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SmartFinancial Announces Results for the Fourth Quarter 2024

1. Net income increased to $9.6 million from $6.2 million year-over-year. 2. Loan and lease growth reached $189 million, indicating strong demand. 3. Credit quality remains solid with nonperforming assets at 0.19%. 4. Net interest margin improved to 3.24%, reflecting better yield management. 5. The Board declared a cash dividend of $0.08 per share.

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Strong earnings growth and solid loan growth are positive signals. Similar past performances have led to stock price increases.

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KNOXVILLE, Tenn.--(BUSINESS WIRE)--SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NYSE: SMBK), today announced net income of $9.6 million, or $0.57 per diluted common share, for the fourth quarter of 2024, compared to net income of $6.2 million, or $0.37 per diluted common share, for the fourth quarter of 2023, and compared to prior quarter net income of $9.1 million, or $0.54 per diluted common share. Operating earnings1, which excludes non-recurring income, net of tax adjustments, totaled $9.6 million, or $0.57 per diluted common share, in the fourth quarter of 2024, compared to $6.9 million, or $0.41 per diluted common share, in the fourth quarter of 2023, and compared to $9.1 million, or $0.54 per diluted common share, in the third quarter of 2024. Highlights for the Fourth Quarter of 2024 Operating earnings1 of $9.6 million, or $0.57 per diluted common share Net organic loan and lease growth of $189 million with 20% annualized quarter-over-quarter increase Quarter-over-quarter net tax equivalent interest margin expansion of 13 basis points to 3.24% Credit quality remains solid with nonperforming assets to total assets of 0.19% Billy Carroll, President & CEO, stated: "As we closed 2023, I noted the strong positioning of our Company and expressed my optimism for the year ahead. Now, reflecting on 2024, it’s clear that this optimism was justified. Highlighted by 13% year-over-year loan and lease growth, a fourth quarter net interest margin of 3.24%, 38 basis points higher than the fourth quarter of 2023, continued profitability improvement and numerous operational achievements, 2024 was a notable year. As we look ahead to 2025, we remain committed and confident in our ability to further enhance profitability and drive value for our shareholders.” SmartFinancial's Chairman, Miller Welborn, concluded: "2024 was a great year of growth and profitability expansion following an extremely challenging 2023. The Board is pleased with the Company’s 10% annual tangible book value growth and steady return metric enhancement. Equally important is SmartBank’s ongoing commitment to its culture and associates. Our associates continue to make SmartBank a great place to work, which is foundational to our present and future success through 2025 and beyond. Thank you!” Net Interest Income and Net Interest Margin Net interest income was $37.8 million for the fourth quarter of 2024, compared to $35.0 million for the prior quarter. Average earning assets totaled $4.7 billion, an increase of $151.0 million from the prior quarter. The balances of average earnings assets changed quarter-over-quarter, primarily from an increase in average loans and leases of $195.5 million, offset by a decrease in average interest-earning cash of $33.5 million and securities of $11.1 million. Average interest-bearing liabilities increased by $162.3 million from the prior quarter, primarily attributable to an increase in average deposits of $207.9 million, offset by a decrease in borrowings of $44.4 million. The tax equivalent net interest margin was 3.24% for the fourth quarter of 2024, compared to 3.11% for the prior quarter. The tax equivalent net interest margin was positively impacted primarily by the decreased cost of interest-bearing deposits, quarter-over-quarter. The yield on loans and leases, excluding loan fees, on a fully tax equivalent basis (“FTE”) held constant at 5.95% quarter-over-quarter. The cost of total deposits for the fourth quarter of 2024 was 2.43%, compared to 2.54% in the prior quarter. The cost of interest-bearing liabilities was 3.08% for the fourth