SmartFinancial Announces Results for the Fourth Quarter 2025

Core Insights - SmartFinancial, Inc. reported a net income of $13.7 million, or $0.81 per diluted common share, for Q4 2025, showing an increase from $9.6 million, or $0.57 per diluted common share, in Q4 2024, and remaining stable compared to the previous quarter [1][2]. Financial Performance - The company achieved approximately 11% positive operating leverage in 2025, marking the seventh consecutive quarter of positive operating leverage in Q4 [2]. - Organic loan growth was approximately 12%, while organic deposit growth, excluding brokered deposits, was 14% [2]. - Tangible book value per common share increased by 17% [2]. Net Interest Income and Margin - Net interest income for Q4 2025 was $45.1 million, up from $42.4 million in the prior quarter [3]. - The tax equivalent net interest margin rose to 3.38% in Q4 2025, compared to 3.25% in the prior quarter, primarily due to a decline in deposit costs [4][5]. - The cost of total deposits decreased to 2.26% from 2.44% in the prior quarter [5]. Credit Quality - The allowance for credit losses was $40.9 million, representing 0.94% of total loans and leases as of December 31, 2025 [7][9]. - Nonperforming loans and leases as a percentage of total loans and leases decreased to 0.22% from 0.24% in the previous quarter [10]. Noninterest Income and Expense - Noninterest income decreased by $418 thousand to $8.2 million in Q4 2025, attributed to lower insurance commissions and a prior quarter gain on the sale of SBK Insurance [12]. - Noninterest expense decreased by $1.4 million to $32.5 million, primarily due to reduced restructuring expenses [14]. Balance Sheet Trends - Total assets increased to $5.86 billion as of December 31, 2025, up from $5.28 billion a year earlier, driven by a $457.2 million increase in loans and leases [16][20]. - Total liabilities rose to $5.31 billion, with total deposits increasing by $466.3 million [17][18]. - Shareholders' equity totaled $552.5 million, an increase of $61.0 million from the previous year, driven by net income and a reduction in accumulated other comprehensive loss [19].