SmartFinancial Q3 net income rises, driven by organic loan growth

SmartFinancial

Mon 22:13

Overview
U.S. regional bank's Q3 net income rises to $18.6 mln, with EPS at $1.10
Company posted strong organic loan and deposit growth in the quarter
Company recognized $2.6 mln tax benefit from energy tax credits

Outlook
Company did not provide specific financial guidance for upcoming quarters or full year in its press release

Result Drivers
LOAN GROWTH - Co reported $174 mln in net organic loan and lease growth, representing a 15% annualized increase
DEPOSIT GROWTH - Core deposits grew $163 mln, or 12% annualized quarter-over-quarter
HIGHER FUNDING COSTS - Net interest margin declined sequentially due to higher funding costs, which offset improved earning-asset yields

Company press release: ID:nBwc6ck1ta

Key Details
Metric
Beat/Miss
Actual
Consensus Estimate
Q3 EPS
 
$1.10
 
Q3 Net Income
 
$18.6 mln
 
Q3 Net Interest Income
 
$49.4 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 $51.88, about 2.7% above its October 19 closing price of $50.51
The stock recently traded at 12 times the next 12-month earnings vs. a P/E of 12 three months ago

Reuters Recommended Reads
Oct 19 - First United Q3 net income rises on loan, margin growth
Oct 19 - ServisFirst Bancshares Q3 profit jumps on loan growth, wider interest margin 
Oct 19 - Home Bancorp Q3 net income, EPS fall from prior quarter on deposit pricing pressure

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)