SmartFinancial, Inc. has reported a significant increase in net income for the fourth quarter of 2024. The company's net income stood at $9.6 million, or $0.57 per diluted common share, compared to $6.2 million, or $0.37 per diluted common share, for the same period in 2023. Moreover, operating earnings, which exclude non-recurring income, net of tax adjustments, totaled $9.6 million, or $0.57 per diluted common share, in the fourth quarter of 2024, compared to $6.9 million, or $0.41 per diluted common share, in the fourth quarter of 2023.
SmartFinancial also saw a notable increase in net organic loan and lease growth, with a 20% annualized quarter-over-quarter increase equating to $189 million. The net interest income for the fourth quarter of 2024 was reported at $37.8 million, compared to $35.0 million for the previous quarter, with average earning assets totaling $4.7 billion, representing an increase of $151.0 million from the prior quarter.
One of the key highlights was the quarter-over-quarter net tax equivalent interest margin expansion of 13 basis points to 3.24%. This expansion was primarily driven by the decreased cost of interest-bearing deposits. The yield on loans and leases, excluding loan fees, remained constant at 5.95% quarter-over-quarter. Additionally, the cost of total deposits for the fourth quarter of 2024 was 2.43%, down from 2.54% in the prior quarter.
SmartFinancial's credit quality remained solid, with nonperforming assets to total assets standing at 0.19%. The company's chairman, Miller Welborn, expressed satisfaction with the company’s 10% annual tangible book value growth and steady return metric enhancement.
As a result of these announcements, the company's shares have moved 1.9% on the market, and are now trading at a price of $32.18. If you want to know more, read the company's complete 8-K report here.
