SmartFinancial Q2 profit rises as loan growth lifts net interest income

SmartFinancial, Inc.

SmartFinancial, Inc.

SMBK

0.00


Overview

  • US commercial bank's Q2 net income and EPS rose yr/yr and sequentially

  • Net interest income increased to $48.1 mln from $45.9 mln in prior quarter

  • Company reported 15% annualized loan growth and 6% annualized core deposit growth qtr/qtr


Outlook

  • Company says ongoing industry consolidation is creating opportunities to gain market share

  • SmartFinancial expects to benefit from strong momentum and healthy business pipelines

  • Company remains confident in its ability to capitalize on future opportunities


Result Drivers

  • LOAN GROWTH - Net organic loan and lease growth of $165 mln, representing 15% annualized qtr/qtr increase, contributed to higher net interest income

  • NET INTEREST MARGIN - Net interest margin expanded to 3.52% from 3.48% qtr/qtr, primarily due to asset yields rising faster than liability costs

  • CORE DEPOSIT GROWTH - Core deposits grew $83 mln, or 6% annualized qtr/qtr, supporting loan growth and funding needs


Company press release: ID:nBw828DDFa


Key Details

Metric

Beat/Miss

Actual

Consensus Estimate

Q2 EPS

$0.96

Q2 Net Income

$16.30 mln

Q2 Net Interest Income

$48.10 mln


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 $46.63, about 2.2% below its July 20 closing price of $47.67

  • The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 11 three months ago


Reuters Recommended Reads

  • July 20 - ServisFirst Bancshares Q2 EPS rises 40% on loan growth, higher net interest margin

  • July 20 - Home Bancorp Q2 net income, margin rise

  • July 20 - Investar Q2 adjusted EPS beats estimates, net interest margin improves


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