HBT Financial, Inc. Announces Third Quarter 2024 Financial Results


(MENAFN- GlobeNewsWire - Nasdaq) Third Quarter Highlights

  • Net income of $18.2 million, or $0.57 per diluted share; return on average assets (“ROAA”) of 1.44%; return on average stockholders' equity (“ROAE”) of 13.81%; and return on average tangible common equity (“ROATCE”) (1) of 16.25%
  • Adjusted net income (1) of $19.2 million; or $0.61 per diluted share; adjusted ROAA (1) of 1.53%; adjusted ROAE (1) of 14.62%; and adjusted ROATCE (1) of 17.20%
  • Asset quality remained strong with nonperforming assets to total assets of 0.17% and net charge-offs to average loans of 0.07%, on an annualized basis
  • Net interest margin and net interest margin (tax-equivalent basis) (1) expanded to 3.98% and 4.03%, respectively

BLOOMINGTON, Ill., Oct. 21, 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 $18.2 million, or $0.57 diluted earnings per share, for the third quarter of 2024. This compares to net income of $18.1 million, or $0.57 diluted earnings per share, for the second quarter of 2024, and net income of $19.7 million, or $0.62 diluted earnings per share, for the third quarter of 2023.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said,“In the third quarter, we continued our consistently solid financial performance with net income of $18.2 million, adjusted net income(1) of $19.2 million, adjusted ROAA(1) of 1.53% and adjusted ROATCE(1) of 17.20%. We have also seen tangible equity continue to build, with tangible book value per share increasing 23.3% over the last year. Our net interest margin (tax-equivalent basis)(1) increased 3 basis points to 4.03% while funding costs remained modest, increasing 5 basis points to 1.47%. Our asset quality remains strong with net charge-offs at 0.07% of average loans on an annualized basis during the quarter and nonperforming assets to total assets at 0.17%. We have not seen any significant signs of stress in our loan portfolio, but we continue to monitor the portfolio closely. Noninterest income remained consistent and noninterest expense of $31.3 million was up only 2.1% when compared to the third quarter of 2023, as we remain focused on operational efficiency while continuing to invest in our business. Lastly, all capital ratios had solid increases and can support future organic growth or acquisitions.”
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(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 $19.2 million, or $0.61 adjusted diluted earnings per share, for the third quarter of 2024. This compares to adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the second quarter of 2024, and adjusted net income of $20.3 million, or $0.63 adjusted diluted earnings per share, for the third 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 third quarter of 2024 was $47.7 million, an increase of 1.5% from $47.0 million for the second quarter of 2024. The increase was primarily attributable to improved loan yields which were mostly offset by an increase in funding costs.

Relative to the third quarter of 2023, net interest income decreased 1.1% from $48.3 million. The decrease was primarily attributable to higher funding costs which were partially offset by higher asset yields and an increase in interest-earning assets.

Net interest margin for the third quarter of 2024 was 3.98%, compared to 3.95% for the second quarter of 2024, and net interest margin (tax-equivalent basis)(1) for the third quarter of 2024 was 4.03%, compared to 4.00% for the second quarter of 2024. Higher yields on interest-earning assets, which increased by 7 basis points to 5.35%, were mostly offset by an increase in funding costs, with the cost of funds increasing by 5 basis points to 1.47%.

Relative to the third quarter of 2023, net interest margin decreased 9 basis points from 4.07% and net interest margin (tax-equivalent basis)(1) decreased 10 basis points from 4.13%. These decreases were primarily attributable to increases in funding costs outpacing increases in interest-earning asset yields.
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(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 third quarter of 2024 was $8.7 million, a decrease from $9.6 million for the second quarter of 2024. The decrease was primarily attributable to changes in the mortgage servicing rights (“MSR”) fair value adjustment, with a $1.5 million negative MSR fair value adjustment included in the third quarter 2024 results compared to a $0.1 million negative MSR fair value adjustment included in the second quarter 2024 results. Partially offsetting the MSR fair value adjustment was a $0.2 million increase in service charge income and a $0.2 million increase in other noninterest income, primarily attributable to swap fee income.

Relative to the third quarter of 2023, noninterest income decreased 8.3% from $9.5 million. The decrease was primarily attributable to the $1.5 million negative MSR fair value adjustment included in the third quarter 2024 results, partially offset by the absence of $0.8 million in realized losses on the sale of securities included in the third quarter 2023 results.

Noninterest Expense

Noninterest expense for the third quarter of 2024 was $31.3 million, a 2.7% increase from $30.5 million for the second quarter of 2024. The increase was primarily attributable to a $0.5 million increase in occupancy expense, driven in part by a seasonal increase in planned building maintenance expenses, and a $0.4 million increase in marketing and customer relations expense.

