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SmartFinancial Announces Results for the Fourth Quarter 2020

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KNOXVILLE, Tenn., Jan. 19, 2021 — SmartFinancial, Inc. (“SmartFinancial” or the “Company”; NASDAQ: SMBK), today announced net income of $9.0 million, or $0.59 per diluted common share, for the fourth quarter of 2020, compared to net income of $6.4 million, or $0.42 per diluted common share for the third quarter of 2020. Operating earnings (Non-GAAP), which excludes securities gains, merger related and restructuring expenses and non-operating items, totaled $9.2 million, or $0.61 per diluted common share, in the fourth quarter of 2020, compared to $6.6 million, or $0.44 per diluted common share, in the third quarter of 2020.

Highlights for the Fourth Quarter of 2020

  • Net income of $9.0 million and operating earnings of $9.2 million (Non-GAAP)
  • Operating noninterest income (Non-GAAP) increased $381 thousand or 36.9% annualized quarter-over-quarter
  • Tangible book value per share (Non-GAAP) of $17.92, a 15.1% annualized quarter-over-quarter increase
  • Deposits increased by $153.2 million or 23.1% annualized from September 30, 2020
  • Paid off $237.8 million in borrowings from the Federal Reserve Bank Paycheck Protection Program Liquidity Facility (“PPPLF”)
  • COVID loan modifications declined to 0.7% of total loans

Billy Carroll, President & CEO, stated: “We are extremely pleased with our results for the quarter and for the year.  The year was unprecedented on several fronts, but our energetic, entrepreneurial team rose to the occasion and posted very sound results.  Our continued focus on diversification of revenue and work on efficiency gains are being seen in our metrics, and that, coupled with our solid credit quality, keeps us very excited about our future.”

SmartFinancial’s Chairman, Miller Welborn, concluded: “The fourth quarter of 2020 and the entire year of 2020 exceeded our expectations. Our Board could not be happier or prouder of the entire team for the incredible effort and execution of our Strategic Plan. This COVID pandemic has affected a tremendous number of people and the SmartBank team continues to help our clients and the communities we serve.”

Net Interest Income and Net Interest Margin

Net interest income increased $463 thousand to $26.5 million for the fourth quarter of 2020 or approximately 1.8% when compared to $26.0 million for the third quarter of 2020, mainly attributable to a reduction in the cost of interest-bearing liabilities. Average earning assets totaled $3.0 billion, a decrease of $106.9 million, primarily driven by a decrease in cash and cash equivalents used to pay off $237.8 million in borrowings related to PPPLF funding. Average interest-bearing liabilities decreased $139.4 million, primarily as a result of the PPPLF pay off, and was offset by an increase of $80.1 million in average interest-bearing deposits.

The tax equivalent net interest margin was 3.57% for the fourth quarter of 2020, compared to 3.39% for the third quarter of 2020. The tax equivalent net interest margin was positively impacted by a 13 basis point increase in the average yield on interest-earning assets and a 5 basis point decline in the rate on interest-bearing liabilities over the prior quarter. Lower market interest rates continue to negatively impact earning asset yields, but these declines have been largely mitigated by a lower cost of funds. The primary drivers of the yield increase on interest-earning assets during the fourth quarter of 2020 was an increase in total loan fees of $748 thousand which was offset by a $192 thousand decline in discount accretion. The increase in loan fees during the quarter is attributable to $2.2 million of the Paycheck Protection Program (“PPP”) fee accretion and $1.3 million of other loan fees compared to $1.8 million of PPP fee accretion, and $905 thousand of other loan fees recognized in the third quarter of 2020. Accretion income on acquired loans for the quarter totaled $768 thousand compared to $960 thousand recognized in the third quarter of 2020. The Company continues to carry excess liquidity on the balance sheet that resulted from significant deposit growth during the second and third quarters and continued muted loan growth. The lower cost of deposits realized during the current quarter was attributable to the maturing and repricing of time deposits and the payoff of the PPPLF borrowing, which further contributed to the increase in the tax equivalent net interest margin.

The yield on interest-bearing liabilities decreased to 0.60% for the fourth quarter of 2020 when compared to 0.65% for the third quarter of 2020. The cost of average interest-bearing deposits was 0.50% for the fourth quarter of 2020 compared to 0.59% for the third quarter of 2020, a decrease of 9 basis points. The lower cost of average deposits was attributable to the maturing and repricing of time deposits, with average costs decreasing 18 basis points. The cost of total deposits for the fourth quarter of 2020 was 0.38%.

The following table presents selected interest rates and yields for the periods indicated:

                   
    Three Months Ended      
    Dec   Sep   Increase  
Selected Interest Rates and Yields   2020   2020   (Decrease)  
Yield on loans   4.72 %   4.71 %   0.01   %
Yield on earning assets, FTE   4.01 %   3.88 %   0.13   %
Cost of interest-bearing deposits   0.50 %   0.59 %   (0.09 ) %
Cost of total deposits   0.38 %   0.44 %   (0.06 ) %
Cost of interest-bearing liabilities   0.60 %   0.65 %   (0.05 ) %
Net interest margin, FTE   3.57 %   3.39 %   0.18   %

Provision for Loan Loss and Credit Quality

There was no provision for loan losses during the fourth quarter of 2020, compared to $2.6 million in the third quarter of 2020. At December 31, 2020, the allowance for loan losses was $18.3 million. The allowance for loan losses to total loans was 0.77% as of December 31, 2020, compared to 0.78% as of September 30, 2020. For the Company’s originated loans, the allowance for loan losses to originated loans, less PPP loans, was 0.96% as of December 31, 2020, compared to 1.00% as of September 31, 2020. The remaining discounts on the acquired loan portfolio totaled $14.5 million, or 3.76% of acquired loans as of December 31, 2020.    During the quarter, the Company added a qualitative factor to the loan loss model, which is based upon the average number of COVID cases within our footprint.

As of December 31, 2020, the Company had COIVD related modified loans totaling $17.2 million, or 0.7%, of the loan portfolio, as compared to $232.5 million or 9.7%, of the loan portfolio on September 30, 2020. 

The following table presents detailed information related to the provision for loan losses for the periods indicated (dollars in thousands):

                         
    Three Months Ended          
     Dec      Sep          
Provision for Loan Losses Rollforward    2020       2020        Change  
Beginning balance   $ 18,817       $ 16,254       $ 2,563    
Charge-offs     (520 )       (174 )       (346 )  
Recoveries     49         103         (54 )  
Net charge-offs     (471 )       (71 )       (400 )  
Provision             2,634         (2,634 )  
Ending balance   $ 18,346       $ 18,817       $ (471 )  
                         
Allowance for loan losses to total loans, gross     0.77   %     0.78   %     (0.01 ) %

The Company is not required to implement the provisions of the CECL accounting standard until January 1, 2023 and is continuing to account for the allowance for loan losses under the incurred loss model.

Nonperforming loans as a percentage of total loans was 0.24% as of December 31, 2020, an increase of fifteen basis points from the 0.09% reported in the third quarter of 2020. Total nonperforming assets (which include nonaccrual loans, loans past due 90 days or more and still accruing, and other real estate owned) as a percentage of total assets was 0.31% as of December 31, 2020, as compared to 0.18% as of September 30, 2020. 

