Form 8-K - Current report

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of earliest event reported: October 23, 2023

SMARTFINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Tennessee		001-37661		62-1173944
(State or other jurisdiction of incorporation)		(Commission File Number)		(IRS Employer Identification No.)


5401 Kingston Pike, Suite 600
Knoxville, Tennessee		37919
(Address of Principal Executive Offices)		(Zip Code)

(865) 437-5700

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐ Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐ Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐ Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐ Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class			Trading Symbol(s)			Name of Exchange on which Registered
Common Stock, par value $1.00 per share			SMBK			The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the

Exchange Act. ☐

Item 2.02

Results of Operations and Financial Condition.

On October 23, 2023, SmartFinancial, Inc. (“SmartFinancial”) issued a press release (the “Press Release”) reporting earnings results for its third quarter ending September 30, 2023. A copy of the Press Release is attached hereto as Exhibit 99.1.

In accordance with General Instructions B.2 of Form 8K, the information in Item 2.02 of this report (including Exhibit 99.1) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01

Regulation FD Disclosure.

SmartFinancial is filing an investor slide presentation that it intends to review in conjunction with its earnings release conference call on October 24, 2023. The slides are attached hereto as Exhibit 99.2.

In accordance with General Instructions B.2 of Form 8K, the information in Item 7.01 of this report (including Exhibit 99.2) shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01		Financial Statements and Exhibits

Exhibit No.		Description
99.1		Press release announcing third quarter 2023 financial results dated October 23, 2023
99.2		Third quarter 2023 investor presentation
104		Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	SMARTFINANCIAL, INC.

Date: October 23, 2023
	/s/ William Y. Carroll, Jr.
	William Y. Carroll, Jr.
	President & Chief Executive Officer

Exhibit 99.1

3Q 2023

SmartFinancial Announces Results for the Third Quarter 2023

KNOXVILLE, TN – October 23, 2023 - SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NASDAQ: SMBK), today announced net income of $2.1 million, or $0.12 per diluted common share, for the third quarter of 2023, compared to net income of $11.5 million, or $0.68 per diluted common share, for the third quarter of 2022, and compared to prior quarter net income of $8.8 million, or $0.52 per diluted common share. Operating earnings¹, which excludes securities gains (losses) and merger related and restructuring expenses, net of tax adjustments, totaled $7.2 million, or $0.43 per diluted common share, in the third quarter of 2023, compared to $11.6 million, or $0.69 per diluted common share, in the third quarter of 2022, and compared to $8.8 million, or $0.52 per diluted common share, in the second quarter of 2023.

Highlights for the Third Quarter of 2023

●

Operating earnings¹ of $7.2 million, or $0.43 per diluted common share

●

Repositioned $159.6 million of available-for-sale securities, moving into higher yielding assets

●

Net organic loan and lease growth of $42 million - 5% annualized quarter-over-quarter increase

●

Credit quality remains solid with nonperforming assets to total assets of 0.12%

●

Deposit growth of $46.9 million – 4.5% annualized quarter-over-quarter increase

Billy Carroll, President & CEO, stated: “Our Company and employees continue to operate at a high level, providing excellent client service while tactfully navigating a difficult operating landscape. During September, we strategically took advantage of a balance sheet optimization opportunity, reallocating $160 million from low-yielding investments into higher yielding assets. We felt it prudent to capitalize on the current rate environment and better position our balance sheet as we look toward 2024. Our team continues to grow new loan and deposit relationships despite the higher rate headwinds, a testament to their professionalism and reputations within their respective markets. As our Bank absorbs and moves through the impacts of the recent Fed rate increases, we look forward to continued revenue expansion and remain bullish on our Company outlook.”

SmartFinancial's Chairman, Miller Welborn, concluded: "The entire SmartBank team worked diligently over the past quarter and, quite frankly, over the entire year to exceed client expectations and drive consistent growth. However, this quarter I was especially pleased that SmartBank was once again honored with the “Top Workplace” designation as voted on by employees for the seventh year in a row! I’m so proud of where we are as a company and extremely optimistic about the future.”

Net Interest Income and Net Interest Margin

Net interest income was $31.0 million for the third quarter of 2023, compared to $31.6 million for the prior quarter. Average earning assets totaled $4.40 billion, an increase of $58.5 million from the prior quarter. The increase in average earnings assets was primarily driven by an increase in average loans and leases of $52.1 million and average interest-earning cash of $34.2 million, offset by a decrease in average securities of $27.8 million. Average interest-bearing liabilities increased by $73.5 million from the prior quarter, attributable to an increase in average deposits of $82.1 million, offset by a decrease in average borrowings of $8.6 million.

The tax equivalent net interest margin was 2.81% for the third quarter of 2023, compared to 2.93% for the prior quarter. The tax equivalent net interest margin was negatively impacted by the continued rise in the cost of interest-bearing liabilities and increased pricing competition. The yield on loans and leases, excluding loan fees was 5.52% for the third quarter, compared to 5.39% for the prior quarter.

¹ Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP reconciliation

The cost of total deposits for the third quarter of 2023 was 2.20% compared to 1.89% in the prior quarter. The cost of interest-bearing liabilities increased to 2.89% for the third quarter of 2023 compared to 2.53% for the prior quarter. The cost of average interest-bearing deposits was 2.84% for the third quarter of 2023 compared to 2.46% for the prior quarter, an increase of 38 basis points. The increase in the cost of deposits is due to an increase in interest rates, customer migration to higher rate deposit products and increased competition for deposits.

The following table presents selected interest rates and yields for the periods indicated:


	Three Months Ended
	Sep		Jun		Increase
Selected Interest Rates and Yields	2023		2023		(Decrease)
Yield on loans and leases, excluding loan fees	5.52	%	5.39	%	0.13	%
Yield on loans and leases	5.61	%	5.51	%	0.10	%
Yield on earning assets, on a fully tax equivalent basis (FTE)	4.99	%	4.82	%	0.17	%
Cost of interest-bearing deposits	2.84	%	2.46	%	0.38	%
Cost of total deposits	2.20	%	1.89	%	0.31	%
Cost of interest-bearing liabilities	2.89	%	2.53	%	0.36	%
Net interest margin, FTE	2.81	%	2.93	%	(0.12)	%

Provision for Credit Losses on Loans and Leases and Credit Quality

At September 30, 2023, the allowance for credit losses was $33.7 million. The allowance for credit losses to total loans and leases was 1.00% as of September 30, 2023, compared to 0.98% as of June 30, 2023.

The following table presents detailed information related to the provision for credit losses for the periods indicated (dollars in thousands):


	Three Months Ended
		Sep			Jun
Provision for Credit Losses on Loans and Leases Rollforward		2023			2023			Change
Beginning balance	$	32,747		$	32,279		$	468
Charge-offs		(417)			(207)			(210)
Recoveries		73			255			(182)
Net (charge-offs) recoveries		(344)			48			(392)
Provision for credit losses ⁽¹⁾		1,284			420			864
Ending balance	$	33,687		$	32,747		$	940

Allowance for credit losses to total loans and leases, gross		1.00	%		0.98	%		0.02	%

(1)

The current quarter-ended and prior quarter-ended, excludes unfunded commitments release of $489 thousand and $307 thousand, respectively. At September 30, 2023, the unfunded commitment liability totaled $2.3 million.

Nonperforming loans and leases as a percentage of total loans and leases was 0.12% as of September 30, 2023, an increase of 1 basis point from the 0.11% reported in the second quarter of 2023. Total nonperforming assets (which include nonaccrual loans and leases, loans and leases past due 90 days or more and still accruing, other real estate owned and other repossessed assets) as a percentage of total assets was 0.12% as of September 30, 2023, and June 30, 2023.

The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands):


	Three Months Ended
		Sep			Jun			Increase
Credit Quality		2023			2023			(Decrease)
Nonaccrual loans and leases	$	3,934		$	3,722		$	212
Loans and leases past due 90 days or more and still accruing		229			-			229
Total nonperforming loans and leases		4,163			3,722			441
Other real estate owned		1,370			1,708			(338)
Other repossessed assets		348			282			66
Total nonperforming assets	$	5,881		$	5,712		$	169

Nonperforming loans and leases to total loans and leases, gross		0.12	%		0.11	%		0.01	%
Nonperforming assets to total assets		0.12	%		0.12	%		-	%

Noninterest Income

Noninterest income decreased $6.4 million to $691 thousand for the third quarter of 2023 compared to $7.1 million for the prior quarter. The current quarter decrease was associated with a $6.8 million pre-tax loss on the sale of $159.6 million of available for sale securities, moving into higher yielding assets. Excluding the loss on securities, noninterest income increased $362 thousand.

The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands):


	Three Months Ended
		Sep		Jun		Increase
Noninterest Income		2023		2023		(Decrease)
Service charges on deposit accounts	$	1,736	$	1,657	$	79
Gain (loss) on sale of securities, net		(6,801)		-		(6,801)
Mortgage banking income		309		332		(23)
Investment services		1,461		1,300		161
Insurance commissions		1,153		1,139		14
Interchange and debit card transaction fees		1,357		1,347		10
Other		1,476		1,355		121
Total noninterest income	$	691	$	7,130	$	(6,439)

Noninterest Expense

Noninterest expense increased $1.1 million to $28.5 million for the third quarter of 2023 compared to $27.4 million for the prior quarter. The current quarter increase was primarily related to increases in health insurance claims, incentives and additional commission expense associated with higher production from our leasing company, wealth and capital markets teams.

The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands):


	Three Months Ended
		Sep		Jun		Increase
Noninterest Expense		2023		2023		(Decrease)
Salaries and employee benefits	$	16,785	$	15,947	$	838
Occupancy and equipment		3,547		3,318		229
FDIC insurance		825		875		(50)
Other real estate and loan related expenses		603		441		162
Advertising and marketing		346		305		41
Data processing and technology		2,378		2,235		143
Professional services		735		764		(29)
Amortization of intangibles		647		675		(28)
Merger related and restructuring expenses		110		-		110
Other		2,540		2,850		(310)
Total noninterest expense	$	28,516	$	27,410	$	1,106

Income Tax Expense

Income tax expense was $319 thousand for the third quarter of 2023, a decrease of $2.0 million, compared to $2.3 million for the prior quarter.

