SmartFinancial, Inc. (SMBK): History, Ownership, Mission, How It Works & Makes Money

Are you defintely capturing the full picture of SmartFinancial, Inc. (SMBK), the Southeastern bank holding company that just posted $13.7 million in Q3 2025 net income? This isn't just another regional bank story; they've achieved their sixth consecutive quarter of positive operating leverage while delivering 10% annualized organic loan growth, which is a rare feat in this maket environment.

As a financially-literate decision-maker, you need to know how a community-focused model scales to total assets of $5.785 billion and why major institutional holders like BlackRock, Inc. are invested; so, let's break down their history, ownership, and precise revenue engine.

SmartFinancial, Inc. (SMBK) History

If you're looking at SmartFinancial, Inc. (SMBK), you're looking at a company that built its foundation on a disciplined acquisition strategy before pivoting to a powerful organic growth engine. It's a story of regional banking veterans who saw an opportunity in the Southeast, starting small but scaling fast. The key takeaway is that their current strength-total assets of $5.78 billion as of Q3 2025-is the direct result of a calculated, two-phase growth plan: aggressive M&A followed by a sharp focus on operational efficiency and digital banking.

Given Company's Founding Timeline

Year established

The operational subsidiary, SmartBank, was founded in 2007. The parent holding company, SmartFinancial, Inc., was formally established a few years later in 2010.

Original location

The first office opened in January 2007 in Pigeon Forge, Tennessee. Today, the corporate headquarters for SmartFinancial, Inc. is located in Knoxville, Tennessee.

Founding team members

The company was organized by a team of long-time executive bankers who wanted to create a better kind of community bank.

• Miller Welborn: Co-founder and current Chairman of the Board.
• Bill Carroll: Co-founder and current Vice Chairman of the Board.
• Billy Carroll: Co-founder and current President & CEO.

Initial capital/funding

While the precise initial capital raised in 2007 is not publicly detailed, the founders' strategy quickly secured significant assets. Here's the quick math: through a combination of organic growth and early strategic moves, the bank was able to organically grow its assets to over $325 million by 2011, just five years after opening its doors. That initial capital definitely fueled a fast start.

Given Company's Evolution Milestones

Given Company's Transformative Moments

The company's trajectory wasn't just about growth; it was about smart, disciplined decisions that shaped its financial profile. You can see this discipline in their approach to M&A and capital management.

One major transformative moment was the disciplined decision to walk away from the Entegra Financial Corp. merger in 2019. Management chose not to match a competing offer, stating it was in the best interest of shareholders, and instead received a $6.4 million termination fee. They immediately refocused that capital on executing their business plan and pursuing other, more accretive acquisitions. That's a defintely realist move.

The shift in focus around 2020 was also crucial, moving from a primary acquisition strategy to prioritizing organic growth and digital banking. This focus is paying off in 2025, as seen in the Q3 2025 results:

• Net organic loan growth of $98 million (a 10% annualized quarter-over-quarter increase).
• Deposit growth of $179 million (a 15% annualized quarter-over-quarter increase).

Most recently, the Q3 2025 strategic actions demonstrate a clear focus on capital optimization. The company issued $100 million in subordinated debt to support capital and growth, while simultaneously selling SBK Insurance for a $4.0 million pre-tax gain. They used that gain to offset a $3.9 million pre-tax loss from repositioning $85 million of securities into higher-yielding assets, a very active management of the balance sheet. This kind of move is what separates a passive bank from a trend-aware financial institution. For a deeper look at what these numbers mean for your portfolio, check out Breaking Down SmartFinancial, Inc. (SMBK) Financial Health: Key Insights for Investors.

SmartFinancial, Inc. (SMBK) Ownership Structure

SmartFinancial, Inc. (SMBK) is a publicly-traded bank holding company, and its ownership is primarily controlled by institutional investors, which hold the majority of its outstanding shares. This structure means that large asset managers and mutual funds, not individual retail investors, drive the governance and strategic direction of the company.

