HBT Financial, Inc. Announces Fourth Quarter 2019 Financial Results
Fourth Quarter Highlights
- Net income of $16.1 million; Return on average assets (ROAA) of 1.97%; return on average stockholders' equity (ROAE) of 19.39%; and return on average tangible common equity (ROATCE)(1) of 21.17%
- C Corp equivalent net income of $15.1 million; C Corp equivalent ROAA of 1.85%; C Corp equivalent ROAE of 18.19%; and C Corp equivalent ROATCE(1) of 19.86%
- Adjusted C Corp equivalent net income(1) of $14.4 million; adjusted C Corp equivalent ROAA(1) of 1.77%; adjusted C Corp equivalent ROAE(1) of 17.38%; and adjusted C Corp equivalent ROATCE(1) of 18.97%
- Initial public offering priced on October 10, 2019
_____________________
(1) See “Non-GAAP Financial Measures” and “Reconciliation of Non-GAAP Financial Measures” below for a discussion of non-GAAP financial measures and reconciliations to GAAP financial measures.
BLOOMINGTON, Ill., Jan. 30, 2020 (GLOBE NEWSWIRE) -- HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial”), the holding company for Heartland Bank and Trust Company and State Bank of Lincoln, today reported net income of $16.1 million, or $0.61 diluted earnings per share, for the fourth quarter of 2019. This compares to net income of $17.4 million, or $0.97 diluted earnings per share, for the third quarter of 2019, and net income of $11.9 million, or $0.66 diluted earnings per share, for the fourth quarter of 2018.
Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “Our 2019 performance is a result of strong execution on the strategies that have made HBT Financial a consistently high performing company. HBT Financial has an attractive core deposit base, strong capital levels and solid asset quality. We are pleased to initiate a quarterly cash dividend to enhance the total return we deliver for shareholders. During 2019, we had continued momentum on our earnings and organic loan growth. We are pleased to have completed our initial public offering and are well positioned for the future, and we expect to continue to enhance the value of our franchise through both organic and acquisition growth strategies.”
C Corp Equivalent Net Income and Adjusted C Corp Equivalent Net Income
The Company has historically operated as an S Corporation for U.S. federal and state income tax purposes. Following the completion of the initial public offering during the fourth quarter of 2019, the Company was treated as a C Corporation (“C Corp”) for federal and state income tax purposes. For comparison, the Company reports its C Corp equivalent financial results, which does not reflect the additional shares issued in the initial public offering (the “IPO”) for periods prior to the IPO.
For the fourth quarter of 2019, the Company reported C Corp equivalent net income of $15.1 million, or $0.58 diluted earnings per share. This compares to C Corp equivalent net income of $13.1 million, or $0.73 diluted earnings per share, for the third quarter of 2019, and C Corp equivalent net income of $9.2 million, or $0.51 diluted earnings per share, for the fourth quarter of 2018.
In addition to reporting C Corp equivalent results, the Company believes adjusted C Corp equivalent results, which adjust for mortgage servicing rights (“MSR”) fair value adjustments, gains (losses) on sales of securities, and certain non-recurring items, provide investors with additional insight into its operational performance. The Company reported adjusted C Corp equivalent net income of $14.4 million, or $0.55 diluted earnings per share, for the fourth quarter of 2019. This compares to adjusted C Corp equivalent net income of $14.3 million, or $0.80 diluted earnings per share, for the third quarter of 2019, and adjusted C Corp equivalent net income of $10.9 million, or $0.60 diluted earnings per share, for the fourth quarter of 2018 (see "Reconciliation of Non-GAAP Financial Measures" tables).
Net Interest Income and Net Interest Margin
Net interest income for the fourth quarter of 2019 was $32.3 million, a decrease of 2.6% from $33.1 million for the third quarter of 2019. The decrease was primarily attributable to a decline in net interest margin, partially offset by an increase in average interest-earning assets.
Relative to the fourth quarter of 2018, net interest income decreased $0.8 million, or 2.4%. The decline was primarily attributable to a lower net interest margin, partially offset by an increase in average interest-earning assets.
Net interest margin for the fourth quarter of 2019 was 4.12%, including 2 basis points attributable to acquired loan discount accretion, compared to 4.31%, including 4 basis points attributable to acquired loan discount accretion, for the third quarter of 2019. The decrease was primarily attributable to a decline in average loan yields, lower average loan balances, and an increase in lower-yielding cash balances.
Relative to the fourth quarter of 2018, net interest margin decreased from 4.29%, including 9 basis points attributable to acquired loan discount accretion, due primarily to lower loan yields and an increase in lower-yielding cash balances.
The increase in lower yielding cash balances during the fourth quarter of 2019 was primarily due to higher balances for a small number of retail deposit accounts. These funds were mainly invested in lower yielding cash balances, resulting in a $0.2 million increase in net interest income and a 4 basis point reduction in the net interest margin for the quarter.
The Federal Open Market Committee lowered its target federal funds rate for the first time in 11 years on July 31, 2019 and then again in September 2019 and October 2019. The Company expects the cumulative decrease of 75 basis points in the target federal funds rate in 2019 to continue placing downward pressure on its net interest margin in 2020.
Noninterest Income
Noninterest income for the fourth quarter of 2019 was $10.3 million, an increase of 36.3% from $7.6 million for the third quarter of 2019. Fourth quarter 2019 results benefitted from a $0.6 million gain on the fair value adjustment of the MSR asset compared to a negative $0.9 million MSR fair value adjustment in the third quarter of 2019. Gains on foreclosed assets and fees on customer-related interest rate swaps, included in other noninterest income, also contributed to noninterest income growth.
Relative to the fourth quarter of 2018, noninterest income increased 60.8% from $6.4 million. The growth was primarily attributable to lower securities losses, gains on foreclosed assets, and higher other income.
Noninterest Expense
Noninterest expense for the fourth quarter of 2019 was $22.0 million, compared with $22.3 million for the third quarter of 2019. The decrease was primarily attributable to lower employee benefits expense, as third quarter of 2019 results included a $0.8 million charge for the supplemental executive retirement plan (SERP) which was terminated in June 2019. The SERP liability varies inversely with interest rates, therefore there was a $0.4 million credit in the fourth quarter of 2019. The SERP will be liquidated in June 2020. FDIC insurance expense was lower in the fourth quarter of 2019 due to the application of small bank assessment credits. Other noninterest and occupancy expenses were also lower in the fourth quarter of 2019, but were more than offset by higher salaries, marketing, and furniture and equipment costs.
Relative to the fourth quarter of 2018, noninterest expense decreased 6.4% from $23.4 million. The decrease was primarily due to lower other, FDIC insurance, employee benefits, and occupancy expenses.
Loan Portfolio
Total loans, before allowance for loan losses outstanding were $2.16 billion at December 31, 2019, compared with $2.17 billion at September 30, 2019 and $2.14 billion at December 31, 2018. The $7.2 million decline in loans from September 30, 2019 was primarily due to a $41.2 million reduction in loan participations resulting primarily from the payoff of five loans, offset by organic loan growth primarily in commercial real estate – non-owner occupied and construction and development. The five loan participations that paid off included $22.3 million in commercial and industrial, $4.8 million in CRE – non-owner occupied, $8.8 million in multi-family and $3.6 million in municipal, consumer and other. Loan participations make up a small portion of the Company’s loan portfolio totaling $71.7 million at December 31, 2019 compared to $112.9 million at September 30, 2019 and $131.4 million at December 31, 2018.