The effective tax rate was 13.37% for the third quarter of 2023 and 20.98% for the prior quarter. The primary reason for the 7.61% decline in the effective tax rate was due to lower earnings, largely from the $6.8 million pre-tax loss on sale of available-for-sale securities during the quarter.

Balance Sheet Trends

Total assets at September 30, 2023 were $4.80 billion compared to $4.64 billion at December 31, 2022. The $159.7 million increase is primarily attributable to increases in loans and leases of $125.4 million, cash and cash equivalents of $133.8 million and other assets of $15.1 million. Asset increases were offset by a decrease in securities of $102.4 million and an increase in the allowance for credit losses of $10.4 million, primarily for the one-time adjustment of $8.7 million related to the adoption of ASU 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit losses on Financial Instruments (“ASU 2016-13”) on January 1, 2023.

Total liabilities increased to $4.35 billion at September 30, 2023 from $4.21 billion at December 31, 2022. The increase of $145.5 million was primarily from organic deposit growth of $169.4 million, offset by a decrease in borrowings of $27.7 million.

Shareholders' equity at September 30, 2023 totaled $446.7 million, an increase of $14.2 million, from December 31, 2022. The increase in shareholders' equity was primarily driven by net income of $22.4 million for the nine months ended September 30, 2023, offset by the impact of the adoption of ASU 2016-13 on January 1, 2023, of $6.6 million (net of taxes), and dividends paid of $4.1 million. Tangible book value per share¹ was $19.94 at September 30, 2023, compared to $19.09 at December 31, 2022. Tangible common equity¹ as a percentage of tangible assets¹ was 7.23% at September 30, 2023, compared with 7.13% at December 31, 2022.

The following table presents selected balance sheet information for the periods indicated (dollars in thousands):


	Sep		Dec		Increase
Selected Balance Sheet Information	2023		2022		(Decrease)
Total assets	$	4,797,171	$	4,637,498	$	159,673
Total liabilities		4,350,519		4,205,046		145,473
Total equity		446,652		432,452		14,200
Securities		667,444		769,842		(102,398)
Loans and leases		3,378,999		3,253,627		125,372
Deposits		4,246,509		4,077,100		169,409
Borrowings		14,117		41,860		(27,743)

¹ Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP reconciliation

Conference Call Information

SmartFinancial issued this earnings release for the third quarter of 2023 on Monday, October 23, 2023, and will host a conference call on Tuesday, October 24, 2023, at 10:00 a.m. ET. To access this interactive teleconference, dial (833) 470-1428 or (404) 975-4839 and entering the access code, 071225. A replay of the conference call will be available through December 23, 2023, by dialing (866) 813-9403 or (929) 458-6194 and entering the access code, 816201. Conference call materials will be published on the Company’s webpage located at http://www.smartfinancialinc.com/CorporateProfile, at 9:00 a.m. ET prior to the conference call.

About SmartFinancial, Inc.

SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with branches across Tennessee, Alabama, and Florida. Recruiting the best people, delivering exceptional client service, strategic branching, and a disciplined approach to lending have contributed to SmartBank’s success. More information about SmartFinancial can be found on its website: www.smartfinancialinc.com.


Source
SmartFinancial, Inc.

Investor Contacts
Billy Carroll
President & CEO
(865) 868-0613 billy.carroll@smartbank.com

Ron Gorczynski
Executive Vice President, Chief Financial Officer
(865) 437-5724 ron.gorczynski@smartbank.com

Media Contact
Kelley Fowler
Senior Vice President, Public Relations & Marketing
(865) 868-0611 kelley.fowler@smartbank.com

Non-GAAP Financial Measures

Statements included in this earnings release include measures not recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of Non-GAAP financial measures to GAAP financial measures. SmartFinancial management uses several Non-GAAP financial measures, including: (i) operating earnings, (ii) operating return on average assets, (iii) operating pre-provision net revenue return on average assets, (iv) operating return on average shareholders' equity, (v) return on average tangible common equity, (vi) operating return on average tangible common equity, (vii) operating efficiency ratio, (viii) operating noninterest income, (ix) operating pre-provision net revenue earnings, (x) operating noninterest expense, (xi) tangible common equity, (xii) average tangible common equity, (xiii) tangible book value, (xiv) tangible assets; and ratios derived therefrom, in its analysis of the company's performance. Operating earnings excludes the following from net income: securities gains and losses and merger related and restructuring expenses. Operating return on average assets is the annualized operating earnings (Non-GAAP) divided by average assets. Operating pre-provision net revenue return on average assets is the annualized operating pre-provision net revenue income earnings (Non-GAAP) by average assets. Operating return on average shareholders' equity is the annualized operating earnings (Non-GAAP) divided by average equity. Return on average tangible common equity is the annualized net income divided by average tangible common equity (Non-GAAP). Operating return on average tangible common equity is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP). The operating efficiency ratio includes an adjustment for taxable equivalent yields and excludes securities gains and losses and merger related and restructuring expenses from the efficiency ratio. Operating noninterest income excludes the following from noninterest income: securities gains and losses. Operating pre-provision net revenue earnings is net interest income plus operating noninterest income (Non-GAAP) less operating noninterest expense (Non-GAAP). Operating noninterest expense excludes the following from noninterest expense: prior year adjustments to salaries, merger related and restructuring expenses and certain franchise tax true-up expenses. Tangible common equity (Non-GAAP) and average tangible common equity (Non-GAAP) excludes goodwill and other intangible assets from shareholders' equity and average shareholders' equity, respectively. Tangible book value (Non-GAAP) is tangible common equity (Non-GAAP) divided by common shares outstanding. Tangible assets (Non-GAAP) excludes goodwill and other intangibles from total assets. Management believes that Non-GAAP financial measures provide additional useful information that allows investors to evaluate the ongoing performance of the company and provide meaningful comparisons to its peers. Management believes these Non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results and allow investors and company management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider SmartFinancial's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.

Forward-Looking Statements

This news release may contain statements that are based on management’s current estimates or expectations of future events or future results, and that may be deemed to constitute forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements are not historical in nature and can generally be identified by such words as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “may,” “estimate,” and similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results of SmartFinancial to differ materially from future results expressed or implied by such forward-looking statements. Such risks, uncertainties, and other factors include, among others, (1) risks associated with our growth strategy, including a failure to implement our growth plans or an inability to manage our growth effectively; (2) claims and litigation arising from our business activities and from the companies we acquire, which may relate to contractual issues, environmental laws, fiduciary responsibility, and other matters; (3) the risk that cost savings and revenue synergies from recently completed acquisitions may not be realized or may take longer than anticipated to realize; (4) disruption from recently completed acquisitions with customer, supplier, employee, or other business relationships; (5) our ability to successfully integrate the businesses acquired as part of previous acquisitions with the business of SmartBank; (6) changes in management’s plans for the future; (7) prevailing, or changes in, economic or political conditions, particularly in our market areas, including the effects of declines in the real estate market, high unemployment rates, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; (8) increased technology and cybersecurity risks, including generative artificial intelligence risks; (9) credit risk associated with our lending activities; (10) changes in loan demand, real estate values, or competition; (11) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; (12) changes in accounting principles, policies, or guidelines; (13) changes in applicable laws, rules, or regulations; (14) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic and related variants; (15) potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; (16) significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; (17) the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and surrounding areas; and (18) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in SmartFinancial’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, in each case filed with or furnished to the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website (www.sec.gov). Undue reliance should not be placed on forward-looking statements. SmartFinancial disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events, or otherwise.

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)


	Ending Balances
	Sep		Jun		Mar		Dec		Sep
	2023		2023		2023		2022		2022
Assets:
Cash and cash equivalents	$	400,258	$	238,898	$	306,934	$	266,424	$	543,029
Securities available-for-sale, at fair value		385,131		540,308		560,418		483,893		519,723
Securities held-to-maturity, at amortized cost		282,313		283,564		284,776		285,949		287,104
Other investments		13,805		14,396		14,059		15,530		15,528
Loans held for sale		2,734		986		3,324		1,752		2,742
Loans and leases		3,378,999		3,337,790		3,281,787		3,253,627		3,099,116
Less: Allowance for credit losses		(33,687)		(32,747)		(32,279)		(23,334)		(22,769)
Loans and leases, net		3,345,312		3,305,043		3,249,508		3,230,293		3,076,347
Premises and equipment, net		92,020		92,351		92,190		92,511		91,944
Other real estate owned		1,370		1,708		1,708		1,436		1,226
Goodwill and other intangibles, net		107,792		108,439		109,114		109,772		110,460
Bank owned life insurance		82,914		82,419		81,938		81,470		81,001
Other assets		83,522		77,688		65,836		68,468		67,807
Total assets	$	4,797,171	$	4,745,800	$	4,769,805	$	4,637,498	$	4,796,911
Liabilities:
Deposits:
Noninterest-bearing demand	$	923,763	$	1,003,432	$	989,753	$	1,072,449	$	1,186,209
Interest-bearing demand		993,717		938,758		989,738		965,911		962,901
Money market and savings		1,766,409		1,720,202		1,761,847		1,583,481		1,663,355
Time deposits		562,620		537,192		488,208		455,259		467,944
Total deposits		4,246,509		4,199,584		4,229,546		4,077,100		4,280,409
Borrowings		14,117		15,496		16,546		41,860		18,423
Subordinated debt		42,078		42,057		42,036		42,015		41,994
Other liabilities		47,815		43,816		38,278		44,071		41,374
Total liabilities		4,350,519		4,300,953		4,326,406		4,205,046		4,382,200
Shareholders' Equity:
Common stock		16,995		17,004		17,004		16,901		16,888
Additional paid-in capital		295,542		295,296		294,930		294,330		293,907
Retained earnings		168,271		167,564		160,085		156,545		144,723
Accumulated other comprehensive income (loss)		(34,156)		(35,017)		(28,620)		(35,324)		(40,807)
Total shareholders' equity		446,652		444,847		443,399		432,452		414,711
Total liabilities & shareholders' equity	$	4,797,171	$	4,745,800	$	4,769,805	$	4,637,498	$	4,796,911

