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SmartFinancial (SMBK)
NYSE:SMBK
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SmartFinancial
(NYSE:SMBK)
75Outperform
SmartFinancial (SMBK) vs. S&P 500 (SPY)
Market Cap
$469.70M
Dividend Yield1.16%
Average Volume (3M)49.87K
Price to Earnings (P/E)12.9
Beta (1Y)1.12
Revenue Growth18.62%
EPS Growth26.65%
CountryUS
Employees597
SectorFinancial
Sector Strength82
IndustryBanks - Regional
Share Statistics
EPS (TTM)2.14
Shares Outstanding17,018,019
10 Day Avg. Volume48,398
30 Day Avg. Volume49,867
Financial Highlights & Ratios
PEG Ratio0.48
Price to Book (P/B)N/A
Price to Sales (P/S)3.17
Price to Cash Flow (P/CF)7.90
P/FCF Ratio3.40
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$38.00Price Target Upside37.68% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering3
SmartFinancial Business Overview & Revenue Model
Company DescriptionSmartFinancial, Inc. (SMBK) is a bank holding company that operates primarily through its subsidiary, SmartBank. The company provides a range of financial services to individuals and businesses, focusing on personalized banking solutions. Headquartered in Knoxville, Tennessee, SmartFinancial offers various products, including personal and commercial loans, deposit accounts, mortgage banking, and wealth management services, primarily serving customers in the Southeastern United States.
How the Company Makes MoneySmartFinancial generates revenue primarily through its lending activities. The company earns interest income from personal, commercial, and real estate loans. Additionally, it collects fees from various banking services, including transaction fees, service charges on deposit accounts, and fees from wealth management and advisory services. The company also benefits from strategic partnerships and acquisitions that expand its market presence and customer base, contributing to its overall earnings.
SmartFinancial Financial Statement Overview
Summary
SmartFinancial demonstrates strong financial performance with significant revenue growth of 64.8% and efficient cost management. The balance sheet reflects low leverage risk with a zero debt-to-equity ratio. Cash flow statements highlight robust cash generation, although there is a concern with decreasing net profit margin and high negative investing cash flow.Income Statement
Strong revenue growth observed with a significant increase from $152.4M in 2023 to $251.1M in 2024, indicating a growth rate of 64.8%. The gross profit margin remains stable at 100%, reflecting efficient cost management. However, net profit margin saw a decrease from 18.8% in 2023 to 14.4% in 2024, indicating increased operational costs or other expenses impacting net profitability. EBIT margin improved significantly to 99.5%, showcasing operational efficiency.82
Very Positive
Balance Sheet
The company maintains a strong equity position with a debt-to-equity ratio of 0, highlighting prudent financial management and low leverage risk. The equity ratio has slightly decreased to 9.3% in 2024 from 9.5% in 2023, indicating a relatively stable capital structure. Return on equity decreased from 6.2% in 2023 to 7.4% in 2024, revealing efficient use of equity to generate profits.74
Positive
Cash Flow
Free cash flow increased from $33.4M in 2023 to $52.7M in 2024, highlighting a solid cash flow growth rate of 57.7%. The operating cash flow to net income ratio improved to 1.46, indicating strong cash generation relative to net income. Free cash flow to net income ratio stands at 1.46, reflecting robust cash flow management. However, investing cash flow remains negative, suggesting potential risks from high capital expenditures or investments.79
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 251.12M | 152.41M | 6.38M | 137.34M | 114.10M | Gross Profit |
| 251.12M | 152.41M | 6.38M | 137.34M | 114.10M | EBIT |
| 249.80M | 36.23M | 86.28M | 44.32M | 30.89M | EBITDA |
| 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | Net Income Common Stockholders |
| 36.14M | 28.59M | 43.02M | 34.79M | 24.33M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 578.84M | 470.00M | 750.32M | 1.53B | 697.35M | Total Assets |
| 5.28B | 4.83B | 4.61B | 4.61B | 3.30B | Total Debt |
| 43.68M | 50.10M | 71.79M | 129.51M | 120.55M | Net Debt |
| -96.51M | -244.72M | -194.63M | -915.56M | -361.17M | Total Liabilities |
| 4.78B | 4.37B | 4.18B | 4.18B | 120.55M | Stockholders Equity |
| 491.35M | 459.89M | 432.45M | 429.43M | 357.17M |
| Cash Flow | Free Cash Flow | |||
| 52.70M | 33.45M | 44.31M | 43.80M | 23.63M | Operating Cash Flow |
| 52.70M | 39.72M | 56.79M | 46.18M | 29.07M | Investing Cash Flow |
| -420.22M | -135.24M | -840.82M | -264.99M | -259.34M | Financing Cash Flow |
| 402.82M | 181.37M | 5.37M | 782.17M | 528.02M |
SmartFinancial Technical Analysis
Negative
27.60
Price Trends
33.30
Negative
33.45
Negative
30.78
Negative
Market Momentum
-0.64
Negative
36.91
Neutral
16.15
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMBK, the sentiment is Negative. The current price of 27.6 is below the 20-day moving average (MA) of 30.87, below the 50-day MA of 33.30, and below the 200-day MA of 30.78, indicating a bearish trend. The MACD of -0.64 indicates Negative momentum. The RSI at 36.91 is Neutral, neither overbought nor oversold. The STOCH value of 16.15 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for SMBK.
