HBT Financial, Inc. Announces First Quarter 2024 Financial Results

April 22, 2024 at 7:05 AM EDT

First Quarter Highlights

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

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

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

Adjusted Net Income

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

Net Interest Income and Net Interest Margin

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

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

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

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

Noninterest Income

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

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

Noninterest Expense

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

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

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

(dollars in thousands)	Three Months Ended March 31, 2023

PROVISION FOR CREDIT LOSSES	$	5,924
NONINTEREST EXPENSE
Salaries		3,518
Data processing		1,855
Marketing and customer relations		14
Legal fees and other noninterest expense		1,753
Total noninterest expense		7,140
Total acquisition-related expenses	$	13,064

Loan Portfolio

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

Deposits

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

Asset Quality

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

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

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

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

Capital

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

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

About HBT Financial, Inc.

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

Non-GAAP Financial Measures

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

Forward-Looking Statements

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

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

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

HBT Financial, Inc. Unaudited Consolidated Financial Summary

	As of or for the Three Months Ended
(dollars in thousands, except per share data)	March 31, 2024			December 31, 2023			March 31, 2023
Interest and dividend income	$	61,961		$	61,411		$	51,779
Interest expense		15,273			14,327			4,942
Net interest income		46,688			47,084			46,837
Provision for credit losses		527			1,113			6,210
Net interest income after provision for credit losses		46,161			45,971			40,627
Noninterest income		5,626			9,205			7,437
Noninterest expense		31,268			30,387			35,933
Income before income tax expense		20,519			24,789			12,131
Income tax expense		5,261			6,343			2,923
Net income	$	15,258		$	18,446		$	9,208

Earnings per share - Diluted	$	0.48		$	0.58		$	0.30

Adjusted net income ⁽¹⁾	$	18,073		$	19,272		$	19,859
Adjusted earnings per share - Diluted ⁽¹⁾		0.57			0.60			0.64

Book value per share	$	15.71		$	15.44		$	14.02
Tangible book value per share ⁽¹⁾		13.19			12.90			11.45

Shares of common stock outstanding		31,612,888			31,695,828			32,095,370
Weighted average shares of common stock outstanding		31,662,954			31,708,381			30,977,204

SUMMARY RATIOS
Net interest margin *		3.94	%		3.93	%		4.20	%
Net interest margin (tax-equivalent basis) * ⁽¹⁾⁽²⁾		3.99			3.99			4.26

Efficiency ratio		58.41	%		52.70	%		65.27	%
Efficiency ratio (tax-equivalent basis) ⁽¹⁾⁽²⁾		57.78			52.09			64.43

Loan to deposit ratio		76.73	%		77.35	%		74.13	%

Return on average assets *		1.23	%		1.46	%		0.78	%
Return on average stockholders' equity *		12.42			15.68			8.84
Return on average tangible common equity * ⁽¹⁾		14.83			18.96			10.45

Adjusted return on average assets * ⁽¹⁾		1.45	%		1.53	%		1.69	%
Adjusted return on average stockholders' equity * ⁽¹⁾		14.72			16.38			19.08
Adjusted return on average tangible common equity * ⁽¹⁾		17.57			19.81			22.55

CAPITAL
Total capital to risk-weighted assets		15.79	%		15.33	%		15.11	%
Tier 1 capital to risk-weighted assets		13.77			13.42			13.16
Common equity tier 1 capital ratio		12.44			12.12			11.79
Tier 1 leverage ratio		10.65			10.49			10.29
Total stockholders' equity to total assets		9.85			9.65			8.98
Tangible common equity to tangible assets ⁽¹⁾		8.40			8.19			7.45

ASSET QUALITY
Net charge-offs (recoveries) to average loans		(0.02	)%		0.06	%		(0.02	)%
Allowance for credit losses to loans, before allowance for credit losses		1.22			1.18			1.21
Nonperforming loans to loans, before allowance for credit losses		0.29			0.23			0.20
Nonperforming assets to total assets		0.20			0.17			0.20