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands except share and per share data)


	Three Months Ended										Nine Months Ended
	Sep		Jun		Mar		Dec		Sep		Sep		Sep
	2023		2023		2023		2022		2022		2023		2022
Interest income:
Loans and leases, including fees	$	47,539	$	45,446	$	44,728	$	40,082	$	35,127	$	137,712	$	96,300
Investment securities:
Taxable		4,335		4,335		3,651		3,337		3,135		12,322		8,463
Tax-exempt		356		357		353		797		561		1,066		1,369
Federal funds sold and other earning assets		3,045		1,956		4,446		3,098		3,474		9,448		5,389
Total interest income		55,275		52,094		53,178		47,314		42,297		160,548		111,521
Interest expense:
Deposits		23,433		19,554		16,346		8,844		4,866		59,333		9,384
Borrowings		210		339		224		232		97		775		371
Subordinated debt		626		626		626		626		626		1,877		1,877
Total interest expense		24,269		20,519		17,196		9,702		5,589		61,985		11,632
Net interest income		31,006		31,575		35,982		37,612		36,708		98,563		99,889
Provision for credit losses		795		113		550		788		974		1,458		3,230
Net interest income after provision for credit losses		30,211		31,462		35,432		36,824		35,734		97,105		96,659
Noninterest income:
Service charges on deposit accounts		1,736		1,657		1,445		1,477		1,611		4,838		4,376
Gain (loss) on sale of securities, net		(6,801)		—		—		144		—		(6,801)		—
Mortgage banking		309		332		172		77		170		813		1,475
Investment services		1,461		1,300		1,005		958		1,051		3,766		3,186
Insurance commissions		1,153		1,139		1,259		1,233		864		3,551		2,363
Interchange and debit card transaction fees		1,357		1,347		1,383		1,328		1,356		4,087		4,107
Other		1,476		1,355		1,661		1,908		1,198		4,492		5,083
Total noninterest income		691		7,130		6,925		7,125		6,250		14,746		20,590
Noninterest expense:
Salaries and employee benefits		16,785		15,947		16,742		16,384		16,317		49,474		47,036
Occupancy and equipment		3,547		3,318		3,208		3,015		3,167		10,073		9,020
FDIC insurance		825		875		541		650		705		2,241		2,022
Other real estate and loan related expense		603		441		572		517		565		1,616		1,930
Advertising and marketing		346		305		355		308		288		1,006		985
Data processing and technology		2,378		2,235		2,163		2,097		1,872		6,777		5,185
Professional services		735		764		807		981		822		2,307		2,809
Amortization of intangibles		647		675		659		688		650		1,981		1,919
Merger related and restructuring expenses		110		—		—		(45)		87		110		607
Other		2,540		2,850		2,482		2,821		2,757		7,870		7,361
Total noninterest expense		28,516		27,410		27,529		27,416		27,230		83,455		78,874
Income before income taxes		2,386		11,182		14,828		16,533		14,754		28,396		38,375
Income tax expense		319		2,346		3,328		3,529		3,211		5,993		8,357
Net income	$	2,067	$	8,836	$	11,500	$	13,004	$	11,543	$	22,403	$	30,018
Earnings per common share:
Basic	$	0.12	$	0.53	$	0.69	$	0.78	$	0.69	$	1.33	$	1.79
Diluted	$	0.12	$	0.52	$	0.68	$	0.77	$	0.68	$	1.33	$	1.78
Weighted average common shares outstanding:
Basic		16,807,548		16,806,389		16,791,406		16,758,706		16,749,255		16,801,840		16,734,298
Diluted		16,918,635		16,898,091		16,896,494		16,884,253		16,872,022		16,907,325		16,867,970

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

YIELD ANALYSIS


	Three Months Ended
	September 30, 2023						June 30, 2023						September 30, 2022
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Loans and leases, including fees¹	$	3,360,678	$	47,539	5.61	%	$	3,308,595	$	45,446	5.51	%	$	3,037,092	$	35,127	4.59	%
Taxable securities		743,054		4,335	2.31	%		770,275		4,335	2.26	%		720,114		3,135	1.73	%
Tax-exempt securities²		64,707		451	2.77	%		65,265		452	2.78	%		101,559		732	2.86	%
Federal funds sold and other earning assets		229,487		3,045	5.26	%		195,266		1,956	4.02	%		587,755		3,474	2.34	%
Total interest-earning assets		4,397,926		55,370	4.99	%		4,339,401		52,189	4.82	%		4,446,520		42,468	3.79	%
Noninterest-earning assets		379,456						355,701						362,869
Total assets	$	4,777,382					$	4,695,102					$	4,809,389

Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits	$	969,122		5,463	2.24	%	$	950,227		4,892	2.06	%	$	966,437		1,956	0.80	%
Money market and savings deposits		1,753,671		13,744	3.11	%		1,737,303		11,785	2.72	%		1,632,510		2,298	0.56	%
Time deposits		551,191		4,226	3.04	%		504,350		2,877	2.29	%		501,919		612	0.48	%
Total interest-bearing deposits		3,273,984		23,433	2.84	%		3,191,880		19,554	2.46	%		3,100,866		4,866	0.62	%
Borrowings		16,228		210	5.13	%		24,845		339	5.47	%		13,141		97	2.93	%
Subordinated debt		42,065		626	5.90	%		42,044		626	5.97	%		41,980		626	5.91	%
Total interest-bearing liabilities		3,332,277		24,269	2.89	%		3,258,769		20,519	2.53	%		3,155,987		5,589	0.70	%
Noninterest-bearing deposits		951,179						951,381						1,192,813
Other liabilities		48,494						40,669						35,224
Total liabilities		4,331,950						4,250,819						4,384,024
Shareholders' equity		445,432						444,283						425,365
Total liabilities and shareholders' equity	$	4,777,382					$	4,695,102					$	4,809,389

Net interest income, taxable equivalent			$	31,101					$	31,670					$	36,879
Interest rate spread					2.11	%					2.30	%					3.09	%
Tax equivalent net interest margin					2.81	%					2.93	%					3.29	%

Percentage of average interest-earning assets to average interest-bearing liabilities					131.98	%					133.16	%					140.89	%
Percentage of average equity to average assets					9.32	%					9.46	%					8.84	%

¹Includes average balance of $2.7 million, $2.9 million, and $22.0 million in PPP loans for the quarters ended September 30, 2023, June 30, 2023, and September 30, 2022, respectively.

²Yields computed on tax-exempt instruments on a tax equivalent basis include $95 thousand, $95 thousand, and $171 thousand of taxable equivalent income for the quarters ended September 30, 2023, June 30, 2023, and September 30, 2022, respectively.

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

YIELD ANALYSIS


	Nine Months Ended
	September 30, 2023							September 30, 2022
	Average				Yield/			Average				Yield/
	Balance		Interest		Cost			Balance		Interest		Cost
Assets:
Loans and leases, including fees¹	$	3,309,616	$	137,712		5.56	%	$	2,880,444	$	96,300	4.47	%
Taxable securities		745,694		12,322		2.21	%		683,926		8,463	1.65	%
Tax-exempt securities²		65,170		1,349		2.77	%		102,872		1,873	2.43	%
Federal funds sold and other earning assets		267,124		9,448		4.73	%		663,400		5,389	1.09	%
Total interest-earning assets		4,387,604		160,831		4.90	%		4,330,642		112,025	3.46	%
Noninterest-earning assets		365,123							373,081
Total assets	$	4,752,727						$	4,703,723

Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits	$	954,585		14,583		2.04	%	$	952,523		3,137	0.44	%
Money market and savings deposits		1,770,232		35,912		2.71	%		1,572,287		4,282	0.36	%
Time deposits		508,600		8,838		2.32	%		531,419		1,965	0.49	%
Total interest-bearing deposits		3,233,417		59,333		2.45	%		3,056,229		9,384	0.41	%
Borrowings		19,309		775		5.37	%		37,933		371	1.31	%
Subordinated debt		42,044		1,877		5.97	%		41,959		1,877	5.98	%
Total interest-bearing liabilities		3,294,770		61,985		2.52	%		3,136,121		11,632	0.50	%
Noninterest-bearing deposits		972,507							1,111,854
Other liabilities		44,703							31,412
Total liabilities		4,311,980							4,279,387
Shareholders' equity		440,747							424,336
Total liabilities and shareholders' equity	$	4,752,727						$	4,703,723

Net interest income, taxable equivalent			$	98,846						$	100,393
Interest rate spread						2.39	%					2.96	%
Tax equivalent net interest margin						3.01	%					3.10	%

Percentage of average interest-earning assets to average interest-bearing liabilities						133.17	%					138.09	%
Percentage of average equity to average assets						9.27	%					9.02	%

¹Includes average balance of $2.9 million and $36.6 million in PPP loans for the nine months ended September 30, 2023, and 2022, respectively.

²Yields computed on tax-exempt instruments on a tax equivalent basis include $283 thousand and $504 thousand of taxable equivalent income for the nine months ended September 30, 2023, and 2022, respectively.

