Reliant Bancorp (RBNC) 8-K Reliant Bancorp, Inc. Reports Record Third Quarter Results

Exhibit 99.1

Reliant Bancorp, Inc. Reports Record Third Quarter Results

Third Quarter Net Income Up 121.1% to $4.1 Million - EPS Rises 63.6% to $0.36 Per Fully Diluted Share

Loans Increase 59.4% to $1.2 Billion - Deposits Up 66.0% to $1.4 Billion

BRENTWOOD, Tenn.--(BUSINESS WIRE)--October 24, 2018--Reliant Bancorp, Inc. (“Reliant Bancorp” or the “Company”) (Nasdaq: RBNC), the parent company for Reliant Bank (“Reliant”), announced record third quarter results, including growth in earnings, loans, deposits and assets for the quarter and nine months ended September 30, 2018.

Third quarter net income attributable to common shareholders rose 121.1% to $4.1 million, and net income per fully diluted share increased 63.6% to $0.36, compared to $1.8 million, or $0.22 per fully diluted share, for the third quarter of 2017. Third quarter year-to-date net income attributable to common shareholders rose 63.6% to $10.0 million and net income per fully diluted share increased 14.5% to $0.87 per fully diluted share, compared to $6.1 million, or $0.76 per fully diluted share for the same period in 2017. The 2018 results included approximately 2.4 million additional shares outstanding related to the merger with Community First, Inc. that closed on January 1, 2018, and merger-related expenses of approximately $0.1 million for the third quarter and $2.7 million year-to-date.

“Reliant’s loan growth accelerated late in the second quarter of 2018 and continued into the third quarter,” stated DeVan D. Ard, Jr., Chairman, President and Chief Executive Officer. “Our loan production rose 35% to $166.9 million in the third quarter compared with our second quarter 2018 loan production of $123.8 million. Loan growth is attributed to increased demand across our markets and the continued strength of the economy in Middle Tennessee and in Chattanooga. And, while competition for deposits intensified, we grew deposit balances in relationship accounts - specifically - checking, savings and money market account types - by 3.3% during the quarter, or 13.4% annualized. Our new full service branches; one in Murfreesboro that opened in September, and the other in Chattanooga that opens in the fourth quarter, will also give us access to two more growth markets with combined deposits of over $12 billion.

“Third quarter earnings benefited from higher loan volume, increased non-interest income, improved asset quality and the smooth integration of the Community First merger. We completed the conversion of Community First’s systems last quarter and have realized improved operating efficiencies and higher loan and deposit volume from their legacy offices. Based on our current momentum, we anticipate reporting record net income, loans and deposits at year-end 2018,” concluded Ard.