_{^*Annualized measure.}

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

HBT Financial, Inc. Unaudited Consolidated Financial Summary Consolidated Statements of Income

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

EARNINGS PER SHARE - BASIC	$	0.48		$	0.58		$	0.30
EARNINGS PER SHARE - DILUTED	$	0.48		$	0.58		$	0.30
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING		31,662,954			31,708,381			30,977,204

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

(dollars in thousands)	March 31, 2024			December 31, 2023			March 31, 2023
ASSETS
Cash and due from banks	$	19,989		$	26,256		$	35,244
Interest-bearing deposits with banks		240,223			114,996			141,868
Cash and cash equivalents		260,212			141,252			177,112

Interest-bearing time deposits with banks		515			509			249
Debt securities available-for-sale, at fair value		669,020			759,461			854,622
Debt securities held-to-maturity		517,472			521,439			536,429
Equity securities with readily determinable fair value		3,324			3,360			3,145
Equity securities with no readily determinable fair value		2,622			2,505			1,980
Restricted stock, at cost		5,155			7,160			4,991
Loans held for sale		3,479			2,318			5,130

Loans, before allowance for credit losses		3,345,962			3,404,417			3,195,540
Allowance for credit losses		(40,815	)		(40,048	)		(38,776	)
Loans, net of allowance for credit losses		3,305,147			3,364,369			3,156,764

Bank owned life insurance		24,069			23,905			23,447
Bank premises and equipment, net		64,755			65,150			65,119
Bank premises held for sale		317			—			235
Foreclosed assets		277			852			3,356
Goodwill		59,820			59,820			59,876
Intangible assets, net		19,972			20,682			22,842
Mortgage servicing rights, at fair value		19,081			19,001			19,992
Investments in unconsolidated subsidiaries		1,614			1,614			1,614
Accrued interest receivable		23,117			24,534			20,301
Other assets		60,542			55,239			56,617
Total assets	$	5,040,510		$	5,073,170		$	5,013,821

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	1,047,074		$	1,072,407		$	1,218,888
Interest-bearing		3,313,500			3,329,030			3,091,633
Total deposits		4,360,574			4,401,437			4,310,521

Securities sold under agreements to repurchase		31,864			42,442			34,919
Federal Home Loan Bank advances		12,725			12,623			75,183
Subordinated notes		39,494			39,474			39,415
Junior subordinated debentures issued to capital trusts		52,804			52,789			52,746
Other liabilities		46,368			34,909			50,939
Total liabilities		4,543,829			4,583,674			4,563,723

Stockholders' Equity
Common stock		328			327			327
Surplus		296,054			295,877			294,441
Retained earnings		278,353			269,051			228,782
Accumulated other comprehensive income (loss)		(56,048	)		(57,163	)		(62,175	)
Treasury stock at cost		(22,006	)		(18,596	)		(11,277	)
Total stockholders’ equity		496,681			489,496			450,098
Total liabilities and stockholders’ equity	$	5,040,510		$	5,073,170		$	5,013,821
SHARES OF COMMON STOCK OUTSTANDING		31,612,888			31,695,828			32,095,370

