UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8 - K

CURRENT REPORT PURSUANT TO

SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): October 26, 2020

HBT FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Delaware

001-39085

37-1117216

(State or other jurisdiction
of incorporation)

(Commission File Number)

(IRS Employer
Identification Number)

401 North Hershey Road
Bloomington, Illinois

61704

(Address of principal executive
offices)

(Zip Code)

(888) 897-2276

(Registrant’s telephone number, including area code)

N/A

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions ( see General Instruction A.2. below):

Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

HBT

The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).

Emerging growth company

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.


Item 2.02 Results of Operations and Financial Condition.

On October 26, 2020, HBT Financial, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended and nine months ended September 30, 2020 (the “Earnings Release”). A copy of the Earnings Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”).

The information set forth under Item 7.01 is also furnished pursuant to this Item 2.02

Item 7.01 Regulation FD Disclosure.

The Company has prepared a presentation of its results for the third quarter ended September 30, 2020 (the “Presentation”) to be used from time to time during meetings with members of the investment community. A copy of the Presentation is furnished as Exhibit 99.2 to this Report. The Presentation will also be made available on the Company’s investor relations website at ir.hbtfinancial.com under the Presentations section.

The information contained in Items 2.02 and 7.01, including Exhibits 99.1 and 99.2 furnished herewith, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference into any registration statement or other documents pursuant to the Securities Act of 1933, as amended, or into any filing or other document pursuant to the Exchange Act, except as shall be expressly set forth by specific reference in such filing.

Item 9.01. Financial Statements and Exhibits.

Exhibit Number

Description of Exhibit

99.1

Earnings Release issued October 26, 2020 for the Third Quarter Ended and Nine Months Ended September 30, 2020.

99.2

HBT Financial, Inc. Presentation of Results for the Third Quarter Ended September 30, 2020.


SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

HBT FINANCIAL, INC.

By:

/s/ Matthew J. Doherty

Name: Matthew J. Doherty

Title: Chief Financial Officer

Date: October 26, 2020


EXHIBIT 99.1

Graphic

HBT FINANCIAL, INC. ANNOUNCES

THIRD QUARTER 2020 FINANCIAL RESULTS

Third Quarter Highlights

Net income of $10.6 million, or $0.38 per diluted share; return on average assets (ROAA) of 1.20%; return on average stockholders' equity (ROAE) of 11.83%; and return on average tangible common equity (ROATCE)(1) of 12.80%
Adjusted net income(1) of $10.8 million; or $0.39 per diluted share, adjusted ROAA(1) of 1.22%; adjusted ROAE(1) of 12.04%; and adjusted ROATCE(1) of 13.03%

(1)

See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.

Bloomington, IL, October 26, 2020 – 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 $10.6 million, or $0.38 diluted earnings per share, for the third quarter of 2020. This compares to net income of $7.4 million, or $0.27 diluted earnings per share, for the second quarter of 2020, and net income of $17.4 million, or $0.97 diluted earnings per share, for the third quarter of 2019.

Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “We delivered solid results in the third quarter despite the challenges presented by the low interest rate environment and economic uncertainty. Our banks have long prioritized safety and soundness, disciplined growth, and consistent through-the-cycle profitability, and I am pleased to see this focus maintained as we completed our first year as a public company earlier this month. While we remain conservative in building our loan loss reserves to address possible credit deterioration as the pandemic continues, we are encouraged by the stability we are seeing in asset quality, which reflects the strength of our borrowers and our conservative approach to credit. Our nonperforming loans are down from a year ago and our annualized net charge-offs through the first nine months of 2020 amounted to just 0.04% of average loans. In addition, our COVID-19 loan modifications declined by 82% to $36 million, or just 1.6% of our total loans, at the end of the third quarter. With ample liquidity and capital levels, strong asset quality, and a stable deposit base, we are well positioned to continue supporting our customers and communities through this crisis while generating solid results for our shareholders.”

C Corp Equivalent Net Income

Prior to October 11, 2019, the Company operated as an S Corporation for U.S. federal and state income tax purposes. Effective October 11, 2019, the Company voluntarily revoked its S Corporation status and became a taxable entity (C Corporation). As such, any periods prior to October 11, 2019 only reflect state replacement taxes. To facilitate comparison, the Company reports its C Corp equivalent financial results, which do not reflect the additional shares issued in the initial public offering (the “IPO”) for periods prior to the IPO.

