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: July 24, 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 July 24, 2023, SmartFinancial, Inc. (“SmartFinancial”) issued a press release (the “Press Release”) reporting earnings results for its second quarter ending June 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 July 25, 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 second quarter 2023 financial results dated July 24, 2023
99.2		Second 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: July 24, 2023
	/s/ William Y. Carroll, Jr.
	William Y. Carroll, Jr.
	President & Chief Executive Officer

Exhibit 99.1

2Q 2023

SmartFinancial Announces Results for the Second Quarter 2023

Highlights for the Second Quarter of 2023

●

Operating earnings¹ of $8.8 million, or $0.52 per diluted common share

●

Net organic loan and lease growth of $56 million - 7% annualized quarter-over-quarter increase

●

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

●

Addition of seasoned wealth management team in Dothan, Alabama

●

Stability in deposit mix with 24% non-interest bearing accounts

KNOXVILLE, TN – July 24, 2023 - SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NASDAQ: SMBK), today announced net income of $8.8 million, or $0.52 per diluted common share, for the second quarter of 2023, compared to net income of $10.2 million, or $0.61 per diluted common share, for the second quarter of 2022, and compared to prior quarter net income of $11.5 million, or $0.68 per diluted common share. Operating earnings¹, which excludes securities gains and merger related and restructuring expenses, net of tax adjustments, totaled $8.8 million, or $0.52 per diluted common share, in the second quarter of 2023, compared to $10.3 million, or $0.61 per diluted common share, in the second quarter of 2022, and compared to $11.5 million, or $0.68 per diluted common share, in the first quarter of 2023.

Billy Carroll, President & CEO, stated: “I am very pleased with our results for the quarter. While dealing with some headwinds related to deposit pricing, this quarter showed the strength of our Balance Sheet with our ability to fund with our core base. We’ve continued to focus on expenses without sacrificing investments for the future, and the quarter also allowed us some outstanding opportunities to gain strong client relationships. We continue to be bullish as we look forward.”

SmartFinancial's Chairman, Miller Welborn, concluded: " The second quarter of 2023 shows further evidence of the strength of our company. Our entire team performed very well and executed our Strategic Plan effectively. I am as confident as ever that the economic environment in our southeastern markets remains very strong and our bank will continue to thrive in the months ahead.”

Net Interest Income and Net Interest Margin

Net interest income was $31.6 million for the second quarter of 2023, compared to $36.0 million for the prior quarter. Average earning assets totaled $4.34 billion, a decrease of $86.4 million from the prior quarter. The decrease in average earnings assets was primarily driven by a decrease in average interest-earning cash of $183.0 million, offset by an increase in average loans and leases of $50.1 million and average securities of $46.5 million. Average interest-bearing liabilities decreased $34.1 million from the prior quarter, primarily attributable to a decrease in average deposits.

The tax equivalent net interest margin was 2.93% for the second quarter of 2023, compared to 3.31% for the prior quarter, which included $1.4 million in fees from the payoff of an acquired loan. The tax equivalent net interest margin was negatively impacted by the continued rise in the cost of interest-bearing liabilities from rising rates and increased pricing competition. The yield on loans and leases, excluding loan fees was 5.39% for the second quarter, compared to 5.20% for the prior quarter.

The cost of total deposits for the second quarter of 2023 was 1.89% compared to 1.56% in the prior quarter. The cost of interest-bearing liabilities increased to 2.53% for the second quarter of 2023 compared to 2.12% for the prior quarter. The cost of average interest-bearing deposits was 2.46% for the second quarter of 2023 compared to 2.05% for the prior quarter, an increase of 41 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.

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

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


	Three Months Ended
	Jun		Mar		Increase
Selected Interest Rates and Yields	2023		2023		(Decrease)
Yield on loans and leases, excluding loan fees	5.39	%	5.20	%	0.19	%
Yield on loans and leases	5.51	%	5.57	%	(0.06)	%
Yield on earning assets, on a fully tax equivalent basis (FTE)	4.82	%	4.88	%	(0.06)	%
Cost of interest-bearing deposits	2.46	%	2.05	%	0.41	%
Cost of total deposits	1.89	%	1.56	%	0.33	%
Cost of interest-bearing liabilities	2.53	%	2.12	%	0.41	%
Net interest margin, FTE	2.93	%	3.31	%	(0.38)	%

Provision for Credit Losses on Loans and Leases and Credit Quality

At June 30, 2023, the allowance for credit losses was $32.7 million. The allowance for credit losses to total loans and leases was 0.98% as of June 30, 2023, and March 31, 2023, respectively.

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


	Three Months Ended
		Jun			Mar
Provision for Credit Losses on Loans and Leases Rollforward		2023			2023			Change
Beginning balance	$	32,279		$	23,334		$	8,945
Adoption of ASU 2016-13		-			8,655			(8,655)
Adjusted beginning balance		32,279			31,989			290
Charge-offs		(207)			(315)			108
Recoveries		255			55			200
Net (charge-offs) recoveries		48			(260)			308
Provision for credit losses ⁽¹⁾		420			550			(130)
Ending balance	$	32,747		$	32,279		$	468

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

(1)

The current quarter-ended, excludes unfunded commitments release of $307 thousand. At June 30, 2023, the unfunded commitment liability totaled $2.8 million.

Nonperforming loans and leases as a percentage of total loans and leases was 0.11% as of June 30, 2023, an increase of 1 basis point from the 0.10% reported in the first 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 June 30, 2023, as compared to 0.11% as of March 31, 2023.

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


	Three Months Ended
		Jun			Mar			Increase
Credit Quality		2023			2023			(Decrease)
Nonaccrual loans and leases	$	3,722		$	3,247		$	475
Loans and leases past due 90 days or more and still accruing		-			-			-
Total nonperforming loans and leases		3,722			3,247			475
Other real estate owned		1,708			1,708			-
Other repossessed assets		282			66			216
Total nonperforming assets	$	5,712		$	5,021		$	691

Nonperforming loans and leases to total loans and leases, gross		0.11	%		0.10	%		0.01	%
Nonperforming assets to total assets		0.12	%		0.11	%		0.01	%

Noninterest Income

Noninterest income increased $205 thousand to $7.1 million for the second quarter of 2023 compared to $6.9 million for the prior quarter. During the second quarter of 2023, the primary components of the changes in noninterest income were as follows:

●

Increase in investment services, income increase led by the new Dothan, Alabama advisory team;

●

Decrease in insurance commissions, driven by annual contingency payments in the prior quarter; and

●

Decrease in other, primarily related to decreased fees from capital markets activity and equipment leasing fees.