Key Highlights

• Net income increased 90.8% to $4.1 million in the third quarter of 2018 compared with net income of $2.1 million in the second quarter of 2018. Net income per fully diluted share rose 89.5% to $0.36 in the third quarter of 2018 compared with $0.19 in the second quarter of 2018. Third quarter 2018 results included approximately $0.1 million in merger-related expenses compared to $2.5 million in merger-related expenses in the second quarter of 2018. Excluding merger related charges, net income attributable to common shareholders (non-GAAP) rose 98.5% to $4.1 million compared to $2.1 million for the third quarter of 2017 and was up 4.8% from $3.9 million from the second quarter of 2018. Excluding merger related charges, earnings per fully diluted share rose 44.0% to $0.36 per fully diluted share in the third quarter of 2018 compared to the third quarter of 2017. For the first nine months, net income excluding merger related charges attributable to common shareholders rose 86.3% to $11.7 million, and was up 27.5% to $1.02 per fully diluted shares, compared to $6.3 million, or $0.80 per fully diluted share, for the same period in 2017.
• Loans rose 59.4% to $1.2 billion in the third quarter of 2018 compared with the third quarter of 2017 and were up 4.5% (18.1% annualized) compared to the second quarter of 2018. Third quarter new loan production rose 34.8% to $166.9 million compared with $123.8 million in the second quarter of 2018. New loan production, which carried an average weighted yield of 5.27% up from 4.69% in the second quarter, was led by CLD (39%), CRE (24%), consumer construction including 1-4 family (19%) and C&I (15%).
• Total deposits grew 66.0% to $1.4 billion compared with the third quarter of 2017, and were up by 4.6% (18.4% annualized) from the second quarter of 2018. We experienced an increase in core deposits in Murfreesboro with the opening of the new banking center and anticipate continued growth. We anticipate the opening of a new banking center in Chattanooga in the fourth quarter to contribute to growth in core deposits from this market. Deposits generated through our Chattanooga office increased 17% since the second quarter of 2018.
• Noninterest bearing deposits rose 67.5% to $221.3 million at September 30, 2018, compared with the third quarter of 2017, and declined slightly by 1.8% from the second quarter of 2018.
• Net interest margin increased to 3.77% for the third quarter of 2018 compared with 3.74% for the second quarter of 2018 and was down from 4.08% in the third of 2017. The increase in net interest margin from the second quarter of 2018 was due to the yield on our earning assets increasing at a slightly faster pace than our cost of funds. This was mainly driven by the increase in yield on newer loans. The decrease in net interest margin compared to the third quarter of 2017 was due primarily to our cost of funds increasing at a faster pace than our yields on earning assets since last year.
• Noninterest income rose 33.1% to $2.8 million in the third quarter of 2018 compared with $2.1 million in the third quarter of 2017, and rose 23.2% from $2.3 million in the second quarter of 2018. The increase compared to third quarter of 2017 was driven mainly by higher service charges resulting from revised deposit product pricing at conversion, while the increase compared to the second quarter of 2018 was driven mainly by the increase in mortgage revenue. Bank segment noninterest income rose 167.2% compared with the third quarter of 2017 due to growth in service charges and gain on sale of other real estate, and increased 6.2% compared to the second quarter of 2018, due primarily to gain on sale of other real estate.
• Noninterest expense rose 43.1% to $12.2 million compared with $8.5 million in the third quarter of 2017 and declined 13.4% from $14.0 million in the second quarter of 2018. Noninterest expenses included pre-tax merger related expenses of approximately $0.1 million in the third quarter of 2018 compared to $0.6 million in the third quarter of 2017 and $2.5 million in the second quarter of 2018. Excluding merger related expenses, noninterest expenses rose 52.2% and 4.5% compared with the third quarter of 2017 and the second quarter of 2018, respectively. Bank segment noninterest expenses excluding merger related expenses rose 2.4% in the third quarter compared with the second quarter of 2018 due, in part, to higher expenses related to the Murfreesboro branch and the pre-opening expenses associated with the Chattanooga branch.
• Asset quality remained strong at September 30, 2018. Nonperforming assets to total assets improved to 0.31% in the third quarter of 2018, compared with 0.49% and 0.39% for the third quarter of 2017 and second quarter of 2018, respectively. Net recoveries were 0.07% in the third quarter of 2018 compared with net charge-offs of 0.17% in the third quarter of 2017. Other real estate owned declined 51.5% to $1.0 million in the third quarter of 2018 compared with $2.1 million in the second quarter of 2018. The remaining property in other real estate is under contract and the sale is expected to generate a slight gain on closing. We continue to focus on loan quality as a key component of our earnings mix.
• Our provision for loan losses for the third quarter of 2018 was $322,000 compared to $540,000 and $300,000, for the third quarter of 2017 and second quarter of 2018, respectively. The increase compared to the second quarter of 2018 was driven by growth in loans, while the decrease compared to the third quarter of 2017 was driven by improved loan quality metrics for that period.

Capital Position

Reliant’s capital position remained strong at September 30, 2018. The tier 1 leverage ratio was 10.22% compared with 9.98% at June 30, 2018, and 12.20% at September 30, 2017. Total stockholders’ equity rose to $203.8 million and tangible book value per common share was $13.15 at September 30, 2018, compared to $13.06 at June 30, 2018, and $13.88 at September 30, 2017, reflecting the impact of our private placement in the third quarter of 2017 and our merger with Community First in the first quarter of 2018 as well as earnings accretion. Reliant’s capital ratios are expected to be maintained significantly above the ratios of a “well-capitalized” institution.