The following table presents detailed information related to credit quality for the periods indicated (dollars in thousands):

                         
    Three Months Ended          
    Dec     Sep       Increase  
Credit Quality   2020     2020       (Decrease)  
Nonaccrual loans   $ 5,633     $ 2,248     $ 3,385  
Loans past due 90 days or more and still accruing     149             149  
Total nonperforming loans     5,782       2,248       3,534  
Other real estate owned     4,619       3,932       687  
Total nonperforming assets   $ 10,401     $ 6,180     $ 4,221  
                         
Nonperforming loans to total loans, gross     0.24 %     0.09 %     0.15 %
Nonperforming assets to total assets     0.31 %     0.18 %     0.13 %

Noninterest Income

Noninterest income increased $855 thousand to $5.0 million for the fourth quarter of 2020 compared to $4.1 million for the third quarter of 2020. During the fourth quarter of 2020, the primary components of the changes in noninterest income were as follows:

  • Increase in service charges on deposit accounts of $140 thousand, primarily related to increased transaction volume;
  • Increase in mortgage banking income of $302 thousand, continued to experience high volume during the quarter;
  • Increase in other income of $476 thousand, related to $465 thousand of previously reserved funds from a dissolved loan program from the Alabama Department of Economic and Community Affairs (“ADECA”). These funds were placed in reserves for potential future losses. During the fourth quarter of 2020, these specific loans paid-off and the reserve was no longer required; and
  • Decrease in interchange and debit card transaction fees of $108 thousand, due to a one-time credit of $130 thousand from vendor reported during the third quarter of 2020.

The following table presents detailed information related to noninterest income for the periods indicated (dollars in thousands):

                   
    Three Months Ended      
      Dec     Sep     Increase
Noninterest Income     2020     2020     (Decrease)
Service charges on deposit accounts   $ 1,032   $ 892     $ 140  
Gain (loss) on sale of securities, net         (9 )     9  
Mortgage banking income     1,331     1,029       302  
Investment services     407     359       48  
Insurance commissions     548     560       (12 )
Interchange and debit card transaction fees     760     868       (108 )
Other     898     422       476  
Total noninterest income   $ 4,976   $ 4,121     $ 855  

Noninterest Expense

Noninterest expense was $20.0 million for the fourth quarter of 2020 compared to $19.2 million for the third quarter of 2020. During the fourth quarter of 2020, the primary components of the changes in noninterest expense were as follows:

  • Salaries and employee benefits increased $484 thousand, increase is primarily attributable to year-end employee incentive accrual adjustments and various other employee benefit related accruals;
  • Professional services increased $192 thousand, due to increased volume of services performed;
  • Amortization of intangibles increased $169 thousand, increase is from a cumulative adjustment for the amortization of intangible assets (client list and trademark) related to the insurance company purchased in the acquisition of Progressive Financial Group (“PFG”);
  • Merger related and restructuring expense increased $412 thousand, primarily related from the consolidation and termination of two leased properties;  
  • FDIC insurance decreased $237 thousand, the decrease was related to an elevated third quarter expense due to an accrual adjustment; and
  • Other real estate and loan related expenses decreased $127 thousand, primarily attributable to decreased activity in loan related activity.

The following table presents detailed information related to noninterest expense for the periods indicated (dollars in thousands):

                   
    Three Months Ended      
      Dec     Sep     Increase
Noninterest Expense     2020     2020     (Decrease)
Salaries and employee benefits   $ 11,516   $ 11,032   $ 484  
Occupancy and equipment     2,256     2,186     70  
FDIC insurance     297     534     (237 )
Other real estate and loan related expenses     516     643     (127 )
Advertising and marketing     181     253     (72 )
Data processing     592     558     34  
Professional services     786     594     192  
Amortization of intangibles     571     402     169  
Software as service contracts     590     573     17  
Merger related and restructuring expenses     702     290     412  
Other     1,946     2,102     (156 )
Total noninterest expense   $ 19,953   $ 19,167   $ 786  

Income Tax Expense

Income tax expense was $2.5 million for the fourth quarter of 2020, an increase of $531 thousand, compared to $2.0 million for the third quarter of 2020.

For the fourth quarter of 2020, the effective tax rate was 21.7% compared to 23.5% for the third quarter of 2020.   The lower effective tax rate during the fourth quarter of 2020 was primarily from tax benefits associated with a program the State of Tennessee manages for Community Investment loans.

Balance Sheet Trends

Total assets at December 31, 2020, were $3.30 billion compared with $2.45 billion at December 31, 2019. The increase of $855.8 million is primarily attributable to assets acquired from the acquisition of PFG of approximately $308.2 million, increase in cash and cash equivalents of $241.8 million and the net originations of $288.9 million of PPP loans.

Total liabilities increased to $2.95 billion at December 31, 2020 from $2.14 billion at December 31, 2019. The increase of $811.4 million was primarily from organic deposit growth of $486.0 million, acquired deposits from the acquisition of PFG in the amount of $272.0 million, and an increase in borrowings of $49.6 million.

Shareholders’ equity at December 31, 2020, totaled $357.2 million, an increase of $44.4 million, from December 31, 2019. The increase in shareholders’ equity was primarily from the issuance of common stock for the acquisition of PFG of $24.5 million, net income of $24.3 million for the year ended December 31, 2020 and a net change in accumulated other comprehensive income of $2.0 million, which was offset by the repurchase of the Company’s common stock of $4.3 million and $3.0 million of dividends paid. Tangible book value per share (Non-GAAP) was $17.92 at December 31, 2020, an increase from $16.82 at December 31, 2019. Tangible common equity (Non-GAAP) as a percentage of tangible assets (Non-GAAP) was 8.41% at December 31, 2020, compared with 9.93% at December 31, 2019.

The following table presents selected balance sheet information for the periods indicated (dollars in thousands):

                   
    Dec   Dec   Increase
Selected Balance Sheet Information   2020   2019   (Decrease)
Total assets   $ 3,304,949   $ 2,449,123   $ 855,826
Total liabilities     2,947,781     2,136,376     811,405
Total equity     357,168     312,747     44,421
Securities available-for-sale, at fair value     215,634     178,348     37,286
Loans     2,382,243     1,897,392     484,851
Deposits     2,805,215     2,047,214     758,001
Borrowings     81,199     31,623     49,576

Conference Call Information

SmartFinancial issued this earnings release for the fourth quarter of 2020 on Tuesday, January 19, 2021, and will host a conference call on Wednesday, January 20, 2021, at 10:00 a.m. ET. To access this interactive teleconference, dial (888) 317-6003 or (412) 317-6061 and enter the confirmation number, 0205038. A replay of the conference call will be available through January 20, 2022, by dialing (877) 344-7529 or (412) 317-0088 and entering the confirmation number, 10151327. Conference call materials will be published on the Company’s webpage located at https://www.smartfinancialinc.com/CorporateProfile, at 9:00 am ET prior to the conference call.

About SmartFinancial, Inc.

SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. SmartBank is a full-service commercial bank founded in 2007, with 35 branches across East and Middle Tennessee, Alabama, and the Florida Panhandle. Recruiting the best people, delivering exceptional client service, strategic branching, and a disciplined approach to lending have contributed to SmartBank’s success. More information about SmartFinancial can be found on its website: www.smartfinancialinc.com.

   
Source  
SmartFinancial, Inc.  
   