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


	Three Months Ended
		Jun		Mar		Increase
Noninterest Income		2023		2023		(Decrease)
Service charges on deposit accounts	$	1,657	$	1,445	$	212
Mortgage banking income		332		172		160
Investment services		1,300		1,005		295
Insurance commissions		1,139		1,259		(120)
Interchange and debit card transaction fees		1,347		1,383		(36)
Other		1,355		1,661		(306)
Total noninterest income	$	7,130	$	6,925	$	205

Noninterest Expense

Noninterest expense decreased $119 thousand to $27.4 million for the second quarter of 2023 compared to $27.5 million for the prior quarter. During the second quarter of 2023, the primary components of the changes in noninterest expense were as follows:

●

Decrease in salaries and employee benefits, primarily as a result of an adjustment to the bank’s incentive accrual;

●

Increase in FDIC insurance, related to assessment rate increase; and

●

Increase in other, primarily related to an increase in seasonal expenses and disposal of some IT equipment.

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


	Three Months Ended
		Jun		Mar		Increase
Noninterest Expense		2023		2023		(Decrease)
Salaries and employee benefits	$	15,947	$	16,742	$	(795)
Occupancy and equipment		3,318		3,208		110
FDIC insurance		875		541		334
Other real estate and loan related expenses		441		572		(131)
Advertising and marketing		305		355		(50)
Data processing and technology		2,235		2,163		72
Professional services		764		807		(43)
Amortization of intangibles		675		659		16
Merger related and restructuring expenses		-		-		-
Other		2,850		2,482		368
Total noninterest expense	$	27,410	$	27,529	$	(119)

Income Tax Expense

Income tax expense was $2.3 million for the second quarter of 2023, a decrease of $982 thousand, compared to $3.3 million for the prior quarter.

The effective tax rate was 20.98% for the second quarter of 2023 and 22.44% for the prior quarter.

Balance Sheet Trends

Total assets at June 30, 2023 were $4.75 billion compared to $4.64 billion at December 31, 2022. The $108.3 million increase is primarily attributable to increases in loans and leases of $84.2 million, securities of $54.0 million and other assets of $9.2 million. Asset increases were offset by a decrease in cash and cash equivalents of $27.5 million and an increase in the allowance for credit losses of $9.4 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 $4.30 billion at June 30, 2023 from $4.21 billion at December 31, 2022. The increase of $95.9 million was primarily from organic deposit growth of $122.5 million, offset by a decrease in borrowings of $26.4 million.

Shareholders' equity at June 30, 2023 totaled $444.8 million, an increase of $12.4 million, from December 31, 2022. The increase in shareholders' equity was primarily driven by net income of $20.3 million for the six months ended June 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 $2.7 million. Tangible book value per share¹ was $19.78 at June 30, 2023, compared to $19.09 at December 31, 2022. Tangible common equity¹ as a percentage of tangible assets¹ was 7.25% at June 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):


	Jun		Dec		Increase
Selected Balance Sheet Information	2023		2022		(Decrease)
Total assets	$	4,745,800	$	4,637,498	$	108,302
Total liabilities		4,300,953		4,205,046		95,907
Total equity		444,847		432,452		12,395
Securities		823,872		769,842		54,030
Loans and leases		3,337,790		3,253,627		84,163
Deposits		4,199,584		4,077,100		122,484
Borrowings		15,496		41,860		(26,364)

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 second quarter of 2023 on Monday, July 24, 2023, and will host a conference call on Tuesday, July 25, 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, 194833. A replay of the conference call will be available through June 24, 2023, by dialing (866) 813-9403 or (929) 458-6194 and entering the access code, 504346. 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 the Florida Panhandle. 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-tax pre-provision 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-tax pre-provision 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-tax pre-provision return on average assets is the annualized operating pre-tax pre-provision 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-tax pre-provision 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 the recent 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; 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
	Jun		Mar		Dec		Sep		Jun
	2023		2023		2022		2022		2022
Assets:
Cash and cash equivalents	$	238,898	$	306,934	$	266,424	$	543,029	$	654,945
Securities available-for-sale, at fair value		540,308		560,418		483,893		519,723		524,864
Securities held-to-maturity, at amortized cost		283,564		284,776		285,949		287,104		288,363
Other investments		14,396		14,059		15,530		15,528		16,569
Loans held for sale		986		3,324		1,752		2,742		1,707
Loans and leases		3,337,790		3,281,787		3,253,627		3,099,116		2,994,074
Less: Allowance for credit losses		(32,747)		(32,279)		(23,334)		(22,769)		(21,938)
Loans and leases, net		3,305,043		3,249,508		3,230,293		3,076,347		2,972,136
Premises and equipment, net		92,351		92,190		92,511		91,944		89,950
Other real estate owned		1,708		1,708		1,436		1,226		1,612
Goodwill and other intangibles, net		108,439		109,114		109,772		110,460		104,582
Bank owned life insurance		82,419		81,938		81,470		81,001		80,537
Other assets		77,688		65,836		68,468		67,807		52,848
Total assets	$	4,745,800	$	4,769,805	$	4,637,498	$	4,796,911	$	4,788,113
Liabilities:
Deposits:
Noninterest-bearing demand	$	1,003,432	$	989,753	$	1,072,449	$	1,186,209	$	1,162,843
Interest-bearing demand		938,758		989,738		965,911		962,901		999,893
Money market and savings		1,720,202		1,761,847		1,583,481		1,663,355		1,607,714
Time deposits		537,192		488,208		455,259		467,944		511,182
Total deposits		4,199,584		4,229,546		4,077,100		4,280,409		4,281,632
Borrowings		15,496		16,546		41,860		18,423		12,549
Subordinated debt		42,057		42,036		42,015		41,994		41,973
Other liabilities		43,816		38,278		44,071		41,374		31,532
Total liabilities		4,300,953		4,326,406		4,205,046		4,382,200		4,367,686
Shareholders' Equity:
Common stock		17,004		17,004		16,901		16,888		16,898
Additional paid-in capital		295,296		294,930		294,330		293,907		293,815
Retained earnings		167,564		160,085		156,545		144,723		134,362
Accumulated other comprehensive income (loss)		(35,017)		(28,620)		(35,324)		(40,807)		(24,648)
Total shareholders' equity		444,847		443,399		432,452		414,711		420,427
Total liabilities & shareholders' equity	$	4,745,800	$	4,769,805	$	4,637,498	$	4,796,911	$	4,788,113

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands except share and per share data)