Non-GAAP Financial Measures

This document contains non-GAAP financial measures. The non-GAAP measures in this release include “adjusted net interest margin,” “adjusted net income attributable to common shareholders and related impact on ROA, ROE, and earnings per diluted share,” and “efficiency ratio.” We believe these non-GAAP measures provide useful information to investors because these are among the measures used by our management team to evaluate our operating performance and make day-to-day operating decisions. In addition, we believe certain purchase accounting adjustments, income relating to the recoveries of purchased credit impaired loans, and merger expenses do not necessarily reflect the operational performance of the business in these periods; accordingly, it is useful to consider these line items with and without such adjustments. We believe this presentation also increases comparability of period-to-period results.

Other companies may use similarly titled non-GAAP financial measures that are calculated differently from the way we calculate such measures. Accordingly, our non-GAAP financial measures may not be comparable to similar measures used by other companies. We caution investors not to place undue reliance on such non-GAAP measures, but instead to consider them with the most directly comparable GAAP measure. Non-GAAP financial measures have limitations as analytical tools, and should not be considered in isolation, or as a substitute for our results as reported under generally accepted accounting principles.

About Reliant Bancorp and Reliant Bank

Reliant Bancorp, Inc. is a Brentwood, Tennessee-based bank holding company which operates banking centers in Davidson, Robertson, Rutherford, Sumner, Williamson, Maury and Hickman counties, Tennessee along with a loan and deposit production office in Hamilton County, Tennessee, through its wholly-owned subsidiary Reliant Bank. Reliant Bank is a full-service commercial bank that offers a variety of deposit, lending and mortgage products and services to business and consumer customers. As of September 30, 2018, Reliant Bancorp had approximately $1.7 billion in total assets, approximately $1.2 billion in loans and approximately $1.4 billion in deposits. For additional information, locations and hours of operation, please visit their website at www.reliantbank.com.

Forward Looking Statements

All statements, other than statements of historical fact, included in this release are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. The words “believe,” “anticipate,” “expect,” “may,” “will,” “assume,” “should,” “predict,” “could,” “would,” “intend,” “targets,” “estimates,” “projects,” “plans,” “potential” and other similar words and expressions of the future are intended to identify such forward-looking statements, but other statements not based on historical information may also be considered forward-looking, including statements about Reliant Bancorp’s future financial and operating results and Reliant Bancorp’s plans, objectives and intentions.

All forward-looking statements are subject to risks, uncertainties and other factors that may cause the actual results, performance or achievements of Reliant Bancorp to differ materially from any results, performance or achievements expressed or implied by such forward-looking statements. Such factors include, among others: (1) the effect of interest rate increases on the cost of deposits; (2) unanticipated weakness in loan demand or loan pricing; (3) greater than anticipated adverse conditions in the national or local economies in which we operate, including Middle Tennessee; (4) lack of strategic growth opportunities or our failure to execute on those opportunities; (5) deterioration in the financial condition of borrowers resulting in significant increases in loan losses and provisions for those losses; (6) the ability to grow and retain low-cost core deposits and retain large, uninsured deposits; (7) the impact of competition with other financial institutions, including pricing pressures and the resulting impact on Reliant Bancorp’s results, including as a result of compression to net interest margin; (8) our ability to effectively manage problem credits; (9) our ability to successfully implement efficiency initiatives on time and in amounts projected; (10) our ability to successfully develop and market new products and technology; (11) the vulnerability of Reliant Bank’s network and online banking portals, and the systems of parties with whom we contract, to unauthorized access, computer viruses, phishing schemes, spam attacks, human error, natural disasters, power loss, and other security breaches; and (12) changes in laws or regulations. Additional factors which could affect the forward-looking statements can be found in Reliant Bancorp’s annual report on Form 10-K, quarterly reports on Form 10-Q, and current reports on Form 8-K filed with the Securities and Exchange Commission (the “SEC”) and available on the SEC’s website at http://www.sec.gov. Reliant Bancorp believes the forward-looking statements contained herein are reasonable; however, undue reliance should not be placed on any forward-looking statements, which are based on current expectations and speak only as of the date that they are made. Reliant Bancorp disclaims any obligation to update or revise any forward-looking statements contained in this release, which speak only as of the date hereof, whether as a result of new information, future events or otherwise.

RELIANT BANCORP, INC. CONSOLIDATED BALANCE SHEETS September 30, 2018, June 30, 2018 AND September 30, 2017 (Dollar Amounts in Thousands) (Unaudited)
ASSETS	September 30, 2018			June 30, 2018			September 30, 2017
Cash and due from banks	$	34,026		$	32,321		$	18,277
Federal funds sold		417			381			669
Total cash and cash equivalents		34,443			32,702			18,946
Securities available for sale		293,028			308,069			192,277
Loans, net of unearned income		1,194,129			1,142,459			749,361
Allowance for loan losses		(10,698	)		(10,169	)		(9,623	)
Loans, net		1,183,431			1,132,290			739,738
Mortgage loans held for sale, net		12,712			31,163			19,475
Accrued interest receivable		8,032			7,474			4,999
Premises and equipment, net		22,156			19,955			9,558
Restricted equity securities, at cost		11,681			11,677			7,163
Other real estate, net		1,000			2,060			—
Cash surrender value of life insurance contracts		45,220			44,927			29,422
Deferred tax assets, net		9,214			7,913			2,776
Goodwill		43,642			43,627			11,404
Core deposit intangibles		8,456			8,693			1,336
Other assets		11,186			9,108			4,086
TOTAL ASSETS	$	1,684,201		$	1,659,658		$	1,041,180
LIABILITIES AND STOCKHOLDERS’ EQUITY
LIABILITIES
Deposits
Demand	$	221,252		$	225,360		$	132,058
Interest-bearing demand		162,159			140,201			79,439
Savings and money market deposit accounts		358,934			352,724			197,521
Time		653,201			615,990			431,430
Total deposits		1,395,546			1,334,275			840,448
Accrued interest payable		1,150			801			220
Subordinated debentures		11,583			11,562			—
Federal Home Loan Bank advances		62,686			102,874			56,720
Dividends payable		922			919			541
Other liabilities		8,563			6,887			5,307
TOTAL LIABILITIES		1,480,450			1,457,318			903,236
STOCKHOLDERS’ EQUITY
Preferred stock, $1 par value; 10,000,000 shares authorized; no shares issued to date		—			—			—
Common stock, $1 par value; 30,000,000 shares authorized; 11,531,094, 11,482,965 and 9,022,098 shares issued and outstanding at September 30, 2018, June 30, 2018, and September 30, 2017, respectively		11,531			11,483			9,022
Additional paid-in capital		172,930			172,686			112,202
Retained earnings		24,246			21,090			16,821
Accumulated other comprehensive loss		(4,956	)		(2,919	)		(101	)
TOTAL STOCKHOLDERS’ EQUITY		203,751			202,340			137,944
TOTAL LIABILITIES AND STOCKHOLDERS’ EQUITY	$	1,684,201		$	1,659,658		$	1,041,180

RELIANT BANCORP, INC. CONSOLIDATED STATEMENTS OF OPERATIONS FOR THE PERIODS INDICATED (Dollar Amounts in Thousands, Except Per Share Amounts) (Unaudited)
	Three Months Ended							Nine Months Ended
	September 30, 2018		June 30, 2018		September 30, 2017			September 30, 2018		September 30, 2017
INTEREST INCOME
Interest and fees on loans	$	14,873	$	14,066	$	9,078		$	42,497	$	25,193
Interest and fees on loans held for sale		294		326		211			1,101		420
Interest on investment securities, taxable		414		453		179			1,374		514
Interest on investment securities, nontaxable		1,709		1,708		1,022			4,921		2,796
Federal funds sold and other		280		277		137			869		381
TOTAL INTEREST INCOME		17,570		16,830		10,627			50,762		29,304
INTEREST EXPENSE
Deposits
Demand		102		84		42			263		131
Savings and money market		657		574		207			1,709		557
Time		2,542		2,199		1,117			6,737		2,663
Federal Home Loan Bank advances and other		606		397		165			1,275		383
Subordinated debentures		197		172		—			526		—
TOTAL INTEREST EXPENSE		4,104		3,426		1,531			10,510		3,734
NET INTEREST INCOME		13,466		13,404		9,096			40,252		25,570
PROVISION FOR LOAN LOSSES		322		300		540			759		1,195
NET INTEREST INCOME AFTER PROVISION FOR LOAN LOSSES		13,144		13,104		8,556			39,493		24,375
NONINTEREST INCOME
Service charges on deposit accounts		833		900		309			2,504		936
Gains on mortgage loans sold, net		1,399		957		1,571			4,061		2,751
Gain on securities transactions, net		18		25		—			43		59
Gain on sale of other real estate		150		20		1			259		26
Gain (loss) on disposal of premises and equipment		16		—		(50	)		16		(50	)
Other		361		352		256			1,139		735
TOTAL NONINTEREST INCOME		2,777		2,254		2,087			8,022		4,457
NONINTEREST EXPENSE
Salaries and employee benefits		6,913		6,613		4,880			20,480		13,634
Occupancy		1,234		1,210		850			3,673		2,482
Information technology		1,315		1,249		732			3,913		1,924
Advertising and public relations		183		141		81			413		204
Audit, legal and consulting		588		816		501			2,027		1,102
Federal deposit insurance		210		224		100			630		320
Merger expenses		82		2,483		562			2,742		562
Other operating		1,637		1,305		791			4,487		2,406
TOTAL NONINTEREST EXPENSE		12,162		14,041		8,497			38,365		22,634
INCOME BEFORE PROVISION FOR INCOME TAXES		3,759		1,317		2,146			9,150		6,198
INCOME TAX EXPENSE		519		115		306			1,431		1,005
CONSOLIDATED NET INCOME		3,240		1,202		1,840			7,719		5,193
NONCONTROLLING INTEREST IN NET LOSS OF SUBSIDIARY		842		937		6			2,243		898
NET INCOME ATTRIBUTABLE TO COMMON SHAREHOLDERS	$	4,082	$	2,139	$	1,846		$	9,962	$	6,091
Basic net income attributable to common shareholders, per share	$	0.36	$	0.19	$	0.23		$	0.88	$	0.77
Diluted net income attributable to common shareholders, per share	$	0.36	$	0.19	$	0.22		$	0.87	$	0.76

RELIANT BANCORP, INC. SEGMENT FINANCIAL INFORMATION FOR THE PERIODS INDICATED (Dollar Amounts in Thousands) (Unaudited)
Retail Banking
	Three Months Ended									Nine Months Ended
	September 30, 2018			June 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Net interest income	$	13,295		$	13,190		$	8,924		$	39,529		$	25,224
Provision for loan losses	322			300			540			759			1,195
Noninterest income	1,379			1,299			516			3,966			1,704
Noninterest expense (excluding merger expenses)	9,614			9,389			6,186			28,454			18,019
Merger expense	82			2,483			562			2,742			562
Income before provision for income taxes	4,656			2,317			2,152			11,540			7,152
Income tax expense	574			178			306			1,578			1,061
Net income attributable to common shareholders	$	4,082		$	2,139		$	1,846		$	9,962		$	6,091
Residential Mortgage Banking
	Three Months Ended									Nine Months Ended
	September 30, 2018			June 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
Net interest income	$	171		$	214		$	172		$	723		$	346
Provision for loan losses	—			—			—			—			—
Noninterest income	1,398			955			1,571			4,056			2,753
Noninterest expense	2,466			2,169			1,749			7,169			4,053
Loss before provision for income taxes	(897		)	(1,000		)	(6		)	(2,390		)	(954		)
Income tax benefit	(55		)	(63		)	—			(147		)	(56		)
Net loss	(842		)	(937		)	(6		)	(2,243		)	(898		)
Noncontrolling interest in net loss of subsidiary	842			937			6			2,243			898
Net income attributable to common shareholders	$	—		$	—		$	—		$	—		$	—
The above financial information is presented, net of intercompany eliminations.

RELIANT BANCORP, INC. SELECTED QUARTERLY FINANCIAL DATA AT OR FOR THE THREE MONTHS ENDED (Dollar Amounts in Thousands, Except Per Share Amounts) (Unaudited)
	September 30, 2018			June 30, 2018			September 30, 2017
Per Common Share Data
Net income attributable to shareholders, per share
Basic	$	0.36		$	0.19		$	0.23
Diluted	$	0.36		$	0.19		$	0.22
Book value per common share	$	17.67		$	17.62		$	15.29
Tangible book value per common share	$	13.15		$	13.06		$	13.88
Basic weighted average common shares	11,406,753			11,396,829			8,174,973
Diluted weighted average common shares	11,498,179			11,495,233			8,280,858
Common shares outstanding at period end	11,531,094			11,482,965			9,022,098
Selected Balance Sheet Data
Tangible common equity (TCE) ratio	9.29		%	9.33		%	12.17		%
Average loans	$	1,144,307		$	1,119,884		$	727,453
Average earning assets (1)	1,504,424			1,492,007			955,724
Average total assets	1,644,396			1,629,714			1,010,536
Average stockholders' equity	203,901			202,305			119,427
Selected Asset Quality Measures
Nonaccrual loans	$	4,235		$	4,360		$	4,950
90+ days past due still accruing	40			51			200
Total nonperforming loans	4,275			4,411			5,150
Total nonperforming assets (2)	5,275			6,471			5,150
Net charge offs (recoveries)	(207		)	(139		)	302
Nonperforming loans to total loans	0.36		%	0.39		%	0.69		%
Nonperforming assets to total assets	0.31		%	0.39		%	0.49		%
Nonperforming assets to total loans and other real estate	0.44		%	0.57		%	0.69		%
Allowance for loan losses to total loans	0.90		%	0.89		%	1.28		%
Allowance for loan losses to nonperforming loans	250.25		%	230.54		%	186.85		%
Net charge offs (recoveries) to average loans (3)	(0.07		)%	(0.05		)%	0.17		%
Capital Ratios (Bank Subsidiary Only)(5)
Tier 1 leverage	10.22		%	9.98		%	12.20		%
Common equity tier 1	12.13		%	12.14		%	14.20		%
Total risk-based capital	12.97		%	12.93		%	15.33		%
Selected Performance Ratios (3) (4)
Return on average assets (ROA)	0.99		%	0.53		%	0.73		%
Return on average stockholders' equity (ROE)	8.01		%	4.23		%	6.18		%
Return on tangible common equity (ROTCE)	10.76		%	5.71		%	6.92		%
Net interest margin	3.77		%	3.74		%	4.08		%
(1) Average earning assets is the daily average of earning assets. Earning assets consists of loans, mortgage loans held for sale, federal funds sold, deposits with banks, investment securities and restricted equity securities.
(2) Nonperforming assets consist of nonperforming loans (excluding troubled debt restructurings) and other real estate.
(3) Data has been annualized.
(4) Return on average assets is defined as net income attributable to common shareholders divided by average total assets; return on average stockholders’ equity is defined as net income attributable to common shareholders divided by average stockholders’ equity; net interest margin is defined as net interest income calculated on a tax-equivalent basis divided by average earning assets.
(5) Current quarter capital ratios are estimated.

RELIANT BANCORP, INC. YIELD TABLES FOR THE PERIODS INDICATED (Dollar Amounts in Thousands) (Unaudited)
The following table sets forth the amount of our average balances, interest income or interest expense for each category of interest-earning assets and interest-bearing liabilities and the average interest rate for interest-earning assets and interest-bearing liabilities, net interest spread and net interest margin for the periods indicated below:
	Three Months Ended September 30, 2018						Three Months Ended June 30, 2018						Three Months Ended September 30, 2017
	Average Balances		Rates / Yields (%)		Interest Income / Expense		Average Balances		Rates / Yields (%)		Interest Income / Expense		Average Balances		Rates / Yields (%)		Interest Income / Expense
Interest earning assets
Loans	$	1,144,307	5.01		$	14,092	$	1,119,884	4.81		$	13,393	$	727,453	4.78		$	8,588
Loan fees	—		0.27		781		—		0.24		673		—		0.27		490
Loans with fees	1,144,307		5.28		14,873		1,119,884		5.05		14,066		727,453		5.05		9,078
Mortgage loans held for sale	22,464		5.19		294		24,611		5.31		326		18,333		4.57		211
Deposits with banks	24,570		1.53		95		36,550		1.21		110		14,451		0.88		32
Investment securities - taxable	70,389		2.33		414		67,647		2.69		453		30,212		2.35		179
Investment securities - tax-exempt	229,934		3.74		1,709		231,874		3.75		1,708		157,718		3.99		1,022
Federal funds sold and other	12,760		5.75		185		11,441		5.85		167		7,557		5.51		105
Total earning assets	1,504,424		4.85		17,570		1,492,007		4.66		16,830		955,724		4.72		10,627
Nonearning assets	139,972						137,707						54,812
Total assets	$	1,644,396					$	1,629,714					$	1,010,536
Interest bearing liabilities
Interest bearing demand	$	143,057	0.28		$	102	$	143,811	0.23		$	84	$	81,629	0.20		$	42
Savings and money market	339,487		0.77		657		357,475		0.64		574		205,463		0.40		207
Time deposits - retail	527,930		1.60		2,128		517,209		1.43		1,848		329,203		1.02		845
Time deposits - wholesale	87,262		1.88		414		92,197		1.53		351		90,222		1.20		272
Total interest bearing deposits	1,097,736		1.19		3,301		1,110,692		1.03		2,857		706,517		0.77		1,366
Federal Home Loan Bank advances	102,731		2.34		606		79,520		2.00		397		46,910		1.40		165
Subordinated debt	11,577		6.75		197		11,556		5.97		172		—		—		—
Total borrowed funds	114,308		2.79		803		91,076		2.51		569		46,910		1.40		165
Total interest-bearing liabilities	1,212,044		1.34		4,104		1,201,768		1.14		3,426		753,427		0.81		1,531
Net interest rate spread (%) / Net interest income ($)			3.51		13,466				3.52		13,404				3.91		9,096
Non-interest bearing deposits	221,107		(0.20	)			219,860		(0.17	)			133,108		(0.12	)
Other non-interest bearing liabilities	7,344						5,781						4,574
Stockholder's equity	203,901						202,305						119,427
Total liabilities and stockholders' equity	$	1,644,396					$	1,629,714					$	1,010,536
Cost of funds			1.14						0.97						0.69
Net interest margin			3.77						3.74						4.08
Yield Table Assumptions - Average loan balances are inclusive of nonperforming loans. Yields computed on tax-exempt instruments are on a tax equivalent basis. Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period. Changes in net interest income are attributed to either changes in average balances (volume change) or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. Volume change is calculated as change in volume times the previous rate while rate change is change in rate times the previous volume. Changes not due solely to volume or rate changes are allocated to volume change and rate change in proportion to the relationship of the absolute dollar amounts of the change in each category.

RELIANT BANCORP, INC. YIELD TABLES FOR THE PERIODS INDICATED (Dollar Amounts in Thousands) (Unaudited)
The following table sets forth the amount of our average balances, interest income or interest expense for each category of interest-earning assets and interest-bearing liabilities and the average interest rate for interest-earning assets and interest-bearing liabilities, net interest spread and net interest margin for the periods indicated below:
	Nine Months Ended September 30, 2018						Nine Months Ended September 30, 2017
	Average Balances		Rates / Yields (%)		Interest Income / Expense		Average Balances		Rates / Yields (%)		Interest Income / Expense
Interest earning assets
Loans	$	1,117,743	4.88		$	40,360	$	701,362	4.61		$	23,652
Loan fees	—		0.26		2,137		—		0.29		1,541
Loans with fees	1,117,743		5.14		42,497		701,362		4.90		25,193
Mortgage loans held for sale	28,636		5.14		1,101		13,310		4.22		420
Deposits with banks	36,837		1.35		371		15,177		0.71		81
Investment securities - taxable	70,276		2.61		1,374		32,355		2.12		514
Investment securities - tax-exempt	226,601		3.69		4,921		145,412		4.01		2,796
Federal funds sold and other	11,389		5.85		498		7,787		5.15		300
Total earning assets	1,491,482		4.71		50,762		915,403		4.58		29,304
Nonearning assets	137,606						54,240
Total assets	$	1,629,088					$	969,643
Interest bearing liabilities
Interest bearing demand	$	147,022	0.24		$	263	$	84,307	0.21		$	131
Savings and money market	347,184		0.66		1,709		200,304		0.37		557
Time deposits - retail	520,717		1.45		5,640		308,911		0.86		1,994
Time deposits - wholesale	91,466		1.60		1,097		87,105		1.03		669
Total interest bearing deposits	1,106,389		1.05		8,709		680,627		0.66		3,351
Federal Home Loan Bank advances and other	84,176		2.03		1,275		41,132		1.24		383
Subordinated debt	11,556		6.09		526		—		—		—
Total borrowed funds	95,732		2.52		1,801		41,132		1.24		383
Total interest-bearing liabilities	1,202,121		1.17		10,510		721,759		0.69		3,734
Net interest rate spread (%) / Net interest income ($)			3.54		40,252				3.89		25,570
Non-interest bearing deposits	217,957		(0.18	)			132,406		(0.11	)
Other non-interest bearing liabilities	6,464						3,548
Stockholder's equity	202,546						111,930
Total liabilities and stockholders' equity	$	1,629,088					$	969,643
Cost of funds			0.99						0.58
Net interest margin			3.76						4.04
Yield Table Assumptions - Average loan balances are inclusive of nonperforming loans. Yields computed on tax-exempt instruments are on a tax equivalent basis. Net interest spread is calculated as the yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period. Changes in net interest income are attributed to either changes in average balances (volume change) or changes in average rates (rate change) for earning assets and sources of funds on which interest is received or paid. Volume change is calculated as change in volume times the previous rate while rate change is change in rate times the previous volume. Changes not due solely to volume or rate changes are allocated to volume change and rate change in proportion to the relationship of the absolute dollar amounts of the change in each category.

