SmartFinancial, Inc. (NASDAQ:SMBK) Q4 2022 Earnings Call Transcript

Ronald Gorczynski: Yes, I’ll start. I think for 2023 like, for instance, Q1, we have about $25 million of — that’s not resetting that will reset and that today that rate is 4.87%. With our new loan production and this resetting, we’re projecting our loan yields to be in the neighborhood of 5.35%, 5.4%. So — and then ratably going through, we’ll have about $25 million a quarter for 20 — for the remaining quarters 2023, that will come due. And they’re all about the high 4s, about 4.8%, 4.9% in terms of weighted average yield, so that will be resetting into the current rate. So we feel pretty comfortable that our loan yields will continue to ratably go up as we turn into 2023.

Catherine Mealor: Great, that’s really helpful. And so do you think then is that — as that plays out, do you think the margin kind of hovers in this 3% to 3.35% range for the rest of the year or do you see directionally kind of upside or downside from there for the year?

Ronald Gorczynski: Yes, at this point, we’re looking to hover 3.30%, 3.35% range.

William Carroll Jr.: It’s a function of deposits. I think right now, we feel like — you’ll continue to see a little bit of pressure on that deposit side. So basically, what we make up on the loan side, it gets, it’s eaten up a little bit on the deposit side. We’re hopeful maybe that we could have a little — widen some of that spread. But yes, I think from what we’ve seen in the markets today, we feel more comfortable with kind of that’s hovering of our NIM for the next little bit.

Catherine Mealor: Great, okay. That makes sense. And all of my other questions were asked and answered. Thanks so much.

William Carroll Jr.: Thanks, Catherine.

Operator: Thank you, Catherine. We have no further questions on the line. I will now pass back to the management team for closing remarks.

Miller Welborn: Thanks, Glenn. Again, in closing, thanks again to each of you for joining us today. As always, please reach out directly to any of us if needed, with additional questions. We appreciate your time today, and have a great rest of your week.

Operator: Thank you. Ladies and gentlemen, this concludes today’s call. If you have missed any part of this call and would you like to hear it again, our recording will be ready shortly. Thank you for joining today’s call. Have a lovely day.