	Three Months Ended										Six Months Ended
	Jun		Mar		Dec		Sep		Jun		Jun		Jun
	2023		2023		2022		2022		2022		2023		2022
Interest income:
Loans and leases, including fees	$	45,446	$	44,728	$	40,082	$	35,127	$	31,530	$	90,173	$	61,172
Investment securities:
Taxable		4,335		3,651		3,337		3,135		2,908		7,986		5,327
Tax-exempt		357		353		797		561		441		709		809
Federal funds sold and other earning assets		1,956		4,446		3,098		3,474		1,430		6,405		1,916
Total interest income		52,094		53,178		47,314		42,297		36,309		105,273		69,224
Interest expense:
Deposits		19,554		16,346		8,844		4,866		2,504		35,900		4,518
Borrowings		339		224		232		97		117		564		274
Subordinated debt		626		626		626		626		626		1,252		1,252
Total interest expense		20,519		17,196		9,702		5,589		3,247		37,716		6,044
Net interest income		31,575		35,982		37,612		36,708		33,062		67,557		63,180
Provision for credit losses		113		550		788		974		1,250		663		2,256
Net interest income after provision for credit losses		31,462		35,432		36,824		35,734		31,812		66,894		60,924
Noninterest income:
Service charges on deposit accounts		1,657		1,445		1,477		1,611		1,446		3,102		2,765
Gain (loss) on sale of securities, net		—		—		144		—		—		—		—
Mortgage banking		332		172		77		170		471		504		1,305
Investment services		1,300		1,005		958		1,051		1,065		2,305		2,135
Insurance commissions		1,139		1,259		1,233		864		598		2,398		1,499
Interchange and debit card transaction fees		1,347		1,383		1,328		1,356		1,467		2,730		2,751
Other		1,355		1,661		1,908		1,198		2,182		3,016		3,885
Total noninterest income		7,130		6,925		7,125		6,250		7,229		14,055		14,340
Noninterest expense:
Salaries and employee benefits		15,947		16,742		16,384		16,317		15,673		32,689		30,719
Occupancy and equipment		3,318		3,208		3,015		3,167		2,793		6,526		5,852
FDIC insurance		875		541		650		705		676		1,416		1,317
Other real estate and loan related expense		441		572		517		565		636		1,013		1,365
Advertising and marketing		305		355		308		288		327		660		697
Data processing and technology		2,235		2,163		2,097		1,872		1,728		4,398		3,314
Professional services		764		807		981		822		745		1,572		1,987
Amortization of intangibles		675		659		688		650		633		1,334		1,270
Merger related and restructuring expenses		—		—		(45)		87		81		—		520
Other		2,850		2,482		2,821		2,757		2,634		5,331		4,602
Total noninterest expense		27,410		27,529		27,416		27,230		25,926		54,939		51,643
Income before income taxes		11,182		14,828		16,533		14,754		13,115		26,010		23,621
Income tax expense		2,346		3,328		3,529		3,211		2,900		5,674		5,146
Net income	$	8,836	$	11,500	$	13,004	$	11,543	$	10,215	$	20,336	$	18,475
Earnings per common share:
Basic	$	0.53	$	0.69	$	0.78	$	0.69	$	0.61	$	1.21	$	1.11
Diluted	$	0.52	$	0.68	$	0.77	$	0.68	$	0.61	$	1.20	$	1.10
Weighted average common shares outstanding:
Basic		16,806,389		16,791,406		16,758,706		16,749,255		16,734,930		16,798,939		16,726,696
Diluted		16,897,890		16,896,494		16,884,253		16,872,022		16,867,774		16,897,187		16,863,299

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

YIELD ANALYSIS


	Three Months Ended
	June 30, 2023						March 31, 2023						June 30, 2022
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Loans and leases, including fees¹	$	3,308,595	$	45,446	5.51	%	$	3,258,452	$	44,728	5.57	%	$	2,872,748	$	31,530	4.40	%
Taxable securities		770,275		4,335	2.26	%		723,540		3,651	2.05	%		717,507		2,908	1.63	%
Tax-exempt securities²		65,265		452	2.78	%		65,547		447	2.77	%		101,585		609	2.40	%
Federal funds sold and other earning assets		195,266		1,956	4.02	%		378,253		4,446	4.77	%		628,677		1,430	0.91	%
Total interest-earning assets		4,339,401		52,189	4.82	%		4,425,792		53,272	4.88	%		4,320,517		36,477	3.39	%
Noninterest-earning assets		355,701						359,996						374,776
Total assets	$	4,695,102					$	4,785,788					$	4,695,293

Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits	$	950,227		4,892	2.06	%	$	944,132		4,227	1.82	%	$	968,806		734	0.30	%
Money market and savings deposits		1,737,303		11,785	2.72	%		1,820,455		10,381	2.31	%		1,559,963		1,126	0.29	%
Time deposits		504,350		2,877	2.29	%		469,361		1,738	1.50	%		531,783		644	0.49	%
Total interest-bearing deposits		3,191,880		19,554	2.46	%		3,233,948		16,346	2.05	%		3,060,552		2,504	0.33	%
Borrowings		24,845		339	5.47	%		16,858		224	5.39	%		31,510		117	1.49	%
Subordinated debt		42,044		626	5.97	%		42,022		626	6.04	%		41,959		626	5.98	%
Total interest-bearing liabilities		3,258,769		20,519	2.53	%		3,292,828		17,196	2.12	%		3,134,021		3,247	0.42	%
Noninterest-bearing deposits		951,381						1,015,670						1,112,643
Other liabilities		40,669						44,908						28,903
Total liabilities		4,250,819						4,353,406						4,275,567
Shareholders' equity		444,283						432,382						419,726
Total liabilities and shareholders' equity	$	4,695,102					$	4,785,788					$	4,695,293

Net interest income, taxable equivalent			$	31,670					$	36,076					$	33,230
Interest rate spread					2.30	%					2.76	%					2.97	%
Tax equivalent net interest margin					2.93	%					3.31	%					3.08	%

Percentage of average interest-earning assets to average interest-bearing liabilities					133.16	%					134.41	%					137.86	%
Percentage of average equity to average assets					9.46	%					9.03	%					8.94	%

¹Includes average balance of $2.9 million, $3.1 million, and $34.3 million in PPP loans for the quarters ended June 30, 2023, March 31, 2023, and June 30, 2022, respectively.

²Yields computed on tax-exempt instruments on a tax equivalent basis include $95 thousand, $94 thousand, and $168 thousand of taxable equivalent income for the quarters ended June 30, 2023, March 31, 2023, and June 30, 2022, respectively.

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

YIELD ANALYSIS


	Six Months Ended
	June 30, 2023							June 30, 2022
	Average				Yield/			Average				Yield/
	Balance		Interest		Cost			Balance		Interest		Cost
Assets:
Loans and leases, including fees¹	$	3,283,662	$	90,173		5.54	%	$	2,800,821	$	61,172	4.40	%
Taxable securities		747,037		7,986		2.16	%		665,532		5,327	1.61	%
Tax-exempt securities²		65,405		897		2.77	%		103,540		1,142	2.22	%
Federal funds sold and other earning assets		286,254		6,405		4.51	%		701,850		1,916	0.55	%
Total interest-earning assets		4,382,358		105,461		4.85	%		4,271,743		69,557	3.28	%
Noninterest-earning assets		357,837							378,271
Total assets	$	4,740,195						$	4,650,014

Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits	$	947,196		9,119		1.94	%	$	945,450		1,181	0.25	%
Money market and savings deposits		1,778,650		22,168		2.51	%		1,541,678		1,985	0.26	%
Time deposits		486,952		4,613		1.91	%		546,413		1,352	0.50	%
Total interest-bearing deposits		3,212,798		35,900		2.25	%		3,033,541		4,518	0.30	%
Borrowings		20,874		564		5.45	%		50,533		274	1.09	%
Subordinated debt		42,033		1,252		6.01	%		41,949		1,252	6.02	%
Total interest-bearing liabilities		3,275,705		37,716		2.32	%		3,126,023		6,044	0.39	%
Noninterest-bearing deposits		983,348							1,070,703
Other liabilities		42,777							29,475
Total liabilities		4,301,830							4,226,201
Shareholders' equity		438,365							423,813
Total liabilities and shareholders' equity	$	4,740,195						$	4,650,014

Net interest income, taxable equivalent			$	67,745						$	63,513
Interest rate spread						2.53	%					2.89	%
Tax equivalent net interest margin						3.12	%					3.00	%

Percentage of average interest-earning assets to average interest-bearing liabilities						133.78	%					136.65	%
Percentage of average equity to average assets						9.25	%					9.11	%

¹Includes average balance of $3.0 million and $44.1 million in PPP loans for the six months ended June 30, 2023, and 2022, respectively.

