2023 Annual Report
SmartBank,known for its progressive and innovative style of banking, opened the doors of its first branch in 2007 with the vision of building a foundation of strong leadership, forward thinking and a sincere desire to provide incomparable client service. Seventeen years later, that very foundation is stronger than ever and SmartBank is continuing to Build Exceptional Value for Shareholders, Associates, Clients and the Communities we serve.
Miller Welborn (standing), Bill Carroll (left) and Billy Carroll (right)
Letter to our Shareholders
We are pleased to present our 2023 annual report. Our industry, once again, proved resilient in the face of headwinds. The country's economic backdrop is in an unusual place, with higher interest rates than we've seen in many years. Adapting to this unprecedented rise in interest rates coupled with industry uncertainty created by liquidity issues at a handful of "niche" banks made for a challenging 2023. Additionally, persistent inflation gave rise to increased market volatility despite the economy performing well in most areas, particularly in the Southeast markets where we operate.
In the banking business, we focus on key balance sheet metrics which correlate to long-term value creation - credit performance, core deposit growth, and loan growth. We were pleased to see our company advance in all of these areas despite the extraordinary operating conditions throughout the year. As we reflect on our 2023 achievements, we can't help but be energized by the foundation that was laid and primed to execute on what we believe will be a bullish 2024.
Below are several highlights as we wrap our 17th year of operations:
Financial Performance: In 2023, we achieved significant financial results, and a record high $4.8 billion in total assets. We achieved +5% year-over-yeartangible book value per share growth and $2.03 diluted operating earnings per share, bolstered by a 6% year- over-yearincrease in operating noninterest income. As one of the key shareholder return metrics we focus on, growth tangible book value was commendable, especially given the precipitous rise in interest rates and the resulting negative impact on asset valuations. Finally, in keeping with our core principle of diligent credit underwriting, we had another outstanding year of credit quality with 0.20% nonperforming assets to total assets.
Operational Highlights: Operationally we made significant strides in further building out the infrastructure to support our $5 billion in assets company. While basic in principle, our dedication to the SmartBank culture philosophy combined with an incomparable team-orientedatmosphere continues to be an extremely effective recruiting tool. Coupling the sophistication we've added in human talent with our continued investment in systems, we see outstanding catalysts for profitable growth going into 2024. Some other key operating highlights and accolades include:
- SmartBank Investment Services wealth management expanded into Dothan, AL
- Implementation of the nCino Customer Pricing and Profitability platform
- Stock listing moved to the New York Stock Exchange
Corporate Social Responsibility: Being a great community bank also means being a big part of the communities we serve. We recognize the importance of corporate social responsibility and its impact on our communities and stakeholders. In 2023, we continued our efforts to give back and make a positive difference through a number of initiatives. We note several of these outstanding partnerships we're building in this report. A special "thank you" to each of these outstanding organizations and we look forward to continuing our involvement in 2024!
Outlook: As you may have deduced by the tone of this letter, we couldn't be more optimistic about the future of our organization. Our platform's foundation fused with our superior associates has created one of the best banks in the Southeast, covering some of the most desirable growth markets in the region. SmartBank Investment
Services has scaled to having over $1 billion in assets under management, we have
a growing equipment finance business, and our insurance agency has become an outstanding asset with tremendous potential. Our strategy now becomes leveraging this incredible platform and all the past hard work into growing the value of this company for our shareholders.
Acknowledgments: We would like to express our sincere gratitude and appreciation for our 500+ associates at SmartFinancial. These team members are building something special, and I would put the culture we're building here up against any other. We also want to thank our shareholders for your continued support and trust in SmartFinancial. Building value for those who support us is not something we take lightly, and we continue to promise to work day in and day out to build value for you.
In closing, we are excited about the opportunities that lie ahead for SmartFinancial, and look forward to sharing our continued progress with you in the coming years. Thank you once again for your unwavering support.
