• HBT Financial, Inc. Announces First Quarter 2024 Financial Results

    Source: Nasdaq GlobeNewswire / 22 Apr 2024 07:05:01   America/New_York

    First Quarter Highlights

    • Net income of $15.3 million, or $0.48 per diluted share; return on average assets (“ROAA”) of 1.23%; return on average stockholders' equity (“ROAE”) of 12.42%; and return on average tangible common equity (“ROATCE”)(1) of 14.83%
    • Adjusted net income(1) of $18.1 million; or $0.57 per diluted share; adjusted ROAA(1) of 1.45%; adjusted ROAE(1) of 14.72%; and adjusted ROATCE(1) of 17.57%
    • Asset quality remained strong with nonperforming assets to total assets of 0.20%, close to a historic low
    • Net interest margin and net interest margin (tax-equivalent basis)(1) remained stable at 3.94% and 3.99%, respectively

    BLOOMINGTON, Ill., April 22, 2024 (GLOBE NEWSWIRE) -- HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $15.3 million, or $0.48 diluted earnings per share, for the first quarter of 2024. This compares to net income of $18.4 million, or $0.58 diluted earnings per share, for the fourth quarter of 2023, and net income of $9.2 million, or $0.30 diluted earnings per share, for the first quarter of 2023.

    J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “This has been an excellent start to 2024 as we continue to show the strength of our franchise. Our profitability remained very strong with an adjusted ROAA(1) of 1.45% and an adjusted ROATCE(1) of 17.57%. Our net interest margin (tax-equivalent basis)(1) was stable at 3.99%, as the increase in funding costs has slowed. Deposits, excluding brokered deposits, increased slightly during the quarter while loans had a small decline. The decrease in loans included the payoff of several loans that had interest rates lower than the current yield on cash, so it did not have a material impact on profitability. Credit quality has remained strong, as evidenced by a net recovery for the quarter and nonperforming loans to total assets still being near a historic low. Despite an increase in interest rates having a negative impact on accumulated other comprehensive income (loss) during the quarter, we saw increases to all capital ratios and an increase to tangible book value per share(1) by $0.29. Tangible book value per share(1) has now grown by $1.74, or 15.2%, since March 31, 2023.”
    ____________________________________
    (1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

    Adjusted Net Income

    In addition to reporting GAAP results, the Company believes non-GAAP measures such as adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on closed branch premises, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the first quarter of 2024. This compares to adjusted net income of $19.3 million, or $0.60 adjusted diluted earnings per share, for the fourth quarter of 2023, and adjusted net income of $19.9 million, or $0.64 adjusted diluted earnings per share, for the first quarter of 2023 (see “Reconciliation of Non-GAAP Financial Measures” tables below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures).

    Net Interest Income and Net Interest Margin

    Net interest income for the first quarter of 2024 was $46.7 million, a decrease of 0.8% from $47.1 million for the fourth quarter of 2023. The slight decrease was primarily attributable to an increase in funding costs, which were partially offset by an increase in asset yields. The increase in asset yields was primarily driven by higher cash balances following the sale of $66.8 million of municipal securities as well as higher loan yields. The book yield of the securities sold was 1.87% and the average life was 6.7 years.

    Relative to the first quarter of 2023, net interest income decreased 0.3% from $46.8 million. The slight decrease was primarily attributable to an increase in funding costs, which were mostly offset by higher interest-earning asset balances following the Town and Country Financial Corporation (“Town and Country”) merger, which closed on February 1, 2023, and higher yields on interest-earning assets.

    Net interest margin for the first quarter of 2024 was 3.94%, compared to 3.93% for the fourth quarter of 2023, and net interest margin (tax-equivalent basis)(1) for the first quarter of 2024 was 3.99%, unchanged from the fourth quarter of 2023. Higher yields on interest-earning assets were offset by higher funding costs with the cost of funds increasing to 1.37% for the first quarter of 2024, compared to 1.26% for the fourth quarter of 2023.

