Filed by HBT Financial, Inc.
Pursuant to Rule 425 under the Securities Act of 1933
and deemed filed pursuant to Rule 14a-12
under the Securities Exchange Act of 1934
Subject Company: NXT Bancorporation, Inc.
(File No. 001-39085)
Set forth below is a copy of HBT Financial, Inc.’s press release announcing its financial results for the second quarter ended and six months ended June 30, 2021
HBT FINANCIAL, INC. ANNOUNCES
SECOND QUARTER 2021 FINANCIAL RESULTS
Second Quarter Highlights
| ● | Net income of $13.7 million, or $0.50 per diluted share; return on average assets (ROAA) of 1.40%; return on average stockholders' equity (ROAE) of 15.07%; and return on average tangible common equity (ROATCE)(1) of 16.22% |
| ● | Adjusted net income(1) of $14.2 million; or $0.52 per diluted share, adjusted ROAA(1) of 1.45%; adjusted ROAE(1) of 15.56%; and adjusted ROATCE(1) of 16.76% |
(1) | See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures. |
Bloomington, IL, July 26, 2021 – 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 $13.7 million, or $0.50 diluted earnings per share, for the second quarter of 2021. This compares to net income of $15.2 million, or $0.55 diluted earnings per share, for the first quarter of 2021, and net income of $7.4 million, or $0.27 diluted earnings per share, for the second quarter of 2020.
Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “As economic activity increased in our markets, we saw strong performance among our customer base resulting in continued inflows of core deposits, growth in earning assets, increases in card income and wealth management revenue, and further improvement in asset quality. Combined with disciplined expense control, these positive trends resulted in continued solid results for the Company. As economic conditions further improve during the second half of the year, we are hopeful to see higher levels of loan demand that will allow us to deploy our significant excess liquidity. We are also focused on completing our acquisition of NXT Bancorporation, which we still expect to occur in the fourth quarter of 2021. We believe the addition of NXT and the presence it will provide in faster growing markets in Iowa will enhance the value of our franchise and improve our ability to generate higher levels of organic growth in the years ahead.”
Adjusted Net Income
In addition to reporting GAAP 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, acquisition expenses, branch closure expenses, 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 $14.2 million, or $0.52 adjusted diluted earnings per share, for the second quarter of 2021. This compares to adjusted net income of $14.0 million, or $0.51 adjusted diluted earnings per share, for the first quarter of 2021, and adjusted net income of $8.2 million, or $0.30 adjusted diluted earnings per share, for the second quarter of 2020 (see "Reconciliation of Non-GAAP Financial Measures" tables).
HBT Financial, Inc.
Page 2 of 17
Net Interest Income and Net Interest Margin
Net interest income for the second quarter of 2021 was $29.7 million, an increase of 2.0% from $29.1 million for the first quarter of 2021. The increase was primarily attributable to an increase in interest-earning assets.
Relative to the second quarter of 2020, net interest income increased $0.8 million, or 2.7%. The increase was primarily attributable to an increase in interest-earning assets.
Net interest margin for the second quarter of 2021 was 3.14%, compared to 3.25% for the first quarter of 2021. The decrease was primarily attributable to an unfavorable shift in the mix of earning assets, primarily due to increased deposit balances being held in cash and lower-yielding securities.
Relative to the second quarter of 2020, net interest margin decreased from 3.51%. The decrease was primarily due to a decline in the average yield on earning assets and increased deposit balances being held in cash and lower-yielding securities.
Noninterest Income
Noninterest income for the second quarter of 2021 was $8.8 million, a decrease of 18.8% from $10.8 million for the first quarter of 2021. Second quarter 2021 results included a negative $0.3 million mortgage servicing rights (“MSR”) fair value adjustment compared to a positive $1.7 million fair value adjustment in the first quarter of 2021. Additionally, gains on sale of mortgage loans decreased $0.5 million due to a lower level of mortgage refinancing activity.
Relative to the second quarter of 2020, noninterest income increased 8.9% from $8.1 million, primarily attributable to an increase in wealth management fees and card income. Wealth management fees increased $0.5 million as a result of higher values of assets under management during second quarter of 2021 relative to the second quarter of 2020. Card income increased $0.5 million as a result of increased card transaction volume driven by the full reopening of Illinois following COVID-19 prevention measures. Partially offsetting these increases was a $0.6 million decrease in gains on sale of mortgage of loans due to a lower level of mortgage refinancing activity.
