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HBT Financial, Inc. Announces Second Quarter 2024 Financial Results

HBT

Second Quarter Highlights

  • Net income of $18.1 million, or $0.57 per diluted share; return on average assets (“ROAA”) of 1.45%; return on average stockholders' equity (“ROAE”) of 14.48%; and return on average tangible common equity (“ROATCE”)(1) of 17.21%
  • Adjusted net income(1) of $18.1 million; or $0.57 per diluted share; adjusted ROAA(1) of 1.45%; adjusted ROAE(1) of 14.54%; and adjusted ROATCE(1) of 17.27%
  • Asset quality remained strong with nonperforming assets to total assets of 0.17%, close to a historic low
  • Net interest margin and net interest margin (tax-equivalent basis)(1) increased slightly to 3.95% and 4.00%, respectively

BLOOMINGTON, Ill., July 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 $18.1 million, or $0.57 diluted earnings per share, for the second quarter of 2024. This compares to net income of $15.3 million, or $0.48 diluted earnings per share, for the first quarter of 2024, and net income of $18.5 million, or $0.58 diluted earnings per share, for the second quarter of 2023.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “On behalf of HBT Financial, I would like to first express my condolences to the George Drake family. George passed away on May 13th at the age of 97. He started his banking career just after World War II at the State Bank of Cornland, which had been founded by his father M.B. Drake, and he spent over 70 years in banking before retiring from our Board of Directors in 2019. He formed Heartland Bancorp, Inc. (now HBT Financial) in 1982 as one of the first multi-bank holding companies in Illinois. I had the pleasure of knowing George for 22 years and his kindness and wisdom impacted me. His leadership and vision established the foundation for our success today.

As for the second quarter, we delivered another set of very strong performance metrics with net income of $18.1 million, a ROAA of 1.45% and ROATCE(1) of 17.21%. In addition, our tangible book value per share of $13.64 has grown 17.8% over the past year. During the quarter, we saw solid loan growth of $39.5 million, or 4.7% on an annualized basis, as well as stability in our core deposit base. We have seen the continued repricing of our loan portfolio and tight management of deposit costs positively impact our net interest margin (tax-equivalent basis)(1) which expanded 1 basis point to 4.00% for the quarter.

While we continue to invest in our business, our costs were well controlled during the quarter as demonstrated by our efficiency ratio (tax-equivalent basis)(1) of 52.1%. Our loan portfolio is performing well with no apparent signs of concentrated stress in sub portfolios, such as office and retail commercial real estate, while nonperforming assets represented only 0.17% of total assets and net charge-offs were only 0.08% of average loans on an annualized basis for the quarter.”
____________________________________
(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 second quarter of 2024. This compares to adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the first quarter of 2024, and adjusted net income of $18.8 million, or $0.58 adjusted diluted earnings per share, for the second 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 second quarter of 2024 was $47.0 million, a slight increase of 0.7% from $46.7 million for the first quarter of 2024. The slight increase was primarily attributable to improved asset yields and growth in interest-earning assets which were mostly offset by an increase in funding costs.

Relative to the second quarter of 2023, net interest income decreased 3.8% from $48.9 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 second quarter of 2024 was 3.95%, compared to 3.94% for the first quarter of 2024, and net interest margin (tax-equivalent basis)(1) for the second quarter of 2024 was 4.00%, compared to 3.99% for the first quarter of 2024. Higher yields on interest-earning assets, which increased by 5 basis points to 5.28%, were mostly offset by an increase in funding costs, with the cost of funds increasing by 5 basis points to 1.42%.

Relative to the second quarter of 2023, net interest margin decreased 21 basis points from 4.16% and net interest margin (tax-equivalent basis)(1) decreased 22 basis points from 4.22%. 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 second quarter of 2024 was $9.6 million, an increase from $5.6 million for the first quarter of 2024. The increase was primarily attributable to the absence of $3.4 million of losses on sales of securities and $0.6 million of impairment losses related to the closure of two branches recognized during the first quarter of 2024. Additionally, seasonal changes in card income, which increased by $0.3 million, were mostly offset by a $0.2 million decrease in other noninterest income.

Relative to the second quarter of 2023, noninterest income decreased 3.1% from $9.9 million. The decrease was primarily attributable to a $0.2 million change in the mortgage servicing rights fair value adjustment and a $0.2 million decrease in other noninterest income. Partially offsetting these decreases was a $0.3 million increase in wealth management fees, driven by higher values of assets under management during the second quarter of 2024 relative to the second quarter of 2023.