quarter, compared to 3.29% in the prior quarter. The cost of average interest-bearing deposits was 3.02% for the fourth quarter of 2024, compared to 3.20% for the prior quarter, a decrease of 18 basis points. __________ 1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliations. The following table presents selected interest rates and yields for the periods indicated: Three Months Ended Dec Sep Increase Selected Interest Rates and Yields 2024 2024 (Decrease) Yield on loans and leases, excluding loan fees, FTE 5.95 % 5.95 % - % Yield on loans and leases, FTE 6.04 % 6.02 % 0.02 % Yield on earning assets, FTE 5.64 % 5.65 % (0.01 )% Cost of interest-bearing deposits 3.02 % 3.20 % (0.18 )% Cost of total deposits 2.43 % 2.54 % (0.11 )% Cost of interest-bearing liabilities 3.08 % 3.29 % (0.21 )% Net interest margin, FTE 3.24 % 3.11 % 0.13 % Provision for Credit Losses on Loans and Leases and Credit Quality At December 31, 2024, the allowance for credit losses was $37.4 million. The allowance for credit losses to total loans and leases was 0.96% as of December 31, 2024, and September 30, 2024. The following table presents detailed information related to the provision for credit losses for the periods indicated (dollars in thousands): Three Months Ended Dec Sep Increase Provision for Credit Losses on Loans and Leases Rollforward 2024 2024 (Decrease) Beginning balance $ 35,609 $ 34,690 $ 919 Charge-offs (214 ) (1,426 ) 1,212 Recoveries 53 72 (19 ) Net (charge-offs) recoveries (161 ) (1,354 ) 1,193 Provision for credit losses (1) 1,975 2,273 (298 ) Ending balance $ 37,423 $ 35,609 $ 1,814 Allowance for credit losses to total loans and leases, gross 0.96 % 0.96 % - % (1) The current quarter-ended and prior quarter-ended excludes unfunded commitments provision of $160 thousand and $302 thousand, respectively. At December 31, 2024, the unfunded commitment liability totaled $2.5 million. Nonperforming loans and leases as a percentage of total loans and leases was 0.20% as of December 31, 2024, a decrease of 6 basis points from the 0.26% reported in the third quarter of 2024. 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 0.19% as of December 31, 2024, and 0.26% as of September 30, 2024. The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands): Three Months Ended Dec Sep Increase Credit Quality 2024 2024 (Decrease) Nonaccrual loans and leases $ 7,710 $ 9,319 $ (1,609 ) Loans and leases past due 90 days or more and still accruing 162 172 (10 ) Total nonperforming loans and leases 7,872 9,491 (1,619 ) Other real estate owned 179 179 - Other repossessed assets 2,037 2,949 (912 ) Total nonperforming assets $ 10,088 $ 12,619 $ (2,531 ) Nonperforming loans and leases to total loans and leases, gross 0.20 % 0.26 % (0.06 )% Nonperforming assets to total assets 0.19 % 0.26 % (0.07 )% Noninterest Income Noninterest income decreased $109 thousand for the fourth quarter of 2024, compared to $9.1 million for the prior quarter. The current quarter decrease was primarily associated with a $499 thousand decrease in investment services from a lower volume of investment activity and offset by a $355 thousand increase in insurance commissions from new policies. The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands): Three Months Ended Dec Sep Increase Noninterest Income 2024 2024 (Decrease) Service charges on deposit accounts $ 1,778 $ 1,780 $ (2 ) Mortgage banking income 541 410 131 Investment services 1,382 1,881 (499 ) Insurance commissions 1,832 1,477 355 Interchange and debit card transaction fees 1,332 1,349 (17 ) Other 2,101 2,242 (141 ) Total noninterest income $ 9,030 $ 9,139 $ (109 ) Noninterest Expense Noninterest expense increased $1.4 million to $32.3 million for the fourth quarter of 2024 compared to $30.8 million for the prior quarter. The current quarter increase was primarily related to an increase in salaries and employee benefits related to incentive accruals for production performance and an increase in other real estate and loan related expenses due to write downs on repossessed assets at the Company’s equipment leasing subsidiary, offset by a decrease in other related to lower operational cost and lower franchise taxes related to the newly established Real Estate Investment Trust (“REIT”). The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands): Three