    Relative to the first quarter of 2023, net interest margin decreased from 4.20% and net interest margin (tax-equivalent basis)(1) decreased from 4.26%. These decreases were primarily attributable to increases in funding costs outpacing increases in interest-earning asset yields.
    ____________________________________
    (1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

    Noninterest Income

    Noninterest income for the first quarter of 2024 was $5.6 million, a decrease of 38.9% from $9.2 million for the fourth quarter of 2023. The decrease was primarily attributable to $3.4 million in realized losses on the sale of securities during the first quarter of 2024 and $0.6 million of impairment losses on bank premises related to the closure of two branch premises now held for sale. Partially offsetting these losses were changes in the mortgage servicing rights fair value adjustment, with a $0.1 million positive fair value adjustment during the first quarter of 2024 compared to a $1.2 million negative fair value adjustment during the fourth quarter of 2023.

    Relative to the first quarter of 2023, noninterest income decreased 24.4% from $7.4 million. The decrease was primarily attributable to the $3.4 million in realized losses on the sales of securities in the first quarter of 2024 compared to $1.0 million in realized losses on the sale of securities in the first quarter of 2023.

    Noninterest Expense

    Noninterest expense for the first quarter of 2024 was $31.3 million, a 2.9% increase from $30.4 million for the fourth quarter of 2023. The increase was primarily attributable to a $0.9 million increase in salaries, which was impacted by seasonal variations in vacation accruals, annual merit increases that were effective at the beginning of March, and the refresh of annual payroll tax limitations. Additionally, the $0.4 million increase in employee benefit expenses was primarily attributable to higher medical benefit costs.

    Relative to the first quarter of 2023, noninterest expense decreased 13.0% from $35.9 million, primarily attributable to the absence of $7.1 million of Town and Country acquisition-related expenses, partially offset by an increase in salaries and benefits expenses.

    Acquisition-related expenses recognized during the first quarter of 2023 are summarized below. No Town and Country acquisition-related expenses were recognized subsequent to the second quarter of 2023.

    (dollars in thousands)Three Months Ended
    March 31, 2023
      
    PROVISION FOR CREDIT LOSSES$5,924
    NONINTEREST EXPENSE 
    Salaries 3,518
    Data processing 1,855
    Marketing and customer relations 14
    Legal fees and other noninterest expense 1,753
    Total noninterest expense 7,140
    Total acquisition-related expenses$13,064


    Loan Portfolio

    Total loans outstanding, before allowance for credit losses, were $3.35 billion at March 31, 2024, compared with $3.40 billion at December 31, 2023 and $3.20 billion at March 31, 2023. The $58.5 million decrease from December 31, 2023 reflected a decrease in line utilization on existing lines of credit by $28.3 million, including $13.2 million drawn by two customers’ lines that paid off shortly after December 31, 2023 and were noted in the previous quarter’s earnings release. Additionally, across the portfolio, early payoffs of loans maturing or repricing beyond 2024 with fixed rates of 4.00% or less totaled $14.4 million. Construction and land development loans decreased by $18.0 million with several completed projects shifting to other loan categories. Although grain elevator loans increased $5.7 million during the first quarter of 2024, seasonal line utilization was significantly lower relative to historical levels.

    Deposits

    Total deposits were $4.36 billion at March 31, 2024, compared with $4.40 billion at December 31, 2023 and $4.31 billion at March 31, 2023. The $40.9 million decrease from December 31, 2023 was primarily attributable to a $89.1 million decrease in brokered deposits, which was partially offset by the addition of $33.9 million of time deposits from a State of Illinois loan matching program that are a lower cost source of funding.

    Asset Quality

    Nonperforming loans totaled $9.7 million, or 0.29% of total loans, at March 31, 2024, compared with $7.9 million, or 0.23% of total loans, at December 31, 2023, and $6.5 million, or 0.20% of total loans, at March 31, 2023. Additionally, of the $9.7 million of nonperforming loans held as of March 31, 2024, $2.7 million is either wholly or partially guaranteed by the U.S. government. The $1.8 million increase in nonperforming loans from December 31, 2023 was primarily attributable to the movement of a few commercial and industrial and commercial real estate - owner occupied credits to nonaccrual status.

    The Company recorded a provision for credit losses of $0.5 million for the first quarter of 2024. The provision for credit losses primarily reflects a $3.7 million increase in required reserves resulting from changes in qualitative factors, a $2.1 million decrease in required reserves resulting from changes in economic forecasts, a $1.0 million decrease in required reserves driven by a reduction in loan portfolio balances, and a $0.1 million decrease in specific reserve.