²Yields computed on tax-exempt instruments on a tax equivalent basis include $188 thousand and $333 thousand of taxable equivalent income for the six months ended June 20, 2023, and 2022, respectively.

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)


	As of and for The Three Months Ended
	Jun			Mar			Dec			Sept			Jun
	2023			2023			2022			2022			2022
Composition of Loans and Leases:
Commercial real estate:
owner occupied	$	769,978		$	764,166		$	765,041		$	714,734		$	684,250
non-owner occupied		871,779			871,368			862,720			822,317			850,338
Commercial real estate, total		1,641,757			1,635,534			1,627,761			1,537,051			1,534,588
Commercial & industrial		594,427			571,153			551,867			514,280			483,588
Construction & land development		394,742			386,253			402,501			405,007			364,368
Consumer real estate		624,828			606,343			587,977			562,408			533,582
Leases		66,401			67,701			67,427			64,798			63,264
Consumer and other		15,635			14,803			16,094			15,572			14,684
Total loans and leases	$	3,337,790		$	3,281,787		$	3,253,627		$	3,099,116		$	2,994,074

Asset Quality and Additional Loan Data:
Nonperforming loans and leases	$	3,722		$	3,247		$	2,951		$	3,379		$	3,413
Other real estate owned		1,708			1,708			1,436			1,226			1,612
Other repossessed assets		282			66			422			—			17
Total nonperforming assets	$	5,712		$	5,021		$	4,809		$	4,605		$	5,042
Restructured loans and leases not included in nonperforming loans and leases	$	657		$	97		$	101		$	108		$	678
Net charge-offs to average loans and leases (annualized)		(0.01)	%		0.03	%		0.03	%		0.02	%		(0.09)	%
Allowance for loan and leases losses to loans and leases		0.98	%		0.98	%		0.72	%		0.73	%		0.73	%
Nonperforming loans and leases to total loans and leases, gross		0.11	%		0.10	%		0.09	%		0.11	%		0.11	%
Nonperforming assets to total assets		0.12	%		0.11	%		0.10	%		0.10	%		0.11	%
Acquired loan and lease fair value discount balance	$	—		$	—		$	13,128		$	14,465		$	14,737
Accretion income on acquired loans and leases		—			—			1,396			148			225
PPP net fees deferred balance		104			114			122			140			301
PPP net fees recognized		10			8			17			163			669

Capital Ratios:
Equity to Assets		9.37	%		9.30	%		9.33	%		8.65	%		8.78	%
Tangible common equity to tangible assets (Non-GAAP)¹		7.25	%		7.17	%		7.13	%		6.49	%		6.74	%

SmartFinancial, Inc.²
Tier 1 leverage		8.24	%		7.91	%		7.95	%		7.40	%		7.48	%
Common equity Tier 1		10.12	%		9.95	%		9.65	%		9.65	%		9.95	%
Tier 1 capital		10.12	%		9.95	%		9.65	%		9.65	%		9.95	%
Total capital		11.94	%		11.77	%		11.40	%		11.44	%		11.80	%

SmartBank		Estimated³
Tier 1 leverage		9.18	%		8.87	%		8.90	%		8.27	%		8.33	%
Common equity Tier 1		11.27	%		11.15	%		10.82	%		10.78	%		11.08	%
Tier 1 capital		11.27	%		11.15	%		10.82	%		10.78	%		11.08	%
Total capital		11.97	%		11.85	%		11.44	%		11.41	%		11.72	%

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															Six Months Ended
	Jun			Mar			Dec			Sept			Jun			Jun			Jun
	2023			2023			2022			2022			2022			2023			2022
Selected Performance Ratios (Annualized):
Return on average assets		0.75	%		0.97	%		1.11	%		0.95	%		0.87	%		0.87	%		0.80	%
Return on average shareholders' equity		7.98	%		10.79	%		12.28	%		10.77	%		9.76	%		9.36	%		8.79	%
Return on average tangible common equity¹		10.57	%		14.45	%		16.65	%		14.36	%		13.02	%		12.46	%		11.70	%
Noninterest income / average assets		0.61	%		0.59	%		0.61	%		0.52	%		0.62	%		0.60	%		0.62	%
Noninterest expense / average assets		2.34	%		2.33	%		2.34	%		2.25	%		2.21	%		2.34	%		2.24	%
Efficiency ratio		70.82	%		64.16	%		61.28	%		63.39	%		64.35	%		67.32	%		66.62	%

Operating Selected Performance Ratios (Annualized):
Operating return on average assets¹		0.75	%		0.97	%		1.10	%		0.96	%		0.88	%		0.87	%		0.82	%
Operating PTPP return on average assets¹		0.96	%		1.30	%		1.46	%		1.30	%		1.23	%		1.13	%		1.14	%
Operating return on average shareholders' equity¹		7.98	%		10.79	%		12.15	%		10.83	%		9.82	%		9.36	%		8.97	%
Operating return on average tangible common equity¹		10.57	%		14.45	%		16.47	%		14.44	%		13.09	%		12.46	%		11.94	%
Operating efficiency ratio¹		70.64	%		64.02	%		61.36	%		62.93	%		63.88	%		67.16	%		65.67	%
Operating noninterest income / average assets¹		0.61	%		0.59	%		0.60	%		0.52	%		0.62	%		0.60	%		0.62	%
Operating noninterest expense / average assets¹		2.34	%		2.33	%		2.35	%		2.24	%		2.21	%		2.34	%		2.22	%

