SmartFinancial : Fourth Quarter 2021 Earnings Call Presentation

INVESTOR CALL

4Q 2021

January 25, 2022, 10:00am ET

Webcast: www.smartbank.com (Investor Relations)

Audio Only: 1-844-200-6205

Access Code: 574606

Miller Welborn

Chairman of the Board

Billy Carroll

President & CEO

Ron Gorczynski

CFO

DISCLOSURES

Forward-Looking Statements

This presentation 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 effects of the COVID-19 pandemic on SmartFinancial Inc.'s ("Smartfinancial") 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) the risk of litigation and reputational risk associated with historic acquisition activity;

1. the risk that cost savings and revenue synergies from recently completed acquisitions may not be realized or may take longer than anticipated to realize; (3) disruption from recently completed acquisitions with customer, supplier, employee, or other business relationships; (4) our ability to successfully integrate the businesses acquired as part of previous acquisitions with the business of SmartBank; (5) risks related to the acquisition of Sevier County Bancshares, Inc. ("SCB"); (6) the risk that the anticipated benefits from the acquisition of SCB may not be realized in the time frame anticipated; (7) changes in management's plans for the future; (8) prevailing, or changes in, economic or political conditions, particularly in our market areas; (9) credit risk associated with our lending activities; (10) changes in interest rates, loan demand, real estate values, or competition; (11) changes in accounting principles, policies, or guidelines; (12) 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 and related variants; (13) 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 and related variants;

1. the impact of the COVID-19 pandemic and related variants on the Company's assets, business, cash flows, financial condition, liquidity, prospects and results of operations; (15) potential increases in the provision for loan losses resulting from the COVID-19 pandemic and related variants; and (16) 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.

Non-GAAP Financial Measures

Statements included in this presentation include 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 return on average shareholder equity, (iv) return on average tangible common equity,

1. operating return on average tangible common equity, (vi) operating efficiency ratio; (vii) tangible common equity; (viii) average tangible common equity; (ix) tangible book value; (x) operating pre-taxpre-provision earnings; (xi) operating noninterest income; (xii) operating noninterest expense; (xiii) tangible assets; and ratios derived therefrom, in its analysis of the company's performance. Operating earnings excludes the following from net income: securities gains and losses, proceeds related to the termination of an Alabama Department of Economic and Community Affairs ("ADECA") loan program, merger related and restructuring expenses, and the income tax effect of adjustments. Operating return on average assets is the annualized operating earnings (Non-GAAP) divided by average assets. Operating return on average shareholder equity is the annualized operating earnings (Non-GAAP) divided by average equity. Return on average tangible common equity is the annualized net income divided by average tangible common equity (Non-GAAP). Operating return on average tangible common equity is the annualized operating earnings (Non-GAAP) 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. Tangible common equity and average tangible common equity exclude goodwill and other intangible assets from shareholders' equity and average shareholders' equity. Tangible book value excludes goodwill and other intangible assets less shareholders' equity divided by common shares outstanding. Operating pre-taxpre-provision earnings is net interest income plus operating noninterest income (Non-GAAP) less operating noninterest expense (Non-GAAP). Operating noninterest income excludes the following from noninterest income: securities gains and losses, proceeds related to the termination of the ADECA loan program. 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 assets excludes goodwill and other intangibles from total assets. 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.

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2021 ACHIEVEMENTS: A ROBUST

SIGNIFICANT YEAR OF STRATEGIC INVESTMENT:

ACQUISITION:

• SIGNIFICANTLY ENHANCED SEVIER COUNTY MARKET DENSITY
• BETTER THAN PROJECTED OPERATIONAL EFFICIENCIES

YEAR OF PROGRESS

BY THE NUMBERS: 2021 VS. 2020

$ in Millions, except per share data

	$4,612	$2,641
$3,305		26%
40%	$2,093

ACQUISITION

• NEW, HIGHLY PROFITABLE EQUIPMENT FINANCE DIVISION

ENHANCED BUSINESS GENERATION FIREPOWER

• 25+ SENIOR BANKING LIFT-OUTSACROSS MULTIPLE MARKETS:

	AUBURN, AL (New Market)		MONTGOMERY, AL (New Market)
	BIRMINGHAM, AL (New Market)		MOBILE, AL (New Market)
 COASTAL, FL	 NASHVILLE, TN
	DOTHAN, AL (New Market)		TALLAHASSEE, FL (New Market)

TALENTED FLOOR PLAN LENDING DIVISION

• NEW BUSINESS LINE SUPPORTED BY 61+ YEARS OF COMBINED EXPERIENCE

SUBSTANTIAL WEALTH MANAGEMENT EXPANSION

1. • ADDED THREE SENIOR WEALTH ADVISORS MANAGING ~$350 MILLION AUM1
2. Relationship management stats at previous place of employment immediately prior to joining SmartBank; Assets Under Management (AUM)
3. For a reconciliation of Non-GAAP financial measures to their most directly comparable GAAP measures, see the Appendix
4. Loans and leases excludes SBA PPP loans and includes loans and leases from Sevier County Bank and Fountain Equipment Finance acquisitions

2020Y2021Y

ASSETS

$289

82%

$52

2020Y2021Y

SBA PPP LOANS

$2.39

$1.82	31%

2020Y2021Y

2

OPERATING EPS

0.98%

9bps

0.89%

2020Y2021Y

2

OPERATING ROAA

2020Y2021Y

3

LOANS AND LEASES (EX. PPP)

$4,022

$2,805	43%

2020Y2021Y

DEPOSITS

$19.26

7%

$17.92

2020Y2021Y

2

TBV PER SHARE

12.8%

210bps

10.7%

2020Y	2021Y		3
		2

OPERATING ROATCE

SMARTFINANCIAL:

$4.6

BILLION IN TOTAL

ASSETS

$2.7

BILLION IN TOTAL

LOANS

$4.0

BILLION IN TOTAL

DEPOSITS

40

TOTAL BRANCHES1

EXPANDING SOUTHEAST FRANCHISE

NASHVILLEKNOXVILLE

HUNTSVILLE	CHATTANOOGA

BIRMINGHAM

TUSCALOOSA

	AUBURN
	MONTGOMERY
	DOTHAN
		LEGACY SMARTBANK BRANCH OFFICES
MOBILE	TALLAHASSEE	NEW SMARTBANK BRANCH OFFICES
	PENSACOLA	LOAN PRODUCTION OFFICE
		PLANNED FUTURE EXPANSION

We are building a culture where Associates thrive and are empowered to be leaders. The core values that we have established as a company help us operate in unison and have become a critical part of our culture. Our Associates are key to SmartBank's success.

4

Balance sheet and branch count represent 12/31/21 balances; 1) assumes closing of five SCB branches including the SCB Richmond, VA branch, opening of Auburn, Dothan, Mobile and Montgomery, AL locations and consolidation of one Murfreesboro, TN location

MARKET AREA: TARGETING INDUSTRY RICH GROWTH MARKETS

SMARTBANK IS FOCUSED ON BUILDING MUSCLE IN ITS EXPANDING, FAST GROWING SOUTHEAST MARKET AREAS

EXPANDING MARKETS	127%	14%	0.5%
LARGER DEPOSIT BASE	HIGHER MEDIAN HOUSEHOLD INCOME	FASTER PROJECTED POPULATION GROWTH
VS.
51%	2.4%	>20%
LEGACY MARKETS1
	LARGER POPULATION BASE	FASTER HOUSEHOLD INCOME GROWTH OF TOTAL REVENUE PRODUCING ASSOCIATES2
LEGACY MARKET AREA		EXPANDING MARKET AREA

Core Tennessee3

Total Deposits in Market	$41.3 Billion
Current Population (2021)	1,549,636
Proj. Pop. Growth ('21-'26)	4.0%
Proj. HH Inc. Growth ('21-'26)	9.7%

Central Tennessee / Nashville6

Total Deposits in Market	$89.2 Billion
Current Population (2021)	1,980,990
Proj. Pop. Growth ('21-'26)	5.9%
Proj. HH Inc. Growth ('21-'26)	11.4%

East Middle Tennessee4

Total Deposits in Market	$9.9 Billion
Current Population (2021)	429,125
Proj. Pop. Growth ('21-'26)	4.2%
Proj. HH Inc. Growth ('21-'26)	9.3%

Alabama Expansion7

Total Deposits in Market	$73.5 Billion
Current Population (2021)	1,784,492
Proj. Pop. Growth ('21-'26)	1.5%
Proj. HH Inc. Growth ('21-'26)	10.1%

Legacy Alabama5

Total Deposits in Market	$34.7 Billion
Current Population (2021)	1,417,711
Proj. Pop. Growth ('21-'26)	3.0%
Proj. HH Inc. Growth ('21-'26)	6.2%

Florida Panhandle8

Total Deposits in Market	$32.7 Billion
Current Population (2021)	1,368,618
Proj. Pop. Growth ('21-'26)	5.0%
Proj. HH Inc. Growth ('21-'26)	10.0%

1. Percentages based on combined Legacy Market Area vs. Expanding Market Area; 2) Business generating associates in Expanding Market Area as a percent of total SmartBank revenue producing associates; 3) Core Tennessee includes Chattanooga, TN, Knoxville, TN and Sevierville, TN MSAs; 4) East Middle Tennessee includes Cleveland, TN, Crossville, TN, Cookeville, TN, Fentress, TN and Tullahoma, TN MSAs; 5) Legacy Alabama includes Clarke, AL, Fairhope, AL, Huntsville, AL, Mobile, AL and Tuscaloosa, AL MSAs; 6) Central Tennessee / Nashville includes the Nashville, TN MSA 7) Alabama Expansion includes Auburn, AL, Birmingham, AL, Dothan, AL and Montgomery, AL MSAs; 8) Florida Panhandle includes Fort Walton/Destin, FL, Panama

City, FL, Pensacola, FL and Tallahassee, FL MSAs	5
Source: S&P Market Intelligence; Weighted Averages for each market area based on population