SmartFinancial, Inc. has reported its financial results for the fourth quarter of 2025, showing a significant increase in net income compared to the same period in 2024. The company's net income for the fourth quarter of 2025 was $13.7 million, or $0.81 per diluted common share, compared to $9.6 million, or $0.57 per diluted common share, for the fourth quarter of 2024. Furthermore, the net income for the fourth quarter of 2025 remained consistent with the prior quarter.
Operating earnings, which excludes non-recurring income and expenses, net of tax adjustments, also saw a substantial increase, totaling $13.7 million, or $0.81 per diluted common share, in the fourth quarter of 2025, compared to $9.6 million, or $0.57 per diluted common share, in the fourth quarter of 2024. This represents a positive trend in the company's financial performance.
In terms of key financial metrics, SmartFinancial reported net organic loan and lease growth of $141 million with a 13% annualized quarter-over-quarter increase. Deposit growth also showed a positive trend, increasing by $102 million or 8% annualized quarter-over-quarter. The net interest margin, fully tax equivalent basis ("FTE"), expanded to 3.38%, reflecting lower deposit and funding costs.
The company also reported a quarter-over-quarter tangible book value per common share growth of 13%, marking a notable increase in shareholder value. Moreover, SmartFinancial achieved its seventh consecutive quarter of positive operating leverage, demonstrating consistent operational efficiency and financial strength.
Billy Carroll, President & CEO of SmartFinancial, highlighted the company's achievements, stating that 2025 marked a year of tremendous momentum build and overall improvement, with positive operating leverage and significant organic loan and deposit growth. He expressed optimism for an even brighter 2026.
The chairman of SmartFinancial, Miller Welborn, also expressed satisfaction with the company's financial progress, emphasizing the importance of operational excellence and a solid foundation for sustained success.
In terms of net interest income and net interest margin, SmartFinancial reported a net interest income of $45.1 million for the fourth quarter of 2025, compared to $42.4 million for the prior quarter. The tax equivalent net interest margin also increased to 3.38% for the fourth quarter of 2025, up from 3.25% for the prior quarter, primarily driven by declines in deposit costs.
Today the company's shares have moved -0.18% to a price of $39.42. Check out the company's full 8-K submission here.