Selected Interest Rates and Yields:
Yield on loans and leases, excluding loan fees		5.39	%		5.20	%		4.81	%		4.48	%		4.18	%		5.30	%		4.15	%
Yield on loans and leases		5.51	%		5.57	%		5.05	%		4.59	%		4.40	%		5.54	%		4.40	%
Yield on earning assets, FTE		4.82	%		4.88	%		4.41	%		3.79	%		3.39	%		4.85	%		3.28	%
Cost of interest-bearing deposits		2.46	%		2.05	%		1.18	%		0.62	%		0.33	%		2.25	%		0.30	%
Cost of total deposits		1.89	%		1.56	%		0.85	%		0.45	%		0.24	%		1.73	%		0.22	%
Cost of interest-bearing liabilities		2.53	%		2.12	%		1.27	%		0.70	%		0.42	%		2.32	%		0.39	%
Net interest margin, FTE		2.93	%		3.31	%		3.51	%		3.29	%		3.08	%		3.12	%		3.00	%

Per Common Share:
Net income, basic	$	0.53		$	0.69		$	0.78		$	0.69		$	0.61		$	1.21		$	1.11
Net income, diluted		0.52			0.68			0.77			0.68			0.61			1.20			1.10
Operating earnings, basic¹		0.53			0.69			0.77			0.69			0.61			1.21			1.13
Operating earnings, diluted¹		0.52			0.68			0.76			0.69			0.61			1.20			1.12
Book value		26.16			26.08			25.59			24.56			24.88			26.16			24.88
Tangible book value¹		19.78			19.66			19.09			18.02			18.69			19.78			18.69
Common shares outstanding		17,004,092			17,004,092			16,900,805			16,887,555			16,898,405			17,004,092			16,898,405

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															Six Months Ended
	Jun			Mar			Dec			Sep			Jun			Jun			Jun
	2023			2023			2022			2022			2022			2023			2022
Operating Earnings:
Net income (GAAP)	$	8,836		$	11,500		$	13,004		$	11,543		$	10,215		$	20,336		$	18,475
Noninterest income:
Securities gains (losses), net		—			—			(144)			—			—			—			—
Noninterest expenses:
Merger related and restructuring expenses		—			—			(45)			87			81			—			520
Income taxes:
Income tax effect of adjustments		—			—			49			(22)			(21)			—			(134)
Operating earnings (Non-GAAP)	$	8,836		$	11,500		$	12,864		$	11,608		$	10,275		$	20,336		$	18,861
Operating earnings per common share (Non-GAAP):
Basic	$	0.53		$	0.69		$	0.77		$	0.69		$	0.61		$	1.21		$	1.13
Diluted		0.52			0.68			0.76			0.69			0.61			1.20			1.12

Operating Noninterest Income:
Noninterest income (GAAP)	$	7,130		$	6,925		$	7,125		$	6,250		$	7,229		$	14,055		$	14,340
Securities gains (losses), net		—			—			(144)			—			—			—			—
Operating noninterest income (Non-GAAP)	$	7,130		$	6,925		$	6,981		$	6,250		$	7,229		$	14,055		$	14,340
Operating noninterest income (Non-GAAP)/average assets¹		0.61	%		0.59	%		0.60	%		0.52	%		0.62	%		0.60	%		0.62	%

Operating Noninterest Expense:
Noninterest expense (GAAP)	$	27,410		$	27,529		$	27,416		$	27,230		$	25,926		$	54,939		$	51,643
Merger related and restructuring expenses		—			—			45			(87)			(81)			—			(520)
Operating noninterest expense (Non-GAAP)	$	27,410		$	27,529		$	27,461		$	27,143		$	25,845		$	54,939		$	51,123
Operating noninterest expense (Non-GAAP)/average assets²		2.34	%		2.33	%		2.35	%		2.24	%		2.21	%		2.34	%		2.22	%

Operating Pre-tax Pre-provision ("PTPP") Earnings:
Net interest income (GAAP)	$	31,575		$	35,982		$	37,612		$	36,708		$	33,062		$	67,557		$	63,180
Operating noninterest income (Non-GAAP)		7,130			6,925			6,981			6,250			7,229			14,055			14,340
Operating noninterest expense (Non-GAAP)		(27,410)			(27,529)			(27,461)			(27,143)			(25,845)			(54,939)			(51,123)
Operating PTPP earnings (Non-GAAP)	$	11,295		$	15,378		$	17,132		$	15,815		$	14,446		$	26,673		$	26,397

Non-GAAP Return Ratios:
Operating return on average assets (Non-GAAP)³		0.75	%		0.97	%		1.10	%		0.96	%		0.88	%		0.87	%		0.82	%
Operating PTPP return on average assets (Non-GAAP)⁴		0.96	%		1.30	%		1.46	%		1.30	%		1.23	%		1.13	%		1.14	%
Return on average tangible common equity (Non-GAAP)⁵		10.57	%		14.45	%		16.65	%		14.36	%		13.02	%		12.46	%		11.70	%
Operating return on average shareholders' equity (Non-GAAP)⁶		7.98	%		10.79	%		12.15	%		10.83	%		9.82	%		9.36	%		8.97	%
Operating return on average tangible common equity (Non-GAAP)⁷		10.57	%		14.45	%		16.47	%		14.44	%		13.09	%		12.46	%		11.94	%

Operating Efficiency Ratio:
Efficiency ratio (GAAP)		70.82	%		64.16	%		61.28	%		63.39	%		64.35	%		67.32	%		66.62	%
Adjustment for taxable equivalent yields		(0.18)	%		(0.14)	%		(0.22)	%		(0.25)	%		(0.27)	%		(0.16)	%		(0.29)	%
Adjustment for securities gains (losses)		—	%		—	%		(0.20)	%		—	%		—	%		—	%		—	%
Adjustment for merger related income and costs		—	%		—	%		0.50	%		(0.21)	%		(0.20)	%		—	%		(0.66)	%
Operating efficiency ratio (Non-GAAP)		70.64	%		64.02	%		61.36	%		62.93	%		63.88	%		67.16	%		65.67	%

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 PTPP return on average assets (Non-GAAP) is the annualized operating PTPP 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										Six Months Ended
	Jun		Mar		Dec		Sep		Jun		Jun		Jun
	2023		2023		2022		2022		2022		2023		2022
Tangible Common Equity:
Shareholders' equity (GAAP)	$	444,847	$	443,399	$	432,452	$	414,711	$	420,427	$	444,847	$	420,427
Less goodwill and other intangible assets		108,439		109,114		109,772		110,460		104,582		108,439		104,582
Tangible common equity (Non-GAAP)	$	336,408	$	334,285	$	322,680	$	304,251	$	315,845	$	336,408	$	315,845

Average Tangible Common Equity:
Average shareholders' equity (GAAP)	$	444,283	$	432,382	$	420,037	$	425,365	$	419,726	$	438,365	$	423,813
Less average goodwill and other intangible assets		108,851		109,537		110,206		106,483		104,986		109,193		105,300
Average tangible common equity (Non-GAAP)	$	335,432	$	322,845	$	309,831	$	318,882	$	314,740	$	329,172	$	318,513

Tangible Book Value per Common Share:
Book value per common share (GAAP)	$	26.16	$	26.08	$	25.59	$	24.56	$	24.88	$	26.16	$	24.88
Adjustment due to goodwill and other intangible assets		(6.38)		(6.42)		(6.50)		(6.54)		(6.19)		(6.38)		(6.19)
Tangible book value per common share (Non-GAAP)¹	$	19.78	$	19.66	$	19.09	$	18.02	$	18.69	$	19.78	$	18.69