SmartFinancial, Inc.'s Current Status

SmartFinancial, Inc. is a publicly-traded entity, with its common stock listed on the NYSE (New York Stock Exchange) under the ticker symbol SMBK. As of late October 2025, the company commanded a market capitalization of approximately $602.28 million. This public status subjects the company to rigorous reporting requirements from the Securities and Exchange Commission (SEC), providing transparency into its financial health and operational decisions.

The company operates as the parent of SmartBank, a full-service commercial bank. For a deeper dive into the organizational purpose, you can review the Mission Statement, Vision, & Core Values of SmartFinancial, Inc. (SMBK).

SmartFinancial, Inc.'s Ownership Breakdown

The ownership breakdown illustrates a clear institutional dominance, a common feature for mid-cap regional banks. Over half of the company is held by professional money managers, which defintely influences the focus on consistent earnings and dividend policy.

Here's the quick math: Institutional holders, including BlackRock, Inc. which owns approximately 7.41% of the company, hold the most significant voting power. This concentration of ownership means that the top 25 shareholders alone own over 54% of the company's stock.

SmartFinancial, Inc.'s Leadership

The company is steered by a seasoned leadership team with an average management tenure of 5.8 years, providing stability and deep industry knowledge. The board of directors, elected in May 2025, provides oversight until the 2026 annual meeting.

• William Y. ('Billy') Carroll, Jr.: President & Chief Executive Officer (CEO). He has served in this role since August 2015.
• Ron Gorczynski: Executive Vice President, Chief Financial Officer (CFO). He plays a key role in budgeting and strategic vision.
• Rhett Jordan: Executive Vice President, Chief Credit Officer. He was recently noted in November 2025 SEC filings.
• Wesley M. ('Miller') Welborn: Chairman of the Board. He was re-elected as a director in May 2025.
• Jarrod Trumpp: Executive Vice President, Chief Risk Officer. He oversees the enterprise risk management strategy.

The CEO, Billy Carroll, owns approximately 0.99% of the company's shares, valued at about $6.05 million, which helps ensure his decisions are aligned with shareholder returns.

SmartFinancial, Inc. (SMBK) Mission and Values

SmartFinancial, Inc. (SMBK) operates with a dual focus: delivering innovative, customer-centric financial solutions through its subsidiary SmartBank, and maintaining a disciplined approach to capital that directly drives shareholder value. This commitment extends beyond profit, emphasizing integrity, community involvement, and a high-touch service model.

You need to know what a bank stands for before you invest a dime; it tells you how they manage risk and where they spend their capital. For a deeper dive on performance, you can check out Breaking Down SmartFinancial, Inc. (SMBK) Financial Health: Key Insights for Investors.

Given Company's Core Purpose

The company's cultural DNA is built on a community banking model, but scaled with a disciplined, acquisition-focused strategy. This is why their core values-integrity, customer focus, and community involvement-are so critical to their operating model.

Here's the quick math: solid asset quality, like the non-performing assets to total assets ratio of just 0.19% in Q2 2025, defintely shows their diligent credit underwriting is working.

Official mission statement

While SmartFinancial, Inc. does not publish a single, formal mission statement in all public filings, its core mission is synthesized from its operational philosophy, which guides its subsidiary, SmartBank, to deliver exceptional results and create value for all stakeholders.

• Provide the highest level of value to clients by delivering innovative financial solutions.
• Create 'WOW' experiences through exceptional client service and wholistic relationship management.
• Maintain a strong commitment to customers, employees, and the communities served across Tennessee, Alabama, and Florida.

Vision statement

The company's vision is a clear roadmap of strategic expansion and capital efficiency, aiming to solidify its position as a leading regional financial holding company. They are trend-aware realists, mapping near-term risks to long-term growth.

• Grow shareholder value through a disciplined approach to capital deployment, including strategic acquisitions and organic market growth.
• Focus on sustainable growth by expanding market presence in the high-growth Southeastern United States.
• Leverage the platform by recruiting the best and brightest professionals to ensure exceptional client service and lending discipline.

Given Company slogan/tagline

SmartFinancial, Inc. does not utilize a widely promoted corporate tagline, but the internal operational philosophy of its subsidiary, SmartBank, serves as the guiding principle for its people and service delivery.

