In its first complete fiscal quarter operating as a combined bank, SmartFinancial Inc. earned $1.2 million, or 20 cents per share, in the final three months of 2015.
The Knoxville-based bank, which was created by the merger of SmartBank in Sevier County and Cornerstone Bank in Chattanooga in September, said loan volume rose 9.5 percent while nonperforming assets shrunk to just 0.75 percent in the fourth quarter.
Bank officials said they are preparing to rebrand the Cornerstone bank offices in Chattanooga as SmartBanks at the end of February, which should make further improvements in operating margins.
“We enjoyed a favorable final quarter, but look forward to completing the combination of our two banks slated for late February, at which time we’ll begin realizing greater efficiencies,” said Billy Carroll, president and CEO of SmartFinancial. “As we unite as SmartBank, spanning East Tennessee and Northwest Florida, 2016 will be our year to focus on fundamentals, reinforce the foundation of an innovative, forward-looking brand and execute on our disciplined growth strategy.”
Miller Welborn, the former chairman of Cornerstone Bank in Chattanooga who is now chairman of SmartFinancial, said the coming change in the name of the Chattanooga banks “has tremendous prospects for growth.”
SmartBank also is adding a mortgage unit, which should serve the bank’s markets in Knoxville, Chattanooga and the Florida Panhandle by by March.
“The banking industry is ready for re-envisioning and this company’s energetic, entrepreneurial leadership and talented team of associates poise us perfectly to deliver a new experience in banking which we anticipate will reward clients, associates and shareholders alike,” Welborn said in the bank’s earnings announcement.