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HBT Financial, Inc. Announces Second Quarter 2024 Financial Results

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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