The Company reported C Corp equivalent net income of $13.1 million, or $0.73 diluted earnings per share, for the third quarter of 2019.


HBT Financial, Inc.

Page 2 of 17

Adjusted Net Income

In addition to reporting C Corp equivalent results, the Company believes adjusted net income and adjusted earnings per share, which adjust for the additional C Corp equivalent tax expense for periods prior to October 11, 2019, 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 (“MSR”) fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $10.8 million, or $0.39 adjusted diluted earnings per share, for the third quarter of 2020. This compares to adjusted net income of $8.2 million, or $0.30 adjusted diluted earnings per share, for the second quarter of 2020, and adjusted net income of $14.3 million, or $0.80 adjusted diluted earnings per share, for the third quarter of 2019 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2020 was $28.9 million, nearly unchanged from the second quarter of 2020 as growth in average interest-earning assets was largely offset by lower yields on loans and securities.

Relative to the third quarter of 2019, net interest income decreased $4.3 million, or 12.9%. The decline was primarily attributable to lower yields on average interest-earning assets.

Net interest margin for the third quarter of 2020 was 3.39% compared to 3.51% for the second quarter of 2020. The decrease was primarily attributable to the decline in the average yield on earning assets, partially due to the addition of lower yielding Paycheck Protection Program (PPP) loans. The contribution of acquired loan discount accretion to net interest margin remained low at 2 basis points during the third quarter of 2020 compared to less than 1 basis point during the second quarter of 2020.

Relative to the third quarter of 2019, net interest margin decreased from 4.27%. The decrease was due primarily to the decline in the average yield on earning assets. The contribution of acquired loan discount accretion to net interest margin was 4 basis points during the third quarter of 2019.

Noninterest Income

Noninterest income for the third quarter of 2020 was $10.1 million, an increase of 24.7% from $8.1 million for the second quarter of 2020. The increase was primarily attributable to a $1.0 million increase in gains on sale of mortgage loans attributable to a strong mortgage refinancing environment and a $0.4 million increase in service charges on deposit accounts. Third quarter 2020 results included a negative $0.3 million mortgage servicing rights (“MSR”) fair value adjustment compared to a negative $0.5 million fair value adjustment in the second quarter of 2020.

Relative to the third quarter of 2019, noninterest income increased 32.6% from $7.6 million. The increase was primarily attributable to higher gains on sale of mortgage loans and a less negative MSR fair value adjustment. Partially offsetting these increases was a $0.6 million decline in service charges on deposit accounts.

Noninterest Expense

Noninterest expense for the third quarter of 2020 was $22.5 million, a decrease of 4.3% from $23.5 million for the second quarter of 2020. The decrease was primarily attributable to lower employee benefits expense as second quarter of 2020 results included a $0.6 million charge related to the termination of the supplemental executive retirement plan (SERP) that was paid out in June 2020.


HBT Financial, Inc.

Page 3 of 17

Relative to the third quarter of 2019, noninterest expense increased 0.8% from $22.3 million. Lower employee benefits expense, due to the termination and liquidation of the SERP, was more than offset by increases in salaries, FDIC insurance, and other noninterest expenses. Higher salaries expense was driven by increases in mortgage lender commissions and overtime for mortgage support personnel, as a result of increased residential mortgage origination volume.

Loan Portfolio

Total loans outstanding, before allowance for loan losses, were $2.28 billion at September 30, 2020, compared with $2.28 billion at June 30, 2020 and $2.17 billion at September 30, 2019. The $3.8 million increase in loans from June 30, 2020 was primarily attributable to an $18.1 million increase in construction and land development loans and a $13.0 million increase in multi-family loans being largely offset by a $19.0 million reduction in commercial and industrial loans, a $3.5 million decline in agricultural and farmland loans and a $3.2 million reduction in commercial real estate - owner occupied loans. The $71.1 million decrease in total loans outstanding, net of PPP loans from September 30, 2019 was primarily due to a $65.7 million reduction in participation loan balances.

Deposits

Total deposits were $3.02 billion at September 30, 2020 and at June 30, 2020, compared with $2.70 billion at September 30, 2019. Increases in interest-bearing demand and savings balances were substantially offset by declines in noninterest-bearing, money market and time deposit balances in the third quarter.

Asset Quality

Nonperforming loans totaled $15.2 million, or 0.67% of total loans, at September 30, 2020, compared with $14.0 million, or 0.61% of total loans, at June 30, 2020, and $19.1 million, or 0.88% of total loans, at September 30, 2019. The increase in nonperforming loans from the end of the prior quarter was primarily attributable to the movement of one $4.1 million loan to nonaccrual partially offset by reductions from the pay-off or pay-down on three relationships combined with a charge-down of one relationship.

The Company recorded a provision for loan losses of $2.2 million for the third quarter of 2020, which was primarily due to adjustments to qualitative factors to reflect changes in the economic environment.

Net charge-offs for the third quarter of 2020 were $0.2 million, or 0.04% of average loans on an annualized basis compared to net recoveries of $63 thousand, or 0.01% of average loans on an annualized basis, for the second quarter of 2020, and net charge-offs of $0.5 million, or 0.08% of average loans on an annualized basis, for the third quarter of 2019.

The Company’s allowance for loan losses was 1.39% of total loans and 208.14% of nonperforming loans at September 30, 2020, compared with 1.31% of total loans and 213.04% of nonperforming loans at June 30, 2020.


HBT Financial, Inc.

Page 4 of 17

Capital

At September 30, 2020, the Company exceeded all regulatory capital requirements under Basel III and was considered to be “well-capitalized,” as summarized in the following table:

Well Capitalized

September 30, 

Regulatory

2020

Requirements

Total capital to risk-weighted assets

16.81

%  

10.00

%

Tier 1 capital to risk-weighted assets

13.98

%  

8.00

%

Common equity tier 1 capital ratio

12.52

%  

6.50

%

Tier 1 leverage ratio

10.04

%  

5.00

%

Total stockholders' equity to total assets

10.05

%

N/A

Tangible common equity to tangible assets (1)

9.36

%  

N/A


(1)

See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.

Subordinated Note Issuance

To further enhance the Company’s strong capital and liquidity positions, HBT Financial successfully completed a private placement of $40.0 million 4.50% Fixed-to-Floating Rate Subordinated Notes due 2030 during the quarter. This issuance of subordinated notes, which qualify as Tier 2 regulatory capital, contributed to an increase in HBT Financial’s total risk based capital ratio, which was 16.81% at September 30, 2020, compared to 15.13% at June 30, 2020, while also significantly bolstering the cash reserves held at the holding company.

Annualization Factor

The method used to calculate annualization factors for interim period ratios has changed from financial information previously presented. The annualization factor is now calculated using the number of days in the year divided by the number of days in the interim period. Previously, annualization factors were calculated as 4 divided by the number of quarters in the interim period, or an annualization factor of 4 for a quarterly period. The change was applied retrospectively to all periods presented and did not have a material impact on the annualized interim ratios.

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 individuals, businesses and municipal entities throughout Central and Northeastern Illinois through 63 branches. As of September 30, 2020, HBT had total assets of $3.5 billion, total loans of $2.3 billion, and total deposits of $3.0 billion. HBT is a longstanding Central Illinois company, with banking roots that can be traced back 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 and any ratios derived therefrom, efficiency ratio (tax-equivalent basis), tangible common equity to tangible assets, tangible book value per share, adjusted net income, adjusted return on average assets, adjusted return on average stockholders' equity, and adjusted 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.


HBT Financial, Inc.

Page 5 of 17

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, that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: the severity, magnitude and duration of the COVID-19 pandemic; the direct and indirect impacts of the COVID-19 pandemic and governmental responses to the pandemic on our operations and our customers’ businesses; the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect our capital levels and earnings, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses; our asset quality and any loan charge-offs; changes in interest rates and general economic, business and political conditions in the United States generally or in Illinois in particular, including 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.

Page 6 of 17

HBT Financial, Inc.