Tangible Common Equity to Tangible Assets:
Total Assets (GAAP)	$	4,745,800	$	4,769,805	$	4,637,498	$	4,796,911	$	4,788,113	$	4,745,800	$	4,788,113
Less goodwill and other intangibles		108,439		109,114		109,772		110,460		104,582		108,439		104,582
Tangible Assets (Non-GAAP)	$	4,637,361	$	4,660,691	$	4,527,726	$	4,686,451	$	4,683,531	$	4,637,361	$	4,683,531
Tangible common equity to tangible assets (Non-GAAP)		7.25%		7.17%		7.13%		6.49%		6.74%		7.25%		6.74%

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 2Q 2023 July 25, 2023, 10:00am ET Webcast: www.smartbank.com (Investor Relations) Audio Only: 1 -833 -470 -1428 Access Code: 194833 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 the recent 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; 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-tax pre-provision 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-tax pre-provision 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.

$0.61 $0.68 $0.52 $0.61 $0.68 $0.52 2Q22 1Q23 2Q23 GAAP EPS Diluted Operating EPS $24.88 $26.08 $26.16 $18.69 $19.66 $19.78 2Q22 1Q23 2Q23 BV Per Share TBV Per Share 0.87% 0.97% 0.75% 0.88% 0.97% 0.75% 2Q22 1Q23 2Q23 GAAP ROAA Operating ROAA 13.0% 14.4% 10.6% 13.1% 14.4% 10.6% 2Q22 1Q23 2Q23 GAAP ROATCE Operating ROATCE AOCI Impact 3 Unless otherwise indicated, financial data as of or for the three months ended 6/30/23 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: SECOND QUARTER 2023 12% QoQ2 Annualized Tang. Book Value Per Share Growth (Excluding AOCI)1,4 $0.52 Diluted Operating EPS1 0.75% Operating Return on Average Assets1 10.6% Operating Return Average Tang. Common Equity1 71% Operating Efficiency Ratio1 (3%) QoQ Annualized Deposit Contraction 7% QoQ Annualized Organic Loan3 Growth 79% Loan / Deposit Ratio 0.12% Non-Performing Assets / Assets $4.7 Billion in Total Assets Diluted Earnings Per Share Book Value Per Share Return on Average Assets Return on Average Tangible Common Equity 1 1 1 1 1,4 $21.84 $19.78 $21.34 $19.66

4 SMARTFINANCIAL: EXPANDING SOUTHEAST FRANCHISE $4.7 Billion in Total Assets $3.3 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 6/30/23 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 6/30/23 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 6/30/23 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 6/30/23 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: $72 Billion ► Median Income: $63 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: 5.9 Million ► Total Deposits: $211 Billion ► Median Income: $68 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: 5% $ in Billions, unless otherwise indicated CAGR: 13% CAGR: 45% CAGR: 51%

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 $1,775 $1,897 $2,382 $2,693 $3,254 $3,282 $3,338 5.20% 5.39% 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 23% 23% 24% 23% 23% 28% 27% 27% 27% 26% 16% 16% 17% 17% 18% 12% 13% 12% 12% 12% 18% 18% 18% 18% 19% $2,994 $3,099 $3,254 $3,282 $3,338 2Q22 3Q22 4Q22 1Q23 2Q23 CRE, OO CRE, NOO C&I C&D Consumer RE Leases & Other

1-4 Family (NOO) 22% Resi/Comm Land Dev. 11% Resi/Comm Land 15% Multifamily 8% CRE (OO) 14% CRE (NOO) 18% Multifamily 19% Hotel & Hospitality 33% Retail Space 14% Office Space 14% 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 which excludes amortized costs $883 Million2 - 26% of Total Loans $397 Million2 - 12% of Total Loans Office Space Portfolio Loan Average: $1.3 Million / 1.75x DCR / 56% LTV

$5,042 $4,605 $4,808 $5,021 $5,712 0.11% 0.10% 0.10% 0.11% 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 2Q22 3Q22 4Q22 1Q23 2Q23 Nonperforming Loans OREO & Other Repos Nonperforming Assets / Total Assets 303% 301% 294% 287% 286% 90% 98% 94% 88% 89% 0% 50% 100% 150% 200% 250% 150% 170% 190% 210% 230% 250% 270% 290% 310% 330% 350% 2Q22 3Q22 4Q22 1Q23 2Q23 CRE Loans / Capital C&D Loans / Capital $6,588 $6,398 $6,744 $8,343 $8,438 0.22% 0.21% 0.21% 0.25% 0.25% - 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 2Q22 3Q22 4Q22 1Q23 2Q23 Total Delinquent & Nonaccrual Loans & Leases Total Delinquent & Nonaccrual Loans & Leases / Total Loans & Leases 0.29% 0.22% 0.22% 0.26% 0.26% -0.09% 0.02% 0.03% 0.03% -0.01% - 0.10% 0.00% 0.10% 0.20% 0.30% 0.40% 2Q22 3Q22 4Q22 1Q23 2Q23 Classified Loans and Leases / Total Loans & Leases Net Chargeoffs $21,938 $22,769 $23,334 $32,279 $32,747 0.73% 0.73% 0.72% 0.98% 0.98% 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 2Q22 3Q22 4Q22 1Q23 2Q23 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

9 DEPOSIT PORTFOLIO: DEFENDING DEPOSIT MARKET SHARE Total Deposits Loans to Deposits Ratio of 79% $ in Millions, unless otherwise indicated Average Total Deposit Cost Deposit Composition Stability in Mix Shift 27% 28% 26% 23% 24% 23% 22% 24% 23% 22% 38% 39% 39% 42% 41% 12% 11% 11% 12% 13% $4,282 $4,280 $4,077 $4,230 $4,200 2Q22 3Q22 4Q22 1Q23 2Q23 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 1.56% 1.89% 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

Commercial 35% Consumer 35% Brokered 10 DEPOSIT GRANULARITY: DIVERSIFIED CLIENT BASE 1) Uninsured deposits includes all deposit balances greater than $250 thousand excluding public funds secured by pledged collateral, reciprocal deposits and brokered CDs divided by total deposits 2) Average account balances exclude reciprocal deposits and brokered CDs; commercial and consumer accounts exclude reciprocal and brokered CD accounts 3) $953 million Includes all public funds including those placed in a reciprocal deposit program 4) Commercial and consumer portfolios exclude deposits from public funds sources and exclude reciprocal deposits and brokered CDs 5) Reciprocal deposits include those utilizing the CDARS and ICS programs. CDARS: Certificate of Deposit Account Registry Service, ICS: IntraFi Cash Service $4.2 Billion 27% ~18 Thousand Uninsured1 : Deposits: Avg. Balance2 : Deposit Portfolio Statistics Deposit Portfolio Segmentation Consumer Accts2 : Commercial Accts2 : Public Funds3 : ~$39 Thousand $953 Million ~68 Thousand

