Earnings release
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Exhibit 99.1 3Q 2026 SmartFinancial Announces Results for the Third Quarter 2026 KNOXVILLE, TN – October 19, 2026 – SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NYSE: SMBK), today announced net income of $18.6 million, or $1.10 per diluted common share, for the third quarter of 2026, compared to net income of $13.7 million, or $0.81 per diluted common share, for the third quarter of 2025, and compared to prior quarter net income of $16.3 million, or $0.96 per diluted common share. Highlights for the Third Quarter of 2026 ● Operating earnings1 of $18.6 million, or $1.10 per diluted common share ● Net organic loan and lease growth of $174 million representing 15% annualized quarter-over-quarter increase ● Core deposit2 growth of $163 million representing 12% annualized quarter-over-quarter increase ● Tangible book value per common share1 growth of 15% annualized, excluding the impacts of AOCI ● $2.6 million tax benefit recognized in connection with the purchase of transferable energy tax credits ● Opened full-service Columbus, GA financial center Billy Carroll, President & CEO, stated: “Our third quarter was highlighted by continued organic growth, with $174 million in net loan and lease growth and $163 million in core deposit growth, representing annualized increases of 15% and 12%, respectively. We achieved another quarterly record in operating revenue1 at $57.5 million and diluted operating earnings1 per share totaled $1.10. We also opened our new full-service financial center in Columbus, Georgia, marking an important step in expanding our presence in the market. Growing our deposit franchise alongside our lending business remains an important priority as we execute our relationship-focused strategy. We remain committed to disciplined pricing, credit quality and expense management as we work to translate continued growth into sustainable returns for our shareholders. I want to thank our associates for their dedication, their commitment to our clients and the work they do every day to advance our Company.” SmartFinancial's Chairman, Miller Welborn, concluded: “The Board remains committed to delivering sustainable returns for our shareholders while building a Company where our associates can grow and thrive. Tangible book value per share, an important measure of the value we are creating for shareholders, grew 4% annualized during the quarter, including the effects of accumulated other comprehensive income, and 15% annualized excluding those effects. We also welcomed several new business production team members during the quarter, strengthening our capacity to serve clients and pursue profitable growth. As we expand, our commitment to our associates and our responsibility to shareholders remain closely connected. Building a great Company means creating opportunities for our people, delivering for our clients and translating those efforts into lasting shareholder value.” Net Interest Income and Net Interest Margin Net interest income was $49.4 million for the third quarter of 2026, compared to $48.1 million for the prior quarter. Average earning assets totaled $5.71 billion, an increase of $193.1 million from the prior quarter. The balances of average earning assets increased quarter-over-quarter, primarily from an increase in average loans and leases of $165.5 million, average federal funds sold and other earning assets of $20.5 million and average securities of $7.1 million. Average interest-bearing liabilities increased by $218.0 million from the prior quarter, primarily attributable to an increase in average interest-bearing deposits of $258.9 million, offset by a decrease in average borrowings of $41.0 million. The tax equivalent net interest margin was 3.45% for the third quarter of 2026, down from 3.52% for the prior quarter. The decrease is primarily attributable to higher funding costs, which more than offset the improvement in earning-asset yields. The yield on loans and 1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliations. 2 Core deposits include all deposits less brokered and one-way buy Certificate of Deposit Account Registry Service (“CDARS”) deposits.
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2 leases, excluding loan fees, fully taxable equivalent (“FTE”) was 5.99% for the third quarter of 2026, compared to 5.95% for the prior quarter. The cost of total deposits for the third quarter of 2026 was 2.26%, compared to 2.15% in the prior quarter. The cost of interest-bearing liabilities was 2.81% for the third quarter of 2026, compared to 2.74% in the prior quarter. The cost of average interest-bearing deposits was 2.71% for the third quarter of 2026, compared to 2.62% for the prior quarter, an increase of 9 basis points. The following table presents selected interest rates and yields for the periods indicated: Three Months Ended Sep Jun Increase Selected Interest Rates and Yields 2026 2026 (Decrease) Yield on loans and leases, excluding loan fees, FTE 5.99% 5.95% 0.04% Yield on loans and leases, FTE 6.08% 6.07% 0.01% Yield on earning assets, FTE 5.72% 5.70% 0.02% Cost of interest-bearing deposits 2.71% 2.62% 0.09% Cost of total deposits 2.26% 2.15% 0.11% Cost of interest-bearing liabilities 2.81% 2.74% 0.07% Net interest margin, FTE 3.45% 3.52% (0.07)% Allowance for Credit Losses on Loans and Leases and Credit Quality At September 30, 2026, the allowance for credit losses was $45.6 million. The allowance for credit losses to total loans and leases was 0.94% as of September 30, 2026, down from 0.97% as of June 30, 2026. Provision for credit losses was $687 thousand for the third quarter, compared with $1.5 million for the prior quarter. The third-quarter provision included $1.1 million related to loans and leases, partially offset by a $371 thousand release of the reserve for unfunded commitments. The following table presents detailed information related to the provision for credit losses for the periods indicated (dollars in thousands): Three Months Ended Sep Jun Increase Allowance for Credit Losses on Loans and Leases Rollforward 2026 2026 (Decrease) Beginning balance $ 45,252 $ 43,950 $ 1,302 Charge-offs (782) (658) (124) Recoveries 121 105 16 Net charge-offs (661) (553) (108) Provision for credit losses (1) 1,058 1,855 (797) Ending balance $ 45,649 $ 45,252 $ 397 Allowance for credit losses to total loans and leases 0.94% 0.97% (0.03)% (1) The current quarter-ended and prior quarter-ended provision excludes an unfunded commitments release of $371 thousand and $392thousand, respectively. At September 30, 2026, and June 30, 2026, the unfunded commitment liability totaled $3.7 million and $4.1 million,respectively. Nonperforming loans and leases as a percentage of total loans and leases was 0.28% as of September 30, 2026, and 0.25% as of June 30, 2026. 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 September 30, 2026, and 0.23% as of June 30, 2026.