Relative to the third quarter of 2023, noninterest expense increased 2.1% from $30.7 million. The increase was primarily attributable to a $0.7 million increase in salaries and a $0.4 million increase in employee benefits. Partially offsetting these increases was a $0.3 million decrease in marketing and customer relations expense.

On February 1, 2023, HBT Financial completed its acquisition of Town and Country Financial Corporation (“Town and Country”) with the core system conversion successfully completed in April 2023. Acquisition-related expenses recognized during the nine months ended September 30, 2023 are summarized below. No Town and Country acquisition-related expenses were recognized subsequent to the second quarter of 2023.

(dollars in thousands) Nine Months Ended
September 30, 2023
PROVISION FOR CREDIT LOSSES $ 5,924
NONINTEREST EXPENSE
Salaries 3,584
Furniture and equipment 39
Data processing 2,031
Marketing and customer relations 24
Loan collection and servicing 125
Legal fees and other noninterest expense 1,964
Total noninterest expense 7,767
Total acquisition-related expenses $ 13,691

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.37 billion at September 30, 2024, compared with $3.39 billion at June 30, 2024, and $3.34 billion at September 30, 2023. The $15.7 million decrease from June 30, 2024 was primarily attributable to several larger commercial real estate loan payoffs due to the sale of the property and a couple of larger one-to-four family residential loan payoffs. These decreases were partially offset by increased line usage and term originations in our agricultural and farmland portfolio.

Deposits

Total deposits were $4.28 billion at September 30, 2024, compared with $4.32 billion at June 30, 2024, and $4.20 billion at September 30, 2023. The $38.0 million decrease from June 30, 2024 was primarily attributable to lower balances maintained in retail accounts and a $18.3 million decrease in escrow balances related to seasonal tax payments, partially offset by increases in public funds and business accounts. Additionally, we continue to see a shift towards higher cost deposit products, with decreases in noninterest-bearing deposits, interest-bearing demand, and savings balances being partially offset by an increase in money market and time deposit balances.

Asset Quality

Nonperforming loans totaled $8.2 million, or 0.24% of total loans, at September 30, 2024, compared with $8.4 million, or 0.25% of total loans, at June 30, 2024, and $6.7 million, or 0.20% of total loans, at September 30, 2023. Additionally, of the $8.2 million of nonperforming loans held as of September 30, 2024, $2.0 million is either wholly or partially guaranteed by the U.S. government. The $0.2 million decrease in nonperforming loans from June 30, 2024 was primarily attributable to the payoff of $0.1 million in nonaccrual agricultural and farmland loans.

The Company recorded a provision for credit losses of $0.6 million for the third quarter of 2024. The provision for credit losses primarily reflects a $1.2 million increase in required reserves resulting from changes in economic forecasts; a $0.2 million increase in required reserves resulting from qualitative factor changes; a $0.6 million decrease in required reserves driven by decreased loan balances and changes within the loan portfolio; and a $0.2 million decrease in specific reserves.

The Company had net charge-offs of $0.6 million, or 0.07% of average loans on an annualized basis, for the third quarter of 2024, compared to net charge-offs of $0.7 million, or 0.08% of average loans on an annualized basis, for the second quarter of 2024, and net recoveries of $0.1 million, or 0.01% of average loans on an annualized basis, for the third quarter of 2023. During the third quarter of 2024, net charge-offs were primarily recognized in the commercial and industrial category which had $0.7 million of net charge-offs.

The Company's allowance for credit losses was 1.22% of total loans and 499% of nonperforming loans at September 30, 2024, compared with 1.21% of total loans and 484% of nonperforming loans at June 30, 2024. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $4.1 million as of September 30, 2024, compared with $4.3 million as of June 30, 2024.

Capital

As of September 30, 2024, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:

September 30, 2024 For Capital
Adequacy Purposes
With Capital
Conservation Buffer
Total capital to risk-weighted assets 16.54 % 10.50 %
Tier 1 capital to risk-weighted assets 14.48 8.50
Common equity tier 1 capital ratio 13.15 7.00
Tier 1 leverage ratio 11.16 4.00

The ratio of tangible common equity to tangible assets(1) increased to 9.35% as of September 30, 2024, from 8.74% as of June 30, 2024, and tangible book value per share(1) increased by $0.91 to $14.55 as of September 30, 2024, when compared to June 30, 2024.

