8-K

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, DC 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934

Date of earliest event reported: October 19, 2021

SMARTFINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Tennessee	001-37661	62-1173944
(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)

5401 Kingston Pike, Suite 600
Knoxville, Tennessee	37919
(Address of Principal Executive Offices)	(Zip Code)

(865) 437-5700 

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):

☐  Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐  Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐  Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐  Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbol(s)	Name of Exchange on which Registered
Common Stock, par value $1.00 per share	SMBK	The Nasdaq Stock Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§ 230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§ 240.12b-2 of this chapter).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the

Exchange Act. ☐

Item 2.02 Results of Operations and Financial Condition.

On October 19, 2021, SmartFinancial, Inc. (“SmartFinancial”) issued a press release (the “Press Release”) reporting earnings results for its third quarter ending September 30, 2021. A copy of the Press Release is attached hereto as Exhibit 99.1.

In accordance with General Instructions B.2 of Form 8K, the information in Item 2.02 of this report (including Exhibit 99.1) shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 7.01 Regulation FD Disclosure.

SmartFinancial is filing an investor slide presentation that it intends to review in conjunction with its earnings release conference call on October 20, 2021. The slides are attached hereto as Exhibit 99.2.

In accordance with General Instructions B.2 of Form 8K, the information in Item 7.01 of this report (including Exhibit 99.2) shall not be deemed to be “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, and shall not be incorporated by reference into any registration statement or other document filed under the Securities Act of 1933, as amended, or the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01	Financial Statements and Exhibits
Exhibit No.	Description
99.1	Press release announcing third quarter 2021 financial results dated October 19, 2021
99.2	Third quarter 2021 investor presentation
104	Cover Page Interactive Data File (embedded within the Inline XBRL document)

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

	SMARTFINANCIAL, INC.
Date: October 19, 2021
	/s/ William Y. Carroll, Jr.
	William Y. Carroll, Jr.
	President & Chief Executive Officer

EX-99.1

Exhibit 99.1

3Q 2021

SmartFinancial Announces Results for the Third Quarter 2021

KNOXVILLE, TN – October 19, 2021 - SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NASDAQ: SMBK), today announced net income of $9.6 million, or $0.61 per diluted common share, for the third quarter of 2021, compared to net income of $6.4 million, or $0.42 per diluted common share, for the third quarter of 2020, and compared to net income of $8.8 million, or $0.58 per diluted common share, for the second quarter of 2021.  Operating earnings (Non-GAAP), which excludes securities gains, merger related and restructuring expenses and non-operating items, totaled $9.9 million, or $0.63 per diluted common share, in the third quarter of 2021, compared to $6.6 million, or $0.44 per diluted common share, in the third quarter of 2020, and compared to $9.1 million, or $0.60 per diluted common share, in the second quarter of 2021.

Highlights for the Third Quarter of 2021

● Net organic loan growth of over $52 million, an 8.6% annualized quarter-over-quarter increase

● Operating earnings (non-GAAP) of $0.63 per diluted share, a 43.2% increase from the prior-year-quarter

● Tangible book value per share (Non-GAAP) of $19.03, a 7.3% annualized quarter-over-quarter increase

● Completed the acquisition of Sevier County Bancshares (“SCB”)

● Hired seasoned commercial banking team members in Dothan, Montgomery and Birmingham, Alabama and Tallahassee, Florida

Billy Carroll, President & CEO, stated: “Our company is continuing to perform at a very high level, and we are extremely pleased with our results and accomplishments this quarter.  In addition to our solid financial performance, we closed our SCB transaction and added several outstanding, seasoned bankers to our staff.  The momentum around our team is strong and I am very excited with the direction of our company.”

SmartFinancial's Chairman, Miller Welborn, concluded: “The execution of our Strategic Plan is really coming together. All of our operating metrics are on target, and we are excited about our future.”

Net Interest Income and Net Interest Margin

Net interest income was $30.4 million for the third quarter of 2021, compared to $26.9 million for the second quarter of 2021. Average earning assets totaled $3.61 billion, an increase of $314.9 million. The growth was primarily driven by an increase in average cash and cash equivalents of $271.6 million and average loans and leases of $24.2 million. Average interest-bearing liabilities increased $212.2 million, related to continued core deposit growth and the acquisition of SCB.

The tax equivalent net interest margin was 3.35% for the third quarter of 2021, compared to 3.29% for the second quarter of 2021. The tax equivalent net interest margin was impacted by a 2 basis point increase in the average yield on interest-earning assets and offset by a 5 basis point decline in the rate on interest-bearing liabilities over the prior quarter.  The increase in yield on interest-earning assets was primarily driven by an increase of $1.7 million of loan discount accretion and Payroll Protection Program (“PPP”) fee accretion during the third quarter of 2021 when compared to the second quarter of 2021, offset by lower yielding excess liquidity.

The yield on interest-bearing liabilities decreased to 0.44% for the third quarter of 2021 when compared to 0.49% for the second quarter of 2021. The cost of average interest-bearing deposits was 0.34% for the third quarter of 2021 compared to 0.39% for the second quarter of 2021, a decrease of 5 basis points. The lower cost of average deposits was attributable to the maturing and repricing of time deposits, which decreased 16 basis points during the period. The cost of total deposits for the third quarter of 2021 was 0.25% compared to 0.29% in the second quarter of 2021.

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

	Three Months Ended
	Sep		Jun		Increase
Selected Interest Rates and Yields	2021		2021		(Decrease)
Yield on loans and leases	4.95	%	4.52	%	0.43	%
Yield on earning assets, FTE	3.67	%	3.65	%	0.02	%
Cost of interest-bearing deposits	0.34	%	0.39	%	(0.05)	%
Cost of total deposits	0.25	%	0.29	%	(0.04)	%
Cost of interest-bearing liabilities	0.44	%	0.49	%	(0.05)	%
Net interest margin, FTE	3.35	%	3.29	%	0.06	%

Provision for Loan and Lease Losses and Credit Quality

At September 30, 2021, the allowance for loan and lease losses was $19.3 million.  The allowance for loan and lease losses to total loans and leases was 0.73% as of September 30, 2021, compared to 0.74% as of June 30, 2021.  For the Company’s originated loans and leases, the allowance for loan and lease losses to originated loans and leases, less PPP loans, was 0.76% as of September 30, 2021, compared to 0.86% as of June 30, 2021.  The remaining discounts on the acquired loan and lease portfolio totaled $13.0 million, or 2.48% of acquired loans and leases as of September 30, 2021.  

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

	Three Months Ended
		Sep			Jun
Provision for Loan and Lease Losses Rollforward		2021			2021			Change
Beginning balance	$	18,310		$	18,370		$	(60)
Charge-offs		(239)			(153)			(86)
Recoveries		75			98			(23)
Net charge-offs		(164)			(55)			(109)
Provision		1,149			(5)			(1,154)
Ending balance	$	19,295		$	18,310		$	985
Allowance for loan losses to total loans and leases, gross		0.73	%		0.74	%		(0.01)	%

The Company is not required to implement the provisions of the Current Expected Credit Losses (“CECL”) accounting standard until January 1, 2023 and is continuing to account for the allowance for loan and lease losses under the incurred loss model.

Nonperforming loans and leases as a percentage of total loans and leases was 0.13% as of September 30, 2021, a decrease of 2 basis points from the 0.15% reported in the second quarter of 2021.  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 0.14% as of September 30, 2021, as compared to 0.18% as of June 30, 2021. 

2

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

	Three Months Ended
		Sep			Jun			Increase
Credit Quality		2021			2021			(Decrease)
Nonaccrual loans and leases	$	3,567		$	3,694		$	(127)
Loans and leases past due 90 days or more and still accruing		-			64			(64)
Total nonperforming loans and leases		3,567			3,758			(191)
Other real estate owned		2,415			2,499			(84)
Other repossessed assets		77			199			(122)
Total nonperforming assets	$	6,059		$	6,456		$	(397)
Nonperforming loans and leases to total loans and leases, gross		0.13	%		0.15	%		(0.02)	%
Nonperforming assets to total assets		0.14	%		0.18	%		(0.04)	%

Noninterest Income

Noninterest income increased $1.2 million to $6.3 million for the third quarter of 2021 compared to $5.1 million for the second quarter of 2021.  During the third quarter of 2021, the primary components of the changes in noninterest income were as follows:

● Increase in service charges on deposit accounts, related to the SCB acquisition, deposit growth and transaction volume;

● Increase in insurance commissions due to improved activity;

● Increase in interchange and debit card transaction fees, related to increased volume, deposit growth and the SCB acquisition; and

● Increase in other, includes $469 thousand in SWAP fee income from newly created capital markets program and $159 thousand in income from the Company’s bank owned life insurance program.

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		2021		2021		(Decrease)
Service charges on deposit accounts	$	1,220	$	1,048	$	172
Gain (loss) on sale of securities, net		45		-		45
Mortgage banking income		994		1,105		(111)
Investment services		448		567		(119)
Insurance commissions		745		557		188
Interchange and debit card transaction fees		1,078		922		156
Other		1,779		944		835
Total noninterest income	$	6,309	$	5,143	$	1,166

3

Noninterest Expense

Noninterest expense increased $2.5 million to $23.3 million for the third quarter of 2021 compared to $20.8 million for the second quarter of 2021. During the third quarter of 2021, the primary components of the changes in noninterest expense were as follows:

● Increase in salaries and employee benefits, primarily due to the hiring of additional talent from both the SCB acquisition and the Auburn, Dothan, Montgomery and Birmingham, Alabama and Tallahassee, Florida teams;

● Increase in occupancy and equipment expense from the SCB acquisition and expansion in Alabama;    

● Increase in FDIC insurance from continued asset growth; and

● Increase in data processing and technology, primarily from continued infrastructure build.