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3 The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands): As of Three Months Ended Sep Jun Increase Credit Quality 2026 2026 (Decrease) Nonaccrual loans and leases $ 13,602 $ 11,474 $ 2,128 Loans and leases past due 90 days or more and still accruing - - - Total nonperforming loans and leases 13,602 11,474 2,128 Other real estate owned - - - Other repossessed assets 2,072 2,754 (682) Total nonperforming assets $ 15,674 $ 14,228 $ 1,446 Nonperforming loans and leases to total loans and leases 0.28% 0.25% 0.03% Nonperforming assets to total assets 0.25% 0.23% 0.02% Noninterest Income Noninterest income increased by $245 thousand to $8.1 million for the third quarter of 2026, compared to $7.9 million for the prior quarter. The third quarter increase was primarily attributable to increases in service charges on deposit accounts and mortgage banking income. The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands): Three Months Ended Sep Jun Increase Noninterest Income 2026 2026 (Decrease) Service charges on deposit accounts $ 2,001 $ 1,881 $ 120 Gain on sale of securities, net - 54 (54) Mortgage banking income 1,025 916 109 Investment services 1,747 1,724 23 Interchange and debit card transaction fees 1,747 1,676 71 Other 1,611 1,635 (24) Total noninterest income $ 8,131 $ 7,886 $ 245 Noninterest Expense Noninterest expense increased $2.4 million to $36.4 million for the third quarter of 2026, compared to $34.0 million for the prior quarter. The increase was driven primarily by a $1.0 million increase in other real estate and loan related expenses, a $601 thousand increase in salaries and employee benefits, and higher professional services and other expenses. The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands): Three Months Ended Sep Jun Increase Noninterest Expense 2026 2026 (Decrease) Salaries and employee benefits $ 21,616 $ 21,015 $ 601 Occupancy and equipment 3,513 3,351 162 FDIC insurance 906 920 (14) Other real estate and loan related expenses 1,800 806 994 Advertising and marketing 504 408 96 Data processing and technology 2,692 2,683 9 Professional services 1,541 1,366 175 Amortization of intangibles 450 454 (4) Other 3,334 2,952 382 Total noninterest expense $ 36,356 $ 33,955 $ 2,401
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4 Income Tax Expense Income tax expense was $1.9 million for the third quarter of 2026, compared with $4.2 million for the prior quarter. The decrease was primarily attributable to a $2.6 million tax benefit recognized in connection with the Company’s purchase of transferable energy tax credits during the quarter. Balance Sheet Trends Total assets at September 30, 2026, were $6.32 billion compared to $5.86 billion at December 31, 2025. The $460.0 million increase was primarily attributable to increases in loans and leases of $493.1 million, and increases in other assets of $44.6 million, partially offset by a $99.5 million decrease in cash and cash equivalents. Total liabilities were $5.74 billion at September 30, 2026, compared to $5.31 billion at December 31, 2025, an increase of $431.2 million. Total deposits increased $423.4 million, which was driven primarily by increases in money market and savings deposits of $321.5 million, interest-bearing demand deposits of $117.6 million, and time deposits of $127.1 million, offset by a decline in noninterest-bearing demand deposits of $142.8 million. In addition, other liabilities increased by $10.3 million and borrowings decreased by $2.7 million. Shareholders' equity at September 30, 2026, totaled $581.3 million, an increase of $28.8 million from December 31, 2025. The increase in shareholders' equity was primarily driven by net income of $48.6 million for the nine months ended September 30, 2026, offset by an increase of $16.9 million in accumulated other comprehensive loss and dividends paid of $4.5 million. Tangible book value per common share1 was $28.50 at September 30, 2026, compared to $26.85 at December 31, 2025. Tangible common equity1 as a percentage of tangible assets1 was 7.83% at September 30, 2026, compared with 7.93% at December 31, 2025. The following table presents selected