Warm Regards,
- Ranked 36th in Top 50 Large Community Banksby S&P Global Market Intelligence
- Voted a regional Top Workplace for the 7th consecutive year
- Opened the full service SmartBank Tallahassee branch
BILLY CARROLL | MILLER WELBORN | BILL CARROLL |
President & CEO | Chairman of the Board | Vice Chairman of the Board |
SmartFinancial, Inc. | SmartFinancial, Inc. | SmartFinancial, Inc. |
SmartFinancial, Inc. 2023 ANNUAL REPORT 3
Board of | Directors | |||
(pictured left to right) | BILLY CARROLL | DR. KEITH WHALEY | ||
CATHY ACKERMANN | ||||
SmartFinancial, Inc. & SmartBank | Founder of Whaley Family Eyecare | |||
Chief Executive Officer of | President & CEO | |||
Ackermann Marketing & PR | GEOFF WOLPERT | |||
MILLER WELBORN | ||||
JOHN PRESLEY | Owner of The Park Grill | |||
SmartFinancial, Inc. & SmartBank | and The Peddler Steakhouse | |||
Principal, Presley Consulting | Chairman | |||
TED MILLER | ||||
VIC BARRETT | BILL CARROLL | |||
Business Manager & Partner | ||||
Co-founder and Partner of | ||||
SmartFinancial, Inc. & SmartBank | of Dolly Parton Productions | |||
The Track Recreation Center | ||||
Vice-Chairman | ||||
DAVID OGLE | STEVE TUCKER |
President and | |
Principal in TriCo Resources | |
Co-founder of Five Oaks | |
and BTI Real Estate | |
Development Group | |
4 2023 ANNUAL REPORT SmartFinancial, Inc
BILLY CARROLL
President
Chief Executive Officer
Senior Leadership
BECCA BOYD | CYNTHIA CAIN | KELLEY FOWLER | RON GORCZYNSKI | |||
Executive Vice President | Executive Vice President | Senior Vice President | Executive Vice President | |||
Chief People Officer | Chief Accounting Officer | Director of Marketing | Chief Financial Officer | |||
& Public Relations |
MONTY HATCHER | RHETT JORDAN | TRAVIS LYTLE | GARY PETTY | |||
CFP®, AAMS® | Executive Vice President | Senior Vice President | Executive Vice President | |||
Executive Vice President, | Chief Credit Officer | Director of Community | Chief Risk Officer | |||
Director of SmartBank | Development | |||||
Investment Services |
BRAD PLACE | MARTIN SCHRODT | NATHAN STRALL | ROBBIE WASHINGTON | |||
Senior Vice President | Executive Vice President | Vice President | Senior Vice President | |||
Chief Technology Officer | Chief Banking Officer | Director of Strategy | CRA Officer & Director of | |||
& Corporate Development | CRA/HMDA Reporting |
Great leaders inspire others to believe in themselves.
SmartFinancial, Inc. 2023 ANNUAL REPORT 5
2023 Highlights
SmartBank voted
Top Workplace
for the seventh
consecutive
year
New Chief
Banking Officer
position
added in fourth quarter
of 2023
Opened
Tallahassee
full service branch
May 2023
Ranked 36th in
Top 50 Large Community Banks by S&P Global Market Intelligence
New deposit,
loan, and mortgage operations enhancements
added throughout 2023
SBIS | |||||
SmartBank | |||||
Investment | |||||
Services | SmartFinancial (SMBK) | ||||
expansion with the addition | |||||
stock listing moved to the | |||||
of the Dothan, AL Wealth | |||||
New York | |||||
Management team | |||||
Stock | |||||
Exchange | |||||
SmartBank President and CEO elected | Implementation | ||||
of the nCino | |||||
to Federal Reserve | |||||
Customer Pricing | |||||
Bank of Atlanta's | |||||
and Profitability | |||||
Board of Directors | |||||
systemto support | |||||
commercial pricing and | |||||
sales efforts |
6 2023 ANNUAL REPORT SmartFinancial, Inc.
The 2023 Bill Carroll
Legacy Banker
Award
Cathy Reed, Senior Vice President and Relationship Manager, was presented with the 2023 Bill Carroll Legacy Banker Award. This award was established in honor of Mr. Carroll and is given to those that exhibit his integrity, dedication, entrepreneurial spirit, and business acuity. Cathy has been an integral part of SmartBank's team since it was in organization in 2006.
