SmartFinancial Reports 333% Increase in Q3 Net Income

SmartFinancial, Inc. has reported a significant increase in net income for the third quarter of 2024. The company announced a net income of $9.1 million, or $0.54 per diluted common share, compared to $2.1 million, or $0.12 per diluted common share, for the third quarter of 2023. This represents a substantial growth from the previous year.

Operating earnings, which exclude non-recurring income, net of tax adjustments, also saw a notable increase. In the third quarter of 2024, operating earnings were $9.1 million, or $0.54 per diluted common share, compared to $7.2 million, or $0.43 per diluted common share, in the third quarter of 2023.

The company experienced net organic loan and lease growth of $144 million with a 16% annualized quarter-over-quarter increase. Additionally, there was a quarter-over-quarter net tax equivalent interest margin expansion of 14 basis points to 3.11%.

SmartFinancial's tangible book value per common share also saw a significant uptick, with a 19% annualized quarter-over-quarter increase. Credit quality remained solid, with nonperforming assets to total assets at 0.26%.

The net interest income for the third quarter of 2024 was reported at $35.0 million, compared to $32.8 million for the prior quarter. The tax equivalent net interest margin also showed positive growth, reaching 3.11% for the third quarter of 2024, compared to 2.97% for the prior quarter.

The yield on loans and leases, excluding loan fees, on a fully tax equivalent basis was 5.95% for the third quarter, compared to 5.80% for the prior quarter, indicating an increase in the yield on interest-earning assets.

SmartFinancial's leadership expressed confidence in the company's ability to enhance profitability and deliver strong tangible book value per share growth, indicating a positive outlook for the future. As a result of these announcements, the company's shares have moved -3.0% on the market, and are now trading at a price of $30.15. Check out the company's full 8-K submission here.

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