balance sheet information for the periods indicated (dollars in thousands): Sep Dec Increase Selected Balance Sheet Information 2026 2025 (Decrease) Total assets $ 6,320,798 $ 5,860,810 $ 459,988 Total liabilities 5,739,542 5,308,318 431,224 Total equity 581,256 552,492 28,764 Securities 676,011 662,003 14,008 Loans and leases 4,856,692 4,363,582 493,110 Deposits 5,576,210 5,152,789 423,421 Conference Call Information SmartFinancial issued this earnings release for the third quarter of 2026 on Monday, October 19, 2026, and will host a conference call on Tuesday, October 20, 2026, at 10:00 a.m. ET. To access this interactive teleconference, dial (833) 461- 5787 and enter the Meeting ID: 955 254 100. A link to a replay of the conference call will be available on the Company’s webpage through October 21, 2027. Conference call materials will be published on the Company’s webpage located at https://www.smartfinancialinc.com/CorporateProfile, at 9:00 a.m. ET prior to the conference call. 1 Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP Reconciliations.
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5 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, Florida and Georgia and a loan production office in Tennessee. 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 Nathan Strall President & Chief Executive Officer Vice President and Director of Strategy & Corporate Development Email: billy.carroll@smartbank.com Email: nathan.strall@smartbank.com Phone: (865) 868-0613 Phone: (865) 868-2604
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6 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 (11) Operating return on average assets (2) Operating revenue (12)Operating PPNR return on average assets (3) Operating noninterest income (13)Operating return on average shareholders’ equity (4) Operating noninterest expense (14)Return on average tangible common equity (5) Operating pre-provision net revenue (“PPNR”) earnings (15)Operating return on average tangible common equity (6) Tangible common equity (16)Operating noninterest income/average assets (7) Average tangible common equity (17)Operating noninterest expense/average assets (8) Tangible book value per common share (18)Tangible common equity to tangible assets (9) Tangible assets (19)Operating earnings per common share (10)Operating efficiency ratio A detailed reconciliation and definition 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.
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7 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.
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8 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) Ending Balances Sep Jun Mar Dec Sep2026 2026 2026 2025 2025 Assets: Cash and cash equivalents $ 364,876 $ 379,387 $ 346,071 $ 464,417 $ 557,127Securities available-for-sale, at fair value 557,389 560,065 552,083 539,882 511,095Securities held-to-maturity, at amortized cost 118,622 119,848 120,968 122,121 123,364Other investments 22,463 17,529 16,597 16,441 14,888Loans held for sale 10,210 9,628 7,277 10,865 9,855 Loans and leases 4,856,692 4,682,935 4,518,391 4,363,582 4,222,369Less: Allowance for credit losses (45,649) (45,252) (43,950) (40,906) (39,074) Loans and leases, net 4,811,043 4,637,683 4,474,441 4,322,676 4,183,295Premises and equipment, net 94,205 93,314 93,360 88,387 89,250Other real estate owned — — — — —Goodwill and other intangibles, net 93,967 94,417 94,871 95,328 95,807Bank owned life insurance 122,299 121,353 120,438 119,525 118,610Other assets 125,724 82,082 81,579 81,168 81,692 Total assets $ 6,320,798 $ 6,115,306 $ 5,907,685 $ 5,860,810 $ 5,784,983 Liabilities: Deposits: Noninterest-bearing demand $ 920,117 $ 921,876 $ 951,366 $ 1,062,918 $ 931,477 Interest-bearing demand 1,063,266 1,022,074 954,292 945,716 929,454 Money market and savings 2,595,155 2,454,805 2,455,945 2,273,612 2,218,313Time deposits 997,672 986,795 834,633 870,543 971,653 Total deposits 5,576,210 5,385,550 5,196,236 5,152,789 5,050,897Borrowings 345 603 3,178 3,009 1,301Subordinated debt 98,877 98,805 98,733 98,662 138,604Other liabilities 64,110 53,424 47,377 53,858 55,699 Total liabilities 5,739,542 5,538,382 5,345,524 5,308,318 5,246,501 Shareholders' Equity: Common stock 17,096 17,098 17,098 17,029 17,028Additional paid-in capital 297,367 296,841 296,284 295,950 295,742Retained earnings 292,896 275,813 261,032 248,719 236,380Accumulated other comprehensive loss (26,216) (12,941) (12,366) (9,319) (10,781) Total shareholders' equity attributable to SmartFinancial, Inc. and Subsidiary 581,143 576,811 562,048 552,379 538,369 Non-controlling interest - preferred stock of subsidiary 113 113 113 113 113 Total shareholders' equity 581,256 576,924 562,161 552,492 538,482 Total liabilities & shareholders' equity $ 6,320,798 $ 6,115,306 $ 5,907,685 $ 5,860,810 $ 5,784,983