Based on loan trends experienced in 2019 and a healthy loan pipeline, the Company expects low-single digit loan growth in 2020.
Deposits
Total deposits were $2.78 billion at December 31, 2019, compared with $2.70 billion at September 30, 2019, and $2.80 billion at December 31, 2018. The $72.8 million increase in total deposits from September 30, 2019 was broad-based with growth in noninterest-bearing, interest-bearing demand, money market and savings balances more than offsetting a decline in time deposits.
The deposit growth in the fourth quarter of 2019 included approximately $40.2 million in increased balances in a small number of retail deposit accounts. The changes in these accounts included a $4.2 million increase in non-interest bearing, a $3.0 million decrease in interest bearing demand, a $31.1 million increase in money market, and a $8.0 million increase in savings. The Company expects some outflow in these deposits during the first quarter of 2020.
Asset Quality
Nonperforming loans totaled $19.0 million, or 0.88% of total loans, at December 31, 2019, compared with $19.1 million, or 0.88% of total loans, at September 30, 2019, and $15.9 million, or 0.74% of total loans, at December 31, 2018.
Net charge-offs for the fourth quarter of 2019 were $0.6 million, or 0.11% of average loans on an annualized basis.
The Company recorded a provision for loan losses of $0.1 million for the fourth quarter of 2019, compared with $0.7 million for the third quarter of 2019. The reduction in provision for loan losses was primarily due to a reduction in specific reserves on two credits as a result of improved collateral positions. The Company’s allowance for loan losses was 1.03% of total loans and 117.06% of nonperforming loans at December 31, 2019, compared with 1.05% of total loans and 119.34% of nonperforming loans at September 30, 2019.
Capital
At December 31, 2019, the Company exceeded all regulatory capital requirements under Basel III and was considered to be ‘‘well-capitalized’’, as summarized in the following table:
| December 31, | Well Capitalized | ||
| 2019 | Regulatory Requirements | ||
| Total capital to risk-weighted assets | 14.54 | % | 10.00% |
| Tier 1 capital to risk-weighted assets | 13.64 | % | 8.00% |
| Tier 1 leverage ratio | 10.38 | % | 5.00% |
| Common equity tier 1 capital ratio | 12.15 | % | 6.50% |
| Total stockholders' equity to total assets | 10.26 | % | NA |
| Tangible common equity to tangible assets (1) | 9.49 | % | NA |
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(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.
Completion of Initial Public Offering
On October 10, 2019, the Company priced its initial public offering (the “IPO”), and issued 8,300,000 shares of its common stock at a price to the public of $16.00 per share on October 11, 2019. On October 29, 2019, the underwriters purchased an additional 1,129,794 shares pursuant to the exercise of their option to purchase additional shares from HBT Financial at the initial public offering price, less underwriting discounts and commissions. In total, HBT sold 9,429,794 shares of common stock in the initial public offering, raising total net proceeds, after deducting estimated underwriting discounts and commissions and offering expenses payable by the Company, of approximately $138 million.
On October 22, 2019, the Company paid a $170 million distribution to its pre-IPO stockholders, using the net proceeds of the initial public offering and the proceeds of dividends from Heartland Bank and Trust Company and State Bank of Lincoln.
About HBT Financial, Inc.
HBT Financial, Inc. is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company and State Bank of Lincoln. The banks provide a comprehensive suite of business, commercial, wealth management and retail banking products and services to businesses, families and local governments throughout Central and Northeastern Illinois through 64 branches. As of December 31, 2019, HBT had total assets of $3.2 billion, total loans of $2.2 billion, and total deposits of $2.8 billion. HBT is a longstanding Central Illinois company, with banking roots that can be traced back nearly 100 years.
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), originated loans and acquired loans, efficiency ratio (tax-equivalent basis), tangible common equity to tangible assets, adjusted C Corp equivalent net income, adjusted C Corp equivalent return on average assets, adjusted C Corp equivalent return on average stockholders' equity, and adjusted C Corp equivalent return on average tangible common equity. 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 includes "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, including but not limited to statements about the Company’s plans, objectives, future performance, goals, future earnings levels, and future loan growth. These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; risks relating to acquisitions; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. 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. 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" or "continue," 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.
CONTACT:
Matthew Keating
HBTIR@hbtbank.com
(310) 622-8230
| HBT Financial, Inc. | |||||||||||||||||||
| Consolidated Financial Summary | |||||||||||||||||||
| Consolidated Statements of Income | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||
| INTEREST AND DIVIDEND INCOME | |||||||||||||||||||
| Loans, including fees: | |||||||||||||||||||
| Taxable | $ | 28,039 | $ | 29,308 | $ | 29,886 | $ | 30,063 | $ | 28,625 | |||||||||
| Federally tax exempt | 716 | 684 | 736 | 710 | 704 | ||||||||||||||
| Securities: | |||||||||||||||||||
| Taxable | 3,559 | 3,572 | 3,801 | 3,922 | 3,655 | ||||||||||||||
| Federally tax exempt | 1,269 | 1,395 | 1,512 | 1,552 | 1,670 | ||||||||||||||
| Interest-bearing deposits in bank | 1,003 | 662 | 599 | 687 | 580 | ||||||||||||||
| Other interest and dividend income | 14 | 15 | 16 | 15 | 14 | ||||||||||||||
| Total interest and dividend income | 34,600 | 35,636 | 36,550 | 36,949 | 35,248 | ||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||
| Deposits | 1,838 | 2,000 | 2,111 | 1,983 | 1,672 | ||||||||||||||
| Securities sold under agreements to repurchase | 24 | 17 | 17 | 14 | 16 | ||||||||||||||
| Borrowings | 2 | — | 4 | 3 | 8 | ||||||||||||||
| Subordinated debentures | 460 | 478 | 487 | 497 | 476 | ||||||||||||||
| Total interest expense | 2,324 | 2,495 | 2,619 | 2,497 | 2,172 | ||||||||||||||
