KNOXVILLE, Tenn., July 29,
2016 /PRNewswire/ -- SmartFinancial, Inc. ("SmartFinancial";
NASDAQ: SMBK), announced today net income of $1.2 million in its second quarter, compared to
$0.1 million a year ago. In the third
quarter 2015, SmartFinancial successfully completed the merger of
two holding companies, legacy SmartFinancial, Inc. and Cornerstone
Bancshares, Inc., and carried forward the name "SmartFinancial,
Inc." In the first quarter of 2016 SmartFinancial completed the
merger of Cornerstone Community Bank into SmartBank. This
quarter completes the third full quarter's results from the
combined company and the first full quarter's results of the merged
bank.
Billy Carroll, President &
CEO stated: "We are pleased with the results of our first full
quarter as a single merged bank. Our organic loan growth increased
over 17 percent annualized this quarter and at the same time we
were able to increase yields of the loan portfolio. Core
deposit growth kept a good pace, and as a result we were able to
further reduce external borrowings. We are starting to
realize merger efficiencies as salary and employee benefit costs
decreased slightly quarter to quarter, and we expect further
efficiencies in the coming months. We'll remain focused on
fundamentals and strengthening our foundation to support organic
growth and increased earnings."
SmartFinancial's Chairman Miller
Welborn concluded: "It is exciting to see the synergies of
the merged bank materialize with accelerated loan growth and core
deposit growth, which will add long term value to the
franchise. We are executing on our goals of being a best
place to work, a great place to bank and especially rewarding for
our shareholders."
Performance Highlights
- Net income available to common shareholders totaled
$0.9 million or $0.16 per share during the second quarter of
2016.
- Annualized return on average assets equaled 0.48 percent in
the second quarter of 2016, compared to 0.54 percent in the
previous quarter.
- Annualized net loan growth was approximately 17.5 percent in
the second quarter of 2016, with the growth primarily in commercial
and residential real estate loans.
- Asset quality was outstanding with just 0.69 percent of
nonperforming assets to total assets.
- Core funding increased as transaction account balances grew
$18.5 million since the end of 2015,
while FHLB and other borrowings were reduced by $24.4 million.
- Mortgage business continued to increase scale with
non-interest income increasing over 45 percent quarter to quarter,
while loans held for sale increased from $1.6 million at the end of the first quarter to
$3.3 million at the end of the second
quarter.
Second Quarter 2016 compared to First Quarter 2016
Net operating earnings available to common shareholders, which
excludes purchased loans accounting adjustments, securities gains,
merger and conversion costs, and foreclosed assets gains and
losses, totaled $634 thousand in the
second quarter of 2016 compared to $780
thousand in the previous quarter. Net income available to
common shareholders totaled $0.9
million in the second quarter of 2016, or $0.15 per diluted share, compared to $1.1 million, or $0.19 per diluted share, in the first quarter of
2016.
Net interest income to average assets of 3.87 percent for the
quarter increased from 3.67 percent in the first quarter of 2016.
Net interest income totaled $9.6
million in the second quarter of 2016 compared to
$9.1 million in the first quarter of
2016. Net interest income was positively impacted during the
quarter by a mix of higher loan fees, higher yields on newly
originated loans, and an increase in purchased loan accounting
adjustments. Net interest margin, taxable equivalent, increased
from 3.96 percent in the first quarter of 2016 to 4.16 percent in
the second quarter of 2016 as a result of higher yields on newly
originated loans and increases in purchased loan accounting
adjustments.
Provision for loan losses was $218
thousand in the second quarter of 2016, compared to
$138 thousand in the second quarter
of 2016 . The increase in provision for loan losses was primarily
due to the growth of the loan portfolio during the quarter.
Annualized net charge-offs were 0.01 percent of average loans in
the second quarter of 2016 compared to (0.02) percent of average
loans in the first quarter of 2016.
The ALLL was $4.7 million, or 0.61
percent of total loans as of June 30, 2016, compared to
$4.5 million, or 0.61 percent of
total loans, as of March 31, 2016. Adjusted ALLL, which
includes the ALLL as well as net acquisition accounting fair value
adjustments for acquired loans, was 2.00 percent of total loans as
of June 30, 2016, which was down from 2.11 percent as of
March 31, 2016. The reduction in adjusted ALLL resulted from
continued accretion of fair value discounts.
Nonperforming loans as a percentage of total loans was 0.29
percent as of June 30, 2016, which was down from 0.43 percent
in the prior quarter. Total nonperforming assets (which include
nonaccrual loans, loans past due 90 days or more and still
accruing, and foreclosed assets) as a percentage of total assets
was 0.69 percent as of June 30, 2016, compared to 0.82 percent
as of March 31, 2016.
Non-interest income to average assets of 0.39 percent for the
quarter was down from 0.43 percent in the first quarter of 2016.
Non-interest income totaled $1.0
million in the second quarter of 2016, compared to
$1.1 million in the first quarter of
2016. The reduction in non-interest income was due to lower
service charges and fees, an absence of gains on sale of
foreclosed assets, and and lower sales of SBA loans generated for
sale. The reduction was slightly offset by a gain on
securities of $98 thousand for the
quarter and higher mortgage loan income.
