SmartFinancial Announces Change in Accountant

SmartFinancial, Inc. (NASDAQ:SMBK), a Tennessee-based banking institution with a market capitalization of $541 million and strong financial health according to InvestingPro metrics, disclosed on Friday a change in its independent registered public accounting firm. The company’s Audit Committee, part of the Board of Directors, directed the dismissal of Forvis Mazars, LLP ("Forvis") on Thursday, May 29, 2025. With a P/E ratio of 14.04 and trading below its Fair Value, SmartFinancial shows promising fundamentals. InvestingPro subscribers can access detailed financial health scores and 5+ additional key insights about the company’s performance.

The decision to part ways with Forvis was not due to any disagreements on financial statement disclosures or auditing procedures for the fiscal years ending December 31, 2024, and 2023. There were no "reportable events" such as disagreements or issues that would have warranted mention in Forvis’s reports on SmartFinancial’s consolidated financial statements for those years.

In compliance with regulatory standards, SmartFinancial provided Forvis with the disclosures in this report before filing with the SEC and requested that Forvis furnish a letter to the SEC regarding their agreement with the statements made. Forvis’s letter, dated May 30, 2025, was included as Exhibit 16.1 in the report.

Subsequently, SmartFinancial announced the engagement of Elliott Davis, PLLC ("Elliott Davis") as its new independent registered public accounting firm for the fiscal year ending December 31, 2025, pending the completion of standard client acceptance procedures. The appointment of Elliott Davis was approved by the Audit Committee on May 29, 2025.

Prior to this engagement, SmartFinancial confirms that it had not consulted Elliott Davis on any matters that would require disclosure, such as accounting principles or financial statement issues, nor were there any disagreements or reportable events with the newly appointed firm.

This change in the company’s certifying accountant is detailed in the Current Report on Form 8-K, filed with the SEC, based on a press release statement. The company’s stock, traded under the ticker SMBK on the New York Stock Exchange at $31.78, may see investor reaction to this administrative shift as markets absorb the implications of the new auditor relationship. With five analysts recently revising earnings upward and the stock showing strong returns over the past five years, investors can access comprehensive analysis through InvestingPro’s detailed research reports, available for over 1,400 US stocks.

In other recent news, SmartFinancial Inc (NYSE:SMBK) reported impressive financial results for the first quarter of 2025, exceeding analyst expectations. The company achieved earnings per share of 67 cents, surpassing the forecasted 54.5 cents, and reported revenue of $46.8 million, which was above the anticipated $46.24 million. This strong performance was supported by stable expenses and robust market demand, particularly in the Southeast. Analysts from firms such as Piper Sandler and KBW noted the company’s optimistic guidance for continued growth in 2025, with expectations for mid to high single-digit loan growth and revenue reaching $50 million by the fourth quarter.

SmartFinancial’s management highlighted the company’s strategic focus on growth and efficiency, maintaining a strong net interest margin of 3.21% and a loan portfolio yield of 5.97%. The company also reported a net income of $11.3 million, reflecting effective management of loan growth and pricing strategies. During the earnings call, analysts inquired about the company’s growth strategy, market conditions, and potential impacts of tariffs and economic uncertainty. SmartFinancial’s leadership expressed confidence in continued organic growth and the exploration of deposit-based mergers and acquisitions.

The company emphasized its commitment to recruiting talent and expanding its team, particularly in private banking and treasury management areas. This aligns with SmartFinancial’s strategic growth phase, as described by CEO Billy Carroll, who noted the company’s strong market presence and operational capabilities. Overall, these developments indicate a positive trajectory for SmartFinancial as it navigates the evolving economic landscape.

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