| Net interest income | 32,276 | 33,141 | 33,931 | 34,452 | 33,076 | ||||||||||||||
| PROVISION FOR LOAN LOSSES | 138 | 684 | 1,806 | 776 | 3,906 | ||||||||||||||
| Net interest income after provision for loan losses | 32,138 | 32,457 | 32,125 | 33,676 | 29,170 | ||||||||||||||
| NONINTEREST INCOME | |||||||||||||||||||
| Card income | 1,952 | 1,985 | 1,996 | 1,832 | 1,954 | ||||||||||||||
| Service charges on deposit accounts | 2,065 | 2,111 | 1,931 | 1,763 | 2,078 | ||||||||||||||
| Wealth management fees | 1,911 | 1,676 | 1,493 | 2,047 | 2,087 | ||||||||||||||
| Mortgage servicing | 801 | 795 | 818 | 729 | 861 | ||||||||||||||
| Mortgage servicing rights fair value adjustment | 582 | (860 | ) | (1,120 | ) | (1,002 | ) | 355 | |||||||||||
| Gains on sale of mortgage loans | 915 | 992 | 660 | 525 | 666 | ||||||||||||||
| Gains (losses) on securities | (47 | ) | (73 | ) | 36 | 79 | (2,813 | ) | |||||||||||
| Gains (losses) on foreclosed assets | 808 | (20 | ) | 169 | (17 | ) | (479 | ) | |||||||||||
| Gains (losses) on other assets | — | (29 | ) | 368 | 605 | 580 | |||||||||||||
| Title insurance activity | — | — | 38 | 129 | 276 | ||||||||||||||
| Other noninterest income | 1,349 | 1,005 | 957 | 797 | 864 | ||||||||||||||
| Total noninterest income | 10,336 | 7,582 | 7,346 | 7,487 | 6,429 | ||||||||||||||
| NONINTEREST EXPENSE | |||||||||||||||||||
| Salaries | 13,006 | 12,335 | 11,597 | 12,407 | 13,091 | ||||||||||||||
| Employee benefits | 1,250 | 2,224 | 4,731 | 1,359 | 1,522 | ||||||||||||||
| Occupancy of bank premises | 1,607 | 1,785 | 1,638 | 1,837 | 1,776 | ||||||||||||||
| Furniture and equipment | 763 | 545 | 716 | 789 | 693 | ||||||||||||||
| Data processing | 1,547 | 1,471 | 1,390 | 1,162 | 1,299 | ||||||||||||||
| Marketing and customer relations | 1,036 | 801 | 1,103 | 933 | 1,125 | ||||||||||||||
| Amortization of intangible assets | 336 | 335 | 376 | 376 | 390 | ||||||||||||||
| FDIC insurance | (237 | ) | 8 | 208 | 219 | 214 | |||||||||||||
| Loan collection and servicing | 732 | 547 | 612 | 742 | 720 | ||||||||||||||
| Foreclosed assets | 151 | 196 | 165 | 164 | 100 | ||||||||||||||
| Other noninterest expense | 1,759 | 2,056 | 2,025 | 2,224 | 2,510 | ||||||||||||||
| Total noninterest expense | 21,950 | 22,303 | 24,561 | 22,212 | 23,440 | ||||||||||||||
| INCOME BEFORE INCOME TAX EXPENSE | 20,524 | 17,736 | 14,910 | 18,951 | 12,159 | ||||||||||||||
| INCOME TAX EXPENSE | 4,437 | 299 | 305 | 215 | 239 | ||||||||||||||
| NET INCOME | $ | 16,087 | $ | 17,437 | $ | 14,605 | $ | 18,736 | $ | 11,920 | |||||||||
| EARNINGS PER SHARE - BASIC | $ | 0.61 | $ | 0.97 | $ | 0.81 | $ | 1.04 | $ | 0.66 | |||||||||
| EARNINGS PER SHARE - DILUTED | $ | 0.61 | $ | 0.97 | $ | 0.81 | $ | 1.04 | $ | 0.66 | |||||||||
| WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING | 26,211,282 | 18,027,512 | 18,027,512 | 18,027,512 | 18,027,512 | ||||||||||||||
| C CORP EQUIVALENT INFORMATION | |||||||||||||||||||
| Historical income before income tax expense | $ | 20,524 | $ | 17,736 | $ | 14,910 | $ | 18,951 | $ | 12,159 | |||||||||
| C Corp equivalent income tax expense | 5,436 | 4,614 | 3,784 | 4,915 | 2,965 | ||||||||||||||
| C Corp equivalent net income | $ | 15,088 | $ | 13,122 | $ | 11,126 | $ | 14,036 | $ | 9,194 | |||||||||
| C CORP EQUIVALENT EARNINGS PER SHARE - BASIC | $ | 0.58 | $ | 0.73 | $ | 0.62 | $ | 0.78 | $ | 0.51 | |||||||||
| C CORP EQUIVALENT EARNINGS PER SHARE - DILUTED | $ | 0.58 | $ | 0.73 | $ | 0.62 | $ | 0.78 | $ | 0.51 | |||||||||
| HBT Financial, Inc. | |||||||||||||||||||
| Consolidated Financial Summary | |||||||||||||||||||
| Consolidated Balance Sheets | |||||||||||||||||||
| As of | |||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| ASSETS | |||||||||||||||||||
| Cash and due from banks | $ | 22,112 | $ | 19,969 | $ | 17,151 | $ | 17,984 | $ | 21,343 | |||||||||
| Interest-bearing deposits with banks | 261,859 | 134,972 | 124,575 | 142,518 | 165,536 | ||||||||||||||
| Cash and cash equivalents | 283,971 | 154,941 | 141,726 | 160,502 | 186,879 | ||||||||||||||
| Interest-bearing time deposits with banks | 248 | 248 | 248 | 248 | 248 | ||||||||||||||
| Securities available-for-sale, at fair value | 592,404 | 618,120 | 651,967 | 681,233 | 679,526 | ||||||||||||||
| Securities held-to-maturity | 88,477 | 99,861 | 108,829 | 116,745 | 121,715 | ||||||||||||||
| Equity securities | 4,389 | 4,436 | 4,030 | 3,994 | 3,261 | ||||||||||||||
| Restricted stock, at cost | 2,425 | 2,425 | 2,425 | 2,719 | 2,719 | ||||||||||||||
| Loans held for sale | 4,531 | 7,608 | 5,303 | 2,496 | 2,800 | ||||||||||||||
| Loans, before allowance for loan losses | 2,163,826 | 2,171,014 | 2,203,096 | 2,183,322 | 2,144,257 | ||||||||||||||
| Allowance for loan losses | (22,299 | ) | (22,761 | ) | (22,542 | ) | (21,013 | ) | (20,509 | ) | |||||||||
| Loans, net of allowance for loan losses | 2,141,527 | 2,148,253 | 2,180,554 | 2,162,309 | 2,123,748 | ||||||||||||||
| Bank premises and equipment, net | 53,987 | 54,105 | 53,993 | 54,185 | 54,736 | ||||||||||||||
| Bank premises held for sale | 121 | 121 | 149 | 208 | 749 | ||||||||||||||
| Foreclosed assets | 5,099 | 6,574 | 9,707 | 10,151 | 9,559 | ||||||||||||||
| Goodwill | 23,620 | 23,620 | 23,620 | 23,620 | 23,620 | ||||||||||||||
| Core deposit intangible assets, net | 4,030 | 4,366 | 4,701 | 5,077 | 5,453 | ||||||||||||||
| Mortgage servicing rights, at fair value | 8,518 | 7,936 | 8,796 | 9,916 | 10,918 | ||||||||||||||
| Investments in unconsolidated subsidiaries | 1,165 | 1,165 | 1,165 | 1,165 | 1,165 | ||||||||||||||
| Accrued interest receivable | 13,951 | 14,816 | 14,609 | 15,256 | 15,300 | ||||||||||||||
| Other assets | 16,640 | 18,018 | 12,338 | 7,843 | 7,173 | ||||||||||||||
| Total assets | $ | 3,245,103 | $ | 3,166,613 | $ | 3,224,160 | $ | 3,257,667 | $ | 3,249,569 | |||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Deposits: | |||||||||||||||||||
| Noninterest-bearing | $ | 689,116 | $ | 649,316 | $ | 662,405 | $ | 661,527 | $ | 664,876 | |||||||||
| Interest-bearing | 2,087,739 | 2,054,742 | 2,111,363 | 2,159,916 | 2,131,094 | ||||||||||||||
| Total deposits | 2,776,855 | 2,704,058 | 2,773,768 | 2,821,443 | 2,795,970 | ||||||||||||||
| Securities sold under agreements to repurchase | 44,433 | 32,267 | 35,646 | 40,528 | 46,195 | ||||||||||||||
| Subordinated debentures | 37,583 | 37,566 | 37,550 | 37,533 | 37,517 | ||||||||||||||
| Other liabilities | 53,314 | 43,786 | 37,326 | 29,570 | 29,491 | ||||||||||||||
