SmartFinancial, Inc. (SMBK) | Investment Case

1. Company Snapshot

1.a. Company Description

SmartFinancial, Inc.operates as the bank holding company for SmartBank that provides various financial services to individuals and corporate customers.It operates through Commercial Real Estate, Consumer Real Estate, Construction and Land Development, Commercial and Industrial, and Consumer and Other segments.

The company offers noninterest-bearing and interest-bearing checking, interest-bearing demand, savings, money market, time deposit, individual retirement accounts, as well as certificates of deposit.It also provides commercial and residential real estate, consumer real estate, and construction and land development loans; commercial and financial loans; mortgage loans; and direct consumer installment loans, educational, and other revolving credit loans; and overdraft facilities.In addition, the company offers wealth management, insurance, mortgage origination, and Internet and mobile banking services.

As of March 1, 2022, it had 41 full-service branches and 2 loan production offices in East and Middle Tennessee, Alabama, and the Florida Panhandle.The company is headquartered in Knoxville, Tennessee.

Show Full description

1.b. Last Insights on SMBK

SmartFinancial's recent momentum is fueled by its solid Q4 2025 earnings, with net income of $13.7 million, and the announcement of a regular quarterly cash dividend. The company's share repurchase program, authorized on January 29, 2026, is a positive development, as it reduces outstanding shares and enhances shareholder value. According to Marketbeat.com, analysts have assigned a "Moderate Buy" rating, with one strong buy recommendation, indicating optimism about the company's prospects.

1.c. Company Highlights

Last Price	41.47
Change Percentage	-3.02%
Open	42.91
Previous Close	42.76
Market Cap ( Millions)	709
Volume	37384.46
Year High	43.91
Year Low	28.61
M A 50	40.13
M A 200	37.44

FCF Yield	8.05%
Dividend Yield	0.39%
ROE	9.72%
Debt / Equity	18.13%
Net Debt / EBIDTA	-344.61%
Price To Book	1.24
Price Earnings Ratio	13.22
Price To FCF	12.43
Price To sales	2.19
EV / EBITDA	6.56

2. SmartFinancial: A Strong 2026 Kickoff and Steady Growth Path

SmartFinancial, Inc. opened 2026 with operating earnings of $13.7 million, translating to $0.81 per diluted share—exactly in line with analyst expectations. Total operating revenue topped $53.8 million, while the net interest margin nudged up by 10 basis points to 3.48%. Management highlighted that disciplined pricing and a focus on risk‑adjusted capital are driving the single‑digit growth outlook, noting, “Our disciplined pricing approach keeps margins stable while we expand our loan book.” The company trades at a P/E of 13.63 and a P/B of 1.3, reflecting modest valuation upside relative to peers.

Publication Date: 07:24

                                    📋 Highlights
                                    Operating Earnings::
                                                Strong Q1 2026 results with $13.7M revenue and $0.81 EPS.
Tangible Book Value Growth::
                                                Increased to $27.33/share, up 1.7% from prior year-end.
Loan and Deposit Growth::
                                                Loans rose 14% annualized; core deposits grew 7% annualized.
Net Interest Margin (NIM)::
                                                Improved 10 bps to 3.48%, driven by disciplined rate management.
EPS Target::
                                                Aims for $4 EPS run rate by 2026, with organic growth and 5% expense growth guidance.

                                

Operating Performance

Operating earnings rose 14% from the prior year, driven by a 14% annualized increase in loans and a 7% rise in core deposits. Tangible book value per share climbed to $27.33 from $26.86, while the operating efficiency ratio stayed steady at 60%, indicating effective cost control.

Loan and Deposit Dynamics

Loans grew 14% annually, with 88% renewed at rates 120 basis points higher, raising the loan yield to 6.45% in March. Core deposits expanded 7% annually, keeping the loan‑to‑deposit ratio at 87% and leaving room to approach 90% if needed.

Margin Outlook

Net interest margin is expected to remain flat in Q2 and expand slightly in the back half of the year, assuming no rate cuts. Noninterest income is projected at $7.8 million against $34.25 million in expense, supporting a NIM near 3.50% through 2026.

Expense Management

Provision expense hit $4.1 million, while the allowance for credit losses rose to $44 million. Management forecasts a 5% annual growth in expenses, with recruiting costs absorbed by higher production, and an efficiency ratio trending to 60% by year‑end.

Growth Strategy

The firm targets a $4 EPS run rate by 2026, driven by organic growth and selective hiring. Expansion plans include de‑novo branches in Columbus, GA, and Nashville, with a focus on building momentum in that market while keeping the loan composition balanced.

Valuation Snapshot

SmartFinancial trades at a P/E of 13.63 and a P/B of 1.3, with a dividend yield of 0.37% and a free cash flow yield of 7.8%. ROIC is 7.45%, ROE 9.98%, and Net Debt/EBITDA is negative at -5.12, underscoring a strong liquidity position.