Non-interest expense to average assets of 3.41 percent for the
quarter was up from 3.19 percent in the first quarter of 2016.
Non-interest expense totaled $8.5
million in the second quarter of 2016, which was up
$520 thousand from the first quarter
of 2016 primarily due to merger related data processing costs,
higher repair costs at one branch, and increases in legal
expenses. Occupancy expense of $1.1
million was up $119 thousand
from the previous quarter due to the final costs of a repair
project at one branch. Data processing expenses increased
$241 thousand compared to the first
quarter primarily due to the final merger related data processing
costs. Marketing expenses of $184
thousand were up from $173
thousand in the first quarter primarily due to rebranding
initiatives related to merger integration.
Income tax expense was $691
thousand in the second quarter of 2016 compared to
$764 thousand in the first quarter of
2016. The company's effective tax rate was 36.7 percent in the
second quarter of 2016 compared to 36.2 percent in the first
quarter of 2016.
Second Quarter 2016 compared to Second Quarter 2015
Net operating earnings available to common shareholders, which
excludes purchased loans accounting adjustments, securities gains,
merger and conversion costs, and foreclosed assets gains and
losses, totaled $634 thousand in the
second quarter of 2016 compared to $192
thousand in the second quarter of 2015. Net income available
to common shareholders totaled $0.9
million in the second quarter of 2016, or $0.15 per diluted share, compared to $35 thousand, or $0.01 per diluted share, in the second quarter of
2015. The company's operations and financial performance were
significantly impacted in nearly every respect by the merger of
SmartFinancial, Inc. and Cornerstone Bancshares, Inc. on
August 31, 2015. Therefore, financial
results in 2Q 2016 are not comparable to results reported for 2Q
2015.
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 twelve branches, two loan production offices,
and one mortgage production office located in East Tennessee, the Florida Panhandle, and North Georgia. Recruiting the best people,
delivering exceptional client service, strategic branching and a
conservative and disciplined approach to lending have all given
rise to SmartBank's success. More information about SmartFinancial
can be found on its website: www.smartbank.com.
This release contains forward-looking statements.
SmartFinancial cautions you that a number of important factors
could cause actual results to differ materially from those
currently anticipated in any forward-looking statement. Such
factors include, but are not limited to: changes in management's
plans for the future, prevailing economic and political conditions,
particularly in our market area; credit risk associated with our
lending activities; changes in interest rates, loan demand, real
estate values and competition; changes in accounting principles,
policies, and guidelines; changes in any applicable law, rule,
regulation or practice with respect to tax or legal issues; and
other economic, competitive, governmental, regulatory and
technological factors affecting our operations, pricing, products
and services and other factors that may be described in our Annual
Reports on Form 10-K and Quarterly Reports on Form 10-Q as filed
with the Securities and Exchange Commission from time to time.
The forward-looking statements are made as of the date of this
release, and, except as may be required by applicable law or
regulation, SmartFinancial assumes no obligation to update the
forward-looking statements or to update the reasons why actual
results could differ from those projected in the forward-looking
statements.
Statements included in this press release 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
non-GAAP financial measures, including: (i) net operating earnings
available to common shareholders; (ii) operating efficiency ratio;
(iii) adjusted allowance for loan losses to loans; and (iv)
tangible common equity, in its analysis of the company's
performance. Net operating earnings available to common
shareholders excludes the following from net income available to
common shareholders: securities gains and losses, merger and
conversion costs, OREO gain and losses, and the income tax effect
of adjustments. The operating efficiency ratio excludes securities
gains and losses, merger and conversion costs, and adjustment for
OREO gains and losses from the efficiency ratio. Adjusted allowance
for loan losses adds net acquisition accounting fair value
discounts to the allowance for loan losses. Tangible common equity
excludes total preferred stock, preferred stock paid in capital,
goodwill, and other intangible assets.
Management believes that non-GAAP financial measures provide
additional useful information that allows readers to evaluate the
ongoing performance of the company and provide meaningful
comparisons to its peers. 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.
SmartFinancial, Inc.
