SmartFinancial(SMBK) - 2025 Q4 - Annual Results

Financial Performance - Net income for Q4 2025 was $13.7 million, or $0.81 per diluted common share, compared to $9.6 million, or $0.57 per diluted common share in Q4 2024[2] - Net income for the year ended December 2025 was $50,347,000, a significant increase of 39.3% from $36,141,000 in 2024[38] - Basic earnings per share for Q4 2025 was $0.82, compared to $0.58 in Q4 2024, representing a growth of 41.4%[38] - Net income for Q4 2025 reached $13,703,000, compared to $11,705,000 in Q3 2025, reflecting a 17.0% increase[50] - Operating earnings (Non-GAAP) for Q4 2025 were $13,715,000, up from $11,708,000 in Q3 2025, representing a 17.1% growth[50] Asset and Liability Growth - Total assets increased by $584.9 million to $5.86 billion as of December 31, 2025, primarily driven by a $457.2 million increase in loans and leases[20] - Total liabilities rose to $5.31 billion, an increase of $523.9 million, with total deposits increasing by $466.3 million[21] - Total assets increased to $5,860,810, up $584,906 from $5,275,904 in 2024, representing an increase of approximately 11.1%[23] - Total liabilities rose to $5,308,318, an increase of $523,875 from $4,784,443 in 2024, reflecting an increase of about 10.9%[23] Equity and Capital - Shareholders' equity increased to $552.5 million, up $61.0 million from the previous year, driven by net income of $50.3 million for the twelve months ending December 31, 2025[22] - Total equity reached $552,492, up $61,031 from $491,461 in 2024, marking an increase of approximately 12.4%[23] - The total shareholders' equity attributable to SmartFinancial Inc. and Subsidiary was $552,379, an increase from $491,348 in December 2024, marking an increase of approximately 12.5%[37] - Shareholders' equity rose to $546,489 thousand as of December 31, 2025, compared to $489,172 thousand a year earlier, indicating a growth of 11.7%[39] Income and Expense Analysis - Net interest income increased to $45.1 million in Q4 2025 from $42.4 million in the prior quarter, with average earning assets totaling $5.34 billion[4] - Noninterest income decreased by $418 thousand to $8.2 million in Q4 2025, primarily due to a reduction in insurance commissions[15] - Noninterest expense decreased by $1.4 million to $32.5 million in Q4 2025, mainly due to a decrease in restructuring expenses[17] - Total noninterest income for the year was $34,352,000, slightly up from $34,152,000 in 2024, indicating a growth of 0.6%[38] - Total noninterest expense for the year was $131,205,000, an increase of 8.4% from $120,890,000 in 2024[38] Loan and Deposit Growth - Organic loan growth was approximately 12% and organic deposit growth was 14% excluding brokered deposits for the year 2025[3] - Loans and leases increased to $4,363,582, up $457,242 from $3,906,340 in 2024, which is an increase of about 11.7%[23] - Total deposits grew to $5,152,789, an increase of $466,306 from $4,686,483 in 2024, representing an increase of approximately 10.0%[23] Credit Quality - The allowance for credit losses was $40.9 million, representing 0.94% of total loans and leases as of December 31, 2025[11] - The allowance for credit losses was $40,906, up from $37,423 in December 2024, indicating a rise of about 6.6%[37] - Nonperforming loans and leases decreased to $9,442 thousand in December 2025 from $10,099 thousand in September 2025, a reduction of 6.51%[45] - Total nonperforming assets increased slightly to $12,690 thousand in December 2025 from $12,543 thousand in September 2025, an increase of 1.17%[45] Efficiency and Returns - Return on average assets for Q4 2025 was 0.95%, up from 0.88% in Q3 2025[48] - Return on average shareholders' equity increased to 9.95% in Q4 2025 from 9.19% in Q3 2025[48] - Efficiency ratio improved to 60.91% in Q4 2025 from 66.14% in Q3 2025[48] - Operating return on average tangible common equity was 12.07% in Q4 2025, up from 11.53% in Q3 2025[48] Interest Income and Margin - Total interest income for Q4 2025 reached $75,625,000, an increase of 14.3% compared to $66,096,000 in Q4 2024[38] - Net interest income after provision for credit losses was $40,962,000, up from $35,648,000 in Q4 2024, reflecting a growth of 14.5%[38] - The tax equivalent net interest margin expanded to 3.38% in Q4 2025, up from 3.25% in the prior quarter, due to declines in deposit costs[5] - Net interest margin, FTE, improved to 3.38% in Q4 2025 from 3.29% in Q3 2025[48]