| Total liabilities | 2,912,185 | 2,817,677 | 2,884,290 | 2,929,074 | 2,909,173 | ||||||||||||||
| Stockholders' Equity | |||||||||||||||||||
| Common stock | 275 | 181 | 181 | 181 | 181 | ||||||||||||||
| Surplus | 190,524 | 32,288 | 32,288 | 32,288 | 32,288 | ||||||||||||||
| Retained earnings | 134,287 | 311,055 | 302,984 | 298,131 | 315,234 | ||||||||||||||
| Accumulated other comprehensive income (loss) | 7,832 | 8,431 | 7,436 | 1,012 | (4,288 | ) | |||||||||||||
| Less cost of treasury stock held | — | (3,019 | ) | (3,019 | ) | (3,019 | ) | (3,019 | ) | ||||||||||
| Total stockholders’ equity | 332,918 | 348,936 | 339,870 | 328,593 | 340,396 | ||||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,245,103 | $ | 3,166,613 | $ | 3,224,160 | $ | 3,257,667 | $ | 3,249,569 | |||||||||
| SHARE INFORMATION | |||||||||||||||||||
| Ending number shares of common stock outstanding | 27,457,306 | 18,027,512 | 18,027,512 | 18,027,512 | 18,027,512 | ||||||||||||||
| HBT Financial, Inc. | ||||||||||||||
| Consolidated Financial Summary | ||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | ||||||||||
| (dollars in thousands) | ||||||||||||||
| LOANS | ||||||||||||||
| Commercial and industrial | $ | 307,175 | $ | 340,650 | $ | 352,326 | $ | 363,918 | $ | 360,501 | ||||
| Agricultural and farmland | 207,776 | 205,041 | 208,923 | 207,817 | 209,875 | |||||||||
| Commercial real estate - owner occupied | 231,162 | 239,805 | 244,954 | 250,274 | 255,074 | |||||||||
| Commercial real estate - non-owner occupied | 579,757 | 552,262 | 543,444 | 556,386 | 533,910 | |||||||||
| Multi-family | 179,073 | 191,646 | 191,734 | 146,374 | 135,925 | |||||||||
| Construction and land development | 224,887 | 210,939 | 236,902 | 223,489 | 237,275 | |||||||||
| One-to-four family residential | 313,580 | 321,947 | 323,135 | 321,224 | 313,108 | |||||||||
| Municipal, consumer, and other | 120,416 | 108,724 | 101,678 | 113,840 | 98,589 | |||||||||
| Total loans, before allowance for loan losses | $ | 2,163,826 | $ | 2,171,014 | $ | 2,203,096 | $ | 2,183,322 | $ | 2,144,257 | ||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | ||||||||||
| (dollars in thousands) | ||||||||||||||
| DEPOSITS | ||||||||||||||
| Noninterest-bearing | $ | 689,116 | $ | 649,316 | $ | 662,405 | $ | 661,527 | $ | 664,876 | ||||
| Interest-bearing demand | 814,639 | 800,471 | 815,770 | 819,313 | 856,919 | |||||||||
| Money market | 477,765 | 463,444 | 472,738 | 453,117 | 427,730 | |||||||||
| Savings | 438,927 | 426,707 | 428,439 | 435,353 | 421,698 | |||||||||
| Time | 356,408 | 364,120 | 394,416 | 452,133 | 424,747 | |||||||||
| Total deposits | $ | 2,776,855 | $ | 2,704,058 | $ | 2,773,768 | $ | 2,821,443 | $ | 2,795,970 | ||||
| HBT Financial, Inc. | |||||||||||||||||||||||||||||
| Consolidated Financial Summary | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| December 31, 2019 | September 30, 2019 | December 31, 2018 | |||||||||||||||||||||||||||
| Average | * | Average | * | Average | * | ||||||||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | |||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Loans | $ | 2,162,975 | $ | 28,755 | 5.32 | % | $ | 2,191,230 | $ | 29,992 | 5.47 | % | $ | 2,138,839 | $ | 29,329 | 5.48 | % | |||||||||||
| Securities | 700,441 | 4,828 | 2.76 | % | 745,532 | 4,967 | 2.67 | % | 812,469 | 5,325 | 2.62 | % | |||||||||||||||||
| Deposits with banks | 265,237 | 1,003 | 1.51 | % | 136,635 | 662 | 1.94 | % | 132,614 | 580 | 1.75 | % | |||||||||||||||||
| Other | 2,425 | 14 | 2.39 | % | 2,425 | 15 | 2.37 | % | 2,719 | 14 | 2.20 | % | |||||||||||||||||
| Total interest-earning assets | 3,131,078 | $ | 34,600 | 4.42 | % | 3,075,822 | $ | 35,636 | 4.63 | % | 3,086,641 | $ | 35,248 | 4.57 | % | ||||||||||||||
| Allowance for loan losses | (22,766 | ) | (22,326 | ) | (20,863 | ) | |||||||||||||||||||||||
| Noninterest-earning assets | 152,961 | 149,146 | 151,767 | ||||||||||||||||||||||||||
| Total assets | $ | 3,261,273 | $ | 3,202,642 | $ | 3,217,545 | |||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 820,390 | $ | 299 | 0.15 | % | $ | 812,526 | $ | 347 | 0.17 | % | $ | 820,754 | $ | 414 | 0.20 | % | |||||||||||
| Money market | 486,288 | 481 | 0.40 | % | 468,139 | 497 | 0.42 | % | 426,864 | 194 | 0.18 | % | |||||||||||||||||
| Savings | 434,241 | 71 | 0.07 | % | 428,447 | 70 | 0.07 | % | 424,011 | 70 | 0.07 | % | |||||||||||||||||
| Time | 359,731 | 987 | 1.10 | % | 383,070 | 1,086 | 1.13 | % | 432,902 | 994 | 0.92 | % | |||||||||||||||||
| Total interest-bearing deposits | 2,100,650 | 1,838 | 0.35 | % | 2,092,182 | 2,000 | 0.38 | % | 2,104,531 | 1,672 | 0.32 | % | |||||||||||||||||
| Securities sold under agreements to repurchase | 46,028 | 24 | 0.21 | % | 35,757 | 17 | 0.19 | % | 49,907 | 16 | 0.13 | % | |||||||||||||||||
| Borrowings | 272 | 2 | 2.60 | % | 33 | — | 2.42 | % | 1,326 | 8 | 2.40 | % | |||||||||||||||||
| Subordinated debentures | 37,577 | 460 | 4.90 | % | 37,561 | 478 | 5.09 | % | 37,512 | 476 | 5.08 | % | |||||||||||||||||
| Total interest-bearing liabilities | 2,184,527 | $ | 2,324 | 0.43 | % | 2,165,533 | $ | 2,495 | 0.46 | % | 2,193,276 | $ | 2,172 | 0.40 | % | ||||||||||||||
| Noninterest-bearing deposits | 699,373 | 651,085 | 659,009 | ||||||||||||||||||||||||||
| Noninterest-bearing liabilities | 45,589 | 37,274 | 28,146 | ||||||||||||||||||||||||||
| Total liabilities | 2,929,489 | 2,853,892 | 2,880,431 | ||||||||||||||||||||||||||
| Stockholders' Equity | 331,784 | 348,750 | 337,114 | ||||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,261,273 | $ | 3,202,642 | $ | 3,217,545 | |||||||||||||||||||||||
| Net interest income/Net interest margin (3) | $ | 32,276 | 4.12 | % | $ | 33,141 | 4.31 | % | $ | 33,076 | 4.29 | % | |||||||||||||||||
| Tax-equivalent adjustment (2) | 534 | 0.07 | % | 559 | 0.07 | % | 641 | 0.08 | % | ||||||||||||||||||||
| Net interest income (tax-equivalent basis)/Net interest margin (tax-equivalent basis) (1) (2) | $ | 32,810 | 4.19 | % | $ | 33,700 | 4.38 | % | $ | 33,717 | 4.37 | % | |||||||||||||||||
| Net interest rate spread (4) | 3.99 | % | 4.17 | % | 4.17 | % | |||||||||||||||||||||||
| Net interest-earning assets (5) | $ | 946,551 | $ | 910,289 | $ | 893,365 | |||||||||||||||||||||||
| Ratio of interest-earning assets to interest- bearing liabilities | 1.43 | 1.42 | 1.41 | ||||||||||||||||||||||||||
| Cost of deposits | 0.26 | % | 0.29 | % | 0.24 | % | |||||||||||||||||||||||
_____________________
* Annualized measure.