RELIANT BANCORP, INC. NON-GAAP FINANCIAL MEASURES FOR THE PERIODS INDICATED (Dollar Amounts in Thousands, Except Per Share Amounts) (Unaudited)
	Three Months Ended									Nine Months Ended
	September 30, 2018			June 30, 2018			September 30, 2017			September 30, 2018			September 30, 2017
NON-GAAP FINANCIAL MEASURES
Adjusted net interest margin (1)
Net interest income	$	13,466		$	13,404		$	9,096		$	40,252		$	25,570
Purchase accounting adjustments	(364		)	(326		)	(475		)	(1,199		)	(718		)
Adjusted net interest income	$	13,102		$	13,078		$	8,621		$	39,053		$	24,852
Adjusted net interest margin	3.67		%	3.65		%	3.88		%	3.65		%	3.94		%
Adjusted net income attributable to common shareholders and Related Impact on ROA, ROE, and Earnings per Diluted Share (1)
Net income attributable to common shareholders	$	4,082		$	2,139		$	1,846		$	9,962		$	6,091
Purchase accounting adjustments	(73		)	(73		)	(385		)	(439		)	(439		)
Merger expenses	82			2,483			562			2,742			562
Pre-tax adjustments to net income	9			2,410			177			2,303			123
Tax effect of adjustments to net income	(13		)	632			(45		)	567			(66		)
After tax adjustments to net income	$	22		$	1,778		$	222		$	1,736		$	189
Adjusted net income attributable to common shareholders	$	4,104		$	3,917		$	2,068		$	11,698		$	6,280
Adjusted return on average assets	1.00		%	0.96		%	0.82		%	0.96		%	0.86		%
Adjusted return on average stockholders' equity	8.05		%	7.74		%	6.93		%	7.70		%	7.48		%
Adjusted return on tangible common equity	10.81		%	10.45		%	7.75		%	10.37		%	8.44		%
Adjusted net income attributable to common
shareholders, per diluted share	$	0.36		$	0.34		$	0.25		$	1.02		$	0.80
Efficiency ratio (subsidiary bank only excluding mortgage segment)(1)
Non-interest expense	$	9,174		$	8,867		$	5,747		$	27,021		$	16,914
Net interest income	13,492			13,362			8,924			40,055			25,225
Tax equivalent adjustment for tax exempt
interest income	812			490			566			1,747			1,570
Non-interest income	1,379			1,299			516			3,966			1,704
Less gain on sale of other real estate	(150		)	(20		)	(1		)	(259		)	(26		)
Less gain on sale of securities	(18		)	(25		)	—			(43		)	(59		)
Add loss (less gain) on disposal of premises and equipment	(16		)	—			50			(16		)	50
Adjusted operating income	$	15,499		$	15,106		$	10,055		$	45,450		$	28,464
Efficiency Ratio	59.19		%	58.70		%	57.16		%	59.45		%	59.42		%
(1) Not a recognized measure under generally accepted accounting principles (GAAP).

CONTACT:
Reliant Bancorp, Inc.
DeVan Ard, 615-221-2020
Chairman, President and Chief Executive Officer