During the third quarter of 2024, the Company did not repurchase shares of its common stock 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 September 30, 2024, the Company had $10.6 million remaining under the stock repurchase program.
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(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 September 30, 2024, HBT Financial had total assets of $5.0 billion, total loans of $3.4 billion, and total deposits of $4.3 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; (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 (including commercial real estate loans), 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
...
(309) 664-4556

HBT Financial, Inc.
Unaudited Consolidated Financial Summary
As of or for the Three Months Ended Nine Months Ended September 30,
(dollars in thousands, except per share data) September 30,
2024
June 30,
2024
September 30,
2023
2024 2023
Interest and dividend income $ 64,117 $ 62,824 $ 59,041 $ 188,902 $ 167,588
Interest expense 16,384 15,796 10,762 47,453 23,600
Net interest income 47,733 47,028 48,279 141,449 143,988
Provision for credit losses 603 1,176 480 2,306 6,460
Net interest income after provision for credit losses 47,130 45,852 47,799 139,143 137,528
Noninterest income 8,705 9,610 9,490 23,941 26,841
Noninterest expense 31,322 30,509 30,671 93,099 100,577
Income before income tax expense 24,513 24,953 26,618 69,985 63,792
Income tax expense 6,333 6,883 6,903 18,477 16,396
Net income $ 18,180 $ 18,070 $ 19,715 $ 51,508 $ 47,396
Earnings per share - Diluted $ 0.57 $ 0.57 $ 0.62 $ 1.62 $ 1.49
Adjusted net income (1) $ 19,244 $ 18,139 $ 20,279 $ 55,456 $ 58,910
Adjusted earnings per share - Diluted (1) 0.61 0.57 0.63 1.75 1.86
Book value per share $ 17.04 $ 16.14 $ 14.36
Tangible book value per share (1) 14.55 13.64 11.80
Shares of common stock outstanding 31,559,366 31,559,366 31,774,140
Weighted average shares of common stock outstanding 31,559,366 31,579,457 31,829,250 31,600,442 31,598,650
SUMMARY RATIOS
Net interest margin * 3.98 % 3.95 % 4.07 % 3.96 % 4.14 %
Net interest margin (tax-equivalent basis) * (1)(2) 4.03 4.00 4.13 4.01 4.20
Efficiency ratio 54.24 % 52.61 % 51.85 % 55.00 % 57.73 %
Efficiency ratio (tax-equivalent basis) (1)(2) 53.71 52.10 51.25 54.45 57.04
Loan to deposit ratio 78.72 % 78.39 % 79.63 %
Return on average assets * 1.44 % 1.45 % 1.58 % 1.37 % 1.29 %
Return on average stockholders' equity * 13.81 14.48 17.02 13.58 14.22
Return on average tangible common equity * (1) 16.25 17.21 20.70 16.11 17.17
Adjusted return on average assets * (1) 1.53 % 1.45 % 1.62 % 1.48 % 1.61 %
Adjusted return on average stockholders' equity * (1) 14.62 14.54 17.51 14.62 17.68
Adjusted return on average tangible common equity * (1) 17.20 17.27 21.29 17.34 21.34
CAPITAL
Total capital to risk-weighted assets 16.54 % 16.01 % 15.09 %
Tier 1 capital to risk-weighted assets 14.48 13.98 13.18
Common equity tier 1 capital ratio 13.15 12.66 11.88
Tier 1 leverage ratio 11.16 10.83 10.34
Total stockholders' equity to total assets 10.77 10.18 9.14
Tangible common equity to tangible assets (1) 9.35 8.74 7.64
ASSET QUALITY
Net charge-offs (recoveries) to average loans * 0.07 % 0.08 % (0.01) % 0.04 % (0.01) %
Allowance for credit losses to loans, before allowance for credit losses 1.22 1.21 1.16
Nonperforming loans to loans, before allowance for credit losses 0.24 0.25 0.20
Nonperforming assets to total assets 0.17 0.17 0.16
* 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 Nine Months Ended September 30,
(dollars in thousands, except per share data) September 30,
2024
June 30,
2024
September 30,
2023
2024 2023
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable $ 53,650 $ 52,177 $ 49, 640 $ 157,753 $ 138,948
Federally tax exempt 1,133 1,097 1,072 3,324 3,064
Debt Securities:
Taxable 6,453 6,315 6,402 18,972 19,460
Federally tax exempt 502 521 978 1,620 3,337
Interest-bearing deposits in bank 2,230 2,570 714 6,752 2,234
Other interest and dividend income 149 144 235 481 545
Total interest and dividend income 64,117 62,824 59,041 188,902 167,588
INTEREST EXPENSE
Deposits 14,649 14,133 7,211 42,375 13,908
Securities sold under agreements to repurchase 134 129 35 415 107
Borrowings 119 121 2,108 365 5,594
Subordinated notes 470 469 470 1,409 1,409
Junior subordinated debentures issued to capital trusts 1,012 944 938 2,889 2,582
Total interest expense 16,384 15,796 10,762 47,453 23,600
Net interest income 47,733 47,028 48,279 141,449 143,988
PROVISION FOR CREDIT LOSSES 603 1,176 480 2,306 6,460
Net interest income after provision for credit losses 47,130 45,852 47,799 139,143 137,528
NONINTEREST INCOME
Card income 2,753 2,885 2,763 8,254 8,326
Wealth management fees 2,670 2,623 2,381 7,840 6,998
Service charges on deposit accounts 2,081 1,902 2,040 5,852 5,830
Mortgage servicing 1,113 1,111 1,169 3,279 3,522
Mortgage servicing rights fair value adjustment (1,488 ) (97 ) 23 (1,505 ) (460 )
Gains on sale of mortgage loans 461 443 476 1,202 1,125
Realized gains (losses) on sales of securities - - (813 ) (3,382 ) (1,820 )
Unrealized gains (losses) on equity securities 136 (96 ) (46 ) 24 (61 )
Gains (losses) on foreclosed assets (44 ) (28 ) 550 15 443
Gains (losses) on other assets (2 ) - 52 (637 ) 161
Income on bank owned life insurance 170 166 153 500 415
Other noninterest income 855 701 742 2,499 2,362
Total noninterest income 8,705 9,610 9,490 23,941 26,841
NONINTEREST EXPENSE
Salaries 16,325 16,364 15,644 49,346 51,715
Employee benefits 2,997 2,860 2,616 8,662 7,658
Occupancy of bank premises 2,695 2,243 2,573 7,520 7,460
Furniture and equipment 446 548 667 1,544 2,135
Data processing 2,640 2,606 2,581 8,171 9,787
Marketing and customer relations 1,380 996 1,679 3,372 3,874
Amortization of intangible assets 710 710 720 2,130 1,950
FDIC insurance 572 565 512 1,697 1,705
Loan collection and servicing 476 475 345 1,403 971
Foreclosed assets 19 10 76 78 234
Other noninterest expense 3,062 3,132 3,258 9,176 13,088
Total noninterest expense 31,322 30,509 30,671 93,099 100,577
INCOME BEFORE INCOME TAX EXPENSE 24,513 24,953 26,618 69,985 63,792
INCOME TAX EXPENSE 6,333 6,883 6,903 18,477 16,396
NET INCOME $ 18,180 $ 18,070 $ 19,715 $ 51,508 $ 47,396
EARNINGS PER SHARE - BASIC $ 0.58 $ 0.57 $ 0.62 $ 1.63 $ 1.50
EARNINGS PER SHARE - DILUTED $ 0.57 $ 0.57 $ 0.62 $ 1.62 $ 1.49
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING 31,559,366 31,579,457 31,829,250 31,600,442 31,598,650


HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Consolidated Balance Sheets
(dollars in thousands) September 30,
2024
June 30,
2024
September 30,
2023
ASSETS
Cash and due from banks $ 26,776 $ 22,604 $ 24,757
Interest-bearing deposits with banks 152,895 172,636 87,156
Cash and cash equivalents 179,671 195,240 111,913
Interest-bearing time deposits with banks - 520 500
Debt securities available-for-sale, at fair value 710,303 669,055 753,163
Debt securities held-to-maturity 505,075 512,549 527,144
Equity securities with readily determinable fair value 3,364 3,228 3,106
Equity securities with no readily determinable fair value 2,638 2,613 2,300
Restricted stock, at cost 5,086 5,086 11,165
Loans held for sale 2,959 858 3,563
Loans, before allowance for credit losses 3,369,830 3,385,483 3,342,786
Allowance for credit losses (40,966 ) (40,806 ) (38,863 )
Loans, net of allowance for credit losses 3,328,864 3,344,677 3,303,923
Bank owned life insurance 24,405 24,235 23,747
Bank premises and equipment, net 65,919 65,711 64,713
Bank premises held for sale 317 317 35
Foreclosed assets 376 320 1,519
Goodwill 59,820 59,820 59,820
Intangible assets, net 18,552 19,262 21,402
Mortgage servicing rights, at fair value 17,496 18,984 20,156
Investments in unconsolidated subsidiaries 1,614 1,614 1,614
Accrued interest receivable 24,160 22,425 23,447
Other assets 40,109 59,685 58,538
Total assets $ 4,990,728 $ 5,006,199 $ 4,991,768
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing $ 1,008,359 $ 1,045,697 $ 1,086,877
Interest-bearing 3,272,341 3,272,996 3,111,191
Total deposits 4,280,700 4,318,693 4,198,068
Securities sold under agreements to repurchase 29,029 29,330 28,900
Federal Home Loan Bank advances 13,435 13,734 177,650
Subordinated notes 39,533 39,514 39,454
Junior subordinated debentures issued to capital trusts 52,834 52,819 52,774
Other liabilities 37,535 42,640 38,671
Total liabilities 4,453,066 4,496,730 4,535,517
Stockholders' Equity
Common stock 328 328 327
Surplus 296,810 296,430 295,483
Retained earnings 302,532 290,386 256,050
Accumulated other comprehensive income (loss) (38,989 ) (54,656 ) (78,432 )
Treasury stock at cost (23,019 ) (23,019 ) (17,177 )
Total stockholders' equity 537,662 509,469 456,251
Total liabilities and stockholders' equity $ 4,990,728 $ 5,006,199 $ 4,991,768
SHARES OF COMMON STOCK OUTSTANDING 31,559,366 31,559,366 31,774,140


