SmartFinancial (SMBK) FY 2025 Earnings Snapshot

SmartFinancial (SMBK) has wrapped up FY 2025 with fourth quarter revenue of about US$49.2 million and basic EPS of US$0.82, against a trailing twelve month tally of US$192.7 million in revenue and EPS of roughly US$3.00. The company has seen revenue move from US$166.3 million on a trailing basis at the end of Q4 2024 to US$192.7 million by Q4 2025, while EPS over the same trailing period went from about US$2.16 to US$3.00. With that backdrop, the focus now shifts to how margins and profit quality shape the story investors are building around these results.

See our full analysis for SmartFinancial.

With the headline numbers on the table, the next step is to see how this earnings print lines up against the widely followed narratives around SmartFinancial's growth, profitability and risk profile.

3.29% net interest margin with rising loan book

• SmartFinancial reported a trailing net interest margin of 3.29% with total loans of US$4,363.6 million at FY 2025 year end, compared with US$3,906.3 million in loans at FY 2024 year end on the same trailing basis.
• What stands out for a more bullish view is that this net interest income engine is tied to a broad regional banking model, where:
  • Loans span commercial, real estate and consumer exposure, and the US$4,363.6 million loan book gives that approach real scale across its footprint in Tennessee, Alabama and Florida.
  • Services like wealth management, insurance and mortgage origination sit on top of that balance sheet, which fits the idea of a relationship bank using multiple revenue streams rather than relying on a single product.

Cost to income at 64.4% alongside 26.1% net margin

• On a trailing twelve month basis, the cost to income ratio sits at 64.41% while the net profit margin is 26.1%, compared with 21.7% a year earlier on that same trailing view.
• Supporters of a more optimistic take point out that this combination of profitability and expense ratio lines up with the idea of a regional bank that can earn returns from a fairly traditional model, because:
  • Net income on a trailing basis was US$50.3 million versus US$36.1 million a year earlier on the same measure, which is a sizeable step up in absolute profit dollars against the cost base implied by the 64.41% ratio.
  • Trailing basic EPS moved from US$2.16 to about US$3.00 over that period, so each share is now tied to more earnings even with operating costs still taking close to two thirds of income.

Valuation gap vs DCF despite premium P/E

• The shares trade around US$40.39 at a trailing P/E of 13.7x, compared with a peer or industry average of 11.8x, while the provided DCF fair value is US$72.53, about 44.3% above the current price.
• General market opinion can see a tension here between a richer P/E and that higher DCF fair value, and the earnings profile gives both sides numbers to point to, because:
  • Trailing earnings growth of 39.3% and revenue growth of roughly 11.3% per year sit above the referenced broader US market revenue pace of 10.5% per year, which some investors use to argue the P/E premium is grounded in stronger recent growth.
  • At the same time, the premium versus the 11.8x industry P/E means anyone focused on peer comparisons might question paying up, even with a DCF fair value that is much higher than US$40.39.

To see how this numerical gap between P/E and DCF fair value fits into the bigger story on growth, risk and long term potential, check out the fuller narrative around these metrics. Curious how numbers become stories that shape markets? Explore Community Narratives

Next Steps

Don't just look at this quarter; the real story is in the long-term trend. We've done an in-depth analysis on SmartFinancial's growth and its valuation to see if today's price is a bargain. Add the company to your watchlist or portfolio now so you don't miss the next big move.

See What Else Is Out There

SmartFinancial's richer 13.7x P/E versus the 11.8x industry figure, alongside questions about paying a premium, may leave you wanting a wider valuation bench.

If that valuation tension feels uncomfortable, use our CTA_SCREENER_UNDERVALUED to quickly focus on pre screened companies where current prices look more aligned with underlying cash flows.

This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.