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		2021		2021		(Decrease)
Salaries and employee benefits	$	13,594	$	12,203	$	1,391
Occupancy and equipment		2,536		2,294		242
FDIC insurance		525		371		154
Other real estate and loan related expenses		407		506		(99)
Advertising and marketing		235		230		5
Data processing and technology		1,753		1,509		244
Professional services		810		849		(39)
Amortization of intangibles		711		441		270
Merger related and restructuring expenses		464		372		92
Other		2,274		2,022		252
Total noninterest expense	$	23,309	$	20,797	$	2,512

Income Tax Expense

Income tax expense was $2.6 million for the third quarter of 2021, an increase of $163 thousand, compared to $2.5 million for the second quarter of 2021.

The effective tax rate was 22.0% for the third and second quarters of 2021, respectively.

Balance Sheet Trends

Total assets at September 30, 2021 were $4.38 billion compared with $3.30 billion at December 31, 2020.  The increase of $1.08 billion is primarily attributable to increases in cash and cash equivalents of $609.4 million, securities available-for-sale of $123.7 million, loans and leases of $270.4 million, bank owned life insurance of $47.9 million and goodwill and intangibles of $14.5 related to the SCB acquisition.

Total liabilities increased to $3.96 billion at September 30, 2021 from $2.95 billion at December 31, 2020.  The increase of $1.01 billion million was primarily from organic deposit growth of $561.4 million and deposits of $432.7 million from the SCB acquisition.

Shareholders' equity at September 30, 2021 totaled $424.7 million, an increase of $67.6 million, from December 31, 2020.  The increase in shareholders' equity was primarily from the issuance of $42.3 million of common stock for the acquisition of SCB and net income of $28.1 million for the nine months ended September 30, 2021, which was offset by repurchase of the Company's common stock of $1.2 million and $2.7 million of dividends paid.  Tangible book value per share (Non-GAAP) was $19.03 at September 30, 2021, compared to $17.92 at December 31, 2020.  Tangible common equity (Non-GAAP) as a percentage of tangible assets (Non-GAAP) was 7.47% at September 30, 2021, compared with 8.41% at December 31, 2020.

4

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

	Sep		Dec		Increase
Selected Balance Sheet Information	2021		2020		(Decrease)
Total assets	$	4,384,031	$	3,304,949	$	1,079,082
Total liabilities		3,959,311		2,947,781		1,011,530
Total equity		424,720		357,168		67,552
Securities available-for-sale, at fair value		339,343		215,634		123,709
Loans and leases		2,652,663		2,382,243		270,420
Deposits		3,799,272		2,805,215		994,057
Borrowings		88,748		81,199		7,549

Conference Call Information

SmartFinancial issued this earnings release for the third quarter of 2021 on Tuesday, October 19, 2021, and will host a conference call on Wednesday, October 20, 2021, at 10:00 a.m. ET.  To access this interactive teleconference, dial (844) 200-6205 or (646) 904-5544 and enter the confirmation number, 289025.  A replay of the conference call will be available through December 22, 2021, by dialing (866) 813-9403 or (929) 458-6194 and entering the confirmation number, 781192.  Conference call materials will be published on the Company’s webpage located at http://www.smartfinancialinc.com/CorporateProfile, at 9:00 am 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 the Florida Panhandle.  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

President & CEO

(865) 868-0613   billy.carroll@smartbank.com

Ron Gorczynski

Executive Vice President, Chief Financial Officer

(865) 437-5724 ron.gorczynski@smartbank.com

Media Contact

Kelley Fowler

Senior Vice President, Public Relations & Marketing

(865) 868-0611    kelley.fowler@smartbank.com

5

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 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, including: (i) operating earnings, (ii) operating return on average assets, (iii) operating pre-tax pre-provision return on average assets, (iv) operating return on average shareholders' equity, (v) return on average tangible common equity, (vi) operating return on average tangible common equity, (vii) operating efficiency ratio, (viii) operating noninterest income, (ix) operating pre-tax pre-provision earnings (x) operating noninterest expense, (xi) tangible common equity, (xii) average tangible common equity, (xiii) tangible book value; (xiv) tangible assets; and ratios derived therefrom, in its analysis of the company's performance. Operating earnings excludes the following from net income: securities gains and losses, proceeds related to the termination of an Alabama Department of Economic and Community Affairs (“ADECA”) loan program, merger related and restructuring expenses.  Operating return on average assets is the annualized operating earnings divided by average assets.  Operating pre-tax pre-provision return on average assets is the annualized operating pre-tax pre-provision income earnings by average assets. Operating return on average shareholders' equity is the annualized operating earnings divided by average equity. Return on average tangible common equity is the annualized net income divided by average tangible common equity. Operating return on average tangible common equity is the annualized operating earnings divided by average tangible common equity (Non-GAAP). The operating efficiency ratio includes an adjustment for taxable equivalent yields and excludes securities gains and losses and merger related and restructuring expenses from the efficiency ratio. Operating noninterest income excludes the following from noninterest income: securities gains and losses, proceeds related to the termination of the ADECA loan program.  Operating pre-tax pre-provision earnings is net interest income plus operating noninterest income less operating noninterest expense.  Operating noninterest expense excludes the following from noninterest expense: prior year adjustments to salaries, merger related and restructuring expenses and certain franchise tax true-up expenses. Tangible common equity and average tangible common equity excludes goodwill and other intangible assets from shareholders' equity and average shareholders' equity, respectively.  Tangible book value is tangible common equity divided by common shares outstanding.  Tangible assets excludes goodwill and other intangibles from total assets.  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 believes these non-GAAP financial measures also 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.

6

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, including statements regarding the effects of the COVID-19 pandemic on the Company’s business and financial results and conditions, 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) the risk that cost savings and revenue synergies from recently completed acquisitions may not be realized or may take longer than anticipated to realize; (4) disruption from recently completed acquisitions with customer, supplier, employee, or other business relationships; (5) our ability to successfully integrate the businesses acquired as part of previous acquisitions with the business of SmartBank; (6) risks related to the acquisition of Sevier County Bancshares, Inc. (“SCB”); (7) the risk that the anticipated benefits from the acquisition of SCB may not be realized in the time frame anticipated; (8) changes in management’s plans for the future; (9) prevailing, or changes in, economic or political conditions, particularly in our market areas; (10) credit risk associated with our lending activities; (11) changes in interest rates, loan demand, real estate values, or competition; (12) changes in accounting principles, policies, or guidelines; (13) changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; (14) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic; (15) the impact of the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (16) potential increases in the provision for loan losses resulting from the COVID-19 pandemic; 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.

7

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

	Ending Balances
	Sep		Jun		Mar		Dec		Sep
	2021		2021		2021		2020		2020
Assets:
Cash and cash equivalents	$	1,091,160	$	673,515	$	556,701	$	481,719	$	541,815
Securities available-for-sale, at fair value		339,343		250,817		250,937		215,634		214,634
Other investments		14,972		14,584		14,728		14,794		14,829
Loans held for sale		3,418		4,334		7,870		11,721		11,292
Loans and leases		2,652,663		2,468,318		2,487,129		2,382,243		2,404,057
Less: Allowance for loan and lease losses		(19,295)		(18,310)		(18,370)		(18,346)		(18,817)
Loans and leases, net		2,633,368		2,450,008		2,468,759		2,363,897		2,385,240
Premises and equipment, net		85,346		72,314		72,697		72,682		73,934
Other real estate owned		2,415		2,499		3,946		4,619		3,932
Goodwill and other intangibles, net		104,930		90,966		86,350		86,471		86,710
Bank owned life insurance		79,145		72,013		71,586		31,215		31,034
Other assets		29,934		23,306		23,629		22,197		24,168
Total assets	$	4,384,031	$	3,654,356	$	3,557,203	$	3,304,949	$	3,387,588
Liabilities:
Deposits:
Noninterest-bearing demand	$	977,180	$	807,560	$	777,968	$	685,957	$	669,733
Interest-bearing demand		847,007		702,470		683,887		649,129		534,128
Money market and savings		1,389,393		1,140,029		1,073,941		919,631		871,098
Time deposits		585,692		489,413		512,417		550,498		577,064
Total deposits		3,799,272		3,139,472		3,048,213		2,805,215		2,652,023
Borrowings		88,748		78,834		82,642		81,199		319,391
Subordinated debt		41,909		39,388		39,367		39,346		39,325
Other liabilities		29,382		23,269		22,923		22,021		27,060
Total liabilities		3,959,311		3,280,963		3,193,145		2,947,781		3,037,799
Shareholders' Equity:
Common stock		16,801		15,110		15,105		15,107		15,233
Additional paid-in capital		292,760		252,039		251,836		252,693		254,626
Retained earnings		112,600		103,906		96,034		87,185		78,918
Accumulated other comprehensive income		2,559		2,338		1,083		2,183		1,012
Total shareholders' equity		424,720		373,393		364,058		357,168		349,789
Total liabilities & shareholders' equity	$	4,384,031	$	3,654,356	$	3,557,203	$	3,304,949	$	3,387,588