HBT Financial, Inc.
Unaudited Consolidated Financial Summary
(dollars in thousands) September 30,
2024
June 30,
2024
September 30,
2023
LOANS
Commercial and industrial $ 395,598 $ 400,276 $ 386,933
Commercial real estate - owner occupied 288,838 289,992 297,242
Commercial real estate - non-owner occupied 889,188 889,193 901,929
Construction and land development 359,151 365,371 371,158
Multi-family 432,712 429,951 388,742
One-to-four family residential 472,040 484,335 488,655
Agricultural and farmland 297,102 285,822 275,239
Municipal, consumer, and other 235,201 240,543 232,888
Total loans $ 3,369,830 $ 3,385,483 $ 3,342,786


(dollars in thousands) September 30,
2024
June 30,
2024
September 30,
2023
DEPOSITS
Noninterest-bearing deposits $ 1,008,359 $ 1,045,697 $ 1,086,877
Interest-bearing deposits:
Interest-bearing demand 1,076,445 1,094,797 1,134,721
Money market 795,150 769,386 673,780
Savings 566,783 582,752 623,083
Time 803,964 796,069 564,634
Brokered 29,999 29,992 114,973
Total interest-bearing deposits 3,272,341 3,272,996 3,111,191
Total deposits $ 4,280,700 $ 4,318,693 $ 4,198,068


HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Three Months Ended
September 30, 2024 June 30, 2024 September 30, 2023
(dollars in thousands) Average Balance Interest Yield/Cost * Average Balance Interest Yield/Cost * Average Balance Interest Yield/Cost *
ASSETS
Loans $ 3,379,299 $ 54,783 6.45 % $ 3,374,058 $ 53,274 6.35 % $ 3,296,703 $ 50,712 6.10 %
Debt Securities 1,191,642 6,955 2.32 1,187,795 6,836 2.31 1,317,603 7,380 2.22
Deposits with banks 185,870 2,230 4.77 211,117 2,570 4.90 77,595 714 3.65
Other 12,660 149 4.68 12,588 144 4.60 16,430 235 5.68
Total interest-earning assets 4,769,471 $ 64,117 5.35 % 4,785,558 $ 62,824 5.28 % 4,708,331 $ 59,041 4.97 %
Allowance for credit losses (40,780 ) (40,814 ) (38,317 )
Noninterest-earning assets 278,030 283,103 294,818
Total assets $ 5,006,721 $ 5,027,847 $ 4,964,832
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand $ 1,085,609 $ 1,408 0.52 % $ 1,123,592 $ 1,429 0.51 % $ 1,160,654 $ 761 0.26 %
Money market 800,651 4,726 2.35 788,744 4,670 2.38 682,772 2,026 1.18
Savings 573,077 396 0.27 592,312 393 0.27 639,384 249 0.15
Time 804,379 7,702 3.81 763,507 7,117 3.75 519,683 3,275 2.50
Brokered 29,996 417 5.54 38,213 524 5.51 66,776 900 5.34
Total interest-bearing deposits 3,293,712 14,649 1.77 3,306,368 14,133 1.72 3,069,269 7,211 0.93
Securities sold under agreements to repurchase 29,426 134 1.80 30,440 129 1.70 33,807 35 0.41
Borrowings 13,691 119 3.47 13,466 121 3.60 157,908 2,108 5.30
Subordinated notes 39,524 470 4.73 39,504 469 4.78 39,444 470 4.72
Junior subordinated debentures issued to capital trusts 52,827 1,012 7.63 52,812 944 7.18 52,767 938 7.05
Total interest-bearing liabilities 3,429,180 $ 16,384 1.90 % 3,442,590 $ 15,796 1.85 % 3,353,195 $ 10,762 1.27 %
Noninterest-bearing deposits 1,013,893 1,043,614 1,105,472
Noninterest-bearing liabilities 39,903 39,806 46,564
Total liabilities 4,482,976 4,526,010 4,505,231
Stockholders' Equity 523,745 501,837 459,601
Total liabilities and stockholders' equity $ 5,006,721 $ 5,027,847 $ 4,964,832
Net interest income/Net interest margin (1) $ 47,733 3.98 % $ 47,028 3.95 % $ 48,279 4.07 %
Tax-equivalent adjustment (2) 552 0.05 553 0.05 675 0.06
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$ 48,285 4.03 % $ 47,581 4.00 % $ 48,954 4.13 %
Net interest rate spread (4) 3.45 % 3.43 % 3.70 %
Net interest-earning assets (5) $ 1,340,291 $ 1,342,968 $ 1,355,136
Ratio of interest-earning assets to interest-bearing liabilities 1.39 1.39 1.40
Cost of total deposits 1.35 % 1.31 % 0.69 %
Cost of funds 1.47 1.42 0.96
* 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
Nine Months Ended
September 30, 2024 September 30, 2023
(dollars in thousands) Average Balance Interest Yield/Cost * Average Balance Interest Yield/Cost *
ASSETS
Loans $ 3,374,875 $ 161,077 6.38 % $ 3,183,641 $ 142,012 5.96 %
Debt Securities 1,197,772 20,592 2.30 1,366,298 22,797 2.23
Deposits with banks 188,087 6,752 4.80 84,720 2,234 3.53
Other 12,744 481 5.04 15,334 545 4.75
Total interest-earning assets 4,773,478 $ 188,902 5.29 % 4,649,993 $ 167,588 4.82 %
Allowance for credit losses (40,611 ) (37,053 )
Noninterest-earning assets 279,789 289,843
Total assets $ 5,012,656 $ 4,902,783
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand $ 1,112,198 $ 4,148 0.50 % $ 1,204,937 $ 1,902 0.21 %
Money market 800,693 14,193 2.37 664,036 4,467 0.90
Savings 592,134 1,232 0.28 678,495 616 0.12
Time 744,349 20,744 3.72 441,760 6,011 1.82
Brokered 50,046 2,058 5.49 22,987 912 5.30
Total interest-bearing deposits 3,299,420 42,375 1.72 3,012,215 13,908 0.62
Securities sold under agreements to repurchase 30,769 415 1.80 35,844 107 0.40
Borrowings 13,387 365 3.64 148,443 5,594 5.04
Subordinated notes 39,504 1,409 4.76 39,424 1,409 4.78
Junior subordinated debentures issued to capital trusts 52,812 2,889 7.31 51,054 2,582 6.76
Total interest-bearing liabilities 3,435,892 $ 47,453 1.84 % 3,286,980 $ 23,600 0.96 %
Noninterest-bearing deposits 1,031,239 1,123,917
Noninterest-bearing liabilities 38,943 46,310
Total liabilities 4,506,074 4,457,207
Stockholders' Equity 506,582 445,576
Total liabilities and stockholders' equity $ 5,012,656 4,902,783
Net interest income/Net interest margin (1) $ 141,449 3.96 % $ 143,988 4.14 %
Tax-equivalent adjustment (2) 1,680 0.05 2,092 0.06
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$ 143,129 4.01 % $ 146,080 4.20 %
Net interest rate spread (4) 3.45 % 3.86 %
Net interest-earning assets (5) $ 1,337,586 $ 1,363,013
Ratio of interest-earning assets to interest-bearing liabilities 1.39 1.41
Cost of total deposits 1.31 % 0.45 %
Cost of funds 1.42 0.72
* 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) September 30,
2024
June 30,
2024
September 30,
2023
NONPERFORMING ASSETS
Nonaccrual $ 8,200 $ 8,425 $ 6,678
Past due 90 days or more, still accruing 5 7 -
Total nonperforming loans 8,205 8,432 6,678
Foreclosed assets 376 320 1,519
Total nonperforming assets $ 8,581 $ 8,752 $ 8,197
Nonperforming loans that are wholly or partially guaranteed by the U.S. Government $ 2,046 $ 2,132 $ 1,968
Allowance for credit losses $ 40,966 $ 40,806 $ 38,863
Loans, before allowance for credit losses 3,369,830 3,385,483 3,342,786
CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses 1.22 % 1.21 % 1.16 %
Allowance for credit losses to nonaccrual loans 499.59 484.34 581.96
Allowance for credit losses to nonperforming loans 499.28 483.94 581.96
Nonaccrual loans to loans, before allowance for credit losses 0.24 0.25 0.20
Nonperforming loans to loans, before allowance for credit losses 0.24 0.25 0.20
Nonperforming assets to total assets 0.17 0.17 0.16
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets 0.25 0.26 0.25


HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Three Months Ended Nine Months Ended
September 30,
(dollars in thousands) September 30,
2024
June 30,
2024
September 30,
2023
2024 2023
ALLOWANCE FOR CREDIT LOSSES
Beginning balance $ 40,806 $ 40,815 $ 37,814 $ 40,048 $ 25,333
Adoption of ASC 326 - - - - 6,983
PCD allowance established in acquisition - - - - 1,247
Provision for credit losses 746 677 983 1,983 5,004
Charge-offs (1,101 ) (870 ) (412 ) (2,198 ) (733 )
Recoveries 515 184 478 1,133 1,029
Ending balance $ 40,966 $ 40,806 $ 38,863 $ 40,966 $ 38,863
Net charge-offs (recoveries) $ 586 $ 686 $ (66 ) $ 1,065 $ (296 )
Average loans 3,379,299 3,374,058 3,296,703 3,374,875 3,183,641
Net charge-offs (recoveries) to average loans * 0.07 % 0.08 % (0.01) % 0.04 % (0.01) %
* Annualized measure.


Three Months Ended Nine Months Ended
September 30,
(dollars in thousands) September 30,
2024
June 30,
2024
September 30,
2023
2024 2023
PROVISION FOR CREDIT LOSSES
Loans (1) $ 746 $ 677 $ 983 $ 1,983 $ 5,004
Unfunded lending-related commitments (1) (143 ) 499 297 323 1,456
Debt securities - - (800 ) - -
Total provision for credit losses $ 603 $ 1,176 $ 480 $ 2,306 $ 6,460
(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 Nine Months Ended
September 30,
(dollars in thousands) September 30,
2024
June 30,
2024
September 30,
2023
2024 2023
Net income $ 18,180 $ 18,070 $ 19,715 $ 51,508 $ 47,396
Adjustments:
Acquisition expenses (1) - - - - (13,691 )
Gains (losses) on closed branch premises - - - (635 ) 75
Realized gains (losses) on sales of securities - - (813 ) (3,382 ) (1,820 )
Mortgage servicing rights fair value adjustment (1,488 ) (97 ) 23 (1,505 ) (460 )
Total adjustments (1,488 ) (97 ) (790 ) (5,522 ) (15,896 )
Tax effect of adjustments (2) 424 28 226 1,574 4,382
Total adjustments after tax effect (1,064 ) (69 ) (564 ) (3,948 ) (11,514 )
Adjusted net income $ 19,244 $ 18,139 $ 20,279 $ 55,456 $ 58,910
Average assets $ 5,006,721 $ 5,027,847 $ 4,964,832 $ 5,012,656 $ 4,902,783
Return on average assets * 1.44 % 1.45 % 1.58 % 1.37 % 1.29 %
Adjusted return on average assets * 1.53 1.45 1.62 1.48 1.61
* 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.
(2) Assumes a federal income tax rate of 21% and a state tax rate of 9.5%.


