Powerpack

Unlock full stockrow access for only $9.90/month and boost yourself as an investor.

  • Full quarterly history

    Every quarter and TTM period we hold, not just the last 12.

  • Analyst estimates

    Three years of forward estimates and dividend forecasts.

  • Unlimited screener

    All results, unlimited saved screens, email when a screen changes.

  • Unlimited Excel

    Full workbooks and screener exports.

  • Unlimited follows

See Powerpack
Screener Weekly Summary Pricing

SmartFinancial, Inc. SMBK

Financial  —  Banks Regional
50.32 0.02 0.04% as of 25 Sep
Market cap
$860.1M
P/E
14.7×
Dividend Champion (5y) Revenue Champion (10y) Insider Buys (last 12m)
Growth Flags show if company had growth for consecutive years,
Insider Buys alert about insiders buying in the last 12 month
Overview Business Profile Financial Analysis Income Statement Balance Sheet Cash Flow Metrics & Ratios 10-Q 10-K

SmartFinancial, Inc. (SMBK) Business Profile

Updated before January 2025

Company Overview

SmartFinancial, Inc. (SMBK) is a publicly traded financial services company headquartered in Knoxville, Tennessee. Established in 2007, the company has grown significantly through strategic acquisitions and organic growth. SMBK operates as the parent company of SmartBank, a regional bank that provides a wide range of financial services to individuals, businesses, and institutions. The company is led by Billy Carroll, who serves as the President and Chief Executive Officer, and Rhett Jordan, the Chief Financial Officer. Under their leadership, SMBK has focused on delivering exceptional customer service, innovative financial solutions, and sustainable growth.

Core Business Segments

SmartFinancial, Inc. operates primarily through its subsidiary, SmartBank, which offers a comprehensive suite of financial products and services. These are categorized into the following core business segments:

Retail Banking

  • Checking and Savings Accounts: SMBK provides a variety of personal and business checking and savings accounts tailored to meet diverse customer needs.
  • Consumer Loans: The company offers personal loans, auto loans, and home equity lines of credit to individual customers.

Commercial Banking

  • Business Loans: SMBK specializes in providing commercial loans, including lines of credit, term loans, and equipment financing, to small and medium-sized enterprises (SMEs).
  • Treasury Management Services: These services include cash management, payroll processing, and merchant services to help businesses optimize their financial operations.

Mortgage Banking

  • Residential Mortgages: SMBK offers fixed-rate and adjustable-rate mortgage products to help customers purchase or refinance homes.
  • Construction Loans: The company provides financing solutions for residential and commercial construction projects.

Wealth Management

  • Investment Advisory Services: SMBK offers personalized investment strategies and financial planning services.
  • Trust and Estate Planning: The company assists clients in managing their wealth and planning for future generations.

Business Model

SmartFinancial, Inc. operates on a relationship-driven business model that emphasizes customer-centric solutions. The company integrates its products and services to provide a seamless banking experience. Revenue is primarily generated through:

  • Net Interest Income: The difference between interest earned on loans and interest paid on deposits.
  • Non-Interest Income: Fees from services such as wealth management, treasury management, and mortgage origination.
  • Loan Origination: SMBK earns fees and interest from its lending activities.

The company leverages technology to enhance operational efficiency and improve customer engagement. Its digital banking platform enables customers to access services conveniently, contributing to customer retention and acquisition.

Strategic Direction

SmartFinancial, Inc. is focused on sustainable growth and expanding its market presence. Key strategic initiatives include:

  • Geographic Expansion: The company aims to enter new markets in the Southeastern United States through acquisitions and branch openings.
  • Digital Transformation: SMBK is investing in advanced technologies to enhance its digital banking capabilities and improve customer experience.
  • Product Diversification: The company plans to introduce new financial products and services, such as fintech solutions and ESG-focused investment options.
  • Sustainability Goals: SMBK is committed to environmental, social, and governance (ESG) principles, aiming to reduce its carbon footprint and support community development initiatives.

Competitive Landscape

SmartFinancial, Inc. operates in a highly competitive industry. Key competitors include:

  • Regional Banks: Companies like Pinnacle Financial Partners and First Horizon Bank compete with SMBK in the Southeastern U.S. market.
  • National Banks: Larger institutions such as Bank of America and Wells Fargo offer similar products and services on a broader scale.
  • Fintech Companies: Emerging fintech firms pose a challenge by offering innovative digital banking solutions.

SMBK differentiates itself through personalized customer service, local market expertise, and a strong community focus.

Risk Factors

SmartFinancial, Inc. faces several risks that could impact its operations and financial performance:

  • Economic Conditions: Changes in interest rates, inflation, and economic downturns can affect loan demand and credit quality.
  • Regulatory Compliance: The company must adhere to stringent banking regulations, which can increase operational costs.
  • Competition: Intense competition from regional and national banks, as well as fintech companies, may pressure margins.
  • Cybersecurity Threats: As a financial institution, SMBK is vulnerable to cyberattacks and data breaches.
  • Supply Chain Disruptions: Although less relevant to banking, disruptions in technology supply chains could impact digital banking services.

Recent Developments

SmartFinancial, Inc. has recently undertaken several initiatives to strengthen its market position:

  • Acquisitions: The company completed the acquisition of a regional bank to expand its footprint in the Southeastern U.S.
  • Digital Banking Enhancements: SMBK launched a new mobile banking app with advanced features such as biometric authentication and real-time transaction alerts.
  • Community Engagement: The company increased its investment in community development programs, focusing on affordable housing and small business support.

Global developments, such as rising interest rates and economic uncertainty, have influenced SMBK’s strategic decisions, particularly in loan pricing and risk management.

Investment Considerations

Strengths

  • Strong Market Presence: SMBK has a solid foothold in the Southeastern U.S. market.
  • Diverse Revenue Streams: The company generates income from multiple sources, reducing dependence on any single segment.
  • Customer-Centric Approach: SMBK’s focus on personalized service enhances customer loyalty.

Risks

  • Economic Sensitivity: The company’s performance is closely tied to economic conditions.
  • Regulatory Risks: Compliance with banking regulations can be costly and complex.
  • Competitive Pressure: Intense competition may impact profitability.

Conclusion

SmartFinancial, Inc. is a well-established financial services company with a strong regional presence and a commitment to customer service. The company’s strategic focus on geographic expansion, digital transformation, and sustainability positions it for long-term growth. While it faces challenges such as economic sensitivity and regulatory compliance, SMBK’s diversified revenue streams and innovative approach make it a compelling choice for investors seeking exposure to the financial sector.