    The Company had net recoveries of $0.2 million, or 0.02% of average loans on an annualized basis, for the first quarter of 2024, compared to net charge-offs of $0.5 million, or 0.06% of average loans on an annualized basis, for the fourth quarter of 2023, and net recoveries of $0.1 million, or 0.02% of average loans on an annualized basis, for the first quarter of 2023.

    The Company’s allowance for credit losses was 1.22% of total loans and 423% of nonperforming loans at March 31, 2024, compared with 1.18% of total loans and 510% of nonperforming loans at December 31, 2023. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $3.8 million as of March 31, 2024, compared with $3.8 million as of December 31, 2023.

    Capital

    The ratio of tangible common equity to tangible assets(1) increased to 8.40% as of March 31, 2024, from 8.19% as of December 31, 2023, and tangible book value per share(1) increased by $0.29 to $13.19 as of March 31, 2024, when compared to December 31, 2023.

    During the first quarter of 2024, the Company repurchased 179,281 shares of its common stock at a weighted average price of $18.93 under its stock repurchase program. The Company’s Board of Directors has authorized the repurchase of up to $15 million of HBT Financial common stock under its stock repurchase program, which is in effect until January 1, 2025. As of March 31, 2024, the Company had $11.6 million remaining under the stock repurchase program.
    ____________________________________
    (1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

    About HBT Financial, Inc.

    HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. HBT Financial provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa through 66 full-service branches. As of March 31, 2024, HBT Financial had total assets of $5.0 billion, total loans of $3.3 billion, and total deposits of $4.4 billion.

    Non-GAAP Financial Measures

    Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), ratio of tangible common equity to tangible assets, tangible book value per share, ROATCE, adjusted net income, adjusted earnings per share, adjusted ROAA, adjusted ROAE, and adjusted ROATCE. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the “Reconciliation of Non-GAAP Financial Measures” tables.

    Forward-Looking Statements

    Readers should note that in addition to the historical information contained herein, this press release contains, and future oral and written statements of the Company and its management may contain, “forward-looking statements” within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as “will,” “propose,” “may,” “plan,” “seek,” “expect,” “intend,” “estimate,” “anticipate,” “believe,” “continue,” or “should,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

    Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the Israeli-Palestinian conflict and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (iv) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the recent failures of other banks or as a result of the upcoming 2024 presidential election; (v) changes in interest rates and prepayment rates of the Company’s assets (including the effects of significant rate increases by the Federal Reserve since 2020); (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions and “fintech” companies, and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xix) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

    CONTACT:
    Peter Chapman
    HBTIR@hbtbank.com
    (309) 664-4556


    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
     
      As of or for the Three Months Ended
    (dollars in thousands, except per share data) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    Interest and dividend income $61,961  $61,411  $51,779 
    Interest expense  15,273   14,327   4,942 
    Net interest income  46,688   47,084   46,837 
    Provision for credit losses  527   1,113   6,210 
    Net interest income after provision for credit losses  46,161   45,971   40,627 
    Noninterest income  5,626   9,205   7,437 
    Noninterest expense  31,268   30,387   35,933 
    Income before income tax expense  20,519   24,789   12,131 
    Income tax expense  5,261   6,343   2,923 
    Net income $15,258  $18,446  $9,208 
           
    Earnings per share - Diluted $0.48  $0.58  $0.30 
           
    Adjusted net income (1) $18,073  $19,272  $19,859 
    Adjusted earnings per share - Diluted (1)  0.57   0.60   0.64 
           
    Book value per share $15.71  $15.44  $14.02 
    Tangible book value per share (1)  13.19   12.90   11.45 
           
    Shares of common stock outstanding  31,612,888   31,695,828   32,095,370 
    Weighted average shares of common stock outstanding  31,662,954   31,708,381   30,977,204 
           
    SUMMARY RATIOS      
    Net interest margin *  3.94 %  3.93 %  4.20 %
    Net interest margin (tax-equivalent basis) * (1)(2)  3.99   3.99   4.26 
           
    Efficiency ratio  58.41 %  52.70 %  65.27 %
    Efficiency ratio (tax-equivalent basis) (1)(2)  57.78   52.09   64.43 
           
