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Highlights for the Fourth Quarter of 2021

  • Operating earnings[1] of $0.52 and $2.39 per diluted common share for the 2021 fourth quarter and year end, respectively
  • 31% increase in year-over-year operating earnings1 per diluted common share
  • Net organic loan growth of over $75 million, a 12% annualized quarter-over-quarter increase
  • Tangible book value per share1 of $19.26, a 4.8% annualized quarter-over-quarter increase
  • Strategic Nashville, TN MSA2 enhancement with several senior relationship manager hires
  • Gulf Coast Wealth Management team lift-out previously responsible for managing ~$350 million in AUM[2]
  • Completion of Sevier County Bancshares, Inc. (“SCB”) integration; five branch closures with near full realization of operational efficiencies
  • Opening of Mobile, AL branch office and application approval of Auburn, Dothan and Montgomery branch offices
  • Opening of Birmingham, AL loan production office

 

KNOXVILLE, TN – January 24, 2022 – SmartFinancial, Inc. (“SmartFinancial” or the “Company”; NASDAQ: SMBK), today announced net income of $6.7 million, or $0.40 per diluted common share, for the fourth quarter of 2021, compared to net income of $9.0 million, or $0.59 per diluted common share, for the fourth quarter of 2020, and compared to prior quarter net income of $9.6 million, or $0.61 per diluted common share.  Operating earnings (Non-GAAP), which excludes securities gains, merger related and restructuring expenses and non-operating items, totaled $8.7 million, or $0.52 per diluted common share, in the fourth quarter of 2021, compared to $9.2 million, or $0.61 per diluted common share, in the fourth quarter of 2020, and compared to $9.9 million, or $0.63 per diluted common share, in the third quarter of 2021.

 

 

Billy Carroll, President & CEO, stated: “SmartFinancial reported another solid quarter as we wrapped up an outstanding year for our company.  Loans and deposits continued to organically grow at a strong pace.  We also expanded our sales team again this quarter with experienced and seasoned industry professionals.  The investments we made in 2021 are positioning us very well as we look into 2022 and beyond.”

 

SmartFinancial’s Chairman, Miller Welborn, concluded: “We couldn’t be more excited about where we are as a company. Our 2021 was a fantastic year on many fronts and it’s nice to finish with strong numbers and incredible momentum. Our team is poised and ready for 2022”.

 

Net Interest Income and Net Interest Margin

 

Net interest income was $29.9 million for the fourth quarter of 2021, compared to $30.4 million for the prior quarter.  Average earning assets totaled $4.08 billion, an increase of $469.4 million.  The growth in average earnings assets was primarily driven by an increase in average securities of $167.7 million, average interest-earning cash of $163.2 million and average loans and leases of $137.3 million. Average interest-bearing liabilities increased $354.3 million, related to continued core deposit growth.

 

The tax equivalent net interest margin was 2.92% for the fourth quarter of 2021, compared to 3.35% for the prior quarter. The tax equivalent net interest margin was impacted by a 47 basis point decrease in the average yield on interest-earning assets and offset by a 5 basis point decline in the rate on interest-bearing liabilities over the prior quarter.  The decrease in yield on interest-earning assets was due to the combined impact of a quarter-over-quarter loan discount accretion and Payroll Protection Program (“PPP”) fee accretion decrease of $2.5 million and increased interest-earning cash position.

The yield on interest-bearing liabilities decreased to 0.39% for the fourth quarter of 2021 compared to 0.44% for the prior quarter. The cost of average interest-bearing deposits was 0.29% for the fourth quarter of 2021 compared to 0.34% for the prior quarter, a decrease of 5 basis points. The lower cost of average deposits was attributable to the maturing and repricing of time deposits, which decreased 13 basis points during the period. The cost of total deposits for the fourth quarter of 2021 was 0.22% compared to 0.25% in the prior quarter.

 

The following table presents selected interest rates and yields for the periods indicated:

 

               
    Three Months Ended      
    Dec   Sep   Increase  
Selected Interest Rates and Yields   2021   2021   (Decrease)  
Yield on loans and leases    4.53 %  4.95 %  (0.42) %
Yield on earning assets, FTE    3.20 %  3.67 %  (0.47) %
Cost of interest-bearing deposits    0.29 %  0.34 %  (0.05) %
Cost of total deposits    0.22 %  0.25 %  (0.03) %
Cost of interest-bearing liabilities    0.39 %  0.44 %  (0.05) %
Net interest margin, FTE    2.92 %  3.35 %  (0.43) %

 

Provision for Loan and Lease Losses and Credit Quality

 

At December 31, 2021, the allowance for loan and lease losses was $19.4 million.  The allowance for loan and lease losses to total loans and leases was 0.72% as of December 31, 2021, compared to 0.73% as of September 30, 2021.  For the Company’s originated loans and leases, the allowance for loan and lease losses to originated loans and leases, less PPP loans, was 0.74% as of December 31, 2021, compared to 0.76% as of September 30, 2021.  The remaining discounts on the acquired loan and lease portfolio totaled $15.5 million, or 3.42% of acquired loans and leases as of December 31, 2021.

 

The following table presents detailed information related to the provision for loan and lease losses for the periods indicated (dollars in thousands):

 

                       
      Three Months Ended        
        Dec     Sep        
  Provision for Loan and Lease Losses Rollforward     2021     2021     Change  
  Beginning balance   $  19,295   $  18,310   $  985  
  Charge-offs      (499)      (239)      (260)  
  Recoveries      134      75      59  
  Net charge-offs      (365)      (164)      (201)  
  Provision      422      1,149      727  
  Ending balance   $  19,352   $  19,295   $  57  
                       
  Allowance for loan losses to total loans and leases, gross      0.72 %    0.73 %    (0.01) %

 

The Company is not required to implement the provisions of the Current Expected Credit Losses (“CECL”) accounting standard until January 1, 2023 and is continuing to account for the allowance for loan and lease losses under the incurred loss model.