8

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
	2021		2021		2020		2020		2020		2021		2020
Interest income:
Loans and leases, including fees	$	31,674	$	28,323	$	28,018	$	28,594	$	28,621	$	88,015	$	83,718
Securities available-for-sale:
Taxable		832		916		724		609		546		2,472		1,813
Tax-exempt		331		304		259		306		364		894		1,064
Federal funds sold and other earning assets		474		309		291		303		327		1,074		1,206
Total interest income		33,311		29,852		29,292		29,812		29,858		92,455		87,801
Interest expense:
Deposits		2,153		2,248		2,331		2,580		2,897		6,733		11,016
Borrowings		121		123		117		142		334		360		674
Subordinated debt		655		584		584		584		584		1,823		1,751
Total interest expense		2,929		2,955		3,032		3,306		3,815		8,916		13,441
Net interest income		30,382		26,897		26,260		26,506		26,043		83,539		74,360
Provision for loan and lease losses		1,149		(5)		67		—		2,634		1,211		8,683
Net interest income after provision for loan and lease losses		29,233		26,902		26,193		26,506		23,409		82,328		65,677
Noninterest income:
Service charges on deposit accounts		1,220		1,048		1,009		1,032		892		3,278		2,370
Gain (loss) on sale of securities, net		45		—		—		—		(9)		45		6
Mortgage banking		994		1,105		1,139		1,331		1,029		3,238		2,544
Investment services		448		567		531		407		359		1,546		1,159
Insurance commissions		745		557		1,466		548		560		2,768		1,302
Interchange and debit card transaction fees		1,078		922		839		760		868		2,839		1,652
Other		1,779		944		707		898		422		3,429		1,417
Total noninterest income		6,309		5,143		5,691		4,976		4,121		17,143		10,450
Noninterest expense:
Salaries and employee benefits		13,594		12,203		10,869		11,516		11,032		36,666		31,395
Occupancy and equipment		2,536		2,294		2,341		2,256		2,186		7,170		6,093
FDIC insurance		525		371		371		297		534		1,266		894
Other real estate and loan related expense		407		506		602		516		643		1,514		1,535
Advertising and marketing		235		230		190		181		253		654		653
Data processing and technology		1,753		1,509		1,379		1,182		1,131		4,642		3,293
Professional services		810		849		641		786		594		2,300		2,172
Amortization of intangibles		711		441		444		571		402		1,597		1,169
Merger related and restructuring expenses		464		372		103		702		290		939		3,863
Other		2,274		2,022		2,524		1,946		2,102		6,822		5,699
Total noninterest expense		23,309		20,797		19,464		19,953		19,167		63,570		56,766
Income before income taxes		12,233		11,248		12,420		11,529		8,363		35,901		19,361
Income tax expense		2,633		2,470		2,664		2,499		1,968		7,767		4,059
Net income	$	9,600	$	8,778	$	9,756	$	9,030	$	6,395	$	28,134	$	15,302
Earnings per common share:
Basic	$	0.62	$	0.59	$	0.65	$	0.60	$	0.42	$	1.85	$	1.03
Diluted	$	0.61	$	0.58	$	0.65	$	0.59	$	0.42	$	1.84	$	1.02
Weighted average common shares outstanding:
Basic		15,557,528		15,003,657		15,011,573		15,109,298		15,160,579		15,192,919		14,903,757
Diluted		15,691,126		15,126,184		15,111,947		15,182,796		15,210,611		15,312,755		14,965,455

9

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

YIELD ANALYSIS

	Three Months Ended
	September 30, 2021						June 30, 2021						September 30, 2020
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest1		Cost1		Balance		Interest1		Cost1		Balance		Interest1		Cost1
Assets:
Loans and leases, including fees2	$	2,532,604	$	31,623	4.95	%	$	2,508,388	$	28,256	4.52	%	$	2,410,173	$	28,508	4.71	%
Loans held for sale		3,987		51	5.09	%		5,315		67	5.03	%		8,048		113	5.57	%
Taxable securities		187,032		832	1.77	%		164,935		916	2.23	%		132,642		546	1.64	%
Tax-exempt securities		87,621		477	2.16	%		89,296		453	2.04	%		88,129		515	2.32	%
Federal funds sold and other earning assets		802,712		474	0.23	%		531,125		309	0.23	%		438,785		327	0.30	%
Total interest-earning assets		3,613,956		33,457	3.67	%		3,299,059		30,001	3.65	%		3,077,777		30,009	3.88	%
Noninterest-earning assets		323,067						286,211						262,764
Total assets	$	3,937,023					$	3,585,270					$	3,340,541
Liabilities and Stockholders’ Equity:
Interest-bearing demand deposits	$	763,613		414	0.21	%	$	688,756		304	0.18	%	$	509,999		199	0.16	%
Money market and savings deposits		1,233,533		854	0.27	%		1,117,290		905	0.32	%		833,022		704	0.34	%
Time deposits		524,327		885	0.67	%		502,755		1,039	0.83	%		615,714		1,994	1.29	%
Total interest-bearing deposits		2,521,473		2,153	0.34	%		2,308,801		2,248	0.39	%		1,958,735		2,897	0.59	%
Borrowings3		80,188		121	0.60	%		81,525		123	0.61	%		319,265		334	0.42	%
Subordinated debt		40,211		654	6.47	%		39,375		584	5.95	%		39,311		584	5.91	%
Total interest-bearing liabilities		2,641,872		2,928	0.44	%		2,429,701		2,955	0.49	%		2,317,311		3,815	0.65	%
Noninterest-bearing deposits		877,831						768,399						649,489
Other liabilities		24,522						17,845						25,834
Total liabilities		3,544,225						3,215,945						2,992,634
Shareholders' equity		392,798						369,325						347,907
Total liabilities and shareholders' equity	$	3,937,023					$	3,585,270					$	3,340,541
Net interest income, taxable equivalent			$	30,529					$	27,046					$	26,194
Interest rate spread					3.23	%					3.16	%					3.22	%
Tax equivalent net interest margin					3.35	%					3.29	%					3.39	%
Percentage of average interest-earning assets to average interest-bearing liabilities					136.80	%					135.78	%					132.82	%
Percentage of average equity to average assets					9.98	%					10.30	%					10.41	%

¹ Taxable equivalent

² Includes average balance of $128,408, $266,114 and $295,045 in PPP loans for the quarters ended September 30, 2021, June 30, 2021, and September 30, 2020, respectively.

³ Includes average balance of $237,780 in Paycheck Protection Program Liquidity Facility (“PPPLF”) funding for the quarter ended September 30, 2020. No PPPLF funding was used for the quarters ended September 30, 2021, and June 30, 2021.

10

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

YIELD ANALYSIS

	Nine Months Ended
	September 30, 2021							September 30, 2020
	Average				Yield/			Average				Yield/
	Balance		Interest1		Cost1			Balance		Interest1		Cost1
Assets:
Loans and leases, including fees2	$	2,489,843	$	87,823		4.72	%	$	2,252,075	$	83,487	4.95	%
Loans held for sale		5,724		192		4.49	%		6,409		231	4.81	%
Taxable securities		163,005		2,472		2.03	%		123,895		1,813	1.95	%
Tax-exempt securities		89,244		1,339		2.01	%		81,604		1,486	2.43	%
Federal funds sold and other earning assets		584,970		1,074		0.25	%		296,449		1,206	0.54	%
Total interest-earning assets		3,332,786		92,900		3.73	%		2,760,432		88,223	4.27	%
Noninterest-earning assets		295,074							248,293
Total assets	$	3,627,860						$	3,008,725
Liabilities and Stockholders’ Equity:
Interest-bearing demand deposits	$	698,148		974		0.19	%	$	451,074		782	0.23	%
Money market and savings deposits		1,112,342		2,580		0.31	%		749,316		2,707	0.48	%
Time deposits		517,566		3,179		0.82	%		667,303		7,527	1.51	%
Total interest-bearing deposits		2,328,056		6,733		0.39	%		1,867,693		11,016	0.79	%
Borrowings3		81,177		360		0.59	%		203,202		674	0.44	%
Subordinated debt		39,650		1,823		6.15	%		39,290		1,751	5.95	%
Total interest-bearing liabilities		2,448,883		8,916		0.49	%		2,110,185		13,441	0.85	%
Noninterest-bearing deposits		782,960							537,860
Other liabilities		21,553							23,826
Total liabilities		3,253,396							2,671,871
Shareholders' equity		374,464							336,854
Total liabilities and shareholders' equity	$	3,627,860						$	3,008,725
Net interest income, taxable equivalent			$	83,984						$	74,782
Interest rate spread						3.24	%					3.42	%
Tax equivalent net interest margin						3.37	%					3.62	%
Percentage of average interest-earning assets to average interest-bearing liabilities						136.09	%					130.81	%
Percentage of average equity to average assets						10.32	%					11.20	%

¹ Taxable equivalent

² Includes average balance of $235,027 and $169,617 in PPP loans for the six months ended September 30, 2021, and 2020, respectively.

³ Includes average balance of $115,734 in Paycheck Protection Program Liquidity Facility (“PPPLF”) funding for the nine months ended September 30, 2020. No PPPLF funding was used for the nine months ended September 30, 2021.