3. NewsRoom

Compared to Estimates, SmarFinancial (SMBK) Q1 Earnings: A Look at Key Metrics

Apr -20

Source: zacks.com

SmarFinancial (SMBK) Q1 Earnings Meet Estimates

Apr -20

Source: zacks.com

SmartFinancial Announces Results for the First Quarter 2026

Apr -20

Source: businesswire.com

Gear Up for SmarFinancial (SMBK) Q1 Earnings: Wall Street Estimates for Key Metrics

Apr -15

Source: zacks.com

Deprince Race & Zollo Inc. Acquires 16,367 Shares of SmartFinancial, Inc. $SMBK

Apr -14

Source: defenseworld.net

SG Americas Securities LLC Purchases 30,769 Shares of SmartFinancial, Inc. $SMBK

Apr -08

Source: defenseworld.net

SmartFinancial Sets Dates for First Quarter Earnings Release and Conference Call

Apr -06

Source: businesswire.com

SmartFinancial, Inc. (NASDAQ:SMBK) Given Average Rating of “Moderate Buy” by Analysts

Mar -26

Source: defenseworld.net

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.00%)

6. Segments

Banking and Related Activities

Expected Growth: 11%

Strong loan growth driven by increased commercial lending and mortgage banking activities, coupled with expansion into new markets and strategic acquisitions. Additionally, digital transformation initiatives and investments in technology have improved operational efficiency, further contributing to the 11% growth in Banking and Related Activities at SmartFinancial, Inc.

7. Detailed Products

Insurance Comparison Platform

A platform that allows users to compare insurance quotes from various insurance providers

Insurance Agency Management System

A system that helps insurance agencies manage their operations, including policy management, customer management, and reporting

Lead Generation Services

A service that provides insurance leads to insurance agents and agencies

Insurance Carrier Integration

A service that integrates with insurance carriers to provide real-time quotes and binding capabilities

Data Analytics and Reporting

A platform that provides data analytics and reporting capabilities to help insurance agencies and carriers make data-driven decisions

8. SmartFinancial, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

SmartFinancial, Inc. operates in a highly competitive industry, and customers have various alternatives to choose from. However, the company's strong brand recognition and customer loyalty mitigate the threat of substitutes.

Bargaining Power Of Customers

SmartFinancial, Inc.'s customers have limited bargaining power due to the company's diversified product offerings and strong distribution network.

Bargaining Power Of Suppliers

SmartFinancial, Inc. relies on a few key suppliers for its operations, giving them some bargaining power. However, the company's strong relationships with suppliers and its ability to negotiate favorable terms mitigate this risk.

Threat Of New Entrants

The financial services industry is highly competitive, and new entrants can easily disrupt the market. SmartFinancial, Inc. must continue to innovate and differentiate itself to stay ahead of new competitors.

Intensity Of Rivalry

The financial services industry is highly competitive, and SmartFinancial, Inc. faces intense rivalry from established players. The company must focus on differentiating itself and providing exceptional customer service to maintain its market share.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	9.82%
Debt Cost	7.30%
Equity Weight	90.18%
Equity Cost	7.30%
WACC	7.30%
Leverage	10.89%

11. Quality Control: SmartFinancial, Inc. passed 3 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

First Bank

A-Score: 5.9/10

Value: 4.8

Growth: 4.8

Quality: 7.8

Yield: 4.0

Momentum: 7.0

Volatility: 7.0

1-Year Total Return ->

SmartFinancial

A-Score: 5.7/10

Value: 7.3

Growth: 5.8

Quality: 5.8

Yield: 2.0

Momentum: 5.0

Volatility: 8.0

1-Year Total Return ->

Horizon Bancorp

A-Score: 5.6/10

Value: 7.3

Growth: 3.0

Quality: 4.9

Yield: 8.0

Momentum: 4.0

Volatility: 6.7

1-Year Total Return ->

MidWestOne Financial Group

A-Score: 5.5/10

Value: 5.4

Growth: 2.1

Quality: 7.1

Yield: 7.0

Momentum: 8.0

Volatility: 3.7

1-Year Total Return ->

NSTS Bancorp

A-Score: 5.4/10

Value: 7.9

Growth: 5.7

Quality: 3.9

Yield: 0.0

Momentum: 5.5

Volatility: 9.7

1-Year Total Return ->

Live Oak Bancshares

A-Score: 4.7/10

Value: 6.0

Growth: 8.3

Quality: 6.4

Yield: 0.0

Momentum: 2.5

Volatility: 5.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

-4.89%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.30%

SmartFinancial, Inc. - JP3346970001

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on SMBK

1.c. Company Highlights

Weak Momentum

Average Yield

Average Quality

Earnings Beats

Revenues Beats

Average Growth

Stable Momentum

Strong Momentum

Fairly Valued

Medium Volatility

Lower Quality

Revenues Miss

2. SmartFinancial: A Strong 2026 Kickoff and Steady Growth Path

Operating Performance

Loan and Deposit Dynamics

Margin Outlook

Expense Management

Growth Strategy

Valuation Snapshot

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (11.00%)

6. Segments

Banking and Related Activities

Expected Growth: 11%

7. Detailed Products

Insurance Comparison Platform

Insurance Agency Management System

Lead Generation Services

Insurance Carrier Integration

Data Analytics and Reporting

8. SmartFinancial, Inc.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: SmartFinancial, Inc. passed 3 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

41.47$

Current Price

41.47$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA