Smartfinancial Net Income Rises to $16.3 Million
The company reported a net interest margin of 3.52% for the second quarter ended June 30, 2026.
Smartfinancial (SMBK) reported net income of $16.3 million for the second quarter of 2026.
The financial services provider saw a steady increase in profitability over the last year, with net income rising from $11.7 million in the second quarter of 2025. This growth followed a first-quarter result of $13.7 million.
Earnings for the quarter were $0.96 a share, up from $0.81 a share in the prior quarter. The company's total assets surpassed $6 billion during the period, ending at $6.12 billion as of June 30.
Net interest income rose to $48.1 million from $45.9 million in the first quarter. This was supported by a net interest margin that expanded to 3.52%, compared to 3.48% in the previous quarter and 3.29% a year earlier. The yield on loans and leases rose slightly to 5.95%, while the cost of total deposits increased to 2.15%.
Loan activity remained active as net organic loan and lease growth reached $165 million, a 15% annualized quarter-over-quarter increase. Asset quality improved, with nonperforming loans and leases as a percentage of total loans and leases falling to 0.25% from 0.27%.
Credit costs fell as the provision for credit losses decreased to $1.46 million from $4.14 million in the first quarter. These gains were partially offset by noninterest expenses, which rose to $34.0 million from $32.9 million due to higher technology costs, FDIC insurance, and salaries.
Noninterest income remained flat at $7.9 million. Lower capital markets income was offset by increases in mortgage banking and interchange income.
Tangible book value per common share grew 13% annualized quarter-over-quarter to $28.22 as of June 30, compared to $26.85 at the end of 2025.