Online Banking First Time User? Enroll Here

DESTIN, FL – October 19, 2012–SmartFinancial, Inc., through its subsidiary, SmartBank, is pleased to announce that it has expanded into the Florida Panhandle by acquiring substantially all of the assets and liabilities of Destin-based GulfSouth Private Bank from the Federal Deposit Insurance Corporation (“FDIC”).

SmartBank has purchased the approximately $150 million bank with offices in Destin, Fort Walton Beach, Pensacola and Santa Rosa Beach.

“We welcome GulfSouth Private Bank clients to the SmartBank family,” said Billy Carroll, President and CEO of SmartBank. “We are excited and committed to locally serving our new clients in the Destin area with the same level of exceptional service and responsiveness that we have built the SmartBank name upon. Our strong capital position and successful past performance helps ensure our commitment to be there for our clients today, tomorrow and for many years to come. Most importantly, all depositors will have normal access to their funds and will be fully protected under the FDIC’s insurance coverage up to the maximum allowed by law and by SmartBank assuming any balance beyond that limit.”

SmartBank organized in 2006 and is headquartered in Pigeon Forge, Tennessee with 4 locations across East Tennessee. The Bank’s organizers include Vic Barrett, Cofounder and Partner of Destin’s The Track Recreation Center; Ted Miller, Business Manager and Partner of Dolly Parton Productions; Bill Carroll, SmartBank Chairman of the Board; Billy Carroll, SmartBank President and CEO; Greg Davis, SmartBank Executive Vice President & Chief Lending Officer; David Ogle, President and Cofounder of Five Oaks Development Group; Dr. Keith Whaley, Founder of Whaley Family Eye Center and Geoff Wolpert, Owner of the Park Grill and Peddler Restaurants.

SmartBank’s results during its first five years have proven a successful execution of its strategic plan. SmartBank reported strong earnings in 2011 along with a healthy capital and excellent asset quality. Recruiting the best people, delivering exceptional client service, strategic branching and a conservative and disciplined approach to lending have all given rise to SmartBank’s success.

“This is the first FDIC-assisted transaction that we have completed and we look forward to serving clients in the Florida market. Our team will work hard to make this a seamless and successful transition for GulfSouth Private Bank clients,” said Carroll.

GulfSouth Private Bank offices will become branches of SmartBank and their clients should continue to conduct their banking as they have in the past. SmartBank will soon be providing additional information to GulfSouth Private Bank clients about this transaction. All deposits are now backed by the financial strength and security of SmartBank and will continue to be insured by the FDIC to the fullest extent provided by law.
If clients of GulfSouth Private Bank have any questions regarding their accounts involved in this transaction, they should visit www.smartbank.net or www.fdic.gov, or contact their customer service representatives.

SmartBank is a full-service bank with assets of approximately $340 million serving clients in Sevierville, Pigeon Forge, Gatlinburg and Knoxville, TN and four locations in Florida including Destin, Pensacola, Fort Walton Beach and Santa Rosa Beach. For more about SmartBank, please visit www.smartbank.net.

ATTENTION: GulfSouth Private Bank Clients – For more information please visit the “Frequently Asked Questions” below.

Is my money safe?
Yes. All deposits continue to be insured by the FDIC up to the maximum FDIC limits.

How can I access my funds?
You may continue to use your outstanding checks, and they will clear up to the full balance in your account. Your ATM/Debit card will continue to work as usual. The total balance in your account(s), including checking, savings, money market, non-brokered Certificates of Deposit, and retirement accounts, has been transferred to SmartBank and will be available for transactions during regular business hours at former GulfSouth Private Bank branches.

Will my direct deposits still make it into my account?
Yes. All direct deposits (for example, social security checks, payroll, veteran’s benefits, welfare and/or disability, unemployment) or any payment you receive electronically will continue to be received properly.

Why are you asking me to ratify my account?
Because ratification of your account facilitates its integration into the SmartBank systems. We are making it quick and easy; all you have to do is sign the Account Ratification Form and return it to us in the postage-paid envelope.

What about the auto payments and electronic bill pay I have already set up?
These services will continue as usual. Your routing number and account number will remain the same until you are notified in writing by SmartBank.

Will I continue with the same interest rate?
Interest on deposits accrued through the close of business on Friday, October 19, 2012 will be paid at your same rate. All interest rates will remain the same until a notification of change is provided by SmartBank. You have the right to withdraw your funds without penalty until a new agreement is entered into with SmartBank as long as the deposits are not pledged as collateral for loans.

How do I access my online banking?
Visit www.gulfsouthprivatebank.com and login to on-line banking at the bottom of the page. We will notify you when our systems are integrated at which time you will be able to access via www.smartbank.net.

What about an overdraft line of credit?
These lines have been transferred to SmartBank. Please visit or contact SmartBank if you have additional questions regarding your accounts.

How and when should I make my loan payments?
SmartBank acquired substantially all of the loans of GulfSouth Private Bank and we ask that you continue to make your payments according to the terms of your written contract. You may continue to make your payments at the branch office or send it to the same payment address with checks made payable to SmartBank.

What about escrow payments?
All services previously performed related to your loan will continue. Should you receive notification that any portion of your taxes or insurance was not paid, please notify your loan officer immediately.

What about loan applications in process?
Any pending loan applications will need to be reviewed for consideration. For more information, please contact your local loan officer.

If I have any questions not addressed here, where would I find an answer?
For all other questions, please contact or visit your local branch or call a SmartBank representative at 865.453.2650. For more information about SmartBank, please visit www.smartbank.net.