SMARTFINANCIAL INC. Segments Disclosure
Note 19. Segment Information
The Company, through the Bank, provides a broad range of financial services to individuals and companies through its offices in East and Middle Tennessee, Alabama and Florida. These services include, but not limited to, primary deposit products are interest-bearing demand deposits, savings and money market deposits, and time deposits. Its primary lending products are commercial, residential, and consumer loans. The Company’s operations are managed, and financial performance is evaluated on an organization-wide basis. Accordingly, the Company’s banking and finance operations are not considered by management to constitute more than one reportable operating segment. This single segment is the General Banking Unit.
The Company’s chief operating decision maker (“CODM”) is the Executive Committee. The CODM includes the senior executive management team including the Chief Executive Officer, Chief Financial Officer, Chief Credit Officer, Chief Accounting Officer, Chief People Officer, Chief Risk Officer, and Chief Banking Officer.
The CODM assesses performance of the General Banking Unit using a variety of figures, metrics and key performance indicators. However, the CODM primarily utilizes net income and net interest income to make business decisions. The CODM monitors these profitability measures at each meeting, and is regularly featured in various investor presentations, earnings releases, and other internal management reports. These performance and profitability measures influence business decisions and allocation of resources within the General Banking Unit.
The table below provides information about the General Banking Unit. The most significant expenses to the General Banking Unit are deposit and other borrowing interest expense as well as employee compensation (in thousands):
Banking Segment | |||||||||
Year Ended December 31, | |||||||||
2025 | 2024 | 2023 | |||||||
Interest income | $ | 285,972 | $ | 251,119 | $ | 218,043 | |||
Interest expense | 119,868 | 113,769 | 87,963 | ||||||
Net interest income | 166,104 | 137,350 | 130,080 | ||||||
Provision for credit losses | 7,750 | 5,153 | 3,029 | ||||||
Net interest income after provision for credit losses | 158,354 | 132,197 | 127,051 | ||||||
Noninterest income: | |||||||||
Service charges on deposit accounts | 7,161 | 6,862 | 6,511 | ||||||
Loss on sale of securities | (3,719) | 64 | (6,801) | ||||||
Mortgage banking | 2,673 | 1,579 | 1,040 | ||||||
Investment services | 6,582 | 5,945 | 5,105 | ||||||
Insurance commissions | 4,016 | 5,696 | 4,684 | ||||||
Interchange and debit card transaction fees, net | 5,275 | 5,277 | 5,457 | ||||||
Gain on sale of SBKI | 3,955 | — | — | ||||||
Other | 8,409 | 8,729 | 6,329 | ||||||
Total noninterest income | 34,352 | 34,152 | 22,325 | ||||||
Noninterest expense: | |||||||||
Salaries and employee benefits | 78,297 | 72,100 | 65,749 | ||||||
Occupancy and equipment | 13,686 | 13,617 | 13,451 | ||||||
FDIC insurance | 4,002 | 3,390 | 3,156 | ||||||
Other real estate and loan related expense | 3,242 | 2,823 | 2,397 | ||||||
Advertising and marketing | 1,619 | 1,321 | 1,342 | ||||||
Data processing and technology | 10,316 | 9,930 | 9,235 | ||||||
Professional services | 4,775 | 4,207 | 3,443 | ||||||
Amortization of intangibles | 2,150 | 2,425 | 2,624 | ||||||
Merger related and restructuring expenses | 1,326 | — | 110 | ||||||
Other | 11,792 | 11,077 | 11,643 | ||||||
Total noninterest expense | 131,205 | 120,890 | 113,150 | ||||||
Income before income tax expense | 61,501 | 45,459 | 36,226 | ||||||
Income tax expense | 11,154 | 9,318 | 7,633 | ||||||
Net income | $ | 50,347 | $ | 36,141 | $ | 28,593 | |||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Mar 16, 2026 | Showing above |
| 2024 | Mar 17, 2025 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.