Noninterest Expense

Noninterest expense for the second quarter of 2024 was $30.5 million, a 2.4% decrease from $31.3 million for the first quarter of 2024. The decrease was primarily attributable to a $0.3 million decrease in salaries expense, which included higher vacation accruals and payroll taxes in the first quarter of 2024, a $0.3 million decrease in occupancy expense, and a $0.3 million decrease in data processing expense.

Relative to the second quarter of 2023, noninterest expense decreased 10.2% from $34.0 million. The decrease was primarily attributable to the absence of $0.8 million of legal fees and $0.8 million of accruals related to legal matters previously disclosed as well as the absence of $0.6 million of Town and Country Financial Corporation (“Town and Country”) acquisition-related expenses incurred during the second quarter of 2023. Additionally, the realization of planned cost reductions following the Town and Country core system conversion completed in April 2023 further contributed to the decrease in noninterest expense.

Acquisition-related expenses recognized during the three and six months ended June 30, 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
June 30, 2023
Six Months Ended
June 30, 2023
PROVISION FOR CREDIT LOSSES $ $ 5,924
NONINTEREST EXPENSE
Salaries 66 3,584
Furniture and equipment 39 39
Data processing 176 2,031
Marketing and customer relations 10 24
Loan collection and servicing 125 125
Legal fees and other noninterest expense 211 1,964
Total noninterest expense 627 7,767
Total acquisition-related expenses $ 627 $ 13,691

Income Taxes

During the second quarter of 2024, we recognized an additional $0.5 million of tax expense for a deferred tax asset write-down, primarily as a result of an Illinois tax change. This increased our effective tax rate to 27.6% during the second quarter of 2024 from 25.6% during the first quarter of 2024. We expect this write-down to be earned back over several years through reduced state tax expense.

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.39 billion at June 30, 2024, compared with $3.35 billion at March 31, 2024, and $3.24 billion at June 30, 2023. The $39.5 million increase from March 31, 2024 was primarily attributable to draws on existing construction projects and new construction loans to existing customers. In addition, growth in our municipal, consumer and other portfolio was primarily due to draws on an existing loan to a recurring borrower. The $8.4 million increase in multi-family loans was driven predominately by the completion of projects previously in the construction and land development category.

Deposits

Total deposits were $4.32 billion at June 30, 2024, compared with $4.36 billion at March 31, 2024, and $4.16 billion at June 30, 2023. The $41.9 million decrease from March 31, 2024 was primarily attributable to a $25.8 million decrease in brokered deposits and a $16.1 million decrease in higher cost reciprocal wealth management customer deposits included with money market deposits. Partially offsetting these decreases was a $31.1 million increase in time deposits from a State of Illinois loan matching program, a lower cost source of funding, which totaled $65.0 million as of June 30, 2024.

Asset Quality

Nonperforming loans totaled $8.4 million, or 0.25% of total loans, at June 30, 2024, compared with $9.7 million, or 0.29% of total loans, at March 31, 2024, and $7.5 million, or 0.23% of total loans, at June 30, 2023. Additionally, of the $8.4 million of nonperforming loans held as of June 30, 2024, $2.1 million is either wholly or partially guaranteed by the U.S. government. The $1.2 million decrease in nonperforming loans from March 31, 2024 was primarily attributable to a $0.4 million reduction in nonaccrual one-to-four family residential loans as well as charge-offs.

The Company recorded a provision for credit losses of $1.2 million for the second quarter of 2024. The provision for credit losses primarily reflects a $0.9 million increase in required reserves resulting from changes in economic forecasts and a $0.9 million increase in required reserves driven by increased loan balances and changes within the loan portfolio which were mostly offset by a $0.7 million decrease in specific reserves.

The Company had net charge-offs of $0.7 million, or 0.08% of average loans on an annualized basis, for the second quarter of 2024, compared to net recoveries of $0.2 million, or 0.02% of average loans on an annualized basis, for the first quarter of 2024, and net recoveries of $0.1 million, or 0.01% of average loans on an annualized basis, for the second quarter of 2023. During the second quarter of 2024, net charge-offs were primarily recognized in the commercial and industrial category, which had $0.5 million of net charge-offs, and the multi-family category, which had $0.2 million of net charge-offs.

The Company’s allowance for credit losses was 1.21% of total loans and 484% of nonperforming loans at June 30, 2024, compared with 1.22% of total loans and 423% of nonperforming loans at March 31, 2024. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $4.3 million as of June 30, 2024, compared with $3.8 million as of March 31, 2024.

Capital

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

June 30, 2024 For Capital
Adequacy Purposes
With Capital
Conversation Buffer
Total capital to risk-weighted assets 16.01 % 10.50 %
Tier 1 capital to risk-weighted assets 13.98 8.50
Common equity tier 1 capital ratio 12.66 7.00
Tier 1 leverage ratio 10.83 4.00

The ratio of tangible common equity to tangible assets(1) increased to 8.74% as of June 30, 2024, from 8.40% as of March 31, 2024, and tangible book value per share(1) increased by $0.45 to $13.64 as of June 30, 2024, when compared to March 31, 2024.

