Business Description
The primary activity of SmartFinancial currently is, and is expected to remain
for the foreseeable future, the ownership and operation of SmartBank. As a bank
holding company, SmartFinancial intends to facilitate SmartBank’s ability
to serve its customers’ requirements for financial services. The holding
company structure also provides flexibility for expansion through the possible
acquisition of other financial institutions and the provision of additional
banking-related services, as well as certain non-banking services, which a traditional
commercial bank may not provide under present laws.
SmartBank is a Tennessee-chartered commercial bank established in 2007 which
has its principal executive offices in Pigeon Forge, Tennessee. The principal
business of the bank consists of attracting deposits from the general public
and investing those funds, together with funds generated from operations and
from principal and interest payments on loans, primarily in commercial loans,
commercial and residential real estate loans, consumer loans and residential
and commercial construction loans. Funds not invested in the loan portfolio
are invested by the bank primarily in obligations of the U.S. Government, U.S.
Government agencies, and various states and their political subdivisions. In
addition to deposits, sources of funds for the bank’s loans and other
investments include amortization and prepayment of loans, sales of loans or
participations in loans, sales of its investment securities and borrowings from
other financial institutions. The principal sources of income for the bank are
interest and fees collected on loans, fees collected on deposit accounts and
interest and dividends collected on other investments. The principal expenses
of the bank are interest paid on deposits, employee compensation and benefits,
office expenses and other overhead expenses.
The Cornerstone Community Bank was a Tennessee-chartered commercial bank established
in 1985 which had its principal executive offices in Chattanooga, Tennessee.
On February 26, 2016, Cornerstone Community Bank merged with and into SmartBank,
with SmartBank surviving the merger. Prior to the merger, the principal business
of Cornerstone Community Bank consisted of attracting deposits from the general
public and investing those funds, together with funds generated from operations
and from principal and interest payments on loans, primarily in commercial loans,
commercial and residential real estate loans, consumer loans and residential
and commercial construction loans. Funds not invested in the loan portfolio
were invested by the bank primarily in obligations of the U.S. Government, U.S.
Government agencies, and various states and their political subdivisions. In
addition to deposits, sources of funds for the bank’s loans and other
investments included amortization and prepayment of loans, sales of loans or
participations in loans, sales of its investment securities and borrowings from
other financial institutions. The principal sources of income for the bank were
interest and fees collected on loans, fees collected on deposit accounts and
interest and dividends collected on other investments. The principal expenses
of the bank were interest paid on deposits, employee compensation and benefits,
office expenses and other overhead expenses.
1.7% 
306.6 %