NEW YORK--(BUSINESS WIRE)--Sep 11, 2018--Kroll Bond Rating Agency (KBRA) assigns a senior unsecured debt rating of BBB, subordinated debt rating of BBB-, and short-term debt rating of K3 to SmartFinancial, Inc. (NASDAQ: SMBK), (“the Company”) a bank holding company headquartered in Knoxville, Tennessee. Additionally, KBRA assigns deposit and senior unsecured debt ratings of BBB+, a subordinated debt rating of BBB, and short-term deposit and debt ratings of K2 for its subsidiary, SmartBank. The Outlook for all long-term ratings is Stable.

The ratings are supported by strong asset quality metrics over the past several years, with expectations for this trend to continue. The Company’s locally experienced and credit-focused management team coupled with the benign credit environment have been major catalysts for the positive asset quality trends. Additionally, improvement in core profitability metrics and a comfortable capital position with the prospect of improved internal capital generation support the ratings. The ratings and Stable Outlook assume that capital ratios will remain at or above current levels going forward. The ratings are primarily constrained by possible integration risk of future deals given the Company’s acquisitive nature, though a solid track record exists for SMBK to date. Moreover, ratings are constrained by a slightly higher dependence on noncore funding compared to peers and a heavy reliance on spread-derived income.

The ratings are based on KBRA’s published on February 19, 2016.

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About KBRA and KBRA Europe

KBRA is a full service credit rating agency registered with the U.S. Securities and Exchange Commission as an NRSRO. In addition, KBRA is designated as a designated rating organization by the Ontario Securities Commission for issuers of asset-backed securities to file a short form prospectus or shelf prospectus, is recognized by the National Association of Insurance Commissioners as a Credit Rating Provider, and is a certified Credit Rating Agency (CRA) by the European Securities and Markets Authority (ESMA). Kroll Bond Rating Agency Europe Limited is registered with ESMA as a CRA.

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CONTACT: Analytical:

Kroll Bond Rating Agency

Thomas Curley, 301-969-3245

Senior Analyst


Joe Scott, 646-731-2438

Managing Director



SOURCE: Kroll Bond Rating Agency

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PUB: 09/11/2018 01:20 PM/DISC: 09/11/2018 01:20 PM