    Loan to deposit ratio  76.73 %  77.35 %  74.13 %
           
    Return on average assets *  1.23 %  1.46 %  0.78 %
    Return on average stockholders' equity *  12.42   15.68   8.84 
    Return on average tangible common equity * (1)  14.83   18.96   10.45 
           
    Adjusted return on average assets * (1)  1.45 %  1.53 %  1.69 %
    Adjusted return on average stockholders' equity * (1)  14.72   16.38   19.08 
    Adjusted return on average tangible common equity * (1)  17.57   19.81   22.55 
           
    CAPITAL      
    Total capital to risk-weighted assets  15.79 %  15.33 %  15.11 %
    Tier 1 capital to risk-weighted assets  13.77   13.42   13.16 
    Common equity tier 1 capital ratio  12.44   12.12   11.79 
    Tier 1 leverage ratio  10.65   10.49   10.29 
    Total stockholders' equity to total assets  9.85   9.65   8.98 
    Tangible common equity to tangible assets (1)  8.40   8.19   7.45 
           
    ASSET QUALITY      
    Net charge-offs (recoveries) to average loans  (0.02)%  0.06 %  (0.02)%
    Allowance for credit losses to loans, before allowance for credit losses  1.22   1.18   1.21 
    Nonperforming loans to loans, before allowance for credit losses  0.29   0.23   0.20 
    Nonperforming assets to total assets  0.20   0.17   0.20 
     

    * Annualized measure.

    (1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
    (2) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.


    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
    Consolidated Statements of Income
     
      Three Months Ended
    (dollars in thousands, except per share data) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    INTEREST AND DIVIDEND INCOME      
    Loans, including fees:      
    Taxable $51,926  $52,060  $42,159 
    Federally tax exempt  1,094   1,125   952 
    Securities:      
    Taxable  6,250   6,377   6,616 
    Federally tax exempt  597   888   1,197 
    Interest-bearing deposits in bank  1,952   786   739 
    Other interest and dividend income  142   175   116 
    Total interest and dividend income  61,961   61,411   51,779 
    INTEREST EXPENSE      
    Deposits  13,593   11,227   2,374 
    Securities sold under agreements to repurchase  152   148   38 
    Borrowings  125   1,534   1,297 
    Subordinated notes  470   470   470 
    Junior subordinated debentures issued to capital trusts  933   948   763 
    Total interest expense  15,273   14,327   4,942 
    Net interest income  46,688   47,084   46,837 
    PROVISION FOR CREDIT LOSSES  527   1,113   6,210 
    Net interest income after provision for credit losses  46,161   45,971   40,627 
    NONINTEREST INCOME      
    Card income  2,616   2,717   2,658 
    Wealth management fees  2,547   2,885   2,338 
    Service charges on deposit accounts  1,869   2,016   1,871 
    Mortgage servicing  1,055   1,156   1,099 
    Mortgage servicing rights fair value adjustment  80   (1,155)  (624)
    Gains on sale of mortgage loans  298   401   276 
    Realized gains (losses) on sales of securities  (3,382)  —   (1,007)
    Unrealized gains (losses) on equity securities  (16)  221   (22)
    Gains (losses) on foreclosed assets  87   58   (10)
    Gains (losses) on other assets  (635)  5   — 
    Income on bank owned life insurance  164   158   115 
    Other noninterest income  943   743   743 
    Total noninterest income  5,626   9,205   7,437 
    NONINTEREST EXPENSE      
    Salaries  16,657   15,738   19,411 
    Employee benefits  2,805   2,379   2,335 
    Occupancy of bank premises  2,582   2,458   2,102 
    Furniture and equipment  550   655   659 
    Data processing  2,925   2,565   4,323 
    Marketing and customer relations  996   1,169   836 
    Amortization of intangible assets  710   720   510 
    FDIC insurance  560   575   563 
    Loan collection and servicing  452   431   278 
    Foreclosed assets  49   17   61 
    Other noninterest expense  2,982   3,680   4,855 
    Total noninterest expense  31,268   30,387   35,933 
    INCOME BEFORE INCOME TAX EXPENSE  20,519   24,789   12,131 
    INCOME TAX EXPENSE  5,261   6,343   2,923 
    NET INCOME $15,258  $18,446  $9,208 
           
    EARNINGS PER SHARE - BASIC $0.48  $0.58  $0.30 
    EARNINGS PER SHARE - DILUTED $0.48  $0.58  $0.30 
    WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING  31,662,954   31,708,381   30,977,204 