 

Nonperforming loans and leases as a percentage of total loans and leases was 0.12% as of December 31, 2021, a decrease of 1 basis point from the 0.13% reported in the third quarter of 2021.  Total nonperforming assets (which include nonaccrual loans and leases, loans and leases past due 90 days or more and still accruing, other real estate owned and other repossessed assets) as a percentage of total assets was 0.11% as of December 31, 2021, as compared to 0.14% as of September 30, 2021.

The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands):

 

                       
      Three Months Ended        
        Dec     Sep     Increase  
  Credit Quality     2021     2021     (Decrease)  
  Nonaccrual loans and leases   $  3,124   $  3,567   $  (443)  
  Loans and leases past due 90 days or more and still accruing      64      –      64  
  Total nonperforming loans and leases      3,188      3,567      (379)  
  Other real estate owned      1,780      2,415      (635)  
  Other repossessed assets      90      77      13  
  Total nonperforming assets   $  5,058   $  6,059   $  (1,001)  
                       
  Nonperforming loans and leases to total loans and leases, gross      0.12 %    0.13 %    (0.01) %
  Nonperforming assets to total assets      0.11 %    0.14 %    (0.03) %

 

Noninterest Income

 

Noninterest income increased $497 thousand to $6.8 million for the fourth quarter of 2021 compared to $6.3 million for the prior quarter.  During the fourth quarter of 2021, the primary components of the changes in noninterest income were as follows:

 

  • Increase in service charges on deposit accounts, related to the SCB acquisition, account growth and transaction volume;
  • Increase in investment income, related to increased volume;
  • Decrease in insurance commissions, due to lower transaction volume, primarily driven by seasonality;
  • Increased interchange and debit card transaction fees, related to higher volume, account growth and the SCB acquisition; and
  • Increase in other, primarily from the gain on sale of credit card portfolio.

 

The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands):

 

                   
    Three Months Ended      
      Dec     Sep     Increase
Noninterest Income     2021     2021     (Decrease)
Service charges on deposit accounts   $  1,372   $  1,220   $  152
Gain (loss) on sale of securities, net      –      45      (45)
Mortgage banking income      803      994      (191)
Investment services      621      448      173
Insurance commissions      517      745      (228)
Interchange and debit card transaction fees      1,445      1,078      367
Other      2,048      1,779      269
Total noninterest income   $  6,806   $  6,309   $  497

 

 

Noninterest Expense

 

Noninterest expense increased $4.5 million to $27.8 million for the fourth quarter of 2021 compared to $23.3 million for the prior quarter. During the fourth quarter of 2021, the primary components of the changes in noninterest expense were as follows:

 

  • Increase in salaries and employee benefits, primarily due to:
    • Additional personnel related to the SCB acquisition;
    • Banking team hires in Auburn, Dothan, Montgomery and Birmingham, AL, Tallahassee, FL and Nashville, TN;
    • The Gulf Coast Wealth Management team lift-out;
  • Increase in occupancy and equipment expense from the SCB acquisition and expansion in Alabama; and
  • Increase in other expense, primarily related to overall franchise growth.

 

The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands):

 

                   
    Three Months Ended      
      Dec     Sep     Increase
Noninterest Expense     2021     2021     (Decrease)
Salaries and employee benefits   $  14,990   $  13,594   $  1,396
Occupancy and equipment      3,026      2,536      490
FDIC insurance      567      525      42
Other real estate and loan related expenses      583      407      176
Advertising and marketing      176      235      (59)
Data processing and technology      1,722      1,753      (31)
Professional services      847      810      37
Amortization of intangibles      660      711      (51)
Merger related and restructuring expenses      2,762      464      2,298
Other      2,490      2,274      216
Total noninterest expense   $  27,823   $  23,309   $  4,514

 

Income Tax Expense

 

Income tax expense was $1.8 million for the fourth quarter of 2021, a decrease of $872 thousand, compared to $2.6 million for the prior quarter.

The effective tax rate was 20.9% for the fourth quarter of 2021 and 21.5% for the prior quarter.

 

Balance Sheet Trends

 

Total assets at December 31, 2021 were $4.61 billion compared with $3.30 billion at December 31, 2020.  The increase of $1.31 billion is primarily attributable to increases in cash and cash equivalents of $563.4 million, securities of $343.8 million, loans and leases of $311.2 million, bank owned life insurance of $48.4 million and goodwill and intangibles of $19.4 million related to the SCB acquisition and the acquisition of Fountain Equipment Finance, LLC.

 

Total liabilities increased to $4.18 billion at December 31, 2021 from $2.95 billion at December 31, 2020.  The increase of $1.23 billion was primarily from organic deposit growth of $809.8 million and deposits of $407.0 million from the SCB acquisition.

 

Shareholders’ equity at December 31, 2021 totaled $429.4 million, an increase of $72.3 million, from December 31, 2020.  The increase in shareholders’ equity was primarily from the issuance of $42.3 million of common stock for the acquisition of SCB and net income of $34.8 million for the twelve months ended December 31, 2021, which was offset by repurchase of the Company’s common stock of $1.2 million and $3.7 million of dividends paid.  Tangible book value per share (Non-GAAP) was $19.26 at December 31, 2021, compared to $17.92 at December 31, 2020.  Tangible common equity (Non-GAAP) as a percentage of tangible assets (Non-GAAP) was 7.18% at December 31, 2021, compared with 8.41% at December 31, 2020.

 

The following table presents selected balance sheet information for the periods indicated (dollars in thousands):

 

                     
    Dec   Dec   Increase  
Selected Balance Sheet Information   2021   2020   (Decrease)  
Total assets   $  4,611,579   $  3,304,949   $  1,306,630  
Total liabilities      4,182,149      2,947,781      1,234,368  
Total equity      429,430      357,168      72,262  
Securities      559,422      215,634      343,788  
Loans and leases      2,693,397      2,382,243      311,154  
Deposits      4,021,938      2,805,215      1,216,723  
Borrowings      87,585      81,199      6,386  

 

Conference Call Information

 

SmartFinancial issued this earnings release for the fourth quarter of 2021 on Monday, January 24, 2022, and will host a conference call on Tuesday, January 25, 2022, at 10:00 a.m. ET.  To access this interactive teleconference, dial (844) 200-6205 for United States or +1 (929) 526-1599 for other locations and enter the access code, 574606.  A replay of the conference call will be available through March 26, 2022, by dialing (866) 813-9403 for United States or +44 (204) 525-0658 and entering the access code, 247688.  Conference call materials will be published on the Company’s webpage located at http://www.smartfinancialinc.com/CorporateProfile, at 9:00 am ET prior to the conference call.

