SmartFinancial Q3 net income rises, driven by organic loan growth

Overview

• U.S. regional bank's Q3 net income rises to $18.6 mln, with EPS at $1.10

• Company posted strong organic loan and deposit growth in the quarter

• Company recognized $2.6 mln tax benefit from energy tax credits

Outlook

• Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers

• LOAN GROWTH - Co reported $174 mln in net organic loan and lease growth, representing a 15% annualized increase

• DEPOSIT GROWTH - Core deposits grew $163 mln, or 12% annualized quarter-over-quarter

• HIGHER FUNDING COSTS - Net interest margin declined sequentially due to higher funding costs, which offset improved earning-asset yields

Company press release:

Key Details

Analyst Coverage

• The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 2 "strong buy" or "buy", 4 "hold" and no "sell" or "strong sell"

• The average consensus recommendation for the banks peer group is "buy"

• Wall Street's median 12-month price target for SmartFinancial Inc is $51.88, about 2.7% above its October 19 closing price of $50.51

• The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads

• Oct 19 - First United Q3 net income rises on loan, margin growth

• Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin

• Oct 19 - Home Bancorp Q3 net income, EPS fall from prior quarter on deposit pricing pressure

For questions concerning the data in this report, contact Estimates.Support@lseg.com. For any other questions or feedback, contact reuters.support@thomsonreuters.com.

(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)