    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
    Consolidated Balance Sheets
     
    (dollars in thousands) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    ASSETS      
    Cash and due from banks $19,989  $26,256  $35,244 
    Interest-bearing deposits with banks  240,223   114,996   141,868 
    Cash and cash equivalents  260,212   141,252   177,112 
           
    Interest-bearing time deposits with banks  515   509   249 
    Debt securities available-for-sale, at fair value  669,020   759,461   854,622 
    Debt securities held-to-maturity  517,472   521,439   536,429 
    Equity securities with readily determinable fair value  3,324   3,360   3,145 
    Equity securities with no readily determinable fair value  2,622   2,505   1,980 
    Restricted stock, at cost  5,155   7,160   4,991 
    Loans held for sale  3,479   2,318   5,130 
           
    Loans, before allowance for credit losses  3,345,962   3,404,417   3,195,540 
    Allowance for credit losses  (40,815)  (40,048)  (38,776)
    Loans, net of allowance for credit losses  3,305,147   3,364,369   3,156,764 
           
    Bank owned life insurance  24,069   23,905   23,447 
    Bank premises and equipment, net  64,755   65,150   65,119 
    Bank premises held for sale  317   —   235 
    Foreclosed assets  277   852   3,356 
    Goodwill  59,820   59,820   59,876 
    Intangible assets, net  19,972   20,682   22,842 
    Mortgage servicing rights, at fair value  19,081   19,001   19,992 
    Investments in unconsolidated subsidiaries  1,614   1,614   1,614 
    Accrued interest receivable  23,117   24,534   20,301 
    Other assets  60,542   55,239   56,617 
    Total assets $5,040,510  $5,073,170  $5,013,821 
           
    LIABILITIES AND STOCKHOLDERS' EQUITY      
    Liabilities      
    Deposits:      
    Noninterest-bearing $1,047,074  $1,072,407  $1,218,888 
    Interest-bearing  3,313,500   3,329,030   3,091,633 
    Total deposits  4,360,574   4,401,437   4,310,521 
           
    Securities sold under agreements to repurchase  31,864   42,442   34,919 
    Federal Home Loan Bank advances  12,725   12,623   75,183 
    Subordinated notes  39,494   39,474   39,415 
    Junior subordinated debentures issued to capital trusts  52,804   52,789   52,746 
    Other liabilities  46,368   34,909   50,939 
    Total liabilities  4,543,829   4,583,674   4,563,723 
           
    Stockholders' Equity      
    Common stock  328   327   327 
    Surplus  296,054   295,877   294,441 
    Retained earnings  278,353   269,051   228,782 
    Accumulated other comprehensive income (loss)  (56,048)  (57,163)  (62,175)
    Treasury stock at cost  (22,006)  (18,596)  (11,277)
    Total stockholders’ equity  496,681   489,496   450,098 
    Total liabilities and stockholders’ equity $5,040,510  $5,073,170  $5,013,821 
    SHARES OF COMMON STOCK OUTSTANDING  31,612,888   31,695,828   32,095,370 


    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
     
    (dollars in thousands) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    LOANS      
    Commercial and industrial $402,206  $427,800  $333,013 
    Commercial real estate - owner occupied  294,967   295,842   317,103 
    Commercial real estate - non-owner occupied  890,251   880,681   854,024 
    Construction and land development  345,991   363,983   389,142 
    Multi-family  421,573   417,923   362,672 
    One-to-four family residential  485,948   491,508   482,732 
    Agricultural and farmland  287,205   287,294   243,357 
    Municipal, consumer, and other  217,821   239,386   213,497 
    Total loans $3,345,962  $3,404,417  $3,195,540 


    (dollars in thousands) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    DEPOSITS      
    Noninterest-bearing deposits $1,047,074  $1,072,407  $1,218,888 
    Interest-bearing deposits:      
    Interest-bearing demand  1,139,172   1,145,092   1,270,454 
    Money market  802,685   803,381   662,088 
    Savings  602,739   608,424   738,719 
    Time  713,142   627,253   420,372 
    Brokered  55,762   144,880   — 
    Total interest-bearing deposits  3,313,500   3,329,030   3,091,633 
    Total deposits $4,360,574  $4,401,437  $4,310,521 


