<SEC-DOCUMENT>0001104659-19-076021.txt : 20191226
<SEC-HEADER>0001104659-19-076021.hdr.sgml : 20191226
<ACCEPTANCE-DATETIME>20191226121650
ACCESSION NUMBER:		0001104659-19-076021
CONFORMED SUBMISSION TYPE:	424B3
PUBLIC DOCUMENT COUNT:		7
FILED AS OF DATE:		20191226
DATE AS OF CHANGE:		20191226

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			SMARTFINANCIAL INC.
		CENTRAL INDEX KEY:			0001038773
		STANDARD INDUSTRIAL CLASSIFICATION:	NATIONAL COMMERCIAL BANKS [6021]
		IRS NUMBER:				621173944
		STATE OF INCORPORATION:			TN
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		424B3
		SEC ACT:		1933 Act
		SEC FILE NUMBER:	333-235409
		FILM NUMBER:		191309760

	BUSINESS ADDRESS:	
		STREET 1:		5401 KINGSTON PIKE
		STREET 2:		SUITE 600
		CITY:			KNOXVILLE
		STATE:			TN
		ZIP:			37919
		BUSINESS PHONE:		866-290-2554

	MAIL ADDRESS:	
		STREET 1:		5401 KINGSTON PIKE
		STREET 2:		SUITE 600
		CITY:			KNOXVILLE
		STATE:			TN
		ZIP:			37919

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CORNERSTONE BANCSHARES INC
		DATE OF NAME CHANGE:	19980402

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	EAST RIDGE BANCSHARES INC
		DATE OF NAME CHANGE:	19970507
</SEC-HEADER>
<DOCUMENT>
<TYPE>424B3
<SEQUENCE>1
<FILENAME>tm1924655-3_424b3.htm
<DESCRIPTION>424B3
<TEXT>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Filed Pursuant to Rule 424(b)(3)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B>Registration No. 333-235409</B></P>



<P STYLE="margin: 0">&nbsp;&nbsp;</P>

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<TD STYLE="width: 49%; text-align: center"><IMG SRC="tm1924655d1_s4img001.jpg" ALT="">&nbsp;</TD><TD STYLE="text-align: left; width: 2%">&nbsp;</TD><TD STYLE="text-align: center; width: 49%"><IMG SRC="tm1924655d1_s4img002.jpg" ALT="">&nbsp;</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; color: red"><B></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>PROXY STATEMENT
FOR THE SPECIAL MEETING OF SHAREHOLDERS OF</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>PROGRESSIVE FINANCIAL GROUP INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AND PROSPECTUS OF SMARTFINANCIAL, INC.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>MERGER PROPOSED&mdash;YOUR VOTE IS VERY
IMPORTANT </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Dear Shareholder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The boards of directors of SmartFinancial, Inc., or SmartFinancial,
and Progressive Financial Group, Inc, or PFG, have each unanimously approved the acquisition of PFG by SmartFinancial. The acquisition
will be accomplished pursuant to the terms of an Agreement and Plan of Merger, dated as of October 29, 2019, which we refer to
as the merger agreement, by and between SmartFinancial and PFG, whereby PFG will be merged with and into SmartFinancial, which
we refer to as the merger. Immediately following the merger of PFG with and into SmartFinancial, Progressive Savings Bank, a Tennessee
state-chartered bank and wholly-owned subsidiary of PFG, or Progressive Bank, will merge with and into SmartFinancial&rsquo;s wholly-owned
bank subsidiary, SmartBank, a Tennessee state-chartered bank, with SmartBank as the surviving bank, which we refer to as the bank
merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the merger is completed, each share of PFG common stock issued
and outstanding immediately prior to the effective time of the merger will be converted into the right to receive an amount of
cash equal to the quotient obtained by dividing (A) the amount equal to $14,595,354.37, minus the amount of (i) certain allowable
dividends declared by PFG prior to closing, as more fully described in this proxy statement / prospectus, and (ii) the loss, if
in excess of $250,000, realized by PFG or its applicable subsidiary on sales of certain assets, by (B) the number of shares of
PFG Common Stock issued and outstanding as of the effective time of the merger, plus a number of shares of SmartFinancial equal
to the quotient obtained by dividing (A) 1,292,592.556 shares of SmartFinancial common stock by (B) the number of shares of PFG
Common Stock issued and outstanding as of the effective time of the merger. Based on the closing sale price of SmartFinancial common
stock on October 28, 2019 of $20.72 per share and assuming that PFG does not pay any dividends from its accumulated adjustment
account prior to the merger, holders of PFG common stock would receive approximately $704.375 and 62.3808 shares of SmartFinancial
common stock (plus cash in lieu of fractional shares) for each share of PFG common stock they own.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Although the number of shares of SmartFinancial common
stock that PFG shareholders will receive is fixed (according to the ratio of 1,292,592.556 shares of SmartFinancial divided
by the number of PFG shares issued and outstanding at the effective time), the market value of the merger consideration will
fluctuate with the market price of SmartFinancial common stock. Additionally, the cash consideration component of the merger
consideration of $14,595,354.37 will be reduced by the certain allowable dividends declared by PFG prior to closing and any
loss in excess of $250,000 realized by PFG or its applicable Subsidiary on sales of certain assets prior to closing.
Accordingly, the market value of the merger consideration will not be known at the time PFG shareholders vote on the merger.
SmartFinancial common stock is currently quoted on the NASDAQ Capital Market under the symbol &ldquo;SMBK.&rdquo; On October
28, 2019, the last full trading day before the public announcement of the merger agreement, the last reported sale price of
SmartFinancial common stock was $20.72 per share, which represented $26,782,518 in value for all shares of PFG common stock
to be converted into SmartFinancial common stock, and up to $41,377,872.37 in total merger consideration when combined with
the cash consideration component. Assuming that PFG does not pay any dividends from its accumulated adjustment account prior
to the merger, the holders of PFG common stock would receive approximately $704.375 and 62.3808 shares of SmartFinancial
common stock (plus cash in lieu of fractional shares) for each share of PFG common stock they own, which, based on the
closing sale price of SmartFinancial common stock on December 18, 2019 of $23.32 per share,  represents $2,159.10 in total
merger consideration per share of PFG common stock. We urge you to obtain current market quotations for the price of
SmartFinancial common stock (trading symbol &ldquo;SMBK&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG will hold a special meeting of its shareholders, referred
to as the PFG special meeting, where PFG shareholders will be asked to consider and vote upon (1) a proposal to approve the merger
agreement and (2) a proposal to adjourn the PFG special meeting, if necessary or appropriate, to solicit additional proxies in
favor of the proposal to approve the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The PFG special meeting will be held at PFG&rsquo;s office
located at 500 North Main Street, Jamestown, Tennessee 38556, on January 28, 2020, at 1:00 pm, Central Time, subject to any adjournment
or postponement thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each of SmartFinancial and PFG expects that the merger will
qualify as a &ldquo;reorganization&rdquo; within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended,
which we refer to as the Code, with the result that the PFG common stock exchanged for SmartFinancial common stock will generally
be tax-free.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Your vote is important</B>. Completion of the merger is subject
to the approval of the merger agreement by the shareholders of PFG. Regardless of whether or not you plan to attend the PFG special
meeting, please take the time to authorize a proxy to vote your shares in accordance with the instructions contained in this proxy
statement/prospectus. Submitting a proxy now will not prevent you from being able to vote in person at the PFG special meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The board of directors of PFG has determined that the merger
agreement and the transactions contemplated thereby, including the merger, are advisable and in the best interests of the shareholders
of PFG, has unanimously approved the merger agreement and the merger and unanimously recommends that the shareholders of PFG vote
&ldquo;FOR&rdquo; the proposal to approve the merger agreement and &ldquo;FOR&rdquo; the proposal to adjourn the PFG special meeting,
if necessary or appropriate, to solicit additional proxies in favor of the proposal to approve the merger agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This proxy statement/prospectus describes the PFG special
meeting, the merger, the merger agreement, other documents related to the merger and other related matters. <B>Please carefully
read this entire proxy statement/prospectus, including &ldquo;Risk Factors,&rdquo; beginning on page 20, for a discussion of the
risks relating to the proposed merger.</B> You also can obtain information about SmartFinancial from documents that it has filed
with the Securities and Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial and PFG are excited about the opportunities the
merger brings to the shareholders of both companies. Thank you for your consideration and continued support.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Sincerely,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;<IMG SRC="image_003.jpg" ALT=""></TD>
    <TD STYLE="padding: 0; text-indent: 0"><IMG SRC="image_004.jpg" ALT="">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 50%; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">W. Miller Welborn</FONT></TD>
    <TD STYLE="width: 50%; padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Ottis H. Phillips</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt"><I>Chairman</I></FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt"><I>President and CEO</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">SmartFinancial, Inc.</FONT></TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-size: 10pt">Progressive Financial Group Inc.</FONT></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Neither the Securities and Exchange Commission, the Board
of Governors of the Federal Reserve System, the Federal Deposit Insurance Corporation, nor any state securities commission or any
other bank regulatory agency has approved or disapproved the securities to be issued in the merger or determined if this proxy
statement/prospectus is accurate or adequate. Any representation to the contrary is a criminal offense.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The securities to be issued in the merger are not savings
or deposit accounts or other obligations of any bank or non-bank subsidiary of either SmartFinancial or PFG, and they are not insured
by the Federal Deposit Insurance Corporation or any other governmental agency.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The date of this proxy statement/prospectus is December
19, 2019, and it is first being mailed or otherwise delivered to the PFG shareholders on or about December 26, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Progressive Financial Group Inc.<BR>
500 North Main Street</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Jamestown, Tennessee 38556<BR>
(931) 752-2178</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>NOTICE OF SPECIAL MEETING OF SHAREHOLDERS<BR>
To Be Held on January 28, 2020</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">To the Shareholders of Progressive Financial Group, Inc.:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A special meeting of the shareholders of Progressive Financial
Group Inc., or PFG, will be held at PFG&rsquo;s office located at 500 North Main Street, Jamestown, Tennessee, on January 28 2020,
at 1:00 p.m., Central Time, subject to any adjournment or postponement thereof, for the following purposes:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">1.</TD><TD>To consider and vote upon a proposal, which we refer to as the merger proposal, to approve the Agreement and Plan of Merger,
dated as of October 29, 2019, which we refer to as the merger agreement, by and between PFG and SmartFinancial, Inc., or SmartFinancial,
which provides for the merger of PFG with and into SmartFinancial with SmartFinancial as the surviving company, which is referred
to herein as the merger; and</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in">2.</TD><TD>To consider and vote upon a proposal to adjourn the special meeting, referred to herein as the PFG special meeting, to a later
date or dates if the board of directors of PFG determines such an adjournment is necessary to permit solicitation of additional
proxies if there are not sufficient votes at the time of the PFG special meeting to approve the merger, which we refer to as the
adjournment proposal.</TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No other business may be conducted at the PFG special meeting.
All holders of shares of common stock of PFG of record as of the close of business as of 5:00 p.m. Central Time on December 17,
2019 will be entitled to notice of and to vote at the PFG special meeting and any adjournments thereof. The PFG special meeting
may be adjourned from time to time upon approval of holders of PFG common stock without any notice other than by announcement
at the meeting of the adjournment thereof, and any and all business for which notice is hereby given may be transacted at such
adjourned meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG shareholders have the right to dissent from the Merger
and obtain payment of the fair value of their shares as afforded by Chapter 23 of the Tennessee Business Corporation Act, or TBCA.
Dissenters&rsquo; rights allow a shareholder to avoid the effects of the proposed corporate action described in this notice by
selling the shareholder's shares to the corporation at their fair value, paid in cash. To retain the right to assert dissenter&rsquo;s
rights, a shareholder is required by law: (1) to deliver to the corporation, before the vote is taken on the action described
in this notice, a written notice of the shareholder's intent to dissent if the corporate action proposed in this notice takes
effect, and (2) not to vote, or cause or permit to be voted, in favor of the proposed corporate action any shares of the class
or series for which the shareholder intends to assert dissenter&rsquo;s rights. A shareholder who complies with notice requirements
set forth in the previous sentence must then demand payment from the corporation by certifying that the shareholder acquired beneficial
ownership of the shares prior to the record date set forth in the dissenters&rsquo; notice and depositing their shares in accordance
with the terms of the notice. If a shareholder complies with these requirements, and the action proposed in this notice takes
effect, the law requires the corporation to send to the shareholder the amount the corporation estimates to be the fair value
of each dissenter&rsquo;s shares, plus accrued interest, accompanied by: (i) the corporation&rsquo;s balance sheet as of the end
of a fiscal year ending not more than sixteen (16) months before the date of payment, an income statement for that year, a statement
of changes in shareholders' equity for that year, and the latest available interim financial statements, if any; (ii) a statement
of the corporation's estimate of the fair value of the shares, which estimate shall equal or exceed the corporation's estimate
given pursuant to TN Code &sect; 48-23-203(b)(2)(C); (iii) an explanation of how the interest was calculated; and (iv) a statement
of the dissenter's right to demand payment under TN Code &sect; 48-23-209. If the dissenter is dissatisfied with the corporation&rsquo;s
payment, such dissenter must, within one month of delivery of the corporation&rsquo;s payment, notify the corporation in writing
of the dissenter&rsquo;s own estimate of the fair value of the dissenter&rsquo;s shares and amount of interest due, and demand
payment in accordance with TN Code &sect; 48-23-209. A copy of the applicable statutory provisions of the TBCA is included as
<U>Annex C</U> to the accompanying proxy statement/prospectus and a summary of these provisions can be found under the caption
&ldquo;The Merger&mdash;Dissenters&rsquo; Rights,&rdquo; beginning on page 50 of the proxy statement/prospectus. The merger might
not be completed if the holders of more than 7.5% of the outstanding shares of PFG common stock exercise dissenters&rsquo; rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you have any questions concerning the merger agreement, the
merger, the PFG special meeting or the proxy statement/prospectus, would like additional copies of the proxy statement/prospectus,
need a proxy card or need help voting your shares of PFG common stock, please contact Ottis H. Phillips, President and CEO, at
(931) 752-2178.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 62%; padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="width: 38%; padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">By Order of the Board of Directors,</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><IMG SRC="image_005.jpg" ALT=""></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Brandon Smith</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding: 0; text-indent: 0">&nbsp;</TD>
    <TD STYLE="padding: 0; text-indent: 0"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Corporate Secretary</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Jamestown, Tennessee</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: left">December 19, 2019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The PFG board of directors unanimously recommends that holders
of PFG common stock entitled to vote at the PFG special meeting vote &ldquo;FOR&rdquo; the merger proposal and &ldquo;FOR&rdquo;
the adjournment proposal. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Your Vote is Very Important</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A proxy card is enclosed. Whether or not you plan to attend
the PFG special meeting, if you are a holder of shares of PFG common stock, please vote by completing, signing and dating the proxy
card and promptly mailing it in the enclosed envelope. You may revoke your proxy in the manner described in the proxy statement/prospectus
at any time before it is exercised. If you are a holder of shares of PFG common stock and attend the PFG special meeting, you may
vote in person if you desire, even if you have previously returned your proxy card.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ADDITIONAL INFORMATION</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This proxy statement/prospectus incorporates important business
and financial information about SmartFinancial from documents filed with the Securities and Exchange Commission, or SEC, that are
not included in or delivered with this proxy statement/prospectus. You can obtain any of the documents filed with or furnished
to the SEC by SmartFinancial at no cost from the SEC&rsquo;s website at http://www.sec.gov. You may also request copies of these
documents, including documents incorporated by reference in this proxy statement/prospectus, at no cost by contacting SmartFinancial
at the contact information set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SmartFinancial, Inc.</B></FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">5401 Kingston Pike</FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Knoxville, Tennessee 37319</FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Attention: Ron Gorczynski, Chief Financial Officer</FONT></P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif">Telephone: (865) 467-5724</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B>&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>You will not be charged for any of these documents that
you request. To obtain timely delivery of these documents, you must request them no later than five business days before the date
of the special meeting, or January 21, 2020. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If you are a PFG shareholder and have any questions about the
merger agreement, the merger, the PFG special meeting or the proxy statement/prospectus, would like additional copies of the proxy
statement/prospectus, need a proxy card or need help voting your shares of PFG common stock, please contact Ottis H. Phillips,
President and CEO, at (931) 752-2178.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">You should rely only on the information contained in or
incorporated by reference into this document. No one has been authorized to provide you with information that is different from
that contained in, or incorporated by reference into, this document. This document is dated December 19, 2019,
and you should assume that the information in this document is accurate only as of such date. You should assume that the information
incorporated by reference into this proxy statement/prospectus from another document is accurate as of the date of such other
document. Neither the mailing of this document to PFG shareholders nor the issuance by SmartFinancial of shares of SmartFinancial
common stock in connection with the merger will create any implication to the contrary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>This document does not constitute an offer to sell, or a
solicitation of an offer to buy any securities, or the solicitation of a proxy, in any jurisdiction to or from any person to whom
it is unlawful to make any such offer or solicitation in such jurisdiction. Except where the context otherwise indicates, information
contained in this document regarding PFG has been provided by PFG and information contained in this document regarding SmartFinancial
has been provided by SmartFinancial. See &ldquo;Where You Can Find More Information&rdquo; for more details.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TABLE OF CONTENTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="width: 92%; text-align: left"><A HREF="#QUESTIONSANDANSWERS">QUESTIONS AND ANSWERS</A></TD>
    <TD STYLE="width: 8%; text-align: right"><A HREF="#QUESTIONSANDANSWERS">1</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#SUMMARY">SUMMARY</A></TD>
    <TD STYLE="text-align: right"><A HREF="#SUMMARY">7</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#cautionary_statement">CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING STATEMENTS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#cautionary_statement">15</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#comparativemarket">COMPARATIVE MARKET PRICES AND DIVIDENDS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#comparativemarket">17</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#riskfactor">RISK FACTORS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#riskfactor">20</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#riskrelatedtothe">Risks Related to the Merger</A></TD>
    <TD STYLE="text-align: right"><A HREF="#riskrelatedtothe">20</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#riskrelatedtothecombinedcompany">Risks Related to the Combined Company Following the Merger</A></TD>
    <TD STYLE="text-align: right"><A HREF="#riskrelatedtothecombinedcompany">23</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#risksrelatetoaninvestmentinthe">Risks Related to an Investment in the Combined Company&rsquo;s Common Stock</A></TD>
    <TD STYLE="text-align: right"><A HREF="#risksrelatetoaninvestmentinthe">24</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#risksrelatedtotax">Risks Related to Tax</A></TD>
    <TD STYLE="text-align: right"><A HREF="#risksrelatedtotax">25</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#risksrelatedtosmartfinancial">Risks Related to SmartFinancial&rsquo;s Business</A></TD>
    <TD STYLE="text-align: right"><A HREF="#risksrelatedtosmartfinancial">26</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#thepfgspecialmeeting">THE PFG SPECIAL MEETING</A></TD>
    <TD STYLE="text-align: right"><A HREF="#thepfgspecialmeeting">27</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#general">General</A></TD>
    <TD STYLE="text-align: right"><A HREF="#general">27</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#datetimeandplace">Date, Time and Place</A></TD>
    <TD STYLE="text-align: right"><A HREF="#datetimeandplace">27</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#purposesofthepfgspecialmee">Purpose of the PFG Special Meeting</A></TD>
    <TD STYLE="text-align: right"><A HREF="#purposesofthepfgspecialmee">27</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#proposalonemergerproposal">Proposal One: Merger Proposal</A></TD>
    <TD STYLE="text-align: right"><A HREF="#proposalonemergerproposal">27</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#proposaltwoadjourprop">Proposal Two: Adjournment Proposal</A></TD>
    <TD STYLE="text-align: right"><A HREF="#proposaltwoadjourprop">27</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#recommendationofthepfgboard">Recommendation of the PFG Board of Directors</A></TD>
    <TD STYLE="text-align: right"><A HREF="#recommendationofthepfgboard">28</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#recorddateshareholdersentitled">Record Date; Shareholders Entitled to Vote</A></TD>
    <TD STYLE="text-align: right"><A HREF="#recorddateshareholdersentitled">28</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#quorumandadjourment">Quorum and Adjournment</A></TD>
    <TD STYLE="text-align: right"><A HREF="#quorumandadjourment">28</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#voterequiredforapproval">Vote Required for Approval; Abstentions; Failure to Vote</A></TD>
    <TD STYLE="text-align: right"><A HREF="#voterequiredforapproval">29</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#votingbypfgdirectors">Voting by PFG Directors and Executive Officers</A></TD>
    <TD STYLE="text-align: right"><A HREF="#votingbypfgdirectors">29</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#pfgcommonstocksubject">PFG Common Stock Subject to Voting Agreements</A></TD>
    <TD STYLE="text-align: right"><A HREF="#pfgcommonstocksubject">29</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#votingonproxiesbyholders">Voting on Proxies by Holders of Record; Incomplete Proxies</A></TD>
    <TD STYLE="text-align: right"><A HREF="#votingonproxiesbyholders">29</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#sharesheldinstreetname">Shares Held in &ldquo;Street Name&rdquo;</A></TD>
    <TD STYLE="text-align: right"><A HREF="#sharesheldinstreetname">29</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#revocabilityproxiesandchanges">Revocability of Proxies and Changes to an PFG Shareholder&rsquo;s Vote</A></TD>
    <TD STYLE="text-align: right"><A HREF="#revocabilityproxiesandchanges">30</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#solicitationofproxies">Solicitation of Proxies</A></TD>
    <TD STYLE="text-align: right"><A HREF="#solicitationofproxies">30</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#attendingthepfgspeciameering">Attending the PFG Special Meeting; Voting in Person</A></TD>
    <TD STYLE="text-align: right"><A HREF="#attendingthepfgspeciameering">30</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#assistance">Assistance</A></TD>
    <TD STYLE="text-align: right"><A HREF="#assistance">30</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#thermerger31">THE MERGER</A></TD>
    <TD STYLE="text-align: right"><A HREF="#thermerger31">31</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#general31">General</A></TD>
    <TD STYLE="text-align: right"><A HREF="#general31">31</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#purchasepriceandpurchase">Purchase Price and Purchase Price Adjustments</A></TD>
    <TD STYLE="text-align: right"><A HREF="#purchasepriceandpurchase">31</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#backgroundofthemerger">Background of the Merger</A></TD>
    <TD STYLE="text-align: right"><A HREF="#backgroundofthemerger">31</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#smartfinancialreasonsforthemerger">SmartFinancial&rsquo;s Reasons for the Merger</A></TD>
    <TD STYLE="text-align: right"><A HREF="#smartfinancialreasonsforthemerger">33</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#pfgsreasonsforthmerger">PFG&rsquo;s Reasons for the Merger</A></TD>
    <TD STYLE="text-align: right"><A HREF="#pfgsreasonsforthmerger">34</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#openionofpfgsfinanicaladvisor">Opinion of PFG&rsquo;s Financial Advisor</A></TD>
    <TD STYLE="text-align: right"><A HREF="#openionofpfgsfinanicaladvisor">35</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#boardcompositionandmanagementof">Board Composition and Management of SmartFinancial after the Merger</A></TD>
    <TD STYLE="text-align: right"><A HREF="#boardcompositionandmanagementof">42</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#interestofpfgsdirectorsandexecutive">Interests of PFG&rsquo;s Directors and Executive Officers in the Merger</A></TD>
    <TD STYLE="text-align: right"><A HREF="#interestofpfgsdirectorsandexecutive">42</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#beneficialownershipofpfgcommonstock">Beneficial Ownership of PFG Common Stock by Management and Principal Shareholders of PFG</A></TD>
    <TD STYLE="text-align: right"><A HREF="#beneficialownershipofpfgcommonstock">43</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#regulatoryapprovalsrequiredforthe">Regulatory Approvals Required for the Merger</A></TD>
    <TD STYLE="text-align: right"><A HREF="#regulatoryapprovalsrequiredforthe">45</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#materialusfederalincometaxconse">Material U.S. Federal Income Tax Consequences</A></TD>
    <TD STYLE="text-align: right"><A HREF="#materialusfederalincometaxconse">46</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#accountingtreatment">Accounting Treatment</A></TD>
    <TD STYLE="text-align: right"><A HREF="#accountingtreatment">50</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#dissentersrights">Dissenters&rsquo; Rights</A></TD>
    <TD STYLE="text-align: right"><A HREF="#dissentersrights">50</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#exchangeofsharesinthemerger">Exchange of Shares in the Merger</A></TD>
    <TD STYLE="text-align: right"><A HREF="#exchangeofsharesinthemerger">51</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#listingofsmartfinancialcommon">Listing of SmartFinancial Common Stock</A></TD>
    <TD STYLE="text-align: right"><A HREF="#listingofsmartfinancialcommon">51</A></TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; width: 92%"><A HREF="#themergeragreement">THE MERGER AGREEMENT</A></TD>
    <TD STYLE="text-align: right; width: 8%"><A HREF="#themergeragreement">52</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#structureofthemerger">Structure of the Merger</A></TD>
    <TD STYLE="text-align: right"><A HREF="#structureofthemerger">52</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#closingandeffectivetime">Closing and Effective Time of the Merger</A></TD>
    <TD STYLE="text-align: right"><A HREF="#closingandeffectivetime">52</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#organizationaldocuments">Organizational Documents of the Surviving Company</A></TD>
    <TD STYLE="text-align: right"><A HREF="#organizationaldocuments">52</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#boardcompositionand">Board Composition and Management of Surviving Company</A></TD>
    <TD STYLE="text-align: right"><A HREF="#boardcompositionand">52</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#mergerconsideration">Merger Consideration</A></TD>
    <TD STYLE="text-align: right"><A HREF="#mergerconsideration">53</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#proceduresforconverting">Procedures for Converting Shares of PFG Common Stock into Merger Consideration</A></TD>
    <TD STYLE="text-align: right"><A HREF="#proceduresforconverting">53</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#surrenderofpeg">Surrender of PFG Stock Certificates</A></TD>
    <TD STYLE="text-align: right"><A HREF="#surrenderofpeg">53</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#representationsand">Representations and Warranties</A></TD>
    <TD STYLE="text-align: right"><A HREF="#representationsand">56</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#definitionof">Definition of &ldquo;Material Adverse Effect&rdquo;</A></TD>
    <TD STYLE="text-align: right"><A HREF="#definitionof">56</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#convenantsandagree">Covenants and Agreements</A></TD>
    <TD STYLE="text-align: right"><A HREF="#convenantsandagree">57</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#regulatorymatters">Regulatory Matters</A></TD>
    <TD STYLE="text-align: right"><A HREF="#regulatorymatters">61</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#nasdaqlisting">NASDAQ Listing</A></TD>
    <TD STYLE="text-align: right"><A HREF="#nasdaqlisting">61</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#employeematters">Employee Matters</A></TD>
    <TD STYLE="text-align: right"><A HREF="#employeematters">61</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#indemnificationand">Indemnification and Directors&rsquo; and Officers&rsquo; Insurance</A></TD>
    <TD STYLE="text-align: right"><A HREF="#indemnificationand">62</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#nosolicitation">No Solicitation</A></TD>
    <TD STYLE="text-align: right"><A HREF="#nosolicitation">62</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#conditionstocompletion">Conditions to Completion of the Merger</A></TD>
    <TD STYLE="text-align: right"><A HREF="#conditionstocompletion">64</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#termination">Termination</A></TD>
    <TD STYLE="text-align: right"><A HREF="#termination">65</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#terminationfee">Termination Fee</A></TD>
    <TD STYLE="text-align: right"><A HREF="#terminationfee">66</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#effectoftermination">Effect of Termination</A></TD>
    <TD STYLE="text-align: right"><A HREF="#effectoftermination">66</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#amendment">Amendment; Waiver</A></TD>
    <TD STYLE="text-align: right"><A HREF="#amendment">66</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#expenses">Expenses</A></TD>
    <TD STYLE="text-align: right"><A HREF="#expenses">67</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#ancillaryagreements">ANCILLARY AGREEMENTS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#ancillaryagreements">68</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#votingagreements">Voting Agreements</A></TD>
    <TD STYLE="text-align: right"><A HREF="#votingagreements">68</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#noncompetitionandnon">Non-Competition and Non-Disclosure Agreements</A></TD>
    <TD STYLE="text-align: right"><A HREF="#noncompetitionandnon">68</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#claimsletters">Claims Letters</A></TD>
    <TD STYLE="text-align: right"><A HREF="#claimsletters">69</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#thecompanies">THE COMPANIES</A></TD>
    <TD STYLE="text-align: right"><A HREF="#thecompanies">70</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#smartfinancial">SmartFinancial, Inc.</A></TD>
    <TD STYLE="text-align: right"><A HREF="#smartfinancial">70</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in"><A HREF="#progressivefinancial">Progressive Financial Group Inc.</A></TD>
    <TD STYLE="text-align: right"><A HREF="#progressivefinancial">71</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; padding-left: 0.45in">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#descriptionofcapital">DESCRIPTION OF CAPITAL STOCK</A></TD>
    <TD STYLE="text-align: right"><A HREF="#descriptionofcapital">73</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#comparisionof">COMPARISON OF RIGHTS OF SMARTFINANCIAL SHAREHOLDERS AND PFG SHAREHOLDERS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#comparisionof">77</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#legalmatters">LEGAL MATTERS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#legalmatters">85</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#experts">EXPERTS</A></TD>
    <TD STYLE="text-align: right"><A HREF="#experts">85</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#whereyoucanfind">WHERE YOU CAN FIND MORE INFORMATION</A></TD>
    <TD STYLE="text-align: right"><A HREF="#whereyoucanfind">85</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#annexa">Annex A</A></TD>
    <TD STYLE="text-align: right"><A HREF="#annexa">A-1</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#annexb">Annex B</A></TD>
    <TD STYLE="text-align: right"><A HREF="#annexb">B-1</A></TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left">&nbsp;</TD>
    <TD STYLE="text-align: right">&nbsp;</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left"><A HREF="#annexc">Annex C</A></TD>
    <TD STYLE="text-align: right"><A HREF="#annexc">C-1</A></TD></TR>
</TABLE>
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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="QUESTIONSANDANSWERS"></A>QUESTIONS AND ANSWERS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The following are answers to some questions that PFG shareholders
may have regarding the proposed transaction between SmartFinancial and PFG and the proposals being considered at the PFG special
meeting. SmartFinancial and PFG urge you to read carefully this entire proxy statement/prospectus, including the annexes, and the
documents incorporated by reference into this proxy statement/prospectus, because the information in this section does not provide
all the information that might be important to you.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Unless the context otherwise requires, references in this
proxy statement/prospectus to: (1) &ldquo;SmartFinancial&rdquo; refer to SmartFinancial, Inc., a Tennessee corporation, and its
affiliates; (2) &ldquo;SmartBank&rdquo; refers to SmartBank, a Tennessee state-chartered bank and the wholly-owned bank subsidiary
of SmartFinancial; (3) &ldquo;PFG&rdquo; refer to Progressive Financial Group Inc., a Tennessee corporation, and its affiliates;
and (4) &ldquo;Progressive Bank&rdquo; refers to Progressive Savings Bank, a Tennessee state-chartered bank and the wholly-owned
bank subsidiary of PFG. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 19pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Why am I receiving this proxy statement/prospectus?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SmartFinancial and PFG have entered into an Agreement and Plan of Merger, dated as of October 29, 2019, which we refer to as the merger agreement. Pursuant to the merger agreement, PFG will merge with and into SmartFinancial, with SmartFinancial as the surviving company, which we refer to as the merger. Immediately after the merger, Progressive Bank, PFG&rsquo;s wholly-owned bank subsidiary, will merge with and into SmartBank, SmartFinancial&rsquo;s wholly owned bank subsidiary, with SmartBank as the surviving bank, which we refer to as the bank merger. A copy of the merger agreement is included in this proxy statement/prospectus as <U>Annex A</U>.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">The merger cannot be completed unless, among other things, the majority of the outstanding shares of PFG common stock entitled to vote at the PFG special meeting vote in favor of the proposal to approve the merger agreement, which we refer to as the merger proposal.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">In addition, PFG is soliciting proxies from its shareholders with respect to a proposal to approve one or more adjournments of the PFG special meeting, if necessary or appropriate, to solicit additional proxies if there are insufficient votes at the time of such adjournment to approve the merger proposal, which we refer to as the adjournment proposal.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt">This proxy statement/prospectus contains important information about the merger agreement, the merger and the proposals being voted on at the PFG special meeting, and you should read it carefully. This is a proxy statement/prospectus because (1) PFG is soliciting proxies from the PFG shareholders and the proxy statement provides important information about the PFG special meeting to vote on the merger proposal and the adjournment proposal, and (2) SmartFinancial will issue shares of SmartFinancial common stock to holders of PFG common stock in connection with the merger, and the prospectus provides important information about such shares. The enclosed materials allow PFG shareholders to authorize a proxy to vote their shares without attending the PFG special meeting.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-size: 10pt"><B>Your vote is important. We encourage you to authorize your proxy as soon as possible.</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>What will I receive in the merger?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><P STYLE="margin-top: 0; margin-bottom: 0"><FONT STYLE="font-size: 10pt">If the merger is completed, each share of PFG
        common stock issued and outstanding immediately prior to the effective will be converted into the right to receive
        &nbsp;a pro&nbsp;rata portion (which is a ratio equal to one divided by the number of shares of PFG common stock issued and
        outstanding as of the closing)&nbsp;of (1) an aggregate amount of cash equal to $14,595,354.37 minus the amount of certain
        pre-closing distributions paid by PFG and minus any loss in excess of $250,000 realized by PFG or its applicable subsidiary
        on sales of certain assets prior to closing, and (2) 1,292,592.556 shares of SmartFinancial common stock.&nbsp;&nbsp;We refer
        to the cash and shares of SmartFinancial common stock into which the PFG common stock will convert as the &ldquo;merger
        consideration&rdquo;. Assuming that PFG does not pay any dividends from its accumulated adjustment account prior to the
        merger, the holders of PFG common stock would receive approximately $704.375 and 62.3808 shares of SmartFinancial common
        stock (plus cash in lieu of fractional shares) for each share of PFG common stock they own. Based on the closing sale price
        of SmartFinancial common stock on December 18, 2019 of $23.32 per share, which, represents approximately $2,159.10 in total
        merger consideration per share of PFG common stock.</FONT></P></TD></TR>
</TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 19pt">&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SmartFinancial will not issue any fractional shares of SmartFinancial common stock in the merger. PFG shareholders who would otherwise be entitled to a fractional share of SmartFinancial common stock upon the completion of the merger will instead receive an amount in cash (without interest and rounded to the nearest whole cent) determined by multiplying the fractional share interest in SmartFinancial common stock (rounded to the nearest one hundredth of a share) by the average closing price of SmartFinancial&rsquo;s common stock on the NASDAQ Capital Market over the ten (10) trading days ending on the business days immediately prior to the closing date. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Will the value of the merger consideration change between the date of this proxy statement/prospectus and the time the merger is completed?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes. In all likelihood, the value of the merger consideration received by PFG shareholders receiving SmartFinancial common stock will fluctuate between the date of this proxy statement/prospectus and the completion of the merger based upon the market value of SmartFinancial common stock. Any fluctuation in the market price of SmartFinancial common stock after the date of this proxy statement/prospectus will change the value of the SmartFinancial common stock that PFG shareholders will receive and the total value of the consideration received in the merger.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">In addition, PFG shareholders may receive a one-time dividend from PFG, which we refer to as the &ldquo;AAA dividend&rdquo; in the amount of the balance of its accumulated adjustment account accumulated adjustment account as of December 31, 2019. The AAA dividend will reduce the aggregate amount of the cash consideration paid to PFG&rsquo;s shareholders in connection with the merger on a dollar-for-dollar basis.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Will the shares of SmartFinancial common stock that I receive as stock consideration in the merger be freely tradable?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes, in most cases. The shares of SmartFinancial common stock to be issued as stock consideration will be registered under the Securities Act and listed for trading on the Nasdaq Capital Market. However, if there are any former shareholders of PFG who will be deemed to be &ldquo;affiliates&rdquo; of SmartFinancial under the Securities Act after the merger (generally, directors and executive officers of SmartFinancial and shareholders holding 10% or more of the outstanding shares of common stock of SmartFinancial), such persons must comply with certain transfer restrictions under the Securities Act.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>What are the dividends that PFG will be permitted to pay prior to the closing?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PFG will be permitted to pay a one-time dividend to its shareholders, which we refer to as the &ldquo;AAA dividend&rdquo; in the amount of the balance of its accumulated adjustment account accumulated adjustment account as of December 31, 2019. Additionally, PFG will be permitted to pay: (1) a one-time tax distribution payable on or before February 29, 2020 in an amount that will enable PFG&rsquo;s shareholders to satisfy their respective tax obligations in connection with their pro rata share of the income of PFG for the tax period ending on December 31, 2019; and (2) a one-time tax distribution payable immediately prior to the closing in an amount sufficient for PFG&rsquo;s shareholders to satisfy their respective tax obligations in connection with their pro rata share of the income of PFG for the tax period commencing on January 1, 2020 and ending on the closing date.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The AAA dividend will reduce the aggregate amount of the cash consideration paid to PFG&rsquo;s shareholders in connection with the merger on a dollar-for-dollar basis. However, the distributions paid to enable PFG&rsquo;s shareholders to satisfy their respective tax obligations for their pro-rata share of PFG&rsquo;s income will not reduce the merger consideration.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>How does PFG&rsquo;s board of directors recommend that I vote at the special meeting?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PFG&rsquo;s board of directors unanimously recommends that you vote &ldquo;FOR&rdquo; the merger proposal and &ldquo;FOR&rdquo; the adjournment proposal.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>When and where is the PFG special meeting?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">A:</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The PFG special meeting will be held at PFG&rsquo;s
    office located at 500 North Main Street, Jamestown, Tennessee, on January 28, 2020, at 1:00 p.m., Central Time.</FONT></TD></TR>
</TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 19pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>What do I need to do now?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">After you have carefully read this proxy
    statement/prospectus and have decided how you wish to vote your shares, please authorize a proxy to vote your shares by promptly
    completing and returning the enclosed proxy card so that your shares are represented and voted at the PFG special meeting.
    When complete, sign, date and mail your proxy card in the enclosed postage-paid return envelope as soon as possible. Submitting
    your proxy by mail or directing your bank or broker to vote your shares will ensure that your shares are represented and voted
    at the PFG special meeting. Your proxy card must be received prior to the special meeting on January 28, 2020, in order to
    be counted.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>What constitutes a quorum for the PFG special meeting?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Holders representing at least a majority of the issued and outstanding shares of PFG common stock entitled to vote at the PFG special meeting must be present, in person or represented by proxy, to constitute a quorum. Abstentions and broker non-votes, if any, will be included in determining the number of shares present at the meeting for the purpose of determining the presence of a quorum. If a quorum is not present, the PFG special meeting will be postponed until the holders of the number of shares of PFG common stock required to constitute a quorum attend. If you submit a properly executed proxy card, even if you abstain from voting, your shares of PFG common stock will be counted for purposes of determining whether a quorum is present at the PFG special meeting. If additional votes must be solicited to approve the merger proposal, it is expected that the PFG special meeting will be adjourned to solicit additional proxies.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>What is the vote required to approve each proposal?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The merger proposal requires the affirmative vote of a majority of the issued and outstanding shares of PFG common stock entitled to vote at the PFG special meeting. The adjournment proposal requires the affirmative vote of a majority of the votes cast on the matter.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>What would happen if the adjournment proposal does not get approved by PFG shareholders?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The completion of the merger is not conditioned upon shareholder approval of the adjournment proposal. If a quorum is present at the PFG special meeting and the adjournment proposal is not approved and there are not sufficient votes at the time of the PFG special meeting to approve the merger proposal, then the PFG board of directors will not have the ability to adjourn to solicit additional votes and the merger proposal will not be approved.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Why is my vote important?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If you do not submit a proxy or vote in person, it may be more difficult for PFG to obtain the necessary quorum to hold the special meeting. In addition, your failure to submit a proxy or vote in person, or failure to instruct your bank or broker how to vote, or abstention will have the same effect as a vote against approval of the merger proposal. The merger proposal must be approved by the affirmative vote of the holders of at least a majority of the outstanding shares of PFG common stock. <B>PFG&rsquo;s board of directors unanimously recommends that you vote &ldquo;FOR&rdquo; the merger proposal</B>.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>How many votes do I have?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PFG shareholders are entitled to one vote
    on each proposal to be considered at the special meeting for each share of PFG common stock owned as of the close of business
    on December 17, 2019, which is the record date for the PFG special meeting. </FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>How do I vote?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If you are a shareholder of record, you may have your shares of PFG common stock voted on the matters to be presented at the PFG special meeting in any of the following ways:</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><B>You may vote by mail</B>. You may vote by mail by completing, signing, dating and returning the enclosed proxy card in the accompanying prepaid reply envelope.</TD></TR>
</TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 19pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD>
    <TD><B>You may vote in person at the meeting</B>. You may vote by attending the special meeting and casting your vote in person.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>If you are a beneficial owner, please refer to the instructions provided by your bank, brokerage firm or other nominee to see which of the above choices are available to you. Your bank, brokerage firm or other nominee cannot vote your shares without instructions from you. Please note that if you are a beneficial owner and wish to vote in person at the special meeting, you must obtain a legal proxy from your bank, brokerage firm or other nominee.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Do PFG directors and executive officers have interests in the merger that are different from, or in addition to, my interests?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes. In considering the recommendation of the PFG board of directors with respect to the merger agreement, you should be aware that PFG&rsquo;s directors and executive officers have interests in the merger that are different from, or in addition to, the interests of PFG&rsquo;s shareholders generally. Interests of officers and directors that may be different from or in addition to the interests of PFG&rsquo;s shareholders include but are not limited to the receipt of continued indemnification and directors&rsquo; and officers&rsquo; insurance coverage under the merger agreement.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>What if I abstain from voting, fail to authorize a proxy or fail to vote in person?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If you mark &ldquo;ABSTAIN&rdquo; on your proxy with respect to the merger proposal, fail to authorize a proxy or fail to vote in person at the PFG special meeting, or fail to instruct your bank or broker how to vote, it will have the same effect as a vote &ldquo;AGAINST&rdquo; the merger proposal and no effect on the adjournment proposal. If you sign your proxy but do not indicate your vote, your proxy will be voted &ldquo;FOR&rdquo; each proposal.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Can I attend the special meeting and vote my shares in person?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes. All PFG shareholders as of the record date, including shareholders of record and shareholders who hold their shares through any other holder of record, are invited to attend the PFG special meeting. Holders of record of PFG common stock can vote in person at the PFG special meeting. If you are not a shareholder of record, you must obtain a proxy, executed in your favor, from the record holder of your shares, such as a broker, bank or other nominee, to be able to vote in person at the PFG special meeting. If you plan to attend the PFG special meeting, you must hold your shares in your own name or have a letter from the record holder of your shares confirming your ownership. In addition, you must bring a form of personal photo identification with you in order to be admitted. PFG reserves the right to refuse admittance to anyone without proper proof of share ownership or without proper photo identification. The use of cameras, sound recording equipment, communications devices or any similar equipment during the PFG special meeting is prohibited without express written consent. Even if you plan to attend the special meeting, PFG encourages you to vote by proxy through the mail so your vote will be counted if you later decide not to attend the special meeting.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Can I change my vote?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes. If you are a holder of record of PFG common stock, you may revoke your proxy at any time prior to the PFG special meeting by: (1) delivering written notice of revocation to Brandon Smith, Corporate Secretary, Progressive Financial Group Inc., 500 North Main Street, Jamestown, Tennessee 38556, (2) by returning a duly executed proxy card bearing a later date than the date with which your original proxy card was dated, or (3) by attending the PFG special meeting and voting in person. Your attendance at the PFG special meeting will not constitute automatic revocation of the proxy unless you deliver your ballot in person at the special meeting or deliver a written revocation to the PFG Corporate Secretary prior to the voting of such proxy.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Will PFG be required to submit the merger proposal to its shareholders even if PFG&rsquo;s board of directors has withdrawn, modified or qualified its recommendation?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes. Unless the merger agreement is terminated before the PFG special meeting, PFG is required to submit the merger proposal to its shareholders even if PFG&rsquo;s board of directors has withdrawn, modified or qualified its recommendation.</FONT></TD></TR>
</TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 19pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>What are the material U.S. federal income tax consequences of the pre-closing distributions to U.S. holders of shares of PFG common stock?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Generally, distributions to a shareholder from a corporation taxed under Subchapter S of the Internal Revenue Code are not taxable to the extent of a shareholder&rsquo;s adjusted tax basis in the S corporation stock, with any distribution in excess of adjusted tax basis being treated as gain from the sale or exchange of property. To the extent that AAA dividend or the distributions to the PFG shareholders intended to cover their tax obligations in respect of their pro rata portion of PFG&rsquo;s income are not taxable due to a U.S. holder&rsquo;s tax basis prior to the distributions exceeding the amount received, the holder&rsquo;s adjusted tax basis in its PFG common stock would decrease by the amount of the distributions paid and affect the amount of the holder&rsquo;s gain or loss, if any, in the merger as well as the holder&rsquo;s tax basis in the SmartFinancial common stock received in exchange for PFG common stock in the merger. For further information, see &ldquo;The Merger&mdash;Material U.S. Federal Income Tax Consequences.&rdquo;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>What are the material U.S. federal income tax consequences of the merger to U.S. holders of shares of PFG common stock?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each of SmartFinancial and PFG expects the merger to qualify as a &ldquo;reorganization&rdquo; within the meaning of Section 368(a) of the Internal Revenue Code of 1986, as amended (the &ldquo;Code&rdquo;), and that the merger agreement will constitute a &ldquo;plan or reorganization&rdquo; as such term is used in Sections 354 and 361 of the Code. Accordingly, a U.S. holder (as defined below) of PFG common stock generally would not recognize gain or loss on the exchange of PFG common stock for SmartFinancial common stock in the merger. However, holders of PFG common stock will be subject to tax on cash consideration received as well as cash received in lieu of a fractional share of SmartFinancial common stock.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">For further information, see &ldquo;The Merger&mdash;Material U.S. Federal Income Tax Consequences.&rdquo;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><I>The U.S. federal income tax consequences described above may not apply to all holders of PFG common stock. Your particular tax consequences will depend on your individual situation. Accordingly, we strongly urge you to consult your independent tax advisor for a full understanding of the particular tax consequences of the merger to you.</I></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Are PFG shareholders entitled to exercise dissenters&rsquo; rights?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Yes. Under Tennessee law, record holders of shares of PFG common stock have the right to demand in writing to receive a payment in cash for the &ldquo;fair value&rdquo; of their shares as determined by an appraisal process. To exercise those dissenters&rsquo; rights, a PFG shareholder must follow exactly the procedures specified under Tennessee law. These procedures are summarized in this proxy statement/prospectus. In addition, the text of the applicable provisions of Tennessee law is included as <U>Annex C</U> to this document. Failure to strictly comply with these provisions may result in the loss of dissenters&rsquo; rights. The value determined in the appraisal process may be more or less than the value a PFG shareholder would receive in the merger under the terms of the merger agreement. <B>Failure to strictly comply with the applicable Tennessee law provisions will result in the loss of the right of appraisal.</B> For further information, see &ldquo;The Merger&mdash;Dissenters&rsquo; Rights.&rdquo;</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Pursuant to the merger agreement, the merger may not be completed if dissenters&rsquo; rights are properly asserted with respect to 7.5% or more of the outstanding shares of PFG common stock.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Should I send my PFG stock certificates with my proxy card for the PFG special meeting?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">No. You should <B>NOT</B> send your PFG stock certificates with your proxy card. SmartFinancial, through its appointed exchange agent, will send PFG shareholders separate instructions for exchanging PFG stock certificates and PFG common stock held in book-entry form for the merger consideration.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>What happens if I sell or transfer ownership of shares of PFG common stock after the record date for the PFG special meeting?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The record date for the PFG special meeting is earlier than the expected date of completion of the merger. Therefore, if you sell or transfer ownership of your shares of PFG common stock after the record date for the PFG special meeting, but prior to completion of the merger, you will retain the right to vote at the PFG special meeting, but the right to receive the merger consideration will transfer with the shares of PFG common stock.</FONT></TD></TR>
</TABLE>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 19pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Whom may I contact if I cannot locate my PFG stock certificate(s)?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If you are unable to locate your original PFG stock certificate(s), you should contact Ottis H. Phillips, President and CEO, at (931) 752-2178 . Generally, merger consideration for lost certificates cannot be delivered except upon the making of an affidavit claiming such certificate to be lost, stolen or destroyed and the posting of a bond in such amount as SmartFinancial or the exchange agent may determine is reasonably necessary as indemnity against any claim that may be made with respect to such lost certificate.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>When do you expect to complete the merger?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SmartFinancial and PFG expect to complete the merger in the first quarter of 2020. However, neither SmartFinancial nor PFG can assure you when or if the merger will occur. SmartFinancial and PFG must first obtain the approval of PFG shareholders for the merger proposal and any necessary regulatory approvals, as well as the satisfaction of other conditions to the closing.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>What happens if the merger is not completed?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If the merger is not completed, holders of PFG common stock will not receive any consideration for their shares of PFG common stock that otherwise would have been received in connection with the merger. Instead, PFG will remain an independent private company. If the merger is completed but, for any reason, the bank merger is not completed, it will have no impact on the consideration to be received by holders of PFG common stock.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Q:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Whom should I call with questions?</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>A:</B></FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">If you have any questions concerning the merger agreement, the merger or this proxy statement/prospectus, would like additional copies of this proxy statement/prospectus or need help voting your shares of PFG common stock, please contact: Ottis H. Phillips, President and CEO, at (931) 752-2178.</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>
<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1pt solid">

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="SUMMARY"></A>SUMMARY</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This summary highlights selected information from this proxy
statement/prospectus. It may not contain all of the information that is important to you. We urge you to read carefully the entire
proxy statement/prospectus, including the annexes, and the other documents to which we refer in order to fully understand the merger.
See &ldquo;Where You Can Find More Information.&rdquo; Each item in this summary refers to the page of this proxy statement/prospectus
on which that subject is discussed in more detail.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The Companies (page 70)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>SmartFinancial, Inc.<BR>
5401 Kingston Pike<BR>
Knoxville, Tennessee 37319<BR>
(865) 868-0613</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial is a Knoxville, Tennessee-based corporation and
bank holding company registered under the Bank Holding Company Act of 1956, as amended (which we refer to as the &ldquo;Bank Holding
Company Act&rdquo;). SmartFinancial is the publicly traded bank holding company for SmartBank, which operates offices across Tennessee,
Alabama, and the Florida Panhandle.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of September 30, 2019, SmartFinancial had total assets
of approximately $2.39 billion. Shares of SmartFinancial common stock are traded on the Nasdaq Capital Market under the symbol
&ldquo;SMBK.&rdquo; Additional information about SmartFinancial and its subsidiaries can be found under the heading &ldquo;SmartFinancial,
Inc.&rdquo; beginning on page 70.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Progressive Financial Group Inc.<BR>
500 North Main Street</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Jamestown, TN 38556</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>(931) 752-2178</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG is a Tennessee-based corporation and bank holding company
registered under the Bank Holding Company Act. PFG is the bank holding company for Progressive Savings Bank, a Tennessee chartered
commercial bank headquartered in Jamestown, Tennessee, with five (5) branches in Cookeville, Crossville, and Wartburg, Tennessee.
As of September 30, 2019, Progressive Savings Bank had total assets of approximately $296 million, total deposits of $258 million,
and total shareholders&rsquo; equity of approximately $30 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Additional information about PFG and its subsidiaries is
included below under &ldquo;The Companies&rdquo; beginning on page 70.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The Merger</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The Merger Agreement (page 52) </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial and PFG entered into an Agreement and Plan of
Merger, dated as of October 29, 2019, which we refer to as the merger agreement. The merger agreement governs the merger. The merger
agreement is included in this proxy statement/prospectus as <U>Annex A</U>. All descriptions in this summary and elsewhere in this
proxy statement/prospectus of the terms and conditions of the merger are qualified by reference to the merger agreement. Please
read the merger agreement carefully for a more complete understanding of the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The Merger (page 31) </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the merger agreement, PFG will merge with and into
SmartFinancial, with SmartFinancial as the surviving company, which we refer to as the merger. Immediately after the merger, Progressive
Savings Bank, a wholly owned bank subsidiary of PFG, will merge with and into SmartFinancial&rsquo;s wholly owned bank subsidiary,
SmartBank, with SmartBank as the surviving bank, which we refer to as the bank merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
</DIV>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1pt solid">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The Merger Consideration (page 53) </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At the effective time of the merger, each share of PFG common
stock issued and outstanding immediately prior to the effective time of the merger will be converted into the right to receive
&nbsp;a pro&nbsp;rata portion (which is a ratio equal to one divided by the number of shares of PFG common stock issued and outstanding
as of the closing)&nbsp;of (1) an aggregate amount of cash equal to $14,595,354.37 minus the amount of any pre-closing dividend
paid by PFG and any loss in excess of $250,000 realized by PFG or its applicable subsidiary on sales of certain assets prior to
closing, and (2) 1,292,592.556 shares of SmartFinancial common stock. We refer to the cash and shares of SmartFinancial common
stock into which the PFG common stock will convert as the &ldquo;merger consideration&rdquo;. Assuming that PFG does not pay any dividends from its accumulated adjustment account prior to the merger, the holders
of PFG common stock would receive approximately $704.375 and 62.3808 shares of SmartFinancial common stock (plus cash in lieu
of fractional shares) for each share of PFG common stock they own. Based on the closing sale price
of SmartFinancial common stock on December 18, 2019 of $23.32
per share, which, represents approximately $2,159.10
in total merger consideration per share of PFG common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On October 28, 2019, the last full trading day before the
public announcement of the merger agreement, the last reported sale price of SmartFinancial common stock was $20.72 per share,
which represented $26,782,518 in value for all shares of PFG common stock to be converted into SmartFinancial common stock. Based
on the most recent reported closing sale price of SmartFinancial common stock on December 18, 2019 of $23.32 per share, the exchange of stock would represent approximately $30,143,258.41 in total value for all shares of PFG common stock to be converted into SmartFinancial common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial will not issue any fractional shares of SmartFinancial
common stock in the merger. PFG shareholders who would otherwise be entitled to a fractional share of SmartFinancial common stock
upon the completion of the merger will instead receive an amount in cash (without interest and rounded to the nearest whole cent)
determined by multiplying the fractional share interest in SmartFinancial common stock (rounded to the nearest one hundredth of
a share) by the average closing price of SmartFinancial&rsquo;s common stock on the NASDAQ Capital Market over the ten (10) trading
days ending on the business days immediately prior to the closing date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Exchange Procedures (page 53) </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Promptly after the effective time of the merger, SmartFinancial&rsquo;s
exchange agent will mail to each holder of record of PFG common stock that is converted into the right to receive the merger consideration
a letter of transmittal and instructions for the surrender of the holder&rsquo;s PFG stock certificate(s) for the merger consideration
(including cash in lieu of any fractional PFG shares), and any dividends or distributions to which such holder is entitled to pursuant
to the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Please do not send in your certificates until you receive these
instructions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Ancillary Agreements</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Voting Agreements (page 68) </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As a condition to SmartFinancial entering into the merger agreement,
all directors of PFG and Progressive Bank who have voting power over shares of PFG common stock and holders of 10% or more of PFG&rsquo;s
issued and outstanding shares of common stock entered into voting agreements in the form attached as Exhibit A to the merger agreement
attached as <U>Annex A</U> to this document, pursuant to which each such person agreed, among other things, to vote the shares
of PFG common stock held of record by such person (1) to approve the merger agreement and the merger (or any adjournment or postponement
necessary to solicit additional proxies to approve the merger agreement and the merger) and (2) against any acquisition proposals
or any actions that would result in a breach of any covenant, representation or warranty of PFG in the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Non-Competition and Non-Disclosure Agreements (page 68)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, as a condition to SmartFinancial entering into
the merger agreement, each director of PFG and Progressive Bank, entered into non-competition and non-disclosure agreements with
SmartFinancial in the form attached as Exhibit C to the merger agreement attached as <U>Annex A</U> to this document, pursuant
to which each such person agreed to, among other things, (1) not disclose or use any confidential information or trade secrets
of PFG for any purpose for so long as such information remains confidential information or a trade secret, (2) for a period of
two years following the closing of the merger, not engage in certain competitive activities with SmartFinancial, including not
soliciting employees and customers of PFG (provided that one director will only be bound to a covenant regarding non-solicitation
of employees and customers), and (3) for a period of two years following the closing of the merger, not serve as a director or
management official of another financial institution in the counties in Tennessee in which Progressive Bank operates a banking
office as of the closing of the merger and each county contiguous to each of such counties (subject to exceptions for directorships
already held by one member of PFG&rsquo;s board of directors).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
</DIV>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1pt solid">