 

About SmartFinancial, Inc.

 

SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with branches across 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.

 

   
Source  
SmartFinancial, Inc.  
   
Investor Contacts  
Billy Carroll  
President & CEO  
(865) 868-0613   billy.carroll@smartbank.com  
   
Ron Gorczynski  
Executive Vice President, Chief Financial Officer  
(865) 437-5724   ron.gorczynski@smartbank.com  
   
Media Contact  
Kelley Fowler  
Senior Vice President, Public Relations & Marketing  
(865) 868-0611    kelley.fowler@smartbank.com  
   

 

 

 

Non-GAAP Financial Measures

 

Statements included in this earnings release include measures not recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of Non-GAAP financial measures to GAAP financial measures. SmartFinancial management uses several Non-GAAP financial measures, including: (i) operating earnings, (ii) operating return on average assets, (iii) operating pre-tax pre-provision return on average assets, (iv) operating return on average shareholders’ equity, (v) return on average tangible common equity, (vi) operating return on average tangible common equity, (vii) operating efficiency ratio, (viii) operating noninterest income, (ix) operating pre-tax pre-provision earnings (x) operating noninterest expense, (xi) tangible common equity, (xii) average tangible common equity, (xiii) tangible book value; (xiv) tangible assets; and ratios derived therefrom, in its analysis of the company’s performance. Operating earnings excludes the following from net income: securities gains and losses, proceeds related to the termination of an Alabama Department of Economic and Community Affairs (“ADECA”) loan program, merger related and restructuring expenses.  Operating return on average assets is the annualized operating earnings (Non-GAAP) divided by average assets.  Operating pre-tax pre-provision return on average assets is the annualized operating pre-tax pre-provision income earnings (Non-GAAP) by average assets. Operating return on average shareholders’ equity is the annualized operating earnings (Non-GAAP) divided by average equity. Return on average tangible common equity is the annualized net income divided by average tangible common equity (Non-GAAP). Operating return on average tangible common equity is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP). The operating efficiency ratio includes an adjustment for taxable equivalent yields and excludes securities gains and losses and merger related and restructuring expenses from the efficiency ratio. Operating noninterest income excludes the following from noninterest income: securities gains and losses, proceeds related to the termination of the ADECA loan program.  Operating pre-tax pre-provision earnings is net interest income plus operating noninterest income (Non-GAAP) less operating noninterest expense (Non-GAAP).  Operating noninterest expense excludes the following from noninterest expense: prior year adjustments to salaries, merger related and restructuring expenses and certain franchise tax true-up expenses. Tangible common equity and average tangible common equity excludes goodwill and other intangible assets from shareholders’ equity and average shareholders’ equity, respectively.  Tangible book value is tangible common equity (Non-GAAP) divided by common shares outstanding.  Tangible assets excludes goodwill and other intangibles from total assets.  Management believes that Non-GAAP financial measures provide additional useful information that allows investors to evaluate the ongoing performance of the company and provide meaningful comparisons to its peers.  Management believes these non-GAAP financial measures also enhance investors’ ability to compare period-to-period financial results and allow investors and company management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance.  Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider SmartFinancial’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.

 

 

Forward-Looking Statements

 

This news release may contain statements that are based on management’s current estimates or expectations of future events or future results, and that may be deemed to constitute forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995.  These statements, including statements regarding the effects of the COVID-19 pandemic and related variants on the Company’s business and financial results and conditions, are not historical in nature and can generally be identified by such words as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “may,” “estimate,” and similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results of SmartFinancial to differ materially from future results expressed or implied by such forward-looking statements. Such risks, uncertainties, and other factors include, among others, (1) risks associated with our growth strategy, including a failure to implement our growth plans or an inability to manage our growth effectively; (2) claims and litigation arising from our business activities and from the companies we acquire, which may relate to contractual issues, environmental laws, fiduciary responsibility, and other matters; (3) the risk that cost savings and revenue synergies from recently completed acquisitions may not be realized or may take longer than anticipated to realize; (4) disruption from recently completed acquisitions with customer, supplier, employee, or other business relationships; (5) our ability to successfully integrate the businesses acquired as part of previous acquisitions with the business of SmartBank; (6) risks related to the acquisition of Sevier County Bancshares, Inc. (“SCB”); (7) the risk that the anticipated benefits from the acquisition of SCB may not be realized in the time frame anticipated; (8) changes in management’s plans for the future; (9) prevailing, or changes in, economic or political conditions, particularly in our market areas; (10) credit risk associated with our lending activities; (11) changes in interest rates, loan demand, real estate values, or competition; (12) changes in accounting principles, policies, or guidelines; (13) changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19 and related variants; (14) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic and related variants; (15) the impact of the COVID-19 pandemic and related variants on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (16) potential increases in the provision for loan losses resulting from the COVID-19 pandemic and related variants; and (17) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in SmartFinancial’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, in each case filed with or furnished to the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website (www.sec.gov). Undue reliance should not be placed on forward-looking statements.  SmartFinancial disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events, or otherwise.