    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
     
      Three Months Ended
      March 31, 2024 December 31, 2023 March 31, 2023
    (dollars in thousands) Average
    Balance    		 Interest Yield/Cost * Average
    Balance    		 Interest Yield/Cost * Average
    Balance    		 Interest Yield/Cost *
    ASSETS                  
    Loans $3,371,219  $53,020  6.33 % $3,374,451  $53,185  6.25 % $3,012,320  $43,111  5.80 %
    Securities  1,221,447   6,847  2.25   1,282,773   7,265  2.25   1,411,613   7,813  2.24 
    Deposits with banks  167,297   1,952  4.69   84,021   786  3.71   92,363   739  3.24 
    Other  5,486   142  10.40   7,505   175  9.23   7,425   116  6.33 
    Total interest-earning assets  4,765,449  $61,961  5.23 %  4,748,750  $61,411  5.13 %  4,523,721  $51,779  4.64 %
    Allowance for credit losses  (40,238)      (38,844)      (33,301)    
    Noninterest-earning assets  278,253       292,543       274,870     
    Total assets $5,003,464      $5,002,449      $4,765,290     
                       
    LIABILITIES AND STOCKHOLDERS' EQUITY                  
    Liabilities                  
    Interest-bearing deposits:                  
    Interest-bearing demand $1,127,684  $1,311  0.47 % $1,140,438  $1,228  0.43 % $1,230,644  $458  0.15 %
    Money market  812,684   4,797  2.37   684,197   2,885  1.67   634,608   935  0.60 
    Savings  611,224   443  0.29   610,767   417  0.27   709,862   178  0.10 
    Time  664,498   5,925  3.59   599,293   4,773  3.16   356,779   803  0.91 
    Brokered  82,150   1,117  5.47   140,963   1,924  5.42   —   —  — 
    Total interest-bearing deposits  3,298,240   13,593  1.66   3,175,658   11,227  1.40   2,931,893   2,374  0.33 
    Securities sold under agreements to repurchase  32,456   152  1.89   34,282   148  1.71   39,619   38  0.38 
    Borrowings  13,003   125  3.87   114,220   1,534  5.33   113,896   1,297  4.62 
    Subordinated notes  39,484   470  4.78   39,464   470  4.72   39,403   470  4.83 
    Junior subordinated debentures issued to capital trusts  52,796   933  7.11   52,782   948  7.13   47,586   763  6.50 
    Total interest-bearing liabilities  3,435,979  $15,273  1.79 %  3,416,406  $14,327  1.66 %  3,172,397  $4,942  0.63 %
    Noninterest-bearing deposits  1,036,402       1,081,795       1,121,365     
    Noninterest-bearing liabilities  37,107       37,440       49,316     
    Total liabilities  4,509,488       4,535,641       4,343,078     
    Stockholders' Equity  493,976       466,808       422,212     
    Total liabilities and stockholders’ equity $5,003,464      $5,002,449      $4,765,290     
                       
    Net interest income/Net interest margin (1)   $46,688  3.94 %   $47,084  3.93 %   $46,837  4.20 %
    Tax-equivalent adjustment (2)    575  0.05     666  0.06     702  0.06 
    Net interest income (tax-equivalent basis)/
    Net interest margin (tax-equivalent basis) (2) (3)    		   $47,263  3.99 %   $47,750  3.99 %   $47,539  4.26 %
    Net interest rate spread (4)     3.44 %     3.47 %     4.01 %
    Net interest-earning assets (5) $1,329,470      $1,332,344      $1,351,324     
    Ratio of interest-earning assets to interest-bearing liabilities  1.39       1.39       1.43     
    Cost of total deposits     1.26 %     1.05 %     0.24 %
    Cost of funds     1.37      1.26      0.47 
     

    * Annualized measure.

    (1) Net interest margin represents net interest income divided by average total interest-earning assets.
    (2) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
    (3) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
    (4) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
    (5) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.