During the second quarter of 2024, the Company repurchased 53,522 shares of its common stock at a weighted average price of $18.74 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 June 30, 2024, the Company had $10.6 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 June 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 (including the effects of sustained, elevated interest rates); (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
HBTIR@hbtbank.com
(309) 664-4556


HBT Financial, Inc.
Unaudited Consolidated Financial Summary

As of or for the Three Months Ended Six Months Ended June 30,
(dollars in thousands, except per share data) June 30,
2024
March 31,
2024
June 30,
2023
2024 2023
Interest and dividend income $ 62,824 $ 61,961 $ 56,768 $ 124,785 $ 108,547
Interest expense 15,796 15,273 7,896 31,069 12,838
Net interest income 47,028 46,688 48,872 93,716 95,709
Provision for credit losses 1,176 527 (230 ) 1,703 5,980
Net interest income after provision for credit losses 45,852 46,161 49,102 92,013 89,729
Noninterest income 9,610 5,626 9,914 15,236 17,351
Noninterest expense 30,509 31,268 33,973 61,777 69,906
Income before income tax expense 24,953 20,519 25,043 45,472 37,174
Income tax expense 6,883 5,261 6,570 12,144 9,493
Net income $ 18,070 $ 15,258 $ 18,473 $ 33,328 $ 27,681
Earnings per share - Diluted $ 0.57 $ 0.48 $ 0.58 $ 1.05 $ 0.88
Adjusted net income (1) $ 18,139 $ 18,073 $ 18,772 $ 36,212 $ 38,631
Adjusted earnings per share - Diluted (1) 0.57 0.57 0.58 1.14 1.22
Book value per share $ 16.14 $ 15.71 $ 14.15
Tangible book value per share (1) 13.64 13.19 11.58
Shares of common stock outstanding 31,559,366 31,612,888 31,865,868
Weighted average shares of common stock outstanding 31,579,457 31,662,954 31,980,133 31,621,205 31,481,439
SUMMARY RATIOS
Net interest margin * 3.95 % 3.94 % 4.16 % 3.95 % 4.18 %
Net interest margin (tax-equivalent basis) * (1)(2) 4.00 3.99 4.22 3.99 4.24
Efficiency ratio 52.61 % 58.41 % 56.57 % 55.40 % 60.74 %
Efficiency ratio (tax-equivalent basis) (1)(2) 52.10 57.78 55.89 54.83 59.99
Loan to deposit ratio 78.39 % 76.73 % 77.91 %
Return on average assets * 1.45 % 1.23 % 1.49 % 1.34 % 1.15 %
Return on average stockholders' equity * 14.48 12.42 16.30 13.46 12.73
Return on average tangible common equity * (1) 17.21 14.83 19.91 16.03 15.31
Adjusted return on average assets * (1) 1.45 % 1.45 % 1.51 % 1.45 % 1.60 %
Adjusted return on average stockholders' equity * (1) 14.54 14.72 16.57 14.63 17.77
Adjusted return on average tangible common equity * (1) 17.27 17.57 20.23 17.42 21.36
CAPITAL
Total capital to risk-weighted assets 16.01 % 15.79 % 15.03 %
Tier 1 capital to risk-weighted assets 13.98 13.77 13.12
Common equity tier 1 capital ratio 12.66 12.44 11.78
Tier 1 leverage ratio 10.83 10.65 10.07
Total stockholders' equity to total assets 10.18 9.85 9.06
Tangible common equity to tangible assets (1) 8.74 8.40 7.54
ASSET QUALITY
Net charge-offs (recoveries) to average loans 0.08 % (0.02) % (0.01) % 0.03 % (0.01) %
Allowance for credit losses to loans, before allowance for credit losses 1.21 1.22 1.17
Nonperforming loans to loans, before allowance for credit losses 0.25 0.29 0.23
Nonperforming assets to total assets 0.17 0.20 0.21

