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: January 23, 2023

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:

☐  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 January 23, 2023, SmartFinancial, Inc. (“SmartFinancial”) issued a press release (the “Press Release”) reporting earnings results for its fourth quarter ending December 31, 2022. 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 January 24, 2023. 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 fourth quarter 2022 financial results dated January 23, 2023
99.2	Fourth quarter 2022 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: January 23, 2023
	/s/ William Y. Carroll, Jr.
	William Y. Carroll, Jr.
	President & Chief Executive Officer

EX-99.1

Exhibit 99.1

4Q 2022

SmartFinancial Announces Results for the Fourth Quarter 2022

Highlights for the Fourth Quarter of 2022

● Operating earnings¹ of $12.9 million, or $0.76 per diluted common share

● Operating earnings¹ increase of 11% compared to the previous quarter and 48% compared to the same prior year quarter

● Net organic loan and lease growth of over $130.2 million - 17% annualized quarter-over-quarter increase

● Net interest income growth of $904 thousand or 10% annualized quarter-over-quarter increase

● Credit quality remains solid with nonperforming assets to total assets of 0.10%

KNOXVILLE, TN – January 23, 2023 - SmartFinancial, Inc. ("SmartFinancial" or the "Company"; NASDAQ: SMBK), today announced net income of $13.0 million, or $0.77 per diluted common share, for the fourth quarter of 2022, compared to net income of $6.7 million, or $0.40 per diluted common share, for the fourth quarter of 2021, and compared to prior quarter net income of $11.5 million, or $0.68 per diluted common share.  Operating earnings¹, which excludes securities gains and merger related and restructuring expenses, net of tax adjustments, totaled $12.9 million, or $0.76 per diluted common share, in the fourth quarter of 2022, compared to $8.7 million, or $0.52 per diluted common share, in the fourth quarter of 2021, and compared to $11.6 million, or $0.69 per diluted common share, in the third quarter of 2022.

Billy Carroll, President & CEO, stated: "I am extremely pleased with our company’s results for the quarter and for the year.  We wrapped-up 2022 with another record revenue quarter while continuing to gain operating leverage and build on the great work being done to diversify revenue, build out our ancillary lines of business, and maintain outstanding credit metrics.  The core momentum our team is building is outstanding and will position us well as we enter 2023.”

SmartFinancial's Chairman, Miller Welborn, concluded: “We are very proud of our strong quarter and how we finished 2022. The team did a phenomenal job in all areas. The bank continues to show excellent credit, solid growth and strong profits. We couldn’t be more excited about how we are positioned to enter 2023.”

Net Interest Income and Net Interest Margin

Net interest income was $37.6 million for the fourth quarter of 2022, compared to $36.7 million for the prior quarter.  Average earning assets totaled $4.27 billion, a decrease of $177.5 million.  The decrease in average earnings assets was primarily driven by a decrease in average interest-earning cash of $264.8 million and average securities of $26.2 million.  Partially offsetting the decrease in average earning assets was an increase in average loans and leases of $113.4 million.  Average interest-bearing liabilities decreased $123.7 million attributable to a decrease in deposits of $128.9 million, offset by increased borrowings of $5.2 million.

The tax equivalent net interest margin was 3.51% for the fourth quarter of 2022, compared to 3.29% for the prior quarter. The tax equivalent net interest margin was positively impacted by the continued deployment of excess cash and cash equivalents into loans and leases and higher yields on cash deposits held in Federal Reserve System (the “Federal Reserve”). Additionally, the yield on interest-earning assets was positively impacted due to an increase quarter-over-quarter in loan discount accretion of $1.2 million.

The cost of interest-bearing liabilities increased to 1.27% for the fourth quarter of 2022 compared to 0.70% for the prior quarter. The cost of average interest-bearing deposits was 1.18% for the fourth quarter of 2022 compared to 0.62% for the prior quarter, an increase of 56 basis points, primarily attributable to both the impact of rising Federal Reserve rates and increased pricing competition. The cost of total deposits for the fourth quarter of 2022 was 0.85% compared to 0.45% in the prior quarter.

¹ Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP reconciliation

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

	Three Months Ended
	Dec		Sep		Increase
Selected Interest Rates and Yields	2022		2022		(Decrease)
Yield on loans and leases	5.05	%	4.59	%	0.46	%
Yield on earning assets, FTE	4.41	%	3.79	%	0.62	%
Cost of interest-bearing deposits	1.18	%	0.62	%	0.56	%
Cost of total deposits	0.85	%	0.45	%	0.40	%
Cost of interest-bearing liabilities	1.27	%	0.70	%	0.57	%
Net interest margin, FTE	3.51	%	3.29	%	0.22	%

Provision for Loan and Lease Losses and Credit Quality

At December 31, 2022, the allowance for loan and lease losses was $23.3 million.  The allowance for loan and lease losses to total loans and leases was 0.72% as of December 31, 2022, compared to 0.73% as of September 30, 2022. For the Company’s originated loans and leases, the allowance for loan and lease losses to originated loans and leases, less PPP loans, was 0.73% as of December 31, 2022, and 0.75% at September 30, 2022.  The remaining discounts on the acquired loan and lease portfolio totaled $13.1 million, or 4.41% of acquired loans and leases as of December 31, 2022.  

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
		Dec			Sep
Provision for Loan and Lease Losses Rollforward		2022			2022			Change
Beginning balance	$	22,769		$	21,938		$	831
Charge-offs		(331)			(231)			(100)
Recoveries		108			88			20
Net charge-offs		(223)			(143)			(80)
Provision		788			974			(186)
Ending balance	$	23,334		$	22,769		$	565
Allowance for loan losses to total loans and leases, gross		0.72	%		0.73	%		(0.01)	%

Nonperforming loans and leases as a percentage of total loans and leases was 0.09% as of December 31, 2022, a decrease of 2 basis points from the 0.11% reported in the third quarter of 2022.  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 0.10% as of December 31, 2022, and September 30, 2022, respectively 

2

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

	Three Months Ended
		Dec			Sep			Increase
Credit Quality		2022			2022			(Decrease)
Nonaccrual loans and leases	$	2,808		$	3,379		$	(571)
Loans and leases past due 90 days or more and still accruing		142			-			142
Total nonperforming loans and leases		2,950			3,379			(429)
Other real estate owned		1,436			1,226			210
Other repossessed assets		422			-			422
Total nonperforming assets	$	4,808		$	4,605		$	203
Nonperforming loans and leases to total loans and leases, gross		0.09	%		0.11	%		(0.02)	%
Nonperforming assets to total assets		0.10	%		0.10	%		-	%

Noninterest Income

Noninterest income increased $875 thousand to $7.1 million for the fourth quarter of 2022 compared to $6.3 million for the prior quarter.  During the fourth quarter of 2022, the primary components of the changes in noninterest income were as follows:

● Decrease in service charges on deposit accounts, related to lower volume of transaction fees;

● Net gain on sale of securities and dissolution of associated derivative instrument;

● Increase in insurance commissions, driven by the addition of Sunbelt Group, LLC (“Sunbelt”) and organic growth; and

● Increase in other, primarily related to increased fees from capital markets activity.

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

	Three Months Ended
		Dec		Sep		Increase
Noninterest Income		2022		2022		(Decrease)
Service charges on deposit accounts	$	1,477	$	1,611	$	(134)
Gain (loss) on sale of securities, net		144		-		144
Mortgage banking income		77		170		(93)
Investment services		958		1,051		(93)
Insurance commissions		1,233		864		369
Interchange and debit card transaction fees		1,328		1,356		(28)
Other		1,908		1,198		710
Total noninterest income	$	7,125	$	6,250	$	875

3

Noninterest Expense

Noninterest expense increased $186 thousand to $27.4 million for the fourth quarter of 2022 compared to $27.2 million for the prior quarter. During the fourth quarter of 2022, the primary components of the changes in noninterest expense were as follows:

● Decrease in occupancy and equipment as a result of lower utility expenses (seasonality);

● Increase in data processing and technology as a result of enhancements to core systems; and

● Increase in professional services, related to higher audit expenses.

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

	Three Months Ended
		Dec		Sep		Increase
Noninterest Expense		2022		2022		(Decrease)
Salaries and employee benefits	$	16,384	$	16,317	$	67
Occupancy and equipment		3,015		3,167		(152)
FDIC insurance		650		705		(55)
Other real estate and loan related expenses		517		565		(48)
Advertising and marketing		308		288		20
Data processing and technology		2,097		1,872		225
Professional services		981		822		159
Amortization of intangibles		688		650		38
Merger related and restructuring expenses		(45)		87		(132)
Other		2,821		2,757		64
Total noninterest expense	$	27,416	$	27,230	$	186

Income Tax Expense

Income tax expense was $3.5 million for the fourth quarter of 2022, an increase of $318 thousand, compared to $3.2 million for the prior quarter.

The effective tax rate was 21.35% for the fourth quarter of 2022 and 21.76% for the prior quarter.

Balance Sheet Trends

Total assets were $4.61 billion at December 31, 2022 and 2021, respectively.  Total assets remained unchanged period-over-period; however, the bank experienced a shift in its asset mix during the fourth quarter 2022.  The Company had increases primarily in the following categories: loans and leases, net of $531.7 million, securities of $210.4 million, premises and equipment of $6.6 million, goodwill and other intangibles, net of $3.9 million, attributable to Sunbelt purchase and other assets of $30.2 million.  These increases were offset by a decrease in cash and cash equivalents of $778.7 million, primarily from the funding of loans and leases and purchase of securities.

Total liabilities were $4.18 billion for the periods ended December 31, 2022 and 2021, respectively.  Total liabilities remained unchanged period-over-period; however, the bank experienced organic deposit growth of $55.2 million and a decrease in borrowings of $70.3 million.