    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
     
    (dollars in thousands) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    NONPERFORMING ASSETS      
    Nonaccrual $9,657  $7,820  $6,508 
    Past due 90 days or more, still accruing  —   37   10 
    Total nonperforming loans  9,657   7,857   6,518 
    Foreclosed assets  277   852   3,356 
    Total nonperforming assets $9,934  $8,709  $9,874 
           
    Nonperforming loans that are wholly or partially guaranteed by the U.S. Government $2,676  $2,641  $1,997 
           
    Allowance for credit losses $40,815  $40,048  $38,776 
    Loans, before allowance for credit losses  3,345,962   3,404,417   3,195,540 
           
    CREDIT QUALITY RATIOS      
    Allowance for credit losses to loans, before allowance for credit losses  1.22 %  1.18 %  1.21 %
    Allowance for credit losses to nonaccrual loans  422.65   512.12   595.82 
    Allowance for credit losses to nonperforming loans  422.65   509.71   594.91 
    Nonaccrual loans to loans, before allowance for credit losses  0.29   0.23   0.20 
    Nonperforming loans to loans, before allowance for credit losses  0.29   0.23   0.20 
    Nonperforming assets to total assets  0.20   0.17   0.20 
    Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets  0.30   0.26   0.31 


    HBT Financial, Inc.
    Unaudited Consolidated Financial Summary
      Three Months Ended
    (dollars in thousands) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    ALLOWANCE FOR CREDIT LOSSES      
    Beginning balance $40,048  $38,863  $25,333 
    Adoption of ASC 326  —   —   6,983 
    PCD allowance established in acquisition  —   —   1,247 
    Provision for credit losses  560   1,661   5,101 
    Charge-offs  (227)  (626)  (142)
    Recoveries  434   150   254 
    Ending balance $40,815  $40,048  $38,776 
           
    Net charge-offs (recoveries) $(207) $476  $(112)
    Average loans  3,371,219   3,374,451   3,012,320 
           
    Net charge-offs (recoveries) to average loans *  (0.02)%  0.06 %  (0.02)%
     

    * Annualized measure.

      Three Months Ended
    (dollars in thousands) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    PROVISION FOR CREDIT LOSSES      
    Loans (1) $560  $1,661  $5,101 
    Unfunded lending-related commitments (1)  (33)  (548)  509 
    Debt securities  —   —   600 
    Total provision for credit losses $527  $1,113  $6,210 
     

    (1) Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.


    Reconciliation of Non-GAAP Financial Measures –
    Adjusted Net Income and Adjusted Return on Average Assets
     
      Three Months Ended
    (dollars in thousands) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    Net income $15,258  $18,446  $9,208 
    Adjustments:      
    Acquisition expenses (1)  —   —   (13,064)
    Gains (losses) on closed branch premises  (635)  —   — 
    Realized gains (losses) on sales of securities  (3,382)  —   (1,007)
    Mortgage servicing rights fair value adjustment  80   (1,155)  (624)
    Total adjustments  (3,937)  (1,155)  (14,695)
    Tax effect of adjustments  1,122   329   4,044 
    Total adjustments after tax effect  (2,815)  (826)  (10,651)
    Adjusted net income $18,073  $19,272  $19,859 
           
    Average assets $5,003,464  $5,002,449  $4,765,290 
           
    Return on average assets *  1.23 %  1.46 %  0.78 %
    Adjusted return on average assets *  1.45   1.53   1.69 
     

    * Annualized measure.

    (1) Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.


    Reconciliation of Non-GAAP Financial Measures –
    Adjusted Earnings Per Share — Basic and Diluted
     
      Three Months Ended
    (dollars in thousands, except per share amounts) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    Numerator:      
    Net income $15,258  $18,446  $9,208 
    Earnings allocated to participating securities (1)  —   (10)  (5)
    Numerator for earnings per share - basic and diluted $15,258  $18,436  $9,203 
           
    Adjusted net income $18,073  $19,272  $19,859 
    Earnings allocated to participating securities (1)  —   (9)  (13)
    Numerator for adjusted earnings per share - basic and diluted $18,073  $19,263  $19,846 
           
    Denominator:      
    Weighted average common shares outstanding  31,662,954   31,708,381   30,977,204 
    Dilutive effect of outstanding restricted stock units  140,233   139,332   69,947 
    Weighted average common shares outstanding, including all dilutive potential shares  31,803,187   31,847,713   31,047,151 
           
    Earnings per share - Basic $0.48  $0.58  $0.30 
    Earnings per share - Diluted $0.48  $0.58  $0.30 
           
    Adjusted earnings per share - Basic $0.57  $0.61  $0.64 
    Adjusted earnings per share - Diluted $0.57  $0.60  $0.64 
     

    (1) The Company previously granted restricted stock units that contain non-forfeitable rights to dividend equivalents, which were considered participating securities. Prior to 2024, these restricted stock units were included in the calculation of basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.