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9 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands except share and per share data) Three Months Ended Nine Months Ended Sep Jun Mar Dec Sep Sep Sep 2026 2026 2026 2025 2025 2026 2025 Interest income: Loans and leases, including fees $ 73,052 $ 69,546 $ 65,638 $ 65,573 $ 64,282 $ 208,236 $ 183,094 Investment securities: Taxable 5,882 5,722 5,492 5,662 4,876 17,096 14,499 Tax-exempt 578 565 555 536 441 1,698 1,190 Federal funds sold and other earning assets 2,528 2,209 2,585 3,854 4,919 7,321 11,565 Total interest income 82,040 78,042 74,270 75,625 74,518 234,351 210,348 Interest expense: Deposits 30,754 27,723 26,529 28,646 30,464 85,006 86,100 Borrowings — 371 1 1 14 371 155 Subordinated debt 1,884 1,884 1,864 1,884 1,610 5,632 3,082 Total interest expense 32,638 29,978 28,394 30,531 32,088 91,009 89,337 Net interest income 49,402 48,064 45,876 45,094 42,430 143,342 121,011 Provision for credit losses 687 1,463 4,139 4,132 227 6,288 3,618 Net interest income after provision for credit losses 48,715 46,601 41,737 40,962 42,203 137,054 117,393 Noninterest income: Service charges on deposit accounts 2,001 1,881 1,853 1,828 1,831 5,735 5,333 Gain (loss) on sale of securities, net — 54 1 — (3,715) 55 (3,719) Mortgage banking 1,025 916 760 837 709 2,701 1,835 Investment services 1,747 1,724 1,796 1,683 1,690 5,267 4,899 Insurance commissions — — — — 1,049 — 4,016 Interchange and debit card transaction fees 1,747 1,676 1,418 1,375 1,338 4,841 3,900 Gain on sale of SBK Insurance ("SBKI") — — — — 3,955 — 3,955 Other 1,611 1,635 2,113 2,496 1,780 5,360 5,914 Total noninterest income 8,131 7,886 7,941 8,219 8,637 23,959 26,133 Noninterest expense: Salaries and employee benefits 21,616 21,015 20,414 19,917 19,544 63,045 58,380 Occupancy and equipment 3,513 3,351 3,344 3,388 3,468 10,208 10,298 FDIC insurance 906 920 750 1,025 1,025 2,576 2,977 Other real estate and loan related expense 1,800 806 792 858 969 3,398 2,383 Advertising and marketing 504 408 387 393 454 1,299 1,226 Data processing and technology 2,692 2,683 2,436 2,413 2,594 7,811 7,903 Professional services 1,541 1,366 1,193 1,132 1,123 4,100 3,643 Amortization of intangibles 450 454 457 479 536 1,361 1,671 Restructuring expenses — — — 16 1,310 — 1,310 Other 3,334 2,952 3,142 2,850 2,846 9,430 8,945 Total noninterest expense 36,356 33,955 32,915 32,471 33,869 103,228 98,736 Income before income taxes 20,490 20,532 16,763 16,710 16,971 57,785 44,790 Income tax expense 1,863 4,210 3,083 3,007 3,285 9,156 8,146 Net income $ 18,627 $ 16,322 $ 13,680 $ 13,703 $ 13,686 $ 48,629 $ 36,644 Earnings per common share: Basic $ 1.11 $ 0.97 $ 0.81 $ 0.82 $ 0.82 $ 2.89 $ 2.18 Diluted $ 1.10 $ 0.96 $ 0.81 $ 0.81 $ 0.81 $ 2.86 $ 2.17 Weighted average common shares outstanding: Basic 16,824,705 16,824,053 16,821,486 16,788,065 16,781,236 16,823,426 16,775,970 Diluted 16,994,574 16,961,750 16,935,530 16,922,482 16,908,920 16,984,875 16,886,153