____________________________________

  • 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 Six Months Ended June 30,
(dollars in thousands, except per share data) June 30,
2024
March 31,
2024
June 30,
2023
2024 2023
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable $ 52,177 $ 51,926 $ 47,149 $ 104,103 $ 89,308
Federally tax exempt 1,097 1,094 1,040 2,191 1,992
Securities:
Taxable 6,386 6,250 6,518 12,636 13,134
Federally tax exempt 521 597 1,162 1,118 2,359
Interest-bearing deposits in bank 2,570 1,952 781 4,522 1,520
Other interest and dividend income 73 142 118 215 234
Total interest and dividend income 62,824 61,961 56,768 124,785 108,547
INTEREST EXPENSE
Deposits 14,133 13,593 4,323 27,726 6,697
Securities sold under agreements to repurchase 129 152 34 281 72
Borrowings 121 125 2,189 246 3,486
Subordinated notes 469 470 469 939 939
Junior subordinated debentures issued to capital trusts 944 933 881 1,877 1,644
Total interest expense 15,796 15,273 7,896 31,069 12,838
Net interest income 47,028 46,688 48,872 93,716 95,709
PROVISION FOR CREDIT LOSSES 1,176 527 (230 ) 1,703 5,980
Net interest income after provision for credit losses 45,852 46,161 49,102 92,013 89,729
NONINTEREST INCOME
Card income 2,885 2,616 2,905 5,501 5,563
Wealth management fees 2,623 2,547 2,279 5,170 4,617
Service charges on deposit accounts 1,902 1,869 1,919 3,771 3,790
Mortgage servicing 1,111 1,055 1,254 2,166 2,353
Mortgage servicing rights fair value adjustment (97 ) 80 141 (17 ) (483 )
Gains on sale of mortgage loans 443 298 373 741 649
Realized gains (losses) on sales of securities (3,382 ) (3,382 ) (1,007 )
Unrealized gains (losses) on equity securities (96 ) (16 ) 7 (112 ) (15 )
Gains (losses) on foreclosed assets (28 ) 87 (97 ) 59 (107 )
Gains (losses) on other assets (635 ) 109 (635 ) 109
Income on bank owned life insurance 166 164 147 330 262
Other noninterest income 701 943 877 1,644 1,620
Total noninterest income 9,610 5,626 9,914 15,236 17,351
NONINTEREST EXPENSE
Salaries 16,364 16,657 16,660 33,021 36,071
Employee benefits 2,860 2,805 2,707 5,665 5,042
Occupancy of bank premises 2,243 2,582 2,785 4,825 4,887
Furniture and equipment 548 550 809 1,098 1,468
Data processing 2,606 2,925 2,883 5,531 7,206
Marketing and customer relations 996 996 1,359 1,992 2,195
Amortization of intangible assets 710 710 720 1,420 1,230
FDIC insurance 565 560 630 1,125 1,193
Loan collection and servicing 475 452 348 927 626
Foreclosed assets 10 49 97 59 158
Other noninterest expense 3,132 2,982 4,975 6,114 9,830
Total noninterest expense 30,509 31,268 33,973 61,777 69,906
INCOME BEFORE INCOME TAX EXPENSE 24,953 20,519 25,043 45,472 37,174
INCOME TAX EXPENSE 6,883 5,261 6,570 12,144 9,493
NET INCOME $ 18,070 $ 15,258 $ 18,473 $ 33,328 $ 27,681
EARNINGS PER SHARE - BASIC $ 0.57 $ 0.48 $ 0.58 $ 1.05 $ 0.88
EARNINGS PER SHARE - DILUTED $ 0.57 $ 0.48 $ 0.58 $ 1.05 $ 0.88
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING 31,579,457 31,662,954 31,980,133 31,621,205 31,481,439


HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Consolidated Balance Sheets

(dollars in thousands) June 30,
2024
March 31,
2024
June 30,
2023
ASSETS
Cash and due from banks $ 22,604 $ 19,989 $ 28,044
Interest-bearing deposits with banks 172,636 240,223 81,764
Cash and cash equivalents 195,240 260,212 109,808
Interest-bearing time deposits with banks 520 515
Debt securities available-for-sale, at fair value 669,055 669,020 822,788
Debt securities held-to-maturity 512,549 517,472 533,231
Equity securities with readily determinable fair value 3,228 3,324 3,152
Equity securities with no readily determinable fair value 2,613 2,622 2,275
Restricted stock, at cost 5,086 5,155 11,345
Loans held for sale 858 3,479 8,829
Loans, before allowance for credit losses 3,385,483 3,345,962 3,244,655
Allowance for credit losses (40,806 ) (40,815 ) (37,814 )
Loans, net of allowance for credit losses 3,344,677 3,305,147 3,206,841
Bank owned life insurance 24,235 24,069 23,594
Bank premises and equipment, net 65,711 64,755 65,029
Bank premises held for sale 317 317 35
Foreclosed assets 320 277 3,080
Goodwill 59,820 59,820 59,876
Intangible assets, net 19,262 19,972 22,122
Mortgage servicing rights, at fair value 18,984 19,081 20,133
Investments in unconsolidated subsidiaries 1,614 1,614 1,614
Accrued interest receivable 22,425 23,117 19,900
Other assets 59,685 60,542 62,158
Total assets $ 5,006,199 $ 5,040,510 $ 4,975,810
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing $ 1,045,697 $ 1,047,074 $ 1,125,823
Interest-bearing 3,272,996 3,313,500 3,038,700
Total deposits 4,318,693 4,360,574 4,164,523
Securities sold under agreements to repurchase 29,330 31,864 38,729
Federal Home Loan Bank advances 13,734 12,725 177,572
Subordinated notes 39,514 39,494 39,435
Junior subordinated debentures issued to capital trusts 52,819 52,804 52,760
Other liabilities 42,640 46,368 51,939
Total liabilities 4,496,730 4,543,829 4,524,958
Stockholders' Equity
Common stock 328 328 327
Surplus 296,430 296,054 294,875
Retained earnings 290,386 278,353 241,777
Accumulated other comprehensive income (loss) (54,656 ) (56,048 ) (70,662 )
Treasury stock at cost (23,019 ) (22,006 ) (15,465 )
Total stockholders’ equity 509,469 496,681 450,852
Total liabilities and stockholders’ equity $ 5,006,199 $ 5,040,510 $ 4,975,810
SHARES OF COMMON STOCK OUTSTANDING 31,559,366 31,612,888 31,865,868


