SmartFinancial Inc. (SMBK)

[norweger1979]

SmartFinancial, Inc. Announces Launch of Public Offering of Common Stock

-redeeming the Preferred stock should result in approx. qtr. savings -$270,000


KNOXVILLE, TENNESSEE, January 18, 2017 – SmartFinancial, Inc. (“SmartFinancial”) (NASDAQ: SMBK), the holding company of SmartBank, announced the launch of its public offering of 1,770,084 shares of its common stock, of which 170,084 shares will be offered by certain selling shareholders. SmartFinancial will not receive any proceeds from shares sold by the selling shareholders. The underwriters will have a 30-day option to purchase an additional 240,000 shares of common stock to cover over-allotments, if any, from SmartFinancial.

SmartFinancial intends to use approximately $12.1 million of the net proceeds of the offering to redeem, subject to regulatory approval, its outstanding preferred stock issued to the US Treasury in connection with the company’s participation in the Small Business Lending Fund program. The company intends to use the remaining portion of the net proceeds of the offering for general corporate purposes, which may include working capital or providing capital to support its, as well as SmartBank’s, growth, organically or through the acquisition of banks or bank branches, for financing investments and capital expenditures, and for investments in SmartBank as regulatory capital.

Raymond James & Associates, Inc. is acting as lead book-running manager, and Keefe, Bruyette & Woods, a Stifel Company, and Hovde Group, LLC will serve as co-managers.

The shares are being offered pursuant to a shelf registration statement under the Securities Act of 1933, as amended, which was previously filed with and declared effective by the Securities and Exchange Commission (the “SEC”) on January 9, 2017. The offering is being made only by means of a prospectus and related preliminary prospectus supplement, copies of which may be obtained from the offices of Raymond James & Associates, Inc., 880 Carillon Parkway, St. Petersburg, Florida 33716, or by calling toll-free: [phone]. Investors may also obtain copies of these documents free of charge by visiting the SEC’s website at www.sec.gov.

This press release shall not constitute an offer to sell or the solicitation of an offer to buy, these securities, nor shall there be any sale of these securities in any state or jurisdiction in which such offer, solicitation, or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction. The offering may be made only by means of a prospectus and a related prospectus supplement, which have or will be filed with the SEC.

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