SmartFinancial, Inc. (NASDAQ:SMBK) Q1 2020 Earnings Conference Call - Final Transcript

Apr 29, 2020 • 10:00 am ET


SmartFinancial, Inc. (NASDAQ:SMBK) Q1 2020 Earnings Conference Call - Final Transcript


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Good morning, welcome to SmartFinancial First Quarter 2020 Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] Please note that this event is being recorded. I would now like to turn the conference over to Miller Welborn, Chairman. Please go ahead.

Miller Welborn

Thanks, Kate. Good morning and thanks for joining us today for our Q1 2020 earnings call. Joining me today are Billy Carroll, our CEO and President; Ron Gorczynski, our CFO; and Rhett Jordan, our Chief Credit Officer. Before we get started today, I'd like to refer all of you to Page 2 of our deck for the normal and customary disclaimers and forward-looking statements comments. Please take a minute to review these.

I'd also like to start today by just saying thanks, and that's not a tribute or cursory thanks, but a very sincere thanks to multiple groups of people. First, our team of associates here at SmartBank have put an incredible efforts over the last 60 days and it's appreciated; to our clients for their patience as we juggled hours of operation and a multitude of business challenges; and also to our shareholders and investors for your continued patience and confidence in this team here at SmartBank. To all of you, thank you, thank you, thank you.

Several highlights I'd like to touch on and then I'll turn this over to Billy to jump in some of the details. First, our net interest income for the quarter was up $1.5 million, strong interest income. Also, our earnings for the quarter were very strong. We're very proud of the earnings we have. Our loan growth, we had $99 million of originations this quarter for a net $54 million in organic loan growth, 11% annualized loan growth, strong for the quarter. We closed our progressive transaction on March 1, great to have that team on board. And finally, our asset quality remains very strong with NPAs at just 31 bps. We're poised to not just weather this storm, but to be stronger as a result of it and also to gain market share in the quarters ahead, as we have really helped a ton of businesses in our markets that other banks either didn't help or wouldn't help with this PPP process.

With that, I will turn it over to Billy to dig in.

Billy Carroll

Thanks, Miller. I'll give some macro level color on the quarter and then I'm going to hand it over to Ron and then on to Rhett to take a deeper dive into both the financials and the portfolio. First, a very solid quarter for our Company with continued steady organic growth on top of closing our Progressive Financial Group deal, both of which will continue to benefit our financial metrics moving forward. The Progressive transaction is a great addition and solidifies our presence for us in the Upper Cumberland region in Middle Tennessee and provides great density addition between Knoxville and the Nashville MSAs. We'll be converting and rebranding this team in early May