HBT Financial, Inc. Unaudited Consolidated Financial Summary

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

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

HBT Financial, Inc. Unaudited Consolidated Financial Summary

	Three Months Ended
	March 31, 2024							December 31, 2023							March 31, 2023
(dollars in thousands)	Average Balance			Interest		Yield/Cost *		Average Balance			Interest		Yield/Cost *		Average Balance			Interest		Yield/Cost *
ASSETS
Loans	$	3,371,219		$	53,020	6.33	%	$	3,374,451		$	53,185	6.25	%	$	3,012,320		$	43,111	5.80	%
Securities		1,221,447			6,847	2.25			1,282,773			7,265	2.25			1,411,613			7,813	2.24
Deposits with banks		167,297			1,952	4.69			84,021			786	3.71			92,363			739	3.24
Other		5,486			142	10.40			7,505			175	9.23			7,425			116	6.33
Total interest-earning assets		4,765,449		$	61,961	5.23	%		4,748,750		$	61,411	5.13	%		4,523,721		$	51,779	4.64	%
Allowance for credit losses		(40,238	)						(38,844	)						(33,301	)
Noninterest-earning assets		278,253							292,543							274,870
Total assets	$	5,003,464						$	5,002,449						$	4,765,290

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,127,684		$	1,311	0.47	%	$	1,140,438		$	1,228	0.43	%	$	1,230,644		$	458	0.15	%
Money market		812,684			4,797	2.37			684,197			2,885	1.67			634,608			935	0.60
Savings		611,224			443	0.29			610,767			417	0.27			709,862			178	0.10
Time		664,498			5,925	3.59			599,293			4,773	3.16			356,779			803	0.91
Brokered		82,150			1,117	5.47			140,963			1,924	5.42			—			—	—
Total interest-bearing deposits		3,298,240			13,593	1.66			3,175,658			11,227	1.40			2,931,893			2,374	0.33
Securities sold under agreements to repurchase		32,456			152	1.89			34,282			148	1.71			39,619			38	0.38
Borrowings		13,003			125	3.87			114,220			1,534	5.33			113,896			1,297	4.62
Subordinated notes		39,484			470	4.78			39,464			470	4.72			39,403			470	4.83
Junior subordinated debentures issued to capital trusts		52,796			933	7.11			52,782			948	7.13			47,586			763	6.50
Total interest-bearing liabilities		3,435,979		$	15,273	1.79	%		3,416,406		$	14,327	1.66	%		3,172,397		$	4,942	0.63	%
Noninterest-bearing deposits		1,036,402							1,081,795							1,121,365
Noninterest-bearing liabilities		37,107							37,440							49,316
Total liabilities		4,509,488							4,535,641							4,343,078
Stockholders' Equity		493,976							466,808							422,212
Total liabilities and stockholders’ equity	$	5,003,464						$	5,002,449						$	4,765,290

Net interest income/Net interest margin ⁽¹⁾				$	46,688	3.94	%				$	47,084	3.93	%				$	46,837	4.20	%
Tax-equivalent adjustment ⁽²⁾					575	0.05						666	0.06						702	0.06
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) ^{(2) (3)}				$	47,263	3.99	%				$	47,750	3.99	%				$	47,539	4.26	%
Net interest rate spread ⁽⁴⁾						3.44	%						3.47	%						4.01	%
Net interest-earning assets ⁽⁵⁾	$	1,329,470						$	1,332,344						$	1,351,324
Ratio of interest-earning assets to interest-bearing liabilities		1.39							1.39							1.43
Cost of total deposits						1.26	%						1.05	%						0.24	%
Cost of funds						1.37							1.26							0.47

_{^* Annualized measure.}

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

HBT Financial, Inc. Unaudited Consolidated Financial Summary

(dollars in thousands)	March 31, 2024			December 31, 2023			March 31, 2023
NONPERFORMING ASSETS
Nonaccrual	$	9,657		$	7,820		$	6,508
Past due 90 days or more, still accruing		—			37			10
Total nonperforming loans		9,657			7,857			6,518
Foreclosed assets		277			852			3,356
Total nonperforming assets	$	9,934		$	8,709		$	9,874

Nonperforming loans that are wholly or partially guaranteed by the U.S. Government	$	2,676		$	2,641		$	1,997

Allowance for credit losses	$	40,815		$	40,048		$	38,776
Loans, before allowance for credit losses		3,345,962			3,404,417			3,195,540

CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses		1.22	%		1.18	%		1.21	%
Allowance for credit losses to nonaccrual loans		422.65			512.12			595.82
Allowance for credit losses to nonperforming loans		422.65			509.71			594.91
Nonaccrual loans to loans, before allowance for credit losses		0.29			0.23			0.20
Nonperforming loans to loans, before allowance for credit losses		0.29			0.23			0.20
Nonperforming assets to total assets		0.20			0.17			0.20
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets		0.30			0.26			0.31

HBT Financial, Inc. Unaudited Consolidated Financial Summary
	Three Months Ended
(dollars in thousands)	March 31, 2024			December 31, 2023			March 31, 2023
ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	40,048		$	38,863		$	25,333
Adoption of ASC 326		—			—			6,983
PCD allowance established in acquisition		—			—			1,247
Provision for credit losses		560			1,661			5,101
Charge-offs		(227	)		(626	)		(142	)
Recoveries		434			150			254
Ending balance	$	40,815		$	40,048		$	38,776

Net charge-offs (recoveries)	$	(207	)	$	476		$	(112	)
Average loans		3,371,219			3,374,451			3,012,320

Net charge-offs (recoveries) to average loans *		(0.02	)%		0.06	%		(0.02	)%

_{^* Annualized measure.}

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

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

Reconciliation of Non-GAAP Financial Measures – Adjusted Net Income and Adjusted Return on Average Assets

	Three Months Ended
(dollars in thousands)	March 31, 2024			December 31, 2023			March 31, 2023
Net income	$	15,258		$	18,446		$	9,208
Adjustments:
Acquisition expenses ⁽¹⁾		—			—			(13,064	)
Gains (losses) on closed branch premises		(635	)		—			—
Realized gains (losses) on sales of securities		(3,382	)		—			(1,007	)
Mortgage servicing rights fair value adjustment		80			(1,155	)		(624	)
Total adjustments		(3,937	)		(1,155	)		(14,695	)
Tax effect of adjustments		1,122			329			4,044
Total adjustments after tax effect		(2,815	)		(826	)		(10,651	)
Adjusted net income	$	18,073		$	19,272		$	19,859

Average assets	$	5,003,464		$	5,002,449		$	4,765,290

Return on average assets *		1.23	%		1.46	%		0.78	%
Adjusted return on average assets *		1.45			1.53			1.69

_{^* Annualized measure.}

Reconciliation of Non-GAAP Financial Measures – Adjusted Earnings Per Share — Basic and Diluted

	Three Months Ended
(dollars in thousands, except per share amounts)	March 31, 2024		December 31, 2023			March 31, 2023
Numerator:
Net income	$	15,258	$	18,446		$	9,208
Earnings allocated to participating securities ⁽¹⁾		—		(10	)		(5	)
Numerator for earnings per share - basic and diluted	$	15,258	$	18,436		$	9,203

Adjusted net income	$	18,073	$	19,272		$	19,859
Earnings allocated to participating securities ⁽¹⁾		—		(9	)		(13	)
Numerator for adjusted earnings per share - basic and diluted	$	18,073	$	19,263		$	19,846

Denominator:
Weighted average common shares outstanding		31,662,954		31,708,381			30,977,204
Dilutive effect of outstanding restricted stock units		140,233		139,332			69,947
Weighted average common shares outstanding, including all dilutive potential shares		31,803,187		31,847,713			31,047,151

Earnings per share - Basic	$	0.48	$	0.58		$	0.30
Earnings per share - Diluted	$	0.48	$	0.58		$	0.30

Adjusted earnings per share - Basic	$	0.57	$	0.61		$	0.64
Adjusted earnings per share - Diluted	$	0.57	$	0.60		$	0.64

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

Reconciliation of Non-GAAP Financial Measures – Net Interest Income (Tax-equivalent Basis) and Net Interest Margin (Tax-equivalent Basis)

