Billy Carroll, president and CEO of SmartFinancial, left, and Miller Welborn, chairman of SmartFinancial, speak during an interview in the offices of Cornerstone Bank onTuesday, Sept. 1, 2015, in Chattanooga, Tenn. SmartFinancial Inc., which completed its merger with the parent company of Cornerstone Bank in Chattanooga on Sept. 1 to create a bank with more than $1 billion in assets, reported a third quarter loss of $76,909, or 3 cents per share, due primarily to one-time merger expenses and loan writeoffs during the three-month period.
SmartFinancial said Thursday the new holding company, the parent company of SmartBank in Knoxville and Sevierville and Cornerstone Bank in Chattanooga, incurred one-time merger-related expenses of $747,511 and another $446,000 to write down foreclosed assets to accelerate the liquidation process for bad loans on the banks’ books.
Bank officials said the merger-related expenses and the write-down on foreclosed properties “were anticipated and in line with company expectations.” Carroll said the bank anticipates minimal expenses in such areas going forward.
The merger of the two East Tennessee banks creates a bank with more than $1 billion in assets operating in growth markets of both Tennessee and Florida. The combined bank had $847 million in deposits and $706.6 million in loans, as of Sept. 30.
“As our companies were united under SmartFinancial Inc. in September, our talented teams within Cornerstone and SmartBank are energized and highly motivated to finalize the integration of our two banks, building a strong banking franchise in attractive markets spanning East Tennessee and Northwest Florida,” said Billy Carroll, president and CEO of SmartFinancial. “Organic growth has been steady in all markets and we are looking forward to solid performance moving forward now that the holding company transaction is closed.”
News report from the merger announcement: