SmartFinancial (NYSE:SMBK), the parent company of SmartBank, today reported net income of $13.7 million, or $0.81 per diluted common share, for the first quarter ended March 31, 2026.
The results represent a significant year-over-year increase compared to the $11.3 million, or $0.67 per share, reported in the first quarter of 2025, and remained consistent with the strong performance seen in the final quarter of last year.
The company’s growth was underpinned by aggressive organic lending activity.
Net organic loan and lease growth reached $155 million for the quarter, representing a 14% annualized increase.
This momentum was complemented by a steady rise in core funding, with deposits—excluding brokered accounts—growing by $95 million, or 7% on an annualized basis.
A key driver of the quarter’s profitability was the expansion of the net interest margin (NIM), which rose to 3.48% on a fully tax-equivalent basis.
On the credit front, SmartFinancial implemented a change to its allowance for credit losses (ACL) model.
This adjustment resulted in a 3-basis-point increase in the ACL-to-total-loans-and-leases ratio, which now stands at 0.97%, reflecting a conservative approach to risk management amid ongoing loan portfolio growth.
Strategically, the company continues to deepen its presence in high-growth metropolitan areas.
During the first quarter, SmartFinancial accelerated its Nashville expansion by hiring a new Director of Private Banking and Wealth Management along with additional commercial banking staff.