"Cathy is an inspiration to our associates and colleagues in our industry," said President & CEO Billy Carroll. "Her contributions have not only propelled this company to new heights but have also left an enduring legacy of her hard work, loyalty and innovation within the banking community. Her expertise and devotion make her most deserving of this award."
SmartFinancial, Inc 2023 ANNUAL REPORT 7
SmartBank Culture
Core Purpose
CREATE WOWEXPERIENCES
Core Values
ACT WITH INTEGRITY
BE ENTHUSIASTIC
CREATE POSITIVITY
DEMONSTRATE ACCOUNTABILITY
EMBRACE CHANGE
7
In 2023, SmartBank was voted a Top Workplace by associates for the seventh year in a row.
Congratulations Daria!
Each month a "WOW" Award Winner is chosen based on submissions from peers. At the end of each year, associates vote amongst the monthly winners to select the overall "WOW" Award winner for the year.
2023 "WOW" AWARD WINNER DARIA BOOTH
Assistant Vice President | e-Banking Manager
Sevierville, TN
8 2023 ANNUAL REPORT SmartFinancial, Inc.
Career Development & Growth Opportunities
SMARTJOURNEY CAREER PATH
Featured: Meia's SmartJourney, from Retail to Technology
Financial Services Representative
Senior Financial Services
Representative
Assistant Branch Manager
IT Analyst
Systems Administrator
MEIA HUNT
Vice President
Technical Support Services Manager
"I can't say enough positive things about the Mentorship program. This year was a MENTORSHIP PROGRAM year of growth/development and I could not have asked for better mentor."
- Cathy Amos, Marketing Manager
SMARTLEADERSHIP
LEVEL UP
This introductory leadership course is a 1-day,in-person class
that equips new and rising supervisors with leadership principles pertaining to SmartBank's culture, people, and processes.
"Level Up was amazing! This program is an environment where everyone feels valued, safe and challenged to grow as leaders."
- Sarah Hurst, Client Services Manager
BRAG-WORTHY INTERNS | Our interns aren't just interns; they're trailblazers in the making, bringing fresh perspectives and impactful |
contributions to our team. With their passion, drive, and innovative spirit, they elevate our workplace | |
culture and inspire excellence. |
Joshua Bean | Savannah Beaty | Gabriella Buechley | Andrew Dutton | Matthew Jenisch | Sydney Mayfield | Hannah Mckay |
Information Technology | Legal | Information Technology | Branch Administration | Deposit Operations | Finance | Marketing |
Joseph Moore | Christian Moss | Francisco Palacios, Jr. | Ash Perry, Jr. | Joshua Stubblefield | Jonathan Vargas-Quijano | Jason Wasilewski |
Finance | Branch Administration | Risk Management | Risk Management | Finance | Risk Management | Human Resources |
SmartFinancial, Inc. 2023 ANNUAL REPORT 9
Corporate Social Responsibility
SmartBank's commitment to Corporate Social Responsibility is fundamental to our business philosophy. Through various initiatives and partnerships, SmartBank actively engages in community development, environmental sustainability and financial literacy outreach programs. By prioritizing responsible and conscientious business practices, we will foster a more sustainable and equitable future for all stakeholders making a positive impact beyond financial gains.
$182M
Reported 825 small business and small farm loans totaling $182 million.
$93M
Approximately $93 million in community development loans qualifying for CRA credit.
Maintained an investment portfolio of $78 million in | $ | 78M |
municipal, mortgage-backed and agency securities that | ||
provide financing for affordable housing and support | ||
economic development. Includes approximately $40 | ||
million in SBA pool securities purchased in 2023. |
$152KDonations totaling over $152,000 to community organizations and causes that benefit low-moderate income individuals and geographies in the Bank's assessment areas.
Donation of former branch building valued at $192,000 to the | $192K |
City of Jackson to repurpose as an ambulance service and police | |
precinct that will serve the residents of an underserved area. | |
10 2023 ANNUAL REPORT SmartFinancial, Inc. |
Attachments
- Original Link
- Original Document
- Permalink
Disclaimer
SmartFinancial Inc. published this content on 04 April 2024 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 April 2024 13:08:01 UTC.