SmartFinancial Inc . (NYSE:SMBK), a Tennessee-based national commercial bank with a market capitalization of $602 million, announced a change in its board of directors. John M. Presley, who has been a board director since 2021, notified the board of his intention to resign effective January 1, 2025. Presley's departure was confirmed in a regulatory filing with the Securities and Exchange Commission on Monday.
According to InvestingPro data, the company maintains a GOOD financial health score, suggesting strong operational fundamentals.
The resignation was not due to any disagreements with the company's policies, practices, or otherwise, according to the filing. Presley is currently a member of the corporate governance committee, and his departure marks the end of over three years of service on the board.
SmartFinancial expressed its gratitude towards Presley for his contributions and leadership during his tenure. The company has not yet announced a successor for Presley on the board. The bank, headquartered in Knoxville, Tennessee, is known for its suite of financial services and community-oriented approach.
This change comes as SmartFinancial continues to navigate the competitive banking landscape. The company's stock, traded under the ticker SMBK, is listed on the New York Stock Exchange and has shown remarkable strength with a 61% gain over the past six months.
InvestingPro analysis reveals the company has consistently raised its dividend for five consecutive years, with analysts setting price targets between $30.50 and $39.00. Details of the compensatory arrangements, if any, for the departing director were not disclosed. For deeper insights into SMBK's valuation and growth prospects, investors can access comprehensive Pro Research Reports available on InvestingPro, covering over 1,400 US equities.
The information regarding Presley's resignation is based on the latest 8-K filing by SmartFinancial with the SEC. The bank operates within the regulatory framework of the banking industry and is subject to the corporate governance standards that guide publicly traded companies.
Investors and stakeholders of SmartFinancial will be watching closely for the announcement of a new board member who will fill the vacancy left by Presley. The board's composition is crucial for the strategic direction and governance of the bank, which currently trades at a P/E ratio of 18.2.
The company's leadership has not indicated any immediate impact on operations due to this upcoming change in the board's makeup, and InvestingPro analysis suggests the stock is currently trading near its Fair Value.
In other recent news, SmartFinancial Inc. reported a strong third quarter in 2024, with a net income of $9.1 million and a tangible book value increase to $22.67 per share. The company also highlighted a substantial loan growth of over 16% annualized and an improved net interest margin of 3.11%. These robust results are part of the company's optimistic outlook, as it sets its sights on a $50 million operating revenue target by the third quarter of 2025.
SmartFinancial's management anticipates continued margin expansion and a future effective tax rate of around 20%. They are also forecasting a net interest margin of 3.10% to 3.15% for the fourth quarter and expect the margin to grow throughout 2025. The company is maintaining operational leverage and a strong company culture, and it recently received a Great Place To Work certification.
Despite tempered expectations for noninterest income from swaps and investment products in the fourth quarter, SmartFinancial reported solid revenue growth and sound credit quality. The company added 15 new sales team members and effectively utilized the nCino platform for enhanced prospecting.
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