and Subsidiaries
|
Condensed
Consolidated Financial Information (unaudited)
|
(In thousands except
per share data)
|
|
As of and for the
three months ending
|
|
June 30,
2016
|
|
March 31,
2016
|
|
Dec. 31,
2015
|
|
Sept. 30,
2015
|
|
June 30,
2015
|
Selected
Performance Ratios (Annualized)
|
|
|
|
|
|
|
|
|
|
Return on average
assets
|
0.48
|
%
|
|
0.54
|
%
|
|
0.47
|
%
|
|
(0.04)
|
%
|
|
0.05
|
%
|
Net operating return
on average assets
(Non-GAAP)
|
0.26
|
%
|
|
0.40
|
%
|
|
0.24
|
%
|
|
0.10
|
%
|
|
0.17
|
%
|
Return on average
shareholder equity
|
4.64
|
%
|
|
5.29
|
%
|
|
4.75
|
%
|
|
(0.44)
|
%
|
|
0.47
|
%
|
Net operating return
on average shareholder
equity (Non-GAAP)
|
2.47
|
%
|
|
3.89
|
%
|
|
2.47
|
%
|
|
1.05
|
%
|
|
1.58
|
%
|
Net interest income /
average assets
|
3.87
|
%
|
|
3.67
|
%
|
|
3.79
|
%
|
|
3.65
|
%
|
|
3.53
|
%
|
Yield on earning
assets, TE
|
4.61
|
%
|
|
4.40
|
%
|
|
4.54
|
%
|
|
4.45
|
%
|
|
4.27
|
%
|
Cost of
interest-bearing liabilities
|
0.56
|
%
|
|
0.53
|
%
|
|
0.52
|
%
|
|
0.53
|
%
|
|
0.50
|
%
|
Net interest margin,
TE
|
4.16
|
%
|
|
3.96
|
%
|
|
4.10
|
%
|
|
4.00
|
%
|
|
3.85
|
%
|
Non interest income /
average assets
|
0.39
|
%
|
|
0.43
|
%
|
|
0.46
|
%
|
|
0.10
|
%
|
|
0.08
|
%
|
Non interest expense
/ average assets
|
3.41
|
%
|
|
3.19
|
%
|
|
3.20
|
%
|
|
3.69
|
%
|
|
3.36
|
%
|
Efficiency
ratio
|
79.14
|
%
|
|
76.93
|
%
|
|
74.29
|
%
|
|
97.45
|
%
|
|
88.67
|
%
|
Operating efficiency
ratio (Non-GAAP)
|
85.49
|
%
|
|
82.09
|
%
|
|
85.73
|
%
|
|
90.96
|
%
|
|
80.41
|
%
|
Pre-tax pre-provision
income / average
assets
|
0.85
|
%
|
|
0.90
|
%
|
|
1.05
|
%
|
|
0.06
|
%
|
|
0.26
|
%
|
|
|
|
|
|
|
|
|
|
|
Per Common
Share
|
|
|
|
|
|
|
|
|
|
Net income,
basic
|
$
|
0.16
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
(0.03)
|
|
|
$
|
0.01
|
|
Net income,
diluted
|
0.15
|
|
|
0.19
|
|
|
0.19
|
|
|
(0.03)
|
|
|
0.01
|
|
Net operating
earnings, basic (Non-GAAP)
|
0.11
|
|
|
0.13
|
|
|
0.10
|
|
|
0.04
|
|
|
0.06
|
|
Net operating
earnings, diluted (Non-GAAP)
|
0.10
|
|
|
0.13
|
|
|
0.10
|
|
|
0.04
|
|
|
0.06
|
|
Book value
|
15.64
|
|
|
15.47
|
|
|
15.19
|
|
|
15.07
|
|
|
14.88
|
|
Tangible book value
(Non-GAAP)
|
14.48
|
|
|
14.29
|
|
|
13.99
|
|
|
13.84
|
|
|
14.82
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Common shares
outstanding
|
5,824
|
|
|
5,817
|
|
|
5,806
|
|
|
5,735
|
|
|
2,966
|
|
|
|
|
|
|
|
|
|
|
|
Composition Of
Loans
|
|
|
|
|
|
|
|
|
|
Commercial &
financial
|
$
|
87,253
|
|
|
$
|
83,197
|
|
|
$
|
85,526
|
|
|
$
|
81,107
|
|
|
$
|
37,507
|
|
Real estate
construction & Development
|
115,385
|
|
|
113,028
|
|
|
105,132
|
|
|
97,050
|
|
|
52,634
|
|
Real estate
commercial
|
389,368
|
|
|
370,922
|
|
|
369,263
|
|
|
365,607
|
|
|
208,937
|
|
owner
occupied
|
177,052
|
|
|
166,364
|
|
|
161,698
|
|
|
153,496
|
|
|
82,860
|
|
non-owner
occupied
|
212,315
|
|
|
204,558
|
|
|
207,565
|
|
|
212,111
|
|
|
126,077
|
|
Real estate
residential
|
174,013
|
|
|
166,214
|
|
|
161,427
|
|
|
162,090
|
|
|
89,876
|
|
Other
loans
|
7,377
|
|
|
7,578
|
|
|
6,368
|
|
|
4,585
|
|
|
1,770
|
|
Total
loans
|
$
|
773,396
|
|
|
$
|
740,939
|
|
|
$
|
727,716
|
|
|
$
|
710,439
|
|
|
$
|
390,724
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SmartFinancial, Inc.
