SmartFinancial Announces Results for the First Quarter 2026

KNOXVILLE, Tenn.--(BUSINESS WIRE)--SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NYSE: SMBK), today announced net income of $13.7 million, or $0.81 per diluted common share, for the first quarter of 2026, compared to net income of $11.3 million, or $0.67 per diluted common share, for the first quarter of 2025, and compared to prior quarter net income of $13.7 million, or $0.81 per diluted common share.

Highlights for the First Quarter of 2026

• Operating earnings¹ of $13.7 million, or $0.81 per diluted common share
• Net organic loan and lease growth of $155 million with 14% annualized quarter-over-quarter increase
• Deposit growth, excluding brokered deposits, of $95 million or 7% annualized quarter-over-quarter
• Net interest margin, fully tax equivalent basis (“FTE”) expanded to 3.48%, reflecting lower deposit and funding costs
• Allowance for credit losses (“ACL”) model change resulting in ACL to total loans and leases increase of 3bps to 0.97%
• Nashville expansion with Director of Private Banking and Wealth Management and additional commercial banker hires

___________________________________

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

Billy Carroll, President & CEO, stated: "As anticipated, 2026 began with strong momentum due to the robust business pipeline established prior to year end and the diligent work of our associates in securing new business. Quarterly net balance loan growth of $155 million while core deposits increased by $95 million, surpassing initial forecasts. Deposit growth was particularly notable, especially after accounting for a projected $68 million seasonal withdrawal from a significant client relationship. Operating earnings per share were solid at $0.81, supported by an expansion of over 10 basis points in net interest margin quarter-over-quarter and disciplined expense management. Additionally, we maintained our quarter-over-quarter earnings per share despite a higher provision associated with a change in our ACL model, which we expect to normalize next quarter. Overall, this represents an excellent start to the year, made possible by the dedicated efforts of our over 580 associates. Thank you all for your continued commitment and positivity!”

SmartFinancial's Chairman, Miller Welborn, concluded: “The Board is grateful to all our associates for delivering a strong start to 2026, which is a reflection of the team’s hard work and dedication. We appreciate the energy our teams are bringing, not only to our strategic initiatives, but also to the many operational and efficiency-enhancing projects underway. We truly value these contributions and are excited about the benefits these efforts will deliver for our Company and our stakeholders. Looking ahead, we remain confident in our strategic direction and focused on executing our priorities to build on this momentum through the remainder of 2026.”

Net Interest Income and Net Interest Margin

Net interest income was $45.9 million for the first quarter of 2026, compared to $45.1 million for the prior quarter. Average earning assets totaled $5.39 billion, an increase of $47.1 million from the prior quarter. The balances of average earnings assets increased quarter-over-quarter, primarily from an increase in average loans and leases of $138.7 million and average securities of $5.7 million, offset by a decrease in average federal funds sold and other earning assets of $97.3 million. Average interest-bearing liabilities increased by $66.9 million from the prior quarter, primarily attributable to an increase in average interest-bearing deposits of $66.8 million.

The tax equivalent net interest margin was 3.48% for the first quarter of 2026, up from 3.38% for the prior quarter. This increase is primarily related to declines in deposit costs, outpacing a modest decrease in asset yields. The yield on loans and leases, excluding loan fees, FTE was 5.93% for the first quarter of 2026, compared to 6.00% for the prior quarter.

The cost of total deposits for the first quarter of 2026 was 2.12%, compared to 2.26% in the prior quarter. The cost of interest-bearing liabilities was 2.72% for the first quarter of 2026, compared to 2.90% in the prior quarter. The cost of average interest-bearing deposits was 2.60% for the first quarter of 2026, compared to 2.79% for the prior quarter, a decrease of 19 basis points.

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

	Three Months Ended
	Mar		Dec		Increase
Selected Interest Rates and Yields	2026		2025		(Decrease)
Yield on loans and leases, excluding loan fees, FTE	5.93	%	6.00	%	(0.07	)%
Yield on loans and leases, FTE	6.02	%	6.08	%	(0.06	)%
Yield on earning assets, FTE	5.62	%	5.65	%	(0.03	)%
Cost of interest-bearing deposits	2.60	%	2.79	%	(0.19	)%
Cost of total deposits	2.12	%	2.26	%	(0.14	)%
Cost of interest-bearing liabilities	2.72	%	2.90	%	(0.18	)%
Net interest margin, FTE	3.48	%	3.38	%	0.10	%

Allowance for Credit Losses on Loans and Leases and Credit Quality

At March 31, 2026, the allowance for credit losses was $44.0 million. During the quarter, changes were made to SmartBank's ACL loss model, which included the adoption of a discounted cash flow methodology, refinements to key assumptions and qualitative factors, and improved use of macroeconomic drivers. As a result, the allowance for credit losses to total loans and leases rose to 0.97% as of March 31, 2026, up from 0.94% as of December 31, 2025.

