SmartFinancial Q2 profit rises as loan growth lifts net interest income
SMBK•Outlook
- Company says ongoing industry consolidation is creating opportunities to gain market share
- SmartFinancial expects to benefit from strong momentum and healthy business pipelines
- Company remains confident in its ability to capitalize on future opportunities
Overview
- US commercial bank's Q2 net income and EPS rose yr/yr and sequentially
- Net interest income increased to $48.1 mln from $45.9 mln in prior quarter
- Company reported 15% annualized loan growth and 6% annualized core deposit growth qtr/qtr
Result Drivers
- Loan growth - Net organic loan and lease growth of $165 mln, representing 15% annualized qtr/qtr increase, contributed to higher net interest income
- Net interest margin - Net interest margin expanded to 3.52% from 3.48% qtr/qtr, primarily due to asset yields rising faster than liability costs
- Core deposit growth - Core deposits grew $83 mln, or 6% annualized qtr/qtr, supporting loan growth and funding needs
