A Snacky look on SmartFinancial, Inc. (NASDAQ: SMBK)

On 03 Feb 2020, SmartFinancial, Inc. stock identified change of 17.89% away from 52-week low price and recently located move of -9.34% off 52-week high price. It has market worth of $309.94M and dividend yield of 0.92%. SMBK stock has been recorded -5.37% away from 50 day moving average and 1.07% away from 200 day moving average. Moving closer, we can see that shares have been trading -4.83% off 20-day moving average.

SmartFinancial, Inc. (SMBK) recently reported net income of $6.7M, or $0.48 per diluted ordinary share, for the fourth quarter of 2019, contrast to net income of $6.0M, or $0.42 per diluted ordinary share, for the third quarter of 2019.  Net operating earnings (Non-GAAP), which excludes securities gains, merger related and restructuring expenses and non-operating items, totaled $6.5M, or $0.46 per diluted ordinary share, in the fourth quarter of 2019, contrast to $6.0M, or $0.43 per diluted ordinary share, in the third quarter of 2019.

For the year ending December 31, 2019, net income is $26.5M, or $1.89 per diluted ordinary share, contrast to net income of $18.1M, or $1.45 per diluted ordinary share, for the year ending December 31, 2018.  Net operating earnings (Non-GAAP), which excludes securities gains, merger related and restructuring expenses and non-operating items, totaled $23.6M, or $1.68 per diluted ordinary share, for the year ending December 31, 2019 contrast to $19.5M, or $1.56 per diluted ordinary share, for the year ending December 31, 2018.

Net Interest Income and Net Interest Margin

Net interest income was $21.1M for each of the fourth and third quarters of 2019 and $21.4M for the fourth quarter of 2018. The tax equivalent net interest margin was 3.84% for the fourth quarter of 2019 contrast to 3.91% for the third quarter of 2019.  The tax equivalent average yield on interest-earning assets was 4.92% for the fourth quarter of 2019, a decrease from 5.05% for the third quarter of 2019. The yield on interest-bearing liabilities reduced to 1.39% for the fourth quarter of 2019 from 1.47% for the third quarter of 2019.

The yield on average loans was 5.36% for the fourth quarter of 2019 contrast to 5.48% for the third quarter of 2019.  The decrease in yield on average loans from the third to fourth quarters of 2019 was primarily Because of the impact of three Federal rate decreases over these two quarters which effected the repricing of variable rate loans and new loan production.  During the fourth quarter of 2019, increased discount accretion was recorded on purchased loans (29 basis points in the fourth quarter of 2019 versus 26 basis points in the third quarter of 2019) with loan fees remaining stable quarter over quarter.  For the fourth quarter of 2019, the yield on average loans, not including accretion, was 5.07%, a decrease of 15 basis points from the 5.22% stated in the third quarter of 2019.  The impact of the purchased loan discount accretion on the tax equivalent net interest margin was 25 basis points for the fourth quarter of 2019 and 23 basis points for the third quarter of 2019.

The cost of average interest-bearing deposits was 1.29% for the fourth quarter of 2019 contrast to 1.37% for the third quarter of 2019.  The overall decrease of eight basis points in average interest-bearing deposits from the third to fourth quarter of 2019 was driven primarily by the three Federal rate decreases during the third and fourth quarters of 2019, creating a reduction of interest cost for all deposit classifications.

Provision for Loan Loss and Credit Quality

Provision for loan losses was $685 thousand in the fourth quarter of 2019, contrast to $724 thousand in the third quarter of 2019 and $1.3M in the fourth quarter of 2018. The allowance for loan losses was $10.2M, or 0.54% of total loans, as of December 31, 2019, contrast to $9.8M, or 0.53% of total loans, as of September 30, 2019.  The increase in allowance for loan losses to total loans was due primarily to the increase in the loan originations and, to lesser extent, the reduction of purchased loan balances.

Nonperforming loans as a percentage of total loans was 0.18% as of December 31, 2019, a raise of one basis point from the 0.17% stated in the third quarter of 2019.  Total nonperforming assets (which include nonaccrual loans, loans past due 90 days or more and still accruing, and other real estate owned) as a percentage of total assets was 0.21% as of December 31, 2019 as contrast to 0.20% as of September 30, 2019.

The Financial sector company, SmartFinancial, Inc. noticed change of 0.60% to $21.75 along volume of 19893 shares in recent session compared to an average volume of 44.73K. SMBK’s shares are at 3.33% for the quarter and driving a 12.81% return over the course of the past year and is now at -8.03% since this point in 2018. The average volatility for the week at 2.39% and for month was at 2.86%. There are 14.25M shares outstanding and 12.66M shares are floated in market.

 

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