Investor Contacts  
Billy Carroll Ron Gorczynski
President & CEO Executive Vice President, Chief Financial Officer
(865) 868-0613   [email protected] (865) 437-5724 [email protected]
   
Media Contact  
Kelley Fowler  
Senior Vice President, Public Relations & Marketing  
(865) 868-0611    [email protected]  
   

Non-GAAP Financial Measures

Statements included in this earnings release include measures not recognized under U.S. generally accepted accounting principles (“GAAP”) and therefore are considered non-GAAP financial measures and should be read along with the accompanying tables, which provide a reconciliation of Non-GAAP financial measures to GAAP financial measures. SmartFinancial management uses several Non-GAAP financial measures, including: (i) operating earnings, (ii) operating return on average assets, (iii) operating pre-tax pre-provision return on average assets (iv) operating return on average shareholder’ equity, (v) return on average tangible common equity, (vi) operating return on average tangible common equity, (vii) operating efficiency ratio, (viii) operating noninterest income, (ix) operating pre-tax pre-provision income (x) operating noninterest expense, (xi) tangible common equity, (xii) average tangible common equity, (xiii) tangible book value; and ratios derived therefrom, in its analysis of the company’s performance. Operating earnings excludes the following from net income: securities gains and losses, expenses related to the termination of an Alabama Department of Economic and Community Affairs (“ADECA”) loan program, merger termination fee of $6.4 million in the second quarter of 2019, merger related and restructuring expenses. Operating return on average assets is the annualized operating earnings divided by average assets. Operating pre-tax pre-provision return on average assets is the annualized operating pre-tax pre-provision income divided by average assets. Operating return on average shareholders’ equity is the annualized operating earnings divided by average equity. Return on average tangible common equity is the annualized net income divided by average tangible common equity. Operating return on average tangible common equity is the annualized operating earnings divided by average tangible common equity (Non-GAAP). The operating efficiency ratio includes an adjustment for taxable equivalent yields and excludes securities gains and losses and merger related and restructuring expenses from the efficiency ratio. Operating noninterest income excludes the following from noninterest income: securities gains and losses, expenses related to the termination of the ADECA loan program and the merger termination fee of $6.4 million in the second quarter of 2019. Operating pre-tax pre-provision income is net interest expense plus operating noninterest income less operating noninterest expense. Operating noninterest expense excludes the following from noninterest expense: prior year adjustments to salaries, merger related and restructuring expenses and certain franchise tax true-up expenses. Tangible common equity and average tangible common equity excludes goodwill and other intangible assets from shareholders’ equity and average shareholders’ equity, respectively. Tangible book value is tangible common equity divided by common shares outstanding.   Management believes that Non-GAAP financial measures provide additional useful information that allows investors to evaluate the ongoing performance of the company and provide meaningful comparisons to its peers. Management believes these non-GAAP financial measures also enhance investors’ ability to compare period-to-period financial results and allow investors and company management to view our operating results excluding the impact of items that are not reflective of the underlying operating performance. Non-GAAP financial measures should not be considered as an alternative to any measure of performance or financial condition as promulgated under GAAP, and investors should consider SmartFinancial’s performance and financial condition as reported under GAAP and all other relevant information when assessing the performance or financial condition of the company. Non-GAAP financial measures have limitations as analytical tools, and investors should not consider them in isolation or as a substitute for analysis of the results or financial condition as reported under GAAP.

Forward-Looking Statements

This news release may contain statements that are based on management’s current estimates or expectations of future events or future results, and that may be deemed to constitute forward-looking statements as defined under the Private Securities Litigation Reform Act of 1995. These statements, including statements regarding the potential effects of the COVID-19 pandemic on the Company’s business and financial results and conditions, are not historical in nature and can generally be identified by such words as “expect,” “anticipate,” “intend,” “plan,” “believe,” “seek,” “may,” “estimate,” and similar expressions. All forward-looking statements are subject to risks, uncertainties, and other factors that may cause the actual results of SmartFinancial to differ materially from future results expressed or implied by such forward-looking statements. Such risks, uncertainties, and other factors include, among others, (1) risks associated with our growth strategy, including a failure to implement our growth plans or an inability to manage our growth effectively; (2) claims and litigation arising from our business activities and from the companies we acquire, which may relate to contractual issues, environmental laws, fiduciary responsibility, and other matters; (3) the risk that cost savings and revenue synergies from recently completed acquisitions may not be realized or may take longer than anticipated to realize; (4) disruption from recently completed acquisitions with customer, supplier, employee, or other business relationships; (5) our ability to successfully integrate the businesses acquired as part of previous acquisitions with the business of SmartBank; (6) risks related to the completed acquisition of PFG; (7) the risk that the anticipated benefits from the completed acquisition of PFG may not be realized in the time frame anticipated; (8) changes in management’s plans for the future; (9) prevailing, or changes in, economic or political conditions, particularly in our market areas; (10) credit risk associated with our lending activities; (11) changes in interest rates, loan demand, real estate values, or competition; (12) changes in accounting principles, policies, or guidelines; (13) changes in applicable laws, rules, or regulations, including changes to statutes, regulations or regulatory policies or practices as a result of, or in response to COVID-19; (14) adverse results from current or future litigation, regulatory examinations or other legal and/or regulatory actions, including as a result of the Company’s participation in and execution of government programs related to the COVID-19 pandemic; (15) the impact of the COVID-19 pandemic on the Company’s assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (16) potential increases in the provision for loan losses resulting from the COVID-19 pandemic; and (17) other general competitive, economic, political, and market factors, including those affecting our business, operations, pricing, products, or services. These and other factors that could cause results to differ materially from those described in the forward-looking statements can be found in SmartFinancial’s most recent annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K, in each case filed with or furnished to the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website (www.sec.gov). Undue reliance should not be placed on forward-looking statements. SmartFinancial disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events, or otherwise.

 
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information – (unaudited) (dollars in thousands)
 
    Ending Balances
    Dec   Sep   Jun   Mar   Dec
    2020     2020   2020   2020   2019
Assets:                              
Cash and cash equivalents   $ 481,719     $ 541,815     $ 399,467     $ 309,089     $ 183,971  
Securities available-for-sale, at fair value     215,634       214,634       219,631       201,002       178,348  
Other investments     14,794       14,829       14,829       14,113       12,913  
Loans held for sale     11,721       11,292       6,330       6,045       5,856  
Loans     2,382,243       2,404,057       2,408,284       2,139,247       1,897,392  
Less: Allowance for loan losses     (18,346 )     (18,817 )     (16,254 )     (13,431 )     (10,243 )
Loans, net     2,363,897       2,385,240       2,392,030       2,125,816       1,887,149  
Premises and equipment, net     72,682       73,934       73,868       73,801       59,433  
Other real estate owned     4,619       3,932       5,524       5,894       1,757  
Goodwill and core deposit intangibles, net     86,471       86,710       86,327       86,503       77,193  
Bank owned life insurance     31,215       31,034       30,853       30,671       24,949  
Other assets     22,197       24,168       37,126       20,781       17,554  
Total assets   $ 3,304,949     $ 3,387,588     $ 3,265,985     $ 2,873,715     $ 2,449,123  
Liabilities:                              
Deposits:                              
Noninterest-bearing demand   $ 685,957     $ 669,733     $ 645,650     $ 431,781     $ 364,155  
Interest-bearing demand     649,129       534,128       479,212       444,141       380,234  
Money market and savings     919,631       871,098       762,246       730,392       623,284  
Time deposits     550,498       577,064       652,581       735,616       679,541  
Total deposits     2,805,215       2,652,023       2,539,689       2,341,930       2,047,214  
Borrowings     81,199       319,391       318,855       131,603       31,623  
Subordinated debt     39,346       39,325       39,304       39,283       39,261  
Other liabilities     22,021       27,060       24,649       24,699       18,278  
Total liabilities     2,947,781       3,037,799       2,922,497       2,537,515       2,136,376  
Shareholders’ Equity:                              
Common stock     15,107       15,233       15,217       15,222       14,008  
Additional paid-in capital     252,693       254,626       254,396       254,356       232,732  
Retained earnings     87,185       78,918       73,283       67,869       65,839  
Accumulated other comprehensive income (loss)     2,183       1,012       592       (1,247 )     168  
Total shareholders’ equity     357,168       349,789       343,488       336,200       312,747  
Total liabilities & shareholders’ equity   $ 3,304,949     $ 3,387,588     $ 3,265,985     $ 2,873,715     $ 2,449,123  
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information – (unaudited) (dollars in thousands except share and per share data)
 