• The SmartBank Way. This phrase encapsulates the company's core principles: diligent credit underwriting, wholistic relationship management, and hiring top talent.
• The operational goal is to consistently Create "WOW" Experiences for clients.

For example, delivering Q3 2025 net income of $13.7 million is a direct result of executing 'The SmartBank Way' and focusing on that disciplined growth.

SmartFinancial, Inc. (SMBK) How It Works

SmartFinancial, Inc. is a financial holding company that primarily generates revenue by taking deposits and lending those funds out, operating through its community bank subsidiary, SmartBank, and its equipment finance division, Fountain Equipment Finance. This model focuses on a high-touch, relationship-driven approach to serve both commercial clients and consumers across the high-growth markets of the Southeast US.

SmartFinancial, Inc.'s Product/Service Portfolio

The company's offerings are structured to capture both interest income from loans and non-interest income from services like treasury management and wealth advice. This diversified portfolio allows them to serve a full spectrum of clients, from a small business owner needing a commercial loan to an individual seeking wealth management.

SmartFinancial, Inc.'s Operational Framework

SmartFinancial's operational process is built on a regional, decentralized hub-and-spoke model, which lets them maintain local decision-making while benefiting from centralized capital and compliance. They use their 42 branches across Tennessee, Alabama, and Florida as relationship centers, not just transaction points. The whole operation is designed to move quickly for clients.

• Core Banking (SmartBank): This subsidiary handles the primary function of gathering low-cost deposits-a critical funding source-and deploying that capital into loans. In the third quarter of 2025, they saw annualized deposit growth of 15%, a clear sign that their deposit strategies are working.
• Specialized Lending (Fountain): This unit focuses on equipment finance, which typically carries a higher interest rate (yield) than traditional commercial real estate loans, boosting the overall loan portfolio's profitability.
• Efficiency and Scale: Management is focused on operating leverage, meaning revenue grows faster than expenses. Their Operating Efficiency Ratio improved to 64% in Q3 2025, down from 66% the prior quarter, which tells you they are getting more revenue for every dollar of expense.
• Balance Sheet Health: The company continues to grow its balance sheet, with total assets reaching $5.49 billion in Q2 2025, supporting a Q3 2025 net income of $13.7 million.

SmartFinancial, Inc.'s Strategic Advantages

The company's competitive edge isn't a single 'secret weapon,' but a combination of disciplined growth and superior credit quality, which is defintely rare in a high-growth regional bank. You can see their strong fundamentals in their tangible book value and low risk profile.

• Superior Credit Quality: Their nonperforming assets (NPAs) were exceptionally low at 0.22% of total assets in Q3 2025. This diligent credit underwriting is a foundational principle that protects shareholder capital.
• Organic Growth Engine: They are successfully moving into the 'leveraging phase of growth,' generating strong organic loan growth of 10% annualized in Q3 2025. This shows they are gaining market share without relying solely on expensive acquisitions.
• Value-Accretive M&A: SmartFinancial has a track record of strategic acquisitions (nine to date) that expand their footprint into attractive, high-growth metropolitan areas like those in Florida and Alabama, rather than just buying for scale.
• Tangible Book Value Growth: The tangible book value per common share rose to $26.00 in Q3 2025, representing a 26% quarter-over-quarter annualized increase. This is a clear indicator of value creation for shareholders.

For a deeper dive into who is betting on this strategy, you should look at Exploring SmartFinancial, Inc. (SMBK) Investor Profile: Who's Buying and Why?

SmartFinancial, Inc. (SMBK) How It Makes Money

SmartFinancial, Inc. primarily makes money by operating as a traditional community bank: they take in deposits from customers and then lend that money out for a higher rate, creating a spread known as net interest income. The rest of its revenue comes from fees for services like mortgage origination, wealth management, and interchange fees on debit cards.

SmartFinancial's Revenue Breakdown

Looking at the third quarter of 2025, which is the most recent data we have, the vast majority of SmartFinancial's operating revenue-over 80%-comes directly from its core lending business. This is typical for a regional bank. Total operating revenue for Q3 2025 was approximately $50.8 million.