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)


	As of and for The Three Months Ended
	Sep			Jun			Mar			Dec			Sep
	2023			2023			2023			2022			2022
Composition of Loans and Leases:
Commercial real estate:
Owner occupied	$	776,402		$	769,978		$	764,166		$	765,041		$	714,734
Non-owner occupied		890,774			871,779			871,368			862,720			822,317
Commercial real estate, total		1,667,176			1,641,757			1,635,534			1,627,761			1,537,051
Commercial & industrial		617,115			594,427			571,153			551,867			514,280
Construction & land development		373,068			394,742			386,253			402,501			405,007
Consumer real estate		638,518			624,828			606,343			587,977			562,408
Leases		68,538			66,401			67,701			67,427			64,798
Consumer and other		14,584			15,635			14,803			16,094			15,572
Total loans and leases	$	3,378,999		$	3,337,790		$	3,281,787		$	3,253,627		$	3,099,116

Asset Quality and Additional Loan Data:
Nonperforming loans and leases	$	4,163		$	3,722		$	3,247		$	2,951		$	3,379
Other real estate owned		1,370			1,708			1,708			1,436			1,226
Other repossessed assets		348			282			66			422			—
Total nonperforming assets	$	5,881		$	5,712		$	5,021		$	4,809		$	4,605
Restructured loans and leases not included in nonperforming loans and leases	$	2,376		$	657		$	97		$	101		$	108
Net charge-offs to average loans and leases (annualized)		0.04	%		(0.01)	%		0.03	%		0.03	%		0.02	%
Allowance for credit losses to loans and leases		1.00	%		0.98	%		0.98	%		0.72	%		0.73	%
Nonperforming loans and leases to total loans and leases, gross		0.12	%		0.11	%		0.10	%		0.09	%		0.11	%
Nonperforming assets to total assets		0.12	%		0.12	%		0.11	%		0.10	%		0.10	%
Acquired loan and lease fair value discount balance	$	—		$	—		$	—		$	13,128		$	14,465
Accretion income on acquired loans and leases		—			—			—			1,396			148
PPP net fees deferred balance		94			104			114			122			140
PPP net fees recognized		10			10			8			17			163

Capital Ratios:
Equity to Assets		9.31	%		9.37	%		9.30	%		9.33	%		8.65	%
Tangible common equity to tangible assets (Non-GAAP)¹		7.23	%		7.25	%		7.17	%		7.13	%		6.49	%

SmartFinancial, Inc.²
Tier 1 leverage		8.13	%		8.24	%		7.91	%		7.95	%		7.40	%
Common equity Tier 1		10.01	%		10.12	%		9.95	%		9.65	%		9.65	%
Tier 1 capital		10.01	%		10.12	%		9.95	%		9.65	%		9.65	%
Total capital		11.83	%		11.94	%		11.77	%		11.40	%		11.44	%

SmartBank		Estimated³
Tier 1 leverage		9.00	%		9.18	%		8.87	%		8.90	%		8.27	%
Common equity Tier 1		11.13	%		11.27	%		11.15	%		10.82	%		10.78	%
Tier 1 capital		11.13	%		11.27	%		11.15	%		10.82	%		10.78	%
Total capital		11.85	%		11.97	%		11.85	%		11.44	%		11.41	%

¹Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures.

²All periods presented are estimated.

³ Current period capital ratios are estimated as of the date of this earnings release.

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands except share and per share data)


	As of and for The															As of and for The
	Three Months Ended															Nine Months Ended
	Sep			Jun			Mar			Dec			Sep			Sep			Sep
	2023			2023			2023			2022			2022			2023			2022
Selected Performance Ratios (Annualized):
Return on average assets		0.17	%		0.75	%		0.97	%		1.11	%		0.95	%		0.63	%		0.85	%
Return on average shareholders' equity		1.84	%		7.98	%		10.79	%		12.28	%		10.77	%		6.80	%		9.46	%
Return on average tangible common equity¹		2.43	%		10.57	%		14.45	%		16.65	%		14.36	%		9.02	%		12.60	%
Noninterest income / average assets		0.06	%		0.61	%		0.59	%		0.61	%		0.52	%		0.41	%		0.59	%
Noninterest expense / average assets		2.37	%		2.34	%		2.33	%		2.34	%		2.25	%		2.35	%		2.24	%
Efficiency ratio		89.96	%		70.82	%		64.16	%		61.28	%		63.39	%		73.65	%		65.47	%

Operating Selected Performance Ratios (Annualized):
Operating return on average assets¹		0.60	%		0.75	%		0.97	%		1.10	%		0.96	%		0.77	%		0.87	%
Operating PPNR return on average assets¹		0.84	%		0.96	%		1.30	%		1.46	%		1.30	%		1.03	%		1.20	%
Operating return on average shareholders' equity¹		6.41	%		7.98	%		10.79	%		12.15	%		10.83	%		8.35	%		9.60	%
Operating return on average tangible common equity¹		8.46	%		10.57	%		14.45	%		16.47	%		14.44	%		11.09	%		12.78	%
Operating efficiency ratio¹		73.60	%		70.64	%		64.02	%		61.36	%		62.93	%		69.23	%		64.69	%
Operating noninterest income / average assets¹		0.62	%		0.61	%		0.59	%		0.60	%		0.52	%		0.61	%		0.59	%
Operating noninterest expense / average assets¹		2.36	%		2.34	%		2.33	%		2.35	%		2.24	%		2.34	%		2.22	%

Selected Interest Rates and Yields:
Yield on loans and leases, excluding loan fees		5.52	%		5.39	%		5.20	%		4.99	%		4.50	%		5.37	%		4.31	%
Yield on loans and leases		5.61	%		5.51	%		5.57	%		5.05	%		4.59	%		5.56	%		4.47	%
Yield on earning assets, FTE		4.99	%		4.82	%		4.88	%		4.41	%		3.79	%		4.90	%		3.46	%
Cost of interest-bearing deposits		2.84	%		2.46	%		2.05	%		1.18	%		0.62	%		2.45	%		0.41	%
Cost of total deposits		2.20	%		1.89	%		1.56	%		0.85	%		0.45	%		1.89	%		0.30	%
Cost of interest-bearing liabilities		2.89	%		2.53	%		2.12	%		1.27	%		0.70	%		2.52	%		0.50	%
Net interest margin, FTE		2.81	%		2.93	%		3.31	%		3.51	%		3.29	%		3.01	%		3.10	%

Per Common Share:
Net income, basic	$	0.12		$	0.53		$	0.69		$	0.78		$	0.69		$	1.33		$	1.79
Net income, diluted		0.12			0.52			0.68			0.77			0.68			1.33			1.78
Operating earnings, basic¹		0.43			0.53			0.69			0.77			0.69			1.64			1.82
Operating earnings, diluted¹		0.43			0.52			0.68			0.76			0.69			1.63			1.81
Book value		26.28			26.16			26.08			25.59			24.56			26.28			24.56
Tangible book value¹		19.94			19.78			19.66			19.09			18.02			19.94			18.02
Common shares outstanding		16,994,543			17,004,092			17,004,092			16,900,805			16,887,555			16,994,543			16,887,555

¹Non-GAAP measure. See reconciliation of Non-GAAP measures.

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

NON-GAAP RECONCILIATIONS


	Three Months Ended															Nine Months Ended
	Sep			Jun			Mar			Dec			Sep			Sep			Sep
	2023			2023			2023			2022			2022			2023			2022
Operating Earnings:
Net income (GAAP)	$	2,067		$	8,836		$	11,500		$	13,004		$	11,543		$	22,403		$	30,018
Noninterest income:
Securities (gains) losses, net		6,801			—			—			(144)			—			6,801			—
Noninterest expenses:
Merger related and restructuring expenses		110			—			—			(45)			87			110			607
Income taxes:
Income tax effect of adjustments		(1,785)			—			—			49			(22)			(1,785)			(157)
Operating earnings (Non-GAAP)	$	7,193		$	8,836		$	11,500		$	12,864		$	11,608		$	27,529		$	30,468
Operating earnings per common share (Non-GAAP):
Basic	$	0.43		$	0.53		$	0.69		$	0.77		$	0.69		$	1.64		$	1.82
Diluted		0.43			0.52			0.68			0.76			0.69			1.63			1.81

Operating Noninterest Income:
Noninterest income (GAAP)	$	691		$	7,130		$	6,925		$	7,125		$	6,250		$	14,746		$	20,590
Securities (gains) losses, net		6,801			—			—			(144)			—			6,801			—
Operating noninterest income (Non-GAAP)	$	7,492		$	7,130		$	6,925		$	6,981		$	6,250		$	21,547		$	20,590
Operating noninterest income (Non-GAAP)/average assets¹		0.62	%		0.61	%		0.59	%		0.60	%		0.52	%		0.61	%		0.59	%

Operating Noninterest Expense:
Noninterest expense (GAAP)	$	28,516		$	27,410		$	27,529		$	27,416		$	27,230		$	83,455		$	78,874
Merger related and restructuring expenses		(110)			—			—			45			(87)			(110)			(607)
Operating noninterest expense (Non-GAAP)	$	28,406		$	27,410		$	27,529		$	27,461		$	27,143		$	83,345		$	78,267
Operating noninterest expense (Non-GAAP)/average assets²		2.36	%		2.34	%		2.33	%		2.35	%		2.24	%		2.34	%		2.22	%

Operating Pre-provision Net revenue ("PPNR") Earnings:
Net interest income (GAAP)	$	31,006		$	31,575		$	35,982		$	37,612		$	36,708		$	98,563		$	99,889
Operating noninterest income (Non-GAAP)		7,492			7,130			6,925			6,981			6,250			21,547			20,590
Operating noninterest expense (Non-GAAP)		(28,406)			(27,410)			(27,529)			(27,461)			(27,143)			(83,345)			(78,267)
Operating PPNR earnings (Non-GAAP)	$	10,092		$	11,295		$	15,378		$	17,132		$	15,815		$	36,765		$	42,212

Non-GAAP Return Ratios:
Operating return on average assets (Non-GAAP)³		0.60	%		0.75	%		0.97	%		1.10	%		0.96	%		0.77	%		0.87	%
Operating PPNR return on average assets (Non-GAAP)⁴		0.84	%		0.96	%		1.30	%		1.46	%		1.30	%		1.03	%		1.20	%
Return on average tangible common equity (Non-GAAP)⁵		2.43	%		10.57	%		14.45	%		16.65	%		14.36	%		9.02	%		12.60	%
Operating return on average shareholders' equity (Non-GAAP)⁶		6.41	%		7.98	%		10.79	%		12.15	%		10.83	%		8.35	%		9.60	%
Operating return on average tangible common equity (Non-GAAP)⁷		8.46	%		10.57	%		14.45	%		16.47	%		14.44	%		11.09	%		12.78	%

Operating Efficiency Ratio:
Efficiency ratio (GAAP)		89.96	%		70.82	%		64.16	%		61.28	%		63.39	%		73.65	%		65.47	%
Adjustment for taxable equivalent yields		(0.27)	%		(0.18)	%		(0.14)	%		(0.22)	%		(0.25)	%		(0.18)	%		(0.28)	%
Adjustment for securities (gains) losses		15.89	%		—	%		—	%		(0.20)	%		—	%		4.17	%		—	%
Adjustment for merger related income and costs		(31.98)	%		—	%		—	%		0.50	%		(0.21)	%		(8.41)	%		(0.50)	%
Operating efficiency ratio (Non-GAAP)		73.60	%		70.64	%		64.02	%		61.36	%		62.93	%		69.23	%		64.69	%

¹Operating noninterest income (Non-GAAP) is annualized and divided by average assets.

²Operating noninterest expense (Non-GAAP) is annualized and divided by average assets.

³Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets.

⁴Operating PPNR return on average assets (Non-GAAP) is the annualized operating PPNR earnings (Non-GAAP) divided by average assets.

⁵Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP).

⁶Operating return on average shareholders’ equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average equity.

⁷Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP).

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

NON-GAAP RECONCILIATIONS


	Three Months Ended										Nine Months Ended
	Sep		Jun		Mar		Dec		Sep		Sep		Sep
	2023		2023		2023		2022		2022		2023		2022
Tangible Common Equity:
Shareholders' equity (GAAP)	$	446,652	$	444,847	$	443,399	$	432,452	$	414,711	$	446,652	$	414,711
Less goodwill and other intangible assets		107,792		108,439		109,114		109,772		110,460		107,792		110,460
Tangible common equity (Non-GAAP)	$	338,860	$	336,408	$	334,285	$	322,680	$	304,251	$	338,860	$	304,251

Average Tangible Common Equity:
Average shareholders' equity (GAAP)	$	445,432	$	444,283	$	432,382	$	420,037	$	425,365	$	440,747	$	424,336
Less average goodwill and other intangible assets		108,194		108,851		109,537		110,206		106,483		108,856		105,698
Average tangible common equity (Non-GAAP)	$	337,238	$	335,432	$	322,845	$	309,831	$	318,882	$	331,891	$	318,638

Tangible Book Value per Common Share:
Book value per common share (GAAP)	$	26.28	$	26.16	$	26.08	$	25.59	$	24.56	$	26.28	$	24.56
Adjustment due to goodwill and other intangible assets		(6.34)		(6.38)		(6.42)		(6.50)		(6.54)		(6.34)		(6.54)
Tangible book value per common share (Non-GAAP)¹	$	19.94	$	19.78	$	19.66	$	19.09	$	18.02	$	19.94	$	18.02

Tangible Common Equity to Tangible Assets:
Total Assets (GAAP)	$	4,797,171	$	4,745,800	$	4,769,805	$	4,637,498	$	4,796,911	$	4,797,171	$	4,796,911
Less goodwill and other intangibles		107,792		108,439		109,114		109,772		110,460		107,792		110,460
Tangible Assets (Non-GAAP)	$	4,689,379	$	4,637,361	$	4,660,691	$	4,527,726	$	4,686,451	$	4,689,379	$	4,686,451
Tangible common equity to tangible assets (Non-GAAP)		7.23%		7.25%		7.17%		7.13%		6.49%		7.23%		6.49%

¹Tangible book value per share (Non-GAAP) is computed by dividing total stockholder's equity, less goodwill and other intangible assets, by common shares outstanding.

Exhibit 99.2

1 INVESTOR CALL 3Q 2023 October 24, 2023, 10:00am ET Webcast: www.smartbank.com (Investor Relations) Audio Only: 1 -833 -470 -1428 Access Code: 071225 Miller Welborn Chairman of the Board Billy Carroll President & CEO Ron Gorczynski CFO

DISCLOSURES 2 Forward-Looking Statements This presentation may contain statements that are based on management’s current estimates or expectations of future events or future results, and that may be deemed to constitute forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements on SmartFinancial Inc.’s (“SmartFinancial”) business and financial results and conditions, are not historical in nature and can generally be identified by such words as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “may,” “estimate,” and similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results of SmartFinancial to differ materially from future results expressed or implied by such forward-looking statements. Such risks, uncertainties, and other factors include, among others, (1) the risk of litigation and reputational risk associated with historic acquisition activity; (2) the risk that cost savings and revenue synergies from recently completed acquisitions may not be realized or may take longer than anticipated to realize; (3) disruption from recently completed acquisitions with customer, supplier, employee, or other business relationships; (4) our ability to successfully integrate the businesses acquired as part of previous acquisitions with the business of SmartBank; (5) changes in management’s plans for the future; (6) prevailing, or changes in, economic or political conditions, particularly in our market areas, including the effects of declines in the real estate market, inflationary pressures, elevated interest rates and slowdowns in economic growth, as well as the financial stress on borrowers as a result of the foregoing; (7) increased technology and cybersecurity risks, including generative artificial intelligence risks; (8) credit risk associated with our lending activities; (9) changes in loan demand, real estate values, or competition; (10) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; (11) changes in accounting principles, policies, or guidelines; (12) changes in applicable laws, rules, or regulations; (13) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of SmartFinancial’s participation in and execution of government programs related to the COVID-19 pandemic and related variants; (14) potential impacts of adverse developments in the banking industry highlighted by high-profile bank failures, including impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; (15) significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; (16) the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and surrounding areas; and (17) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in SmartFinancial’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, in each case filed with or furnished to the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website (www.sec.gov). Undue reliance should not be placed on forward-looking statements. SmartFinancial disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events, or otherwise. Non-GAAP Financial Measures Statements included in this presentation include Non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of Non-GAAP financial measures to GAAP financial measures. SmartFinancial management uses several Non-GAAP financial measures, including: (i) operating revenue, (ii) operating earnings, (iii) operating return on average assets, (iv) operating return on average shareholders’ equity, (v) return on average tangible common equity, (vi) operating return on average tangible common equity, (vii) operating efficiency ratio; (viii) tangible common equity; (ix) average tangible common equity; (x) tangible book value; (xi) operating pre-provision net revenue earnings; (xii) operating noninterest income; (xiii) operating noninterest expense; (xiv) tangible assets; and ratios derived therefrom, in its analysis of the company's performance. Operating revenue includes the earnings from net interest income and operating noninterest income (Non-GAAP). Operating earnings excludes the following from net income: securities gains and losses, merger related and restructuring expenses, and the income tax effect of adjustments. Operating return on average assets is the annualized operating earnings (Non-GAAP) divided by average assets. Operating return on average shareholders’ equity is the annualized operating earnings (Non-GAAP) divided by average equity. Return on average tangible common equity is the annualized net income divided by average tangible common equity (Non-GAAP). Operating return on average tangible common equity is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP). The operating efficiency ratio includes an adjustment for taxable equivalent yields and excludes securities gains and losses and merger related and restructuring expenses from the efficiency ratio. Tangible common equity and average tangible common equity exclude goodwill and other intangible assets from shareholders’ equity and average shareholders’ equity. Tangible book value excludes goodwill and other intangible assets less shareholders’ equity divided by common shares outstanding. Operating pre-provision, net-revenue earnings is net interest income plus operating noninterest income (Non-GAAP) less operating noninterest expense (Non-GAAP). Operating noninterest income excludes the following from noninterest income: securities gains and losses. Operating noninterest expense excludes the following from noninterest expense: prior year adjustments to salaries, merger related and restructuring expenses and certain franchise tax true-up expenses. Tangible assets excludes goodwill and other intangibles from total assets. Management believes that Non-GAAP financial measures provide additional useful information that allows investors to evaluate the ongoing performance of the company and provide meaningful comparisons to its peers. Management believes these non-GAAP financial measures also enhance investors' ability to compare period-to-period financial results and allow investors and company management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider SmartFinancial's performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.

