Continuing to "Gain Momentum" - Stronger Growth and Profitability

研报英文原文证据摘录

Continuing to "Gain Momentum" - Stronger Growth and Profitability

C O M PA N Y N O T E

J u l y 2 1 , 2 0 2 6

SmartFinancial, Inc. (SMBK) Neutral

CONCLUSION PRICE: US$47.67

Shares Continue to Move Higher on Improving Results and Continuing Positive TARGET: US$48.50

Momentum - While we are lowing our 2027E's slightly to $4.22 (from $4.35), we continue Our PT is based on ~11.5x our 2027E.

to be impressed by the progress and profitability improvement that the SMBK team and

its franchise are demonstrating. 2Q26 results delivered a ~1.10% ROA, an 11.5% ROE, Stephen Scouten, CFA

Managing Director, Piper Sandler & Co.and a 13.7% ROTCE - leading to ~13% LQA growth in TBVPS. The shares are now up 404 442-2882, stephen.scouten@psc.com

nearly 31% YTD - outperforming the KRE by a robust 15% YTD. SMBK mgmt expects

Jackson Andrew

to see continued momentum - with high-single to low-double digit loan growth remaining Research Analyst, Piper Sandler & Co.

feasible, a NIM that should continue to expand over time, and a managed approach to 404 442-2859, jackson.andrew@psc.com

future investments. We are increasing our PT to $48.50, now ~11.5x our 2027E (up from Ashley Aloupis

10.5x previously) as the multi-year profitability improvement continues to impress and hold. Research Analyst, Piper Sandler & Co.

212 466-7974, ashley.aloupis@psc.com

• Loan Growth Impresses and Trends Remain Encouraging – SMBK reported robust Changes Previous Current

loan growth of 14.6% LQA, ahead of our 10.5% expectations and a third qtr in a row Rating — Neutral

of extremely robust growth. Management noted that it sees continued growth potential Price Tgt US$45.50 US$48.50

around the 10% range +/-, while we model fwd growth at ~11% through YE27. Future FY26E EPS US$3.75 US$3.77