Consolidated Financial Summary

Consolidated Statements of Income

Three Months Ended

Nine Months Ended

September 30, 

June 30, 

September 30, 

September 30, 

    

2020

    

2020

    

2019

    

2020

    

2019

INTEREST AND DIVIDEND INCOME

(dollars in thousands, except per share amounts)

Loans, including fees:

Taxable

$

25,118

$

25,337

$

29,308

$

77,396

$

89,257

Federally tax exempt

542

532

684

1,748

2,130

Securities:

Taxable

3,266

3,172

3,572

9,772

11,295

Federally tax exempt

1,233

1,227

1,395

3,488

4,459

Interest-bearing deposits in bank

65

79

662

873

1,948

Other interest and dividend income

14

14

15

42

46

Total interest and dividend income

30,238

30,361

35,636

93,319

109,135

INTEREST EXPENSE

Deposits

843

1,042

2,000

3,480

6,094

Securities sold under agreements to repurchase

9

11

17

40

48

Borrowings

1

1

2

7

Subordinated notes

147

147

Junior subordinated debentures issued to capital trusts

367

399

478

1,209

1,462

Total interest expense

1,367

1,453

2,495

4,878

7,611

Net interest income

28,871

28,908

33,141

88,441

101,524

PROVISION FOR LOAN LOSSES

2,174

3,573

684

10,102

3,266

Net interest income after provision for loan losses

26,697

25,335

32,457

78,339

98,258

NONINTEREST INCOME

Card income

2,146

1,998

1,985

5,936

5,813

Service charges on deposit accounts

1,493

1,133

2,111

4,460

5,805

Wealth management fees

1,646

1,507

1,676

4,967

4,916

Mortgage servicing

724

727

795

2,175

2,342

Mortgage servicing rights fair value adjustment

(268)

(508)

(860)

(2,947)

(2,982)

Gains on sale of mortgage loans

3,184

2,135

992

5,855

2,177

Gains (losses) on securities

(2)

57

(73)

3

42

Gains (losses) on foreclosed assets

27

58

(20)

120

132

Gains (losses) on other assets

1

(69)

(29)

(71)

1,244

Title insurance activity

167

Other noninterest income

1,101

1,022

1,005

2,866

2,759

Total noninterest income

10,052

8,060

7,582

23,364

22,415

NONINTEREST EXPENSE

Salaries

12,595

12,674

12,303

38,023

36,422

Employee benefits

1,666

2,455

2,253

6,555

8,220

Occupancy of bank premises

1,609

1,642

1,785

5,079

5,260

Furniture and equipment

679

609

545

1,891

2,050

Data processing

1,583

1,672

1,471

4,841

4,023

Marketing and customer relations

690

817

801

2,551

2,837

Amortization of intangible assets

305

305

335

927

1,087

FDIC insurance

222

218

8

476

435

Loan collection and servicing

450

494

547

1,292

1,901

Foreclosed assets

226

88

196

403

525

Other noninterest expense

2,460

2,525

2,059

7,253

6,316

Total noninterest expense

22,485

23,499

22,303

69,291

69,076

INCOME BEFORE INCOME TAX EXPENSE

14,264

9,896

17,736

32,412

51,597

INCOME TAX EXPENSE

3,701

2,477

299

8,209

819

NET INCOME

$

10,563

$

7,419

$

17,437

$

24,203

$

50,778

EARNINGS PER SHARE - BASIC

$

0.38

$

0.27

$

0.97

$

0.88

$

2.82

EARNINGS PER SHARE - DILUTED

$

0.38

$

0.27

$

0.97

$

0.88

$

2.82

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING

27,457,306

27,457,306

18,027,512

27,457,306

18,027,512

PRO FORMA C CORP EQUIVALENT INFORMATION

Historical income before income tax expense

$

17,736

$

51,597

Pro forma C Corp equivalent income tax expense

4,614

13,313

Pro forma C Corp equivalent net income

$

13,122

$

38,284

PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - BASIC

$

0.73

$

2.12

PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - DILUTED

$

0.73

$

2.12


HBT Financial, Inc.

Page 7 of 17

HBT Financial, Inc.

Consolidated Financial Summary

Consolidated Balance Sheets

    

September 30, 

June 30, 

   

September 30, 

    

2020

    

2020

    

2019

(dollars in thousands)

ASSETS

Cash and due from banks

$

22,347

$

21,789

$

19,969

Interest-bearing deposits with banks

214,377

292,576

134,972

Cash and cash equivalents

236,724

314,365

154,941

Interest-bearing time deposits with banks

248

Debt securities available-for-sale, at fair value

814,798

701,353

618,120

Debt securities held-to-maturity

74,510

73,823

99,861

Equity securities

4,814

4,815

4,436

Restricted stock, at cost

2,498

2,498

2,425

Loans held for sale

23,723

25,934

7,608

Loans, before allowance for loan losses

2,279,639

2,275,795

2,171,014

Allowance for loan losses

(31,654)