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

	Three Months Ended
	Mar			Dec			Increase
Allowance for Credit Losses on Loans and Leases Rollforward	2026			2025			(Decrease)
Beginning balance	$	40,906		$	39,074		$	1,832
Charge-offs		(229	)		(1,993	)		1,764
Recoveries		60			101			(41	)
Net charge-offs		(169	)		(1,892	)		1,723
Provision for credit losses ^(1)		3,213			3,724			(511	)
Ending balance	$	43,950		$	40,906		$	3,044
Allowance for credit losses to total loans and leases		0.97	%		0.94	%		0.03	%

^(1)	The current quarter-ended and prior quarter-ended excludes an unfunded commitments provision of $926 thousand and $408 thousand, respectively. At March 31, 2026, and December 31, 2025, the unfunded commitment liability totaled $4.5 million and $3.6 million, respectively.

Nonperforming loans and leases as a percentage of total loans and leases was 0.27% as of March 31, 2026, and 0.22% as of December 31, 2025. 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 0.25% as of March 31, 2026, and 0.22% as of December 31, 2025.

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

	Three Months Ended
	Mar			Dec			Increase
Credit Quality	2026			2025			(Decrease)
Nonaccrual loans and leases	$	12,257		$	9,442		$	2,815
Loans and leases past due 90 days or more and still accruing		-			-			-
Total nonperforming loans and leases		12,257			9,442			2,815
Other real estate owned		-			-			-
Other repossessed assets		2,798			3,248			(450	)
Total nonperforming assets	$	15,055		$	12,690		$	2,365
Nonperforming loans and leases to total loans and leases		0.27	%		0.22	%		0.05	%
Nonperforming assets to total assets		0.25	%		0.22	%		0.03	%

Noninterest Income

Noninterest income decreased $278 thousand to $7.9 million for the first quarter of 2026, compared to $8.2 million for the prior quarter. The first quarter decrease was primarily attributable to the reduction in capital markets’ income included in other noninterest income.

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

	Three Months Ended
	Mar		Dec		Increase
Noninterest Income	2026		2025		(Decrease)
Service charges on deposit accounts	$	1,853	$	1,828	$	25
Gain on sale of securities, net		1		-		1
Mortgage banking income		760		837		(77	)
Investment services		1,796		1,683		113
Interchange and debit card transaction fees		1,418		1,375		43
Other		2,113		2,496		(383	)
Total noninterest income	$	7,941	$	8,219	$	(278	)

Noninterest Expense

Noninterest expense increased $444 thousand to $32.9 million for the first quarter of 2026, compared to $32.5 million for the prior quarter. The first quarter’s increase was primarily attributable to an increase in salaries and employee benefits and other expenses, offset by a decrease in FDIC insurance expense.

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

	Three Months Ended
	Mar		Dec		Increase
Noninterest Expense	2026		2025		(Decrease)
Salaries and employee benefits	$	20,414	$	19,917	$	497
Occupancy and equipment		3,344		3,388		(44	)
FDIC insurance		750		1,025		(275	)
Other real estate and loan related expenses		792		858		(66	)
Advertising and marketing		387		393		(6	)
Data processing and technology		2,436		2,413		23
Professional services		1,193		1,132		61
Amortization of intangibles		457		479		(22	)
Restructuring expenses		-		16		(16	)
Other		3,142		2,850		292
Total noninterest expense	$	32,915	$	32,471	$	444

Income Tax Expense

Income tax expense was $3.1 million for the first quarter of 2026, an increase of $76 thousand, compared to $3.0 million for the prior quarter.

Balance Sheet Trends

Total assets at March 31, 2026, were $5.91 billion compared to $5.86 billion at December 31, 2025. The $46.9 million increase is primarily attributable to increases in loans and leases of $154.8 million, securities of $11.0 million, premises and equipment of $5.0 million, and bank owned life insurance of $913 thousand, offset by a decrease in cash and cash equivalents of $118.3 million, loans held for sale of $3.6 million and an increase in provision of credit losses of $3.0 million.