and Subsidiaries
|
Condensed
Consolidated Financial Information (unaudited)
|
(In thousands except
per share data)
|
|
As of and for the
three months ending
|
|
June 30,
2016
|
|
March 31,
2016
|
|
Dec. 31,
2015
|
|
Sept. 30,
2015
|
|
June 30,
2015
|
Asset Quality Data
and Ratios
|
|
|
|
|
|
|
|
|
|
Nonperforming
loans
|
$
|
2,226
|
|
$
|
3,171
|
|
|
$
|
2,754
|
|
|
$
|
1,715
|
|
|
$
|
4,067
|
|
Foreclosed
assets
|
|
4,936
|
|
5,133
|
|
|
5,358
|
|
|
9,647
|
|
|
3,728
|
|
Total nonperforming
assets
|
$
|
7,162
|
|
$
|
8,304
|
|
|
$
|
8,112
|
|
|
$
|
11,362
|
|
|
$
|
7,795
|
|
Restructured loans
not included in nonperforming loans
|
$
|
3,639
|
|
$
|
3,677
|
|
|
$
|
3,693
|
|
|
$
|
3,731
|
|
|
$
|
1,831
|
|
Net charge-offs to
average loans (annualized)
|
0.01
|
%
|
|
(0.02)
|
%
|
|
0.02
|
%
|
|
0.03
|
%
|
|
0.13
|
%
|
Allowance for loan
losses to loans
|
0.61
|
%
|
|
0.61
|
%
|
|
0.60
|
%
|
|
0.54
|
%
|
|
0.98
|
%
|
Adjusted allowance
for loan losses to loans (Non-GAAP)
|
2.00
|
%
|
|
2.11
|
%
|
|
2.18
|
%
|
|
2.26
|
%
|
|
2.38
|
%
|
Nonperforming loans
to total loans, gross
|
0.29
|
%
|
|
0.43
|
%
|
|
0.38
|
%
|
|
0.24
|
%
|
|
1.04
|
%
|
Nonperforming assets
to total assets
|
0.69
|
%
|
|
0.82
|
%
|
|
0.79
|
%
|
|
1.13
|
%
|
|
1.43
|
%
|
|
|
|
|
|
|
|
|
|
|
Capital
Ratios
|
|
|
|
|
|
|
|
|
|
Tangible equity to
tangible assets
|
9.37
|
%
|
|
9.43
|
%
|
|
9.17
|
%
|
|
9.14
|
%
|
|
10.30
|
%
|
Tangible common
equity to tangible assets
|
8.20
|
%
|
|
8.24
|
%
|
|
7.99
|
%
|
|
7.94
|
%
|
|
8.09
|
%
|
SmartFinancial
Inc.:
|
|
|
|
|
|
|
|
|
|
Tier 1
leverage
|
9.66
|
%
|
|
9.74
|
%
|
|
9.45
|
%
|
|
9.31
|
%
|
|
*
|
|
Common equity Tier
1
|
10.53
|
%
|
|
10.61
|
%
|
|
10.30
|
%
|
|
10.25
|
%
|
|
*
|
|
Tier 1 risk-based
capital
|
12.04
|
%
|
|
12.14
|
%
|
|
11.78
|
%
|
|
11.77
|
%
|
|
*
|
|
Total risk-based
capital
|
12.60
|
%
|
|
12.70
|
%
|
|
12.32
|
%
|
|
12.25
|
%
|
|
*
|
|
|
* The Company was not
required to report quarterly captial ratios prior to
9/30/15
|
SmartFinancial, Inc.
and Subsidiaries
|
Condensed
Consolidated Financial Information (unaudited)
|
(In
thousands)
|
BALANCE
SHEET
|
|
|
Ending
Balances
|
|
|
June 30,
2016
|
|
March 31,
2016
|
|
Dec. 31,
2015
|
|
Sept. 30,
2015
|
|
June 30,
2015
|
Assets
|
|
|
|
|
|
|
|
|
|
|
Cash & cash
equivalents
|
|
$
|
71,737
|
|
|
$
|
68,933
|
|
|
$
|
79,965
|
|
|
$
|
89,936
|
|
|
$
|
43,810
|
|
Securities available
for sale
|
|
142,875
|
|
|
157,560
|
|
|
166,413
|
|
|
152,150
|
|
|
83,747
|
|
Other
investments
|
|
4,451
|
|
|
4,451
|
|
|
4,451
|
|
|
4,451
|
|
|
2,128
|
|
Total investment
securities
|
|
147,326
|
|
|
162,011
|
|
|
170,864
|
|
|
156,601
|
|
|
85,875
|
|
Total
loans
|
|
773,396
|
|
|
740,939
|
|
|
727,716
|
|
|
710,439
|
|
|
390,724
|
|
Allowance for loan
losses
|
|
(4,720)
|
|
|
(4,527)
|
|
|
(4,355)
|
|
|
(3,828)
|
|
|
(3,834)
|
|
Loans net
|
|
768,676