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Claims Letters (page 69)</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At the time of the execution of the merger agreement, each director
of PFG and Progressive Bank executed a letter agreement with SmartFinancial in the form attached as Exhibit D to the merger agreement
attached as <U>Annex A</U> to this document, pursuant to which each such director released and discharged, effective upon the consummation
of the merger, PFG and its subsidiaries, their respective directors and officers (in their capacities as such), and their respective
successors and assigns (including SmartFinancial and SmartBank), from any and all liabilities or claims that the director has or
claims to have as of the effective time of the merger, with certain exceptions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Risk Factors Related to the Merger (page 20) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Before voting at the PFG special meeting, you should carefully
consider all the information contained in or incorporated by reference into this proxy statement/prospectus in deciding how to
vote for the proposals presented in the proxy statement/prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>The PFG Special Meeting (page 27) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The special meeting will be held on January 28, 2020 at
1 p.m., Central Time, at the main office of Progressive Savings Bank at 500 N. Main Street Jamestown, Tennessee 38556.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At the special meeting, PFG shareholders will be asked to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>approve the merger proposal; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>approve the adjournment proposal.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All shareholders of record of PFG common stock as of the
close of business on December 17, 2019, the record date for the special meeting, are entitled to receive notice of, and to vote
at, the special meeting, or any adjournment or postponement thereof, in accordance with Tennessee law. The presence at the special
meeting, in person or by proxy, of holders of a majority of the outstanding shares of PFG common stock entitled to vote at the
special meeting will constitute a quorum. Abstentions, if any, will be included in determining the number of shares present at
the meeting for the purpose of determining the presence of a quorum.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Recommendation of the PFG Board (page 28) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The PFG board of directors has determined unanimously that the
merger agreement and the other transactions contemplated by the merger agreement are advisable and in the best interests of PFG
and its shareholders and has approved and adopted unanimously the merger agreement. The PFG board of directors unanimously recommends
that holders of shares of PFG common stock vote &ldquo;<B>FOR</B>&rdquo; the merger proposal and &ldquo;<B>FOR</B>&rdquo; the adjournment
proposal. For the factors considered by the PFG board of directors in reaching its decision to approve and adopt the merger agreement,
see &ldquo;<I>The Merger &mdash; PFG&rsquo;s Reasons for the Merger</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Board Composition and Management of SmartFinancial after
the Merger (page 42) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each of the officers and directors of SmartFinancial immediately
prior to the effective time of the merger will be the officers and directors of the surviving company from and after the effective
time of the merger, until their respective successors have been duly elected, appointed or qualified or until their earlier death,
resignation or removal in accordance with the charter and bylaws of SmartFinancial. Following the effective time of the merger,
the board of directors of the surviving company will also be expanded by one member, and the new vacancy will be filled by Ottis
H. Phillips, who will remain a member of the board of directors of the surviving corporation until his successor has been duly
elected, appointed or qualified or until their earlier death, resignation or removal in accordance with the charter and bylaws
of SmartFinancial</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">&nbsp;</P>
</DIV>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">&nbsp;</P>
<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1pt solid">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: left; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Interests of PFG Directors and Executive Officers in
the Merger (page 42) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In considering the recommendation of the PFG board of directors,
shareholders should be aware that the directors and executive officers of PFG have certain interests in the merger that may be
different from, or in addition to, the interests of PFG shareholders generally. The PFG board of directors was aware of these interests
and considered them, among other matters, in making its recommendation that PFG shareholders vote to approve the merger proposal.
These interests are described in further detail below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">These interests include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the terms of the merger agreement, for a period
of six years from and after the effective time, SmartFinancial must indemnify certain persons, including PFG&rsquo;s directors
and executive officers. In addition, the merger agreement requires that for a period of six years from the effective time, subject
to a cap on the amount of premiums, SmartFinancial must maintain an insurance policy for the benefit of certain persons, including
PFG&rsquo;s directors and executive officers. For additional information, see &ldquo;The Merger Agreement &mdash; Covenants and
Agreements; Indemnification and Insurance.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Some members of the Progressive Bank management team will continue to receive employment benefits that are consistent with
those of other similarly situated SmartBank employees after the closing of the merger.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Ottis H. Phillips will be appointed to the board of directors of SmartFinancial and SmartBank.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>All participants in the Jo Ann Rains Employee Stock Ownership Plan and the Progressive Savings Bank F.S.B. 401(k) Plan, including
any directors or executive officers participating in such plans, will become 100% vested as of each plan&rsquo;s termination date
(the day of the merger and the day immediately prior to the merger, respectively).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>PFG&rsquo;s directors and executive officers are entitled to continued indemnification and insurance coverage under the merger
agreement for a period of six years.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For a more complete description of these interests, see &ldquo;The
Merger &mdash; Interests of PFG Directors and Executive Officers in the Merger.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Dissenters&rsquo; Rights in the Merger (page 50) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Tennessee law permits holders of PFG common stock to dissent
from the merger and to have the fair value of their PFG common stock paid in cash. To do this, a PFG shareholder must follow certain
procedures, including filing certain notices with PFG and refraining from voting the shareholder&rsquo;s shares of PFG common stock
in favor of the merger proposal. If a PFG shareholder properly dissents from the merger proposal, that shareholder&rsquo;s shares
of PFG common stock will not be exchanged for the merger consideration, but rather, that shareholder&rsquo;s only right will be
to receive the appraised value of the shareholder&rsquo;s shares in cash.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For a complete description of these dissenters&rsquo; rights,
see page 50 and&nbsp;<U>Annex C</U>&nbsp;to this proxy statement/prospectus where the full text of those sections of the Tennessee
Business Corporation Act applicable to dissenters&rsquo; rights is set out.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A dissenting shareholder will be entitled to payment only if
written notice of intent to demand payment is delivered to PFG before the vote is taken and the shareholder does not vote in favor
of merger proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Conditions to Completion of the Merger (page 64) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Currently, SmartFinancial and PFG expect to complete the merger
in the first quarter of 2020. As more fully described in this proxy statement/prospectus and in the merger agreement, the completion
of the merger depends on a number of conditions being satisfied or, where legally permissible, waived. These conditions include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>approval of the merger agreement by the holders of at least a majority of the outstanding shares of PFG common stock entitled
to vote at the PFG special meeting;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the receipt of all required regulatory approvals for the merger, without the imposition of any burdensome condition, and the
expiration of all regulatory waiting periods;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</P>
</DIV>
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: center"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</P>
<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1pt solid">
<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the absence of any legal restraint (such as an injunction or restraining order) that would prevent the consummation of the
merger;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the effectiveness of the registration statement of which this proxy statement/prospectus forms a part;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>each party&rsquo;s receipt of a U.S. federal income tax opinion from its outside legal counsel, dated the closing date of the
merger, confirming that the merger qualifies as a &ldquo;reorganization&rdquo; within the meaning of Section 368(a) of the Code;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the approval of the listing of the shares of SmartFinancial common to be issued as merger consideration on the NASDAQ;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the Plan of Bank Merger in the form attached as Exhibit B to the merger agreement attached as <U>Annex A</U> to this document
being executed and delivered;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the absence of 7.5% or more of the outstanding shares of PFG&rsquo;s common stock exercising their dissenters&rsquo; rights;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the accuracy, subject to varying degrees of materiality, of SmartFinancial&rsquo;s and PFG&rsquo;s respective representations
and warranties in the merger agreement on the date of the merger agreement and as of the effective time of the merger (or such
other date specified in the merger agreement);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the receipt of any consents or approvals necessary to effect the Merger;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the entry of certain employees of PFG or is subsidiaries into new employment agreements with PFG and / or SmartFinancial (or
their respective subsidiaries, as applicable);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>performance in all material respects by SmartFinancial and PFG of their respective obligations under the merger agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the sale by PFG of its equity holdings in Upper Cumberland Bancshares, Inc. (which occurred on November 19, 2019), and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the absence of the occurrence of a material adverse effect on PFG or SmartFinancial.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Neither SmartFinancial nor PFG can be certain when, or if, the
conditions to the merger will be satisfied or waived, or that the merger will be completed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Regulatory Approvals Required for the Merger (page 45)
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Both SmartFinancial and PFG have agreed to use their reasonable
best efforts to obtain all regulatory approvals (or waivers) required or advisable to complete the transactions contemplated by
the merger agreement. These approvals include, among others, approval from the Board of Governors of the Federal Reserve System,
or the Federal Reserve Board, the Tennessee Department of Financial Institutions, or the TDFI, and various securities and other
regulatory authorities. The U.S. Department of Justice may also review the impact of the merger on competition. SmartFinancial
and PFG have submitted all applications, waiver requests and notifications to obtain the required regulatory approvals. Although
neither SmartFinancial nor PFG knows of any reason why these regulatory approvals cannot be obtained, SmartFinancial and PFG cannot
be certain when or if they will be obtained, as the length of the review process may vary based on, among other things, requests
by regulators for additional information or materials.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>No Solicitation (page 62) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the merger agreement, PFG &nbsp;has agreed that it will
not, and will cause its representatives not to, directly or indirectly, (1)&nbsp;initiate, solicit, induce or knowingly encourage,
or take any action to facilitate the making of, any inquiry, offer or proposal which constitutes, or could reasonably be expected
to lead to, an acquisition proposal, (2)&nbsp;participate in any discussions or negotiations regarding any acquisition proposal
or furnish, or otherwise afford access, to any person (other than SmartFinancial) any information or data with respect to PFG or
any of its subsidiaries or otherwise relating to an acquisition proposal, (3)&nbsp;release any person from, waive any provisions
of, or fail to enforce any confidentiality agreement or standstill agreement to which PFG is a party, or (4)&nbsp;enter into any
agreement, confidentiality agreement, agreement in principle or letter of intent with respect to any acquisition proposal or approve
or resolve to approve any acquisition proposal or any agreement, agreement in principle or letter of intent relating to an acquisition
proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">However, prior to obtaining PFG&rsquo;s required shareholder
approval, PFG may, under certain specified circumstances, participate in negotiations or discussions with any third-party acquiring
proposal and provide confidential information to such third party (subject to a confidentiality agreement). PFG must notify SmartFinancial
promptly (but in no event later than one business day) after the receipt of such acquisition proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
</DIV>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1pt solid">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Additionally, prior to obtaining PFG&rsquo;s required shareholder
approval, PFG may, under certain specified circumstances, withdraw its recommendation to its shareholders with respect to the merger
and/or terminate the merger agreement in order to enter into an acquisition agreement with respect to a superior acquisition proposal
if it determines in good faith, after consultation with and having considered the advice of outside legal counsel and financial
advisors, that such acquisition proposal is a superior proposal and that failure to take such actions more likely than not would
cause it to violate its fiduciary duties to PFG&rsquo;s shareholders under applicable law. However, PFG cannot take any of those
actions in response to a superior proposal unless it provides SmartFinancial with a five-business day period to negotiate in good
faith to enable SmartFinancial to adjust the terms and conditions of the merger agreement such that it would cause the superior
proposal to no longer constitute a superior proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Termination of the Merger Agreement (page 65) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger agreement can be terminated at any time prior to
completion of the merger by mutual consent, or by either party in the following circumstances:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>if the merger is not consummated on or before June 30, 2020, subject to automatic extension to September 30, 2020 if the only
outstanding condition to closing is the receipt of regulatory approvals;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>if any regulatory approval required for consummation of the transactions contemplated by the merger agreement has been denied
by final non-appealable action by the relevant governmental authority or any application for such regulatory approval shall have
been permanently withdrawn at the request of a governmental authority;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>in the event that approval by the shareholders of PFG is not obtained at a meeting at which a vote was taken; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>in the event of a material breach by the other party of any representation, warranty or covenant contained in the merger agreement
and such breach is not cured within 30 days.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, SmartFinancial may terminate the merger agreement
in the following circumstances:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>if PFG fails to comply in all material respects with its obligations pursuant to the non-solicitation covenants;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>if PFG withdraws, qualifies, amends, modifies or withholds its recommendation to its shareholders to approve the merger and
the merger agreement, or makes any statement, filing or release, in connection with the shareholder meeting or otherwise, inconsistent
with its recommendation (it being understood that taking a neutral position or no position with respect to an acquisition proposal
shall be considered an adverse modification of its recommendation);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>if PFG materially breaches its obligation to call, give notice of, and commence a meeting of shareholders to vote on the merger
agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>if PFG approves or recommends an acquisition proposal (other than the merger agreement proposal);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>if PFG fails to publicly recommend against a publicly announced acquisition proposal within three business days of being requested
to do so by SmartFinancial or fails to publicly reconfirm its recommendation to its shareholders within three business days of
being requested to do so by SmartFinancial; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>if PFG resolves or otherwise determines to take, or announces an intention to take, any of the foregoing actions.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, PFG may terminate the merger agreement if PFG&rsquo;s
board of directors determines to enter into a definitive agreement with respect to a superior proposal in accordance with the terms
of the merger agreement but only if PFG pays to SmartFinancial a $2,000,000 termination fee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Termination Fee (page 66) </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the merger agreement is terminated under certain circumstances,
including circumstances involving a change in recommendation by PFG&rsquo;s board of directors, PFG may be required to pay SmartFinancial
a termination fee of $2,000,000. The termination fee could discourage other companies from seeking to acquire or merge with PFG.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Expenses (page 67) </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each party will bear all expenses incurred in connection with
the merger and the transactions contemplated by the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
</DIV>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1pt solid">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Material U.S. Federal Income Tax Consequences (page 46)
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger is expected to qualify as a &ldquo;reorganization&rdquo;
within the meaning of Section 368(a) of the Code. It is a condition to the respective obligations of SmartFinancial and PFG to
complete the merger that each of SmartFinancial and PFG receives a tax opinion from its respective outside legal counsel, dated
the closing date of the merger, to that effect. Based upon the qualification of the merger as a &ldquo;reorganization&rdquo; within
the meaning of Section 368(a) of the Code, a U.S. holder (as defined below) of PFG common stock will not recognize gain or loss
with respect to the receipt of SmartFinancial common stock in the merger. However, holders of PFG common stock will be subject
to tax on the receipt of cash consideration received as well as cash received in lieu of a fractional share of SmartFinancial common
stock. For further information, see &ldquo;The Merger&mdash;Material U.S. Federal Income Tax Consequences.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The U.S. federal income tax consequences described above
may not apply to all holders of PFG common stock. Your particular tax consequences will depend on your individual situation. Accordingly,
we strongly urge you to consult your independent tax advisor for a full understanding of the particular tax consequences of the
merger to you.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Accounting Treatment of the Merger (page 46) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial will account for the merger under the acquisition
method of accounting for business combinations under U.S. generally accepted accounting principles, or GAAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.1pt"><B>The Rights of Holders of PFG Common Stock Will
Change as a Result of the Merger (see page 77)</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.1pt">The rights of holders of PFG common stock are governed
by Tennessee law, as well as PFG&rsquo;s Charter (which we refer to as the PFG Charter), and PFG&rsquo;s Bylaws, as amended (which
we refer to as the PFG Bylaws). After completion of the merger, the rights of former PFG shareholders will be governed by Tennessee
law and by SmartFinancial&rsquo;s Amended and Restated Charter, as amended (which we refer to as the SmartFinancial Charter), and
SmartFinancial&rsquo;s Amended and Restated Bylaws (which we refer to as the SmartFinancial Bylaws).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.1pt">There are differences between the rights of shareholders
of PFG and shareholders of SmartFinancial, including differences regarding restrictions on transfer of shares and limitations
on the liability of directors and executive officers. <FONT STYLE="background-color: white">The differences between the organizational
documents and the rights of shareholders of PFG and shareholders of SmartFinancial are explained in more detail under the section
&ldquo;Comparison of Rights of SmartFinancial Shareholders and PFG Shareholders&rdquo; beginning on page 77. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.1pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Opinion of PFG&rsquo;s Financial Advisor (page 35 and
<U>Annex B</U>) </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Olsen Palmer LLC (which we refer to as &ldquo;Olsen Palmer&rdquo;),
PFG&rsquo;s financial advisor, delivered its opinion, dated October 29, 2019, to PFG&rsquo;s board of directors to the effect that,
as of the date of the opinion and subject to factors, qualifications, limitations and assumptions set forth in the opinion, the
merger consideration is fair, from a financial point of view, to PFG.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The full text of the written opinion of Olsen Palmer, which
sets forth the procedures followed, assumptions made, matters considered and qualifications and limitations on the review undertaken
by Olsen Palmer in connection with its opinion, is attached as <U>Annex B</U> to this proxy statement/prospectus. Olsen Palmer&rsquo;s
opinion was for the information of, and directed to, PFG&rsquo;s board of directors (in its capacity as such) in connection with
its consideration of the financial terms of the merger. Olsen Palmer&rsquo;s opinion is not a recommendation as to how any holder
of PFG&rsquo;s common stock should vote with respect to the proposal to approve the merger agreement or any other matter. It does
not address the underlying business decision of PFG to engage in the merger, the relative merits of the merger as compared to any
other alternative business strategies that might exist for PFG or the effect of any other transaction in which PFG might engage.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For further information, please see the section entitled
&ldquo;The Merger&mdash;Opinion of PFG&rsquo;s Financial Advisor&rdquo; beginning on page 35.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Closing
and Effective Time of the Merger (see page 52)</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The closing date is currently expected to occur in the first
quarter of 2020. Simultaneously with the closing of the merger, SmartFinancial will file the articles of merger with the Secretary
of State of the State of Tennessee. The merger will become effective at the later of the time the articles of merger are filed,
or such other time as may be specified in the articles of merger. Neither SmartFinancial nor PFG can predict, however, the actual
date on which the merger will be completed because it is subject to factors beyond each company&rsquo;s control, including whether
or when the required regulatory approvals and PFG&rsquo;s shareholder approvals will be received and whether or when the other
conditions to closing are satisfied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
</DIV>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
<DIV STYLE="padding-right: 5.4pt; padding-left: 5.4pt; border: Black 1pt solid">
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><FONT STYLE="font-family: Times New Roman, Times, Serif"><B>Market
Prices and Share Information (see page </B></FONT><B>17<FONT STYLE="font-family: Times New Roman, Times, Serif">)</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial common stock is listed on the NASDAQ Capital
Market under the symbol &ldquo;SMBK.&rdquo; The following table sets forth the closing sale prices of SmartFinancial common stock
as reported on the NASDAQ Capital Market on October 28, 2019, the last full trading day before the public announcement of the
merger agreement, and on December 18, 2019, the latest practicable trading date before the date of this proxy statement/prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">SmartFinancial<BR>
    Common<BR> Stock</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B>Implied
    Value of<BR> One Share of<BR> PFG<BR> Common Stock to<BR> be Converted<BR> to Merger Consideration<SUP>1</SUP></B></FONT></TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 62%; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">October 28, 2019</TD><TD STYLE="width: 2%; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 10pt Times New Roman, Times, Serif; text-align: right">20.72</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 2%; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 18%; font: 10pt Times New Roman, Times, Serif; text-align: right">1,996.91</TD><TD STYLE="width: 1%; padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">December
    18, 2019</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">23.32</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">$</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">2,159.10</TD><TD STYLE="padding-bottom: 1pt; font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><SUP>1</SUP> Based on 20,721 shares of PFG common stock outstanding
and assuming the maximum amount of the cash component of the Merger Consideration is paid to PFG shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
</DIV>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="cautionary_statement"></A>CAUTIONARY STATEMENT CONCERNING FORWARD-LOOKING
STATEMENTS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Some of the statements contained or incorporated by reference
in this proxy statement/prospectus contain forward-looking statements within the meaning of the Private Securities Litigation Reform
Act of 1995, including, but not limited to, statements about the financial condition, results of operations, earnings outlook and
business plans, goals, expectations and prospects of SmartFinancial, PFG and the combined company following the proposed merger
and statements for the period after the merger. Words such as &ldquo;anticipate,&rdquo; &ldquo;believe,&rdquo; &ldquo;feel,&rdquo;
&ldquo;expect,&rdquo; &ldquo;estimate,&rdquo; &ldquo;indicate,&rdquo; &ldquo;seek,&rdquo; &ldquo;strive,&rdquo; &ldquo;plan,&rdquo;
&ldquo;intend,&rdquo; &ldquo;outlook,&rdquo; &ldquo;forecast,&rdquo; &ldquo;project,&rdquo; &ldquo;position,&rdquo; &ldquo;target,&rdquo;
&ldquo;mission,&rdquo; &ldquo;contemplate,&rdquo; &ldquo;assume,&rdquo; &ldquo;achievable,&rdquo; &ldquo;potential,&rdquo; &ldquo;strategy,&rdquo;
&ldquo;goal,&rdquo; &ldquo;aspiration,&rdquo; &ldquo;outcome,&rdquo; &ldquo;continue,&rdquo; &ldquo;remain,&rdquo; &ldquo;maintain,&rdquo;
&ldquo;trend,&rdquo; &ldquo;objective&rdquo; and variations of such words and similar expressions, or future or conditional verbs
such as &ldquo;will,&rdquo; &ldquo;would,&rdquo; &ldquo;should,&rdquo; &ldquo;could,&rdquo; &ldquo;might,&rdquo; &ldquo;can,&rdquo;
&ldquo;may&rdquo; or similar expressions, as they relate to SmartFinancial, PFG, the proposed merger or the combined company following
the merger often identify forward-looking statements, although not all forward-looking statements contain such words.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">These forward-looking statements are predicated on the beliefs
and assumptions of management based on information known to management as of the date of this proxy statement/prospectus and do
not purport to speak as of any other date. Forward-looking statements may include descriptions of the expected benefits and costs
of the transaction; forecasts of revenue, earnings or other measures of economic performance, including statements of profitability,
business segments and subsidiaries; management plans relating to the merger; the expected timing of the completion of the merger;
the ability to complete the merger; the ability to obtain any required regulatory, shareholder or other approvals; any statements
of the plans and objectives of management for future or past operations, including the execution of integration plans; any statements
of expectation or belief and any statements of assumptions underlying any of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The forward-looking statements contained or incorporated by
reference in this proxy statement/prospectus reflect the view of management as of this date with respect to future events and are
subject to risks and uncertainties. Should one or more of these risks materialize or should underlying beliefs or assumptions prove
incorrect, actual results could differ materially from those anticipated by the forward-looking statements or historical results.
Such risks and uncertainties include, among others, the following possibilities:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the occurrence of any event, change or other circumstances that could give rise to the termination of the merger agreement,
including a termination of the merger agreement under circumstances that could require PFG to pay a termination fee to SmartFinancial;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the inability to complete the merger contemplated by the merger agreement due to the failure to satisfy conditions necessary
to close the merger, including the receipt of the requisite approvals of PFG shareholders;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the risk that a regulatory approval that may be required for the merger is not obtained or is obtained subject to conditions
that are not anticipated;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>risks associated with the timing of the completion of the merger;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="background-color: white">management time and effort may be diverted to the resolution of merger-related issues;
</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the risk that the businesses of SmartFinancial and PFG will not be integrated successfully, or such integration may be more
difficult, time-consuming or costly than expected;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="background-color: white">SmartFinancial&rsquo;s ability to achieve the synergies and value creation contemplated
by the proposed merger with PFG; </FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the expected growth opportunities or costs savings from the merger with PFG may not be fully realized or may take longer to
realize than expected;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>revenues following the transaction may be lower than expected as a result of losses of customers or other reasons;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>potential deposit attrition, higher than expected costs, customer loss and business disruption associated with SmartFinancial&rsquo;s
integration of PFG, including, without limitation, potential difficulties in maintaining relationships with key personnel;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the outcome of any legal proceedings that may be instituted against SmartFinancial or PFG or their respective boards of directors;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>general economic conditions, either globally, nationally, in the State of Tennessee, or in the specific markets in which SmartFinancial
or PFG operate;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>limitations placed on the ability of SmartFinancial and PFG to operate their respective businesses by the merger agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the effect of the announcement of the merger on SmartFinancial&rsquo;s and PFG&rsquo;s business relationships, employees, customers,
suppliers, vendors, other partners, standing with regulators, operating results and businesses generally;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>customer acceptance of the combined company&rsquo;s products and services;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the amount of any costs, fees, expenses, impairments and charges related to the merger;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>fluctuations in the market price of SmartFinancial common stock and the related effect on the market value of the merger consideration
that PFG shareholders will receive upon completion of the merger;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the introduction, withdrawal, success and timing of business initiatives;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>significant increases in competition in the banking and financial services industry;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>legislation, regulatory changes or changes in monetary or fiscal policy that adversely affect the businesses in which SmartFinancial
or PFG are engaged, including potential changes resulting from currently proposed legislation;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>credit risk of borrowers, including any increase in those risks due to changing economic conditions;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes in consumer spending, borrowing, and savings habits;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>competition among depository and other financial institutions;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>liquidity risk affecting SmartFinancial&rsquo;s or PFG&rsquo;s ability to meet their respective obligations when they become
due;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>interest rate risk involving the effect of a change in interest rates;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>compliance risk resulting from violations of, or nonconformance with, laws, rules, regulations, prescribed practices or ethical
standards;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>strategic risk resulting from adverse business decisions or improper implementation of business decisions;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>reputational risk that adversely affects earnings or capital arising from negative public opinion;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>terrorist activities risk that results in loss of consumer confidence and economic disruptions; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>other risks and uncertainties detailed from time to time in SmartFinancial&rsquo;s SEC filings.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Any forward-looking statements made in this proxy statement/prospectus
or in any documents incorporated by reference into this proxy statement/prospectus, are subject to the protection of the safe harbor
for forward-looking statements contained in the Private Securities Litigation Reform Act of 1995. You are cautioned not to place
undue reliance on these statements, which speak only as of the date of this proxy statement/prospectus or the date of any document
incorporated by reference in this proxy statement/prospectus. SmartFinancial and PFG do not undertake to update forward-looking
statements to reflect facts, circumstances, assumptions or events that occur after the date the forward-looking statements are
made, unless and only to the extent otherwise required by law. All subsequent written and oral forward-looking statements concerning
the merger or other matters addressed in this proxy statement/prospectus and attributable to SmartFinancial, PFG or any person
acting on their behalf are expressly qualified in their entirety by the cautionary statements contained or referred to in this
proxy statement/prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="comparativemarket"></A>COMPARATIVE MARKET PRICES AND DIVIDENDS</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>SmartFinancial</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial common stock is listed on the NASDAQ
Capital Market under the symbol &ldquo;SMBK.&rdquo; There is no established public trading market for PFG common stock and
shares of PFG common stock are traded solely in individually-arranged transactions between buyers and sellers. As of December
18, 2019, the latest practicable date prior to this proxy statement/prospectus, there were 14,002,68  shares
of SmartFinancial common stock outstanding (inclusive of 34,000 unvested shares of restricted stock having voting rights),
which were held by approximately  1,063 holders of record. As of the record date for the PFG special meeting, there were
20,721 shares of PFG common stock outstanding, which were held by approximately 36 holders of record. The following table
sets forth the high and low reported intra-day sales prices per share of SmartFinancial common stock, and the cash dividends
declared per share for the periods indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="10" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">SmartFinancial
    Common Stock</TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: left; white-space: nowrap"><B>&nbsp;</B></TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap"><B>&nbsp;</B></TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><B>Sales
    Price</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; white-space: nowrap"><B>&nbsp;</B></TD><TD STYLE="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap"><B>&nbsp;</B></TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; text-align: center; white-space: nowrap"><B>Dividends<BR> Declared Per</B></TD><TD STYLE="padding-bottom: 1pt; font-size: 10pt; white-space: nowrap"><B>&nbsp;</B></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: left; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">High</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Low</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Share</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">2017</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 55%; font: 10pt Times New Roman, Times, Serif; text-align: left">First Quarter</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 10pt Times New Roman, Times, Serif; text-align: right">23.20</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 10pt Times New Roman, Times, Serif; text-align: right">17.17</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 12%; font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Second Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">26.26</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">20.35</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Third Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">25.95</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">22.31</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Fourth Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">24.98</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">21.10</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">2018</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">First Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">23.90</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">20.50</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Second Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">27.50</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">22.94</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Third Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">27.69</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">19.49</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Fourth Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">23.99</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">16.17</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">2019</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">First Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">20.49</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">17.15</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Second Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">21.91</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">18.99</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Third Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">22.75</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">18.73</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fourth
    Quarter (through December 18, 2019)</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">23.99</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">19.73</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.05</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On October 28, 2019, the last full trading day before the
public announcement of the merger agreement, the closing sale price per share of SmartFinancial common stock was $20.72, and on
December 18, 2019, the latest practicable date before the date of this proxy statement/prospectus, the closing sale price per
share of SmartFinancial common stock was $23.32.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG shareholders are advised to obtain current market quotations
for SmartFinancial common stock. The market price of SmartFinancial common stock will fluctuate between the date of this proxy
statement/prospectus and the date of completion of the merger. No assurance can be given concerning the market price of SmartFinancial
common stock before or after the effective date of the merger. Changes in the market price of SmartFinancial common stock prior
to the completion of the merger may affect the market value of the merger consideration that PFG shareholders will receive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The principal sources of funds to SmartFinancial to pay dividends
are the dividends received from SmartBank. Consequently, dividends are dependent upon SmartBank&rsquo;s earnings, capital needs,
regulatory policies, as well as statutory and regulatory limitations. Federal and state banking laws and regulations restrict the
number of dividends and loans a bank may make to its parent company. Approval by SmartFinancial&rsquo;s regulators is required
if the total of all dividends declared in any calendar year exceed the total of its net income for that year combined with its
retained net income of the preceding two&nbsp;years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>PFG</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">There is no established public trading market for the shares
of PFG common stock, and no market for PFG common stock is expected to develop if the merger does not occur. No registered broker/dealer
makes a market in the PFG common stock, and no shares of such stock are listed for trading or quoted on any stock exchange or automated
quotation system. PFG acts as the transfer agent and registrar for its own shares. The following table sets forth the known private
sales or purchases of PFG&rsquo;s common stock during 2017, 2018 and 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="6" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid">PFG Common Stock</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Shares Sold</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Purchase<BR>
Price Per<BR>
Share</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 66%; font: 10pt Times New Roman, Times, Serif">July 2017</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font: 10pt Times New Roman, Times, Serif; text-align: right">50</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 14%; font: 10pt Times New Roman, Times, Serif; text-align: right">1,390.45</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">September 2017</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">60</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,500.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">December 2017</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">200</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,490.86</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">January 2018</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">50</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,495.44</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">May 2018</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">60</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,500.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">July 2018</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">25</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,486.72</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">October 2018</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">100</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,513.70</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">March 2019</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">160</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">1,390.45</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG&rsquo;s general dividend policy is to pay cash dividends
once or twice per year. During 2017, PFG declared dividends of&#8201; $28.96 per share and paid dividends of&#8201; $28.96 per
share. During 2018, PFG declared dividends of&#8201; $26.06 per share and paid dividends of&#8201; $26.06 per share. For the nine&nbsp;months
ended September&nbsp;30, 2019, PFG declared dividends of&#8201; $44.40 per share and paid dividends of&#8201; $44.40 per share.
Under the terms of the merger agreement, PFG is permitted to pay a dividend to its shareholders on or before February 29, 2020
in an amount that would be sufficient for the PFG shareholders to satisfy their respective tax obligations in connection with
their pro rata share of the income of PFG for the 2019 tax year, and will also be permitted to make a one-time dividend to its
shareholders immediately prior to closing for purposes of satisfying PFG&rsquo;s shareholders&rsquo; tax obligations in connection
with their pro rata share of the income of PFG for the 2020 tax year. Additionally, PFG will be permitted to pay a one-time dividend
immediately prior to closing in the amount of the balance of PFG&rsquo;s accumulated adjustment account.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 20pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following table sets forth the PFG cash dividends declared
per share for the periods indicated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 50%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">PFG
    Common Stock</TD><TD STYLE="padding-bottom: 1pt; font: bold 10pt Times New Roman, Times, Serif">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: left; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: center; white-space: nowrap; border-bottom: Black 1pt solid">Dividends
    Declared<BR>
    Per Share</TD><TD STYLE="font: bold 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">2017</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="width: 75%; font: 10pt Times New Roman, Times, Serif; text-align: left">First Quarter</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="width: 22%; font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Second Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Third Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">28.96</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Fourth Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">2018</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">First Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">26.06</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Second Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Third Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Fourth Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">2019</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">First Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Second Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">44.40</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Third Quarter</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt; text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Fourth
    Quarter (through December 18, 2019)</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">$</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: right">0.00</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="riskfactor"></A>RISK FACTORS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>In addition to general investment risks and the other information
contained in or incorporated by reference into this proxy statement/prospectus, including the matters addressed under the section
&ldquo;Cautionary Statement Concerning Forward-Looking Statements,&rdquo; you should carefully consider the following risk factors
in deciding how to vote for the proposals presented in this proxy statement/prospectus. You should also consider the other information
in this proxy statement/prospectus and the other documents incorporated by reference into this proxy statement/prospectus. See
&ldquo;Where You Can Find More Information.&rdquo;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="riskrelatedtothe"></A>Risks Related to the Merger</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Because of the fluctuation of the market price of
SmartFinancial common stock, PFG shareholders will not know at the time of the special meeting the market value of the merger consideration
they will receive at the effective time of the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At the effective time of the merger, each share of
PFG common stock issued and outstanding immediately prior to the effective time of the merger will be converted into the
right to receive &nbsp;a pro&nbsp;rata portion (which is a ratio equal to one divided by the number of shares of PFG common
stock issued and outstanding as of the closing)&nbsp;of (1) an aggregate amount of cash equal to $14,595,354.37 minus the
amount of any pre-closing dividend paid by PFG and any loss in excess of $250,000 realized by PFG or its applicable
subsidiary on sales of certain assets prior to closing, and (2) 1,292,592.556 shares of SmartFinancial common stock. Assuming
that PFG does not pay any dividends from its accumulated adjustment account prior to the merger, the holders of PFG common
stock would receive approximately $704.375 and 62.3808 shares of SmartFinancial common stock (plus cash in lieu of fractional
shares) for each share of PFG common stock they own. Based on the closing sale price of SmartFinancial common stock on
December 18, 2019 of $23.32 per share, which, represents, approximately $2,159.10 in
total merger consideration per share of PFG common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The market value of the shares of SmartFinancial common stock
as merger consideration may vary from the market value on the date PFG and SmartFinancial announced the merger, on the date that
this proxy statement/prospectus is mailed, on the date of the PFG special meeting and on the date the merger is completed and thereafter
due to fluctuations in the market price of SmartFinancial common stock. Any fluctuation in the market price of SmartFinancial common
stock after the date of this proxy statement/prospectus will change the value of the shares of SmartFinancial common stock that
PFG shareholders may receive. Stock price changes may result from a variety of factors that are beyond the control of SmartFinancial
and PFG, including but not limited to general market and economic conditions, changes in their respective businesses, operations
and prospects and regulatory considerations. Therefore, at the time of the PFG special meeting, PFG shareholders will not know
the precise market value of the merger consideration they may receive at the effective time of the merger. In addition, PFG shareholders
will not know the exact exchange ratio at the time of the PFG special meeting, as it may be adjusted as a result of the measurement
price. PFG shareholders should obtain current sale prices for shares of SmartFinancial common stock and PFG common stock before
voting their shares at the PFG special meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger and related transactions are subject
to approval by PFG shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger cannot be completed unless the PFG shareholders approve
the merger agreement by the affirmative vote of the holders of at least a majority of the outstanding shares of PFG&rsquo;s common
stock entitled to vote at the PFG special meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Failure to complete the merger could negatively
affect the value of the shares and the future business and financial results of PFG.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the merger is not completed, the ongoing business of PFG
could be adversely affected and PFG will be subject to a variety of risks associated with the failure to complete the merger, including
the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>PFG being required, under certain circumstances, to pay to SmartFinancial a termination fee equal to $2,000,000;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>substantial costs incurred by PFG in connection with the proposed merger, such as legal, accounting, financial advisor, printing
and mailing fees;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the loss of key employees and customers;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the disruption of operations and business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>deposit attrition, customer loss and revenue loss;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>unexpected problems with costs, operations, personnel, technology and credit;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>diversion of management focus and resources from operational matters and other strategic opportunities while working to implement
the merger; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>reputational harm due to the adverse perception of any failure to successfully complete the merger.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the merger is not completed, these risks could materially
affect the business, financial results and the value of PFG common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG will be subject to business uncertainties and
contractual restrictions while the merger is pending.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Uncertainty about the effect of the merger on employees and
customers may have an adverse effect on PFG. These uncertainties may impair PFG&rsquo;s ability to attract, retain and motivate
key personnel until the merger is completed, and could cause customers and others that deal with PFG to seek to change existing
business relationships with PFG. Retention of certain employees by PFG may be challenging while the merger is pending, as certain
employees may experience uncertainty about their future roles with PFG or SmartFinancial. If key employees depart because of issues
relating to the uncertainty and difficulty of integration or a desire not to remain with PFG or SmartFinancial, PFG&rsquo;s business
or the business assumed by SmartFinancial following the merger could be harmed. In addition, PFG has agreed to certain contractual
restrictions on the operation of its business prior to closing. See &ldquo;The Merger Agreement&mdash;Covenants and Agreements&rdquo;
for a description of the restrictive covenants applicable to PFG.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger agreement limits PFG&rsquo;s ability
to pursue an alternative acquisition proposal and requires PFG to pay a termination fee of $2,000,000 under limited circumstances
relating to alternative acquisition proposals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the merger agreement, PFG has agreed not to initiate,
solicit, induce or knowingly encourage, or take any action to facilitate any alternative business combination transaction or,
subject to certain exceptions, participate in discussions or negotiations regarding, or furnish any non-public information relating
to, any alternative business combination transaction. See &ldquo;The Merger Agreement&mdash;No Solicitation&rdquo; on page 62.
The merger agreement also provides for PFG to pay to SmartFinancial a termination fee in the amount of $2,000,000 in the event
that the merger agreement is terminated for certain reasons. See &ldquo;The Merger Agreement&mdash;Termination Fee&rdquo; on page
66. These provisions could discourage a potential competing acquirer that might have an interest in acquiring PFG from considering
or making a competing acquisition proposal, even if the potential competing acquirer was prepared to pay consideration with a
higher per share cash value than the market value proposed to be received or realized in the merger, or might result in a potential
competing acquirer proposing to pay a lower price than it might otherwise have proposed to pay because of the added expense of
the termination fee that may become payable in certain circumstances under the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger agreement contains provisions granting
both PFG and SmartFinancial the right to terminate the merger agreement in certain circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger agreement contains certain termination rights, including
the right, subject to certain exceptions, of either party to terminate the merger agreement if the merger is not completed on or
prior to June 30, 2020 (subject to automatic extension to September 30, 2020 if the only outstanding condition to closing is the
receipt of regulatory approvals) and the right of PFG to terminate the merger agreement, subject to certain conditions, to accept
a business combination transaction deemed to be superior to the merger by the PFG board of directors. If the merger is not completed,
the ongoing business of PFG could be adversely affected and PFG will be subject to several risks, including the risks described
elsewhere in this &ldquo;Risk Factors&rdquo; section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger is subject to a number of conditions
which, if not satisfied or waived in a timely manner, would delay the merger or adversely impact the companies&rsquo; ability to
complete the transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The completion of the merger is subject to certain conditions,
including, among others, the (1) approval of the merger agreement by the holders of at least a majority of the outstanding shares
of PFG common stock entitled to vote at the PFG special meeting; (2) the receipt of all required regulatory approvals for the
merger, without the imposition of any material on-going conditions or restrictions, and the expiration of all regulatory waiting
periods; (3) the absence of any legal restraint (such as an injunction or restraining order) that would prevent the consummation
of the merger; (4) the effectiveness of the registration statement of which this proxy statement/prospectus forms a part; (5)
each party&rsquo;s receipt of a tax opinion from its respective outside legal counsel, dated the closing date of the merger, confirming
the merger qualifies as a &ldquo;reorganization&rdquo; within the meaning of Section 368(a) of the Code; (6) the Plan of Bank
Merger in the form attached as Exhibit B to the merger agreement attached as <U>Annex A</U> to this document being executed and
delivered; (7) the absence of 7.5% or more of the outstanding shares of PFG&rsquo;s common stock exercising their dissenters&rsquo;
rights; (8) the absence of the occurrence of a material adverse effect on PFG or SmartFinancial; (9) receipt of all consents necessary
for the consummation of the merger; (10) entry of certain employees of PFG and its subsidiaries into new employment arrangements;
and (11) other customary closing conditions set forth in the merger agreement. See &ldquo;The Merger Agreement&mdash;Conditions
to Completion of the Merger&rdquo; on page 64. While it is currently anticipated that the merger will be completed during the
first quarter of 2020, there can be no assurance that such conditions will be satisfied in a timely manner or at all, or that
an effect, event, development or change will not transpire that could delay or prevent these conditions from being satisfied.
Accordingly, there can be no guarantee with respect to the timing of the closing of the merger, whether the merger will be completed
at all and when PFG shareholders will receive the merger consideration, if at all.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>SmartFinancial and PFG may waive
one or more of the conditions to the merger without re-soliciting shareholder approval for the merger.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Each of the conditions to the obligations
of SmartFinancial and PFG to complete the merger may be waived, in whole or in part, to the extent permitted by applicable law,
by agreement of SmartFinancial and PFG, if the condition is a condition to both parties&rsquo; obligation to complete the merger,
or by the party for which such condition is a condition of its obligation to complete the merger. The boards of directors of SmartFinancial
and PFG may evaluate the materiality of any such waiver to determine whether amendment of this proxy statement/prospectus and re-solicitation
of proxies are necessary. SmartFinancial and PFG, however, generally do not expect any such waiver to be significant enough to
require re-solicitation of shareholders. In the event that any such waiver is not determined to be significant enough to require
re-solicitation of shareholders, the companies will have the discretion to complete the merger without seeking further shareholder
approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Regulatory approvals may not be received, may take
longer than expected or impose conditions that are not presently anticipated.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Before the transactions contemplated by the merger agreement
may be completed, approvals or waivers must be obtained from various regulatory authorities, which include the Federal Reserve
Board, the TDFI, and other securities and regulatory authorities. These governmental entities may request additional information
or materials regarding the regulatory applications and notices submitted by SmartFinancial and PFG or may impose conditions on
the granting of such approvals. Such conditions or changes and the process of obtaining regulatory approvals could have the effect
of delaying the completion of the merger or of imposing additional costs or limitations on the combined company following the
merger. The regulatory approvals may not be received at all, may not be received in a timely fashion, and may contain conditions
on the completion of the merger that are not anticipated or cannot be met. There can be no assurance as to whether these and other
regulatory approvals will be received, the timing of those approvals, or whether any conditions will be imposed. See &ldquo;The
Merger&mdash;Regulatory Approvals Required for the Merger&rdquo; on page 45.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">The directors and executive officers of PFG have
interests in seeing the merger completed that are different from, or in addition to, those of the other PFG shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The directors and executive officers of PFG have arrangements
that provide them with interests in the merger that are different from, or in addition to, those of the shareholders of PFG generally.
These interests and arrangements may create potential conflicts of interest and may influence or may have influenced the directors
and executive officers of PFG to support or approve the merger and the merger agreement. See &ldquo;The Merger&mdash;Interests
of PFG&rsquo;s Directors and Executive Officers in the Merger&rdquo; beginning on page 42.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">The opinion of PFG&rsquo;s financial advisor does
not reflect changes in circumstances between the date of such opinion and the completion of the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG&rsquo;s board of directors received an opinion from
its financial advisor to the effect that, as of October 29, 2019, and subject to the qualifications, assumptions and limitations
set forth therein, the exchange ratio was fair, from a financial point of view, to the holders of PFG common stock. Subsequent
changes in the operations and prospects of PFG or SmartFinancial, general market and economic conditions and other factors that
may be beyond the control of PFG or SmartFinancial, may significantly alter the value of PFG or SmartFinancial or the price of
the shares of SmartFinancial common stock by the time the merger is completed. The opinion does not address the fairness of the
exchange ratio from a financial point of view at the time the merger is completed, or as of any other date other than the date
of such opinion. The opinion of PFG&rsquo;s financial advisor is attached as <U>Annex B</U> to this proxy statement/prospectus.
For a description of the opinion, see &ldquo;The Merger&mdash;Opinion of PFG&rsquo;s Financial Advisor&rdquo; on page 35.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The merger may be completed even if SmartFinancial or
PFG experiences adverse changes in its business.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In general, either SmartFinancial or PFG may refuse to complete
the merger if the other party suffers a material adverse effect on its business prior to the closing of the merger. However, certain
types of changes or occurrences with respect to SmartFinancial or PFG would not prevent the merger from going forward, even if
the change or occurrence would have adverse effects on SmartFinancial or PFG, including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes in laws and regulations affecting financial institutions and their holding companies generally, or interpretations
thereof by courts or governmental entities, if such changes do not have a disproportionate impact on the affected company;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes in GAAP or regulatory accounting requirements generally applicable to financial institutions and their holding companies,
if such changes do not have a disproportionate impact on the affected company;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes in global, national or regional political conditions including the outbreak of war or acts of terrorism, or in economic
or market conditions affecting the financial services industry generally, if such changes do not have a disproportionate impact
on the affected company;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes or effects from the announcement of the merger agreement and the transactions contemplated thereby, and compliance
by the parties with the merger agreement on the business, financial condition or results of operations of the parties;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>any failure by PFG of SmartFinancial to meet any internal or published industry analyst projections or forecasts or estimates
of revenues or earnings for any period (but not including the underlying causes thereof);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>changes in the trading price or trading volume of SmartFinancial common stock (but not including the underlying causes thereof
unless otherwise specifically excluded); and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the impact of the merger agreement and the transactions contemplated thereby on relationships with customers or employees,
including the loss of personnel subsequent to the date of the merger agreement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Litigation in transactions of
this type are sometimes filed against the board of directors of either party that could prevent or delay the completion of the
merger or result in the payment of damages following completion of the merger.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">In connection with the merger, it is
possible that PFG shareholders may file putative class action lawsuits against the boards of directors of SmartFinancial and/or
PFG. Among other remedies, these shareholders could seek to enjoin the merger. The outcome of any such litigation would be uncertain.
If a dismissal is not granted or a settlement is not reached, such potential lawsuits could prevent or delay completion of the
merger and result in substantial costs to SmartFinancial and PFG. The defense or settlement of any lawsuit or claim that remains
unresolved at the time the merger is consummated may adversely affect the combined company&rsquo;s business, financial condition,
results of operations, cash flows and market price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="riskrelatedtothecombinedcompany"></A>Risks Related to the Combined Company Following the Merger</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">The combined company expects to incur substantial
expenses related to the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The combined company expects to incur substantial expenses in
connection with completing the merger and integrating the business and operations of PFG and SmartFinancial. Although SmartFinancial
and PFG have assumed that a certain level of transaction and integration expenses would be incurred, there are a number of factors
beyond their control that could affect the total amount or the timing of their integration expenses. Many of the expenses that
will be incurred, by their nature, are difficult to estimate accurately at the present time. As a result, the transaction and integration
expenses associated with the merger could, particularly in the near term, exceed the savings that the combined company expects
to achieve from the integration of the businesses following the completion of the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">Following the merger, the combined company may be
unable to integrate PFG&rsquo;s business with SmartFinancial successfully and realize the anticipated synergies and other benefits
of the merger or do so within the anticipated timeframe.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger involves the combination of two companies that currently
operate as independent companies, as well as the companies&rsquo; subsidiaries. Although the combined company is expected to benefit
from certain synergies, including cost savings, the combined company may encounter potential difficulties in the integration process,
including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the inability to successfully combine PFG&rsquo;s business with SmartFinancial in a manner that permits the combined company
to achieve the cost savings anticipated to result from the merger, which would result in the anticipated benefits of the merger
not being realized in the timeframe currently anticipated or at all;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the risk of not realizing all of the anticipated operational efficiencies or other anticipated strategic and financial benefits
of the merger within the expected timeframe or at all;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>potential unknown liabilities and unforeseen increased expenses, delays or regulatory conditions associated with the merger;
and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>performance shortfalls as a result of the diversion of management&rsquo;s attention caused by completing the merger and integrating
the companies&rsquo; operations.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For all these reasons, you should be aware that it is possible
that the integration process could result in the distraction of the combined company&rsquo;s management, the disruption of the
combined company&rsquo;s ongoing business or inconsistencies in the combined company&rsquo;s operations, any of which could adversely
affect the ability of the combined company to maintain relationships with customers and employees or to achieve the anticipated
benefits of the merger, or could otherwise adversely affect the business and financial results of the combined company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Following the merger, the combined company may be unable
to retain key employees. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The success of the combined company after the merger will depend
in part upon its ability to retain key employees. Key employees may depart either before or after the merger because of issues
relating to the uncertainty and difficulty of integration or a desire not to remain with the combined company following the merger.
Accordingly, no assurance can be given that PFG or SmartFinancial or, following the merger, the combined company will be able to
retain key employees.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">The voting power of PFG shareholders will be diluted
by the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger will result in PFG shareholders having an ownership
stake in the combined company that is smaller than their current stake in PFG. &nbsp;Upon completion of the merger of PFG with
SmartFinancial, we estimate that PFG shareholders will own approximately 8.45% of the issued and outstanding shares of common
stock of the combined company. Consequently, PFG shareholders, as a general matter, will have less influence over the management
and policies of the combined company after the effective time of the merger than they currently exercise over the management and
policies of PFG.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white"><B><I>Future capital needs could result
in dilution of shareholder investment.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">SmartFinancial&rsquo;s board of directors
may determine from time to time there is a need to obtain additional capital through the issuance of additional shares of its common
stock or other securities. These issuances would dilute the ownership interests of its shareholders and may dilute the per share
book value of SmartFinancial common stock. New investors may also have rights, preferences and privileges senior to SmartFinancial&rsquo;s
shareholders which may adversely impact its shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 24.5pt; background-color: white">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="risksrelatetoaninvestmentinthe"></A>Risks Related to an Investment in the Combined Company&rsquo;s
Common Stock</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The market price of the shares of common stock of the
combined company may be affected by factors different from those affecting the price of shares of SmartFinancial common stock before
the merger. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The results of operations of the combined company, as well
as the market price of shares of the common stock of the combined company after the merger, may be affected by factors in addition
to those currently affecting SmartFinancial&rsquo;s or PFG&rsquo;s results of operations and the market prices of shares of SmartFinancial
common stock. Accordingly, the historical financial results of SmartFinancial and PFG and the historical market prices of shares
of SmartFinancial common stock may not be indicative of these matters for the combined company after the merger. For a discussion
of the businesses of SmartFinancial and PFG and certain risks to consider in connection with evaluating the proposals to be considered
at the PFG special meeting, see the documents incorporated by reference by SmartFinancial into this proxy statement/prospectus
referred to under &ldquo;Where You Can Find More Information&rdquo; beginning on page 85.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The market price of the combined company&rsquo;s
common stock may decline as a result of the merger. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The market price of the combined company&rsquo;s common stock
may decline as a result of the merger if the combined company does not achieve the perceived benefits of the merger or the effect
of the merger on the combined company&rsquo;s financial results is not consistent with the expectations of financial or industry
analysts. In addition, upon completion of the merger, SmartFinancial and PFG shareholders will own interests in a combined company
operating an expanded business with a different mix of assets, risks and liabilities. Current SmartFinancial and PFG shareholders
may not wish to continue to invest in the combined company, or for other reasons may wish to dispose of some or all of their shares
of the combined company.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>After the merger is completed, PFG shareholders who receive
shares of SmartFinancial common stock in the merger will have different rights that may be less favorable than their current rights
as PFG shareholders. </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">After the closing of the merger, PFG shareholders who receive
shares of SmartFinancial common stock in the merger will have different rights than they currently have as PFG shareholders, which
may be less favorable than their current rights as PFG shareholders. For a detailed discussion of the significant differences
between the current rights of a shareholder of PFG and the rights of a shareholder of the combined company following the merger,
see &ldquo;Comparison of Rights of SmartFinancial Shareholders and PFG Shareholders&rdquo; beginning on page 77.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="risksrelatedtotax"></A>Risks Related to Tax</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger may have adverse tax consequences.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each of SmartFinancial and PFG expects the merger to qualify
as a &ldquo;reorganization&rdquo; within the meaning of Section 368(a) of the Code. It is a condition to the respective obligations
of SmartFinancial and PFG to complete the merger that each of SmartFinancial and PFG receives a tax opinion from its respective
outside legal counsel, dated the closing date of the merger, to the effect that the merger will so qualify. A legal opinion represents
the judgment of counsel rendering the opinion and is not binding on the Internal Revenue Service or the courts. If the merger were
to fail to qualify as a reorganization within the meaning of Section 368(a) of the Code, then each holder of PFG common stock generally
would recognize gain or loss, as applicable, equal to the difference between (1) the sum of the fair market value of the shares
of SmartFinancial common stock received by such holder in the merger and the amount of cash received by such U.S. holder in the
merger and (2) its adjusted tax basis in the shares of PFG common stock surrendered in exchange therefor. The consequences of the
merger to any particular shareholder will depend on that shareholder&rsquo;s individual situation. <B>We strongly urge you to consult
your own tax advisor to determine the particular tax consequences of the merger to you</B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>The PFG pre-closing distributions may have adverse tax
consequences</I></B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each of SmartFinancial and PFG expects the pre-closing distributions
by PFG to its shareholders (inclusive of the AAA dividend, the 2019 tax distribution and the 2020 tax distribution) to be respected
as distributions and not treated as merger consideration. There can be no assurance that the Internal Revenue Service will not
take a different position concerning the tax consequences of the pre-closing distributions or that any such position would not
be sustained. If the IRS were to take the position that the pre-closing distributions should be treated as merger consideration
then the PFG shareholders will generally recognize capital gain (but not loss) equal to the lesser of (i) the excess, if any, of
the amount of cash plus the fair market value of any SmartFinancial common stock received in the merger over the U.S. holder&rsquo;s
tax basis in the shares of PFG common stock surrendered in exchange therefor and (ii) the amount of cash received by the PFG shareholder
in the merger (other than cash received in lieu of a fractional shares).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For further information on the tax consequences of cash
received as merger consideration, see &ldquo;The Merger&mdash;Material U.S. Federal Income Tax Consequences beginning on page
46.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="risksrelatedtosmartfinancial"></A>Risks Related to SmartFinancial&rsquo;s Business</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: italic bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">There are certain risks relating to SmartFinancial&rsquo;s
business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">You should read and consider risk factors specific to SmartFinancial&rsquo;s
business that will also affect the combined company after the merger. These risks are described in the section entitled &ldquo;Risk
Factors&rdquo; in SmartFinancial&rsquo;s <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000006/smbk_123118x10kdocument.htm" STYLE="-sec-extract: exhibit">Annual
Report on Form 10-K for the year ended December&nbsp;31, 2018</A> and in other documents incorporated by reference into this proxy
statement/prospectus. See &ldquo;Where You Can Find More Information&rdquo; on page&nbsp;85 for the location of information incorporated
by reference into this proxy statement/prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="thepfgspecialmeeting"></A>THE PFG SPECIAL MEETING</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>This proxy statement/prospectus is being provided to the
holders of PFG common stock as part of a solicitation of proxies by the PFG board of directors for use at the PFG special meeting
to be held at the time and place specified below and at any properly convened meeting following an adjournment thereof. This proxy
statement/prospectus provides the holders of PFG common stock with information they need to know to be able to vote or instruct
their vote to be cast at the PFG special meeting.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="general"></A>General</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">With respect to PFG shareholders, this document constitutes
a proxy statement of PFG in connection with its solicitation of proxies from its shareholders for the vote on the merger proposal,
on approval and adoption of the merger agreement, and on the adjournment proposal. The proxy statement/prospectus is being mailed
to PFG shareholders of record on or about December 26, 2019, together with the notice of the special meeting and a proxy solicited
by PFG&rsquo;s board of directors for use at the special meeting and at any adjournments or postponements of the special meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="datetimeandplace"></A>Date, Time and Place</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The special meeting will be held on January 28, 2020 at
1:00 p.m., Central Time, at the main office of Progressive Savings Bank at 500 N. Main Street, Jamestown, Tennessee 38556.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="purposesofthepfgspecialmee"></A>Purpose of the PFG Special Meeting</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At the special meeting, PFG shareholders will be asked to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: left"><FONT STYLE="font-size: 10pt">approve the merger proposal; and</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">&#9679;</TD><TD STYLE="text-align: left">approve the adjournment proposal.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each copy of this proxy statement/prospectus mailed to PFG shareholders
is accompanied by a proxy form for use at the special meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Completion of the merger is conditioned on, among other things,
the approval of the merger by the PFG shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No other matter can be brought up or voted upon at the PFG special
meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="proposalonemergerproposal"></A>Proposal One: Merger Proposal</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG is asking its shareholders to approve the merger proposal.
After careful consideration, PFG&rsquo;s board of directors determined that the merger agreement and the transactions contemplated
thereby, including the merger, were advisable and in the best interests of PFG and PFG&rsquo;s shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG shareholders should carefully read this document in
its entirety, including the annexes and the documents incorporated by reference, for more detailed information concerning the
merger agreement and the merger. For a detailed discussion of the merger, including the terms and conditions of the merger agreement,
see &ldquo;The Merger Agreement,&rdquo; beginning on page 52. In addition, PFG shareholders are directed to the merger agreement,
a copy of which is attached as <U>Annex A</U> to this document and incorporated in this document by reference.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="proposaltwoadjourprop"></A>Proposal Two: Adjournment Proposal</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If, at the PFG special meeting, the number of shares of PFG
common stock present or represented and voting in favor of the merger proposal is insufficient to approve the merger proposal,
PFG may move to adjourn the PFG special meeting in order to enable the PFG board of directors to solicit additional proxies for
approval of the merger proposal. In that event, PFG&rsquo;s shareholders will be asked to vote upon the adjournment proposal and
not the merger proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the adjournment proposal, PFG is asking its shareholders
to authorize the holder of any proxy solicited by its board of directors to vote in favor of granting discretionary authority to
the PFG board of directors to adjourn the PFG special meeting to another time and place for the purpose of soliciting additional
proxies. If PFG&rsquo;s shareholders approve the adjournment proposal, PFG could adjourn the PFG special meeting and any adjourned
session of the PFG special meeting and use the additional time to solicit additional proxies, including the solicitation of proxies
from PFG shareholders who have previously voted. If a quorum is not present at the meeting, the meeting will not be convened to
conduct business and neither the merger proposal nor the adjournment proposal will be considered. In the absence of a quorum, PFG
may adjourn the meeting to a later date or time to solicit additional proxies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="recommendationofthepfgboard"></A>Recommendation of the PFG Board of Directors</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The PFG board of directors has determined that transactions
contemplated by the merger agreement, including the merger and the bank merger, each on the terms and conditions set forth in the
merger agreement, are in the best interests of PFG and its shareholders and has approved and adopted the merger agreement. The
PFG board of directors unanimously recommends that PFG shareholders vote &ldquo;FOR&rdquo; the merger proposal and &ldquo;FOR&rdquo;
the adjournment proposal. See &ldquo;The Merger- PFG&rsquo;s Reasons for the Merger&rdquo; for a more detailed discussion of the
PFG board of directors&rsquo; recommendation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the course of reaching its decision to approve the merger
agreement and the merger, PFG&rsquo;s board of directors, among other things, consulted with its legal advisors, Baker, Donelson,
Bearman, Caldwell, &amp; Berkowitz, a Professional Corporation, or Baker Donelson, regarding the legal terms of the merger agreement,
and with its financial advisor, Olsen Palmer, as to the fairness, from a financial point of view and as of the date of the opinion,
to the PFG shareholders of the merger consideration. For a discussion of the factors considered by PFG&rsquo;s board of directors
in reaching its conclusion, see &ldquo;The Merger- PFG&rsquo;s Reasons for the Merger.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="recorddateshareholdersentitled"></A>Record Date; Shareholders Entitled to Vote</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">The PFG board of directors has fixed the
close of business on December 17, 2019&nbsp;as the record date for determining the PFG shareholders entitled to receive notice
of and to vote at the special meeting. As of the record date, there were 20,721 shares of PFG common stock outstanding and entitled
to vote at the special meeting held by approximately 36 holders of record. Each share of PFG common stock entitles the holder
to one vote at the special meeting on each proposal to be considered at the special meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">The presence at the special meeting, in person
or by proxy, of holders of a majority of the outstanding shares of PFG common stock entitled to vote at the special meeting will
constitute a quorum for the transaction of business. All shares of PFG common stock present in person or represented by proxy,
including abstentions and broker non-votes, if any, will be treated as present for purposes of determining the presence or absence
of a quorum for all matters voted on at the special meeting, including any adjournment thereof (unless a new record date is or
must be set for the adjourned meeting).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="quorumandadjourment"></A>Quorum and Adjournment</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">No business may be transacted at the PFG special
meeting unless a quorum is present. Holders representing at least a majority of the issued and outstanding shares of PFG common
stock entitled to vote at the PFG special meeting must be present, in person or represented by proxy, to constitute a quorum.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Approval of the adjournment proposal requires
the affirmative vote of a majority of the votes cast on the matter. No notice of an adjourned PFG special meeting need be given
if the new date, time, and place are announced at the special meeting before adjournment, and no new record date is required to
be set. If the meeting is adjourned to a date more than four (4) months after the date fixed for the original meeting, a new record
date must be set, and a new notice must be given to the shareholders as of the new record date. At any adjourned PFG special meeting,
all proxies will be voted in the same manner as they would have been voted at the original convening of the PFG special meeting,
except for any proxies that have been effectively revoked or withdrawn prior to the adjourned PFG special meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All shares of PFG common stock represented at the PFG special
meeting, including shares that are represented but that vote to abstain, will be treated as present for purposes of determining
the presence or absence of a quorum.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="voterequiredforapproval"></A>Vote Required for Approval; Abstentions; Failure to Vote</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><I>The merger proposal</I>: Approval of the
merger proposal requires the affirmative vote of a majority of all the votes entitled to be cast by the holders of the outstanding
shares of PFG common stock. If you mark &ldquo;ABSTAIN&rdquo; on your proxy card, fail to submit a proxy card or vote in person
at the special meeting, or fail to instruct your bank, broker, or other nominee how to vote with respect to the merger proposal,
it will have the same effect as a vote &ldquo;AGAINST&rdquo; the proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"><I>The adjournment proposal</I>: Whether or
not a quorum is present, approval of the adjournment proposal requires that the votes cast in favor of the proposal exceed the
votes cast opposing the proposal at the special meeting. If you mark &ldquo;<B>ABSTAIN</B>&rdquo; on your proxy card, fail to submit
a proxy card or vote in person at the special meeting, or fail to instruct your bank, broker, or other nominee how to vote with
respect to the adjournment proposal it will have no effect on the proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><A NAME="votingbypfgdirectors"></A>Voting by PFG Directors and Executive
Officers</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">As of the record date, the 10% shareholder
(which have signed voting agreements - see below), directors, and executive officers of PFG and their affiliates collectively
beneficially owned and were entitled to vote 13,136 shares of PFG common stock, representing approximately 63.39% of the outstanding
shares of PFG common stock. In connection with the execution of the merger agreement, directors of PFG and certain family members
who collectively beneficially own and have the power to vote approximately 58.8% of PFG common stock have entered into agreements
with SMBK in which they have agreed, among other things, to vote their shares of PFG common stock for the approval of the merger
proposal. As of the record date, excluding shares held in fiduciary or agency capacity, SMBK and its subsidiaries did not own
any shares of PFG common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><A NAME="pfgcommonstocksubject"></A>PFG Common Stock Subject to Voting
Agreements</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">All directors of PFG who hold shares of
PFG common stock and Emily Phillips Rains, solely in their capacity as shareholders of PFG, have entered into voting agreements
with SMBK pursuant to which they have agreed to vote their shares of PFG common stock in favor of the approval of the merger proposal
and against the approval or adoption of any proposal made in opposition to the merger. As of the PFG record date, 12,177,161&nbsp;shares
of PFG common stock, or approximately 58.8% of the outstanding shares of PFG common stock entitled to vote at the PFG special
meeting, are bound by the voting agreements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="votingonproxiesbyholders"></A>Voting on Proxies by Holders of Record; Incomplete Proxies</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Each copy of this proxy statement/prospectus
mailed to PFG shareholders is accompanied by a proxy card with instructions for voting. If you hold stock in your name as a shareholder
of record, you should complete, sign, date, and return the proxy card accompanying this proxy statement/prospectus, regardless
of whether you plan to attend the special meeting. If you hold your stock in &ldquo;street name&rdquo; through a bank, broker,
or other nominee, you must direct your bank, broker, or nominee how to vote in accordance with the instructions you have received
from your bank, broker, or nominee.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">YOUR VOTE IS VERY IMPORTANT, REGARDLESS
OF THE NUMBER OF SHARES OF PFG COMMON STOCK YOU OWN. Accordingly, please sign, date, and return the enclosed proxy card whether
or not you plan to attend the special meeting in person.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">All shares represented by valid proxies
that PFG receives through this solicitation, and that are not revoked, will be voted in accordance with your instructions on the
proxy card. If you make no specification on your proxy card as to how you want your shares voted before signing and returning it,
your proxy will be voted &ldquo;<B>FOR</B>&rdquo; the merger proposal and &ldquo;<B>FOR</B>&rdquo; the adjournment proposal. No
matters other than the matters described in this proxy statement/prospectus are anticipated to be presented for action at the special
meeting or at any adjournment or postponement of the special meeting. However, if other business properly comes before the special
meeting, the proxy agents will, in their discretion, vote upon such matters in their best judgment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><A NAME="sharesheldinstreetname"></A>Shares Held in &ldquo;Street Name&rdquo;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Under stock exchange rules, banks, brokers,
and other nominees who hold shares of stock in &ldquo;street name&rdquo; for a beneficial owner of those shares typically have
the authority to vote in their discretion on &ldquo;routine&rdquo; proposals when they have not received instructions from beneficial
owners. However, banks, brokers, and other nominees are not allowed to exercise their voting discretion with respect to the approval
of matters determined to be &ldquo;non-routine,&rdquo; without specific instructions from the beneficial owner. Broker non-votes
are shares held by a bank, broker, or other nominee that are represented at the special meeting, but with respect to which the
bank, broker, or nominee is not instructed by the beneficial owner of such shares to vote on the particular proposal and the bank,
broker, or other nominee does not have discretionary voting power on such proposal. If your bank, broker, or other nominee holds
your shares of PFG common stock in &ldquo;street name,&rdquo; your bank, broker, or other nominee will vote your shares only if
you provide instructions on how to vote by filling out the voter instruction form sent to you by your bank, broker, or other nominee
with this proxy statement/prospectus. PFG believes that all of the proposals to be presented at the special meeting are &ldquo;non-routine&rdquo;
proposals, and your bank, broker, or other nominee may not vote your shares without your specific voting instructions. Therefore,
if you are a PFG shareholder and you fail to direct your bank, broker, or other nominee to vote your shares, it could have the
same effect as voting against the merger proposal and no effect on the adjournment proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="revocabilityproxiesandchanges"></A>Revocability of Proxies and Changes to an PFG Shareholder&rsquo;s
Vote</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">If you hold your shares of PFG common stock
in your name as a shareholder of record, you may revoke any proxy at any time before it is voted by (1) signing and returning a
proxy card with a later date, (2) delivering a written revocation letter to PFG&rsquo;s President, or (3) attending the special
meeting in person, notifying the President, and voting by ballot at the special meeting. Any shareholder entitled to vote in person
at the special meeting may vote in person regardless of whether a proxy has been previously given, but the mere presence (without
notifying PFG&rsquo;s President) of a shareholder at the special meeting will not constitute revocation of a previously given proxy.
Written notices of revocation and other communications about revoking your proxy card should be addressed to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Progressive Financial Group Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Attention: Ottis H. Phillips, President and
CEO</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">500 N. Main Street</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Jamestown, TN 38556</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">If your shares of PFG common stock are
held in &ldquo;street name&rdquo; by a bank, broker, or other nominee, you should follow the instructions of your bank, broker,
or nominee regarding the revocation of proxies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><A NAME="solicitationofproxies"></A>Solicitation of Proxies</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><FONT STYLE="font-weight: normal">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">PFG, on behalf of PFG&rsquo;s board of directors,
is soliciting your proxy in connection with the merger. PFG will pay all of the costs of soliciting proxies in connection with
the special meeting. In addition to solicitation of proxies by mail, PFG will request that banks, brokers, nominees and other record
holders send proxies and proxy material to the beneficial owners of PFG common stock and secure their voting instructions. However,
PFG&rsquo;s directors, officers and employees will not be paid any special or extra compensation for soliciting such proxies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">No person is authorized to give any information
or to make any representation not contained in this proxy statement/prospectus and, if given or made, such information or representation
should not be relied upon as having been authorized by SMBK, SmartBank, PFG, Progressive Savings Bank or any other person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><A NAME="attendingthepfgspeciameering"></A>Attending the PFG Special Meeting;
Voting in Person</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">All holders of PFG common stock, including
holders of record and shareholders who hold their shares through banks, brokers, nominees, or any other shareholder of record,
are invited to attend the special meeting. Shareholders of record of PFG common stock can vote in person at the special meeting.
If you are not a shareholder of record, you must obtain a legal proxy executed in your favor from the record holder of your shares,
such as a bank, broker, or other nominee, to be able to vote in person at the special meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left"><A NAME="assistance"></A>Assistance</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in 0pt 0; text-align: left">If you have any questions concerning
the merger or this proxy statement/prospectus, would like additional copies of this proxy statement/prospectus, or need help voting
your shares of PFG common stock, please contact Ottis H. Phillips, at (931) 752-2178.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0.5in 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="thermerger31"></A>THE MERGER</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The following discussion contains certain information about
the merger. The discussion is subject, and qualified in its entirety by reference, to the merger agreement attached as <U>Annex
A</U> to this proxy statement/prospectus. We urge you to read carefully this entire proxy statement/prospectus, including the merger
agreement attached as <U>Annex A</U>, for a more complete understanding of the merger.</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="general31"></A>General</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each of SmartFinancial&rsquo;s and PFG&rsquo;s respective boards
of directors has unanimously approved the merger agreement and the transactions contemplated by the merger agreement. The merger
agreement provides for the acquisition of PFG by SmartFinancial pursuant to the merger of PFG with and into SmartFinancial, with
SmartFinancial as the surviving company, which we refer to as the merger. Immediately after the merger, Progressive Bank, a wholly
owned bank subsidiary of PFG, will be merged with and into SmartBank, a wholly owned bank subsidiary of SmartFinancial,
with SmartBank as the surviving bank, which we refer to as the bank merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="purchasepriceandpurchase"></A>Purchase Price and Purchase Price Adjustments</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At the effective time of the merger, each share of PFG common
stock issued and outstanding immediately prior to the effective time of the merger will be converted into the right to receive
&nbsp;a pro&nbsp;rata portion (which is a ratio equal to one divided by the number of shares of PFG common stock issued and outstanding
as of the closing)&nbsp;of (1) an aggregate amount of cash equal to $14,595,354.37 minus the amount of any pre-closing dividend
paid by PFG and any loss in excess of $250,000 realized by PFG or its applicable subsidiary on sales of certain assets prior to
closing, and (2) 1,292,592.556 shares of SmartFinancial common stock. Assuming that PFG does not pay any dividends from its accumulated
adjustment account prior to the merger, the holders of PFG common stock would receive approximately $704.375 and 62.3808 shares
of SmartFinancial common stock (plus cash in lieu of fractional shares) for each share of PFG common stock they own, which, based
on the closing sale price of SmartFinancial common stock on December 18, 2019 of $23.32 per share, represents approximately $2,159.10
in total merger consideration per share of PFG common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG will be required to sell its holdings of Upper Cumberland
Bancshares, Inc. prior to the closing, and will also be required to dissolve four wholly-owned subsidiaries -- The Cove at Little
Island, LLC, Horse Creek Holdings LLC, Progressive Funding, Inc., and Cumberland Mountain Preserve/East First Street, LLC &ndash;
and transfer any assets held by those subsidiaries to Progressive Savings Bank. Additionally, PFG is required to coordinate with
SmartFinancial regarding the potential sale of Progressive Accounting and Tax LLC and Cravens &amp; Company Advisors, LLC. If the
transactions described in this paragraph result in losses to PFG or its applicable subsidiaries in excess of $250,000, then the
aggregate cash portion of the merger consideration will be reduced by the amount of such excess on a dollar-for-dollar basis. On
November 19, 2019, PFG completed the sale of its holdings in Upper Cumberland Bancshares, Inc. common stock, resulting in an aggregate
loss of $27,160.00.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial will not issue any fractional shares of SmartFinancial
common stock in the merger. PFG shareholders who would otherwise be entitled to a fractional share of SmartFinancial common stock
upon the completion of the merger will instead receive an amount in cash (without interest and rounded to the nearest whole cent)
determined by multiplying the fractional share interest in SmartFinancial common stock (rounded to the nearest one hundredth of
a share) by the average closing price of SmartFinancial&rsquo;s common stock on the NASDAQ Capital Market over the ten (10) trading
days ending on the business days immediately prior to the closing date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG shareholders are being asked to approve the merger agreement.
See &ldquo;The Merger Agreement&rdquo; for additional and more detailed information regarding the legal documents that govern the
merger, including information about the conditions to the completion of the merger and the provisions for terminating or amending
the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="backgroundofthemerger"></A>Background of the Merger</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">Progressive Bank opened for business in
1980, as a state-chartered savings and loan institution serving Jamestown, Tennessee, and surrounding communities. Through the
following years, Progressive Bank experienced good growth and financial performance as it grew to six offices in Cumberland, Fentress,
Morgan, and Putnam Counties and over $296 million in total assets. In 2010, the charter was converted to a commercial bank, and
in 2016, PFG was formed to be the bank holding company for Progressive Savings Bank. Since its founding, the board of directors
of Progressive Bank, and later PFG, has considered various strategic alternatives to enhance and maximize shareholder value. These
strategic alternatives have included continuing as an independent institution; acquiring other banks, bank branches, or other financial
services related businesses; or a sale or merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">In late 2017 and early 2018, family members
of the Rains and Phillips families, who owned approximately 45% of the outstanding shares of PFG, were approached by at least two
other banking organizations to discuss whether PFG might have an interest in selling PFG. One additional financial institution
reached out in the summer of 2018, so that Ottis H. Phillips, President, and CEO of PFG and Progressive Savings Bank, as well as
being the representative of the Rains and Phillips families decided to hold meetings with some of the interested parties who had
expressed an interest in a merger. By August 2018, these discussions were narrowed down to one potential acquirer, and a Nondisclosure
Agreement was executed with that acquirer so that it could proceed with a due diligence review of the books and records of PFG
and its subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">After discussions with legal counsel about
valuation metrics in late August, Mr. Phillips presented the possibility of a merger to the board of directors of PFG in September
2018. He indicated that various parties had expressed an interest, and he was authorized by the board to proceed with further discussions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">In October 2018, after further discussions
with legal counsel about the merger process and conversations with the potential acquirer identified by Mr. Phillips in August,
the potential acquirer presented a letter of interest to acquire PFG. By November 2018, a separate party approached Mr. Phillips
about making a capital contribution into PFG and becoming significant shareholders. As a result, Mr. Phillips presented the Board
with information about the letter of interest and other discussions, and also asked legal counsel to present to the board the legal
process for addressing merger proposals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">In December 2018, further discussions were
held between the potential acquiror that had presented the letter of interest, and a counter proposal was presented by Mr. Phillips.
In the meantime, in January 2019, Christopher Olsen of Olsen Palmer LLC met with Mr. Phillips in Cookeville and agreed to provide
him some valuation information to consider in making a decision whether to sell PFG. After additional discussions and counter offers
exchanged, in February 2019, the potential acquirer presented a revised letter of interest. Mr. Phillips decided that the terms
included in the revised letter of interest would not be acceptable to the board or the majority shareholders of PFG, and this letter
of interest was rejected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">Over the next few months, Mr. Olsen discussed
various alternatives with Mr. Phillips as well as a number of potential acquirors they might want to contact. In May 2019, Mr.
Olsen met with the Billy Carroll, CEO of SmartFinancial, at a conference during which Mr. Olsen and Mr. Carroll discussed SmartFinancial&rsquo;s
strategic priorities and interest in acquisitions. Mr. Carroll provided an update on SmartFinancial&rsquo;s bank acquisition strategies
including markets that may be of interest as well as sizes and types of banking institutions that would meet SmartFinancial&rsquo;s
acquisition criteria. Based on that meeting, Mr. Olsen suggested to Mr. Phillips that a meeting be held with the management of
SmartFinancial in order to discuss a potential combination. Such a meeting was held in Knoxville in June 2019, which was attended
by various parties from both PFG and SmartFinancial as well as Mr. Olsen. A confidentiality agreement was subsequently executed
by SmartFinancial on June 14, 2019, so each party could share further information. From June to August 2019, Mr. Olsen and Mr.
Phillips continued to discuss strategic alternatives and other potential acquirors to contact, and on August 3, 2019, PFG engaged
Olsen Palmer. In August 2019, further meetings also were held between PFG and SmartFinancial representatives, and on August 20,
2019, SmartFinancial submitted a written presentation to Mr. Phillips and Mr. Olsen describing potential terms of a merger transaction
as well as how the cultures of the organizations would combine including an offer valuing PFG at between $40 - $41 million with
shareholders of PFG receiving 30% in cash and 70% in SmartFinancial common stock. After discussions with legal counsel and with
Olsen Palmer, Mr. Phillips instructed Mr. Olsen to ask SmartFinancial to revise the terms of the proposed offer including increasing
the purchase price and increasing the percentage of cash consideration, and to make such an offer on a more formal offer basis
in the form of a nonbinding indication of interest. SmartFinancial submitted such an indication on August 29, 2019, the terms of
which included SmartFinancial valuing PFG at between $41.4-42.0 million, based on SmartFinancial&rsquo;s stock price at the time,
with shareholders of PFG receiving 35% of the consideration in cash and 65% in SmartFinancial common stock pursuant to a fixed
exchange ratio.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">On September 10, 2019, Mr. Phillips formally
accepted SmartFinancial's nonbinding indication of interest, subject to satisfactory completion of the due diligence of both PFG
and SmartFinancial, negotiation of a merger agreement, and an exclusivity period of 60 days, among other conditions. Olsen set
up an electronic data room so the parties could more easily exchange more detailed information. After submission and review from
the document exchange, a draft merger agreement was presented by the attorneys for SmartFinancial to the attorneys for PFG on October
11, 2019. The specific pricing terms were added to the draft on October 18, 2019, reflecting SmartFinancial&rsquo;s submission
of a further-revised indication of interest which was submitted on the same date, which included the current consideration described
in this proxy statement/prospectus. On October 21, 2019, PFG representatives, including representatives from Olsen Palmer and PFG's
legal counsel met with management of SmartFinancial in Knoxville to interview SmartFinancial's management about the future of SmartFinancial
and ask questions derived from PFG's due diligence review. Also, additional terms of the merger agreement were negotiated and decided
in order to proceed with the execution of the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">On October 22, 2019, PFG's board met to discuss
the details of the proposed merger of PFG with SmartFinancial. Mr. Olsen and PFG's legal counsel presented valuation and legal
information and analysis to the Board, which authorized Mr. Phillips to continue negotiating a final merger agreement to bring
back to the board for final review. Over the following week, final negotiations and exchanges of revised drafts of the merger agreement
and related documents took place.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">On October&nbsp;25, 2019, SmartFinancial&rsquo;s
board of directors met at its regularly scheduled meeting to review and discuss the proposed merger and the merger agreement. At
this meeting, SmartFinancial&rsquo;s board of directors received presentations from its legal counsel, Alston &amp; Bird LLP and
its financial advisor, Keefe, Bruyette &amp; Woods. Following this discussion, SmartFinancial&rsquo;s board of directors unanimously
voted to approve the merger agreement and the other transactions contemplated by the merger agreement, including the merger, and
authorized SmartFinancial&rsquo;s executives to execute the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">On October 29, 2019, PFG's and Progressive
Savings Bank's boards of directors at a jointly held specially called meeting, which was attended by Mr. Olsen of Olsen Palmer
and representatives of Baker Donelson, reviewed the proposed merger agreement and related documents; discussed its legal obligations
and fiduciary obligations as directors in considering the proposed merger agreement with Baker Donelson; and received Olsen Palmer&rsquo;s
summary analyses and opinion that the merger consideration to be received by the shareholders of PFG was fair, from a financial
point of view, which was subsequently confirmed in writing (the full text of which is attached to this joint proxy statement/prospectus
as <U>Annex B</U>). Based upon this review and discussion of the legal terms of the merger agreement, the analyses and opinion
of Olsen Palmer, and other relevant factors, including consideration of the factors described under &ldquo;The Merger &mdash; PFG&rsquo;s
Reasons for the Merger,&rdquo; the PFG board voted unanimously to approve the merger with SmartFinancial and to approve the merger
agreement and Progressive Bank board approved a merger agreement to be merged with SmartBank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">On October 29, 2019, the merger agreement
and related documents were executed and delivered by the parties. On the evening of October 29, 2019, SmartFinancial and PFG jointly
issued a press release announcing the signing of the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="smartfinancialreasonsforthemerger"></A>SmartFinancial&rsquo;s Reasons for the Merger</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In reaching its decision to approve and adopt the merger agreement,
the merger and the other transactions contemplated by the merger agreement, including the issuance of SmartFinancial common stock
as the merger consideration, the SmartFinancial board of directors considered a number of factors, including the following material
factors:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>each of SmartFinancial&rsquo;s and PFG&rsquo;s business, operations, financial condition, asset quality, earnings and prospects;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the strategic fit of the businesses of the two companies, including their complementary markets, business lines and loan and
deposit profiles;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the opportunity to strategically expand in complementary Tennessee markets;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the anticipated pro forma impact of the transaction on the combined company, including the expected impact on financial metrics
including earnings and tangible book value and regulatory capital levels, as well as the potential efficiencies of scale resulting
from the increased size of SmartFinancial following the merger;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>its understanding of the current and prospective environment in which SmartFinancial and PFG operate, including national, state
and local economic conditions, the competitive environment for financial institutions generally, and the likely effect of these
factors on SmartFinancial both with and without the proposed transaction;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>its review and discussions with SmartFinancial&rsquo;s management concerning the due diligence investigation of PFG, including
its review of PFG&rsquo;s financial condition, results of operation, asset quality, market areas, growth potential (projected potential
accretion to earnings per share and the projected payback period of the estimated decrease in tangible book value) and quality
of senior management;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the perceived compatibility of the corporate cultures of the two companies, which management believes should facilitate integration
and implementation of the transaction;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the structure of the transaction as a combination in which the combined company would operate under the SmartFinancial brand
and SmartFinancial&rsquo;s board of directors and management would have substantial participation in the combined company;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the regulatory and other approvals required in connection with the merger and the expectation that such regulatory approvals
will be received in a timely manner and without the imposition of unacceptable conditions; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the financial and other terms of the merger agreement, including the merger consideration, expected tax treatment, the deal
protection and termination fee provisions, and restrictions on the conduct of PFG&rsquo;s business between the date of the merger
agreement and the date of completion of the merger.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s board of directors also considered potential
risks relating to the merger including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>SmartFinancial management&rsquo;s attention and SmartFinancial resources may be diverted from the operation of SmartFinancial&rsquo;s
business and towards the completion of the merger;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>SmartFinancial may not realize all of the anticipated benefits of the merger, including cost savings, maintenance of existing
customer and employee relationships, and minimal disruption in the integration of PFG&rsquo;s operations with SmartFinancial;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the nature and amount of payments and other benefits to be received by PFG management in connection with the merger pursuant
to existing PFG plans and compensation arrangements and the merger agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the substantial costs that SmartFinancial will incur in connection with the merger even if it is not consummated;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>approvals from regulatory authorities could impose conditions that could have the effect of delaying completion of the merger
or imposing additional costs; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>the possibility of litigation in connection with the merger.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The foregoing discussion of the factors considered by the SmartFinancial
board of directors is not intended to be exhaustive, but, rather, includes the material factors considered by the SmartFinancial
board of directors. In reaching its decision to approve and adopt the merger agreement, the merger and the other transactions contemplated
by the merger agreement, including the issuance of SmartFinancial common stock as the merger consideration, the SmartFinancial
board of directors did not quantify or assign any relative weights to the factors considered, and individual directors may have
given different weights to different factors. The SmartFinancial board of directors considered all these factors as a whole and
overall considered the factors to be favorable to, and to support, its determination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="pfgsreasonsforthmerger"></A>PFG&rsquo;s Reasons for the Merger</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>After careful consideration, PFG&rsquo;s board of directors
determined that it was advisable and in the best interests of PFG and its shareholders for PFG to enter into the merger agreement
with SmartFinancial. Accordingly, PFG&rsquo;s board unanimously recommends that PFG&rsquo;s shareholders vote &ldquo;FOR&rdquo;
the approval of the merger agreement.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG's board of directors reviewed and discussed the proposed
merger with management and its financial and legal advisors in determining that the proposed merger is in the best interest of
PFG and its shareholders. In reaching its conclusion to approve the merger agreement and the other transactions contemplated by
the merger agreement and to recommend to its shareholder to approve the merger proposal, the PFG board of directors considered
a number of factors, including the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the Board&rsquo;s familiarity with PFG&rsquo;s consolidated business,
operations, earnings, and financial conditions;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the Board&rsquo;s review, based in part by the presentation by management
and PFG's legal and financial advisors, of the proposal, including a review of the business, operations, earnings, financial conditions,
and community service and involvement of SmartFinancial, as well as the potential results from a sale to SmartFinancial;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the Board&rsquo;s review of possible affiliation partners other than
SmartFinancial, the prospects of such other possible affiliation partners, and the likelihood of any such affiliation;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the Board&rsquo;s review of alternatives to such a transaction (including
the alternatives of remaining independent and growing internally, remaining independent for a period of time and then selling,
and remaining independent and growing through future acquisitions);</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the recent business combinations involving financial institutions
either announced or completed during the past few years in the State of Tennessee and the southeastern United States, and the effect
of such combinations on competitive conditions in the PFG&rsquo;s market area;</FONT></TD></TR></TABLE>