 

 

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information – (unaudited)

(dollars in thousands)

 

                               
    Ending Balances
    Dec   Sep   Jun   Mar   Dec
    2021   2021   2021   2021   2020
Assets:                              
Cash and cash equivalents   $  1,045,077   $  1,091,160   $  673,515   $  556,701   $  481,719
Securities available-for-sale, at fair value      482,453      339,343      250,817      250,937      215,634
Securities held-to-maturity, at amortized cost      76,969      —      —      —      —
Other investments      16,494      14,972      14,584      14,728      14,794
Loans held for sale      5,103      3,418      4,334      7,870      11,721
Loans and leases      2,693,397      2,652,663      2,468,318      2,487,129      2,382,243
Less: Allowance for loan and lease losses      (19,352)      (19,295)      (18,310)      (18,370)      (18,346)
Loans and leases, net      2,674,045      2,633,368      2,450,008      2,468,759      2,363,897
Premises and equipment, net      85,958      85,346      72,314      72,697      72,682
Other real estate owned      1,780      2,415      2,499      3,946      4,619
Goodwill and other intangibles, net      105,852      104,930      90,966      86,350      86,471
Bank owned life insurance      79,619      79,145      72,013      71,586      31,215
Other assets      38,229      29,934      23,306      23,629      22,197
Total assets   $  4,611,579   $  4,384,031   $  3,654,356   $  3,557,203   $  3,304,949
Liabilities:                              
Deposits:                              
Noninterest-bearing demand   $  1,055,125   $  977,180   $  807,560   $  777,968   $  685,957
Interest-bearing demand      899,158      847,007      702,470      683,887      649,129
Money market and savings      1,493,007      1,389,393      1,140,029      1,073,941      919,631
Time deposits      574,648      585,692      489,413      512,417      550,498
Total deposits      4,021,938      3,799,272      3,139,472      3,048,213      2,805,215
Borrowings      87,585      88,748      78,834      82,642      81,199
Subordinated debt      41,930      41,909      39,388      39,367      39,346
Other liabilities      30,696      29,382      23,269      22,923      22,021
Total liabilities      4,182,149      3,959,311      3,280,963      3,193,145      2,947,781
Shareholders’ Equity:                              
Common stock      16,803      16,801      15,110      15,105      15,107
Additional paid-in capital      292,937      292,760      252,039      251,836      252,693
Retained earnings      118,247      112,600      103,906      96,034      87,185
Accumulated other comprehensive income      1,443      2,559      2,338      1,083      2,183
Total shareholders’ equity      429,430      424,720      373,393      364,058      357,168
Total liabilities & shareholders’ equity   $  4,611,579   $  4,384,031   $  3,654,356   $  3,557,203   $  3,304,949

 

 

 

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information – (unaudited)

(dollars in thousands except share and per share data)

 

                                         
  Three Months Ended   Year Ended
  Dec   Sep   Jun   Mar   Dec   Dec   Dec
  2021   2021   2021   2021   2020   2021   2020
Interest income:                                        
Loans and leases, including fees $  30,567   $  31,674   $  28,323   $  28,018   $  28,594   $  118,582   $  112,312
Investment securities:                                        
Taxable    1,341      832      916      724      609      3,813      2,423
Tax-exempt    322      331      304      259      306      1,215      1,369
Federal funds sold and other earning assets    547      474      309      291      303      1,622      1,509
Total interest income    32,777      33,311      29,852      29,292      29,812      125,232      117,613
Interest expense:                                        
Deposits    2,116      2,153      2,248      2,331      2,580      8,849      13,597
Borrowings    180      121      123      117      142      540      816
Subordinated debt    626      655      584      584      584      2,449      2,334
Total interest expense    2,922      2,929      2,955      3,032      3,306      11,838      16,747
Net interest income    29,855      30,382      26,897      26,260      26,506      113,394      100,866
Provision for loan and lease losses    422      1,149      (5)      67      —      1,633      8,683
Net interest income after provision for loan and lease losses    29,433      29,233      26,902      26,193      26,506      111,761      92,183
Noninterest income:                                        
Service charges on deposit accounts    1,372      1,220      1,048      1,009      1,032      4,650      3,403
Gain (loss) on sale of securities, net    —      45      —      —      —      45      6
Mortgage banking    803      994      1,105      1,139      1,331      4,040      3,875
Investment services    621      448      567      531      407      2,167      1,566
Insurance commissions    517      745      557      1,466      548      3,285      1,850
Interchange and debit card transaction fees    1,445      1,078      922      839      760      4,284      2,413
Other    2,048      1,779      944      707      898      5,478      2,313
Total noninterest income    6,806      6,309      5,143      5,691      4,976      23,949      15,426
Noninterest expense:                                        
Salaries and employee benefits    14,990      13,594      12,203      10,869      11,516      51,656      42,911
Occupancy and equipment    3,026      2,536      2,294      2,341      2,256      10,196      8,348
FDIC insurance    567      525      371      371      297      1,833      1,190
Other real estate and loan related expense    583      407      506      602      516      2,098      2,050
Advertising and marketing    176      235      230      190      181      830      834
Data processing and technology    1,722      1,753      1,509      1,379      1,182      6,364      4,476
Professional services    847      810      849      641      786      3,147      2,958
Amortization of intangibles    660      711      441      444      571      2,256      1,740
Merger related and restructuring expenses    2,762      464      372      103      702      3,701      4,565
Other    2,490      2,274      2,022      2,524      1,946      9,310      7,647
Total noninterest expense    27,823      23,309      20,797      19,464      19,953      91,391      76,719
Income before income taxes    8,416      12,233      11,248      12,420      11,529      44,319      30,890
Income tax expense    1,761      2,633      2,470      2,664      2,499      9,529      6,558
Net income $  6,655   $  9,600   $  8,778   $  9,756   $  9,030   $  34,790   $  24,332
Earnings per common share:                                        
Basic $  0.40   $  0.62   $  0.59   $  0.65   $  0.60   $  2.23   $  1.63
Diluted $  0.40   $  0.61   $  0.58   $  0.65   $  0.59   $  2.22   $  1.62
Weighted average common shares outstanding:                                        
Basic    16,699,010      15,557,528      15,003,657      15,011,573      15,109,298      15,572,537      14,955,423
Diluted    16,846,315      15,691,126      15,126,184      15,111,947      15,182,796      15,699,215      15,019,175

 

 

 

 

 

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information – (unaudited)

(dollars in thousands)

YIELD ANALYSIS

 