    Reconciliation of Non-GAAP Financial Measures –
    Net Interest Income (Tax-equivalent Basis) and Net Interest Margin (Tax-equivalent Basis)
     
      Three Months Ended
    (dollars in thousands) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    Net interest income (tax-equivalent basis)      
    Net interest income $46,688  $47,084  $46,837 
    Tax-equivalent adjustment (1)  575   666   702 
    Net interest income (tax-equivalent basis) (1) $47,263  $47,750  $47,539 
           
    Net interest margin (tax-equivalent basis)      
    Net interest margin *  3.94 %  3.93 %  4.20 %
    Tax-equivalent adjustment * (1)  0.05   0.06   0.06 
    Net interest margin (tax-equivalent basis) * (1)  3.99 %  3.99 %  4.26 %
           
    Average interest-earning assets $4,765,449  $4,748,750  $4,523,721 
     

    * Annualized measure.

    (1) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.


    Reconciliation of Non-GAAP Financial Measures –
    Efficiency Ratio (Tax-equivalent Basis)
     
      Three Months Ended
    (dollars in thousands) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    Efficiency ratio (tax-equivalent basis)      
    Total noninterest expense $31,268  $30,387  $35,933 
    Less: amortization of intangible assets  710   720   510 
    Noninterest expense excluding amortization of intangible assets $30,558  $29,667  $35,423 
           
    Net interest income $46,688  $47,084  $46,837 
    Total noninterest income  5,626   9,205   7,437 
    Operating revenue  52,314   56,289   54,274 
    Tax-equivalent adjustment (1)  575   666   702 
    Operating revenue (tax-equivalent basis) (1) $52,889  $56,955  $54,976 
           
    Efficiency ratio  58.41 %  52.70 %  65.27 %
    Efficiency ratio (tax-equivalent basis) (1)  57.78   52.09   64.43 
     

    (1) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.


    Reconciliation of Non-GAAP Financial Measures –
    Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share
     
    (dollars in thousands, except per share data) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    Tangible Common Equity      
    Total stockholders' equity $496,681  $489,496  $450,098 
    Less: Goodwill  59,820   59,820   59,876 
    Less: Intangible assets, net  19,972   20,682   22,842 
    Tangible common equity $416,889  $408,994  $367,380 
           
    Tangible Assets      
    Total assets $5,040,510  $5,073,170  $5,013,821 
    Less: Goodwill  59,820   59,820   59,876 
    Less: Intangible assets, net  19,972   20,682   22,842 
    Tangible assets $4,960,718  $4,992,668  $4,931,103 
           
    Total stockholders' equity to total assets  9.85 %  9.65 %  8.98 %
    Tangible common equity to tangible assets  8.40   8.19   7.45 
           
    Shares of common stock outstanding  31,612,888   31,695,828   32,095,370 
           
    Book value per share $15.71  $15.44  $14.02 
    Tangible book value per share  13.19   12.90   11.45 


    Reconciliation of Non-GAAP Financial Measures –
    Return on Average Tangible Common Equity,
    Adjusted Return on Average Stockholders' Equity and Adjusted Return on Average Tangible Common Equity
     
      Three Months Ended
    (dollars in thousands) March 31,
    2024    		 December 31,
    2023    		 March 31,
    2023
    Average Tangible Common Equity      
    Total stockholders' equity $493,976  $466,808  $422,212 
    Less: Goodwill  59,820   59,820   49,352 
    Less: Intangible assets, net  20,334   21,060   15,635 
    Average tangible common equity $413,822  $385,928  $357,225 
           
    Net income $15,258  $18,446  $9,208 
    Adjusted net income  18,073   19,272   19,859 
           
    Return on average stockholders' equity *  12.42 %  15.68 %  8.84 %
    Return on average tangible common equity *  14.83   18.96   10.45 
           
    Adjusted return on average stockholders' equity *  14.72 %  16.38 %  19.08 %
    Adjusted return on average tangible common equity *  17.57   19.81   22.55 
     

    * Annualized measure.


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