<P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">a comparison of the proposal from SmartFinancial to such recent business
combinations involving financial institutions;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left"><FONT STYLE="font-family: Times New Roman, Times, Serif">increasing
                                         regulatory and statutory burdens (including costs, time commitments, and difficulty executing
                                         earnings opportunities) on PFG and its subsidiaries as a community banking organization
                                         in general and as a result of the particular status of PFG;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">management succession alternatives for PFG;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the opportunity for PFG shareholders to exchange their shares of PFG
partially for shares of SmartFinancial resulting in the ownership of a publicly traded stock and the liquidity provided;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the increasing information technology costs and requirements for PFG
as well as the costs and risks of cybersecurity;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">enhancing the ability of a merged organization to provide PFG' customers
with additional resources and the best banking options available;</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">the limited opportunities for PFG to continue to grow organically
long term in consideration of capital, regulatory, competitive, and other factors; and</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><FONT STYLE="font-family: Times New Roman, Times, Serif">a fairness opinion presented by Olsen Palmer.</FONT></TD></TR></TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The discussion of the information and factors considered by
the PFG board of directors is not exhaustive but includes material factors considered and discussed by the PFG board of directors.
In view of the wide variety of factors considered and discussed by the PFG board of directors in connection with its evaluation
of the merger and the complexity of these matters, the board of directors did not consider it practical to, nor did it attempt
to, quantify, rank or otherwise assign relative weights to the specific factors that it considered in reaching its decision. The
PFG&rsquo;s board of directors evaluated the factors described above, including asking questions of management and its legal and
financial advisors, and reached consensus that the merger was in the best interests of PFG and its shareholders. In considering
the factors described above, individual members of the PFG&rsquo;s board of directors may have assigned different weights to different
factors. The PFG board of directors considered these factors as a whole, and overall considered them to be favorable to, and to
support its determination. It should be noted that this explanation of the reasoning of PFG&rsquo;s board of directors and other
information presented in this section are forward-looking in nature and, therefore, should be read in light of the factors discussed
under &ldquo;<I>Cautionary Statement Regarding Forward-Looking Statements</I>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For the reasons set forth above, the PFG&rsquo;s board of directors
determined that the merger, the merger agreement, and the transactions contemplated thereby are advisable and in the best interests
of PFG and its shareholders. Accordingly, the board of directors unanimously approved the merger agreement and the transactions
contemplated thereby and unanimously recommends that the PFG shareholders vote &ldquo;FOR&rdquo; the PFG merger proposal and &ldquo;FOR&rdquo;
the PFG adjournment proposal, if necessary or appropriate to solicit additional proxies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>THE PFG BOARD OF DIRECTORS UNANIMOUSLY RECOMMENDS THAT YOU
VOTE &ldquo;FOR&rdquo; APPROVAL OF THE MERGER AGREEMENT.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="openionofpfgsfinanicaladvisor"></A>Opinion of PFG&rsquo;s Financial Advisor</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">PFG retained Olsen Palmer to render financial
advisory and investment banking services and to act as the exclusive financial advisor to PFG in connection with a potential strategic
combination. Olsen Palmer is an investment banking firm specializing in community bank mergers and acquisitions. PFG selected Olsen
Palmer as its financial advisors on the basis of its experience and expertise in representing community banks in similar transactions
and its familiarity with PFG and the Tennessee banking market. Olsen Palmer, as part of its investment banking services, is regularly
engaged in the valuation of financial institutions and their securities in connection with mergers and acquisitions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: normal 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">In its capacity as financial advisor,
Olsen Palmer provided a fairness opinion to the board of directors of PFG in connection with the merger. At the meeting of the
PFG board on October 29, 2019, Olsen Palmer provided an oral opinion to the PFG board (which was subsequently confirmed in writing
by delivery of Olsen Palmer&rsquo;s written opinion dated October 29, 2019) that, based upon and subject to the various factors,
assumptions and limitations set forth in such opinion, Olsen Palmer representatives&rsquo; experience as investment bankers, Olsen
Palmer&rsquo;s work as described in such opinion and other factors Olsen Palmer deemed relevant, as of such date, the merger consideration
to be received by PFG shareholders in the proposed merger with SmartFinancial was fair, from a financial point of view, to PFG
shareholders. The Olsen Palmer written opinion, dated October 29, 2019, is sometimes referred to as the &ldquo;Olsen Palmer opinion.&rdquo;
The full text of the Olsen Palmer opinion, which sets forth, among other things, the assumptions made, procedures followed, matters
considered and limitations on the review undertaken by Olsen Palmer in rendering its opinion, is attached to this proxy statement/prospectus
as Annex B. The summary of the Olsen Palmer opinion set forth herein is qualified in its entirety by reference to the full text
of the opinion. PFG shareholders should read the full text of the opinion carefully and in its entirety.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">The Olsen Palmer opinion is addressed to the
PFG board, is directed only to the fairness, from a financial point of view, of the merger consideration to be received by PFG
shareholders in the merger with SmartFinancial, and does not constitute a recommendation to any shareholder as to how such shareholder
should vote or act on any matters relating to the merger. Olsen Palmer expressed no opinion as to the fairness of the merger consideration
to the creditors or other constituencies of PFG. Olsen Palmer&rsquo;s opinion is directed only to the fairness, from a financial
point of view, of the merger consideration to the shareholders of PFG and does not address the underlying business decision of
PFG to engage in the merger or the relative merits of the merger as compared to any other alternative business strategies that
might exist for PFG. Olsen Palmer did not express any opinion as to the fairness of the amount or nature of the compensation to
be received in the merger by any officer, director, or employee, or class of such persons, relative to the compensation to be received
in the merger by any other shareholder. Olsen Palmer&rsquo;s opinion should not be construed as creating any fiduciary duty on
the part of Olsen Palmer to any party or person. Olsen Palmer&rsquo;s opinion was not reviewed or issued by a fairness opinion
committee. Olsen Palmer has not been requested to opine as to, and Olsen Palmer&rsquo;s opinion does not express an opinion as
to or otherwise address, among other things: (i) the fairness of any portion or aspect of the merger to any one class or group
of PFG or any other party&rsquo;s security holders or other constituents vis-&agrave;-vis any other class or group of PFG&rsquo;s
or such other party&rsquo;s security holders or other constituents (including, without limitation, the allocation of any consideration
amongst or within such classes or groups of security holders or other constituents), or (ii) the fairness, financial or otherwise,
of the amount, nature or any other aspect of any compensation to or consideration payable to or received by any officers, directors
or employees of any party to the merger, any class of such persons or any other party, relative to the merger consideration or
otherwise. Olsen Palmer expressed no opinion as to the actual value of SmartFinancial common stock when issued in the merger or
the prices at which PFG common stock or SmartFinancial common stock will trade following announcement of the merger or at any future
time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">In performing its review, and for purposes
of rendering its opinion, Olsen Palmer relied upon the accuracy and completeness of all of the financial and other information
that was available to it from public sources, that was provided to Olsen Palmer by PFG and SmartFinancial or their representatives
or that was otherwise reviewed by Olsen Palmer and has assumed, without independent verification, such accuracy and completeness
of all such information. Olsen Palmer further relied on the assurances of the management of PFG and SmartFinancial that they are
not aware of any facts or circumstances that would make any of such information inaccurate or misleading. Olsen Palmer has not
been asked to and has not undertaken an independent verification of any of such information and does not assume any responsibility
or liability for the accuracy or completeness thereof. With PFG&rsquo;s consent, Olsen Palmer relied upon the advice PFG has received
from its legal, accounting and tax advisors as to all legal, accounting and tax matters relating to the merger that is contemplated
by the merger agreement and Olsen Palmer assumed that all such advice is correct. In connection with its Opinion, Olsen Palmer
made such reviews, analyses and inquiries as it deemed necessary and appropriate under the circumstances. Among other things, Olsen
Palmer reviewed:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>a draft version dated October 25, 2019 of the Agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>certain financial statements and other historical financial information of PFG and SmartFinancial that Olsen Palmer deemed
relevant;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>publicly available median analyst earnings estimates for SmartFinancial for the years ending December 31, 2019, December 31,
2020 and December 31, 2021;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>internal financial projections for PFG for the year ending December 31, 2019 and estimated long-term annual earnings and balance
sheet growth rates for the years ending December 31, 2020, December 31, 2021, December 31, 2022, December 31, 2023, December 31,
2024, and December 31, 2025 as provided by PFG;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>a comparison of certain financial information for PFG with similar institutions for which publicly available information is
available;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>the financial terms of certain recent business combinations in the commercial banking industry, to the extent publicly available;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>an estimated range of the intrinsic value of PFG based on assumptions relating to transaction expenses, purchase accounting
adjustments, cost savings, and future profitability;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>the current and historical reported prices and trading activity of SmartFinancial Common Stock;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>the proforma financial impact of the Merger on SmartFinancial based on certain assumptions relating to purchase accounting
adjustments, cost savings, transaction expenses and the anticipated regulatory impact of the Merger on SBMK;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>the current market environment generally and the banking industry in particular; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>such other information, financial studies, analyses and investigations and financial, economic and market criteria as Olsen
Palmer considered relevant.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Olsen Palmer also discussed with certain members of senior management
of PFG and its representatives the business, financial condition, results of operations and prospects of PFG. Olsen Palmer held
similar discussions with certain members of senior management of SmartFinancial regarding the business, financial condition, results
of operations, and prospects of SmartFinancial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Olsen Palmer&rsquo;s opinion is necessarily based on financial,
economic, market and other conditions as in effect on, and the information made available to it as of October 29, 2019. Events
occurring after October 29, 2019 could materially affect Olsen Palmer&rsquo;s opinion. Olsen Palmer has not undertaken to update,
revise, reaffirm or withdraw its opinion or otherwise comment upon events occurring after October 29, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Several analytical methodologies have been employed and no one
method of analysis should be regarded as critical to the overall conclusion reached by Olsen Palmer. Each analytical technique
has inherent strengths and weaknesses, and the nature of the available information may further affect the value of particular techniques.
The overall conclusions Olsen Palmer reached are based on all the analysis and factors presented, taken as a whole, and also on
application of Olsen Palmer&rsquo;s own experience and judgment. Such conclusions may involve significant elements of subjective
judgment and qualitative analysis. Olsen Palmer therefore gives no opinion as to the value or merit standing alone of any one or
more parts of the analyses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following summarizes the material financial analyses that
were considered by Olsen Palmer in rendering its opinion. The summary below is not a complete description of the analyses underlying
Olsen Palmer&rsquo;s opinion or the presentation made by Olsen Palmer to PFG&rsquo;s board of directors, but is a summary of all
material analyses performed and presented by Olsen Palmer. No company or transaction used in the analyses described below is identical
or directly comparable PFG, SmartFinancial, or the contemplated merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Summary of Financial Terms of Merger Agreement</I></B>.
The financial terms of the merger agreement provide that PFG shareholders shall be entitled to receive in exchange for all shares
of PFG common stock, $14,595,354.37 aggregate cash consideration, without interest, and 1,292,592.556 shares of SmartFinancial&rsquo;s
common stock. Based on 20,721 common shares of PFG outstanding as of October 29, 2019 and SmartFinancial&rsquo;s closing price
on October 28, 2019 of $20.72, the implied deal value per share equaled $1,996.91 and the aggregate transaction value approximated
$41.4 million. Olsen Palmer calculated that the aggregate transaction value of $41.4 million represented:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>125 percent of PFG&rsquo;s June 30, 2019 tangible book value;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>18.0 times PFG&rsquo;s June 30, 2019 last twelve months earnings;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>13.7 percent of PFG&rsquo;s June 30, 2019 total assets; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>3.4 percent premium to PFG&rsquo;s June 30, 2019 core deposits.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG&rsquo;s last twelve months earnings adjusted at an assumed
21% tax rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>SmartFinancial Selected Companies Analysis. </I></B>As
part of its analysis, Olsen Palmer reviewed publicly available information to compare selected financial and market trading information
for SmartFinancial and a group of 8 financial institutions which (i) were banks with common stock listed on the NASDAQ or NYSE;
(ii) were headquartered in the United States; (iii) had total assets as of September 30, 2019 between $2.0 billion and $3.0 billion;
(iv) had return on average assets over the twelve months ended September 30, 2019 between 0.50% and 1.50%; and (v) nonperforming
assets as a percentage of total assets as of September 30, 2019 of less than 0.75%. These 8 financial institutions were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="width: 32%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">CapStar Financial Holdings, Inc.</FONT></TD>
    <TD STYLE="width: 8%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Peoples Financial Services Corp.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">MutualFirst Financial, Inc.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Sierra Bancorp</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Old Second Bancorp, Inc.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Southern First Bancshares, Inc.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Orrstown Financial Services, Inc.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">West Bancorporation, Inc.</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Olsen Palmer noted the following selected financial measures,
in each case as of and for the relevant period ended September 30, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt; text-align: center; white-space: nowrap">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid; text-align: center; white-space: nowrap"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>Total Assets</B>&nbsp;</P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>($billions)</B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; text-align: center; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; text-align: center; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: center; white-space: nowrap">Last Twelve<BR>
Months Return on<BR>
Average Assets</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; text-align: center; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; text-align: center; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; border-bottom: Black 1pt solid; text-align: center; white-space: nowrap">Nonperforming<BR>
Assets to Total Assets</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; text-align: center; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; font-size: 10pt">Low</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">2.0</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">0.65</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">0.02</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">High</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2.6</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1.47</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.69</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Median</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2.3</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1.20</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.45</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Mean</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2.3</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1.14</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.43</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">SmartFinancial</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">2.4</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1.15</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.20</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Olsen Palmer analyzed various financial multiples for each company
as calculated by S&amp;P Global Market Intelligence, based on trading prices as of October 28, 2019 and financial metrics for the
relevant period ended September 30, 2019, including trading price per share to last twelve months&rsquo; earnings per share, trading
price per share to tangible common equity per share, and trading price per share to total assets. Olsen Palmer reviewed the mean,
median, high, low, 25<SUP>th</SUP> percentile, and 75<SUP>th</SUP> percentile values for each metric of the selected companies.
The results of the selected companies analysis are summarized below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center; white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap; border-bottom: Black 1pt solid">Price to Last Twelve<BR>
Months Earnings<BR>
per Share</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap; border-bottom: Black 1pt solid">Price to Tangible<BR>
Common Equity per<BR>
Share</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap; border-bottom: Black 1pt solid">Price to Total<BR>
Assets</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; white-space: nowrap; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; font-size: 10pt">Low</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">9.8</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">x</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">126</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">10.7</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">High</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">19.5</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">189</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">15.9</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Median</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">13.1</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">152</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">14.8</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Mean</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">13.7</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">151</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">14.3</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">25<SUP>th</SUP> Percentile</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12.1</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">141</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">13.7</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">75<SUP>th</SUP> Percentile</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">14.3</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">156</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">15.4</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">SmartFinancial</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11.0</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">127</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12.1</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Selected Companies Analysis</I></B><I>.</I> Olsen Palmer
analyzed the relative valuation multiples as calculated by S&amp;P Global Market Intelligence of 8 publicly-traded banks (including
banks traded over-the-counter) which (i) were headquartered in the U.S.; (ii) had total assets as of June 30, 2019 between $150
million and $500 million; (iii) had a return on average assets over the twelve months ended June 30, 2019 between 0.50% to 1.25%;
and (iv) nonperforming assets as a percentage of total assets as of June 30, 219 between 1.50% and 3.00%. These 8 financial institutions
were as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="width: 100%; font: 10pt Times New Roman, Times, Serif; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 10%; padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="width: 32%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Citizens Financial Corp.</FONT></TD>
    <TD STYLE="width: 8%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD STYLE="width: 50%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Home Federal Bancorp, Inc. of Louisiana</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Community Investors Bancorp, Inc.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Jefferson Security Bank</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">First Ottawa Bancshares, Inc.</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Oxford Bank Corporation</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD>&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="padding-left: 0.25in"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Harford Bank</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&bull;</FONT></TD>
    <TD><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Peoples Bancorp, Inc.</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Olsen Palmer noted the following selected financial measures,
in each case as of and for the relevant period ended June 30, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.75in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>Total Assets </B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>($millions)</B></P></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Twelve Months<BR>
Return on Average<BR>
Assets</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Nonperforming<BR>
Assets to Total<BR>
Assets</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 46%; font-size: 10pt">Low</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">169</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">0.65</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 15%; font-size: 10pt; text-align: right">1.52</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">High</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">461</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1.19</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2.18</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Median</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">341</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.93</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1.77</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Mean</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">332</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.94</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1.78</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">PFG (1)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">301</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.77</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2.29</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(1) PFG&rsquo;s twelve months return on average assets adjusted
at an assumed 21.0% tax rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Olsen Palmer analyzed various financial multiples for each company
as calculated by S&amp;P Global Market Intelligence, based on trading prices as of October 28, 2019 and financial metrics for the
relevant period ended June 30, 2019, including trading price per share to last twelve months&rsquo; earnings per share, trading
price per share to tangible common equity per share, trading price per share to total assets, and the core deposit premium implied
by the market capitalization. Olsen Palmer reviewed the mean, median, high, low, 25th percentile, and 75th percentile values for
each metric of the selected companies. The results of the selected companies analysis are summarized below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Price to Last<BR> Twelve Months<BR> Earnings per<BR> Share</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Price to Tangible<BR> Common Equity<BR> per Share</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Price to Total<BR> Assets</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Core Deposit<BR> Premium Implied<BR> by Market<BR> Capitalization</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; font-size: 10pt">Low</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">8.9</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">x</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">94.4</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">7.9</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">-1.8</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">High</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">14.4</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">121.2</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">13.8</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2.0</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Median</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11.6</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">104.7</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10.2</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.4</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Mean</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11.7</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">105.2</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10.3</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.2</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">25<SUP>th</SUP> Percentile</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10.9</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">98.4</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">9.0</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">-0.4</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">75<SUP>th</SUP> Percentile</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12.9</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">108.7</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10.7</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.9</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Selected Transactions Analysis</I></B><I>. </I>Olsen
Palmer analyzed publicly available information relating to 8 acquisitions of banks that satisfied the following selected search
criteria: transactions which (i) were announced between January 1, 2015 and October 28, 2019; (ii) where targets were headquartered
in the Southeast U.S. (Southeast is defined as the following states: AL, AR, FL, GA, MS, NC, SC, TN, VA, and WV); (iii) where
targets had total assets between $175 million and $500 million; (iv) where targets had a return on average assets over the twelve
months prior to the transaction announcement between 0.5% and 1.5%; (v) where targets had nonperforming assets as a percentage
of total assets between 1.75% and 3.25%; and (vi) where targets had tangible common equity as a percentage of tangible assets
between 9.0% and 12.5%. The selected transactions consisted of the following (buyer / seller):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>BancorpSouth Bank/Merchants Trust, Inc.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>Premier Financial Bancorp, Inc./First Bank of Charleston, Inc.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>Bay Banks of Virginia, Inc./Virginia BanCorp, Inc.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>Equity Bancshares, Inc./Community First Bancshares, Inc.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>Summit Financial Group, Inc./First Century Bankshares, Inc.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>Seacoast Banking Corporation of Florida/Floridian Financial Group, Inc.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>CenterState Banks, Inc./Hometown of Homestead Banking Company</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.5in">&bull;</TD><TD>Ameris Bancorp/Merchants &amp; Southern Banks of Florida, Inc.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Olsen Palmer noted the following selected financial measures
of the targets, in each case as of prior to the transaction announcement and for PFG as of June 30, 2019:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>Total Assets </B></P> <P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><B>($millions)</B></P></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Twelve Months<BR> Return on Average<BR> Assets</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Nonperforming<BR> Assets to Total<BR> Assets</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Tangible<BR> Common Equity<BR> to Tangible<BR> Assets</TD><TD STYLE="font-size: 10pt; font-weight: bold; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; font-size: 10pt">Low</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">$</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">189</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">0.51</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">1.78</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">9.3</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">High</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">484</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">1.45</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3.02</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12.1</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Median</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">379</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.71</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2.17</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11.2</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Mean</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">359</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.85</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2.29</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10.8</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">PFG (1)</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">$</TD><TD STYLE="font-size: 10pt; text-align: right">301</TD><TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">0.77</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2.29</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11.0</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">(1) PFG&rsquo;s twelve months return on average assets
adjusted at an assumed 21.0% tax rate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Olsen Palmer analyzed various financial multiples for each transaction
as calculated by S&amp;P Global Market Intelligence including deal value to last twelve months&rsquo; earnings prior to transaction
announcement, deal value to tangible common equity, deal value to total assets, and the core deposit premium implied by the deal
value. Olsen Palmer reviewed the mean, median, high, low, 25<SUP>th</SUP> percentile, and 75<SUP>th</SUP> percentile values for
each such metric of the acquired institution in each such transaction. The results of the selected transactions analysis are summarized
below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 90%; font: 10pt Times New Roman, Times, Serif; margin-left: 0.25in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; text-align: center; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Deal Value to Last<BR> Twelve Months<BR> Earnings</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Deal Value to<BR> Tangible Common<BR> Equity</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Deal Value to<BR> Total Assets</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font-size: 10pt; font-weight: bold; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Core Deposit<BR> Premium Implied<BR> by the Deal Value</TD><TD STYLE="font-size: 10pt; font-weight: bold; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 48%; font-size: 10pt">Low</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">10.8</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">x</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">90.0</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">5.3</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD><TD STYLE="width: 1%; font-size: 10pt">&nbsp;</TD>
    <TD STYLE="width: 1%; font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="width: 14%; font-size: 10pt; text-align: right">-1.5</TD><TD STYLE="width: 1%; font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">High</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">33.9</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">163.9</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">18.5</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">11.4</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt">Median</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">16.1</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">129.3</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12.3</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">3.9</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt">Mean</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">18.6</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">129.0</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12.6</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">4.7</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">25<SUP>th</SUP> Percentile</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">12.8</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">114.4</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">10.0</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">2.3</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt"><FONT STYLE="font-size: 10pt">75<SUP>th</SUP> Percentile</FONT></TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">23.0</TD><TD STYLE="font-size: 10pt; text-align: left">x</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">146.9</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">15.6</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: left">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: right">7.4</TD><TD STYLE="font-size: 10pt; text-align: left">%</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Discounted Cash Flow Analysis.</I></B> Olsen Palmer
analyzed the discounted present value of PFG projected free cash flows for the years ending December 31, 2019 through December
31, 2025. Olsen Palmer estimated fair value accounting adjustments, cost savings and other acquisition adjustments based on discussions
with management of PFG and SmartFinancial and their representatives. Olsen Palmer estimated cash flows based on dividendable common
equity, defined as Tier 1 Capital in excess of a minimum Tier 1 Capital ratio of 10.0%. Olsen Palmer applied a range of price
to earnings multiples of 11.0x to 13.0x, based on review of price/last twelve months earnings multiples for relevant indices of
publicly traded bank stocks, to PFG estimated calendar year 2025 net income to derive a terminal value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The projected cash flows and terminal values were discounted
using an estimated cost of equity capital for PFG derived by the Duff &amp; Phelps discount rate build-up method consisting of
the sum of a risk-free rate, equity risk premium, size premium, and industry risk premium. Olsen Palmer applied a range of discount
rates of 12.0% to 14.0%.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The calculations resulted in a rage of implied values of $1,737.21
to $2,171.92 per PFG share.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The discounted cash flow analysis is a widely used valuation
methodology that relies on numerous assumptions, including asset growth rates, earnings growth rates, discount rates, and terminal
multiples, and the results of such methodology are highly dependent on these assumptions. The financial forecasts from 2019 &ndash;
2025 were provided by PFG management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Conclusion</I></B><I>.</I> Based upon and subject to the
foregoing, and in reliance thereon, it is our opinion that, as of October 29, 2019, the merger consideration to be received by
the shareholders of PFG for all of the shares of PFG common stock in the merger pursuant to the agreement is fair, from a financial
point of view, to such holders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Olsen Palmer&rsquo;s Compensation and Other Relationships
with PFG and SmartFinancial.</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No limitations were imposed by PFG&rsquo;s board of directors
on Olsen Palmer with respect to the investigations made or procedures followed in rendering its opinion. Neither Olsen Palmer nor
the individuals involved in providing Olsen Palmer&rsquo;s opinion has any present or contemplated future ownership interest in
PFG. Olsen Palmer is acting as PFG&rsquo;s financial advisor in connection with the merger and will receive a fee for such advisory
services (&ldquo;advisory fee&rdquo;) with such fee determined by multiplying a certain percentage by the total merger consideration,
with such advisory fee contingent upon the closing of the merger. Given that the merger consideration will fluctuate between the
signing of the merger agreement and the effective time, the amount of the advisory fee will likewise fluctuate. At the time of
announcement of the transaction, Olsen Palmer&rsquo;s advisory fee was approximately $517,000. Olsen Palmer also received a $100,000
fee from PFG upon rendering its opinion (&ldquo;opinion fee&rdquo;) and a progress fee of $50,000 (&ldquo;progress fee&rdquo;)
at the time of the signing of the agreement. PFG has also agreed to indemnify Olsen Palmer against certain claims and liabilities
arising out of Olsen Palmer&rsquo;s engagement and to reimburse Olsen Palmer for certain of its out-of-pocket expenses incurred
in connection with Olsen Palmer&rsquo;s engagement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Olsen Palmer has not provided investment banking and financial
advisory services to PFG or SmartFinancial during the two-year period prior to October 29, 2019, except with respect to the transaction.
Olsen Palmer may provide investment banking, financial advisory and other financial services to PFG and/or SmartFinancial in the
future, for which Olsen Palmer may receive compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="boardcompositionandmanagementof"></A>Board Composition and Management of SmartFinancial after
the Merger</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each of the officers and directors of SmartFinancial immediately
prior to the effective time of the merger will be the officers and directors of the surviving company from and after the effective
time of the merger, until their respective successors have been duly elected, appointed or qualified or until their earlier death,
resignation or removal in accordance with the SmartFinancial Charter and SmartFinancial Bylaws. Additionally, at the effective
time of the merger, the board of directors of SmartFinancial will be expanded to add an additional member, and the vacancy caused
by such expansion will be filled with Ottis H. Phillips.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Ottis Phillips, age 68, is the Chairman of the Board, President,
and CEO of PFG and Progressive Savings Bank.&nbsp; He has served on both Boards since 2016 and as President/CEO since 2018.&nbsp;
For 20 years, Mr. Phillips was the sole owner and President of SEC Enterprises, Inc., a beverage distribution company, located
in Cookeville, Tennessee, which merged in 2013 with RMG, Inc. b/d/a Mid-South Distributing located in Tullahoma, Tennessee, where
Mr. Phillips continued as President.&nbsp; In 2016, he sold this company and formed and serves as the managing partner of Phillips
Properties Partnership in Cookeville, Tennessee, purchasing several residential rental properties. &nbsp;He has been a volunteer
on numerous boards including the Cookeville-Putnam County Chamber of Commerce, the Blue Cross Bowl Steering Committee, the Tennessee
Malt Beverage Association, the Tennessee Tech Athletic Hall of Fame selection committee, and the Tennessee Tech University Foundation
Board of Directors.&nbsp; Born and raised in the Upper Cumberland, Tennessee, Mr. Phillips graduated from Tennessee Technological
University in Cookeville, Tennessee, with a bachelor&rsquo;s degree in Mechanical Engineering and a master&rsquo;s degree in Business
Administration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="interestofpfgsdirectorsandexecutive"></A>Interests of PFG&rsquo;s Directors and Executive Officers
in the Merger</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In considering the recommendation of the PFG board of directors,
shareholders should be aware that the directors and executive officers of PFG have certain interests in the merger that may be
different from, or in addition to, the interests of PFG shareholders generally. The PFG board of directors was aware of these interests
and considered them, among other matters, in making its recommendation that PFG shareholders vote to approve the merger proposal.
These interests are described in further detail below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Appointment to the Board of Directors of SmartFinancial and
SmartBank</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the Merger Agreement, Ottis H. Phillips, President
and CEO of PFG, will become a member of the board of directors of each of Smart Financial and SmartBank following the Effective
Time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Employment Arrangement</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Some members of the Progressive Bank management team will continue
to receive employment benefits that are consistent with those of other similarly situated SmartBank employees after the closing
of the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Other</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All participants in the Jo Ann Rains Employee Stock Ownership
Plan and the Progressive Savings Bank F.S.B. 401(k) Plan, including any directors or executive officers participating in such plans,
will become 100% vested as of each plan&rsquo;s termination date (the day of the merger and the day immediately prior to the merger,
respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Indemnification; Directors&rsquo; and Officers&rsquo; Insurance</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the terms of the merger agreement, for a period
of six years from and after the effective time, SmartFinancial must indemnify certain persons, including PFG&rsquo;s directors
and executive officers. In addition, the merger agreement requires that for a period of six years from the effective time, subject
to a cap on the amount of premiums, SmartFinancial must maintain an insurance policy for the benefit of certain persons, including
PFG&rsquo;s directors and executive officers. For additional information, see &ldquo;The Merger Agreement &mdash; Covenants and
Agreements; Indemnification and Insurance.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="beneficialownershipofpfgcommonstock"></A>Beneficial Ownership of PFG Common Stock by Management
and Principal Shareholders of PFG</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.35in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of the Record Date, PFG had issued and outstanding 20,721
shares of common stock. The following table sets forth information as of the Record Date with respect to the beneficial ownership
of PFG common stock by (i) each person who is the beneficial owner of more than 10% of the outstanding shares of PFG common stock,
(ii) each director of Progressive Savings Bank and PFG, (iii) each of the executive officers of Progressive Savings Bank, PFG,
and their significant subsidiaries, and (iv) all of the above as a group. Management of PFG knows of no other persons, other than
those set forth in the following table, who own beneficially more than 10% of the outstanding shares of PFG common stock as of
the date of this Proxy Statement/Prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" ALIGN="CENTER" STYLE="border-collapse: collapse; width: 80%; font: 10pt Times New Roman, Times, Serif">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; border-bottom: Black 1pt solid; white-space: nowrap">Name,
    City, State</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap">Age</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Office<BR>
    in Bank</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Office
    in<BR> PFG</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Principal<BR>
    Occupation</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; white-space: nowrap">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; border-bottom: Black 1pt solid; white-space: nowrap"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Shares
    and % of<BR> Common Stock<SUP>1</SUP></FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD><TD STYLE="font-size: 10pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="width: 25%; font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">Matt Daugherty<BR>
    Crossville, TN</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="width: 10%; font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">54</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="width: 22%; font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">EVP of Retail</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="width: 12%; font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">N/A</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="width: 12%; font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Banker</TD><TD STYLE="width: 1%; font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="width: 14%; font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">0 (0%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">Dustin Davis<BR> Jamestown,
    TN</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">32</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">CFO</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">N/A</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Banker</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">2.295 (.01%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">Robert Dowell<BR> Knoxville,
    TN</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">71</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Director</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Director</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Pharmacist</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">593 (2.86%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">T. Scott Edwards<BR> Allardt,
    TN</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">56</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Director</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Director</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Manufacturing</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">1,949 (9.41%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Gary
    L. Hicks<SUP>2</SUP><BR> Jamestown, TN</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">54</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Director</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Director</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Banker</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">10.946 (0.05%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">Mark Justice<BR> Jamestown,
    TN</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">49</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">EVP</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">N/A</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Banker</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">9.83 (0.05%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">Mark Norman<BR> Jamestown,
    TN</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">59</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">EVP</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">N/A</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Banker</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">8.955 (0.04%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">Ottis H. Phillips<BR> Cookeville,
    TN</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">68</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Chairman, CEO, President</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Chairman, CEO, President</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Retired Beverage Distr.</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">935 (4.51%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">Mike Porten<BR> Silver Point,
    TN</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">64</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">EVP, Chief Banking Officer</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">N/A</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Banker</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">0 (0%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Emily
    Phillips Rains<SUP>3</SUP><BR> Cookeville, TN</FONT></TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">36</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">NA</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">NA</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Homemaker</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">8,564.215 (41.33%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">Paul Roberts<BR> Cookeville,
    TN</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">46</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Director</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Director</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">CPA</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">0 (0%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">Brandon Smith<BR> Jamestown,
    TN</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">44</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Director, Secretary</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Director</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Home centers operations</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">125 (0.60%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-decoration: underline; text-align: left; vertical-align: top">Executives
    of Other Subsidiaries</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">Wayne H. Cravens<BR>
    Cookeville, TN</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">Financial Services Director
    of Cravens &amp; Company Advisors, LLC</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">403.711 (1.95%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">G. Sam Sandlin<BR>
    Cookeville, TN</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">CPA,&nbsp;&nbsp;Progressive
    Accounting &amp; Tax LLC</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">0 (0%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font-size: 10pt; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top"><P STYLE="margin-top: 0; margin-bottom: 0">John
                                         Cook<BR>
                                         Jamestown, TN</P></TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">President of Rains Agency
    Inc.</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top"></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-decoration: underline; text-align: center; vertical-align: top">11.657
    (0.06%)</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: White">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-decoration: underline; text-align: center; vertical-align: top">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom; background-color: rgb(204,238,255)">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">10% Shareholders, Directors,
    and Executive Officers as a Group</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top"></TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; text-align: center; vertical-align: top">&nbsp;</TD><TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: center; vertical-align: top">12,613.609 (60.87%)</TD></TR>
</TABLE>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: -4.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: -4.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: -4.5pt"><SUP>1</SUP> 20,721 share are
outstanding. Share counts include, in some circumstances, shares allocated to each individual through the ESOP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: -4.5pt"><SUP>2</SUP> Resigned as President
and Chief Executive Officer on September 21, 2018 and as a director but agreed to serve as a until a replacement can be elected.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: -4.5pt"><SUP>3</SUP> Daughter of Ottis
Phillips.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: -4.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: -4.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 4.5pt; text-indent: -4.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG maintains an employee stock ownership plan for the benefit
of its employees known as the Jo Ann Rains Employee Stock Ownership Plan (the &ldquo;ESOP&rdquo;). Participants and/or beneficiaries
of the ESOP are entitled to direct the trustee of the ESOP as to the voting of any voting shares of PFG common stock allocated
to their PFG common stock accounts under the ESOP with respect to any vote requirement for the approval or disapproval of any corporate
merger. In accordance with instructions from the ESOP plan committee, the trustee shall vote any unallocated shares held by the
ESOP trust as well as any allocated shares for which a participant and/or beneficiary has failed to give timely voting direction.
Currently, there are 385.769 shares of PFG stock allocated to specific employees under the ESOP, with the remaining 432.231 shares
being unallocated. The trustee of the ESOP is Matt Curtis, an employee of Progressive Savings Bank. The ESOP Plan Committee is
made up of Terri Buchanan, Brittany Rose, Jessica Parrott, Lisa Wills, John Davis, Karen Cole, Tyler Atkinson, and Jerry Ward,
who are also employees of Progressive Savings Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Limitation of Director's Liability</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG's charter provides that the personal liability of a director
of PFG to PFG or its stockholders for damages for breach of fiduciary duty of the director is limited to the extent permitted by
the Tennessee Business Corporation Act and applicable federal law. There is no such limitation with respect to a director's liability
for any breach of the director's duty of loyalty to PFG or its stockholders or for acts or omissions not in good faith or which
involve intentional misconduct or a knowing violation of law. In addition, certain provisions are provided in the charter and bylaws
of PFG to indemnify officers and directors for certain acts. Such limitation of liability also does not limit a director's liability
for violation of, or otherwise relieve PFG or its directors from the necessity of complying with, federal or state securities laws,
or affect the availability of equitable remedies such as injunctive relief or rescission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG believes this provision will assist in securing the services
of directors who are not employees of PFG. As a result of the inclusion of such a provision, stockholders may be unable to recover
monetary damages against directors for actions taken by them which constitute negligence or gross negligence or which are in violation
of their fiduciary duties, although it may be possible to obtain injunctive or other equitable relief with respect to such actions.
If equitable remedies are found not to be available to stockholders for any particular case, stockholders may not have any effective
remedy against the challenged conduct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certain Transactions</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The officers and directors are required to devote only so much
of their time to the business of Progressive Savings Bank and PFG as in their judgment is reasonably required. The officers and
directors, and their affiliates, may engage, and are presently engaging, for their own accounts in other business ventures, including
management and the formation of other corporations or ventures. Such activities may result in conflicts of interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Progressive Savings Bank has in the past and will continue to
have in the future banking transactions in the ordinary course of business with directors, officers, and 5% stockholders and &quot;related
interests&quot; of such persons. As used in this connection, &quot;related interests&quot; includes any entities, such as corporations
in which directors have a 10% or greater ownership; corporations in which directors or officers of Progressive Savings Bank also
serve as officers; other organizations, partnerships, and entities in which such persons are interested; and certain relatives
of directors and officers. It is management's opinion that the direct and indirect extensions of credit described above have been
and will continue to be (i) evidenced by a promissory note naming the lender as payee, and contain an annual percentage rate which
is reasonably comparable to that normally charged to non&#45;affiliates by other commercial lenders for similar loans made in the
lender's locale; (ii) repaid pursuant to appropriate amortization schedules and contain default provisions comparable to those
normally used by other commercial lenders for similar loans made in the lender's locale; (iii) made only if credit reports and
financial statements, or other reasonable investigation appropriate in light of the nature and terms of the loan and which meet
the loan policies normally used by other commercial lenders for similar loans made to non&#45;affiliates in the lender's locale,
show the borrower to be collectible and a satisfactory credit risk; and (iv) relative to the purpose of the loan and the disbursement
of proceeds, reviewed and monitored in a manner comparable to that normally used by other commercial lenders for similar loans
made in the lender's locale on the same terms, including collateral and interest rates, as those prevailing at the time for comparable
transactions with unrelated persons and have not, and will not in the future, involve more than normal risk of uncollectibility
or present other unfavorable features. At September 30, 2019, direct and indirect loans to officers and directors by Progressive
Savings Bank aggregated approximately $2,806,000.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, the directors of PFG and shareholders owning
more than 10% of PFG who collectively beneficially own and have the power to vote approximately 58.8% of PFG common stock have
entered into agreements with SmartFinancial in which they have agreed, among other things, to vote their shares of PFG common
stock in favor of the merger proposal and the adjournment proposal. The voting agreements automatically terminate upon the earlier
to occur of (i) the approval by PFG&rsquo;s stockholders of the merger proposal or (ii) the termination of the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="regulatoryapprovalsrequiredforthe"></A>Regulatory Approvals Required for the Merger</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Completion of the merger is subject to prior receipt of all
approvals required to be obtained from applicable governmental and regulatory authorities. Subject to the terms and conditions
of the merger agreement, PFG and SmartFinancial have agreed to use their reasonable best efforts and cooperate to prepare and file,
as promptly as possible, all necessary documentation and to obtain as promptly as practicable all regulatory approvals or waivers
required or advisable to complete the transactions contemplated by the merger agreement. These approvals and waivers include, among
others, a waiver from the Federal Reserve Board and an approval from the TDFI. SmartFinancial and/or PFG have filed applications,
waiver requests and notifications to obtain the required regulatory approvals or waivers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Federal Reserve Board</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger of PFG with SmartFinancial must be approved by the
Federal Reserve Board under Section 3 of the Bank Holding Company Act of 1956, or the BHC Act, and its implementing regulations,
unless the Federal Reserve Board waives the application requirements of the BHC Act. In considering the approval of a transaction
such as the merger, the BHC Act and related laws require the Federal Reserve Board to review, with respect to the parent holding
companies and the bank concerned: (1) the competitive impact of the transaction; (2) financial, managerial and other supervisory
considerations, including capital positions and managerial resources of the subject entities; (3) the record of the insured depository
institution subsidiaries of the bank holding companies under the Community Reinvestment Act and fair lending laws; (4) the extent
to which the proposal would result in greater or more concentrated risks to the stability of the U.S. banking or financial system;
and (5) additional public benefits of the proposal, such as the benefits to the customers of the subject entities. In connection
with its review, the Federal Reserve Board will provide an opportunity for public comment on the application and is authorized
to hold a public meeting or other proceeding if it determines that would be appropriate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial filed a written request that the Federal Reserve
Board waive the application requirements of the BHC Act with regard to its acquisition of PFG on November 27, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger of Progressive Savings Bank with and into SmartBank
will be subject to approval by the Federal Reserve Board under Section 18(c) of the Federal Deposit Insurance Act (which we refer
to as the &ldquo;Bank Merger Act&rdquo;). In evaluating an application filed under the Bank Merger Act, the Federal Reserve Board
considers: (1) the competitive impact of the transaction, (2) the financial and managerial resources of the depository institutions
party to the bank merger and future prospects of the resulting institution, (3) the convenience and needs of the communities to
be served, (4) the depository institutions&rsquo; effectiveness in combating money-laundering activities and (5) the risk to the
stability of the United States banking and financial system. SmartBank&rsquo;s establishment and operation of branches at Progressive
Savings Bank&rsquo;s existing branch locations is also subject to approval under Section 9 of the Federal Reserve Act. In considering
an application under Bank Merger Act, the Federal Reserve Board also reviews the records of performance of the relevant insured
depository institutions under the CRA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartBank filed an application with the Federal Reserve Board
under the Bank Merger Act requesting approval of the bank merger on November 27, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Tennessee Department of Financial Institutions</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The merger of Progressive Savings Bank
with and into SmartBank must also be approved by the Tennessee Department of Financial Institutions (the &ldquo;TDFI&rdquo;) under
Tennessee Code Annotated Section 45-2-1304. In considering an application under&nbsp;Section&nbsp;45-2-1304,&nbsp;the TDFI reviews
certain factors, including the compliance of the resulting state bank with state laws, the adequacy of the capital structure of
the surviving bank, the fairness of the transaction, and whether the transaction is contrary to the public interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartBank filed an application with the TDFI pursuant to Tennessee
Code Annotated Section 45-2-1304 requesting approval of the bank merger on November 27, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial and PFG believe that the merger does not raise
substantial antitrust or other significant regulatory concerns and that we will be able to obtain all requisite regulatory approvals.
However, neither SmartFinancial nor PFG can assure you that all of the regulatory approvals described above will be obtained and,
if obtained, we cannot assure you as to the timing of any such approvals, our ability to obtain the approvals on satisfactory terms
or the absence of any litigation challenging such approvals. The parties have agreed that SmartFinancial will not be required,
and PFG and its subsidiaries will not be permitted, to take any action or commit to take any action or agree to any condition or
restrictions in connection with the regulatory approvals that, individually or in the aggregate, would have or would be reasonably
likely to have a material adverse effect on SmartFinancial and its subsidiaries or PFG and its subsidiaries as of and following
the completion of the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The parties&rsquo; obligation to complete the merger is conditioned
upon the receipt of all required regulatory approvals. SmartFinancial and PFG will use their respective commercially reasonable
efforts to resolve any objections that may be asserted by any regulatory authority with respect to the merger agreement or the
merger or the other transactions contemplated by the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Neither SmartFinancial nor PFG is aware of any material governmental
approvals or actions that are required for completion of the merger other than those described above. It is presently contemplated
that if any such additional governmental approvals or actions are required, those approvals or actions will be sought. There can
be no assurance, however, that any additional approvals or actions will be obtained.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="materialusfederalincometaxconse"></A>Material U.S. Federal Income Tax Consequences</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following is a general discussion of the material U.S. federal
income tax consequences of the merger to U.S. holders (as defined below) of PFG common stock that exchange their shares of PFG
stock for shares of SmartFinancial common stock and cash in the merger. This discussion is based upon the Code, its legislative
history, the Treasury Regulations promulgated under the Code, and court and administrative rulings and decisions, all as in effect
on the date of this proxy statement/prospectus, and all of which are subject to change, potentially retroactively, which could
affect the accuracy of the statements and conclusions set forth in this discussion.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For purposes of this discussion, the term &ldquo;U.S. holder&rdquo;
means a beneficial owner of PFG common stock that is for U.S. federal income tax purposes: (a) an individual citizen or resident
of the United States; (b) a corporation (or any other entity treated as a corporation for U.S. federal income tax purposes) organized
in or under the laws of the United States or any state thereof or the District of Columbia; (c) a trust if (1) a court within the
United States is able to exercise primary supervision over the administration of the trust and one or more U.S. persons have the
authority to control all substantial decisions of the trust or (2) such trust has made a valid election to be treated as a U.S.
person for U.S. federal income tax purposes; or (d) an estate, the income of which is includible in gross income for U.S. federal
income tax purposes regardless of its source.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left">This discussion addresses only those U.S. holders of PFG common
stock that hold their shares of PFG common stock as a &ldquo;capital asset&rdquo; within the meaning of Section 1221 of the Code
(generally, property held for investment). Importantly, this discussion does not address all aspects of U.S. federal income taxation
that may be relevant to a particular U.S. holder in light of that U.S. holder&rsquo;s individual circumstances or to a U.S. holder
that is subject to special treatment under the U.S. federal income tax laws, including, without limitation, a U.S. holder that
is:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>



<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a bank or other financial institution;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a tax-exempt organization;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a regulated investment company;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a real estate investment trust;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a mutual fund;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>an S corporation, partnership or other pass-through entity (or an investor in an S corporation, partnership or other pass-through
entity);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a retirement plan, individual retirement account or other tax-deferred account;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>an insurance company;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a dealer or broker in stocks and securities, or currencies;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a trader in securities that elects to use the mark-to-market method of accounting;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a holder of PFG common stock subject to the alternative minimum tax provisions of the Code;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a holder of PFG common stock that received PFG common stock through the exercise of an employee stock option, through a tax-qualified
retirement plan or otherwise as compensation;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a holder of PFG common stock that has a functional currency other than the U.S. dollar;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a holder of PFG common stock that holds such stock as part of a hedge, straddle, constructive sale, conversion or other integrated
transaction;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a person that is not a U.S. holder; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>a U.S. expatriate or former citizen or resident of the United States.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If a partnership (including an entity treated as a partnership
for U.S. federal income tax purposes) holds PFG common stock, the tax treatment of a partner in the partnership will generally
depend on the status of such partner and the activities of the partnership. Partnerships holding PFG common stock and partners
in such partnerships should consult their tax advisors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">This discussion does not address any tax consequences arising
under the laws of any state, local or foreign jurisdiction, or under any U.S. federal laws other than those pertaining to the income
tax, nor does it address any considerations in respect of any withholding required pursuant to the Foreign Account Tax Compliance
Act of 2010 (including the U.S. Treasury regulations issued thereunder and intergovernmental agreements entered into pursuant thereto).
<B>Determining the actual tax consequences of the merger to a U.S. holder is complex and can depend, in part, on the U.S. holder&rsquo;s
specific situation. Each U.S. holder should consult its own independent tax advisor as to the tax consequences of the merger in
its particular circumstance, including the applicability and effect of the alternative minimum tax and any state, local, foreign
or other tax laws and of changes in those laws.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Tax Consequences of the Merger Generally </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the filing with the SEC of the registration
statement on Form S-4 of which this proxy statement/prospectus is a part, Alston &amp; Bird LLP, tax counsel to SmartFinancial,
has rendered its tax opinion to SmartFinancial and Baker, Donelson, Bearman, Caldwell &amp; Berkowitz, PC, tax counsel to PFG,
has rendered its tax opinion to PFG, in each case to the effect that the merger will qualify as a &ldquo;reorganization&rdquo;
within the meaning of Section 368(a) of the Code. Copies of the tax opinions are attached as Exhibits 8.1 and 8.2 to the registration
statement on Form S-4.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The obligations of the parties to complete the merger are conditioned
on, among other things, the receipt by SmartFinancial and PFG of opinions from Alston &amp; Bird LLP and Baker, Donelson, Bearman,
Caldwell &amp; Berkowitz, PC, respectively, dated the closing date of the merger, to the effect that for U.S. federal income tax
purposes the merger will be treated as a &ldquo;reorganization&rdquo; within the meaning of Section 368(a) of the Code. The conditions
relating to receipt of such closing opinions may be waived by both SmartFinancial and PFG. Neither SmartFinancial nor PFG currently
intends to waive the conditions related to the receipt of the closing opinions. If receipt of the closing opinions were to be waived,
the vote of the holders of PFG stock to approve the merger agreement would be resolicited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">These opinions of Alston &amp; Bird LLP and Baker, Donelson,
Bearman, Caldwell &amp; Berkowitz, PC provided to SmartFinancial and PFG, respectively, are and will be subject to customary qualifications
and assumptions, including assumptions regarding the absence of changes in existing facts and the completion of the merger strictly
in accordance with the merger agreement and the registration statement of which this proxy statement/prospectus forms a part. In
rendering their legal opinions, Alston &amp; Bird LLP and Baker, Donelson, Bearman, Caldwell &amp; Berkowitz, PC will rely upon
representations and covenants of SmartFinancial and PFG, including those representations contained in certificates of officers
of SmartFinancial and PFG, reasonably satisfactory in form and substance to each such counsel, and will assume that such representations
are true, correct and complete without regard to any knowledge limitation and that such covenants will be complied with. If any
of these assumptions or representations are inaccurate in any way, or any of the covenants are not complied with, these opinions
could be adversely affected. The opinions represent each counsel&rsquo;s best legal judgment, but have no binding effect or official
status of any kind, and no assurance can be given that contrary positions will not be taken by the Internal Revenue Service or
a court considering the issues. In addition, neither PFG nor SmartFinancial has requested nor does either of them intend to request
a ruling from the Internal Revenue Service as to the U.S. federal income tax consequences of the merger. Accordingly, there can
be no assurances that the Internal Revenue Service will not assert, or that a court will not sustain, a position contrary to any
of the tax consequences set forth below or described in the tax opinions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following discussion assumes that the merger qualifies as
a &ldquo;reorganization&rdquo; within the meaning of Section 368(a) of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Tax Consequences to U.S. Holders</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to the discussion below relating to the receipt of cash
in lieu of a fractional share, a U.S. holder that exchanges PFG common stock for a combination of SmartFinancial common stock and
cash:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>will generally recognize capital gain (but not loss) equal to the lesser of (i) the excess, if any, of the amount of cash plus
the fair market value of any SmartFinancial common stock received in the merger over the U.S. holder&rsquo;s tax basis in the shares
of PFG common stock surrendered in exchange therefor and (ii) the amount of cash received by the U.S. holder in the merger (other
than cash received in lieu of a fractional share);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>will generally have a tax basis in the SmartFinancial common stock received in the merger (including any fractional share deemed
received and redeemed for cash as described below) equal to the tax basis of the PFG common stock surrendered in exchange therefor,
increased by the amount of taxable gain, if any, recognized by the U.S. holder in the merger (other than with respect to cash received
in lieu of a fractional share), and decreased by the amount of cash received by the U.S. holder in the merger (other than cash
received in lieu of a fractional share); and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>will generally have a holding period for shares of SmartFinancial common stock received in the merger that includes its holding
period for its shares of PFG common stock surrendered in exchange therefor.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Such capital gain will generally be long-term capital gain if,
as of the effective date of the merger, the U.S. holder&rsquo;s holding period for such shares of PFG common stock exceeds one
year. Long-term capital gain of non-corporate taxpayers, including individuals, is generally taxed at preferential rates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the case of any U.S. holder that acquired different blocks
of PFG common stock at different times and at different prices, any realized gain or loss will generally be determined separately
for each identifiable block of PFG shares exchanged in the merger. Such U.S. holder should consult its own tax advisor regarding
the manner in which gain or loss should be determined for each identifiable block of PFG shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Treatment of Pre-Closing Distributions</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Generally, distributions to a shareholder from a corporation
taxed under Subchapter S of the Internal Revenue Code are not taxable to the extent of a shareholder&rsquo;s adjusted tax basis
in the S corporation stock, with any distribution in excess of adjusted tax basis being treated as gain from the sale or exchange
of property. However, if an S corporation has C corporation earnings and profits from prior C corporation years, distributions
by the S corporation to its shareholders may be taxable as dividends under certain limited circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the Merger Agreement, PFG is permitted to make the
following distributions to its shareholders prior to closing: (1) dividend in an amount equal to the balance of PFG&rsquo;s accumulated
adjustment account as of December 31, 2019, less the tax distributions as described below, subject to a maximum of $14,595,354.37,
less any adjustments to the aggregate cash consideration pursuant to the merger agreement, (2) a one-time tax distribution payable
on or before February 29, 2020 in an amount that will enable PFG&rsquo;s shareholders to satisfy their respective tax obligations
in connection with their pro rata share of the income of PFG for the tax period ending on December 31, 2019; and (3) a one-time
tax distribution payable immediately prior to the closing in an amount sufficient for PFG&rsquo;s shareholders to satisfy their
respective tax obligations in connection with their pro rata share of the income of PFG for the tax period commencing on January
1, 2020 and ending on the closing date. We collectively refer to these distributions as the &ldquo;pre-closing distributions&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">U.S. holders generally will not be taxed on the Pre-Closing
Distributions to the extent of their tax basis in their PFG common stock immediately prior to the distribution. To the extent
that pre-closing distributions are not taxable due to a U.S. holder&rsquo;s tax basis prior to the distributions exceeding the
amount received, the holder&rsquo;s tax basis in its PFG common stock would decrease (but not below zero) by the amount of the
distributions paid. A U.S. holder&rsquo;s adjusted tax basis in PFG common stock, after taking into account the pre-closing distributions,
would affect the amount of the holder&rsquo;s gain or loss, if any, in the merger as well as the holder&rsquo;s carryover tax
basis in the SmartFinancial common stock received in the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As described above, to the extent that any such distribution
exceeds the shareholder&rsquo;s adjusted tax basis in his or her S corporation stock, the excess portion would be taxable as a
gain from the sale or exchange of property. That gain generally would be a capital gain and would be long-term capital gain if,
at the time that the distribution is made, the holder&rsquo;s holding period for its PFG common stock exceeds one year. Long-term
capital gain of non-corporate taxpayers, including individuals, is generally taxed at preferential rates.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Generally, distributions made by corporations before a merger
are disregarded in determining whether the merger is treated as a reorganization within the meaning of Section&nbsp;368(a) of the
Internal Revenue Code and are not treated as cash received in the merger (which could result in the recognition of gain by the
shareholders as a result of the merger), unless the source of funds for such distributions can be traced to the acquiring entity.
PFG intends to make the pre-closing distributions described above out of its own funds and does not expect that such distributions
would cause the merger to fail to be treated as a reorganization within the meaning of Section&nbsp;368(a) of the Internal Revenue
Code or that such distributions would be treated as cash received in the merger, but there can be no assurances that the Internal
Revenue Service or a court would not adopt a contrary position.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A U.S. holder who recognizes gain to the extent pre-closing
distributions exceed the holder&rsquo;s tax basis in the PFG shares may also be subject to net investment income tax, backup withholding,
and reporting in the same manner as described below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Shareholders Exercising Dissenters&rsquo; Rights </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Upon its exercise of dissenters&rsquo; rights, a U.S. holder
of PFG common stock will exchange all of its PFG common stock for cash. A U.S. holder that receives only cash in exchange for its
PFG common stock in the merger will generally recognize gain or loss equal to the difference between the amount of cash received
and such U.S. holder&rsquo;s tax basis in its PFG common stock. This gain or loss generally will be capital gain or loss and will
be long-term capital gain or loss if the U.S. holder&rsquo;s holding period for its shares of PFG common stock surrendered exceeds
one year. Long-term capital gain of non-corporate taxpayers, including individuals, is generally taxed at preferential rates. The
deductibility of capital losses may be subject to limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Cash In Lieu of a Fractional Share </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If a U.S. holder receives cash in lieu of a fractional share
of SmartFinancial common stock, the U.S. holder will generally be treated as having received the fractional share of SmartFinancial
common stock in the merger and then as having exchanged the fractional share of SmartFinancial common stock for cash. As a result,
the U.S. holder generally will recognize gain or loss equal to the difference between the amount of cash received and the portion
of the U.S. holder&rsquo;s aggregate tax basis allocable to the fractional share of SmartFinancial common stock. This gain or loss
generally will be capital gain or loss and will be long-term capital gain or loss if, as of the effective date of the merger, the
U.S. holder&rsquo;s holding period for the PFG common stock deemed surrendered in exchange for the fractional share of SmartFinancial
common stock exceeds one year. Long-term capital gain of non-corporate taxpayers, including individuals, is generally taxed at
preferential rates. The deductibility of capital losses may be subject to limitations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Net Investment Income Tax</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A. non-corporate U.S. holder of PFG common stock is generally
subject to a 3.8% tax on the lesser of (i) his or her &ldquo;net investment income&rdquo; for the relevant taxable year or (ii)
the excess of his or her modified adjusted gross income for the taxable year over a certain threshold which depends on the holder&rsquo;s
U.S. federal income tax filing status. Net investment income generally would include any gain recognized in connection with the
merger, as well as, among other items, other interest, dividends, capital gains and rental or royalty income received. U.S. holders
of PFG common stock should consult their own tax advisors as to the application of this additional tax to their circumstances.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Backup Withholding </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Backup withholding at the applicable rate (currently 24%) may
apply with respect to certain cash payments to holders of PFG common stock unless the holder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>furnishes a correct taxpayer identification number, certifies that it is not subject to backup withholding on IRS Form W-9
or successor form included in the letter of transmittal that the U.S. holder will receive, and otherwise complies with all the
applicable requirements of the backup withholding rules; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 27pt"></TD><TD STYLE="width: 18pt"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>provides proof that it is otherwise exempt from backup withholding.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Any amounts withheld under the backup withholding rules are
not an additional tax and will generally be allowed as a refund or credit against the U.S. holder&rsquo;s U.S. federal income tax
liability, provided the U.S. holder timely furnishes the required information to the Internal Revenue Service.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Certain Reporting Requirements </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If a U.S. holder that receives SmartFinancial common stock in
the merger is considered a &ldquo;significant holder,&rdquo; such U.S. holder will generally be required (a) to file a statement
with its U.S. federal income tax return providing certain facts pertinent to the merger, including such U.S. holder&rsquo;s tax
basis in, and the fair market value of, the PFG common stock surrendered by such U.S. holder, and (b) to retain permanent records
of these facts relating to the merger. A &ldquo;significant holder&rdquo; is any PFG shareholder that, immediately before the merger,
(y) owned at least 1% (by vote or value) of the outstanding stock of PFG or (z) owned PFG securities with a tax basis of $1.0 million
or more.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>This discussion of material U.S. federal income tax consequences
does not purport to be a complete analysis or discussion of all the potential tax consequences of the merger. It is for general
information only purposes and is not tax advice. Holders of PFG common stock are urged to consult their own independent tax advisors
as to the U.S. federal income tax consequences, in light of their particular situations, of the merger (or exercise of dissenters&rsquo;
rights), as well as the applicability of any other U.S. federal tax laws and any state, local, and foreign tax laws.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="accountingtreatment"></A>Accounting Treatment</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger will be accounted for under the acquisition method
of accounting for business combinations under GAAP. Under this method, PFG&rsquo;s assets and liabilities as of the date of the
merger will be recorded at their respective fair values. Any difference between the purchase price for PFG and the fair value of
the identifiable net assets acquired (including core deposit intangibles) will be recorded as goodwill. In accordance with ASC
Topic 805, &ldquo;<I>Business Combinations</I>,&rdquo; the goodwill resulting from the merger will not be amortized to expense,
but instead will be reviewed for impairment at least annually and to the extent goodwill is impaired, its carrying value will be
written down to its implied fair value and a charge will be made to earnings. Core deposit and other intangibles with definite
useful lives recorded by SmartFinancial in connection with the merger will be amortized to expense in accordance with such rules.
The consolidated financial statements of SmartFinancial issued after the merger will reflect the results attributable to the acquired
operations of PFG beginning on the date of completion of the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="dissentersrights"></A>Dissenters&rsquo; Rights</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under Tennessee law, holders of shares of PFG common stock who
deliver written notice of their intent to dissent and do not vote in favor of the merger proposal have the right to dissent and
receive the fair value of their PFG common stock in cash. PFG shareholders electing to exercise dissenters&rsquo; rights must comply
with the provisions of Chapter 23 of the Tennessee Business Corporation Act in order to perfect their rights. A copy of Chapter
23 of the Tennessee Business Corporation Act is attached to as <U>Annex C</U> to this proxy statement/prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following is intended as a brief summary of the material
provisions of the Tennessee statutory procedures required to be followed by a holder of PFG common stock in order to properly dissent
from the merger and perfect the shareholder&rsquo;s dissenters&rsquo; rights. This summary, however, is not a complete statement
of all applicable requirements and is qualified in its entirety by reference to Chapter 23 of the Tennessee Business Corporation
Act, the full text of which appears as <U>Annex C</U> of this proxy statement/prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Holders of PFG common stock who do not vote in favor of (or
who abstain from voting on) the merger proposal, and who perfect their dissenters&rsquo; rights by complying with the provisions
of Chapter 23 of the Tennessee Business Corporation Act, will have the right to receive cash payment for the &ldquo;fair value&rdquo;
of their PFG common stock as determined in accordance with Chapter 23 of the Tennessee Business Corporation Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In order to perfect dissenters&rsquo; rights with respect to
the merger, a holder of PFG common stock must (1) deliver to PFG, before the vote to approve the merger proposal is taken, written
notice of his or her intent to demand payment for his or her shares of PFG common stock if the merger is consummated; and (2) not
vote, or cause or permit to be voted, any of his shares of PFG common stock in favor of the merger proposal. Within 10 days after
consummation of the merger, PFG must send to each of the PFG shareholders who has perfected dissenters&rsquo; rights in accordance
with the steps disclosed above, a written dissenters&rsquo; notice and form setting forth instructions for receipt and payment
of their shares of PFG common stock. Upon receipt of such notice and form, dissenting PFG shareholders will become entitled to
receive payment of their shares of PFG common stock when they: (1) demand payment; (2) certify that they received their shares
prior to the date of the first public announcement of SmartFinancial&rsquo;s and PFG&rsquo;s intention to merge; and (3) deposit
with SmartFinancial certificates representing their shares of PFG common stock in accordance with the instructions set forth in
the notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Any holder of PFG common stock contemplating the exercise of
his or her dissenters&rsquo; rights should carefully review Chapter 23 of the Tennessee Business Corporation Act, a copy of which
is attached to this proxy statement/prospectus as <U>Annex C</U>. A holder of PFG common stock who fails to comply with all requirements
of such Chapter 23 will forfeit his or her dissenters&rsquo; rights and, upon consummation of the merger, that holder&rsquo;s shares
of PFG common stock will be converted into the right to receive the merger consideration to which the shareholder is entitled under
the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>In general, any dissenting shareholder who perfects his or
her right to be paid the &ldquo;fair value&rdquo; of the holder&rsquo;s PFG common stock in cash will recognize taxable gain or
loss for federal income tax purposes upon receipt of any cash.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="exchangeofsharesinthemerger"></A>Exchange of Shares in the Merger</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The conversion of PFG common stock into the right to receive
the merger consideration will occur automatically at the effective time of the merger. After completion of the merger, the exchange
agent will exchange certificates representing shares of PFG common stock for the merger consideration to be received pursuant to
the terms of the merger agreement. For more information regarding the procedures for exchanging your shares of PFG common stock
for the merger consideration, see &ldquo;The Merger Agreement &ndash; Procedures for Converting Shares of PFG Common Stock into
Merger Consideration&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="listingofsmartfinancialcommon"></A>Listing of SmartFinancial Common Stock</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial has agreed to use its commercially reasonable
efforts to cause the shares of SmartFinancial common stock issuable in connection with the merger be approved for listing on the
NASDAQ Capital Market, subject to official notice of issuance, prior to the effective time of the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="themergeragreement"></A>THE MERGER AGREEMENT</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>The following describes certain aspects of the merger, including
certain material provisions of the merger agreement. The following description of the merger agreement is subject to, and qualified
in its entirety by reference to, the merger agreement, which is attached to this proxy </I>statement<I>/prospectus as&nbsp;<U>Annex
A</U>&nbsp;and is incorporated by reference into this proxy statement/prospectus. We urge you to read the merger agreement carefully
and in its entirety, as it is the legal document governing the merger. </I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="structureofthemerger"></A>Structure of the Merger</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The boards of directors of SmartFinancial and PFG have each
unanimously approved the merger agreement, which provides for the merger of PFG with and into SmartFinancial, with SmartFinancial
as the surviving company in the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger agreement also provides that immediately after the
effective time of the merger but in effect simultaneously on the date the merger closes, Progressive Bank, which is a direct wholly
owned subsidiary of PFG, will merge with and into SmartBank, a direct wholly owned subsidiary of SmartFinancial, with SmartBank
as the surviving bank of such merger. The terms and conditions of the merger of SmartBank and Progressive Bank are set forth in
a separate merger agreement and plan of merger, referred to as the bank merger agreement, the form of which is attached as Exhibit
B to the merger agreement. As provided in the bank merger agreement, the merger of SmartBank and Progressive Bank may be abandoned
at the election of SmartFinancial at any time, whether before or after filings are made for regulatory approval of such merger.
We refer to the merger of SmartBank and Progressive Bank as the bank merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger agreement allows SmartFinancial to change the structure
of the merger at any time and without the approval of PFG if and to the extent that SmartFinancial reasonably deems such a change
to be necessary; <I>provided, however</I>, that no such change shall (i) alter or change the amount or kind of merger consideration
to be provided under the merger agreement, (ii) materially impede or delay consummation of the merger, (iii) adversely affect the
federal income tax treatment of PFG shareholders in connection with the merger, or (iv) require submission to or the approval of
PFG shareholders after the merger proposal has already been approved by PFG&rsquo;s shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="closingandeffectivetime"></A>Closing and Effective Time of the Merger</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The closing will take place immediately prior to the effective
time of the merger. The effective time of the merger will be the later of (i) the date and time of filing of the articles of merger
with the Secretary of State of the State of Tennessee by SmartFinancial or (ii) the date and time when the merger becomes effective
as set forth in such articles of merger, which will be no later than three business days after all of the conditions to the closing
of the merger have been satisfied or waived in accordance with their terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">We currently expect that the merger will be completed in the
first quarter of 2020, subject to obtaining the requisite approvals from the shareholders of PFG, the receipt of all necessary
regulatory approvals and the expiration of all regulatory waiting periods and other conditions. However, completion of the merger
could be delayed if there is a delay in obtaining the required regulatory approvals or in satisfying any other conditions to the
merger. No assurance is made as to whether, or when, SmartFinancial and PFG will obtain the required approvals or complete the
merger. See &ldquo;The Merger Agreement &mdash; Conditions to Completion of the Merger.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="organizationaldocuments"></A>Organizational Documents of the Surviving Company</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At the effective time of the merger, the SmartFinancial Charter
and the SmartFinancial Bylaws in effect immediately prior to the effective time of the merger will be the charter and bylaws of
the surviving company until thereafter amended in accordance with their respective terms and applicable laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="boardcompositionand"></A>Board Composition and Management of Surviving Company</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each of the officers and directors of SmartFinancial immediately
prior to the effective time of the merger will be the officers and directors of the surviving company from and after the effective
time of the merger, until their respective successors have been duly elected, appointed or qualified or until their earlier death,
resignation or removal in accordance with the SmartFinancial Charter and the SmartFinancial Bylaws, provided, however, that the
board of directors of SmartFinancial shall be expanded as of the effective time to add one additional seat, which will be filled
by Ottis H. Phillips.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="mergerconsideration"></A>Merger Consideration</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the terms of the merger agreement, at the effective time
of the merger, each share of PFG common stock issued and outstanding immediately prior to the effective time of the merger will
be converted into the right to receive &nbsp;a pro&nbsp;rata portion (which is a ratio equal to one divided by the number of shares
of PFG common stock issued and outstanding as of the closing)&nbsp;of (1) an aggregate amount of cash equal to $14,595,354.37 minus
the amount of any pre-closing dividend paid by PFG and any loss in excess of $250,000 realized by PFG or its applicable subsidiary
on sales of certain assets prior to closing, and (2) 1,292,592.556 shares of SmartFinancial common stock. We refer to the cash
and shares of SmartFinancial common stock into which the PFG common stock will convert as the &ldquo;merger consideration&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial will not issue any fractional shares of SmartFinancial
common stock in the merger. PFG shareholders who would otherwise be entitled to a fractional share of SmartFinancial common stock
upon the completion of the merger will instead receive an amount in cash (without interest and rounded to the nearest whole cent)
determined by multiplying the fractional share interest in SmartFinancial common stock (rounded to the nearest one hundredth of
a share) by the average closing price of SmartFinancial&rsquo;s common stock on the NASDAQ Capital Market over the ten (10) trading
days ending on the trading day immediately prior to the closing date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If SmartFinancial or PFG change the number of shares of SmartFinancial
common stock or PFG common stock outstanding prior to the effective time of the merger as a result of a stock split, reverse stock
split, stock combination, stock dividend, recapitalization, reclassification, reorganization or similar transaction with respect
to SmartFinancial common stock or PFG common stock and the record date for such corporate action is prior to the effective time
of the merger, then the merger consideration shall be appropriately and proportionately adjusted to give PFG shareholders the same
economic effect as contemplated by the merger agreement prior to any such event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The value of the shares of SmartFinancial common stock to be
issued to PFG shareholders in the merger will fluctuate between now and the closing date of the merger. We make no assurances as
to whether or when the merger will be completed, and you are advised to obtain current sale prices for the SmartFinancial common
stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="proceduresforconverting"></A>Procedures for Converting Shares of PFG Common Stock into
Merger Consideration</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; border: white 1pt solid"><B><I>Exchange Agent </I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial will designate a third party to act as the exchange
agent in connection with the merger. The exchange agent shall also act as the agent for PFG shareholders for the purpose of receiving
their PFG stock certificates and shall obtain no rights or interests in the shares represented thereby. Prior to the effective
time of the merger, SmartFinancial will deposit, or cause to be deposited, with the exchange agent the aggregate merger consideration
and, to the extent then determinable, any cash payable in lieu of fractional shares, necessary to satisfy the aggregate merger
consideration payable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Transmittal Materials and Procedures</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Promptly (but not more than three business days) after the effective
time of the merger, SmartFinancial will cause the exchange agent to send transmittal materials, which will include the appropriate
form of letter of transmittal, to holders of record of shares of PFG common stock (other than excluded shares) providing instructions
on how to effect the delivery of certificates or book-entry shares of PFG common stock in exchange for the merger consideration.
After the effective time of the merger, when a PFG shareholder surrenders his or her stock certificates or book-entry shares, accompanied
by a properly executed letter of transmittal and any other documents as may reasonably be required by the exchange agent, the holder
of shares of PFG common stock will be entitled to receive, (i)&nbsp;the merger consideration and (ii) any cash in lieu of fractional
shares to which the holder is entitled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="surrenderofpeg"></A>Surrender of PFG Stock Certificates</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The exchange agent will mail to each holder of record of PFG
common stock the letter of transmittal along with instructions for completing the letter of transmittal and delivering to the exchange
agent the completed letter of transmittal along with the stock certificates or book-entry shares representing the shares of PFG
common stock held by the shareholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Following the effective time of the merger, upon the surrender
to the exchange agent of the certificate(s) or book-entry shares representing his or her shares of PFG common stock, accompanied
by a properly completed letter of transmittal, a PFG shareholder will be entitled to receive the merger consideration promptly
after the effective time of the merger (including any cash in lieu of fractional shares). Until surrendered, each such certificate
or book-entry share will represent after the effective time of the merger, for all purposes, only the right to receive the merger
consideration, without interest (including any cash in lieu of fractional shares), and any dividends to which such holder is entitled
pursuant to the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No dividends or other distributions with respect to SmartFinancial
common stock after completion of the merger will be paid to the holder of any unsurrendered PFG stock certificates or book-entry
shares with respect to the shares of PFG common stock represented by those certificates until those certificates or book-entry
shares have been properly surrendered. Subject to applicable abandoned property, escheat or similar laws, following the proper
surrender of any such previously unsurrendered PFG stock certificate or book-entry shares, the holder of the certificate or book-entry
shares will be entitled to receive, without interest: (i)&nbsp;the amount of unpaid dividends or other distributions with a record
date after the effective time of the merger payable with respect to the whole shares of SmartFinancial common stock represented
by that certificate or book-entry shares; and (ii)&nbsp;at the appropriate payment date, the amount of dividends or other distributions
payable with respect to shares of SmartFinancial common stock represented by that certificate or the book-entry shares with a record
date after the effective time of the merger (but before the date on which the certificate or book-entry shares are surrendered)
and with a payment date subsequent to the issuance of the shares of SmartFinancial common stock issuable in exchange for that certificate
or book-entry shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">None of SmartFinancial, the exchange agent or any other person
will be liable to any former PFG shareholder for any amount delivered in good faith to a public official pursuant to applicable
abandoned property, escheat or similar laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In the event any PFG stock certificate is lost, stolen or destroyed,
in order to receive the merger consideration (including cash in lieu of any fractional shares), the holder of that certificate
must provide an affidavit of that fact and, if reasonably required by SmartFinancial or the exchange agent, post a bond in such
amount as SmartFinancial or the exchange agent determines is reasonably necessary to indemnify it against any claim that may be
made against it with respect to that certificate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial and the exchange agent will be entitled to deduct
and withhold from the consideration otherwise payable to any PFG shareholder the amounts they are required to deduct and withhold
under any applicable federal, state, local or foreign tax law. If any such amounts are withheld, these amounts will be treated
for all purposes of the merger agreement as having been paid to the shareholders from whom they were withheld.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">After completion of the merger, there will be no further transfers
on the stock transfer books of PFG other than to settle transfers of PFG common stock that occurred prior to the effective time
of the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No interest will be paid or accrued on any amount payable upon
cancellation of shares of PFG common stock. The shares of SmartFinancial common stock issued and cash amount paid in accordance
with the merger agreement upon conversion of the shares of PFG common stock (including any cash paid in lieu of fractional shares)
will be deemed to have been issued and paid in full satisfaction of all rights pertaining to the shares of PFG common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If any portion of the merger consideration is to be delivered
to a person or entity other than the holder in whose name any surrendered certificate is registered, it will be a condition of
such exchange that (i) the certificate surrendered must be properly endorsed or must be otherwise in proper form for transfer and
(ii) the person or entity requesting such payment pays any transfer or other similar taxes required by reason of the payment of
the merger consideration to a person or entity other than the registered holder of the certificate surrendered or will establish
to the satisfaction of SmartFinancial that such tax has been paid or is not required to be paid. Payment of the applicable merger
consideration with respect to book-entry shares will only be made to the person or entity in whose name such book-entry shares
are registered. The shares of SmartFinancial common stock may be in uncertificated book-entry form, unless a physical certificate
is otherwise required by any applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="representationsand"></A>Representations and Warranties</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger agreement contains customary representations and
warranties of SmartFinancial and PFG relating to their respective businesses that are made as of the date of the merger agreement
and as of the closing date of the merger. The representations and warranties of each of SmartFinancial and PFG have been made solely
for the benefit of the other party, and these representations and warranties should not be relied on by any other person. In addition,
these representations and warranties:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">have been qualified by information set forth in confidential disclosure schedules in connection with
signing the merger agreement&mdash;the information contained in these schedules modifies, qualifies and creates exceptions to the
representations and warranties in the merger agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">will not survive consummation of the merger;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">may be intended not as statements of fact, but rather as a way of allocating the risk to one of the
parties to the merger agreement if those statements turn out to be inaccurate;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">are in some cases subject to a materiality standard described in the merger agreement which may differ
from what may be viewed as material by you; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">were made only as of the date of the merger agreement or such other date as is specified in the merger
agreement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The representations and warranties made by SmartFinancial and
PFG to each other primarily relate to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">corporate organization, existence, power and authority;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">capitalization;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">corporate authorization to enter into the merger agreement and to consummate the merger;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">regulatory approvals and consents required in connection with the merger and the bank merger;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the accuracy of financial statements;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">absence of material adverse effect on each party since December 31, 2018;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">litigation and legal proceedings;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">compliance with laws; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">accuracy of the information supplied by each party for inclusion or incorporation by reference in
this proxy statement/prospectus.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG has also made representations and warranties to SmartFinancial
with respect to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">material contracts;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">effectiveness of internal controls;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">receipt of fairness opinion;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">employee benefit plans;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">labor and employee relations;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">environmental matters;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">investment portfolio;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">derivative transactions;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">loan portfolio;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">adequacy of allowances for loan losses;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">trust business and the administration of fiduciary accounts;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">investment management and related activities;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">repurchase agreements;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">deposit insurance;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">regulatory compliance and information security;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the absence of any regulatory agreements;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">transactions with affiliates;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">real and personal property matters;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">intellectual properties;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">insurance policies;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">fees paid to financial advisors;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">tax matters;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">absence of state takeover laws applicability; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">transaction costs.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="definitionof"></A>Definition of &ldquo;Material Adverse Effect&rdquo;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certain representations and warranties of SmartFinancial and
PFG are qualified as to &ldquo;materiality&rdquo; or &ldquo;material adverse effect.&rdquo; For purposes of the merger agreement,
a &ldquo;material adverse effect,&rdquo; when used in reference to either SmartFinancial or PFG, means (i)&nbsp;any change, development
or effect that individually or in the aggregate is, or is reasonably likely to be, material and adverse to the condition (financial
or otherwise), results of operations, liquidity, assets or deposit liabilities, properties, or business of such party and its subsidiaries,
taken as a whole, or (ii) any change, development or effect that individually or in the aggregate would, or would be reasonably
likely to, materially impair the ability of such party to perform its obligations under the merger agreement or otherwise materially
impairs, or is reasonably likely to materially impair, the ability of such party to consummate the merger and the transactions
contemplated&nbsp;by the merger agreement. For purposes of clause (i) only, the definition of &ldquo;material adverse effect&rdquo;
excludes the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">changes in banking and similar laws of general applicability or interpretations thereof by any governmental
authority;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">changes in GAAP or regulatory accounting requirements applicable to banks or bank holding companies
generally;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">changes in global, national or regional political conditions (including the outbreak of war or acts
of terrorism) or in economic or market (including equity, credit and debt markets, as well as changes in interest rates) conditions
affecting the financial services industry generally;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">public disclosure of the transactions contemplated or actions expressly required by the merger agreement
or actions or omissions that are taken with the prior written consent of the other party, or as otherwise expressly permitted or
contemplated by the merger agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">any failure by PFG or SmartFinancial to meet any internal or published industry analyst projections
or forecasts or estimates of revenues or earnings for any period (it being understood and agreed that the facts and circumstances
giving rise to such failure that are not otherwise excluded from the definition of material adverse effect may be taken into account
in determining whether there has been a material adverse effect);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">changes in the trading price or trading volume of SmartFinancial common stock; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the impact of this merger agreement and the transactions contemplated by the merger agreement on relationships
with customers or employees, including the loss of personnel;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>except</I>, with respect to the first three bullets, if the
effects of such change disproportionately affect such party and its subsidiaries, taken as a whole, as compared to other companies
in the industry in which such party and its subsidiaries operate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="convenantsandagree"></A>Covenants and Agreements</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the merger agreement, SmartFinancial and PFG have
agreed to certain restrictions on their activities until the effective time of the merger. SmartFinancial has agreed that it will
carry on its business consistent with prudent banking practices and in compliance in all material respects with applicable laws.
PFG has agreed to carry on its business, including the business of each of its subsidiaries, in the ordinary course of business
and consistent with prudent banking practice. In addition, PFG has agreed that it will use commercially reasonable efforts to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">preserve its business organization and assets intact;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">keep available to itself and SmartFinancial the present services of the current officers and employees
of PFG and its subsidiaries; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">preserve for itself and SmartFinancial the goodwill of its customers, employees, lessors and others
with whom business relationships exists.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial has also agreed that until the effective time
of the merger, it and its subsidiaries will not take any or knowingly fail to take any action that is intended or is reasonably
likely to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">prevent, delay or impair SmartFinancial&rsquo;s ability to consummate the merger or the transactions
contemplated by the merger agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">agree to take, commit to take, or adopt any resolution of its board of directors in support of, any
of the actions prohibited by the merger agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">result in the merger or the bank merger failing to qualify as a &ldquo;reorganization&rdquo; under
Section 368(a) of the Code;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">take any action that is likely to materially impair SmartFinancial&rsquo;s ability to perform any
of its obligations under the merger agreement or SmartBank to perform any of its obligations under the bank plan of merger; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">agree or commit to do any of the foregoing.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG has also agreed that it will not, and will not permit its
subsidiaries to do any of the following without the prior written consent of SmartFinancial, except as previously agreed to by
the parties:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">(i) issue, sell, grant, pledge, dispose of, encumber, or otherwise permit to become outstanding, or
authorize the creation of, any additional shares of its stock, any rights, any new award or grant under the PFG stock plans or
otherwise, or any other securities (including units of beneficial ownership interest in any partnership or limited liability company),
or&nbsp;enter into any agreement with respect to the foregoing, (ii)&nbsp;except as permitted in the merger agreement, accelerate
the vesting of any existing warrants, options or other rights, or (iii)&nbsp;except as permitted in the merger agreement (and provided
that PFG may repurchase, redeem or otherwise acquire shares of PFG common stock in connection with the payment of the withholding
taxes owed by a holder of a PFG restricted share upon the vesting of a PFG restricted share), directly or indirectly change (or
establish a record date for changing), adjust, split, combine, redeem, reclassify, exchange, purchase or otherwise acquire any
shares of its capital stock, or any other securities (including units of beneficial ownership interest in any partnership or limited
liability company) convertible into or exchangeable for any additional shares of stock, any rights issued and outstanding prior
to the effective time;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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    <!-- Field: /Page -->