                                                   
    Three Months Ended  
    December 31, 2021   September 30, 2021   December 31, 2020  
    Average         Yield/   Average         Yield/   Average         Yield/  
    Balance   Interest1   Cost1   Balance   Interest1   Cost1   Balance   Interest1   Cost1  
Assets:                                                  
Loans and leases, including fees2   $  2,669,943   $  30,510    4.53 % $  2,532,604   $  31,623    4.95 % $  2,401,406   $  28,506    4.72 %
Loans held for sale      5,116      57    4.45 %    3,987      51    5.09 %    10,191      88    3.45 %
Taxable securities      339,371      1,341    1.57 %    187,032      832    1.77 %    119,936      609    2.02 %
Tax-exempt securities      102,989      479    1.85 %    87,621      477    2.16 %    90,200      456    2.01 %
Federal funds sold and other earning assets      965,899      547    0.22 %    802,712      474    0.23 %    349,167      303    0.35 %
Total interest-earning assets      4,083,318      32,934    3.20 %    3,613,956      33,457    3.67 %    2,970,900      29,962    4.01 %
Noninterest-earning assets      383,783                323,067                255,477            
Total assets   $  4,467,101             $  3,937,023             $  3,226,377            
                                                   
Liabilities and Stockholders’ Equity:                                                  
Interest-bearing demand deposits   $  853,763      403    0.19 % $  763,613      414    0.21 % $  570,326      230    0.16 %
Money market and savings deposits      1,428,472      920    0.26 %    1,233,533      854    0.27 %    903,235      774    0.34 %
Time deposits      583,165      793    0.54 %    524,327      885    0.67 %    565,237      1,576    1.11 %
Total interest-bearing deposits      2,865,400      2,116    0.29 %    2,521,473      2,153    0.34 %    2,038,798      2,580    0.50 %
Borrowings3      88,828      180    0.80 %    80,188      121    0.60 %    99,777      142    0.57 %
Subordinated debt      41,917      626    5.92 %    40,211      654    6.46 %    39,332      584    5.90 %
Total interest-bearing liabilities      2,996,145      2,922    0.39 %    2,641,872      2,928    0.44 %    2,177,907      3,306    0.60 %
Noninterest-bearing deposits      1,016,438                877,831                670,820            
Other liabilities      27,710                24,522                23,624            
Total liabilities      4,040,293                3,544,225                2,872,351            
Shareholders’ equity      426,808                392,798                354,026            
Total liabilities and shareholders’ equity   $  4,467,101             $  3,937,023             $  3,226,377            
                                                   
Net interest income, taxable equivalent         $  30,012             $  30,529             $  26,656      
Interest rate spread                2.81 %              3.23 %              3.41 %
Tax equivalent net interest margin                2.92 %              3.35 %              3.57 %
                                                   
Percentage of average interest-earning assets to average interest-bearing liabilities                136.29 %              136.80 %              136.41 %
Percentage of average equity to average assets                9.55 %              9.98 %              10.97 %

 

1 Taxable equivalent

2 Includes average balance of $80,501, $128,408 and $296,337 in PPP loans for the quarters ended December 31, 2021, September 30, 2021, and December 31, 2020, respectively.

3 Includes average balance of $18,092 in Paycheck Protection Program Liquidity Facility (“PPPLF”) funding for the quarter ended December 31, 2020.  No PPPLF funding was used for the quarters ended December 31, 2021, and September 30, 2021.

 

 

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information – (unaudited)

(dollars in thousands)

YIELD ANALYSIS

 

                                     
    Year Ended
    December 31, 2021   December 31, 2020  
    Average         Yield/   Average         Yield/  
    Balance   Interest1   Cost1   Balance   Interest1   Cost1  
Assets:                                    
Loans and leases, including fees2   $  2,535,006   $  118,332      4.67 % $  2,289,612   $  111,992    4.89 %
Loans held for sale      5,571      250      4.48 %    7,360      320    4.34 %
Taxable securities      207,459      3,813      1.84 %    122,900      2,423    1.97 %
Tax-exempt securities      92,708      1,817      1.96 %    83,765      1,941    2.32 %
Federal funds sold and other earning assets      680,909      1,622      0.24 %    308,843      1,509    0.49 %
Total interest-earning assets      3,521,653      125,834      3.57 %    2,812,480      118,185    4.20 %
Noninterest-earning assets      317,457                  250,955            
Total assets   $  3,839,110               $  3,063,435            
                                     
Liabilities and Stockholders’ Equity:                                    
Interest-bearing demand deposits   $  737,251      1,378      0.19 % $  481,050      1,013    0.21 %
Money market and savings deposits      1,191,916      3,501      0.29 %    788,006      3,482    0.44 %
Time deposits      533,994      3,970      0.74 %    641,647      9,102    1.42 %
Total interest-bearing deposits      2,463,161      8,849      0.36 %    1,910,703      13,597    0.71 %
Borrowings3      83,105      540      0.65 %    177,204      816    0.46 %
Subordinated debt      40,221      2,449      6.09 %    39,301      2,334    5.94 %
Total interest-bearing liabilities      2,586,487      11,838      0.46 %    2,127,208      16,747    0.79 %
Noninterest-bearing deposits      841,746                  571,282            
Other liabilities      23,189                  23,775            
Total liabilities      3,451,422                  2,722,265            
Shareholders’ equity      387,688                  341,170            
Total liabilities and shareholders’ equity   $  3,839,110               $  3,063,435            
                                     
Net interest income, taxable equivalent         $  113,996               $  101,438      
Interest rate spread                  3.12 %              3.41 %
Tax equivalent net interest margin                  3.24 %              3.61 %
                                     
Percentage of average interest-earning assets to average interest-bearing liabilities                  136.16 %              132.21 %
Percentage of average equity to average assets                  10.10 %              11.14 %

 

1 Taxable equivalent

2 Includes average balance of $196,078 and $201,470 in PPP loans for the twelve months ended December 31, 2021, and 2020, respectively.

3 Includes average balance of $91,190 in PPPLF funding for the twelve months ended December 31, 2020.  No PPPLF funding was used for the twelve months ended December 31, 2021.