(29,723)

(22,761)

Loans, net of allowance for loan losses

2,247,985

2,246,072

2,148,253

Bank premises and equipment, net

53,271

53,883

54,105

Bank premises held for sale

121

121

121

Foreclosed assets

3,857

4,450

6,574

Goodwill

23,620

23,620

23,620

Core deposit intangible assets, net

3,103

3,408

4,366

Mortgage servicing rights, at fair value

5,571

5,839

7,936

Investments in unconsolidated subsidiaries

1,165

1,165

1,165

Accrued interest receivable

13,820

12,661

14,816

Other assets

25,643

27,405

18,018

Total assets

$

3,535,223

$

3,501,412

$

3,166,613

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Deposits:

Noninterest-bearing

$

850,306

$

856,030

$

649,316

Interest-bearing

2,166,355

2,159,083

2,054,742

Total deposits

3,016,661

3,015,113

2,704,058

Securities sold under agreements to repurchase

45,438

51,354

32,267

Subordinated notes

39,218

Junior subordinated debentures issued to capital trusts

37,632

37,616

37,566

Other liabilities

40,980

49,489

43,786

Total liabilities

3,179,929

3,153,572

2,817,677

Stockholders' Equity

Common stock

275

275

181

Surplus

190,787

190,687

32,288

Retained earnings

146,101

139,667

311,055

Accumulated other comprehensive income

18,131

17,211

8,431

Less cost of treasury stock held

(3,019)

Total stockholders’ equity

355,294

347,840

348,936

Total liabilities and stockholders’ equity

$

3,535,223

$

3,501,412

$

3,166,613

SHARE INFORMATION

Ending number shares of common stock outstanding

27,457,306

27,457,306

18,027,512


HBT Financial, Inc.

Page 8 of 17

HBT Financial, Inc.

Consolidated Financial Summary

    

September 30, 

June 30, 

   

September 30, 

    

2020

    

2020

    

2019

(dollars in thousands)

LOANS

Commercial and industrial

$

389,231

$

408,230

$

340,650

Agricultural and farmland

235,597

239,101

205,041

Commercial real estate - owner occupied

225,345

228,506

239,805

Commercial real estate - non-owner occupied

532,454

535,339

552,262

Multi-family

199,441

186,440

191,646

Construction and land development

265,758

247,640

210,939

One-to-four family residential

308,365

308,133

321,947

Municipal, consumer, and other

123,448

122,406

108,724

Loans, before allowance for loan losses

$

2,279,639

$

2,275,795

$

2,171,014

PPP LOANS (included above)

Commercial and industrial

$

168,466

$

166,868

$

Agricultural and farmland

4,179

4,027

Municipal, consumer, and other

7,095

7,063

Total PPP Loans

$

179,740

$

177,958

$

September 30, 

June 30, 

   

September 30, 

    

2020

    

2020

    

2019

(dollars in thousands)

DEPOSITS

Noninterest-bearing

$

850,306

$

856,030

$

649,316

Interest-bearing demand

885,719

880,007

800,471

Money market

475,047

480,497

463,444

Savings

497,682

487,761

426,707

Time

307,907

310,818

364,120

Total deposits

$

3,016,661

$

3,015,113

$

2,704,058


HBT Financial, Inc.

Page 9 of 17

HBT Financial, Inc.

Consolidated Financial Summary

Three Months Ended

 

 

September 30, 2020

 

June 30, 2020

 

September 30, 2019

    

Average

    

    

    

Average

    

    

    

Average

    

    

 

Balance

Interest

 

Yield/Cost *

 

Balance

Interest

 

Yield/Cost *

 

Balance

Interest

 

Yield/Cost *

 

(dollars in thousands)

ASSETS

Loans

$

2,277,826

$

25,660

 

4.48

%  

$

2,265,032

$

25,869

 

4.59

%  

$

2,191,230

$

29,992

 

5.43

%

Securities

 

831,120

 

4,499

 

2.15

 

721,817

4,399

 

2.45

 

745,532

 

4,967

 

2.64

Deposits with banks

 

274,022

 

65

 

0.09

 

326,216

79

 

0.10

 

136,635

 

662

 