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">make, declare, pay or set aside for payment of dividends payable in cash, stock or property on or
in respect of, or declare or make any distribution on, any shares of its capital stock, except (i) the AAA Dividend and tax distributions,
and (ii) dividends from wholly owned subsidiaries to PFG;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">enter into or amend or renew any employment, consulting, compensatory, severance, retention or similar
agreements or arrangements with any director, officer or employee of PFG or its subsidiaries, or grant any salary, wage or fee
increase or increase any employee benefit or pay any incentive or bonus payments, except (i)&nbsp;normal increases in base salary
to employees in the ordinary course of business and pursuant to policies currently in effect, <I>provided that,</I> such increases
shall not result in an annual adjustment in base compensation (which includes base salary and any other compensation other than
bonus payments) of more than 5% for any individual or 3% in the aggregate for all employees of PFG or its subsidiaries, (ii) as
specifically provided for by the merger agreement, (iii)&nbsp;as may be required by law, (iv)&nbsp;to satisfy contractual obligations,
or (v) as previously disclosed to SmartFinancial;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">hire any person as an employee of PFG or any of its subsidiaries, except for at-will employees at
an annual rate of salary not to exceed $75,000;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">enter into, establish, adopt, amend, modify or terminate (except (i)&nbsp;as may be required by or
to make consistent with applicable law, subject to the provision of prior written notice to and consultation with SmartFinancial,
(ii)&nbsp;to satisfy contractual obligations existing as of the date of the merger agreement and as previously disclosed to SmartFinancial,
(iii) as previously disclosed to SmartFinancial, or (iv) as may be required pursuant to the terms of the merger agreement) any
PFG benefit plan or other pension, retirement, stock option, stock purchase, savings, profit sharing, deferred compensation, consulting,
bonus, group insurance or other employee benefit, incentive or welfare contract, plan or arrangement, or any trust agreement (or
similar arrangement) related thereto, in respect of any current or former director, officer or employee of PFG or any of its subsidiaries;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">pay, loan or advance any amount to, or sell, transfer or lease any properties or assets (real, personal
or mixed, tangible or intangible) to, or enter into any agreement or arrangement with, any of its officers or directors or any
of their immediate family members or any affiliates or associates of any of its officers or directors other than compensation or
business expense advancements or reimbursements in the ordinary course of business, except (i) pursuant to agreements or arrangements
in effect on the date of the merger agreement and previously disclosed to SmartFinancial, (ii) making or renewing loans to directors,
officers, and their immediate family members, affiliates, or associates that are below certain thresholds and which are in compliance
with federal banking regulations, or (iii) entering into deposit agreements or pay out deposits to any of the persons or entities
covered by the preceding clause (ii);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">except in the ordinary course of business, sell, license, lease, transfer, mortgage, pledge, encumber
or otherwise dispose of or discontinue any of its rights, assets, deposits, business or properties or cancel or release any indebtedness
owed to PFG or any of its subsidiaries;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">acquire or agree to acquire, by merging or consolidating with, or by purchasing a substantial equity
interest in or a substantial portion of the assets of, or by any other manner, any business or any corporation, partnership, association
or other business organization or division thereof or otherwise acquire any assets, which would be material, individually or in
the aggregate, to PFG, other than in connection with foreclosures, settlements in lieu of foreclosure or troubled loan or debt
restructurings in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">make any capital expenditures in amounts exceeding $50,000 individually, or $250,000 in the aggregate,
provided that SmartFinancial shall grant or deny its consent to emergency repairs or replacements necessary to prevent substantial
deterioration of the condition of a property within two (2) business days of its receipt of a written request from PFG;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">amend the PFG Charter or the PFG Bylaws or any equivalent documents of PFG&rsquo;s subsidiaries;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">implement or adopt any change in its accounting principles, practices or methods, other than as may
be required by applicable laws, GAAP or applicable accounting requirements of any governmental authority, in each case, including
changes in the interpretation or enforcement thereof;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">except as previously disclosed to SmartFinancial, enter into, amend, modify, terminate, extend, or
waive any material provision of, any PFG material contract, lease or insurance policy, or make any change in any instrument or
agreement governing the terms of any of its securities, or material lease, license or contract, other than normal renewals of contracts,
licenses and leases without material adverse changes of terms with respect to PFG or any of its subsidiaries, or enter into any
contract that would constitute a PFG material contract if it were in effect on the date of the merger agreement, except for any
amendments, modifications or terminations reasonably requested by SmartFinancial;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">other than settlement of foreclosure actions in the ordinary course of business, (i) enter into any
settlement or similar agreement with respect to any action, suit, proceeding, order or investigation to which PFG or any of its
subsidiaries is or becomes a party after the date of the merger agreement, which settlement or agreement involves payment by PFG
or any of its subsidiaries of an amount which exceeds $75,000 individually or $150,000 in the aggregate and/or would impose any
material restriction on the business of PFG or any of its subsidiaries or (ii) waive or release any material rights or claims,
or agree or consent to the issuance of any injunction, decree, order or judgment restricting or otherwise affecting its business
or operations;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">(i) enter into any material new line of business, introduce any material new products or services,
any material marketing campaigns or any material new sales compensation or incentive programs or arrangements; (ii) change in any
material respect its lending, investment, underwriting, risk and asset liability management and other banking and operating policies,
except as required by applicable law, regulation or policies imposed by any governmental authority; (iii) make any material changes
in its policies and practices with respect to underwriting, pricing, originating, acquiring, selling, servicing, or buying or selling
rights to service loans, its hedging practices and policies, and (iv) incur any material liability or obligation relating to retail
banking and branch merchandising, marketing and advertising activities and initiatives except in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">enter into any derivative transaction;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">incur any indebtedness for borrowed money other than in the ordinary course of business consistent
with past practice with a term not in excess of 12 months (other than creation of deposit liabilities or sales of certificates
of deposit in the ordinary course of business), or incur, assume or become subject to, whether directly or by way of any guarantee
or otherwise, any obligations or liabilities (whether absolute, accrued, contingent or otherwise) of any other person, other than
the issuance of letters of credit in the ordinary course of business and in accordance with restrictions on making or extending
loans as set forth in the merger agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">(i) other than in accordance with PFG&rsquo;s investment guidelines, acquire, sell or otherwise dispose
of any debt security or equity investment or any certificates of deposits issued by other banks, or (ii) change the classification
method for any of the PFG investment securities from &ldquo;held to maturity&rdquo; to &ldquo;available for sale&rdquo; or from
&ldquo;available for sale&rdquo; to &ldquo;held to maturity,&rdquo; as those terms are used in specified accounting literature;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">make any changes to deposit pricing other than such changes made in the ordinary course of business;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">except for loans or extensions of credit approved and/or committed as of the date of the merger agreement
and disclosed to SmartFinancial, (i) make, renew, renegotiate, increase, extend or modify any (A) unsecured loan, if the amount
of such unsecured loan, together with any other outstanding unsecured loans made by PFG or any of its subsidiaries to such borrower
or its affiliates, would be in excess of $100,000, in the aggregate, (B) loan secured by other than a first lien in excess of $350,000,
(C) loan in excess of the Federal Financial Institutions Examination Council&rsquo;s regulatory guidelines relating to loan to
value ratios, (D) loan secured by a first lien residential mortgage and with no loan policy exceptions in excess of $500,000, (E)
secured loan over $750,000, (F) any loan that is not made in conformity with PFG&rsquo;s ordinary course lending policies and guidelines
in effect as of the date of the merger agreement, or (G) loan, whether secured or unsecured, if the amount of such loan, together
with any other outstanding loans (without regard to whether such other loans have been advanced or remain to be advanced), would
result in the aggregate outstanding loans to any borrower of PFG or any of its subsidiaries (without regard to whether such other
loans have been advanced or remain to be advanced) to exceed $750,000, (ii) sell any loan or loan pools in excess of $1,000,000
in principal amount or sale price (other than residential mortgage loan pools sold in the ordinary course of business), or (iii)
acquire any servicing rights, or sell or otherwise transfer any loan where PFG or any of its subsidiaries retains any servicing
rights. Any loan in excess of the foregoing limits shall require the prior written approval of the President or Chief Credit Officer
of SmartBank;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">make any investment or commitment to invest in real estate or in any real estate development project
other than by way of foreclosure or deed in lieu thereof or make any investment or commitment to develop, or otherwise take any
actions to develop any real estate owned by PFG or its subsidiaries;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">except as required by applicable law or in the ordinary course of business, make or change any material
tax election, file any material amended tax return, enter into any material closing agreement with respect to taxes, settle or
compromise any material liability with respect to taxes, agree to any material adjustment of any tax attribute, file any&nbsp;claim&nbsp;for
a&nbsp;material&nbsp;refund of&nbsp;taxes, or consent to any extension or waiver of the limitation period applicable to any material
tax claim or assessment;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">commit any act or omission which constitutes a material breach or default by PFG or any of its subsidiaries
under any agreement with any governmental authority or under any PFG material contract, material lease or other material agreement
or material license to which PFG or any of its subsidiaries is a party or by which any of them or their respective properties are
bound or under which any of them or their respective assets, business, or operations receives benefits;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">foreclose on or take a deed or title to any real estate other than single-family residential properties
without first conducting a Phase I environmental site assessment of the property in accordance with specified standards, or foreclose
on or take a deed or title to any real estate other than single-family residential properties if such environmental assessment
indicates the presence or likely presence of any hazardous substances under conditions that indicate an existing release, a past
release, or a material threat of a release of any hazardous substances into structures on the property or into the ground, ground
water, or surface water of the property;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">take any action or knowingly fail to take any action not contemplated by the merger agreement that
is intended or is reasonably likely to (i) prevent, delay or impair PFG&rsquo;s ability to consummate the merger or the transactions
contemplated by the merger agreement, or (ii) agree to take, make any commitment to take, or adopt any resolutions of its board
of directors in support of any actions prohibited by the merger agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">directly or indirectly repurchase, redeem or otherwise acquire any shares of PFG capital stock or
any securities convertible into or exercisable for any shares of PFG capital stock, except that PFG may repurchase, redeem or otherwise
acquire shares of PFG common stock in connection with the payment of the withholding taxes owed by a holder of a PFG restricted
share upon the vesting of a PFG restricted share;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">except as required by law, file any application or make any contract or commitment for the opening,
relocation or closing of any, or open, relocate or close any, branch office, loan production or servicing facility or automated
banking facility, except for any change that may be requested by SmartFinancial;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">merge or consolidate itself or any of its subsidiaries with any other person, or restructure, reorganize
or completely or partially liquidate or dissolve it or any of its subsidiaries; or</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">(i) enter into any contract with respect to, or otherwise agree or commit to do, or adopt any resolutions
of its board of directors or similar governing body in support of, any of the foregoing or (ii) take any action that is intended
or expected to result in any of its representations and warranties set forth in the merger agreement being or becoming untrue in
any material respect at any time prior to the effective time, or in any of the conditions to the merger not being satisfied or
in a violation of any provision of the merger agreement, except, in every case, as may be required by applicable law.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in">PFG has also agreed to cause
to be delivered to SmartFinancial resignations of all the directors of PFG and its subsidiaries to be effective as of the effective
time of the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: left; text-indent: 0in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="regulatorymatters"></A>Regulatory Matters</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial and PFG agreed to use their respective commercially
reasonable efforts to cause the registration statement to be declared effective by the SEC as promptly as reasonably practicable
after filing. SmartFinancial has also agreed to use its commercially reasonable efforts to obtain all necessary state securities
law or &ldquo;blue sky&rdquo; permits and approvals required to carry out the transactions contemplated by the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial and PFG and their respective subsidiaries have
agreed to cooperate with each other and use their reasonable best efforts to prepare and file all necessary documentation, to effect
all filings, to obtain as promptly as practicable all permits, consents, approvals and authorizations of all third parties and
regulatory and governmental entities that are necessary to consummate the transactions contemplated by the merger agreement, and
to comply with the terms and conditions of all such permits, consents, approvals and authorizations; <I>provided, however</I>,
that nothing contained in the merger agreement will require SmartFinancial or any of its subsidiaries or PFG or any of its subsidiaries
to take any action, or commit to take any action, or agree to any condition or restriction, in connection with obtaining the foregoing
permits, consents, approvals and authorizations of any governmental authority that would reasonably be likely to have a material
and adverse effect (measured on a scale relative to PFG) on the condition (financial or otherwise), results of operations, liquidity,
assets or deposit liabilities, properties or business of SmartFinancial, PFG, the surviving entity or the surviving bank, after
giving effect to the merger (a &ldquo;burdensome condition&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial and PFG will furnish each other and each other&rsquo;s
counsel with all information as may be necessary or advisable in connection with any application, petition or any other statement
or application made by or on behalf of SmartFinancial or PFG to any governmental authority in connection with the transactions
contemplated by the merger agreement. Each party has the right to review and approve in advance all characterizations of the information
relating to such party and any of its subsidiaries that appear in any filing with a governmental authority made in connection with
the transactions contemplated by the merger agreement. In addition, SmartFinancial and PFG agreed to provide to the other party
for review a copy of each filing with a governmental authority made in connection with the transactions contemplated by the merger
agreement prior to its filing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="nasdaqlisting"></A>NASDAQ Listing</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial has agreed to use its commercially reasonable
efforts to cause the shares of its common stock to be issued in connection with the merger to be approved for listing on NASDAQ,
subject to official notice of issuance, prior to the effective time of the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="employeematters"></A>Employee Matters</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>General</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Following the effective time of the merger, SmartFinancial must
maintain employee benefit plans and compensation opportunities for those persons who are full-time employees of PFG and its subsidiaries
on the closing date of the merger (referred to below as &ldquo;covered employees&rdquo;) that provide employee benefits which,
in the aggregate, are substantially comparable to the employee benefits and cash-based compensation opportunities that are made
available on a uniform and non-discriminatory basis to similarly situated employees of SmartFinancial or its subsidiaries (except
that no covered employee may participate in any closed or frozen plan of SmartFinancial or its subsidiaries). SmartFinancial shall
give the covered employees credit for their prior service with PFG and its subsidiaries for purposes of eligibility and vesting
under any employee benefit plan maintained by SmartFinancial in which covered employees may be eligible to participate.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">With respect to any SmartFinancial health, dental, vision or
other welfare plan in which any covered employee is eligible to participate, for the plan year in which the covered employee is
first eligible to participate, SmartFinancial or its applicable subsidiary must use its commercially reasonable efforts to&nbsp;(i)
cause any pre-existing condition limitations or eligibility waiting periods under such plan to be waived with respect to the covered
employee and his or her covered dependents to the extent the condition was, or would have been, covered under the PFG benefit plan
in which the covered employee participated immediately prior to the effective time of the merger and (2) recognize any health,
dental, vision or other welfare expenses incurred by such covered employee and his or her covered dependents in the year that includes
the closing date (or, if later, the year in which such covered employee is first eligible to participate) for purposes of any applicable
copayment, deductibles and annual out of pocket expense requirements under any such health, dental, vision or other welfare plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Employees of PFG (other than those who will enter into termination
agreements with SmartFinancial and/or SmartBank in connection with the transaction) who (i) become employees of SmartFinancial
or SmartBank at the effective time of the merger and (ii) is terminated within one year following the effective time of the merger
(other than for cause, death, disability, normal retirement or voluntarily resignation) will be entitled to receive&nbsp; severance
compensation based on the number of years of service with PFG and the employees&rsquo; weekly rate of pay.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prior to the effective time of the merger, PFG will effectuate
the termination or discontinuation of certain benefits plans maintained by PFG, as requested by SmartFinancial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="indemnificationand"></A>Indemnification and Directors&rsquo; and Officers&rsquo;
Insurance</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger agreement provide that, for a period of six years
after the effective time of the merger, SmartFinancial shall indemnify and hold harmless the present and former directors, officers,
employees and agents of PFG and its subsidiaries against all costs or expenses, judgments, fines, losses, claims, damages or other
liabilities incurred in connection with any claim, action, suit, proceeding or investigation arising out of actions or omissions
of such persons in the course of performing their duties for PFG or its subsidiaries occurring at or before the effective time
of the merger (including the transactions contemplated by the merger agreement), to the same extent as such persons have the right
to be indemnified pursuant to the organizational documents of PFG in effect as of the date of the merger agreement to the extent
permitted by applicable law. SmartFinancial will also advance expenses in connection with such indemnification.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For a period of six years after the effective time of the merger,
SmartFinancial will provide directors&rsquo; and officers&rsquo; liability insurance that serves to reimburse the present and former
officers and directors of PFG or its subsidiaries with respect to claims against them arising from facts or events occurring before
the effective time of the merger (including the transactions contemplated by the merger agreement). The directors&rsquo; and officers&rsquo;
liability insurance will contain at least the same coverage and amounts, and contain terms and conditions no less advantageous
to the indemnified person as the coverage currently provided by PFG; <I>provided, however</I>, that: (i)&nbsp;if SmartFinancial
is unable to obtain or maintain the directors&rsquo; and officers&rsquo; liability insurance, then SmartFinancial will provide
as much comparable insurance as is reasonably available, and (ii)&nbsp;officers and directors of PFG or its subsidiaries may be
required to make application and provide customary representations and warranties to the carrier of the insurance. SmartFinancial
will not be required to expend for such tail insurance a premium amount in excess of an amount equal to 200% of the annual premiums
paid by PFG for director and officer insurance in effect as of the date of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial has agreed that if it, or any of its successors
and assigns, consolidates with or merges with any other corporation or entity where it is not the continuing or surviving corporation,
or transfers all or substantially all of its property or assets, it will make proper provision so that the successors and assigns
of SmartFinancial and its subsidiaries will assume the obligations of indemnification under the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="nosolicitation"></A>No Solicitation</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG has agreed that, from the date of the merger agreement
it will not, and will cause its subsidiaries and each of their respective officers, directors and employees not to, and will
not authorize or permit its investment bankers, financial advisors, attorneys, accountants, consultants, affiliates or other
agents of PFG or any of its subsidiaries to, directly or indirectly, (i) initiate, solicit, induce&nbsp;or&nbsp;knowingly
encourage,&nbsp;or&nbsp;take any action to facilitate the making of, any inquiry, offer&nbsp;or&nbsp;proposal which
constitutes,&nbsp;or&nbsp;could reasonably be expected to lead to, an&nbsp;acquisition proposal; (ii) participate in any
discussions or negotiations regarding any&nbsp;acquisition proposal or&nbsp;furnish,&nbsp;or&nbsp;otherwise afford
access, to any&nbsp;person&nbsp;(other than&nbsp;SmartFinancial) any information or data with respect to PFG
or&nbsp;any of its&nbsp;subsidiaries or&nbsp;otherwise relating to an&nbsp;acquisition proposal; (iii) release
any&nbsp;person&nbsp;from, waive any provisions of,&nbsp;or&nbsp;fail to enforce any confidentiality&nbsp;agreement
or&nbsp;standstill&nbsp;agreement&nbsp;to which&nbsp;PFG&nbsp;is a&nbsp;party; or (iv) enter into any&nbsp;agreement,
confidentiality agreement,&nbsp;agreement&nbsp;in principle&nbsp;or&nbsp;letter of intent with respect to
any&nbsp;acquisition proposal or&nbsp;approve&nbsp;or&nbsp;resolve to approve any&nbsp;acquisition
proposal or&nbsp;any&nbsp;agreement,&nbsp;agreement&nbsp;in principle&nbsp;or&nbsp;letter of intent relating to
an&nbsp;acquisition proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For purposes of the merger agreement, an &ldquo;acquisition
proposal&rdquo; means any inquiry, offer or proposal (other than an inquiry, offer, or proposal from SMBK), whether or not in writing,
contemplating, relating to, or that could reasonably be expected to lead to, an Acquisition Transaction, and an &ldquo;Acquisition
Transaction&rdquo; means (A) any transaction or series of transactions involving any merger, consolidation, recapitalization, share
exchange, liquidation, dissolution or similar transaction involving PFG or any of its subsidiaries; (B) any transaction pursuant
to which any third party or group acquires or would acquire (whether through sale, lease or other disposition), directly or indirectly,
a significant portion of the assets of PFG or any of its subsidiaries; (C) any issuance, sale or other disposition of (including
by way of merger, consolidation, share exchange or any similar transaction) securities (or options, rights or warrants to purchase
or securities convertible into, such securities) representing 20% or more of the votes attached to the outstanding securities of
PFG or any of its subsidiaries; (D) any tender offer or exchange offer that, if consummated, would result in any third party or
group beneficially owning 20% or more of any class of equity securities of PFG or any of its subsidiaries; or (E) any transaction
which is similar in form, substance or purpose to any of the foregoing transactions, or any combination of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A &ldquo;superior proposal&rdquo; means a bona fide, unsolicited
acquisition proposal (i)&nbsp;that if consummated would result in a third party (or in the case of a direct merger between such
third party and PFG or any of its subsidiaries, the shareholders of such third party) acquiring, directly or indirectly, more than
50% of the outstanding PFG common stock or more than 50% of the assets of PFG and its subsidiaries, taken as a whole, for consideration
consisting of cash and/or securities and (ii)&nbsp;that the board of directors of PFG reasonably determines in good faith, after
consultation with its outside financial advisor and outside legal counsel, (a) is reasonably capable of being completed, taking
into account all financial, legal, regulatory and other aspects of such proposal, including all conditions contained therein and
the person making such acquisition proposal, and (b) taking into account any changes to the merger agreement proposed by SmartFinancial
in response to such acquisition proposal, and all financial, legal, regulatory and other aspects of such proposal, including all
conditions contained therein and the person making such acquisition proposal, such proposal is more favorable to the shareholders
of PFG from a financial point of view than the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">However, at any time prior to PFG special meeting, PFG may take
any of the actions described in the first paragraph of this &ldquo;&ndash; No Solicitation&rdquo; section if, but only if (i) PFG
receives a bona fide unsolicited acquisition proposal that did not result from a breach of the first paragraph of this section,
and (ii) the PFG board of directors reasonably determines in good faith, after consultation with and having considered the advice
of its outside financial advisor and outside legal counsel, that (A) such acquisition proposal constitutes or is reasonably likely
to lead to a superior proposal and (B) the failure to take such actions more likely than not would cause it to violate its fiduciary
duties to&nbsp;PFG&rsquo;s shareholders under applicable&nbsp;law, (iii) PFG has provided SmartFinancial with at least three business
days prior notice of such determination, and (iv) prior to furnishing or affording access to any information or data with respect
to PFG or any of its subsidiaries or otherwise relating to an acquisition proposal, PFG receives from such person a confidentiality
agreement with terms no less favorable to PFG than those contained in the confidentiality agreement with SmartFinancial. PFG must
promptly provide to SmartFinancial any non-public information regarding PFG or any of its subsidiaries provided to any other person
which was not previously provided to SmartFinancial, and such additional information must be provided no later than the date of
provision of such information to such other party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG must promptly (and in any event within (1) Business Day)
notify SmartFinancial in writing if any proposals or offers are received by, any information is requested from, or any negotiations
or discussions are sought to be initiated or continued with, PFG or its representatives, in each case in connection with any acquisition
proposal, and such notice must indicate the name of the person initiating such discussions or negotiations or making such proposal,
offer or information request and the material terms and conditions of any proposals or offers (and, in the case of written materials
relating to such proposal, offer, information request, negotiations or discussion, providing copies of such materials (including
e-mails or other electronic communications), except to the extent that such materials constitute confidential information of the
party making such offer or proposal under an effective confidentiality agreement). PFG has agreed that it will keep SmartFinancial
informed, on a reasonably current basis, of the status and terms of any such proposal, offer, information request, negotiations
or discussions (including any amendments or modifications to such proposal, offer or request).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Except as provided below, neither the board of directors of
PFG nor any committee thereof shall (i)&nbsp;withdraw, qualify, amend or modify, or propose to withdraw, qualify, amend or modify,
in a manner adverse to SmartFinancial in connection with the transactions contemplated by the merger agreement (including the merger),
the PFG recommendation, fail to reaffirm the PFG recommendation within three business days following a request by SmartFinancial,
or make any statement, filing or release, in connection with the PFG special meeting or otherwise, inconsistent with the PFG recommendation
(it being understood that taking a neutral position or no position with respect to an acquisition proposal will be considered an
adverse modification of the PFG recommendation); (ii) approve or recommend, or propose to approve or recommend, any acquisition
proposal; or (iii) enter into (or cause PFG or any of its subsidiaries to enter into) any letter of intent, agreement in principle,
acquisition agreement or other agreement (a)&nbsp;related to any acquisition transaction (other than a confidentiality agreement
entered into in accordance with the foregoing) or (b)&nbsp;requiring PFG to abandon, terminate or fail to consummate the merger
or any other transaction contemplated by the merger agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Notwithstanding the foregoing, prior to the date of the PFG
special meeting, the board of directors of PFG may withdraw, qualify, amend or modify the PFG recommendation (&ldquo;PFG subsequent
determination&rdquo;) after the fifth business day following SmartFinancial&rsquo;s receipt of a notice (the &ldquo;notice of superior
proposal&rdquo;) from PFG advising SmartFinancial that the board of directors of PFG has decided that a bona fide unsolicited written
acquisition proposal that it received (that did not result from a breach of the merger agreement) constitutes a superior proposal
if, but only if, (i)&nbsp;the board of directors of PFG has determined in good faith, after consultation with and having considered
the advice of outside legal counsel and its financial advisor, that the failure to take such actions more likely than not would
cause it to violate its fiduciary duties to PFG&rsquo;s shareholders under applicable law, (ii) during the five business day period
after receipt of the notice of superior proposal by SmartFinancial (the &ldquo;notice period&rdquo;), PFG and the board of directors
of PFG shall have cooperated and negotiated in good faith with SmartFinancial to make such adjustments, modifications or amendments
to the terms and conditions of the merger agreement as would enable PFG to proceed with the PFG recommendation in favor of the
merger with SmartFinancial without a PFG subsequent determination;&nbsp;<I>provided, however</I>, that SmartFinancial does not
have any obligation to propose any adjustments, modifications or amendments to the terms and conditions of the merger agreement
and (iii) at the end of the notice period, after taking into account any such adjusted, modified or amended terms as may have been
proposed by SmartFinancial since its receipt of such notice of superior proposal, the board of directors of PFG has again in good
faith made the determination that such acquisition proposal constitutes a superior proposal. In the event of any material revisions
to the superior proposal, PFG is required to deliver a new notice of superior proposal to SmartFinancial and again comply with
the foregoing requirements, except that the notice period will be reduced to three business days.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">Notwithstanding
any PFG subsequent determination, the merger agreement will be submitted to PFG&rsquo;s shareholders at the PFG special meeting
for the purpose of voting on the approval of the merger proposal and nothing contained in the merger agreement will be deemed to
relieve PFG of such obligation;&nbsp;<I>provided</I>,&nbsp;<I>however</I>, that if the board of directors of PFG makes a PFG subsequent
determination with respect to a superior proposal, then the board of directors of PFG may recommend approval of such superior proposal
by the shareholders of PFG and may submit the merger proposal to PFG&rsquo;s shareholders without recommendation, in which event
the board of directors of PFG will communicate the basis for its recommendation of such superior proposal and the basis for its
lack of a recommendation with respect to the merger proposal to PFG&rsquo;s shareholders in an appropriate amendment or supplement
to this proxy statement/prospectus</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="conditionstocompletion"></A>Conditions to Completion of the Merger</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The completion of the merger depends on a number of conditions
being satisfied or, where permitted, waived, including:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the required approval by the shareholders of PFG;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the receipt of all regulatory approvals, or expiration or termination of all statutory waiting periods
in respect thereof, required to consummate the transactions contemplated by the merger agreement, without any burdensome conditions
(as such term is defined in the merger agreement);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the absence of any judgment, order, injunction or decree issued by any court or agency of competent
jurisdiction or other law preventing or making illegal the consummation of the merger, the bank merger or the other transactions
contemplated by the merger agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the effectiveness of the registration statement on Form S-4, of which this proxy statement/prospectus
is a part, under the Securities Act;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the receipt by SmartFinancial and PFG from their respective tax counsel of a U.S. federal income tax
opinion, dated the closing date of the merger, that the merger will qualify as a &ldquo;reorganization&rdquo; within the meaning
of Section 368(a) of the Code;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the accuracy, subject to varying degrees of materiality, of SmartFinancial&rsquo;s and PFG&rsquo;s
respective representations and warranties in the merger agreement on the date of the merger agreement and as of the effective time
of the merger (or such other date specified in the merger agreement);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">performance in all material respects by SmartFinancial and PFG of their respective obligations under
the merger agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the Plan of Bank Merger is executed and delivered;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">less than 7.5% of the outstanding shares of PFG common stock validly exercise, or remain entitled
to exercise, their dissenters&rsquo; rights;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the disposition of PFG&rsquo;s holdings of the common stock of Upper Cumberland Bancshares, Inc. (which
was completed on November 19, 2019);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the dissolution of certain PFG subsidiaries that hold real property (The Cove at Little Island, LLC,
Horse Creek Holdings LLC, Progressive Funding, Inc., and Cumberland Mountain Preserve/East First Street, LLC); and the transfer
of any real property held by such entities to Progressive Savings Bank;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the shares of SmartFinancial common stock to be issued in connection with the transactions contemplated
by this Agreement shall be approved for listing on the NASDAQ;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the entry of certain employees of PFG and its subsidiaries into new employment arrangements;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">the absence of any event which has resulted in a material adverse effect on the other party, and the
absence of any condition, event, fact, circumstance or other occurrence that is reasonably expected to have a material adverse
effect on the other party.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">No assurance is given as to when, or if, the conditions to the
merger will be satisfied or waived, or that the merger will be completed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="termination"></A>Termination</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The merger agreement may be terminated at any time prior to
the effective time of the merger:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">by mutual written consent of SmartFinancial and PFG;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">by SmartFinancial or PFG if any regulatory approval required for consummation of the transactions
contemplated by the merger agreement has been denied by final non-appealable action by the relevant governmental authority or any
application for such regulatory approval shall have been permanently withdrawn at the request of a governmental authority;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">by SmartFinancial or PFG if the approval of the shareholders of PFG is not obtained;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">by SmartFinancial or PFG in the event of a material breach by the other party of any representation,
warranty or covenant contained in the merger agreement and such breach is not cured prior to the earlier of thirty days of notice
of the breach or two business days prior to the expiration date of the merger agreement and the terminating party is not itself
in material breach;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">by SmartFinancial or PFG if the merger is not consummated on or before June 30, 2020, subject to automatic
extension to September 30, 2020 if the only outstanding condition to closing is the receipt of regulatory approvals, which we refer
to as the expiration date;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">by SmartFinancial if PFG materially breaches its covenant not to solicit other offers;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">by SmartFinancial if PFG withdraws, qualifies, amends, modifies or withholds its recommendation to
its shareholders to approve the merger and the merger agreement, or makes any statement, filing or release, in connection with
the shareholder meeting or otherwise, inconsistent with its recommendation (it being understood that taking a neutral position
or no position with respect to an acquisition proposal shall be considered an adverse modification of its recommendation);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">by SmartFinancial if PFG fails to properly call, give notice of, and commence a meeting of shareholders
to vote on the merger;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">by SmartFinancial if PFG approves or recommends an acquisition proposal;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">by SmartFinancial if PFG fails to publicly recommend against a publicly announced acquisition proposal
within five business days of such proposal being announced or fails to publicly reconfirm its recommendation to its shareholders
within three business days of being requested to do so by SmartFinancial;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">by PFG if PFG&rsquo;s board of directors determines to enter into a definitive agreement with respect
to a superior proposal in accordance with the terms of the merger agreement, but only if PFG pays to SmartFinancial the $2,000,000
termination fee.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="terminationfee"></A>Termination Fee</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG will pay SmartFinancial a termination fee equal to $2,000,000
in the event of any of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">SmartFinancial terminates the merger agreement because: (i) PFG materially breached its covenant not
to solicit other offers; (ii) PFG withdrew, qualified, amended, modified or withheld its recommendation to its shareholders to
approve the merger and the merger agreement to its shareholders, or made any statement, filing or release, in connection with the
shareholder meeting or otherwise, inconsistent with its recommendation (it being understood that taking a neutral position or no
position with respect to an acquisition proposal shall be considered an adverse modification of its recommendation); (iii) PFG
failed to properly call, give notice of, and commence a meeting of shareholders to vote on the merger; (iv) PFG approved or recommended
an acquisition proposal; (v) PFG failed to publicly recommend against a publicly announced acquisition proposal within five (5)&nbsp;business
days of such proposal being announced or failed to publicly reconfirm its recommendation to its shareholders within (3)&nbsp;business
days of being requested to do so by SmartFinancial; or (vi) PFG resolved or otherwise determined to take, or announced an intention
to take, any of the foregoing actions;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">in the event that after&nbsp;the date of the merger agreement and prior to the termination of the&nbsp;merger
agreement, an&nbsp;acquisition proposal&nbsp;was made known to senior management of&nbsp;PFG or&nbsp;has been made directly to
PFG&rsquo;s shareholders generally&nbsp;or&nbsp;an acquisition proposal shall have been publicly announced (and not withdrawn),
and (i) the merger agreement is terminated by (A) SmartFinancial or PFG because the requisite PFG shareholder approval was not
obtained or (B) SmartFinancial because of PFG&rsquo;s material breach of its representations and warranties or covenants in the
merger agreement, and (ii) prior to the date within 12 months of such termination,&nbsp;PFG&nbsp;enters into any&nbsp;agreement
or&nbsp;consummates a transaction with respect to an&nbsp;acquisition proposal&nbsp;(whether&nbsp;or&nbsp;not it&rsquo;s the same&nbsp;acquisition
proposal&nbsp;as that referred to above);</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD STYLE="text-align: left">PFG terminates the merger agreement at any time before the receipt of PFG shareholder approval for
the purpose of entering into an acquisition agreement with respect to a superior proposal in compliance with the terms of the merger
agreement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="effectoftermination"></A>Effect of Termination</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">A termination of the merger agreement will not relieve a breaching
party from liability for any breach of any covenant, agreement, representation or warranty of the merger agreement giving rise
to such termination or resulting from fraud or any willful and material breach. Notwithstanding the foregoing, the parties have
agreed that if PFG pays or causes to be paid to SmartFinancial the termination fee in accordance with the merger agreement, PFG
(or any successor in interest of PFG) will not have any further obligations or liabilities to SmartFinancial with respect to the
merger agreement or the transactions contemplated by it.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="amendment"></A>Amendment; Waiver</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Prior to the effective time of the merger and to the extent
permitted by applicable law, any provision of the merger agreement may be (a) waived by the party benefitted by the provision,
provided the waiver is in writing and signed by such party, or (b) amended or modified at any time, by an agreement in writing
between the parties, except that after the PFG special meeting no amendment may be made which by law requires further approval
by the shareholders of SmartFinancial or PFG without obtaining such approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="expenses"></A>Expenses</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">All expenses incurred in connection with the merger, the bank
merger, the merger agreement and other transactions contemplated thereby, including fees and expenses of financial consultants,
accountants and counsel, will be paid by the party incurring the expenses. Nothing in the merger agreement limits either party&rsquo;s
rights to recover any liabilities or damages arising out of the other party&rsquo;s willful breach of any provision of the merger
agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="ancillaryagreements"></A>ANCILLARY AGREEMENTS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="votingagreements"></A>Voting Agreements&#9;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with, and as a condition to, entering into the
merger agreement, each of the directors of PFG and Progressive Bank who hold shares of PFG common stock entered into a voting agreement
with SmartFinancial. The following summary of the voting agreements is subject to, and qualified in its entirety by reference to,
the form voting agreement attached as Exhibit A to the merger agreement attached as <U>Annex A</U> to this document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the voting agreements, each party to a voting agreement
has agreed to appear at the PFG special meeting (in person or by proxy) and to vote his or her shares of PFG common stock:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>in favor of adoption and approval of the merger agreement and the approval of the merger and the other transactions contemplated
by the merger agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>in favor of any proposal to adjourn or postpone such meeting, if necessary, to solicit additional proxies to approve the merger
agreement and the merger;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>against any action or agreement that would result in a breach of any covenant, representation or warranty or any other obligation
or agreement of PFG contained in the merger agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>against any acquisition proposal other than the merger; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>against any other action, agreement or transaction that is intended, or could reasonably be expected, to impede, interfere
or be inconsistent with, delay, postpone, discourage or materially and adversely affect consummation of the transactions contemplated
by the merger agreement.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, the voting agreements provide that each shareholder
party to a voting agreement will not:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>directly or indirectly sell, transfer, pledge, assign or otherwise dispose of, or enter into any contract, option, commitment
or other arrangement or understanding with respect to the sale, transfer, pledge, assignment or other disposition of, any of such
shareholder&rsquo;s shares of PFG common stock; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>(i) initiate, solicit, induce or knowingly encourage, or take any action to facilitate the making of, any inquiry, offer or
proposal which constitutes, or could reasonably be expected to lead to, an acquisition proposal, (ii) participate in any discussions
or negotiations regarding any acquisition proposal or furnish, or otherwise afford access, to any person (other than SmartFinancial)
any information or data with respect to PFG or any of its subsidiaries or otherwise relating to an acquisition proposal, (iii)
enter into any agreement, agreement in principle or letter of intent with respect to any acquisition proposal or approve or resolve
to approve any acquisition proposal or any agreement, agreement in principle or letter of intent relating to an acquisition proposal,
(iv) solicit proxies with respect to an acquisition proposal or otherwise encourage or assist any party in taking or planning any
action that would compete with, restrain or otherwise serve to interfere with or inhibit the timely consummation of the merger
in accordance with the terms of the merger agreement, or (v) initiate a shareholders&rsquo; vote or action by consent of PFG&rsquo;s
shareholders with respect to an acquisition proposal.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The voting agreements will automatically terminate upon the
earlier of (i) the effective date of the merger, (ii) the amendment of the merger agreement in any manner that materially and adversely
affects any of the shareholder&rsquo;s rights set forth in the merger agreement, (iii) termination of the merger agreement, or
(iv) two years from the date the voting agreements are executed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of the record date, shareholders who are party to the
voting agreements beneficially owned and were entitled to vote an aggregate of approximately 12,177.161 shares of PFG common stock,
which represented approximately 58.8% of the shares of PFG common stock outstanding on that date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="noncompetitionandnon"></A>Non-Competition and Non-Disclosure Agreements</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition to the voting agreements, as a condition to SmartFinancial
entering into the merger agreement, each of the directors of PFG and Progressive Bank entered into a non-competition and non-disclosure
agreements with SmartFinancial. The following summary of the non-competition and non-disclosure agreements is subject to, and qualified
in its entirety by reference to, the form of non-competition and non-disclosure agreement attached as Exhibit C to the merger agreement
attached as <U>Annex A</U> to this document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Each party to a non-competition and non-disclosure agreement
has agreed to, among other things:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>from and after the effective time of the merger, not disclose or use any confidential information or trade secrets of PFG for
any purpose for so long as such information remains confidential information or a trade secret, except as required by law; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>for a period of two years following the closing the merger:</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>not solicit or attempt to solicit any customers of SmartFinancial, SmartBank, PFG or Progressive Bank, including actively sought
prospective customers of Progressive Bank as of the effective time of the merger; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>on such director&rsquo;s own behalf or on behalf of others, not solicit or recruit or attempt to solicit or recruit any employee
(full-time or temporary) of SmartFinancial, SmartBank, PFG or Progressive Bank;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.25in"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>directly on the director&rsquo;s own behalf or on behalf any other person, not act as a director, manager, officer, or employee
of any banking business that is the same or essentially the same as the banking business conducted by SmartFinancial, SmartBank
or PFG or Progressive Bank and that has a banking office located within any county in Tennessee where Progressive Bank operates
a banking office as of the closing of the merger and each county contiguous to each of such counties (except that one director,
Gary Hicks, is not bound by this non-competition covenant).</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The restrictions in the non-competition and non-disclosure agreements
will automatically terminate upon the earlier of (i) the termination of the merger agreement, (ii) two years after the effective
date of the merger, or (iii) upon a change in control of SmartFinancial.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="claimsletters"></A>Claims Letters</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">At the time of the execution of the merger agreement, and effective
upon the closing of the merger, each director of PFG and Progressive Bank executed a claims letter with SmartFinancial. The following
summary of the claims letters is subject to, and qualified in its entirety by reference to, the claims letter attached as Exhibit
D to the merger agreement attached as <U>Annex A</U> to this document.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="font-family: Times New Roman, Times, Serif">Pursuant
to the claims letter, each director of PFG and Progressive Bank released and discharged, effective upon the consummation of the
merger, PFG and its subsidiaries, their respective directors and officers (in their capacities as such), and their respective successors
and assigns (including SmartFinancial and SmartBank), of and from any and all liabilities or claims that such director has or claims
to have, or previously had or claimed to have, solely in his or her capacity as an officer, director or employee of PFG or any
of its subsidiaries, as of the effective time of the merger. The release does not apply to (i) compensation for services that has
accrued but not yet been paid in the ordinary course of business consistent with past practice; (ii) claims that the director may
have in any capacity other than as an officer, director or employee of PFG or any of its subsidiaries, such as claims as a borrower
under loan commitments and agreements, claims as a depositor under any deposit account with or as the holder of any certificate
of deposit issued by Progressive Bank, claims on account of any services rendered by the director in a capacity other than as an
officer, director or employee of PFG or any of its subsidiaries, claims in his or her capacity of a shareholder of PFG and claims
as a holder of any check issued by any other depositor of Progressive Bank; (iii) any claims that the director may have under the
merger agreement; or (iv) any right to indemnification that the director may have under the PFG Charter or PFG Bylaws or similar
documents or any of its subsidiaries, Tennessee law or the merger agreement</FONT>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="thecompanies"></A>THE COMPANIES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="smartfinancial"></A>SmartFinancial, Inc.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Overview</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial was incorporated on September 19, 1983, under
the laws of the State of Tennessee. SmartFinancial is a bank holding company registered under the Bank Holding Company Act, as
amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">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&rsquo;s ability to serve its customers&rsquo; 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.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Mergers</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>SmartFinancial and Cornerstone Merger</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In 2015, SmartFinancial operated under the name Cornerstone
Bancshares, Inc., and it merged with legacy SmartFinancial, Inc. (which we refer to as &ldquo;Legacy SmartFinancial&rdquo;) (which
merger we refer to the merger as the &ldquo;2015 merger&rdquo;). Cornerstone Bancshares was the survivor of the 2015 merger, and
immediately following that transaction, the company changed its name to &ldquo;SmartFinancial, Inc.&rdquo; and relocated its headquarters
to Knoxville, Tennessee. Following the 2015 merger, Cornerstone Community Bank merged with and into SmartBank, with SmartBank surviving
the merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Capstone Merger</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On May 22, 2017, SmartFinancial&rsquo;s shareholders approved
a merger with Capstone Bancshares, Inc. (which we refer to as &ldquo;Capstone&rdquo;), the one bank holding company of Capstone
Bank, which was consummated on November 1, 2017 (which merger we refer to as the &ldquo;Capstone merger&rdquo;). In connection
with the Capstone merger, Capstone shareholders received either stock, cash, or a combination of stock and cash. After the Capstone
merger, shareholders of SmartFinancial owned approximately 74 percent of the outstanding common stock of the combined entity on
a fully diluted basis. The assets and liabilities of Capstone as of the effective date of the merger were recorded at their respective
estimated fair values and combined with those of SmartFinancial. The excess of the purchase price over the net estimated fair values
of the acquired assets and liabilities was allocated to identifiable intangible assets with the remaining excess allocated to goodwill,
which was approximately $38 million. As a result of the Capstone merger, SmartFinancial&rsquo;s assets increased approximately
$536 million and liabilities increased approximately $466 million.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Tennessee Bancshares Merger</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On May 1, 2018, SmartFinancial consummated its merger with Tennessee
Bancshares (which merger we refer to as the &ldquo;Tennessee Bancshares merger&rdquo;), pursuant to which Tennessee Bancshares
merged with and into SmartFinancial, with SmartFinancial continuing as the surviving corporation. Immediately following the Tennessee
Bancshares merger, Southern Community Bank, the wholly owned subsidiary of Tennessee Bancshares, merged with and into SmartBank,
with SmartBank continuing as the surviving banking corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the Tennessee Bancshares merger, each outstanding
share of Tennessee Bancshares common stock was converted into and cancelled in exchange for 0.8065 shares of SmartFinancial common
stock. SmartFinancial issued approximately 1,459,186 shares of SmartFinancial common stock as consideration for the Tennessee Bancshares
merger. After the merger, shareholders of SmartFinancial owned approximately 88 percent of the outstanding common stock of the
combined entity on a fully diluted basis. The assets and liabilities of Tennessee Bancshares as of the effective date of the merger
were recorded at their respective estimated fair values and combined with those of Smart Financial. The excess of the purchase
price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable intangible assets
with the remaining excess allocated to goodwill, which was approximately $8 million. As a result of the merger, SmartFinancial&rsquo;s
assets increased approximately $237 million and liabilities increased approximately $216 million. SmartFinancial is a community-focused
financial institution that offers a full range of financial services to individuals, businesses, municipal entities, and nonprofit
organizations in the communities that it serves. These services include consumer and commercial loans, deposit accounts, trust
services, safe deposit services and brokerage services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B><I>Foothills Bancorp Merger</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">On November 1, 2018, SmartFinancial consummated its merger with
Foothills Bancorp, Inc. (which merger we refer to as the &ldquo;Foothills Bancorp Merger&rdquo;), pursuant to which Foothills Bancorp,
Inc. merged with and into SmartFinancial, with SmartFinancial continuing as the surviving corporation. Immediately following the
Foothills Bancorp merger, Foothills Bank &amp; Trust, the wholly owned subsidiary of Foothills Bancorp, merged with and into SmartBank,
with SmartBank continuing as the surviving banking corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In connection with the Foothills Bancorp merger, each share
of Foothills Bancorp, Inc. common stock outstanding immediately prior to the merger was converted into the right to receive $1.75
in cash and 0.666 share of SmartFinancial common stock. After the Foothills Bancorp merger, shareholders of SmartFinancial owned
approximately 91 percent of the outstanding common stock of the combined entity on a fully diluted basis while the previous Foothills
Bancorp shareholders owned approximately 9 percent. The assets and liabilities of Foothills Bancorp, as of the effective date of
the Foothills Bancorp merger, were recorded at their respective estimated fair values and combined with those of the Company. The
excess of the purchase price over the net estimated fair values of the acquired assets and liabilities was allocated to identifiable
intangible assets with the remaining excess allocated to goodwill, which was approximately $7.5 million. As a result of the merger
the Company assets increased approximately $218 million and liabilities increased approximately $196 million</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial and its subsidiaries are subject to comprehensive
regulation, examination and supervision by the Federal Reserve Board and the TDFI, and are subject to numerous laws and regulations
relating to their operations, including, among other things, permissible activities, capital adequacy, reserve requirements, standards
for safety and soundness, internal controls, consumer protection, anti-money laundering, and privacy and data security.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s headquarters are located at 5401 Kingston
Pike, Suite 600, Knoxville, Tennessee 37919 and its telephone number is (865) 437-5700. SmartFinancial&rsquo;s website can be found
at <I>www.smartfinancialinc.com.</I> The contents of SmartFinancial&rsquo;s website are not incorporated into this proxy statement/prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For more information about SmartFinancial&rsquo;s business,
see &ldquo;Where You Can Find More Information&rdquo; below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0"><A NAME="progressivefinancial"></A>Progressive Financial Group Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Progressive Financial Group Inc. is a business corporation incorporated
on May 9, 2016 under the laws of the State of Tennessee for the purpose of acquiring the Progressive Savings Bank by means of a
share exchange (completed on October 17, 2016), and becoming a registered bank holding company under the Federal Reserve Act. In
2016, PFG also acquired 23.3% of another bank holding company, Upper Cumberland Bancshares, Inc., which owns two banks, People's
Bank and Trust Company of Pickett County, Byrdstown, Tennessee, and People's Bank and Trust Company of Clinton County, Albany,
Kentucky (these shares were redeemed by Upper Cumberland Bancshares, Inc. on November 19, 2019). The activities of PFG are subject
to the supervision of the Federal Reserve Board and the TDFI.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Progressive Savings Bank (&ldquo;Progressive Bank&rdquo;) is
a state bank chartered in Tennessee. Progressive Bank conducts a full service commercial banking business from its main office
in Jamestown, Fentress County, Tennessee. Among Progressive Bank's business services are lending, leasing checking accounts, certificates
of deposit, and depository services. These services are performed for individuals, business enterprises, other banks and financial
institutions and nonprofit corporations. All of the Progressive Bank&rsquo;s products and services are directly or indirectly related
to the business of community banking, and all activity is reported as one segment of operations. Progressive Bank is not a member
of the Federal Reserve System. Supervision and regulation is similar to that described for SmartFinancial (see &ldquo;Information
about SmartFinancial - Business of the Company; Supervision and Regulation&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of the Record Date, Progressive Bank has 116 full time employees.
Progressive Bank considers its relationship with its employees to be excellent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The main offices of Progressive Bank are presently located in
an office building on 500 N. Main Street, Jamestown, Tennessee 38556. Progressive Bank operates branch offices at the following
locations: 705 Main Street, Wartburg, Tennessee 37887; 1080 Interstate Drive, Cookeville, Tennessee 38501; 807 N. Main Street,
Crossville, Tennessee 38555; 1760 S. Main Street, Crossville, Tennessee 38555; and 4929 Peavine Road, Crossville, Tennessee 38571.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As of September 30, 2019, Progressive Bank had total assets
of approximately $296 million, total deposits of $258 million, and total shareholders&rsquo; equity of approximately $30 million.
Progressive Bank files periodic reports and other information relating to its business, financial statements and other matters
with the FDIC and the Commissioner of Financial Institutions of the State of Tennessee. Such reports and other information may
be obtained upon written request to the Federal Deposit Insurance Corporation, 3501 North Fairfax Drive, Room E-1002, Arlington,
Virginia 22226, Attention: Public Information Center, or by calling the FDIC at (877) 275-3342 or (703) 562-2200. The non-confidential
portions of Progressive Bank&rsquo;s Call Reports are also available on the internet website of the Federal Financial Institutions
Examinations Council (the &ldquo;FFIEC&rdquo;). The address of the FFIEC&rsquo;s internet website is https://cdr.ffiec.gov/public.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As is the case with banking institutions generally, Progressive
Bank&rsquo;s operations are materially and significantly influenced by general economic conditions and by related monetary and
fiscal policies of financial institution regulatory agencies, including the FRB and the FDIC. Deposit flows and costs of funds
are influenced by interest rates on competing investments and general market rates of interest. Lending activities are affected
by the demand for financing of real estate and other types of loans, which in turn is affected by the interest rates at which such
financing may be offered and other factors affecting local demand and availability of funds.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Progressive Bank&rsquo;s primary banking markets consist of
Cumberland, Fentress, Morgan, and Putnam Counties in Tennessee. The commercial banking environment is highly competitive, and Progressive
Bank encounters strong competition both in making loans and in attracting deposits. In one or more aspects of its business, Progressive
Bank competes with other commercial banks, savings and loan associations, credit unions, finance companies, mutual funds, insurance
companies, brokerage and investment banking companies, and other financial intermediaries. Many of these competitors have substantially
greater resources and lending limits, have more extensive and established branch networks, and offer certain products or services
that Progressive Bank does not currently provide. Additionally, many of Progressive Bank&rsquo;s non-bank competitors are not subject
to the same extensive federal regulations that govern federally insured banks. Recent federal and state legislation has heightened
the competitive environment in which financial institutions must conduct their business, and the potential for competition among
financial institutions of all types has increased significantly.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Progressive Bank is from time to time a party to or otherwise
involved in legal proceedings arising in the normal course of business, such as claims to enforce liens and claims relating to
the servicing or collection of real estate and other loans. As of the date of this proxy statement/prospectus, Progressive Bank
is not a party to or otherwise involved in any legal proceedings that Progressive Bank&rsquo;s management believes are material
to Progressive Bank's business, financial condition, or results of operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Other major operating subsidiaries of PFG include:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Rains Agency Inc., which in 1927, began operations
as a one-man office offering a few insurance lines. More than 90 years later, the Rains Agency is an independent agency offering
a full line of personal, commercial, property and casualty, and life and health lines to help protect the lives and interests of
its friends and customers. The agency represents companies such as AllState, Westfield, Auto-Owners, SafeCo, Cincinnati, Blue Cross/Blue
Shield, New York Life, and John Hancock, allowing its customers the ability to shop several companies with one phone call. The
Rains Agency officially joined the Progressive family in 1995.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Cravens &amp; Company Advisors, LLC (&quot;CCA&quot;)
was created and registered as an independent investment advisory firm in 2003. With experience in the fields of investments, financial,
and estate planning, insurance, tax, and law, CCA brings a depth of perspective in creating comprehensive financial solutions for
successful entrepreneurs, medical professionals, retirees, and their families. CCA officially joined the Progressive family in
March of 2007. This has allowed Progressive Bank to offer yet another valuable relationship to its clients &mdash; wealth management
services.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">Progressive Tax and Accounting LLC is a full-service
accounting firm providing accounting services, tax compliance, and business consulting. Because it is a small firm, the firm maintains
close and open relationships with each of its clients. The firm's commitment is to provide the highest quality services while retaining
a small-town atmosphere. Progressive Tax and Accounting LLC officially joined the Progressive family in November 2016.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG also has four non-operating subsidiaries -- The Cove at
Little Island, Inc., Horse Creek Holdings, LLC, Cumberland Mountain Preserve East First Street, Inc., and Progressive Funding,
Inc. &ndash; each of which has historically held only real estate assets or no assets at all. PFG is in the process of winding
up The Cove at Little Island, Inc., Horse Creek Holdings, LLC, and Cumberland Mountain Preserve East First Street, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Pursuant to the Merger Agreement, prior to the closing, PFG
will must (1) sell its holdings in Upper Cumberland Bancshares, Inc., and (2) dissolve The Cove at Little Island, Inc., Horse Creek
Holdings, LLC, and Cumberland Mountain Preserve East First Street, Inc. and transfer the real estate held by those entities to
Progressive Savings Bank. Additionally, the Merger Agreement requires PFG to cooperate with SmartFinancial in good faith regarding
the sale of Progressive Tax and Accounting LLC and CCA. On November 19, 2019, PFG completed the sale of its holdings in Upper Cumberland
Bancshares, Inc. common stock, resulting in an aggregate loss of $27,160.00.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="descriptionofcapital"></A>DESCRIPTION OF CAPITAL STOCK</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">As a result of the merger, PFG shareholders who receive shares
of SmartFinancial common stock in the merger will become shareholders of SmartFinancial. Your rights as shareholders of SmartFinancial
will be governed by Tennessee law and the SmartFinancial Charter and the SmartFinancial Bylaws. The following briefly summarizes
the material terms of SmartFinancial common stock. We urge you to read the applicable provisions of the Tennessee Business Corporation
Act, or the TBCA, the SmartFinancial Charter and SmartFinancial Bylaws and federal laws governing bank holding companies carefully
and in their entirety. Copies of SmartFinancial&rsquo;s governing documents have been filed with the SEC. To obtain copies of these
documents, see &ldquo;Where You Can Find More Information.&rdquo; SmartFinancial common stock is listed on the NASDAQ Capital Market
under the symbol &ldquo;SMBK.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Common Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Authorized.</I>&nbsp;&nbsp;&nbsp;SmartFinancial has 40,000,000
shares of authorized common stock, $1.00 par value. As of December 18, 2019, there were 14,002,658 shares of common stock outstanding
(inclusive of 34,000 unvested shares of restricted stock having voting rights).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Voting Rights; Cumulative Voting.</I>&nbsp;&nbsp;&nbsp;The
outstanding shares of SmartFinancial common stock are fully paid and nonassessable. Holders of SmartFinancial common stock are
entitled to one vote for each share held of record on all matters submitted to a vote of the shareholders. Holders of SmartFinancial
common stock do not have preemptive rights and are not entitled to cumulative voting rights with respect to the election of directors.
SmartFinancial&rsquo;s common stock is neither redeemable nor convertible into other securities, and there are no sinking fund
provisions with respect to the common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Subject to the preferences applicable to any shares of SmartFinancial
preferred stock outstanding at the time, holders of common stock are entitled to, in the event of liquidation, share pro rata in
all assets remaining after payment of liabilities.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Board of Directors</I>. The business of SmartFinancial is
controlled by a board of directors, which is elected by a non-cumulative vote of the common shareholders. Currently, the SmartFinancial
board of directors consists of 12 individuals. SmartFinancial&rsquo;s bylaws provide that the power to increase or decrease the
number of directors and to fill vacancies is vested in SmartFinancial&rsquo;s board of directors. The overall effect of this provision
may be to prevent a person or entity from seeking to acquire control of SmartFinancial through an increase in the number of directors
on the board of directors and the election of designated nominees to fill newly created vacancies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Dividends</I>. Holders of SmartFinancial common stock are
entitled to receive dividends when, as and if declared by SmartFinancial&rsquo;s board of directors out of funds legally available
for dividends. In order to pay any dividends, SmartFinancial generally must receive dividends from SmartBank. Under the Tennessee
Banking Act, SmartBank is subject to restrictions on the payment of dividends to SmartFinancial. Pursuant to these laws, SmartBank
may only make a dividend from the surplus profits arising from the business of the bank, and may not declare dividends in any calendar
year that exceeds the total of its retained net income of that year combined with its retained net income of the preceding two
years without the prior approval of the commissioner of the TDFI. Moreover, Tennessee laws regulating SmartBank requires certain
charges against and transfers from SmartBank&rsquo;s undivided profit account before undivided profits can be made available for
the payment of dividends. Furthermore, the TDFI also has the authority to prohibit the payment of dividends by SmartBank if it
determines such payment to be an unsafe and unsound banking practice. SmartFinancial has not paid dividends to its common shareholders
during the last three years. SmartFinancial&rsquo;s ability to pay dividends to shareholders in the future will depend on its earnings
and financial condition, liquidity and capital requirements, the general economic and regulatory climate, SmartFinancial&rsquo;s
ability to service any equity or debt obligations senior to SmartFinancial&rsquo;s common stock and other factors deemed relevant
by SmartFinancial&rsquo;s board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The principal source of funds from which SmartFinancial pays
cash dividends are the dividends received from its bank subsidiary, SmartBank. Consequently, dividends are dependent upon SmartBank&rsquo;s
earnings, capital needs, and regulatory policies, as well as statutory and regulatory limitations. Federal and state banking laws
and regulations restrict the amount of dividends and loans a bank may make to its parent company. Approval by SmartFinancial&rsquo;s
regulators is required if the total of all dividends declared in any calendar year exceeds the total of its net income for that
year combined with its retained net income of the preceding two years.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under certain conditions, dividends paid to SmartFinancial by
SmartBank are subject to approval by the TDFI. In addition, under the Federal Deposit Insurance Corporation Improvement Act, banks
may not pay a dividend if, after paying the dividend, the bank would be undercapitalized.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Preemptive Rights; Liquidation.</I>&nbsp;&nbsp;&nbsp;SmartFinancial
common stock does not carry any preemptive rights enabling a holder to subscribe for or receive shares of SmartFinancial common
stock. In the event of liquidation, holders of SmartFinancial common stock are entitled to share in the distribution of assets
remaining after payment of debts and expenses and after required payments to holders of SmartFinancial preferred stock, if any
such shares are outstanding. There are no redemption or sinking fund provisions applicable to SmartFinancial common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Preferred Stock</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s charter authorizes the issuance of up
to 2,000,000 shares of preferred stock, par value $1.00 per share. No shares of preferred stock are currently outstanding. The
preferred stock may be issued by vote of the board of directors without shareholder approval. The preferred stock may be issued
in one or more classes and series, with such designations, voting rights (or without voting rights), redemption, conversion or
sinking fund provisions, dividend rates or provisions, liquidation rights, and other preferences and limitations as the board of
directors may determine in the exercise of its business judgment. The preferred stock may be issued by the board of directors for
a variety of reasons.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The preferred stock could be issued in public or private transactions
in one or more (isolated or series of) issues. The shares of any issue of preferred stock could be issued with rights, including
voting, dividend, and liquidation features, superior to those of any issue or class of shares, including the shares of common stock
to be issued pursuant to the merger. The issuance of shares of the preferred stock could serve to dilute the voting rights or ownership
percentage of the holders of common stock. The issuance of preferred stock might also serve to deter or block any attempt to obtain
control of SmartFinancial or to facilitate any such attempt.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Anti-Takeover Statutes</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Control Share Acquisition Act generally provides
that, except as stated below, &ldquo;control shares&rdquo; will not have any voting rights. Control shares are shares acquired
by a person under certain circumstances which, when added to other shares owned, would give such person effective control over
one-fifth, one-third, or a majority of all voting power in the election of a Tennessee corporation&rsquo;s directors. Shares acquired
by such person that causes it to exceed each of these thresholds will be deemed to be control shares. However, voting rights may
be restored to control shares by resolution approved by the affirmative vote of the holders of a majority of the corporation&rsquo;s
voting stock, other than shares held by the owner of the control shares. If voting rights are granted to control shares which give
the holder a majority of all voting power in the election of the corporation&rsquo;s directors, then the corporation&rsquo;s other
shareholders may require the corporation to redeem their shares at fair value.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Control Share Acquisition Act is not applicable
to SmartFinancial because SmartFinancial&rsquo;s charter does not contain a specific provision &ldquo;opting in&rdquo; to the act
as is required under the act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Combination Act generally prohibits a
&ldquo;business combination&rdquo; by a Tennessee corporation with an &ldquo;interested shareholder&rdquo; within five years after
such shareholder becomes an interested shareholder. The corporation can, however, enter into a business combination within that
period if, before the interested shareholder became such, the corporation&rsquo;s board of directors approved the business combination
or the transaction in which the interested shareholder became an interested shareholder. After that five-year moratorium, the business
combination with the interested shareholder can be consummated only if it satisfies certain fair price criteria or is approved
by two-thirds of the other shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">For purposes of the Tennessee Business Combination Act, a &ldquo;business
combination&rdquo; includes mergers, share exchanges, sales and leases of assets, issuances of securities, and similar transactions.
An &ldquo;interested shareholder&rdquo; is generally any person or entity that beneficially owns 10% or more of the voting power
of any outstanding class or series of stock of the corporation. SmartFinancial&rsquo;s charter does not have special requirements
for transactions with interested parties; however, under the Tennessee Business Corporation Act, with exceptions, all mergers and
similar transactions must be approved by a majority of SmartFinancial&rsquo;s board of directors and a majority of the shares entitled
to vote.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Combination Act applies to SmartFinancial,
because neither SmartFinancial&rsquo;s charter nor its bylaws expressly provide that the company will not be subject to the act
as is required under the act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Greenmail Act applies to a Tennessee corporation,
such as SmartFinancial, that has a class of voting stock registered or traded on a national securities exchange or registered with
the SEC pursuant to Section 12(g) of the Exchange Act. Under the Tennessee Greenmail Act, SmartFinancial may not purchase any of
its shares at a price above the market value of such shares from any person who holds more than 3% of the class of securities to
be purchased if such person has held such shares for less than two years, unless the purchase has been approved by the affirmative
vote of a majority of the outstanding shares of each class of voting stock issued by SmartFinancial or SmartFinancial makes an
offer, of at least equal value per share, to all shareholders of such class.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Anti-Takeover Provisions</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>General. </I>Our charter and bylaws, as well as the Tennessee
Business Corporation Act, contain certain provisions designed to enhance the ability of our board of directors to deal with attempts
to acquire control of us. These provisions may be deemed to have an anti-takeover effect and may discourage takeover attempts which
have not been approved by the board of directors (including takeovers which certain shareholders may deem to be in their best interest).
To the extent that such takeover attempts are discouraged, temporary fluctuations in the market price of common stock resulting
from actual or rumored takeover attempts may be inhibited. These provisions also could discourage or make more difficult a merger,
tender offer or proxy contest, even though such transaction may be favorable to the interests of shareholders, and could potentially
adversely affect the market price of our common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following briefly summarizes protective provisions that
are contained in our charter and bylaws and which are provided by the Tennessee Business Corporation Act. This summary is necessarily
general and is not intended to be a complete description of all the features and consequences of those provisions and is qualified
in its entirety by reference to our charter and bylaws and the statutory provisions contained in the Tennessee Business Corporation
Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Authorized but Unissued Stock. </I>The authorized but unissued
shares of common stock and preferred stock will be available for future issuance without shareholder approval. These additional
shares may be used for a variety of corporate purposes, including future private or public offerings to raise additional capital,
corporate acquisitions, and employee benefit plans. The existence of authorized but unissued and unreserved shares of common stock
and preferred stock may enable the board of directors to issue shares to persons friendly to current management, which could render
more difficult or discourage any attempt to obtain control of us by means such as a proxy contest, tender offer, or merger, and
thereby protect the continuity of the company&rsquo;s management.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Removal of Directors and Filling Vacancies. </I>Our charter
and bylaws provide that a director may be removed from office prior to the expiration of such director&rsquo;s term only for cause
at a meeting called for such purpose. Our bylaws provide that all vacancies on our board may be filled by the board of directors
for the unexpired term.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Advance Notice Requirements for Shareholder Proposals. </I>Our
bylaws establish advance notice procedures with regard to shareholder proposals. These procedures provide that the shareholder
must submit certain information regarding the proposal, together with the proposal itself, to our corporate secretary in advance
of the annual meeting. Shareholders submitting proposals for inclusion in our proxy statement must comply with the proxy rules
under the Exchange Act. We may reject a shareholder proposal that is not made in accordance with such procedures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Certain Nomination Requirements. </I>Pursuant to our bylaws,
we have established certain nomination requirements for an individual to be elected as a director at any annual or special meeting
of the shareholders, including that the nominating party provide us within a specified time prior to the meeting (i) the name and
address of the shareholder who intends to make the nomination and of the person or persons to be nominated; (ii) a representation
that the shareholder is a holder of record of SmartFinancial stock entitled to vote at such meeting and intends to appear in person
or by proxy at the meeting to nominate the person or persons specified in the notice; (iii) a description of all arrangements or
understandings between the shareholder and each nominee and any other person or persons (naming such person or persons) pursuant
to which the nomination or nominations are to be made by the shareholder; (iv) such other information regarding each nominee proposed
by such shareholder as would be required to be included in a proxy statement filed pursuant to the proxy rules of the SEC, had
the nominee been nominated, or intended to be nominated, by the board of directors; and (v) the consent of each nominee to serve
as a director of the Company if so elected. These provisions could reduce the likelihood that a third party would nominate and
elect individuals to serve on our board of directors.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Business Combinations with Interested Shareholders. </I>The
Tennessee business combinations statute provides that a 10% or greater shareholder of a resident domestic corporation cannot engage
in a &ldquo;business combination&rdquo; (as defined in the statute) with such corporation for a period of two years following the
date on which the 10% shareholder became such, unless the business combination or the acquisition of shares is approved by a majority
of the disinterested members of such corporation&rsquo;s board of directors before the 10% shareholder&rsquo;s share acquisition
date. This statute further provides that at no time (even after the two-year period subsequent to such share acquisition date)
may the 10% shareholder engage in a business combination with the relevant corporation unless certain approvals of the board of
directors or disinterested shareholders are obtained or unless the consideration given in the combination meets certain minimum
standards set forth in the statute. The law is very broad in its scope and is designed to inhibit unfriendly acquisitions but it
does not apply to corporations whose charter contains a provision electing not to be covered by the law. Our charter does not contain
such a provision. An amendment of our charter to that effect would, however, permit a business combination with an interested shareholder
even though that status was obtained prior to the amendment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>Indemnification. </I>The Tennessee Business Corporation Act
provides that a corporation may indemnify any of its directors and officers against liability incurred in connection with a proceeding
if (i) the director or officer acted in good faith, (ii) in the case of conduct in his or her official capacity with the corporation,
the director or officer reasonably believed such conduct was in the corporation&rsquo;s best interest, (iii) in all other cases,
the director or officer reasonably believed that his or her conduct was not opposed to the best interest of the corporation, and
(iv) in connection with any criminal proceeding, the director or officer had no reasonable cause to believe that his or her conduct
was unlawful. In actions brought by or in the right of the corporation, however, the Tennessee Business Corporation Act provides
that no indemnification may be made if the director or officer was adjudged to be liable to the corporation. In cases where the
director or officer is wholly successful, on the merits or otherwise, in the defense of any proceeding instigated because of his
or her status as an officer or director of a corporation, the Tennessee Business Corporation Act mandates that the corporation
indemnify the director or officer against reasonable expenses incurred in the proceeding. The Tennessee Business Corporation Act
also provides that in connection with any proceeding charging improper personal benefit to an officer or director, no indemnification
may be made if such officer or director is adjudged liable on the basis that personal benefit was improperly received. Notwithstanding
the foregoing, the Tennessee Business Corporation Act provides that a court of competent jurisdiction, upon application, may order
that an officer or director be indemnified for reasonable expenses if, in consideration of all relevant circumstances, the court
determines that such individual is fairly and reasonably entitled to indemnification, notwithstanding the fact that (i) such officer
or director was adjudged liable to the corporation in a proceeding by or in right of the corporation, (ii) such officer or director
was adjudged liable on the basis that personal benefit was improperly received by him; or (iii) such officer or director breached
his duty of care to the corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act also empowers a corporation
to provide insurance for directors and officers against liability arising out of their positions, even though the insurance coverage
may be broader than the corporation&rsquo;s power to indemnify. SmartFinancial maintains directors&rsquo; and officers&rsquo; liability
insurance for the benefit of its directors and officers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Our bylaws provide that the company will indemnify, to the fullest
extent authorized by the Tennessee Business Corporation Act and applicable federal law or regulations, any person who is made a
party to or is involved in any proceeding by reason of the fact that he or she is or was a director or officer of SmartFinancial,
provided that the basis of such proceeding is alleged action in an official capacity as a director or officer.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Insofar as indemnification for liabilities arising under the
Securities Act may be permitted to directors, officers or persons controlling SmartFinancial pursuant to the provisions discussed
above, SmartFinancial has been informed that in the opinion of the SEC, such indemnification is against public policy as expressed
in the Securities Act and is, therefore, unenforceable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Certain rules of the Federal Deposit Insurance Corporation limit
the ability of certain depository institutions, their subsidiaries and their affiliated depository institution holding companies
to indemnify affiliated parties, including institution directors. In general, subject to the ability to purchase directors and
officers liability insurance and to advance professional expenses under certain circumstances, the rules prohibit such institutions
from indemnifying a director for certain costs incurred with regard to an administrative or enforcement action commenced by any
federal banking agency that results in a final order or settlement pursuant to which the director is assessed a civil money penalty,
removed from office, prohibited from participating in the affairs of an insured depository institution or required to cease and
desist from or take an affirmative action described in Section 8(b) of the Federal Deposit Insurance Act (12 U.S.C. &sect; 1818(b)).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I></I></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I></I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><I>&nbsp;</I></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="comparisionof"></A>COMPARISON OF RIGHTS OF</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SMARTFINANCIAL SHAREHOLDERS AND PFG SHAREHOLDERS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">If the merger is completed, shareholders of PFG will become
shareholders of SmartFinancial. The rights of PFG shareholders are currently governed by and subject to the provisions of the Tennessee
Business Corporation Act, as amended, or the TBCA, and the PFG Charter and PFG Bylaws. Upon completion of the merger, the rights
of the former PFG shareholders who receive shares of SmartFinancial common stock will be governed by the TBCA and the SmartFinancial
Charter and SmartFinancial Bylaws, rather than the PFG Charter and PFG Bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The following is a summary of the material differences between
the rights of holders of SmartFinancial common stock and holders of PFG common stock, but it does not purport to be a complete
description of those differences, the specific rights of such holders or the terms of the SmartFinancial common stock subject to
issuance in connection with the merger. The following summary is qualified in its entirety by reference to the relevant provisions
of: (1) Tennessee law; (2) the SmartFinancial Charter; (3) the PFG Charter; (4) the SmartFinancial Bylaws; and (5) the PFG Bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The identification of some of the differences in the rights
of such holders as material is not intended to indicate that other differences that may be equally important do not exist. You
are urged to read carefully the relevant provisions of Tennessee law, as well as the governing corporate instruments of each of
SmartFinancial and PFG, copies of which are available, without charge, to any person, including any beneficial owner to whom this
proxy statement/prospectus is delivered, by following the instructions listed under &ldquo;Where You Can Find More Information.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-right: 0.25in; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="width: 18%; border: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Rights</B></FONT></TD>
    <TD STYLE="width: 43%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>SmartFinancial Bancshares, Inc.<BR>
 Shareholder Rights</B></FONT></TD>
    <TD STYLE="width: 39%; border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Progressive Financial Group Inc.<BR>
 Shareholder Rights</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Voting Rights</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each share of SmartFinancial&rsquo;s common stock is entitled to one vote per share. Common stock has unlimited voting rights, and preferred shareholders are entitled to vote only on matters authorized under the corporation&rsquo;s charter. Voting rights are non-cumulative.</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Each share of PFG common stock is entitled to one vote per share. Voting rights are non-cumulative.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Description of Common Stock</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SmartFinancial is authorized to issue 40,000,000 shares of common stock, $1.00 par value. The holders of common stock are entitled to receive net assets of the corporation upon dissolution, secondary to any rights of preferred stock holders as may be specified in the charter.</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PFG is authorized to issue 1,000,000 shares of common stock, $10.00 par value.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Description of Preferred Stock</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SmartFinancial is authorized to issue 2,000,000 shares of preferred stock, $1.00 par value, in any number of series and preferences as determined by the board. There are no shares of preferred stock issued or outstanding.</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PFG is authorized to issue 1,000,000 shares of preferred stock, no designated par value, in any number of series and preferences as determined by the board. There are no shares of preferred stock issued or outstanding.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Number
    of Shares of Outstanding Common Stock before the Merger</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">As of December 18, 2019,
    there were 14,002,658 shares of SmartFinancial common stock outstanding (inclusive of 34,000 unvested shares of restricted
    stock having voting rights).</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">On
    the record date, there were 20,721 shares of PFG common stock outstanding.</FONT></TD></TR>
</TABLE>

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<P STYLE="margin: 0; font-size: 10pt"></P>

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<P STYLE="margin: 0; font-size: 10pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-right: 0.25in; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="border: Black 1pt solid; padding: 0.05in 2.9pt; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>SmartFinancial Bancshares, Inc.<BR>
 Shareholder Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 39%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Progressive Financial Group Inc.<BR>
 Shareholder Rights</B></FONT></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Number
    of Shares of Outstanding Common Stock after the Merger</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Immediately
    after the merger, SmartFinancial will have approximately 15,295,250 &nbsp;shares of common stock outstanding.</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Immediately
    after the merger, PFG will not have any shares of common stock outstanding.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Estimated
    Voting Percentage of SmartFinancial and PFG Shareholders with respect to SmartFinancial Common Stock after the Merger</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
    on 14,002,658 shares of SmartFinancial common stock outstanding as of December 18, 2019, current holders of SmartFinancial
    common stock will control approximately 8.45% of SmartFinancial&rsquo;s common stock following the consummation of the merger.</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Based
    on 20,721 shares of PFG common stock outstanding as of the record date, current holders of PFG common stock will control approximately
    8.45% of&nbsp;&nbsp;SmartFinancial&rsquo;s common stock following the consummation of the merger.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Rights of Holders of Stock Subject to Future Issuances of Stock</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The rights of holders of SmartFinancial common stock may be affected by the future issuance of SmartFinancial common stock or preferred stock.</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The rights of holders of PFG common stock may be affected by the future issuance of PFG common stock.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Right to receive dividends</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Holders of SmartFinancial common stock are entitled to receive dividends as and when declared by the board of directors. Dividends are non-cumulative.</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">Holders of PFG common stock are entitled to receive dividends as and when declared by the board of directors. Dividends are non-cumulative.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Outstanding Preferred stock</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SmartFinancial does not currently have any preferred stock outstanding.</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PFG does not currently have any preferred stock outstanding.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Preemptive Rights</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act provides that shareholders
        of a corporation, solely by virtue of their status as such, do not have a preemptive right to acquire the corporation&rsquo;s unissued
        shares unless expressly stated in the charter.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Holders of SmartFinancial common stock are not entitled to preemptive
        rights to acquire unissued shares of any class.</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act provides that shareholders
        of a corporation, solely by virtue of their status as such, do not have a preemptive right to acquire the corporation&rsquo;s unissued
        shares unless expressly stated in the charter.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Holders of PFG common stock are not entitled to preemptive rights
        with respect to any shares of PFG that may be issued.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Transfer Rights of Shareholders</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Charter and Bylaws of SmartFinancial do not generally restrict transfers of shares of its common stock, as long as such shares are registered pursuant to the provisions of the Securities Act of 1933.</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The bylaws of PFG provide certain rights and restrictions
regarding the ownership and transfer of PFG common stock. Provided an election to maintain S Corporation status for federal tax
purposes is in effect for PFG, no shareholder may transfer, and no person may acquire, beneficial ownership of any shares of PFG
common stock, if such transfer would cause PFG's status as an S Corporation to terminate. No shareholder may sell, transfer or
assign, grant a security interest in an, encumber, pledge or in any other way alienate any of his or her shares of PFG common
stock without the prior written consent of PFG, except through a transfer that meets the requirements of the bylaws of PFG. Any
transfer or acquisition of PFG common stock in violation of the bylaws shall be null and void.&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P></TD></TR>
</TABLE>

<P STYLE="margin: 0; font-size: 10pt">&nbsp;&nbsp;</P>

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<P STYLE="margin: 0; font-size: 10pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-right: 0.25in; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="border: Black 1pt solid; padding: 0.05in 2.9pt; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>SmartFinancial Bancshares, Inc.<BR>
 Shareholder Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 39%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Progressive Financial Group Inc.<BR>
 Shareholder Rights</B></FONT></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">&nbsp;</TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><P STYLE="margin-top: 0; margin-bottom: 0">The bylaws of PFG also provide a right of first refusal, first to PFG, and then to all other shareholders of PFG. No shareholder shall sell, assign, transfer or otherwise dispose of all or any part of his or her shares of PFG common stock without first giving notice of such attempted transfer to PFG and all other shareholders of PFG of the (i) number of shares he or she proposes to transfer and (ii) the terms of such transfer. This notice shall be accompanied by evidence that the proposed transferee is able to consummate the proposed transfer and that such a proposed transferee is eligible to become a shareholder of PFG pursuant to the bylaws. For 30 days from the receipt of such notice, PFG shall have the right to purchase all or some of the offered shares. In the event PFG does not purchase all of the offered shares, the selling shareholder shall immediately notify the other shareholders of PFG that they may purchase the remaining shares not purchased by PFG. The other shareholders shall have 30 days from the date of such notice to purchase such shares. If the selling shareholder's offer is accepted by either PFG or the other shareholders, the closing of such purchase shall occur within ten days after the last notice of acceptance of such offer is given.</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">&nbsp;</P>
                                                                                <P STYLE="margin-top: 0; margin-bottom: 0">If neither PFG or the other shareholders elect to exercise their respective rights of first refusal with
respect to the total number of offered shares, the selling shareholder shall be free to transfer any portion of the shares not
purchased by PFG or the other shareholders in accordance with the terms of the proposed transfer described in the original notice.
Such transfer shall be consummated within ten days from the last day on which PFG or any other shareholder could have accepted
the selling shareholder's offer. After the expiration of such ten day period, all of the selling shareholder's shares of PFG common
stock shall again be subject to the restrictions set forth in the bylaws. Any PFG common stock transferred to a third party pursuant
to the bylaws shall continue to be subject to the restrictions described above and set forth in the bylaws of PFG.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Special Meeting of Shareholders</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SmartFinancial&rsquo;s charter and bylaws allow for a meeting of the shareholders to be called only by (1) the chairman of the board of directors, (2) the vice-chairman of the board, (3) the president or chief executive officer of the corporation, (4) a majority of the members of the board, or (5) holder(s) of 20% or more of the outstanding shares of voting stock. If any person(s) other than the board call a special meeting, the request must be in writing, specify the nature of the proposed business to be discussed, and be delivered to the secretary of the corporation.</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PFG&rsquo;s bylaws provide that a special meeting may be called by the chairman of the board of directors, the president, a majority of the board of directors, or, upon written demand, by the holders of not less than one tenth (1/10) of all the shares entitled to vote at such meeting.</FONT></TD></TR>
</TABLE>

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<P STYLE="margin: 0; font-size: 10pt"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-right: 0.25in; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="border: Black 1pt solid; padding: 0.05in 2.9pt; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>SmartFinancial Bancshares, Inc.<BR>
 Shareholder Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 39%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Progressive Financial Group Inc.<BR>
 Shareholder Rights</B></FONT></TD></TR>
</TABLE>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-right: 0.25in; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Election, Size, and Classification of Board of Directors</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; width: 43%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s charter provides that the number of directors
        will be no less than five and no more than 25 persons. The number of directors may be fixed or changed by resolution of the board.
        Directors are elected at the annual meeting of the shareholders by a plurality of the votes by those shareholders entitled to vote.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s board of directors presently consists
        of 12 individuals.</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; width: 39%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PFG&rsquo;s bylaws provide that the number of directors may be fixed or changed by resolution of the board. Directors are elected by a plurality vote of the shareholders entitled to vote at the annual meeting. The PFG board of directors presently consists of 6 individuals.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Vacancies on the Board of Directors</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act provides that vacancies
        on the board of directors may be filled by the shareholders or directors, unless the charter or bylaws provides otherwise.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s charter states that any vacancies on
        the board may be filled by a majority vote of the remaining directors or the shareholders. Those directors so elected will serve
        until the next annual meeting of shareholders.</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act provides that vacancies
        on the board of directors may be filled by the shareholders or directors, unless the charter or bylaws provides otherwise.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG&rsquo;s charter and bylaws state that vacancies on the board
        may be filled by a majority vote of the directors then in office, including vacancies that are the result of removal.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Removal of Directors</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act provides that shareholders
        may remove directors with or without cause unless the charter provides that directors may be removed only for cause. However, if
        a director is elected by a particular voting group, that director may only be removed by the requisite vote of that voting group.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s charter and bylaws allow for the removal
        of a director with cause by a majority of the board at a meeting called for such purpose. The shareholders may also remove a director
        with cause at a meeting called for such purpose. Directors may not be removed without cause.</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act provides that shareholders
        may remove directors with or without cause unless the charter provides that directors may be removed only for cause. However, if
        a director is elected by a particular voting group, that director may only be removed by the requisite vote of that voting group.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG&rsquo;s charter states that the board of directors, by a
        majority vote of the entire board, may remove any or all directors for cause.</P></TD></TR>
</TABLE>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-right: 0.25in; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="border: Black 1pt solid; padding: 0.05in 2.9pt; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>SmartFinancial Bancshares, Inc.<BR>
 Shareholder Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 39%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Progressive Financial Group Inc.<BR>
 Shareholder Rights</B></FONT></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Indemnification</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act provides that a corporation
        will indemnify a director, officer, employee or agent who was successful in the defense of any proceeding or claim to which he
        or she was a party because he or she was a director of the corporation against reasonable expenses incurred unless otherwise limited
        by the charter.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the Tennessee Business Corporation Act, a corporation
        may indemnify an individual against liability if the individual acted in good faith, the individual reasonably believed that the
        conduct was in the corporation&rsquo;s best interest or was not opposed to its best interest, and the individual had no reasonable
        cause to believe the conduct was unlawful. The corporation may also advance for expenses if the director follows the requirements
        proscribed in the Tennessee Business Corporation Act Section 48-18-504.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act also allows a corporation
        to maintain insurance or furnish other protections against liability on behalf of its directors, officers, employees, or agents.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s charter and bylaws provide that the company
        will indemnify and advance expenses to its directors and officers and may indemnify all other persons it has the power to indemnify
        under the Tennessee Business Corporation Act. SmartFinancial may also purchase and maintain insurance or provide similar protections
        on behalf of its directors, officers, and employees to the fullest extent authorized by the Tennessee Business Corporation Act
        and applicable federal laws and regulations</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act provides that a corporation
        will indemnify a director, officer, employee or agent who was successful in the defense of any proceeding or claim to which he
        or she was a party because he or she was a director of the corporation against reasonable expenses incurred unless otherwise limited
        by the charter.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the Tennessee Business Corporation Act, a corporation
        may indemnify an individual against liability if the individual acted in good faith, the individual reasonably believed that the
        conduct was in the corporation&rsquo;s best interest or was not opposed to its best interest, and the individual had no reasonable
        cause to believe the conduct was unlawful. The corporation may also advance for expenses if the director follows the requirements
        proscribed in the Tennessee Business Corporation Act Section 48-18-504.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act also allows a corporation
        to maintain insurance or furnish other protections against liability on behalf of its directors, officers, employees, or agents.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG&rsquo;s bylaws provide that PFG will indemnify its directors
        and officers to the fullest extent authorized by the Tennessee Business Corporation Act and applicable federal law and regulation,
        except in relation to such matters to which any such director or officer shall be adjudged in any action, suit, or proceeding to
        be liable for his own negligence or misconduct in the performance of his duty.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Personal Liability of Directors</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act provides that a corporation
        may not indemnify a director for liability (1) for any breach of the director&rsquo;s duty of loyalty to the corporation or its
        shareholders; (2) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;
        or (3) under Section 48-18-302 of the Tennessee Business Corporation Act (with respect to the unlawful payment of dividends).</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s charter provides that a director will
        not be personally liable to SmartFinancial or its shareholders for monetary damages for breach of fiduciary duty as a director;
        however, a director&rsquo;s liability will not be eliminated or limited for the following: (1) for any breach of the director's
        duty of loyalty to the corporation or its shareholders; (2) for acts or omissions not in good faith or which involve intentional
        misconduct or a knowing violation of law; or (3) under Section 48-18-302 of the Tennessee Business Corporation Act with respect
        to the unlawful payment of dividends.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s charter further provides that any amendment
        to the director&rsquo;s liability section of the charter requires at least a two-thirds affirmative vote by shareholders entitled
        to vote on the amendment and a two-thirds affirmative vote by the board of directors.</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act provides that a corporation
        may not indemnify a director for liability (1) for any breach of the director&rsquo;s duty of loyalty to the corporation or its
        shareholders; (2) for acts or omissions not in good faith or which involve intentional misconduct or a knowing violation of law;
        or (3) under Section 48-18-302 of the Tennessee Business Corporation Act (with respect to the unlawful payment of dividends).</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG&rsquo;s charter and bylaws contain no other specific provision.</P></TD></TR>
</TABLE>

<P STYLE="margin: 0; font-size: 10pt">&nbsp;&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="margin-top: 0; margin-bottom: 0; font-size: 10pt"></P>

<P STYLE="margin-top: 0; margin-bottom: 0; font-size: 10pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-right: 0.25in; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="border: Black 1pt solid; padding: 0.05in 2.9pt; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>SmartFinancial Bancshares, Inc.<BR>
 Shareholder Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 39%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Progressive Financial Group Inc.<BR>
 Shareholder Rights</B></FONT></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Dissenters&rsquo; Rights</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the Tennessee Business Corporation Act, because SmartFinancial&rsquo;s
        common stock is traded on the Nasdaq Capital Market, holders of common stock do not have dissenters&rsquo; rights.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s charter and bylaws do not contain any
        provision(s) that relate to dissenters&rsquo; rights.</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Tennessee Business Corporation Act provides dissenters rights to shareholders of a company proposing a merger, share exchange or a sale of substantially all of the assets of the company allowing shareholders to dissent from, and obtain payment of the fair value of the shareholders&rsquo; shares in the event of, certain extraordinary corporate transactions. The parties have determined that PFG&rsquo;s shareholders have the right to dissent from this merger.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Votes on Extraordinary Corporate Transactions</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the Tennessee Business Corporation Act, a sale or other
        disposition of all or substantially all of the corporation&rsquo;s assets, a merger of the corporation with and into another corporation,
        or a share exchange involving one or more classes or series of the corporation&rsquo;s shares or a dissolution of the corporation
        must be approved by the board of directors (except in certain limited circumstances) plus, with certain exceptions, the affirmative
        vote of the holders of a majority of all shares of stock entitled to vote thereon.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s charter and bylaws contain no other specific
        provision.</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the Tennessee Business Corporation Act, a sale or other
        disposition of all or substantially all of PFG&rsquo;s assets, a merger of PFG with and into another corporation, or a share exchange
        involving one or more classes or series of PFG&rsquo;s shares or a dissolution of PFG must be approved by the board of directors
        (except in certain limited circumstances) plus, with certain exceptions, the affirmative vote of the holders of a majority of all
        shares of stock entitled to vote thereon.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG&rsquo;s charter and bylaws contain no other specific provision.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Consideration of other Constituencies</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Combination Act provides that no corporation
        (nor its officers or directors) registered or traded on a national securities exchange or registered with the SEC will be held
        liable for either having failed to approve the acquisition of shares by an interested shareholder on or before such interested
        shareholder&rsquo;s share acquisition date, or for opposing any proposed merger, exchange, tender offer or significant disposition
        of the assets of the corporation or any of its subsidiaries because of a good faith belief that such merger, exchange, tender offer
        or significant disposition of assets would adversely affect the corporation&rsquo;s employees, customers, suppliers, the communities
        in which such corporation or its subsidiaries operate or are located or any other relevant factor if such factors are permitted
        to be considered by the board of directors under the charter for such corporation in connection with a merger, exchange, tender
        offer or significant disposition of assets.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s charter and bylaws contain no other specific
        provision.</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Combination Act provides that no corporation
        (nor its officers or directors) registered or traded on a national securities exchange or registered with the SEC will be held
        liable for either having failed to approve the acquisition of shares by an interested shareholder on or before such interested
        shareholder&rsquo;s share acquisition date, or for opposing any proposed merger, exchange, tender offer or significant disposition
        of the assets of the corporation or any of its subsidiaries because of a good faith belief that such merger, exchange, tender offer
        or significant disposition of assets would adversely affect the corporation&rsquo;s employees, customers, suppliers, the communities
        in which such corporation or its subsidiaries operate or are located or any other relevant factor if such factors are permitted
        to be considered by the board of directors under the charter for such corporation in connection with a merger, exchange, tender
        offer or significant disposition of assets</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG&rsquo;s charter and bylaws contain no other specific provision.</P></TD></TR>
</TABLE>

<P STYLE="margin: 0; font-size: 10pt">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt"></P>

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<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-right: 0.25in; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="border: Black 1pt solid; padding: 0.05in 2.9pt; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>SmartFinancial Bancshares, Inc.<BR>
 Shareholder Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 39%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Progressive Financial Group Inc.<BR>
 Shareholder Rights</B></FONT></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Amendment of Charter</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act provides that certain
        relatively technical amendments to a corporation&rsquo;s charter may be adopted by the directors without shareholder action. Generally,
        the Tennessee Business Corporation Act provides that a corporation&rsquo;s charter may be amended by a majority of votes entitled
        to be cast on an amendment, subject to any condition the board of directors may place on its submission of the amendment to the
        shareholders.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s charter provides that any amendment to
        the director&rsquo;s liability section of the charter requires at least a two-thirds affirmative vote by shareholders entitled
        to vote on the amendment and a two-thirds affirmative vote by the board of directors</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Corporation Act provides that certain
        relatively technical amendments to a corporation&rsquo;s charter may be adopted by the directors without shareholder action. Generally,
        the Tennessee Business Corporation Act provides that a corporation&rsquo;s charter may be amended by a majority of votes entitled
        to be cast on an amendment, subject to any condition the board of directors may place on its submission of the amendment to the
        shareholders.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG&rsquo;s charter and bylaws contain no other specific provision.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Amendment of Bylaws</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">SmartFinancial&rsquo;s bylaws provide that the bylaws may be amended by shareholders at any regular or special meeting of the shareholders where a quorum is present by a majority vote of the common stock entitled to vote at the meeting. The bylaws may also be amended by the board of directors with a three-fourths vote.</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">PFG&rsquo;s charter and bylaws provide that the board of directors or shareholders of PFG may amend its bylaws, except only the shareholders may amend the provisions relating to the duties, term of office, number of directors, filling vacancies occurring on the board, or indemnification of a director.</FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Business Combinations Involving Interested Shareholders</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Combination Act generally prohibits a
        &ldquo;business combination&rdquo; by SmartFinancial or a subsidiary with an &ldquo;interested shareholder&rdquo; within five years
        after the shareholder becomes an interested shareholder. SmartFinancial or a subsidiary can, however, enter into a business combination
        within that period if, before the interested shareholder became such, SmartFinancial &rsquo;s board of directors approved the business
        combination or the transaction in which the interested shareholder became an interested shareholder. After that five-year moratorium,
        the business combination with the interested shareholder can be consummated only if it satisfies certain fair price criteria or
        is approved by two-thirds of the other shareholders. For purposes of the Tennessee Business Combination Act, a &ldquo;business
        combination&rdquo; includes mergers, share exchanges, sales and leases of assets, issuances of securities, and similar transactions.
        An &ldquo;interested shareholder&rdquo; is generally any person or entity that beneficially owns 10% or more of the voting power
        of any outstanding class or series of SmartFinancial stock.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s charter does not have special requirements
        for transactions with interested parties.</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The Tennessee Business Combination Act generally prohibits a
        &ldquo;business combination&rdquo; by PFG or a subsidiary with an &ldquo;interested shareholder&rdquo; within five years after
        the shareholder becomes an interested shareholder. PFG or a subsidiary can, however, enter into a business combination within that
        period if, before the interested shareholder became such, PFG&rsquo;s board of directors approved the business combination or the
        transaction in which the interested shareholder became an interested shareholder. After that five-year moratorium, the business
        combination with the interested shareholder can be consummated only if it satisfies certain fair price criteria or is approved
        by two-thirds of the other shareholders. For purposes of the Tennessee Business Combination Act, a &ldquo;business combination&rdquo;
        includes mergers, share exchanges, sales and leases of assets, issuances of securities, and similar transactions. An &ldquo;interested
        shareholder&rdquo; is generally any person or entity that beneficially owns 10% or more of the voting power of any outstanding
        class or series of PFG stock.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">PFG&rsquo;s charter does not have special requirements for transactions
        with interested parties.</P></TD></TR>
</TABLE>

<P STYLE="margin: 0; font-size: 10pt">&nbsp;</P>

<P STYLE="margin: 0; font-size: 10pt"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="margin: 0; font-size: 10pt">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 95%; border-collapse: collapse; margin-right: 0.25in; margin-left: 0.25in">
<TR STYLE="vertical-align: top">
    <TD STYLE="border: Black 1pt solid; padding: 0.05in 2.9pt; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 43%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>SmartFinancial Bancshares, Inc.<BR>
 Shareholder Rights</B></FONT></TD>
    <TD STYLE="border-top: Black 1pt solid; border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; text-align: center; width: 39%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt; font-variant: small-caps"><B>Progressive Financial Group Inc.<BR>
 Shareholder Rights</B></FONT></TD></TR>

<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt; width: 18%"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Shareholder Right to Make Proposals and to Nominate Directors</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; width: 43%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Under the Tennessee Business Corporation Act, shareholders have
        the right to submit proposals to the board of directors and to submit nominations for directors.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s charter allows for a shareholder to nominate
        a director so long as the shareholder is entitled to vote and provides written notice of the nomination in proper form to the secretary
        of the company.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial&rsquo;s bylaws allow for shareholder proposals
        to be brought before the board at the annual meeting so long as written notice of the proposal is timely given to the secretary
        of the company in proper form.</P></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt; width: 39%">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">Under Tennessee law shareholders have
        the right to submit proposals to the board of directors and to submit nominations for directors.</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">&nbsp;</P>
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">PFG&rsquo;s charter and bylaws contain
        no other specific provision.</P></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; border-left: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt"><B><I>Shareholder Ability to Act by Written Consent</I></B></FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt"><FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">The Tennessee Business Corporation Act allows for shareholders to act by written consent if all of the shareholders entitled to vote on the matter consent to taking such action without a meeting. The affirmative vote of the number of shares otherwise required to authorize or take such action at a meeting is the act of the shareholders.</FONT></TD>
    <TD STYLE="border-right: Black 1pt solid; border-bottom: Black 1pt solid; padding: 0.05in 2.9pt">
        <P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; background-color: white">The Tennessee Business Corporation
Act allows for shareholders to act by written consent if all of the shareholders entitled to vote on the matter consent to taking
such action without a meeting. The affirmative vote of the number of shares otherwise required to authorize or take such action
at a meeting is the act of the shareholders.&nbsp;</P></TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="legalmatters"></A>LEGAL MATTERS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The validity of the SmartFinancial common stock to be issued
in connection with the merger will be passed upon for SmartFinancial by Alston &amp; Bird LLP (Atlanta, Georgia). Certain U.S.
federal income tax consequences relating to the merger will also be passed upon for SmartFinancial and PFG by Alston &amp; Bird
LLP (Atlanta, Georgia) and Baker, Donelson, Bearman, Caldwell &amp; Berkowitz, PC (Nashville, TN), respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="experts"></A>EXPERTS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The consolidated financial statements of SmartFinancial and
its subsidiary as of December&nbsp;31, 2017, included in SmartFinancial&rsquo;s <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877318000010/smbk_123117x10kdocument.htm" STYLE="-sec-extract: exhibit">Annual Report on Form 10-K for the year ended December&nbsp;31, 2017</A>, incorporated by reference herein, have been so incorporated by reference herein in reliance upon the reports of Mauldin &amp;
Jenkins, LLC, an independent registered public accounting firm, given upon the authority of said firm as experts in accounting
and auditing<FONT STYLE="background-color: white">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><FONT STYLE="background-color: white"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The consolidated financial statements of SmartFinancial and
its subsidiary as of December&nbsp;31, 2018, and management&rsquo;s assessment of the effectiveness of internal control over financial
reporting as of December&nbsp;31, 2018, included in SmartFinancial&rsquo;s Annual Report on Form 10-K for the year ended December&nbsp;31,
2018, incorporated by reference herein, have been so incorporated by reference herein in reliance upon the reports of Dixon Hughes
Goodman LLP, an independent registered public accounting firm, given upon the authority of said firm as experts in accounting and
auditing<FONT STYLE="background-color: white">. </FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><A NAME="whereyoucanfind"></A>WHERE YOU CAN FIND MORE INFORMATION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial has filed a registration statement on Form S-4
under the Securities Act of 1933 with the SEC with respect to the SmartFinancial common stock to be issued to shareholders of PFG
in the merger. This proxy statement/prospectus constitutes the prospectus of SmartFinancial filed as part of the registration statement.
This proxy statement/prospectus does not contain all of the information set forth in the registration statement because certain
parts of the registration statement are omitted in accordance with the rules and regulations of the SEC. The registration statement
and its exhibits are available for inspection and copying as set forth below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">In addition, SmartFinancial files annual, quarterly and special
reports, proxy statements and other business and financial information with the SEC. You may read and copy any materials that SmartFinancial
files with the SEC at the SEC&rsquo;s Public Reference Room at 100 F Street, N.E., Washington, D.C. 20549, at prescribed rates.
Please call the SEC at (800) SEC-0330 for further information on the public reference room. In addition, SmartFinancial files reports
and other business and financial information with the SEC electronically, and the SEC maintains a website that contains SmartFinancial&rsquo;s
SEC filings as well as reports, proxy and information statements, and other information issuers file electronically with the SEC
at www.sec.gov. You will also be able to obtain these documents, free of charge, from SmartFinancial&rsquo;s website at www.smartfinancialinc.com
under the &ldquo;Investor Relations&rdquo; link and then under the &ldquo;SEC Filings&rdquo; heading. The website addresses for
the SEC and SmartFinancial are inactive textual references and except as specifically incorporated by reference into this proxy
statement/prospectus, information on those websites is not part of this proxy statement/prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">The SEC allows SmartFinancial to &ldquo;incorporate by reference&rdquo;
information in this proxy statement/prospectus. This means that SmartFinancial can disclose important business and financial information
to you by referring you to another document filed separately with the SEC. The information that SmartFinancial incorporates by
reference is considered to be part of this proxy statement/prospectus, and later information that SmartFinancial files with the
SEC will automatically update and supersede the information SmartFinancial included in this proxy statement/prospectus. This document
incorporates by reference the documents that are listed below that SmartFinancial has previously filed with the SEC, except to
the extent that any information contained in such filings is deemed &ldquo;furnished&rdquo; in connection with SEC rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD><A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000009/smbk_123118x10kdocument2.htm" STYLE="-sec-extract: exhibit">Amendment No. 1 to Annual Report on Form 10-K/A for the year ended December 31, 2018, filed on March 20, 2019</A>;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Annual Report on Form 10-K for the year ended December 31, 2018, filed on <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000006/smbk_123118x10kdocument.htm" STYLE="-sec-extract: exhibit">March 18, 2019</A>;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Definitive Proxy Statement on Schedule 14A for the 2019 Annual Meeting, filed on <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000114036119005219/s002751x1_def14a.htm" STYLE="-sec-extract: exhibit">March 19, 2019</A>;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Quarterly Reports on Form 10-Q for the quarters ended March 31, 2019, June 30, 2019, and September 30, 2019, filed on <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000019/smbk_033119x10qdocument.htm" STYLE="-sec-extract: exhibit">May 10, 2019</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000023/smbk_063019x10qdocument.htm" STYLE="-sec-extract: exhibit">August 8, 2019</A>, and <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000040/smbk_093019x10qdocument.htm" STYLE="-sec-extract: exhibit">November 8, 2019</A>, respectively;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>Current Reports on Form 8-K or Form 8-K/A, as applicable, filed on<A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000114036119001149/s002627x1_8k.htm" STYLE="-sec-extract: exhibit"> January 16, 2019</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000002/a2018q412312018earningsrel.htm" STYLE="-sec-extract: exhibit">January 24, 2019</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000114036119002520/s002627x5_8k.htm" STYLE="-sec-extract: exhibit">February 6, 2019</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000114036119007531/form8k.htm" STYLE="-sec-extract: exhibit">April 24, 2019</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000011/a2019q103312019earningsrel.htm" STYLE="-sec-extract: exhibit">April 25, 2019</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000014/a050619-form8xkxcfochanges.htm" STYLE="-sec-extract: exhibit">May 6, 2019</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000016/smbkannualmeetingresultsfo.htm" STYLE="-sec-extract: exhibit">May 7, 2019</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000114036119009945/form8ka.htm" STYLE="-sec-extract: exhibit">May 29, 2019</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000021/a2019q206302019earningsrel.htm" STYLE="-sec-extract: exhibit">July 25, 2019</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000028/a2019q309302019earningsrel.htm" STYLE="-sec-extract: exhibit">October 21, 2019</A>, <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000032/a8k-progressivefinancialco.htm" STYLE="-sec-extract: exhibit">October 30, 2019</A>, and <A HREF="http://www.sec.gov/Archives/edgar/data/1038773/000103877319000038/a8k-dividendreleasex110619.htm" STYLE="-sec-extract: exhibit">November 6, 2019</A>; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