Business Economics

The financial engine of SmartFinancial is the Net Interest Margin (NIM), which is the difference between the interest earned on assets (mostly loans) and the interest paid on liabilities (mostly deposits). For Q3 2025, their tax-equivalent NIM was 3.25%, a solid figure that shows their lending yields are outpacing their funding costs.

The decrease in Noninterest Income is a key near-term factor you need to understand. In the third quarter of 2025, SmartFinancial sold its insurance arm, SBK Insurance, which generated a $4.0 million pre-tax gain but will remove a recurring revenue stream going forward. The management is guiding for noninterest income to be around $7 million for Q4 2025, reflecting this change. This is a strategic pivot to focus purely on core banking, so expect the NII percentage to climb even higher.

• Loan Yields: New loan originations in Q2 2025 were averaging yields of roughly 7.11%, which is strong and helps drive the NIM expansion.
• Deposit Costs: The cost of total deposits was managed at 2.39% in Q2 2025, which is a key lever in maintaining a healthy NIM.
• Growth Strategy: The bank is in a leveraging phase of growth, focusing on adding revenue-producing team members in areas like Commercial and Private Banking to sustain organic loan growth.

This is a business built on spread, and they are executing well on the lending side. You can dive deeper into the shareholder base and strategy by Exploring SmartFinancial, Inc. (SMBK) Investor Profile: Who's Buying and Why?

SmartFinancial's Financial Performance

The company is showing a clear trend of positive operating leverage, meaning their revenue growth is consistently outpacing their expense growth. This is defintely the mark of a well-run bank.

• Earnings Per Share (EPS): Diluted EPS for Q3 2025 was $0.81, a substantial increase from $0.54 in the same quarter a year prior. Full-year 2025 EPS is estimated to be around $2.99 per share.
• Tangible Book Value (TBV): TBV per common share, a critical metric for banks, rose to $26.00 in Q3 2025, reflecting a 26% annualized quarter-over-quarter increase. This shows real value accretion for shareholders.
• Asset Quality: Credit quality remains exceptionally solid, with nonperforming assets (NPAs) to total assets at a low 0.19% as of Q2 2025. This low figure indicates a prudent underwriting process.
• Balance Sheet Growth: Total assets reached $5.78 billion and total deposits reached $5.05 billion as of Q3 2025, demonstrating strong balance sheet expansion.

Here's the quick math on profitability: Net income for the first nine months of 2025 was about $36.6 million, up significantly from $26.5 million in the same period last year. What this estimate hides is the one-time gain from the insurance sale, but the core lending income is clearly driving the overall improvement.

SmartFinancial, Inc. (SMBK) Market Position & Future Outlook

SmartFinancial, Inc. is positioned as a high-growth regional bank in the Southeast, focused on organic expansion and strategic acquisitions, reflected by its Q3 2025 total assets of $5.785 billion and strong core deposit growth. The company is actively executing a strategy to improve efficiency and expand its net interest margin (NIM), aiming for a competitive advantage through high-touch service in desirable metropolitan markets.

Competitive Landscape

SmartFinancial operates in the highly fragmented but competitive Southeast regional banking market, where its focus on local, relationship-based banking allows it to compete effectively against much larger institutions, even with a smaller overall market footprint.

Opportunities & Challenges

The company's near-term trajectory is driven by its ability to convert strong loan pipelines into higher profitability while managing funding costs in a dynamic rate environment. Here's the quick math on the outlook.

Industry Position

As a regional bank with a $0.60 billion market capitalization, SmartFinancial, Inc. is a smaller, growth-oriented player, but it is defintely a significant competitor within its specific local markets in Tennessee, Alabama, and Florida.

The company's strategy hinges on a disciplined approach to credit underwriting and a focus on high-growth metropolitan areas, enabling it to consistently deliver strong tangible book value per common share growth, which rose to $26.00 in Q3 2025.

• Maintain a robust capital position, with total consolidated risk-based capital rising to 13.3% in Q3 2025.
• Prioritize organic growth over large, transformative mergers, focusing on relationship management and talent acquisition.
• Credit quality remains solid, with nonperforming assets at only 0.19% of total assets in Q2 2025.

To understand the core financial strength behind this growth, you should review Breaking Down SmartFinancial, Inc. (SMBK) Financial Health: Key Insights for Investors.