(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.
(2) On a C Corp tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.
(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. | |||||||||||||||||||
| Consolidated Financial Summary | |||||||||||||||||||
| Year Ended | |||||||||||||||||||
| December 31, 2019 | December 31, 2018 | ||||||||||||||||||
| Average | Average | ||||||||||||||||||
| Balance | Interest | Yield/Cost | Balance | Interest | Yield/Cost | ||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| ASSETS | |||||||||||||||||||
| Loans | $ | 2,178,897 | $ | 120,142 | 5.51 | % | $ | 2,131,512 | $ | 114,034 | 5.35 | % | |||||||
| Securities | 759,479 | 20,582 | 2.71 | % | 860,804 | 21,613 | 2.51 | % | |||||||||||
| Deposits with banks | 164,986 | 2,951 | 1.79 | % | 114,202 | 1,717 | 1.50 | % | |||||||||||
| Other | 2,501 | 60 | 2.41 | % | 2,771 | 68 | 2.47 | % | |||||||||||
| Total interest-earning assets | 3,105,863 | $ | 143,735 | 4.63 | % | 3,109,289 | $ | 137,432 | 4.42 | % | |||||||||
| Allowance for loan losses | (21,704 | ) | (20,046 | ) | |||||||||||||||
| Noninterest-earning assets | 149,227 | 158,355 | |||||||||||||||||
| Total assets | $ | 3,233,386 | $ | 3,247,598 | |||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||
| Interest-bearing demand | $ | 821,480 | $ | 1,474 | 0.18 | % | $ | 824,910 | $ | 1,378 | 0.17 | % | |||||||
| Money market | 463,233 | 1,837 | 0.40 | % | 442,872 | 685 | 0.15 | % | |||||||||||
| Savings | 430,220 | 278 | 0.06 | % | 433,661 | 283 | 0.07 | % | |||||||||||
| Time | 396,560 | 4,343 | 1.10 | % | 442,569 | 3,541 | 0.80 | % | |||||||||||
| Total interest-bearing deposits | 2,111,493 | 7,932 | 0.38 | % | 2,144,012 | 5,887 | 0.27 | % | |||||||||||
| Securities sold under agreements to repurchase | 41,177 | 72 | 0.18 | % | 40,725 | 48 | 0.12 | % | |||||||||||
| Borrowings | 351 | 9 | 2.60 | % | 14,946 | 260 | 1.74 | % | |||||||||||
| Subordinated debentures | 37,553 | 1,922 | 5.12 | % | 37,487 | 1,795 | 4.79 | % | |||||||||||
| Total interest-bearing liabilities | 2,190,574 | $ | 9,935 | 0.45 | % | 2,237,170 | $ | 7,990 | 0.36 | % | |||||||||
| Noninterest-bearing deposits | 666,055 | 653,885 | |||||||||||||||||
| Noninterest-bearing liabilities | 35,213 | 26,329 | |||||||||||||||||
| Total liabilities | 2,891,842 | 2,917,384 | |||||||||||||||||
| Stockholders' Equity | 341,544 | 330,214 | |||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 3,233,386 | $ | 3,247,598 | |||||||||||||||
| Net interest income/Net interest margin (3) | $ | 133,800 | 4.31 | % | $ | 129,442 | 4.16 | % | |||||||||||
| Tax-equivalent adjustment (2) | 2,309 | 0.07 | % | 2,661 | 0.09 | % | |||||||||||||
| Net interest income (tax-equivalent basis)/Net interest margin (tax-equivalent basis) (1) (2) | $ | 136,109 | 4.38 | % | $ | 132,103 | 4.25 | % | |||||||||||
| Net interest rate spread (4) | 4.18 | % | 4.06 | % | |||||||||||||||
| Net interest-earning assets (5) | $ | 915,289 | $ | 872,119 | |||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 1.42 | 1.39 | |||||||||||||||||
| Cost of deposits | 0.29 | % | 0.21 | % | |||||||||||||||
_____________________
(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.
(2) On a C Corp tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3) Net interest margin represents net interest income divided by average total interest-earning assets.
