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SmartFinancial
(NYSE:SMBK)
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Rating:77Outperform
Price Target:
$58.00
▲(36.86% Upside)
Action:Reiterated
Date:08/11/26
SMBK scores well primarily on solid financial performance (improving TTM profitability, strong free cash flow generation, and modest leverage) and supportive technicals (price above key moving averages with positive momentum indicators). The latest earnings call reinforces strength via strong growth, margin resilience and credit quality, though near-term funding cost pressure and slightly softer Q3 NIM guidance temper upside. Valuation is acceptable on P/E but provides limited support from a low dividend yield.
Positive Factors
Free Cash Flow
Sustained FCF generation (~$70M TTM, ~31% growth) indicates robust earnings quality and cash conversion. Durable cash flow supports organic loan growth, dividend payments, capital buildup and discretionary investments, reducing reliance on external financing across business cycles.
Negative Factors
Short-term Brokered Funding
Reliance on ~$106M of short-term brokered funding indicates episodic funding stress amid rapid loan growth. If brokered balances persist or expand, the bank faces higher recurring funding costs and greater roll-over risk, which can compress NIM and raise funding volatility over months.
Read all positive and negative factors
Positive Factors
Negative Factors
Free Cash Flow
Sustained FCF generation (~$70M TTM, ~31% growth) indicates robust earnings quality and cash conversion. Durable cash flow supports organic loan growth, dividend payments, capital buildup and discretionary investments, reducing reliance on external financing across business cycles.
Read all positive factors
SmartFinancial (SMBK) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$888.09M
Dividend Yield0.65%
Average Volume (3M)61.23K
Price to Earnings (P/E)15.4
Beta (1Y)0.92
Revenue Growth11.51%
EPS Growth37.08%
CountryUS
Employees585
SectorFinancial
Sector Strength70
IndustryBanks - Regional
Share Statistics
EPS (TTM)3.42
Shares Outstanding17,098,473
10 Day Avg. Volume76,213
30 Day Avg. Volume61,232
Financial Highlights & Ratios
PEG Ratio0.31
Price to Book (P/B)1.12
Price to Sales (P/S)1.96
P/FCF Ratio10.47
Enterprise Value/Market Cap<0.01
Enterprise Value/Revenue<0.01
Enterprise Value/Gross Profit<0.01
Enterprise Value/Ebitda<0.01
Forecast
1Y Price Target
$51.30Price Target Upside21.05% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering5
EPS Forecast (FY)3.66
Revenue Forecast (FY)$226.57M
SmartFinancial Business Overview & Revenue Model
Company Description
SmartFinancial, Inc. functions as the parent entity for SmartBank, which offers a broad spectrum of financial solutions to both individual clients and corporate entities. The company's operations are structured across distinct segments: Commercial...
How the Company Makes Money
SmartFinancial makes money primarily through its banking subsidiary by earning net interest income and generating noninterest income. Net interest income is the spread between (1) interest and fees earned on interest-earning assets—mainly loans (s...
SmartFinancial Earnings Call Summary
Earnings Call Date:Jul 20, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Oct 26, 2026
Earnings Call Sentiment Positive
The call presented a strong operational quarter with notable loan growth (15% annualized), improved NII and NIM expansion, solid asset quality (NPAs 23 bps, net charge-offs 5 bps), growing TBV and tangible momentum toward the $1 EPS quarterly target. Near-term challenges include deposit cost pressure, use of $106 million in short-term brokered funding, modestly higher expenses tied to compensation and branch/support expansion, and a forecasted slight margin dip in Q3. Overall, the positive growth, margin resilience, strong credit metrics and capital position outweigh the near-term funding and expense headwinds.Positive Updates
Strong Operating Earnings and EPS
Operating earnings of $16.3 million, or $0.96 per diluted share for the quarter, moving the company close to its $1.00 Q4 EPS target under the '4x4' initiative.
Negative Updates
Deposit Cost Pressure and Funding Actions
New deposit production cost for Q2 was 2.90% (up ~8 bps) and interest-bearing deposit cost rose 2 bps to 2.62%; management used $106 million of short‑term brokered deposits to fund loan growth, indicating near-term funding pressure.
Read all updates
Q2-2026 Updates
Positive
Negative
Strong Operating Earnings and EPS
Operating earnings of $16.3 million, or $0.96 per diluted share for the quarter, moving the company close to its $1.00 Q4 EPS target under the '4x4' initiative.