Noninterest Expense
Noninterest expense for the second quarter of 2021 was $22.2 million, down slightly from $22.5 million for the first quarter of 2021. Decreases in occupancy of bank premises and salaries expenses were mostly offset by increases in marketing and other noninterest expenses.
Relative to the second quarter of 2020, noninterest expense decreased 5.7% from $23.5 million. The decline was primarily attributable to the second quarter of 2020 results including a $0.6 million charge for the supplemental executive retirement plan (SERP) which was terminated in June 2019 and paid out in June 2020.
HBT Financial, Inc.
Page 3 of 17
NXT Bancorporation, Inc. Pending Acquisition
On June 7, 2021, HBT and NXT Bancorporation, Inc. (NXT), the holding company for NXT Bank, jointly announced the signing of a definitive agreement pursuant to which HBT will acquire NXT and NXT Bank. The acquisition will expand HBT’s footprint into Iowa. Acquisition-related expenses were $157 thousand during the second quarter of 2021.
Branch Rationalization Plan
In April 2021, the Company made plans to close or consolidate six branches. One branch was consolidated during the second quarter of 2021, and the remaining five branches are expected to close during the third quarter of 2021. This branch rationalization plan is expected to result in approximately $0.8 million of total pre-tax nonrecurring costs, primarily related to asset impairment charges and severance payments. When fully realized, the Company estimates annual cost savings, net of associated revenue impacts, related to the branch rationalization plan to be approximately $1.1 million. Branch closure expenses were $104 thousand during the second quarter of 2021.
Loan Portfolio
Total loans outstanding, before allowance for loan losses, were $2.15 billion at June 30, 2021, compared with $2.27 billion at March 31, 2021 and $2.28 billion at June 30, 2020. The $118.6 million decrease in loans from March 31, 2021 was primarily attributable to a decrease in PPP loans, as PPP loan forgiveness exceeded originations on second draw PPP loans as well as lower non-PPP commercial and industrial, multi-family and commercial real estate - owner occupied loans.
Deposits
Total deposits were $3.42 billion at June 30, 2021, compared with $3.36 billion at March 31, 2021 and $3.02 billion at June 30, 2020. The $68.7 million increase in total deposits from March 31, 2021 was primarily due to a $61.1 million increase in public funds deposits as a result of real estate tax collections.
Asset Quality
Nonperforming loans totaled $7.4 million, or 0.34% of total loans, at June 30, 2021, compared with $9.1 million, or 0.40% of total loans, at March 31, 2021, and $14.0 million, or 0.61% of total loans, at June 30, 2020. The $1.7 million reduction in nonperforming loans from March 31, 2021 was primarily attributable to the transfer of one loan to foreclosed assets, partially offset by one relationship moving to nonaccrual status that totaled $2.9 million at June 30, 2021. The $6.5 million reduction in nonperforming loans from June 30, 2020 was primarily attributable to the return to accrual status of one agricultural credit that totaled $4.8 million at June 30, 2020.
The Company recorded a negative provision for loan losses of $2.2 million for the second quarter of 2021, compared to a negative provision for loan losses of $3.4 million for the first quarter of 2021. The negative provision was primarily due to a $1.3 million decrease in specific reserves on loans individually evaluated for impairment. Additionally, changes to qualitative factors resulted in a $0.5 million decrease in required reserve, primarily reflecting the shrinking impact of the COVID-19 pandemic on our borrowers.
Net charge-offs for the second quarter of 2021 were $90 thousand, or 0.02% of average loans on an annualized basis, compared to net recoveries of $0.3 million, or (0.06)% of average loans on an annualized basis, for the first quarter of 2021, and net recoveries of $63 thousand, or (0.01)% of average loans on an annualized basis, for the second quarter of 2020.
The Company’s allowance for loan losses was 1.23% of total loans and 357.91% of nonperforming loans at June 30, 2021, compared with 1.27% of total loans and 315.48% of nonperforming loans at March 31, 2021.
HBT Financial, Inc.
