnings Expectations - The upcoming earnings report is anticipated to show quarterly earnings of $0.73 per share, reflecting a year-over-year increase of +35.2%, and revenues of $51.04 million, which is up 15.6% from the previous year [3]. - The earnings report is scheduled for release on October 21, and better-than-expected results could lead to a stock price increase, while disappointing results may cause a decline [2]. Estimate Revisions - The consensus EPS estimate has been revised down by 1.28% over the last 30 days, indicating a reassessment by analysts regarding the company's earnings prospects [4]. - SmarFinancial's Most Accurate Estimate is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -3.67%, which suggests a bearish outlook from analysts [12]. Earnings Surprise History - In the last reported quarter, SmarFinancial exceeded the expected earnings of $0.66 per share by delivering $0.69, resulting in a surprise of +4.55% [13]. - The company has beaten consensus EPS estimates in each of the last four quarters [14]. Industry Comparison - Bank OZK (OZK), another player in the Zacks Banks - Northeast industry, is expected to report earnings of $1.67 per share, indicating a year-over-year change of +7.7%, with revenues projected at $444.07 million, up 5% from the previous year [18]. - Bank OZK's consensus EPS estimate has been revised up by 0.2% over the last 30 days, but it currently has an Earnings ESP of -1.2%, making it difficult to predict a beat on the consensus EPS estimate [19][20].