Months Ended Dec Sep Increase Noninterest Expense 2024 2024 (Decrease) Salaries and employee benefits $ 19,752 $ 18,448 $ 1,304 Occupancy and equipment 3,473 3,423 50 FDIC insurance 825 825 - Other real estate and loan related expenses 1,241 460 781 Advertising and marketing 397 327 70 Data processing and technology 2,495 2,519 (24 ) Professional services 1,017 1,201 (184 ) Amortization of intangibles 601 604 (3 ) Other 2,490 3,039 (549 ) Total noninterest expense $ 32,291 $ 30,846 $ 1,445 Income Tax Expense Income tax expense was $2.7 million for the fourth quarter of 2024, an increase of $1.1 million, compared to $1.6 million for the prior quarter. The increase was due to an increase in pre-tax income compared to the prior quarter and final state income tax adjustments during the quarter related to the Bank’s REIT. The REIT will create a more tax-effective structure that will result in a lower effective tax rate during future periods by lowering the Bank’s state income tax expense. Balance Sheet Trends Total assets at December 31, 2024 were $5.28 billion compared to $4.83 billion at December 31, 2023. The $446.5 million increase is primarily attributable to increases in loans and leases of $461.9 million, cash and cash equivalents of $35.3 million and bank owned life insurance of $32.5 million, offset by a decrease in securities of $80.7 million. Total liabilities were $4.78 billion at December 31, 2024, compared to $4.37 billion at December 31, 2023, an increase of $414.9 million. Total deposits increased $418.6 million, which was driven primarily by increases in money market deposits of $227.1 million, the issuance of brokered deposits of $189.8 million, other time deposits of $104.4 million and noninterest demand deposits of $67.5 million, offset by a decline in interest-bearing demand deposits of $170.2 million. Other liabilities increased $3.7 million, which was offset by a decrease in borrowings of $4.9 million and subordinated debt of $2.4 million. Shareholders' equity at December 31, 2024, totaled $491.5 million, an increase of $31.6 million, from December 31, 2023. The increase in shareholders' equity was primarily driven by net income of $36.1 million for the twelve months ended December 31, 2024, and a positive change of $2.2 million in accumulated other comprehensive income, offset by dividends paid of $5.4 million. Tangible book value per share2 was $22.85 at December 31, 2024, compared to $20.76 at December 31, 2023. Tangible common equity1 as a percentage of tangible assets1 was 7.48% at December 31, 2024, compared with 7.47% at December 31, 2023. The following table presents selected balance sheet information for the periods indicated (dollars in thousands): Dec Dec Increase Selected Balance Sheet Information 2024 2023 (Decrease) Total assets $ 5,275,904 $ 4,829,387 $ 446,517 Total liabilities 4,784,443 4,369,501 414,942 Total equity 491,461 459,886 31,575 Securities 608,987 689,646 (80,659 ) Loans and leases 3,906,340 3,444,462 461,878 Deposits 4,686,483 4,267,854 418,629 Borrowings 8,135 13,078 (4,943 ) Board of Directors Declares Dividend On January 16, 2025, the board of directors of SmartFinancial declared a quarterly cash dividend of $0.08 per share of SmartFinancial common stock payable on February 18, 2025, to shareholders of record as of the close of business on January 31, 2025. Conference Call Information SmartFinancial issued this earnings release for the fourth quarter of 2024 on Tuesday, January 21, 2025, and will host a conference call on Wednesday, January 22, 2025, at 10:00 a.m. ET. To access this interactive teleconference, dial (833) 470-1428 or (404) 975-4839 and entering the access code, 994691. A replay of the conference call will be available through March 23, 2025, by dialing (866) 813-9403 or (929) 458-6194 and entering the access code, 147026. Conference call materials will be published on the Company’s webpage located at http://www.smartfinancialinc.com/CorporateProfile, at 9:00 a.m. ET prior to the conference call. About SmartFinancial, Inc. SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with branches across Tennessee, Alabama, and Florida. Recruiting the best people, delivering exceptional client service, strategic branching, and a disciplined