Smartfinancial Inc. Reports 50% Increase in Q3 Net Income

By Bobby Samwell • Wednesday, October 22 12:05 • Permanent Link

Smartfinancial, Inc. has announced its financial results for the third quarter of 2025, revealing a significant increase in net income compared to the same period in 2024. In Q3 2025, the company reported a net income of $13.7 million, or $0.81 per diluted common share, compared to $9.1 million, or $0.54 per diluted common share, in Q3 2024. This represents a notable improvement, indicating a 50% increase in net income year-over-year.

Moreover, the operating earnings, which exclude non-recurring income and expenses, also saw a substantial rise. In Q3 2025, operating earnings stood at $14.5 million, or $0.86 per diluted common share, compared to $9.1 million, or $0.54 per diluted common share, in Q3 2024. This indicates a 59% increase in operating earnings year-over-year.

The company achieved over $50 million in quarterly operating revenue, reflecting robust performance in generating revenue. Additionally, Smartfinancial reported a net organic loan and lease growth of $98 million, with a 10% annualized quarter-over-quarter increase. Deposit growth was also impressive, reaching $179 million, representing a 15% annualized quarter-over-quarter increase.

Tangible book value per common share showed remarkable growth, with a 26% increase quarter over quarter, demonstrating the company's strengthening financial position. Smartfinancial also undertook strategic actions, including the repositioning of available-for-sale securities and a subordinated debt issuance of $100 million to retire existing debt and fund additional growth.

Smartfinancial's chairman, Miller Welborn, expressed satisfaction with the company's achievements, highlighting the surpassing of the $50 million quarterly revenue target and the strengthening of the balance sheet through strategic actions. He also emphasized the company's readiness to capitalize on future opportunities.

Furthermore, the company's net interest income for Q3 2025 was reported at $42.4 million, compared to $40.3 million in the prior quarter, indicating a positive trend in interest income. The average earning assets also increased by $271.4 million from the prior quarter, primarily driven by an increase in average loans and leases, and average interest-earning cash.

These figures collectively underscore Smartfinancial's strong performance and growth trajectory, positioning the company for continued success in the financial sector. Today the company's shares have moved 0.28% to a price of $35.21. Check out the company's full 8-K submission here.

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