$0.68 $0.52 $0.12 $0.69 $0.52 $0.43 3Q22 2Q23 3Q23 GAAP EPS Diluted Operating EPS $24.56 $26.16 $26.28 $18.02 $19.78 $19.94 3Q22 2Q23 3Q23 BV Per Share TBV Per Share 0.95% 0.75% 0.17% 0.96% 0.75% 0.60% 3Q22 2Q23 3Q23 GAAP ROAA Operating ROAA 14.4% 10.6% 2.4% 14.4% 10.6% 8.5% 3Q22 2Q23 3Q23 GAAP ROATCE Operating ROATCE AOCI Impact 3 Unless otherwise indicated, financial data as of or for the three months ended 9/30/23 1) Non-GAAP financial measure - for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix 2) QoQ: Quarter-over-Quarter 3) “Loans” for purposes of this presentation includes all SmartFinancial loans and leases 4) AOCI: Accumulated Other Comprehensive Income QUARTERLY HIGHLIGHTS: THIRD QUARTER 2023 3.1% QoQ2 Annualized Tang. Book Value Per Share Growth (Excluding AOCI)1,4 $0.43 Diluted Operating EPS1 0.60% Operating Return on Average Assets1 8.5% Operating Return Average Tang. Common Equity1 74% Operating Efficiency Ratio1 4.5% QoQ Annualized Deposit Growth 5.0% QoQ Annualized Organic Loan3 Growth 80% Loan / Deposit Ratio 0.12% Non-Performing Assets / Assets $160 Million Securities Repositioned Diluted Earnings Per Share Book Value Per Share Return on Average Assets Return on Average Tangible Common Equity 1 1 1 1 1,4 $21.95 $19.94 $21.84 $19.78 $18.02 $20.43

4 SMARTFINANCIAL: EXPANDING SOUTHEAST FRANCHISE $4.8 Billion in Total Assets $3.4 Billion in Total Loans We are building a culture where Associates thrive and are empowered to be leaders. The core values that we have established as a company help us operate in unison and have become a critical part of our culture. Our Associates are key to SmartBank’s success. $4.2 Billion in Total Deposits 42 Total Branches Nashville Knoxville Huntsville Tuscaloosa Mobile Pensacola Birmingham Auburn Tallahassee Dothan Montgomery SmartBank Branch Offices Chattanooga Balance sheet and branch count represent 6/30/23 balances 1) Knox News Sentinel Top Workplaces survey Panama City 1

$2.0 $2.1 $2.4 $2.3 $2 $2 $2 $2 $2 $2 $2 12/31/20 12/31/21 12/31/22 9/30/23 SMBK Loans $2.5 $3.5 $3.4 $3.4 $- $1 $1 $2 $2 $3 $3 $4 $4 $5 12/31/20 12/31/21 12/31/22 9/30/23 SMBK Deposits $0.4 $0.6 $0.9 $1.0 $- $0 $0 $1 $1 $1 $1 12/31/20 12/31/21 12/31/22 9/30/23 SMBK Loans $0.3 $0.5 $0.7 $0.9 $- $0 $0 $0 $0 $1 $1 $1 $1 $1 $1 12/31/20 12/31/21 12/31/22 9/30/23 SMBK Deposits SmartBank Branch Offices Expanding Market Area Legacy Market Area Urban area Density MARKET AREA: TARGETING INDUSTRY RICH GROWTH MARKETS 5 ► Total Population: 2.8 Million ► Total Deposits: $70 Billion ► Median Income: $64 Thousand Legacy Markets 1) Legacy Markets include Chattanooga, TN, Clarke, AL, Cleveland, TN, Crossville, TN, Cookeville, TN, Fentress, TN, Huntsville, AL, Knoxville, TN, Sevierville, TN, Tullahoma, TN and Tuscaloosa, AL MSAs 2) Expanding Markets include Auburn, AL, Birmingham, AL, Dothan, AL, Fairhope, AL, Fort Walton/Destin, FL, Montgomery, AL, Mobile, AL, Nashville, TN, Panama City, FL, Pensacola, FL and Tallahassee, FL Source: S&P Market Intelligence; https://www.forbes.com/best-places-for-business Note: Expanding and Legacy market statistics based on the weighted average of the MSAs included in each area based on population; Legacy market area includes settlement and corporate balances Expanding Markets ► Total Population: 6.0 Million ► Total Deposits: $207 Billion ► Median Income: $69 Thousand Legacy Markets1 : Strong Relationships / Deep Market Penetration Expanding Markets2 : Building Talent / Growing Brand Awareness Forbes Top 200 Best Places for Business and Careers Knoxville: #86 Huntsville: #93 Chattanooga: #116 Mobile: #184 Forbes Top 200 Best Places for Business and Careers Nashville: #15 Tallahassee: #103 Pensacola: #105 Birmingham: #165 Montgomery: #191 CAGR: 6% $ in Billions, unless otherwise indicated CAGR: 11% CAGR: 41% CAGR: 48%

$1,775 $1,897 $2,382 $2,693 $3,254 $3,282 $3,338 $3,379 5.20% 5.39% 5.52% 3. 00% 4. 00% 5. 00% 6. 00% 7. 00% 8. 00% 9. 00% 10. 00% $- $500 $1, 000 $1, 500 $2, 000 $2, 500 $3, 000 $3, 500 $4, 000 2018Y 2019Y 2020Y 2021Y 2022Y 1Q23 2Q23 3Q23 23% 24% 23% 23% 23% 27% 27% 27% 26% 26% 16% 17% 17% 18% 18% 13% 12% 12% 12% 11% 18% 18% 18% 19% 19% $3,099 $3,254 $3,282 $3,338 $3,379 3Q22 4Q22 1Q23 2Q23 3Q23 CRE, OO CRE, NOO C&I C&D Consumer RE Leases & Other 6 LOAN PORTFOLIO: SOLID MARKETS PROVIDING OPPORTUNITY Total Loans CAGR of 15% Since 2018 $ in Millions, unless otherwise indicated Average Loan Yield (excluding accretion & fees) Loan Composition History of Strong Organic Growth

1-4 Family (NOO) 23% Resi/Comm Land Dev. 11% Resi/Comm Land 15% Multifamily 8% CRE (OO) 15% CRE (NOO) 16% Multifamily 18% Hotel & Hospitality 34% Retail Space 14% Office Space 13% Misc. 10% 7 LOAN CONCENTRATION: WELL BALANCED EXPOSURE Non-Owner Occupied CRE Exposure By Segment Highly Diversified with Seasoned Client Base Construction & Development Exposure By Type1 Closely Monitored with No Concentration Concerns 1) 1-4 Family (OO) includes owner-occupied primary and secondary residence construction loans; 1-4 Family (NOO) includes speculative and investment property residential construction loans; Resi/Comm Land Dev. includes primary, secondary, investment and commercial land development loans; Resi/Comm Land includes residential and commercial improved and unimproved land loans; Multifamily includes 5 or more residential property loans; CRE (OO) includes construction loans for owner-occupied commercial real estate including hotel & hospitality, retail, office, industrial & warehouse, self storage and other commercial real estate; CRE (NOO) includes construction loans for non owner-occupied commercial real estate including hotel & hospitality, retail, office, industrial & warehouse, self storage and other commercial real estate 2) Outstanding principal balance shown $901 Million2 - 26% of Total Loans $374 Million2 - 11% of Total Loans Office Space Portfolio Loan Average: $1.3 Million / 1.75x DCR / 56% LTV

$4,605 $4,808 $5,021 $5,712 $5,881 0.10% 0.10% 0.11% 0.12% 0.12% - 0.10% 0.10% 0.30% 0.50% 0.70% 0.90% 1.10% 1.30% 1.50% $- $2, 000 $4, 000 $6, 000 $8, 000 3Q22 4Q22 1Q23 2Q23 3Q23 Nonperforming Loans OREO & Other Repos Nonperforming Assets / Total Assets 301% 299% 287% 285% 285% 98% 94% 88% 88% 84% 0% 50% 100% 150% 200% 250% 150% 170% 190% 210% 230% 250% 270% 290% 310% 330% 350% 3Q22 4Q22 1Q23 2Q23 3Q23 CRE Loans / Capital C&D Loans / Capital $6,398 $6,744 $8,343 $8,438 $9,094 0.21% 0.21% 0.25% 0.25% 0.27% - 0.10% 0.10% 0.30% 0.50% 0.70% 0.90% 1.10% 1.30% 1.50% 1.70% $- $2, 000 $4, 000 $6, 000 $8, 000 $10, 000 $12, 000 3Q22 4Q22 1Q23 2Q23 3Q23 Total Delinquent & Nonaccrual Loans & Leases Total Delinquent & Nonaccrual Loans & Leases / Total Loans & Leases 0.22% 0.22% 0.26% 0.26% 0.31% 0.02% 0.03% 0.03% -0.01% 0.04% - 0.10% 0.00% 0.10% 0.20% 0.30% 0.40% 3Q22 4Q22 1Q23 2Q23 3Q23 Classified Loans and Leases / Total Loans & Leases Net Chargeoffs $22,769 $23,334 $32,279 $32,747 $33,687 0.73% 0.72% 0.98% 0.98% 1.00% 0.00% 0.50% 1.00% 1.50% 2.00% $- $2, 000 $4, 000 $6, 000 $8, 000 $10, 000 $12, 000 $14, 000 $16, 000 $18, 000 $20, 000 $22, 000 $24, 000 $26, 000 $28, 000 $30, 000 $32, 000 $34, 000 $36, 000 $38, 000 $40, 000 $42, 000 $44, 000 3Q22 4Q22 1Q23 2Q23 3Q23 Allowance for Credit Losses (ACL) ACL / Loans HFI 8 Credit Quality Delinquent and Nonaccruals / Total Loans Nonperforming Assets Commercial Real Estate Concentration ASSET QUALITY: STRONG UNDERWRITING PAYS DIVIDENDS $ in Thousands, unless otherwise indicated Allowance Reconciliation

28% 26% 23% 24% 22% 22% 24% 23% 22% 23% 39% 39% 42% 41% 42% 11% 11% 12% 13% 13% $4,280 $4,077 $4,230 $4,200 $4,247 3Q22 4Q22 1Q23 2Q23 3Q23 Noninterest Demand Interest-Bearing Demand Money Market and Savings Time Deposits $1,922 $2,047 $2,805 $4,022 $4,077 $4,230 $4,200 $4,247 1.56% 1.89% 2.20% 0. 00% 1. 00% 2. 00% 3. 00% 4. 00% 5. 00% $- $500 $1, 000 $1, 500 $2, 000 $2, 500 $3, 000 $3, 500 $4, 000 $4, 500 2018Y 2019Y 2020Y 2021Y 2022Y 1Q23 2Q23 3Q23 $3,379 9 DEPOSIT PORTFOLIO: DEFENDING DEPOSIT MARKET SHARE Total Deposits Loans to Deposits Ratio of 80% $ in Millions, unless otherwise indicated Average Total Deposit Cost Deposit Composition Overall Stability Despite Some Mix Shift