HBT Financial, Inc.
Unaudited Consolidated Financial Summary
(dollars in thousands) June 30,
2024
March 31,
2024
June 30,
2023
LOANS
Commercial and industrial $ 400,276 $ 402,206 $ 385,768
Commercial real estate - owner occupied 289,992 294,967 303,522
Commercial real estate - non-owner occupied 889,193 890,251 882,598
Construction and land development 365,371 345,991 335,262
Multi-family 429,951 421,573 375,536
One-to-four family residential 484,335 485,948 482,442
Agricultural and farmland 285,822 287,205 259,858
Municipal, consumer, and other 240,543 217,821 219,669
Total loans $ 3,385,483 $ 3,345,962 $ 3,244,655


(dollars in thousands) June 30,
2024
March 31,
2024
June 30,
2023
DEPOSITS
Noninterest-bearing deposits $ 1,045,697 $ 1,047,074 $ 1,125,823
Interest-bearing deposits:
Interest-bearing demand 1,094,797 1,139,172 1,181,187
Money market 769,386 802,685 680,642
Savings 582,752 602,739 657,506
Time 796,069 713,142 468,355
Brokered 29,992 55,762 51,010
Total interest-bearing deposits 3,272,996 3,313,500 3,038,700
Total deposits $ 4,318,693 $ 4,360,574 $ 4,164,523


HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Three Months Ended
June 30, 2024 March 31, 2024 June 30, 2023
(dollars in thousands) Average Balance Interest Yield/Cost * Average Balance Interest Yield/Cost * Average Balance Interest Yield/Cost *
ASSETS
Loans $ 3,374,058 $ 53,274 6.35 % $ 3,371,219 $ 53,020 6.33 % $ 3,238,774 $ 48,189 5.97 %
Securities 1,195,287 6,907 2.32 1,221,447 6,847 2.25 1,384,180 7,680 2.23
Deposits with banks 211,117 2,570 4.90 167,297 1,952 4.69 84,366 781 3.71
Other 5,096 73 5.80 5,486 142 10.40 8,577 118 5.52
Total interest-earning assets 4,785,558 $ 62,824 5.28 % 4,765,449 $ 61,961 5.23 % 4,715,897 $ 56,768 4.83 %
Allowance for credit losses (40,814 ) (40,238 ) (39,484 )
Noninterest-earning assets 283,103 278,253 299,622
Total assets $ 5,027,847 $ 5,003,464 $ 4,976,035
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand $ 1,123,592 $ 1,429 0.51 % $ 1,127,684 $ 1,311 0.47 % $ 1,224,285 $ 683 0.22 %
Money market 788,744 4,670 2.38 812,684 4,797 2.37 674,200 1,506 0.90
Savings 592,312 393 0.27 611,224 443 0.29 687,014 189 0.11
Time 763,507 7,117 3.75 664,498 5,925 3.59 447,025 1,933 1.73
Brokered 38,213 524 5.51 82,150 1,117 5.47 1,451 12 3.44
Total interest-bearing deposits 3,306,368 14,133 1.72 3,298,240 13,593 1.66 3,033,975 4,323 0.57
Securities sold under agreements to repurchase 30,440 129 1.70 32,456 152 1.89 34,170 34 0.40
Borrowings 13,466 121 3.60 13,003 125 3.87 173,040 2,189 5.07
Subordinated notes 39,504 469 4.78 39,484 470 4.78 39,424 469 4.78
Junior subordinated debentures issued to capital trusts 52,812 944 7.18 52,796 933 7.11 52,752 881 6.70
Total interest-bearing liabilities 3,442,590 $ 15,796 1.85 % 3,435,979 $ 15,273 1.79 % 3,333,361 $ 7,896 0.95 %
Noninterest-bearing deposits 1,043,614 1,036,402 1,145,089
Noninterest-bearing liabilities 39,806 37,107 43,080
Total liabilities 4,526,010 4,509,488 4,521,530
Stockholders' Equity 501,837 493,976 454,505
Total liabilities and stockholders’ equity $ 5,027,847 $ 5,003,464 $ 4,976,035
Net interest income/Net interest margin (1) $ 47,028 3.95 % $ 46,688 3.94 % $ 48,872 4.16 %
Tax-equivalent adjustment (2) 553 0.05 575 0.05 715 0.06
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$ 47,581 4.00 % $ 47,263 3.99 % $ 49,587 4.22 %
Net interest rate spread (4) 3.43 % 3.44 % 3.88 %
Net interest-earning assets (5) $ 1,342,968 $ 1,329,470 $ 1,382,536
Ratio of interest-earning assets to interest-bearing liabilities 1.39 1.39 1.41
Cost of total deposits 1.31 % 1.26 % 0.41 %
Cost of funds 1.42 1.37 0.71