  Three Months Ended   Year Ended
  Dec   Sep   Jun   Mar   Dec   Dec   Dec
  2020   2020   2020   2020   2019   2020   2019
Interest income:                                        
Loans, including fees $ 28,594   $ 28,621     $ 28,663   $ 26,434   $ 25,398   $ 112,312   $ 101,002
Securities available-for-sale:                                        
Taxable   609     546       589     679     698     2,423     3,289
Tax-exempt   306     364       416     283     345     1,369     1,518
Federal funds sold and other earning assets   303     327       277     602     587     1,509     2,646
Total interest income   29,812     29,858       29,945     27,998     27,028     117,613     108,455
Interest expense:                                        
Deposits   2,580     2,897       3,366     4,754     5,271     13,597     21,915
Borrowings   142     334       249     89     70     816     319
Subordinated debt   584     584       584     584     584     2,334     2,341
Total interest expense   3,306     3,815       4,199     5,427     5,924     16,747     24,575
Net interest income   26,506     26,043       25,746     22,571     21,104     100,866     83,880
Provision for loan losses       2,634       2,850     3,200     685     8,683     2,599
Net interest income after provision for loan losses   26,506     23,409       22,896     19,371     20,419     92,183     81,281
Noninterest income:                                        
Service charges on deposit accounts   1,032     892       709     770     773     3,403     2,902
Gain (loss) on sale of securities, net       (9 )     16             6     34
Mortgage banking   1,331     1,029       931     584     374     3,875     1,566
Investment services   407     359       363     437     261     1,566     946
Insurance commissions   548     560       473     269         1,850    
Interchange and debit card transaction fees   760     868       508     276     163     2,413     628
Merger termination fee                             6,400
Other   898     422       511     482     1,269     2,313     2,839
Total noninterest income   4,976     4,121       3,511     2,818     2,840     15,426     15,315
Noninterest expense:                                        
Salaries and employee benefits   11,516     11,032       10,357     10,006     10,278     42,911     36,635
Occupancy and equipment   2,256     2,186       1,996     1,911     1,749     8,348     6,716
FDIC insurance   297     534       180     180         1,190     140
Other real estate and loan related expense   516     643       346     545     253     2,050     1,320
Advertising and marketing   181     253       202     198     166     834     983
Data processing   592     558       594     538     530     2,281     1,995
Professional services   786     594       868     711     652     2,958     2,375
Amortization of intangibles   571     402       405     362     340     1,740     1,368
Software as service contracts   590     573       561     470     500     2,195     2,195
Merger related and restructuring expenses   702     290       1,477     2,096     427     4,565     3,219
Other   1,946     2,102       1,820     1,776     1,157     7,647     6,205
Total noninterest expense   19,953     19,167       18,806     18,793     16,052     76,719     63,151
Income before income taxes   11,529     8,363       7,601     3,396     7,206     30,890     33,445
Income tax expense   2,499     1,968       1,427     664     473     6,558     6,897
Net income $ 9,030   $ 6,395     $ 6,174   $ 2,732   $ 6,733   $ 24,332   $ 26,548
Earnings per common share:                                        
Basic $ 0.60   $ 0.42     $ 0.41   $ 0.19   $ 0.48   $ 1.63   $ 1.90
Diluted $ 0.59   $ 0.42     $ 0.41   $ 0.19   $ 0.48   $ 1.62   $ 1.89
Weighted average common shares outstanding:                                        
Basic   15,109,298     15,160,579       15,152,768     14,395,103     13,965,877     14,955,423     13,953,497
Diluted   15,182,796     15,210,611       15,202,335     14,479,679     14,066,269     15,019,175     14,046,366
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information – (unaudited) (dollars in thousands) YIELD ANALYSIS
 
    Three Months Ended  
    December 31, 2020   September 30, 2020   December 31, 2019  
    Average         Yield/   Average         Yield/   Average         Yield/  
    Balance   Interest1   Cost1   Balance   Interest1   Cost1   Balance   Interest1   Cost1  
Assets:                                                  
Loans, including fees2   $ 2,401,406   $ 28,506   4.72 % $ 2,410,173   $ 28,508   4.71 % $ 1,876,953   $ 25,350   5.36 %
Loans held for sale     10,191     88   3.45 %   8,048     113   5.57 %   4,548     48   4.19 %
Taxable securities     119,936     609   2.02 %   132,642     546   1.64 %   116,278     698   2.38 %
Tax-exempt securities     90,200     456   2.01 %   88,129     515   2.32 %   59,048     461   3.09 %
Federal funds sold and other earning assets     349,167     303   0.35 %   438,785     327   0.30 %   133,681     587   1.74 %
Total interest-earning assets     2,970,900     29,962   4.01 %   3,077,777     30,009   3.88 %   2,190,508     27,144   4.92 %
Noninterest-earning assets     255,477               262,764               190,083            
Total assets   $ 3,226,377             $ 3,340,541             $ 2,380,591            
                                                   
Liabilities and Stockholders’ Equity:                                                  
Interest-bearing demand deposits   $ 570,326     230   0.16 % $ 509,999     199   0.16 % $ 351,901     486   0.55 %
Money market and savings deposits     903,235     774   0.34 %   833,022     704   0.34 %   632,555     1,695   1.06 %
Time deposits     565,237     1,576   1.11 %   615,714     1,994   1.29 %   633,867     3,090   1.93 %
Total interest-bearing deposits     2,038,798     2,580   0.50 %   1,958,735     2,897   0.59 %   1,618,323     5,271   1.29 %
Borrowings3     99,777     142   0.57 %   319,265     334   0.42 %   30,870     70   0.90 %
Subordinated debt     39,332     584   5.90 %   39,311     584   5.91 %   39,248     584   5.90 %
Total interest-bearing liabilities     2,177,907     3,306   0.60 %   2,317,311     3,815   0.65 %   1,688,441     5,924   1.39 %
Noninterest-bearing deposits     670,820               649,489               363,542            
Other liabilities     23,624               25,834               19,836            
Total liabilities     2,872,351               2,992,634               2,071,819            
Shareholders’ equity     354,026               347,907               308,772            
Total liabilities and shareholders’ equity   $ 3,226,377             $ 3,340,541             $ 2,380,591            
                                                   
Net interest income, taxable equivalent         $ 26,656             $ 26,194             $ 21,220      
Interest rate spread               3.41 %             3.22 %             3.52 %
Tax equivalent net interest margin               3.57 %             3.39 %             3.84 %
                                                   
Percentage of average interest-earning assets to average interest-bearing liabilities               136.41 %             132.82 %             129.74 %
Percentage of average equity to average assets               10.97 %             10.41 %             12.97 %

1 Taxable equivalent 2 Includes average balance of $296,337 and $295,045 in PPP loans for the quarters ended December 31, 2020 and September 30, 2020, respectively. 3 Includes average balance of $18,092 and $237,780 in Paycheck Protection Program Liquidity Facility (“PPPLF”) funding for the quarters ended December 31, 2020 and September 30, 2020, respectively.

 
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information – (unaudited) (dollars in thousands) YIELD ANALYSIS
 
    Year Ended
    December 31, 2020   December 31, 2019  
    Average         Yield/   Average         Yield/  
    Balance   Interest1   Cost1   Balance   Interest1   Cost1  
Assets:                                    
Loans, including fees2   $ 2,289,612   $ 111,992     4.89 % $ 1,836,963   $ 100,831   5.49 %
Loans held for sale     7,360     320     4.34 %   3,858     171   4.43 %
Taxable securities     122,900     2,423     1.97 %   129,705     3,289   2.54 %
Tax-exempt securities     83,765     1,941     2.32 %   56,458     1,972   3.49 %
Federal funds sold and other earning assets     308,843     1,509     0.49 %   110,380     2,646   2.40 %
Total interest-earning assets     2,812,480     118,185     4.20 %   2,137,364     108,909   5.10 %
Noninterest-earning assets     250,955                 201,976            
Total assets   $ 3,063,435               $ 2,339,340            
                                     
Liabilities and Stockholders’ Equity:                                    
Interest-bearing demand deposits   $ 481,050     1,013     0.21 % $ 333,100     1,883   0.57 %
Money market and savings deposits     788,006     3,482     0.44 %   651,855     7,827   1.20 %
Time deposits     641,647     9,102     1.42 %   635,451     12,205   1.92 %
Total interest-bearing deposits     1,910,703     13,597     0.71 %   1,620,406     21,915   1.35 %
Borrowings3     177,204     816     0.46 %   21,526     319   1.48 %
Subordinated debt     39,301     2,334     5.94 %   39,216     2,341   5.97 %
Total interest-bearing liabilities     2,127,208     16,747     0.79 %   1,681,148     24,575   1.46 %
Noninterest-bearing deposits     571,282                 343,611            
Other liabilities     23,775                 15,852            
Total liabilities     2,722,265                 2,040,611            
Shareholders’ equity     341,170                 298,729            
Total liabilities and shareholders’ equity   $ 3,063,435               $ 2,339,340            
                                     
Net interest income, taxable equivalent         $ 101,438               $ 84,334      
Interest rate spread                 3.41 %             3.64 %
Tax equivalent net interest margin                 3.61 %             3.95 %
                                     
Percentage of average interest-earning assets to average interest-bearing liabilities                 132.21 %             127.14 %
Percentage of average equity to average assets                 11.14 %             12.77 %

1 Taxable equivalent 2 Includes average balance of $201,470 in PPP loans for the twelve months ended December 31, 2020. 3 Includes average balance of $91,190 in PPPLF funding for the twelve months ended December 31, 2020.

 
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information – (unaudited) (dollars in thousands)
 
    As of and for The Three Months Ended  
    Dec   Sep   Jun   Mar   Dec  
    2020   2020   2020   2020   2019  
Composition of Loans:                                
Commercial real estate                                
owner occupied   $ 463,771   $ 467,569   $ 464,073   $ 473,398   $ 429,269  
non-owner occupied     549,205     563,082     552,958     535,637     476,038  
Commercial real estate, total     1,012,976     1,030,651     1,017,031     1,009,035     905,307  
Commercial & industrial     634,446     644,498     637,450     377,173     337,075  
Construction & land development     278,075     275,172     279,216     253,445     227,626  
Consumer real estate     443,930     440,310     459,861     482,728     417,481  
Consumer and other     12,816     13,426     14,726     16,866     9,903  
Total loans   $ 2,382,243   $ 2,404,057   $ 2,408,284   $ 2,139,247   $ 1,897,392  
                                 
Asset Quality and Additional Loan Data:                                
Nonperforming loans   $ 5,782   $ 2,248   $ 3,776   $ 3,069   $ 3,350  
Other real estate owned     4,619     3,932     5,524     5,894     1,757  
Total nonperforming assets   $ 10,401   $ 6,180   $ 9,300   $ 8,963   $ 5,107  
Restructured loans not included in nonperforming loans   $ 257   $ 8   $ 9   $ 9   $ 61  
Net charge-offs to average loans (annualized)     0.08 %   0.01 %   %   %   0.01 %
Allowance for loan losses to loans     0.77 %   0.78 %   0.67 %   0.63 %   0.54 %
Nonperforming loans to total loans, gross     0.24 %   0.09 %   0.16 %   0.14 %   0.18 %
Nonperforming assets to total assets     0.31 %   0.18 %   0.28 %   0.31 %   0.21 %
Acquired loan fair value discount balance   $ 14,467   $ 15,141   $ 16,187   $ 17,237   $ 15,348  
Accretion income on acquired loans     768     960     888     1,841     1,375  
PPP net fees deferred balance     4,190     6,348     8,582          
PPP net fees recognized     2,157     1,812     1,909          
                                 
Capital Ratios:                                
Equity to Assets     10.81 %   10.33 %   10.52 %   11.70 %   12.77 %
Tangible common equity to tangible assets (Non-GAAP)1     8.41 %   7.97 %   8.09 %   8.96 %   9.93 %
                                 
SmartFinancial, Inc.2                                
Tier 1 leverage     8.69 %   8.78 %   8.83 %   10.28 %   10.34 %
Common equity Tier 1     11.61 %   11.33 %   10.92 %   10.87 %   11.61 %
Tier 1 capital     11.61 %   11.33 %   10.92 %   10.87 %   11.61 %
Total capital     14.07 %   13.81 %   13.25 %   13.13 %   14.02 %
                                 
SmartBank     Estimated3                          
Tier 1 leverage     9.58 %   9.74 %   9.82 %   11.42 %   11.41 %
Common equity Tier 1     12.79 %   12.57 %   12.14 %   12.05 %   12.81 %
Tier 1 risk-based capital     12.79 %   12.57 %   12.14 %   12.05 %   12.81 %
Total risk-based capital     13.57 %   13.37 %   12.82 %   12.62 %   13.31 %

1Total common equity less intangibles divided by total assets less intangibles. See reconciliation of Non-GAAP measures. 2All periods presented are estimated. 3 Current period capital ratios are estimated as of the date of this earnings release.

