SmartBank boosts income following Cornerstone merger

SmartFinancial Inc. boosted its first quarter profits by more than 20 percent from a year ago following the merger of the former Cornerstone Bank in Chattanooga with the Knoxville-based SmartBank.

SmartFinancial reported net income of $1.6 million in its first quarter of 2017, compared to $1.3 million a year ago. In the first quarter of 2016, SmartFinancial completed the merger of Cornerstone Community Bank into SmartBank.

“In the first quarter this year net income was up over 20 percent from a year ago as the company is capitalizing on the synergies of our merger,” Billy Carroll, president and CEO of SmartFinancial, said in a statement. “Compared to last year we increased net interest income by over 7 percent while keeping noninterest expense growth below 3 percent.

Due to additional stock raised last year, however, net income available to common shareholders totaled $1.4 million, or 19 cents per share, in the first quarter of 2017 compared to $1.1 million, or 20 cents per share, during the first quarter of 2016.

SmartFinancial’s Chairman Miller Welborn said SmartBank in the past year has merged two banks, grew assets while increasing margins, added a branch in Panama City, completed a capital raise and redeemed SBLF preferred stock.

“This year we look forward to the completion of our Cleveland branch acquisition, moving our Panama City branch to a new permanent facility, and of course increasing the returns for our shareholders,” Welborn said.