Shareholders' equity at December 31, 2022 totaled $432.5 million, an increase of $3.0 million, from December 31, 2021.  The increase in shareholders' equity was primarily driven by net income of $43.0 million for the year ended December 31, 2022, offset by the negative impact on accumulated other comprehensive income (loss) of $36.8 million and dividends paid of $4.7 million.  Tangible book value per share¹ was $19.09 at December 31, 2022, compared to $19.26 at December 31, 2021.  Tangible common equity¹ as a percentage of tangible assets¹ was 7.17% at December 31, 2022, compared with 7.18% at December 31, 2021.

¹ Non-GAAP measure. See “Non-GAAP Financial Measures” for more information and see the Non-GAAP reconciliation

4

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

	Dec		Dec		Increase
Selected Balance Sheet Information	2022		2021		(Decrease)
Total assets	$	4,612,913	$	4,611,579	$	1,334
Total liabilities		4,180,461		4,182,149		(1,688)
Total equity		432,452		429,430		3,022
Securities		769,842		559,422		210,420
Loans and leases		3,229,042		2,693,397		535,645
Deposits		4,077,100		4,021,938		55,162
Borrowings		17,275		87,585		(70,310)

Conference Call Information

SmartFinancial issued this earnings release for the fourth quarter of 2022 on Monday, January 23, 2023, and will host a conference call on Tuesday, January 24, 2023, at 10:00 a.m. ET.  To access this interactive teleconference, dial (844) 200-6205 or (646) 904-5544 and entering the access code, 179408.  A replay of the conference call will be available through March 25, 2023, by dialing (866) 813-9403 or (929) 458-6194 and entering the access code, 675735.  Conference call materials will be published on the Company’s webpage located at http://www.smartfinancialinc.com/CorporateProfile, at 9:00 a.m. ET prior to the conference call.

About SmartFinancial, Inc.

SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with branches across Tennessee, Alabama, and 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 and merger related and restructuring expenses.  Operating return on average assets is the annualized operating earnings (Non-GAAP) divided by average assets.  Operating pre-tax pre-provision return on average assets is the annualized operating pre-tax pre-provision income earnings (Non-GAAP) by average assets. Operating return on average shareholders' 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. Operating noninterest income excludes the following from noninterest income: securities gains and losses.  Operating pre-tax pre-provision earnings is net interest income plus operating noninterest income (Non-GAAP) less operating noninterest expense (Non-GAAP).  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 (Non-GAAP) and average tangible common equity (Non-GAAP) excludes goodwill and other intangible assets from shareholders' equity and average shareholders' equity, respectively.  Tangible book value (Non-GAAP) is tangible common equity (Non-GAAP) divided by common shares outstanding.  Tangible assets (Non-GAAP) 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 and related variants 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) changes in management’s plans for the future; (7) prevailing, or changes in, economic or political conditions, 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; (8) a deterioration of the credit rating for U.S. long-term sovereign debt, actions that the U.S. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget; (9) credit risk associated with our lending activities; (10) changes in loan demand, real estate values, or competition; (11) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance; (12) changes in accounting principles, policies, or guidelines; (13) changes in applicable laws, rules, or regulations; (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 and related variants; (15) the impact of the COVID-19 pandemic and related variants on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (16) 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; (17) the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine; and (18) 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
	Dec		Sep		Jun		Mar		Dec
	2022		2022		2022		2022		2021
Assets:
Cash and cash equivalents	$	266,424	$	543,029	$	654,945	$	763,968	$	1,045,077
Securities available-for-sale, at fair value		483,893		519,723		524,864		540,483		482,453
Securities held-to-maturity, at amortized cost		285,949		287,104		288,363		289,532		76,969
Other investments		15,530		15,528		16,569		16,499		16,494
Loans held for sale		1,752		2,742		1,707		5,894		5,103
Loans and leases		3,229,042		3,099,116		2,994,074		2,806,026		2,693,397
Less: Allowance for loan and lease losses		(23,334)		(22,769)		(21,938)		(20,078)		(19,352)
Loans and leases, net		3,205,708		3,076,347		2,972,136		2,785,948		2,674,045
Premises and equipment, net		92,511		91,944		89,950		84,793		85,958
Other real estate owned		1,436		1,226		1,612		1,612		1,780
Goodwill and other intangibles, net		109,772		110,460		104,582		105,215		105,852
Bank owned life insurance		81,470		81,001		80,537		80,074		79,619
Other assets		68,468		67,807		52,848		44,561		38,229
Total assets	$	4,612,913	$	4,796,911	$	4,788,113	$	4,718,579	$	4,611,579
Liabilities:
Deposits:
Noninterest-bearing demand	$	1,072,449	$	1,186,209	$	1,162,843	$	1,093,933	$	1,055,125
Interest-bearing demand		965,911		962,901		999,893		975,272		899,158
Money market and savings		1,583,481		1,663,355		1,607,714		1,573,101		1,493,007
Time deposits		455,259		467,944		511,182		549,047		574,648
Total deposits		4,077,100		4,280,409		4,281,632		4,191,353		4,021,938
Borrowings		17,275		18,423		12,549		36,713		87,585
Subordinated debt		42,015		41,994		41,973		41,952		41,930
Other liabilities		44,071		41,374		31,532		28,519		30,696
Total liabilities		4,180,461		4,382,200		4,367,686		4,298,537		4,182,149
Shareholders' Equity:
Common stock		16,901		16,888		16,898		16,893		16,803
Additional paid-in capital		294,330		293,907		293,815		293,376		292,937
Retained earnings		156,545		144,723		134,362		125,329		118,247
Accumulated other comprehensive income (loss)		(35,324)		(40,807)		(24,648)		(15,556)		1,443
Total shareholders' equity		432,452		414,711		420,427		420,042		429,430
Total liabilities & shareholders' equity	$	4,612,913	$	4,796,911	$	4,788,113	$	4,718,579	$	4,611,579

8

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands except share and per share data)

	Three Months Ended										Year Ended
	Dec		Sep		June		Mar		Dec		Dec		Dec
	2022		2022		2022		2022		2021		2022		2021
Interest income:
Loans and leases, including fees	$	40,082	$	35,127	$	31,530	$	29,643	$	30,567	$	136,381	$	118,582
Investment securities:
Taxable		3,337		3,135		2,908		2,418		1,341		11,799		3,813
Tax-exempt		797		561		441		368		322		2,166		1,215
Federal funds sold and other earning assets		3,098		3,474		1,430		486		547		8,488		1,622
Total interest income		47,314		42,297		36,309		32,915		32,777		158,834		125,232
Interest expense:
Deposits		8,844		4,866		2,504		2,014		2,116		18,228		8,849
Borrowings		232		97		117		157		180		602		540
Subordinated debt		626		626		626		626		626		2,503		2,449
Total interest expense		9,702		5,589		3,247		2,797		2,922		21,333		11,838
Net interest income		37,612		36,708		33,062		30,118		29,855		137,501		113,394
Provision for loan and lease losses		788		974		1,250		1,006		422		4,018		1,633
Net interest income after provision for loan and lease losses		36,824		35,734		31,812		29,112		29,433		133,483		111,761
Noninterest income:
Service charges on deposit accounts		1,477		1,611		1,446		1,319		1,372		5,853		4,650
Gain (loss) on sale of securities, net		144		—		—		—		—		144		45
Mortgage banking		77		170		471		834		803		1,552		4,040
Investment services		958		1,051		1,065		1,070		621		4,144		2,167
Insurance commissions		1,233		864		598		901		517		3,595		3,285
Interchange and debit card transaction fees		1,328		1,356		1,467		1,284		1,445		5,435		4,284
Other		1,908		1,198		2,182		1,703		2,048		6,992		5,478
Total noninterest income		7,125		6,250		7,229		7,111		6,806		27,715		23,949
Noninterest expense:
Salaries and employee benefits		16,384		16,317		15,673		15,046		14,990		63,420		51,656
Occupancy and equipment		3,015		3,167		2,793		3,059		3,026		12,034		10,196
FDIC insurance		650		705		676		641		567		2,672		1,833
Other real estate and loan related expense		517		565		636		729		583		2,446		2,098
Advertising and marketing		308		288		327		369		176		1,293		830
Data processing and technology		2,097		1,872		1,728		1,586		1,722		7,283		6,364
Professional services		981		822		745		1,242		847		3,790		3,147
Amortization of intangibles		688		650		633		637		660		2,607		2,256
Merger related and restructuring expenses		(45)		87		81		439		2,762		562		3,701
Other		2,821		2,757		2,634		1,970		2,490		10,183		9,310
Total noninterest expense		27,416		27,230		25,926		25,718		27,823		106,290		91,391
Income before income taxes		16,533		14,754		13,115		10,505		8,416		54,908		44,319
Income tax expense		3,529		3,211		2,900		2,246		1,761		11,886		9,529
Net income	$	13,004	$	11,543	$	10,215	$	8,259	$	6,655	$	43,022	$	34,790
Earnings per common share:
Basic	$	0.78	$	0.69	$	0.61	$	0.49	$	0.40	$	2.57	$	2.23
Diluted	$	0.77	$	0.68	$	0.61	$	0.49	$	0.40	$	2.55	$	2.22
Weighted average common shares outstanding:
Basic		16,758,706		16,749,255		16,734,930		16,718,371		16,699,010		16,740,450		15,572,537
Diluted		16,884,253		16,872,022		16,867,774		16,858,288		16,846,315		16,871,369		15,699,215

9

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

YIELD ANALYSIS

	Three Months Ended
	December 31, 2022						September 30, 2022						December 31, 2021
	Average				Yield/		Average				Yield/		Average				Yield/
	Balance		Interest		Cost		Balance		Interest		Cost		Balance		Interest		Cost
Assets:
Loans and leases, including fees1	$	3,150,493	$	40,082	5.05	%	$	3,037,092	$	35,127	4.59	%	$	2,675,059	$	30,567	4.53	%
Taxable securities		701,787		3,337	1.89	%		720,114		3,135	1.73	%		339,371		1,341	1.57	%
Tax-exempt securities2		93,721		958	4.06	%		101,559		732	2.86	%		102,989		479	1.85	%
Federal funds sold and other earning assets		322,970		3,098	3.81	%		587,755		3,474	2.34	%		965,899		547	0.22	%
Total interest-earning assets		4,268,971		47,475	4.41	%		4,446,520		42,468	3.79	%		4,083,318		32,934	3.20	%
Noninterest-earning assets		372,864						362,869						383,783
Total assets	$	4,641,835					$	4,809,389					$	4,467,101
Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits	$	924,320		3,141	1.35	%	$	966,437		1,956	0.80	%	$	853,763		403	0.19	%
Money market and savings deposits		1,587,688		4,855	1.21	%		1,632,510		2,298	0.56	%		1,428,472		920	0.26	%
Time deposits		459,996		848	0.73	%		501,919		612	0.48	%		583,165		793	0.54	%
Total interest-bearing deposits		2,972,004		8,844	1.18	%		3,100,866		4,866	0.62	%		2,865,400		2,116	0.29	%
Borrowings		18,309		232	5.03	%		13,141		97	2.93	%		88,828		180	0.80	%
Subordinated debt		42,002		626	5.91	%		41,980		626	5.91	%		41,917		626	5.92	%
Total interest-bearing liabilities		3,032,315		9,702	1.27	%		3,155,987		5,589	0.70	%		2,996,145		2,922	0.39	%
Noninterest-bearing deposits		1,146,374						1,192,813						1,016,438
Other liabilities		43,109						35,224						27,710
Total liabilities		4,221,798						4,384,024						4,040,293
Shareholders' equity		420,037						425,365						426,808
Total liabilities and shareholders' equity	$	4,641,835					$	4,809,389					$	4,467,101
Net interest income, taxable equivalent			$	37,773					$	36,879					$	30,012
Interest rate spread					3.14	%					3.09	%					2.81	%
Tax equivalent net interest margin					3.51	%					3.29	%					2.92	%
Percentage of average interest-earning assets to average interest-bearing liabilities					140.78	%					140.89	%					136.29	%
Percentage of average equity to average assets					9.05	%					8.84	%					9.55	%

¹ Includes average balance of $3.3 million, $4.8 million, and $80.5 million in PPP loans for the quarters ended December 31, 2022, September 30, 2022, and December 31, 2021, respectively.

² Yields computed on tax-exempt instruments on a tax equivalent basis include $161 thousand, $171 thousand and $156 thousand of taxable equivalent income for the quarters ended December 31, 2022, September 30, 2022 and December 31, 2021, respectively.

10

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

YIELD ANALYSIS

	Year Ended
	December 31, 2022							December 31, 2021
	Average				Yield/			Average				Yield/
	Balance		Interest		Cost			Balance		Interest		Cost
Assets:
Loans and leases, including fees1	$	2,948,511	$	136,381		4.63	%	$	2,540,577	$	118,582	4.67	%
Taxable securities		688,428		11,799		1.71	%		207,459		3,813	1.84	%
Tax-exempt securities2		100,566		2,831		2.82	%		92,708		1,817	1.96	%
Federal funds sold and other earning assets		577,593		8,488		1.47	%		680,909		1,622	0.24	%
Total interest-earning assets		4,315,098		159,499		3.70	%		3,521,653		125,834	3.57	%
Noninterest-earning assets		373,026							317,457
Total assets	$	4,688,124						$	3,839,110
Liabilities and Shareholders’ Equity:
Interest-bearing demand deposits	$	945,414		6,278		0.66	%	$	737,251		1,378	0.19	%
Money market and savings deposits		1,576,170		9,137		0.58	%		1,191,916		3,501	0.29	%
Time deposits		513,416		2,813		0.55	%		533,994		3,970	0.74	%
Total interest-bearing deposits		3,035,000		18,228		0.60	%		2,463,161		8,849	0.36	%
Borrowings		32,986		602		1.83	%		83,105		540	0.65	%
Subordinated debt		41,970		2,503		5.96	%		40,221		2,449	6.09	%
Total interest-bearing liabilities		3,109,956		21,333		0.69	%		2,586,487		11,838	0.46	%
Noninterest-bearing deposits		1,120,555							841,746
Other liabilities		34,361							23,189
Total liabilities		4,264,872							3,451,422
Shareholders' equity		423,252							387,688
Total liabilities and shareholders' equity	$	4,688,124						$	3,839,110
Net interest income, taxable equivalent			$	138,166						$	113,996
Interest rate spread						3.01	%					3.12	%
Tax equivalent net interest margin						3.20	%					3.24	%
Percentage of average interest-earning assets to average interest-bearing liabilities						138.75	%					136.16	%
Percentage of average equity to average assets						9.03	%					10.10	%

¹ Includes average balance of $14.1 million and $196.1 million in PPP loans for the year ended December 31, 2022, and 2021, respectively.

² Yields computed on tax-exempt instruments on a tax equivalent basis include $665 thousand and $602 thousand of taxable equivalent income for the year ended December 31, 2022, and 2021, respectively.

11

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

	As of and for The Three Months Ended
	Dec			Sep			Jun			Mar			Dec
	2022			2022			2022			2022			2021
Composition of Loans and Leases:
Commercial real estate:
owner occupied	$	759,456		$	714,734		$	684,250		$	612,675		$	590,064
non-owner occupied		843,720			822,317			850,338			863,181			794,092
Commercial real estate, total		1,603,176			1,537,051			1,534,588			1,475,856			1,384,156
Commercial & industrial		551,867			514,280			483,588			461,153			488,024
Construction & land development		402,501			405,007			364,368			314,654			278,386
Consumer real estate		587,977			562,408			533,582			483,229			477,272
Leases		67,427			64,798			63,264			59,892			53,708
Consumer and other		16,094			15,572			14,684			11,242			11,851
Total loans and leases	$	3,229,042		$	3,099,116		$	2,994,074		$	2,806,026		$	2,693,397
Asset Quality and Additional Loan Data:
Nonperforming loans and leases	$	2,950		$	3,379		$	3,413		$	3,342		$	3,188
Other real estate owned		1,436			1,226			1,612			1,612			1,780
Other repossessed assets		422			—			17			27			90
Total nonperforming assets	$	4,808		$	4,605		$	5,042		$	4,981		$	5,058
Restructured loans and leases not included in nonperforming loans and leases	$	101		$	108		$	678		$	625		$	206
Net charge-offs to average loans and leases (annualized)		0.03	%		0.02	%		(0.09)	%		0.04	%		0.05	%
Allowance for loan and leases losses to loans and leases		0.72	%		0.73	%		0.73	%		0.72	%		0.72	%
Nonperforming loans and leases to total loans and leases, gross		0.09	%		0.11	%		0.11	%		0.12	%		0.12	%
Nonperforming assets to total assets		0.10	%		0.10	%		0.11	%		0.11	%		0.11	%
Acquired loan and lease fair value discount balance	$	13,128		$	14,465		$	14,737		$	14,913		$	15,483
Accretion income on acquired loans and leases		1,396			148			225			389			457
PPP net fees deferred balance		122			140			301			972			2,038
PPP net fees recognized		17			163			669			1,066			1,725
Capital Ratios:
Equity to Assets		9.37	%		8.65	%		8.78	%		8.90	%		9.31	%
Tangible common equity to tangible assets (Non-GAAP)1		7.17	%		6.49	%		6.74	%		6.82	%		7.18	%
SmartFinancial, Inc.2
Tier 1 leverage		7.95	%		7.40	%		7.48	%		7.41	%		7.45	%
Common equity Tier 1		9.73	%		9.65	%		9.95	%		10.30	%		10.56	%
Tier 1 capital		9.73	%		9.65	%		9.95	%		10.30	%		10.56	%
Total capital		11.49	%		11.44	%		11.80	%		12.22	%		12.55	%
SmartBank		Estimated3
Tier 1 leverage		8.90	%		8.27	%		8.33	%		8.24	%		8.23	%
Common equity Tier 1		10.90	%		10.78	%		11.08	%		11.46	%		11.66	%
Tier 1 capital		10.90	%		10.78	%		11.08	%		11.46	%		11.66	%
Total capital		11.53	%		11.41	%		11.72	%		12.08	%		12.29	%