(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. | |||||||||||||||||||
| Consolidated Financial Summary | |||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| NONPERFORMING ASSETS | |||||||||||||||||||
| Nonaccrual | $ | 19,019 | $ | 18,977 | $ | 25,051 | 13,877 | 15,876 | |||||||||||
| Past due 90 days or more, still accruing (1) | 30 | 95 | 2 | 53 | 37 | ||||||||||||||
| Total nonperforming loans | 19,049 | 19,072 | 25,053 | 13,930 | 15,913 | ||||||||||||||
| Foreclosed assets | 5,099 | 6,574 | 9,707 | 10,151 | 9,559 | ||||||||||||||
| Total nonperforming assets | $ | 24,148 | $ | 25,646 | $ | 34,760 | $ | 24,081 | $ | 25,472 | |||||||||
| NONPERFORMING ASSETS (Originated) (2) | |||||||||||||||||||
| Nonaccrual | $ | 10,811 | $ | 11,268 | $ | 15,985 | 8,619 | 10,329 | |||||||||||
| Past due 90 days or more, still accruing | 30 | 95 | 2 | 53 | 37 | ||||||||||||||
| Total nonperforming loans | 10,841 | 11,363 | 15,987 | 8,672 | 10,366 | ||||||||||||||
| Foreclosed assets | 1,022 | 1,048 | 1,510 | 1,439 | 1,395 | ||||||||||||||
| Total nonperforming (originated) | $ | 11,863 | $ | 12,411 | $ | 17,497 | $ | 10,111 | $ | 11,761 | |||||||||
| NONPERFORMING ASSETS (Acquired) (2) | |||||||||||||||||||
| Nonaccrual | $ | 8,208 | $ | 7,709 | $ | 9,066 | $ | 5,258 | $ | 5,547 | |||||||||
| Past due 90 days or more, still accruing (1) | — | — | — | — | — | ||||||||||||||
| Total nonperforming loans | 8,208 | 7,709 | 9,066 | 5,258 | 5,547 | ||||||||||||||
| Foreclosed assets | 4,077 | 5,526 | 8,197 | 8,712 | 8,164 | ||||||||||||||
| Total nonperforming assets (acquired) | $ | 12,285 | $ | 13,235 | $ | 17,263 | $ | 13,970 | $ | 13,711 | |||||||||
| Allowance for loan losses | $ | 22,299 | $ | 22,761 | $ | 22,542 | $ | 21,013 | $ | 20,509 | |||||||||
| Total loans, before allowance for loan losses | 2,163,826 | 2,171,014 | 2,203,096 | 2,183,322 | 2,144,257 | ||||||||||||||
| Total loans, before allowance for loan losses (originated) (2) | 1,998,496 | 1,987,265 | 2,005,250 | 1,974,840 | 1,923,859 | ||||||||||||||
| Total loans, before allowance for loan losses (acquired) (2) | 165,330 | 183,749 | 197,846 | 208,482 | 220,398 | ||||||||||||||
| CREDIT QUALITY RATIOS | |||||||||||||||||||
| Allowance for loan losses to total loans, before allowance for loan losses | 1.03 | % | 1.05 | % | 1.02 | % | 0.96 | % | 0.96 | % | |||||||||
| Allowance for loan losses to nonperforming loans | 117.06 | % | 119.34 | % | 89.98 | % | 150.85 | % | 128.88 | % | |||||||||
| Nonperforming loans to total loans, before allowance for loan losses | 0.88 | % | 0.88 | % | 1.14 | % | 0.64 | % | 0.74 | % | |||||||||
| Nonperforming assets to total assets | 0.74 | % | 0.81 | % | 1.08 | % | 0.74 | % | 0.78 | % | |||||||||
| Nonperforming assets to total loans, before allowance for loan losses and foreclosed assets | 1.11 | % | 1.18 | % | 1.57 | % | 1.10 | % | 1.18 | % | |||||||||
| CREDIT QUALITY RATIOS (Originated) (2) | |||||||||||||||||||
| Nonperforming loans to total loans, before allowance for loan losses | 0.54 | % | 0.57 | % | 0.80 | % | 0.44 | % | 0.54 | % | |||||||||
| Nonperforming assets to total loans, before allowance for loan losses and foreclosed assets | 0.59 | % | 0.62 | % | 0.87 | % | 0.51 | % | 0.61 | % | |||||||||
| CREDIT QUALITY RATIOS (Acquired) (2) | |||||||||||||||||||
| Nonperforming loans to total loans, before allowance for loan losses | 4.96 | % | 4.20 | % | 4.58 | % | 2.52 | % | 2.52 | % | |||||||||
| Nonperforming assets to total loans, before allowance for loan losses and foreclosed assets | 7.25 | % | 6.99 | % | 8.38 | % | 6.43 | % | 6.00 | % | |||||||||
_____________________
(1) Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $0.1 million, $0.7 million, $0.5 million, $2.5 million, and $2.7 million as of December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively.
(2) Originated loans and acquired loans along with the related credit quality ratios such as net charge-offs to average loans (originated and acquired), nonperforming loans to total loans (originated and acquired), and nonperforming assets to total loans and foreclosed assets (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by Heartland Bank and Trust Company or State Bank of Lincoln. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures.
| HBT Financial, Inc. | |||||||||||||||||||||||||||
| Consolidated Financial Summary | |||||||||||||||||||||||||||
| Three Months Ended | Year Ended | ||||||||||||||||||||||||||
| December 31, | September 30, | June 30, | March 31, | December 31, | December 31, | December 31, | |||||||||||||||||||||
| 2019 | 2019 | 2019 | 2019 | 2018 | 2019 | 2018 | |||||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||||||||||
| ALLOWANCE FOR LOAN LOSSES | |||||||||||||||||||||||||||
| Beginning balance | $ | 22,761 | $ | 22,542 | $ | 21,013 | $ | 20,509 | $ | 21,171 | $ | 20,509 | $ | 19,765 | |||||||||||||
| Provision | 138 | 684 | 1,806 | 776 | 3,906 | 3,404 | 5,697 | ||||||||||||||||||||
| Charge-offs | (837 | ) | (937 | ) | (966 | ) | (533 | ) | (4,953 | ) | (3,273 | ) | (6,485 | ) | |||||||||||||
| Recoveries | 237 | 472 | 689 | 261 | 385 | 1,659 | 1,532 | ||||||||||||||||||||
| Ending balance | $ | 22,299 | $ | 22,761 | $ | 22,542 | $ | 21,013 | $ | 20,509 | $ | 22,299 | $ | 20,509 | |||||||||||||
| Net charge-offs (recoveries) | $ | 600 | $ | 465 | $ | 277 | $ | 272 | $ | 4,568 | $ | 1,614 | $ | 4,953 | |||||||||||||
| Net charge-offs (recoveries) - (originated) (1) | 550 | 224 | (238 | ) | 196 | 2,778 | 732 | 3,137 | |||||||||||||||||||
| Net charge-offs (recoveries) - (acquired) (1) | 50 | 241 | 515 | 76 | 1,790 | 882 | 1,816 | ||||||||||||||||||||
| Net charge-offs to average total loans, before allowance for loan losses * | 0.11 | % | 0.08 | % | 0.05 | % | 0.05 | % | 0.85 | % | 0.07 | % | 0.23 | % | |||||||||||||
| Net charge-offs to average total loans, before allowance for loan losses (originated) * (1) | 0.11 | % | 0.04 | % | -0.05 | % | 0.04 | % | 0.58 | % | 0.04 | % | 0.17 | % | |||||||||||||
| Net charge-offs to average total loans, before allowance for loan losses (acquired) * (1) | 0.11 | % | 0.51 | % | 1.00 | % | 0.14 | % | 3.10 | % | 0.45 | % | 0.70 | % | |||||||||||||
| Average total loans, before allowance for loan losses | $ | 2,162,975 | $ | 2,191,230 | $ | 2,196,934 | $ | 2,164,330 | $ | 2,138,839 | $ | 2,178,897 | $ | 2,131,512 | |||||||||||||
| Average total loans, before allowance for loan losses (originated) (1) | 1,988,658 | 2,001,803 | 1,990,015 | 1,946,035 | 1,907,503 | 1,981,658 | 1,873,623 | ||||||||||||||||||||
| Average total loans, before allowance for loan losses (acquired) (1) | 174,317 | 189,427 | 206,919 | 218,295 | 231,336 | 197,240 | 257,889 | ||||||||||||||||||||
_____________________
* Annualized measure.