 
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information – (unaudited) (dollars in thousands except share and per share data)
 
  As of and for The     As of and for The  
  Three Months Ended     Year Ended  
  Dec   Sep   Jun   Mar   Dec     Dec   Dec  
  2020   2020   2020   2020   2019     2020   2019  
Selected Performance Ratios (Annualized):                                            
Return on average assets   1.11 %   0.76 %   0.79 %   0.43 %   1.12 %     0.79 %   1.13 %
Return on average shareholders’ equity   10.15 %   7.31 %   7.31 %   3.33 %   8.65 %     7.13 %   8.89 %
Return on average tangible common equity¹   13.43 %   9.72 %   9.80 %   4.41 %   11.55 %     9.50 %   12.04 %
Noninterest income / average assets   0.61 %   0.49 %   0.45 %   0.44 %   0.47 %     0.50 %   0.65 %
Noninterest expense / average assets   2.46 %   2.28 %   2.41 %   2.96 %   2.68 %     2.50 %   2.70 %
Efficiency ratio   63.38 %   63.54 %   64.28 %   74.02 %   67.04 %     65.97 %   63.66 %
                                             
Operating Selected Performance Ratios (Annualized):                                            
Operating return on average assets1   1.14 %   0.79 %   0.93 %   0.67 %   1.08 %     0.89 %   1.01 %
Operating PTPP return on average assets1   1.45 %   1.35 %   1.53 %   1.37 %   1.31 %     1.43 %   1.39 %
Operating return on average shareholders’ equity1   10.34 %   7.57 %   8.58 %   5.22 %   8.34 %     8.02 %   7.91 %
Operating return on average tangible common equity1   13.69 %   10.06 %   11.51 %   6.90 %   11.12 %     10.67 %   10.71 %
Operating efficiency ratio1   60.86 %   62.25 %   58.95 %   65.46 %   64.95 %     61.75 %   64.29 %
Operating noninterest income / average assets1   0.56 %   0.49 %   0.45 %   0.44 %   0.35 %     0.49 %   0.35 %
Operating noninterest expense / average assets1   2.37 %   2.25 %   2.23 %   2.63 %   2.56 %     2.36 %   2.55 %
                                             
Selected Interest Rates and Yields:                                            
Yield on loans   4.72 %   4.71 %   4.87 %   5.35 %   5.36 %     4.89 %   5.49 %
Yield on earning assets, FTE   4.01 %   3.88 %   4.22 %   4.83 %   4.92 %     4.20 %   5.10 %
Cost of interest-bearing deposits   0.50 %   0.59 %   0.71 %   1.10 %   1.29 %     0.71 %   1.35 %
Cost of total deposits   0.38 %   0.44 %   0.54 %   0.91 %   1.06 %     0.55 %   1.12 %
Cost of interest-bearing liabilities   0.60 %   0.65 %   0.77 %   1.20 %   1.39 %     0.79 %   1.46 %
Net interest margin, FTE   3.57 %   3.39 %   3.63 %   3.90 %   3.84 %     3.61 %   3.95 %
                                             
Per Common Share:                                            
Net income, basic $ 0.60   $ 0.42   $ 0.41   $ 0.19   $ 0.48     $ 1.63   $ 1.90  
Net income, diluted   0.59     0.42     0.41     0.19     0.48       1.62     1.89  
Operating earnings, basic¹   0.61     0.44     0.48     0.30     0.46       1.83     1.69  
Operating earnings, diluted¹   0.61     0.44     0.48     0.30     0.46       1.82     1.68  
Book value   23.64     22.96     22.57     22.09     22.33       23.64     22.33  
Tangible book value¹   17.92     17.27     16.90     16.40     16.82       17.92     16.82  
Common shares outstanding   15,107,214     15,233,227     15,216,932     15,221,990     14,008,233       15,107,214     14,008,233  

¹See reconciliation of Non-GAAP measures

 
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information – (unaudited) (dollars in thousands) NON-GAAP RECONCILIATIONS
 
    Three Months Ended     Year Ended  
    Dec   Sep   Jun   Mar   Dec     Dec   Dec  
    2020   2020   2020   2020   2019     2020   2019  
Operating Earnings:                                              
Net income (GAAP)   $ 9,030     $ 6,395     $ 6,174     $ 2,732     $ 6,733       $ 24,332     $ 26,548    
 Noninterest income:                                              
 Securities gains (losses), net           9       (16 )                   (6 )     (34 )  
 ADECA termination proceeds     (465 )                       (720 )       (465 )     (720 )  
 Merger termination fee                                           (6,400 )  
Noninterest expenses:                                              
 Salaries – prior year adjustment                             603               603    
 Merger related and restructuring expenses     702       290       1,477       2,096       427         4,565       3,219    
 Other – prior year franchise tax true-up                             (312 )             (312 )  
Income taxes:                                              
 Tax benefit – prior year amended return                             (304 )             (304 )  
Income tax effect of adjustments     (62 )     (77 )     (382 )     (548 )     60         (1,071 )     1,015    
Operating earnings (Non-GAAP)   $ 9,205     $ 6,617     $ 7,253     $ 4,280     $ 6,487       $ 27,355     $ 23,615    
Operating earnings per common share (Non-GAAP):                                              
 Basic   $ 0.61     $ 0.44     $ 0.48     $ 0.30     $ 0.46       $ 1.83     $ 1.69    
 Diluted     0.61       0.44       0.48       0.30       0.46         1.82       1.68    
                                               
Operating Noninterest Income:                                              
 Noninterest income (GAAP)   $ 4,976     $ 4,121     $ 3,511     $ 2,818     $ 2,840       $ 15,426     $ 15,315    
 Securities gains (losses), net           9       (16 )                   (6 )     (34 )  
 ADECA termination proceeds     (465 )                       (720 )       (465 )     (720 )  
 Merger termination fee                                           (6,400 )  
 Operating noninterest income (Non-GAAP)   $ 4,511     $ 4,130     $ 3,495     $ 2,818     $ 2,120       $ 14,955     $ 8,161    
 Operating noninterest income (Non-GAAP)/average assets1     0.56   %   0.49   %   0.45   %   0.44   %   0.35   %     0.49   %   0.35   %
                                               
Operating Noninterest Expense:                                              
 Noninterest expense (GAAP)   $ 19,953     $ 19,167     $ 18,806     $ 18,793     $ 16,052       $ 76,719     $ 63,151    
 Salaries – prior year adjustment                             (603 )             (603 )  
 Merger related and restructuring expenses     (702 )     (290 )     (1,477 )     (2,096 )     (427 )       (4,565 )     (3,219 )  
 Other – prior year franchise tax true-up                             312               312    
 Operating noninterest expense (Non-GAAP)   $ 19,251     $ 18,877     $ 17,329     $ 16,697     $ 15,334       $ 72,154     $ 59,641    
 Operating noninterest expense (Non-GAAP)/average assets2     2.37   %   2.25   %   2.23   %   2.63   %   2.56   %     2.36   %   2.55   %
                                               
Operating Pre-tax Pre-provision (“PTPP”) Earnings:                                              
 Net interest income (GAAP)   $ 26,506     $ 26,043     $ 25,746     $ 22,571     $ 21,104       $ 100,866     $ 83,880    
 Operating noninterest income     4,511       4,130       3,495       2,818       2,120         14,955       8,161    
 Operating noninterest expense     (19,251 )     (18,877 )     (17,329 )     (16,697 )     (15,334 )       (72,154 )     (59,641 )  
 Operating PTPP earnings (Non-GAAP)   $ 11,766     $ 11,296     $ 11,912     $ 8,692     $ 7,890       $ 43,667     $ 32,400    
                                               