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															Year Ended
	Dec			Sep			Jun			Mar			Dec			Dec			Dec
	2022			2022			2022			2022			2021			2022			2021
Selected Performance Ratios (Annualized):
Return on average assets		1.11	%		0.95	%		0.87	%		0.73	%		0.59	%		0.92	%		0.91	%
Return on average shareholders' equity		12.28	%		10.77	%		9.76	%		7.83	%		6.19	%		10.16	%		8.97	%
Return on average tangible common equity¹		16.65	%		14.36	%		13.02	%		10.39	%		8.18	%		13.60	%		11.84	%
Noninterest income / average assets		0.61	%		0.52	%		0.62	%		0.63	%		0.60	%		0.59	%		0.62	%
Noninterest expense / average assets		2.34	%		2.25	%		2.21	%		2.27	%		2.47	%		2.27	%		2.38	%
Efficiency ratio		61.28	%		63.39	%		64.35	%		69.08	%		75.89	%		64.33	%		66.54	%
Operating Selected Performance Ratios (Annualized):
Operating return on average assets1		1.10	%		0.96	%		0.88	%		0.76	%		0.77	%		0.92	%		0.98	%
Operating PTPP return on average assets1		1.46	%		1.30	%		1.23	%		1.05	%		1.03	%		1.27	%		1.29	%
Operating return on average shareholders' equity1		12.15	%		10.83	%		9.82	%		8.14	%		8.09	%		10.24	%		9.67	%
Operating return on average tangible common equity1		16.47	%		14.44	%		13.09	%		10.80	%		10.70	%		13.69	%		12.77	%
Operating efficiency ratio1		61.36	%		62.93	%		63.88	%		67.60	%		68.07	%		63.79	%		63.59	%
Operating noninterest income / average assets1		0.60	%		0.52	%		0.62	%		0.63	%		0.60	%		0.59	%		0.62	%
Operating noninterest expense / average assets1		2.35	%		2.24	%		2.21	%		2.23	%		2.23	%		2.26	%		2.28	%
Selected Interest Rates and Yields:
Yield on loans and leases		5.05	%		4.59	%		4.40	%		4.41	%		4.53	%		4.63	%		4.67	%
Yield on earning assets, FTE		4.41	%		3.79	%		3.39	%		3.18	%		3.20	%		3.70	%		3.57	%
Cost of interest-bearing deposits		1.18	%		0.62	%		0.33	%		0.27	%		0.29	%		0.60	%		0.36	%
Cost of total deposits		0.85	%		0.45	%		0.24	%		0.20	%		0.22	%		0.44	%		0.27	%
Cost of interest-bearing liabilities		1.27	%		0.70	%		0.42	%		0.36	%		0.39	%		0.69	%		0.46	%
Net interest margin, FTE		3.51	%		3.29	%		3.08	%		2.91	%		2.92	%		3.20	%		3.24	%
Per Common Share:
Net income, basic	$	0.78		$	0.69		$	0.61		$	0.49		$	0.40		$	2.57		$	2.23
Net income, diluted		0.77			0.68			0.61			0.49			0.40			2.55			2.22
Operating earnings, basic¹		0.77			0.69			0.61			0.51			0.52			2.59			2.41
Operating earnings, diluted¹		0.76			0.69			0.61			0.51			0.52			2.57			2.39
Book value		25.59			24.56			24.88			24.86			25.56			25.59			25.56
Tangible book value¹		19.09			18.02			18.69			18.64			19.26			19.09			19.26
Common shares outstanding		16,900,805			16,887,555			16,898,405			16,893,282			16,802,990			16,900,805			16,802,990

¹Non-GAAP measure. See reconciliation of Non-GAAP measures.

13

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information - (unaudited)

(dollars in thousands)

NON-GAAP RECONCILIATIONS

	Three Months Ended															Year Ended
	Dec			Sep			Jun			Mar			Dec			Dec			Dec
	2022			2022			2022			2022			2021			2022			2021
Operating Earnings:
Net income (GAAP)	$	13,004		$	11,543		$	10,215		$	8,259		$	6,655		$	43,022		$	34,790
Noninterest income:
Securities gains (losses), net		(144)			—			—			—			—			(144)			(45)
Noninterest expenses:
Merger related and restructuring expenses		(45)			87			81			439			2,762			562			3,701
Income taxes:
Income tax effect of adjustments		49			(22)			(21)			(113)			(713)			(108)			(944)
Operating earnings (Non-GAAP)	$	12,864		$	11,608		$	10,275		$	8,585		$	8,704		$	43,332		$	37,502
Operating earnings per common share (Non-GAAP):
Basic	$	0.77		$	0.69		$	0.61		$	0.51		$	0.52		$	2.59		$	2.41
Diluted		0.76			0.69			0.61			0.51			0.52			2.57			2.39
Operating Noninterest Income:
Noninterest income (GAAP)	$	7,125		$	6,250		$	7,229		$	7,111		$	6,806		$	27,715		$	23,949
Securities gains (losses), net		(144)			—			—			—			—			(144)			(45)
Operating noninterest income (Non-GAAP)	$	6,981		$	6,250		$	7,229		$	7,111		$	6,806		$	27,571		$	23,904
Operating noninterest income (Non-GAAP)/average assets1		0.60	%		0.52	%		0.62	%		0.63	%		0.60	%		0.59	%		0.62	%
Operating Noninterest Expense:
Noninterest expense (GAAP)	$	27,416		$	27,230		$	25,926		$	25,718		$	27,823		$	106,290		$	91,391
Merger related and restructuring expenses		45			(87)			(81)			(439)			(2,762)			(562)			(3,701)
Operating noninterest expense (Non-GAAP)	$	27,461		$	27,143		$	25,845		$	25,279		$	25,061		$	105,728		$	87,690
Operating noninterest expense (Non-GAAP)/average assets2		2.35	%		2.24	%		2.21	%		2.23	%		2.23	%		2.26	%		2.28	%
Operating Pre-tax Pre-provision ("PTPP") Earnings:
Net interest income (GAAP)	$	37,612		$	36,708		$	33,062		$	30,118		$	29,855		$	137,501		$	113,394
Operating noninterest income (Non-GAAP)		6,981			6,250			7,229			7,111			6,806			27,571			23,904
Operating noninterest expense (Non-GAAP)		(27,461)			(27,143)			(25,845)			(25,279)			(25,061)			(105,728)			(87,690)
Operating PTPP earnings (Non-GAAP)	$	17,132		$	15,815		$	14,446		$	11,950		$	11,600		$	59,344		$	49,608
Non-GAAP Return Ratios:
Operating return on average assets (Non-GAAP)3		1.10	%		0.96	%		0.88	%		0.76	%		0.77	%		0.92	%		0.98	%
Operating PTPP return on average assets (Non-GAAP)4		1.46	%		1.30	%		1.23	%		1.05	%		1.03	%		1.27	%		1.29	%
Return on average tangible common equity (Non-GAAP)5		16.65	%		14.36	%		13.02	%		10.39	%		8.18	%		13.60	%		11.84	%
Operating return on average shareholders' equity (Non-GAAP)6		12.15	%		10.83	%		9.82	%		8.14	%		8.09	%		10.24	%		9.67	%
Operating return on average tangible common equity (Non-GAAP)7		16.47	%		14.44	%		13.09	%		10.80	%		10.70	%		13.69	%		12.77	%
Operating Efficiency Ratio:
Efficiency ratio (GAAP)		61.28	%		63.39	%		64.35	%		69.08	%		75.89	%		64.33	%		66.54	%
Adjustment for taxable equivalent yields		(0.22)	%		(0.25)	%		(0.27)	%		(0.31)	%		(0.32)	%		(0.26)	%		(0.29)	%
Adjustment for securities gains (losses)		(0.20)	%		—	%		—	%		—	%		—	%		(0.06)	%		(0.02)	%
Adjustment for merger related income and costs		0.50	%		(0.21)	%		(0.20)	%		(1.17)	%		(7.50)	%		(0.22)	%		(2.64)	%
Operating efficiency ratio (Non-GAAP)		61.36	%		62.93	%		63.88	%		67.60	%		68.07	%		63.79	%		63.59	%

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										Year Ended
	Dec		Sep		Jun		Mar		Dec		Dec		Dec
	2022		2022		2022		2022		2021		2022		2021
Tangible Common Equity:
Shareholders' equity (GAAP)	$	432,452	$	414,711	$	420,427	$	420,042	$	429,430	$	432,452	$	429,430
Less goodwill and other intangible assets		109,772		110,460		104,582		105,215		105,852		109,772		105,852
Tangible common equity (Non-GAAP)	$	322,680	$	304,251	$	315,845	$	314,827	$	323,578	$	322,680	$	323,578
Average Tangible Common Equity:
Average shareholders' equity (GAAP)	$	420,037	$	425,365	$	419,726	$	427,945	$	426,808	$	423,252	$	387,688
Less average goodwill and other intangible assets		110,206		106,483		104,986		105,617		104,193		106,834		93,910
Average tangible common equity (Non-GAAP)	$	309,831	$	318,882	$	314,740	$	322,328	$	322,615	$	316,418	$	293,778
Tangible Book Value per Common Share:
Book value per common share (GAAP)	$	25.59	$	24.56	$	24.88	$	24.86	$	25.56	$	25.59	$	25.56
Adjustment due to goodwill and other intangible assets		(6.50)		(6.54)		(6.19)		(6.23)		(6.30)		(6.50)		(6.30)
Tangible book value per common share (Non-GAAP)1	$	19.09	$	18.02	$	18.69	$	18.64	$	19.26	$	19.09	$	19.26
Tangible Common Equity to Tangible Assets:
Total Assets	$	4,612,913	$	4,796,911	$	4,788,113	$	4,718,579	$	4,611,579	$	4,612,913	$	4,611,579
Less goodwill and other intangibles		109,772		110,460		104,582		105,215		105,852		109,772		105,852
Tangible Assets (Non-GAAP):	$	4,503,141	$	4,686,451	$	4,683,531	$	4,613,364	$	4,505,727	$	4,503,141	$	4,505,727
Tangible common equity to tangible assets (Non-GAAP)		7.17%		6.49%		6.74%		6.82%		7.18%		7.17%		7.18%

¹Tangible book value per share (Non-GAAP) 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 4Q 2022 January 24, 2023, 10:00am ET Webcast: www.smartbank.com (Investor Relations) Audio Only: 1 - 844 - 200 - 6205 Access Code: 179408 Miller Welborn Chairman of the Board Billy Carroll President & CEO Ron Gorczynski CFO

D ISCLOSURES 2 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 Inc .. ’s (“SmartFinancial”) 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 ) changes in management’s plans for the future ; ( 6 ) prevailing, or changes in, economic or political conditions, 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 ; ( 7 ) a deterioration of the credit rating for U .. S .. long - term sovereign debt, actions that the U .. S .. government may take to avoid exceeding the debt ceiling, or uncertainties surrounding the debt ceiling and the federal budget ; ( 8 ) credit risk associated with our lending activities ; ( 9 ) changes in loan demand, real estate values, or competition ; ( 10 ) developments in our mortgage banking business, including loan modifications, general demand, and the effects of judicial or regulatory requirements or guidance ; ( 11 ) changes in accounting principles, policies, or guidelines ; ( 12 ) changes in applicable laws, rules, or regulations ; ( 13 ) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID - 19 pandemic and related variants ; ( 14 ) the continued impact of the COVID - 19 pandemic and related variants on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations ; ( 15 ) significant turbulence or a disruption in the capital or financial markets and the effect of a fall in stock market prices on our investment securities ; ( 16 ) the effects of war or other conflicts including the impacts related to or resulting from Russia’s military action in Ukraine ; 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 .. 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 revenue, (ii) operating earnings, (iii) operating 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) tangible common equity ; (ix) average tangible common equity ; (x) tangible book value ; (xi) operating pre - tax pre - provision earnings ; (xii) operating noninterest income ; (xiii) operating noninterest expense ; (xiv) tangible assets ; and ratios derived therefrom, in its analysis of the company's performance .. Operating revenue includes the earnings from net interest income and operating noninterest income (Non - GAAP) .. Operating earnings excludes the following from net income : securities gains and losses, 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 shareholders’ 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 exclude 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 .. 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 ..