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<TD STYLE="width: 0"></TD><TD STYLE="width: 0.25in"><FONT STYLE="font-family: Symbol">&middot;</FONT></TD><TD>The description of our common stock contained in our Registration Statement filed with the SEC pursuant to Section 12 of the
Securities Exchange Act of 1934, or the Exchange Act, including any amendment or report filed for purposes of updating such description.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial also incorporates by reference any future filings
they make with the SEC under Sections 13(a), 13(c), 14 or 15(d) of the Exchange Act after the date of this proxy statement/prospectus
and the date of the PFG special meeting. Any statement contained in this proxy statement/prospectus or in a document incorporated
or deemed to be incorporated by reference in this proxy statement/prospectus is deemed to be modified or superseded to the extent
that a statement contained herein or in any subsequently filed document that also is, or is deemed to be, incorporated by reference
herein modified or superseded such statement. Any statement so modified or superseded will not be deemed, except as so modified
or superseded, to constitute a part of this proxy statement/prospectus.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Documents incorporated by reference are available from SmartFinancial
without charge (except for exhibits to the documents unless the exhibits are specifically incorporated in the document by reference).
You may obtain documents incorporated by reference in this document by requesting them in writing or by telephone from SmartFinancial
at the following address:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="text-align: center; font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>SmartFinancial, Inc.<BR> </B>5401 Kingston Pike, Suite 600<BR> Knoxville, Tennessee 37919<BR> Attention: Secretary<BR> Telephone: (865) 437-5700</FONT></P>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>To obtain timely delivery, you must make a written or
oral request for a copy of such information by January 21, 2020. You will not be charged for any of these documents that you request.
If you request any incorporated documents from SmartFinancial, SmartFinancial will mail them to you by first class mail, or another
equally prompt means, within one business day after receiving your request. </B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>You should rely only on the information contained in this
proxy statement/prospectus. Neither SmartFinancial nor PFG has authorized anyone to provide you with different information. Therefore,
if anyone gives you different or additional information, you should not rely on it. The information contained in this proxy statement/prospectus
is correct as of its date. It may not continue to be correct after this date. PFG has supplied all of the information about PFG
and its subsidiaries contained in this proxy statement/prospectus and SmartFinancial has supplied all of the information contained
in this proxy statement/prospectus about SmartFinancial and its subsidiaries. Each of us is relying on the correctness of the information
supplied by the other.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>This proxy statement/prospectus does not constitute an offer
to sell, or a solicitation of an offer to purchase, the securities offered by this proxy statement/prospectus, or the solicitation
of a proxy, in any jurisdiction to or from any person to whom or from whom it is unlawful to make such offer, solicitation of an
offer or proxy solicitation in such jurisdiction.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><B><A NAME="annexa"></A>Annex A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: right; margin-bottom: 0pt"><B><I>Execution Version</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">AGREEMENT AND PLAN OF MERGER</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">by and between</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">SMARTFINANCIAL, INC.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">and</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">PROGRESSIVE FINANCIAL GROUP INC.</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">Dated as of October 29, 2019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">TABLE OF CONTENTS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>



<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif; text-transform: uppercase">
    <TD STYLE="width: 90%; text-align: left; text-indent: -1.2in; padding-top: 12pt; padding-bottom: 12pt; padding-left: 1.2in">ARTICLE I&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THE MERGER</TD>
    <TD STYLE="width: 10%; text-align: right; padding-top: 12pt; padding-bottom: 12pt">2</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 1.01&nbsp;&nbsp;&nbsp;<U>The Merger</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">2</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 1.02&nbsp;&nbsp;&nbsp;<U>Charter and Bylaws</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">2</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 1.03&nbsp;&nbsp;&nbsp;<U>Bank Merger</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">2</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 1.04&nbsp;&nbsp;&nbsp;<U>Directors and Officers</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">2</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 1.05&nbsp;&nbsp;&nbsp;<U>Effective Time; Closing</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">3</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 1.06&nbsp;&nbsp;&nbsp;<U>Additional Actions</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">3</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 1.07&nbsp;&nbsp;&nbsp;<U>Reservation of Right to Revise Structure</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">3</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif; text-transform: uppercase">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 12pt; padding-bottom: 12pt; padding-left: 1.2in">ARTICLE II&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MERGER CONSIDERATION; EXCHANGE PROCEDURES</TD>
    <TD STYLE="text-align: right; padding-top: 12pt; padding-bottom: 12pt">4</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 2.01&nbsp;&nbsp;&nbsp;<U>Merger Consideration</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">4</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 2.02&nbsp;&nbsp;&nbsp;<U>Rights as Shareholders; Stock Transfers</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">5</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 2.03&nbsp;&nbsp;&nbsp;<U>Fractional Shares</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">5</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 2.04&nbsp;&nbsp;&nbsp;<U>Plan of Reorganization</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">6</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 2.05&nbsp;&nbsp;&nbsp;<U>Exchange Procedures</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">6</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 2.06&nbsp;&nbsp;&nbsp;<U>Deposit and Delivery of Merger Consideration</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">6</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 2.07&nbsp;&nbsp;&nbsp;<U>Rights of Certificate Holders after the Effective Time</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">7</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 2.08&nbsp;&nbsp;&nbsp;<U>Anti-Dilution Provisions</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">8</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif; text-transform: uppercase">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 12pt; padding-bottom: 12pt; padding-left: 1.2in">ARTICLE III&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REPRESENTATIONS AND WARRANTIES OF PFG</TD>
    <TD STYLE="text-align: right; padding-top: 12pt; padding-bottom: 12pt">8</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.01&nbsp;&nbsp;&nbsp;<U>Organization and Standing</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">8</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.02&nbsp;&nbsp;&nbsp;<U>Capital Stock</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">8</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.03&nbsp;&nbsp;&nbsp;<U>Subsidiaries</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">9</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.04&nbsp;&nbsp;&nbsp;<U>Corporate Power; Minute Books</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">10</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.05&nbsp;&nbsp;&nbsp;<U>Corporate Authority</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">10</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.06&nbsp;&nbsp;&nbsp;<U>Regulatory Approvals; No Defaults</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">11</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.07&nbsp;&nbsp;&nbsp;<U>Financial Statements; Internal Controls</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">12</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.08&nbsp;&nbsp;&nbsp;<U>Regulatory Reports</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">12</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.09&nbsp;&nbsp;&nbsp;<U>Absence of Certain Changes or Events</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">13</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.10&nbsp;&nbsp;&nbsp;<U>Legal Proceedings</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">13</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.11&nbsp;&nbsp;&nbsp;<U>Compliance With Laws</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">14</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.12&nbsp;&nbsp;&nbsp;<U>PFG Material Contracts; Defaults</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">14</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.13&nbsp;&nbsp;&nbsp;<U>Agreements with Regulatory Agencies</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">15</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.14&nbsp;&nbsp;&nbsp;<U>Brokers; Fairness Opinion</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">16</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.15&nbsp;&nbsp;&nbsp;<U>Employee Benefit Plans</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">16</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.16&nbsp;&nbsp;&nbsp;<U>Labor Matters</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">19</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.17&nbsp;&nbsp;&nbsp;<U>Environmental Matters</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">19</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.18&nbsp;&nbsp;&nbsp;<U>Tax Matters</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">20</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.19&nbsp;&nbsp;&nbsp;<U>Investment Securities</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">22</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.20&nbsp;&nbsp;&nbsp;<U>Derivative Transactions</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">23</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.21&nbsp;&nbsp;&nbsp;<U>Regulatory Capitalization</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">23</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.22&nbsp;&nbsp;&nbsp;<U>Loans; Nonperforming and Classified Assets</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">23</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.23&nbsp;&nbsp;&nbsp;<U>Allowance for Loan and Lease Losses</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">24</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.24&nbsp;&nbsp;&nbsp;<U>Trust Business; Administration of Fiduciary Accounts</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">25</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.25&nbsp;&nbsp;&nbsp;<U>Investment Management and Related Activities</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">25</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.26&nbsp;&nbsp;&nbsp;<U>Repurchase Agreements</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">25</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.27&nbsp;&nbsp;&nbsp;<U>Deposit Insurance</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">25</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.28&nbsp;&nbsp;&nbsp;<U>Community Reinvestment Act, Anti-money Laundering and Customer Information Security</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">25</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.29&nbsp;&nbsp;&nbsp;<U>Transactions with Affiliates</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">26</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.30&nbsp;&nbsp;&nbsp;<U>Tangible Properties and Assets</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">26</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.31&nbsp;&nbsp;&nbsp;<U>Intellectual Property</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">27</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.32&nbsp;&nbsp;&nbsp;<U>Insurance</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">27</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.33&nbsp;&nbsp;&nbsp;<U>Antitakeover Provisions</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">28</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.34&nbsp;&nbsp;&nbsp;<U>PFG Information</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">28</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.35&nbsp;&nbsp;&nbsp;<U>[Reserved]</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">28</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.36&nbsp;&nbsp;&nbsp;<U>Bank Holding Company</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">28</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 3.37&nbsp;&nbsp;&nbsp;<U>No Other Representations or Warranties</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">28</TD></TR>
</TABLE>

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<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="width: 100%">
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif; text-transform: uppercase">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 12pt; padding-bottom: 12pt; padding-left: 1.2in; width: 90%">ARTICLE IV&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;REPRESENTATIONS AND WARRANTIES OF SMBK</TD>
    <TD STYLE="text-align: right; padding-top: 12pt; padding-bottom: 12pt; width: 10%">29</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 4.01&nbsp;&nbsp;&nbsp;<U>Organization and Standing</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">29</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 4.02&nbsp;&nbsp;&nbsp;<U>Capital Stock</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">29</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 4.03&nbsp;&nbsp;&nbsp;<U>Corporate Power</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">29</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 4.04&nbsp;&nbsp;&nbsp;<U>Corporate Authority</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">29</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 4.05&nbsp;&nbsp;&nbsp;<U>SEC Documents; Financial Statements</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">30</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 4.06&nbsp;&nbsp;&nbsp;<U>Regulatory Approvals; No Defaults</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">30</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 4.07&nbsp;&nbsp;&nbsp;<U>SMBK Information</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">31</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 4.08&nbsp;&nbsp;&nbsp;<U>Absence of Certain Changes or Events</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">31</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 4.09&nbsp;&nbsp;&nbsp;<U>Compliance with Laws</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">31</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 4.10&nbsp;&nbsp;&nbsp;<U>Legal Proceedings</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">32</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 4.11&nbsp;&nbsp;&nbsp;<U>No Other Representations or Warranties</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">32</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif; text-transform: uppercase">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 12pt; padding-bottom: 12pt; padding-left: 1.2in">ARTICLE V&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;COVENANTS</TD>
    <TD STYLE="text-align: right; padding-top: 12pt; padding-bottom: 12pt">33</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.01&nbsp;&nbsp;&nbsp;<U>Covenants of PFG</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">33</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.02&nbsp;&nbsp;&nbsp;<U>Covenants of SMBK</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">39</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.03&nbsp;&nbsp;&nbsp;<U>Commercially Reasonable Efforts</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">39</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.04&nbsp;&nbsp;&nbsp;<U>Shareholder Approval</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">39</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.05&nbsp;&nbsp;&nbsp;<U>Registration Statement; Proxy Statement-Prospectus; NASDAQ Listing</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">40</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.06&nbsp;&nbsp;&nbsp;<U>Regulatory Filings; Consents</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">41</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.07&nbsp;&nbsp;&nbsp;<U>Publicity</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">41</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.08&nbsp;&nbsp;&nbsp;<U>Access; Current Information; Accounting Matters</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">42</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.09&nbsp;&nbsp;&nbsp;<U>No Solicitation by PFG; Superior Proposals</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">43</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.10&nbsp;&nbsp;&nbsp;<U>Indemnification</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">46</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.11&nbsp;&nbsp;&nbsp;<U>Employees; Benefit Plans</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">48</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.12&nbsp;&nbsp;&nbsp;<U>Notification of Certain Changes</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">49</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.13&nbsp;&nbsp;&nbsp;<U>Transition; Informational Systems Conversion</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">50</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.14&nbsp;&nbsp;&nbsp;<U>No Control of Other Party&rsquo;s Business</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">50</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.15&nbsp;&nbsp;&nbsp;<U>Certain Litigation</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">50</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.16&nbsp;&nbsp;&nbsp;<U>Director Resignations</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">50</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.17&nbsp;&nbsp;&nbsp;<U>Non-Competition and Non-Disclosure Agreement</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">50</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.18&nbsp;&nbsp;&nbsp;<U>Claims Letters</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">51</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.19&nbsp;&nbsp;&nbsp;<U>[Reserved]</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">51</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.20&nbsp;&nbsp;&nbsp;<U>Coordination</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">51</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.21&nbsp;&nbsp;&nbsp;<U>Transactional Expenses</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">52</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.22&nbsp;&nbsp;&nbsp;<U>Confidentiality</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">52</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.23&nbsp;&nbsp;&nbsp;<U>AAA Dividend</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">52</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 5.24&nbsp;&nbsp;&nbsp;<U>Tax Matters</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">52</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif; text-transform: uppercase">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 12pt; padding-bottom: 12pt; padding-left: 1.2in">ARTICLE VI&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;CONDITIONS TO CONSUMMATION OF THE MERGER</TD>
    <TD STYLE="text-align: right; padding-top: 12pt; padding-bottom: 12pt">54</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 6.01&nbsp;&nbsp;&nbsp;<U>Conditions to Obligations of the Parties to Effect the Merger</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">54</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 6.02&nbsp;&nbsp;&nbsp;<U>Conditions to Obligations of PFG</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">55</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 6.03&nbsp;&nbsp;&nbsp;<U>Conditions to Obligations of SMBK</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">55</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 6.04&nbsp;&nbsp;&nbsp;<U>Frustration of Closing Conditions</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">57</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif; text-transform: uppercase">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 12pt; padding-bottom: 12pt; padding-left: 1.2in">ARTICLE VII&nbsp;&nbsp;&nbsp;&nbsp;TERMINATION</TD>
    <TD STYLE="text-align: right; padding-top: 12pt; padding-bottom: 12pt">57</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 7.01&nbsp;&nbsp;&nbsp;<U>Termination</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">57</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 7.02&nbsp;&nbsp;&nbsp;<U>Termination Fee</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">58</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 7.03&nbsp;&nbsp;&nbsp;<U>Effect of Termination</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">59</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif; text-transform: uppercase">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 12pt; padding-bottom: 12pt; padding-left: 1.2in">ARTICLE VIII&nbsp;&nbsp;&nbsp;DEFINITIONS</TD>
    <TD STYLE="text-align: right; padding-top: 12pt; padding-bottom: 12pt">59</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 8.01&nbsp;&nbsp;&nbsp;<U>Definitions</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">59</TD></TR>
</TABLE>

