SmartFinancial, Inc. reported significant financial growth for the fiscal year ending December 31, 2025, with net income reaching $50.3 million, or $2.98 per diluted share, compared to $36.1 million, or $2.14 per diluted share, in 2024. The company's total assets increased to $5.86 billion from $5.28 billion in the previous year, driven by a notable rise in net loans and leases, which grew by $453.8 million to a record high of $4.36 billion. Total deposits also saw a substantial increase of $466.3 million, reaching $5.15 billion, reflecting strong organic growth in customer deposits.
In terms of operational changes, SmartFinancial executed a strategic divestiture in the third quarter of 2025, selling its insurance subsidiary, SBK Insurance, for $11.5 million, which resulted in a pre-tax gain of $4 million. Additionally, the company issued $100 million in subordinated debt during the same quarter, while retiring $40 million of existing subordinated debt in the fourth quarter. These actions are part of SmartFinancial's ongoing strategy to optimize its capital structure and enhance its financial flexibility.
The company also reported improvements in key performance metrics, with a return on average assets of 0.91%, up from 0.73% in 2024, and a tax-equivalent net interest margin of 3.29%, compared to 3.04% the previous year. Noninterest income remained stable at $34.4 million, slightly up from $34.2 million in 2024, despite a loss on the sale of securities. Noninterest expenses increased to $131.2 million, primarily due to higher salaries and employee benefits, reflecting the company's investment in talent and resources to support its growth.
As of December 31, 2025, SmartFinancial employed 581 full-time and 8 part-time associates, with a focus on maintaining a diverse workforce. The company has continued to expand its geographic footprint, operating 42 full-service branches and one loan production office across Tennessee, Alabama, and Florida. The loan portfolio remains heavily concentrated in real estate, with approximately 80% of loans secured by real estate collateral, which poses inherent risks related to market fluctuations.
Looking ahead, SmartFinancial anticipates continued growth in its loan and deposit base, supported by its strategic initiatives and favorable market conditions. However, the company acknowledges potential risks, including economic uncertainties and competitive pressures in the financial services industry, which could impact its performance. The management remains committed to monitoring these factors closely to ensure sustainable growth and profitability in the future.
About SMARTFINANCIAL INC.
SmartFinancial, Inc. is a Tennessee-based bank holding company primarily owning and operating SmartBank, a community bank offering commercial, real estate, consumer loans, and deposit services across Tennessee, Alabama, and Florida. It provides financial products, investment, and insurance services, focusing on community banking, disciplined growth, and regulatory compliance. The company emphasizes credit risk management, capital adequacy, and a customer-centric approach in competitive regional markets.
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