	Three Months Ended
(dollars in thousands)	March 31, 2024			December 31, 2023			March 31, 2023
Net interest income (tax-equivalent basis)
Net interest income	$	46,688		$	47,084		$	46,837
Tax-equivalent adjustment ⁽¹⁾		575			666			702
Net interest income (tax-equivalent basis) ⁽¹⁾	$	47,263		$	47,750		$	47,539

Net interest margin (tax-equivalent basis)
Net interest margin *		3.94	%		3.93	%		4.20	%
Tax-equivalent adjustment * ⁽¹⁾		0.05			0.06			0.06
Net interest margin (tax-equivalent basis) * ⁽¹⁾		3.99	%		3.99	%		4.26	%

Average interest-earning assets	$	4,765,449		$	4,748,750		$	4,523,721

_{^* Annualized measure.}

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

Reconciliation of Non-GAAP Financial Measures – Efficiency Ratio (Tax-equivalent Basis)

	Three Months Ended
(dollars in thousands)	March 31, 2024			December 31, 2023			March 31, 2023
Efficiency ratio (tax-equivalent basis)
Total noninterest expense	$	31,268		$	30,387		$	35,933
Less: amortization of intangible assets		710			720			510
Noninterest expense excluding amortization of intangible assets	$	30,558		$	29,667		$	35,423

Net interest income	$	46,688		$	47,084		$	46,837
Total noninterest income		5,626			9,205			7,437
Operating revenue		52,314			56,289			54,274
Tax-equivalent adjustment ⁽¹⁾		575			666			702
Operating revenue (tax-equivalent basis) ⁽¹⁾	$	52,889		$	56,955		$	54,976

Efficiency ratio		58.41	%		52.70	%		65.27	%
Efficiency ratio (tax-equivalent basis) ⁽¹⁾		57.78			52.09			64.43

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

Reconciliation of Non-GAAP Financial Measures – Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share

(dollars in thousands, except per share data)	March 31, 2024			December 31, 2023			March 31, 2023
Tangible Common Equity
Total stockholders' equity	$	496,681		$	489,496		$	450,098
Less: Goodwill		59,820			59,820			59,876
Less: Intangible assets, net		19,972			20,682			22,842
Tangible common equity	$	416,889		$	408,994		$	367,380

Tangible Assets
Total assets	$	5,040,510		$	5,073,170		$	5,013,821
Less: Goodwill		59,820			59,820			59,876
Less: Intangible assets, net		19,972			20,682			22,842
Tangible assets	$	4,960,718		$	4,992,668		$	4,931,103

Total stockholders' equity to total assets		9.85	%		9.65	%		8.98	%
Tangible common equity to tangible assets		8.40			8.19			7.45

Shares of common stock outstanding		31,612,888			31,695,828			32,095,370

Book value per share	$	15.71		$	15.44		$	14.02
Tangible book value per share		13.19			12.90			11.45

Reconciliation of Non-GAAP Financial Measures – Return on Average Tangible Common Equity, Adjusted Return on Average Stockholders' Equity and Adjusted Return on Average Tangible Common Equity

	Three Months Ended
(dollars in thousands)	March 31, 2024			December 31, 2023			March 31, 2023
Average Tangible Common Equity
Total stockholders' equity	$	493,976		$	466,808		$	422,212
Less: Goodwill		59,820			59,820			49,352
Less: Intangible assets, net		20,334			21,060			15,635
Average tangible common equity	$	413,822		$	385,928		$	357,225

Net income	$	15,258		$	18,446		$	9,208
Adjusted net income		18,073			19,272			19,859

Return on average stockholders' equity *		12.42	%		15.68	%		8.84	%
Return on average tangible common equity *		14.83			18.96			10.45

Adjusted return on average stockholders' equity *		14.72	%		16.38	%		19.08	%
Adjusted return on average tangible common equity *		17.57			19.81			22.55

_{^* Annualized measure.}

Press Releases

HBT Financial, Inc. Announces First Quarter 2024 Financial Results