$280 $162 $3 $35 $20 $39 $46 $64 $33 $- $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 UST/Agency MBS Fixed ARM CMO Fixed CMO Float Agen CMBS Small Bus Municipal Corporate $8 $118 $58 $14 $10 $8 $10 $10 $10 27% 31% 33% 36% $- $20 $40 $60 $80 $100 $120 $140 $160 $180 $200 0% 10% 20% 30% 40% 50% 60% Q4 '23 Q2 '24 Q4 '24 Q2 '25 Q4 '25 Quarterly Principal Cumulative Principal Returned as % of Total 10 SECURITIES DETAIL: ACCELERATION OF PRINCIPAL RETURN IN Q3 $ in Millions, unless otherwise indicated Portfolio Summary Principal Cashflow Schedule ~$184 Million Maturing by Q2 ‘24 Portfolio Mix by Par Value Risk Adverse Portfolio Designed for Liquidity $709 Million Book Value 2.68% Book Yield ($69) Million Unrealized Loss • ($43) Million in Available-for-Sale Securities (AFS) • ($26) Million in Held-to-Maturity (HTM) 4.9 Year Average Life 3.3 Year Effective Duration 61% / 39% (AFS / HTM)

FYE 2026 & ($ in millions) 4Q23 1Q24 2Q24 3Q24 4Q24 2025 Beyond Fixed Rate Loans $ 30 $ 29 $ 20 $ 30 $ 26 $ 179 $ 1,667 Weighted Average Yield 5.39% 5.66% 5.48% 5.33% 6.27% 4.46% 4.78% Adjustable Rate Loans $ 18 $ 25 $ 39 $ 21 $ 16 $ 58 $ 453 Weighted Average Yield 5.93% 6.17% 5.14% 6.52% 4.85% 4.93% 4.64% Principal Cashflow $ 8 $ 118 $ 58 $ 14 $ 10 $ 39 $ 435 Yield Rolloff 3.13% 1.84% 1.95% 3.77% 4.30% 3.61% 2.87% Next Five Quarters Investment Cashflow Schedule: Loan Repricing Schedule: 11 REPRICING SCHEDULE: YIELD ENHANCEMENT ON HORIZON $135 Million in Fixed Rate Loans Yielding 5.62% Maturing by 2024 Year End $119 Million in Adjustable Rate Loans Yielding 5.68% Maturing or Repricing by 2024 Year End $769 Million in Variable Floating Rate Loans Yielding 7.89% Repricing Monthly $208 Million in Principal Cash Flow Yielding 2.16% Returning by 2024 Year End

106% 96% Peer Average SMBK 89% 80% Peer Average SMBK Total Amount Net Available Used Availability Current On-Balance Sheet: Cash & Cash Equiv. $400 $0 $400 Unpledged Securities 337 0 337 Available Sources of Liquidity: Fed Funds 98 0 98 FHLB 550 104 446 FRB2 334 0 334 HC LoC 35 8 27 Total Liquidity $1,755 $112 $1,643 12 LIQUIDITY OVERVIEW: PRUDENTLY MANAGING LIQUIDITY 1) Peer average based on most recently reported period results for each peer; peers include major exchange traded banks in the Southeast with assets between $2.0 billion and $8.0 billion 2) FRB discount window and Bank Term Funding Program borrowing capacity shown as of September 30, 2023 Source: S&P Global Loan + Securities / Deposit Ratio (Most Recent Quarter Period End) Loan / Deposit Ratio (Most Recent Quarter Period End) Other Liquidity Sources Ample Access to a Variety of Funding Robust Liquidity on Hand $1.6 Billion in Untapped Liquidity Sources $737 Million in On-Balance Sheet Liquidity 1.5x Liquidity to Uninsured Deposit Ratio 1 1 $ in Millions, unless otherwise indicated

$36,708 $37,612 $35,982 $31,575 $31,006 $6,250 $6,981 $6,925 $7,130 $7,492 $42,958 $44,593 $42,907 $38,705 $38,498 3.29% 3.51% 3.31% 2.93% 2.81% $18, 000 $23, 000 $28, 000 $33, 000 $38, 000 $43, 000 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 3Q22 4Q22 1Q23 2Q23 3Q23 Net Interest Income Operating Noninterest Income Net Interest Margin (FTE) $543 $266 $307 $239 $400 $807 $770 $845 $824 $667 16.8% 16.6% 17.7% 17.4% 13.9% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% $- $200 $400 $600 $800 $1, 000 $1, 200 3Q22 4Q22 1Q23 2Q23 3Q23 Cash and Cash Equiv. Securities (AFS/HTM) Securities (AFS/HTM) / Total Assets 13 LIQUIDITY MANAGEMENT: NAVIGATING MARGIN PRESSURE Cash and Securities Margin / Operating Revenue2 1) Based on the weighted average of the AFS/HTM securities portfolio. Yields related to investment securities exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0% 2) Non-GAAP financial measure - for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix 2 $ in Millions, unless otherwise indicated $ in Thousands, unless otherwise indicated 3Q22 4Q22 1Q23 2Q23 3Q23 Cash Yield 2.34% 3.81% 4.77% 4.02% 5.26% Sec. Yield (AFS/HTM)1 1.87% 2.15% 2.11% 2.30% 2.35% Loans (less Accr. & Fees) 4.48% 4.81% 5.20% 5.39% 5.52% Loan Accr. & Fees 0.11% 0.24% 0.37% 0.12% 0.10% Loan Yield (incl. Accr. & Fees) 4.59% 5.05% 5.57% 5.51% 5.61% IE Asset Yield 3.79% 4.41% 4.88% 4.82% 4.99% NIM (FTE) 3.29% 3.51% 3.31% 2.93% 2.81%

$1,981 59% $613 18% $786 23% Fixed Rate LT Variable ST Variable $7,414 , 5.5% $4,307 , 3.2% $(3,771), -2.8% Interest Income % Change Shock -200bps Shock -100bps Shock +100bps $3,605 , 2.7% $1,603 , 1.2% $(2,733), -2.0% Interest Income % Change Ramp -200bps Ramp -100bps Ramp +100bps 14 INTEREST RATE SENSITIVITY Fixed vs. Variable Rate Loans Static Shock / Rate Ramp Analysis1 1) Based on 12-month static rate shock and ramp analysis as of 9/30/23. These estimates of changes in SmartFinancial’s net interest income require us to make certain assumptions including loan and mortgage-related investment prepayment speeds, reinvestment rate, deposit maturities and decay rates. These assumptions are inherently uncertain and, as a result, we cannot precisely predict the impact of changes in interest rates on net interest income. Although our analysis provides an indication of our interest rate risk exposure at a particular point in time, such estimates are not intended to, and do not, provide a precise forecast of the effect of changes in market interest rates and will differ from actual results $2.0 Billion Fixed Rate Loans $1.4 Billion Variable Rate Loans • $786 Million Short-Term Variable Rate (Resetting within 1 - 3 Months) • $613 Million Long-Term Variable Rate (Resets > 3 Months $ in Millions, unless otherwise indicated $ in Thousands, unless otherwise indicated

$6,250 $6,981 $6,925 $7,130 $7,492 3Q22 4Q22 1Q23 2Q23 3Q23 Service Charges on Deposit Accounts Mortgage Banking Income Investment Services Income Insurance Commissions Interchange Fees Other Noninterest Income 15 NONINTEREST REVENUE DETAILS: GROWING FEE INCOME Operating Noninterest Income1 Focused on Recurring Fee Income 1) Non-GAAP financial measure - for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix Differentiated Revenue Streams Building a Family of Diversified Revenue Generators $ in Thousands, unless otherwise indicated

63% 61% 64% 71% 74% 3Q22 4Q22 1Q23 2Q23 3Q23 Operating Efficiency Ratio $27,143 $27,461 $27,529 $27,410 $28,406 3Q22 4Q22 1Q23 2Q23 3Q23 Salaries & Benefits Occupancy & Equipment Data Processing & Technology Professional Services Amortization of Intangibles Other Noninterest Expense 16 1) Non-GAAP financial measure - for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix OPERATING EXPENSE: FOCUS ON EXPENSE CONTAINMENT Operating Efficiency Ratio1 Operating Noninterest Expense1 1 $ in Thousands, unless otherwise indicated

$14.64 $16.82 $17.92 $19.26 $19.09 $19.94 $14.84 $16.80 $17.77 $19.17 $21.18 $21.95 $8. 00 $10. 00 $12. 00 $14. 00 $16. 00 $18. 00 $20. 00 $22. 00 $24. 00 2018Y 2019Y 2020Y 2021Y 2022Y 3Q23 TBV Per Share Adj. TBV Per Share (Ex. AOCI) 6.5% 7.1% 7.2% 7.3% 7.2% 3Q22 4Q22 1Q23 2Q23 3Q23 9.7% 9.7% 10.0% 10.1% 10.0% 3Q22 4Q22 1Q23 2Q23 3Q23 7.4% 8.0% 7.9% 8.2% 8.1% 3Q22 4Q22 1Q23 2Q23 3Q23 11.4% 11.4% 11.8% 11.9% 11.8% 3Q22 4Q22 1Q23 2Q23 3Q23 CAPITAL: WELL CAPITALIZED – BUILDING BOOK VALUE 1) Non-GAAP financial measure - for a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix 17 Note: Capital ratio data as of the most recent period ended 9/30/23 TCE / TA1 CET1 Ratio Total Capital Ratio Leverage Ratio Basel III Regulatory Capital Minimum To Be Considered “Well Capitalized” Building Shareholder Value Tangible Book Value Per Share (TBVPS)1 $7.11 TBVPS1 Created 2018 – 2023 (Excluding Accumulated Other Comprehensive Income) $0.08 2023 Per Share Quarterly Dividend 5% Well Capitalized 10% Well Capitalized 6.5% Well Capitalized 1 1

WHY SMARTBANK: INVESTMENT HIGHLIGHTS 18 Franchise Scarcity Value – Building Southeast Density Engaged Management Team Stable Markets Experiencing Population Expansion Valuable Deposit Base Growing Business Lines with Revenue Diversification Solid Credit Quality and Underwriting History of Defending Book Value and Delivering Shareholder Value $

