SmartFinancial: 3 Key Takeaways for Long-Term Investors

On its third-quarter 2026 earnings webcast and conference call on Oct. 20, 2026, SmartFinancial (NYSE:SMBK) announced record operating revenue of $57.5 million. For long-term investors, the bank's results show how disciplined talent acquisition translates directly into market share gains across the Southeast. Three key takeaways from management's comments highlight the underlying drivers of this performance.

1. Double-Digit Loan and Deposit Growth Drives Organic Momentum

SmartFinancial expanded both sides of its balance sheet during the quarter. Loans grew at an annualized rate of 15%, and core deposits rose 12%. That balance kept the bank's loan-to-deposit ratio (the percentage of deposits used to fund loans) at a manageable 87%.

We again delivered excellent growth on both sides of the balance sheet, with 15% annualized organic loan growth and 12% annualized core deposit growth.
-- Billy Carroll, President and Chief Executive Officer

2. Regional Banking Disruption Creates an Aggressive Hiring Advantage

Ongoing industry consolidation across the Southeast allows the company to recruit top-tier commercial bankers from competitors. Adding revenue-producing talent fuels expansion in high-priority growth markets such as Columbus, Georgia.

Market disruption across the Southeast continues to create opportunities for us to add experienced revenue producers who fit our culture.
-- Billy Carroll, President and Chief Executive Officer

3. Relationship Banking Strategy Protects Loan Yields and Quality

Rather than chasing isolated loans, the bank focuses on capturing complete commercial relationships. Pairing new credit originations with operating accounts and core deposits keeps borrowing yields high and protects credit quality.

Our bankers remain focused on pairing quality loan growth with broader client relationships, operating accounts, and core deposits.
-- Ronald Gorczynski, Chief Financial Officer

Looking Ahead

Commercial lending activity is expanding across the Southeastern footprint and shows clear momentum.

Our pipelines remain solid. And we continue to see opportunities across our footprint.
-- Billy Carroll, President and Chief Executive Officer

Top-tier banker recruitment and broad relationship banking provide durable operational advantages. Management is focusing on deposit-pricing discipline and net interest margin stability (the spread between loan earnings and deposit costs) to navigate interest rate fluctuations. Strategy centers on building regional density.

Our outlook remains centered on the strategy that has brought us here. Getting deeper in our markets, growing share, expanding high value relationships, recruiting great bankers, and leveraging the infrastructure and capabilities we have built.
-- Billy Carroll, President and Chief Executive Officer

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