105% 99% Peer Average SMBK 88% 79% Peer Average SMBK 11 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 June 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 $1.7 Billion in Untapped Liquidity Sources $590 Million in On-Balance Sheet Liquidity 1.5x Liquidity to Uninsured Deposit Ratio 1 1 $ in Millions, unless otherwise indicated Total Amount Net Available Used Availability Current On-Balance Sheet: Cash & Cash Equiv. $239 $0 $239 Unpledged Securities 351 0 351 Available Sources of Liquidity: Fed Funds 98 0 98 FHLB 597 4 593 FRB2 378 0 378 HC LoC 35 11 24 Total Liquidity $1,698 $15 $1,683

$434 $169 $3 $25 $20 $43 $45 $64 $33 $- $100 $200 $300 $400 $500 $600 $700 UST/Agency MBS Fixed ARM CMO Fixed CMO Float Agen CMBS Small Bus Municipal Corporate $10 $9 $218 $59 $18 $10 $10 $9 $10 $30 29% 36% 39% 42% 46% $- $50 $100 $150 $200 $250 $300 $350 0% 10% 20% 30% 40% 50% 60% 70% 80% Q3 '23 Q1 '24 Q3 '24 Q1 '25 Q3 '25 Quarterly Principal Cumulative Principal Returned as % of Total 12 SECURITIES DETAIL: STRUCTURED FOR LIQUIDITY $ in Millions, unless otherwise indicated Portfolio Summary Principal Cashflow Schedule ~$300 Million Maturing by Q2 ‘24 Portfolio Mix by Par Value Risk Adverse Portfolio Designed for Liquidity $867 Million Book Value 2.37% Book Yield ($67) Million Unrealized Loss • ($44) Million in Available-for-Sale Securities (AFS) • ($23) Million in Held-to-Maturity (HTM) 4.4 Year Average Life 3.0 Year Effective Duration 68% / 32% (AFS / HTM)

$655 $543 $266 $307 $239 $813 $807 $770 $845 $824 17.0% 16.8% 16.6% 17.7% 17.4% 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 2Q22 3Q22 4Q22 1Q23 2Q23 Cash and Cash Equiv. Securities (AFS/HTM) Securities (AFS/HTM) / Total Assets $33,062 $36,708 $37,612 $35,982 $31,575 $7,229 $6,250 $6,981 $6,925 $7,130 $40,291 $42,958 $44,593 $42,907 $38,705 3.08% 3.29% 3.51% 3.31% 2.93% $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% 2Q22 3Q22 4Q22 1Q23 2Q23 Net Interest Income Operating Noninterest Income Net Interest Margin (FTE) 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 2Q22 3Q22 4Q22 1Q23 2Q23 Cash Yield 0.91% 2.34% 3.81% 4.77% 4.02% Sec. Yield (AFS/HTM)1 1.73% 1.87% 2.15% 2.11% 2.30% Loans (less Accr. & Fees) 4.18% 4.48% 4.81% 5.20% 5.39% Loan Accr. & Fees 0.22% 0.11% 0.24% 0.37% 0.12% Loan Yield (incl. Accr. & Fees) 4.40% 4.59% 5.05% 5.57% 5.51% IE Asset Yield 3.39% 3.79% 4.41% 4.88% 4.82% NIM (FTE) 3.08% 3.29% 3.51% 3.31% 2.93%

$1,965 58% $595 18% $800 24% Fixed Rate LT Variable ST Variable $6,162 , 4.7% $3,705 , 2.8% $(3,531), -2.7% Interest Income % Change Shock -200bps Shock -100bps Shock +100bps $3,821 , 2.9% $2,091 , 1.6% $(1,910), -1.5% 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 6/30/23. 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 • $800 Million Short-Term Variable Rate (1 - 3 Month Reset) • $595 Million Long-Term Variable Rate (> 3 Month Reset) $ in Millions, unless otherwise indicated $ in Thousands, unless otherwise indicated

$7,229 $6,250 $6,981 $6,925 $7,130 2Q22 3Q22 4Q22 1Q23 2Q23 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

64% 63% 61% 64% 71% 2Q22 3Q22 4Q22 1Q23 2Q23 Operating Efficiency Ratio $25,845 $27,143 $27,461 $27,529 $27,410 2Q22 3Q22 4Q22 1Q23 2Q23 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

6.7% 6.5% 7.1% 7.2% 7.3% 2Q22 3Q22 4Q22 1Q23 2Q23 10.0% 9.7% 9.7% 10.0% 10.1% 2Q22 3Q22 4Q22 1Q23 2Q23 7.5% 7.4% 8.0% 7.9% 8.2% 2Q22 3Q22 4Q22 1Q23 2Q23 11.8% 11.4% 11.4% 11.8% 11.9% 2Q22 3Q22 4Q22 1Q23 2Q23 $14.64 $16.82 $17.92 $19.26 $19.09 $19.78 $14.84 $16.80 $17.77 $19.17 $21.18 $21.84 $8. 00 $10. 00 $12. 00 $14. 00 $16. 00 $18. 00 $20. 00 $22. 00 $24. 00 2018Y 2019Y 2020Y 2021Y 2022Y 2Q23 TBV Per Share Adj. TBV Per Share (Ex. AOCI) 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 6/30/23 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 $7.01 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

1Q23 2Q22 ($ in thousands, except per share data) 2Q23 1Q23 2Q22 % Chg. % Chg. Net Interest Income $ 31,575 $ 35,982 $ 33,062 (12%) (4%) Provision for Loan & Lease losses 113 550 1,250 Noninterest Income 7,130 6,925 7,229 3% (1%) Noninterest Expense 27,410 27,529 25,926 (0%) 6% Income Tax Expense 2,346 3,328 2,900 Net Income (GAAP) $ 8,836 $ 11,500 $ 10,215 (23%) (13%) Non-GAAP Reconciliations Noninterest Income - - - Noninterest Expense - - 81 Income Tax Effect Of Adjustments - - (21) Operating Earnings (Non-GAAP) $ 8,836 $ 11,500 $ 10,275 (23%) (14%) Operating PTPP Earnings (Non-GAAP) $ 11,295 $ 15,378 $ 14,446 (27%) (22%) 1Q23 2Q22 Non-GAAP Performance Metrics 2Q23 1Q23 2Q22 % Chg. % Chg. Diluted Operating Earnings Per Share $ 0.52 $ 0.68 $ 0.61 (23%) (14%) Tangible Book Value Per Common Share $ 19.78 $ 19.66 $ 18.69 1% 6% Operating Return on Average Assets 0.75% 0.97% 0.88% Operating PTPP Return on Average Assets 0.96% 1.30% 1.23% Operating Return on Average Tang. Common Equity 10.6% 14.4% 13.1% Operating Efficiency Ratio 70.6% 64.0% 63.9% 2Q23 vs. 2Q23 vs. 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 SECOND QUARTER RESULTS

