On February 29, 2016, SmartFinancial, Inc. announced the completion of the merger of SmartBank and Cornerstone Community Bank, the Company's two wholly owned subsidiary banks. The surviving bank will have total assets in excess of $1 billion and will operate under the “SmartBank” name. Effective February 27, 2016, the Company appointed Felicia F. Barbee to act as Controller of the Company.

Also effective February 27, 2016, and in connection with the merger of SmartBank and Cornerstone Community Bank, Ms. Barbee's employment agreement with Cornerstone Community Bank was amended to name Ms. Barbee Chief Accounting Officer of the Bank, as well as to make certain other ministerial and administrative changes due to the merger of SmartBank and Cornerstone Community Bank. All other material terms of Ms. Barbee's employment agreement remain the same. Ms. Barbee previously served as Chief Financial Officer of Cornerstone Community Bank.

Effective February 27, 2016, and in connection with the merger of SmartBank and Cornerstone Community Bank, the Company's two wholly owned subsidiary banks, SmartBank executed an amendment to Robert B. (Barry) Watson's employment agreement. The employment agreement was amended to reflect Mr. Watson's new title of President – Chattanooga Region with SmartBank and to make certain other ministerial and administrative changes due to the merger of SmartBank and Cornerstone Community Bank. Mr. Watson was formerly a party to an employment agreement with Cornerstone Community Bank to serve as President of Cornerstone Community Bank.

All other material terms of Mr. Watson's employment agreement remain the same.