SmartFinancial Announces Results for the Second Quarter 2024

Core Viewpoint - SmartFinancial, Inc. reported a net income of $8.0 million for Q2 2024, reflecting a decrease from $8.8 million in Q2 2023 and $9.4 million in Q1 2024, with operating earnings of $7.8 million [5][22]. Financial Performance - Net income for Q2 2024 was $8.0 million, or $0.48 per diluted share, compared to $8.8 million, or $0.52 per diluted share in Q2 2023 [5]. - Operating earnings for Q2 2024 were $7.8 million, or $0.46 per diluted share, down from $8.8 million, or $0.52 per diluted share in Q2 2023 [5]. - Noninterest income decreased to $7.6 million in Q2 2024 from $8.4 million in the prior quarter, primarily due to a lack of significant gains from asset sales [29][30]. Balance Sheet Highlights - Total assets increased to $4.89 billion as of June 30, 2024, up from $4.83 billion at the end of 2023, driven by a $129.7 million increase in loans and leases [14][34]. - Total liabilities rose to $4.42 billion from $4.37 billion at the end of 2023, with organic deposit growth contributing to this increase [33][34]. - Shareholders' equity reached $472.5 million, an increase of $12.6 million from December 31, 2023, primarily due to net income [15][34]. Credit Quality - The allowance for credit losses was $34.7 million, representing 0.97% of total loans and leases as of June 30, 2024, slightly down from 0.98% in the previous quarter [24]. - Nonperforming loans and leases increased to $6.6 million, with a nonperforming loans ratio of 0.19% as of June 30, 2024 [29]. Operational Metrics - The tax equivalent net interest margin improved to 2.97% in Q2 2024 from 2.85% in Q1 2024, aided by higher yields on interest-earning assets [23]. - Average interest-earning assets remained stable at approximately $4.5 billion, with a slight increase in average loans and leases [8]. Growth Strategy - The company reported an 11% annualized growth in loans during the quarter, indicating strong demand and effective utilization of liquidity [22]. - Tangible book value per share increased by 10% on an annualized basis quarter-over-quarter, reflecting solid growth in operating revenue [22].