SmartBank Announces Sale of Richmond Assets to Virginia-based First Bank

KNOXVILLE, Tennessee, September 30, 2021 (GLOBE NEWSWIRE) – SmartBank (the “Bank”), a subsidiary of SmartFinancial, Inc. (“SmartFinancial” or the “Company”; NASDAQ: SMBK), announced today that it has entered into a purchase and acquisition agreement dated September 30, 2021 to sell a portfolio of loans and certain assets related to its Richmond, Virginia branch to First Bank, based in Strasburg, Virginia.

The terms of the purchase and acquisition agreement provide that First Bank will acquire approximately $ 83 million in loans and essentially all of the capital goods related to the bank’s Richmond branch, and First Bank will also take over the lease. The bank receives a premium based on a percentage of the loans sold, and the purchase of fixed assets is made at book value. In addition, SmartBank employees in the Richmond branch will become First Bank employees. SmartBank will not transfer any deposit liabilities to First Bank in connection with the transaction and SmartBank has notified relevant banking authorities that it intends to close the branch on December 31, 2021.

“While we saw the opportunity in the Richmond market area, we felt it was necessary to focus on our presence in the Southeast, and in particular the new markets we added with our recent lift-outs,” said Billy Carroll, President and SmartBank CEO. “We have tremendous momentum with our recently announced hires in Auburn, Dothan, Montgomery and Birmingham, Alabama, and we want to focus our expansion efforts there. First Bank is a great organization and will serve these Richmond customers well. “

The company does not anticipate that the sale will result in significant gains or charges upon completion. The sale of the loans and certain assets to First Bank is complete and First Bank’s takeover of the lease and acquisition of the remaining assets is expected to close in the fourth quarter, subject to customary closing conditions. The branch will continue to operate as a SmartBank branch until the branch closes on December 31, 2021.

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About SmartFinancial, Inc.

SmartFinancial, Inc., based in Knoxville, Tennessee, is the bank holding company for SmartBank. Founded in 2007, SmartBank is a full-service commercial bank with offices in Tennessee, Alabama and the Florida Panhandle. Recruiting the best people, exceptional customer service, strategic offices and acquisitions, and a disciplined approach to lending have all contributed to SmartBank’s success. For more information on SmartFinancial, please visit its website: www.smartfinancialinc.com.

Forward-Looking Statements

This press release may contain statements based on management’s current beliefs or expectations about future events or future results that may be considered forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. These statements are not historical in nature and can generally be replaced by words such as “may”, “believe”, “expect”, “anticipate”, “intend”, “will”, “should”, “plan”, “estimate” , “Predict”, ”“ further ”and“ potentially ”or the negative of these terms or other comparable terminology. All forward-looking statements are subject to risks, uncertainties and other factors that could cause actual results of SmartFinancial to differ materially from future results expressed or implied in such forward-looking statements. These risks, uncertainties and other factors include, but are not limited to, (1) risks associated with our growth strategy, including failure to execute our growth plans or the inability to effectively manage our growth; (2) Claims and legal disputes arising from our business operations and from the companies we have acquired that may relate to contractual issues, environmental laws, fiduciary responsibility and other matters; (3) the risk that cost savings and revenue synergies from recent acquisitions may not be realized or may take longer than expected; (4) Interruption due to recently completed acquisitions with customers, suppliers, employees or other business relationships; (5) our ability to successfully integrate the businesses acquired through previous acquisitions with SmartBank’s business; (6) risks related to our recent acquisition of Sevier County Bancshares, Inc. (“SCB”); (7) the risk that the expected benefits from the proposed acquisition of SCB will not be realized in the expected timeframe; (8) changes in management’s plans for the future; (9) prevailing or changing economic or political conditions, especially in our market areas; (10) credit risk associated with our lending business; (11) changes in interest rates, credit demand, property value, or competition; (12) changes in accounting policies, guidelines, or guidelines; (13) changes in any applicable law, rule, or regulation, including changes in any law, regulation, or government policy or practice, as a result of or in response to COVID-19; (14) adverse results from any current or future litigation, regulatory review, or other legal and / or regulatory action, including as a result of Company 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 loan loss provisions as a result of the COVID-19 pandemic; and (17) other general competitive, economic, political and market factors, including those that affect our business, operations, prices, 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, each filed with or transmitted to the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website (www.sec.gov). You should not place undue reliance on forward-looking statements. SmartFinancial disclaims any obligation to update or revise any forward-looking statements in this press release that speak only as of the date of this release, whether as a result of new information, future events, or otherwise.