'20 -'22 2020Y 2021Y 2022Y CAGR 3 Total Loans and Leases 2,382.2 $ 2,693.4 $ 3,229.0 $ 16% Annual Net Balance Loan Growth (Excl. PPP) 190.1 547.8 587.9 76% Total Deposits 2,805.2 4,021.9 4,077.1 21% Loan / Deposit Ratio 85% 67% 79% Operating Revenue 1 115.8 137.3 165.1 19% Operating PTPP Earnings 1 43.7 49.6 59.3 17% Operating Noninterest Income 1 15.0 23.9 27.6 36% Operating Noninterest Income (Excl. Mtg. Bking) 1 11.1 19.9 26.0 53% Operating Return on Average Assets 1 0.89% 0.98% 0.92% Operating Return on Average Tang. Common Equity 1 10.7% 12.8% 13.7% Operating Efficiency Ratio 1 61.7% 63.6% 63.8% Diluted Operating Earnings Per Share 1 1.82 $ 2.39 $ 2.57 $ 19% Tangible Book Value Per Share (Excl. AOCI) 1,2 17.77 $ 19.17 $ 21.18 $ 9% F INANCIAL H IGHLIGHTS : 3 S MART B ANK 2022: A Y EAR IN R EVIEW $ in Millions, except per share data B ALANCE S HEET P ERFORMANCE D RIVEN BY T ALENTED C OMMERCIAL R ELATIONSHIP M ANAGERS R ECORD O PERATING R EVENUE N ON - C YCLICAL N ONINTEREST I NCOME G ROWTH R ECORD O PERATING EPS C REATING S HAREHOLDER V ALUE P OSITIVE O PERATING L EVERAGE I MPROVING P ROFITABILITY B ALANCE S HEET / N ON - GAAP R EVENUE M ETRICS : N ON - GAAP P ERFORMANCE M ETRICS : O PERATIONAL A CHIEVEMENTS : 1) Non - GAAP financial measure - f or a reconciliation of Non - GAAP financial measures to their most directly comparable GAAP measures, see the Appendix 2) AOCI: Accumulated Other Comprehensive Income 3) CA GR: Compound Annualized Growth Rate ❖ E STABLISHED P ERMANENT D OTHAN , AL AND T ALLAHASSEE , FL L OCATIONS ❖ S UBSTANTIAL M ODERNIZATION OF ATM AND C ASH R ECYCLER F LEETS ❖ E NHANCED I NSURANCE P LATFORM WITH S UNBELT I NSURANCE A CQUISITION ❖ N C INO © C OMMERCIAL L OAN O RIGINATION S YSTEM I MPLEMENTED ❖ O PENED B RANCHES IN N ASHVILLE / F RANKLIN , TN AND B IRMINGHAM , AL ❖ C ONSOLIDATED C ROSSVILLE AND S EVIERVILLE , TN O PERATIONS

$0.40 $0.68 $0.77 $0.52 $0.69 $0.76 4Q21 3Q22 4Q22 GAAP EPS D ILUTED O PERATING EPS $25.56 $24.56 $25.59 $19.26 $18.02 $19.09 4Q21 3Q22 4Q22 BV P ER S HARE TBV P ER S HARE 0.59% 0.95% 1.11% 0.77% 0.96% 1.10% 4Q21 3Q22 4Q22 GAAP ROAA O PERATING ROAA 8.2% 14.4% 16.7% 10.7% 14.4% 16.5% 4Q21 3Q22 4Q22 GAAP ROATCE O PERATING ROATCE AOCI I MPACT 4 Financial data as of or for the three months ended 12/31/22 1) Non - GAAP financial measure - f or 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 5) AOCI: Accumulated Other Comprehensive Income Q UARTERLY H IGHLIGHTS : F OURTH Q UARTER 2022 15% Q O Q 2 A NNUALIZED T ANG .. B OOK V ALUE P ER S HARE G ROWTH (E XCLUDING AOCI) 1 $0.76 D ILUTED O PERATING EPS 1 1.10% O PERATING R ETURN ON A VERAGE A SSETS 1 16.5% O PERATING R ETURN A VERAGE T ANG .. C OMMON E QUITY 1 61% O PERATING E FFICIENCY R ATIO 1 (5%) Q O Q D EPOSIT C ONTRACTION 17% Q O Q A NNUALIZED O RGANIC L OAN 3 G ROWTH 4 79% L OAN / D EPOSIT R ATIO 0.10% N ON - P ERFORMING A SSETS / A SSETS $4.6 B ILLION IN T OTAL A SSETS D ILUTED E ARNINGS P ER S HARE B OOK V ALUE P ER S HARE R ETURN ON A VERAGE A SSETS R ETURN ON A VERAGE T ANGIBLE C OMMON E QUITY 1 1 1 1 1,5 $21.18 $19.09 $20.43 $18.02

5 S MART F INANCIAL : E XPANDING S OUTHEAST F RANCHISE $4.6 B ILLION IN T OTAL A SSETS $3.2 B ILLION IN T OTAL L OANS 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 .. $4.1 B ILLION IN T OTAL D EPOSITS 41 T OTAL B RANCHES K NOXVILLE N ASHVILLE H UNTSVILLE T USCALOOSA M OBILE P ENSACOLA B IRMINGHAM A UBURN T ALLAHASSEE D OTHAN M ONTGOMERY S MART B ANK B RANCH O FFICES L OAN P RODUCTION O FFICE C HATTANOOGA Balance sheet and branch count represent 12/31/22 balances 1) Knox News Sentinel Top Workplaces survey P ANAMA C ITY 1

$2.0 $2.1 $2.3 $2 $2 $2 $2 $2 $2 $2 12/31/20 12/31/21 12/31/22 SMBK L OANS $2.5 $3.5 $3.4 $ - $1 $1 $2 $2 $3 $3 $4 $4 $5 12/31/20 12/31/21 12/31/22 SMBK D EPOSITS $0.4 $0.6 $0.9 $ - $0 $0 $0 $0 $1 $1 $1 $1 $1 $1 12/31/20 12/31/21 12/31/22 SMBK L OANS $0.3 $0.5 $0.7 $(0) $0 $0 $0 $0 $0 $1 $1 $1 $1 12/31/20 12/31/21 12/31/22 SMBK D EPOSITS S MART B ANK B RANCH O FFICES L OAN P RODUCTION O FFICE E XPANDING M ARKET A REA L EGACY M ARKET A REA U RBAN AREA D ENSITY \ M ARKET A REA : T ARGETING I NDUSTRY R ICH G ROWTH M ARKETS 6 ► T OTAL P OPULATION : 2.8 M ILLION ► T OTAL D EPOSITS : $72 B ILLION ► M EDIAN I NCOME : $63 T HOUSAND L EGACY M ARKETS 1) Legacy Markets include Chattanooga, TN, Clarke, AL, Cleveland, TN, Crossville, TN, Cookeville, TN, Fentress, TN, Huntsville, AL, Knoxville, TN, Sevierville, TN, Tullahoma, TN and Tuscaloosa, AL MSAs 2) Expanding Markets include Auburn, AL, Birmingham, AL, Dothan, AL, Fairhope, AL, Fort Walton/Destin, FL, Montgomery, AL, Mobil e, AL, Nashville, TN, Panama City, FL, Pensacola, FL and Tallahassee, FL Source: S&P Market Intelligence; https://www.forbes.com/best - places - for - business Note: Expanding and Legacy market statistics based on the weighted average of the MSAs included in each area based on populat ion ; Legacy market area includes settlement and corporate balances E XPANDING M ARKETS ► T OTAL P OPULATION : 5.9 M ILLION ► T OTAL D EPOSITS : $211 B ILLION ► M EDIAN I NCOME : $68 T HOUSAND L EGACY M ARKETS 1 : S TRONG R ELATIONSHIPS / D EEP M ARKET P ENETRATION E XPANDING M ARKETS 2 : B UILDING T ALENT / G ROWING B RAND A WARENESS Forbes Top 200 Best Places for Business and Careers Knoxville: #86 Huntsville: #93 Chattanooga: #116 Mobile: #184 Forbes Top 200 Best Places for Business and Careers Nashville: #15 Tallahassee: #103 Pensacola: #105 Birmingham: #165 Montgomery: #191 CAGR: 8% $ in Billions CAGR: 16% CAGR: 49% CAGR: 51%