 

 

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information – (unaudited)

(dollars in thousands)

YIELD ANALYSIS

 

                                     
    Year Ended
    December 31, 2020   December 31, 2019  
    Average         Yield/   Average         Yield/  
    Balance   Interest1   Cost1   Balance   Interest1   Cost1  
Assets:                                    
Loans, including fees2   $  2,289,612   $  111,992      4.89 % $  1,836,963   $  100,831    5.49 %
Loans held for sale      7,360      320      4.34 %    3,858      171    4.43 %
Taxable securities      122,900      2,423      1.97 %    129,705      3,289    2.54 %
Tax-exempt securities      83,765      1,941      2.32 %    56,458      1,972    3.49 %
Federal funds sold and other earning assets      308,843      1,509      0.49 %    110,380      2,646    2.40 %
Total interest-earning assets      2,812,480      118,185      4.20 %    2,137,364      108,909    5.10 %
Noninterest-earning assets      250,955                  201,976            
Total assets   $  3,063,435               $  2,339,340            
                                     
Liabilities and Stockholders’ Equity:                                    
Interest-bearing demand deposits   $  481,050      1,013      0.21 % $  333,100      1,883    0.57 %
Money market and savings deposits      788,006      3,482      0.44 %    651,855      7,827    1.20 %
Time deposits      641,647      9,102      1.42 %    635,451      12,205    1.92 %
Total interest-bearing deposits      1,910,703      13,597      0.71 %    1,620,406      21,915    1.35 %
Borrowings3      177,204      816      0.46 %    21,526      319    1.48 %
Subordinated debt      39,301      2,334      5.94 %    39,216      2,341    5.97 %
Total interest-bearing liabilities      2,127,208      16,747      0.79 %    1,681,148      24,575    1.46 %
Noninterest-bearing deposits      571,282                  343,611            
Other liabilities      23,775                  15,852            
Total liabilities      2,722,265                  2,040,611            
Shareholders’ equity      341,170                  298,729            
Total liabilities and shareholders’ equity   $  3,063,435               $  2,339,340            
                                     
Net interest income, taxable equivalent         $  101,438               $  84,334      
Interest rate spread                  3.41 %              3.64 %
Tax equivalent net interest margin                  3.61 %              3.95 %
                                     
Percentage of average interest-earning assets to average interest-bearing liabilities                  132.21 %              127.14 %
Percentage of average equity to average assets                  11.14 %              12.77 %

 

1 Taxable equivalent

2 Includes average balance of $201,470 in PPP loans for the twelve months ended December 31, 2020.

3 Includes average balance of $91,190 in PPPLF funding for the twelve months ended December 31, 2020.

 

 

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information – (unaudited)

(dollars in thousands)

 

                                 
    As of and for The Three Months Ended  
    Dec   Sep   Jun   Mar   Dec  
    2021   2021   2021   2021   2020  
Composition of Loans and Leases:                                
Commercial real estate:                                
owner occupied   $  590,064   $  560,671   $  492,750   $  477,293   $  463,771  
non-owner occupied      794,092      752,576      669,741      593,348      549,205  
Commercial real estate, total      1,384,156      1,313,247      1,162,491      1,070,641      1,012,976  
Commercial & industrial      488,024      469,739      496,114      686,010      634,446  
Construction & land development      278,386      326,374      300,704      285,973      278,075  
Consumer real estate      477,272      478,161      444,640      432,486      443,930  
Leases      53,708      53,396      53,038      —      —  
Consumer and other      11,851      11,746      11,331      12,019      12,816  
Total loans and leases   $  2,693,397   $  2,652,663   $  2,468,318   $  2,487,129   $  2,382,243  
                                 
Asset Quality and Additional Loan Data:                                
Nonperforming loans and leases   $  3,188   $  3,567   $  3,758   $  6,234   $  5,782  
Other real estate owned      1,780      2,415      2,499      3,946      4,619  
Other repossessed assets      90      77      199      —      —  
Total nonperforming assets   $  5,058   $  6,059   $  6,456   $  10,180   $  10,401  
Restructured loans and leases not included in nonperforming loans and leases   $  224   $  212   $  219   $  250   $  257  
Net charge-offs to average loans and leases (annualized)      0.05 %    0.03 %    0.01 %    0.01 %    0.08 %
Allowance for loan and leases losses to loans and leases      0.72 %    0.73 %    0.74 %    0.74 %    0.77 %
Nonperforming loans and leases to total loans and leases, gross      0.12 %    0.13 %    0.15 %    0.25 %    0.24 %
Nonperforming assets to total assets      0.11 %    0.14 %    0.18 %    0.29 %    0.31 %
Acquired loan and lease fair value discount balance   $  15,483   $  13,001   $  12,982   $  12,951   $  14,467  
Accretion income on acquired loans and leases      457      1,760      761      1,636      768  
PPP net fees deferred balance      2,038      3,783      6,651      7,351      4,190  
PPP net fees recognized      1,725      2,873      2,132      2,398      2,157  
                                 
Capital Ratios:                                
Equity to Assets      9.31 %    9.69 %    10.22 %    10.23 %    10.81 %
Tangible common equity to tangible assets (Non-GAAP)1      7.18 %    7.47 %    7.93 %    8.00 %    8.41 %
                                 
SmartFinancial, Inc.2                                
Tier 1 leverage      7.45 %    8.36 %    8.10 %    8.55 %    8.69 %
Common equity Tier 1      10.23 %    10.85 %    10.63 %    11.29 %    11.61 %
Tier 1 capital      10.23 %    10.85 %    10.63 %    11.29 %    11.61 %
Total capital      12.16 %    12.92 %    12.80 %    13.62 %    14.07 %
                                 
SmartBank     Estimated3                          
Tier 1 leverage      8.23 %    9.20 %    8.75 %    9.33 %    9.58 %
Common equity Tier 1      11.58 %    11.94 %    11.50 %    12.31 %    12.79 %
Tier 1 capital      11.58 %    11.94 %    11.50 %    12.31 %    12.79 %
Total capital      12.21 %    12.59 %    12.19 %    13.05 %    13.57 %

 

1Total common equity less intangibles divided by total assets less intangibles.  See reconciliation of Non-GAAP measures.