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10 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS Three Months Ended September 30, 2026 June 30, 2026 September 30, 2025 Average Yield/ Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Balance Interest Cost Assets: Loans and leases, including fees1 $ 4,775,909 $ 73,209 6.08 % $ 4,610,444 $ 69,740 6.07 % $ 4,171,444 $ 64,526 6.14 %Taxable securities 602,152 5,882 3.88 % 595,018 5,722 3.86 % 556,894 4,876 3.47 %Tax-exempt securities2 79,765 732 3.64 % 79,820 715 3.59 % 69,843 558 3.17 %Federal funds sold and other earningassets 252,781 2,528 3.97 % 232,257 2,209 3.81 % 428,209 4,919 4.56 % Total interest-earning assets 5,710,607 82,351 5.72 % 5,517,539 78,386 5.70 % 5,226,390 74,879 5.68 % Noninterest-earning assets 442,789 421,371 408,560 Total assets $ 6,153,396 $ 5,938,910 $ 5,634,950 Liabilities and Shareholders’Equity: Interest-bearing demand deposits $ 995,731 4,344 1.73 % $ 954,455 3,960 1.66 % $ 869,690 4,048 1.85 % Money market and savings deposits 2,516,407 17,660 2.78 % 2,388,259 15,982 2.68 % 2,186,245 16,693 3.03 % Time deposits 996,718 8,750 3.48 % 907,250 7,781 3.44 % 1,005,800 9,723 3.84 % Total interest-bearing deposits 4,508,856 30,754 2.71 % 4,249,964 27,723 2.62 % 4,061,735 30,464 2.98 %Borrowings 314 — —% 41,272 371 3.61 % 4,351 14 1.28 % Subordinated debt 98,834 1,884 7.56 % 98,761 1,884 7.65 % 85,113 1,610 7.50 % Total interest-bearing liabilities 4,608,004 32,638 2.81 % 4,389,997 29,978 2.74 % 4,151,199 32,088 3.07 %Noninterest-bearing deposits 901,873 923,887 900,079 Other liabilities 58,748 53,677 57,843 Total liabilities 5,568,625 5,367,561 5,109,121 Shareholders' equity 584,771 571,349 525,829 Total liabilities and shareholders'equity $ 6,153,396 $ 5,938,910 $ 5,634,950 Net interest income, taxableequivalent $ 49,713 $ 48,408 $ 42,791 Interest rate spread 2.91 % 2.96 % 2.62 % Tax equivalent net interest margin 3.45 % 3.52 % 3.25 % Percentage of average interest-earning assets to average interest-bearing liabilities 123.93 % 125.68 % 125.90 % Percentage of average equity toaverage assets 9.50 % 9.62 % 9.33 % 1 Yields computed on tax-exempt loans on a tax equivalent basis include $157 thousand, $194 thousand, and $244 thousand of taxable equivalent income for the quarters ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively. 2 Yields computed on tax-exempt instruments on a tax equivalent basis include $154 thousand, $150 thousand, and $117 thousand of taxable equivalent income for the quarters ended September 30, 2026, June 30, 2026, and September 30, 2025, respectively.
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11 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) YIELD ANALYSIS Nine Months Ended September 30, 2026 September 30, 2025 Average Yield/ Average Yield/ Balance Interest Cost Balance Interest Cost Assets: Loans and leases, including fees1 $ 4,609,009 $ 208,805 6.06 % $ 4,055,251 $ 183,829 6.06 % Taxable securities 593,990 17,096 3.85 % 558,493 14,499 3.47 % Tax-exempt securities2 80,037 2,149 3.59 % 66,408 1,506 3.03 % Federal funds sold and other earning assets 257,070 7,322 3.81 % 337,385 11,566 4.58 % Total interest-earning assets 5,540,106 235,372 5.68 % 5,017,537 211,400 5.63 % Noninterest-earning assets 419,865 406,751 Total assets $ 5,959,971 $ 5,424,288 Liabilities and Shareholders’ Equity: Interest-bearing demand deposits $ 968,693 12,235 1.69 % $ 850,720 11,577 1.82 % Money market and savings deposits 2,414,719 48,879 2.71 % 2,118,652 47,518 3.00 % Time deposits 915,729 23,892 3.49 % 934,255 27,005 3.86 % Total interest-bearing deposits 4,299,141 85,006 2.64 % 3,903,627 86,100 2.95 % Borrowings 15,033 371 3.30 % 6,769 155 3.06 % Subordinated debt 98,763 5,632 7.62 % 55,006 3,082 7.49 % Total interest-bearing liabilities 4,412,937 91,009 2.76 % 3,965,402 89,337 3.01 % Noninterest-bearing deposits 919,098 894,254 Other liabilities 55,691 52,905 Total liabilities 5,387,726 4,912,561 Shareholders' equity 572,245 511,727 Total liabilities and shareholders' equity $ 5,959,971 $ 5,424,288 Net interest income, taxable equivalent $ 144,363 $ 122,063 Interest rate spread 2.92 % 2.62 % Tax equivalent net interest margin 3.48 % 3.25 % Percentage of average interest-earning assets to average interest-bearing liabilities 125.54 % 126.53 % Percentage of average equity to average assets 9.60 % 9.43 % 1 Yields computed on tax-exempt loans on a tax equivalent basis include $569 thousand and $735 thousand of taxable equivalent income for the nine months ended September 30, 2026, and September 30, 2025, respectively. 2 Yields computed on tax-exempt instruments on a tax equivalent basis include $451 thousand and $316 thousand of taxable equivalent income for the nine months ended September 30, 2026, and September 30, 2025, respectively.