|
|
|
736,412
|
|
|
723,361
|
|
|
706,611
|
|
|
386,890
|
|
Premises and
equipment
|
|
25,844
|
|
|
25,680
|
|
|
25,038
|
|
|
25,266
|
|
|
16,405
|
|
Foreclosed
assets
|
|
4,936
|
|
|
5,133
|
|
|
5,358
|
|
|
9,647
|
|
|
3,728
|
|
Goodwill and other
intangibles
|
|
6,754
|
|
|
6,848
|
|
|
6,941
|
|
|
7,034
|
|
|
177
|
|
Other
assets
|
|
9,221
|
|
|
11,207
|
|
|
12,436
|
|
|
11,962
|
|
|
6,478
|
|
Total assets
|
|
$
|
1,034,494
|
|
|
$
|
1,016,224
|
|
|
$
|
1,023,963
|
|
|
$
|
1,007,057
|
|
|
$
|
543,363
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities
|
|
|
|
|
|
|
|
|
|
|
Non-interest
demand
|
|
$
|
146,189
|
|
|
$
|
132,481
|
|
|
$
|
131,419
|
|
|
$
|
123,551
|
|
|
$
|
69,427
|
|
Interest-bearing
demand
|
|
153,166
|
|
|
161,454
|
|
|
149,424
|
|
|
144,012
|
|
|
114,165
|
|
Money market and
savings
|
|
258,281
|
|
|
241,500
|
|
|
236,901
|
|
|
231,477
|
|
|
131,810
|
|
Time
deposits
|
|
331,438
|
|
|
323,676
|
|
|
340,739
|
|
|
347,951
|
|
|
167,344
|
|
Total
deposits
|
|
889,074
|
|
|
859,111
|
|
|
858,483
|
|
|
846,992
|
|
|
482,745
|
|
Repurchase
agreements
|
|
26,883
|
|
|
20,747
|
|
|
28,068
|
|
|
18,442
|
|
|
2,727
|
|
FHLB & other
borrowings
|
|
9,766
|
|
|
30,125
|
|
|
34,187
|
|
|
39,278
|
|
|
—
|
|
Other
liabilities
|
|
5,707
|
|
|
4,253
|
|
|
3,048
|
|
|
3,908
|
|
|
1,772
|
|
Total
liabilities
|
|
931,430
|
|
|
914,236
|
|
|
923,786
|
|
|
908,621
|
|
|
487,245
|
|
Shareholders'
Equity
|
|
|
|
|
|
|
|
|
|
|
Preferred
stock
|
|
12
|
|
|
12
|
|
|
12
|
|
|
12
|
|
|
12
|
|
Common
stock
|
|
5,824
|
|
|
5,817
|
|
|
5,806
|
|
|
5,732
|
|
|
2,966
|
|
Additional paid-in
capital
|
|
82,800
|
|
|
82,717
|
|
|
82,616
|
|
|
81,628
|
|
|
42,516
|
|
Retained
earnings
|
|
14,153
|
|
|
13,231
|
|
|
12,095
|
|
|
10,942
|
|
|
11,049
|
|
Accumulated other
comprehensive loss
|
|
275
|
|
|
211
|
|
|
(352)
|
|
|
122
|
|
|
(425)
|
|
Total shareholders'
equity
|
|
103,064
|
|
|
101,988
|
|
|
100,177
|
|
|
98,436
|
|
|
56,118
|
|
Total liabilities &
shareholders' equity
|
|
$
|
1,034,494
|
|
|
$
|
1,016,224
|
|
|
$
|
1,023,963
|
|
|
$
|
1,007,057
|
|
|
$
|
543,363
|
|
SmartFinancial, Inc.
and Subsidiaries
|
Condensed
Consolidated Financial Information (unaudited)
|
(In
thousands)
|
INCOME
STATEMENT
|
|
|
Three months
ending
|
|
|
June 30,
2016
|
|
March 31,
2016
|
|
Dec. 31,
2015
|
|
Sept. 30,
2015
|
|
June 30,
2015
|
Interest
Income
|
|
|
|
|
|
|
|
|
|
|
Loans, including
fees
|
|
$
|
9,954
|
|
|
$
|
9,374
|
|
|
$
|
9,875
|
|
|
$
|
6,660
|
|
|
$
|
4,677
|
|
Investment
securities
|
|
665
|
|
|
717
|
|
|
630
|
|
|
458
|
|
|
363
|
|
Other interest
income
|
|
50
|
|
|
63
|
|
|
62
|
|
|
35
|
|
|
28
|
|
Total interest
income
|
|
10,670
|
|
|
10,154
|
|
|
10,567
|
|
|
7,153
|
|
|
5,068
|
|
Interest
Expense
|
|
|
|
|
|
|
|
|
|
|
Deposits
|
|
1,013
|
|
|
961
|
|
|
937
|
|
|
688
|
|
|
498
|
|
Repurchase
agreements
|
|
15