Total liabilities were $5.35 billion at March 31, 2026, compared to $5.31 billion at December 31, 2025, an increase of $37.2 million. Total deposits increased $43.4 million, which was driven primarily by increases in money market deposits of $182.3 million, other time deposits of $16.1 million, and interest-bearing demand deposits of $8.6 million, offset by a decline in noninterest demand deposits of $111.6 million and brokered deposits of $51.9 million. In addition, other liabilities decreased by $6.0 million.

Shareholders' equity at March 31, 2026, totaled $562.1 million, an increase of $9.7 million, from December 31, 2025. The increase in shareholders' equity was primarily driven by net income of $13.7 million for the three months ending March 31, 2026, offset by an increase of $3.0 million in accumulated other comprehensive loss and dividends paid of $1.4 million. Tangible book value per common share¹ was $27.33 at March 31, 2026, compared to $26.85 at December 31, 2025. Tangible common equity¹ as a percentage of tangible assets¹ was 8.04% at March 31, 2026, compared with 7.93% at December 31, 2025.

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

	Mar		Dec		Increase
Selected Balance Sheet Information	2026		2025		(Decrease)
Total assets	$	5,907,685	$	5,860,810	$	46,875
Total liabilities		5,345,524		5,308,318		37,206
Total equity		562,161		552,492		9,669
Securities		673,051		662,003		11,048
Loans and leases		4,518,391		4,363,582		154,809
Deposits		5,196,236		5,152,789		43,447

Conference Call Information

SmartFinancial issued this earnings release for the first quarter of 2026 on Monday, April 20, 2026, and will host a conference call on Monday, April 20, 2026, at 10:00 a.m. ET. To access this interactive teleconference, dial [phone] or [phone] and enter the access code, 156265. A replay of the conference call will be available through July 19, 2026, by dialing [phone] or [phone] and enter the access code, 215769. 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.

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

About SmartFinancial, Inc.

SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with branches across Tennessee, Alabama, and Florida and loan servicing centers in Tennessee and Georgia. 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.

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 (“Non-GAAP”) 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 and ratios derived therefrom in its analysis of the Company's performance, including:

(1) Operating earnings	(10) Operating return on average assets
(2) Operating noninterest income	(11) Operating PPNR return on average assets
(3) Operating noninterest expense	(12) Operating return on average shareholders’ equity
(4) Operating pre-provision net revenue (“PPNR”) earnings	(13) Return on average tangible common equity
(5) Tangible common equity	(14) Operating return on average tangible common equity
(6) Average tangible common equity	(15) Operating noninterest income/average assets
(7) Tangible book value per common share	(16) Operating noninterest expense/average assets
(8) Tangible assets	(17) Tangible common equity to tangible assets
(9) Operating efficiency ratio

Operating earnings, operating PPNR earnings, operating noninterest income and operating noninterest expense exclude non-operating related income and expense items from net income, noninterest income and noninterest expense, respectively. Tangible common equity and average tangible common equity exclude goodwill and other intangible assets from shareholders' equity and average shareholders' equity, respectively. Tangible book value per common share is tangible common equity divided by common shares outstanding. Tangible assets excludes goodwill and other intangibles from total assets. Operating efficiency ratio is the quotient of operating noninterest expense divided by the sum of net interest income adjusted for taxable equivalent yields plus operating noninterest income. A detailed reconciliation of these items and the ratios derived therefrom is available in the Non-GAAP reconciliations.