approach to lending have contributed to SmartBank’s success. More information about SmartFinancial can be found on its website: www.smartfinancialinc.com. __________ 1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliation 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: (i) Operating earnings (ii) Operating noninterest income (iii) Operating noninterest expense (iv) Operating pre-provision net revenue (“PPNR”) earnings (v) Tangible common equity (vi) Average tangible common equity (vii) Tangible book value per common share (viii) Tangible assets (ix) Operating efficiency ratio Operating earnings, operating noninterest income, operating noninterest expense and operating PPNR earnings 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 merger and acquisition activity, including risks associated with our pursuit of future acquisitions; (4) changes in management’s plans for the future; (5) prevailing, or changes in, economic or political conditions (including those resulting from the new 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) 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; (14) potential impacts of any adverse developments in the banking industry, including the impacts on customer confidence, deposit outflows, liquidity and the regulatory response thereto; (15) significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities; (16) the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine or the conflict in Israel and surrounding areas; and (17) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in SmartFinancial’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, in each case filed with or furnished to the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website (www.sec.gov). Undue reliance should not be placed on forward-looking statements. SmartFinancial disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events, or otherwise. SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) Ending Balances Dec Sep Jun Mar Dec 2024 2024 2024 2024 2023 Assets: Cash and cash equivalents $ 387,570 $ 192,914 $ 342,835 $ 477,941 $ 352,271 Securities available-for-sale, at fair value 482,328 501,336 500,821 474,347 408,410 Securities held-to-maturity, at amortized cost 126,659 127,779 128,996 180,169 281,236 Other investments 14,740 20,352 13,780 13,718 13,662 Loans held for sale 5,996 5,804 3,103 4,861 4,418 Loans and leases 3,906,340 3,717,478 3,574,158 3,477,555 3,444,462 Less: Allowance for credit losses (37,423 ) (35,609 ) (34,690 ) (34,203 ) (35,066 ) Loans and leases, net 3,868,917 3,681,869 3,539,468 3,443,352 3,409,396 Premises and equipment, net 91,093 91,055 91,315 92,694 92,963 Other real estate owned 179 179 688 696 517 Goodwill and other intangibles, net 104,723 105,324 105,929 106,537 107,148 Bank owned life insurance 115,917 105,025 84,483 83,957 83,434 Other assets 77,782 77,297 79,591 76,418 75,932 Total assets $ 5,275,904 $ 4,908,934 $ 4,891,009 $ 4,954,690 $ 4,829,387 Liabilities: Deposits: Noninterest-bearing demand $ 965,552 $ 863,949 $ 903,300 $ 907,254 $ 898,044 Interest-bearing demand 836,731 834,207 988,057 996,298 1,006,915 Money market and savings 2,039,560 1,854,777 1,901,281 1,952,410 1,812,427 Time deposits 844,640 769,558 524,018 538,159 550,468 Total deposits 4,686,483 4,322,491 4,316,656 4,394,121 4,267,854 Borrowings 8,135 8,997 12,732 9,849 13,078 Subordinated debt 39,684 39,663 42,142 42,120 42,099 Other liabilities 50,141 48,760 47,014 41,804 46,470 Total liabilities 4,784,443 4,419,911 4,418,544 4,487,894 4,369,501 Shareholders' Equity: Common stock 16,926 16,926 16,926 17,057 16,989 Additional paid-in capital 294,269 293,909 293,586 296,061 295,699 Retained earnings 203,824 195,537 187,751 181,103 173,105 Accumulated other comprehensive loss (23,671 ) (17,349 ) (25,798 ) (27,425 ) (25,907 ) Total shareholders' equity attributable to SmartFinancial Inc. and Subsidiary 491,348 489,023 472,465 466,796 459,886 Non-controlling interest - preferred stock of subsidiary 113 — — — — Total shareholders' equity 491,461 489,023 472,465 466,796 459,886 Total liabilities & shareholders' equity $ 5,275,904 $ 4,908,934 $ 4,891,009 $ 4,954,690 $ 4,829,387 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands except share and per share data) Three Months Ended Year