2All periods presented are estimated.

3 Current period capital ratios are estimated as of the date of this earnings release.

 

 

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information – (unaudited)

(dollars in thousands except share and per share data)

 

                                             
  As of and for The     As of and for The  
  Three Months Ended     Year Ended  
  Dec   Sep   Jun   Mar   Dec     Dec   Dec  
  2021   2021   2021   2021   2020     2021   2020  
Selected Performance Ratios (Annualized):                                            
Return on average assets    0.59 %    0.97 %    0.98 %    1.18 %    1.11 %      0.91 %    0.79 %
Return on average shareholders’ equity    6.19 %    9.70 %    9.53 %    10.96 %    10.15 %      8.97 %    7.13 %
Return on average tangible common equity¹    8.18 %    12.84 %    12.54 %    14.41 %    13.43 %      11.84 %    9.50 %
Noninterest income / average assets    0.60 %    0.64 %    0.58 %    0.69 %    0.61 %      0.62 %    0.50 %
Noninterest expense / average assets    2.47 %    2.35 %    2.33 %    2.35 %    2.46 %      2.38 %    2.50 %
Efficiency ratio    75.89 %    63.53 %    64.91 %    60.92 %    63.38 %      66.54 %    65.97 %
                                             
Operating Selected Performance Ratios (Annualized):                                            
Operating return on average assets1    0.77 %    1.00 %    1.01 %    1.19 %    1.14 %      0.98 %    0.89 %
Operating PTPP return on average assets1    1.03 %    1.39 %    1.30 %    1.52 %    1.45 %      1.29 %    1.43 %
Operating return on average shareholders’ equity1    8.09 %    10.01 %    9.83 %    11.05 %    10.34 %      9.67 %    8.02 %
Operating return on average tangible common equity1    10.70 %    13.26 %    12.93 %    14.53 %    13.69 %      12.77 %    10.67 %
Operating efficiency ratio1    68.07 %    62.09 %    63.46 %    60.32 %    60.86 %      63.59 %    61.75 %
Operating noninterest income / average assets1    0.60 %    0.63 %    0.58 %    0.69 %    0.56 %      0.62 %    0.49 %
Operating noninterest expense / average assets1    2.23 %    2.30 %    2.29 %    2.34 %    2.37 %      2.28 %    2.36 %
                                             
Selected Interest Rates and Yields:                                            
Yield on loans and leases    4.53 %    4.95 %    4.52 %    4.67 %    4.72 %      4.67 %    4.89 %
Yield on earning assets, FTE    3.20 %    3.67 %    3.65 %    3.88 %    4.01 %      3.57 %    4.20 %
Cost of interest-bearing deposits    0.29 %    0.34 %    0.39 %    0.44 %    0.50 %      0.36 %    0.71 %
Cost of total deposits    0.22 %    0.25 %    0.29 %    0.33 %    0.38 %      0.27 %    0.55 %
Cost of interest-bearing liabilities    0.39 %    0.44 %    0.49 %    0.54 %    0.60 %      0.46 %    0.79 %
Net interest margin, FTE    2.92 %    3.35 %    3.29 %    3.48 %    3.57 %      3.24 %    3.61 %
                                             
Per Common Share:                                            
Net income, basic $  0.40   $  0.62   $  0.59   $  0.65   $  0.60     $  2.23   $  1.63  
Net income, diluted    0.40      0.61      0.58      0.65      0.59        2.22      1.62  
Operating earnings, basic¹    0.52      0.64      0.60      0.65      0.61        2.41      1.83  
Operating earnings, diluted¹    0.52      0.63      0.60      0.65      0.61        2.39      1.82  
Book value    25.56      25.28      24.71      24.10      23.64        25.56      23.64  
Tangible book value¹    19.26      19.03      18.69      18.39      17.92        19.26      17.92  
Common shares outstanding    16,802,990      16,801,447      15,109,736      15,104,536      15,107,214        16,802,990      15,107,214  

 

¹See reconciliation of Non-GAAP measures

 

 

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information – (unaudited)

(dollars in thousands)

NON-GAAP RECONCILIATIONS

                                               
    Three Months Ended     Year Ended  
    Dec   Sep   Jun   Mar   Dec     Dec   Dec  
    2021   2021   2021   2020   2020     2021   2020  
Operating Earnings:                                              
Net income (GAAP)   $  6,655   $  9,600   $  8,778   $  9,756   $  9,030     $  34,790   $  24,332  
Noninterest income:                                              
Securities gains (losses), net      —      (45)      —      —      —        (45)      (6)  
ADECA termination proceeds      —      —      —      —      (465)        —      (465)  
Noninterest expenses:                                              
Merger related and restructuring expenses      2,762      464      372      103      702        3,701      4,565  
Income taxes:                                              
Income tax effect of adjustments      (713)      (108)      (96)      (27)      (62)        (944)      (1,071)  
Operating earnings (Non-GAAP)   $  8,704   $  9,911   $  9,054   $  9,832   $  9,205     $  37,502   $  27,355  
Operating earnings per common share (Non-GAAP):                                              
Basic   $  0.52   $  0.64   $  0.60   $  0.65   $  0.61     $  2.41   $  1.83  
Diluted      0.52      0.63      0.60      0.65      0.61        2.39      1.82  
                                               
Operating Noninterest Income:                                              
Noninterest income (GAAP)   $  6,806   $  6,309   $  5,143   $  5,691   $  4,976     $  23,949   $  15,426  
Securities gains (losses), net      —      (45)      —      —      —        (45)      (6)  
ADECA termination proceeds      —      —      —      —      (465)        —      (465)  
Operating noninterest income (Non-GAAP)   $  6,806   $  6,264   $  5,143   $  5,691   $  4,511     $  23,904   $  14,955  
Operating noninterest income (Non-GAAP)/average assets1      0.60 %    0.63 %    0.58 %    0.69 %    0.56 %      0.62 %    0.49 %
                                               