11

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
	2021			2021			2021			2020			2020
Composition of Loans and Leases:
Commercial real estate:
owner occupied	$	560,671		$	492,750		$	477,293		$	463,771		$	467,569
non-owner occupied		752,576			669,741			593,348			549,205			563,082
Commercial real estate, total		1,313,247			1,162,491			1,070,641			1,012,976			1,030,651
Commercial & industrial		469,739			496,114			686,010			634,446			644,498
Construction & land development		326,374			300,704			285,973			278,075			275,172
Consumer real estate		478,161			444,640			432,486			443,930			440,310
Leases		53,396			53,038			—			—			—
Consumer and other		11,746			11,331			12,019			12,816			13,426
Total loans and leases	$	2,652,663		$	2,468,318		$	2,487,129		$	2,382,243		$	2,404,057
Asset Quality and Additional Loan Data:
Nonperforming loans and leases	$	3,567		$	3,758		$	6,234		$	5,782		$	2,248
Other real estate owned		2,415			2,499			3,946			4,619			3,932
Other repossessed assets		77			199			—			—			—
Total nonperforming assets	$	6,059		$	6,456		$	10,180		$	10,401		$	6,180
Restructured loans and leases not included in nonperforming loans and leases	$	212		$	219		$	250		$	257		$	8
Net charge-offs to average loans and leases (annualized)		0.03	%		0.01	%		0.01	%		0.08	%		0.01	%
Allowance for loan and leases losses to loans and leases		0.73	%		0.74	%		0.74	%		0.77	%		0.78	%
Nonperforming loans and leases to total loans and leases, gross		0.13	%		0.15	%		0.25	%		0.24	%		0.09	%
Nonperforming assets to total assets		0.14	%		0.18	%		0.29	%		0.31	%		0.18	%
Acquired loan and lease fair value discount balance	$	13,001		$	12,982		$	12,951		$	14,467		$	15,141
Accretion income on acquired loans and leases		1,760			761			1,636			768			960
PPP net fees deferred balance		3,783			6,651			7,351			4,190			6,348
PPP net fees recognized		2,873			2,132			2,398			2,157			1,812
Capital Ratios:
Equity to Assets		9.69	%		10.22	%		10.23	%		10.81	%		10.33	%
Tangible common equity to tangible assets (Non-GAAP)1		7.47	%		7.93	%		8.00	%		8.41	%		7.97	%
SmartFinancial, Inc.2
Tier 1 leverage		8.36	%		8.10	%		8.55	%		8.69	%		8.78	%
Common equity Tier 1		10.85	%		10.63	%		11.29	%		11.61	%		11.33	%
Tier 1 capital		10.85	%		10.63	%		11.29	%		11.61	%		11.33	%
Total capital		12.92	%		12.80	%		13.62	%		14.07	%		13.81	%
SmartBank		Estimated3
Tier 1 leverage		9.20	%		8.75	%		9.33	%		9.58	%		9.74	%
Common equity Tier 1		11.95	%		11.50	%		12.31	%		12.79	%		12.57	%
Tier 1 capital		11.95	%		11.50	%		12.31	%		12.79	%		12.57	%
Total capital		12.60	%		12.19	%		13.05	%		13.57	%		13.37	%

¹Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures.

²All periods presented are estimated.

³ Current period capital ratios are estimated as of the date of this earnings release.

12

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															Nine Months Ended
	Sep			Jun			Mar			Dec			Sep			Sep			Sep
	2021			2021			2021			2020			2020			2021			2020
Selected Performance Ratios (Annualized):
Return on average assets		0.97	%		0.98	%		1.18	%		1.11	%		0.76	%		1.04	%		0.68	%
Return on average shareholders' equity		9.70	%		9.53	%		10.96	%		10.15	%		7.31	%		10.05	%		6.07	%
Return on average tangible common equity¹		12.84	%		12.54	%		14.41	%		13.43	%		9.72	%		13.24	%		8.10	%
Noninterest income / average assets		0.64	%		0.58	%		0.69	%		0.61	%		0.49	%		0.63	%		0.46	%
Noninterest expense / average assets		2.35	%		2.33	%		2.35	%		2.46	%		2.28	%		2.34	%		2.52	%
Efficiency ratio		63.53	%		64.91	%		60.92	%		63.38	%		63.54	%		63.14	%		66.93	%
Operating Selected Performance Ratios (Annualized):
Operating return on average assets1		1.00	%		1.01	%		1.19	%		1.14	%		0.79	%		1.06	%		0.81	%
Operating PTPP return on average assets1		1.39	%		1.30	%		1.52	%		1.45	%		1.35	%		1.40	%		1.42	%
Operating return on average shareholders' equity1		10.01	%		9.83	%		11.05	%		10.34	%		7.57	%		10.28	%		7.20	%
Operating return on average tangible common equity1		13.26	%		12.93	%		14.53	%		13.69	%		10.06	%		13.56	%		9.60	%
Operating efficiency ratio1		62.09	%		63.46	%		60.32	%		60.86	%		62.25	%		61.96	%		62.07	%
Operating noninterest income / average assets1		0.63	%		0.58	%		0.69	%		0.56	%		0.49	%		0.63	%		0.46	%
Operating noninterest expense / average assets1		2.30	%		2.29	%		2.34	%		2.37	%		2.25	%		2.31	%		2.35	%
Selected Interest Rates and Yields:
Yield on loans and leases		4.95	%		4.52	%		4.67	%		4.72	%		4.71	%		4.72	%		4.95	%
Yield on earning assets, FTE		3.67	%		3.65	%		3.88	%		4.01	%		3.88	%		3.73	%		4.27	%
Cost of interest-bearing deposits		0.34	%		0.39	%		0.44	%		0.50	%		0.59	%		0.39	%		0.79	%
Cost of total deposits		0.25	%		0.29	%		0.33	%		0.38	%		0.44	%		0.29	%		0.61	%
Cost of interest-bearing liabilities		0.44	%		0.49	%		0.54	%		0.60	%		0.65	%		0.49	%		0.85	%
Net interest margin, FTE		3.35	%		3.29	%		3.48	%		3.57	%		3.39	%		3.37	%		3.62	%
Per Common Share:
Net income, basic	$	0.62		$	0.59		$	0.65		$	0.60		$	0.42		$	1.85		$	1.03
Net income, diluted		0.61			0.58			0.65			0.59			0.42			1.84			1.02
Operating earnings, basic¹		0.64			0.60			0.65			0.61			0.44			1.90			1.22
Operating earnings, diluted¹		0.63			0.60			0.65			0.61			0.44			1.88			1.21
Book value		25.28			24.71			24.10			23.64			22.96			25.28			22.96
Tangible book value¹		19.03			18.69			18.39			17.92			17.27			19.03			17.27
Common shares outstanding		16,801,447			15,109,736			15,104,536			15,107,214			15,233,227			16,801,447			15,233,227

¹See reconciliation of Non-GAAP measures

13

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			Sep
	2021			2021			2021			2020			2020			2021			2020
Operating Earnings:
Net income (GAAP)	$	9,600		$	8,778		$	9,756		$	9,030		$	6,395		$	28,134		$	15,302
Noninterest income:
Securities gains (losses), net		(45)			—			—			—			9			(45)			(6)
ADECA termination proceeds		—			—			—			(465)			—			—			—
Noninterest expenses:
Merger related and restructuring expenses		464			372			103			702			290			939			3,863
Income taxes:
Income tax effect of adjustments		(108)			(96)			(27)			(62)			(77)			(231)			(1,009)
Operating earnings (Non-GAAP)	$	9,911		$	9,054		$	9,832		$	9,205		$	6,617		$	28,797		$	18,150
Operating earnings per common share (Non-GAAP):
Basic	$	0.64		$	0.60		$	0.65		$	0.61		$	0.44		$	1.90		$	1.22
Diluted		0.63			0.60			0.65			0.61			0.44			1.88			1.21
Operating Noninterest Income:
Noninterest income (GAAP)	$	6,309		$	5,143		$	5,691		$	4,976		$	4,121		$	17,143		$	10,450
Securities gains (losses), net		(45)			—			—			—			9			(45)			(6)
ADECA termination proceeds		—			—			—			(465)			—			—			—
Operating noninterest income (Non-GAAP)	$	6,264		$	5,143		$	5,691		$	4,511		$	4,130		$	17,098		$	10,444
Operating noninterest income (Non-GAAP)/average assets1		0.63	%		0.58	%		0.69	%		0.56	%		0.49	%		0.63	%		0.46	%
Operating Noninterest Expense:
Noninterest expense (GAAP)	$	23,309		$	20,797		$	19,464		$	19,953		$	19,167		$	63,570		$	56,766
Merger related and restructuring expenses		(464)			(372)			(103)			(702)			(290)			(939)			(3,863)
Operating noninterest expense (Non-GAAP)	$	22,845		$	20,425		$	19,361		$	19,251		$	18,877		$	62,631		$	52,903
Operating noninterest expense (Non-GAAP)/average assets2		2.30	%		2.29	%		2.34	%		2.37	%		2.25	%		2.31	%		2.35	%
Operating Pre-tax Pre-provision ("PTPP") Earnings:
Net interest income (GAAP)	$	30,382		$	26,897		$	26,260		$	26,506		$	26,043		$	83,539		$	74,360
Operating noninterest income		6,264			5,143			5,691			4,511			4,130			17,098			10,444
Operating noninterest expense		(22,845)			(20,425)			(19,361)			(19,251)			(18,877)			(62,631)			(52,903)
Operating PTPP earnings (Non-GAAP)	$	13,801		$	11,615		$	12,590		$	11,766		$	11,296		$	38,006		$	31,901
Non-GAAP Return Ratios:
Operating return on average assets (Non-GAAP)3		1.00	%		1.01	%		1.19	%		1.14	%		0.79	%		1.06	%		0.81	%
Operating PTPP return on average assets (Non-GAAP)4		1.39	%		1.30	%		1.52	%		1.45	%		1.35	%		1.40	%		1.42	%
Return on average tangible common equity (Non-GAAP)5		12.84	%		12.54	%		14.41	%		13.43	%		9.72	%		13.24	%		8.10	%
Operating return on average shareholders' equity (Non-GAAP)6		10.01	%		9.83	%		11.05	%		10.34	%		7.57	%		10.28	%		7.20	%
Operating return on average tangible common equity (Non-GAAP)7		13.26	%		12.93	%		14.53	%		13.69	%		10.06	%		13.56	%		9.60	%
Operating Efficiency Ratio:
Efficiency ratio (GAAP)		63.53	%		64.91	%		60.92	%		63.38	%		63.54	%		63.14	%		66.93	%
Adjustment for taxable equivalent yields		(0.25)	%		(0.30)	%		(0.28)	%		(0.30)	%		(0.32)	%		(0.28)	%		(0.33)	%
Adjustment for securities gains (losses)		(0.08)	%		—	%		—	%		—	%		0.02	%		(0.03)	%		(0.01)	%
Adjustment for merger related income and costs		(1.11)	%		(1.15)	%		(0.32)	%		(2.22)	%		(0.99)	%		(0.87)	%		(4.52)	%
Operating efficiency ratio (Non-GAAP)		62.09	%		63.46	%		60.32	%		60.86	%		62.25	%		61.96	%		62.07	%

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 PTPP return on average assets (Non-GAAP) is the annualized operating PTPP 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).

