SMARTFINANCIAL INC. Files 2023 Annual Report on Form 10-K

TL;DR

<b>SMARTFINANCIAL INC. has submitted its 2023 10-K filing detailing its financial performance and operations for the fiscal year ending December 31, 2023.</b>

AI Summary

SMARTFINANCIAL INC. (SMBK) filed a Annual Report (10-K) with the SEC on March 15, 2024. SMARTFINANCIAL INC. filed its 2023 Form 10-K on March 15, 2024. The filing covers the fiscal year ending December 31, 2023. The company's Central Index Key is 0001038773. SMARTFINANCIAL INC. is classified under Standard Industrial Classification 6021 (National Commercial Banks). The company's business and mailing address is 5401 Kingston Pike, Suite 600, Knoxville, TN 37919.

Why It Matters

For investors and stakeholders tracking SMARTFINANCIAL INC., this filing contains several important signals. This 10-K filing provides a comprehensive overview of SMARTFINANCIAL INC.'s financial health, operational performance, and strategic positioning for the fiscal year 2023, crucial for investors and stakeholders to assess the company's progress and future outlook. As a publicly traded entity, the 10-K filing is a mandatory disclosure that offers detailed insights into the company's financial statements, risk factors, and management discussion, enabling informed investment decisions and regulatory compliance.

Risk Assessment

Risk Level: medium — SMARTFINANCIAL INC. shows moderate risk based on this filing. The company operates in the banking sector, which is subject to significant regulatory oversight and economic fluctuations, as indicated by its SIC code 6021 and the nature of a 10-K filing.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand SMARTFINANCIAL INC.'s performance and potential challenges in the upcoming fiscal year.

Key Numbers

• 20231231 — Fiscal Year End (Reporting period)
• 20240315 — Filing Date (Date of submission)
• 0001038773 — Central Index Key (Company identifier)
• 6021 — Standard Industrial Classification (Industry classification (National Commercial Banks))

Key Players & Entities

• SMARTFINANCIAL INC. (company) — Filer name
• 0001038773 (company) — Central Index Key
• 6021 (company) — Standard Industrial Classification (National Commercial Banks)
• TN (company) — State of Incorporation
• 20231231 (date) — Fiscal Year End
• 20240315 (date) — Filing Date
• 5401 KINGSTON PIKE SUITE 600 KNOXVILLE TN 37919 (company) — Business Address
• CORNERSTONE BANCSHARES INC (company) — Former Company Name

FAQ

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K filing.
• 2024-03-15: Filing Date — Date the 10-K was officially submitted to the SEC.

Key Financial Figures

• $1.00 — ch Registered Common Stock, par value $1.00 per share SMBK New York Stock Excha
• $6,500,000 — rchase price payable by Rains Agency of $6,500,000, of which $5,200,000 was paid in cash a
• $5,200,000 — by Rains Agency of $6,500,000, of which $5,200,000 was paid in cash at the closing of the
• $349 thousand — the acquisition, Rains Agency acquired $349 thousand of assets and assumed $364 thousand of
• $364 thousand — red $349 thousand of assets and assumed $364 thousand of liabilities from Sunbelt. The assets
• $4.6 million — ed to goodwill, which was approximately $4.6 million. Rains Agency subsequently changed its
• $14 million — ountain Leasing, LLC, members receiving $14 million in cash at closing, and the Company rep
• $46 million — g, and the Company repaid approximately $46 million of Fountain Leasing, LLC indebtedness.
• $2.4 million — ed to goodwill, which was approximately $2.4 million. As a result of the merger, the Company
• $54 m — Company assets increased approximately $54 million, and liabilities increased approx
• $683 thousand — and liabilities increased approximately $683 thousand. Sevier County Bancshares Merger On
• $10.17 — SCB stockholders receiving, either (i) $10.17 in cash (the "Per Share Cash Considerat
• $17.2 million — ed to goodwill, which was approximately $17.2 million. As a result of the merger, the Company
• $485 m — Company assets increased approximately $485 million, and liabilities increased approx
• $443 million — and liabilities increased approximately $443 million. 6 Table of Contents Banking Servi

Filing Documents

• smbk-20231231x10k.htm (10-K) — 7977KB
• smbk-20231231xex4d1.htm (EX-4.1) — 37KB
• smbk-20231231xex21d1.htm (EX-21.1) — 7KB
• smbk-20231231xex23d1.htm (EX-23.1) — 5KB
• smbk-20231231xex31d1.htm (EX-31.1) — 15KB
• smbk-20231231xex31d2.htm (EX-31.2) — 15KB
• smbk-20231231xex32d1.htm (EX-32.1) — 7KB
• smbk-20231231xex32d2.htm (EX-32.2) — 7KB
• smbk-20231231xex97d1.htm (EX-97.1) — 54KB
• smbk-20231231x10k004.jpg (GRAPHIC) — 6KB
• smbk-20231231x10k006.jpg (GRAPHIC) — 31KB
• smbk-20231231x10k007.gif (GRAPHIC) — 0KB
• smbk-20231231x10k008.gif (GRAPHIC) — 0KB
• smbk-20231231x10k009.gif (GRAPHIC) — 0KB
• smbk-20231231xex97d1001.jpg (GRAPHIC) — 17KB
• 0001558370-24-003429.txt (&nbsp;) — 34304KB
• smbk-20231231.xsd (EX-101.SCH) — 103KB
• smbk-20231231_cal.xml (EX-101.CAL) — 200KB
• smbk-20231231_def.xml (EX-101.DEF) — 650KB
• smbk-20231231_lab.xml (EX-101.LAB) — 1097KB
• smbk-20231231_pre.xml (EX-101.PRE) — 1000KB
• smbk-20231231x10k_htm.xml (XML) — 9372KB

BUSINESS

BUSINESS 5 ITEM 1A.