Operating Noninterest Expense:                                              
Noninterest expense (GAAP)   $  27,823   $  23,309   $  20,797   $  19,464   $  19,953     $  91,391   $  76,719  
Merger related and restructuring expenses      (2,762)      (464)      (372)      (103)      (702)        (3,701)      (4,565)  
Operating noninterest expense (Non-GAAP)   $  25,061   $  22,845   $  20,425   $  19,361   $  19,251     $  87,690   $  72,154  
Operating noninterest expense (Non-GAAP)/average assets2      2.23 %    2.30 %    2.29 %    2.34 %    2.37 %      2.28 %    2.36 %
                                               
Operating Pre-tax Pre-provision (“PTPP”) Earnings:                                              
Net interest income (GAAP)   $  29,855   $  30,382   $  26,897   $  26,260   $  26,506     $  113,394   $  100,866  
Operating noninterest income      6,806      6,264      5,143      5,691      4,511        23,904      14,955  
Operating noninterest expense      (25,061)      (22,845)      (20,425)      (19,361)      (19,251)        (87,690)      (72,154)  
Operating PTPP earnings (Non-GAAP)   $  11,600   $  13,801   $  11,615   $  12,590   $  11,766     $  49,608   $  43,667  
                                               
Non-GAAP Return Ratios:                                              
Operating return on average assets (Non-GAAP)3      0.77 %    1.00 %    1.01 %    1.19 %    1.14 %      0.98 %    0.89 %
Operating PTPP return on average assets (Non-GAAP)4      1.03 %    1.39 %    1.30 %    1.52 %    1.45 %      1.29 %    1.43 %
Return on average tangible common equity (Non-GAAP)5      8.18 %    12.84 %    12.54 %    14.41 %    13.43 %      11.84 %    9.50 %
Operating return on average shareholders’ equity (Non-GAAP)6      8.09 %    10.01 %    9.83 %    11.05 %    10.34 %      9.67 %    8.02 %
Operating return on average tangible common equity (Non-GAAP)7      10.70 %    13.26 %    12.93 %    14.53 %    13.69 %      12.77 %    10.67 %
                                               
Operating Efficiency Ratio:                                              
Efficiency ratio (GAAP)      75.89 %    63.53 %    64.91 %    60.92 %    63.38 %      66.54 %    65.97 %
Adjustment for taxable equivalent yields      (0.32) %    (0.25) %    (0.30) %    (0.28) %    (0.30) %      (0.29) %    (0.33) %
Adjustment for securities gains (losses)      — %    (0.08) %    — %    — %    — %      (0.02) %    (0.01) %
Adjustment for merger related income and costs      (7.50) %    (1.11) %    (1.15) %    (0.32) %    (2.22) %      (2.64) %    (3.88) %
Operating efficiency ratio (Non-GAAP)      68.07 %    62.09 %    63.46 %    60.32 %    60.86 %      63.59 %    61.75 %

 

1Operating noninterest income (Non-GAAP) is annualized and divided by average assets.

2Operating noninterest expense (Non-GAAP) is annualized and divided by average assets.

3Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets.

4Operating PTPP return on average assets (Non-GAAP) is the annualized operating PTPP earnings (Non-GAAP) divided by average assets.

5Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP).

6Operating return on average shareholders’ equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average equity.

7Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP).

 

 

SmartFinancial, Inc. and Subsidiary

Condensed Consolidated Financial Information – (unaudited)

(dollars in thousands)

NON-GAAP RECONCILIATIONS

                                           
    Three Months Ended   Year Ended
    Dec   Sep   Jun   Mar   Dec   Dec   Dec
    2021   2021   2021   2020   2020   2021   2020
Tangible Common Equity:                                          
Shareholders’ equity (GAAP)   $  429,430   $  424,720   $  373,393   $  364,058   $  357,168   $  429,430   $  357,168
Less goodwill and other intangible assets      105,852      104,930      90,966      86,350      86,471      105,852      86,471
Tangible common equity (Non-GAAP)   $  323,578   $  319,790   $  282,427   $  277,708   $  270,697   $  323,578   $  270,697
                                           
Average Tangible Common Equity:                                          
Average shareholders’ equity (GAAP)   $  426,808   $  392,798   $  369,325   $  360,919   $  354,026   $  387,688   $  341,170
Less average goodwill and other intangible assets      104,193      96,250      88,551      86,424      86,561      93,910      84,913
Average tangible common equity (Non-GAAP)   $  322,615   $  296,548   $  280,774   $  274,495   $  267,465   $  293,778   $  256,257
                                           
Tangible Book Value per Common Share:                                          
Book value per common share (GAAP)   $  25.56   $  25.28   $  24.71   $  24.10   $  23.64   $  25.56   $  23.64
Adjustment due to goodwill and other intangible assets      (6.30)      (6.25)      (6.02)      (5.71)      (5.72)      (6.30)      (5.72)
Tangible book value per common share (Non-GAAP)1   $  19.26   $  19.03   $  18.69   $  18.39   $  17.92   $  19.26   $  17.92
                                           
Tangible Common Equity to Tangible Assets:                                          
Total Assets   $  4,611,579   $  4,384,031   $  3,654,356   $  3,557,203   $  3,304,949   $  4,611,579   $  3,304,949
Less goodwill and other intangibles      105,852      104,930      90,966      86,350      86,471      105,852      86,471
Tangible Assets (Non-GAAP):   $  4,505,727   $  4,279,101   $  3,563,390   $  3,470,853   $  3,218,478   $  4,505,727   $  3,218,478
Tangible common equity to tangible assets (Non-GAAP)     7.18%     7.47%     7.93%     8.00%     8.41%     7.18%     8.41%

 

 

 

1Tangible book value per share is computed by dividing total stockholder’s equity, less goodwill and other intangible assets by common shares outstanding.

[1] Non-GAAP

[2] Metropolitan Statistical Area (“MSA”); Assets Under Management (“AUM”)