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		Sep
	2021		2021		2021		2020		2020		2021		2020
Tangible Common Equity:
Shareholders' equity (GAAP)	$	424,720	$	373,393	$	364,058	$	357,168	$	349,789	$	424,720	$	349,789
Less goodwill and other intangible assets		104,930		90,966		86,350		86,471		86,710		104,930		86,710
Tangible common equity (Non-GAAP)	$	319,790	$	282,427	$	277,708	$	270,697	$	263,079	$	319,790	$	263,079
Average Tangible Common Equity:
Average shareholders' equity (GAAP)	$	392,798	$	369,325	$	360,919	$	354,026	$	347,907	$	374,464	$	336,854
Less average goodwill and other intangible assets		96,250		88,551		86,424		86,561		86,206		90,445		84,361
Average tangible common equity (Non-GAAP)	$	296,548	$	280,774	$	274,495	$	267,465	$	261,701	$	284,019	$	252,493
Tangible Book Value per Common Share:
Book value per common share (GAAP)	$	25.28	$	24.71	$	24.10	$	23.64	$	22.96	$	25.28	$	22.96
Adjustment due to goodwill and other intangible assets		(6.25)		(6.02)		(5.71)		(5.72)		(5.69)		(6.25)		(5.69)
Tangible book value per common share (Non-GAAP)1	$	19.03	$	18.69	$	18.39	$	17.92	$	17.27	$	19.03	$	17.27
Tangible Common Equity to Tangible Assets:
Total Assets	$	4,384,031	$	3,654,356	$	3,557,203	$	3,304,949	$	3,387,588	$	4,384,031	$	3,387,588
Less goodwill and other intangibles		104,930		90,966		86,350		86,471		86,710		104,930		86,710
Tangible Assets (Non-GAAP):	$	4,279,101	$	3,563,390	$	3,470,853	$	3,218,478	$	3,300,878	$	4,279,101	$	3,300,878
Tangible common equity to tangible assets (Non-GAAP)		7.47%		7.93%		8.00%		8.41%		7.97%		7.47%		7.97%

¹Tangible book value per share is computed by dividing total stockholder's equity, less goodwill and other intangible assets by common shares outstanding.

15

EX-99.2

Exhibit 99.2

1 INVESTOR CALL 3Q 2021 October 20, 2021, 10:00am ET Webcast: www.smartbank.com (Investor Relations) Audio Only: 1-844-200-6205 Access Code: 289025 Miller Welborn Chairman of the Board Billy Carroll President & CEO Ron Gorczynski CFO

DISCLOSURES Forward-Looking Statements This presentation 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, including statements regarding the effects of the COVID-19 pandemic on SmartFinancial’s business and financial results and conditions, 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) the risk of litigation and reputational risk associated with historic acquisition activity;(2) the risk that cost savings and revenue synergies from recently completed acquisitions may not be realized or may take longer than anticipated to realize;(3) disruption from recently completed acquisitions with customer, supplier, employee, or other business relationships;(4) our ability to successfully integrate the businesses acquired as part of previous acquisitions with the business of SmartBank;(5) risks related to the acquisition of Sevier County Bancshares (“SCB”);(6) the risk that the anticipated benefits from the acquisition of SCB may not be realized in the time frame anticipated;(7) changes in management’s plans for the future;(8) prevailing, or changes in, economic or political conditions, particularly in our market areas;(9) credit risk associated with our lending activities;(10) changes in interest rates, loan demand, real estate values, or competition;(11) changes in accounting principles, policies, or guidelines; (12) changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to, COVID-19;(13) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic;(14) the impact of the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations;(15) potential increases in the provision for loan losses resulting from the COVID- 19 pandemic; and (16) 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. Non-GAAP Financial Measures Statements included in this presentation include Non-GAAP financial measures 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, including:(i) operating earnings, (ii) operating return on average assets, (iii) operating return on average shareholder equity, (iv) return on average tangible common equity, (v) operating return on average tangible common equity, (vi) operating efficiency ratio;(vii) tangible common equity;(viii) average tangible common equity;(ix) tangible book value;(x) operating pre-tax pre-provision earnings;(xi) operating noninterest income;(xii) operating noninterest expense;(xiii) tangible assets; and ratios derived therefrom, in its analysis of the company's performance. Operating earnings excludes the following from net income: securities gains and losses, proceeds related to the termination of an Alabama Department of Economic and Community Affairs (“ADECA”) loan program, merger related and restructuring expenses, and the income tax effect of adjustments. Operating return on average assets is the annualized operating earnings (Non-GAAP) divided by average assets. Operating return on average shareholder equity is the annualized operating earnings (Non-GAAP) divided by average equity. Return on average tangible common equity is the annualized net income divided by average tangible common equity (Non-GAAP). Operating return on average tangible common equity is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP). The operating efficiency ratio includes an adjustment for taxable equivalent yields and excludes securities gains and losses and merger related and restructuring expenses from the efficiency ratio. Tangible common equity and average tangible common equity excludes goodwill and other intangible assets from shareholders’ equity and average shareholders’ equity. Tangible book value excludes goodwill and other intangible assets less shareholders’ equity divided by common shares outstanding. Operating pre-tax pre-provision earnings is net interest income plus operating noninterest income (Non-GAAP) less operating noninterest expense (Non-GAAP). Operating noninterest income excludes the following from noninterest income: securities gains and losses, proceeds related to the termination of the ADECA loan program. Operating noninterest expense excludes the following from noninterest expense: prior year adjustments to salaries, merger related and restructuring expenses and certain franchise tax true-up expenses. Tangible assets excludes goodwill and other intangibles from total assets. 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 believes these non-GAAP financial measures also 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. 2

$0.42 $0.58 $0.61 $0.44 $0.60 $0.63 3Q20 2Q21 3Q21 GAAP EPS OPERATING EPS $22.96 $24.71 $25.28 $17.27 $18.69 $19.03 3Q20 2Q21 3Q21 BOOK VALUE TANGIBLE BOOK VALUE 0.76% 0.98% 0.97% 0.79% 1.01% 1.00% 3Q20 2Q21 3Q21 GAAP ROAA OPERATING ROAA 9.7% 12.5% 12.8% 10.1% 12.9% 13.3% 3Q20 2Q21 3Q21 GAAP ROATCE OPERATING ROATCE 3 Financial data as of or for the three months ended 9/30/21 1) For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix 2) QoQ: Quarter-over-Quarter 3) “Loans” for purposes of this presentation includes all SmartFinancial loans and leases 4) Organic loan growth excludes PPP loans and impact from SCB acquisition and Richmond, VA loan sale; organic deposit growth excludes impact of SCB acquisition QUARTERLY HIGHLIGHTS: THIRD QUARTER 2021 7% QOQ2 ANNUALIZED TANG. BOOK VALUE PER SHARE GROWTH1 $0.63 DILUTED OPERATING EPS1 1.00% OPERATING RETURN ON AVERAGE ASSETS1 13.3% OPERATING RETURN AVERAGE TANG. COMMON EQUITY1 62% OPERATING EFFICIENCY RATIO1 29% QOQANNUALIZED ORGANIC DEPOSIT GROWTH4 9% QOQANNUALIZED ORGANIC LOAN3 GROWTH4 70% LOAN / DEPOSIT RATIO 0.14% NON-PERFORMING ASSETS / ASSETS $4.4 BILLION IN TOTAL ASSETS EARNINGS PER SHARE BOOK VALUE PER SHARE RETURN ON AVERAGE ASSETS RETURN ON AVERAGE TANGIBLE COMMON EQUITY

4 SMARTFINANCIAL: EXPANDING SOUTHEAST FRANCHISE $4.4 BILLION IN TOTAL ASSETS $2.7 BILLION IN TOTAL LOANS We are building a culture where Associates thrive and are empowered to be leaders. The core values that we have established as a company help us operate in unison and have become a critical part of our culture. Our Associates are key to SmartBank’s success. $3.8 BILLION IN TOTAL DEPOSITS 40 TOTAL BRANCHES1 KNOXVILLE NASHVILLE HUNTSVILLE TUSCALOOSA MOBILE PENSACOLA BIRMINGHAM AUBURN TALLAHASSEE DOTHAN MONTGOMERY LEGACY SMARTBANK BRANCH OFFICES NEW SMARTBANK BRANCH OFFICES LOAN PRODUCTION OFFICE PLANNED FUTURE EXPANSION CHATTANOOGA Balance sheet and branch count represent 9/30/21 balances; 1) assumes closing of five SCB branches including the SCB Richmond, VA branch, opening of Auburn, Dothan, Mobile and Montgomery, AL locations and consolidation of two Murfreesboro, TN locations