(1) Originated loans and acquired loans along with the related credit quality ratios such as net charge-offs to average loans (originated and acquired), nonperforming loans to total loans (originated and acquired), and nonperforming assets to total loans and foreclosed assets (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by Heartland Bank and Trust Company or State Bank of Lincoln. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures.
| HBT Financial, Inc. | |||||||||||||||||||
| Consolidated Financial Summary | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||
| EARNINGS AND PER SHARE INFORMATION | |||||||||||||||||||
| Net income | $ | 16,087 | $ | 17,437 | $ | 14,605 | $ | 18,736 | $ | 11,920 | |||||||||
| Earnings per share - Basic and diluted | 0.61 | 0.97 | 0.81 | 1.04 | 0.66 | ||||||||||||||
| C Corp equivalent net income (1) | $ | 15,088 | $ | 13,122 | $ | 11,126 | $ | 14,036 | $ | 9,194 | |||||||||
| C Corp equivalent earnings per share - Basic and diluted (1) | 0.58 | 0.73 | 0.62 | 0.78 | 0.51 | ||||||||||||||
| Ending number shares of common stock outstanding | 27,457,306 | 18,027,512 | 18,027,512 | 18,027,512 | 18,027,512 | ||||||||||||||
| Weighted average shares of common stock outstanding | 26,211,282 | 18,027,512 | 18,027,512 | 18,027,512 | 18,027,512 | ||||||||||||||
| PERFORMANCE RATIOS | |||||||||||||||||||
| Return on average assets * | 1.97 | % | 2.18 | % | 1.81 | % | 2.32 | % | 1.48 | % | |||||||||
| Return on average stockholders' equity * | 19.39 | % | 20.00 | % | 17.25 | % | 21.59 | % | 14.14 | % | |||||||||
| Net interest margin * | 4.12 | % | 4.31 | % | 4.36 | % | 4.44 | % | 4.29 | % | |||||||||
| Efficiency ratio | 50.72 | % | 53.94 | % | 58.59 | % | 52.07 | % | 58.35 | % | |||||||||
| C Corp equivalent return on average assets * (1) | 1.85 | % | 1.64 | % | 1.38 | % | 1.74 | % | 1.14 | % | |||||||||
| C Corp equivalent return on average stockholders' equity * (1) | 18.19 | % | 15.05 | % | 13.14 | % | 16.17 | % | 10.91 | % | |||||||||
| NON-GAAP FINANCIAL MEASURES | |||||||||||||||||||
| Adjusted C Corp equivalent net income (2) | $ | 14,417 | $ | 14,343 | $ | 14,308 | $ | 14,359 | $ | 10,874 | |||||||||
| Adjusted C Corp equivalent earnings per share - Basic and diluted (2) | 0.55 | 0.80 | 0.79 | 0.80 | 0.60 | ||||||||||||||
| Net interest margin (tax equivalent basis) * (2) | 4.19 | % | 4.38 | % | 4.44 | % | 4.52 | % | 4.37 | % | |||||||||
| Efficiency ratio (tax equivalent basis) (2) | 50.10 | % | 53.21 | % | 57.74 | % | 51.32 | % | 57.42 | % | |||||||||
| Adjusted C Corp equivalent return on average assets * (2) | 1.77 | % | 1.79 | % | 1.77 | % | 1.78 | % | 1.35 | % | |||||||||
| Adjusted C Corp equivalent return on average stockholders' equity * (2) | 17.38 | % | 16.45 | % | 16.90 | % | 16.54 | % | 12.90 | % | |||||||||
| Return on average tangible common equity * (2) | 21.17 | % | 21.76 | % | 18.84 | % | 23.55 | % | 15.49 | % | |||||||||
| C Corp equivalent return on average tangible common equity * (1) (2) | 19.86 | % | 16.37 | % | 14.35 | % | 17.64 | % | 11.95 | % | |||||||||
| Adjusted C Corp equivalent return on average tangible common equity * (2) | 18.97 | % | 17.90 | % | 18.46 | % | 18.05 | % | 14.13 | % | |||||||||
_____________________
* Annualized measure.
(1) Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period.
(2) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.
| Reconciliation of Non-GAAP Financial Measures – | |||||||||||||||||||
| Adjusted C Corp Equivalent Net Income and Adjusted C Corp Equivalent Return on Average Assets | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||
| (dollars in thousands, except per share amounts) | |||||||||||||||||||
| Net income | $ | 16,087 | $ | 17,437 | $ | 14,605 | $ | 18,736 | $ | 11,920 | |||||||||
| C Corp equivalent net income (1) | $ | 15,088 | $ | 13,122 | $ | 11,126 | $ | 14,036 | $ | 9,194 | |||||||||
| Adjustments: | |||||||||||||||||||
| Net earnings (losses) from closed or sold operations, including gains on sale (2) | (9 | ) | (3 | ) | (14 | ) | 550 | 98 | |||||||||||
| Charges related to termination of certain employee benefit plans | 365 | (845 | ) | (3,316 | ) | — | — | ||||||||||||
| Realized gains (losses) on sales of securities | — | — | — | — | (2,803 | ) | |||||||||||||
| Mortgage servicing rights fair value adjustment | 582 | (860 | ) | (1,120 | ) | (1,002 | ) | 355 | |||||||||||
| Total adjustments | 938 | (1,708 | ) | (4,450 | ) | (452 | ) | (2,350 | ) | ||||||||||
| C Corp equivalent tax effect of adjustments | (267 | ) | 487 | 1,268 | 129 | 670 | |||||||||||||
| Less adjustments after C Corp equivalent tax effect | 671 | (1,221 | ) | (3,182 | ) | (323 | ) | (1,680 | ) | ||||||||||
| Adjusted C Corp equivalent net income | $ | 14,417 | $ | 14,343 | $ | 14,308 | $ | 14,359 | $ | 10,874 | |||||||||
| Average assets | $ | 3,261,273 | $ | 3,202,642 | $ | 3,236,353 | $ | 3,233,293 | $ | 3,217,545 | |||||||||
| Return on average assets * | 1.97 | % | 2.18 | % | 1.81 | % | 2.32 | % | 1.48 | % | |||||||||
| C Corp equivalent return on average assets * (1) | 1.85 | % | 1.64 | % | 1.38 | % | 1.74 | % | 1.14 | % | |||||||||
| Adjusted C Corp equivalent return on average assets * | 1.77 | % | 1.79 | % | 1.77 | % | 1.78 | % | 1.35 | % | |||||||||
| Weighted average shares of common stock outstanding | 26,211,282 | 18,027,512 | 18,027,512 | 18,027,512 | 18,027,512 | ||||||||||||||
| Earnings per share - Basic and Diluted | $ | 0.61 | $ | 0.97 | $ | 0.81 | $ | 1.04 | $ | 0.66 | |||||||||
| C Corp equivalent Earnings per share - Basic and Diluted (1) | 0.58 | 0.73 | 0.62 | 0.78 | 0.51 | ||||||||||||||
| Adjusted C Corp equivalent earnings per share - Basic and diluted | 0.55 | 0.80 | 0.79 | 0.80 | 0.60 | ||||||||||||||
_____________________
* Annualized measure.
(1) Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period.