22% 22% 23% 23% 24% 29% 31% 28% 27% 26% 2% 1% 16% 15% 16% 16% 17% 10% 11% 12% 13% 12% 18% 17% 18% 18% 18% 3% $2,693 $2,806 $2,994 $3,099 $3,229 4Q21 1Q22 2Q22 3Q22 4Q22 CRE, OO CRE, NOO PPP L OANS C&I C&D C ONSUMER RE L EASES & O THER $1,319 $1,775 $1,897 $2,382 $2,693 $2,806 $2,994 $3,099 $3,229 5.31% 5.72% 5.49% 4.89% 4.67% 4.40% 4.40% 4.59% 5.05% 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 $3,500 2017Y 2018Y 2019Y 2020Y 2021Y 1Q22 2Q22 3Q22 4Q22 7 L OAN P ORTFOLIO : S OLID M ARKETS P ROVIDING O PPORTUNITY T OTAL L OANS CAGR OF 20% S INCE 2017 $ in Millions A VERAGE L OAN Y IELD L OAN C OMPOSITION S USTAINED M ARKET M OMENTUM D RIVING O RGANIC G ROWTH

1 - 4 Family (NOO) 27% Resi/Comm Land Dev. 13% Resi/Comm Land 17% Multifamily 13% CRE (OO) 11% CRE (NOO) 12% Multifamily 17% Hotel & Hospitality 35% Retail Space 14% Office Space 14% Misc. 10% 8 L OAN C ONCENTRATION : W ELL B ALANCED E XPOSURE CRE E XPOSURE B Y S EGMENT H IGHLY D IVERSIFIED WITH S EASONED C LIENT B ASE C&D E XPOSURE B Y T YPE 1 C LOSELY M ONITORED WITH N O C ONCENTRATION C ONCERNS 1) 1 - 4 Family (OO) includes owner - occupied primary and secondary residence construction loans; 1 - 4 Family (NOO) includes speculativ e and investment property residential construction loans; Resi /Comm Land Dev. includes primary, secondary, investment and commercial land development loans; Resi /Comm Land includes residential and commercial improved and unimproved land loans; Multifamily includes 5 or more residentia l p roperty loans; CRE (OO) includes construction loans for owner - occupied commercial real estate including hotel & hospitality, retail, office, industrial & warehouse, self storage and other commercial real est ate ; CRE (NOO) includes construction loans for non owner - occupied commercial real estate including hotel & hospitality, retail, off ice, industrial & warehouse, self storage and other commercial real estate

$5,058 $4,981 $5,042 $4,605 $4,808 0.11% 0.11% 0.11% 0.10% 0.10% -0.10% 0.10% 0.30% 0.50% 0.70% 0.90% 1.10% 1.30% 1.50% $- $2,000 $4,000 $6,000 4Q21 1Q22 2Q22 3Q22 4Q22 N ONPERFORMING L OANS OREO & O THER R EPOS N ONPERFORMING A SSETS / T OTAL A SSETS $8,991 $5,738 $6,588 $6,398 $7,645 0.33% 0.20% 0.22% 0.21% 0.24% -0.10% 0.10% 0.30% 0.50% 0.70% 0.90% 1.10% 1.30% 1.50% 1.70% $- $2,000 $4,000 $6,000 $8,000 $10,000 $12,000 4Q21 1Q22 2Q22 3Q22 4Q22 T OTAL D ELINQUENT & N ONACCRUAL L OANS & L EASES T OTAL D ELINQUENT & N ONACCRUAL L OANS & L EASES / T OTAL L OANS & L EASES 0.35% 0.31% 0.29% 0.22% 0.22% 0.05% 0.04% - 0.09% 0.02% 0.03% -0.10% -0.05% 0.00% 0.05% 0.10% 0.15% 0.20% 0.25% 0.30% 0.35% 0.40% 4Q21 1Q22 2Q22 3Q22 4Q22 C LASSIFIED L OANS AND L EASES / T OTAL L OANS & L EASES N ET C HARGEOFFS 286% 304% 303% 301% 294% 74% 81% 90% 98% 94% 0% 50% 100% 150% 200% 250% 150% 170% 190% 210% 230% 250% 270% 290% 310% 330% 350% 4Q21 1Q22 2Q22 3Q22 4Q22 CRE L OANS / C APITAL C&D L OANS / C APITAL 9 C REDIT Q UALITY D ELINQUENT AND N ONACCRUALS / T OTAL L OANS N ONPERFORMING A SSETS C OMMERCIAL R EAL E STATE C ONCENTRATION A SSET Q UALITY : S TRONG U NDERWRITING P AYS D IVIDENDS $ in Thousands

$19,352 $20,078 $21,938 $22,769 $23,334 $15,483 $14,913 $14,737 $14,465 $13,128 0.74% 0.74% 0.74% 0.75% 0.73% 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 $22,000 $24,000 4Q21 1Q22 2Q22 3Q22 4Q22 A LLOWANCE FOR L OAN L OSSES A CQUIRE L OAN F AIR V ALUE D ISCOUNTS A LLOWANCE - O RIGINATED / O RIG .. L&L, L ESS PPP 10 R ESERVE R ECONCILIATION : $ in Thousands 4Q21 1Q22 2Q22 3Q22 4Q22 Allowance / Total Loans & Leases ("L&L") 0.72% 0.72% 0.73% 0.73% 0.72% Allowance / Total L&L, less PPP 0.73% 0.72% 0.73% 0.74% 0.72% Allowance - Originated / Orig. L&L, less PPP 0.74% 0.74% 0.74% 0.75% 0.73% Allowance - Acquired / Acquired L&L 0.65% 0.63% 0.67% 0.65% 0.62% Acquired FV Discount / Acquired L&L 3.42% 3.64% 4.17% 4.29% 4.41% Total Reserves / Total L&L 1.29% 1.25% 1.22% 1.20% 1.13% Total Reserves / Total L&L, less PPP 1.31% 1.26% 1.23% 1.20% 1.13%

$1,439 $1,922 $2,047 $2,805 $4,022 $4,191 $4,282 $4,280 $4,077 0.55% 0.86% 1.12% 0.55% 0.27% 0.20% 0.24% 0.45% 0.85% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% $ - $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 $4,000 $4,500 2017Y 2018Y 2019Y 2020Y 2021Y 1Q22 2Q22 3Q22 4Q22 26% 26% 27% 28% 26% 22% 23% 23% 22% 24% 37% 38% 38% 39% 39% 14% 13% 12% 11% 11% $4,022 $4,191 $4,282 $4,280 $4,077 4Q21 1Q22 2Q22 3Q22 4Q22 N ONINTEREST D EMAND I NTEREST - B EARING D EMAND M ONEY M ARKET AND S AVINGS T IME D EPOSITS 11 D EPOSIT P ORTFOLIO : D EFENDING D EPOSIT M ARKET S HARE T OTAL D EPOSITS L OANS TO D EPOSITS R ATIO OF 79% $ in Millions A VERAGE T OTAL D EPOSIT C OST D EPOSIT C OMPOSITION H IGHER R ATES D RIVING M IX S HIFT

$1,045 $764 $655 $543 $266 $559 $830 $813 $807 $770 12.1% 17.6% 17.0% 16.8% 16.7% 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 4Q21 1Q22 2Q22 3Q22 4Q22 C ASH AND C ASH E QUIV .. S ECURITIES (AFS/HTM) S ECURITIES (AFS/HTM) / T OTAL A SSETS $29,855 $30,118 $33,062 $36,708 $37,612 $6,806 $7,111 $7,229 $6,250 $6,981 $36,661 $37,229 $40,291 $42,958 $44,593 2.92% 2.91% 3.08% 3.29% 3.51% $18,000 $23,000 $28,000 $33,000 $38,000 $43,000 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 5.50% 6.00% 4Q21 1Q22 2Q22 3Q22 4Q22 N ET I NTEREST I NCOME O PERATING N ONINTEREST I NCOME N ET I NTEREST M ARGIN (FTE) 4Q21 1Q22 2Q22 3Q22 4Q22 Cash Yield 0.22% 0.25% 0.91% 2.34% 3.81% Sec. Yield (AFS/HTM) 1 1.64% 1.67% 1.73% 1.87% 2.15% Loans (less Accr./PPP Fees) 4.20% 4.18% 4.27% 4.55% 4.86% Accretion 0.07% 0.06% 0.03% 0.02% 0.18% PPP Fees 0.26% 0.16% 0.10% 0.02% 0.01% Loan Yield (incl. Fees) 4.53% 4.40% 4.40% 4.59% 5.05% IE Asset Yield 3.20% 3.18% 3.39% 3.79% 4.41% NIM (FTE) 2.92% 2.91% 3.08% 3.29% 3.51% 12 L IQUIDITY U TILIZATION : M ARGIN M ANAGEMENT WHILE D RIVING R EVENUE $ in Millions C ASH AND S ECURITIES E XCESS F UNDING N ORMALIZING M ARGIN / O PERATING R EVENUE 2 M AINTAINING R EVENUE D ESPITE C HALLENGING M ARGIN E NVIRONMENT $ in Thousands 1) Based on the weighted average of the AFS/HTM securities portfolio. Yields related to investment securities exempt from income ta xes are stated on a taxable - equivalent basis assuming a federal income tax rate of 21.0% 2) Non - GAAP financial measure - f or a reconciliation of Non - GAAP financial measures to their most directly comparable GAAP measures, see the Appendix 2

$375 , 0.3% $(600) , - 0.4% $(1,363) , - 1.0% I NTERST I NCOME % C HANGE S HOCK - 100 BPS S HOCK +100 BPS S HOCK +200 BPS $35 , 0.0% $44 , 0.0% $(86) , - 0.1% I NTEREST I NCOME % C HANGE R AMP - 100 BPS R AMP +100 BPS R AMP +200 BPS 13 I NTEREST R ATE S ENSITIVITY F IXED VS .. V ARIABLE R ATE L OANS S TATIC S HOCK / R ATE R AMP A NALYSIS 1 1) Based on 12 - month static rate shock and ramp analysis as of 12/31/22. These estimates of changes in the Company’s net interest i ncome require us to make certain assumptions including loan and mortgage - related investment prepayment speeds, reinvestment rate, deposit maturities and decay rates. These assumptions are inherently uncertain and, as a result, we cannot pr ecisely predict the impact of changes in interest rates on net interest income. Although our analysis provides an indication of our interest rate risk exposure at a particular point in time, such estimates are not intended to, and do not, provide a prec ise forecast of the effect of changes in market interest rates and will differ from actual results. ▲ $1.9 B ILLION F IXED R ATE L OANS ▲ $1.3 B ILLION V ARIABLE R ATE L OANS ▲ $727 M ILLION S HORT T ERM V ARIABLE R ATE (1 - 3 M ONTH R ESET ) ▲ $561 M ILLION L ONG T ERM V ARIABLE R ATE (> 3 M ONTH R ESET ) $ in Thousands $ in Millions $1,928 60% $561 17% $727 23% F IXED R ATE LT V ARIABLE ST V ARIABLE