Non-GAAP Return Ratios:                                              
 Operating return on average assets (Non-GAAP)3     1.14   %   0.79   %   0.93   %   0.67   %   1.08   %     0.89   %   1.01   %
 Operating PTPP return on average assets (Non-GAAP)4     1.45   %   1.35   %   1.53   %   1.37   %   1.31   %     1.43   %   1.39   %
 Return on average tangible common equity (Non-GAAP)5     13.43   %   9.72   %   9.80   %   4.41   %   11.55   %     9.50   %   12.04   %
 Operating return on average shareholder equity (Non-GAAP)6     10.34   %   7.57   %   8.58   %   5.22   %   8.34   %     8.02   %   7.91   %
 Operating return on average tangible common equity (Non-GAAP)7     13.69   %   10.06   %   11.51   %   6.90   %   11.12   %     10.67   %   10.71   %
                                               
Operating Efficiency Ratio:                                              
 Efficiency ratio (GAAP)     63.38   %   63.54   %   64.28   %   74.02   %   67.04   %     65.97   %   63.66   %
 Adjustment for taxable equivalent yields     (0.30 ) %   (0.32 ) %   (0.34 ) %   (0.34 ) %   (0.33 ) %     (0.33 ) %   (0.29 ) %
 Adjustment for securities gains (losses)       %   0.02   %   (0.04 ) %     %     %     (0.01 ) %   (0.02 ) %
 Adjustment for merger related income and costs     (2.22 ) %   (0.99 ) %   (4.95 ) %   (8.21 ) %   (1.76 ) %     (3.88 ) %   0.94   %
 Operating efficiency ratio (Non-GAAP)     60.86   %   62.25   %   58.95   %   65.46   %   64.95   %     61.75   %   64.29   %

1Operating noninterest income (Non-GAAP) is annualized and divided by average assets. 2Operating noninterest expense (Non-GAAP) is annualized and divided by average assets. 3Operating return on average assets (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average assets. 4Operating PTPP return on average assets (Non-GAAP) is the annualized operating PTPP earnings (Non-GAAP) divided by average assets. 5Return on average tangible common equity (Non-GAAP) is the annualized net income divided by average tangible common equity (Non-GAAP). 6Operating return on average equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average equity. 7Operating return on average tangible common equity (Non-GAAP) is the annualized operating earnings (Non-GAAP) divided by average tangible common equity (Non-GAAP).

 
SmartFinancial, Inc. and Subsidiary Condensed Consolidated Financial Information – (unaudited) (dollars in thousands) NON-GAAP RECONCILIATIONS
 
    Three Months Ended   Year Ended
    Dec   Sep   Jun   Mar   Dec   Dec   Dec
    2020   2020   2020   2020   2019   2020   2019
Tangible Common Equity:                                          
Shareholders’ equity (GAAP)   $ 357,168     $ 349,789     $ 343,488     $ 336,200     $ 312,747     $ 357,168     $ 312,747  
Less goodwill and other intangible assets     86,471       86,710       86,327       86,503       77,193       86,471       77,193  
Tangible common equity (Non-GAAP)   $ 270,697     $ 263,079     $ 257,161     $ 249,697     $ 235,554     $ 270,697     $ 235,554  
                                           
Average Tangible Common Equity:                                          
Average shareholders’ equity (GAAP)   $ 354,026     $ 347,907     $ 339,861     $ 329,692     $ 308,772     $ 341,170     $ 298,729  
Less average goodwill and other intangible assets     86,561       86,206       86,484       80,370       77,400       84,913       78,270  
Average tangible common equity (Non-GAAP)   $ 267,465     $ 261,701     $ 253,377     $ 249,322     $ 231,372     $ 256,257     $ 220,459  
                                           
Tangible Book Value per Common Share:                                          
Book value per common share (GAAP)   $ 23.64     $ 22.96     $ 22.57     $ 22.09     $ 22.33     $ 23.64     $ 22.33  
Adjustment due to goodwill and other intangible assets     (5.72 )     (5.69 )     (5.67 )     (5.69 )     (5.51 )     (5.72 )     (5.51 )
Tangible book value per common share (Non-GAAP)1   $ 17.92     $ 17.27     $ 16.90     $ 16.40     $ 16.82     $ 17.92     $ 16.82  
                                           
Tangible Common Equity to Tangible Assets:                                          
Total Assets   $ 3,304,949     $ 3,387,588     $ 3,265,985     $ 2,873,715     $ 2,449,123     $ 3,304,949     $ 2,449,123  
Less goodwill and other intangibles     86,471       86,710       86,327       86,503       77,193       86,471       77,193  
Tangible Assets (Non-GAAP):   $ 3,218,478     $ 3,300,878     $ 3,179,658     $ 2,787,212     $ 2,371,930     $ 3,218,478     $ 2,371,930  
Tangible common equity to tangible assets (Non-GAAP)     8.41 %     7.97 %     8.09 %     8.96 %     9.93 %     8.41 %     9.93 %

1Tangible book value per share is computed by dividing total stockholder’s equity, less goodwill and other intangible assets by common shares outstanding.

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Falls Fintech to Launch Cohort 3

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SIOUX FALLS, S.D., Feb. 26, 2021 /PRNewswire-PRWeb/ — Falls Fintech, the fintech accelerator founded by Central Payments in 2019, is excited to announce the five companies that make up its third cohort of fintech startups. The 12 week program kicks off on March 1, 2021. Falls Fintech is a business accelerator program geared towards early-stage fintech companies and concludes with a partnership with Central Payments.

“Our third cohort of entrepreneurs are developing fresh approaches to user experience and technology in order to bring greater transparency and cost savings to financial activities. Our Falls Fintech team is eager to spend time working alongside these companies and help prepare them for market launch,” said Nikkee Rhody, Managing Director of Falls Fintech.

This Falls Fintech session will once again have an Entrepreneur in Residence (EIR) who has already overcome many of the challenges of starting a company and can collaborate with other fintech founders. Cohort 3 EIRs are Karen Rios and Corey Beebe, founders of Lifesaver. As the EIRs, Lifesaver will take part in the Falls Fintech curriculum, mentor other cohort participants, and simultaneously integrate with Central Payments for a market launch soon after completion of the spring session.

Trent Sorbe, President and Founder of Central Payments and Co-Founder of Falls Fintech, said “We're delighted about the opportunity to support the next generation of financial services companies and look forward to bringing their innovative products to market at the end of their Falls Fintech experience through Central Payments.”

All are welcome to join the virtual watch party to meet and hear from the spring 2021 cohort. Register here:
https://us02web.zoom.us/webinar/register/WN_8KN2ACyKQIW_Lbo2WeJZcg
Thursday, March 3, 3:00pm4:00pm CST

The full line-up of impressive participants in cohort 3 are:

1) Lifesaver
CEO: Karen Rios
CTO: Corey Beebe
HQ: New York, NY
GetLifesaver.com
Lifesaver is the universal banking platform that prioritizes financial health for consumers and automates cross-selling for banks.

2) Draft Fuel
CEO: Tom Mangan
COO: Alex Cullingford
HQ: Philadelphia, PA
Draftfuel.com
DraftFuel is a bankroll management app that connects to a user's existing bank accounts and credit cards for the purpose of monitoring and rounding-up to save the spare change from their daily purchases. It also allows users to save a fixed percentage of their bank deposits into an app-integrated, re-loadable, pre-paid virtual debit card to connect and play with on their favorite gaming platforms (Ex: Draftkings, Fanduel, BetMGM, etc.).

3) Frich
CEO: Katrin Kaurov
CPO: Aleksandra Medina
HQ: New York, NY
Getfrich.com
Frich is the first social finance app using gamification and social media elements that empower Gen Z to take control of their social life spending through goal setting with friends.