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12 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) As of and for The Three Months Ended Sep Jun Mar Dec Sep 2026 2026 2026 2025 2025 Composition of Loans and Leases: Commercial real estate: Non-owner occupied $ 1,301,283 $ 1,288,115 $ 1,263,455 $ 1,196,758 $ 1,136,080 Owner occupied 1,105,042 1,080,959 1,033,211 1,022,871 1,012,088 Commercial real estate, total 2,406,325 2,369,074 2,296,666 2,219,629 2,148,168 Consumer real estate 903,135 881,640 851,484 834,626 811,150 Construction & land development 563,856 516,164 478,301 419,176 390,691 Commercial & industrial 913,165 842,849 819,875 817,595 794,751 Leases 49,179 52,411 54,296 55,422 60,301 Consumer and other 21,032 20,797 17,769 17,134 17,308 Total loans and leases $ 4,856,692 $ 4,682,935 $ 4,518,391 $ 4,363,582 $ 4,222,369 Asset Quality and Additional Loan Data: Nonperforming loans and leases $ 13,602 $ 11,474 $ 12,257 $ 9,442 $ 10,099 Other real estate owned — — — — — Other repossessed assets 2,072 2,754 2,798 3,248 2,444 Total nonperforming assets $ 15,674 $ 14,228 $ 15,055 $ 12,690 $ 12,543 Modified loans and leases1 not included in nonperforming loans and leases $ 282 $ 349 $ 208 $ 219 $ 1,783 Net charge-offs to average loans and leases (annualized) 0.06% 0.05% 0.02% 0.18% 0.10% Allowance for credit losses to total loans and leases 0.94% 0.97% 0.97% 0.94% 0.93% Nonperforming loans and leases to total loans and leases 0.28% 0.25% 0.27% 0.22% 0.24% Nonperforming assets to total assets 0.25% 0.23% 0.25% 0.22% 0.22% Capital Ratios: Equity to Assets 9.20% 9.43% 9.52% 9.43% 9.31% Tangible common equity to tangible assets (Non- GAAP)2 7.83% 8.01% 8.04% 7.93% 7.78% SmartFinancial, Inc.3 Tier 1 leverage 8.49% 8.47% 8.41% 8.30% 8.21% Common equity Tier 1 9.80% 9.77% 9.77% 9.83% 9.85% Tier 1 capital 9.80% 9.77% 9.77% 9.83% 9.85% Total capital 12.62% 12.64% 12.72% 12.71% 13.31% SmartBank3 Tier 1 leverage 9.80% 9.86% 9.88% 9.71% 9.59% Common equity Tier 1 11.34% 11.38% 11.47% 11.51% 11.56% Tier 1 capital 11.34% 11.38% 11.47% 11.51% 11.56% Total capital 12.28% 12.30% 12.41% 12.32% 12.37% 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.