$6,806 $7,111 $7,229 $6,250 $6,981 4Q21 1Q22 2Q22 3Q22 4Q22 S ERVICE C HARGES ON D EPOSIT A CCOUNTS M ORTGAGE B ANKING I NCOME I NVESTMENT S ERVICES I NCOME I NSURANCE C OMMISSIONS I NTERCHANGE F EES O THER N ONINTEREST I NCOME 14 N ONINTEREST R EVENUE D ETAILS : G ROWING F EE I NCOME O PERATING N ONINTEREST I NCOME 1 F OCUSED ON R ECURRING F EE I NCOME $ in Thousands 1) Non - GAAP financial measure - f or a reconciliation of Non - GAAP financial measures to their most directly comparable GAAP measures, see the Appendix D IFFERENTIATED R EVENUE S TREAMS B UILDING A F AMILY OF D IVERSIFIED R EVENUE G ENERATORS

68% 68% 64% 63% 61% 4Q21 1Q22 2Q22 3Q22 4Q22 O PERATING E FFICIENCY R ATIO $25,061 $25,279 $25,845 $27,143 $27,461 4Q21 1Q22 2Q22 3Q22 4Q22 S ALARIES & B ENEFITS O CCUPANCY & E QUIPMENT D ATA P ROCESSING & T ECHNOLOGY P ROFESSIONAL S ERVICES A MORTIZATION OF I NTANGIBLES O THER N ONINTEREST E XPENSE 15 1) Non - GAAP financial measure - f or a reconciliation of Non - GAAP financial measures to their most directly comparable GAAP measures, see the Appendix O PERATING E XPENSE : I NVESTING W ITH AN E YE ON E FFICIENCIES O PERATING E FFICIENCY R ATIO 1 E XECUTING ON E XPANSION O PPORTUNITIES O PERATING N ONINTEREST E XPENSE 1 D ISCIPLINED F OCUS ON E XPENSE C ONTAINMENT $ in Thousands 1

7.2% 6.8% 6.7% 6.5% 7.2% 4Q21 1Q22 2Q22 3Q22 4Q22 10.2% 10.3% 10.0% 9.6% 9.7% 4Q21 1Q22 2Q22 3Q22 4Q22 7.5% 7.4% 7.5% 7.4% 8.0% 4Q21 1Q22 2Q22 3Q22 4Q22 12.2% 12.2% 11.8% 11.4% 11.5% 4Q21 1Q22 2Q22 3Q22 4Q22 $13.90 $14.64 $16.82 $17.92 $19.26 $19.09 $14.01 $14.84 $16.80 $17.77 $19.17 $21.18 $8.00 $10.00 $12.00 $14.00 $16.00 $18.00 $20.00 $22.00 $24.00 2017Y 2018Y 2019Y 2020Y 2021Y 4Q22 TBV Per Share Adj. TBV Per Share (Ex. AOCI) C APITAL : W ELL C APITALIZED – B UILDING B OOK V ALUE 16 1) Non - GAAP financial measure - f or 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 12/31/22 TCE / TA 1 CET1 R ATIO T OTAL C APITAL R ATIO L EVERAGE R ATIO B ASEL III R EGULATORY C APITAL M INIMUM T O B E C ONSIDERED “W ELL C APITALIZED ” B UILDING S HAREHOLDER V ALUE T ANGIBLE B OOK V ALUE P ER S HARE (TBVPS) 1 $7.18 TBVPS 1 C REATED 2017 – 2022 (E XCLUDING A CCUMULATED O THER C OMPREHENSIVE I NCOME ) $0.07 2022 P ER S HARE Q UARTERLY D IVIDEND 5% W ELL C APITALIZED 10% W ELL C APITALIZED 6.5% W ELL C APITALIZED 1 1

W HY S MART B ANK : I NVESTMENT H IGHLIGHTS 17 F RANCHISE S CARCITY V ALUE – B UILDING S OUTHEAST D ENSITY E NGAGED M ANAGEMENT T EAM S TABLE M ARKETS E XPERIENCING P OPULATION E XPANSION L OW - C OST D EPOSIT B ASE G ROWING B USINESS L INES WITH R EVENUE D IVERSIFICATION S OLID C REDIT Q UALITY AND U NDERWRITING H ISTORY OF D EFENDING B OOK V ALUE AND D ELIVERING S HAREHOLDER V ALUE $

A PPENDIX 18

19 Note: For a reconciliation of Non - GAAP financial measures to their most directly comparable GAAP measures, see the Appendix; per centage change may differ due to rounding I NCOME S TATEMENT : D ETAILED F OURTH Q UARTER R ESULTS 3Q22 4Q21 ($ in thousands, except per share data) 4Q22 3Q22 4Q21 % Chg. % Chg. Net Interest Income 37,612 $ 36,708 $ 29,855 $ 2% 26% Provision for Loan & Lease losses 788 974 422 Noninterest Income 7,125 6,250 6,806 14% 5% Noninterest Expense 27,416 27,230 27,823 1% (1%) Income Tax Expense 3,529 3,211 1,761 Net Income (GAAP) 13,004 $ 11,543 $ 6,655 $ 13% 95% Non-GAAP Reconciliations Noninterest Income (144) - - Noninterest Expense (45) 87 2,762 Income Tax Effect Of Adjustments 49 (22) (713) Operating Earnings (Non-GAAP) 12,864 $ 11,608 $ 8,704 $ 11% 48% Operating PTPP Earnings (Non-GAAP) 17,132 $ 15,815 $ 11,600 $ 8% 48% 3Q22 4Q21 Non-GAAP Performance Metrics 4Q22 3Q22 4Q21 % Chg. % Chg. Diluted Operating Earnings Per Share 0.76 $ 0.69 $ 0.52 $ 11% 47% Tangible Book Value Per Common Share 19.09 $ 18.02 $ 19.26 $ 6% (1%) Operating Return on Average Assets 1.10% 0.96% 0.77% Operating PTPP Return on Average Assets 1.46% 1.30% 1.03% Operating Return on Average Tang. Common Equity 16.5% 14.4% 10.7% Operating Efficiency Ratio 61.4% 62.9% 68.1% 4Q22 vs. 4Q22 vs.

Branch Network Modernization Q2 2021 20 Digital Consumer Deposit Origination Upgrade Q2 2021 Treasury Management Platform Upgrade Q1 2022 Q2 2021 Cloud - Based Contact Center Enhanced Cyber Security Technology Q2 2021 O PERATING E XPENSE : T ECHNOLOGY I NITIATIVES I NVESTING IN OUR P LATFORM TO M AKE S MART B ANK AN E ASIER O RGANIZATION WITH W HICH TO DO B USINESS Q2 2021 Telecommunications Management Upgrade Q3 2021 Redesigned SmartBank.com Core OS Platform Upgrade Q2 2022 New Consumer Personal Finance Tools Q3 2022 Teller Modernization Bank - Wide Q2 2022 Q1 2023 nCino © Customer Pricing and Profitability Q3 2022 Upgraded Mobile/Digital Services Q2 2022 nCino © Commercial Loan Origination Q2 2022 Centralized Bank Application Support Team $ PAY E MBRACING T ECHNOLOGY TO I NCREASE E FFICIENCY AND C REATE S TREAMLINED P ROCESSES ATM Fleet Replacement with ITM Upgrade Q3 2022 Q3 2022 Digital Consumer Credit/Finance Tools Enhanced Risk & Anti - Fraud Solutions Q1 2023 Consumer Lending Workflow Enhancement Q3 2023 Digital Customer Experience Enhancements Q2 2023 Q2 2023 Treasury Management System Improvement Q1 2023 Phone System Upgrade

