SmartFinancial, Inc. Reports Strong Q3 2025 Earnings

SmartFinancial, Inc. ( (SMBK) ) has released its Q3 earnings. Here is a breakdown of the information SmartFinancial, Inc. presented to its investors.

SmartFinancial, Inc., headquartered in Knoxville, Tennessee, operates as a bank holding company for SmartBank, providing full-service commercial banking services across Tennessee, Alabama, and Florida. In its third-quarter earnings report for 2025, SmartFinancial announced a net income of $13.7 million, marking a significant increase from the $9.1 million reported in the same quarter of the previous year. The company also achieved over $50 million in quarterly operating revenue, showcasing robust financial performance.

Key financial highlights for the quarter include a 10% annualized increase in net organic loan and lease growth and a 15% annualized rise in deposit growth. The tangible book value per common share saw a notable 26% quarter-over-quarter growth. Additionally, the company reported a $4.0 million pre-tax gain from the sale of SBK Insurance, although it also incurred a $3.9 million pre-tax loss from repositioning available-for-sale securities. SmartFinancial issued $100 million in subordinated debt to retire existing debt and support further growth.

The net interest income for the quarter was $42.4 million, up from $40.3 million in the prior quarter, with a slight decrease in the net interest margin to 3.25%. The company maintained solid asset quality, with nonperforming loans and leases constituting 0.24% of total loans and leases. Despite a decrease in noninterest income due to securities losses, the company benefited from gains on the sale of SBKI.

Looking forward, SmartFinancial’s management is optimistic about closing the year with increased market share and setting the stage for a stronger 2026. The strategic actions taken, including the SBKI partnership and debt issuance, have fortified the company’s balance sheet, positioning it well for future opportunities.