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SmartFinancial(SMBK) - 2024 Q4 - Annual Results
SMBKSmartFinancial(SMBK)2025-01-21 22:00

Financial Performance - SmartFinancial reported net income of 9.6million,or9.6 million, or 0.57 per diluted common share, for Q4 2024, a 55% increase from 6.2million,or6.2 million, or 0.37 per diluted common share, in Q4 2023[3]. - Net income for the three months ended December 31, 2024, was 9,640thousand,representinganincreaseof5.59,640 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,comparedto36,141, 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,upfrom9,641, up from 9,140 in Q3 2024, reflecting a growth of 5.5%[49]. Asset Growth - Total assets increased by 446.5millionto446.5 million to 5.28 billion as of December 31, 2024, primarily due to a 461.9millionincreaseinloansandleases[19][23].−Totalassetsincreasedto461.9 million increase in loans and leases[19][23]. - Total assets increased to 5,275,904 thousand as of December 2024, up from 4,829,387thousandinDecember2023,representingagrowthof9.24,829,387 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 4,756,276thousandasofDecember31,2023[42].−Tangibleassets(Non−GAAP)increasedto4,756,276 thousand as of December 31, 2023[42]. - Tangible assets (Non-GAAP) increased to 5,171,181 thousand in December 2024, compared to 4,722,239thousandinDecember2023,reflectingagrowthof9.54,722,239 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 151millionfromthepriorquarter[4][5].−Loansandleasesreached151 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 3,444,462thousandinDecember2023[37].−Totalloansandleasesreached3,444,462 thousand in December 2023[37]. - Total loans and leases reached 3,906,340 thousand as of December 31, 2024, a significant increase from 3,444,462thousandasofDecember31,2023[45].DepositGrowth−Totaldepositsroseby3,444,462 thousand as of December 31, 2023[45]. Deposit Growth - Total deposits rose by 418.6 million to 4.69billion,withsignificantcontributionsfrommoneymarketdepositsandbrokereddeposits[20][23].−Totaldepositsroseto4.69 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 4,267,854thousandinDecember2023[37].−Noninterest−bearingdemanddepositsincreasedto4,267,854 thousand in December 2023[37]. - Noninterest-bearing demand deposits increased to 965,552 thousand, a rise of 7.5% from 898,044thousandinDecember2023[37].IncomeandExpenseManagement−Noninterestincomedecreasedby898,044 thousand in December 2023[37]. Income and Expense Management - Noninterest income decreased by 109 thousand to 9.03million,primarilyduetoa9.03 million, primarily due to a 499 thousand decline in investment services[14][15]. - Noninterest expense increased by 1.4millionto1.4 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,comparedto32,291, compared to 30,846 in Q3 2024, indicating a rise of 4.7%[49]. Credit Quality - The allowance for credit losses was 37.4million,representing0.9637.4 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 8,101thousandayearearlier,indicatingimprovedassetquality[45].−Theallowanceforcreditlossestoloansandleasesremainedstableat0.968,101 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 491.5million,drivenbynetincomeof491.5 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].