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 PTPP return on average assets (Non-GAAP) is the annualized operating PTPP 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 2Q23 1Q23 4Q22 3Q22 2Q22 Operating Earnings Net Income (GAAP) $ 8,836 $ 11,500 $ 13,004 $ 11,543 $ 10,215 Noninterest Income: Securities (Gains) Losses - - (144) - - Noninterest Expenses: Merger Related And Restructuring Expenses - - (45) 87 81 Income Taxes: Income Tax Effect Of Adjustments - - 49 (22) (21) Operating Earnings (Non-GAAP) $ 8,836 $ 11,500 $ 12,864 $ 11,608 $ 10,275 Operating Earnings Per Common Share (Non-GAAP): Basic $ 0.53 $ 0.69 $ 0.77 $ 0.69 $ 0.61 Diluted 0.52 0.68 0.76 0.69 0.61 Operating Noninterest Income Noninterest Income (GAAP) $ 7,130 $ 6,925 $ 7,125 $ 6,250 $ 7,229 Securities (Gain) Losses - - (144) - - Operating Noninterest Income (Non-GAAP) $ 7,130 $ 6,925 $ 6,981 $ 6,250 $ 7,229 Operating Noninterest Expense Noninterest Expense (GAAP) $ 27,410 $ 27,529 $ 27,416 $ 27,230 $ 25,926 Merger Related And Restructuring Expenses - - 45 (87) (81) Operating Noninterest Expense (Non-GAAP) $ 27,410 $ 27,529 $ 27,461 $ 27,143 $ 25,845 Operating Revenue Net Interest Income (GAAP) $ 31,575 $ 35,982 $ 37,612 $ 36,708 $ 33,062 Operating Noninterest Income (Non-GAAP) 7,130 6,925 6,981 6,250 7,229 Operating Revenue (Non-GAAP) 38,705 42,907 44,593 42,958 40,291 Operating Pre-Tax Pre-Provison ("PTPP") Earnings Operating Revenue (Non-GAAP) $ 38,705 $ 42,907 $ 44,593 $ 42,958 $ 40,291 Operating Noninterest Expense (Non-GAAP) (27,410) (27,529) (27,461) (27,143) (25,845) Operating PTPP Earnings (Non-GAAP) $ 11,295 $ 15,378 $ 17,132 $ 15,815 $ 14,446 Non-GAAP Return Ratios Operating Return On Average Assets (Non-GAAP)(1) 0.75% 0.97% 1.10% 0.96% 0.88% Operating PTPP Return On Average Assets (Non-GAAP)(2) 0.96% 1.30% 1.46% 1.30% 1.23% Return On Average Tangible Common Equity (Non-GAAP)(3) 10.57% 14.45% 16.65% 14.36% 13.02% Operating Return On Average Shareholders' Equity (Non-GAAP)(4) 7.98% 10.79% 12.15% 10.83% 9.82% Operating Return On Average Tangible Common Equity (Non-GAAP)(5) 10.57% 14.45% 16.47% 14.44% 13.09% Operating Efficiency Ratio Efficiency Ratio (GAAP) 70.82% 64.16% 61.28% 63.39% 64.35% Adjustment For Taxable Equivalent Yields (0.18%) (0.14%) (0.22%) (0.25%) (0.27%) Adjustment For Securities Gains (Losses) - - (0.20%) - - Adjustment For Merger Expenses - - 0.50% (0.21%) (0.20%) Operating Efficiency Ratio (Non-GAAP) 70.64% 64.02% 61.36% 62.93% 63.88%

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 2Q23 1Q23 4Q22 3Q22 2Q22 Tangible Common Equity: Shareholders' Equity (GAAP) $ 444,847 $ 443,399 $ 432,452 $ 414,711 $ 420,427 Less Goodwill And Other Intangible Assets 108,439 109,114 109,772 110,460 104,582 Tangible Common Equity (Non-GAAP) $ 336,408 $ 334,285 $ 322,680 $ 304,251 $ 315,845 Average Tangible Common Equity: Average Shareholders' Equity (GAAP) $ 444,283 $ 432,382 $ 420,037 $ 425,365 $ 419,726 Less Goodwill And Other Intangible Assets 108,851 109,537 110,206 106,483 104,986 Average Tangible Common Equity (Non-GAAP) $ 335,432 $ 322,845 $ 309,831 $ 318,882 $ 314,740 Tangible Book Value Per Common Share: Book Value Per Common Share (GAAP) $ 26.16 $ 26.08 $ 25.59 $ 24.56 $ 24.88 Adjustment Due To Goodwill And Other Intangible Assets (6.38) (6.42) (6.50) (6.54) (6.19) Tangible Book Value Per Common Share (Non-GAAP)(1) $ 19.78 $ 19.66 $ 19.09 $ 18.02 $ 18.69 Tangible Common Equity To Tangible Assets: Total Assets $ 4,745,800 $ 4,769,805 $ 4,637,498 $ 4,796,911 $ 4,788,113 Less Goodwill And Other Intangibles 108,439 109,114 109,772 110,460 104,582 Tangible Assets (Non-GAAP) $ 4,637,361 $ 4,660,691 $ 4,527,726 $ 4,686,451 $ 4,683,531 Tangible Common Equity To Tangible Assets (Non-GAAP): 7.25% 7.17% 7.13% 6.49% 6.74% 2Q23 1Q23 4Q22 3Q22 2Q22 Tangible Common Equity (Excluding AOCI): Shareholders' Equity (GAAP) $ 444,847 $ 443,399 $ 432,452 $ 414,711 $ 420,427 Less Goodwill And Other Intangible Assets 108,439 109,114 109,772 110,460 104,582 Tangible Common Equity (Non-GAAP) $ 336,408 $ 334,285 $ 322,680 $ 304,251 $ 315,845 Less Adjustment Due to AOCI (Loss) (35,017) (28,620) (35,324) (40,807) (24,648) Tangible Common Equity (Excl. AOCI) (Non-GAAP) $ 371,425 $ 362,905 $ 358,004 $ 345,058 $ 340,493 Tangible Book Value Per Common Share (Excluding AOCI): Book Value Per Common Share (GAAP) $ 26.16 $ 26.08 $ 25.59 $ 24.56 $ 24.88 Adjustment Due To Goodwill And Other Intangible Assets (6.38) (6.42) (6.50) (6.54) (6.19) Tangible Book Value Per Common Share (Non-GAAP)(1) $ 19.78 $ 19.66 $ 19.09 $ 18.02 $ 18.69 Less Adjustment Due to AOCI (Loss) (2.06) (1.68) (2.09) (2.42) (1.46) Tangible Book Value Per Common Share (Excl. AOCI) (Non-GAAP)(1)(2) $ 21.84 $ 21.34 $ 21.18 $ 20.43 $ 20.15

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	Jul. 24, 2023
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Jul. 24, 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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