KNOXVILLE – SmartFinancial, Inc. (NASDAQ: SMBK), recently announced net income of $2.7 million, or $0.19 per diluted common share, for the first quarter of 2020, compared to net income of $6.7 million, or $0.48 per diluted common share for the fourth quarter of 2019. Net operating earnings (Non-GAAP), which excludes securities gains, merger related and restructuring expenses and non-operating items, totaled $4.3 million, or $0.30 per diluted common share, in the first quarter of 2020, compared to $6.5 million, or $0.46 per diluted common share, in the fourth quarter of 2019.
Highlights for the First Quarter of 2020:
- Completed the acquisition of Progressive Financial Group, Inc. (“PFG”)
- Net income of $2.7 million and net operating earnings of $4.3 million (Non-GAAP)
- Return on average assets of 0.43% and net operating annualized return on average assets (Non-GAAP) of 0.67%
- Asset quality remains strong with nonperforming assets to total assets of 0.31%
- Loan growth (excluding loans acquired from PFG) of $53.9 million, or 11.4% annualized
- Tangible book value (Non-GAAP) per share of $16.40, a 8.0% year-over-year increase
- Allowance for loan losses increased to $13.4 million, an increase 31.1%, in light of the current economic conditions
Billy Carroll, president & CEO, stated, “We are pleased to report another very solid quarter during what has proven to be a difficult and uncertain environment for many of our clients. Our team has worked extremely hard to assist clients that have been impacted due to COVID-19, including participation in the Small Business Administration’s Paycheck Protection Program (PPP). We mobilized our team to successfully process approximately 1,700 applications totaling over $239 million of loans through the month of April, in round one of the PPP program, as we look forward to our economy’s “restart,” we are well positioned for the future.”
SmartFinancial’s Chairman, Miller Welborn, concluded, “I am extremely proud of this team as we stepped up to help our clients in this time of stress. All of our associates have shown incredible commitment to strengthen, not just our company’s financials, but our clients and communities as well. We also welcome Progressive Financial Group to the SmartFinancial family. This transaction is a great step forward in our growth strategy.”
SmartFinancial completed the acquisition of PFG and its wholly owned subsidiary Progressive Savings Bank on March 1, 2020, and this quarter includes one month results of the acquired company.
About SmartFinancial, Inc.
SmartFinancial, Inc., based in Knoxville, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with 35 branches across East and Middle Tennessee, Alabama and the Florida Panhandle. Recruiting the best people, delivering exceptional client service, strategic branching and a disciplined approach to lending have contributed to SmartBank’s success. More information about SmartFinancial can be found on its website: www.smartfinancialinc.com.