Read all positive updates
Company Guidance
The company’s forward-looking guidance and targets emphasized modest margin pressure in Q3 but continued net interest margin expansion over time: management expects Q3 NIM in the ~3.45% range (normalized NIM 3.48% ex prepayment fees) with new loan production yields around 6.40% and portfolio yields expected to grind up ~3–4 bps per quarter; deposit competition may push deposit costs up ~1.5–2 bps per month in Q3 (Q2 new deposit cost was 2.90%), and temporary use of brokered funding (about $106M this quarter) may occur. They guided Q3 noninterest income ≈ $8.0M, noninterest expense $34.5–35.0M (salary & benefit expense $21.0–21.5M), an effective tax rate ~19.5%, and continue to target an allowance-to-loans ratio near 97–98 bps with modest provision needs; capital remains strong (TCE 8.0%, total risk‑based capital 12.7%), liquidity/coverage metrics are solid (loan-to-deposit ~87%), and management reiterated growth/return goals — sustaining strong loan growth (15% annualized Q2), core deposit growth (6% annualized Q2), operating earnings $16.3M ($0.96/sh this quarter), TBV $28.22, and a line of sight to $1.00 EPS in Q4 (a $4+ run rate), with ROA >1% and ROE ~13%+.SmartFinancial Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
81
Very Positive
| Breakdown | TTM | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 331.18M | 316.37M | 285.27M | 240.37M | 186.55M | 149.18M |
| Gross Profit | 208.50M | 192.88M | 166.35M | 149.38M | 161.20M | 135.71M |
| EBITDA | 74.41M | 69.93M | 56.87M | 49.72M | 67.55M | 53.32M |
| Net Income | 57.39M | 50.35M | 36.14M | 28.59M | 43.02M | 34.79M |
Balance Sheet | ||||||
| Total Assets | 6.12B | 5.86B | 5.28B | 4.83B | 4.64B | 4.61B |
| Cash, Cash Equivalents and Short-Term Investments | 379.39M | 1.14B | 684.73M | 703.23M | 735.01M | 1.49B |
| Total Debt | 99.41M | 101.67M | 47.78M | 55.20M | 83.92M | 141.73M |
| Total Liabilities | 5.54B | 5.31B | 4.78B | 4.37B | 4.21B | 4.18B |
| Stockholders Equity | 576.81M | 552.38M | 491.35M | 459.89M | 432.45M | 429.43M |
Cash Flow | ||||||
| Free Cash Flow | 70.47M | 59.34M | 46.30M | 33.45M | 44.31M | 43.80M |
| Operating Cash Flow | 73.44M | 61.72M | 52.70M | 39.72M | 56.79M | 46.18M |
| Investing Cash Flow | -618.89M | -499.05M | -420.22M | -135.24M | -840.82M | -264.99M |
| Financing Cash Flow | 559.75M | 514.17M | 402.82M | 181.37M | 5.37M | 782.17M |
SmartFinancial Technical Analysis
Positive
42.38
Price Trends
47.57
Positive
44.23
Positive
41.15
Positive
Market Momentum
1.48
Positive
65.18
Neutral
30.75
Neutral
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 42.38 is below the 20-day moving average (MA) of 51.10, below the 50-day MA of 47.57, and above the 200-day MA of 41.15, indicating a bullish trend. The MACD of 1.48 indicates Positive momentum. The RSI at 65.18 is Neutral, neither overbought nor oversold. The STOCH value of 30.75 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for SMBK.
SmartFinancial Risk Analysis
SmartFinancial disclosed 32 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
UnderperformOutperform
Sector (68)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
80 Outperform | $848.64M | 12.00 | 12.54% | 1.29% | 3.70% | 24.24% | |
80 Outperform | $847.76M | 11.92 | 12.36% | 1.52% | 6.55% | 14.68% | |
77 Outperform | $888.09M | 15.36 | 10.30% | 0.84% | 11.51% | 37.08% | |
68 Neutral | $18.00B | 11.42 | 9.92% | 3.81% | 9.73% | 1.22% | |
50 Neutral | $788.93M | -23.63 | -4.99% | ― | -3.01% | -184.78% |
* Financial Sector Average
SMBK
SmartFinancial
52.53
17.27
48.96%
SMBC
Southern Missouri Bancorp
77.43
23.09
42.49%
SUPV
Grupo Supervielle SA
8.28
-1.59
-16.11%
SPFI
South Plains Financial
45.53
6.37
16.27%
SmartFinancial Corporate Events
Business Operations and StrategyDividendsFinancial Disclosures
SmartFinancial Posts Strong Q2 Results, Raises Quarterly Dividend
Positive
Jul 20, 2026
SmartFinancial, Inc., headquartered in Knoxville, Tenn., is a regional financial services company operating SmartBank, which offers commercial and consumer banking products including loans, leases and deposit accounts. The company has surpassed $6...
Executive/Board ChangesShareholder Meetings
SmartFinancial Shareholders Back Directors, Auditor and Executive Pay
Positive
May 22, 2026
SmartFinancial, Inc. held its 2026 annual meeting of shareholders on May 21, 2026, with 80.61% of outstanding shares represented in person or by proxy, and shareholders elected ten directors to serve until the 2027 annual meeting. Investors also r...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
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.