Core Tennessee3 Central Tennessee / Nashville6 Total Deposits in Market $41.3 Billion Total Deposits in Market $89.2 Billion Current Population (2021) 1,549,636 Current Population (2021) 1,980,990 Proj. Pop. Growth ('21-'26) 4.0% Proj. Pop. Growth ('21-'26) 5.9% Proj. HH Inc. Growth ('21-'26) 9.7% Proj. HH Inc. Growth ('21-'26) 11.4% East Middle Tennessee4 Alabama Expansion7 Total Deposits in Market $9.9 Billion Total Deposits in Market $73.5 Billion Current Population (2021) 429,125 Current Population (2021) 1,784,492 Proj. Pop. Growth ('21-'26) 4.2% Proj. Pop. Growth ('21-'26) 1.5% Proj. HH Inc. Growth ('21-'26) 9.3% Proj. HH Inc. Growth ('21-'26) 10.1% Legacy Alabama5 Florida Panhandle8 Total Deposits in Market $34.7 Billion Total Deposits in Market $32.7 Billion Current Population (2021) 1,417,711 Current Population (2021) 1,368,618 Proj. Pop. Growth ('21-'26) 3.0% Proj. Pop. Growth ('21-'26) 5.0% Proj. HH Inc. Growth ('21-'26) 6.2% Proj. HH Inc. Growth ('21-'26) 10.0% MARKET AREA: TARGETING INDUSTRY RICH GROWTH MARKETS 5 LEGACY MARKET AREA EXPANDING MARKET AREA 1) Percentages based on combined Legacy Market Area vs. Expanding Market Area; 2) Business generating associates in Expanding Market Area as a percent of total SmartBank revenue producing associates adjusted for impact of SCB; 3) Core Tennessee includes Chattanooga, TN, Knoxville, TN and Sevierville, TN MSAs; 4) East Middle Tennessee includes Cleveland, TN, Crossville, TN, Cookeville, TN, Fentress, TN and Tullahoma, TN MSAs; 5) Legacy Alabama includes Clarke, AL, Fairhope, AL, Huntsville, AL, Mobile, AL and Tuscaloosa, AL MSAs; 6) Central Tennessee / Nashville includes the Nashville, TN MSA 7) Alabama Expansion includes Auburn, AL, Birmingham, AL, Dothan, AL and Montgomery, AL MSAs; 8) Florida Panhandle includes Fort Walton/Destin, FL, Panama City, FL, Pensacola, FL and Tallahassee, FL MSAs Source: S&P Market Intelligence; Weighted Averages for each market area based on population 127% LARGER DEPOSIT BASE 51% LARGER POPULATION BASE 14% HIGHER MEDIAN HOUSEHOLD INCOME 2.4% FASTER HOUSEHOLD INCOME GROWTH 0.5% FASTER PROJECTED POPULATION GROWTH SMARTBANK IS FOCUSED ON BUILDING MUSCLE IN ITS EXPANDING, FAST GROWING SOUTHEAST MARKET AREAS EXPANDING MARKETS VS. LEGACY MARKETS1 19% OFTOTAL REVENUE PRODUCING ASSOCIATES2

6 1) SmartBank and SCB Bank combined market share in Sevier County, TN; S&P Market Intelligence; 2) SCB loan total net of Richmond, VA loan sale as of closing date; 3) See page 5 for definition of Expanding Market Area; 4) Business generating associates as a percent of total SmartBank revenue producing associates adjusted for impact of SCB; 5) Relationship management stats at previous place of employment immediately prior to joining SmartBank 2021 ACHIEVEMENTS: A ROBUST YEAR OF PROGRESS $219 MILLION IN LOANS2 $436 MILLION IN DEPOSITS >34% MARKET SHARE IN SEVIER COUNTY, TN1 >65% TOTAL NONINTEREST EXPENSE SAVINGS ACQUISITION OF SEVIER COUNTY BANCSHARES: 1 NEW LENDING LINE OF BUSINESS $53 MILLION IN LEASES 6 BUSINESS DEVELOPMENT TEAM MEMBERS >$1.8 MILLION IN PROJECTED 2022 NET INCOME ACQUISITION OF FOUNTAIN EQUIPMENT FINANCE: EXPANDING MARKET AREA3 LIFT-OUTS: 17 SEASONED BANKERS ❖ 4 SENIOR BANKING MANAGERS ❖ 10 COMMERCIAL RELATIONSHIP MANAGERS 200+ YEARS LARGE REGIONAL BANK EXPERIENCE 3 NEW BRANCHES IN AUBURN, DOTHAN AND MONTGOMERY, ALABAMA 16% OFTOTAL REVENUE PRODUCING ASSOCIATES4 FLOOR PLAN LENDING UNIT LIFT-OUT: 1 OPERATIONS MANAGER 3 SEASONED BUSINESS LINE ANALYSTS 61+ YEARS COMBINED FLOOR PLAN LENDING EXPERIENCE 131 DEALER RELATIONSHIPS PREVIOUSLY MANAGED5 $2.0 BILLION IN COMMITMENTS PREVIOUSLY MANAGED5 ❖ 2 PRIVATE BANKERS ❖ 1 TREASURY MANAGEMENT OFFICER

$1,319 $1,775 $1,897 $2,382 $2,487 $2,468 $2,653 5.31% 5.72% 5.49% 4.72% 4.67% 4.52% 4.95% 3. 00% 4. 00% 5. 00% 6. 00% 7. 00% 8. 00% 9. 00% 10. 00% $- $500 $1, 000 $1, 500 $2, 000 $2, 500 $3, 000 2017Y 2018Y 2019Y 4Q20 1Q21 2Q21 3Q21 $1,439 $1,922 $2,047 $2,805 $3,048 $3,139 $3,799 0.55% 0.86% 1.14% 0.38% 0.33% 0.29% 0.25% 0. 00% 0. 50% 1. 00% 1. 50% 2. 00% 2. 50% $- $500 $1, 000 $1, 500 $2, 000 $2, 500 $3, 000 $3, 500 $4, 000 2017Y 2018Y 2019Y 4Q20 1Q21 2Q21 3Q21 7 1) CAGR: Compound Annualized Growth Rate BALANCE SHEET: CONTINUED BALANCE SHEET EXPANSION TOTAL LOANS CAGR1 OF 20% SINCE 2017 TOTAL DEPOSITS LOANS TO DEPOSITS RATIO OF 70% $ in Millions AVERAGE LOAN YIELD AVERAGE TOTAL DEPOSIT COST

19% 19% 19% 20% 21% 23% 23% 24% 27% 28% 13% 12% 14% 7% 3% 14% 15% 14% 13% 14% 11% 12% 11% 12% 12% 18% 19% 17% 18% 18% 3% $2,404 $2,382 $2,487 $2,468 $2,653 3Q20 4Q20 1Q21 2Q21 3Q21 CRE, OO CRE, NOO SBA PPP LOANS C&I C&D CONSUMER RE LEASES & OTHER 14%, $68 12%, $83 21%, $65 9%, $26 8%, $34 1%, $1 12%, $276 CRE, OO CRE, NOO C&I C&D CONSUMER RE LEASES & OTHER TOTAL 8 1) Excludes SBA PPP Loans and includes acquisition of SCB less Richmond, VA loan sale LOAN PORTFOLIO: STRONG ORGANIC LOAN GROWTH $ in Millions LOAN COMPOSITION ORGANIC GROWTH DESPITE MARKET HEADWINDS QUARTERLY LOAN GROWTH 12% QOQNET NEW LOAN GROWTH1

25% 24% 26% 26% 26% 20% 23% 22% 22% 22% 33% 33% 35% 36% 37% 22% 20% 17% 16% 15% $2,652 $2,805 $3,048 $3,139 $3,799 3Q20 4Q20 1Q21 2Q21 3Q21 NONINTEREST DEMAND INTEREST-BEARING DEMAND MONEY MARKET AND SAVINGS TIME DEPOSITS 21%, $170 21%, $145 22%, $249 20%, $96 21%, $660 NONINTEREST DEMAND INTEREST-BEARING DEMAND MONEY MARKET AND SAVINGS TIME DEPOSITS TOTAL 9 DEPOSIT PORTFOLIO: CONTINUED CORE DEPOSIT GROWTH $ in Millions DEPOSIT COMPOSITION CORE DEPOSIT GROWTH OUTPACING TIME DEPOSIT CONTRACTION QUARTERLY DEPOSIT GROWTH 21% QOQNET NEW DEPOSIT GROWTH1 1) Includes acquisition of SCB impact

$542 $482 $557 $674 $1,091 $215 $216 $251 $251 $339 6.3% 6.5% 7.1% 6.9% 7.7% 0.0% 5.0% 10.0% 15.0% 20.0% 25.0% 30.0% 35.0% 40.0% 45.0% 50.0% $- $200 $400 $600 $800 $1,000 $1,200 3Q20 4Q20 1Q21 2Q21 3Q21 CASH AND CASH EQUIV.SECURITIES (AFS) SECURITIES (AFS) / TOTAL ASSETS 10 LIQUIDITY UTILIZATION: MARGIN MANAGEMENT WHILE DRIVING REVENUE $ in Millions CASH AND SECURITIES DEPLOYING EXCESS FUNDING MARGIN / OPERATING REVENUE 14% QOQOPERATING REVENUE GROWTH $ in Thousands 1) Based on the weighted average of the AFS securities portfolio. Yields related to investment securities exempt from income taxes are stated on a taxable-equivalent basis assuming a federal income tax rate of 21.0% Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix 3Q20 4Q20 1Q21 2Q21 3Q21 Cash Yield 0.30% 0.35% 0.28% 0.23% 0.23% Sec. Yield (AFS)1 1.91% 2.02% 2.02% 2.16% 1.89% Loans (less Accr./PPP Fees) 4.25% 4.23% 4.00% 4.06% 4.21% Accretion 0.16% 0.13% 0.27% 0.12% 0.28% PPP Fees 0.30% 0.36% 0.40% 0.34% 0.46% Loan Yield (incl. Fees) 4.71% 4.72% 4.67% 4.52% 4.95% IE Asset Yield 3.88% 4.01% 3.88% 3.65% 3.67% NIM (FTE) 3.39% 3.57% 3.48% 3.29% 3.35% $26,043 $26,506 $26,260 $26,897 $30,382 $4,130 $4,511 $5,691 $5,143 $6,264 $30,173 $31,017 $31,951 $32,040 $36,646 3.39% 3.57% 3.48% 3.29% 3.35% $- $5,000 $10,000 $15,000 $20,000 $25,000 $30,000 $35,000 $40,000 2.50% 3.00% 3.50% 4.00% 4.50% 3Q20 4Q20 1Q21 2Q21 3Q21 NET INTEREST INCOME OPERATING NONINTEREST INCOME (NON-GAAP) NET INTEREST MARGIN (FTE)

11 NONINTEREST REVENUE DETAILS: GROWING FEE INCOME OPERATING NONINTEREST INCOME1 CONTINUING TO STRENGTHEN $ in Thousands 1) Non-GAAP operating non-interest income shown Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix DIFFERENTIATED REVENUE STREAMS BUILDING AFAMILY OF DIVERSIFIED REVENUE GENERATORS $4,130 $4,511 $5,691 $5,143 $6,264 3Q20 4Q20 1Q21 2Q21 3Q21 SERVICE CHARGES ON DEPOSIT ACCOUNTS MORTGAGE BANKING INCOME INVESTMENT SERVICES INCOME INSURANCE COMMISSIONS INTERCHANGE FEES OTHER NONINTEREST INCOME

64% 63% 61% 65% 64% 62% 61% 60% 63% 62% 3Q20 4Q20 1Q21 2Q21 3Q21 EFFICIENCY RATIO OPERATING EFFICIENCY RATIO (NON-GAAP) $18,877 $19,251 $19,361 $20,425 $22,845 3Q20 4Q20 1Q21 2Q21 3Q21 SALARIES & BENEFITS OCCUPANCY & EQUIPMENT DATA PROCESSING & TECHNOLOGY PROFESSIONAL SERVICES AMORTIZATION OF INTANGIBLES OTHER NONINTEREST EXPENSE 12 1) Non-GAAP operating non-interest expense shown Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix OPERATING EXPENSE: INVESTING IN GROWTH EFFICIENCY RATIO EXECUTING ON MARKET EXPANSION OPPORTUNITIES OPERATING NONINTEREST EXPENSE1 ELEVATED EXPENSES RELATED TO ACQUISITION AND LIFT-OUTS $ in Thousands

Enhanced work from home security upgrade Q1 2021 Branch network modernization Q2 2021 13 Digital consumer deposit origination upgrade Q2 2021 nCino commercial loan origination platform upgrade Q1 2022 Q2 2021 Online mortgage origination enhancements Q1 2021 Work from home technology upgrade Q2 2021 Cloud-based Contact Center Enhanced cyber security technology Q2 2021 OPERATING EXPENSE: TECHNOLOGY INVESTMENT INVESTING IN OUR PLATFORM TO MAKE SMARTBANK AN EASIER ORGANIZATION WITH WHICH TO DO BUSINESS Digital Transformation Plan, led by new Chief Information Officer Q3 2020 Q2 2021 Telecommunications management upgrade Q3 2021 Redesigned smartbank.com Core OS platform upgrade Q4 2021 ATM fleet replacement with ITM upgrade Q3 2022 Teller modernization bank-wide Q2 2022 Q3 2022 Commercial online account origination Q2 2022 Digital marketing platform upgrade Q1 2022 Treasury Management platform upgrade Q2 2022 Centralized bank application support team Data analytics platform implementation Q2 2022 $ PAY

$6,180 $10,401 $10,180 $6,456 $6,059 0.18% 0.31% 0.29% 0.18% 0.14% -0. 10% 0.10% 0.30% 0.50% 0.70% 0.90% 1.10% 1.30% 1.50% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 3Q20 4Q20 1Q21 2Q21 3Q21 NONPERFORMING LOANS OREO & OTHER REPOS NONPERFORMING ASSETS / TOTAL ASSETS $6,089 $9,606 $11,756 $6,699 $7,768 0.25% 0.40% 0.47% 0.27% 0.29% -0. 10% 0.10% 0.30% 0.50% 0.70% 0.90% 1.10% 1.30% 1.50% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 3Q20 4Q20 1Q21 2Q21 3Q21 TOTAL DELINQUENT & NONACCRUAL LOANS & LEASES TOTAL DELINQUENT & NONACCRUAL LOANS & LEASES / TOTAL LOANS & LEASES 0.29% 0.44% 0.39% 0.29% 0.36% 0.01% 0.08% 0.01% 0.01% 0.03% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 0.45% 0.50% 3Q20 4Q20 1Q21 2Q21 3Q21 CLASSIFIED LOANS AND LEASES / TOTAL LOANS & LEASES NET CHARGEOFFS 275% 265% 275% 299% 295% 89% 89% 90% 94% 89% 0% 50% 100% 150% 200% 250% 300% 350% 3Q20 4Q20 1Q21 2Q21 3Q21 CRE LOANS / CAPITAL C&D LOANS / CAPITAL 14 CREDIT QUALITY DELINQUENT AND NONACCRUALS / TOTAL LOANS NONPERFORMING ASSETS COMMERCIAL REAL ESTATE CONCENTRATION ASSET QUALITY: STRONG UNDERWRITING PAYS DIVIDENDS $ in Thousands

15 PAYCHECK PROTECTION PROGRAM (“PPP”): WINDING DOWN Note: As of 9/30/21 Originated Acquired O/S Balance Forgiven # of Loans 2,957 25 40 2,942 % of Total 1% 99% Total Loan Balance 300,789 $ 2,208 $ 3,894 $ 299,103 $ % of Total 1% 99% Total Fees 10,068 $ - $ Originated Acquired O/S Balance Forgiven # of Loans 1,801 - 1,086 715 % of Total 60% 40% Total Loan Balance 138,398 $ - $ 83,215 $ 55,183 $ % of Total 60% 40% Total Fees 7,035 $ 3,783 $ 2020 PPP Vintage 2021 PPP Vintage PPP Remaining Balance, 60% PPP Forgiven, 40% PPP Remaining Balance, 1% PPP Forgiven, 99%

16 RESERVE RECONCILIATION: $ in Thousands $18,817 $18,346 $18,370 $18,310 $19,295 $15,141 $14,467 $12,951 $12,982 $13,001 1.00% 0.96% 0.91% 0.86% 0.76% 0.00% 0.50% 1.00% 1.50% 2.00% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 $14,000 $16,000 $18,000 $20,000 3Q20 4Q20 1Q21 2Q21 3Q21 ALLOWANCE FOR LOAN LOSSES ACQUIRE LOAN FAIR VALUE DISCOUNTS ALLOWANCE -ORIGINATED / ORIG. L&L, LESS PPP 3Q20 4Q20 1Q21 2Q21 3Q21 Allowance / Total Loans & Leases ("L&L") 0.78% 0.77% 0.74% 0.74% 0.73% Allowance / Total L&L, less PPP 0.89% 0.88% 0.85% 0.80% 0.75% Allowance - Originated / Orig. L&L, less PPP 1.00% 0.96% 0.91% 0.86% 0.76% Allowance - Acquired / Acquired L&L 0.49% 0.49% 0.57% 0.47% 0.74% Acquired FV Discount / Acquired L&L 3.53% 3.76% 3.74% 3.61% 2.48% Total Reserves / Total L&L 1.41% 1.38% 1.26% 1.27% 1.22% Total Reserves / Total L&L, less PPP 1.61% 1.57% 1.46% 1.37% 1.26%

8.0% 8.4% 8.0% 7.9% 7.5% 3Q20 4Q20 1Q21 2Q21 3Q21 11.3% 11.6% 11.3% 10.6% 10.9% 3Q20 4Q20 1Q21 2Q21 3Q21 8.8% 8.7% 8.6% 8.1% 8.4% 3Q20 4Q20 1Q21 2Q21 3Q21 13.8% 14.1% 13.6% 12.8% 12.9% 3Q20 4Q20 1Q21 2Q21 3Q21 $13.90 $14.64 $16.82 $17.92 $18.39 $18.69 $19.03 $5.00 $7.00 $9.00 $11.00 $13.00 $15.00 $17.00 $19.00 $21.00 2017Y 2018Y 2019Y 2020Y 1Q21 2Q21 3Q21 TANGIBLE BOOK VALUE CAPITAL: WELL CAPITALIZED –BUILDING BOOK VALUE 17 1) Non-GAAP financial measure. For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix Note: Capital ratio data as of the most recent period ended 9/30/21 TCE / TA1 CET1 RATIO TOTAL CAPITAL RATIO LEVERAGE RATIO BASEL III REGULATORY CAPITAL MINIMUM TOBECONSIDERED “WELL CAPITALIZED” 9% CAGR ’17 –’21 BUILDING SHAREHOLDER VALUE TANGIBLE BOOK VALUE PER SHARE1 $0.06 QUARTERLY DIVIDEND $5.13 TBV PER SHARE1 CREATED ’17 –‘ 21 5% WELL CAPITALIZED 10% WELL CAPITALIZED 6.5% WELL CAPITALIZED 1