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13 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 TheThree Months Ended Nine Months Ended Sep Jun Mar Dec Sep Sep Sep2026 2026 2026 2025 2025 2026 2025Selected Performance Ratios(Annualized): Return on average assets 1.20 % 1.10 % 0.96 % 0.95 % 0.96 % 1.09 % 0.90 %Return on average shareholders'equity 12.64 % 11.46 % 9.90 % 9.95 % 10.33 % 11.36 % 9.57 %Return on average tangible commonequity¹ 15.07 % 13.74 % 11.93 % 12.06 % 12.79 % 13.61 % 11.99 %Noninterest income / average assets 0.52 % 0.53 % 0.56 % 0.57 % 0.61 % 0.54 % 0.64 %Noninterest expense / average assets 2.34 % 2.29 % 2.31 % 2.24 % 2.38 % 2.32 % 2.43 %Efficiency ratio 63.19 % 60.69 % 61.16 % 60.91 % 66.32 % 61.70 % 67.10 % Operating Selected PerformanceRatios (Annualized): Operating return on average assets1 1.20 % 1.10 % 0.96 % 0.95 % 1.02 % 1.09 % 0.92 %Operating PPNR return on averageassets1 1.37 % 1.48 % 1.47 % 1.44 % 1.29 % 1.44 % 1.22 %Operating return on averageshareholders' equity1 12.64 % 11.43 % 9.90 % 9.96 % 10.92 % 11.35 % 9.78 %Operating return on average tangiblecommon equity1 15.07 % 13.70 % 11.93 % 12.07 % 13.53 % 13.60 % 12.25 %Operating efficiency ratio1 62.85 % 60.38 % 60.75 % 60.45 % 63.61 % 61.35 % 65.85 %Operating noninterest income /average assets1 0.52 % 0.53 % 0.56 % 0.57 % 0.59 % 0.54 % 0.64 %Operating noninterest expense /average assets1 2.34 % 2.29 % 2.31 % 2.24 % 2.29 % 2.32 % 2.40 % Selected Interest Rates and Yields: Yield on loans and leases, excluding loan fees, FTE 5.99 % 5.95 % 5.93 % 6.00 % 6.05 % 5.95 % 5.98 % Yield on loans and leases, FTE 6.08 % 6.07 % 6.02 % 6.08 % 6.14 % 6.06 % 6.06 % Yield on earning assets, FTE 5.72 % 5.70 % 5.62 % 5.65 % 5.68 % 5.68 % 5.63 % Cost of interest-bearing deposits 2.71 % 2.62 % 2.60 % 2.79 % 2.98 % 2.64 % 2.95 % Cost of total deposits 2.26 % 2.15 % 2.12 % 2.26 % 2.44 % 2.18 % 2.40 % Cost of interest-bearing liabilities 2.81 % 2.74 % 2.72 % 2.90 % 3.07 % 2.76 % 3.01 % Net interest margin, FTE 3.45 % 3.52 % 3.48 % 3.38 % 3.25 % 3.48 % 3.25 % Per Common Share: Net income, basic $ 1.11 $ 0.97 $ 0.81 $ 0.82 $ 0.82 $ 2.89 $ 2.18Net income, diluted 1.10 0.96 0.81 0.81 0.81 2.86 2.17Operating earnings, basic¹ 1.11 0.97 0.81 0.82 0.86 2.89 2.23Operating earnings, diluted¹ 1.10 0.96 0.81 0.81 0.86 2.86 2.22Book value per common share 34.00 33.74 32.88 32.44 31.62 34.00 31.62Tangible book value per commonshare¹ 28.50 28.22 27.33 26.85 26.00 28.50 26.00 Common shares outstanding 17,095,789 17,098,473 17,098,473 17,029,317 17,028,001 17,095,789 17,028,001 ¹Non-GAAP measure. See reconciliation of Non-GAAP measures.
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14 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) NON-GAAP RECONCILIATIONS Three Months Ended Nine Months Ended Sep Jun Mar Dec Sep Sep Sep2026 2026 2026 2025 2025 2026 2025 Operating Earnings: Net income (GAAP) $ 18,627 $ 16,322 $ 13,680 $ 13,703 $ 13,686 $ 48,629 $ 36,644Noninterest income: Securities (gains) losses, net — (54) (1) — 3,715 (55) 3,719Gain on sale of SBKI — — — — (3,955) — (3,955)Noninterest expenses: Restructuring expenses — — — 16 1,310 — 1,310Income taxes: Income tax effect of adjustments — 14 — (4) (276) 14 (277) Operating earnings (Non-GAAP) $ 18,627 $ 16,282 $ 13,679 $ 13,715 $ 14,480 $ 48,588 $ 37,441 Operating earnings per common share (Non-GAAP): Basic $ 1.11 $ 0.97 $ 0.81 $ 0.82 $ 0.86 $ 2.89 $ 2.23Diluted 1.10 0.96 0.81 0.81 0.86 2.86 2.22 Operating Noninterest Income: Noninterest income (GAAP) $ 8,131 $ 7,886 $ 7,941 $ 8,219 $ 8,637 $ 23,959 $ 26,133Securities (gains) losses, net — (54) (1) — 3,715 (55) 3,719 Gain on sale of SBKI — — — — (3,955) — (3,955) Operating noninterest income (Non-GAAP) $ 8,131 $ 7,832 $ 7,940 $ 8,219 $ 8,397 $ 23,904 $ 25,897 Operating noninterest income (Non-GAAP)/averageassets1 0.52 % 0.53 % 0.56 % 0.57 % 0.59 % 0.54 % 0.64 % Operating Noninterest Expense: Noninterest expense (GAAP) $ 36,356 $ 33,955 $ 32,915 $ 32,471 $ 33,869 $ 103,228 $ 98,736 Restructuring expenses — — — (16) (1,310) — (1,310) Operating noninterest expense (Non-GAAP) $ 36,356 $ 33,955 $ 32,915 $ 32,455 $ 32,559 $ 103,228 $ 97,426 Operating noninterest expense (Non-GAAP)/averageassets2 2.34 % 2.29 % 2.31 % 2.24 % 2.29 % 2.32 % 2.40 % Operating Pre-provision Net revenue ("PPNR")Earnings: Net interest income (GAAP) $ 49,402 $ 48,064 $ 45,876 $ 45,094 $ 42,430 $ 143,342 $ 121,011 Operating noninterest income (Non-GAAP) 8,131 7,832 7,940 8,219 8,397 23,904 25,897 Operating revenue (Non-GAAP) 57,533 55,896 53,816 53,313 50,827 167,246 146,908 Operating noninterest expense (Non-GAAP) (36,356) (33,955) (32,915) (32,455) (32,559) (103,228) (97,426) Operating PPNR earnings (Non-GAAP) $ 21,177 $ 21,941 $ 20,901 $ 20,858 $ 18,268 $ 64,018 $ 49,482 Non-GAAP Return Ratios: Operating return on average assets (Non-GAAP)3 1.20 % 1.10 % 0.96 % 0.95 % 1.02 % 1.09 % 0.92 %Operating PPNR return on average assets (Non-GAAP)4 1.37 % 1.48 % 1.47 % 1.44 % 1.29 % 1.44 % 1.22 %Return on average tangible common equity (Non-GAAP)5 15.07 % 13.74 % 11.93 % 12.06 % 12.79 % 13.61 % 11.99 %Operating return on average shareholders' equity (Non-GAAP)6 12.64 % 11.43 % 9.90 % 9.96 % 10.92 % 11.35 % 9.78 %Operating return on average tangible common equity(Non-GAAP)7 15.07 % 13.70 % 11.93 % 12.07 % 13.53 % 13.60 % 12.25 % Operating Efficiency Ratio: Efficiency ratio (GAAP) 63.19 % 60.69 % 61.16 % 60.91 % 66.32 % 61.70 % 67.10 %Adjustment for taxable equivalent yields (0.34)% (0.38)% (0.41)% (0.43)% (0.47)% (0.37)% (0.48)%Adjustment for securities gains (losses) —% 0.07 % —% —% (4.50)% 0.02 % (1.65)%Adjustment for sale of SBKI —% —% —% —% 5.57 % —% 1.85 % Adjustment for restructuring cost —% —% —% (0.02)% (3.31)% —% (0.97)% Operating efficiency ratio (Non-GAAP) 62.85 % 60.38 % 60.75 % 60.45 % 63.61 % 61.35 % 65.85 % 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 tangiblecommon equity (Non-GAAP).
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15 SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information - (unaudited) (dollars in thousands) NON-GAAP RECONCILIATIONS Three Months Ended Sep Jun Mar Dec Sep2026 2026 2026 2025 2025 Tangible Common Equity: Shareholders' equity (GAAP) $ 581,256 $ 576,924 $ 562,161 $ 552,492 $ 538,482 Less goodwill and other intangible assets 93,967 94,417 94,871 95,328 95,807 Tangible common equity (Non-GAAP) $ 487,289 $ 482,507 $ 467,290 $ 457,164 $ 442,675 Average Tangible Common Equity: Average shareholders' equity (GAAP) $ 584,771 $ 571,349 $ 560,348 $ 546,489 $ 525,829 Less average goodwill and other intangible assets 94,239 94,696 95,145 95,619 101,326 Average tangible common equity (Non-GAAP) $ 490,532 $ 476,653 $ 465,203 $ 450,870 $ 424,503 Tangible Book Value per Common Share:Book value per common share (GAAP) $ 34.00 $ 33.74 $ 32.88 $ 32.44 $ 31.62 Adjustment due to goodwill and other intangible assets (5.50) (5.52) (5.55) (5.59) (5.63) Tangible book value per common share (Non-GAAP)1 $ 28.50 $ 28.22 $ 27.33 $ 26.85 $ 26.00 Tangible Common Equity to Tangible Assets:Total Assets (GAAP) $ 6,320,798 $ 6,115,306 $ 5,907,685 $ 5,860,810 $ 5,784,983 Less goodwill and other intangibles 93,967 94,417 94,871 95,328 95,807 Tangible Assets (Non-GAAP) $ 6,226,831 $ 6,020,889 $ 5,812,814 $ 5,765,482 $ 5,689,176 Tangible common equity to tangible assets (Non-GAAP) 7.83% 8.01% 8.04% 7.93% 7.78% 1Tangible book value per common share (Non-GAAP) is computed by dividing total shareholders’ equity, less goodwill and other intangible assets, bycommon shares outstanding.