Financial Data and Key Metrics Changes - The company reported its fourth quarter 2024 earnings, with specific financial metrics discussed during the call [2][3] Business Line Data and Key Metrics Changes - Detailed performance across various business lines was expected to be covered in the presentation, but specific data was not provided in the excerpts [2] Market Data and Key Metrics Changes - The call indicated that market conditions and performance metrics would be addressed, but no specific market data was included in the provided content [2] Company Strategy and Development Direction and Industry Competition - The company’s strategic direction and competitive landscape were likely to be discussed, particularly by the CEO and CFO, but specific strategies were not detailed in the excerpts [2] Management's Comments on Operating Environment and Future Outlook - Management acknowledged the presence of forward-looking statements, indicating that actual results could differ due to various risks and uncertainties, but specific comments on the operating environment were not included [3] Other Important Information - The company referenced non-GAAP financial measures related to its performance, with reconciliations available in the earnings release and investor presentation [3] Q&A Session All Questions and Answers Question: Inquiry about financial performance metrics - The management team indicated that they would address questions regarding financial performance metrics at the end of the call, but specific questions and answers were not provided in the excerpts [2]

Group 1 - SmarFinancial reported revenue of $46.81 million for the quarter ended December 2024, representing a 19.7% increase year-over-year [1] - The company's EPS for the quarter was $0.57, up from $0.41 in the same period last year, exceeding the consensus estimate of $0.54 by 5.56% [1] - The reported revenue surpassed the Zacks Consensus Estimate of $45.04 million, resulting in a surprise of +3.93% [1] Group 2 - Key metrics for SmarFinancial include an efficiency ratio of 69%, matching analyst estimates, and a net interest margin of 3.2%, slightly above the 3.1% estimate [4] - Total noninterest income was reported at $9.03 million, exceeding the average estimate of $8.27 million [4] - Net interest income (FTE) was $38.11 million, compared to the average estimate of $37.11 million [4] Group 3 - Over the past month, SmarFinancial shares returned +0.9%, underperforming the Zacks S&P 500 composite's +1.2% change [3] - The stock currently holds a Zacks Rank 4 (Sell), indicating potential underperformance in the near term [3]

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

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

Core Viewpoint - SmarFinancial (SMBK) has been upgraded to a Zacks Rank 1 (Strong Buy), indicating a positive outlook on its earnings potential and likely favorable impact on its stock price [1][2]. Earnings Outlook - The Zacks Consensus Estimate for SmarFinancial's earnings per share (EPS) for the fiscal year ending December 2024 is projected at $2.01, reflecting a year-over-year change of -1% [5]. - Over the past three months, the Zacks Consensus Estimate for SmarFinancial has increased by 4.8%, indicating a trend of rising earnings estimates [5]. Impact of Earnings Estimates on Stock Prices - Changes in a company's future earnings potential, as shown by earnings estimate revisions, are strongly correlated with near-term stock price movements [3]. - Institutional investors often adjust their valuations based on earnings estimates, leading to significant stock price movements as they buy or sell shares [3]. Zacks Rating System - The Zacks Rank stock-rating system classifies stocks into five groups based on earnings estimates, with Zacks Rank 1 stocks historically generating an average annual return of +25% since 1988 [4]. - The upgrade of SmarFinancial to a Zacks Rank 1 places it in the top 5% of Zacks-covered stocks, suggesting a strong potential for market-beating returns in the near term [6].

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

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

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

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

SmarFinancial (SMBK) could be a solid addition to your portfolio given its recent upgrade to a Zacks Rank #1 (Strong Buy). This rating change essentially reflects an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices. The sole determinant of the Zacks rating is a company's changing earnings picture. The Zacks Consensus Estimate -- the consensus of EPS estimates from the sell-side analysts covering the stock -- for the current and following years is tracked by the sy ...