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Regulatory Matters | 12 Months Ended
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Dec. 31, 2018
Banking and Thrift [Abstract] |
Regulatory Matters | Regulatory Matters Regulatory Capital Requirements: The Company and the Bank are subject to regulatory capital requirements administered by federal banking agencies. Capital adequacy guidelines and, additionally for banks, prompt corrective action regulations, involve quantitative measures of assets, liabilities, and certain off-balance-sheet items calculated under regulatory accounting practices. Capital amounts and classifications are also subject to qualitative judgements by regulators. Failure to meet capital requirements can initiate regulatory action. The final rules implementing Basel Committee on Banking Supervision’s capital guidelines for U.S. banks (Basel III rules) became effective for the Company on January 1, 2015, with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. Under Basel III rules, the Company must hold a capital conservation buffer above the adequately capitalized risk‑based capital ratios. The capital conservation buffer is being phased in at the rate of 0.625 percent per year from 0.0 percent in 2015 to 2.50 percent on January 1, 2019. The capital conservation buffer for 2017 is 1.25 percent and for 2018 is 1.875 percent. The net unrealized gain or loss on available for sale securities is not included in computing regulatory capital. Management believes as of December 31, 2018, the Company and Bank meet all capital adequacy requirements to which they are subject. Regulatory Capital Requirements (continued): Prompt corrective action regulations provide five classifications: well capitalized, adequately capitalized, undercapitalized, significantly undercapitalized, and critically undercapitalized, although these terms are not used to represent overall financial condition. If adequately capitalized, regulatory approval is required to accept brokered deposits. If undercapitalized, capital distributions are limited, as is asset growth and expansion, and capital restoration plans are required. At year end 2018 and 2017, the most recent regulatory notifications categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. There are no conditions or events since that notification that management believes have changed the Bank's category. Management currently believes, based on internal capital analysis and earnings projections, the Bank's capital position is adequate to meet current and future regulatory minimum capital requirements. Regulatory Restrictions on Dividends: Pursuant to Tennessee banking law, the Bank may not, without the prior consent of the Commissioner of the Tennessee Department of Financial Institutions (TDFI), pay any dividends to the Company in a calendar year in excess of the total of the Bank's retained net income for that year plus the retained net income for the preceding two years. During the year ended December 31, 2018, SmartBank paid no dividends to the Company. As of December 31, 2018, the Bank could pay approximately $33.4 million of additional dividends to the Company without prior approval of the Commissioner of the TDFI. Regulatory Capital Levels: Actual and required capital levels at December 31, 2018 and 2017 are presented below (dollars in thousands): are
|  | Actual |  | Minimum for capital adequacy purposes |  | Minimum to be well capitalized under prompt corrective action provisions (1)
|  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
SmartFinancial, Inc. (2) |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
SmartBank |  |  |  |  |  |  |  |  |  |  |  |
Total Capital (to Risk-Weighted Assets) |  | $ | 243,774 |  |  | 12.74 | % |  | $ | 153,017 |  |  | 8.00 | % |  | $ | 191,271 |  |  | 10.00 | %
Tier 1 Capital (to Risk-Weighted Assets) |  | 235,499 |  |  | 12.31 | % |  | 114,763 |  |  | 6.00 | % |  | 153,017 |  |  | 8.00 | %
Common Equity Tier 1 Capital (to Risk-Weighted Assets) |  | 235,499 |  |  | 12.31 | % |  | 86,072 |  |  | 4.50 | % |  | 124,326 |  |  | 6.50 | %
Tier 1 Capital (to Average Assets) |  | 235,499 |  |  | 11.17 | % |  | 84,300 |  |  | 4.00 | % |  | 105,375 |  |  | 5.00 | %
(1) The prompt corrective action provisions are applicable at the Bank level only. (2) Reporting regulations were revised during 2018 the capital ratios reported for SmartFinancial Inc. at December 31, 2017 were not required to be reported at December 31, 2018. Regulatory Capital Levels (continued):
|  | Actual |  | Minimum for capital adequacy purposes |  | Minimum to be well capitalized under prompt corrective action provisions (1)
|  | Amount |  | Ratio |  | Amount |  | Ratio |  | Amount |  | Ratio
December 31, 2017 |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
SmartFinancial, Inc. |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Capital (to Risk-Weighted Assets) |  | $ | 163,683 |  |  | 10.98 | % |  | $ | 119,257 |  |  | 8.00 | % |  |  |  |
Tier 1 Capital (to Risk-Weighted Assets) |  | 157,823 |  |  | 10.59 | % |  | 89,442 |  |  | 6.00 | % |  |  |  |
Common Equity Tier 1 Capital (to Risk-Weighted Assets) |  | 157,823 |  |  | 10.59 | % |  | 67,082 |  |  | 4.50 | % |  |  |  |
Tier 1 Capital (to Average Assets) |  | 157,823 |  |  | 10.78 | % |  | 58,562 |  |  | 4.00 | % |  |  |  |
SmartBank |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |  |
Total Capital (to Risk-Weighted Assets) |  | $ | 168,148 |  |  | 11.29 | % |  | $ | 119,111 |  |  | 8.00 | % |  | $ | 148,889 |  |  | 10.00 | %
Tier 1 Capital (to Risk-Weighted Assets) |  | 162,288 |  |  | 10.90 | % |  | 89,333 |  |  | 6.00 | % |  | 119,111 |  |  | 8.00 | %
Common Equity Tier 1 Capital (to Risk-Weighted Assets) |  | 162,288 |  |  | 10.90 | % |  | 67,000 |  |  | 4.50 | % |  | 96,778 |  |  | 6.50 | %
Tier 1 Capital (to Average Assets) |  | 162,288 |  |  | 11.26 | % |  | 57,656 |  |  | 4.00 | % |  | 72,070 |  |  | 5.00 | %
(1) The prompt corrective action provisions are applicable at the Bank level only.

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- Definition The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958572-112826 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958573-112826 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958570-112826 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958569-112826 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958577-112826 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958575-112826 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958574-112826 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958568-112826 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826 + Details
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