RISK FACTORS

RISK FACTORS 22 ITEM 1B. UNRESOLVED STAFF COMMENTS 35 ITEM 1C. CYBERSECURITY 35 ITEM 2.

PROPERTIES

PROPERTIES 37 ITEM 3.

LEGAL PROCEEDINGS

LEGAL PROCEEDINGS 37 ITEM 4. MINE SAFETY DISCLOSURES 37 PART II 37 ITEM 5. MARKET FOR THE REGISTRANT'S COMMON EQUITY, RELATED STOCKHOLDER MATTERS AND ISSUER PURCHASES OF EQUITY SECURITIES 37 ITEM 6. RESERVED 40 ITEM 7.

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS 40 ITEM 7A.

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK

QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK 56 ITEM 8.

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA

FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA 59 ITEM 9. CHANGES IN AND DISAGREEMENTS WITH ACCOUNTANTS ON ACCOUNTING AND FINANCIAL DISCLOSURE 126 ITEM 9A.

CONTROLS AND PROCEDURES

CONTROLS AND PROCEDURES 126 ITEM 9B. OTHER INFORMATION 127 ITEM 9C . DISCLOSURE REGARDING FOREIGN JURISDICTIONS THAT PREVENT INSPECTIONS 127 PART III 127 ITEM 10. DIRECTORS, EXECUTIVE OFFICERS AND CORPORATE GOVERNANCE 127 ITEM 11.

EXECUTIVE COMPENSATION

EXECUTIVE COMPENSATION 127 ITEM 12.

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS

SECURITY OWNERSHIP OF CERTAIN BENEFICIAL OWNERS AND MANAGEMENT AND RELATED STOCKHOLDER MATTERS 127 ITEM 13. CERTAIN RELATIONSHIPS AND RELATED TRANSACTIONS, AND DIRECTOR INDEPENDENCE 128 ITEM 14. PRINCIPAL ACCOUNTANT FEES AND SERVICES 128 PART IV 128 ITEM 15. EXHIBITS AND FINANCIAL STATEMENT SCHEDULES 128 ITEM 16. FORM 10-K SUMMARY 132

SIGNATURES

SIGNATURES 133 2 Table of Contents

FORWARD-LOOKING STATEMENTS

FORWARD-LOOKING STATEMENTS SmartFinancial, Inc. ("SmartFinancial" or the "Company") may, from time to time, make written or oral statements, including statements contained in this report and information incorporated by reference herein (including, without limitation, certain statements in "Management's Discussion and Analysis of Financial Condition and Results of Operations" in Item 7), that constitute forward-looking statements within the meaning of Section 27A of the Securities Act, as amended (the "Securities Act") and Section 21E of the Securities Exchange Act of 1934, as amended (the "Exchange Act"). These statements are based on assumptions and estimates and are not guarantees of future performance. Any statements that do not relate to historical or current facts or matters are forward-looking statements. You can identify some of the forward-looking statements by the use of forward-looking words (and their derivatives), such as "may," "will," "could," "project," "believe," "anticipate," "expect," "estimate," "continue," "potential," "plan," "forecast," and the like, the negatives of such expressions, or the use of the future tense. Statements concerning current conditions may also be forward-looking if they imply a continuation of a current condition. These forward-looking statements involve known and unknown risks, uncertainties, and other factors that may cause our actual results, levels of activity, performance, financial condition, or achievements to be materially different from any future results, levels of activity, performance, or achievements expressed or implied by such forward-looking statements. Such factors include, but are not limited to: general economic and business conditions in our local markets (particularly Tennessee), including conditions affecting employment levels, interest rates, inflation, supply chains, the threat of recession, volatile equity capital markets, property and casualty insurance costs, collateral values, customer income,

BUSINESS

ITEM 1. BUSINESS OVERVIEW SmartFinancial, Inc. ("SmartFinancial" or the "Company") was incorporated on September 19, 1983, under the laws of the State of Tennessee. SmartFinancial is a bank holding company registered under the Bank Holding Company Act of 1956, as amended. In this Report on Form 10-K, the words "SmartFinancial," "the Company," "we," "us," and "our" refer to SmartFinancial, Inc. together with SmartBank and SmartFinancial's other wholly-owned subsidiaries, except where the context requires otherwise. The Company makes our annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and amendments to those reports filed or furnished pursuant to Section 13(a) or 15(d) of the Exchange Act available free of charge on our website at www.smartbank.com as soon as reasonably practicable after we electronically file such material with the SEC. These reports are also available without charge on the SEC's website at www.sec.gov . The primary activity of SmartFinancial is the ownership and operation of SmartBank (the "Bank"). As a bank holding company, SmartFinancial intends to facilitate SmartBank's ability to provide financial services to its customers. The holding company structure also provides flexibility for expansion through the possible acquisition of other financial institutions and the provision of additional banking-related services, as well as certain non-banking services, which a traditional commercial bank may not provide under present laws. SmartBank SmartBank is a Tennessee-chartered commercial bank established in 2007 with its principal office in Pigeon Forge, Tennessee. The principal business of the Bank consists of attracting deposits from the general public and investing those funds, together with funds generated from operations and from principal and interest payments on loans, primarily in commercial loans, commercial and residential real estate loans, leases, consumer loans and residential and commercial co

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