N ON - GAAP R ECONCILIATION 21 $ in Thousands, except per share data 1. Operating return on average assets (Non - GAAP) is the annualized operating earnings (Non - GAAP) divided by average assets .. 2. Operating PTPP return on average assets (Non - GAAP) is the annualized operating PTPP earnings (Non - GAAP) divided by average assets .. 3. Return on average tangible common equity (Non - GAAP) is the annualized net income divided by average tangible common equity (Non - GAAP) .. 4. Operating return on average shareholders’ equity (Non - GAAP) is the annualized operating earnings (Non - GAAP) divided by average shareholder equity .. 5. Operating return on average tangible common equity (Non - GAAP) is the annualized operating earnings (Non - GAAP) divided by average tangible common equity (Non - GAAP) .. 2022Y 2021Y 2020Y 4Q22 3Q22 2Q22 1Q22 4Q21 Operating Earnings Net Income (GAAP) 43,022 $ 34,790 $ 24,332 $ 13,004 $ 11,543 $ 10,215 $ 8,259 $ 6,655 $ Noninterest Income: Securities (Gains) Losses (144) (45) (6) (144) - - - - Noninterest Expenses: Merger Related And Restructuring Expenses 562 3,701 4,565 (45) 87 81 439 2,762 Income Taxes: Income Tax Effect Of Adjustments (108) (944) (1,071) 49 (22) (21) (113) (713) Operating Earnings (Non-GAAP) 43,332 $ 37,502 $ 27,355 $ 12,864 $ 11,608 $ 10,275 $ 8,585 $ 8,704 $ Operating Earnings Per Common Share (Non-GAAP): Basic 2.59 $ 2.41 $ 1.83 $ 0.77 $ 0.69 $ 0.61 $ 0.51 $ 0.52 $ Diluted 2.57 2.39 1.82 0.76 0.69 0.61 0.51 0.52 Operating Noninterest Income Noninterest Income (GAAP) 27,715 $ 23,949 $ 15,426 $ 7,125 $ 6,250 $ 7,229 $ 7,111 $ 6,806 $ Securities (Gain) Losses (144) (45) (6) (144) - - - - ADECA Termination Proceeds - - (465) - - - - - Operating Noninterest Income (Non-GAAP) 27,571 $ 23,904 $ 14,955 $ 6,981 $ 6,250 $ 7,229 $ 7,111 $ 6,806 $ Mortgage Banking Income (1,552) (4,040) (3,875) (77) (170) (471) (834) (803) Operating Noninterest Income Excluding Mtg. Banking (Non-GAAP) 26,019 $ 19,864 $ 11,080 $ 6,904 $ 6,080 $ 6,758 $ 6,277 $ 6,003 $ Operating Noninterest Expense Noninterest Expense (GAAP) 106,290 $ 91,391 $ 76,719 $ 27,416 $ 27,230 $ 25,926 $ 25,718 $ 27,823 $ Merger Related And Restructuring Expenses (562) (3,701) (4,565) 45 (87) (81) (439) (2,762) Operating Noninterest Expense (Non-GAAP) 105,728 $ 87,690 $ 72,154 $ 27,461 $ 27,143 $ 25,845 $ 25,279 $ 25,061 $ Operating Revenue Net Interest Income (GAAP) 137,501 $ 113,394 $ 100,866 $ 37,612 $ 36,708 $ 33,062 $ 30,118 $ 29,855 $ Operating Noninterest Income (Non-GAAP) 27,571 23,904 14,955 6,981 6,250 7,229 7,111 6,806 Operating Revenue (Non-GAAP) 165,072 137,298 115,821 44,593 42,958 40,291 37,229 36,661 Operating Pre-Tax Pre-Provison ("PTPP") Earnings Operating Revenue (Non-GAAP) 165,072 $ 137,298 $ 115,821 $ 44,593 $ 42,958 $ 40,291 $ 37,229 $ 36,661 $ Operating Noninterest Expense (Non-GAAP) (105,728) (87,690) (72,154) (27,461) (27,143) (25,845) (25,279) (25,061) Operating PTPP Earnings (Non-GAAP) 59,344 $ 49,608 $ 43,667 $ 17,132 $ 15,815 $ 14,446 $ 11,950 $ 11,600 $ Non-GAAP Return Ratios Operating Return On Average Assets (Non-GAAP) (1) 0.92% 0.98% 0.89% 1.10% 0.96% 0.88% 0.76% 0.77% Operating PTPP Return On Average Assets (Non-GAAP) (2) 1.27% 1.29% 1.43% 1.46% 1.30% 1.23% 1.05% 1.03% Return On Average Tangible Common Equity (Non-GAAP) (3) 13.60% 11.84% 9.50% 16.65% 14.36% 13.02% 10.39% 8.18% Operating Return On Average Shareholders' Equity (Non-GAAP) (4) 10.24% 9.67% 8.02% 12.15% 10.83% 9.82% 8.14% 8.09% Operating Return On Average Tangible Common Equity (Non-GAAP) (5) 13.69% 12.77% 10.67% 16.47% 14.44% 13.09% 10.80% 10.70% Operating Efficiency Ratio Efficiency Ratio (GAAP) 64.33% 66.54% 65.97% 61.28% 63.39% 64.35% 69.08% 75.89% Adjustment For Taxable Equivalent Yields (0.26%) (0.29%) (0.33%) (0.22%) (0.25%) (0.27%) (0.31%) (0.32%) Adjustment For Securities Gains (Losses) (0.06%) (0.02%) (0.01%) (0.20%) - - - - Adjustment For Merger Expenses (0.22%) (2.64%) (3.88%) 0.50% (0.21%) (0.20%) (1.17%) (7.50%) Operating Efficiency Ratio (Non-GAAP) 63.79% 63.59% 61.75% 61.36% 62.93% 63.88% 67.60% 68.07%

N ON - GAAP R ECONCILIATION 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 (Non - GAAP) is computed by dividing total stockholders’ equity, less goodwill and other intangible assets by common shares outstanding 2. Totals may not add due to rounding 4Q22 3Q22 2Q22 1Q22 4Q21 Tangible Common Equity: Shareholders' Equity (GAAP) 432,452 $ 414,711 $ 420,427 $ 420,042 $ 429,430 $ Less Goodwill And Other Intangible Assets 109,772 110,460 104,582 105,215 105,852 Tangible Common Equity (Non-GAAP) 322,680 $ 304,251 $ 315,845 $ 314,827 $ 323,578 $ Average Tangible Common Equity: Average Shareholders' Equity (GAAP) 420,037 $ 425,365 $ 419,726 $ 427,945 $ 426,808 $ Less Goodwill And Other Intangible Assets 110,206 106,483 104,986 105,617 104,193 Average Tangible Common Equity (Non-GAAP) 309,831 $ 318,882 $ 314,740 $ 322,328 $ 322,615 $ Tangible Book Value Per Common Share: Book Value Per Common Share (GAAP) 25.59 $ 24.56 $ 24.88 $ 24.86 $ 25.56 $ Adjustment Due To Goodwill And Other Intangible Assets (6.50) (6.54) (6.19) (6.23) (6.30) Tangible Book Value Per Common Share (Non-GAAP) (1) 19.09 $ 18.02 $ 18.69 $ 18.64 $ 19.26 $ Tangible Common Equity To Tangible Assets: Total Assets 4,612,913 $ 4,796,911 $ 4,788,113 $ 4,718,579 $ 4,611,579 $ Less Goodwill And Other Intangibles 109,772 110,460 104,582 105,215 105,852 Tangible Assets (Non-GAAP) 4,503,141 $ 4,686,451 $ 4,683,531 $ 4,613,364 $ 4,505,727 $ Tangible Common Equity To Tangible Assets (Non-GAAP): 7.17% 6.49% 6.74% 6.82% 7.18% 4Q22 3Q22 2Q22 1Q22 4Q21 Tangible Common Equity (Excluding AOCI): Shareholders' Equity (GAAP) 432,452 $ 414,711 $ 420,427 $ 420,042 $ 429,430 $ Less Goodwill And Other Intangible Assets 109,772 110,460 104,582 105,215 105,852 Tangible Common Equity (Non-GAAP) 322,680 $ 304,251 $ 315,845 $ 314,827 $ 323,578 $ Less Adjustment Due to AOCI (Loss) (35,324) (40,807) (24,648) (15,556) 1,443 Tangible Common Equity (Excl. AOCI) (Non-GAAP) 358,004 $ 345,058 $ 340,493 $ 330,383 $ 322,135 $ Tangible Book Value Per Common Share (Excluding AOCI): Book Value Per Common Share (GAAP) 25.59 $ 24.56 $ 24.88 $ 24.86 $ 25.56 $ Adjustment Due To Goodwill And Other Intangible Assets (6.50) (6.54) (6.19) (6.23) (6.30) Tangible Book Value Per Common Share (Non-GAAP) (1) 19.09 $ 18.02 $ 18.69 $ 18.64 $ 19.26 $ Less Adjustment Due to AOCI (Loss) (2.09) (2.42) (1.46) (0.92) 0.09 Tangible Book Value Per Common Share (Excl. AOCI) (Non-GAAP) (1)(2) 21.18 $ 20.43 $ 20.15 $ 19.56 $ 19.17 $ 2021Y 2020Y 2019Y 2018Y 2017Y Tangible Common Equity (Excluding AOCI): Shareholders' Equity (GAAP) 429,430 $ 357,168 $ 312,747 $ 283,011 $ 205,852 $ Less Goodwill And Other Intangible Assets 105,852 86,471 77,193 79,034 50,837 Tangible Common Equity (Non-GAAP) 323,578 $ 270,697 $ 235,554 $ 203,977 $ 155,015 $ Less Adjustment Due to AOCI (Loss) 1,443 2,183 168 (2,765) (1,198) Tangible Common Equity (Excl. AOCI) (Non-GAAP) 322,135 $ 268,514 $ 235,386 $ 206,742 $ 156,213 $ Tangible Book Value Per Common Share (Excluding AOCI): Book Value Per Common Share (GAAP) 25.56 $ 23.64 $ 22.33 $ 20.31 $ 18.46 $ Adjustment Due To Goodwill And Other Intangible Assets (6.30) (5.72) (5.51) (5.67) (4.56) Tangible Book Value Per Common Share (Non-GAAP) (1) 19.26 $ 17.92 $ 16.82 $ 14.64 $ 13.90 $ Less Adjustment Due to AOCI (Loss) 0.09 0.14 0.01 (0.20) (0.11) Tangible Book Value Per Common Share (Excl. AOCI) (Non-GAAP) (1)(2) 19.17 $ 17.77 $ 16.80 $ 14.84 $ 14.01 $

C ONTACT 23 B ILLY C ARROLL P RESIDENT & CEO 865.868.0613 B ILLY ..C ARROLL @ SMARTBANK .. COM M ILLER W ELBORN C HAIRMAN 423.385.3067 M ILLER ..W ELBORN @ SMARTBANK .. COM 5401 K INGSTON P IKE , S UITE 600 K NOXVILLE , TN 37919 R ON G ORCZYNSKI C HIEF F INANCIAL O FFICER 865.437.5724 R ON ..G ORCZYNSKI @ SMARTBANK .. COM

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Document and Entity Information	Jan. 23, 2023
Document and Entity Information [Abstract]
Document Type	8-K
Document Period End Date	Jan. 23, 2023
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