____________________________________

  • 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
Six Months Ended
June 30, 2024 June 30, 2023
(dollars in thousands) Average Balance Interest Yield/Cost * Average Balance Interest Yield/Cost *
ASSETS
Loans $ 3,372,640 $ 106,294 6.34 % $ 3,126,173 $ 91,300 5.89 %
Securities 1,208,367 13,754 2.29 1,397,821 15,493 2.24
Deposits with banks 189,207 4,522 4.81 88,343 1,520 3.47
Other 5,291 215 8.18 8,004 234 5.89
Total interest-earning assets 4,775,505 $ 124,785 5.25 % 4,620,341 $ 108,547 4.74 %
Allowance for credit losses (40,526 ) (36,410 )
Noninterest-earning assets 280,676 287,314
Total assets $ 5,015,655 $ 4,871,245
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand $ 1,125,638 $ 2,740 0.49 % $ 1,227,447 $ 1,141 0.19 %
Money market 800,714 9,467 2.38 654,514 2,441 0.75
Savings 601,768 836 0.28 698,375 367 0.11
Time 714,003 13,042 3.67 402,151 2,736 1.37
Brokered 60,181 1,641 5.48 729 12 3.44
Total interest-bearing deposits 3,302,304 27,726 1.69 2,983,216 6,697 0.45
Securities sold under agreements to repurchase 31,448 281 1.80 36,879 72 0.39
Borrowings 13,235 246 3.73 143,632 3,486 4.89
Subordinated notes 39,494 939 4.78 39,414 939 4.81
Junior subordinated debentures issued to capital trusts 52,804 1,877 7.15 50,183 1,644 6.61
Total interest-bearing liabilities 3,439,285 $ 31,069 1.82 % 3,253,324 $ 12,838 0.80 %
Noninterest-bearing deposits 1,040,007 1,133,292
Noninterest-bearing liabilities 38,457 46,181
Total liabilities 4,517,749 4,432,797
Stockholders' Equity 497,906 438,448
Total liabilities and stockholders’ equity $ 5,015,655 4,871,245
Net interest income/Net interest margin (1) $ 93,716 3.95 % $ 95,709 4.18 %
Tax-equivalent adjustment (2) 1,128 0.04 1,417 0.06
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$ 94,844 3.99 % $ 97,126 4.24 %
Net interest rate spread (4) 3.43 % 3.94 %
Net interest-earning assets (5) $ 1,336,220 $ 1,367,017
Ratio of interest-earning assets to interest-bearing liabilities 1.39 1.42
Cost of total deposits 1.28 % 0.33 %
Cost of funds 1.39 0.59

____________________________________

  • 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) June 30,
2024
March 31,
2024
June 30,
2023
NONPERFORMING ASSETS
Nonaccrual $ 8,425 $ 9,657 $ 7,534
Past due 90 days or more, still accruing 7 1
Total nonperforming loans 8,432 9,657 7,535
Foreclosed assets 320 277 3,080
Total nonperforming assets $ 8,752 $ 9,934 $ 10,615
Nonperforming loans that are wholly or partially guaranteed by the U.S. Government $ 2,132 $ 2,676 $ 2,332
Allowance for credit losses $ 40,806 $ 40,815 $ 37,814
Loans, before allowance for credit losses 3,385,483 3,345,962 3,244,655
CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses 1.21 % 1.22 % 1.17 %
Allowance for credit losses to nonaccrual loans 484.34 422.65 501.91
Allowance for credit losses to nonperforming loans 483.94 422.65 501.84
Nonaccrual loans to loans, before allowance for credit losses 0.25 0.29 0.23
Nonperforming loans to loans, before allowance for credit losses 0.25 0.29 0.23
Nonperforming assets to total assets 0.17 0.20 0.21
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets 0.26 0.30 0.33


HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Three Months Ended Six Months Ended June 30,
(dollars in thousands) June 30,
2024
March 31,
2024
June 30,
2023
2024 2023
ALLOWANCE FOR CREDIT LOSSES
Beginning balance $ 40,815 $ 40,048 $ 38,776 $ 40,048 $ 25,333
Adoption of ASC 326 6,983
PCD allowance established in acquisition 1,247
Provision for credit losses 677 560 (1,080 ) 1,237 4,021
Charge-offs (870 ) (227 ) (179 ) (1,097 ) (321 )
Recoveries 184 434 297 618 551
Ending balance $ 40,806 $ 40,815 $ 37,814 $ 40,806 $ 37,814
Net charge-offs (recoveries) $ 686 $ (207 ) $ (118 ) $ 479 $ (230 )
Average loans 3,374,058 3,371,219 3,238,774 3,372,640 3,126,173
Net charge-offs (recoveries) to average loans * 0.08 % (0.02)% (0.01)% 0.03 % (0.01)%

____________________________________

  • Annualized measure.
Three Months Ended Six Months Ended June 30,
(dollars in thousands) June 30,
2024
March 31,
2024
June 30,
2023
2024 2023
PROVISION FOR CREDIT LOSSES
Loans (1) $ 677 $ 560 $ (1,080 ) $ 1,237 $ 4,021
Unfunded lending-related commitments (1) 499 (33 ) 650 466 1,159
Debt securities 200 800
Total provision for credit losses $ 1,176 $ 527 $ (230 ) $ 1,703 $ 5,980

____________________________________
(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 Six Months Ended June 30,
(dollars in thousands) June 30,
2024
March 31,
2024
June 30,
2023
2024 2023
Net income $ 18,070 $ 15,258 $ 18,473 $ 33,328 $ 27,681
Adjustments:
Acquisition expenses (1) (627 ) (13,691 )
Gains (losses) on closed branch premises (635 ) 75 (635 ) 75
Realized gains (losses) on sales of securities (3,382 ) (3,382 ) (1,007 )
Mortgage servicing rights fair value adjustment (97 ) 80 141 (17 ) (483 )
Total adjustments (97 ) (3,937 ) (411 ) (4,034 ) (15,106 )
Tax effect of adjustments (2) 28 1,122 112 1,150 4,156
Total adjustments after tax effect (69 ) (2,815 ) (299 ) (2,884 ) (10,950 )
Adjusted net income $ 18,139 $ 18,073 $ 18,772 $ 36,212 $ 38,631
Average assets $ 5,027,847 $ 5,003,464 $ 4,976,035 $ 5,015,655 $ 4,871,245
Return on average assets * 1.45 % 1.23 % 1.49 % 1.34 % 1.15 %
Adjusted return on average assets * 1.45 1.45 1.51 1.45 1.60

____________________________________

  • 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 Six Months Ended June 30,
(dollars in thousands, except per share amounts) June 30,
2024
March 31,
2024
June 30,
2023
2024 2023
Numerator:
Net income $ 18,070 $ 15,258 $ 18,473 $ 33,328 $ 27,681
Earnings allocated to participating securities (1) (11 ) (16 )
Numerator for earnings per share - basic and diluted $ 18,070 $ 15,258 $ 18,462 $ 33,328 $ 27,665
Adjusted net income $ 18,139 $ 18,073 $ 18,772 $ 36,212 $ 38,631
Earnings allocated to participating securities (1) (10 ) (23 )
Numerator for adjusted earnings per share - basic and diluted $ 18,139 $ 18,073 $ 18,762 $ 36,212 $ 38,608
Denominator:
Weighted average common shares outstanding 31,579,457 31,662,954 31,980,133 31,621,205 31,481,439
Dilutive effect of outstanding restricted stock units 87,354 140,233 99,850 113,794 84,981
Weighted average common shares outstanding, including all dilutive potential shares 31,666,811 31,803,187 32,079,983 31,734,999 31,566,420
Earnings per share - Basic $ 0.57 $ 0.48 $ 0.58 $ 1.05 $ 0.88
Earnings per share - Diluted $ 0.57 $ 0.48 $ 0.58 $ 1.05 $ 0.88
Adjusted earnings per share - Basic $ 0.57 $ 0.57 $ 0.59 $ 1.15 $ 1.23
Adjusted earnings per share - Diluted $ 0.57 $ 0.57 $ 0.58 $ 1.14 $ 1.22

