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SmartFinancial (SMBK)
NYSE:SMBK
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SmartFinancial
(NYSE:SMBK)
74Outperform
SmartFinancial (SMBK) vs. S&P 500 (SPY)
Market Cap
$553.07M
Dividend Yield0.98%
Average Volume (3M)54.55K
Price to Earnings (P/E)14.4
Beta (1Y)0.97
Revenue Growth17.44%
EPS Growth44.45%
CountryUS
Employees597
SectorFinancial
Sector Strength87
IndustryBanks - Regional
Share Statistics
EPS (TTM)0.67
Shares Outstanding17,017,548
10 Day Avg. Volume42,178
30 Day Avg. Volume54,552
Financial Highlights & Ratios
PEG Ratio1.40
Price to Book (P/B)0.10
Price to Sales (P/S)0.00
P/FCF Ratio10.20
Enterprise Value/Market Cap0.95
Enterprise Value/Revenue0.69
Enterprise Value/Gross Profit2.26
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$35.00Price Target Upside8.12% Upside
Rating ConsensusHold
Number of Analyst Covering2
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 and efficient cost management. Despite high revenue growth and stable gross profit margins, the decrease in net profit margin and high negative investing cash flow pose potential risks.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 | |||
| 46.30M | 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
Positive
32.37
Price Trends
30.38
Positive
31.96
Positive
31.52
Positive
Market Momentum
0.59
Negative
64.90
Neutral
93.85
Negative
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For SMBK, the sentiment is Positive. The current price of 32.37 is above the 20-day moving average (MA) of 30.95, above the 50-day MA of 30.38, and above the 200-day MA of 31.52, indicating a bullish trend. The MACD of 0.59 indicates Negative momentum. The RSI at 64.90 is Neutral, neither overbought nor oversold. The STOCH value of 93.85 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 |
|---|---|---|---|---|---|---|---|
74 Outperform | $553.07M | 14.40 | 7.98% | 0.98% | 17.44% | 44.45% | |
71 Outperform | $653.14M | 9.78 | 8.38% | 2.84% | 13.17% | 24.36% | |
70 Outperform | $514.92M | 10.67 | 11.69% | 4.96% | 6.53% | -11.21% | |
66 Neutral | $513.10M | 16.09 | 5.31% | 0.69% | 6.72% | -17.45% | |
64 Neutral | $12.82B | 9.87 | 7.67% | 17000.34% | 12.39% | -5.85% | |
54 Neutral | $541.55M | 8.52 | -5.18% | 4.49% | -23.31% | -169.87% | |
54 Neutral | $481.79M | ― | ― | ― | ― |
* Financial Sector Average
Performance Comparison
SMBK
SmartFinancial
32.37
9.34
40.56%
FMNB
Farmers National Banc Oh
13.68
1.66
13.81%
FISI
Financial Institutions
27.02
9.18
51.46%
MPB
Mid Penn Bancorp
28.45
7.14
33.51%
PGC
Peapack-Gladstone Financial
28.80
4.48
18.42%
NPB
Northpointe Bancshares, Inc.
14.02
-0.54
-3.71%
SmartFinancial Earnings Call Summary
Earnings Call Date:Apr 21, 2025
(Q1-2025)
| % Change Since: 14.22%|
Next Earnings Date:Jul 28, 2025
Earnings Call Sentiment Positive
SmartFinancial demonstrated robust financial performance in Q1 2025 with strong loan and deposit growth, stable credit quality, and effective expense management. However, challenges such as competitive loan pricing, slight pressure on net interest margins, and potential impacts from tariffs were noted. Overall, the positive aspects of growth and financial health outweigh the challenges, suggesting a cautiously optimistic outlook.Q1-2025 Updates
Positive Updates
Solid Financial Performance
Net income for the quarter was $11.3 million, or $0.67 per diluted share, with total revenue at $46.8 million. The tangible book value increased to $23.61 per share, over 9% annualized quarter-over-quarter, excluding AOCI impacts.
Strong Loan and Deposit Growth
Loan growth was at a 9% annualized pace, and deposit growth was at 10% quarter-over-quarter annualized. The loan-to-deposit ratio was maintained at 83%, providing flexibility for future growth.
Credit Quality and Expense Management
Nonperforming assets were only 19 basis points, and the allowance for credit losses was steady at 0.96% of total loans. Operating expenses were unchanged from the previous quarter, demonstrating effective expense management.
Noninterest Income and Capital Position
Noninterest income totaled $8.6 million, driven by insurance and mortgage banking revenues. The company's TCE ratio increased to 7.6%, with a total risk-based capital ratio of 11.2%.
Negative Updates
Pressure on Net Interest Margin
Net interest margin was slightly down to 3.21% from last quarter, affected by previous Fed rate cuts and increased liquidity levels.
Competitive Loan Pricing
The average portfolio yield, including fees and accretion, was 5.97%, slightly down from Q4, indicating competitive pressure in the market.
Potential Impact of Tariffs
Concerns were raised about tariffs affecting client sentiment and potential impacts on certain sectors like trucking and construction materials.
Company Guidance
During the first quarter of the fiscal year 2025, SmartFinancial reported a net income of $11.3 million, translating to $0.67 per diluted share. The tangible book value per share increased to $23.61, or $24.76 excluding the impact of accumulated other comprehensive income (AOCI), marking an annualized growth of over 9% quarter-over-quarter. The company's loan growth was reported at a 9% annualized pace, aligned with expectations, while deposits grew at a 10% annualized rate. Nonperforming assets stood at just 19 basis points, reflecting continued strong credit quality. Total revenue for the quarter reached $46.8 million, with net interest income expanding as anticipated. Noninterest income was robust at $8.6 million, while noninterest expenses were stable at just over $32 million. SmartFinancial's loan-to-deposit ratio remained at 83%, and the net interest margin was slightly down at 3.21%, though the company anticipates margin expansion of 2-3 basis points per quarter throughout 2025. The provision for credit losses was $979,000, and the effective corporate tax rate was approximately 17%. The consolidated tangible common equity (TCE) ratio increased to 7.6%, and the total risk-based capital ratio was well above regulatory standards at 11.2%.SmartFinancial Corporate Events
DividendsBusiness Operations and StrategyFinancial Disclosures
SmartFinancial Reports Strong Q1 2025 Financial Performance
Positive
Apr 21, 2025
SmartFinancial reported a strong financial performance for the first quarter of 2025, with a net income of $11.3 million, marking an increase from the previous year and quarter. The company experienced significant growth in loans and deposits, maintaining solid credit quality and a low percentage of nonperforming assets. The board declared a quarterly cash dividend of $0.08 per share, reflecting confidence in the company’s financial health and commitment to shareholder value. SmartFinancial’s strategic investments in employee engagement and leadership programs have positively impacted its operational efficiency and cultural strength, positioning it well for future growth.
Spark’s Take on SMBK Stock
According to Spark, TipRanks’ AI Analyst, SMBK is a Outperform.
SmartFinancial’s stock is rated favorably due to its solid financial performance, strong loan and deposit growth, and positive earnings call sentiment. However, technical indicators suggest some caution with recent downward momentum. The valuation is reasonable, and the company maintains a low-risk capital structure. Investors should monitor the decreasing net profit margin and high negative investing cash flow for potential future risks.
To see Spark’s full report on SMBK stock, click here.
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.
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.