SmartFinancial Reports 46% Increase in Net Income

By Philip Seaworth • Tuesday, July 22 15:39 • Permanent Link

SmartFinancial, Inc. has reported a significant increase in net income for the second quarter of 2025, with a figure of $11.7 million compared to $8.0 million for the same period in 2024. This represents a substantial growth of 46.25% year-over-year. Additionally, the net income for the second quarter of 2025 slightly exceeded the prior quarter's figure of $11.3 million, showcasing a positive trend.

Operating earnings, which exclude non-recurring income, also displayed remarkable improvement, reaching $11.7 million for the second quarter of 2025, compared to $7.8 million for the second quarter of 2024, and $11.3 million for the first quarter of 2025. This demonstrates a notable increase in operating performance over the previous year and the preceding quarter.

The company's net organic loan and lease growth experienced a substantial increase of $132 million, reflecting a 13% annualized quarter-over-quarter growth. This growth in the loan portfolio indicates a healthy lending activity for the organization, contributing to its overall financial performance.

Furthermore, SmartFinancial has achieved five consecutive quarters of positive operating leverage, reinforcing its ability to generate higher returns as its revenue grows. The company's credit quality remains robust, with nonperforming assets to total assets standing at an impressive 0.19%.

The tangible book value per share also saw remarkable growth, increasing by 13.7% quarter-over-quarter. This increase indicates a strengthening of the company's capital base and reflects positively on its financial position.

In terms of interest income, SmartFinancial reported net interest income of $40.3 million for the second quarter of 2025, compared to $38.2 million for the prior quarter. The company's average earning assets totaled $4.96 billion, showing an increase of $87.8 million from the prior quarter. Additionally, the tax equivalent net interest margin improved to 3.29% for the second quarter of 2025, compared to 3.21% for the prior quarter.

Today the company's shares have moved -0.58% to a price of $35.86. For more information, read the company's full 8-K submission here.

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