Ended Dec Sep Jun Mar Dec Dec Dec 2024 2024 2024 2024 2023 2024 2023 Interest income: Loans and leases, including fees $ 57,951 $ 54,738 $ 50,853 $ 50,020 $ 48,767 $ 213,562 $ 186,479 Investment securities: Taxable 5,050 5,233 5,320 4,548 4,344 20,151 16,665 Tax-exempt 351 350 353 352 352 1,406 1,418 Federal funds sold and other earning assets 2,744 3,635 4,759 4,863 4,032 16,000 13,481 Total interest income 66,096 63,956 61,285 59,783 57,495 251,119 218,043 Interest expense: Deposits 27,437 27,350 27,439 27,035 24,926 109,260 84,260 Borrowings 89 709 148 128 162 1,075 936 Subordinated debt 787 865 884 899 890 3,434 2,767 Total interest expense 28,313 28,924 28,471 28,062 25,978 113,769 87,963 Net interest income 37,783 35,032 32,814 31,721 31,517 137,350 130,080 Provision for credit losses 2,135 2,575 883 (440 ) 1,571 5,153 3,029 Net interest income after provision for credit losses 35,648 32,457 31,931 32,161 29,946 132,197 127,051 Noninterest income: Service charges on deposit accounts 1,778 1,780 1,692 1,612 1,673 6,862 6,511 Gain (loss) on sale of securities, net 64 — — — — 64 (6,801 ) Mortgage banking 541 410 348 280 227 1,579 1,040 Investment services 1,382 1,881 1,302 1,380 1,339 5,945 5,105 Insurance commissions 1,832 1,477 1,284 1,103 1,133 5,696 4,684 Interchange and debit card transaction fees 1,332 1,349 1,343 1,253 1,370 5,277 5,457 Other 2,101 2,242 1,635 2,752 1,837 8,729 6,329 Total noninterest income 9,030 9,139 7,604 8,380 7,579 34,152 22,325 Noninterest expense: Salaries and employee benefits 19,752 18,448 17,261 16,639 16,275 72,100 65,749 Occupancy and equipment 3,473 3,423 3,324 3,396 3,378 13,617 13,451 FDIC insurance 825 825 825 915 915 3,390 3,156 Other real estate and loan related expense 1,241 460 538 584 781 2,823 2,397 Advertising and marketing 397 327 295 302 336 1,321 1,342 Data processing and technology 2,495 2,519 2,452 2,465 2,458 9,930 9,235 Professional services 1,017 1,201 1,064 924 1,136 4,207 3,443 Amortization of intangibles 601 604 608 612 643 2,425 2,624 Merger related and restructuring expenses — — — — — — 110 Other 2,490 3,039 2,834 2,716 3,773 11,077 11,643 Total noninterest expense 32,291 30,846 29,201 28,553 29,695 120,890 113,150 Income before income taxes 12,387 10,750 10,334 11,988 7,830 45,459 36,226 Income tax expense 2,747 1,610 2,331 2,630 1,640 9,318 7,633 Net income $ 9,640 $ 9,140 $ 8,003 $ 9,358 $ 6,190 $ 36,141 $ 28,593 Earnings per common share: Basic $ 0.58 $ 0.55 $ 0.48 $ 0.56 $ 0.37 $ 2.16 $ 1.70 Diluted $ 0.57 $ 0.54 $ 0.48 $ 0.55 $ 0.37 $ 2.14 $ 1.69 Weighted average common shares outstanding: Basic 16,729,509 16,726,658 16,770,819 16,849,735 16,814,647 16,768,956 16,805,068 Diluted 16,863,780 16,839,998 16,850,250 16,925,408 16,918,234 16,875,456 16,911,185 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023 Average Yield/ Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Balance Interest Cost Assets: Loans and leases, including fees1 $ 3,830,301 $ 58,188 6.04 % $ 3,634,808 $ 54,993 6.02 % $ 3,408,430 $ 48,767 5.68 % Taxable securities 554,152 5,050 3.63 % 564,978 5,233 3.68 % 618,511 4,344 2.79 % Tax-exempt securities2 63,309 444 2.79 % 63,561 443 2.77 % 63,767 445 2.77 % Federal funds sold and other earning assets 233,793 2,745 4.67 % 267,252 3,634 5.41 % 289,896 4,032 5.52 % Total interest-earning assets 4,681,555 66,427 5.64 % 4,530,599 64,303 5.65 % 4,380,604 57,588 5.22 % Noninterest-earning assets 407,695 381,306 386,202 Total assets $ 5,089,250 $ 4,911,905 $ 4,766,806 Liabilities and Shareholders’ Equity: Interest-bearing demand deposits $ 826,750 3,775 1.82 % $ 925,307 5,289 2.27 % $ 974,637 5,631 2.29 % Money market and savings deposits 1,923,265 14,830 3.07 % 1,917,301 16,608 3.45 % 1,764,826 14,556 3.27 % Time deposits 861,211 8,832 4.08 % 560,699 5,453 3.87 % 556,996 4,739 3.38 % Total interest-bearing deposits 3,611,226 27,437 3.02 % 3,403,307 27,350 3.20 % 3,296,459 24,926 3.00 % Borrowings 9,145 89 3.87 % 53,592 709 5.26 % 13,420 162 4.79 % Subordinated debt 39,672 787 7.89 % 40,846 865 8.42 % 42,087 890 8.39 % Total interest-bearing liabilities 3,660,043 28,313 3.08 % 3,497,745 28,924 3.29 % 3,351,966 25,978 3.07 % Noninterest-bearing deposits 889,151 884,938 915,259 Other liabilities 50,884 50,580 50,055 Total liabilities 4,600,078 4,433,263 