SmartFinancial, Inc. (NASDAQ:SMBK) Q3 2022 Earnings Conference Call October 25, 2022 10:00 AM ET
Company Participants
Miller Welborn - Chairman
Billy Carroll - President & Chief Executive Officer
Rhett Jordan - Chief Credit Officer
Ron Gorczynski - Chief Financial Officer
Conference Call Participants
Feddie Strickland - Janney
Kevin Fitzsimmons - D.A. Davidson
Catherine Mealor - KBW
Stephen Scouten - Piper Sandler
Operator
[Abrupt start] We acquired this Chattanooga based insurance agency during the quarter and are very excited to merge it into our existing platform. This agency has a great business line focused on the trucking and transportation insurance business. As many of y'all know, we have some great ties into that industry, particularly with Miller's background and experience and we're very excited to create some synergies to grow this speed generating business line.
Before I turn it over, just a couple of other notes. Both new markets and legacy markets are all performing very well. We just opened their Birmingham Alabama office and our Brentwood Franklin office in the national MSA is slated to open in Q4. Our team from Fountain Equipment Finance is having an outstanding year. We have almost doubled the size of that balance sheet since acquiring this equipment finance group a couple of years ago and we have some great momentum there.
We have a number of things going very well in their company, so let me go ahead and turn it over to Rhett walk through the balance sheet and credit, and Ron will then provide some additional details on the income and expense side Rhett.
Rhett Jordan
Thank you, Billy. As Billy mentioned earlier, solid loan growth continued through third quarter with period-over-period net organic loans and leases growing at a 15% annualized pace, excluding PPP loans. As you can see on Slide 6, loan and lease balances outstanding grew over $105 million for the quarter putting the portfolio total just over $3 billion.
quarterly production was very evenly spread across our footprint markets. Well diversified toward our target portfolio segments in the evenly split between fixed and variable rate products. Deposits were flat quarter over quarter with net balances of just over $4 billion and average deposit costs from 45 basis points. Combination of these factors resulted in a 72% loan to deposit ratio.
The loan portfolio mix has continued to be very stable as shown on Slide 7. While most economic outlooks and market guidance continue to indicate a higher probability of recession driven by inflationary pressure and corresponding interest rate increases over the next several quarters, our market areas continue to show some solid economic results and our business clients are continuing to relay positive outlooks to our lending teams for their near term guidance.