(2) Closed or sold operations include HB Credit Company, HBT Insurance, and First Community Title Services, Inc.
| Reconciliation of Non-GAAP Financial Measures - Net Interest Margin (Tax Equivalent Basis) | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| Net interest income (tax equivalent basis) | |||||||||||||||||||
| Net interest income | $ | 32,276 | $ | 33,141 | $ | 33,931 | $ | 34,452 | $ | 33,076 | |||||||||
| Tax-equivalent adjustment (1) | 534 | 559 | 606 | 610 | 641 | ||||||||||||||
| Net interest income (tax equivalent basis) (1) | $ | 32,810 | $ | 33,700 | $ | 34,537 | $ | 35,062 | $ | 33,717 | |||||||||
| Net interest margin (tax equivalent basis) | |||||||||||||||||||
| Net interest margin * | 4.12 | % | 4.31 | % | 4.36 | % | 4.44 | % | 4.29 | % | |||||||||
| Tax-equivalent adjustment * (1) | 0.07 | % | 0.07 | % | 0.08 | % | 0.08 | % | 0.08 | % | |||||||||
| Net interest margin (tax equivalent basis) * (1) | 4.19 | % | 4.38 | % | 4.44 | % | 4.52 | % | 4.37 | % | |||||||||
| Average interest-earning assets | $ | 3,131,078 | $ | 3,075,822 | $ | 3,111,395 | $ | 3,105,216 | $ | 3,086,641 | |||||||||
| Year Ended | |||||||||||||||||||
| December 31, 2019 | December 31, 2018 | ||||||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| Net interest income (tax equivalent basis) | |||||||||||||||||||
| Net interest income | $ | 133,800 | $ | 129,442 | |||||||||||||||
| Tax-equivalent adjustment (1) | 2,309 | 2,661 | |||||||||||||||||
| Net interest income (tax equivalent basis) (1) | $ | 136,109 | $ | 132,103 | |||||||||||||||
| Net interest margin (tax equivalent basis) | |||||||||||||||||||
| Net interest margin * | 4.31 | % | 4.16 | % | |||||||||||||||
| Tax-equivalent adjustment * (1) | 0.07 | % | 0.09 | % | |||||||||||||||
| Net interest margin (tax equivalent basis) * (1) | 4.38 | % | 4.25 | % | |||||||||||||||
| Average interest-earning assets | $ | 3,105,863 | $ | 3,109,289 | |||||||||||||||
_____________________
* Annualized measure.
(1) On a C Corp 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 | |||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| Efficiency ratio (tax equivalent basis) | |||||||||||||||||||
| Total noninterest expense | $ | 21,950 | $ | 22,303 | $ | 24,561 | $ | 22,212 | $ | 23,440 | |||||||||
| Less: amortization of intangible assets | 336 | 335 | 376 | 376 | 390 | ||||||||||||||
| Adjusted noninterest expense | $ | 21,614 | $ | 21,968 | $ | 24,185 | $ | 21,836 | $ | 23,050 | |||||||||
| Net interest income | $ | 32,276 | $ | 33,141 | $ | 33,931 | $ | 34,452 | $ | 33,076 | |||||||||
| Total noninterest income | 10,336 | 7,582 | 7,346 | 7,487 | 6,429 | ||||||||||||||
| Operating revenue | 42,612 | 40,723 | 41,277 | 41,939 | 39,505 | ||||||||||||||
| Tax-equivalent adjustment (1) | 534 | 559 | 606 | 610 | 641 | ||||||||||||||
| Operating revenue (tax-equivalent basis) (1) | $ | 43,146 | $ | 41,282 | $ | 41,883 | $ | 42,549 | $ | 40,146 | |||||||||
| Efficiency ratio | 50.72 | % | 53.94 | % | 58.59 | % | 52.07 | % | 58.35 | % | |||||||||
| Efficiency ratio (tax equivalent basis) (1) | 50.10 | % | 53.21 | % | 57.74 | % | 51.32 | % | 57.42 | % | |||||||||
_____________________
(1) On a C Corp 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 - Tangible Common Equity to Tangible Assets | |||||||||||||||||||
| As of | |||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| Tangible Common Equity | |||||||||||||||||||
| Total stockholders' equity | $ | 332,918 | $ | 348,936 | $ | 339,870 | $ | 328,593 | $ | 340,396 | |||||||||
| Less: Goodwill | 23,620 | 23,620 | 23,620 | 23,620 | 23,620 | ||||||||||||||
| Less: Core deposit intangible assets, net | 4,030 | 4,366 | 4,701 | 5,077 | 5,453 | ||||||||||||||
| Tangible common equity | $ | 305,268 | $ | 320,950 | $ | 311,549 | $ | 299,896 | $ | 311,323 | |||||||||
| Tangible Assets | |||||||||||||||||||
| Total assets | $ | 3,245,103 | $ | 3,166,613 | $ | 3,224,160 | $ | 3,257,667 | $ | 3,249,569 | |||||||||
| Less: Goodwill | 23,620 | 23,620 | 23,620 | 23,620 | 23,620 | ||||||||||||||
| Less: Core deposit intangible assets, net | 4,030 | 4,366 | 4,701 | 5,077 | 5,453 | ||||||||||||||
| Tangible assets | $ | 3,217,453 | $ | 3,138,627 | $ | 3,195,839 | $ | 3,228,970 | $ | 3,220,496 | |||||||||
| Total stockholders' equity to total assets | 10.26 | % | 11.02 | % | 10.54 | % | 10.09 | % | 10.48 | % | |||||||||
| Tangible common equity to tangible assets | 9.49 | % | 10.23 | % | 9.75 | % | 9.29 | % | 9.67 | % | |||||||||
| Reconciliation of Non-GAAP Financial Measures - Adjusted C Corp Equivalent Return on Average Stockholders' Equity and Adjusted C Corp Equivalent Return on Tangible Common Equity | |||||||||||||||||||
| Three Months Ended | |||||||||||||||||||
| December 31, 2019 | September 30, 2019 | June 30, 2019 | March 31, 2019 | December 31, 2018 | |||||||||||||||
| (dollars in thousands) | |||||||||||||||||||
| Average Tangible Common Equity | |||||||||||||||||||
| Total stockholders' equity | $ | 331,784 | $ | 348,750 | $ | 338,613 | $ | 347,157 | $ | 337,114 | |||||||||
| Less: Goodwill | 23,620 | 23,620 | 23,620 | 23,620 | 23,620 | ||||||||||||||
| Less: Core deposit intangible assets, net | 4,224 | 4,561 | 4,919 | 5,301 | 5,663 | ||||||||||||||
| Average tangible common equity | $ | 303,940 | $ | 320,569 | $ | 310,074 | $ | 318,236 | $ | 307,831 | |||||||||
| Net income | $ | 16,087 | $ | 17,437 | $ | 14,605 | $ | 18,736 | $ | 11,920 | |||||||||
| C Corp equivalent net income (1) | 15,088 | 13,122 | 11,126 | 14,036 | 9,194 | ||||||||||||||
| Adjusted C Corp equivalent net income | 14,417 | 14,343 | 14,308 | 14,359 | 10,874 | ||||||||||||||
| Return on average stockholders' equity * | 19.39 | % | 20.00 | % | 17.25 | % | 21.59 | % | 14.14 | % | |||||||||
| C Corp equivalent return on average stockholders' equity * (1) | 18.19 | % | 15.05 | % | 13.14 | % | 16.17 | % | 10.91 | % | |||||||||
| Adjusted C Corp equivalent return on average stockholders' equity (1) | 17.38 | % | 16.45 | % | 16.90 | % | 16.54 | % | 12.90 | % | |||||||||
| Return on average tangible common equity * | 21.17 | % | 21.76 | % | 18.84 | % | 23.55 | % | 15.49 | % | |||||||||
| C Corp equivalent return on average tangible common equity * (1) | 19.86 | % | 16.37 | % | 14.35 | % | 17.64 | % | 11.95 | % | |||||||||
| Adjusted C Corp equivalent return on average tangible common equity * | 18.97 | % | 17.90 | % | 18.46 | % | 18.05 | % | 14.13 | % | |||||||||
_____________________
* Annualized measure.
(1) Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period.