4,317,280 Shareholders' equity 489,172 478,642 449,526 Total liabilities and shareholders' equity $ 5,089,250 $ 4,911,905 $ 4,766,806 Net interest income, taxable equivalent $ 38,114 $ 35,379 $ 31,610 Interest rate spread 2.57 % 2.36 % 2.14 % Tax equivalent net interest margin 3.24 % 3.11 % 2.86 % Percentage of average interest-earning assets to average interest-bearing liabilities 127.91 % 129.53 % 130.69 % Percentage of average equity to average assets 9.61 % 9.74 % 9.43 %   1 Yields computed on tax-exempt loans on a tax equivalent basis include $237 thousand, $255 thousand, and $0 thousand of taxable equivalent income for the quarters ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. 2 Yields computed on tax-exempt instruments on a tax equivalent basis include $93 thousand, $93 thousand, and $94 thousand of taxable equivalent income for the quarters ended December 31, 2024, September 30, 2024, and December 31, 2023, respectively. SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS Year Ended December 31, 2024 December 31, 2023 Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Assets: Loans and leases, including fees1 $ 3,607,558 $ 214,310 5.94 % $ 3,334,523 $ 186,479 5.59 % Taxable securities 580,001 20,151 3.47 % 713,637 16,665 2.34 % Tax-exempt securities2 63,679 1,780 2.80 % 64,816 1,795 2.77 % Federal funds sold and other earning assets 300,081 16,000 5.33 % 272,864 13,481 4.94 % Total interest-earning assets 4,551,319 252,241 5.54 % 4,385,840 218,420 4.98 % Noninterest-earning assets 388,267 370,436 Total assets $ 4,939,586 $ 4,756,276 Liabilities and Shareholders’ Equity: Interest-bearing demand deposits $ 932,598 21,074 2.26 % $ 959,639 20,214 2.11 % Money market and savings deposits 1,913,673 64,116 3.35 % 1,768,869 50,468 2.85 % Time deposits 623,652 24,070 3.86 % 520,799 13,578 2.61 % Total interest-bearing deposits 3,469,923 109,260 3.15 % 3,249,307 84,260 2.59 % Borrowings 21,719 1,075 4.95 % 17,824 936 5.25 % Subordinated debt 41,184 3,434 8.34 % 42,055 2,767 6.58 % Total interest-bearing liabilities 3,532,826 113,769 3.22 % 3,309,186 87,963 2.66 % Noninterest-bearing deposits 883,923 958,078 Other liabilities 48,949 46,052 Total liabilities 4,465,698 4,313,316 Shareholders' equity 473,888 442,960 Total liabilities and shareholders' equity $ 4,939,586 $ 4,756,276 Net interest income, taxable equivalent $ 138,472 $ 130,457 Interest rate spread 2.32 % 2.32 % Tax equivalent net interest margin 3.04 % 2.97 % Percentage of average interest-earning assets to average interest-bearing liabilities 128.83 % 132.54 % Percentage of average equity to average assets 9.59 % 9.31 %   1 Yields computed on tax-exempt loans on a tax equivalent basis included $749 thousand and $0 thousand of taxable equivalent income for the year ended December 31, 2024, and 2023, respectively. 2 Yields computed on tax-exempt instruments on a tax equivalent basis included $374 thousand and $377 thousand of taxable equivalent income for the year ended December 31, 2024, and 2023, respectively. SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) As of and for The Three Months Ended Dec Sep Jun Mar Dec 2024 2024 2024 2024 2023 Composition of Loans and Leases: Commercial real estate: Owner occupied $ 867,678 $ 868,077 $ 829,085 $ 804,557 $ 798,416 Non-owner occupied 1,080,404 1,031,708 986,278 938,648 940,789 Commercial real estate, total 1,948,082 1,899,785 1,815,363 1,743,205 1,739,205 Commercial & industrial 775,620 731,600 701,460 667,903 645,918 Construction & land development 361,735 315,006 294,575 321,860 327,185 Consumer real estate 741,836 690,504 678,331 659,209 649,867 Leases 64,878 67,052 70,299 71,909 68,752 Consumer and other 14,189 13,531 14,130 13,469 13,535 Total loans and leases $ 3,906,340 $ 3,717,478 $ 3,574,158 $ 3,477,555 $ 3,444,462 Asset Quality and Additional Loan Data: Nonperforming loans and leases $ 7,872 $ 9,491 $ 6,642 $ 6,266 $ 8,101 Other real estate owned 179 179 688 696 517 Other repossessed assets 2,037 2,949 2,645 2,033 1,117 Total nonperforming assets $ 10,088 $ 12,619 $ 9,975 $ 8,995 $ 9,735 Modified loans and leases1 not included in nonperforming loans and leases $ 3,989 $ 4,053 $ 4,241 $ 4,413 $ 4,245 Net charge-offs to average loans and leases (annualized) 0.02 % 0.15 % 0.05 % 0.09 % 0.04 % Allowance