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<TR STYLE="text-align: left; vertical-align: bottom; font: bold 10pt Times New Roman, Times, Serif; text-transform: uppercase">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 12pt; padding-bottom: 12pt; padding-left: 1.2in; width: 90%">ARTICLE IX&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;MISCELLANEOUS</TD>
    <TD STYLE="text-align: right; padding-top: 12pt; padding-bottom: 12pt; width: 10%">68</TD></TR>
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    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 9.01&nbsp;&nbsp;&nbsp;<U>Survival</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">68</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 9.02&nbsp;&nbsp;&nbsp;<U>Waiver; Amendment</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">68</TD></TR>
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    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 9.03&nbsp;&nbsp;&nbsp;<U>Governing Law; Jurisdiction; Waiver of Right to Trial by Jury</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">68</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 9.04&nbsp;&nbsp;&nbsp;<U>Expenses</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">69</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 9.05&nbsp;&nbsp;&nbsp;<U>Notices</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">69</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 9.06&nbsp;&nbsp;&nbsp;<U>Entire Understanding; No Third Party Beneficiaries</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">70</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 9.07&nbsp;&nbsp;&nbsp;<U>Severability</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">70</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 9.08&nbsp;&nbsp;&nbsp;<U>Enforcement of the Agreement</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">70</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 9.09&nbsp;&nbsp;&nbsp;<U>Interpretation</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">70</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 9.10&nbsp;&nbsp;&nbsp;<U>Assignment</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">71</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 9.11&nbsp;&nbsp;&nbsp;<U>Counterparts</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">72</TD></TR>
<TR STYLE="text-align: left; vertical-align: bottom; font: 10pt Times New Roman, Times, Serif">
    <TD STYLE="text-align: left; text-indent: -1.2in; padding-top: 0in; padding-bottom: 0pt; padding-left: 1.2in">Section 9.12&nbsp;&nbsp;&nbsp;<U>Privileged Communications</U></TD>
    <TD STYLE="text-align: right; padding-top: 0in; padding-bottom: 0pt">72</TD></TR>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Exhibit A &ndash; Form of Voting Agreement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Exhibit B &ndash; Form of Bank Plan of Merger and Merger Agreement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Exhibit C &ndash; Form of Director Non-Competition and Non-Disclosure
Agreement</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Exhibit D &ndash; Form of Claims Letter</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">AGREEMENT
AND PLAN OF MERGER</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This Agreement and
Plan of Merger (this &ldquo;<B><I>Agreement</I></B>&rdquo;) is dated as of October 29, 2019, by and between SmartFinancial, Inc.,
a Tennessee corporation (&ldquo;<B><I>SMBK</I></B>&rdquo;), and Progressive Financial Group Inc., a Tennessee corporation (&ldquo;<B><I>PFG</I></B>&rdquo;
and, together with SMBK, the &ldquo;<B><I>Parties</I></B>&rdquo; and each a &ldquo;<B><I>Party</I></B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">W I T N
E S S E T H</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, the
boards of directors of the Parties have determined that it is in the best interests of their respective companies and their respective
shareholders to consummate the business combination transaction provided for in this Agreement in which PFG will, on the terms
and subject to the conditions set forth in this Agreement, merge with and into SMBK (the &ldquo;<B><I>Merger</I></B>&rdquo;), with
SMBK as the surviving company in the Merger (sometimes referred to in such capacity as the &ldquo;<B><I>Surviving Entity</I></B>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, as
a condition to the willingness of SMBK to enter into this Agreement, certain directors and shareholders of PFG have entered into
voting agreements (each a &ldquo;<B><I>Voting Agreement</I></B>&rdquo; and collectively, the &ldquo;<B><I>Voting Agreements</I></B>&rdquo;),
substantially in the form attached hereto as <U>Exhibit A</U>, dated as of the date hereof, with SMBK, pursuant to which each such
director or shareholder has agreed, among other things, to vote certain of the PFG Common Stock owned by such director or shareholder
in favor of the approval of this Agreement and the transactions contemplated hereby, subject to the terms of the Voting Agreements;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, PFG
owns 100% of the issued and outstanding common stock of Progressive Savings Bank, a Tennessee state-chartered bank (&ldquo;<B><I>Progressive
Bank</I></B>&rdquo;) and SMBK owns 100% of the issued and outstanding common stock of SmartBank, a Tennessee state-chartered bank;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, as
a further condition to the willingness of SMBK to enter into this Agreement, certain employees of PFG and/or its Subsidiaries will
enter into termination agreements, employment agreements, or retention agreements following the entry into this Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, the
Parties desire to make certain representations, warranties and agreements in connection with the Merger and also to prescribe certain
conditions to the Merger; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, for
U.S. federal income tax purposes, it is intended that the Merger qualify as a &ldquo;reorganization&rdquo; within the meaning of
Section 368(a) of the Internal Revenue Code of 1986, as amended (the &ldquo;<B><I>Code</I></B>&rdquo;), and the Regulations promulgated
thereunder, and this Agreement is intended to be and is adopted as a &ldquo;plan of reorganization&rdquo; for purposes of Sections
354 and 361 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>NOW, THEREFORE</B>,
in consideration of the mutual promises herein contained and for other good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, the Parties agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">ARTICLE
I<BR>
THE MERGER</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1.01<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>The
Merger</U>. Subject to the terms and conditions of this Agreement, in accordance with the Tennessee Business Corporation Act Tenn.
Code Ann. &sect;&sect; 48-11-101, et seq. (the &ldquo;<B><I>TBCA</I></B>&rdquo;), at the Effective Time, PFG shall merge with
and into SMBK pursuant to the terms of this Agreement. SMBK shall be the Surviving Entity in the Merger and shall continue its
existence as a corporation under the laws of the State of Tennessee. As of the Effective Time, the separate corporate existence
of PFG shall cease.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1.02<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Charter and Bylaws</U>. At the Effective Time, the charter of SMBK in effect immediately prior to the Effective Time
shall be the charter of the Surviving Entity until thereafter amended in accordance with applicable Law. The bylaws of SMBK in
effect immediately prior to the Effective Time shall be the bylaws of the Surviving Entity until thereafter amended in accordance
with applicable Law and the terms of such bylaws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1.03<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Bank Merger</U>. Except as provided below, immediately following the Effective Time and sequentially but in effect simultaneously
on the Closing Date, Progressive Bank shall be merged with and into SmartBank (the &ldquo;<B><I>Bank Merger</I></B>&rdquo;), in
accordance with the provisions of the Tennessee Banking Act, and SmartBank shall be the surviving bank (the &ldquo;<B><I>Surviving
Bank</I></B>&rdquo;). The Bank Merger shall have the effects as set forth under applicable federal and Tennessee state banking
laws and regulations, as further set forth in the separate merger agreement (the &ldquo;<B><I>Bank Plan of Merger</I></B>&rdquo;)
in substantially the form attached hereto as <U>Exhibit B</U>, which SmartBank and Progressive Bank are simultaneously executing
as of the date hereof. Each of PFG and SMBK have approved the Bank Plan of Merger in its capacity as the sole shareholder of Progressive
Bank and SmartBank, respectively. As provided in the Bank Plan of Merger, the Bank Merger may be abandoned at the election of SmartBank
at any time, whether before or after filings are made for regulatory approval of the Bank Merger, but if the Bank Merger is abandoned
for any reason, Progressive Bank shall continue to operate under its name; provided that prior to any such election, SMBK shall
(a) reasonably consult with PFG and its regulatory counsel and (b) reasonably determine in good faith that such election will not,
and would not reasonably be expected to, prevent, delay, or impair any Party&rsquo;s ability to consummate the Merger or the other
transactions contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1.04<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Directors
and Officers</U>. With the exception of adding Ottis Phillips to the board of directors, the directors and officers of SMBK immediately
prior to the Effective Time shall, from and after the Effective Time, continue as the directors and officers of the Surviving
Entity until their successors shall have been duly elected, appointed, or qualified or until their earlier death, resignation,
or removal in accordance with the charter and bylaws of the Surviving Entity. With the exception of adding Ottis Phillips to the
board of directors, the directors and officers of SmartBank immediately prior to the effective time of the Bank Merger shall,
from and after the Effective Time, continue as the directors and officers of the Surviving Bank until their successors shall have
been duly elected, appointed, or qualified or until their earlier death, resignation, or removal in accordance with the charter
and bylaws of the Surviving Bank. The parties agree that any executive officer of the Surviving Entity or the Surviving Bank shall
be authorized to sign any and all Tax Returns of PFG or Progressive Bank, respectively, that are filed after the Effective Time
regardless of the period covered by the Tax Returns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1.05<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Effective Time; Closing</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Subject
to the terms and conditions of this Agreement, the Parties will make all such filings as may be required to consummate the Merger
and the Bank Merger by applicable Laws. The Merger shall become effective as set forth in the articles of merger (the &ldquo;<B><I>Articles
of Merger</I></B>&rdquo;) related to the Merger, which will include the plan of merger (the &ldquo;<B><I>Plan of Merger</I></B>&rdquo;),
that shall be filed with the Secretary of State of the State of Tennessee, as provided in the TBCA, on or prior to the Closing
Date. The Merger shall become effective at such time as the Articles of Merger are duly filed with the Secretary of State of the
State of Tennessee, or at such later time as is agreed between the Parties and specified in the Articles of Merger in accordance
with the relevant provisions of the TBCA (such date and time is hereinafter referred to as the &ldquo;<B><I>Effective Time</I></B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
closing of the Merger contemplated by this Agreement (the &ldquo;<B><I>Closing</I></B>&rdquo;) shall take place on a date determined
by SMBK and reasonably acceptable to PFG (the &ldquo;<B><I>Closing Date</I></B>&rdquo;), which shall be within 30 days after all
of the conditions to the Closing set forth in <U>Article VI</U> (other than those conditions that by their nature are to be satisfied
by action taken at the Closing, which shall be satisfied or waived at the Closing) have been satisfied or waived (to the extent
permitted by applicable Law) in accordance with the terms hereof, at the headquarters of SMBK at 5401 Kingston Pike, Knoxville,
Tennessee, 37319, or such other place, date, and time as the Parties may mutually agree. At or prior to the Closing, there shall
be delivered to SMBK and PFG the Articles of Merger and such other certificates and other documents required to be delivered under
<U>Article VI</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1.06<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Additional Actions</U>. If, at any time after the Effective Time, any Party shall consider or be advised that any further
deeds, documents, assignments, or assurances in Law or any other acts are necessary or desirable to carry out the purposes of this
Agreement (such Party, the &ldquo;<B><I>Requesting Party</I></B>&rdquo;), the other Party and its Subsidiaries and their respective
officers and directors shall be deemed to have granted to the Requesting Party and its Subsidiaries, and each or any of them, an
irrevocable power of attorney to execute and deliver, in such official corporate capacities, all such deeds, documents, assignments,
or assurances in Law or take any such other acts as are necessary or desirable to carry out the purposes of this Agreement, and
the officers and directors of the Requesting Party and its Subsidiaries, as applicable, are authorized in the name of the other
Party and its Subsidiaries or otherwise to take any and all such action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 1.07<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Reservation of Right to Revise Structure</U>. SMBK may at any time and without the approval of PFG change the method
of effecting the business combination contemplated by this Agreement if and to the extent that it reasonably deems such a change
to be necessary; <I>provided</I>, <I>however</I>, that no such change shall (i) alter or change the amount of the consideration
to be issued to Holders as Merger Consideration, (ii) reasonably be expected to materially impede or delay consummation of the
Merger, (iii) adversely affect the federal income tax treatment of the Holders in connection with the Merger, or (iv) require submission
to or approval of PFG&rsquo;s shareholders after the Plan of Merger has been approved by PFG&rsquo;s shareholders. In the event
that SMBK elects to make such a change, the Parties agree to cooperate to execute appropriate documents to reflect the change.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">ARTICLE
II<BR>
MERGER CONSIDERATION; EXCHANGE PROCEDURES</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.01<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Merger Consideration</U>. Subject to the provisions of this Agreement, at the Effective Time, automatically by virtue
of the Merger and without any action on the part of the Parties or any shareholder of PFG:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
share of SMBK Common Stock that is issued and outstanding immediately prior to the Effective Time shall remain outstanding following
the Effective Time and shall be unchanged by the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each share of PFG Common Stock owned directly by SMBK, PFG, or any of their respective wholly owned Subsidiaries (other
than shares in trust accounts, managed accounts, and the like for the benefit of customers or shares held as collateral for outstanding
debt previously contracted) immediately prior to the Effective Time shall be cancelled and retired at the Effective Time without
any conversion thereof, and no payment shall be made with respect thereto (the &ldquo;<B><I>PFG Cancelled Shares</I></B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Holders
of shares of PFG Common Stock shall have such rights to dissent from the Merger and obtain payment of the fair value of their
shares as are afforded to such Person by Chapter 23 of the TBCA. Notwithstanding anything in this Agreement to the contrary, all
shares of PFG Common Stock that are issued and outstanding immediately prior to the Effective Time and which are held by a shareholder
who did not vote in favor of the Merger (or consent thereto in writing) and who is entitled to demand and properly demands the
fair value of such shares pursuant to, and who complies in all respects with, the provisions of Chapter 23 of the TBCA, shall
not be converted into or be exchangeable for the right to receive the Merger Consideration (the &ldquo;<B><I>Dissenting Shares</I></B>&rdquo;),
but instead the holder of such Dissenting Shares (hereinafter called a &ldquo;<B><I>Dissenting Shareholder</I></B>&rdquo;) shall
be entitled to payment of the fair value of such shares in accordance with the applicable provisions of the TBCA (and at the Effective
Time, such Dissenting Shares shall no longer be outstanding and shall automatically be cancelled and shall cease to exist and
such holder shall cease to have any rights with respect thereto, except the rights provided for pursuant to the applicable provisions
of the TBCA and this <U>Section 2.01(c)</U>), unless and until such Dissenting Shareholder shall have failed to perfect such holder&rsquo;s
right to receive, or shall have effectively withdrawn or lost rights to demand or receive, the fair value of such shares of PFG
Common Stock under the applicable provisions of the TBCA. If any Dissenting Shareholder shall fail to perfect or effectively withdraw
or lose such Holder&rsquo;s dissenter&rsquo;s rights under the applicable provisions of the TBCA, each such Dissenting Share shall
be deemed to have been converted into and to have become exchangeable for the right to receive the Merger Consideration, without
any interest thereon, in accordance with the applicable provisions of this Agreement. PFG shall give SMBK (i) prompt notice of
any written notices to exercise dissenters&rsquo; rights in respect of any shares of PFG Common Stock, attempted withdrawals of
such notices and any other instruments served pursuant to the TBCA and received by PFG relating to dissenters&rsquo; rights and
(ii) the opportunity to participate in negotiations and proceedings with respect to demands for fair value under the TBCA. PFG
shall not, except with the prior written consent of SMBK, voluntarily make any payment with respect to, or settle, or offer or
agree to settle, any such demand for payment. Any portion of the Merger Consideration made available to the Exchange Agent pursuant
to this <U>Article II</U> to pay for shares of PFG Common Stock for which dissenters&rsquo; rights have been perfected shall be
returned to SMBK upon demand.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
share of PFG Stock (excluding Dissenting Shares and PFG Cancelled Shares) issued and outstanding at the Effective Time shall cease
to be outstanding and shall be converted, in accordance with the terms of this <U>Article II</U>, into and exchanged for the right
to receive (i) an amount of cash equal to the Per Share Cash Consideration and (ii) a number of shares of SMBK Common Stock equal
to the Per Share Stock Consideration, where:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&ldquo;<B><I>Aggregate Cash Consideration</I></B>&rdquo; means an amount equal to $14,595,354.37, <I>minus</I> the amount
of (i) the AAA Dividend, and (ii) the loss, if in excess of $250,000, realized by PFG or its applicable Subsidiary on any Pre-Closing
Divestiture.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&ldquo;<B><I>Aggregate Stock Consideration</I></B>&rdquo; means 1,292,592.556 shares of SMBK Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&ldquo;<B><I>Outstanding Shares Number</I></B>&rdquo; means the number of shares of PFG Common Stock issued and outstanding
as of the Effective Time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iv)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&ldquo;<B><I>Per Share Cash Consideration</I></B>&rdquo; means an amount of cash equal to the quotient obtained by dividing
(A) the Aggregate Cash Consideration by (B) the Outstanding Shares Number.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(v)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>&ldquo;<B><I>Per Share Stock Consideration</I></B>&rdquo; means a number of shares of SMBK Common Stock obtained by dividing
(A) the Aggregate Stock Consideration by (B) the Outstanding Shares Number.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.02<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Rights as Shareholders; Stock Transfers</U>. At the Effective Time, all shares of PFG Common Stock, when converted in
accordance with <U>Section 2.01</U>, shall no longer be outstanding and shall automatically be cancelled and retired and shall
cease to exist, and each Certificate or Book-Entry Share previously evidencing such shares shall thereafter represent only the
right to receive for each such share of PFG Common Stock, the Merger Consideration and any cash in lieu of fractional shares of
SMBK Common Stock in accordance with this <U>Article II</U>. At the Effective Time, holders of PFG Common Stock shall cease to
be, and shall have no rights as, shareholders of PFG, other than the right to receive the Merger Consideration and cash in lieu
of fractional shares of SMBK Common Stock as provided under this <U>Article II</U>. At the Effective Time, the stock transfer books
of PFG shall be closed, and there shall be no registration of transfers on the stock transfer books of PFG of shares of PFG Common
Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.03<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Fractional Shares</U>. Notwithstanding any other provision hereof, no fractional shares of SMBK Common Stock and no certificates
or scrip therefor, or other evidence of ownership thereof, will be issued in the Merger. In lieu thereof, SMBK shall pay or cause
to be paid to each Holder of a fractional share of SMBK Common Stock, rounded to the nearest one hundredth of a share, an amount
of cash (without interest and rounded to the nearest whole cent) determined by multiplying the fractional share interest in SMBK
Common Stock to which such Holder would otherwise be entitled by the SMBK Average Stock Price.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.04<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Plan of Reorganization</U>. It is intended that the Merger shall qualify as a &ldquo;reorganization&rdquo; within the
meaning of Section 368(a) of the Code and the Regulations promulgated thereunder, and it is intended that this Agreement shall
constitute a &ldquo;plan of reorganization&rdquo; as that term is used in Sections 354 and 361 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.05<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Exchange Procedures</U>. As promptly as practicable after the Effective Time, the Exchange Agent will mail or otherwise
cause to be delivered to each Holder appropriate and customary transmittal materials, which shall specify that delivery shall be
effected, and risk of loss and title to the Certificates or Book-Entry Shares shall pass, only upon delivery of the Certificates
or Book-Entry Shares to the Exchange Agent, as well as instructions for use in effecting the surrender of the Certificates or Book-Entry
Shares in exchange for the Merger Consideration (including cash in lieu of fractional shares) as provided for in this Agreement
(the &ldquo;<B><I>Letter of Transmittal</I></B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.06<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Deposit and Delivery of Merger Consideration</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Prior to the Effective Time, SMBK shall (i) deposit, or shall cause to be deposited, with the Exchange Agent stock certificates
representing the number of shares of SMBK Common Stock and cash sufficient to deliver the Merger Consideration (together with,
to the extent then determinable, any cash payable in lieu of fractional shares pursuant to <U>Section 2.04</U>, and if applicable,
cash in an aggregate amount sufficient to make the appropriate payment to the Holders of Dissenting Shares) (collectively, the
&ldquo;<B><I>Exchange Fund</I></B>&rdquo;), and (ii) instruct the Exchange Agent to pay such Merger Consideration and cash in lieu
of fractional shares in accordance with this Agreement as promptly as practicable after the Effective Time and conditioned upon
receipt of a properly completed Letter of Transmittal. The Exchange Agent and SMBK, as the case may be, shall not be obligated
to deliver the Merger Consideration to a Holder to which such Holder would otherwise be entitled as a result of the Merger until
such Holder surrenders the Certificates or Book-Entry Shares representing the shares of PFG Common Stock for exchange as provided
in this <U>Article II</U>, or an appropriate affidavit of loss and indemnity agreement and/or a bond in such amount as may be reasonably
required in each case by SMBK or the Exchange Agent.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Any
portion of the Exchange Fund that remains unclaimed by a Holder for one year after the Effective Time (as well as any interest
or proceeds from any investment thereof) shall be delivered by the Exchange Agent to SMBK. Any Holder who have not theretofore
complied with this <U>Section 2.06</U> shall thereafter look only to SMBK for the Merger Consideration, any cash in lieu of fractional
shares of PFG Common Stock to be issued or paid in consideration therefor, and any dividends or distributions to which such Holder
is entitled in respect of each share of PFG Common Stock such Holder held immediately prior to the Effective Time, as determined
pursuant to this Agreement, in each case without any interest thereon. If outstanding Certificates or Book-Entry Shares for shares
of PFG Common Stock are not surrendered or the payment for them is not claimed prior to the date on which such shares of SMBK
Common Stock or cash would otherwise escheat to or become the property of any Governmental Authority, the unclaimed items shall,
to the extent permitted by the law of abandoned property and any other applicable Law, become the property of SMBK (and to the
extent not in its possession shall be delivered to it), free and clear of all claims or interest of any Person previously entitled
to such property. Neither the Exchange Agent nor any Party shall be liable to any Holder represented by any Certificate or Book-Entry
Share for any amounts delivered to a public official pursuant to applicable abandoned property, escheat, or similar Laws. SMBK
and the Exchange Agent shall be entitled to rely upon the stock transfer books of PFG to establish the identity of those Persons
entitled to receive the Merger Consideration specified in this Agreement, which books shall be conclusive with respect thereto.
In the event of a dispute with respect to ownership of any shares of PFG Common Stock represented by any Certificate or Book-Entry
Share, SMBK and the Exchange Agent shall be entitled to tender to the custody of any court of competent jurisdiction any Merger
Consideration represented by such Certificate or Book-Entry Share and file legal proceedings interpleading all parties to such
dispute, and will thereafter be relieved with respect to any claims thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>SMBK
or the Exchange Agent, as applicable, shall be entitled to deduct and withhold from any amounts otherwise payable pursuant to
this Agreement to any Holder such amounts as SMBK is required to deduct and withhold under applicable Law. Any amounts so deducted
and withheld shall be remitted to the appropriate Governmental Authority and upon such remittance shall be treated for all purposes
of this Agreement as having been paid to the Holder in respect of which such deduction and withholding was made by SMBK or the
Exchange Agent, as applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.07<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Rights of Certificate Holders after the Effective Time</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>All
shares of SMBK Common Stock to be issued pursuant to the Merger shall be deemed issued and outstanding as of the Effective Time
and if ever a dividend or other distribution is declared by SMBK in respect of the SMBK Common Stock, the record date for which
is at or after the Effective Time, that declaration shall include dividends or other distributions in respect of all shares of
SMBK Common Stock issuable pursuant to this Agreement. No dividends or other distributions in respect of the SMBK Common Stock
shall be paid to any Holder of any unsurrendered Certificate or Book-Entry Share until such Certificate or Book-Entry Share is
surrendered for exchange in accordance with this <U>Article II</U>. Subject to the effect of applicable Laws, following surrender
of any such Certificate or Book-Entry Share, there shall be issued and/or paid to the Holder of the certificates representing
whole shares of SMBK Common Stock issued in exchange therefor, without interest, (i) at the time of such surrender, the dividends
or other distributions with a record date after the Effective Time theretofore payable with respect to such whole shares of SMBK
Common Stock and not paid and (ii) at the appropriate payment date, the dividends or other distributions payable with respect
to such whole shares of SMBK Common Stock with a record date after the Effective Time but with a payment date subsequent to surrender.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
the event of a transfer of ownership of a Certificate representing PFG Common Stock that is not registered in the stock transfer
records of PFG, the proper amount of cash and/or shares of SMBK Common Stock shall be paid or issued in exchange therefor to a
person other than the person in whose name the Certificate so surrendered is registered if the Certificate formerly representing
such PFG Common Stock shall be properly endorsed or otherwise be in proper form for transfer and the person requesting such payment
or issuance shall pay any transfer or other similar Taxes required by reason of the payment or issuance to a person other than
the registered Holder of the Certificate or establish to the satisfaction of SMBK that the Tax has been paid or is not applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 2.08<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Anti-Dilution Provisions</U>. If the number of shares of SMBK Common Stock or PFG Common Stock issued and outstanding
prior to the Effective Time shall be increased or decreased, or changed into or exchanged for a different number of kind of shares
or securities, in any such case as a result of a stock split, reverse stock split, stock combination, stock dividend, reclassification,
or similar transaction, or there shall be any extraordinary dividend or distribution with respect to such stock, and the record
date therefor shall be prior to the Effective Time, an appropriate and proportionate adjustment shall be made to the Merger Consideration
to give holders of PFG Common Stock the same economic effect as contemplated by this Agreement prior to such event.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">ARTICLE
III<BR>
REPRESENTATIONS AND WARRANTIES OF PFG</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except as set forth
in the disclosure schedule delivered by PFG to SMBK prior to or concurrently with the execution of this Agreement with respect
to each such section below (the &ldquo;<B><I>PFG Disclosure Schedule</I></B>&rdquo;); provided, that (a) the mere inclusion of
an item in the PFG Disclosure Schedule as an exception to a representation or warranty shall not be deemed an admission by PFG
that such item represents a material exception or fact, event, or circumstance or that such item is reasonably likely to result
in a Material Adverse Effect on PFG and (b) any disclosures made with respect to a section of <U>Article III</U> shall be deemed
to qualify (1) any other section of <U>Article III</U> specifically referenced or cross-referenced and (2) other sections of <U>Article
III</U> to the extent it is reasonably apparent on its face (notwithstanding the absence of a specific cross reference) from a
reading of the disclosure that such disclosure applies to such other sections, PFG hereby represents and warrants to SMBK as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.01<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Organization
and Standing</U>. Each of PFG and its Subsidiaries is (a) an entity duly organized, validly existing, and in good standing under
the laws of the jurisdiction of its incorporation or formation and (b) is duly licensed or qualified to do business and in good
standing in each jurisdiction where its ownership or leasing of property or the conduct of its business requires such qualification,
except where the failure to be so licensed or qualified has not had, and is not reasonably likely to have, a Material Adverse
Effect with respect to PFG. A complete and accurate list of all such jurisdictions described in (a) and (b) is set forth in <U>PFG
Disclosure Schedule 3.01</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.02<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Capital Stock</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><FONT STYLE="background-color: white">The
authorized capital stock of PFG consists of 1,000,000 shares of PFG Common Stock and 1,000,000 shares of preferred stock, no par
value. As of the date hereof, there are 20,721 shares of PFG Common Stock issued and outstanding and no shares of preferred stock
issued and outstanding. There are no shares of PFG Common Stock held by any of PFG&rsquo;s Subsidiaries</FONT> (other than shares
in trust accounts, managed accounts and the like for the benefit of customers)<FONT STYLE="background-color: white">. <U>PFG Disclosure
Schedule 3.02(a)</U> sets forth, as of the date hereof, the name and address, as reflected on the books and records of PFG, of
each Holder, and the number of shares of PFG Common Stock held by each such Holder. The issued and outstanding shares of PFG Common
Stock are duly authorized, validly issued, fully paid, non-assessable, and have not been issued in violation of nor are they subject
to preemptive rights of any PFG shareholder. All shares of PFG&rsquo;s capital stock issued and outstanding have been issued in
compliance with and not in violation of any applicable federal or state securities Laws.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>There
are not outstanding Rights of PFG. There are no outstanding shares of capital stock of any class, or any options, warrants or
other similar rights, convertible or exchangeable securities, &ldquo;phantom stock&rdquo; rights, stock appreciation rights, stock
based performance units, agreements, arrangements, commitments, or understandings to which PFG or any of its Subsidiaries is a
party, whether or not in writing, of any character relating to the issued or unissued capital stock or other securities of PFG
or any of PFG&rsquo;s Subsidiaries or obligating PFG or any of PFG&rsquo;s Subsidiaries to issue (whether upon conversion, exchange
or otherwise) or sell any share of capital stock of, or other equity interests in or other securities of, PFG or any of PFG&rsquo;s
Subsidiaries other than those listed in <U>PFG Disclosure Schedule 3.02(b)</U>. There are no obligations, contingent or otherwise,
of PFG or any of PFG&rsquo;s Subsidiaries to repurchase, redeem or otherwise acquire any shares of PFG Common Stock or capital
stock of any of PFG&rsquo;s Subsidiaries or any other securities of PFG or any of PFG&rsquo;s Subsidiaries or to provide funds
to or make any investment (in the form of a loan, capital contribution, or otherwise) in any such Subsidiary or any other entity.
Except for the PFG Voting Agreements, there are no agreements, arrangements, or other understandings with respect to the voting
of PFG&rsquo;s capital stock and there are no agreements or arrangements under which PFG is obligated to register the sale of
any of its securities under the Securities Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.03<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Subsidiaries</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>PFG
Disclosure Schedule 3.03(a)</U> sets forth a complete and accurate list of all Subsidiaries of PFG, including the jurisdiction
of organization and all jurisdictions in which any such entity is qualified to do business and the number of shares or other equity
interests in such Subsidiary held by PFG. Except as set forth in <U>PFG Disclosure Schedule 3.03(a),</U> (i) PFG owns, directly
or indirectly, all of the issued and outstanding equity securities of each PFG Subsidiary, (ii)&nbsp;no equity securities of any
of PFG&rsquo;s Subsidiaries are or may become required to be issued (other than to PFG) by reason of any contractual right or
otherwise, (iii)&nbsp;there are no contracts, commitments, understandings, or arrangements by which any of such Subsidiaries is
or may be bound to sell or otherwise transfer any of its equity securities (other than to PFG or a Subsidiary of PFG), (iv)&nbsp;there
are no contracts, commitments, understandings or arrangements relating to PFG&rsquo;s rights to vote or to dispose of such securities,
(v)&nbsp;all of the equity securities of each such Subsidiary held by PFG, directly or indirectly, are validly issued, fully paid,
non-assessable and are not subject to preemptive or similar rights, and (vi) all of the equity securities of each Subsidiary that
is owned, directly or indirectly, by PFG or any Subsidiary thereof, are free and clear of all Liens, other than restrictions on
transfer under applicable securities or banking Laws. Neither PFG nor any of its Subsidiaries has any trust preferred securities
or other similar securities outstanding.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Except
as set forth in <U>PFG Disclosure Schedule 3.03(b)</U>, neither PFG nor any of PFG&rsquo;s Subsidiaries owns any stock or equity
interest in any depository institution (as defined in 12 U.S.C. Section 1813(c)(1)) other than Progressive Bank. Except as set
forth in <U>PFG Disclosure Schedule 3.03(b)</U>, neither PFG nor any of Subsidiary of PFG beneficially owns, directly or indirectly
(other than in a bona fide fiduciary capacity or in satisfaction of a debt previously contracted), any equity securities or similar
interests of any Person, or any interest in a partnership or joint venture of any kind.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.04<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Corporate
Power; Minute Books.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
and each of its Subsidiaries has the corporate or similar power and authority to carry on its business as it is now being conducted
and to own all of its properties and assets; and PFG has the corporate power and authority to execute, deliver, and perform its
obligations under this Agreement and to consummate the transactions contemplated hereby, subject to receipt of all necessary approvals
of Governmental Authorities, the Regulatory Approvals, and the Requisite PFG Shareholder Approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
has made available to SMBK a complete and correct copy of its charter and bylaws or equivalent organizational documents, each
as amended to date, of PFG and each of its Subsidiaries, the minute books of PFG and each of its Subsidiaries, and the stock ledgers
and stock transfer books of PFG and each of its Subsidiaries. Neither PFG nor any of its Subsidiaries is in violation of any of
the terms of its charter, bylaws, or equivalent organizational documents. The minute books of PFG and each of its Subsidiaries
contain records of all meetings held by, and all other corporate or similar actions of, their respective shareholders and boards
of directors (including committees of their respective boards of directors) or other governing bodies, which records are complete
and accurate in all material respects. The stock ledgers and the stock transfer books of PFG and each of its Subsidiaries contain
complete and accurate records of the ownership of the equity securities of PFG and each of its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.05<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Corporate Authority</U>. Subject only to the receipt of the Requisite PFG Shareholder Approval at the PFG Meeting, this
Agreement and the transactions contemplated hereby have been authorized by all necessary corporate action of PFG and the board
of directors of PFG on or prior to the date hereof. The board of directors of PFG has directed that this Agreement be submitted
to PFG&rsquo;s shareholders for approval at a meeting of the shareholders and, except for the receipt of the Requisite PFG Shareholder
Approval in accordance with the TBCA and PFG&rsquo;s charter and bylaws, no other vote or action of the shareholders of PFG is
required by Law, the charter or bylaws of PFG or otherwise to approve this Agreement and the transactions contemplated hereby.
PFG has duly executed and delivered this Agreement and, assuming due authorization, execution and delivery by SMBK, this Agreement
is a valid and legally binding obligation of PFG, enforceable in accordance with its terms (except to the extent that validity
and enforceability may be limited by applicable bankruptcy, insolvency, reorganization, moratorium, fraudulent transfer or similar
Laws affecting the enforcement of creditors&rsquo; rights generally or by general principles of equity or by principles of public
policy (the &ldquo;<B><I>Enforceability Exception</I></B>&rsquo;&rsquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.06<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Regulatory Approvals; No Defaults</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>No consents or approvals of, or waivers by, or filings or registrations with, any Governmental Authority are required to
be made or obtained by PFG or any of its Subsidiaries in connection with the execution, delivery, or performance by PFG of this
Agreement or to consummate the transactions contemplated by this Agreement, except as may be required for (i) filings of applications
or notices with, and consents, approvals or waivers by the FRB, the FDIC, the Tennessee Department of Financial Institutions (the
&ldquo;<B><I>TDFI</I></B>&rdquo;), and other banking, regulatory, self-regulatory, or enforcement authorities or any courts, administrative
agencies, or commissions or other Governmental Authorities and approval of or non-objection to such applications, filings, and
notices (the &ldquo;<B><I>Regulatory Approvals</I></B>&rdquo;), (ii) the filing with the SEC of the Proxy Statement-Prospectus
and the Registration Statement and declaration of effectiveness of the Registration Statement, (iii) the filing of the Articles
of Merger contemplated by <U>Section 1.04(a)</U> and the filing of documents with the FDIC, the TDFI, or other applicable Governmental
Authorities, and the Secretary of State of the State of Tennessee to cause the Bank Merger to become effective and (iv) such filings
and approvals as are required to be made or obtained under the securities or &ldquo;Blue Sky&rdquo; laws of various states in connection
with the issuance of the shares of SMBK Common Stock pursuant to this Agreement and approval of listing of such SMBK Common Stock
on the NASDAQ. Subject to the receipt of the consents, approvals, and waivers referred to in the preceding sentence, the Requisite
PFG Shareholder Approval and as set forth on <U>PFG Disclosure Schedule 3.06(a)</U>, the execution, delivery, and performance of
this Agreement and the consummation of the transactions contemplated hereby by PFG do not and will not (1) constitute a breach
or violation of, or a default under, the charter, bylaws or similar governing documents of PFG or any of its respective Subsidiaries,
(2) violate any statute, code, ordinance, rule, regulation, judgment, order, writ, decree, or injunction applicable to PFG or any
of its Subsidiaries, or any of their respective properties or assets, (3) conflict with, result in a breach or violation of any
provision of, or the loss of any benefit under, or a default (or an event which, with or without notice or lapse of time, or both,
would constitute a default) under, result in the creation of any Lien under, result in a right of termination or the acceleration
of any right or obligation (which, in each case, would have a material impact on PFG or could reasonably be expected to result
in a financial obligation or penalty in excess of $50,000) under any permit, license, credit agreement, indenture, loan, note,
bond, mortgage, reciprocal easement agreement, lease, instrument, concession, contract, franchise, agreement, or other instrument
or obligation of PFG or any of its Subsidiaries or to which PFG or any of its Subsidiaries, or their respective properties or assets
is subject or bound, or (4) require the consent or approval of any third party or Governmental Authority under any such Law, rule
or regulation or any judgment, decree, order, permit, license, credit agreement, indenture, loan, note, bond, mortgage, reciprocal
easement agreement, lease, instrument, concession, contract, franchise, agreement or other instrument or obligation, except where
the failure to obtain the consent or approval would not be reasonably expected to have a material impact on PFG or result in a
material financial penalty.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>As
of the date hereof, PFG has no Knowledge of any reason (i) why the Regulatory Approvals referred to in <U>Section 6.01(b)</U>
will not be received in customary time frames from the applicable Governmental Authorities having jurisdiction over the transactions
contemplated by this Agreement or (ii) why any Burdensome Condition would be imposed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.07<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Financial
Statements; Internal Controls</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
has previously delivered or made available to SMBK copies of PFG&rsquo;s (i) audited consolidated financial statements (including
the related notes and schedules thereto) for the years ended December 31, 2018, 2017 and 2016, accompanied by the unqualified
audit reports of Mauldin &amp; Jenkins LLP, independent registered accountants (collectively, the &ldquo;<B><I>Audited Financial
Statements</I></B>&rdquo;) and (ii) unaudited interim consolidated financial statements (including the related notes and schedules
thereto) for the nine months ended September 30, 2019 (the &ldquo;<B><I>Unaudited Financial Statements</I></B>&rdquo; and collectively
with the Audited Financial Statements, the &ldquo;<B><I>Financial Statements</I></B>&rdquo;). The Financial Statements (including
any related notes and schedules thereto) are accurate and complete in all material respects and fairly present in all material
respects the financial condition and the results of operations, changes in shareholders&rsquo; equity, and cash flows of PFG and
its consolidated Subsidiaries as of the respective dates of and for the periods referred to in such financial statements, all
in accordance with GAAP, consistently applied, subject, in the case of the Unaudited Financial Statements, to normal, recurring
year-end adjustments (the effect of which has not had, and would not reasonably be expected to have, individually or in the aggregate,
a Material Adverse Effect with respect to PFG) and the absence of notes and schedules (that, if presented, would not differ materially
from those included in the Audited Financial Statements). No financial statements of any entity or enterprise other than PFG&rsquo;s
Subsidiaries are required by GAAP to be included in the consolidated financial statements of PFG. The audits of PFG have been
conducted in accordance with GAAP. Since December 31, 2018, neither PFG nor any of its Subsidiaries has any liabilities or obligations
of a nature that would be required by GAAP to be set forth on its consolidated balance sheet or in the notes thereto except for
liabilities reflected or reserved against in the Financial Statements and current liabilities incurred in the Ordinary Course
of Business since December 31, 2018. True, correct and complete copies of the Financial Statements have been provided to SMBK
prior to the date hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
records, systems, controls, data, and information of PFG and its Subsidiaries are recorded, stored, maintained, and operated under
means (including any electronic, mechanical, or photographic process, whether computerized or not) that are under the exclusive
ownership and direct control of PFG or its Subsidiaries or accountants (including all means of access thereto and therefrom).
PFG and its Subsidiaries have devised and maintain a system of internal accounting controls sufficient to provide reasonable assurances
regarding the reliability of financial reporting and the preparation of financial statements in accordance with GAAP. PFG has
disclosed based on its most recent evaluations, to its outside auditors and the audit committee of the board of directors of PFG
(i) all significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting
which are reasonably likely to adversely affect PFG&rsquo;s ability to record, process, summarize and report financial data and
(ii) any fraud, whether or not material, that involves management or other employees who have a significant role in PFG&rsquo;s
internal control over financial reporting. PFG has made available to SMBK a summary of any such disclosure made by management
to the auditor and/or audit committee of PFG or any Subsidiary.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Except
as set forth in <U>PFG Disclosure Schedule 3.07(c)</U>, since January 1, 2016, neither PFG nor any of its Subsidiaries nor, to
PFG&rsquo;s Knowledge, any director, officer, employee, auditor, accountant or representative of PFG or any of its Subsidiaries
has received, or otherwise had or obtained Knowledge of, any material complaint, allegation, assertion, or claim regarding the
accounting or auditing practices, procedures, methodologies, or methods of PFG or any of its Subsidiaries or their respective
internal accounting controls, including any material complaint, allegation, assertion, or claim that PFG or any of its Subsidiaries
has engaged in questionable accounting or auditing practices.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.08<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Regulatory
Reports</U>. Since January 1, 2016, PFG and its Subsidiaries have timely filed with the FRB, the FDIC, the TDFI and any other
applicable Governmental Authority, in correct form, the material reports, registration statements, and other documents required
to be filed under applicable Laws and regulations and have paid all fees and assessments due and payable in connection therewith,
and such reports and other documents were complete and accurate and in compliance in all material respects with the requirements
of applicable Laws and regulations. Other than normal examinations conducted by a Governmental Authority in the Ordinary Course
of Business, no Governmental Authority has notified PFG or any of its Subsidiaries that it has initiated any proceeding or, to
the Knowledge of PFG, threatened an investigation into the business or operations of PFG or any of its Subsidiaries since January
1, 2016. There is no material and unresolved violation, criticism, or exception by any Governmental Authority with respect to
any report or statement relating to any examinations or inspections of PFG or any of its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.09<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Absence of Certain Changes or Events</U>. Except as set forth in <U>PFG Disclosure Schedule 3.09,</U> the Financial Statements,
or as otherwise contemplated by this Agreement, since December 31, 2018, (a) PFG and its Subsidiaries have carried on their respective
businesses in all material respects in the Ordinary Course of Business, (b) there have been no events, changes, or circumstances
which have had, or are reasonably likely to have, individually or in the aggregate, a Material Adverse Effect with respect to PFG,
and (c) neither PFG nor any of its Subsidiaries has taken any action or failed to take any action prior to the date of this Agreement
which action or failure, if taken after the date of this Agreement, would constitute a material breach or violation of any of the
covenants and agreements set forth in <U>Section 5.01(i)</U>, <U>Section 5.01(ii)</U>, <U>Section 5.01(iii)</U>, <U>Section 5.01(v)</U>,
<U>Section 5.01(vii)</U>, <U>Section 5.01(viii)</U>, <U>Section 5.01(x)</U>, <U>Section 5.01(xi)</U>, <U>Section 5.01(xxi),</U>
or <U>Section 5.01(xxv)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.10<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Legal Proceedings</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Except
as set forth on <U>PFG Disclosure Schedule 3.10(a)</U>, there are no material civil, criminal, administrative or regulatory actions,
suits, demand letters, demands for indemnification, claims, hearings, notices of violation, arbitrations, investigations, orders
to show cause, market conduct examinations, notices of non-compliance, or other proceedings of any nature pending or, to the Knowledge
of PFG, threatened against PFG or any of its Subsidiaries or any of their current or former directors or executive officers in
their capacities as such, or to which PFG or any of its Subsidiaries or any of their current or former directors or executive
officers, in their capacities as such, is a party, including without limitation, any such actions, suits, demand letters, demands
for indemnification, claims, hearings, notices of violation, arbitrations, investigations, orders to show cause, market conduct
examinations, notices of non-compliance, or other proceedings of any nature that would challenge the validity or propriety of
the transactions contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>There
is no material injunction, order, judgment, or decree or regulatory restriction imposed upon PFG or any of its Subsidiaries, or
the assets of PFG or any of its Subsidiaries (or that, upon consummation of the Merger or the Bank Merger would apply to the Surviving
Entity or any of its Subsidiaries or affiliates), and neither PFG nor any of its Subsidiaries has been advised of the threat of
any such action, other than any such injunction, order, judgement, or decree that is generally applicable to all Persons in businesses
similar to that of PFG or any of PFG&rsquo;s Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.11<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Compliance With Laws</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
and each of its Subsidiaries is, and has been since January 1, 2016, in compliance in all material respects with all Laws, including,
without limitation, Laws related to data protection or privacy, the USA PATRIOT Act, the Bank Secrecy Act, the Equal Credit Opportunity
Act, the Fair Housing Act, the Home Mortgage Disclosure Act, the Community Reinvestment Act, the Fair Credit Reporting Act, the
Truth in Lending Act, the Dodd-Frank Act, Sections 23A and 23B of the Federal Reserve Act, the Sarbanes-Oxley Act or the regulations
implementing such statutes, all other applicable anti-money laundering Laws, fair lending Laws and other Laws relating to discriminatory
lending, financing, leasing, or business practices and all agency requirements relating to the origination, sale, and servicing
of mortgage loans, except where the failure to comply with such Laws would not be reasonably expected to result in a Material
Adverse Effect in respect of PFG or any of its Subsidiaries. Neither PFG nor any of its Subsidiaries has been advised of any supervisory
concerns regarding their compliance with the Bank Secrecy Act or related state or federal anti-money laundering laws, regulations,
and guidelines, including without limitation those provisions of federal regulations requiring (i) the filing of reports, such
as Currency Transaction Reports and Suspicious Activity Reports, (ii) the maintenance of records, and (iii) the exercise of due
diligence in identifying customers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
and each of its Subsidiaries have all material permits, licenses, authorizations, orders, and approvals of, and each has made
all filings, applications, and registrations with, all Governmental Authorities that are required in order to permit it to own
or lease its properties and to conduct its business as presently conducted. All such permits, licenses, certificates of authority,
orders, and approvals are in full force and effect and, to PFG&rsquo;s Knowledge, no suspension or cancellation of any of them
is threatened.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Neither
PFG nor any of its Subsidiaries has received, since January 1, 2016, written or, to PFG&rsquo;s Knowledge, oral notification from
any Governmental Authority (i) asserting that it is materially in non-compliance with any of the Laws which such Governmental
Authority enforces or (ii) threatening to revoke any license, franchise, permit, or governmental authorization, except, in either
case, where the matters referenced in such notification would not be reasonably expected to result in a Material Adverse Effect
in respect of PFG or its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>All
shares of PFG Common Stock issued and outstanding have been issued in compliance in material respects with, and not in material
violation of, any applicable federal or state securities Laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.12<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>PFG
Material Contracts; Defaults</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Except
as set forth in <U>PFG Disclosure Schedule 3.12(a)</U>, neither PFG nor any of its Subsidiaries is a party to, bound by, or subject
to any agreement, contract, arrangement, commitment, or understanding (whether written or oral) (i) which would entitle any present
or former director, officer, employee, consultant, or agent of PFG or any of its Subsidiaries to indemnification from PFG or any
of its Subsidiaries; (ii) which grants any right of first refusal, right of first offer, or similar right with respect to any
assets or properties of PFG or its respective Subsidiaries; (iii) related to the borrowing by PFG or any of its Subsidiaries of
money other than those entered into in the Ordinary Course of Business and any guaranty of any obligation for the borrowing of
money, excluding endorsements made for collection, repurchase or resell agreements, letters of credit and guaranties made in the
Ordinary Course of Business; (iv)&nbsp;which provides for payments to be made by PFG or any of its Subsidiaries upon a change
in control thereof; (v)&nbsp;relating to the lease of personal property having a value in excess of $25,000 individually or $50,000
in the aggregate; (vi) relating to any joint venture, partnership, limited liability company agreement, or other similar agreement
or arrangement; (vii)&nbsp;which relates to capital expenditures and involves future payments in excess of $50,000 individually
or $125,000 in the aggregate; (viii) which relates to the disposition or acquisition of assets or any interest in any business
enterprise outside the Ordinary Course of Business; (ix)&nbsp;which is not terminable on 60 days or less notice and involving
the payment of more than $30,000 per annum; (x) which contains a non-compete, or client or customer non-solicit requirement, or
any other provision that restricts the conduct of any line of business by PFG or any of its Affiliates or upon consummation of
the Merger will restrict the ability of the Surviving Entity or any of its Affiliates to engage in any line of business (including,
for the avoidance of doubt, any exclusivity provision granted in favor of any third party) or which grants any right of first
refusal, right of first offer, or similar right or that limits or purports to limit the ability of PFG or any of its Subsidiaries
(or, following consummation of the transactions contemplated hereby, SMBK or any of its Subsidiaries) to own, operate, sell, transfer,
pledge, or otherwise dispose of any assets or business; or (xi) pursuant to which PFG or any of its Subsidiaries may become obligated
to invest in or contribute capital to any entity. Each contract, arrangement, commitment, or understanding of the type described
in this <U>Section 3.12(a)</U> is listed in <U>PFG Disclosure Schedule 3.12(a)</U> and is referred to herein as a &ldquo;<B><I>PFG
Material Contract</I></B>.&rdquo; PFG has previously made available to SMBK true, complete and correct copies of each such PFG
Material Contract, including any and all amendments and modifications thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
PFG Material Contract is valid and binding on PFG and any of its Subsidiaries to the extent such Subsidiary is a party thereto,
as applicable, and is in full force and effect and enforceable in accordance with its terms (assuming the due execution by each
other party thereto, provided that PFG hereby represents and warrants that, to its Knowledge, each PFG Material Contract is duly
executed by all such parties), subject to the Enforceability Exception and except where the failure to be valid, binding, enforceable,
and in full force and effect, individually or in the aggregate, is not reasonably likely to have a Material Adverse Effect with
respect to PFG; and neither PFG nor any of its Subsidiaries is in default under any PFG Material Contract or other &ldquo;material
contract&rdquo; (as such term is defined in Item 601(b)(10) of Regulation S-K of the SEC), to which it is a party, and there has
not occurred any event that, with the lapse of time or the giving of notice or both, would constitute such a material default.
No power of attorney or similar authorization given directly or indirectly by PFG or any of its Subsidiaries is currently outstanding.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>PFG
Disclosure Schedule 3.12(c)</U> sets forth a true and complete list of all PFG Material Contracts pursuant to which consents,
waivers, or notices are or may be required to be given thereunder, in each case, prior to the performance by PFG of this Agreement
and the consummation of the Merger, the Bank Merger and the other transactions contemplated hereby and thereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.13<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Agreements
with Regulatory Agencies</U>. Neither PFG nor any of its Subsidiaries is subject to any cease-and-desist or other order issued
by, or is a party to any written agreement, consent agreement, or memorandum of understanding with, or is a party to any commitment
letter or similar undertaking to, or is a recipient of any extraordinary supervisory letter from, or is subject to any order or
directive by, or has adopted any board resolutions at the request of any Governmental Authority (each a &ldquo;<B><I>PFG Regulatory
Agreement</I></B>&rdquo;) that restricts, or by its terms will in the future restrict, the conduct of PFG&rsquo;s or any of its
Subsidiaries&rsquo; business or that in any manner relates to their capital adequacy, credit or risk management policies, dividend
policies, management, business, or operations, nor has PFG or any of its Subsidiaries been advised by any Governmental Authority
that it is considering issuing, initiating, ordering, requesting, recommending or otherwise proceeding with (or is considering
the appropriateness of any of the aforementioned actions) any PFG Regulatory Agreement. To PFG&rsquo;s Knowledge, there are no
investigations relating to any regulatory matters pending before any Governmental Authority with respect to PFG or any of its
Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.14<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Brokers;
Fairness Opinion.</U> Neither PFG nor any of its officers, directors or any of its Subsidiaries has employed any broker or finder
or incurred, nor will it incur, any liability for any broker&rsquo;s fees, commissions or finder&rsquo;s fees in connection with
any of the transactions contemplated by this Agreement, except that PFG has engaged, and will pay a fee or commission to Olsen
Palmer LLC (&ldquo;<B><I>PFG Financial Advisor</I></B>&rdquo;), in accordance with the terms of a letter agreement between PFG
Financial Advisor and PFG, a true, complete and correct copy of which has been previously delivered by PFG to SMBK. PFG has received
the opinion of the PFG Financial Advisor (and, when it is delivered in writing, a copy of such opinion will be promptly provided
to SMBK) to the effect that, as of the date of this Agreement and based upon and subject to the qualifications and assumptions
set forth therein, the Merger Consideration is fair, from a financial point of view, to the holders of shares of PFG Common Stock,
and, as of the date of this Agreement, such opinion has not been withdrawn, revoked, or modified.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.15<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Employee
Benefit Plans</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>PFG
Disclosure Schedule 3.15(a)</U> sets forth a true and complete list of each PFG Benefit Plan. For purposes of this Agreement,
&ldquo;<B><I>PFG Benefit Plans</I></B>&rdquo; means all benefit and compensation plans, contracts, policies, or arrangements (i)
covering current or former employees or their beneficiaries and dependents of PFG, any of its Subsidiaries, or any of PFG&rsquo;s
related organizations described in Code Sections 414(b), (c), (m), or (o), or any entity which is considered one employer with
PFG, any of its Subsidiaries, or Controlled Group Members under Section 4001 of ERISA or Section 414 of the Code (&ldquo;<B><I>ERISA
Affiliates</I></B>&rdquo;) (such current employees collectively, the &ldquo;<B><I>PFG Employees</I></B>&rdquo;), (ii) covering
current or former directors or their beneficiaries and dependents of PFG, any of its Subsidiaries, or ERISA Affiliates, or (iii)
with respect to which PFG or any of its Subsidiaries has or may have any liability or contingent liability (including liability
arising from ERISA Affiliates) including, but not limited to, &ldquo;employee benefit plans&rdquo; within the meaning of Section
3(3) of ERISA, health/welfare, employment, severance, change-of-control, fringe benefit, deferred compensation, defined benefit
plan, defined contribution plan, stock option, stock purchase, stock appreciation rights, stock based, incentive, bonus plans,
retirement plans, and other policies, plans, or arrangements whether or not subject to ERISA.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>With
respect to each PFG Benefit Plan, PFG has provided to SMBK true and complete copies of such PFG Benefit Plan, any trust instruments,
insurance contracts, or other funding arrangements forming a part of any PFG Benefit Plans and all amendments thereto, summary
plan descriptions and summary of material modifications, IRS Form 5500 (for the three most recently completed plan years), the
most recent IRS determination, opinion, notification and advisory letters, with respect thereto and any correspondence from any
regulatory agency. In addition, with respect to each of the PFG Benefit Plans for the three most recently completed plan years,
any plan financial statements and accompanying accounting reports, service contracts, fidelity bonds, and employee and participant
annual QDIA notice, safe harbor notice, or fee disclosures notices under 29 CFR 2550.404a-5, and nondiscrimination testing data
and results under Code Sections 105(h), 125, 129, 401(k), and 401(m), as applicable, have been provided to SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>All
PFG Benefit Plans are in compliance in all material respects in form and operation with all applicable Laws, including ERISA and
the Code. Each PFG Benefit Plan which is intended to be qualified under Section&nbsp;401(a) of the Code (&ldquo;<B><I>PFG 401(a)
Plan</I></B>&rdquo;) has received a favorable opinion, determination, or advisory letter from the IRS, and to PFG&rsquo;s Knowledge
there is not any circumstance that could reasonably be expected to result in revocation of any such favorable determination, opinion,
or advisory letter or the loss of the qualification of such PFG 401(a) Plan under Section&nbsp;401(a) of the Code, and nothing
has occurred that would be expected to result in the PFG 401(a) Plan ceasing to be qualified under Section 401(a) of the Code.
All PFG Benefit Plans have been administered in accordance with their terms. There is no pending or, to PFG&rsquo;s Knowledge,
threatened litigation or regulatory action relating to the PFG Benefit Plans. Neither PFG nor any of its Subsidiaries has engaged
in a transaction with respect to any PFG Benefit Plan, including a PFG 401(a) Plan that could subject PFG or any of its Subsidiaries
to a tax or penalty under any Law including, but not limited to, Section&nbsp;4975 of the Code or Section&nbsp;502(i) of ERISA.
No PFG 401(a) Plan has been submitted under or been the subject of an IRS voluntary compliance program submission that is still
outstanding or that has not been fully corrected in accordance with a compliance statement issued by the IRS with respect to any
applicable failures. There are no audits, inquiries or proceedings pending or, to PFG&rsquo;s Knowledge, threatened by the IRS
or the Department of Labor with respect to any PFG Benefit Plan. To PFG's Knowledge, there are no current, pending, or threatened
investigations by the IRS or the Department of Labor with respect to any PFG Benefit Plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>No
liability under Title IV of ERISA has been or is expected to be incurred by PFG, any of its Subsidiaries or any ERISA Affiliates
with respect to any ongoing, frozen or terminated &ldquo;single employer plan,&rdquo; within the meaning of Section&nbsp;4001(a)(15)
of ERISA, currently or formerly maintained by PFG, any of its Subsidiaries, or any ERISA Affiliates. Neither PFG nor any ERISA
Affiliate has ever maintained, sponsored, or contributed to, or been obligated to contribute to a plan subject to Title IV of
ERISA or Section 412 of the Code. None of PFG or any ERISA Affiliate has contributed to (or been obligated to contribute to) a
&ldquo;multiemployer plan&rdquo; within the meaning of Section&nbsp;3(37) of ERISA at any time. Neither PFG nor any of its Subsidiaries
or ERISA Affiliates have incurred, and there are no circumstances under which they could reasonably be expected to incur, liability
under Title IV of ERISA (regardless of whether based on contributions of an ERISA Affiliate). Neither PFG nor any of its Subsidiaries
has ever sponsored, maintained, or participated in a multiple employer welfare arrangement as defined in ERISA Section 3(40).
No notice of a &ldquo;reportable event&rdquo; within the meaning of Section&nbsp;4043 of ERISA has been required to be filed for
any PFG Benefit Plan or by any ERISA Affiliate or will be required to be filed, in either case, in connection with the transactions
contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>All
contributions required to be made with respect to all PFG Benefit Plans have been timely made. No PFG Benefit Plan or single employer
plan of an ERISA Affiliate has an &ldquo;accumulated funding deficiency&rdquo; (whether or not waived) within the meaning of Section
412 of the Code or Section 3012 of ERISA and no ERISA Affiliate has an outstanding funding waiver.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Except
as set forth in <U>PFG Disclosure Schedule 3.15(f)</U>, no PFG Benefit Plan provides life insurance, medical, surgical, hospitalization
or other employee welfare benefits to any PFG Employee, or any of their affiliates, upon or following his or her retirement or
termination of employment for any reason, except as may be required by Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>All
PFG Benefit Plans that are group health plans have been operated in all material respects in compliance with the group health
plan continuation requirements of Section 4980B of the Code and all other applicable sections of ERISA and the Code, and no material
liabilities arising under Code Section 4980H have occurred. PFG may amend or terminate any such PFG Benefit Plan at any time without
incurring any liability thereunder for future benefits coverage at any time after such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(h)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Except
as otherwise provided for in this Agreement or as set forth in <U>PFG Disclosure Schedule 3.15(h)</U>, neither the execution of
this Agreement, shareholder approval of this Agreement, or consummation of any of the transactions contemplated by this Agreement
(individually or in conjunction with any other event) will (i)&nbsp;entitle any current or former PFG Employee to retention or
other bonuses, parachute payments, non-competition payments, or any other payment, (ii) entitle any current or former PFG Employee
to unemployment compensation, severance pay or any increase in severance pay upon any termination of employment, (iii)&nbsp;accelerate
the time of payment or vesting (except as required by Law) or trigger any payment or funding (through a grantor trust or otherwise)
of compensation or benefits under, increase the amount payable or trigger any other obligation pursuant to, any of the PFG Benefit
Plans, (iv)&nbsp;result in any breach or violation of, or a default under, any of the PFG Benefit Plans, (v) result in any payment
of any amount that would, individually or in combination with any other such payment, be an excess &ldquo;parachute payment&rdquo;
to a &ldquo;disqualified individual&rdquo; as those terms are defined in Section 280G of the Code, or (vi)&nbsp;limit or restrict
the right of PFG or, after the consummation of the transactions contemplated hereby, SMBK or any of its Subsidiaries, to merge,
amend or terminate any of the PFG Benefit Plans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Except
as set forth in <U>PFG Disclosure Schedule 3.15(i)</U>, (i) each PFG Benefit Plan that is a non-qualified deferred compensation
plan or arrangement within the meaning of Section 409A of the Code, and any underlying award, is in compliance in all respects
with Section&nbsp;409A of the Code and (ii) no payment or award that has been made to any participant under a PFG Benefit Plan
is subject to the interest and penalties specified in Section 409A(a)(1)(B) of the Code. Neither PFG nor any of its Subsidiaries
(x) has any obligation to reimburse or indemnify any participant in a PFG Benefit Plan for any of the interest or penalties specified
in Section&nbsp;409A(a)(1)(B) of the Code that may be currently due or triggered in the future, or (y) except as set forth in
<U>PFG Disclosure Schedule 3.15(i)</U>, has been required to report to any Governmental Authority any correction or taxes due
as a result of a failure to comply with Section 409A of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(j)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>No
PFG Benefit Plan provides for the gross-up or reimbursement of any Taxes imposed by Section 4999 of the Code or otherwise, and
neither PFG nor any of its Subsidiaries has any obligation to reimburse or indemnify any party for such Taxes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(k)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
has made available to SMBK copies of any Code Section 280G calculations (whether or not final) with respect to the disqualified
individuals referenced in such calculations in connection with the transactions contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(l)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>PFG
Disclosure Schedule 3.15(l)</U> contains a schedule showing the monetary amounts payable or potentially payable, whether individually
or in the aggregate (including good faith estimates of all amounts not subject to precise quantification as of the date of this
Agreement) under any employment, change-in-control, severance, or similar contract, plan, or arrangement with or which covers
any present or former director, officer, employee, or consultant of PFG or any of its Subsidiaries who may be entitled to any
such amount and identifying the types and estimated amounts of the in-kind benefits due under any PFG Benefit Plans (other than
a plan qualified under Section&nbsp;401(a) of the Code) for each such Person, specifying the assumptions in such schedule and
providing estimates of other required contributions to any trusts for any related fees or expenses.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(m)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG and its Subsidiaries have correctly classified in all material respects all individuals who directly or indirectly perform
services for PFG or any of its Subsidiaries for purposes of each PFG Benefit Plan, ERISA, and the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.16<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Labor
Matters</U>. Neither PFG nor any of its Subsidiaries is a party to or bound by any collective bargaining agreement, contract,
or other agreement or understanding with a labor union or labor organization, nor is there any proceeding pending or, to PFG&rsquo;s
Knowledge threatened, asserting that PFG or any of its Subsidiaries has committed an unfair labor practice (within the meaning
of the National Labor Relations Act) or seeking to compel PFG or any of its Subsidiaries to bargain with any labor organization
as to wages or conditions of employment, nor is there any strike or other labor dispute against PFG pending or, to PFG&rsquo;s
Knowledge, threatened, nor to PFG&rsquo;s Knowledge is there any activity involving PFG Employees seeking to certify a collective
bargaining unit or engaging in other organizational activity. To its Knowledge, PFG and its Subsidiaries have correctly classified
all individuals who directly or indirectly perform services for PFG or any of its Subsidiaries for purposes of federal and state
unemployment compensation Laws, workers&rsquo; compensation Laws, and the rules and regulations of the U.S. Department of Labor.
To PFG&rsquo;s Knowledge, no officer of PFG or any of its Subsidiaries is in material violation of any employment contract, confidentiality,
non-competition agreement, or any other restrictive covenant.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.17<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#8239;</FONT><U>Environmental
Matters</U>. (a) To its Knowledge, PFG and its Subsidiaries have been and are in material compliance with all applicable Environmental
Laws, including obtaining, maintaining, and complying with all permits required under Environmental Laws for the operation of
their respective businesses, (b) there is no action or investigation by or before any Governmental Authority relating to or arising
under any Environmental Laws that is pending or, to the Knowledge of PFG, threatened against PFG or any of its Subsidiaries or
any real property or facility presently owned, operated, or leased by PFG or any of its Subsidiaries or any predecessor (including
in a fiduciary or agency capacity), (c) neither PFG nor any of its Subsidiaries has received any notice of or is subject to any
liability, order, settlement, judgment, injunction, or decree involving uncompleted, outstanding, or unresolved requirements relating
to or arising under Environmental Laws, (d) to the Knowledge of PFG, there have been no releases of Hazardous Substances at, on,
under or affecting any of the real properties or facilities presently owned, operated or leased by PFG or any of its Subsidiaries
or any predecessor (including in a fiduciary or agency capacity) in amount or condition that has resulted in or would reasonably
be expected to result in liability to PFG or any of its Subsidiaries relating to or arising under any Environmental Laws, and
(e) to the Knowledge of PFG, there are no underground storage tanks on, in or under any property currently owned, operated or
leased by PFG or any of its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.18<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Tax
Matters</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
of PFG and its Subsidiaries has duly and timely filed (taking into account all applicable extensions) all Tax Returns that it
was required to file under applicable Laws, other than Tax Returns that are not yet due or for which a request for extension was
timely filed consistent with requirements of applicable Law. All such Tax Returns were correct and complete in all material respects
and have been prepared in compliance with all applicable Laws. All Taxes due and owing by PFG or any of its Subsidiaries (whether
or not shown on any Tax Return) have been fully and timely paid. Neither PFG nor any of its Subsidiaries is currently the beneficiary
of any extension of time within which to file any Tax Return. Neither PFG nor any of its Subsidiaries has ever received written
notice of any claim by any Governmental Authority in a jurisdiction where PFG or such Subsidiary does not file Tax Returns that
it is or may be subject to Taxes by that jurisdiction. There are no Liens for Taxes (other than Taxes not yet due and payable
or that are being contested in good faith by appropriate proceedings and for which adequate reserves have been established in
accordance with GAAP) upon any of the assets of PFG or any of its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
and each of its Subsidiaries have properly withheld and paid over to the appropriate Governmental Authority all Taxes required
to have been withheld and paid over in connection with any amounts paid or owing to any employee, independent contractor, creditor,
shareholder, or other Person, and have complied in all material respects with all applicable reporting requirements related to
Taxes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>No
foreign, federal, state, or local Tax audits or administrative or judicial Tax proceedings are currently being conducted or pending
or threatened in writing, in each case, with respect to Taxes of PFG or any of its Subsidiaries. Neither PFG nor any of its Subsidiaries
has received from any foreign, federal, state, or local taxing authority (including jurisdictions where PFG or any of its Subsidiaries
have not filed Tax Returns) any (i)&nbsp;notice indicating an intent to open an audit or other review with respect to Taxes or
(ii)&nbsp;notice of deficiency or proposed adjustment for any amount of Tax proposed, asserted, or assessed by any taxing authority
against PFG or any of its Subsidiaries which, in either case of (i) or (ii), have not been fully paid or settled.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
has delivered or made available to SMBK true and complete copies of the foreign, federal, state, or local Tax Returns filed with
respect to PFG or any of its Subsidiaries, and of all examination reports and statements of deficiencies assessed against or agreed
to by PFG, in each case with respect to income Taxes, for taxable periods ended on or after December 31, 2015.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>With
respect to tax years open for audit as of the date hereof, neither PFG nor any of its Subsidiaries has waived any statute of limitations
in respect of Taxes or agreed to any extension of time with respect to a Tax assessment or deficiency.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Neither
PFG nor any of its Subsidiaries has been a United States real property holding corporation within the meaning of Code Section&nbsp;897(c)(2)
during the applicable period specified in Code Section&nbsp;897(c)(1)(A)(ii). Neither PFG nor any of its Subsidiaries is a party
to or is otherwise bound by any Tax allocation or sharing agreement (other than such an agreement (i) exclusively between or among
PFG and its Subsidiaries or (ii) with customers, vendors, lessors, or similar third parties entered into in the Ordinary Course
of Business and not primarily related to Taxes). PFG (i)&nbsp;has not been a member of an affiliated group filing a consolidated
federal income Tax Return (other than a group the common parent of which was PFG), and (ii)&nbsp;has no liability for the Taxes
of any Person (other than PFG and its Subsidiaries) under Regulations Section&nbsp;1.1502-6 (or any similar provision of foreign,
state, or local Law), as a transferee or successor, by contract, or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
most recent Financial Statements as of the date hereof reflect an adequate reserve, in accordance with GAAP, for all Taxes payable
by PFG and its Subsidiaries for all taxable periods through the date of such Financial Statements. Since December 31, 2017, neither
PFG nor any of its Subsidiaries has incurred any liability for Taxes arising from extraordinary gains or losses, as that term
is used in GAAP, outside the Ordinary Course of Business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(h)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Neither
SMBK, PFG nor any of its Subsidiaries will be required to include any item of income in, or exclude any item of deduction from,
taxable income for any taxable period (or portion thereof) ending after the Effective Time as a result of any: (i)&nbsp;change
in method of accounting pursuant to Section 481 of the Code or any comparable provision under foreign, state, or local Law for
a taxable period ending on or prior to the Closing Date by PFG or any of its Subsidiaries; (ii) &ldquo;closing agreement&rdquo;
as described in Code Section&nbsp;7121 (or any corresponding or similar provision of foreign, state, or local Law) executed on
or prior to the Closing Date by PFG or any of its Subsidiaries; (iii)&nbsp;intercompany transactions or any excess loss account
described in Regulations under Code Section&nbsp;1502 (or any corresponding or similar provision of foreign, state, or local Law);
(iv)&nbsp;installment sale or open transaction disposition made on or prior to the Closing Date by PFG or any of its Subsidiaries;
or (v)&nbsp;prepaid amount received on or prior to the Closing Date by PFG or any of its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Since
January 1, 2016, neither PFG nor any of its Subsidiaries has distributed stock of another Person nor had its stock distributed
by another Person in a transaction that was intended to be nontaxable and governed in whole or in part by Section&nbsp;355 or
Section&nbsp;361 of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(j)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Neither
PFG nor any of its Subsidiaries has been a party to any &ldquo;listed transaction,&rdquo; as defined in Section 6707A(c)(2) of
the Code and Section 1.6011-4(b)(2) of the Regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(k)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Since its formation in 2016, PFG has been a validly electing &ldquo;S corporation&rdquo; (Subchapter S corporation) under
Sections 1361 and 1362 of the Code for federal income Tax purposes, and a valid &ldquo;S corporation&rdquo; in all states that
permit comparable flow-through income Tax treatment for state purposes (whether or not the state requires a separate state election).
No actions or omissions have been committed by PFG, holders of PFG Common Stock or otherwise to cause PFG to cease to so qualify
as an &ldquo;S corporation.&rdquo; At no time has PFG had, within the meaning of Code Section 1361(b) and the Treasury Regulations
thereunder: (i) more than 100 shareholders (taking into account the special rules in Code Section 1361(c)); (ii) any shareholder
who is a person (other than an estate, a trust described in Code Section 1361(c)(2), or an organization described in Code Section
1361(c)(6)) who is not an individual; (iii) any shareholder that is a nonresident alien; or (iv) more than one class of stock.
Neither PFG nor any of its Subsidiaries is a financial institution which uses the reserve method of accounting for bad debts described
in Code 585. Any &ldquo;trust preferred securities&rdquo; issued by PFG or any of its Subsidiaries are properly treated as debt,
rather than equity, for federal income Tax purposes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(l)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Since
the formation of PFG in 2016, each Subsidiary of PFG that otherwise would be taxed as a domestic corporation as that term is defined
in Section 7701(a)(3) and the Regulations thereunder, is and always has been, within the meaning of Section 1361(b)(3) and the
Regulations thereunder, a domestic corporation, a 100% subsidiary of PFG, and a properly electing &lsquo;&lsquo;qualified subchapter
S subsidiary&rsquo;&rsquo; within the meaning of Section 1361(b)(3)(B) of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(m)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
and its Subsidiaries will not be subject to Tax under Code Section 1374 (or any similar provision of Law) in connection with the
transactions contemplated by this Agreement. Neither PFG nor any of its Subsidiaries has, in the past five years, acquired assets
from a C corporation in a transaction in which the Tax basis of PFG or any of its Subsidiaries for the acquired assets was determined,
in whole or in part, by reference to the Tax basis of the acquired assets in the hands of the transferor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(n)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Neither
PFG nor any of its Subsidiaries (i) is a &ldquo;controlled foreign corporation&rdquo; as defined in Section 957 of the Code, (ii)
is a &ldquo;passive foreign investment company&rdquo; within the meaning of Section 1297 of the Code, or (iii) has a permanent
establishment (within the meaning of an applicable Tax treaty) or otherwise has an office or fixed place of business in a country
other than the United States of America.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(o)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Neither
PFG nor any of its Subsidiaries has taken or agreed to take any action, and to the Knowledge of PFG there is no fact or circumstance,
that would be reasonably likely to prevent the Merger from qualifying for U.S. federal income tax purposes as a &ldquo;reorganization&rdquo;
within the meaning of Section 368(a) of the Code.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.19<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Investment
Securities</U>. <U>PFG Disclosure Schedule 3.19</U> sets forth as of July 31, 2019, the PFG Investment Securities, as well as
any purchases or sales of PFG Investment Securities between December 31, 2018 to and including July 31, 2019, reflecting with
respect to all such securities, whenever purchased or sold, descriptions thereof, CUSIP numbers, designations as securities &ldquo;available
for sale&rdquo; or securities &ldquo;held to maturity&rdquo; (as those terms are used in ASC&nbsp;320), book values, fair values
and coupon rates, and any gain or loss with respect to any PFG Investment Securities sold during such time period between December
31, 2019 to and including July 31, 2019. Neither PFG nor any of its Subsidiaries owns any of the outstanding equity of any savings
bank, savings and loan association, savings and loan holding company, credit union, bank or bank holding company, insurance company,
mortgage or loan broker, or any other financial institution other than Progressive Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.20<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Derivative Transactions</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>All Derivative Transactions entered into by PFG or any of its Subsidiaries or for the account of any of its customers were
entered into in accordance in all material respects with applicable Laws and regulatory policies of any Governmental Authority,
and in accordance in all material respects with the investment, securities, commodities, risk management, and other policies, practices
and procedures employed by PFG or any of its Subsidiaries, and were entered into with counterparties believed at the time to be
financially responsible and able to understand (either alone or in consultation with its advisers) and to bear the risks of such
Derivative Transactions. PFG and each of its Subsidiaries have duly performed, in all material respects, all of their obligations
under the Derivative Transactions to the extent that such obligations to perform have accrued, and there are no material breaches,
violations, or defaults or allegations or assertions of such by any party thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
Derivative Transaction is listed in <U>PFG Disclosure Schedule 3.20(b)</U>, and the financial position of PFG or its Subsidiaries
under or with respect to each has been reflected in the books and records of PFG or its Subsidiaries in accordance with GAAP,
and no material open exposure of PFG or its Subsidiaries with respect to any such instrument (or with respect to multiple instruments
with respect to any single counterparty) exists, except as set forth in <U>PFG Disclosure Schedule 3.20(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>No
Derivative Transaction, were it to be a Loan held by PFG or any of its Subsidiaries, would be classified as &ldquo;Special Mention,&rdquo;
&ldquo;Substandard,&rdquo; &ldquo;Doubtful,&rdquo; &ldquo;Loss,&rdquo; &ldquo;Classified,&rdquo; &ldquo;Criticized,&rdquo; &ldquo;Credit
Risk Assets,&rdquo; &ldquo;Concerned Loans,&rdquo; &ldquo;Watch List,&rdquo; as such terms are defined by the FDIC&rsquo;s uniform
loan classification standards, or words of similar import.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.21<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Regulatory
Capitalization</U>. PFG and Progressive Bank are &ldquo;well-capitalized,&rdquo; as such term is defined in the applicable state
and federal rules and regulations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.22<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Loans; Nonperforming and Classified Assets</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>PFG
Disclosure Schedule 3.22(a)</U> sets forth all (i) loans, loan agreements, notes, or borrowing arrangements and other extensions
of credit (including, without limitation, leases, credit enhancements, commitments, guarantees, and interest-bearing assets) (collectively,
&ldquo;<B><I>Loans</I></B>&rdquo;) in which PFG or any of its Subsidiaries is a creditor which, as of July 31, 2019, was over
30 days or more delinquent in payment of principal or interest, and (ii) Loans with any director, executive officer or 5% or greater
shareholder of PFG or any of its Subsidiaries, or to the Knowledge of PFG, any affiliate of any of the foregoing. Set forth in
<U>PFG Disclosure Schedule 3.22(a)</U> is a true, correct and complete list of (A) all of the Loans of PFG and its Subsidiaries
that, as of July 31, 2019, were classified as &ldquo;Special Mention,&rdquo; &ldquo;Substandard,&rdquo; &ldquo;Doubtful,&rdquo;
&ldquo;Loss,&rdquo; &ldquo;Classified,&rdquo; &ldquo;Criticized,&rdquo; &ldquo;Credit Risk Assets,&rdquo; &ldquo;Concerned Loans,&rdquo;
&ldquo;Watch List&rdquo; or words of similar import by Progressive Bank, PFG, or any bank examiner, together with the principal
amount of and accrued and unpaid interest on each such Loan and the identity of the borrower thereunder, together with the aggregate
principal amount of such Loans by category of Loan (e.g., commercial, consumer, etc.), and (B) each Loan classified by Progressive
Bank as a Troubled Debt Restructuring as defined by GAAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>PFG
Disclosure Schedule 3.22(b)</U> identifies each asset of PFG or any of its Subsidiaries that as of July 31, 2019 was classified
as other real estate owned (&ldquo;<B><I>OREO</I></B>&rdquo;) and the book value thereof as of July 31, 2019 as well as any assets
classified as OREO between December 31, 2018 and July 31, 2019 and any sales of OREO between December 31, 2018 and July 31, 2019,
reflecting any gain or loss with respect to any OREO sold.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
Loan held in PFG&rsquo;s or any of its Subsidiaries&rsquo; loan portfolio (each a &ldquo;<B><I>PFG Loan</I></B>&rdquo;) (i)&nbsp;is
evidenced by notes, agreements, or other evidences of indebtedness that are true, genuine, and what they purport to be, (ii)&nbsp;to
the extent secured, is and has been secured by valid Liens which have been perfected and (iii)&nbsp; is a legal, valid, and binding
obligation of PFG or any Subsidiary and the obligor named therein, and, assuming due authorization, execution and delivery thereof
by such obligor or obligors, enforceable in accordance with its terms, subject to the Enforceability Exception.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>All
currently outstanding PFG Loans were solicited, originated, and currently exist in material compliance with all applicable requirements
of Law and the notes or other credit or security documents with respect to each such outstanding PFG Loan are complete and correct
in all material respects. There are no oral modifications or amendments or additional agreements related to the PFG Loans that
are not reflected in the written records of PFG or its Subsidiary, as applicable. All such PFG Loans are owned by PFG or its Subsidiaries
free and clear of any Liens other than a blanket lien on qualifying loans provided to the Federal Home Loan Bank of Atlanta. No
claims of defense as to the enforcement of any PFG Loan have been asserted in writing against PFG or any of its Subsidiaries for
which there is a reasonable possibility of a material adverse determination, and PFG has no Knowledge of any acts or omissions
which would give rise to any claim or right of rescission, set-off, counterclaim, or defense for which there is a reasonable possibility
of a material adverse determination to its Subsidiaries. Other than participation loans purchased by PFG or any Subsidiary from
third parties that are described on <U>PFG Disclosure Schedule 3.22(d)</U>, no PFG Loans are presently serviced by third parties
and there is no obligation which could result in any PFG Loan becoming subject to any third party servicing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Neither
PFG nor any of its Subsidiaries is a party to any agreement or arrangement with (or otherwise obligated to) any Person which obligates
PFG or any of its Subsidiaries to repurchase from any such Person any Loan or other asset of PFG or any of its Subsidiaries, unless
there is a material breach of a representation or covenant by PFG or any of its Subsidiaries, and none of the agreements pursuant
to which PFG or any of its Subsidiaries has sold Loans or pools of Loans or participations in Loans or pools of Loans contains
any obligation to repurchase such Loans or interests therein solely on account of a payment default by the obligor on any such
Loan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Neither
PFG nor any of its Subsidiaries is now nor has it ever been since January 1, 2016, subject to any fine, suspension, settlement,
or other contract or other administrative agreement or sanction by, or any reduction in any loan purchase commitment from, any
Governmental Authority relating to the origination, sale or servicing of mortgage or consumer Loans.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.23<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Allowance
for Loan and Lease Losses</U>. The allowances for loan and lease losses as reflected in each of (a) the latest balance sheets
included in the Financial Statements and (b) in the balance sheets as of December 31, 2018 included in the Financial Statements,
were, in the opinion of management, as of each of the dates thereof, in compliance in all material respects with PFG and Progressive
Bank&rsquo;s respective existing methodology for determining the adequacy of its allowance for loan and lease losses as well as
the standards established by applicable Governmental Authority, the Financial Accounting Standards Board, and GAAP.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.24<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Trust
Business; Administration of Fiduciary Accounts</U>. Except as set forth on <U>PFG Disclosure Schedule 3.24</U>, Neither PFG nor
any of its Subsidiaries has offered or engaged in providing any individual or corporate trust services or administers any accounts
for which it acts as a fiduciary, including, but not limited to, any accounts in which it serves as a trustee, agent, custodian,
personal representative, guardian, conservator, or investment advisor.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.25<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Investment Management and Related Activities</U>. Except as set forth in <U>PFG Disclosure Schedule 3.25</U>, none of
PFG, any Subsidiary or any of their respective directors, officers, or employees is required to be registered, licensed, or authorized
under the Laws of any Governmental Authority as an investment adviser, a broker or dealer, an insurance agency, a commodity trading
adviser, a commodity pool operator, a futures commission merchant, an introducing broker, a registered representative or associated
person, investment adviser, representative or solicitor, a counseling officer, an insurance agent, a sales person, or in any similar
capacity with a Governmental Authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.26<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#8239;</FONT><U>Repurchase
Agreements</U>. With respect to all agreements pursuant to which PFG or any of its Subsidiaries has purchased securities subject
to an agreement to resell, if any, PFG or any of its Subsidiaries, as the case may be, has a valid, perfected first lien or security
interest in the government securities or other collateral securing the repurchase agreement, and the value of such collateral
equals or exceeds the amount of the debt secured thereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.27<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Deposit
Insurance</U>. The deposits of Progressive Bank are insured by the FDIC in accordance with the Federal Deposit Insurance Act (&ldquo;<B><I>FDIA</I></B>&rdquo;)
to the fullest extent permitted by Law, and Progressive Bank have paid all premiums and assessments and filed all reports required
by the FDIA. No proceedings for the revocation or termination of such deposit insurance are pending or, to PFG&rsquo;s Knowledge,
threatened.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.28<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Community
Reinvestment Act, Anti-money Laundering and Customer Information Security</U>. Neither PFG nor any of its Subsidiaries is a party
to any agreement with any individual or group regarding Community Reinvestment Act matters, and neither PFG nor any of its Subsidiaries
has Knowledge that any facts or circumstances exist which would cause PFG or any of its Subsidiaries: (i)&nbsp;to be deemed not
to be in satisfactory compliance with the Community Reinvestment Act, and the regulations promulgated thereunder, or to be assigned
a rating for Community Reinvestment Act purposes by federal or state bank regulators of lower than &ldquo;satisfactory&rdquo;;
or (ii)&nbsp;to be deemed to be operating in violation of the Bank Secrecy Act and its implementing regulations (31 C.F.R. Part
103), the USA PATRIOT Act, any order issued with respect to anti-money laundering by the U.S. Department of the Treasury&rsquo;s
Office of Foreign Assets Control, or any other applicable anti-money laundering statute, rule or regulation; or (iii)&nbsp;to
be deemed not to be in satisfactory compliance with the applicable privacy of customer information requirements contained in any
federal and state privacy Laws and regulations, including, without limitation, in Title V of the Gramm-Leach-Bliley Act of 1999
and regulations promulgated thereunder. Furthermore, the boards of directors of PFG and its Subsidiaries has implemented an anti-money
laundering program that contains adequate and appropriate customer identification verification procedures that has not been deemed
ineffective by any Governmental Authority and that meets the requirements of Sections 352 and 326 of the USA PATRIOT Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.29<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Transactions
with Affiliates</U>. Except as set forth in <U>PFG Disclosure Schedule 3.29</U>, there are no outstanding amounts payable to or
receivable from, or advances by PFG or any of its Subsidiaries to, and neither PFG nor any of its Subsidiaries is otherwise a
creditor or debtor to (a) any director, executive officer, 5% or greater shareholder of PFG or any of its Subsidiaries or to any
of their respective Affiliates or Associates, other than as part of the normal and customary terms of such person&rsquo;s employment
or service as a director with PFG or any of its Subsidiaries and other than deposits held by Progressive Bank in the Ordinary
Course of Business, or (b) any other Affiliate of PFG or any of its Subsidiaries. Except as set forth in <U>PFG Disclosure Schedule
3.29</U>, neither PFG nor any of its Subsidiaries is a party to any transaction or agreement with any of its respective directors,
executive officers, or other Affiliates. All agreements between Progressive Bank and any of their respective Affiliates (or any
company treated as an affiliate for purposes of such Law) comply, to the extent applicable, with Sections 23A and 23B of the Federal
Reserve Act and Regulation W of the FRB.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.30<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Tangible
Properties and Assets</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>PFG Disclosure Schedule 3.30(a)</U> sets forth a true, correct, and complete list of all real property owned by PFG and
each of its Subsidiaries. Except as set forth in <U>PFG Disclosure Schedule 3.30(a)</U>, PFG or its Subsidiaries has good and marketable
title to, valid leasehold interests in or otherwise legally enforceable rights to use all of the real property, personal property,
and other assets (tangible or intangible), used, occupied, and operated or held for use by it in connection with its business as
presently conducted in each case, free and clear of any Lien, except for (i) statutory Liens for amounts not yet delinquent, and
(ii) easements, rights of way, and other similar Liens that do not materially affect the value or use of the properties or assets
subject thereto or affected thereby or otherwise materially impair business operations at such properties. There is no pending
or, to PFG&rsquo;s Knowledge, threatened legal, administrative, arbitral, or other proceeding, claim, action or governmental or
regulatory investigation of any nature with respect to the real property that PFG or any of its Subsidiaries owns, uses, or occupies
or has the right to use or occupy, now or in the future, including without limitation a pending or threatened taking of any of
such real property by eminent domain. True and complete copies of all deeds or other documentation evidencing ownership of the
real properties set forth in <U>PFG Disclosure Schedule 3.30(a)</U>, and complete copies of the title insurance policies and surveys
for each property, together with any mortgages, deeds of trust, and security agreements to which such property is subject have
been furnished or made available to SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>PFG
Disclosure Schedule 3.30(b)</U> sets forth a true, correct and complete schedule of all leases, subleases, licenses, and other
agreements under which PFG or any of its Subsidiaries uses or occupies or has the right to use or occupy, now or in the future,
real property (the &ldquo;<B><I>Leases</I></B>&rdquo;). Each of the Leases is valid, binding and in full force and effect and
neither PFG nor any of its Subsidiaries has received a written notice of, and otherwise has no Knowledge of any, default or termination
with respect to any Lease. To PFG&rsquo;s Knowledge, there has not occurred any event and no condition exists that would constitute
a termination event or a breach by PFG or any of its Subsidiaries of, or default by PFG or any of its Subsidiaries in, the performance
of any covenant, agreement or condition contained in any Lease. To PFG&rsquo;s Knowledge, no lessor under a Lease is in material
breach or default in the performance of any material covenant, agreement, or condition contained in such Lease. PFG and each of
its Subsidiaries has paid all rents and other charges to the extent due under the Leases. True and complete copies of all Leases
for, or other documentation evidencing ownership of or a leasehold interest in, the properties listed in <U>PFG Disclosure Schedule
3.30(b)</U>, have been furnished or made available to SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>All
buildings, structures, fixtures, building systems and equipment, and all components thereof, including the roof, foundation, load-bearing
walls and other structural elements thereof, heating, ventilation, air conditioning, mechanical, electrical, plumbing and other
building systems, environmental control, remediation and abatement systems, sewer, storm and waste water systems, irrigation and
other water distribution systems, parking facilities, fire protection, security and surveillance systems, and telecommunications,
computer, wiring and cable installations, included in the owned real property or the subject of the Leases are in good condition
and repair (normal wear and tear excepted) and sufficient for the operation of the business of PFG and its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.31<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Intellectual Property</U>. <U>PFG Disclosure Schedule 3.31</U> sets forth a true, complete and correct list of all PFG
Intellectual Property. PFG or its Subsidiaries owns or has a valid license to use all material PFG Intellectual Property, free
and clear of all Liens, royalty or other payment obligations (except for royalties or payments with respect to off-the-shelf Software
at standard commercial rates). The PFG Intellectual Property constitutes all of the Intellectual Property necessary to carry on
the business of PFG and its Subsidiaries as currently conducted. The PFG Intellectual Property is valid and enforceable and has
not been cancelled, forfeited, expired or abandoned, and neither PFG nor any of its Subsidiaries has received notice challenging
the validity or enforceability of PFG Intellectual Property. None of PFG or any of its Subsidiaries is, nor will any of them be
as a result of the execution and delivery of this Agreement or the performance by PFG of its obligations hereunder, in violation
of any licenses, sublicenses and other agreements as to which PFG or any of its Subsidiaries is a party and pursuant to which PFG
or any of its Subsidiaries is authorized to use any third-party patents, trademarks, service marks, copyrights, trade secrets or
computer software, and neither PFG nor any of its Subsidiaries has received notice challenging PFG&rsquo;s or any of its Subsidiaries&rsquo;
license or legally enforceable right to use any such third-party intellectual property rights. The consummation of the transactions
contemplated hereby will not result in the material loss or impairment of the right of PFG or any of its Subsidiaries to own or
use any of PFG Intellectual Property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.32<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Insurance</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>PFG
Disclosure Schedule 3.32(a)</U> identifies all of the insurance policies, binders or bonds currently maintained by PFG and its
Subsidiaries (the &ldquo;<B><I>Insurance Policies</I></B>&rdquo;), including the insurer, policy numbers, amount of coverage,
effective and termination, dates and any pending claims thereunder involving more than $10,000. PFG and each of its Subsidiaries
is insured with reputable insurers against such risks and in such amounts as the management of PFG reasonably has determined to
be prudent in accordance with industry practices. All of the Insurance Policies are in full force and effect, neither PFG nor
any Subsidiary has received notice of cancellation of any of the Insurance Policies or is otherwise aware that any insurer under
any of the Insurance Policies has expressed an intent to cancel any such Insurance Policies, and neither PFG nor any of its Subsidiaries
is in default thereunder, and all claims thereunder have been filed in due and timely fashion in all material respects.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>PFG Disclosure Schedule 3.32(b)</U> sets forth a true, correct and complete description of all bank owned life insurance
(&ldquo;<B><I>BOLI</I></B>&rdquo;) owned by PFG or its Subsidiaries, including the value of its BOLI as of the end of the month
prior to the date hereof. The value of such BOLI is and has been fairly and accurately reflected in the most recent balance sheet
included in the Financial Statements in accordance with GAAP. All BOLI is owned solely by Progressive Bank, no other Person has
any ownership claims with respect to such BOLI or proceeds of insurance derived therefrom and there is no split dollar or similar
benefit under such BOLI. Neither PFG nor any of PFG&rsquo;s Subsidiaries has any outstanding borrowings secured in whole or part
by its BOLI.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.33<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Antitakeover
Provisions</U>. No &ldquo;control share acquisition,&rdquo; &ldquo;business combination moratorium,&rdquo; &ldquo;fair price,&rdquo;
or other form of antitakeover statute or regulation is applicable to this Agreement, the Plan of Merger, and the transactions
contemplated hereby and thereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.34<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>PFG
Information</U>. The information relating to PFG and its Subsidiaries that is provided by or on behalf of PFG for inclusion in
the Proxy Statement-Prospectus and the Registration Statement will not (with respect to the Proxy Statement-Prospectus, as of
the date the Proxy Statement-Prospectus is first mailed to PFG&rsquo;s shareholders and as of the date of the PFG Meeting, and
with respect to the Registration Statement, as of the time the Registration Statement or any amendment or supplement thereto is
declared effective under the Securities Act) contain any untrue statement of a material fact or omit to state a material fact
necessary to make the statements therein, in light of the circumstances in which they are made, not misleading. The portions of
the Proxy Statement-Prospectus relating to PFG and PFG&rsquo;s Subsidiaries and other portions thereof within the reasonable control
of PFG and its Subsidiaries will comply as to form in all material respects with the provisions of the Exchange Act, and the rules
and regulations thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.35<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Transaction
Costs</U>. PFG has provided SMBK with an itemized estimate, determined in good faith after reasonable inquiry, of the investment
banking fees, accounting fees, attorneys&rsquo; fees, and other costs or fees that PFG and its Subsidiaries are reasonably expected
to be paid or accrued through the Closing Date in connection with the Merger and the other transactions contemplated by this Agreement,
exclusive of any costs that may be incurred by PFG as a result of any litigation which may arise in connection with this Agreement
(collectively, &ldquo;<B><I>PFG Expenses</I></B>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.36<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Bank
Holding Company</U>. PFG is regulated as a bank holding company under the Bank Holding Company Act of 1956, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 3.37<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Other Representations or Warranties</U>. Except for the representations and warranties made by PFG in this Article III and for
the disclosures contained in the PFG Disclosure Schedule, neither PFG nor any other Person makes any express or implied representation
or warranty with respect to PFG, its Subsidiaries, or their respective businesses, operations, assets, liabilities, conditions
(financial or otherwise), or prospects, and PFG hereby disclaims any such other representations or warranties. PFG acknowledges
and agrees that neither SMBK nor any other Person has made or is making any express or implied representation or warranty other
than those contained in Article IV and in the SMBK Disclosure Schedule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">ARTICLE
IV<BR>
REPRESENTATIONS AND WARRANTIES OF SMBK</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Except as set forth
in the SMBK Reports or in the disclosure schedule delivered by SMBK to PFG prior to or concurrently with the execution of this
Agreement with respect to each such Section below (the &ldquo;<B><I>SMBK Disclosure Schedule</I></B>&rdquo;); <U>provided</U>,
that (a)&nbsp; the mere inclusion of an item in the SMBK Disclosure Schedule as an exception to a representation or warranty shall
not be deemed an admission by SMBK that such item represents a material exception or fact, event or circumstance or that such item
is reasonably likely to result in a Material Adverse Effect on SMBK, and (b)&nbsp;any disclosures made with respect to a section
of <U>Article&nbsp;IV</U> shall be deemed to qualify (1) any other section of <U>Article&nbsp;IV</U> specifically referenced or
cross-referenced and (2)&nbsp;other sections of <U>Article&nbsp;IV</U> to the extent it is reasonably apparent on its face (notwithstanding
the absence of a specific cross reference) from a reading of the disclosure that such disclosure applies to such other sections,
SMBK hereby represents and warrants to PFG as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.01<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Organization
and Standing</U>. Each of SMBK and its Subsidiaries is (a) an entity duly organized, validly existing and in good standing under
the laws of the jurisdiction of its incorporation or formation and (b) is duly licensed or qualified to do business and in good
standing in each jurisdiction where its ownership or leasing of property or the conduct of its business requires such qualification,
except where the failure to be so licensed or qualified has not had, and is not reasonably likely to have, a Material Adverse
Effect with respect to SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.02<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Capital
Stock</U>. The authorized capital stock of SMBK consists of 40,000,000 shares of SMBK Common Stock, and 2,000,000 shares of preferred
stock. As of the date hereof, 13,961,324 shares of SMBK Common Stock were issued and outstanding, 2,444,155 shares of SMBK Common
Stock were reserved for issuance under employee benefit plans, and no shares of preferred stock were issued and outstanding. The
outstanding shares of SMBK Common Stock have been duly authorized and validly issued and are fully paid, and non-assessable and
have not been issued in violation of nor are they subject to preemptive rights of any SMBK shareholder. The shares of SMBK Common
Stock to be issued pursuant to this Agreement, when issued in accordance with the terms of this Agreement, will be duly authorized,
validly issued, fully paid and non-assessable and will not be subject to preemptive rights. All shares of SMBK&rsquo;s capital
stock issued and outstanding have been issued in compliance with and not in violation of any applicable federal or state securities
Laws. SMBK owns all of the issued and outstanding shares of SmartBank common stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.03<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Corporate
Power.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>SMBK and each of its Subsidiaries has the corporate or similar power and authority to carry on its business as it is now
being conducted and to own all of its properties and assets; and SMBK has the corporate power and authority to execute, deliver
and perform its obligations under this Agreement and to consummate the transactions contemplated hereby, subject to receipt of
all necessary approvals of Governmental Authorities and the Regulatory Approvals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.04<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Corporate
Authority</U>. This Agreement and the transactions contemplated hereby have been authorized by all necessary corporate action
of SMBK on or prior to the date hereof. SMBK has duly executed and delivered this Agreement and, assuming due authorization, execution
and delivery by PFG, this Agreement is a valid and legally binding obligation of SMBK, enforceable in accordance with its terms,
subject to the Enforceability Exception.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.05<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>SEC Documents; Financial Statements</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>SMBK
has filed or furnished all required reports, forms, schedules, registration statements, and other documents with the SEC that
it has been required to file or furnish since January 1, 2016 (the &ldquo;<B><I>SMBK Reports</I></B>&rdquo;) and has paid all
fees and assessments due and payable in connection therewith. As of their respective dates of filing with the SEC (or, if amended
or superseded by a subsequent filing prior to the date hereof, as of the date of such subsequent filing), the SMBK Reports complied
as to form in all material respects with the requirements of the Securities Act or the Exchange Act, as the case may be, and the
rules and regulations of the SEC thereunder applicable to such SMBK Reports, and none of the SMBK Reports when filed with the
SEC, or if amended prior to the date hereof, as of the date of such amendment, contained any untrue statement of a material fact
or omitted to state a material fact required to be stated therein or necessary to make the statements therein, in light of the
circumstances under which they were made, not misleading.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
consolidated financial statements of SMBK (or incorporated by reference) included (or incorporated by reference) in the SMBK Reports
(including the related notes, where applicable) complied as to form, as of their respective dates of filing with the SEC (or,
if amended or superseded by a subsequent filing prior to the date hereof, as of the date of such subsequent filing), in all material
respects, with all applicable accounting requirements and with the published rules and regulations of the SEC with respect thereto
(except, in the case of unaudited statements, as permitted by the rules of the SEC), have been prepared in accordance with GAAP
applied on a consistent basis during the periods involved (except as may be disclosed therein), and fairly present, in all material
respects, the consolidated financial position of SMBK and its Subsidiaries and the consolidated results of operations, changes
in shareholders&rsquo; equity and cash flows of such companies as of the dates and for the periods shown.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.06<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Regulatory
Approvals; No Defaults</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>No
consents or approvals of, or waivers by, or filings or registrations with, any Governmental Authority are required to be made
or obtained by SMBK or any of its Subsidiaries in connection with the execution, delivery, or performance by SMBK of this Agreement
or to consummate the transactions contemplated by this Agreement, including the Bank Merger, except for (i) the Regulatory Approvals,
(ii) the filing with the SEC of the Proxy Statement and the filing and declaration of effectiveness of the Form S-4, (iii) the
filing of the Articles of Merger contemplated by <U>Section 1.04(a)</U> and the filing of documents with the TDFI and the Secretary
of State of the State of Tennessee to cause the Bank Merger to become effective, (iv) such other filings and reports as required
pursuant to the Exchange Act and the rules and regulations promulgated thereunder, or applicable stock exchange requirements,
(v) any consents, authorizations, approvals, filings or exemptions in connection with compliance with the rules and regulations
of any applicable SRO and the rules of the NASDAQ, and (vi) such filings and approvals as are required to be made or obtained
under the securities or &ldquo;Blue Sky&rdquo; laws of various states in connection with the issuance of the shares of SMBK Common
Stock pursuant to this Agreement and approval of listing of such SMBK Common Stock on the NASDAQ. Subject to the receipt of the
approvals referred to in the preceding sentence, the execution, delivery, and performance of this Agreement and the consummation
of the transactions contemplated hereby by SMBK do not and will not, (1)&nbsp;constitute a breach or violation of, or a default
under, the charter and bylaws of SMBK, (2)&nbsp;violate any statute, code, ordinance, rule, regulation, judgment, order, writ,
decree, or injunction applicable to SMBK or any of its Subsidiaries, or any of their respective properties or assets, (3)&nbsp;violate,
result in a breach of any provision of or the loss of any benefit under, constitute a default (or an event which, with notice
or lapse of time, or both, would constitute a default) under, result in the termination of or a right of termination or cancellation
under, accelerate the performance required by, or result in the creation of any Lien upon any of the respective properties or
assets of SMBK or any of its Subsidiaries under, any of the terms, conditions or provisions of any note, bond, mortgage, indenture,
deed of trust, license, lease, contract, agreement, or other instrument or obligation to which SMBK or any of its Subsidiaries
is a party, or by which they or any of their respective properties or assets may be bound.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>As
of the date hereof, SMBK has no Knowledge of any reason (i) why the Regulatory Approvals referred to in <U>Section 6.01(b)</U>
will not be received in customary time frames from the applicable Governmental Authorities having jurisdiction over the transactions
contemplated by this Agreement or (ii) why any Burdensome Condition would be imposed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.07<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>SMBK
Information</U>. The information relating to SMBK and its Subsidiaries that is supplied by or on behalf of SMBK for inclusion
or incorporation by reference in the Proxy Statement-Prospectus and the Registration Statement will not (with respect to the Proxy
Statement-Prospectus, as of the date the Proxy Statement-Prospectus is first mailed to PFG shareholders and as of the date of
the PFG Meeting, and with respect to the Registration Statement, as of the time the Registration Statement or any amendment or
supplement thereto is declared effective under the Securities Act) contain any untrue statement of a material fact or omit to
state a material fact necessary to make the statements therein, in light of the circumstances in which they are made, not misleading;
<I>provided</I>, <I>however</I>, that any information contained in any SMBK Report as of a later date shall be deemed to modify
information as of an earlier date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.08<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Absence
of Certain Changes or Events</U>. Except as reflected or disclosed in SMBK&rsquo;s Annual Report on Form 10-K for the year ended
December 31, 2018 or in the SMBK Reports since December 31, 2018, as filed with the SEC, there has been no change or development
with respect to SMBK and its assets and business or combination of such changes or developments which, individually or in the
aggregate, has had or is reasonably likely to have a Material Adverse Effect with respect to SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.09<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Compliance
with Laws</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>SMBK
is regulated as a bank holding company under the Bank Holding Company Act of 1956, as amended. SMBK and each of its Subsidiaries
is, and has been since January 1, 2016, in compliance in all material respects with all applicable Laws, including, without limitation,
Laws related to data protection or privacy, the USA PATRIOT Act, the Bank Secrecy Act, the Equal Credit Opportunity Act, the Fair
Housing Act, the Home Mortgage Disclosure Act, the Community Reinvestment Act, the Fair Credit Reporting Act, the Truth in Lending
Act, the Dodd-Frank Act, Sections 23A and 23B of the Federal Reserve Act, the Sarbanes-Oxley Act and the regulations implementing
such statutes, all other applicable anti-money laundering Laws, fair lending Laws and other Laws relating to discriminatory lending,
financing, leasing, or business practices and all agency requirements relating to the origination, sale, and servicing of mortgage
loans, except where the failure to comply with such Laws would not be reasonably expected to result in a Material Adverse Effect
in respect of SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
deposit accounts of SmartBank are insured by the FDIC through the Deposit Insurance Fund to the fullest extent permitted by Law,
and all premiums and assessments required to be paid in connection therewith have been paid when due, and no proceedings for the
termination of such insurance are pending or, to SMBK&rsquo;s Knowledge, threatened. SmartBank received a rating of &ldquo;satisfactory&rdquo;
in its most recent examination under the Community Reinvestment Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>SMBK
and each of its Subsidiaries have all material permits, licenses, authorizations, orders, and approvals of, and each has made
all filings and applications and registrations with, all Governmental Authorities that are required in order to permit it to own
or lease its properties and to conduct its business as presently conducted, except where the failure to obtain such permits, licenses,
authorizations, orders, and approvals would not be reasonably likely to have a Material Adverse Effect with respect to SMBK. All
such permits, licenses, certificates of authority, orders, and approvals are in full force and effect and, to SMBK&rsquo;s Knowledge,
no suspension or cancellation of any of them is threatened.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Neither
SMBK nor any of its Subsidiaries has received, since January 1, 2016, written or, to SMBK&rsquo;s Knowledge, oral notification
from any Governmental Authority (i)&nbsp;asserting that it is not in compliance with any of the Laws which such Governmental Authority
enforces or (ii)&nbsp;threatening to revoke any license, franchise, permit or governmental authorization, except where such noncompliance
or threatened revocation is not reasonably likely to have, a Material Adverse Effect with respect to SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.10<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Legal
Proceedings</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">(a)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Neither
SMBK nor any of its Subsidiaries is a party to any, and there are no pending or, to SMBK&rsquo;s knowledge, threatened, legal,
administrative, arbitral or other proceedings, claims, actions, or governmental or regulatory investigations of any nature against
SMBK or any of its Subsidiaries or any of their current or former directors or executive officers in their capacities as such that
is reasonably likely to have a Material Adverse Effect on SMBK, or challenging the validity or propriety of the transactions contemplated
by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">(b)&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;There
is no material injunction, order, judgment, decree, or regulatory restriction (other than regulatory restrictions of general application
to banks and bank holding companies) imposed upon SMBK, any of its Subsidiaries or the assets of SMBK or any of its Subsidiaries
(or that, upon consummation of the Merger or the Bank Merger would apply to the Surviving Entity or any of its Subsidiaries or
affiliates).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 4.11<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Other Representations or Warranties</U>. Except for the representations and warranties made by SMBK in this Article IV and for
the disclosures contained in the SMBK Disclosure Schedule, neither SMBK nor any other Person makes any express or implied representation
or warranty with respect to SMBK, its Subsidiaries or their respective businesses, operations, assets, liabilities, conditions
(financial or otherwise), or prospects, and SMBK hereby disclaims any such other representations or warranties. SMBK acknowledges
and agrees that neither PFG nor any other Person has made or is making any express or implied representation or warranty other
than those contained in Article III and in the PFG Disclosure Schedule.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">ARTICLE
V<BR>
COVENANTS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.01<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Covenants of PFG</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Negative
Covenants</U>. During the period from the date of this Agreement and continuing until the Effective Time or the earlier termination
of this Agreement in accordance with its terms, except as expressly contemplated or permitted by this Agreement (including as
set forth in the PFG Disclosure Schedule), required by Law or with the prior written consent of SMBK (which consent shall not
be unreasonably withheld, conditioned or delayed), PFG shall carry on its business, including the business of each of its Subsidiaries,
in the Ordinary Course of Business in all material respects and consistent with prudent banking practice. Without limiting the
generality of the foregoing, PFG will use commercially reasonable efforts to (i)&nbsp;preserve its business organizations and
assets intact, (ii)&nbsp;keep available to itself and SMBK the present services of the current officers and employees of PFG and
its Subsidiaries, (iii)&nbsp;preserve for itself and SMBK the goodwill of its customers, employees, lessors and others with whom
business relationships exist, and (iv) continue diligent collection efforts with respect to any delinquent loans and, to the extent
within its control, not allow any material increase in delinquent loans. Without limiting the generality of and in furtherance
of the foregoing, from the date of this Agreement until the Effective Time, except (x) as set forth in <U>PFG Disclosure Schedule
5.01</U>, (y) as otherwise expressly required by this Agreement, or (z) consented to in writing by SMBK (which consent shall not
be unreasonably withheld, conditioned, or delayed), PFG shall not and shall not permit its Subsidiaries to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Stock</U>.
(A) Issue, sell, grant, pledge, dispose of, encumber, or otherwise permit to become outstanding, or authorize the creation of,
any additional shares of its stock, any Rights, or any other securities (including units of beneficial ownership interest in any
partnership or limited liability company), or&nbsp;enter into any agreement with respect to the foregoing, or (B)&nbsp;except
as expressly permitted by this Agreement, directly or indirectly change (or establish a record date for changing), adjust, split,
combine, redeem, reclassify, exchange, purchase, or otherwise acquire any shares of its capital stock, or any other securities
(including units of beneficial ownership interest in any partnership or limited liability company) convertible into or exchangeable
for any additional shares of stock or any Rights issued and outstanding prior to the Effective Time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Dividends; Other Distributions</U>. Except for the AAA Dividend and Tax Distributions, make, declare, pay,&nbsp;or&nbsp;set
aside for payment of dividends payable in cash, stock,&nbsp;or&nbsp;property on&nbsp;or&nbsp;in respect of,&nbsp;or declare&nbsp;or&nbsp;make
any distribution on, any shares of its capital stock, except for dividends from wholly owned&nbsp;Subsidiaries&nbsp;to&nbsp;PFG.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Compensation;
Employment Agreements, Etc</U>. Enter into or amend or renew any employment, consulting, compensatory, severance, retention, or
similar agreements or arrangements with any director, officer, or employee of PFG or any of its Subsidiaries, or grant any salary,
wage, or fee increase or increase any employee benefit or pay any incentive or bonus payments, except, in each case, (A)&nbsp;normal
increases in base salary to employees in the Ordinary Course of Business and pursuant to policies currently in effect, <I>provided
that, </I>such increases shall not result in an annual adjustment in base compensation (which includes base salary and any other
compensation other than bonus payments) of more than 5% for any individual or 3% in the aggregate for all employees of PFG or
any of its Subsidiaries other than annual increases in base compensation and year-end bonuses disclosed in <U>PFG Disclosure Schedule
5.01(a)(iii)</U>, (B) as specifically provided for by this Agreement (including, without limitation, as contemplated by <U>Section
5.11</U> of this Agreement), (C) as may be required by Law, (D) to satisfy the contractual obligations existing as of the date
hereof set forth on <U>PFG Disclosure Schedule 3.15(l)</U>, or (E) as otherwise set forth in <U>PFG Disclosure Schedule 5.01(a)(iii)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iv)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Hiring</U>. Hire any person as an employee or officer of PFG or any of its Subsidiaries, except for at-will employment
at an annual rate of base salary not to exceed $75,000 to fill vacancies that may arise from time to time in the Ordinary Course
of Business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(v)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Benefit Plans</U>. Enter into, establish, adopt, amend, modify, or terminate (except (A)&nbsp;as may be required by or
to make consistent with applicable Law, subject to the provision of prior written notice to and consultation with respect thereto
with SMBK, (B)&nbsp;to satisfy contractual obligations existing as of the date hereof and set forth in <U>PFG Disclosure Schedule
5.01(a)(v)</U>, (C) as previously disclosed to SMBK and set forth in <U>PFG Disclosure Schedule 5.01(a)(v)</U>, or (D) as may be
required pursuant to the terms of this Agreement) any PFG Benefit Plan or other pension, retirement, stock option, stock purchase,
savings, profit sharing, deferred compensation, consulting, bonus, group insurance or other employee benefit, incentive or welfare
contract, plan or arrangement, or any trust agreement (or similar arrangement) related thereto, in respect of any current or former
director, officer, or employee of PFG or any of its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(vi)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Transactions
with Affiliates</U>. Except pursuant to agreements or arrangements in effect on the date hereof and set forth in <U>PFG Disclosure
Schedule 5.01(a)(vi)</U>, or renewals of such agreements or arrangements, pay, loan or advance any amount to, or sell, transfer,
or lease any properties or assets (real, personal or mixed, tangible or intangible) to, or enter into any agreement or arrangement
with, any of its officers or directors or any of their immediate family members or any Affiliates or Associates of any of its
officers or directors other than compensation or business expense advancements or reimbursements in the Ordinary Course of Business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(vii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Dispositions</U>.
Except in the Ordinary Course of Business and except for the Pre-Closing Divestitures, sell, license, lease, transfer, mortgage,
pledge, encumber or otherwise dispose of or discontinue any of its rights, assets, deposits, business, or properties or cancel
or release any indebtedness owed to PFG or any of its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(viii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Acquisitions</U>. Acquire or agree to acquire (other than by way of foreclosures or acquisitions of control in a bona
fide fiduciary capacity or in satisfaction of debts previously contracted in good faith, in each case in the Ordinary Course of
Business) all or any portion of the assets, debt, business, deposits, or properties of any other entity or Person, except for purchases
specifically approved by SMBK pursuant to any other applicable paragraph of this <U>Section 5.01</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(ix)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Capital
Expenditures</U>. Make any capital expenditures in amounts exceeding $50,000 individually, or $250,000 in the aggregate, provided
that SMBK shall grant or deny its consent to emergency repairs or replacements necessary to prevent substantial deterioration
of the condition of a property within two Business Days of its receipt of a written request from PFG.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(x)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Governing
Documents</U>. Amend PFG&rsquo;s charter or bylaws or any equivalent documents of PFG&rsquo;s Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xi)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Accounting Methods</U>. Implement or adopt any change in its accounting principles, practices or methods, other than
as may be required by applicable Laws or GAAP or applicable accounting requirements of any Governmental Authority, in each case,
including changes in the interpretation or enforcement thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Contracts</U>.
Except as set forth in <U>PFG Disclosure Schedule 5.01(a)(xii)</U>, enter into, amend, modify, terminate, extend, or waive any
material provision of, any PFG Material Contract, Lease or Insurance Policy, or make any change in any instrument or agreement
governing the terms of any of its securities, or material lease, license or contract, other than normal renewals of contracts,
licenses, and leases without material adverse changes of terms with respect to PFG or any of its Subsidiaries, or enter into any