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 also believes these Non-GAAP financial measures 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)	general risks related to our disposition, merger and acquisition activity, including risks associated with our pursuit of future acquisitions or sales;
(4)	changes in management’s plans for the future;
(5)	prevailing, or changes in, economic or political conditions (including those resulting from the current administration and Congress), 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;
(6)	our ability to anticipate interest rate changes and manage interest rate risk (including the impact of higher interest rates on macroeconomic conditions, competition, and the cost of doing business and the impact of interest rate fluctuations on our financial projections, models and guidance);
(7)	tariffs or trade wars (including reduced consumer spending, lower economic growth or recession, reduced demand for U.S. exports, disruptions to supply chains, and decreased demand for other banking products and services);
(8)	uncertain duration of trade conflicts and the magnitude of the impact that proposed tariffs may have on our customers’ businesses;
(9)	increased technology and cybersecurity risks, including generative artificial intelligence risks;
(10)	the impact of a failure in, or breach of, our operational or security systems or infrastructure, or those of third parties with whom we do business, including as a result of cyber-attacks or an increase in the incidence or severity of fraud, illegal payments, security breaches or other illegal acts impacting us and our customers;
(11)	credit risk associated with our lending activities;
(12)	changes in loan demand, real estate values, or competition;
(13)	developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance;
(14)	changes in accounting principles, policies, or guidelines;
(15)	changes in applicable laws, rules, or regulations;
(16)	adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions;
(17)	potential impacts of any adverse developments in the banking industry, including the impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto;
(18)	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;
(19)	the effects of war or other conflicts;
(20)	the impact of government actions or inactions, including a prolonged shutdown of the federal government; and
(21)	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
	Mar			Dec			Sep			Jun			Mar
	2026			2025			2025			2025			2025
Assets:
Cash and cash equivalents	$	346,071		$	464,417		$	557,127		$	365,096		$	422,984
Securities available-for-sale, at fair value		552,083			539,882			511,095			502,150			499,445
Securities held-to-maturity, at amortized cost		120,968			122,121			123,364			124,520			125,576
Other investments		16,597			16,441			14,888			14,713			14,371
Loans held for sale		7,277			10,865			9,855			5,484			3,843
Loans and leases		4,518,391			4,363,582			4,222,369			4,124,062			3,992,207
Less: Allowance for credit losses		(43,950	)		(40,906	)		(39,074	)		(39,776	)		(38,175	)
Loans and leases, net		4,474,441			4,322,676			4,183,295			4,084,286			3,954,032
Premises and equipment, net		93,360			88,387			89,250			90,204			90,708
Other real estate owned		—			—			—			144			144
Goodwill and other intangibles, net		94,871			95,328			95,807			103,588			104,154
Bank owned life insurance		120,438			119,525			118,610			117,697			116,805
Other assets		81,579			81,168			81,692			82,981			79,155
Total assets	$	5,907,685		$	5,860,810		$	5,784,983		$	5,490,863		$	5,411,217
Liabilities:
Deposits:
Noninterest-bearing demand	$	951,366		$	1,062,918		$	931,477		$	906,965		$	884,294
Interest-bearing demand		954,292			945,716			929,454			843,820			885,063
Money market and savings		2,455,945			2,273,612			2,218,313			2,124,623			2,131,828
Time deposits		834,633			870,543			971,653			996,712			907,474
Total deposits		5,196,236			5,152,789			5,050,897			4,872,120			4,808,659
Borrowings		3,178			3,009			1,301			6,966			7,610
Subordinated debt		98,733			98,662			138,604			39,726			39,705
Other liabilities		47,377			53,858			55,699			52,924			49,302
Total liabilities		5,345,524			5,308,318			5,246,501			4,971,736			4,905,276
Shareholders' Equity:
Common stock		17,098			17,029			17,028			17,018			17,018
Additional paid-in capital		296,284			295,950			295,742			295,209			294,736
Retained earnings		261,032			248,719			236,380			224,061			213,721
Accumulated other comprehensive loss		(12,366	)		(9,319	)		(10,781	)		(17,274	)		(19,647	)
Total shareholders' equity attributable to SmartFinancial Inc. and Subsidiary		562,048			552,379			538,369			519,014			505,828
Non-controlling interest - preferred stock of subsidiary		113			113			113			113			113
Total shareholders' equity		562,161			552,492			538,482			519,127			505,941
Total liabilities & shareholders' equity	$	5,907,685		$	5,860,810		$	5,784,983		$	5,490,863		$	5,411,217

SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands except share and per share data)
	Three Months Ended
	Mar		Dec		Sep			Jun			Mar
	2026		2025		2025			2025			2025
Interest income:
Loans and leases, including fees	$	65,638	$	65,573	$	64,282		$	61,049		$	57,762
Investment securities:
Taxable		5,492		5,662		4,876			4,848			4,775
Tax-exempt		555		536		441			395			354
Federal funds sold and other earning assets		2,585		3,854		4,919			3,161			3,485
Total interest income		74,270		75,625		74,518			69,453			66,376
Interest expense:
Deposits		26,529		28,646		30,464			28,301			27,335
Borrowings		1		1		14			70			70
Subordinated debt		1,864		1,884		1,610			739			733
Total interest expense		28,394		30,531		32,088			29,110			28,138
Net interest income		45,876		45,094		42,430			40,343			38,238
Provision for credit losses		4,139		4,132		227			2,411			979
Net interest income after provision for credit losses		41,737		40,962		42,203			37,932			37,259
Noninterest income:
Service charges on deposit accounts		1,853		1,828		1,831			1,766			1,736
Gain (loss) on sale of securities, net		1		—		(3,715	)		(4	)		—
Mortgage banking		760		837		709			633			493
Investment services		1,796		1,683		1,690			1,440			1,769
Insurance commissions		—		—		1,049			1,554			1,412
Interchange and debit card transaction fees		1,418		1,375		1,338			1,342			1,220
Gain on sale of SBK Insurance ("SBKI")		—		—		3,955			—			—
Other		2,113		2,496		1,780			2,167			1,967
Total noninterest income		7,941		8,219		8,637			8,898			8,597
Noninterest expense:
Salaries and employee benefits		20,414		19,917		19,544			19,602			19,234
Occupancy and equipment		3,344		3,388		3,468			3,432			3,397
FDIC insurance		750		1,025		1,025			992			960
Other real estate and loan related expense		792		858		969			757			658
Advertising and marketing		387		393		454			390			382
Data processing and technology		2,436		2,413		2,594			2,651			2,657
Professional services		1,193		1,132		1,123			1,153			1,368
Amortization of intangibles		457		479		536			566			569
Restructuring expenses		—		16		1,310			—			—
Other		3,142		2,850		2,846			3,026			3,071
Total noninterest expense		32,915		32,471		33,869			32,569			32,296
Income before income taxes		16,763		16,710		16,971			14,261			13,560
Income tax expense		3,083		3,007		3,285			2,556			2,306
Net income	$	13,680	$	13,703	$	13,686		$	11,705		$	11,254
Earnings per common share:
Basic	$	0.81	$	0.82	$	0.82		$	0.70		$	0.67
Diluted	$	0.81	$	0.81	$	0.81		$	0.69		$	0.67
Weighted average common shares outstanding:
Basic		16,821,486		16,788,065		16,781,236			16,778,988			16,767,535
Diluted		16,935,530		16,922,482		16,908,920			16,878,736			16,872,097

SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS
	Three Months Ended
	March 31, 2026						December 31, 2025						March 31, 2025
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Loans and leases, including fees^1	$	4,434,181	$	65,855	6.02	%	$	4,295,446	$	65,807	6.08	%	$	3,941,295	$	58,008	5.97	%
Taxable securities		584,608		5,492	3.81	%		580,256		5,662	3.87	%		555,914		4,775	3.48	%
Tax-exempt securities^2		80,535		703	3.54	%		79,149		678	3.40	%		63,085		448	2.88	%
Federal funds sold and other earning assets		286,539		2,585	3.66	%		383,882		3,854	3.98	%		306,966		3,485	4.60	%
Total interest-earning assets		5,385,863		74,635	5.62	%		5,338,733		76,001	5.65	%		4,867,260		66,716	5.56	%
Noninterest-earning assets		397,680						400,618						405,860
Total assets	$	5,783,543					$	5,739,351					$	5,273,120
Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits	$	955,450		3,931	1.67	%	$	902,505		3,817	1.68	%	$	846,823		3,743	1.79	%
Money market and savings deposits		2,337,523		15,236	2.64	%		2,254,175		16,017	2.82	%		2,064,134		15,065	2.96	%
Time deposits		841,515		7,362	3.55	%		911,044		8,812	3.84	%		880,933		8,527	3.93	%
Total interest-bearing deposits		4,134,488		26,529	2.60	%		4,067,724		28,646	2.79	%		3,791,890		27,335	2.92	%
Borrowings		3,549		1	0.11	%		3,024		1	0.13	%		8,220		70	3.45	%
Subordinated debt		98,692		1,864	7.66	%		99,062		1,884	7.55	%		39,692		733	7.49	%
Total interest-bearing liabilities		4,236,729		28,394	2.72	%		4,169,810		30,531	2.90	%		3,839,802		28,138	2.97	%
Noninterest-bearing deposits		931,863						964,612						884,078
Other liabilities		54,603						58,440						51,260
Total liabilities		5,223,195						5,192,862						4,775,140
Shareholders' equity		560,348						546,489						497,980
Total liabilities and shareholders' equity	$	5,783,543					$	5,739,351					$	5,273,120
Net interest income, taxable equivalent			$	46,241					$	45,470					$	38,578
Interest rate spread					2.90	%					2.74	%					2.59	%
Tax equivalent net interest margin					3.48	%					3.38	%					3.21	%
Percentage of average interest-earning assets to average interest-bearing liabilities					127.12	%					128.03	%					126.76	%
Percentage of average equity to average assets					9.69	%					9.52	%					9.44	%
^1Yields computed on tax-exempt loans on a tax equivalent basis include $218 thousand, $235 thousand, and $246 thousand of taxable equivalent income for the quarters ended March 31, 2026, December 31, 2025, and March 31, 2025, respectively.
^2Yields computed on tax-exempt instruments on a tax equivalent basis include $148 thousand, $142 thousand, and $94 thousand of taxable equivalent income for the quarters ended March 31, 2026. December 31, 2025, and March 31 2025, respectively.

SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands)
	As of and for The Three Months Ended
	Mar			Dec			Sep			Jun			Mar
	2026			2025			2025			2025			2025
Composition of Loans and Leases:
Commercial real estate:
Non-owner occupied	$	1,263,455		$	1,196,758		$	1,136,080		$	1,114,133		$	1,117,392
Owner occupied		1,033,211			1,022,871			1,012,088			958,989			885,396
Commercial real estate, total		2,296,666			2,219,629			2,148,168			2,073,122			2,002,788
Consumer real estate		851,484			834,626			811,150			803,270			784,602
Construction & land development		478,301			419,176			390,691			391,155			357,393
Commercial & industrial		819,875			817,595			794,751			778,754			768,454
Leases		54,296			55,422			60,301			62,495			64,208
Consumer and other		17,769			17,134			17,308			15,266			14,762
Total loans and leases	$	4,518,391		$	4,363,582		$	4,222,369		$	4,124,062		$	3,992,207
Asset Quality and Additional Loan Data:
Nonperforming loans and leases	$	12,257		$	9,442		$	10,099		$	7,921		$	7,807
Other real estate owned		—			—			—			144			144
Other repossessed assets		2,798			3,248			2,444			2,397			2,414
Total nonperforming assets	$	15,055		$	12,690		$	12,543		$	10,462		$	10,365
Modified loans and leases^1 not included in nonperforming loans and leases	$	208		$	219		$	1,783		$	1,660		$	1,978
Net charge-offs to average loans and leases (annualized)		0.02	%		0.18	%		0.10	%		0.01	%		0.01	%
Allowance for credit losses to total loans and leases		0.97	%		0.94	%		0.93	%		0.96	%		0.96	%
Nonperforming loans and leases to total loans and leases		0.27	%		0.22	%		0.24	%		0.19	%		0.20	%
Nonperforming assets to total assets		0.25	%		0.22	%		0.22	%		0.19	%		0.19	%
Capital Ratios:
Equity to Assets		9.52	%		9.43	%		9.31	%		9.45	%		9.35	%
Tangible common equity to tangible assets (Non-GAAP)^2		8.04	%		7.93	%		7.78	%		7.71	%		7.57	%
SmartFinancial, Inc.^3
Tier 1 leverage		8.41	%		8.30	%		8.21	%		8.25	%		8.16	%
Common equity Tier 1		9.77	%		9.83	%		9.85	%		9.67	%		9.79	%
Tier 1 capital		9.77	%		9.83	%		9.85	%		9.67	%		9.79	%
Total capital		12.68	%		12.71	%		13.31	%		11.04	%		11.18	%
SmartBank^3
Tier 1 leverage		9.88	%		9.71	%		9.59	%		8.88	%		8.76	%
Common equity Tier 1		11.47	%		11.51	%		11.56	%		10.41	%		10.51	%
Tier 1 capital		11.47	%		11.51	%		11.56	%		10.41	%		10.51	%
Total capital		12.37	%		12.32	%		12.37	%		11.25	%		11.35	%
^1Borrowers that have experienced financial difficulty. Effective as of December 31, 2025, the Call Report instructions were changed for institutions to report loan modifications to borrowers experiencing financial difficulty for a 12-month period after the modification. This change is reflected in the December 31, 2025, information and going forward.
^2Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures.
^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
	Three Months Ended
	Mar			Dec			Sep			Jun			Mar
	2026			2025			2025			2025			2025
Selected Performance Ratios (Annualized):
Return on average assets		0.96	%		0.95	%		0.96	%		0.88	%		0.87	%
Return on average shareholders' equity		9.90	%		9.95	%		10.33	%		9.19	%		9.17	%
Return on average tangible common equity^1		11.93	%		12.06	%		12.79	%		11.53	%		11.60	%
Noninterest income / average assets		0.56	%		0.57	%		0.61	%		0.67	%		0.66	%
Noninterest expense / average assets		2.31	%		2.24	%		2.38	%		2.44	%		2.48	%
Efficiency ratio		61.16	%		60.91	%		66.32	%		66.14	%		68.96	%
Operating Selected Performance Ratios (Annualized):
Operating return on average assets^1		0.96	%		0.95	%		1.02	%		0.88	%		0.87	%
Operating PPNR return on average assets^1		1.47	%		1.44	%		1.29	%		1.25	%		1.12	%
Operating return on average shareholders' equity^1		9.90	%		9.96	%		10.92	%		9.19	%		9.17	%
Operating return on average tangible common equity^1		11.93	%		12.07	%		13.53	%		11.53	%		11.60	%
Operating efficiency ratio^1		60.75	%		60.45	%		63.61	%		65.66	%		68.46	%
Operating noninterest income / average assets^1		0.56	%		0.57	%		0.59	%		0.67	%		0.66	%
Operating noninterest expense / average assets^1		2.31	%		2.24	%		2.29	%		2.44	%		2.48	%
Selected Interest Rates and Yields:
Yield on loans and leases, excluding loan fees, FTE		5.93	%		6.00	%		6.05	%		5.99	%		5.88	%
Yield on loans and leases, FTE		6.02	%		6.08	%		6.14	%		6.07	%		5.97	%