for credit losses to loans and leases 0.96 % 0.96 % 0.97 % 0.98 % 1.02 % Nonperforming loans and leases to total loans and leases, gross 0.20 % 0.26 % 0.19 % 0.18 % 0.24 % Nonperforming assets to total assets 0.19 % 0.26 % 0.20 % 0.18 % 0.20 % Capital Ratios: Equity to Assets 9.32 % 9.96 % 9.66 % 9.42 % 9.52 % Tangible common equity to tangible assets (Non-GAAP)2 7.48 % 7.99 % 7.66 % 7.43 % 7.47 % SmartFinancial, Inc.3 Tier 1 leverage 8.33 % 8.44 % 8.32 % 8.23 % 8.27 % Common equity Tier 1 9.83 % 10.06 % 10.06 % 10.20 % 10.14 % Tier 1 capital 9.83 % 10.06 % 10.06 % 10.20 % 10.14 % Total capital 11.17 % 11.62 % 11.68 % 11.85 % 11.78 % SmartBank Estimated4 Tier 1 leverage 8.98 % 9.17 % 9.11 % 9.07 % 9.18 % Common equity Tier 1 10.58 % 10.92 % 11.02 % 11.23 % 11.26 % Tier 1 capital 10.58 % 10.92 % 11.02 % 11.23 % 11.26 % Total capital 11.36 % 11.69 % 11.79 % 12.00 % 12.02 %   1 Borrowers that have experienced financial difficulty. 2 Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures. 3 All periods presented are estimated. 4 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 Year Ended Dec Sep Jun Mar Dec Dec Dec 2024 2024 2024 2024 2023 2024 2023 Selected Performance Ratios (Annualized): Return on average assets 0.75 % 0.74 % 0.66 % 0.77 % 0.52 % 0.73 % 0.60 % Return on average shareholders' equity 7.84 % 7.60 % 6.90 % 8.16 % 5.46 % 7.63 % 6.45 % Return on average tangible common equity¹ 9.99 % 9.75 % 8.94 % 10.63 % 7.18 % 9.82 % 8.55 % Noninterest income / average assets 0.71 % 0.74 % 0.63 % 0.69 % 0.63 % 0.69 % 0.47 % Noninterest expense / average assets 2.52 % 2.50 % 2.41 % 2.35 % 2.47 % 2.45 % 2.38 % Efficiency ratio 68.98 % 69.83 % 72.25 % 71.20 % 75.95 % 70.49 % 74.24 % Operating Selected Performance Ratios (Annualized): Operating return on average assets1 0.75 % 0.74 % 0.64 % 0.69 % 0.57 % 0.71 % 0.72 % Operating PPNR return on average assets1 1.13 % 1.08 % 0.90 % 0.84 % 0.86 % 0.99 % 0.99 % Operating return on average shareholders' equity1 7.80 % 7.60 % 6.72 % 7.29 % 6.07 % 7.36 % 7.77 % Operating return on average tangible common equity1 9.94 % 9.75 % 8.70 % 9.49 % 7.98 % 9.48 % 10.29 % Operating efficiency ratio1 68.58 % 69.28 % 72.13 % 73.50 % 73.41 % 70.72 % 70.26 % Operating noninterest income / average assets1 0.70 % 0.74 % 0.60 % 0.58 % 0.63 % 0.66 % 0.61 % Operating noninterest expense / average assets1 2.52 % 2.50 % 2.41 % 2.35 % 2.39 % 2.45 % 2.36 % Selected Interest Rates and Yields: Yield on loans and leases, excluding loan fees, FTE 5.95 % 5.95 % 5.80 % 5.71 % 5.61 % 5.86 % 5.43 % Yield on loans and leases, FTE 6.04 % 6.02 % 5.87 % 5.82 % 5.68 % 5.94 % 5.59 % Yield on earning assets, FTE 5.64 % 5.65 % 5.52 % 5.36 % 5.22 % 5.54 % 4.98 % Cost of interest-bearing deposits 3.02 % 3.20 % 3.23 % 3.16 % 3.00 % 3.15 % 2.59 % Cost of total deposits 2.43 % 2.54 % 2.56 % 2.52 % 2.35 % 2.51 % 2.00 % Cost of interest-bearing liabilities 3.08 % 3.29 % 3.29 % 3.23 % 3.07 % 3.22 % 2.66 % Net interest margin, FTE 3.24 % 3.11 % 2.97 % 2.85 % 2.86 % 3.04 % 2.97 % Per Common Share: Net income, basic $ 0.58 $ 0.55 $ 0.48 $ 0.56 $ 0.37 $ 2.16 $ 1.70 Net income, diluted 0.57 0.54 0.48 0.55 0.37 2.14 1.69 Operating earnings, basic¹ 0.57 0.55 0.47 0.50 0.41 2.08 2.05 Operating earnings, diluted¹ 0.57 0.54 0.46 0.49 0.41 2.07 2.03 Book value 29.04 28.89 27.91 27.37 27.07 29.04 27.07 Tangible book value¹ 22.85 22.67 21.66 21.12 20.76 22.85 20.76 Common shares outstanding 16,925,672 16,926,374 16,925,902 17,056,704 16,988,879 16,925,672 16,988,879   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 Year Ended Dec Sep Jun Mar Dec Dec Dec 2024 2024 2024 2024 2023 2024 2023 Operating Earnings: Net income (GAAP) $ 9,641 $ 9,140 $ 8,003 $ 9,358 $ 6,190 $ 36,141 $ 28,593 Noninterest income: Securities (gains) losses, net (64 ) — — — — (64 ) 6,801 Gain on sale of former branch building — — (283 ) (1,346 ) — (1,629 ) — Noninterest expenses: Donation of a former branch location — — — — 250 — 250 Accruals for pending litigation — — — — 675 — 675 Merger related and restructuring expenses — — — — — — 110 Income taxes: Income tax effect of adjustments 17 — 73 348 (239 ) 437 (2,024 ) Operating earnings (Non-GAAP) $ 9,594 $ 9,140 $ 7,793 $ 8,360 $ 6,876 $ 34,885 $ 34,405 Operating earnings per common share (Non-GAAP): Basic $ 0.57 $ 