Reconciliation of Non-GAAP Financial Measures –
Adjusted Earnings Per Share - Basic and Diluted
Three Months Ended Nine Months Ended
September 30,
(dollars in thousands, except per share amounts) September 30,
2024
June 30,
2024
September 30,
2023
2024 2023
Numerator:
Net income $ 18,180 $ 18,070 $ 19,715 $ 51,508 $ 47,396
Earnings allocated to participating securities (1) - - (10 ) - (26 )
Numerator for earnings per share - basic and diluted $ 18,180 $ 18,070 $ 19,705 $ 51,508 $ 47,370
Adjusted net income $ 19,244 $ 18,139 $ 20,279 $ 55,456 $ 58,910
Earnings allocated to participating securities (1) - - (10 ) - (33 )
Numerator for adjusted earnings per share - basic and diluted $ 19,244 $ 18,139 $ 20,269 $ 55,456 $ 58,877
Denominator:
Weighted average common shares outstanding 31,559,366 31,579,457 31,829,250 31,600,442 31,598,650
Dilutive effect of outstanding restricted stock units 118,180 87,354 137,187 115,266 102,574
Weighted average common shares outstanding, including all dilutive potential shares 31,677,546 31,666,811 31,966,437 31,715,708 31,701,224
Earnings per share - Basic $ 0.58 $ 0.57 $ 0.62 $ 1.63 $ 1.50
Earnings per share - Diluted $ 0.57 $ 0.57 $ 0.62 $ 1.62 $ 1.49
Adjusted earnings per share - Basic $ 0.61 $ 0.57 $ 0.64 $ 1.75 $ 1.86
Adjusted earnings per share - Diluted $ 0.61 $ 0.57 $ 0.63 $ 1.75 $ 1.86
(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 Nine Months Ended
September 30,
(dollars in thousands) September 30,
2024
June 30,
2024
September 30,
2023
2024 2023
Net interest income (tax-equivalent basis)
Net interest income $ 47,733 $ 47,028 $ 48,279 $ 141,449 $ 143,988
Tax-equivalent adjustment (1) 552 553 675 1,680 2,092
Net interest income (tax-equivalent basis) (1) $ 48,285 $ 47,581 $ 48,954 $ 143,129 $ 146,080
Net interest margin (tax-equivalent basis)
Net interest margin * 3.98 % 3.95 % 4.07 % 3.96 % 4.14 %
Tax-equivalent adjustment * (1) 0.05 0.05 0.06 0.05 0.06
Net interest margin (tax-equivalent basis) * (1) 4.03 % 4.00 % 4.13 % 4.01 % 4.20 %
Average interest-earning assets $ 4,769,471 $ 4,785,558 $ 4,708,331 $ 4,773,478 $ 4,649,993
* 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 Nine Months Ended
September 30,
(dollars in thousands) September 30,
2024
June 30,
2024
September 30,
2023
2024 2023
Efficiency ratio (tax-equivalent basis)
Total noninterest expense $ 31,322 $ 30,509 $ 30,671 $ 93,099 $ 100,577
Less: amortization of intangible assets 710 710 720 2,130 1,950
Noninterest expense excluding amortization of intangible assets $ 30,612 $ 29,799 $ 29,951 $ 90,969 $ 98,627
Net interest income $ 47,733 $ 47,028 $ 48,279 $ 141,449 $ 143,988
Total noninterest income 8,705 9,610 9,490 23,941 26,841
Operating revenue 56,438 56,638 57,769 165,390 170,829
Tax-equivalent adjustment (1) 552 553 675 1,680 2,092
Operating revenue (tax-equivalent basis) (1) $ 56,990 $ 57,191 $ 58,444 $ 167,070 $ 172,921
Efficiency ratio 54.24 % 52.61 % 51.85 % 55.00 % 57.73 %
Efficiency ratio (tax-equivalent basis) (1) 53.71 52.10 51.25 54.45 57.04
(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) September 30,
2024
June 30,
2024
September 30,
2023
Tangible Common Equity
Total stockholders' equity $ 537,662 $ 509,469 $ 456,251
Less: Goodwill 59,820 59,820 59,820
Less: Intangible assets, net 18,552 19,262 21,402
Tangible common equity $ 459,290 $ 430,387 $ 375,029
Tangible Assets
Total assets $ 4,990,728 $ 5,006,199 $ 4,991,768
Less: Goodwill 59,820 59,820 59,820
Less: Intangible assets, net 18,552 19,262 21,402
Tangible assets $ 4,912,356 $ 4,927,117 $ 4,910,546
Total stockholders' equity to total assets 10.77 % 10.18 % 9.14 %
Tangible common equity to tangible assets 9.35 8.74 7.64
Shares of common stock outstanding 31,559,366 31,559,366 31,774,140
Book value per share $ 17.04 $ 16.14 $ 14.36
Tangible book value per share 14.55 13.64 11.80


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 Nine Months Ended
September 30,
(dollars in thousands) September 30,
2024
June 30,
2024
September 30,
2023
2024 2023
Average Tangible Common Equity
Total stockholders' equity $ 523,745 $ 501,837 $ 459,601 $ 506,582 $ 445,576
Less: Goodwill 59,820 59,820 59,875 59,820 56,406
Less: Intangible assets, net 18,892 19,605 21,793 19,607 20,005
Average tangible common equity $ 445,033 $ 422,412 $ 377,933 $ 427,155 $ 369,165
Net income $ 18,180 $ 18,070 $ 19,715 $ 51,508 $ 47,396
Adjusted net income 19,244 18,139 20,279 55,456 58,910
Return on average stockholders' equity * 13.81 % 14.48 % 17.02 % 13.58 % 14.22 %
Return on average tangible common equity * 16.25 17.21 20.70 16.11 17.17
Adjusted return on average stockholders' equity * 14.62 % 14.54 % 17.51 % 14.62 % 17.68 %
Adjusted return on average tangible common equity * 17.20 17.27 21.29 17.34 21.34
* Annualized measure.

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