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.

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


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

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


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

* Annualized measure.

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


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

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


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


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

* Annualized measure.