0.55 $ 0.47 $ 0.50 $ 0.41 $ 2.08 $ 2.05 Diluted 0.57 0.54 0.46 0.49 0.41 2.07 2.03 Operating Noninterest Income: Noninterest income (GAAP) $ 9,030 $ 9,139 $ 7,604 $ 8,380 $ 7,579 $ 34,152 $ 22,325 Securities (gains) losses, net (64 ) — — — — (64 ) 6,801 Gain on sale of former branch building — — (283 ) (1,346 ) — (1,629 ) — Operating noninterest income (Non-GAAP) $ 8,966 $ 9,139 $ 7,321 $ 7,034 $ 7,579 $ 32,459 $ 29,126 Operating noninterest income (Non-GAAP)/average assets1 0.70 % 0.74 % 0.60 % 0.58 % 0.63 % 0.66 % 0.61 % Operating Noninterest Expense: Noninterest expense (GAAP) $ 32,291 $ 30,846 $ 29,201 $ 28,553 $ 29,695 $ 120,890 $ 113,150 Donation of a former branch location — — — — (250 ) — (250 ) Accruals for pending litigation — — — — (675 ) — (675 ) Merger related and restructuring expenses — — — — — — (110 ) Operating noninterest expense (Non-GAAP) $ 32,291 $ 30,846 $ 29,201 $ 28,553 $ 28,770 $ 120,890 $ 112,115 Operating noninterest expense (Non-GAAP)/average assets2 2.52 % 2.50 % 2.41 % 2.35 % 2.39 % 2.45 % 2.36 % Operating Pre-provision Net revenue ("PPNR") Earnings: Net interest income (GAAP) $ 37,783 $ 35,032 $ 32,814 $ 31,721 $ 31,517 $ 137,350 $ 130,080 Operating noninterest income (Non-GAAP) 8,966 9,139 7,321 7,034 7,579 32,459 29,126 Operating noninterest expense (Non-GAAP) (32,291 ) (30,846 ) (29,201 ) (28,553 ) (28,770 ) (120,890 ) (112,115 ) Operating PPNR earnings (Non-GAAP) $ 14,458 $ 13,325 $ 10,934 $ 10,202 $ 10,326 $ 48,919 $ 47,091 Non-GAAP Return Ratios: Operating return on average assets (Non-GAAP)3 0.75 % 0.74 % 0.64 % 0.69 % 0.57 % 0.71 % 0.72 % Operating PPNR return on average assets (Non-GAAP)4 1.13 % 1.08 % 0.90 % 0.84 % 0.86 % 0.99 % 0.99 % Return on average tangible common equity (Non-GAAP)5 9.99 % 9.75 % 8.93 % 10.63 % 7.18 % 9.82 % 8.55 % Operating return on average shareholders' equity (Non-GAAP)6 7.80 % 7.60 % 6.72 % 7.29 % 6.07 % 7.36 % 7.77 % Operating return on average tangible common equity (Non-GAAP)7 9.94 % 9.75 % 8.70 % 9.49 % 7.98 % 9.48 % 10.29 % Operating Efficiency Ratio: Efficiency ratio (GAAP) 68.98 % 69.83 % 72.25 % 71.20 % 75.95 % 70.49 % 74.24 % Adjustment for taxable equivalent yields (0.49 )% (0.55 )% (0.63 )% (0.17 )% (0.18 )% (0.46 )% (0.18 )% Adjustment for securities gains (losses) 0.09 % — % — % — % — % 0.03 % (3.17 )% Adjustment for sale of branch location — % — % 0.51 % 2.46 % — % 0.66 % — % Adjustment for donation of a former branch location — % — % — % — % (0.64 )% — % (0.16 )% Adjustment for accruals for pending litigation — % — % — % — % (1.72 )% — % (0.44 )% Adjustment for merger related income and costs — % — % — % — % — % — % (0.03 )% Operating efficiency ratio (Non-GAAP) 68.58 % 69.28 % 72.13 % 73.50 % 73.41 % 70.72 % 70.26 %   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 Dec Sep Jun Mar Dec 2024 2024 2024 2024 2023 Tangible Common Equity: Shareholders' equity (GAAP) $ 491,461 $ 489,023 $ 472,465 $ 466,796 $ 459,886 Less goodwill and other intangible assets 104,723 105,324 105,929 106,537 107,148 Tangible common equity (Non-GAAP) $ 386,738 $ 383,699 $ 366,536 $ 360,259 $ 352,738 Average Tangible Common Equity: Average shareholders' equity (GAAP) $ 489,172 $ 478,642 $ 466,371 $ 461,148 $ 449,526 Less average goodwill and other intangible assets 105,093 105,701 106,301 106,920 107,551 Average tangible common equity (Non-GAAP) $ 384,079 $ 372,941 $ 360,070 $ 354,228 $ 341,975 Tangible Book Value per Common Share: Book value per common share (GAAP) $ 29.04 $ 28.89 $ 27.91 $ 27.37 $ 27.07 Adjustment due to goodwill and other intangible assets (6.19 ) (6.22 ) (6.25 ) (6.25 ) (6.31 ) Tangible book value per common share (Non-GAAP)1 $ 22.85 $ 22.67 $ 21.66 $ 21.12 $ 20.76 Tangible Common Equity to Tangible Assets: Total Assets (GAAP) $ 5,275,904 $ 4,908,934 $ 4,891,009 $ 4,954,690 $ 4,829,387 Less goodwill and other intangibles 104,723 105,324 105,929 106,537 107,148 Tangible Assets (Non-GAAP) $ 5,171,181 $ 4,803,610 $ 4,785,080 $ 4,848,153 $ 4,722,239 Tangible common equity to tangible assets (Non-GAAP) 7.48 % 7.99 % 7.66 % 7.43 % 7.47 %   1 Tangible book value per share (Non-GAAP) is computed by dividing total shareholders’ equity, less goodwill and other intangible assets, by common shares outstanding.

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