Yield on earning assets, FTE		5.62	%		5.65	%		5.68	%		5.65	%		5.56	%
Cost of interest-bearing deposits		2.60	%		2.79	%		2.98	%		2.95	%		2.92	%
Cost of total deposits		2.12	%		2.26	%		2.44	%		2.39	%		2.37	%
Cost of interest-bearing liabilities		2.72	%		2.90	%		3.07	%		2.99	%		2.97	%
Net interest margin, FTE		3.48	%		3.38	%		3.25	%		3.29	%		3.21	%
Per Common Share:
Net income, basic	$	0.81		$	0.82		$	0.82		$	0.70		$	0.67
Net income, diluted		0.81			0.81			0.81			0.69			0.67
Operating earnings, basic^1		0.81			0.82			0.86			0.70			0.67
Operating earnings, diluted^1		0.81			0.81			0.86			0.69			0.67
Book value per common share		32.88			32.44			31.62			30.51			29.73
Tangible book value per common share^1		27.33			26.85			26.00			24.42			23.61
Common shares outstanding		17,098,473			17,029,317			17,028,001			17,017,547			17,017,547
^1 Non-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
	Mar			Dec			Sep			Jun			Mar
	2026			2025			2025			2025			2025
Operating Earnings:
Net income (GAAP)	$	13,680		$	13,703		$	13,686		$	11,705		$	11,254
Noninterest income:
Securities (gains) losses, net		(1	)		—			3,715			4			—
Gain on sale of SBKI		—			—			(3,955	)		—			—
Noninterest expenses:
Restructuring expenses		—			16			1,310			—			—
Income taxes:
Income tax effect of adjustments		—			(4	)		(276	)		(1	)		—
Operating earnings (Non-GAAP)	$	13,679		$	13,715		$	14,480		$	11,708		$	11,254
Operating earnings per common share (Non-GAAP):
Basic	$	0.81		$	0.82		$	0.86		$	0.70		$	0.67
Diluted		0.81			0.81			0.86			0.69			0.67
Operating Noninterest Income:
Noninterest income (GAAP)	$	7,941		$	8,219		$	8,637		$	8,898		$	8,597
Securities (gains) losses, net		(1	)		—			3,715			4			—
Gain on sale of SBKI		—			—			(3,955	)		—			—
Operating noninterest income (Non-GAAP)	$	7,940		$	8,219		$	8,397		$	8,902		$	8,597
Operating noninterest income (Non-GAAP)/average assets^1		0.56	%		0.57	%		0.59	%		0.67	%		0.66	%
Operating Noninterest Expense:
Noninterest expense (GAAP)	$	32,915		$	32,471		$	33,869		$	32,569		$	32,296
Restructuring expenses		—			(16	)		(1,310	)		—			—
Operating noninterest expense (Non-GAAP)	$	32,915		$	32,455		$	32,559		$	32,569		$	32,296
Operating noninterest expense (Non-GAAP)/average assets^2		2.31	%		2.24	%		2.29	%		2.44	%		2.48	%
Operating Pre-provision Net revenue ("PPNR") Earnings:
Net interest income (GAAP)	$	45,876		$	45,094		$	42,430		$	40,343		$	38,238
Operating noninterest income (Non-GAAP)		7,940			8,219			8,397			8,902			8,597
Operating noninterest expense (Non-GAAP)		(32,915	)		(32,455	)		(32,559	)		(32,569	)		(32,296	)
Operating PPNR earnings (Non-GAAP)	$	20,901		$	20,858		$	18,268		$	16,676		$	14,539
Non-GAAP Return Ratios:
Operating return on average assets (Non-GAAP)^3		0.96	%		0.95	%		1.02	%		0.88	%		0.87	%
Operating PPNR return on average assets (Non-GAAP)^4		1.47	%		1.44	%		1.29	%		1.25	%		1.12	%
Return on average tangible common equity (Non-GAAP)^5		11.93	%		12.06	%		12.79	%		11.53	%		11.60	%
Operating return on average shareholders' equity (Non-GAAP)^6		9.90	%		9.96	%		10.92	%		9.19	%		9.17	%
Operating return on average tangible common equity (Non-GAAP)^7		11.93	%		12.07	%		13.53	%		11.53	%		11.60	%
Operating Efficiency Ratio:
Efficiency ratio (GAAP)		61.16	%		60.91	%		66.32	%		66.14	%		68.96	%
Adjustment for taxable equivalent yields		(0.41	)%		(0.43	)%		(0.47	)%		(0.47	)%		(0.50	)%
Adjustment for securities gains (losses)		—	%		—	%		(4.50	)%		(0.01	)%		—	%
Adjustment for sale of SBKI		—	%		—	%		5.57	%		—	%		—	%
Adjustment for restructuring cost		—	%		(0.02	)%		(3.31	)%		—	%		—	%
Operating efficiency ratio (Non-GAAP)		60.75	%		60.45	%		63.61	%		65.66	%		68.46	%
^1Operating noninterest income (Non-GAAP) is annualized and divided by average assets.
^2Operating noninterest expense (Non-GAAP) is annualized and divided by average assets.
^3Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets.
^4Operating PPNR return on average assets (Non-GAAP) is the annualized operating PPNR earnings (Non-GAAP) divided by average assets.
^5Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP).
^6Operating return on average shareholders’ equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average equity.
^7Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP).

SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) NON-GAAP RECONCILIATIONS
	Three Months Ended
	Mar			Dec			Sep			Jun			Mar
	2026			2025			2025			2025			2025
Tangible Common Equity:
Shareholders' equity (GAAP)	$	562,161		$	552,492		$	538,482		$	519,127		$	505,941
Less goodwill and other intangible assets		94,871			95,328			95,807			103,588			104,154
Tangible common equity (Non-GAAP)	$	467,290		$	457,164		$	442,675		$	415,539		$	401,787
Average Tangible Common Equity:
Average shareholders' equity (GAAP)	$	560,348		$	546,489		$	525,829		$	511,067		$	497,980
Less average goodwill and other intangible assets		95,145			95,619			101,326			103,936			104,504
Average tangible common equity (Non-GAAP)	$	465,203		$	450,870		$	424,503		$	407,131		$	393,476
Tangible Book Value per Common Share:
Book value per common share (GAAP)	$	32.88		$	32.44		$	31.62		$	30.51		$	29.73
Adjustment due to goodwill and other intangible assets		(5.55	)		(5.59	)		(5.63	)		(6.09	)		(6.12	)
Tangible book value per common share (Non-GAAP)^1	$	27.33		$	26.85		$	26.00		$	24.42		$	23.61
Tangible Common Equity to Tangible Assets:
Total Assets (GAAP)	$	5,907,685		$	5,860,810		$	5,784,983		$	5,490,863		$	5,411,217
Less goodwill and other intangibles		94,871			95,328			95,807			103,588			104,154
Tangible Assets (Non-GAAP)	$	5,812,814		$	5,765,482		$	5,689,176		$	5,387,275		$	5,307,063
Tangible common equity to tangible assets (Non-GAAP)		8.04	%		7.93	%		7.78	%		7.71	%		7.57	%
^1Tangible book value per share (Non-GAAP) is computed by dividing total shareholders’ equity, less goodwill and other intangible assets, by common shares outstanding.