1.93

Other

 

2,498

 

14

 

2.29

 

2,496

14

 

2.21

 

2,425

 

15

 

2.35

Total interest-earning assets

 

3,385,466

$

30,238

 

3.55

%  

 

3,315,561

$

30,361

 

3.68

%  

 

3,075,822

$

35,636

 

4.60

%

Allowance for loan losses

 

(30,221)

 

(26,125)

 

(22,326)

Noninterest-earning assets

 

157,446

 

163,713

 

149,146

Total assets

$

3,512,691

$

3,453,149

$

3,202,642

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Interest-bearing deposits:

Interest-bearing demand

$

888,941

$

123

 

0.05

%  

$

860,131

$

162

 

0.08

%  

$

812,526

$

347

 

0.17

%

Money market

 

479,314

 

96

 

0.08

 

477,441

118

 

0.10

 

468,139

 

497

 

0.42

Savings

 

493,278

 

37

 

0.03

 

474,609

50

 

0.04

 

428,447

 

70

 

0.06

Time

 

306,154

 

587

 

0.76

 

317,965

712

 

0.90

 

383,070

 

1,086

 

1.12

Total interest-bearing deposits

 

2,167,687

 

843

 

0.15

 

2,130,146

 

1,042

 

0.20

 

2,092,182

 

2,000

 

0.38

Securities sold under agreements to repurchase

 

51,686

 

9

 

0.06

 

53,867

11

 

0.08

 

35,757

 

17

 

0.18

Borrowings

 

1,196

 

1

 

0.47

 

2,582

1

 

0.03

 

33

 

 

2.40

Subordinated notes

11,976

147

4.87

Junior subordinated debentures issued to capital trusts

 

37,621

 

367

 

3.89

 

37,605

399

 

4.26

 

37,561

 

478

 

5.05

Total interest-bearing liabilities

 

2,270,166

$

1,367

 

0.24

%  

 

2,224,200

$

1,453

 

0.26

%  

 

2,165,533

$

2,495

 

0.46

%

Noninterest-bearing deposits

 

846,808

 

  

 

824,232

 

  

 

  

 

651,085

 

  

 

  

Noninterest-bearing liabilities

 

40,421

 

  

 

58,177

 

  

 

  

 

37,274

 

  

 

  

Total liabilities

 

3,157,395

 

  

 

3,106,609

 

  

 

  

 

2,853,892

 

  

 

  

Stockholders' Equity

 

355,296

 

  

 

346,540

 

  

 

  

 

348,750

 

  

 

  

Total liabilities and stockholders’ equity

$

3,512,691

 

  

$

3,453,149

 

  

 

  

$

3,202,642

 

  

 

  

Net interest income/Net interest margin (3)

$

28,871

3.39

%  

$

28,908

 

3.51

%  

$

33,141

 

4.27

%  

Tax-equivalent adjustment (2)

 

495

0.06

 

483

 

0.06

 

559

 

0.08

Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (1) (2)

$

29,366

3.45

%  

 

$

29,391

 

3.57

%  

 

$

33,700

 

4.35

%  

Net interest rate spread (4)

 

 

3.31

%  

 

  

 

  

 

3.42

%  

 

  

 

  

 

4.14

%  

Net interest-earning assets (5)

$

1,115,300

  

$

1,091,361

 

  

 

  

$

910,289

 

  

 

  

Ratio of interest-earning assets to interest-bearing liabilities

 

1.49

 

  

 

1.49

 

  

 

  

 

1.42

 

  

 

  

Cost of total deposits

 

 

0.11

%  

 

  

 

  

 

0.14

%  

 

  

 

  

 

0.29

%  


*       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 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.

Page 10 of 17

HBT Financial, Inc.

Consolidated Financial Summary

Nine Months Ended

 

September 30, 2020

 

September 30, 2019

    

Average

    

    

    

Average

    

    

 

Balance

Interest

 

Yield/Cost *

 

Balance

Interest

 

Yield/Cost *

 

(dollars in thousands)

ASSETS

Loans

$

2,228,145

$

79,144

 

4.74

%  

$

2,184,263

$

91,387

 

5.59

%

Securities

 

740,834

 

13,260

 

2.39

 

779,375

15,754

 

2.70

Deposits with banks

 

283,730

 

873

 

0.41

 

131,209

1,948

 

1.99