|
|
|
17
|
|
|
17
|
|
|
7
|
|
|
3
|
|
FHLB and other
borrowings
|
|
29
|
|
|
45
|
|
|
66
|
|
|
32
|
|
|
3
|
|
Total interest
expense
|
|
1,057
|
|
|
1,023
|
|
|
1,020
|
|
|
727
|
|
|
504
|
|
Net interest
income
|
|
9,613
|
|
|
9,131
|
|
|
9,547
|
|
|
6,426
|
|
|
4,564
|
|
Provision for loan
losses
|
|
218
|
|
|
138
|
|
|
567
|
|
|
32
|
|
|
40
|
|
Net interest income
after provision for loan losses
|
|
9,394
|
|
|
8,993
|
|
|
8,980
|
|
|
6,394
|
|
|
4,524
|
|
Non-interest
income
|
|
|
|
|
|
|
|
|
|
|
Service charges on
deposit accounts
|
|
259
|
|
|
296
|
|
|
397
|
|
|
237
|
|
|
149
|
|
Gain on
securities
|
|
98
|
|
|
83
|
|
|
—
|
|
|
—
|
|
|
52
|
|
Gain on sale of loans
and other assets
|
|
197
|
|
|
222
|
|
|
86
|
|
|
(294)
|
|
|
31
|
|
Gain (loss) on sale
of foreclosed assets
|
|
(4)
|
|
|
58
|
|
|
332
|
|
|
(86)
|
|
|
(363)
|
|
Other non-interest
income
|
|
410
|
|
|
412
|
|
|
340
|
|
|
317
|
|
|
237
|
|
Total non-interest
income
|
|
961
|
|
|
1,071
|
|
|
1,155
|
|
|
174
|
|
|
106
|
|
|
|
|
|
|
|
|
|
|
|
|
Non-interest
expense
|
|
|
|
|
|
|
|
|
|
|
Salaries and employee
benefits
|
|
4,486
|
|
|
4,495
|
|
|
4,208
|
|
|
3,187
|
|
|
2,236
|
|
Occupancy
expense
|
|
1,137
|
|
|
1,018
|
|
|
910
|
|
|
688
|
|
|
556
|
|
FDIC
premiums
|
|
151
|
|
|
136
|
|
|
148
|
|
|
144
|
|
|
98
|
|
Foreclosed asset
expense
|
|
64
|
|
|
57
|
|
|
110
|
|
|
91
|
|
|
48
|
|
Marketing
|
|
184
|
|
|
173
|
|
|
100
|
|
|
142
|
|
|
111
|
|
Data
Processing
|
|
555
|
|
|
341
|
|
|
510
|
|
|
278
|
|
|
194
|
|
Professional
expenses
|
|
551
|
|
|
455
|
|
|
760
|
|
|
908
|
|
|
334
|
|
Amortization of other
intangibles
|
|
93
|
|
|
93
|
|
|
93
|
|
|
58
|
|
|
41
|
|
Service
contracts
|
|
316
|
|
|
286
|
|
|
248
|
|
|
192
|
|
|
152
|
|
Other non-interest
expense
|
|
936
|
|
|
897
|
|
|
965
|
|
|
805
|
|
|
570
|
|
Total non-interest
expense
|
|
8,472
|
|
|
7,952
|
|
|
8,052
|
|
|
6,493
|
|
|
4,340
|
|
Earnings before
income taxes
|
|
1,883
|
|
|
2,112
|
|
|
2,083
|
|
|
75
|
|
|
290
|
|
Income tax
expense
|
|
691
|
|
|
764
|
|
|
901
|
|
|
152
|
|
|
225
|
|
Net income
(loss)
|
|
1,192
|
|
|
1,348
|
|
|
1,182
|
|
|
(77)
|
|
|
65
|
|
Dividends on
preferred stock
|
|
270
|
|
|
212
|
|
|
30
|
|
|
30
|
|
|
30
|
|
Net income available
to common shareholders
|
|
$
|
922
|
|
|
$
|
1,136
|
|
|
$
|
1,152
|
|
|
$
|
(107)
|
|
|
$
|
35
|
|
|
|
|
|
|
|
|
|
|
|
|
NET INCOME PER COMMON
SHARE
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.16
|
|
|
$
|
0.20
|
|
|
$
|
0.20
|
|
|
$
|
(0.03)
|
|
|
$
|
0.01
|
|
Diluted
|
|
0.15
|
|
|
0.19
|
|
|
0.19
|
|
|
(0.03)
|
|
|
0.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Weighted average
common shares outstanding
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
5,820
|
|
|
5,807
|
|
|
5,750
|
|
|
3,937
|
|
|
2,966
|
|
Diluted
|
|
6,127
|
|
|
6,108
|
|
|
6,037
|
|
|
4,244
|
|
|
3,293
|
|
SmartFinancial, Inc.
