SmartFinancial (SMBK) Q1 2026 earnings summary

Executive summary

• Net income for Q1 2026 was $13.7 million ($0.81 per diluted share), up from $11.3 million ($0.67 per share) in Q1 2025 and flat sequentially from Q4 2025, with annualized ROAA of 0.96% and ROAE of 9.90%.

• Achieved strong organic loan growth of $155 million (14% annualized) and core deposit growth of $95 million (7% annualized) quarter-over-quarter.

• Tangible book value per share increased to $27.33, up from $26.85 at year-end and 16% year-over-year.

• Continued focus on leveraging infrastructure investments, operational efficiency, and expanding in high-growth Southeast markets.

• Added a Director of Private Banking and Wealth Management, supporting business line growth and Nashville market expansion.

Financial highlights

• Net interest income rose to $45.9 million, up $7.6 million year-over-year and $782,000 sequentially, with net interest margin (FTE) improving to 3.48%.

• Operating noninterest income was $7.9 million, slightly down from last quarter, mainly due to lower capital markets and insurance subsidiary sale.

• Operating noninterest expenses were $32.9 million, modestly below guidance, with higher salary and benefit expenses.

• Allowance for credit losses increased to $44 million (0.97% of loans and leases), reflecting updated ACL methodology.

• Operating efficiency ratio improved to 60.7% from 68.5% a year ago.

Outlook and guidance

• Management expects continued loan and deposit growth, with a focus on core deposit relationships and prudent credit risk management.

• Net interest margin expected to remain flat in Q2 and increase slightly in the second half of 2026, assuming a flat rate environment.

• Noninterest income projected at $7.8 million and noninterest expense at $34–$34.5 million for Q2; salary and benefits expected at $20.5–$21 million.

• Efficiency ratio targeted to trend down to 60% by year-end.

• Strategic focus on business pipeline growth, operational efficiency, and selective expansion.