APPENDIX 19

20 Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix; percentage change may differ due to rounding INCOME STATEMENT: DETAILED THIRD QUARTER RESULTS 2Q23 3Q22 ($ in thousands, except per share data) 3Q23 2Q23 3Q22 % Chg. % Chg. Net Interest Income $ 31,006 $ 31,575 $ 36,708 (2%) (16%) Provision for Loan & Lease losses 795 113 974 Noninterest Income 691 7,130 6,250 (90%) (89%) Noninterest Expense 28,516 27,410 27,230 4% 5% Income Tax Expense 319 2,346 3,211 Net Income (GAAP) $ 2,067 $ 8,836 $ 11,543 (77%) (82%) Non-GAAP Reconciliations Noninterest Income 6,801 - - Noninterest Expense 110 - 87 Income Tax Effect Of Adjustments (1,785) - (22) Operating Earnings (Non-GAAP) $ 7,193 $ 8,836 $ 11,608 (19%) (38%) Operating PPNR Earnings (Non-GAAP) $ 10,092 $ 11,295 $ 15,815 (11%) (36%) 2Q23 3Q22 Non-GAAP Performance Metrics 3Q23 2Q23 3Q22 % Chg. % Chg. Diluted Operating Earnings Per Share $ 0.43 $ 0.52 $ 0.69 (19%) (38%) Tangible Book Value Per Common Share $ 19.94 $ 19.78 $ 18.02 1% 11% Operating Return on Average Assets 0.60% 0.75% 0.96% Operating PPNR Return on Average Assets 0.84% 0.96% 1.30% Operating Return on Average Tang. Common Equity 8.5% 10.6% 14.4% Operating Efficiency Ratio 73.6% 70.6% 62.9% 3Q23 vs. 3Q23 vs.

NON-GAAP RECONCILIATION 21 1. Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets. 2. Operating PPNR return on average assets (Non-GAAP) is the annualized operating PPNR earnings (Non-GAAP) divided by average assets. 3. Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP). 4. Operating return on average shareholders’ equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average shareholder equity. 5. Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP). $ in Thousands, unless otherwise indicated 3Q23 2Q23 1Q23 4Q22 3Q22 Operating Earnings Net Income (GAAP) $ 2,067 $ 8,836 $ 11,500 $ 13,004 $ 11,543 Noninterest Income: Securities (Gains) Losses 6,801 - - (144) - Noninterest Expenses: Merger Related And Restructuring Expenses 110 - - (45) 87 Income Taxes: Income Tax Effect Of Adjustments (1,785) - - 49 (22) Operating Earnings (Non-GAAP) $ 7,193 $ 8,836 $ 11,500 $ 12,864 $ 11,608 Operating Earnings Per Common Share (Non-GAAP): Basic $ 0.43 $ 0.53 $ 0.69 $ 0.77 $ 0.69 Diluted 0.43 0.52 0.68 0.76 0.69 Operating Noninterest Income Noninterest Income (GAAP) $ 691 $ 7,130 $ 6,925 $ 7,125 $ 6,250 Securities (Gains) Losses 6,801 - - (144) - Operating Noninterest Income (Non-GAAP) $ 7,492 $ 7,130 $ 6,925 $ 6,981 $ 6,250 Operating Noninterest Expense Noninterest Expense (GAAP) $ 28,516 $ 27,410 $ 27,529 $ 27,416 $ 27,230 Merger Related And Restructuring Expenses (110) - - 45 (87) Operating Noninterest Expense (Non-GAAP) $ 28,406 $ 27,410 $ 27,529 $ 27,461 $ 27,143 Operating Revenue Net Interest Income (GAAP) $ 31,006 $ 31,575 $ 35,982 $ 37,612 $ 36,708 Operating Noninterest Income (Non-GAAP) 7,492 7,130 6,925 6,981 6,250 Operating Revenue (Non-GAAP) 38,498 38,705 42,907 44,593 42,958 Operating Pre-Provison, Net Revenue ("PPNR") Earnings Operating Revenue (Non-GAAP) $ 38,498 $ 38,705 $ 42,907 $ 44,593 $ 42,958 Operating Noninterest Expense (Non-GAAP) (28,406) (27,410) (27,529) (27,461) (27,143) Operating PPNR Earnings (Non-GAAP) $ 10,092 $ 11,295 $ 15,378 $ 17,132 $ 15,815 Non-GAAP Return Ratios Operating Return On Average Assets (Non-GAAP)(1) 0.60% 0.75% 0.97% 1.10% 0.96% Operating PPNR Return On Average Assets (Non-GAAP)(2) 0.84% 0.96% 1.30% 1.46% 1.30% Return On Average Tangible Common Equity (Non-GAAP)(3) 2.43% 10.57% 14.45% 16.65% 14.36% Operating Return On Average Shareholders' Equity (Non-GAAP)(4) 6.41% 7.98% 10.79% 12.15% 10.83% Operating Return On Average Tangible Common Equity (Non-GAAP)(5) 8.46% 10.57% 14.45% 16.47% 14.44% Operating Efficiency Ratio Efficiency Ratio (GAAP) 89.96% 70.82% 64.16% 61.28% 63.39% Adjustment For Taxable Equivalent Yields (0.27%) (0.18%) (0.14%) (0.22%) (0.25%) Adjustment For Securities (Gains) Losses 15.89% - - (0.20%) - Adjustment For Merger Expenses (31.98%) - - 0.50% (0.21%) Operating Efficiency Ratio (Non-GAAP) 73.60% 70.64% 64.02% 61.36% 62.93%

3Q23 2Q23 1Q23 4Q22 3Q22 Tangible Common Equity (Excluding AOCI): Shareholders' Equity (GAAP) $ 446,652 $ 444,847 $ 443,399 $ 432,452 $ 414,711 Less Goodwill And Other Intangible Assets 107,792 108,439 109,114 109,772 110,460 Tangible Common Equity (Non-GAAP) $ 338,860 $ 336,408 $ 334,285 $ 322,680 $ 304,251 Less Adjustment Due to AOCI (Loss) (34,156) (35,017) (28,620) (35,324) (40,807) Tangible Common Equity (Excl. AOCI) (Non-GAAP) $ 373,016 $ 371,425 $ 362,905 $ 358,004 $ 345,058 Tangible Book Value Per Common Share (Excluding AOCI): Book Value Per Common Share (GAAP) $ 26.28 $ 26.16 $ 26.08 $ 25.59 $ 24.56 Adjustment Due To Goodwill And Other Intangible Assets (6.34) (6.38) (6.42) (6.50) (6.54) Tangible Book Value Per Common Share (Non-GAAP)(1) $ 19.94 $ 19.78 $ 19.66 $ 19.09 $ 18.02 Less Adjustment Due to AOCI (Loss) (2.01) (2.06) (1.68) (2.09) (2.42) Tangible Book Value Per Common Share (Excl. AOCI) (Non-GAAP)(1)(2) $ 21.95 $ 21.84 $ 21.34 $ 21.18 $ 20.43 NON-GAAP RECONCILIATION 22 1. Tangible book value per share (Non-GAAP) is computed by dividing total stockholder’s equity, less goodwill and other intangible assets, by common shares outstanding. 2. Totals may not add due to rounding $ in Thousands, unless otherwise indicated 3Q23 2Q23 1Q23 4Q22 3Q22 Tangible Common Equity: Shareholders' Equity (GAAP) $ 446,652 $ 444,847 $ 443,399 $ 432,452 $ 414,711 Less Goodwill And Other Intangible Assets 107,792 108,439 109,114 109,772 110,460 Tangible Common Equity (Non-GAAP) $ 338,860 $ 336,408 $ 334,285 $ 322,680 $ 304,251 Average Tangible Common Equity: Average Shareholders' Equity (GAAP) $ 445,432 $ 444,283 $ 432,382 $ 420,037 $ 425,365 Less Goodwill And Other Intangible Assets 108,194 108,851 109,537 110,206 106,483 Average Tangible Common Equity (Non-GAAP) $ 337,238 $ 335,432 $ 322,845 $ 309,831 $ 318,882 Tangible Book Value Per Common Share: Book Value Per Common Share (GAAP) $ 26.28 $ 26.16 $ 26.08 $ 25.59 $ 24.56 Adjustment Due To Goodwill And Other Intangible Assets (6.34) (6.38) (6.42) (6.50) (6.54) Tangible Book Value Per Common Share (Non-GAAP)(1) $ 19.94 $ 19.78 $ 19.66 $ 19.09 $ 18.02 Tangible Common Equity To Tangible Assets: Total Assets (GAAP) $ 4,797,171 $ 4,745,800 $ 4,769,805 $ 4,637,498 $ 4,796,911 Less Goodwill And Other Intangibles 107,792 108,439 109,114 109,772 110,460 Tangible Assets (Non-GAAP) $ 4,689,379 $ 4,637,361 $ 4,660,691 $ 4,527,726 $ 4,686,451 Tangible Common Equity To Tangible Assets (Non-GAAP): 7.23% 7.25% 7.17% 7.13% 6.49%

CONTACT 23 Billy Carroll President & CEO 865.868.0613 Billy.Carroll@smartbank.com Miller Welborn Chairman 423.385.3067 Miller.Welborn@smartbank.com 5401 Kingston Pike, Suite 600 Knoxville, TN 37919 Ron Gorczynski Chief Financial Officer 865.437.5724 Ron.Gorczynski@smartbank.com

Document and Entity Information	Oct. 23, 2023
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Oct. 23, 2023
Entity File Number	001-37661
Entity Registrant Name	SMARTFINANCIAL, INC.
Entity Incorporation, State or Country Code	TN
Entity Tax Identification Number	62-1173944
Entity Address, Address Line One	5401 Kingston Pike
Entity Address, Adress Line Two	Suite 600
Entity Address, City or Town	Knoxville
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37919
City Area Code	865
Local Phone Number	437-5700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $1.00
Trading Symbol	SMBK
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001038773
Amendment Flag	false

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