and Subsidiaries
|
Condensed
Consolidated Financial Information (unaudited)
|
(In
thousands)
|
YIELD
ANALYSIS
|
|
|
Three Months Ended
June 30, 2016
|
|
Three months ended
March 31, 2016
|
|
Three Months Ended
June 30, 2015
|
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
Average
|
|
|
|
Yield/
|
|
|
Balance
|
|
Interest *
|
|
Cost*
|
|
Balance
|
|
Interest *
|
|
Cost*
|
|
Balance
|
|
Interest *
|
|
Cost*
|
Assets
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Loans
|
|
$
|
751,425
|
|
|
$
|
9,955
|
|
|
5.31
|
%
|
|
$
|
734,918
|
|
|
$
|
9,374
|
|
|
5.12
|
%
|
|
$
|
381,969
|
|
|
$
|
4,677
|
|
|
4.91
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Investment securities
and interest bearing due froms
|
|
171,526
|
|
|
678
|
|
|
1.59
|
%
|
|
182,988
|
|
|
730
|
|
|
1.60
|
%
|
|
91,177
|
|
|
364
|
|
|
1.60
|
%
|
Federal funds and
other
|
|
5,719
|
|
|
50
|
|
|
3.51
|
%
|
|
8,817
|
|
|
64
|
|
|
2.91
|
%
|
|
2,676
|
|
|
28
|
|
|
4.20
|
%
|
Total
interest-earning assets
|
|
928,670
|
|
|
10,683
|
|
|
4.61
|
%
|
|
926,723
|
|
|
10,168
|
|
|
4.40
|
%
|
|
475,822
|
|
|
5,069
|
|
|
4.27
|
%
|
Non-interest-earning
assets
|
|
65,380
|
|
|
|
|
|
|
74,368
|
|
|
|
|
|
|
41,188
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
assets
|
|
$
|
994,050
|
|
|
|
|
|
|
$
|
1,001,091
|
|
|
|
|
|
|
$
|
517,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Liabilities and
Stockholders' Equity
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Interest-bearing
demand deposits
|
|
$
|
153,881
|
|
|
$
|
69
|
|
|
0.18
|
%
|
|
$
|
150,538
|
|
|
$
|
66
|
|
|
0.18
|
%
|
|
$
|
110,401
|
|
|
$
|
39
|
|
|
0.14
|
%
|
Money market and
savings deposits
|
|
248,401
|
|
|
299
|
|
|
0.48
|
%
|
|
242,125
|
|
|
272
|
|
|
0.45
|
%
|
|
121,856
|
|
|
112
|
|
|
0.37
|
%
|
Time
deposits
|
|
321,244
|
|
|
645
|
|
|
0.81
|
%
|
|
334,782
|
|
|
623
|
|
|
0.75
|
%
|
|
165,140
|
|
|
347
|
|
|
0.84
|
%
|
Total
interest-bearing deposits
|
|
723,526
|
|
|
1,013
|
|
|
0.56
|
%
|
|
727,445
|
|
|
961
|
|
|
0.53
|
%
|
|
397,397
|
|
|
498
|
|
|
0.50
|
%
|
Securities sold under
agreement to repurchase
|
|
19,742
|
|
|
15
|
|
|
0.30
|
%
|
|
21,237
|
|
|
17
|
|
|
0.32
|
%
|
|
5,928
|
|
|
3
|
|
|
0.20
|
%
|
Federal Home Loan
Bank advances and other borrowings
|
|
11,287
|
|
|
29
|
|
|
1.03
|
%
|
|
23,504
|
|
|
45
|
|
|
0.76
|
%
|
|
1
|
|
|
—
|
|
|
0.85
|
%
|
Total
interest-bearing liabilities
|
|
754,555
|
|
|
1,057
|
|
|
0.56
|
%
|
|
772,186
|
|
|
1,023
|
|
|
0.53
|
%
|
|
403,326
|
|
|
501
|
|
|
0.50
|
%
|
Noninterest-bearing
deposits
|
|
132,765
|
|
|
|
|
|
|
123,242
|
|
|
|
|
|
|
56,373
|
|
|
|
|
|
Other
liabilities
|
|
4,111
|
|
|
|
|
|
|
4,160
|
|
|
|
|
|
|
643
|
|
|
|
|
|
Total
liabilities
|
|
891,431
|
|
|
|
|
|
|
899,588
|
|
|
|
|
|
|
460,342
|
|
|
|
|
|
Shareholders'
equity
|
|
102,619
|
|
|
|
|
|
|
101,503
|
|
|
|
|
|
|
56,668
|
|
|
|
|
|
Total liabilities and
stockholders' equity
|
|
$
|
994,050
|
|
|
|
|
|
|
$
|
1,001,091
|
|
|
|
|
|
|
$
|
517,010
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Net interest income,
taxable equivalent
|
|
|
|
$
|
9,626
|
|
|
|
|
|
|
$
|
9,145
|
|
|
|
|
|
|
$
|
4,568
|
|
|
|
Interest rate
spread
|
|
|
|
|
|
4.05
|
%
|
|
|
|
|
|
3.87
|
%
|
|
|
|
|
|
3.77
|
%
|
Tax equivalent net
interest margin
|
|
|
|
|
|
4.16
|
%
|
|
|
|
|
|
3.96
|
%
|
|
|
|
|
|
3.85
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Percentage of average
interest-earning assets to average
interest-bearing liabilities
|
|
|
|
|
|
123.08
|
%
|
|
|
|
|
|
120.01
|
%
|
|
|
|
|
|
118.0
|
%
|
Percentage
of average equity to average assets
|
|
|
|
|
|
10.32
|
%
|
|
|
|
|
|
10.14
|
%
|
|
|
|
|
|
10.96
|
%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
* Taxable equivalent
basis
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
SmartFinancial, Inc.
