Q1 2026 SmartFinancial Inc Earnings Call Transcript
Key Points
- SmartFinancial Inc (SMBK) increased its tangible book value to $27.33 per share, up from $26.86 at year-end.
- The company posted operating earnings of $13.7 million or $0.81 per diluted share, with total operating revenue of $53.8 million, surpassing the previous quarter.
- Loan growth was strong at 14% annualized, with core deposits growing at 7% annualized.
- Nonperforming assets remained low at 25 basis points, reflecting strong credit performance.
- The company successfully reduced operating noninterest expenses to $32.9 million, demonstrating expense discipline.
- There is increased competition in the market, particularly in Tennessee, with aggressive rate offerings from competitors.
- Deposit costs are expected to face upward pressure due to competitive market conditions.
- The company experienced a slight decline in operating noninterest income, primarily due to seasonality in mortgage banking and capital markets revenue.
- The allowance for credit losses increased to $44 million, representing 0.97% of total loans, up from 0.94% in the previous quarter.
- The company anticipates potential short-term pressure on deposit costs due to a mix shift in the deposit portfolio.
(technical difficulty) busy quarter as we continue to execute on our strategy of leveraging the great foundation we've built over the last several years. Our team's focus on this execution continues to be outstanding. And this first quarter of 2026 was yet another example of that. So let me jump right into some of our highlights.
First, and in my opinion, one of the most important metrics, we continue to increase the tangible book value of our company which is now up to $27.33 per share, up from $26.86 at year-end. For the quarter, we posted operating earnings of $13.7 million or $0.81 per diluted share, with total operating revenue coming in at $53.8 million, higher than the $53.3 million in the prior quarter, even with two fewer days.
We continue to execute on outstanding growth on both sides of the balance sheet, posting 14% annualized growth in loans and 7% annualized growth in core deposits. Our history of strong credit continues with only 25 basis points in nonperforming assets. I'm very pleased
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