SmartFinancial Risk Analysis
SmartFinancial disclosed 31 risk factors in its most recent earnings report. SmartFinancial reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
SmartFinancial Peers Comparison
Overall Rating
UnderperformOutperform
Sector (64)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $469.70M | 12.89 | 7.60% | 1.16% | 18.62% | 26.65% | |
75 Outperform | $1.37B | 8.41 | 10.44% | ― | -3.61% | -29.58% | |
70 Neutral | $3.86B | 17.01 | 14.87% | 1.75% | 16.28% | 9.61% | |
68 Neutral | $5.70B | 10.91 | 9.70% | 2.52% | 11.17% | 1.47% | |
66 Neutral | $186.23M | 9.56 | 8.95% | 3.10% | 10.65% | -12.80% | |
64 Neutral | $12.70B | 9.08 | 9.19% | 4.89% | 16.29% | -8.64% | |
62 Neutral | $2.78B | 9.70 | 9.69% | 4.52% | 21.10% | -4.20% |
* Financial Sector Average
Performance Comparison
SMBK
SmartFinancial
27.60
8.30
43.01%
BOKF
Bok Financial
89.07
2.80
3.25%
CFFI
C&F Financial
57.06
15.03
35.76%
FULT
Fulton Financial
15.22
0.76
5.26%
CUBI
Customers Bancorp
42.75
-6.82
-13.76%
SFBS
ServisFirst Bancshares
68.48
9.73
16.56%
SmartFinancial Earnings Call Summary
Earnings Call Date: Jan 21, 2025 | % Change Since: -14.05% | Next Earnings Date: Apr 21, 2025
Earnings Call Sentiment Positive
The earnings call presented a positive outlook with strong loan and deposit growth, improved net income and revenue, and an expansion in net interest margin. However, there were challenges such as increased noninterest expenses, a decrease in investment services revenue, and a slight decrease in capital ratios. Despite these, the company's strong credit quality and recognition as a great workplace contribute to a positive sentiment.Highlights
Strong Loan and Deposit Growth
Loan growth at a 20% annualized pace for Q4 and 13.4% year-over-year. Deposit growth was approximately 34% annualized quarter-over-quarter.
Net Income and Revenue Increase
Net income for the quarter was $9.6 million or $0.57 per diluted share. Total revenue came in at $46.8 million.
Improved Tangible Book Value
Tangible book value increased to $22.85 per share, over 9% annualized quarter-over-quarter, excluding AOCI movement.
Net Interest Margin Expansion
Net interest margin expanded by 13 basis points to 3.24%.
Strong Credit Quality
Nonperforming loans to total loans at 20 basis points, and net charge-offs to average loans were 2 basis points annualized.
Certified Great Place to Work
Company recognized as a certified Great Place to Work and a regional top workplace for 8 consecutive years.
Lowlights
Slight Increase in Noninterest Expenses
Noninterest expenses slightly increased to over $32 million, attributed to increased incentive compensation and other real estate and loan-related expenses.
Decrease in Investment Services Revenue
Investment services revenue decreased by $500,000 due to decreased volume.
Leverage on Capital Ratios
Consolidated TCE ratio decreased 50 basis points to 7.5% due to capital allocation to high-return lending opportunities.
Challenges in Office Market Exposure
Mentioned challenges in the Nashville office market, including a property sale at an 85% discount.
Company Guidance
During the SmartFinancial Fourth Quarter 2024 Earnings Call, the executives provided detailed guidance and insights into the company's financial performance and expectations for the coming year. Key metrics highlighted included a net income of $9.6 million, or $0.57 per diluted share, and a 9% increase in tangible book value per share, reaching $24.25 excluding AOCI impacts. The company reported a strong balance sheet with a 20% annualized loan growth rate for Q4 and a 13.4% year-over-year increase, alongside a 34% annualized growth in deposits. The net interest margin expanded by 13 basis points to 3.24%, attributed to strategic deposit repositioning and a 7.08% yield on new loans. Nonperforming assets were at an impressively low 19 basis points, indicative of strong credit quality. Looking forward, the company anticipates maintaining mid- to high single-digit loan growth, with a focus on controlling expenses and achieving a quarterly revenue target of $50 million by Q3 2025. The executives also highlighted a favorable liquidity position, a loan-to-deposit ratio of 83%, and a strategic emphasis on operating leverage and profitability.SmartFinancial Corporate Events
Executive/Board Changes
SmartFinancial Expands Board, Appoints New Director
Positive
Mar 27, 2025
On March 27, 2025, SmartFinancial, Inc. announced the expansion of its Board of Directors from ten to eleven members and appointed Kelli D. Shomaker as the new director. Shomaker, a seasoned financial executive with over 29 years of experience in higher education and financial management, currently serves as the Senior Vice President for Business and Administration and Chief Financial Officer at Auburn University. Her appointment is expected to enhance SmartBank’s growth initiatives and strengthen its board capabilities, as highlighted by the company’s leadership.
Financial Disclosures
SmartFinancial Reports Strong Q4 2024 Performance
Positive
Jan 21, 2025
SmartFinancial reported a strong performance for the fourth quarter of 2024, with a net income of $9.6 million, an increase from both the prior year and the previous quarter. Notable achievements include a 13% year-over-year growth in loans and leases and a net interest margin expansion to 3.24%. The company’s credit quality remained solid, with a decrease in nonperforming assets. SmartFinancial’s leadership expressed confidence in continued profitability and value enhancement for shareholders into 2025.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.