and Subsidiaries
|
Condensed
Consolidated Financial Information (unaudited)
|
(In
thousands)
|
|
|
Three months
ending
|
|
|
June 30,
2016
|
|
March 31,
2016
|
|
Dec. 31
2015
|
|
Sept. 30,
2015
|
|
June 30,
2015
|
Operating
Earnings
|
|
|
|
|
|
|
|
|
|
|
Net income (loss)
(GAAP)
|
|
$
|
1,192
|
|
|
$
|
1,348
|
|
|
$
|
1,182
|
|
|
$
|
(77)
|
|
|
$
|
65
|
|
Purchased loan
accounting adjustments*
|
|
(597)
|
|
|
(541)
|
|
|
(818)
|
|
|
(412)
|
|
|
(161)
|
|
Securities (gains)
losses
|
|
(98)
|
|
|
(83)
|
|
|
—
|
|
|
—
|
|
|
(52)
|
|
Merger and conversion
costs
|
|
153
|
|
|
105
|
|
|
230
|
|
|
748
|
|
|
104
|
|
Foreclosed assets
(gains) losses
|
|
4
|
|
|
(58)
|
|
|
(332)
|
|
|
86
|
|
|
363
|
|
Income tax effect of
adjustments
|
|
250
|
|
|
221
|
|
|
352
|
|
|
(161)
|
|
|
(97)
|
|
Net operating
earnings (Non-GAAP)
|
|
904
|
|
|
992
|
|
|
614
|
|
|
184
|
|
|
222
|
|
Dividends on
preferred stock
|
|
(270)
|
|
|
(212)
|
|
|
(30)
|
|
|
(30)
|
|
|
(30)
|
|
Net operating
earnings available to common
shareholders (Non-GAAP)
|
|
$
|
634
|
|
|
$
|
780
|
|
|
$
|
584
|
|
|
$
|
154
|
|
|
$
|
192
|
|
Net operating
earnings per common share:
|
|
|
|
|
|
|
|
|
|
|
Basic
|
|
$
|
0.11
|
|
|
$
|
0.13
|
|
|
$
|
0.10
|
|
|
$
|
0.04
|
|
|
$
|
0.06
|
|
Diluted
|
|
0.10
|
|
|
0.13
|
|
|
0.10
|
|
|
0.04
|
|
|
0.06
|
|
|
|
|
|
|
|
|
|
|
|
|
Operating
Efficiency Ratio
|
|
|
|
|
|
|
|
|
|
|
Efficiency ratio
(GAAP)
|
|
79.14
|
%
|
|
76.93
|
%
|
|
74.29
|
%
|
|
97.45
|
%
|
|
88.67
|
%
|
Adjustment for
purchased loan accounting adjustments*
|
|
7.05
|
%
|
|
6.81
|
%
|
|
10.16
|
%
|
|
6.34
|
%
|
|
3.71
|
%
|
Adjustment for
securities (gains) losses
|
|
1.16
|
%
|
|
1.05
|
%
|
|
—
|
%
|
|
—
|
%
|
|
(1.20)
|
%
|
Adjustment for merger
and conversion costs
|
|
(1.81)
|
%
|
|
(1.33)
|
%
|
|
(2.85)
|
%
|
|
(11.51)
|
%
|
|
(2.41)
|
%
|
Adjustment for OREO
(gains) losses
|
|
(0.05)
|
%
|
|
0.73
|
%
|
|
4.13
|
%
|
|
(1.32)
|
%
|
|
(8.36)
|
%
|
Operating efficiency
ratio (Non-GAAP)
|
|
85.49
|
%
|
|
84.19
|
%
|
|
85.73
|
%
|
|
90.96
|
%
|
|
80.41
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Adjusted Allowance
for Loan Losses
|
|
|
|
|
|
|
|
|
|
|
Allowance for loan
losses (GAAP)
|
|
$
|
4,720
|
|
|
$
|
4,527
|
|
|
$
|
4,355
|
|
|
$
|
3,828
|
|
|
$
|
3,834
|
|
Net acquisition
accounting fair value discounts to loans
|
|
11,053
|
|
|
11,381
|
|
|
11,781
|
|
|
12,520
|
|
|
5,599
|
|
Adjusted allowance
for loan losses (Non-GAAP)
|
|
15,773
|
|
|
15,908
|
|
|
16,136
|
|
|
16,348
|
|
|
9,433
|
|
Loans (excluding
acquisition accounting fair value discounts)
|
|
789,169
|
|
|
752,321
|
|
|
739,497
|
|
|
722,959
|
|
|
396,323
|
|
Adjusted allowance
for loan losses to loans (Non-GAAP)
|
|
2.00
|
%
|
|
2.11
|
%
|
|
2.18
|
%
|
|
2.26
|
%
|
|
2.38
|
%
|
|
|
|
|
|
|
|
|
|
|
|
Tangible Common
Equity
|
|
|
|
|
|
|
|
|
|
|
Shareholders' equity
(GAAP)
|
|
$
|
103,064
|
|
|
$
|
101,988
|
|
|
$
|
100,177
|
|
|
$
|
98,436
|
|
|
$
|
56,118
|
|
Less preferred stock
& preferred stock paid in capital
|
|
12,000
|
|
|
12,000
|
|
|
12,000
|
|
|
12,000
|
|
|
12,000
|
|
Less goodwill and
other intangible assets
|
|
6,754
|
|
|
6,848
|
|
|
6,941
|
|
|
7,034
|
|
|
177
|
|
Tangible common
equity (Non-GAAP)
|
|
$
|
84,310
|
|
|
$
|
83,140
|
|
|
$
|
81,236
|
|
|
$
|
79,402
|
|
|
$
|
43,941
|
|
|
*Consists of ASC
310-30 accretion above (below) contractual loan income and ASC
310-20 accretion
|
To view the original version on PR Newswire,
visit:http://www.prnewswire.com/news-releases/smartfinancial-reports-second-quarter-results-300306285.html
SOURCE SmartFinancial, Inc.