WHY SMARTBANK: INVESTMENT HIGHLIGHTS 18 FRANCHISE SCARCITY VALUE –BUILDING SOUTHEAST DENSITY ENGAGED MANAGEMENT TEAM STABLE MARKETS EXPERIENCING POPULATION EXPANSION LOW-COST DEPOSIT BASE GROWING BUSINESS LINES WITH REVENUE DIVERSIFICATION SOLID CREDIT QUALITY AND UNDERWRITING HISTORY OF DEFENDING BOOK VALUE AND DELIVERING SHAREHOLDER VALUE $

APPENDIX 19

20 Note: For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix INCOME STATEMENT: DETAILED THIRD QUARTER RESULTS 2Q21 3Q20 ($ in thousands, except per share data) 3Q21 2Q21 3Q20 % Chg. % Chg. Net Interest Income 30,382 $ 26,897 $ 26,043 $ 13% 17% Provision for Loan & Lease losses 1,149 (5) 2,634 Noninterest Income 6,309 5,143 4,121 23% 53% Noninterest Expense 23,309 20,797 19,167 12% 22% Income Tax Expense 2,633 2,470 1,968 Net Income (GAAP) 9,600 $ 8,778 $ 6,395 $ 9% 50% Non-GAAP Reconciliations Noninterest Income (45) - 9 Noninterest Expense 464 372 290 Income Tax Effect Of Adjustments (108) (96) (77) Operating Earnings (Non-GAAP) 9,911 $ 9,054 $ 6,617 $ 9% 50% Operating PTPP Earnings (Non-GAAP) 13,801 $ 11,615 $ 11,296 $ 19% 22% 2Q21 3Q20 Non-GAAP Performance Metrics 3Q21 2Q21 3Q20 % Chg. % Chg. Diluted Operating Earnings Per Share 0.63 $ 0.60 $ 0.44 $ 6% 42% Tangible Book Value Per Common Share 19.03 $ 18.69 $ 17.27 $ 2% 10% Operating Return on Average Assets 1.00% 1.01% 0.79% (1bps) 21bps Operating PTPP Return on Average Assets 1.39% 1.30% 1.35% 9bps 5bps Operating Return on Average Tang. Common Equity 13.3% 12.9% 10.1% 0% 3% Operating Efficiency Ratio 62.1% 63.5% 62.3% (1%) (0%) 3Q21 vs. 3Q21 vs.

NON-GAAP RECONCILIATION 21 $ in Thousands, except per share data 1. Note:“ADECA” represents a loan program administered by the Alabama Department of Economic and Community Affairs 2. Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets. 3. Operating PTPP return on average assets (Non- GAAP) is the annualized operating PTPP earnings (Non-GAAP) divided by average assets. 4. Return on average tangible common equity (Non- GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP). 5. Operating return on average shareholders’ equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average shareholder equity. 6. Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP). 3Q21 2Q21 1Q21 4Q20 3Q20 Operating Earnings Net Income (GAAP) 9,600 $ 8,778 $ 9,756 $ 9,030 $ 6,395 $ Noninterest Income: Securities (Gains) Losses (45) - - - 9 ADECA Termination Proceeds(1) - - - (465) - Noninterest Expenses: Merger Related And Restructuring Expenses 464 372 103 702 290 Income Taxes: Income Tax Effect Of Adjustments (108) (96) (27) (62) (77) Operating Earnings (Non-GAAP) 9,911 $ 9,054 $ 9,832 $ 9,205 $ 6,617 $ Operating Earnings Per Common Share: Basic 0.64 $ 0.60 $ 0.65 $ 0.61 $ 0.44 $ Diluted 0.63 0.60 0.65 0.61 0.44 Operating Noninterest Income Noninterest Income (GAAP) 6,309 $ 5,143 $ 5,691 $ 4,976 $ 4,121 $ Securities (Gain) Losses (45) - - - 9 ADECA Termination Proceeds - - - (465) - Operating Noninterest Income (Non-GAAP) 6,264 $ 5,143 $ 5,691 $ 4,511 $ 4,130 $ Operating Noninterest Expense Noninterest Expense (GAAP) 23,309 $ 20,797 $ 19,464 $ 19,953 $ 19,167 $ Merger Related And Restructuring Expenses (464) (372) (103) (702) (290) Operating Noninterest Expense (Non-GAAP) 22,845 $ 20,425 $ 19,361 $ 19,251 $ 18,877 $ Operating Pre-Tax Pre-Provison ("PTPP") Earnings Net Interest Income (GAAP) 30,382 $ 26,897 $ 26,260 $ 26,506 $ 26,043 $ Operating Noninterest Income (Non-GAAP) 6,264 5,143 5,691 4,511 4,130 Operating Noninterest Expense (Non-GAAP) (22,845) (20,425) (19,361) (19,251) (18,877) Operating PTPP Earnings (Non-GAAP) 13,801 $ 11,615 $ 12,590 $ 11,766 $ 11,296 $ Non-GAAP Return Ratios Operating Return On Average Assets (Non-GAAP)(2) 1.00% 1.01% 1.19% 1.14% 0.79% Operating PTPP Return On Average Assets (Non-GAAP)(3) 1.39% 1.30% 1.52% 1.45% 1.35% Return On Average Tangible Common Equity (Non-GAAP)(4) 12.84% 12.54% 14.41% 13.43% 9.72% Operating Return On Average Shareholders' Equity (Non-GAAP)(5) 10.01% 9.83% 11.05% 10.34% 7.57% Operating Return On Average Tangible Common Equity (Non-GAAP)(6) 13.26% 12.93% 14.53% 13.69% 10.06% Operating Efficiency Ratio Efficiency Ratio (GAAP) 63.53% 64.91% 60.92% 63.38% 63.54% Adjustment For Taxable Equivalent Yields (0.25%) (0.30%) (0.28%) (0.30%) (0.32%) Adjustment For Securities Gains (Losses) (0.08%) --- 0.02% Adjustment For Merger Expenses (1.11%) (1.15%) (0.32%) (2.22%) (0.99%) Operating Efficiency Ratio (Non-GAAP) 62.09% 63.46% 60.32% 60.86% 62.25%

NON-GAAP RECONCILIATION 22 $ in Thousands, except per share data 1. Book value per share is computed by dividing total stockholders’ equity by common shares outstanding. Tangible book value per share is computed by dividing total stockholders’ equity, less goodwill and other intangible assets by common shares outstanding 3Q21 2Q21 1Q21 4Q20 3Q20 Tangible Common Equity: Shareholders' Equity (GAAP) 424,720 $ 373,393 $ 364,058 $ 357,168 $ 349,789 $ Less Goodwill And Other Intangible Assets 104,930 90,966 86,350 86,471 86,710 Tangible Common Equity (Non-GAAP) 319,790 $ 282,427 $ 277,708 $ 270,697 $ 263,079 $ Average Tangible Common Equity: Average Shareholders' Equity (GAAP) 392,798 $ 369,325 $ 360,919 $ 354,026 $ 347,907 $ Less Goodwill And Other Intangible Assets 96,250 88,551 86,424 86,561 86,206 Average Tangible Common Equity (Non-GAAP) 296,548 $ 280,774 $ 274,495 $ 267,465 $ 261,701 $ Tangible Book Value Per Common Share: Book Value Per Common Share (GAAP) 25.28 $ 24.71 $ 24.10 $ 23.64 $ 22.96 $ Adjustment Due To Goodwill And Other Intangible Assets (6.25) (6.02) (5.71) (5.72) (5.69) Tangible Book Value Per Common Share (Non-GAAP)(1) 19.03 $ 18.69 $ 18.39 $ 17.92 $ 17.27 $ Tangible Common Equity To Tangible Assets: Total Assets 4,384,031 $ 3,654,356 $ 3,557,203 $ 3,304,949 $ 3,387,588 $ Less Goodwill And Other Intangibles 104,930 90,966 86,350 86,471 86,710 Tangible Assets (Non-GAAP) 4,279,101 $ 3,563,390 $ 3,470,853 $ 3,218,478 $ 3,300,878 $ Tangible Common Equity To Tangible Assets (Non-GAAP): 7.47% 7.93% 8.00% 8.41% 7.97%

CONTACT 23 BILLY CARROLL PRESIDENT & CEO 865.868.0613 BILLY.CARROLL@SMARTBANK.COM MILLER WELBORN CHAIRMAN 423.385.3067 MILLER.WELBORN@SMARTBANK.COM 5401 KINGSTON PIKE, SUITE 600 KNOXVILLE, TN 37919 RON GORCZYNSKI CHIEF FINANCIAL OFFICER 865.437.5724 RON.GORCZYNSKI@SMARTBANK.COM

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Document and Entity Information	Oct. 19, 2021
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Oct. 19, 2021
Entity File Number	001-37661
Entity Registrant Name	SMARTFINANCIAL, INC.
Entity Incorporation, State or Country Code	TN
Entity Tax Identification Number	62-1173944
Entity Address, Address Line One	5401 Kingston Pike
Entity Address, Adress Line Two	Suite 600
Entity Address, City or Town	Knoxville
Entity Address, State or Province	TN
Entity Address, Postal Zip Code	37919
City Area Code	865
Local Phone Number	437-5700
Written Communications	false
Soliciting Material	false
Pre-commencement Tender Offer	false
Pre-commencement Issuer Tender Offer	false
Title of 12(b) Security	Common Stock, par value $1.00
Trading Symbol	SMBK
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false
Entity Central Index Key	0001038773
Amendment Flag	false