____________________________________
(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 Six Months Ended June 30,
(dollars in thousands) June 30,
2024
March 31,
2024
June 30,
2023
2024 2023
Net interest income (tax-equivalent basis)
Net interest income $ 47,028 $ 46,688 $ 48,872 $ 93,716 $ 95,709
Tax-equivalent adjustment (1) 553 575 715 1,128 1,417
Net interest income (tax-equivalent basis) (1) $ 47,581 $ 47,263 $ 49,587 $ 94,844 $ 97,126
Net interest margin (tax-equivalent basis)
Net interest margin * 3.95 % 3.94 % 4.16 % 3.95 % 4.18 %
Tax-equivalent adjustment * (1) 0.05 0.05 0.06 0.04 0.06
Net interest margin (tax-equivalent basis) * (1) 4.00 % 3.99 % 4.22 % 3.99 % 4.24 %
Average interest-earning assets $ 4,785,558 $ 4,765,449 $ 4,715,897 $ 4,775,505 $ 4,620,341

____________________________________

  • 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 Six Months Ended June 30,
(dollars in thousands) June 30,
2024
March 31,
2024
June 30,
2023
2024 2023
Efficiency ratio (tax-equivalent basis)
Total noninterest expense $ 30,509 $ 31,268 $ 33,973 $ 61,777 $ 69,906
Less: amortization of intangible assets 710 710 720 1,420 1,230
Noninterest expense excluding amortization of intangible assets $ 29,799 $ 30,558 $ 33,253 $ 60,357 $ 68,676
Net interest income $ 47,028 $ 46,688 $ 48,872 $ 93,716 $ 95,709
Total noninterest income 9,610 5,626 9,914 15,236 17,351
Operating revenue 56,638 52,314 58,786 108,952 113,060
Tax-equivalent adjustment (1) 553 575 715 1,128 1,417
Operating revenue (tax-equivalent basis) (1) $ 57,191 $ 52,889 $ 59,501 $ 110,080 $ 114,477
Efficiency ratio 52.61 % 58.41 % 56.57 % 55.40 % 60.74 %
Efficiency ratio (tax-equivalent basis) (1) 52.10 57.78 55.89 54.83 59.99

____________________________________
(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) June 30,
2024
March 31,
2024
June 30,
2023
Tangible Common Equity
Total stockholders' equity $ 509,469 $ 496,681 $ 450,852
Less: Goodwill 59,820 59,820 59,876
Less: Intangible assets, net 19,262 19,972 22,122
Tangible common equity $ 430,387 $ 416,889 $ 368,854
Tangible Assets
Total assets $ 5,006,199 $ 5,040,510 $ 4,975,810
Less: Goodwill 59,820 59,820 59,876
Less: Intangible assets, net 19,262 19,972 22,122
Tangible assets $ 4,927,117 $ 4,960,718 $ 4,893,812
Total stockholders' equity to total assets 10.18 % 9.85 % 9.06 %
Tangible common equity to tangible assets 8.74 8.40 7.54
Shares of common stock outstanding 31,559,366 31,612,888 31,865,868
Book value per share $ 16.14 $ 15.71 $ 14.15
Tangible book value per share 13.64 13.19 11.58


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 Six Months Ended June 30,
(dollars in thousands) June 30,
2024
March 31,
2024
June 30,
2023
2024 2023
Average Tangible Common Equity
Total stockholders' equity $ 501,837 $ 493,976 $ 454,505 $ 497,906 $ 438,448
Less: Goodwill 59,820 59,820 59,876 59,820 54,643
Less: Intangible assets, net 19,605 20,334 22,520 19,970 19,097
Average tangible common equity $ 422,412 $ 413,822 $ 372,109 $ 418,116 $ 364,708
Net income $ 18,070 $ 15,258 $ 18,473 $ 33,328 $ 27,681
Adjusted net income 18,139 18,073 18,772 36,212 38,631
Return on average stockholders' equity * 14.48 % 12.42 % 16.30 % 13.46 % 12.73 %
Return on average tangible common equity * 17.21 14.83 19.91 16.03 15.31
Adjusted return on average stockholders' equity * 14.54 % 14.72 % 16.57 % 14.63 % 17.77 %
Adjusted return on average tangible common equity * 17.27 17.57 20.23 17.42 21.36

____________________________________

  • Annualized measure.

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