contract that would constitute a PFG Material Contract if it were in effect on the date of this Agreement, except for any amendments,
modifications or terminations reasonably requested by SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xiii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Claims</U>.
Other than settlement of foreclosure actions in the Ordinary Course of Business, (A) enter into any settlement or similar agreement
with respect to any action, suit, proceeding, order or investigation to which PFG or any of its Subsidiaries is or becomes a party
after the date of this Agreement, which settlement or agreement involves payment by PFG or any of its Subsidiaries of an amount
which exceeds $75,000 individually or $150,000 in the aggregate and/or would impose any material restriction on the business of
PFG or any of its Subsidiaries or (B) waive or release any material rights or claims, or agree or consent to the issuance of any
injunction, decree, order, or judgment restricting or otherwise affecting its business or operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xiv)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Banking
Operations</U>. (A) Enter into any material new line of business, introduce any material new products or services, any material
marketing campaigns or any material new sales compensation or incentive programs or arrangements; (B) change in any material respect
its lending, investment, underwriting, risk and asset liability management, and other banking and operating policies, except as
required by applicable Law, regulation, or policies imposed by any Governmental Authority; (C) make any material changes in its
policies and practices with respect to underwriting, pricing, originating, acquiring, selling, servicing, or buying or selling
rights to service Loans, its hedging practices and policies; and (D) incur any material liability or obligation relating to retail
banking and branch merchandising, marketing, and advertising activities and initiatives except in the Ordinary Course of Business.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xv)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Derivative Transactions</U>. Enter into any Derivative Transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xvi)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Indebtedness</U>.
Incur any indebtedness for borrowed money other than in the Ordinary Course of Business consistent with past practice with a term
not in excess of 12 months (other than creation of deposit liabilities or sales of certificates of deposit in the Ordinary Course
of Business), or incur, assume, or become subject to, whether directly or by way of any guarantee or otherwise, any obligations
or liabilities (absolute, accrued, contingent or otherwise) of any other Person, other than the issuance of letters of credit
in the Ordinary Course of Business and in accordance with the restrictions set forth in <U>Section 5.01(a)(xvi)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xvii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Investment Securities</U>. (i) Other than in accordance with PFG&rsquo;s investment guidelines, acquire, sell, or otherwise
dispose of any debt security or equity investment or any certificates of deposits issued by other banks, nor (ii) change the classification
method for any of the PFG Investment Securities from &ldquo;held to maturity&rdquo; to &ldquo;available for sale&rdquo; or from
&ldquo;available for sale&rdquo; to &ldquo;held to maturity,&rdquo; as those terms are used in ASC 320.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xviii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Deposits</U>. Other than in the Ordinary Course of Business, make any changes to deposit pricing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xix)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Loans</U>.
Except for loans or extensions of credit approved and/or committed as of the date hereof that are listed in <U>PFG Disclosure
Schedule 5.01(a)(xix)</U>, (A) make, renew, renegotiate, increase, extend, or modify any (1) unsecured loan, if the amount of
such unsecured loan, together with any other outstanding unsecured loans made by PFG or any of its Subsidiaries to such borrower
or its Affiliates, would be in excess of $100,000, in the aggregate, (2) loan secured by other than a first lien in excess of
$350,000, (3) loan in excess of FFIEC regulatory guidelines relating to loan to value ratios, (4) loan secured by a first lien
residential mortgage and with no loan policy exceptions in excess of $500,000, (5) secured loan over $750,000, (6) any loan that
is not made in conformity with PFG&rsquo;s ordinary course lending policies and guidelines in effect as of the date hereof, or
(7) loan, whether secured or unsecured, if the amount of such loan, together with any other outstanding loans (without regard
to whether such other loans have been advanced or remain to be advanced), would result in the aggregate outstanding loans to any
borrower of PFG or any of its Subsidiaries (without regard to whether such other loans have been advanced or remain to be advanced)
to exceed $750,000, (B) sell any loan or loan pools in excess of $1,000,000 in principal amount or sale price (other than residential
mortgage loan pools sold in the Ordinary Couse of Business), or (C) acquire any servicing rights, or sell or otherwise transfer
any loan where PFG or any of its Subsidiaries retains any servicing rights. Any loan in excess of the limits set forth in this
<U>Section 5.01(a)(xix)</U> shall require the prior written approval of the President or Chief Credit Officer of SmartBank, which
approval or rejection shall be given in writing within five Business Days after the loan package is delivered to such individual.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xx)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Investments
or Developments in Real Estate</U>. Make any investment or commitment to invest in real estate or in any real estate development
project other than by way of foreclosure or deed in lieu thereof or make any investment or commitment to develop, or otherwise
take any actions to develop any real estate owned by PFG or its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xxi)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Taxes</U>.
Except as required by applicable Law, make or change any Tax election, file any amended Tax Return, enter into any closing agreement
with respect to Taxes, settle or compromise any liability with respect to Taxes, agree to any adjustment of any Tax attribute,
file any claim for a refund of Taxes, or consent to any extension or waiver of the limitation period applicable to any Tax claim
or assessment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xxii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Compliance
with Agreements</U>. Commit any act or omission which constitutes a material breach or default by PFG or any of its Subsidiaries
under any agreement with any Governmental Authority or under any PFG Material Contract, Lease, or other material agreement or
material license to which PFG or any of its Subsidiaries is a party or by which any of them or their respective properties are
bound or under which any of them or their respective assets, business, or operations receives benefits.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xxiii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Environmental Assessments</U>. Foreclose on or take a deed or title to any real estate that could reasonably be expected
to result in any liability to PFG under any Environmental Law without first conducting an ASTM International (&ldquo;<B><I>ASTM</I></B>&rdquo;)
E1527-13 Phase I Environmental Site Assessment (or any applicable successor standard) of the property that satisfies the requirements
of 40 C.F.R. Part 312 (&ldquo;<B><I>Phase I</I></B>&rdquo;), or foreclose on or take a deed or title to any real estate other than
single-family residential properties if such environmental assessment indicates the presence or likely presence of any Hazardous
Substances under conditions that indicate an existing release, a past release, or a material threat of a release of any Hazardous
Substances into structures on the property or into the ground, ground water, or surface water of the property.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xxiv)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Adverse
Actions</U>. Take any action or knowingly fail to take any action not contemplated by this Agreement that is intended or is reasonably
likely to (A) prevent, delay, or impair PFG&rsquo;s ability to consummate the Merger or the transactions contemplated by this
Agreement or (B) agree to take, make any commitment to take, or adopt any resolutions of its board of directors in support of,
any of the actions prohibited by this <U>Section 5.01</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xxv)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Capital
Stock Purchase</U>. Directly or indirectly repurchase, redeem, or otherwise acquire any shares of its capital stock or any securities
convertible into or exercisable for any shares of its capital stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xxvi)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Facilities</U>.
Except as required by Law or set forth in <U>PFG Disclosure Schedule 5.01(a)(xxvi)</U>, file any application or make any contract
or commitment for the opening, relocation, or closing of any, or open, relocate, or close any, branch office, loan production,
or servicing facility or automated banking facility, except for any change that may be requested by SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xxvii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Restructure</U>. Except as disclosed on <U>PFG Disclosure Schedule 5.01(a)(xxvii)</U>, merge or consolidate itself or
any of its Subsidiaries with any other Person, or restructure, reorganize or completely or partially liquidate or dissolve it or
any of its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(xxviii)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Commitments</U>. (A) Enter into any contract with respect to, or otherwise agree or commit to do, or adopt any resolutions
of its board of directors or similar governing body in support of, any of the foregoing or (B) take any action that is intended
or expected to result in any of its representations and warranties set forth in this Agreement being or becoming untrue in any
material respect at any time prior to the Effective Time, or in any of the conditions to the Merger not being satisfied in any
material respect or in a violation of any provision of this Agreement, except, in every case, as may be required by applicable
Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Divestitures</U>.
PFG will (i) use its best efforts to effect the sale, transfer, or redemption of the assets set forth on <U>SMBK Disclosure Schedule
5.01(b)(i)</U> (each sale or transfer, a &ldquo;<B><I>Required Pre-Closing Divestiture</I></B>&rdquo;, and (ii) shall coordinate
in good faith with SMBK regarding the sale, transfer, or redemption of the assets of PFG or its Subsidiaries set forth on <U>SMBK
Disclosure Schedule 5.01(b)(ii)</U> (collectively with the Required Pre-Closing Divestitures, the &ldquo;<B><I>Pre-Closing Divestitures</I></B>&rdquo;).
The terms on which each Pre-Closing Divestiture is effected shall be subject to SMBK&rsquo;s prior written approval, which shall
be not be unreasonably withheld, and, except as approved in writing by SMBK, shall (i) provide for the transferee or redeeming
entity to have no recourse to SMBK, PFG, or any of their Subsidiaries after the transfer or redemption; and (ii) shall include
such other terms as set forth on <U>SMBK Disclosure Schedule 5.01(b)(i)</U> or <U>SMBK Disclosure Schedule 5.01(b)(ii)</U>, as
applicable, with respect to such Pre-Closing Divestitures.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>280G
Shareholder Vote</U>.&nbsp; If the execution of this Agreement, approval by the shareholders of PFG, the consummation of any of
the transactions contemplated hereby (either alone or in conjunction with any other event)&nbsp; would entitle any person who
is a &ldquo;disqualified individual&rdquo; to a &ldquo;parachute payment&rdquo; (as such terms are defined in Section&nbsp;280G
of the Code) absent approval by the shareholders of PFG, then, prior to the Closing,&nbsp; PFG will take all necessary actions&nbsp;
to submit to its shareholders at the PFG Meeting a separate shareholder vote that is not contingent on approval of this Agreement,
in a manner that satisfies the stockholder approval requirements for exemption under Section&nbsp;280G(b)(5)(A)(ii) of the Code
and the regulations promulgated thereunder, the right of each disqualified individual to receive or retain, as applicable, any
payments and benefits to the extent necessary so that no payment or benefit received by such disqualified person shall be deemed
a parachute payment, and to obtain any required waivers or consents from the disqualified individual(s) prior to the vote, so
that such vote shall establish the disqualified individual&rsquo;s right to the payment or benefits (&ldquo;<U>280G Waiver</U>&rdquo;).
In addition, prior to such shareholder vote,&nbsp;PFG shall provide adequate disclosure to all shareholders of&nbsp;PFG entitled
to vote thereon of all material facts concerning all payments that, but for such vote, could be deemed parachute payments under
Section&nbsp;280G of the Code in a manner that satisfies Section&nbsp;280G(b)(5) of the Code (&ldquo;<U>280G Disclosure</U>&rdquo;).
PFG and its shareholders will be responsible for all Liabilities and obligations related to the matters described in this <U>Section&nbsp;5.01(c),
</U>including any claims by disqualified individuals that they are entitled to payment or reimbursement for any related excise
taxes. PFG will provide the 280G Disclosure and the 280G Waiver to SMBK within a reasonable period of time before disseminating
such materials to the disqualified individuals and PFG&rsquo;s shareholders, and will work with SMBK in good faith regarding any
comments provided by SMBK thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.02<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Covenants
of SMBK</U>. From the date hereof until the Effective Time, SMBK shall not and shall not permit any of its Subsidiaries to take
any action or knowingly fail to take any action not contemplated by this Agreement that is intended or is reasonably likely to
(i) prevent, delay or impair SMBK&rsquo;s ability to consummate the Merger or the transactions contemplated by this Agreement
or (ii) agree to take, make any commitment to take, or adopt any resolutions of its board of directors in support of, any of the
actions prohibited by this <U>Section 5.02</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section&nbsp;&nbsp;5.03<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Commercially
Reasonable Efforts</U>. Subject to the terms and conditions of this Agreement, each of the Parties agrees to use commercially
reasonable efforts in good faith to take, or cause to be taken, all actions, and to do, or cause to be done, all things necessary,
proper or advisable under applicable Laws, so as to permit consummation of the transactions contemplated hereby as promptly as
practicable, including the satisfaction of the conditions set forth in <U>Article VI</U>, and shall reasonably cooperate with
the other Party to that end.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.04<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Shareholder Approval</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Following
the execution of this Agreement, PFG shall take, in accordance in all material respects with applicable Law and the charter and
bylaws of PFG, all action necessary to convene a special meeting of its shareholders as promptly as practicable after the Registration
Statement is declared effective by the SEC to consider and vote upon the approval of this Agreement and the transactions contemplated
hereby (including the Merger) and any other matters required to be approved by PFG&rsquo;s shareholders in order to permit consummation
of the Merger and the transactions contemplated hereby (including any adjournment or postponement thereof, the &ldquo;<B><I>PFG
Meeting</I></B>&rdquo;) and shall take all lawful action to solicit such approval by such shareholders. PFG shall use its reasonable
best efforts to obtain the Requisite PFG Shareholder Approval to consummate the Merger and the other transactions contemplated
hereby, and shall ensure that the PFG Meeting is called, noticed, convened, held, and conducted, and that all proxies solicited
by PFG in connection with the PFG Meeting are solicited in compliance in all material respects with the TBCA, the charter and
bylaws of PFG, and all other applicable legal requirements. Except with the prior approval of SMBK, no other matters shall be
submitted for the approval of PFG shareholders at the PFG Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Except
to the extent provided otherwise in <U>Section 5.09</U>, the board of directors of PFG shall at all times prior to and during
the PFG Meeting recommend approval of this Agreement by the shareholders of PFG and the transactions contemplated hereby (including
the Merger) and any other matters required to be approved by PFG&rsquo;s shareholders for consummation of the Merger and the transactions
contemplated hereby (the &ldquo;<B><I>PFG Recommendation</I></B>&rdquo;). In the event that there is present at the PFG Meeting,
in person or by proxy, sufficient favorable voting power to secure the Requisite PFG Shareholder Approval, PFG will not adjourn
or postpone the PFG Meeting unless PFG is advised by counsel that failure to do so would result in a breach of the fiduciary duties
of the board of directors of PFG. PFG shall keep SMBK updated with respect to the proxy solicitation results in connection with
the PFG Meeting as reasonably requested by SMBK.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
shall adjourn or postpone the PFG Meeting if (i) as of the time for which such meeting is originally scheduled there are insufficient
shares of PFG Common Stock represented (either in person or by proxy) to constitute a quorum necessary to conduct the business
of such meeting, or (ii) on the date of such meeting PFG has not received proxies representing a sufficient number of shares necessary
to obtain the Requisite PFG Shareholder Approval. PFG shall be required to effect a single adjournment or postponement of the
PFG Meeting pursuant to clause (i) or (ii) of this <U>Section 5.04(c)</U> for a single period of no more than fifteen (15) Business
Days only to allow time to solicit additional proxies as may be necessary to obtain the Requisite PFG Shareholder Approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.05<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Registration Statement; Proxy Statement-Prospectus; NASDAQ Listing</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>SMBK
and PFG agree to cooperate in the preparation of the Registration Statement to be filed by SMBK with the SEC in connection with
the issuance of SMBK Common Stock in the transactions contemplated by this Agreement (including the Proxy Statement-Prospectus
and all related documents). PFG shall deliver to SMBK such financial statements and related analysis of PFG, including &ldquo;Management&rsquo;s
Discussion and Analysis of Financial Condition and Results of Operations&rdquo; of PFG, as may be required in order to file the
Registration Statement, and any other report required to be filed by SMBK with the SEC, in each case, in compliance in all material
respects with applicable Laws, and shall, as promptly as practicable following execution of this Agreement, prepare and deliver
drafts of such information to SMBK to review. Each of SMBK and PFG agree to use their respective commercially reasonable efforts
to cause the Registration Statement to be declared effective by the SEC as promptly as reasonably practicable after the filing
thereof and to maintain such effectiveness for as long as necessary to consummate the Merger and the other transactions contemplated
by this Agreement. SMBK also agrees to use commercially reasonable efforts to obtain any necessary state securities Law or &ldquo;blue
sky&rdquo; permits and approvals required to carry out the transactions contemplated by this Agreement. PFG agrees to cooperate
with SMBK and SMBK&rsquo;s counsel and accountants in requesting and obtaining appropriate opinions, consents, and letters from
PFG&rsquo;s independent auditors in connection with the Registration Statement and the Proxy Statement-Prospectus. After the Registration
Statement is declared effective under the Securities Act, PFG, at its own expense, shall promptly mail or cause to be mailed the
Proxy Statement-Prospectus to its shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>SMBK
will use its commercially reasonable efforts to cause the shares of SMBK Common Stock to be issued in connection with the transactions
contemplated by this Agreement to be approved for listing on the NASDAQ, subject to official notice of issuance, prior to the
Effective Time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.06<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Regulatory Filings; Consents</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
of SMBK and PFG and their respective Subsidiaries shall cooperate and use their respective commercially reasonable efforts (i)&nbsp;to
promptly prepare all documentation (including the Registration Statement and the Proxy Statement-Prospectus), and to effect all
filings, to obtain all permits, consents, approvals, and authorizations of all third parties and Governmental Authorities necessary
to consummate the transactions contemplated by this Agreement, the Regulatory Approvals and all other consents and approvals of
a Governmental Authority required to consummate the Merger in the manner contemplated herein, (ii)&nbsp;to comply with the terms
and conditions of such permits, consents, approvals and authorizations and (iii)&nbsp;to cause the transactions contemplated by
this Agreement to be consummated as expeditiously as practicable; <I>provided</I>, <I>however</I>, notwithstanding the foregoing
or anything to the contrary in this Agreement, nothing contained herein shall be deemed to require SMBK or any of its Subsidiaries
or PFG or any of its Subsidiaries to take any non-standard action, or commit to take any such action, or agree to any non-standard
condition or restriction, in connection with obtaining the foregoing permits, consents, approvals and authorizations of any Governmental
Authority that would reasonably be likely to have a material and adverse effect (measured on a scale relative to PFG) on the condition
(financial or otherwise), results of operations, liquidity, assets or deposit liabilities, properties or business of SMBK, PFG,
the Surviving Entity or the Surviving Bank, after giving effect to the Merger (&ldquo;<B><I>Burdensome Condition</I></B>&rdquo;).
SMBK and PFG will furnish each other and each other&rsquo;s counsel with all information concerning themselves, their Subsidiaries,
directors, trustees, officers and shareholders and such other matters as may be necessary or advisable in connection with any
application, petition or any other statement or application made by or on behalf of SMBK or PFG to any Governmental Authority
in connection with the transactions contemplated by this Agreement. Each Party shall have the right to review and approve in advance
all characterizations of the information relating to such party and any of its Subsidiaries that appear in any filing made in
connection with the transactions contemplated by this Agreement with any Governmental Authority. In addition, SMBK and PFG shall
each furnish to the other for review a copy of each non-confidential portion of such filing made in connection with the transactions
contemplated by this Agreement with any Governmental Authority prior to its filing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
will use its best efforts, and SMBK shall reasonably cooperate with PFG at PFG&rsquo;s request, to obtain all consents, approvals,
authorizations, waivers or similar affirmations described on <U>PFG Disclosure Schedule 3.12(c)</U>. Each Party will notify the
other Party promptly and shall promptly furnish the other Party with copies of notices or other communications received by such
Party or any of its Subsidiaries of&nbsp;any communication from any Person alleging that the consent of such Person (or another
Person) is or may be required in connection with the transactions contemplated by this Agreement (and the response thereto from
such Party, its Subsidiaries or its representatives). PFG will consult with SMBK and its representatives as often as practicable
under the circumstances so as to permit PFG and SMBK and their respective representatives to cooperate to take appropriate measures
to obtain such consents and avoid or mitigate any adverse consequences that may result from the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.07<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Publicity</U>.
SMBK and PFG shall consult with each other before issuing any press release with respect to this Agreement or the transactions
contemplated hereby and shall not issue any such press release or make any such public statement without the prior consent of
the other Party, which shall not be unreasonably delayed or withheld; <I>provided</I>, <I>however</I>, that a party may, without
the prior consent of the other party (but after such consultation, to the extent practicable in the circumstances), issue such
press release or make such public statements as may upon the advice of counsel be required by Law or the rules and regulations
of any stock exchanges. It is understood that SMBK shall assume primary responsibility for the preparation of joint press releases
relating to this Agreement, the Merger, and the other transactions contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.08<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Access;
Current Information; Accounting Matters</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>For
the purposes of verifying the representations and warranties of the other and preparing for the Merger and the other matters contemplated
by this Agreement, upon reasonable notice and subject to applicable Laws, PFG agrees to afford SMBK and its officers, employees,
counsel, accountants, and other authorized representatives such access during normal business hours at any time and from time
to time throughout the period prior to the Effective Time to PFG&rsquo;s and its Subsidiaries&rsquo; books, records (including,
without limitation, Tax Returns and work papers of independent auditors), loan files, information technology systems, business,
properties, and personnel and to such other information relating to them as SMBK may reasonably request and PFG shall use its
commercially reasonable efforts to provide any appropriate notices to employees and/or customers in accordance with applicable
Law and PFG&rsquo;s privacy policy and, during such period, PFG shall furnish to SMBK, upon SMBK&rsquo;s reasonable request, all
such other information concerning the business, properties and personnel of PFG and its Subsidiaries that is substantially similar
in scope to the information provided to SMBK in connection with its diligence review prior to the date of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>For
the purposes of verifying the representations and warranties of the other and preparing for the Merger and the other matters contemplated
by this Agreement, during the period of time from the date of this Agreement to the Effective Time, upon reasonable notice and
subject to applicable Laws, SMBK agrees to furnish to PFG such information as PFG may reasonably request concerning the business
of SMBK and its Subsidiaries that is substantially similar in scope to the information provided to PFG in connection with its
diligence review prior to the date of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>As
promptly as reasonably practicable after they become available, PFG will furnish to SMBK copies of the board packages distributed
to the board of directors of PFG or any of its Subsidiaries, and minutes from the meetings thereof, copies of any internal management
financial control reports showing actual financial performance against plan and previous period, and copies of any reports provided
to the board of directors of PFG or any committee thereof relating to the financial performance and risk management of PFG.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>During
the period from the date of this Agreement to the Effective Time, at the reasonable request of either Party, the other Party will
cause one or more of its designated representatives to confer with representatives of the requesting Party and to report the general
status of the ongoing operations of the other Party and its Subsidiaries. Without limiting the foregoing, PFG agrees to provide
to SMBK (i)&nbsp;a copy of each report filed by PFG or any of its Subsidiaries with a Governmental Authority, (ii) a copy of PFG&rsquo;s
monthly loan trial balance, and (iii) a copy of PFG&rsquo;s monthly statement of condition and profit and loss statement, in each
case, which shall be provided as promptly as reasonably practicable after it is filed or prepared, as applicable. PFG further
agrees to provide SMBK, no later than 10 Business Days following the end of each calendar month following the date hereof, any
supplements to <U>PFG Disclosure Schedule 3.19</U>, <U>PFG Disclosure Schedule 3.22(a)</U>, and <U>PFG Disclosure Schedule 3.22(b)
</U>that would be required if the references to July 31, 2019 in each corresponding representation and warranty of PFG were changed
to the date of the most recently ended calendar month.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>No
investigation by a Party or its representatives shall be deemed to modify or waive any representation, warranty, covenant, or
agreement of the other Party set forth in this Agreement, or the conditions to the respective obligations of SMBK and PFG to consummate
the transactions contemplated hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Notwithstanding
anything to the contrary in this <U>Section 5.08</U>, PFG shall not be required to copy SMBK on any documents that disclose confidential
discussions of this Agreement or the transactions contemplated hereby, that contain competitively sensitive business or other
proprietary information filed under a claim of confidentiality (including any confidential supervisory information) or any other
matter that PFG&rsquo;s board of directors has been advised by counsel that such distribution to SMBK may violate a confidentiality
obligation or fiduciary duty or any Law or regulation, or may result in a waiver of PFG&rsquo;s attorney-client privilege. In
the event any of the restrictions in this <U>Section 5.08(g)</U> shall apply, PFG shall use its commercially reasonable efforts
to provide appropriate consents, waivers, decrees, and approvals necessary to satisfy any confidentiality issues relating to documents
prepared or held by third parties (including work papers), the Parties will make appropriate alternate disclosure arrangements,
including adopting additional specific procedures to protect the confidentiality of sensitive material and to ensure compliance
with applicable Laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.09<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Solicitation by PFG; Superior Proposals</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Except
as permitted by <U>Section 5.09(b)</U>, PFG shall not, and shall cause its Subsidiaries and each of their respective officers,
directors, and employees not to, and will not authorize any investment bankers, financial advisors, attorneys, accountants, consultants,
affiliates or other agents of PFG or any of PFG&rsquo;s Subsidiaries (collectively, the &ldquo;<B><I>PFG Representatives</I></B>&rdquo;)
to, directly or indirectly, (i) initiate, solicit, induce, or knowingly encourage, or take any action to facilitate the making
of, any inquiry, offer or proposal which constitutes, or could reasonably be expected to lead to, an Acquisition Proposal; (ii)
participate in any discussions or negotiations regarding any Acquisition Proposal or furnish, or otherwise afford access, to any
Person (other than SMBK) any information or data with respect to PFG or any of its Subsidiaries or otherwise relating to an Acquisition
Proposal; (iii) release any Person from, waive any provisions of, or fail to enforce any confidentiality agreement or standstill
agreement to which PFG is a party; or (iv) enter into any agreement, confidentiality agreement, agreement in principle or letter
of intent with respect to any Acquisition Proposal or approve or resolve to approve any Acquisition Proposal or any agreement,
agreement in principle, or letter of intent relating to an Acquisition Proposal. Any violation of the foregoing restrictions by
any of the PFG Representatives, whether or not such PFG Representative is so authorized and whether or not such PFG Representative
is purporting to act on behalf of PFG or otherwise, shall be deemed to be a breach of this Agreement by PFG. PFG and its Subsidiaries
shall, and shall cause each of the PFG Representatives to, immediately cease and cause to be terminated any and all existing discussions,
negotiations, and communications with any Persons with respect to any existing or potential Acquisition Proposal.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of this
Agreement, &ldquo;<B><I>Acquisition Proposal</I></B>&rdquo; means any inquiry, offer or proposal (other than an inquiry, offer,
or proposal from SMBK), whether or not in writing, contemplating, relating to, or that could reasonably be expected to lead to,
an Acquisition Transaction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of this
Agreement, &ldquo;<B><I>Acquisition Transaction</I></B>&rdquo; means (A) any transaction or series of transactions involving any
merger, consolidation, recapitalization, share exchange, liquidation, dissolution, or similar transaction involving PFG or any
of its Subsidiaries; (B) any transaction pursuant to which any third party or group acquires or would acquire (whether through
sale, lease or other disposition), directly or indirectly, a significant portion of the assets of PFG or any of its Subsidiaries;
(C) any issuance, sale or other disposition of (including by way of merger, consolidation, share exchange or any similar transaction)
securities (or options, rights or warrants to purchase or securities convertible into, such securities) representing 20% or more
of the votes attached to the outstanding securities of PFG or any of its Subsidiaries; (D) any tender offer or exchange offer that,
if consummated, would result in any third party or group beneficially owning 20% or more of any class of equity securities of PFG
or any of its Subsidiaries; or (E) any transaction which is similar in form, substance or purpose to any of the foregoing transactions,
or any combination of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">For purposes of this
Agreement, &ldquo;<B><I>Superior Proposal</I></B>&rdquo; means a bona fide, unsolicited Acquisition Proposal (i)&nbsp;that if consummated
would result in a third party (or in the case of a direct merger between such third party and PFG or any of its Subsidiaries, the
shareholders of such third party) acquiring, directly or indirectly, more than 50% of the outstanding PFG Common Stock or more
than 50% of the assets of PFG and its Subsidiaries, taken as a whole, for consideration consisting of cash and/or securities and
(ii)&nbsp;that the board of directors of PFG reasonably determines in good faith, after consultation with its outside financial
advisor and outside legal counsel, (A) is reasonably capable of being completed, taking into account all financial, legal, regulatory
and other aspects of such proposal, including all conditions contained therein and the person making such Acquisition Proposal,
and (B) taking into account any changes to this Agreement proposed by SMBK in response to such Acquisition Proposal, as contemplated
by <U>Section 5.09(c)</U>, and all financial, legal, regulatory and other aspects of such takeover proposal, including all conditions
contained therein and the person making such proposal, is more favorable to the shareholders of PFG from a financial point of view
than the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Notwithstanding
<U>Section 5.09(a)</U> or any other provision of this Agreement, prior to the date of the PFG Meeting, PFG may take any of the
actions described in <U>Section 5.09(a) </U>if, but only if, (i) PFG has received a bona fide unsolicited written Acquisition
Proposal that did not result from a breach of <U>Section 5.09(a)</U>; (ii) the board of directors of PFG reasonably determines
in good faith, after consultation with and having considered the advice of its outside financial advisor and outside legal counsel,
that (A) such Acquisition Proposal constitutes or is reasonably likely to lead to a Superior Proposal and (B) the failure to take
such actions more likely than not would cause it to violate its fiduciary duties to PFG&rsquo;s shareholders under applicable
Law; (iii) PFG has provided SMBK with at least three Business Days&rsquo; prior notice of such determination; and (iv) prior to
furnishing or affording access to any information or data with respect to PFG or any of its Subsidiaries or otherwise relating
to an Acquisition Proposal, PFG receives from such Person a confidentiality agreement with terms no less favorable to PFG than
those contained in the confidentiality agreement with SMBK. PFG shall promptly provide to SMBK any non-public information regarding
PFG or its Subsidiaries provided to any other Person which was not previously provided to SMBK, such additional information to
be provided no later than the date of provision of such information to such other party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
shall promptly (and in any event within one (1) Business Day) notify SMBK in writing if any proposals or offers are received by,
any information is requested from, or any negotiations or discussions are sought to be initiated or continued with, PFG or the
PFG Representatives, in each case in connection with any Acquisition Proposal, and such notice shall indicate the name of the
Person initiating such discussions or negotiations or making such proposal, offer, or information request and the material terms
and conditions of any proposals or offers (and, in the case of written materials relating to such proposal, offer, information
request, negotiations or discussion, providing copies of such materials (including e-mails or other electronic communications)
except to the extent that such materials constitute confidential information of the party making such offer or proposal under
an effective confidentiality agreement). PFG agrees that it shall keep SMBK informed, on a reasonably current basis, of the status
and terms of any such proposal, offer, information request, negotiations, or discussions (including any amendments or modifications
to such proposal, offer, or request).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Except
as provided in <U>Section 5.09(e)</U>, neither the board of directors of PFG nor the board of directors of any Subsidiary nor
any committee of any boards of directors of PFG or its Subsidiaries shall (i) fail to make or withdraw (or modify or qualify in
any manner adverse to SMBK or publicly propose to withdraw, modify, or qualify in any manner adverse to SMBK) the PFG Recommendation,
or the determination of the advisability to its shareholders of the approval of this Agreement and the transactions contemplated
hereby, including the Merger, (ii) adopt, approve, or publicly recommend, endorse or otherwise declare advisable any Acquisition
Proposal, (iii) fail to include the PFG Recommendation in whole or in part in the Proxy Statement Prospectus or any filing or
amendment or supplement relating thereto, (iv) fail to recommend against any then-pending tender or exchange offer that constitutes
an Acquisition Proposal within five business days after it is announced, (v) fail to reaffirm the PFG Recommendation within three
business days following a request by SMBK, or make any statement, filing or release, in connection with the PFG Meeting or otherwise,
inconsistent with the PFG Recommendation, or (vi) resolve to do any of the foregoing. Each such action set forth in this <U>Section
5.5(d)</U> shall be referred to herein as an &ldquo;<B><I>Adverse Recommendation Action</I></B>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Notwithstanding
<U>Section 5.09(d)</U>, prior to the receipt of the Requisite PFG Shareholder Approval, the board of directors of PFG may withdraw,
qualify, amend or modify the PFG Recommendation (a &ldquo;<B><I>PFG Subsequent Determination</I></B>&rdquo;) or cause or permit
PFG to terminate this Agreement to enter into a definitive agreement with respect to such Superior Proposal in accordance with
the terms of <U>Section 7.01(g)</U> after the fifth Business Day following SMBK&rsquo;s receipt of a notice (the &ldquo;<B><I>Notice
of Superior Proposal</I></B>&rdquo;) from PFG advising SMBK that the board of directors of PFG has decided (in good faith after
consultation with its outside legal counsel and financial advisor) that a bona fide unsolicited written Acquisition Proposal that
it received (that did not result from a breach of <U>Section 5.09(a)</U>) constitutes a Superior Proposal if, but only if, (i)
the board of directors of PFG has determined in good faith, after consultation with and having considered the advice of outside
legal counsel and its financial advisor, that the failure to take such actions more likely than not would cause it to violate
its fiduciary duties to PFG&rsquo;s shareholders under applicable Law, (ii) during the five Business Day period after receipt
of the Notice of Superior Proposal by SMBK (the &ldquo;<B><I>Notice Period</I></B>&rdquo;), PFG and the board of directors of
PFG shall have cooperated and negotiated in good faith with SMBK to make such adjustments, modifications or amendments to the
terms and conditions of this Agreement as would enable PFG to proceed with the PFG Recommendation without a PFG Subsequent Determination;
<I>provided</I>, <I>however</I>, that SMBK shall not have any obligation to propose any adjustments, modifications or amendments
to the terms and conditions of this Agreement and (iii) at the end of the Notice Period, after taking into account any such adjusted,
modified, or amended terms as may have been proposed by SMBK since its receipt of such Notice of Superior Proposal, the board
of directors of PFG has again in good faith made the determination (A) in clause (i) of this <U>Section 5.09(e)</U> and (B) that
such Acquisition Proposal constitutes a Superior Proposal. In the event of any material revisions to the Superior Proposal, PFG
shall be required to deliver a new Notice of Superior Proposal to SMBK and again comply with the requirements of this <U>Section
5.09(e)</U>, except that the Notice Period shall be reduced to three Business Days.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Notwithstanding
any PFG Subsequent Determination, unless this Agreement has been terminated, this Agreement shall be submitted to PFG&rsquo;s
shareholders at the PFG Meeting for the purpose of voting on the approval of this Agreement and the transactions contemplated
hereby (including the Merger) and nothing contained herein shall be deemed to relieve PFG of such obligation; <I>provided</I>,
<I>however</I>, that if the board of directors of PFG shall have made a PFG Subsequent Determination with respect to a Superior
Proposal, then the board of directors of PFG may recommend approval of such Superior Proposal by the shareholders of PFG and may
submit this Agreement to PFG&rsquo;s shareholders without recommendation, in which event the board of directors of PFG shall communicate
the basis for its recommendation of such Superior Proposal and the basis for its lack of a recommendation with respect to this
Agreement and the transactions contemplated hereby to PFG&rsquo;s shareholders in the Proxy Statement-Prospectus or an appropriate
amendment or supplement thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Nothing
contained in this <U>Section 5.09</U> shall prohibit PFG or the board of directors of PFG from complying with PFG&rsquo;s obligations
required under Rule 14e-2(a) promulgated under the Exchange Act (as if such rule was applicable to PFG); <I>provided</I>, <I>however</I>,
that any such disclosure relating to an Acquisition Proposal (other than a &ldquo;stop, look, and listen&rdquo; or similar communication
of the type contemplated by Rule 14d-9(f) under the Exchange Act) shall be deemed a change in the PFG Recommendation unless the
board of directors of PFG reaffirms the PFG Recommendation in such disclosure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.10<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Indemnification</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>For
a period of six years from and after the Effective Time, and in any event subject to the provisions of <U>Section 5.10(c)(iv)</U>,
SMBK shall indemnify and hold harmless the present and former directors and officers of PFG and its Subsidiaries (each an &ldquo;<B><I>Indemnified
Party</I></B>&rdquo;), against all costs, expenses (including reasonable attorney&rsquo;s fees), judgments, fines, losses, claims,
damages, or liabilities or amounts that are paid in settlement (which settlement shall require the prior written consent of SMBK,
which consent shall not be unreasonably withheld) of or in connection with any claim, action, suit, proceeding, or investigation,
whether civil, criminal, administrative or investigative (each a &ldquo;<B><I>Claim</I></B>&rdquo;), arising out of actions or
omissions of such persons in the course of performing their duties for PFG or any of its Subsidiaries occurring at or before the
Effective Time (including the Merger and the other transactions contemplated hereby), regardless of whether such Claim is asserted
or claimed before, or after, the Effective Time, to the same extent permitted under the organizational documents of PFG and its
Subsidiaries in effect on the date of this Agreement to the extent permitted by applicable Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Any
Indemnified Party wishing to claim indemnification under this <U>Section 5.10</U> shall promptly notify SMBK upon learning of
any Claim, <I>provided that</I>, failure to so notify shall not affect the obligation of SMBK under this <U>Section 5.10</U>,
unless, and only to the extent that, SMBK is materially prejudiced in the defense of such Claim as a consequence. In the event
of any such Claim (whether asserted or claimed prior to, at or after the Effective Time), (i) SMBK shall have the right to assume
the defense thereof and SMBK shall not be liable to such Indemnified Parties for any legal expenses or other counsel or any other
expenses subsequently incurred by such Indemnified Parties in connection with the defense thereof, (ii)&nbsp;the Indemnified Parties
will cooperate in the defense of any such matter, (iii)&nbsp;SMBK shall not be liable for any settlement effected without its
prior written consent, and (iv)&nbsp;SMBK shall have no obligation hereunder to any Indemnified Party if such indemnification
would be in violation of any applicable federal or state banking Laws or regulations, or in the event that a federal or state
banking agency or a court of competent jurisdiction shall determine that indemnification of an Indemnified Party in the manner
contemplated hereby is prohibited by applicable Laws and regulations, whether or not related to banking Laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>For
a period of six years following the Effective Time, SMBK will maintain director&rsquo;s and officer&rsquo;s liability insurance
(herein, &ldquo;<B><I>D&amp;O Insurance</I></B>&rdquo;) that serves to reimburse the present and former officers and directors
of PFG or its Subsidiaries (determined as of the Effective Time) with respect to claims against such directors and officers arising
from facts or events occurring before the Effective Time (including the transactions contemplated hereby), which insurance will
contain at least the same coverage and amounts, and contain terms and conditions no less advantageous to the Indemnified Party,
as that coverage currently provided by PFG; <I>provided that</I>, if SMBK is unable to maintain or obtain the insurance called
for by this <U>Section 5.10</U>, SMBK will provide as much comparable insurance as is reasonably available (subject to the limitations
described below in this <U>Section 5.10(d)</U>); and <I>provided</I>, <I>further,</I> that officers and directors of PFG or its
Subsidiaries may be required to make application and provide customary representations and warranties to the carrier of the D&amp;O
Insurance for the purpose of obtaining such insurance. In no event shall SMBK be required to expend for such tail insurance a
premium amount in excess of an amount equal to 200% of the annual premiums paid by PFG for D&amp;O Insurance in effect as of the
date of this Agreement (the &ldquo;<B><I>Maximum D&amp;O Tail Premium</I></B>&rdquo;). If the cost of such tail insurance exceeds
the Maximum D&amp;O Tail Premium, SMBK shall obtain tail insurance coverage or a separate tail insurance policy with the greatest
coverage available for a cost not exceeding the Maximum D&amp;O Tail Premium.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>This
<U>Section 5.10</U> shall survive the Effective Time, is intended to benefit each PFG Indemnified Party (each of whom shall be
entitled to enforce this Section against SMBK) and shall be binding on all successors and assigns of SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If SMBK or any of its successors and assigns (i) shall consolidate with or merge into any other corporation or entity and
shall not be the continuing or surviving corporation or entity of such consolidation or merger, or (ii) shall transfer all or substantially
all of its property and assets to any individual, corporation or other entity, then, in each such case, proper provision shall
be made so that the successors and assigns of SMBK and its Subsidiaries shall assume the obligations set forth in this <U>Section
5.10</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.11<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Employees;
Benefit Plans</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Following
the Effective Time, SMBK shall maintain or cause to be maintained employee benefit plans for the benefit of employees who are
full time employees of PFG on the Closing Date and who become employees of SMBK (&ldquo;<FONT STYLE="font-weight: normal">Covered
Employees</FONT>&rdquo;) that provide employee benefits which, in the aggregate, are substantially comparable to the employee
benefits and cash-based compensation opportunities that are made available on a uniform and non-discriminatory basis to similarly
situated employees of SMBK; <B><I>provided</I>, <I>however</I></B>, that in no event shall any Covered Employee be eligible to
participate in any closed or frozen plan of SMBK. To the extent permissible by applicable Law and the terms of the applicable
PFG benefit plans, SMBK shall give the Covered Employees credit for their prior service with PFG (i) for purposes of eligibility
(including initial participation and eligibility for current benefits) and vesting under any qualified or non-qualified employee
benefit plan maintained by SMBK and in which Covered Employees may be eligible to participate and (ii) for all purposes under
any welfare benefit plans, vacation plans (although SMBK may consider current vacation benefits provided to such employees by
PFG), severance plans, and similar arrangements maintained by SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>With
respect to any employee benefit plan of SMBK that is a health, dental, vision, or other welfare plan in which any Covered Employee
is eligible to participate, for the plan year in which such Covered Employee is first eligible to participate, SMBK shall use
its commercially reasonable efforts to cause any pre-existing condition limitations, eligibility waiting periods, or evidence
of insurability requirements under such SMBK plan to be waived with respect to such Covered Employee and his or her covered dependents
to the extent such condition was or would have been covered under the PFG Benefit Plan in which such Covered Employee participated
immediately prior to the Effective Time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
shall cause Progressive Bank to take all necessary actions to terminate its participation in the Progressive Savings Bank F.S.B.
401(k) Plan, effective as the date immediately preceding the Effective Time of the Merger, and the Jo Ann Rains Employee Stock
Ownership Plan, effective as of the Effective Time, subject to the occurrence of the Effective Time. PFG shall provide SMBK with
evidence that the such participation has been terminated and provide copies of the appropriate resolutions terminating participation
(the form and substance of which shall be subject to review and approval by SMBK, which will not be unreasonably withheld) not
later than the day immediately preceding the Effective Time. The accounts of all participants and beneficiaries in the Progressive
Savings Bank F.S.B. 401(k) Plan and the Jo Ann Rains Employee Stock Ownership Plan shall become fully vested upon termination
of participation in such plan.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Prior
to the Effective Time, PFG shall take, and shall cause its Subsidiaries to take, all actions requested by SMBK that may be necessary
or appropriate to, conditioned on the occurrence of the Effective Time, (i) cause one or more PFG Benefits Plans not covered above
to terminate as of the Effective Time, or as of the date immediately preceding the Effective Time, (ii) cause benefit accruals
and entitlements under any PFG Benefit Plan to cease as of the Effective Time, or as of the date immediately preceding the Effective
Time, (iii) cause the continuation on and after the Effective Time of any contract, arrangement or insurance policy relating to
any PFG Benefit Plan for such period as may be requested by SMBK, or (iv) facilitate the merger of any PFG Benefit Plan into any
employee benefit plan maintained by SMBK. Additionally, PFG and Progressive Bank will take any and all actions reasonably requested
by SMBK related to ensuring the compliance of all PFG Benefit Plans with applicable law, including but not limited to filing any
necessary &ldquo;top hat&rdquo; filings or corrections. All resolutions, notices, or other documents issued, adopted or executed
in connection with the implementation of this <U>Section 5.11(d)</U> shall be subject to SMBK&rsquo;s reasonable prior review
and approval, which shall not be unreasonably withheld, conditioned or delayed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Any
employee of PFG or Progressive Bank that becomes an employee of SMBK or SmartBank at the Effective Time who is terminated within
one year following the Effective Time (other than for cause, death, disability, normal retirement or voluntarily resignation)
shall receive a severance payment calculated in accordance with the policy set forth on <U>SMBK Disclosure Schedule 5.11(e)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Nothing
in this <U>Section 5.11</U> shall be construed to limit the right of SMBK (including, following the Closing Date, PFG) to amend
or terminate any PFG Benefit Plan or other employee benefit plan, to the extent such amendment or termination is permitted by
the terms of the applicable plan, nor shall anything in this Section 5.11 be construed to require SMBK (including, following the
Closing Date, PFG) to retain the employment of any particular Covered Employee for any fixed period of time following the Closing
Date, and the continued retention (or termination) by SMBK of any Covered Employee subsequent to the Effective Time shall be subject
in all events to SMBK&rsquo;s normal and customary employment procedures and practices, including customary background screening
and evaluation procedures, and satisfactory employment performance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>For
purposes of this <U>Section 5.11</U>, (i) &ldquo;employees of PFG&rdquo; shall include employees of PFG or any of its Subsidiaries,
(ii) &ldquo;employees of SMBK&rdquo; shall include employees of SMBK or any of its Subsidiaries, (iii) all references to PFG shall
include each of the Subsidiaries of PFG, and (iv) all references to SMBK shall include each of the Subsidiaries of SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(h)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>SMBK
shall use its commercially reasonable efforts to enter into the Required Employment Arrangements as soon as practicable after
the date hereof and shall negotiate such Required Employment Arrangements in good faith and on commercially reasonable terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.12<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Notification
of Certain Changes</U>. SMBK and PFG shall promptly advise the other Party of any change or event having, or which could reasonably
be expected to have, a Material Adverse Effect or which it believes would, or which could reasonably be expected to, cause or
constitute a material breach of any of its or its respective Subsidiaries&rsquo; representations, warranties or covenants contained
herein and PFG shall provide on a periodic basis written notice to SMBK of any matters that PFG becomes aware of that should be
disclosed on a supplement or amendment to the PFG Disclosure Schedule; <I>provided</I>, that any failure to give notice in accordance
with the foregoing shall not be deemed to constitute a violation of this <U>Section 5.12 </U>or the failure of any condition set
forth in <U>Section 6.01</U>, <U>Section 6.02</U> or <U>Section 6.03</U> to be satisfied, or otherwise constitute a breach of
this Agreement by the party failing to give such notice, in each case unless the underlying breach would independently result
in a failure of the conditions set forth in <U>Section 6.01</U>, <U>Section 6.02 </U>or <U>Section 6.03</U> to be satisfied.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.13<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Transition;
Informational Systems Conversion</U>. From and after the date hereof, SMBK and PFG will use their commercially reasonable efforts
to facilitate the integration of PFG with the business of SMBK following consummation of the transactions contemplated hereby,
and shall meet on a regular basis to discuss and plan for the conversion of the data processing and related electronic informational
systems of PFG and each of its Subsidiaries (the &ldquo;<B><I>Informational Systems Conversion</I></B>&rdquo;) to those used by
SMBK, which planning shall include, but not be limited to, (a)&nbsp;discussion of third-party service provider arrangements of
PFG and each of its Subsidiaries; (b)&nbsp;non-renewal or changeover, after the Effective Time, of personal property leases and
software licenses used by PFG and each of its Subsidiaries in connection with the systems operations; (c)&nbsp;retention of outside
consultants and additional employees to assist with the conversion; (d)&nbsp;outsourcing, as appropriate after the Effective Time,
of proprietary or self-provided system services; and (e)&nbsp;any other actions necessary and appropriate to facilitate the conversion,
as soon as practicable following the Effective Time. SMBK shall promptly reimburse PFG on request for any reasonable and documented
out-of-pocket fees, expenses or charges that PFG may incur as a result of taking, at the request of SMBK, any action prior to
the Effective Time to facilitate the Informational Systems Conversion.</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.14<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Control of Other Party&rsquo;s Business.</U> Nothing contained in this Agreement shall give SMBK, directly or indirectly, the
right to control or direct the operations of PFG or its Subsidiaries prior to the Effective Time, and nothing contained in this
Agreement shall give PFG, directly or indirectly, the right to control or direct the operations of SMBK or its Subsidiaries prior
to the Effective Time. Prior to the Effective Time, each of PFG and SMBK shall exercise, consistent with the terms and conditions
of this Agreement, control, and supervision over its and its Subsidiaries&rsquo; respective operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.15<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Certain
Litigation</U>. Each Party shall promptly advise the other Party orally and in writing of any actual or threatened shareholder
litigation against such Party or any of its Subsidiaries and/or the members of the boards of directors of PFG or the board of
directors of SMBK or their respective Subsidiaries related to this Agreement or the Merger and the other transactions contemplated
by this Agreement. PFG shall: (i) permit SMBK to review and discuss in advance, and consider in good faith the views of SMBK in
connection with, any proposed written or oral response to such shareholder litigation; (ii) furnish SMBK&rsquo;s outside legal
counsel with all non-privileged information and documents which outside counsel may reasonably request in connection with such
shareholder litigation; (iii) consult with SMBK regarding the defense or settlement of any such shareholder litigation, shall
give due consideration to SMBK&rsquo;s advice with respect to such shareholder litigation and shall not settle any such litigation
prior to such consultation and consideration; <I>provided</I>, <I>however</I>, that PFG shall not settle any such shareholder
litigation if such settlement requires the payment of money damages, without the written consent of SMBK (such consent not to
be unreasonably withheld, conditioned or delayed) unless the payment of any such damages by PFG is reasonably expected by PFG,
following consultation with outside counsel, to be fully covered (disregarding any deductible to be paid by PFG) under PFG&rsquo;s
existing director and officer insurance policies, including any tail policy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.16<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Director
Resignations</U>. PFG will cause to be delivered to SMBK resignations of all the directors of PFG and its Subsidiaries, such resignations
to be effective as of the Effective Time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.17<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Non-Competition
and Non-Disclosure Agreement</U>. Concurrently with the execution and delivery of this Agreement and effective upon Closing, PFG
has caused each director of PFG and Progressive Bank to execute and deliver the Non-Competition and Non-Disclosure Agreement in
the form attached hereto as <U>Exhibit C</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.18<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Claims
Letters</U>. Concurrently with the execution and delivery of this Agreement and effective upon the Closing, PFG has caused each
director of PFG and Progressive Bank to execute and deliver the Claims Letter in the form attached hereto as <U>Exhibit D</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.19<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>[Reserved].</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.20<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Coordination</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Prior
to the Effective Time, subject to applicable Laws, PFG and its Subsidiaries shall take any actions SMBK may reasonably request
from time to time to better prepare the parties for integration of the operations of PFG and its Subsidiaries with SMBK and its
Subsidiaries, respectively. Without limiting the foregoing, senior officers of PFG and SMBK shall meet from time to time as SMBK
may reasonably request, and in any event not less frequently than monthly, to review the financial and operational affairs of
PFG and its Subsidiaries, and PFG shall give due consideration to SMBK&rsquo;s input on such matters, with the understanding that,
notwithstanding any other provision contained in this Agreement, neither SMBK nor SmartBank shall under any circumstance be permitted
to exercise control of PFG or any of its Subsidiaries prior to the Effective Time. PFG shall permit representatives of SmartBank
to be onsite at PFG and its Subsidiaries to facilitate integration of operations and assist with any other coordination efforts
as necessary, provided such efforts shall be done without undue disruption to normal business operations, during normal business
hours and at the expense of SMBK or SmartBank (not to include PFG&rsquo;s or its Subsidiaries&rsquo; regular employee payroll).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Prior
to the Effective Time, subject to applicable Laws, PFG and its Subsidiaries shall take any actions SMBK may reasonably request
in connection with negotiating any amendments, modifications or terminations of any Leases or PFG Material Contracts that SMBK
may request, including, but not limited to, actions necessary to cause any such amendments, modifications, or terminations to
become effective prior to (to the extent that the conditions set forth in Article VI of this Agreement have already been satisfied),
or immediately upon, the Closing, and shall cooperate with SMBK and will use its commercially reasonable efforts to negotiate
specific provisions that may be requested by SMBK in connection with any such amendment, modification, or termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>From and after the date hereof, subject to applicable Laws, the Parties shall reasonably cooperate (provided that the Parties
shall cooperate to reasonably minimize disruption to PFG&rsquo;s or its Subsidiaries&rsquo; respective businesses) with the other
in preparing for the prompt conversion or consolidation of systems and business operations promptly after the Effective Time (including
by entering into customary confidentiality, non-disclosure, and similar agreements with the other party and appropriate service
providers) and PFG shall, upon SMBK&rsquo;s reasonable request, introduce SMBK and its representatives to suppliers of PFG and
its Subsidiaries for the purpose of facilitating the integration of PFG and its business into that of SMBK. In addition, after
satisfaction of the conditions set forth in <U>Section 6.01(a)</U> and <U>Section 6.01(b)</U>, subject to applicable Laws, PFG
shall, upon SMBK&rsquo;s reasonable request, introduce SMBK and its representatives to customers of PFG and its Subsidiaries for
the purpose of facilitating the integration of PFG and its business into that of SMBK. Any interaction between SMBK and PFG&rsquo;s
and any of its Subsidiaries&rsquo; customers and suppliers shall be coordinated by PFG. PFG shall have the right to participate
in any discussions between SMBK and PFG&rsquo;s customers and suppliers.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>SMBK
and PFG agree to take all action necessary and appropriate to cause Progressive Bank to merge with SmartBank in accordance with
applicable Laws and the terms of the Plan of Bank Merger immediately following the Effective Time or as promptly as practicable
thereafter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.21<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Transactional
Expenses</U>. PFG shall use its commercially reasonable efforts to cause the aggregate amount of all PFG Expenses (as previously
provided to SMBK and referenced in Section 3.35) to not materially exceed the total expenses disclosed in such estimate. PFG shall
promptly notify SMBK if or when it determines that it expects to exceed its total budget for PFG Expenses. Notwithstanding anything
to the contrary in this <U>Section 5.21</U>, PFG shall not incur any investment banking, brokerage, finders, or other similar
financial advisory fees in connection with the transactions contemplated by this Agreement other than those expressly disclosed
to SMBK. The PFG Expenses shall be paid on or after the Closing Date and the corresponding Tax deductions shall be allocated to
the Tax period of the SMBK consolidated group which includes the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.22<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Confidentiality</U>.
Prior to the execution of this Agreement and prior to the consummation of the Merger, subject to applicable Laws, each of SMBK
and PFG, and their respective Subsidiaries, affiliates, officers, directors, agents, employees, consultants, and advisors have
provided, and will continue to provide one another with information which may be deemed by the party providing the information
to be non-public, proprietary and/or confidential, including, but not limited to, trade secrets of the disclosing party. Each
Party agrees that it will, and will cause its representatives to, hold any information obtained pursuant to this <U>Article V
</U>in accordance with the terms of the Mutual Non-Disclosure Agreement, dated as of June 14, 2019 by and among SMBK and PFG.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.23<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>AAA
Dividend</U>. PFG will be permitted to make a one-time dividend (the &ldquo;<B><I>AAA Dividend</I></B>&rdquo;) immediately prior
to the Effective Time equal to (i) the balance of the Company&rsquo;s accumulated adjustment account as of December 31, 2019 minus
(ii) the amount of any Tax Distributions made pursuant to Section 5.24 (the &ldquo;<B><I>AAA Balance</I></B>&rdquo;) subject to
a maximum of $14,595,354.37, less any adjustments to the Aggregate Cash Consideration for losses on Pre-Closing Divestitures pursuant
to Section 2.01(d)(i) of this Agreement, and subject to the approval of SMBK, which approval will not be unreasonably withheld.
PFG will deliver a statement to SMBK no later than fifteen (15) Business Days prior to the Closing Date, which statement will
set forth the AAA Balance and a detailed calculation thereof, for SMBK&rsquo;s review and approval.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 5.24<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Tax
Matters</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Tax
Returns</U>. SMBK shall prepare and timely file, or cause to be prepared and timely filed, all income Tax Returns of the PFG and
its Subsidiaries for any Taxable Period (or portion thereof) ending before the Closing Date (the &ldquo;<U>Pre-Closing Tax Period</U>&rdquo;),
which are filed after the Closing Date. Such Tax Returns shall be prepared in a manner consistent with the prior practices of
PFG unless otherwise required by applicable Law.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Payment of Taxes</U>. The PFG shareholders shall be responsible for and shall timely pay, or cause to be timely paid,
any Taxes attributable to the Pre-Closing Tax Period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Cooperation</U>.
The parties will provide each other with such cooperation and information as they may reasonably request of each other in preparing
or filing any Tax Return, in determining a liability or right of refund, or in conducting any audit or other proceeding, in respect
of Taxes attributable to the Pre-Closing Tax Period. SMBK agrees to retain all books and records with respect to Tax matters pertinent
to the PFG and its Subsidiaries relating to any taxable period beginning before the Closing Date until expiration of the statute
of limitations (and any extensions thereof) of the respective taxable periods.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Tax
Contest</U>. SMBK shall promptly provide written notice to the PFG Shareholder Representative of an audit, administrative or judicial
proceeding or examination of a Pre-Closing Tax Period that may give rise to a Tax liability for the PFG shareholders (a &ldquo;<U>Tax
Claim</U>&rdquo;). SMBK shall determine in consultation with the PFG Shareholder Representative whether to contest such Tax Claim
but in no event shall SMBK be required to begin or continue a contest of the Tax Claim if, in the reasonable opinion of SMBK,
such contest would result in the possibility of the imposition of a Lien on the assets of SMBK or otherwise result in significant
adverse consequences to SMBK. If SMBK contests a Tax Claim, SMBK shall (i) permit the PFG Shareholder Representative to participate
in such contest, at the expense of the PFG shareholders, (ii) keep the PFG Shareholder Representative reasonably informed of all
proceedings, communications and correspondence and (iii) make available all relevant documents in connection therewith. SMBK shall
not enter into any settlement or compromise of a Tax Claim without the prior written consent of the PFG Shareholder Representative,
which consent shall not be unreasonably withheld or delayed.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Tax
Distributions</U>. Consistent with past practice, PFG will be permitted to make a one-time Tax distribution on or before February
29, 2020 (the &ldquo;2019 Tax Distribution&rdquo;) for the Holders to satisfy their respective Tax obligations in connection with
their pro rata share of the income of PFG for the Taxable period ended December 31, 2019. Such Tax Distribution shall be paid
in accordance with <U>PFG Disclosure Schedule 5.24(e)</U> and shall be reduced by any Tax distributions made by PFG during the
2019 tax year. PFG will also be permitted to make a one-time Tax distribution immediately prior to Closing (the &ldquo;<U>2020
Tax Distribution</U>&rdquo;) for the Holders to satisfy their respective Tax obligations in connection with their pro rata share
of the income of PFG for the Taxable period between January 1, 2020 and the Closing Date, provided, however, that (i) the amount
of the 2020 Tax Distribution will be subject to SMBK&rsquo;s consent (based on a verification of the PFG&rsquo;s estimated Taxable
income for the period between January 1, 2020 and the Closing Date), which consent will not be unreasonably withheld, conditioned
or delayed, (ii) PFG will provide SMBK with the amount of the proposed Tax Distribution, including a reasonably detailed calculation
of the PFG&rsquo;s estimated Taxable income for the period between January 1, 2020 and the Closing Date (the &ldquo;2020 <U>Tax
Estimate</U>&rdquo;) at least ten days prior to the Closing Date, and (iii) SMBK and PFG will cooperate in good faith to resolve
any disagreements regarding the calculation of the 2020 Tax Distribution and the 2020 Tax Estimate. The 2019 Tax Distribution
and the 2020 Tax Distribution are collectively referred to herein as the &ldquo;Tax Distributions.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Tax
Treatment</U>. The Parties intend that the Merger shall qualify as a &ldquo;reorganization&rdquo; within the meaning of Section
368(a) of the Code and the Regulations promulgated thereunder, and that this Agreement shall constitute a &ldquo;plan of reorganization&rdquo;
within the meaning of Sections 354 and 361 of the Code. Except as expressly contemplated or permitted by this Agreement, from
and after the date of this Agreement, each of SMBK and PFG shall use their respective reasonable best efforts to cause the Merger
to qualify as a reorganization within the meaning of Section 368(a) of the Code, and will not take any action, cause any action
to be taken, fail to take any action or cause any action to fail to be taken which action or failure to act is intended or is
reasonably likely to prevent the Merger from qualifying as a reorganization within the meaning of Section 368(a) of the Code</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">ARTICLE
VI<BR>
CONDITIONS TO CONSUMMATION OF THE MERGER</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.01<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Conditions
to Obligations of the Parties to Effect the Merger</U>. The respective obligations of the Parties to consummate the Merger are
subject to the fulfillment or, to the extent permitted by applicable Law, written waiver by the Parties prior to the Closing Date
of each of the following conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Shareholder
Vote.</U> This Agreement and the transactions contemplated hereby, as applicable, shall have received the Requisite PFG Shareholder
Approval at the PFG Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Regulatory
Approvals; No Burdensome Condition.</U> All Regulatory Approvals required to consummate the Merger and the Bank Merger in the
manner contemplated herein shall have been obtained and shall remain in full force and effect and all statutory waiting periods
in respect thereof, if any, shall have expired or been terminated, and no such Regulatory Approval includes or contains, or shall
have resulted in the imposition of, any Burdensome Condition.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Injunctions or Restraints; Illegality.</U> No judgment, order, injunction or decree issued by any court or agency of competent
jurisdiction or other legal restraint or prohibition preventing the consummation of any of the transactions contemplated hereby
shall be in effect. No statute, rule, regulation, order, injunction, or decree shall have been enacted, entered, promulgated or
enforced by any Governmental Authority that prohibits or makes illegal the consummation of any of the transactions contemplated
hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Effective
Registration Statement.</U> The Registration Statement shall have become effective and no stop order suspending the effectiveness
of the Registration Statement shall have been issued and no proceedings for that purpose shall have been initiated or threatened
by the SEC or any other Governmental Authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>NASDAQ
Listing</U>. the shares of SMBK Common Stock to be issued in connection with the transactions contemplated by this Agreement shall
be approved for listing on the NASDAQ.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Tax
Opinions Relating to the Merger.</U> SMBK and PFG, respectively, shall have received opinions from Alston &amp; Bird LLP and Baker,
Donelson, Bearman, Caldwell &amp; Berkowitz, PC, respectively, each dated as of the Closing Date, in substance and form reasonably
satisfactory to SMBK and PFG, respectively, to the effect that, on the basis of the facts, representations and assumptions set
forth in such opinions, the Merger will be treated for federal income tax purposes as a &ldquo;reorganization&rdquo; within the
meaning of Section&nbsp;368(a) of the Code. In rendering their opinions, Alston &amp; Bird LLP and Baker, Donelson, Bearman, Caldwell
&amp; Berkowitz, PC may require and rely upon representations as to certain factual matters contained in certificates of officers
of each of SMBK and PFG or any subsidiary thereof, in form and substance reasonably acceptable to such counsel.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.02<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Conditions
to Obligations of PFG</U>. The obligations of PFG to consummate the Merger also are subject to the fulfillment or written waiver
by PFG prior to the Closing Date of each of the following conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Representations
and Warranties.</U> The representations and warranties of SMBK (i) set forth in <U>Section 4.09</U> shall be true and correct
in all respects as of the date of this Agreement and as of the Closing Date with the same effect as though made as of the Closing
Date, (ii) <U>Section 4.01</U>, <U>Section 4.02</U>, <U>Section 4.03(a)</U>, and <U>Section 4.04</U> shall be true and correct
in all material respects as of the date of this Agreement and as of the Closing Date with the same effect as though made as of
the Closing Date (except to the extent expressly made as of an earlier date, in which case as of such date) and (iii) set forth
in this Agreement, other than those sections specifically identified in clauses (i) or (ii) of this <U>Section 6.02(a)</U>, shall
be true and correct (disregarding all qualifications or limitations as to &ldquo;materiality&rdquo;, &ldquo;Material Adverse Effect&rdquo;
and words of similar import set forth therein) as of the date of this Agreement and as of the Closing Date with the same effect
as though made as of the Closing Date (except to the extent expressly made as of an earlier date, in which case as of such date),
except, in the case of this clause (iii), where the failure to be true and correct would not, individually or in the aggregate,
reasonably be expected to have a Material Adverse Effect with respect to SMBK. PFG shall have received a certificate signed on
behalf of SMBK by the Chief Executive Officer or the Chief Financial Officer of SMBK to the foregoing effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Performance
of Obligations of SMBK</U>. SMBK shall have performed and complied with all of its obligations under this Agreement in all material
respects at or prior to the Closing Date except where the failure of the performance of, or compliance with, such obligation has
not had and does not have a Material Adverse Effect on SMBK, and PFG shall have received a certificate, dated the Closing Date,
signed on behalf of SMBK by its Chief Executive Officer and the Chief Financial Officer to such effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No
Material Adverse Effect</U>. Since the date of this Agreement no change, development, effect, event or circumstance has occurred
which has resulted in SMBK or SmartBank being subject to a Material Adverse Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.03<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Conditions
to Obligations of SMBK</U>. The obligations of SMBK to consummate the Merger also are subject to the fulfillment or written waiver
by SMBK prior to the Closing Date of each of the following conditions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Representations
and Warranties</U>. The representations and warranties of PFG (i) set forth in <U>Section 3.02</U> and <U>Section 3.09(b)</U>
shall be true and correct in all respects as of the date of this Agreement and as of the Closing Date as though made as of the
Closing Date, (ii) the first sentence of <U>Section 3.01</U>, <U>Section 3.04(a)</U>, <U>Section 3.05</U>, <U>Section 3.08</U>,
<U>Section 3.14,</U> and <U>Section 3.34</U> shall be true and correct in all material respects as of the date of this Agreement
and as of the Closing Date with the same effect as though made as of the Closing Date (except to the extent expressly made as
of an earlier date, in which case as of such date) and (iii) set forth in this Agreement, other than those sections specifically
identified in clauses (i) or (ii) of this <U>Section 6.03(a)</U>, shall be true and correct (disregarding all qualifications or
limitations as to &ldquo;materiality&rdquo;, &ldquo;Material Adverse Effect&rdquo; and words of similar import set forth therein)
as of the date of this Agreement and as of the Closing Date with the same effect as though made as of the Closing Date (except
to the extent expressly made as of an earlier date, in which case as of such date), except, in the case of this clause (iii),
where the failure to be true and correct would not, individually or in the aggregate, reasonably be expected to have a Material
Adverse Effect with respect to PFG. SMBK shall have received a certificate signed on behalf of PFG by the Chief Executive Officer
or the Chief Financial Officer of PFG to the foregoing effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Performance
of Obligations of PFG.</U> PFG shall have performed and complied with all of its obligations under this Agreement in all material
respects at or prior to the Closing Date, and SMBK shall have received a certificate, dated the Closing Date, signed on behalf
of PFG by PFG&rsquo;s Chief Executive Officer and Chief Financial Officer, to such effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No Material Adverse Effect</U>. Since the date of this Agreement (i) no change or event has occurred which has resulted
in PFG or any of its Subsidiaries being subject to a Material Adverse Effect and (ii) no condition, event, fact, circumstance or
other occurrence has occurred that may reasonably be expected to have or result in such parties being subject to a Material Adverse
Effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Bank Plan of Merger.</U> Except as otherwise contemplated by <U>Section 1.03</U>, the Bank Plan of Merger shall have
been executed and delivered.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Dissenting Shares.</U> Dissenting Shares shall be less than 7.5% of the issued and outstanding shares of PFG Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Pre-Closing Divestitures</U>. PFG or its applicable Subsidiaries shall have completed the Required Pre-Closing Divestitures
in a manner that is reasonably acceptable to SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Employee Arrangements</U>. SMBK and / or PFG, as applicable, shall have entered into employment arrangements with the
PFG employees listed on <U>SMBK Disclosure Schedule 6.03(g)</U> on commercially reasonable terms that are substantially consistent
with those listed on <U>SMBK Disclosure Schedule 6.03(g)</U> (the &ldquo;<U>Required Employment Arrangements</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(h)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Consents
and Approvals.</U> PFG has received, in form and substance satisfactory to PFG and SMBK, all consents, approvals, waivers and
other assurances from all non-governmental third parties which are required to be obtained under the terms of any contract, agreement
or instrument to which PFG or any of its Subsidiaries is a party or by which any of their respective properties is bound in order
to prevent the consummation of the transactions contemplated by this Agreement from constituting a default under such contract,
agreement or instrument or creating any lien, claim or charge upon any of the assets of PFG or any of its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Certification
of Non-Foreign Status</U>. SMBK shall have received from PFG, under penalties of perjury, (i) a notice to the IRS conforming to
the requirements of Regulations Section 1.897-2(h) executed (which, for the avoidance of doubt, shall be mailed to the IRS by
SMBK within thirty (30) days of receipt from PFG) by PFG and (ii) a certificate stating that PFG is not and has not been a United
States real property holding corporation, pursuant to Regulations Section 1.1445-2(c)(3) and in form and in substance required
under Regulations Section 1.897-2(h), dated as of the Closing Date, and as reasonably acceptable to SMBK<FONT STYLE="background-color: white">.</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 6.04<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Frustration
of Closing Conditions</U>. Neither SMBK nor PFG may rely on the failure of any condition set forth in <U>Section 6.01</U>, <U>Section
6.02</U> or <U>Section 6.03</U>, as the case may be, to be satisfied if such failure was caused by such Party&rsquo;s failure
to use its reasonable best efforts to consummate any of the transactions contemplated hereby, as required by and subject to <U>Section
5.03</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">ARTICLE
VII<BR>
TERMINATION</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 7.01<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Termination</U>. This Agreement may be terminated, and the transactions contemplated hereby may be abandoned:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Mutual
Consent</U>. At any time prior to the Effective Time, by the mutual consent, in writing, of SMBK and PFG if the board of directors
of SMBK and the board of directors of PFG each so determines by vote of a majority of the members of its entire board.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No Regulatory Approval</U>. By SMBK or PFG, if either of their respective boards of directors so determines by a vote
of a majority of the members of its entire board, in the event any Regulatory Approval required for consummation of the transactions
contemplated by this Agreement shall have been denied by final, non-appealable action by such Governmental Authority or an application
therefor shall have been permanently withdrawn at the request of a Governmental Authority.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>No Shareholder Approval</U>. By either SMBK or PFG (provided, in the case of PFG, that it shall not be in breach of any
of its obligations under <U>Section 5.04</U>), if the Requisite PFG Shareholder Approval at the PFG Meeting shall not have been
obtained by reason of the failure to obtain the required vote at a duly held meeting of such shareholders or at any adjournment
or postponement thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Breach
of Representations and Warranties</U>. This Agreement may be terminated at any time prior to the Effective Time by action of either
the board of directors of SMBK or the board of directors of PFG (provided, that the terminating party is not then in material
breach of any representation, warranty, covenant or other agreement contained herein) if there shall have been a material breach
of any of the covenants or agreements or any of the representations or warranties (or any such representation or warranty shall
cease to be true) set forth in this Agreement on the part of PFG, in the case of a termination by SMBK, or SMBK, in the case of
a termination by PFG, which breach or failure to be true, either individually or in the aggregate with all other breaches by such
Party (or failures of such representations or warranties to be true), would constitute, if occurring or continuing on the Closing
Date, the failure of a condition set forth in <U>Section 6.02</U>, in the case of a termination by PFG, or <U>Section 6.03</U>,
in the case of a termination by SMBK, and which is not cured by the earlier of the (i) two business days prior to the Termination
Date or (ii) 30 days following written notice to the PFG, in the case of a termination by SMBK, or to SMBK, in the case of a termination
by the PFG, or by its nature or timing cannot be cured during such period.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Delay</U>. By either SMBK or PFG if the Merger shall not have been consummated on or before June 30, 2020, <I>provided</I>,
<I>however</I>, that such date will be automatically extended to September 30, 2020, if the only outstanding condition to Closing
under <U>Article VI</U> is the receipt of all Regulatory Approvals (the &ldquo;<B><I>Expiration Date</I></B>&rdquo;), unless the
failure of the Closing to occur by such date shall be due to a material breach of this Agreement by the Party seeking to terminate
this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(f)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Failure
to Recommend; Etc</U>. In addition to and not in limitation of SMBK&rsquo;s termination rights under <U>Section 7.01(e)</U>, by
SMBK if (i)&nbsp;there shall have been a material breach of <U>Section 5.04</U> or <U>Section 5.09</U> by PFG, or (ii) the board
of directors of PFG takes an Adverse Recommendation Action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(g)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Superior Proposal</U>. By PFG at any time before obtaining the Requisite PFG Shareholder Approval if the board of directors
of PFG authorizes PFG, in compliance with the terms of this Agreement, to enter into a binding definitive agreement in respect
of a Superior Proposal with a third party, provided, that PFG shall have paid any amounts due pursuant to <U>Section 7.02</U> in
accordance with the terms, and at the times, specified therein; <U>provided</U>, <U>further</U>, that, in the event of such termination,
PFG concurrently enters into such binding definitive agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 7.02<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Termination
Fee</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>In
recognition of the efforts, expenses and other opportunities foregone by SMBK while structuring and pursuing the Merger, PFG shall
pay to SMBK a termination fee equal to $2,000,000 (&ldquo;<B><I>Termination Fee</I></B>&rdquo;), by wire transfer of immediately
available funds to an account specified by SMBK in the event of any of the following: (i) if PFG terminates this Agreement pursuant
to <U>Section 7.01(g)</U>, then PFG shall pay SMBK the Termination Fee prior to and as a condition of such termination in accordance
with <U>Section 7.01(g)</U>; (ii) if SMBK terminates this Agreement pursuant to <U>Section 7.01(f)</U>, then PFG shall pay SMBK
the Termination Fee within one Business Day after notification of such termination has been provided to the other Party; or (iii)
if, after the date of this Agreement and prior to the termination of this Agreement, an Acquisition Proposal shall have been made
known to senior management of PFG or has been made directly to its shareholders generally or any Person shall have publicly announced
(and not withdrawn) an Acquisition Proposal with respect to PFG and (A) thereafter this Agreement is terminated (x) by either
SMBK or PFG pursuant to <U>Section 7.01(c)</U> because the Requisite PFG Shareholder Approval shall not have been obtained or
(y) by SMBK pursuant to <U>Section 7.01(d)</U>, and (B) prior to the date that is twelve months after the date of such termination,
PFG enters into any agreement or consummates a transaction with respect to an Acquisition Proposal (whether or not the same Acquisition
Proposal as that referred to above), then PFG shall, on the earlier of the date it enters into such agreement and the date of
consummation of such transaction, pay SMBK the Termination Fee, <I>provided</I>, that for purposes of this <U>Section 7.02(a)(iii)</U>,
all references in the definition of Acquisition Proposal to &ldquo;20%&rdquo; shall instead refer to &ldquo;50%&rdquo;.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>PFG
and SMBK each agree that the agreements contained in this <U>Section 7.02</U> are an integral part of the transactions contemplated
by this Agreement, and that, without these agreements, SMBK would not enter into this Agreement; accordingly, if PFG fails promptly
to pay any amounts due under this <U>Section 7.02</U>, PFG shall pay interest on such amounts from the date payment of such amounts
were due to the date of actual payment at the rate of interest equal to the sum of (i)&nbsp;the rate of interest published from
time to time in The Wall Street Journal, Eastern Edition (or any successor publication thereto), designated therein as the prime
rate on the date such payment was due, plus (ii) 200 basis points, together with the costs and expenses of SMBK (including reasonable
legal fees and expenses) in connection with such suit.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Notwithstanding
anything to the contrary set forth in this Agreement, the Parties agree that if PFG pays or causes to be paid to SMBK the Termination
Fee in accordance with <U>Section 7.02(a)</U>, PFG (or any successor in interest of PFG) will not have any further obligations
or liabilities to SMBK with respect to this Agreement or the transactions contemplated by this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 7.03<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Effect
of Termination</U>. Except as set forth in <U>Section 7.02(c)</U>, termination of this Agreement will not relieve a breaching
party from liability for any breach of any covenant, agreement, representation or warranty of this Agreement (a) giving rise to
such termination and (b) resulting from fraud or any willful and material breach.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">ARTICLE
VIII<BR>
DEFINITIONS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 8.01<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Definitions</U>. The following terms are used in this Agreement with the meanings set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>AAA Balance</I></B>&rdquo;
has the meaning set forth in <U>Section 5.23</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>AAA Dividend</I></B>&rdquo;
has the meaning set forth in <U>Section 5.23</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Acquisition Proposal</I></B>&rdquo;
has the meaning set forth in <U>Section 5.09(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Acquisition Transaction</I></B>&rdquo;
has the meaning set forth in <U>Section 5.09(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Adverse Recommendation Action</I></B>&rdquo;
Has the meaning set forth in <U>Section 5.09(d)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Affiliate</I></B>&rdquo; means,
with respect to any Person, any other Person controlling, controlled by or under common control with such Person. As used in this
definition, &ldquo;control&rdquo; (including, with its correlative meanings, &ldquo;controlled by&rdquo; and &ldquo;under common
control with&rdquo;) means the possession, directly or indirectly, of power to direct or cause the direction of the management
and policies of a Person whether through the ownership of voting securities, by contract or otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Aggregate Cash Consideration</I></B>&rdquo;
has the meaning set forth in <U>Section 2.01(d).</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Aggregate Stock Consideration</I></B>&rdquo;
has the meaning set forth in <U>Section 2.01(d).</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Agreement</I></B>&rdquo; has
the meaning set forth in the preamble to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Articles of Merger</I></B>&rdquo;
has the meaning set forth in <U>Section 1.04(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>ASC 320</I></B>&rdquo; means
GAAP Accounting Standards Codification Topic 320.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Associate</I></B>&rdquo; when
used to indicate a relationship with any Person means (1) any corporation or organization (other than PFG or any of its Subsidiaries)
of which such Person is an officer or partner or is, directly or indirectly, the beneficial owner of 10% or more of any class of
equity securities, (2) any trust or other estate in which such Person has a substantial beneficial interest or serves as trustee
or in a similar fiduciary capacity, or (3) any relative or family member of such Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Bank Merger</I></B>&rdquo;
has the meaning set forth in <U>Section 1.03</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Bank Plan of Merger</I></B>&rdquo;
has the meaning set forth in <U>Section 1.03</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Bank Secrecy Act</I></B>&rdquo;
means the Bank Secrecy Act of 1970, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>BOLI</I></B>&rdquo; has the
meaning set forth in <U>Section 3.32(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Book-Entry Shares</I></B>&rdquo;
means any non-certificated share held by book entry in PFG&rsquo;s stock transfer book, which immediately prior to the Effective
Time represents an outstanding share of PFG Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Burdensome Condition</I></B>&rdquo;
has the meaning set forth in <U>Section 5.06(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Business Day</I></B>&rdquo;
means Monday through Friday of each week, except a legal holiday recognized as such by the U.S. government or any day on which
banking institutions in the State of Tennessee are authorized or obligated to close.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Certificate</I></B>&rdquo;
means any outstanding certificate, which immediately prior to the Effective Time, represents an outstanding share of PFG Common
Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Claim</I></B>&rdquo; has the
meaning set forth in <U>Section 5.10(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Closing</I></B>&rdquo; and
&ldquo;<B><I>Closing Date</I></B>&rdquo; have the meanings set forth in <U>Section 1.04(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Code</I></B>&rdquo; has the
meaning set forth in the Recitals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Community Reinvestment Act</I></B>&rdquo;
means the Community Reinvestment Act of 1977, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Controlled Group Members</I></B>&rdquo;
means any of PFG&rsquo;s related organizations described in Code Sections 414.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Covered Employees</I></B>&rdquo;
has the meaning set forth in <U>Section 5.11(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>D&amp;O Insurance</I></B>&rdquo;
has the meaning set forth in <U>Section 5.10(d)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Derivative Transaction</I></B>&rdquo;
means any swap transaction, option, warrant, forward purchase or sale transaction, futures transaction, cap transaction, floor
transaction or collar transaction relating to one or more currencies, commodities, bonds, equity securities, loans, interest rates,
catastrophe events, weather-related events, credit-related events or conditions or any indexes, or any other similar transaction
(including any option with respect to any of these transactions) or combination of any of these transactions, including collateralized
mortgage obligations or other similar instruments or any debt or equity instruments evidencing or embedding any such types of transactions,
and any related credit support, collateral or other similar arrangements related to any such transaction or transactions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Determination Date</I></B>&rdquo;
means the date that is five (5) days prior to the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Dissenting Shareholder</I></B>&rdquo;
has the meaning set forth in <U>Section 2.01(c)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Dissenting Shares</I></B>&rdquo;
has the meaning set forth in <U>Section 2.01(c)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Dodd-Frank Act</I></B>&rdquo;
means the Dodd-Frank Wall Street Reform and Consumer Protection Act.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Effective Time</I></B>&rdquo;
has the meaning set forth in <U>Section 1.04(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><I>&ldquo;Enforceability Exception&rdquo;
</I></B>has the meaning set forth in <U>Section 3.05</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Environmental Law</I></B>&rdquo;
means any federal, state or local Law relating to: (a)&nbsp;pollution, the protection or restoration of the indoor or outdoor environment,
human health and safety, or natural resources, (b)&nbsp;the handling, use, presence, disposal, release or threatened release of
any Hazardous Substance, or (c)&nbsp;any injury or threat of injury to persons or property in connection with any Hazardous Substance.
The term Environmental Law includes, but is not limited to, the following statutes, as amended, any successor thereto, and any
regulations promulgated pursuant thereto, and any state or local statutes, ordinances, rules, regulations and the like addressing
similar issues: (a) Comprehensive Environmental Response, Compensation and Liability Act, as amended by the Superfund Amendments
and Reauthorization Act of 1986, as amended, 42 U.S.C. &sect; 9601 et seq.; the Resource Conservation and Recovery Act, as amended,
42 U.S.C. &sect; 6901, et seq.; the Clean Air Act, as amended, 42 U.S.C. &sect; 7401, et seq.; the Federal Water Pollution Control
Act, as amended, 33 U.S.C. &sect; 1251, et seq.; the Toxic Substances Control Act, as amended, 15 U.S.C. &sect; 2601, et seq.;
the Emergency Planning and Community Right to Know Act, 42 U.S.C. &sect; 1101, et seq.; the Safe Drinking Water Act; 42 U.S.C.
&sect; 300f, et seq.; the Occupational Safety and Health Act, 29 U.S.C. &sect; 651, et seq.; (b)&nbsp;common Law that may impose
liability (including without limitation strict liability) or obligations for injuries or damages due to the presence of or exposure
to any Hazardous Substance.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Equal Credit Opportunity Act</I></B>&rdquo;
means the Equal Credit Opportunity Act, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>ERISA</I></B>&rdquo; means
the Employee Retirement Income Security Act of 1974, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>ERISA Affiliate</I></B>&rdquo;
has the meaning set forth in <U>Section 3.15(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Exchange Act</I></B>&rdquo;
means the Securities Exchange Act of 1934, as amended, and the rules and regulations promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Exchange Agent</I></B>&rdquo;
means such exchange agent as may be designated by SMBK (which shall be SMBK&rsquo;s transfer agent), and reasonably acceptable
to PFG, to act as agent for purposes of conducting the exchange procedures described in <U>Article II</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Exchange Fund</I></B>&rdquo;
has the meaning set forth in <U>Section 2.07(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Expiration Date</I></B>&rdquo;
has the meaning set forth in <U>Section 7.01(f)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Fair Credit Reporting Act</I></B>&rdquo;
means the Fair Credit Reporting Act, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Fair Housing Act</I></B>&rdquo;
means the Fair Housing Act, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>FDIA</I></B>&rdquo; has the
meaning set forth in <U>Section 3.27</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>FDIC</I></B>&rdquo; means the
Federal Deposit Insurance Corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>FFIEC</I></B>&rdquo; means
the Federal Financial Institutions Examination Council.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Financial Statements</I></B>&rdquo;
has the meaning set forth in <U>Section 3.07(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>FRB</I></B>&rdquo; means the
Board of Governors of the Federal Reserve System.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>GAAP</I></B>&rdquo; means generally
accepted accounting principles in the United States of America, applied consistently with past practice, including with respect
to quantity and frequency.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Governmental Authority</I></B>&rdquo;
means any U.S. or foreign federal, state or local governmental commission, board, body, bureau or other regulatory authority or
agency, including, without limitation, courts and other judicial bodies, bank regulators, insurance regulators, applicable state
securities authorities, the SEC, the IRS or any self-regulatory body or authority, including any instrumentality or entity designed
to act for or on behalf of the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Hazardous Substance</I></B>&rdquo;
means any and all substances (whether solid, liquid or gas) defined, listed, or otherwise regulated as pollutants, hazardous wastes,
hazardous substances, hazardous materials, extremely hazardous wastes, flammable or explosive materials, radioactive materials
or words of similar meaning or regulatory effect under any present or future Environmental Law or that may have a negative impact
on human health or the environment, including, but not limited to, petroleum and petroleum products, asbestos and asbestos-containing
materials, polychlorinated biphenyls, lead, radon, radioactive materials, flammables and explosives, mold, mycotoxins, microbial
matter and airborne pathogens (naturally occurring or otherwise). Hazardous Substance does not include substances of kinds and
in amounts ordinarily and customarily used or stored for the purposes of cleaning or other maintenance or operations.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Holder</I></B>&rdquo; means
the holder of record of shares of PFG Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Home Mortgage Disclosure Act</I></B>&rdquo;
means Home Mortgage Disclosure Act of 1975, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Indemnified Parties</I></B>&rdquo;
and &ldquo;<B><I>Indemnifying Party</I></B>&rdquo; have the meanings set forth in <U>Section 5.10(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Informational Systems Conversion</I></B>&rdquo;
has the meaning set forth in <U>Section 5.13</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Insurance Policies</I></B>&rdquo;
has the meaning set forth in <U>Section 3.32(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Intellectual Property</I></B>&rdquo;
means (a)&nbsp;trademarks, service marks, trade names, Internet domain names, designs, logos, slogans, and general intangibles
of like nature, together with all goodwill, registrations and applications related to the foregoing; (b)&nbsp;patents and industrial
designs (including any continuations, divisionals, continuations-in-part, renewals, reissues, and applications for any of the foregoing);
(c)&nbsp;copyrights (including any registrations and applications for any of the foregoing); (d)&nbsp;Software (excluding off-the-shelf
Software); and (e)&nbsp;technology, trade secrets and other confidential information, know-how, proprietary processes, formulae,
algorithms, models, and methodologies.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>IRS</I></B>&rdquo; means the
United States Internal Revenue Service.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Knowledge</I></B>&rdquo; means,
with respect to PFG, the actual knowledge, of the Persons set forth in <U>PFG Disclosure Schedule 8.01</U>, after due inquiry of
their direct subordinates who would be likely to have knowledge of such matter, and with respect to SMBK, the actual knowledge
of the Persons set forth in <U>SMBK Disclosure Schedule 8.01</U>, after due inquiry of their direct subordinates who would be likely
to have knowledge of such matter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Law</I></B>&rdquo; means any
federal, state, local or foreign Law, statute, ordinance, rule, regulation, judgment, order, injunction, decree, arbitration award,
agency requirement, license or permit of any Governmental Authority that is applicable to the referenced Person.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Leases</I></B>&rdquo; has the
meaning set forth in <U>Section 3.30(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Letter of Transmittal</I></B>&rdquo;
has the meaning set forth in <U>Section 2.06</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Liens</I></B>&rdquo; means
any charge, mortgage, pledge, security interest, restriction, claim, lien or encumbrance, conditional and installment sale agreement,
charge, claim, option, rights of first refusal, encumbrances, or security interest of any kind or nature whatsoever (including
any limitation on voting, sale, transfer or other disposition or exercise of any other attribute of ownership).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Loans</I></B>&rdquo; has the
meaning set forth in <U>Section 3.22(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Material Adverse Effect</I></B>&rdquo;
with respect to any Party means (i) any change, development, effect, event, or circumstance that individually or in the aggregate
is, or is reasonably likely to be, material and adverse to the condition (financial or otherwise), results of operations, liquidity,
assets, deposits, liabilities, properties, or business of such party and its Subsidiaries, taken as a whole, or (ii) any change,
development or effect that individually or in the aggregate would, or would be reasonably likely to, materially impair the ability
of such Party to perform its obligations under this Agreement or otherwise materially impairs, or is reasonably likely to materially
impair, the ability of such Party to consummate the Merger and the transactions contemplated hereby; <I>provided</I>, <I>however</I>,
that, in the case of clause (i) only, a Material Adverse Effect shall not be deemed to include the impact of (A)&nbsp;changes after
the date of this Agreement in banking and similar Laws of general applicability or interpretations thereof by Governmental Authorities
(except to the extent that such change disproportionately adversely affects PFG and its Subsidiaries or SMBK and its Subsidiaries,
as the case may be, compared to other companies of similar size operating in the same industry in which PFG and SMBK operate, in
which case only the disproportionate effect will be taken into account), (B)&nbsp;changes after the date of this Agreement in GAAP
or regulatory accounting requirements applicable to banks or bank holding companies generally (except to the extent that such change
disproportionately adversely affects PFG and its Subsidiaries or SMBK and its Subsidiaries, as the case may be, compared to other
companies of similar size operating in the same industry in which PFG and SMBK operate, in which case only the disproportionate
effect will be taken into account), (C) changes after the date of this Agreement in global, national, or regional political conditions
(including the outbreak of war or acts of terrorism) or in economic or market (including equity, credit and debt markets, as well
as changes in interest rates) conditions affecting the financial services industry generally (except to the extent that such change
disproportionately adversely affects PFG and its Subsidiaries or SMBK and its Subsidiaries, as the case may be, compared to other
companies of similar size operating in the same industry in which PFG and SMBK operate, in which case only the disproportionate
effect will be taken into account), (D)&nbsp;public disclosure of the transactions contemplated hereby or actions expressly required
by this Agreement or actions or omissions that are taken with the prior written consent of the other Party, or as otherwise expressly
permitted or contemplated by this Agreement, (E)&nbsp;any failure by PFG or SMBK to meet any internal or published industry analyst
projections or forecasts or estimates of revenues or earnings for any period (it being understood and agreed that the facts and
circumstances giving rise to such failure that are not otherwise excluded from the definition of Material Adverse Effect may be
taken into account in determining whether there has been a Material Adverse Effect), (F)&nbsp;changes in the trading price or trading
volume of SMBK Common Stock (it being understood and agreed that the facts and circumstances giving rise to such changes that are
not otherwise excluded from the definition of Material Adverse Effect may be taken into account in determining whether there has
been a Material Adverse Effect), and (G) the impact of this Agreement and the transactions contemplated hereby on relationships
with customers or employees (including the loss of personnel subsequent to the date of this Agreement).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Maximum D&amp;O Tail Premium</I></B>&rdquo;
has the meaning set forth in <U>Section 5.10(d)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Merger</I></B>&rdquo; has the
meaning set forth in the recitals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Merger Consideration</I></B>&rdquo;
means the Per Share Stock Consideration together with the Per Share Cash Consideration.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>NASDAQ</I></B>&rdquo; means
The NASDAQ Global Select Market.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>National Labor Relations Act</I></B>&rdquo;
means the National Labor Relations Act, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Notice of Superior Proposal</I></B>&rdquo;
has the meaning set forth in <U>Section 5.09(e)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Ordinary Course of Business</I></B>&rdquo;
means the ordinary, usual and customary course of business of PFG and PFG&rsquo;s Subsidiaries consistent with past practice, including
with respect to frequency and amount.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>OREO</I></B>&rdquo; has the
meaning set forth in <U>Section 3.22(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Party</I></B>&rdquo; or &ldquo;<B><I>Parties</I></B>&rdquo;
have the meaning set forth in the preamble.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Person</I></B>&rdquo; means
any individual, bank, corporation, partnership, association, joint-stock company, business trust, limited liability company, unincorporated
organization or other organization or firm of any kind or nature.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG</I></B>&rdquo; has the
meaning set forth in the preamble to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG 401(a) Plan</I></B>&rdquo;
has the meaning set forth in <U>Section 3.15(c)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Benefit Plans</I></B>&rdquo;
has the meaning set forth in <U>Section 3.15(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Cancelled Shares</I></B>&rdquo;
has the meaning set forth in <U>Section 2.01(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Common Stock</I></B>&rdquo;
means the common stock, $10.00 par value per share, of PFG.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Disclosure Schedule</I></B>&rdquo;
has the meaning set forth in <U>Article III</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Employees</I></B>&rdquo;
has the meaning set forth in <U>Section 3.15(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Expenses</I></B>&rdquo;
has the meaning set forth in <U>Section 5.20</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Financial Advisor</I></B>&rdquo;&nbsp;has
the meaning set forth in <U>Section 3.14</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Intellectual Property</I></B>&rdquo;
means the Intellectual Property used in or held for use in the conduct of the business of PFG and its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Investment Securities</I></B>&rdquo;
means the investment securities of PFG and its Subsidiaries.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Loan</I></B>&rdquo; has
the meaning set forth in <U>Section 3.22(c)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Material Contracts</I></B>&rdquo;
has the meaning set forth in <U>Section 3.12(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Meeting</I></B>&rdquo;
has the meaning set forth in <U>Section 5.04(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Recommendation</I></B>&rdquo;
has the meaning set forth in <U>Section 5.04(b)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Regulatory Agreement</I></B>&rdquo;
has the meaning set forth in <U>Section 3.13</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Representatives</I></B>&rdquo;
has the meaning set forth in <U>Section 5.09(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>&ldquo;<I>PFG Shareholder Representative</I>&rdquo;
</B>shall mean Ottis Phillips.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Subsequent Determination</I></B>&rdquo;
has the meaning set forth in <U>Section 5.09(e)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>PFG Voting Agreement</I></B>&rdquo;
or &ldquo;<B><I>PFG Voting Agreements</I></B>&rdquo; shall have the meaning set forth in the recitals to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Plan of Merger</I></B>&rdquo;
has the meaning set forth in <U>Section 1.03</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Progressive Bank</I></B>&rdquo;
has the meaning set forth in the Recitals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Proxy Statement-Prospectus</I></B>&rdquo;
means the proxy statement and prospectus and other proxy solicitation materials of SMBK and PFG relating to the PFG Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Registration Statement</I></B>&rdquo;
means the Registration Statement on Form S-4 to be filed with the SEC by SMBK in connection with the issuance of shares of SMBK
Common Stock in the Merger (including the Proxy Statement-Prospectus constituting a part thereof).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Regulations</I></B>&rdquo;
means the final and temporary regulations promulgated under the Code by the United States Department of the Treasury.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Regulatory Approval</I></B>&rdquo;
has the meaning set forth in <U>Section 3.06(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Requisite PFG Shareholder Approval</I></B>&rdquo;
means approval of this Agreement by a vote (in person or by proxy) of the majority of the outstanding shares of PFG Common Stock
entitled to vote thereon at the PFG Meeting.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Rights</I></B>&rdquo; means,
with respect to any Person, warrants, options, rights, convertible securities and other arrangements or commitments which obligate
the Person to issue or dispose of any of its capital stock or other ownership interests.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Sarbanes-Oxley Act</I></B>&rdquo;
means the Sarbanes-Oxley Act of 2002, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>SEC</I></B>&rdquo; means the
Securities and Exchange Commission.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Securities Act</I></B>&rdquo;
means the Securities Act of 1933, as amended, and the rules and regulations promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>SmartBank</I></B>&rdquo; has
the meaning set forth in the Recitals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>SMBK</I></B>&rdquo; has the
meaning set forth in the preamble to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>SMBK Average Stock Price</I></B>&rdquo;
means the average closing price of the SMBK Common Stock as reported on the NASDAQ for the 10 consecutive Trading Days ending on
the Trading Day immediately prior to the Determination Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>SMBK Common Stock</I></B>&rdquo;
means the common stock, $1.00 par value per share, of SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>SMBK Disclosure Schedule</I></B>&rdquo;
has the meaning set forth in <U>Article IV</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>SMBK Reports</I></B>&rdquo;
has the meaning set forth in <U>Section 4.05(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Software</I></B>&rdquo; means
computer programs, whether in source code or object code form (including any and all software implementation of algorithms, models
and methodologies), databases and compilations (including any and all data and collections of data), and all documentation (including
user manuals and training materials) related to the foregoing.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Subsidiary</I></B>&rdquo; means,
with respect to any party, any corporation or other entity of which a majority of the capital stock or other ownership interest
having ordinary voting power to elect a majority of the board of directors or other persons performing similar functions are at
the time directly or indirectly owned by such party. Any reference in this Agreement to a Subsidiary of PFG means, unless the context
otherwise requires, any current or former Subsidiary of PFG.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Superior Proposal</I></B>&rdquo;
has the meaning set forth in <U>Section 5.09(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Surviving Bank</I></B>&rdquo;
has the meaning set forth in <U>Section 1.03</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Surviving Entity</I></B>&rdquo;
has the meaning set forth in the Recitals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Tax</I></B>&rdquo; and &ldquo;<B><I>Taxes</I></B>&rdquo;
mean all federal, state, local or foreign income, gross income, gains, gross receipts, sales, use, ad valorem, goods and services,
capital, production, transfer, franchise, windfall profits, license, withholding, payroll, employment, disability, employer health,
excise, estimated, severance, stamp, occupation, property, environmental, custom duties, unemployment, escheat, unclaimed property
or other taxes of any kind whatsoever, together with any interest, additions or penalties thereto and any interest in respect of
such interest and penalties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Tax Returns</I></B>&rdquo;
means any return, amended return, declaration or other report (including but not limited to elections, declarations, schedules,
estimates and information returns) required to be filed with any Governmental Authority with respect to any Taxes.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>TBCA</I></B>&rdquo; has the
meaning set forth in <U>Section 1.01</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Termination Fee</I></B>&rdquo;
has the meaning set forth in <U>Section 7.02(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>The date hereof</I></B>&rdquo;
or &ldquo;<B><I>the date of this Agreement</I></B>&rdquo; means the date first set forth above in the preamble to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>TDFI</I></B>&rdquo; has the
meaning set forth in <U>Section 3.06(a)</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&ldquo;<B><I>Trading Day</I></B>&rdquo;
means any day on which the NASDAQ is open for trading; provided that a &ldquo;Trading Day&rdquo; only includes those days that
have a scheduled closing time of 4:00 p.m. (Eastern Time).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>Truth in Lending Act</I></B>&rdquo;
means the Truth in Lending Act of 1968, as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;<B><I>USA PATRIOT Act</I></B>&rdquo;
means the USA PATRIOT Act of 2001, Public Law 107-56, and the regulations promulgated thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">ARTICLE
IX<BR>
MISCELLANEOUS</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-transform: uppercase; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 9.01<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Survival</U>.
No representations, warranties, agreements or covenants contained in this Agreement shall survive the Effective Time other than
this <U>Section 9.01</U> and any other agreements or covenants contained herein that by their express terms are to be performed
after the Effective Time, including, without limitation, <U>Section 5.10</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 9.02<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Waiver;
Amendment</U>. Prior to the Effective Time and to the extent permitted by applicable Law, any provision of this Agreement may
be (a)&nbsp;waived by the Party benefited by the provision, provided such waiver is in writing and signed by such Party, or (b)&nbsp;amended
or modified at any time, by an agreement in writing among the Parties executed in the same manner as this Agreement, except that
after the PFG Meeting no amendment shall be made which by Law requires further approval by the shareholders of SMBK or PFG without
obtaining such approval. The waiver by any Party of a breach of any provision of this Agreement shall not operate or be construed
as a further or continuing waiver of such breach or as a waiver of any other or subsequent breach.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 9.03<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Governing Law; Jurisdiction; Waiver of Right to Trial by Jury</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>This
Agreement shall be governed by, and interpreted and enforced in accordance with, the internal, substantive laws of the State of
Tennessee, without regard for conflict of law provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
Party agrees that it will bring any action or proceeding in respect of any claim arising out of or related to this Agreement or
the transactions contemplated hereby exclusively in any federal or state court of competent jurisdiction located in the State
of Tennessee (the &ldquo;<B><I>Tennessee Courts</I></B>&rdquo;), and, solely in connection with claims arising under this Agreement
or the transactions that are the subject of this Agreement, (i) irrevocably submits to the exclusive jurisdiction of the Tennessee
Courts, (ii) waives any objection to laying venue in any such action or proceeding in the Tennessee Courts, (iii) waives any objection
that the Tennessee Courts are an inconvenient forum or do not have jurisdiction over any party and (iv) agrees that service of
process upon such party in any such action or proceeding will be effective if notice is given in accordance with <U>Section 9.05</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each
Party acknowledges and agrees that any controversy which may arise under this Agreement is likely to involve complicated and difficult
issues, and therefore each such Party hereby irrevocably and unconditionally waives any right such Party may have to a trial by
jury in respect of any litigation directly or indirectly arising out of or relating to this Agreement, or the transactions contemplated
by this Agreement. Each Party certifies and acknowledges that (i)&nbsp;no representative, agent, or attorney of any other party
has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the foregoing
waiver, (ii)&nbsp;each Party understands and has considered the implications of this waiver, (iii)&nbsp;each Party makes this
waiver voluntarily, and (iv)&nbsp;each Party has been induced to enter into this Agreement by, among other things, the mutual
waivers and certifications in this <U>Section 9.03</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 9.04<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Expenses</U>.
Except as otherwise provided in <U>Section 7.02</U>, each Party will bear all expenses incurred by it in connection with this
Agreement and the transactions contemplated hereby, including fees and expenses of its own financial consultants, accountants
and counsel. Nothing contained in this Agreement shall limit either Party&rsquo;s rights to recover any liabilities or damages
arising out of the other Party&rsquo;s willful breach of any provision of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 9.05<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Notices</U>. All notices, requests and other communications hereunder to a Party, shall be in writing and shall be deemed
properly given if delivered (a) personally, (b) by registered or certified mail (return receipt requested), with adequate postage
prepaid thereon, (c) by properly addressed electronic mail delivery (with confirmation of delivery receipt), or (d) by reputable
courier service to such Party at its address set forth below, or at such other address or addresses as such Party may specify from
time to time by notice in like manner to the Parties. All notices shall be deemed effective upon delivery.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>if
to SMBK, to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.13in">SmartFinancial, Inc.<BR>
5401 Kingston Pike</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.13in">Knoxville, Tennessee, 37319</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.13in">Attn: William Y. Carroll, Jr.<BR>
E-mail:&#9; Billy.Carroll@smartbank.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.13in">with a copy (which shall not constitute notice to SMBK)
to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.13in">Alston &amp; Bird LLP<BR>
One Atlantic Center<BR>
1201 West Peachtree Street<BR>
Atlanta, GA 30309<BR>
Attn:&#9;Mark Kanaly<BR>
E-mail: mark.kanaly@alston.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>if to PFG, to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.13in">Progressive Financial Group Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.13in">500 North Main Street</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.13in">Jamestown, TN 38556</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.13in">Attn: Ottis Phillips, Chairman<BR>
E-mail: 1951ottis@gmail.com<BR></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.1in"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.13in">with a copy (which shall not constitute notice to PFG)
to:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.13in">Baker, Donelson, Bearman, Caldwell &amp; Berkowitz,&nbsp;PC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.13in">Baker Donelson Center<BR>
Suite 800<BR>
211 Commerce Street<BR>
Nashville, TN 37201</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.13in">Attn. Steven J. Eisen<BR>
E-mail: sjeisen@bakerdonelson.com</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 9.06<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Entire
Understanding; No Third Party Beneficiaries</U>. This Agreement represents the entire understanding of the Parties and thereto
with reference to the transactions contemplated hereby, and this Agreement supersedes any and all other oral or written agreements
heretofore made. Except for the Indemnified Parties&rsquo; rights under <U>Section 5.10</U>, SMBK and PFG hereby agree that their
respective representations, warranties and covenants set forth herein are solely for the benefit of the other Party, in accordance
with and subject to the terms of this Agreement, and this Agreement is not intended to, and does not, confer upon any Person (including
any person or employees who might be affected by <U>Section 5.11</U>), other than the Parties, any rights or remedies hereunder,
including, the right to rely upon the representations and warranties set forth herein. The representations and warranties in this
Agreement are the product of negotiations between the Parties and are for the sole benefit of the Parties. Consequently, Persons
other than the Parties may not rely upon the representations and warranties in this Agreement as characterizations of actual facts
or circumstances as of the date of this Agreement or as of any other date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 9.07<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Severability</U>.
In the event that any one or more provisions of this Agreement shall for any reason be held invalid, illegal or unenforceable
in any respect, by any court of competent jurisdiction, such invalidity, illegality or unenforceability shall not affect any other
provisions of this Agreement and the Parties will use their commercially reasonable efforts to substitute a valid, legal and enforceable
provision which, insofar as practical, implements the purposes and intents of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 9.08<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Enforcement of the Agreement</U>. The Parties agree that irreparable damage would occur in the event that any of the
provisions of this Agreement were not performed in accordance with their specific terms or were otherwise breached. It is accordingly
agreed that the Parties shall be entitled to seek an injunction or injunctions to prevent breaches of this Agreement and to enforce
specifically the terms and provisions hereof in any court of the United States or any state having jurisdiction without having
to show or prove economic damages and without the requirement of posting a bond, this being in addition to any other remedy to
which they are entitled at law or in equity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 9.09<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT><U>Interpretation</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>When
a reference is made in this Agreement to sections, exhibits or schedules, such reference shall be to a section of, or exhibit
or schedule to, this Agreement unless otherwise indicated. The table of contents and captions and headings contained in this Agreement
are included solely for convenience of reference; if there is any conflict between a caption or heading and the text of this Agreement,
the text shall control. Whenever the words &ldquo;include,&rdquo; &ldquo;includes&rdquo; or &ldquo;including&rdquo; are used in
this Agreement, they shall be deemed to be followed by the words &ldquo;without limitation.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
Parties have participated jointly in the negotiation and drafting of this Agreement and the other agreements and documents contemplated
herein. In the event an ambiguity or question of intent or interpretation arises under any provision of this Agreement or any
other agreement or document contemplated herein, this Agreement and such other agreements or documents shall be construed as if
drafted jointly by the Parties, and no presumption or burden of proof shall arise favoring or disfavoring any party by virtue
of authorizing any of the provisions of this Agreement or any other agreements or documents contemplated herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
PFG Disclosure Schedule and the SMBK Disclosure Schedule, as well as all other schedules and all exhibits to this Agreement, shall
be deemed part of this Agreement and included in any reference to this Agreement. Any matter disclosed pursuant to any section
of either Disclosure Schedule shall be deemed disclosed for purposes of any other section of <U>Article III</U> or <U>Article
IV</U>, respectively, to the extent that applicability of the disclosure to such other section is reasonably apparent on the face,
notwithstanding the absence of a specific cross-reference, of such disclosure. No item is required to be set forth in either Disclosure
Schedule as an exception to a representation or warranty if its absence would not result in the related representation or warranty
being deemed untrue or incorrect. The mere inclusion of an item in either Disclosure Schedule as an exception to a representation
or warranty shall not be deemed an admission by either party that such item represents a material exception or fact, event or
circumstance or that such item is reasonably likely to result in a Material Adverse Effect, or that any breach or violation of
applicable Laws or any contract exists or has actually occurred. This Agreement shall not be interpreted or construed to require
any person to take any action, or fail to take any action, if to do so would violate any applicable Law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Any
reference contained in this Agreement to specific statutory or regulatory provisions or to any specific Governmental Authority
shall include any successor statute or regulation, or successor Governmental Authority, as the case may be. Unless the context
clearly indicates otherwise, the masculine, feminine, and neuter genders will be deemed to be interchangeable, and the singular
includes the plural and vice versa. As used herein, (i) the term &ldquo;made available&rdquo; means any document or other information
that was (a)&nbsp;provided by one party or its representatives to the other party or its representatives prior to the date hereof
or (b)&nbsp;included in the virtual data room of a party prior to the date hereof, and (ii) the word &ldquo;or&rdquo; is not exclusive.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(e)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Unless
otherwise specified, the references to &ldquo;Section&rdquo; and &ldquo;Article&rdquo; in this Agreement are to the Sections and
Article of this Agreement. When used in this Agreement, words such as &ldquo;herein&rdquo;, &ldquo;hereinafter&rdquo;, &ldquo;hereof&rdquo;,
&ldquo;hereto&rdquo;, and &ldquo;hereunder&rdquo; refer to this Agreement as a whole, unless the context clearly requires otherwise.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 9.10<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Assignment</U>.
No Party may assign either this Agreement or any of its rights, interests or obligations hereunder without the prior written approval
of the other Party, and any purported assignment in violation of this <U>Section 9.10</U> shall be void. Subject to the preceding
sentence, this Agreement shall be binding upon and shall inure to the benefit of the Parties and their respective successors and
permitted assigns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 9.11<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Counterparts</U>.
This Agreement may be executed and delivered by facsimile or by electronic data file and in one or more counterparts, all of which
shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each
of the Parties and delivered to the other Party, it being understood that all Parties need not sign the same counterpart. Signatures
delivered by facsimile or by electronic data file shall have the same effect as originals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">Section 9.12<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT><U>Privileged
Communications</U>. Any privilege attaching as a result of Baker Donelson Bearman Caldwell &amp; Berkowitz, PC representing PFG
or any Subsidiary thereof in connection with the transactions contemplated by this Agreement shall survive the Closing Date and
shall remain in effect; provided, that such privilege from and after the Closing Date shall be assigned to and controlled by the
PFG Shareholder Representative. In furtherance of the foregoing, each of the Parties hereto agrees to take the steps necessary
to ensure that any privilege attaching as a result of Baker Donelson Bearman Caldwell &amp; Berkowitz, PC representing PFG or
any Subsidiary thereof in connection with the transactions contemplated by this Agreement shall survive the Closing Date and shall
remain in effect and be assigned to and controlled by the PFG Shareholder Representative. As to any privileged attorney client
communications between Baker Donelson Bearman Caldwell &amp; Berkowitz, PC and PFG or any Subsidiary thereof prior to the Closing
Date (collectively, the &ldquo;Privileged Communications&rdquo;), SMBK, PFG, and each of their Subsidiaries (including, after
the Closing Date, the Surviving Entity and Surviving Bank), together with any of their respective affiliates, successors, or assigns,
agree that no such Party may use or rely on any of the Privileged Communications in any action or claim against or involving any
of the Parties hereto after the Closing Date.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[<I>Signature Page Follows</I>]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
the Parties have caused this Agreement to be executed in counterparts by their duly authorized officers, all as of the day and
year first above written.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 10pt">SMARTFINANCIAL,
    INC.</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="width: 5%; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="width: 45%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">/s/
    William Y. Carrol, Jr.</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt"><FONT STYLE="font-size: 10pt">William
    Y. Carroll, Jr.</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 10pt">President and Chief Executive
    Officer</FONT></TD></TR>
</TABLE>