4) Frugl
CEO: Michael Gauthier
HQ: Toronto, CAN
Frugl.ca
Frugl gives you more confidence in your financial future by empowering you to automatically put away more savings, in ways that work for your lifestyle.

5) Slyde
CEO: David Gertner
President: Ben Gertner
HQ: Boston, MA
Slydemoney.com
Slyde is a consumer fintech company saving users time and money on bill and subscription payments. We make it easy to track, manage, and pay recurring bills and subscriptions from a single place while helping users avoid unnecessary fees and take control of their financial lives.

About the Program: Falls Fintech is a custom, 12-week program designed to accelerate market readiness for early-stage financial technology startups. The high-intensity curriculum is delivered by a distinguished group of payments, technology, and banking professionals. In addition to a financial investment of $15,000, at the conclusion of Falls Fintech, successful companies will have completed all the necessary steps to come to market with a bank partnership and access to the payments ecosystem through Central Payments and its Open*CP platform.

About Central Payments and Central Bank of Kansas City
Central Payments is the payments subsidiary of Central Bank of Kansas City (CBKC) and is headquartered in Dell Rapids, South Dakota. Central Payments administers payment card and funds disbursement programs via retail, employer/payroll, and online outlets nationwide through Open*CP Fintech API Marketplace, one of the only true bank-as-a-service payments platforms and the technology responsible for Central Payments' rise to the fastest growing prepaid card issuer since 2015.*

CBKC is a 68-year-old family-owned bank located in the heart of Kansas City, Missouri and one of 135 financial institutions in the country certified by the U.S. Treasury as a Community Development Financial Institution. CBKC and Central Payments share the mission to provide high-quality financial products to consumers of modest means who historically have not enjoyed the benefits of affordable and accessible financial services. “Treat Each Customer's Balance as Though It's All They Have” guides our approach to product design, customer service, and affordability. Visit central-payments.com, fallsfintech.com, or centralbankkc.com for more information. Member FDIC.

  • Source: The Nilson Report, 2015 to 2019.

Media Contact

Nikkee Rhody, Falls Fintech, +1 (605)521-7080, [email protected]

Melissa Otten, Central Payments, (605)354-5451, [email protected]

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SOURCE Falls Fintech

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SWBC Named Best Companies to Work for in Texas

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SAN ANTONIO, Feb. 26, 2021 /PRNewswire/ — SWBC is excited to announce that it was recently named as one of the 2021 Best Companies to Work for in Texas. The awards program is a project of the Texas Association of Business (TAB), Texas Society for Human Resource Management, and Best Companies Group. This statewide survey and awards program was designed to identify, recognize, and honor the best places of employment in Texas, benefiting the state's economy, workforce, and businesses. The 2021 Best Companies to Work for in Texas list is made up of 100 companies.

With this news, and growth in a number of our divisions, SWBC is looking to fill more than 150 full- and part-time positions across the company, with the majority of the positions based in San Antonio.

Current openings include the following areas – just to name a few:
Claims  
Collections                                                                 
Customer Service  
Information Technology   
Mortgage      
PEO                                            

Benefits include:
Generous 401(k) match
Lucrative wellness programs
Excellent corporate culture and work environment
Professional development and growth opportunities
Tuition reimbursement program

Interviews for open positions will be conducted via phone or video. SWBC has put in place a number of significant measures in collaboration with medical professionals to ensure the safety of our applicants and employees during the COVID-19 pandemic, and will continue to follow the guidelines set forth by our local government and the Center for Disease Control (CDC).

We encourage individuals looking to start or grow their career to visit swbc.com/careers for a list of all available openings and to apply online.

About SWBC
As a diversified financial services company, SWBC provides financial institutions, businesses, and individuals a wide range of services, including insurance, mortgages, wealth management, employee benefits, and more. Headquartered in San Antonio, Texas, SWBC has partners and divisions across all 50 states and manages business around the world. No matter how wide its reach, SWBC always listens to its customers' needs, analyzes their current situations, and recommends customized solutions. For more information about our innovative approach to personalized service, visit SWBC's website at swbc.com.

Cision View original content to download multimedia:http://www.prnewswire.com/news-releases/swbc-named-best-companies-to-work-for-in-texas-301236603.html

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FICO Launches Small Business Credit Score with Quod in Brazil

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SAO PAULO, Feb. 26, 2021 /PRNewswire/ — Today, FICO, a global predictive analytics and decision management software leader, and Quod, one of the largest data intelligence companies in Brazil, jointly launched a solution for credit risk assessment of small and medium-sized companies (SMEs). To perform the analysis, the Quod Score PJ PME by FICO uses innovative data sources, such as data from the Positive Credit Registry and information about the company and its partners, designed to be in full compliance with the General Data Protection Law (LGPD).

FICO_Logo

Similar to a consumer credit score, the Quod Score PJ PME by FICO converts the SME's credit profile data into a numerical score that is designed to predict the probability of future payment. Based on the characteristics of the company and its partners, it incorporates registration data and credit behavior data to refine the risk forecast – its integrated vision adds value, making analysis faster and more accurate.

The solution can be applied to SME credit products, loans, and leases across the life cycle from acquisition and account management to collections as well as cross-selling.

“As we expand into additional countries, FICO brings a depth of global analytic and scoring experience to enable faster, more precise credit decisions.  With the introduction of Quod Score PJ PME by FICO, we continue to safely expand credit access for small and medium-sized businesses in this key region,” says Alexandre Graff, vice president and general manager of FICO Latin America and the Caribbean.

“Small and medium-sized companies are of great importance for job creation and the economy's resumption. However, the credit risk assessment process of these companies can often be expensive and time-consuming, which means that many loans are denied. In this scenario, the Quod Score PJ PME by FICO acts in an agile and consistent manner, enabling creditors to expand their SME credit portfolios and control risk with confidence,” says Ricardo Thomaziello, Chief Data Officer at Quod.

The new score launch in Brazil further highlights FICO's global innovation and momentum.  FICO is now present in over 30 countries including Mexico, the Philippines, African countries, India, and additional countries around the world.

About FICO
A world leader in predictive analysis software, FICO specializes in examining data and applying technologies such as artificial intelligence, machine learning and analytics to predict consumer behavior, optimizing companies' interactions with their customers. Operating in more than 100 countries, the company has developed a cloud platform that contributes to making more than 10 billion business decisions a year and that protects 2.6 billion cards against fraud. FICO brings together more than 195 global patents on technologies that increase profitability and customer satisfaction, contributing to the growth of companies in various segments, such as finance, insurance, retail, telecommunications, among others. Founded in 1956 and headquartered in Silicon Valley, FICO opened its office in Brazil in 1998.

About Quod
Quod is one of the largest data intelligence companies in Brazil, authorized by the Central Bank to operate the Positive Data. Combining a large data set of its own, partner's data and cutting-edge technology, the company develops decision-making solutions for several purposes: customer prospecting, credit risk management, customer portfolio management, fraud prevention, compliance and collections intelligence. The company started operations in late 2018 and serves customers from all sectors of the economy, including financial institutions, insurance companies, retailers, telecommunications operators and small and medium-sized companies.

Cision View original content:http://www.prnewswire.com/news-releases/fico-launches-small-business-credit-score-with-quod-in-brazil-301236602.html

SOURCE FICO

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