<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">PROGRESSIVE FINANCIAL GROUP INC.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 5%; font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">By:</TD>
    <TD STYLE="width: 45%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; border-bottom: Black 1pt solid">/s/ Ottis Phillips</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">Name:</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Ottis Phillips</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Title:</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">President and Chief Executive Officer</TD></TR>
</TABLE>


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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[<FONT STYLE="font-variant: small-caps">Signature
Page to Agreement and Plan of Merger]</FONT></P>



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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>VOTING AGREEMENT</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>THIS VOTING AGREEMENT</B> (this &ldquo;<U>Agreement</U>&rdquo;)
is dated as of October 29, 2019, by and between the undersigned holder (&ldquo;<U>Shareholder</U>&rdquo;) of common stock of Progressive
Financial Group Inc., a Tennessee corporation (&ldquo;<U>PFG</U>&rdquo;), and SmartFinancial, Inc., a Tennessee corporation (&ldquo;<U>SMBK</U>&rdquo;).
All capitalized terms used but not defined herein shall have the meanings assigned to them in the Merger Agreement (defined below).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>RECITALS:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>WHEREAS</B>, concurrently with the execution
of this Agreement, SMBK and PFG are entering into an Agreement and Plan of Merger (as such agreement may be subsequently amended
or modified, the &ldquo;<U>Merger Agreement</U>&rdquo;), pursuant to which (i) PFG will merge with and into SMBK, with SMBK as
the surviving entity, and (ii) Progressive Savings Bank, a Tennessee state-chartered bank and wholly-owned subsidiary of PFG, will
merge with and into SmartBank, a Tennessee state-chartered bank and wholly-owned subsidiary of SMBK (&ldquo;<U>SmartBank</U>&rdquo;),
with SmartBank as the surviving bank (collectively, the &ldquo;<U>Merger</U>&rdquo;), and in connection with the Merger, each outstanding
share of common stock of PFG, $10.00 par value per share (&ldquo;<U>PFG Common Stock</U>&rdquo;), will be converted into the right
to receive the Merger Consideration and cash in lieu of fractional shares of SMBK Common Stock;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>WHEREAS</B>, Shareholder &ldquo;beneficially
owns&rdquo; (as such term is defined in Rule 13d-3 promulgated under the Securities Exchange Act of 1934, as amended (the &ldquo;<U>Exchange
Act</U>&rdquo;)) and is entitled to vote (or direct the voting of), directly or indirectly, the number of shares of PFG Common
Stock indicated on the signature page of this Agreement under the heading &ldquo;Total Number of Shares of PFG Common Stock Subject
to this Agreement;&rdquo; provided, that such shares do not include shares beneficially owned by Shareholder but subject to the
voting direction of a third party with regard to voting on the Merger (such shares, together with any additional shares of PFG
Common Stock subsequently acquired and &ldquo;beneficially owned&rdquo; (within the meaning of Rule 13d-3 promulgated under the
Exchange Act) with power to vote (or direct voting) by Shareholder during the term of this Agreement, including through the exercise
of any stock option or other equity award, warrant or similar instrument, being referred to collectively as the &ldquo;<U>Shares</U>&rdquo;);
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>WHEREAS</B>, it is a material inducement
to the willingness of SMBK to enter into the Merger Agreement that Shareholder execute and deliver this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>AGREEMENT:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>NOW, THEREFORE,</B> in consideration
of, and as a material inducement to, SMBK entering into the Merger Agreement and proceeding with the transactions contemplated
thereby, and in consideration of the expenses incurred and to be incurred by SMBK in connection therewith, Shareholder and SMBK
agree as follows:</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;1</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Agreement to
Vote Shares</U>. Shareholder, solely in his, her or its capacity as a shareholder of PFG, agrees that, while this Agreement is
in effect, at any meeting of shareholders of PFG, however called, or at any adjournment thereof, or in any other circumstances
in which Shareholder is entitled to vote, consent, or give any other approval in his, her or its capacity as a shareholder of PFG,
except as otherwise agreed to in writing in advance by SMBK, Shareholder shall vote (or cause to be voted), in person or by proxy,
all the Shares as to which the Shareholder has, directly or indirectly, the right to vote or direct the voting, (i)&nbsp;in favor
of approval of the Merger Agreement (including any amendments or modifications of the terms thereof approved by the board of directors
of PFG and adopted in accordance with the terms thereof); (ii) in favor of any proposal to adjourn or postpone such meeting, if
necessary, to solicit additional proxies to approve the Merger Agreement; (iii)&nbsp;against any action or agreement that would
reasonably be expected to result in a material breach of any covenant, representation or warranty or any other obligation or agreement
of PFG contained in the Merger Agreement or of Shareholder contained in this Agreement; and (iv)&nbsp;against any Acquisition Proposal
(as defined in the Merger Agreement) or any other action, agreement, or transaction that would reasonably be expected to prevent,
materially impede, or materially delay consummation of the transactions contemplated by the Merger Agreement or this Agreement.
Shareholder further agrees not to vote or execute any written consent to rescind or amend in any manner adverse to SMBK any prior
vote or written consent, as a shareholder of PFG, to approve or adopt the Merger Agreement unless this Agreement shall have been
terminated in accordance with its terms.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;2</U>.&#8239;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>No Transfers</U>.
Until the earlier of (i) the termination of this Agreement pursuant to <U>Section&nbsp;6</U> and (ii) receipt of the Requisite
PFG Shareholder Approval, Shareholder agrees not to, directly or indirectly, sell, transfer, pledge, assign or otherwise dispose
of, or enter into any contract, option, commitment, or other arrangement or understanding with respect to the sale, transfer, pledge,
assignment, or other disposition of, any of the Shares, except the following transfers shall be permitted: (a)&nbsp;transfers by
will or operation of Law, in which case this Agreement shall bind the transferee, (b)&nbsp;transfers pursuant to any pledge agreement,
subject to the pledgee agreeing in writing, prior to such transfer, to be bound by the terms of this Agreement, (c)&nbsp;transfers
in connection with estate and tax planning purposes, including transfers to relatives, trusts, and charitable organizations, subject
to each transferee agreeing in writing, prior to such transfer, to be bound by the terms of this Agreement, and (d) such transfers
as SMBK may otherwise permit in its sole discretion. Any transfer or other disposition in violation of the terms of this <U>Section&nbsp;2</U>
shall be null and void.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;3</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Representations
and Warranties of Shareholder</U>. Shareholder represents and warrants to and agrees with SMBK as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Shareholder
has all requisite capacity and authority to enter into and perform his, her, or its obligations under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>This
Agreement has been duly executed and delivered by Shareholder, and assuming the due authorization, execution and delivery by SMBK,
constitutes a valid and legally binding obligation of Shareholder enforceable against Shareholder in accordance with its terms,
subject to the Enforceability Exception.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
execution and delivery of this Agreement by Shareholder does not, and the performance by Shareholder of his, her, or its obligations
hereunder will not, violate or conflict with in any material respect, or constitute a material default under, any agreement, instrument,
contract, or other obligation or any order, arbitration award, judgment, or decree to which Shareholder is a party or by which
Shareholder is bound, or to Shareholder&rsquo;s knowledge any statute, rule, or regulation to which Shareholder is subject or,
in the event that Shareholder is a corporation, partnership, trust, or other entity, any charter, bylaw, or other organizational
document of Shareholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Shareholder
is the beneficial owner (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of and has good title to all of
the Shares, and the Shares are owned free and clear of any liens, security interests, charges, or other encumbrances. The Shares
do not include shares over which Shareholder exercises control in a fiduciary capacity for any other person or entity that is
not an Affiliate of Shareholder, and no representation by Shareholder is made with respect thereto. Shareholder has the right
to vote, or direct the voting of, the Shares, and none of the Shares is subject to any voting trust or other agreement, arrangement
or restriction with respect to the voting of the Shares, except as contemplated by this Agreement. Shareholder does not beneficially
own (within the meaning of Rule 13d-3 promulgated under the Exchange Act) any shares of capital stock of PFG other than the Shares
or any other securities convertible into or exercisable or exchangeable for such capital stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;4</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Shareholder acknowledges
and agrees that Shareholder has reviewed and understands Section 5.09(a) of the Merger Agreement and hereby agrees from the date
hereof until the termination of this Agreement in accordance with its terms that Shareholder shall be bound by Section 5.09(a)
of the Merger Agreement to the same extent (solely with respect to Shareholder&rsquo;s actions) as if Shareholder were directly
bound by PFG&rsquo;s obligations thereunder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;5</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Specific Performance;
Remedies; Attorneys&rsquo; Fees</U>. Shareholder acknowledges that it is a condition to the willingness of SMBK to enter into
the Merger Agreement that Shareholder execute and deliver this Agreement and that it will be impossible to measure in money the
damage to SMBK if Shareholder fails to comply with the obligations imposed by this Agreement and that, in the event of any such
failure, SMBK will not have an adequate remedy at law or in equity. Accordingly, Shareholder agrees that injunctive relief or
other equitable remedy is the appropriate remedy for any such failure and will not oppose the granting of such relief on the basis
that SMBK has an adequate remedy at law. Shareholder further agrees that Shareholder will not seek, and agrees to waive any requirement
for, the securing or posting of a bond in connection with SMBK seeking or obtaining such equitable relief. In addition, after
discussing the matter with Shareholder, SMBK shall have the right to inform any third party that SMBK reasonably believes to be,
or to be contemplating, participating with Shareholder, or receiving from Shareholder assistance, in violation of this Agreement,
of the terms of this Agreement and of the rights of SMBK hereunder, and that participation by any such persons with Shareholder
in activities in violation of Shareholder&rsquo;s agreement with SMBK set forth in this Agreement may give rise to claims by SMBK
against such third party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;6</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Term of Agreement; Termination</U>. The term of this
Agreement shall commence on the date hereof. This Agreement may be terminated at any time prior to consummation of the
transactions contemplated by the Merger Agreement by the mutual written agreement of the parties hereto, and shall be
automatically terminated upon the earlier to occur of (a) the Effective Time, (b) termination of the Merger Agreement, or (c)
two (2) years from the date hereof. Upon such termination, no party shall have any further obligations or liabilities
hereunder; <I>provided, however</I>, that such termination shall not relieve any party from liability for any breach of this
Agreement prior to such termination.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;7</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire
Agreement</U>. This Agreement represents the entire understanding of the parties hereto with reference to the transactions
contemplated hereby, and this Agreement supersedes any and all other oral or written agreements heretofore made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;8</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Modification and
Waiver</U>. No provision of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge
is agreed to in a writing signed by each party. No waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be deemed
a waiver of dissimilar provisions or conditions at the same or any prior or subsequent time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;9</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
In the event that any one or more provisions of this Agreement shall for any reason be held invalid, illegal, or unenforceable
in any respect, by any court of competent jurisdiction, such invalidity, illegality, or unenforceability shall not affect any other
provisions of this Agreement and the parties shall use their commercially reasonable efforts to substitute a valid, legal, and
enforceable provision which, insofar as practical, implements the purposes and intents of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;10</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Capacity
as Shareholder</U>. This Agreement shall apply to Shareholder solely in his, her, or its capacity as a shareholder of PFG, and
it shall not apply in any manner to Shareholder in his, her, or its capacity as a director or officer of PFG, if applicable. Nothing
contained in this Agreement shall be deemed to apply to, or limit or otherwise affect in any manner, the obligations of Shareholder
to comply with his, her, or its fiduciary duties as a director or officer of PFG, if applicable.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;11</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing
Law</U>. This Agreement shall be governed by, and interpreted and enforced in accordance with, the internal, substantive laws of
the State of Tennessee, without regard for conflict of law provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;12</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Jurisdiction</U>.
Any civil action, counterclaim, proceeding, or litigation arising out of or relating to this Agreement shall be brought exclusively
in any federal or state court of competent jurisdiction located in the State of Tennessee. Each party consents to the jurisdiction
of such Tennessee courts in any such civil action, counterclaim, proceeding, or litigation and waives any objection to the laying
of venue of any such civil action, counterclaim, proceeding, or litigation in such Tennessee courts.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;13</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>WAIVER
OF JURY TRIAL</U>. EACH PARTY ACKNOWLEDGES AND AGREES THAT ANY CONTROVERSY WHICH MAY ARISE UNDER THIS AGREEMENT IS LIKELY TO INVOLVE
COMPLICATED AND DIFFICULT ISSUES, AND THEREFORE EACH SUCH PARTY HEREBY IRREVOCABLY AND UNCONDITIONALLY WAIVES ANY RIGHT SUCH PARTY
MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY LITIGATION DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THIS AGREEMENT,
OR THE TRANSACTIONS CONTEMPLATED BY THIS AGREEMENT. EACH PARTY CERTIFIES AND ACKNOWLEDGES THAT (A) NO REPRESENTATIVE, AGENT, OR
ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION,
SEEK TO ENFORCE THE FOREGOING WAIVER, (B) EACH PARTY UNDERSTANDS AND HAS CONSIDERED THE IMPLICATIONS OF THIS WAIVER, (C) EACH
PARTY MAKES THIS WAIVER VOLUNTARILY, AND (D) EACH PARTY HAS BEEN INDUCED TO ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS,
THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS <U>SECTION 13</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;14</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Waiver
of Appraisal Rights</U>. To the extent permitted by applicable Law, Shareholder hereby waives any rights of appraisal or rights
to dissent from the Merger or to demand fair value for his, her, or its Shares in connection with the Merger, in each case, that
Shareholder may have under applicable Law. Shareholder further agrees not to commence or participate in, and to take all actions
necessary to opt out of any class in any class action with respect to, any claim, derivative or otherwise, against SMBK, SmartBank,
PFG, Progressive Savings Bank, or any of their respective successors relating to the negotiation, execution, or delivery of this
Agreement or the Merger Agreement or the consummation of the Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section&nbsp;15</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Disclosure</U>.
Shareholder hereby authorizes PFG and SMBK to publish and disclose in any announcement or disclosure required by the Securities
and Exchange Commission and in the Proxy Statement-Prospectus such Shareholder&rsquo;s identity and ownership of the Shares and
the nature of Shareholder&rsquo;s obligations under this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section 16</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Ownership</U>.
Nothing in this Agreement shall be construed to give SMBK any rights to exercise or direct the exercise of voting power as owner
of the Shares or to vest in SMBK any direct or indirect ownership or incidents of ownership of or with respect to any of the Shares.
All rights, ownership, and economic benefits of and relating to the Shares shall remain vested in and belong to the Shareholder,
notwithstanding the provisions of this Voting Agreement, and SMBK shall have no authority to manage, direct, superintend, restrict,
regulate, govern, or administer any of the policies or operations of PFG or to exercise any power or authority to direct the Shareholder
in voting any of the Shares, except as otherwise expressly provided herein.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section 17</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Fiduciary Duty</U>.
No provision of this Agreement shall preclude or in any way limit the Shareholder (or any representative of the Shareholder) from
exercising his or her fiduciary duties as a member of the board of directors or an officer of PFG or in any capacity with any other
entity.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section 18</U>.&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.
This Agreement may be executed and delivered by facsimile or by electronic data file and in one or more counterparts, all of which
shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each
of the parties and delivered to the other party, it being understood that all parties need not sign the same counterpart. Signatures
delivered by facsimile or by electronic data file shall have the same effect as originals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>[Signature Page Follows]</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>IN WITNESS WHEREOF</B>, the parties hereto
have executed and delivered this Agreement as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 10pt">SMARTFINANCIAL,
    INC.</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; width: 5%"><FONT STYLE="font-size: 10pt">By:</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; width: 45%; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Name:</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 10pt">William Y. Carroll, Jr.</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">Title:</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left"><FONT STYLE="font-size: 10pt">President and Chief Executive
    Officer</FONT></TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"><B>&nbsp;</B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font-size: 10pt; font-weight: bold; width: 50%"><FONT STYLE="font-size: 10pt">SHAREHOLDER</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="padding-bottom: 1pt">&nbsp;</TD></TR>
</TABLE>


<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; width: 10%"><FONT STYLE="font-size: 10pt">Printed
    Name:</FONT></TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; width: 40%; border-bottom: Black 1pt solid"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></TD></TR>
</TABLE>

<P STYLE="margin: 0"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%; font-size: 10pt">Total Number of Shares of PFG Common Stock <BR>
Subject to this Agreement:</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font-size: 10pt; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>


<P STYLE="margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT> <FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; text-align: center"><FONT STYLE="font-size: 10pt"><B><I>&nbsp;Signature Page &ndash;
Voting Agreement</I></B></FONT></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt">&nbsp;</FONT></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt"><FONT STYLE="font-size: 10pt"></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in; text-align: center; text-indent: -3in"><B><U>PLAN OF
BANK MERGER</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">This PLAN OF BANK MERGER
(this &ldquo;<U>Agreement</U>&rdquo;) is made and entered into as of October 29, 2019, by and between SmartBank, a Tennessee state
chartered banking institution with its main office located at 2430 Teaster Lane, Suite 205, Pigeon Forge, TN 37863 (&ldquo;<U>SmartBank</U>&rdquo;),
and Progressive Savings Bank, a Tennessee state charted banking institution with its main office located at 500 North Main Street,
Jamestown, TN 38556 (&ldquo;<U>Progressive Savings Bank</U>&rdquo;), to provide for the merger of Progressive Savings Bank with
and into SmartBank (the &ldquo;<U>Bank Merger</U>&rdquo;). SmartBank and Progressive Savings Bank are referred to herein as the
&ldquo;<U>Merging Banks</U>.&rdquo;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, pursuant
to an Agreement and Plan of Merger, dated as of October 29, 2019 (the &ldquo;<U>Parent Merger Agreement</U>&rdquo;), by and between
SmartFinancial, Inc., a Tennessee corporation and the sole shareholder of SmartBank (the &ldquo;<U>Company</U>&rdquo;), and Progressive
Financial Group Inc. (&ldquo;<U>PFG</U>&rdquo;), a Tennessee corporation and the sole shareholder of Progressive Savings Bank,
PFG will be merged with and into the Company (the &ldquo;<U>Parent Merger</U>&rdquo;), subject to the terms of and conditions set
forth in the Parent Merger Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, as
a result of the Parent Merger, Progressive Savings Bank will become a wholly-owned subsidiary of the Company;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, the
Parent Merger Agreement contemplates the subsequent merger of Progressive Savings Bank with and into SmartBank, with SmartBank
as the surviving bank (the &ldquo;<U>Surviving Bank</U>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, the
respective boards of directors of SmartBank and Progressive Savings Bank have adopted this Agreement and have determined that this
Agreement and the transactions contemplated by this Agreement, including the Bank Merger, are in the best interests of their respective
shareholder(s); and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>WHEREAS</B>, PFG
and the Company have approved this Agreement on October 29, 2019 in their capacity as the sole shareholders of Progressive Savings
Bank and SmartBank, respectively.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>NOW, THEREFORE</B>,
in consideration of the premises and of the covenants contained herein, and other good and valuable consideration, the receipt
and sufficiency of which are acknowledged, the Merging Banks, intending to be legally bound, hereby make, adopt and approve this
Agreement, and hereby prescribe the terms and conditions of the Bank Merger and the mode of effecting the Bank Merger as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ARTICLE 1</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>TERMS OF BANK MERGER</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 1.1<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT></B>The Bank Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(a)<FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT>At the Effective Time (as defined below), Progressive Savings Bank shall be merged with and into SmartBank in accordance
with, and with the effects provided in, this Agreement and applicable provisions of the Tennessee Banking Act, Tennessee Code Annotated
&sect;&nbsp;45-1-101 <I>et seq.</I>, and the Tennessee Business Corporation Act, Tennessee Code Annotated &sect;&nbsp;48-11-101
<I>et seq</I>. As a result of the Bank Merger, (i) each share of common stock of Progressive Savings Bank, par value $10.00 per
share, issued and outstanding immediately prior to the Effective Time shall cease to be outstanding and shall be cancelled for
no consideration and (ii) each share of capital stock of SmartBank, par value $1.00 per share, issued and outstanding immediately
prior to the Effective Time shall remain issued and outstanding and shall constitute the only shares of capital stock of the Surviving
Bank issued and outstanding immediately after the Effective Time. For purposes of this Agreement, the Bank Merger shall become
effective on the date and time specified in the articles of merger for the Bank Merger as filed with the Tennessee Secretary of
State (such time when the Bank Merger becomes effective, the &ldquo;<U>Effective Time</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><FONT STYLE="font-family: Times New Roman, Times, Serif">(b)<FONT STYLE="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></FONT>At the Effective Time, the Surviving Bank shall be considered the same business and corporate entity as each of the
Merging Banks and thereupon and thereafter all the property, rights, privileges, powers and franchises of each of the Merging Banks
shall vest in the Surviving Bank and the Surviving Bank shall be subject to and be deemed to have assumed all of the debts, liabilities,
obligations and duties of each of the Merging Banks and shall have succeeded to all of each of their relationships, fiduciary or
otherwise, as fully and to the same extent as if such property, rights, privileges, powers, franchises, debts, liabilities, obligations,
duties and relationships had been originally acquired, incurred or entered into by the Surviving Bank. The deposit-taking offices
of Progressive Savings Bank shall be operated by the Surviving Bank, and the savings accounts issued by Progressive Savings Bank
shall be issued on the same terms by the Surviving Bank. In addition, any reference to either of the Merging Banks in any contract,
will or document, whether executed or taking effect before or after the Effective Time, shall be considered a reference to the
Surviving Bank if not inconsistent with the other provisions of the contract, will or document; and any pending action or other
judicial proceeding to which either of the Merging Banks is a party shall not be deemed to have abated or to have been discontinued
by reason of the Bank Merger, but may be prosecuted to final judgment, order or decree in the same manner as if the Bank Merger
had not been made or the Surviving Bank may be substituted as a party to such action or proceeding, and any judgment, order or
decree may be rendered for or against it that might have been rendered for or against either of the Merging Banks as if the Bank
Merger had not occurred.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 1.2<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I>Name
of Surviving Bank and Principal Office.</I> The name of the Surviving Bank shall be &ldquo;SmartBank.&rdquo; The principal office
of SmartBank shall continue to be 2430 Teaster Lane, Suite 205, Pigeon Forge, Tennessee 37863 after the Effective Time. The branch
offices of Progressive Savings Bank and SmartBank immediately prior to the Effective Time will be operated as branch offices of
the Surviving Bank immediately following the Effective Time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 1.3<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I>&nbsp;&nbsp;Charter.
</I>At and after the Effective Time, the Charter of SmartBank shall be the Charter of the Surviving Bank until amended in accordance
with applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 1.4<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I>&nbsp;Bylaws.
</I>At and after the Effective Time, the Bylaws of SmartBank shall be the Bylaws of the Surviving Bank until amended in accordance
with applicable law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 1.5<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I>&nbsp;Directors
and Officers</I>. At and after the Effective Time, until changed in accordance with the Charter and Bylaws of the Surviving Bank,
(i) the directors of the Surviving Bank shall be the directors of SmartBank immediately prior to the Effective Time, provided
that the board of directors will be expanded to add Ottis Phillips following the Effective Time; and (ii) the executive officers
of the Surviving Bank shall be the executive officers of SmartBank immediately prior to the Effective Time. The directors and
executive officers of the Surviving Bank shall hold office in accordance with the Charter and Bylaws of the Surviving Bank. A
list of the anticipated directors and executive officers of the Surviving Bank, including the residence of each such person, is
set forth on <U>Exhibit A</U>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 1.6<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I>&nbsp;Capital
of Surviving Bank.</I> The amount of capital stock of the Surviving Bank authorized immediately following the Effective Time shall
continue to be 8,000,000 shares of common stock, par value $1.00, per share, and 2,000,000 shares of preferred stock, par value
$1.00 per share, of which 3,552,171 shares of common stock are issued and outstanding and no shares of preferred stock are issued
and outstanding as of the date hereof,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 1.7<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I>&nbsp;No
Preferred Stock</I>. No preferred stock will be issued in connection with, or as a result of, the transactions contemplated by
this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 1.8<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I>Offices</I>.
The offices of the Surviving Bank are set forth on <U>Exhibit B</U>. Also denoted on <U>Exhibit&nbsp;B</U> are the current offices
of each of the Merging Banks.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in"><FONT STYLE="font: 10pt Times New Roman, Times, Serif"><B>ARTICLE
II</B></FONT><B><FONT STYLE="text-transform: uppercase">&nbsp;</FONT></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center; text-indent: 0in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>MISCELLANEOUS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 2.1<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I>Conditions
Precedent.</I> The respective obligations of each party to consummate the Bank Merger pursuant to this Agreement shall be subject
to (a) the approval of this Agreement and the transactions contemplated hereby by (i) the Federal Deposit Insurance Corporation
(the &ldquo;<U>FDIC</U>&rdquo;), (ii) the Tennessee Department of Financial Institutions (the &ldquo;<U>TDFI</U>&rdquo;), (iii)
other regulatory authorities, as applicable, and (iv) the shareholder(s) of each Merging Bank, and (b) the consummation of the
Parent Merger.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 2.2<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I>Governing Law</I>. This Agreement shall be governed by and construed in accordance with the laws of the State of
Tennessee, without regard to any applicable principles of conflicts of laws that would result in the application of the law of
another jurisdiction.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 2.3<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I>Counterparts</I>.
This Agreement may be executed (by facsimile or otherwise) by any one or more of the parties in any number of counterparts, each
of which shall be deemed to be an original, but all such counterparts shall together constitute one and the same instrument.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 2.4<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT></B><I>Amendments. </I>To the extent permitted by the FDIC and the TDFI, this Agreement may be amended by a subsequent writing
signed by the parties hereto upon the approval of the board of directors of each of the parties hereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 2.5<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT></B><I>Successors.
</I>This Agreement shall be binding on the successors of SmartBank and Progressive Savings Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in"><B>Section 2.6<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT></B><I>Termination</I>. This Agreement may be terminated, and the transactions contemplated hereby may be abandoned, at
any time prior to the Effective Time by mutual written agreement of the parties hereto upon the approval of the board of directors
of each of the parties hereto. Additionally, this Agreement shall terminate automatically, without any action by the parties hereto,
in the event that the Parent Merger Agreement is terminated in accordance with its terms.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">[<I>Signature page follows</I>]</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">IN WITNESS WHEREOF,
SmartBank and Progressive Savings Bank have caused this Plan of Bank Merger to be executed by their duly authorized officers as
of the date first set forth above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLSPACING="0" CELLPADDING="0" STYLE="font: 10pt Times New Roman, Times, Serif; width: 100%; border-collapse: collapse">
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-bottom: 12pt; text-align: justify"><FONT STYLE="font-variant: small-caps"><B>SmartBank</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-variant: small-caps">Attest:</FONT></TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">
</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">
</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">Name:&nbsp;&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Name: William Y. Carroll, Jr.</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">Title:&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Title: President and Chief Executive Officer</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-bottom: 12pt; padding-left: 5.4pt; text-align: justify; text-indent: 0.45pt"><FONT STYLE="font-variant: small-caps"><B>Progressive Savings Bank</B></FONT></TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify"><FONT STYLE="font-variant: small-caps">Attest</FONT>:</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="3" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="border-bottom: Black 1pt solid">
</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">By:</TD>
    <TD STYLE="border-bottom: Black 1pt solid">
</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">Name: </TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Name: Ottis Phillips</TD></TR>
<TR STYLE="vertical-align: top">
    <TD STYLE="text-align: justify">Title:&nbsp;&nbsp;</TD>
    <TD STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD COLSPAN="2" STYLE="padding-right: 5.4pt; padding-left: 5.4pt; text-align: justify">&nbsp;</TD>
    <TD STYLE="text-align: justify">Title: President and Chief Executive Officer</TD></TR>
<TR>
    <TD STYLE="width: 48%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 5%">&nbsp;</TD>
    <TD STYLE="width: 1%">&nbsp;</TD>
    <TD STYLE="width: 41%">&nbsp;</TD></TR>
</TABLE>
<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B><I>Signature Page &ndash; Plan of Bank
Merger</I></B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT A</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>OFFICERS AND DIRECTORS OF SURVIVING BANK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>Plan of Bank Merger &ndash; Exhibit
A</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT B</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>BANKING OFFICES OF SURVIVING BANK</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>Plan of Bank Merger &ndash; Exhibit
B</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT C</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>NON-COMPETITION
AND NON-DISCLOSURE AGREEMENT</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">This Non-Competition and Non-Disclosure
Agreement (this &ldquo;<U>Agreement</U>&rdquo;), is dated as of October 29, 2019, by and between the undersigned, an individual
resident of the State of Tennessee (&ldquo;<U>Director</U>&rdquo;), and SmartFinancial, Inc., a Tennessee corporation (&ldquo;<U>SMBK</U>&rdquo;).
All capitalized terms used but not defined herein shall have the meanings assigned to them in the Merger Agreement (defined below).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>RECITALS:</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>WHEREAS</B>, concurrently with the execution
of this Agreement, SMBK and Progressive Financial Group Inc., a Tennessee corporation (&ldquo;<U>PFG</U>&rdquo;), are entering
into an Agreement and Plan of Merger (as such agreement may be subsequently amended or modified, the &ldquo;<U>Merger Agreement</U>&rdquo;),
pursuant to which (i) PFG will merge with and into SMBK, with SMBK as the surviving entity, and (ii) Progressive Savings Bank (&ldquo;<U>Progressive
Bank</U>&rdquo;), a Tennessee state-chartered bank and wholly-owned subsidiary of PFG, will merge with and into SmartBank, a Tennessee
state-chartered bank and wholly-owned subsidiary of SMBK (&ldquo;<U>SmartBank</U>&rdquo;), with SmartBank as the surviving bank
(collectively, the &ldquo;<U>Merger</U>&rdquo;);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>WHEREAS</B>, Director is a shareholder
and member of the Board of Directors of PFG or one of its Subsidiaries, and, as a result of the Merger and pursuant to the transactions
contemplated by the Merger Agreement, Director is expected to receive significant consideration in exchange for the shares of PFG
Common Stock held by Director;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>WHEREAS</B>, as of and prior to the date
hereof, Director serves and has served as a member of the Board of Directors of PFG or Progressive Bank, and, therefore, Director
has knowledge of the Confidential Information and Trade Secrets (each as hereinafter defined);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>WHEREAS</B>, as a result of the Merger,
SMBK will succeed to all of the Confidential Information and Trade Secrets, for which SMBK as of the Effective Time will have paid
valuable consideration and desires reasonable protection; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>WHEREAS</B>, it is a material prerequisite
to the consummation of the Merger that Director enter into this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center"><B>AGREEMENT:</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B>NOW, THEREFORE</B>, in consideration
of these premises and the mutual covenants and undertakings herein contained, SMBK and Director, each intending to be legally bound,
covenant and agree as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><U>Section 1</U>. &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Restrictive Covenants.</U></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Director
acknowledges that (i) SMBK has separately bargained for the restrictive covenants in this Agreement; and (ii) the types and periods
of restrictions imposed by the covenants in this Agreement are fair and reasonable to Director and such restrictions will not
prevent Director from earning a livelihood.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>Having acknowledged the foregoing, solely in the event that the Merger is consummated, Director covenants and agrees with
SMBK as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>From and after the Effective Time, Director will not disclose or use any Confidential Information or Trade Secrets for so
long as such information remains Confidential Information or a Trade Secret, as applicable, for any purpose, except for any disclosure
that is required by applicable Law. In the event that Director is required by Law to disclose any Confidential Information, Director
will: (A) if and to the extent permitted by Law, provide SMBK with prompt notice of such requirement prior to the disclosure so
that SMBK may waive the requirements of this Agreement or seek an appropriate protective order at SMBK&rsquo;s sole expense; and
(B) use reasonable efforts (without being required to incur personal expense) to obtain assurances that any Confidential Information
disclosed will be accorded confidential treatment. If, in the absence of a waiver or protective order, Director is nonetheless,
upon advice of his or her counsel, required to disclose Confidential Information, disclosure may be made only as to that portion
of the Confidential Information that counsel advises Director is required to be disclosed. Nothing contained in this Agreement
limits the Director&rsquo;s ability to file a charge or complaint with the Equal Employment Opportunity Commission, the Federal
Deposit Insurance Corporation, the Board of Governors of the Federal Reserve System, the Securities and Exchange Commission or
any other federal, state, or local governmental agency, authority or commission that has jurisdiction over SMBK or SmartBank or
any of their respective Subsidiaries or affiliates (the &ldquo;<U>Government Agencies</U>&rdquo;). The Director further understands
that this Agreement does not limit his or her ability to communicate with any Government Agencies or otherwise participate in any
investigation or proceeding that may be conducted by any Government Agency, including providing documents or other information,
without notice to PFG or SMBK any of their respective Subsidiaries or affiliates. This Agreement does not limit the Director&rsquo;s
right to receive an award for information provided to any Government Agencies. In addition, pursuant to the Defend Trade Secrets
Act of 2016, the Director understands that an individual may not be held criminally or civilly liable under any federal or state
trade secret law for the disclosure of a trade secret that (i) is made (A) in confidence to a federal, state, or local government
official, either directly or indirectly, or to an attorney; and (B) solely for the purpose of reporting or investigating a suspected
violation of law; or (ii) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding.&nbsp;
Further, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of Law may disclose
the employer&rsquo;s trade secrets to the attorney and use the trade secret information in the court proceeding if the individual
(y) files any document containing the trade secret under seal; and (z) does not disclose the trade secret, except pursuant to court
order.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(ii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Except
as expressly provided on Schedule I to this Agreement, for a period beginning at the Effective Time and ending two years after
the Effective Time, Director will not (except on behalf of or with the prior written consent of SMBK), on Director&rsquo;s own
behalf or in the service or on behalf of others, solicit or attempt to solicit any customer of SMBK or SmartBank or any of their
respective Subsidiaries (each a &ldquo;<U>Protected Party</U>&rdquo;), including, but not limited to, (A) customers of Progressive
Bank as of the date hereof or as of the Effective Time, and (B) prospective customers of Progressive Bank actually known by Director
to be actively sought by Progressive Bank as of the Effective Time, for the purpose of providing products or services that are
Competitive (as hereinafter defined) with those offered or provided by any Protected Party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Except
as expressly provided on Schedule I to this Agreement, for a period beginning at the Effective Time and ending two years after
the Effective Time, Director will not (except on behalf of or with the prior written consent of SMBK), either directly or indirectly,
on Director&rsquo;s own behalf or in the service or on behalf of others, act as a director, officer, or employee of any business
which is the same as or essentially the same as the business conducted by any Protected Party which has an office located within
the Restricted Territory.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iv)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>For
a period beginning at the Effective Time and ending two years after the Effective Time, Director will not, on Director&rsquo;s
own behalf or in the service or on behalf of others, solicit or recruit or attempt to solicit or recruit, directly or by assisting
others, any employee of any Protected Party, whether or not such employee is a full-time employee or a temporary employee of such
Protected Party, whether or not such employment is pursuant to a written agreement and whether or not such employment is for a
determined period or is at will, to cease working for such Protected Party; provided that the foregoing will not prevent the placement
of any general solicitation for employment not specifically directed towards employees of any Protected Party or hiring any such
person as a result thereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(c)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>For purposes of this Section 1, the following terms shall be defined as set forth below:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Competitive</U>,&rdquo;
with respect to particular products or services, means products or services that are the same as or substantially similar to the
products or services of any Protected Party.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(ii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Confidential
Information</U>&rdquo; means data and information:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(A)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>relating
to the business of PFG and its Subsidiaries, including Progressive Bank, regardless of whether the data or information constitutes
a Trade Secret;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2in; text-indent: -0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(B)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>disclosed
to Director or of which Director became aware as a consequence of Director&rsquo;s relationship with PFG or its Subsidiaries;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1.75in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(C)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>having value to PFG or its Subsidiaries and, as a result of the consummation of the transactions contemplated by the Merger
Agreement, SMBK and/or SmartBank; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(D)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>not generally known to competitors of SMBK, SmartBank, PFG or Progressive Bank.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">Confidential Information shall include Trade Secrets, methods
of operation, names of customers, price lists, financial information and projections, personnel data and similar information; provided,
however, that the terms &ldquo;Confidential Information&rdquo; and &ldquo;Trade Secrets&rdquo; shall not mean data or information
that (x) has been disclosed or is otherwise available to the public, except where such public disclosure has been made by Director
without authorization from PFG or SMBK or any of their respective Subsidiaries, (y) has been independently developed and disclosed
by others, or (z) has otherwise entered the public domain through lawful means.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Restricted
Territory</U>&rdquo; means each county in Tennessee in which Progressive Bank operates a banking office at the Effective Time
and each county contiguous to each of such counties.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">(iv)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>&ldquo;<U>Trade
Secret</U>&rdquo; means information, without regard to form, including technical or nontechnical data, a formula, a pattern, a
compilation, a program, a device, a method, a technique, a drawing, a process, financial data, financial plans, product plans,
or a list of actual or potential customers or suppliers, that is not commonly known by or available to the public, and which information:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(A)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>derives economic value, actual or potential, from not being generally known to, and not being readily ascertainable by proper
means by, other persons who can obtain economic value from its disclosure or use; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">(B)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>is the subject of efforts that are reasonable under the circumstances to maintain its secrecy.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(d)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Director acknowledges that irreparable loss and injury would result to SMBK upon the breach of any of the covenants contained
in this Section 1 and that damages arising out of such breach would be difficult to ascertain. Director hereby agrees that, in
addition to all other remedies provided at law or in equity, SMBK may petition and obtain from a court of law or equity, without
the necessity of proving actual damages, and without posting any bond or other security, both temporary and permanent injunctive
relief to prevent a breach by Director of any covenant contained in this Section 1, and shall be entitled to an equitable accounting
of all earnings, profits, and other benefits arising out of any such breach. In the event that the provisions of this Section 1
should ever be determined to exceed the time, geographic, or other limitations permitted by applicable Law, then such provisions
shall be modified so as to be enforceable to the maximum extent permitted by Law. If such provision(s) cannot be modified to be
enforceable, the provision(s) shall be severed from this Agreement to the extent unenforceable, and the remaining provisions and
any partially enforceable provisions shall remain in full force and effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section 2.</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Term</U>; <U>Termination</U>.
This Agreement may be terminated at any time by the written consent of the parties hereto, and this Agreement shall be automatically
terminated upon the earlier of (i) termination of the Merger Agreement; or (ii) two years following the Effective Time. For the
avoidance of doubt, the provisions of Section 1 shall only become operative upon the consummation of the Merger but, in such event,
shall survive the consummation of the Merger until the earlier of (i) two years after the Effective Time or (ii) a Change in Control.
Upon termination of this Agreement, no party shall have any further obligations or liabilities hereunder, except that termination
of this Agreement will not relieve a breaching party from liability for any breach of any provision of this Agreement occurring
prior to the termination of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section 3.</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Notices</U>.
All notices, requests, and other communications hereunder to a party shall be in writing and shall be deemed properly given if
delivered (a) personally, (b) by registered or certified mail (return receipt requested), with adequate postage prepaid thereon,
(c) by properly addressed electronic mail delivery (with confirmation of delivery receipt), or (d) by reputable courier service
to such party at its address set forth below, or at such other address or addresses as such party may specify from time to time
by notice in like manner to the parties hereto. All notices shall be deemed effective upon delivery.&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1in"></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 88%; font: 10pt Times New Roman, Times, Serif; margin-left: 1in">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 16%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">If to SMBK:</TD>
    <TD STYLE="width: 84%; font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">SmartFinancial, Inc.</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">5401 Kingston Pike</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Knoxville, Tennessee, 37319</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">Attn: William Y. Carroll, Jr.</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt">E-mail: Billy.Carroll@smartbank.com</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    <TD STYLE="font-size: 10pt; padding-bottom: 1pt">&nbsp;</TD>
    </TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: top">If to Director:</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: justify">The address of Director&rsquo;s principal residence as it appears in PFG&rsquo;s records as of the date hereof, as subsequently modified by Director&rsquo;s provision of notice regarding the same to SMBK.</TD>
    </TR>
</TABLE>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 2.5in; text-indent: -1.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section 4.</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Governing Law; Jurisdiction</U>.
This Agreement shall be governed by, and interpreted and enforced in accordance with, the internal, substantive laws of the State
of Tennessee, without regard for conflict of law provisions. Any civil action, counterclaim, proceeding, or litigation arising
out of or relating to this Agreement shall be brought exclusively in any federal or state court of competent jurisdiction located
in the State of Tennessee. Each party consents to the jurisdiction of such Tennessee courts in any such civil action, counterclaim,
proceeding, or litigation and waives any objection to the laying of venue of any such civil action, counterclaim, proceeding, or
litigation in such Tennessee courts. Service of any court paper may be effected on a party hereto by mail, as provided in this
letter, or in such other manner as may be provided under applicable Laws.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section 5.</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Modification and
Waiver</U>. No provision of this Agreement may be modified, waived, or discharged unless such waiver, modification, or discharge
is agreed to in a writing signed by Director and SMBK. No waiver by either party hereto at any time of any breach by the other
party hereto of, or compliance with, any condition or provision of this Agreement to be performed by such other party shall be
deemed a waiver of dissimilar provisions or conditions at the same or any prior or subsequent time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section 6.</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Severability</U>.
In the event that any one or more provisions of this Agreement shall for any reason be held invalid, illegal, or unenforceable
in any respect, by any court of competent jurisdiction, such invalidity, illegality, or unenforceability shall not affect any
other provisions of this Agreement and the parties shall use their commercially reasonable efforts to substitute a valid, legal,
and enforceable provision which, insofar as practical, implements the purposes and intents of this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section 7.</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Counterparts</U>.
This Agreement may be executed and delivered by facsimile or by electronic data file and in one or more counterparts, all of which
shall be considered one and the same agreement and shall become effective when one or more counterparts have been signed by each
of the parties and delivered to the other party, it being understood that all parties need not sign the same counterpart. Signatures
delivered by facsimile or by electronic data file shall have the same effect as originals.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section 8.</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Entire Agreement</U>.
This Agreement represents the entire understanding of the parties hereto with reference to the transactions contemplated hereby,
and this Agreement supersedes any and all other oral or written agreements heretofore made.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><U>Section 9.</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Construction;
Interpretation</U>. Whenever the singular number is used in this Agreement and when required by the context, the same shall include
the plural and vice versa, and the masculine gender shall include the feminine and neuter genders and vice versa. Whenever the
words &ldquo;include,&rdquo; &ldquo;includes,&rdquo; or &ldquo;including&rdquo; are used in this Agreement, they shall be deemed
to be followed by the words &ldquo;without limitation.&rdquo; The headings in this Agreement are for convenience only and are
in no way intended to describe, interpret, define, or limit the scope, extent, or intent of this Agreement or any of its provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>[Signature Page Follows]</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B>IN WITNESS WHEREOF</B>, the parties
hereto have executed and delivered this Agreement as of the date first written above.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">SMARTFINANCIAL, INC.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; width: 5%">By:</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; width: 45%; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Name:</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">William Y. Carroll, Jr.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif">Title:</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">President and Chief Executive Officer</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif">DIRECTOR</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; width: 10%">Printed Name:</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; padding-bottom: 1pt; width: 40%; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>Signature Page &ndash; Non-Competition
and Non-Disclosure Agreement</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"><B></B></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><U>Schedule I</U></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">For avoidance of doubt, the parties acknowledge
and agree that the restrictions set forth in Sections 1(b)(ii) and (iii) shall not apply to any of the following activities of
Director:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">1.</TD><TD STYLE="text-align: justify">The provision of legal services by Director to any Person.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">2.</TD><TD STYLE="text-align: justify">The offer and sale of insurance products by Director to any Person.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">3.</TD><TD STYLE="text-align: justify">The provision of investment advisory and brokerage services by Director to any Person.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">4.</TD><TD STYLE="text-align: justify">The provision of private equity/venture capital financing by Director to any Person.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">5.</TD><TD STYLE="text-align: justify">The provision of accounting services by Director to any Person.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">6.</TD><TD STYLE="text-align: justify">The provision of automobile financing in connection with the operation of automobile dealerships.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">7.</TD><TD STYLE="text-align: justify">The ownership of 5% or less of any class of securities of any Person.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 0.5in"></TD><TD STYLE="width: 0.5in">8.</TD><TD STYLE="text-align: justify">Obtaining banking-related services or products for entities owned, controlled or managed by Director.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>Non-Competition and Non-Disclosure
Agreement &ndash; Schedule I</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>EXHIBIT D</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>CLAIMS
LETTER</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>&nbsp;</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">October 29, 2019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">SmartFinancial, Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">5401 Kingston Pike</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Knoxville, Tennessee, 37319</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Ladies and Gentlemen:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">This letter is delivered pursuant to the
Agreement and Plan of Merger, dated as of October 29, 2019 (the &ldquo;<U>Merger Agreement</U>&rdquo;), by and between SmartFinancial,
Inc., a Tennessee corporation (&ldquo;<U>SMBK</U>&rdquo;), and Progressive Financial Group Inc., a Tennessee corporation (&ldquo;<U>PFG</U>&rdquo;).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify">Concerning any claims which the undersigned
may have against PFG or any of its Subsidiaries, including Progressive Savings Bank, a Tennessee state-chartered bank (each, a
&ldquo;<U>PFG Entity</U>&rdquo;), in his or her capacity as an officer, director, or employee of any PFG Entity, and in consideration
of the promises and the mutual covenants contained herein and in the Merger Agreement and the mutual benefits to be derived hereunder
and thereunder, and other good and valuable consideration, the receipt and sufficiency of which are acknowledged, the undersigned,
intending to be legally bound, hereby agrees as follows:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B><U>Section 1.</U> &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Definitions</U></B>.
Unless otherwise defined in this letter, capitalized terms used in this letter have the meanings given to them in the Merger Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><U>Section 2. </U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Release
of Certain Claims</U>.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(a)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The
undersigned hereby releases and forever discharges, effective upon the consummation of the Merger pursuant to the Merger Agreement,
each PFG Entity, and each of their respective directors and officers (in their capacities as such), and their respective successors
and assigns, and each of them (hereinafter, individually and collectively, the &ldquo;<U>Released Parties</U>&rdquo;) of and from
any and all liabilities, claims, demands, debts, accounts, covenants, agreements, obligations, costs, expenses, actions or causes
of action of every nature, character, or description (collectively, &ldquo;<U>Claims</U>&rdquo;), which the undersigned, solely
in his or her capacity as an officer, director, or employee of any PFG Entity has or claims to have, or previously had or claimed
to have, in each case as of the Effective Time, against any of the Released Parties, whether or not in law, equity or otherwise,
based in whole or in part on any facts, conduct, activities, transactions, events, or occurrences known or unknown, matured or
unmatured, contingent or otherwise (individually a &ldquo;<U>Released Claim</U>,&rdquo; and collectively, the &ldquo;<U>Released
Claims</U>&rdquo;), except for (i) compensation for services that have accrued but have not yet been paid in the ordinary course
of business consistent with past practice or other contract rights relating to severance, employment, stock options, and restricted
stock grants which have been disclosed in writing to SMBK on or prior to the date of the Merger Agreement, and (ii) the items
listed in <U>Section 2(b)</U> below.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">(b)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>For avoidance of doubt, the parties acknowledge and agree that the Released Claims do not include any of the following:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(i)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>any
Claims that the undersigned may have in any capacity other than as an officer, director, or employee of any PFG Entity, including,
but not limited to, (A) Claims as a borrower under loan commitments and agreements between the undersigned Progressive Savings
Bank, (B) Claims as a depositor under any deposit account with Progressive Savings Bank, (C) Claims as the holder of any Certificate
of Deposit issued by Progressive Savings Bank, (D) Claims on account of any services rendered by the undersigned in a capacity
other than as an officer, director, or employee of any PFG Entity; (E) Claims in his or her capacity as a shareholder of PFG,
(F) Claims as a holder of any check issued by any other depositor of Progressive Savings Bank, or (G) Claims for which the undersigned
would be entitled to make an insurance claim under applicable insurance policies maintained by a PFG Entity;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; margin-left: 1in"> (ii) &nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;the Claims excluded in <U>Section 2(a)(i)</U> above;</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iii)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>any
Claims that the undersigned may have under the Merger Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(iv)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>any
right to indemnification that the undersigned may have under the articles of incorporation or bylaws of any PFG Entity, under
Tennessee law or the Merger Agreement;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(v)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>any Claims that are (A) based upon facts and circumstances arising after the date hereof and prior to the Closing Date,
and (B) have been asserted in writing to PFG and SMBK prior to the Closing Date; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">(vi)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>any
rights or Claims listed on <U>Schedule I</U> to this Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in; text-align: justify"><B><U>Section 3.</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Forbearance</U></B>.
The undersigned shall forever refrain and forebear from commencing, instituting, or prosecuting any lawsuit, action, claim, or
proceeding before or in any court, regulatory, governmental, arbitral, or other authority to collect or enforce any Released Claims
which are released and discharged hereby.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"><B><U>Section 4.</U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Miscellaneous</U></B>.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">(a)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
</FONT>This letter shall be governed by, and interpreted and enforced in accordance with, the internal, substantive laws of the
State of Tennessee, without regard for conflict of law provisions.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">(b)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>This
letter contains the entire agreement between the parties with respect to the Released Claims released hereby, and the release
of Claims contained in this letter supersedes all prior agreements, arrangements, or understandings (written or otherwise) with
respect to such Released Claims and no representation or warranty, oral or written, express or implied, has been made by or relied
upon by any party hereto, except as expressly contained herein or in the Merger Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">(c)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>This
letter shall be binding upon and inure to the benefit of the undersigned and the Released Parties and their respective heirs,
legal representatives, successors, and assigns.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">(d)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>This letter may not be modified, amended, or rescinded except by the written agreement of the undersigned and the Released
Parties, it being the express understanding of the undersigned and the Released Parties that no term hereof may be waived by the
action, inaction, or course of delaying by or between the undersigned or the Released Parties, except in strict accordance with
this paragraph, and further that the waiver of any breach of the terms of this letter shall not constitute or be construed as the
waiver of any other breach of the terms hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">(e)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>The undersigned represents, warrants, and covenants that the undersigned is fully aware of the undersigned&rsquo;s rights
to discuss any and all aspects of this matter with any attorney chosen by him or her, and that the undersigned has carefully read
and fully understands all the provisions of this letter, and that the undersigned is voluntarily entering into this letter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">(f)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>This letter shall become effective upon the consummation of the Merger, and its operation to extinguish all of the Released
Claims released hereby is not dependent on or affected by the performance or non-performance of any future act by the undersigned
or the Released Parties. If the Merger Agreement is terminated for any reason, this letter shall be of no force or effect.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">(g)<FONT STYLE="font-family: Times New Roman, Times, Serif; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>If
any civil action, arbitration, or other legal proceeding is brought for the enforcement of this letter, or because of an alleged
dispute, breach, default, or misrepresentation in connection with any provision of this letter, the successful or prevailing party
or parties shall be entitled to recover reasonable attorneys&rsquo; fees, court costs, sales and use taxes, and all expenses even
if not taxable as court costs (including, without limitation, all such fees, taxes, costs, and expenses incident to arbitration,
appellate, bankruptcy, and post-judgment proceedings), incurred in that proceeding, in addition to any other relief to which such
party or parties may be entitled. Attorneys&rsquo; fees shall include, without limitation, paralegal fees, investigative fees,
administrative costs, sales and use taxes, and all other charges billed by the attorney to the prevailing party (including any
fees and costs associated with collecting such amounts).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">(h)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Each party acknowledges and agrees that any controversy which may arise under this letter is likely to involve complicated
and difficult issues, and therefore each such party hereby irrevocably and unconditionally waives any right such party may have
to a trial by jury in respect of any litigation directly or indirectly arising out of or relating to this letter, or the transactions
contemplated by this letter. Each party certifies and acknowledges that (i) no representative, agent, or attorney of any other
party has represented, expressly or otherwise, that such other party would not, in the event of litigation, seek to enforce the
foregoing waiver, (ii) each party understands and has considered the implications of this waiver, (iii) each party makes this waiver
voluntarily, and (iv) each party has been induced to enter into this letter by, among other things, the mutual waivers and certifications
in this Section.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">(i)<FONT STYLE="font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</FONT>Any civil action, counterclaim, proceeding, or litigation arising out of or relating to this letter shall be brought exclusively
in any federal or state court of competent jurisdiction located in the State of Tennessee. Each party consents to the jurisdiction
of such Tennessee court in any such civil action, counterclaim, proceeding, or litigation and waives any objection to the laying
of venue of any such civil action, counterclaim, proceeding, or litigation in such Tennessee court. Service of any court paper
may be effected on such party by mail, as provided in this letter, or in such other manner as may be provided under applicable
laws, rules of procedure, or local rules.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify; text-indent: 40.5pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><I>[Signature Pages Follow]</I></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="width: 50%; font: 10pt Times New Roman, Times, Serif">Sincerely,</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: middle">Signature of Director</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: middle">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left; vertical-align: middle">Name of Director</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>Signature Page &ndash; Claims Letter</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">On behalf of SmartFinancial, Inc., I hereby
acknowledge receipt of this letter as of this 29<SUP>th</SUP> day of October, 2019.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B></B></P>

<TABLE CELLPADDING="0" CELLSPACING="0" STYLE="border-collapse: collapse; width: 100%">
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">SMARTFINANCIAL, INC.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD COLSPAN="2" STYLE="font: bold 10pt Times New Roman, Times, Serif; text-align: left">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD STYLE="width: 50%">&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; width: 5%">By:</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; padding-bottom: 1pt; width: 45%; border-bottom: Black 1pt solid">&nbsp;</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Name:</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">William Y. Carroll, Jr.</TD></TR>
<TR STYLE="vertical-align: bottom">
    <TD>&nbsp;</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">Title:</TD>
    <TD STYLE="font: 10pt Times New Roman, Times, Serif; text-align: left">President and Chief Executive Officer</TD></TR>
</TABLE>


<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>Signature Page &ndash; Claims Letter</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"><B></B></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"><B></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 3in"><B>&nbsp;</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>Schedule I</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1in; text-align: center"><B>Additional Excluded Claims</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 1in; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B><I>Claims Letter &ndash; Schedule I</I></B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><A NAME="annexb"></A>Annex B</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; text-align: center; margin-bottom: 0pt"><IMG SRC="tm1924655d1_s4img003.jpg" ALT="">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">October 29, 2019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Board of Directors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Progressive Financial Group Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">500 North Main Street</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Jamestown, TN 38556</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Members of the Board:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">You have requested our opinion as to the
fairness, from a financial point of view, to the shareholders of Progressive Financial Group Inc. (&ldquo;PFG&rdquo; or the &ldquo;Company&rdquo;)
of the Merger Consideration (as defined below) to be received by the shareholders of the Company in the proposed merger (the &ldquo;Merger&rdquo;)
with SmartFinancial, Inc. (&ldquo;SMBK&rdquo;) whereby pursuant to the Agreement and Plan of Merger to be dated October 29, 2019
(&ldquo;the Agreement&rdquo;), PFG will, on the terms and subject to conditions set forth in this Agreement, merge with and into
SMBK. Capitalized terms used herein without definition have the meanings assigned to them in the Agreement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We understand that, each share of PFG Stock
(excluding Dissenting Shares and PFG Cancelled Shares) issued and outstanding immediately prior to the Effective Time shall cease
to be outstanding and shall be converted, in accordance with the terms of this Article II, into and exchanged for the right to
receive (i) an amount of cash equal to the Per Share Cash Consideration and (ii) a number of shares of SMBK Common Stock equal
to the Per Share Stock Consideration (together the &ldquo;Merger Consideration&rdquo;), where:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;Aggregate Cash Consideration&rdquo;
means an amount equal to $14,595,354.37, minus the amount of (i) the AAA Dividend, and (ii) the loss, if in excess of $250,000,
realized by PFG or its applicable Subsidiary on any Pre-Closing Divestiture.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;Aggregate Stock Consideration&rdquo;
means 1,292,592.556 shares of SMBK Common Stock.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;Outstanding Shares Number&rdquo;
means the number of shares of PFG Common Stock issued and outstanding as of the Effective Time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;Per Share Cash Consideration&rdquo;
means an amount of cash equal to the quotient obtained by dividing (A) the Aggregate Cash Consideration by (B) the Outstanding
Shares Number.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&ldquo;Per Share Stock Consideration&rdquo;
means a number of shares of SMBK Common Stock obtained by dividing (A) the Aggregate Stock Consideration by (B) the Outstanding
Shares Number.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Olsen Palmer LLC is an investment banking
firm that has acted as financial advisor to the Company in connection with the Merger. Olsen Palmer LLC, as part of its investment
banking services, is regularly engaged in the valuation of financial institutions and their securities in connection with mergers
and acquisitions and other corporate transactions. We will receive a fee for our services pursuant to the terms of our engagement
with the Company, a substantial portion of which is contingent upon consummation of the Merger. We will also receive a fee upon
execution of the Agreement and a fee for rendering this opinion. The Company has also agreed to indemnify us against certain liabilities
arising out of our engagement.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">2020 K Street, NW
<FONT STYLE="color: blue">&#9474;</FONT> Suite 450 <FONT STYLE="color: blue">&#9474;</FONT> Washington, D.C. 20006&nbsp;</P>

<P STYLE="margin-top: 0pt; text-align: center; margin-bottom: 0pt">202.808.3306 <FONT STYLE="color: blue">&#9474;</FONT> www.olsenpalmer.com</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Board of Directors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Progressive Financial Group Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">October 29, 2019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Page 2</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Olsen Palmer LLC has not provided investment
banking and financial advisory services to the Company or SMBK during the two-year period prior to the date hereof, except with
respect to the Merger. Olsen Palmer LLC may provide investment banking, financial advisory and other financial services to the
Company and/or SMBK in the future, for which Olsen Palmer LLC may receive compensation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In connection with this opinion, we have
made such reviews, analyses and inquiries as we have deemed necessary and appropriate under the circumstances. Among other things,
we have reviewed:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(i)</TD><TD>a draft version dated October 25, 2019 of the Agreement;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(ii)</TD><TD>certain financial statements and other historical financial information of the Company and SMBK that we deemed relevant;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(iii)</TD><TD>publicly available median analyst earnings estimates for SMBK for the years ending December 31, 2019, December 31, 2020 and
December 31, 2021;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(iv)</TD><TD>internal financial projections for the Company for the year ending December 31, 2019 and estimated long-term annual earnings
and balance sheet growth rates for the years ending December 31, 2020, December 31, 2021, December 31, 2022, December 31, 2023,
December 31, 2024, and December 31, 2025 as provided by the Company;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(v)</TD><TD>a comparison of certain financial information for the Company with similar institutions for which publicly available information
is available;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(vi)</TD><TD>the financial terms of certain recent business combinations in the commercial banking industry, to the extent publicly available;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(vii)</TD><TD>an estimated range of the intrinsic value of the Company based on assumptions relating to transaction expenses, purchase accounting
adjustments, cost savings, and future profitability;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(viii)</TD><TD>the current and historical reported prices and trading activity of SMBK Common Stock;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(ix)</TD><TD>the proforma financial impact of the Merger on SMBK based on certain assumptions relating to purchase accounting adjustments,
cost savings, transaction expenses and the anticipated regulatory impact of the Merger on SBMK;</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(x)</TD><TD>the current market environment generally and the banking industry in particular; and</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

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<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Board of Directors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Progressive Financial Group Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">October 29, 2019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Page 3</P>



<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif"></P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;</P>

<TABLE CELLPADDING="0" CELLSPACING="0" WIDTH="100%" STYLE="font: 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt"><TR STYLE="vertical-align: top">
<TD STYLE="width: 36pt"></TD><TD STYLE="width: 27pt">(xi)</TD><TD>such other information, financial studies, analyses and investigations and financial, economic and market criteria as we considered
relevant.</TD></TR></TABLE>

<P STYLE="margin-top: 0pt; margin-bottom: 0pt; font: 10pt Times New Roman, Times, Serif">&nbsp;&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We also discussed with certain members of
senior management of the Company and its representatives the business, financial condition, results of operations and prospects
of the Company and held similar discussions with certain members of the senior management of SMBK regarding the business, financial
condition, results of operations and prospects of SMBK.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">In performing our review, and for purposes
of rendering our opinion, we have relied upon the accuracy and completeness of all of the financial and other information that
was available to us from public sources, that was provided to us by the Company or SMBK or their representatives or that was otherwise
reviewed by us and have assumed, without independent verification, such accuracy and completeness of all such information. We have
further relied on the assurances of the management of the Company that they are not aware of any facts or circumstances that would
make any of such information inaccurate or misleading. We have not been asked to and have not undertaken an independent verification
of any of such information and we do not assume any responsibility or liability for the accuracy or completeness thereof. We did
not make an independent evaluation or appraisal of any assets, the collateral securing any assets or the liabilities (contingent
or otherwise) of the Company or any of its subsidiaries and no such evaluation or appraisal was provided to us. We render no opinion
or evaluation on the collectability of any assets or the future performance of any loans of the Company. We did not make an independent
evaluation of the adequacy of the allowance for loan losses of the Company, or the combined entity after the Merger and we have
not reviewed any individual credit files relating to SMBK or the Company. We have assumed, with your consent, that the allowance
for loan losses for both SMBK and the Company is adequate to cover such losses. We are not experts in the evaluation of allowances
for loan and lease losses and have not independently verified such allowances or reviewed or examined any individual loan or credit
files. We assumed, with your consent, that the respective allowances for loan and lease losses set forth in the financial statements
of SMBK and the Company are adequate to cover such losses and comply fully with applicable law, regulatory policy and sound banking
practices as of the date of such financial statements.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">We have assumed in all respects material
to our analysis that all of the representations and warranties contained in the Agreement and all related agreements are true and
correct, that each party to the Agreement and all related agreements will perform, in all material respects, all of the covenants
required to be performed by such party thereunder, that the conditions precedent in the Agreement are not waived and that the Merger
is lawful. We have also assumed that in the course of obtaining any necessary regulatory approvals for the consummation of the
Merger, no conditions will be imposed that will have a material adverse effect on the combined entity or contemplated benefits
of the Merger. In addition, we have relied upon and assumed, without independent verification, that the final form of the Agreement
will not differ in any respect from the version of the Agreement identified above. Finally, with your consent, we have relied upon
the advice the Company has received from its legal, accounting and tax advisors as to all legal, accounting and tax matters relating
to the Merger and the other transactions contemplated by the Agreement, and we have assumed that all such advice was correct.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Board of Directors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Progressive Financial Group Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">October 29, 2019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Page 4</P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our opinion is necessarily based on financial,
economic, market and other conditions as in effect on, and the information made available to us as of, the date hereof. Events
occurring after the date hereof could materially affect our opinion. We have not undertaken to update, revise, reaffirm or withdraw
this opinion or otherwise comment upon events occurring after the date hereof.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Our opinion is directed solely to the Board
of Directors of the Company (solely in its capacity as such) in connection with its consideration of the Merger and may not be
relied upon by any other person or entity (including, without limitation, security holders, creditors or other constituencies of
the Company) or used for any other purpose without our prior written consent. This Opinion does not constitute a recommendation
to the Board of Directors of the Company or to any shareholder of either the Company or SMBK as to how any such member of such
board or any shareholder should vote at any meeting called to consider and vote upon the Merger. We express no opinion as to the
fairness of the Merger Consideration to the creditors or other constituencies of the Company. Our opinion is directed only to the
fairness, from a financial point of view, of the Merger Consideration to the shareholders of the Company and does not address the
underlying business decision of the Company to engage in the Merger or the relative merits of the Merger as compared to any other
alternative business strategies that might exist for the Company. We do not express any opinion as to the fairness of the amount
or nature of the compensation to be received in the Merger by any officer, director, or employees, or class of such persons, relative
to the compensation to be received in the Merger by any other shareholder. This opinion should not be construed as creating any
fiduciary duty on the part of Olsen Palmer LLC to any party or person. This opinion shall not be disclosed, reproduced, disseminated,
quoted, summarized or referred to at any time, in any manner or for any purpose, or used for any other purposes, except that this
opinion may be reproduced in full in regulatory filings to be completed in connection with the Merger, including in any proxy statement
mailed to the shareholders of the Company related to any meeting at which the shareholders of the Company are asked to approve
the Agreement and the Merger, without Olsen Palmer LLC&rsquo;s prior written consent. This Opinion was not reviewed or issued by
a fairness opinion committee. We have not been requested to opine as to, and this Opinion does not express an opinion as to or
otherwise address, among other things: (i) the fairness of any portion or aspect of the Merger to any one class or group of the
Company&rsquo;s or any other party&rsquo;s security holders or other constituents vis-&agrave;-vis any other class or group of
the Company&rsquo;s or such other party&rsquo;s security holders or other constituents (including, without limitation, the allocation
of any consideration amongst or within such classes or groups of security holders or other constituents), or (ii) the fairness,
financial or otherwise, of the amount, nature or any other aspect of any compensation to or consideration payable to or received
by any officers, directors or employees of any party to the Merger, any class of such persons or any other party, relative to the
Merger Consideration or otherwise. We express no opinion as to the actual value of SMBK Common Stock when issued in the Merger
or the prices at which the Company Common Stock or SMBK Common Stock will trade following announcement of the Merger or at any
future time.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Board of Directors</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Progressive Financial Group Inc.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">October 29, 2019</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">Page 5</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">Based upon and subject to the foregoing,
and in reliance thereon, it is our opinion that, as of the date hereof, the Merger Consideration to be received by the shareholders
of the Company for all of the shares of the PFG Common Stock in the Merger pursuant to the Agreement is fair, from a financial
point of view, to such holders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-indent: 0.5in">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">Very truly yours,</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">/s/ Olsen Palmer LLC</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"><B>Olsen Palmer LLC</B></P>



<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: right"><A NAME="annexc"></A>Annex C</P>

<P STYLE="font: bold 10pt Times New Roman, Times, Serif; margin-top: 0pt; margin-bottom: 0pt; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>ANNEX C</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><B>DISSENTERS' RIGHTS</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Tennessee
Business Corporation Act</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>Chapter
23</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center"><FONT STYLE="text-transform: uppercase"><B>DISSENTERS&rsquo;
RIGHTS</B></FONT></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect;&nbsp;48-23-101. Chapter definitions.
</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">As used in this chapter, unless
the context otherwise requires:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(1)&nbsp;&nbsp; </B>&ldquo;Beneficial
shareholder&rdquo; means the person who is a beneficial owner of shares held by a nominee as the record shareholder;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(2)&nbsp;&nbsp; </B>&ldquo;Corporation&rdquo;
means the issuer of the shares held by a dissenter before the corporate action, and, for purposes of &sect;&sect;&#8194;48-23-203
&mdash; 48-23-302, includes the survivor of a merger or conversion or the acquiring entity in a share exchange of that issuer;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(3)&nbsp;&nbsp; </B>&ldquo;Dissenter&rdquo;
means a shareholder who is entitled to dissent from corporate action under &sect;&#8194;48-23-102 and who exercises that right
when and in the manner required by part 2 of this chapter;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(4)&nbsp;&nbsp; </B>&ldquo;Fair value,&rdquo;
with respect to a dissenter's shares, means the value of the shares immediately before the effectuation of the corporate action
to which the dissenter objects, excluding any appreciation or depreciation in anticipation of the corporate action;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(5) &nbsp;&nbsp;</B>&ldquo;Interest&rdquo;
means interest from the effective date of the corporate action that gave rise to the shareholder's right to dissent until the date
of payment, at the average auction rate paid on United States treasury bills with a maturity of six (6) months (or the closest
maturity thereto) as of the auction date for such treasury bills closest to such effective date;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(6) &nbsp;&nbsp;</B>&ldquo;Record shareholder&rdquo;
means the person in whose name shares are registered in the records of a corporation or the beneficial owner of shares to the extent
of the rights granted by a nominee certificate on file with a corporation; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(7)&nbsp;&nbsp; </B>&ldquo;Shareholder&rdquo;
means the record shareholder or the beneficial shareholder.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect; 48-23-102. Right to dissent.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(a) </B>&nbsp;&nbsp;&nbsp;A shareholder is entitled
to dissent from, and obtain payment of the fair value of the shareholder's shares in the event of, any of the following corporate
actions:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(1) </B>&nbsp;&nbsp;Consummation of a
plan of merger to which the corporation is a party:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(A)&nbsp; </B>If shareholder approval
is required for the merger by &sect;&#8194;48-21-104 or the charter and the shareholder is entitled to vote on the merger if the
merger is submitted to a vote at a shareholders' meeting or the shareholder is a nonconsenting shareholder under &sect;&#8194;48-17-104(b)
who would have been entitled to vote on the merger if the merger had been submitted to a vote at a shareholders' meeting; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(B)&nbsp;&nbsp;</B>If the corporation is
a subsidiary that is merged with its parent under &sect;&#8194;48-21-105;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(2)&nbsp;&nbsp; </B>Consummation of a
plan of share exchange to which the corporation is a party as the corporation whose shares will be acquired, if the shareholder
is entitled to vote on the plan if the plan is submitted to a vote at a shareholders' meeting or the shareholder is a nonconsenting
shareholder under &sect;&#8194;48-17-104(b) who would have been entitled to vote on the plan if the plan had been submitted to
a vote at a shareholders' meeting;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(3) </B>&nbsp;&nbsp;Consummation of a
sale or exchange of all, or substantially all, of the property of the corporation other than in the usual and regular course of
business, if the shareholder is entitled to vote on the sale or exchange if the sale or exchange is submitted to a vote at a shareholders'
meeting or the shareholder is a nonconsenting shareholder under &sect;&#8194;48-17-104(b) who would have been entitled to vote
on the sale or exchange if the sale or exchange had been submitted to a vote at a shareholders' meeting, including a sale of all,
or substantially all, of the property of the corporation in dissolution, but not including a sale pursuant to court order or a
sale for cash pursuant to a plan by which all or substantially all of the net proceeds of the sale will be distributed to the shareholders
within one (1) year after the date of sale;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(4) </B>&nbsp;&nbsp;An amendment of the
charter that materially and adversely affects rights in respect of a dissenter's shares because it:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(A)&nbsp;&nbsp;</B>Alters or abolishes
a preferential right of the shares;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(B)&nbsp;&nbsp;</B>Creates, alters, or
abolishes a right in respect of redemption, including a provision respecting a sinking fund for the redemption or repurchase, of
the shares;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(C)&nbsp;&nbsp;</B>Alters or abolishes
a preemptive right of the holder of the shares to acquire shares or other securities;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(D)&nbsp;&nbsp;</B>Excludes or limits the
right of the shares to vote on any matter, or to cumulate votes, other than a limitation by dilution through issuance of shares
or other securities with similar voting rights; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(E)&nbsp;&nbsp;</B>Reduces the number of
shares owned by the shareholder to a fraction of a share, if the fractional share is to be acquired for cash under &sect;&#8194;48-16-104;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(5)&nbsp;&nbsp; </B>Any corporate action
taken pursuant to a shareholder vote to the extent the charter, bylaws, or a resolution of the board of directors provides that
voting or nonvoting shareholders are entitled to dissent and obtain payment for their shares;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(6)&nbsp;&nbsp; </B>Consummation of a
conversion of the corporation to another entity pursuant to chapter 21 of this title; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(7)&nbsp;&nbsp; </B>In accordance with
and to the extent provided in &sect;&#8194;48-28-104(b), an amendment to the charter of a corporation as described in &sect;&#8194;48-28-104(b)(1),
or consummation of a merger or plan of share exchange as described in &sect;&#8194;48-28-104(b)(2).</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(b) &nbsp;&nbsp;</B>A shareholder entitled
to dissent and obtain payment for the shareholder's shares under this chapter may not challenge the corporate action creating the
shareholder's entitlement unless the action is unlawful or fraudulent with respect to the shareholder or the corporation.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(c)&nbsp;&nbsp; </B>Notwithstanding subsection
(a), no shareholder may dissent as to any shares of a security which, as of the date of the effectuation of the transaction which
would otherwise give rise to dissenters' rights, is listed on an exchange registered under &sect;&#8194;6 of the Securities Exchange
Act of 1934 (15 U.S.C. &sect; 78f), as amended, or is a &ldquo;national market system security,&rdquo; as defined in rules promulgated
pursuant to the Securities Exchange Act of 1934 (15 U.S.C. &sect; 78a), as amended.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect; 48-23-103. Dissent by nominees
and beneficial owners.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(a) &nbsp;&nbsp;</B>A record shareholder
may assert dissenters' rights as to fewer than all the shares registered in the record shareholder's name only if the record shareholder
dissents with respect to all shares beneficially owned by any one (1) person and notifies the corporation in writing of the name
and address of each person on whose behalf the record shareholder asserts dissenters' rights. The rights of a partial dissenter
under this subsection (a) are determined as if the shares as to which the partial dissenter dissents and the partial dissenter's
other shares were registered in the names of different shareholders.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(b) &nbsp;&nbsp;</B>A beneficial shareholder
may assert dissenters' rights as to shares of any one (1) or more classes held on the beneficial shareholder's behalf only if the
beneficial shareholder:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(1) </B>&nbsp;&nbsp;Submits to the corporation
the record shareholder's written consent to the dissent not later than the time the beneficial shareholder asserts dissenters'
rights; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(2) </B>&nbsp;&nbsp;Does so with respect
to all shares of the same class of which the person is the beneficial shareholder or over which the person has power to direct
the vote.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect; 48-23-201. Notice of dissenters&rsquo;
rights.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(a)&nbsp;&nbsp; </B>Where any corporate
action specified in &sect;&#8194;48-23-102(a) is to be submitted to a vote at a shareholders' meeting, the meeting notice (including
any meeting notice required under chapters 11-27 to be provided to nonvoting shareholders) must state that the corporation has
concluded that the shareholders are, are not, or may be entitled to assert dissenters' rights under this chapter. If the corporation
concludes that dissenters' rights are or may be available, a copy of this chapter must accompany the meeting notice sent to those
record shareholders entitled to exercise dissenters' rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(b) </B>&nbsp;&nbsp;In a merger pursuant
to &sect;&#8194;48-21-105, the parent corporation must notify in writing all record shareholders of the subsidiary who are entitled
to assert dissenters rights that the corporate action became effective. Such notice must be sent within ten (10) days after the
corporate action became effective and include the materials described in &sect;&#8194;48-23-203.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(c) &nbsp;&nbsp;</B>Where any corporate
action specified in &sect;&#8194;48-23-102(a) is to be approved by written consent of the shareholders pursuant to &sect;&#8194;48-17-104(a)
or &sect;&#8194;48-17-104(b):</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(1)&nbsp;&nbsp; </B>Written notice that
dissenters' rights are, are not, or may be available must be sent to each record shareholder from whom a consent is solicited at
the time consent of such shareholder is first solicited and, if the corporation has concluded that dissenters' rights are or may
be available, must be accompanied by a copy of this chapter; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(2) &nbsp;&nbsp;</B>Written notice that
dissenters' rights are, are not, or may be available must be delivered together with the notice to nonconsenting and nonvoting
shareholders required by &sect;&#8194;48-17-104(e) and (f), may include the materials described in &sect;&#8194;48-23-203 and,
if the corporation has concluded that dissenters' rights are or may be available, must be accompanied by a copy of this chapter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(d)&nbsp;&nbsp; </B>A corporation's failure
to give notice pursuant to this section will not invalidate the corporate action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect; 48-23-202. Notice of intent to
demand payment.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(a) </B>&nbsp;&nbsp;If a corporate action
specified in &sect;&#8194;48-23-102(a) is submitted to a vote at a shareholders' meeting, a shareholder who wishes to assert dissenters'
rights with respect to shares for which dissenters' rights may be asserted under this chapter:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(1)&nbsp;&nbsp; </B>Must deliver to the
corporation, before the vote is taken, written notice of the shareholder's intent to demand payment if the proposed action is effectuated;
and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(2) </B>&nbsp;&nbsp;Must not vote, or
cause or permit to be voted, any such shares in favor of the proposed action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(b)&nbsp;&nbsp; </B>If a corporate action
specified in &sect;&#8194;48-23-102(a) is to be approved by less than unanimous written consent, a shareholder who wishes to assert
dissenters' rights with respect to shares for which dissenters' rights may be asserted under this chapter must not sign a consent
in favor of the proposed action with respect to such shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(c) </B>&nbsp;&nbsp;A shareholder who
fails to satisfy the requirements of subsection (a) or subsection (b) is not entitled to payment under this chapter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect; 48-23-203. Dissenters&rsquo;
notice.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(a)&nbsp;&nbsp; </B>If a corporate action
requiring dissenters' rights under &sect;&#8194;48-23-102(a) becomes effective, the corporation must send a written dissenters'
notice and form required by subdivision (b)(1) to all shareholders who satisfy the requirements of &sect;&#8194;48-23-202(a) or
&sect;&#8194;48-23-202(b). In the case of a merger under &sect;&#8194;48-21-105, the parent must deliver a dissenters' notice and
form to all record shareholders who may be entitled to assert dissenters' rights.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(b) &nbsp;&nbsp;</B>The dissenters' notice
must be delivered no earlier than the date the corporate action specified in &sect;&#8194;48-23-102(a) became effective, and no
later than (10) days after such date, and must:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(1) </B>&nbsp;&nbsp;Supply a form that:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(A)</B>&nbsp;&nbsp;Specifies the first
date of any announcement to shareholders made prior to the date the corporate action became effective of the principal terms of
the proposed corporate action;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(B)</B>&nbsp;&nbsp;If such announcement
was made, requires the shareholder asserting dissenters' rights to certify whether beneficial ownership of those shares for which
dissenters' rights are asserted was acquired before that date; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(C)&nbsp;&nbsp; </B>Requires the shareholder
asserting dissenters' rights to certify that such shareholder did not vote for or consent to the transaction;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(2) &nbsp;&nbsp;</B>State:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(A) &nbsp;&nbsp;</B>Where the form must
be sent and where certificates for certificated shares must be deposited and the date by which those certificates must be deposited,
which date may not be earlier than the date for receiving the required form under subdivision (b)(2)(B);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(B) </B>&nbsp;&nbsp;A date by which the
corporation must receive the form, which date may not be fewer than forty (40) nor more than sixty (60) days after the date the
subsection (a) dissenters' notice is sent, and state that the shareholder shall have waived the right to demand payment with respect
to the shares unless the form is received by the corporation by such specified date;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(C) </B>&nbsp;&nbsp;The corporation's estimate
of the fair value of shares; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"><B>(D) &nbsp;&nbsp;</B>That, if requested in
writing, the corporation will provide, to the shareholder so requesting, within ten (10) days after the date specified in subdivision
(b)(2)(B) the number of shareholders who return the forms by the specified date and the total number of shares owned by them; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 1in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(3)&nbsp;&nbsp; </B>Be accompanied by
a copy of this chapter if the corporation has not previously sent a copy of this chapter to the shareholder pursuant to &sect;&#8194;48-23-201.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect; 48-23-204. Duty to demand payment.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(a) &nbsp;&nbsp;</B>A shareholder sent
a dissenters' notice described in &sect;&#8194;48-23-203 must demand payment, certify whether the shareholder acquired beneficial
ownership of the shares before the date required to be set forth in the dissenters' notice pursuant to &sect;&#8194;48-23-203(b)(2),
and deposit the shareholder's certificates in accordance with the terms of the notice.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(b) </B>&nbsp;&nbsp;The shareholder who
demands payment and deposits the shareholder's share certificates under subsection (a) retains all other rights of a shareholder
until these rights are cancelled or modified by the effectuation of the proposed corporate action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(c) &nbsp;&nbsp;</B>A shareholder who
does not demand payment or deposit the shareholder's share certificates where required, each by the date set in the dissenters'
notice, is not entitled to payment for the shareholder's shares under this chapter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(d) &nbsp;&nbsp;</B>A demand for payment
filed by a shareholder may not be withdrawn unless the corporation with which it was filed, or the surviving corporation, consents
thereto.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect; 48-23-205. Share restrictions.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(a)&nbsp;&nbsp; </B>The corporation may
restrict the transfer of uncertificated shares from the date the demand for their payment is received until the proposed corporate
action is effectuated or the restrictions released under &sect;&#8194;48-23-207.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(b) </B>&nbsp;&nbsp;The person for whom
dissenters' rights are asserted as to uncertificated shares retains all other rights of a shareholder until these rights are cancelled
or modified by the effectuation of the proposed corporate action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect; 48-23-206. Payment.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(a)&nbsp;&nbsp; </B>Except as provided
in &sect;&#8194;48-23-208, as soon as the proposed corporate action is effectuated, or upon receipt of a payment demand, whichever
is later, the corporation shall pay each dissenter who complied with &sect;&#8194;48-23-204 the amount the corporation estimates
to be the fair value of each dissenter's shares, plus accrued interest.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(b) </B>&nbsp;&nbsp;The payment must be
accompanied by:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(1) &nbsp;&nbsp;</B>The corporation's
balance sheet as of the end of a fiscal year ending not more than sixteen (16) months before the date of payment, an income statement
for that year, a statement of changes in shareholders' equity for that year, and the latest available interim financial statements,
if any;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(2) &nbsp;&nbsp;</B>A statement of the
corporation's estimate of the fair value of the shares, which estimate shall equal or exceed the corporation's estimate given pursuant
to &sect;&#8194;48-23-203(b)(2)(C);</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(3) &nbsp;&nbsp;</B>An explanation of
how the interest was calculated;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(4)&nbsp;&nbsp; </B>A statement of the
dissenter's right to demand payment under &sect;&#8194;48-23-209; and</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(5) </B>&nbsp;&nbsp;A copy of this chapter
if the corporation has not previously sent a copy of this chapter to the shareholder pursuant to &sect;&#8194;48-23-201 or &sect;&#8194;48-23-203.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"></P>

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    <DIV STYLE="page-break-before: always; margin-top: 6pt; margin-bottom: 12pt"><P STYLE="margin: 0pt">&nbsp;</P></DIV>
    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect; 48-23-207. Failure to take action.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(a)&nbsp;&nbsp; </B>If the corporation
does not effectuate the proposed action that gave rise to the dissenters' rights within two (2) months after the date set for demanding
payment and depositing share certificates, the corporation shall return the deposited certificates and release the transfer restrictions
imposed on uncertificated shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(b)&nbsp;&nbsp; </B>If, after returning
deposited certificates and releasing transfer restrictions, the corporation effectuates the proposed action, it must send a new
dissenters' notice under &sect;&#8194;48-23-203 and repeat the payment demand procedure.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect; 48-23-208. After-acquired shares.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(a) </B>&nbsp;&nbsp;A corporation may
elect to withhold payment required by &sect;&#8194;48-23-206 from a dissenter unless the dissenter was the beneficial owner of
the shares before the date set forth in the dissenters' notice as the date of the first announcement to news media or to shareholders
of the principal terms of the proposed corporate action.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(b) &nbsp;&nbsp;</B>To the extent the
corporation elects to withhold payment under subsection (a), after effectuating the proposed corporate action, it shall estimate
the fair value of the shares, plus accrued interest, and shall pay this amount to each dissenter who agrees to accept it in full
satisfaction of the dissenter's demand. The corporation shall send with its offer a statement of its estimate of the fair value
of the shares, an explanation of how the interest was calculated, and a statement of the dissenter's right to demand payment under
&sect;&#8194;48-23-209.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect; 48-23-209. Procedure if shareholder
dissatisfied with payment or offer.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(a)&nbsp;&nbsp; </B>A dissenter may notify
the corporation in writing of the dissenter's own estimate of the fair value of the dissenter's shares and amount of interest due,
and demand payment of the dissenter's estimate (less any payment under &sect;&#8194;48-23-206), or reject the corporation's offer
under &sect;&#8194;48-23-208 and demand payment of the fair value of the dissenter's shares and interest due, if:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(1)&nbsp;&nbsp; </B>The dissenter believes
that the amount paid under &sect;&#8194;48-23-206 or offered under &sect;&#8194;48-23-208 is less than the fair value of the dissenter's
shares or that the interest due is incorrectly calculated;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(2) &nbsp;&nbsp;</B>The corporation fails
to make payment under &sect;&#8194;48-23-206 within two (2) months after the date set for demanding payment; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(3)&nbsp;&nbsp; </B>The corporation,
having failed to effectuate the proposed action, does not return the deposited certificates or release the transfer restrictions
imposed on uncertificated shares within two (2) months after the date set for demanding payment.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(b)&nbsp;&nbsp; </B>A dissenter waives
the dissenter's right to demand payment under this section unless the dissenter notifies the corporation of the dissenter's demand
in writing under subsection (a) within one (1) month after the corporation made or offered payment for the dissenter's shares.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect; 48-23-301. Court action.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(a) &nbsp;&nbsp;</B>If a demand for payment
under &sect;&#8194;48-23-209 remains unsettled, the corporation shall commence a proceeding within two (2) months after receiving
the payment demand and petition the court to determine the fair value of the shares and accrued interest. If the corporation does
not commence the proceeding within the two-month period, it shall pay each dissenter whose demand remains unsettled the amount
demanded.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(b)&nbsp;&nbsp; </B>The corporation shall
commence the proceeding in a court of record having equity jurisdiction in the county where the corporation's principal office
(or, if none in this state, its registered office) is located. If the corporation is a foreign corporation without a registered
office in this state, it shall commence the proceeding in the county in this state where the registered office of the domestic
corporation merged with or whose shares were acquired by the foreign corporation was located.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

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    <!-- Field: /Page -->

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(c)&nbsp;&nbsp; </B>The corporation shall
make all dissenters (whether or not residents of this state) whose demands remain unsettled, parties to the proceeding as in an
action against their shares and all parties must be served with a copy of the petition. Nonresidents may be served by registered
or certified mail or by publication as provided by law.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(d) &nbsp;&nbsp;</B>The jurisdiction of
the court in which the proceeding is commenced under subsection (b) is plenary and exclusive. The court may appoint one (1) or
more persons as appraisers to receive evidence and recommend decision on the question of fair value. The appraisers have the powers
described in the order appointing them, or in any amendment to it. The dissenters are entitled to the same discovery rights as
parties in other civil proceedings.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(e) &nbsp;&nbsp;</B>Each dissenter made
a party to the proceeding is entitled to judgment:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(1)&nbsp;&nbsp; </B>For the amount, if
any, by which the court finds the fair value of the dissenter's shares, plus accrued interest, exceeds the amount paid by the corporation;
or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(2) &nbsp;&nbsp;</B>For the fair value,
plus accrued interest, of the dissenter's after-acquired shares for which the corporation elected to withhold payment under &sect;&#8194;48-23-208.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify"><B>&sect; 48-23-302. Court costs and counsel
fees.</B></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(a) &nbsp;&nbsp;</B>The court in an appraisal
proceeding commenced under &sect;&#8194;48-23-301 shall determine all costs of the proceeding, including the reasonable compensation
and expenses of appraisers appointed by the court. The court shall assess the costs against the corporation, except that the court
may assess costs against all or some of the dissenters, in amounts the court finds equitable, to the extent the court finds the
dissenters acted arbitrarily, vexatiously, or not in good faith in demanding payment under &sect;&#8194;48-23-209.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(b)&nbsp;&nbsp; </B>The court may also
assess the fees and expenses of counsel and experts for the respective parties, in amounts the court finds equitable against:</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(1) &nbsp;&nbsp;</B>The corporation and
in favor of any or all dissenters if the court finds the corporation did not substantially comply with the requirements of part
2 of this chapter; or</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify"><B>(2) &nbsp;&nbsp;</B>Either the corporation
or a dissenter, in favor of any other party, if the court finds that the party against whom the fees and expenses are assessed
acted arbitrarily, vexatiously, or not in good faith with respect to the rights provided by this chapter.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.75in; text-align: justify">&nbsp;</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0 0pt 0.5in; text-align: justify"><B>(c) &nbsp;&nbsp;</B>If the court finds
that the services of counsel for any dissenter were of substantial benefit to other dissenters similarly situated, and that the
fees for those services should not be assessed against the corporation, the court may award to these counsel reasonable fees to
be paid out of the amounts awarded to the dissenters who were benefited.</P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0">&nbsp;</P>

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<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0"></P>

<P STYLE="font: 10pt Times New Roman, Times, Serif; margin: 0pt 0; text-align: center">&nbsp;</P>

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<DOCUMENT>
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end
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