Page 4 of 17
Capital
At June 30, 2021, 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 | ||
| June 30, | Regulatory | ||
| 2021 | Requirements | ||
Total capital to risk-weighted assets | 18.55 | % | 10.00 | % |
Tier 1 capital to risk-weighted assets | 15.79 | % | 8.00 | % |
Common equity tier 1 capital ratio | 14.25 | % | 6.50 | % |
Tier 1 leverage ratio | 9.67 | % | 5.00 | % |
Total stockholders' equity to total assets | 9.44 | % | N/A | |
Tangible common equity to tangible assets (1) | 8.84 | % | N/A | |
(1) | See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures. |
Stock Repurchase Program
During the second quarter of 2021, the Company repurchased 27,016 shares of its common stock at a weighted average price of $17.22 under its stock repurchase program. Purchases were conducted in accordance with Rule 10b-18 under the Securities Exchange Act of 1934, as amended. The Company’s Board of Directors authorized the repurchase of up to $15 million of its common stock under its stock repurchase program in effect until December 31, 2021. As of June 30, 2021, the Company had $13.0 million remaining under the current stock repurchase authorization.
About HBT Financial, Inc.
HBT Financial, Inc. is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company. The bank provides 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 62 branches. As of June 30, 2021, HBT had total assets of $4.0 billion, total loans of $2.2 billion, and total deposits of $3.4 billion. HBT is a longstanding Central Illinois company, with banking roots that can be traced back to 1920.
HBT Financial, Inc.
Page 5 of 17
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.
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, future loan growth, and the potential acquisition of NXT and NXT Bank. 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 the potential acquisition of NXT, including the possibility that shareholders of NXT may not approve the merger agreement, that a condition to closing of the proposed transaction may not be satisfied, that either party may terminate the merger agreement or that the closing of the proposed transaction might be delayed or not occur at all; the ultimate timing, outcome and results of integrating the operations of NXT into those of HBT; the effects of the merger in HBT’s future financial condition, results of operations, strategy and plans; risks relating to other acquisitions; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission (“SEC”). 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.
HBT Financial, Inc.
Page 6 of 17
Important Information and Where to Find It
In connection with the proposed acquisition of NXT, HBT and NXT intend to file materials with the SEC, including a Registration Statement on Form S-4 of HBT that will include a joint proxy statement/prospectus of HBT and NXT. After the Registration Statement is declared effective by the SEC, HBT and NXT intend to mail a definitive proxy statement/prospectus to the shareholders of NXT. This press release is not a substitute for the joint proxy statement/prospectus or the Registration Statement or for any other document that HBT or NXT may file with the SEC and send to NXT’s shareholders in connection with the proposed transaction. NXT’S SHAREHOLDERS ARE URGED TO CAREFULLY AND THOROUGHLY READ THE JOINT PROXY STATEMENT/PROSPECTUS AND THE REGISTRATION STATEMENT, AS MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS FILED BY HBT WITH THE SEC, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT HBT, NXT, THE PROPOSED TRANSACTION, THE RISKS RELATED THERETO AND RELATED MATTERS.
Investors will be able to obtain free copies of the Registration Statement and joint proxy statement/prospectus, as each may be amended from time to time, and other relevant documents filed by HBT with the SEC (when they become available) through the website maintained by the SEC at www.sec.gov. Copies of documents filed with the SEC by HBT will be available free of charge from HBT’s website at https://ir.hbtfinancial.com or by contacting HBT’s Investor Relations Department at HBTIR@hbtbank.com.
Participants in the Proxy Solicitation
HBT, NXT and their respective directors and certain of their executive officers and other members of management and employees may be deemed, under SEC rules, to be participants in the solicitation of proxies from NXT’s shareholders in connection with the proposed transaction. Information regarding the executive officers and directors of HBT is included in its definitive proxy statement for its 2021 annual meeting filed with the SEC on April 7, 2021. Information regarding the executive officers and directors of NXT and additional information regarding the persons who may be deemed participants and their direct and indirect interests, by security holdings or otherwise, will be set forth in the Registration Statement and joint proxy statement/prospectus and other materials when they are filed with the SEC in connection with the proposed transaction. Free copies of these documents may be obtained as described in the paragraphs above.
No Offer or Solicitation
This press release does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities or a solicitation of any vote or approval with respect to the proposed acquisition of NXT or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
CONTACT:
Matthew Keating
HBTIR@hbtbank.com
(310) 622-8230
HBT Financial, Inc.
Page 7 of 17
HBT Financial, Inc.
Consolidated Financial Summary
Consolidated Statements of Income
| | Three Months Ended | | Six Months Ended | |||||||||||
| | June 30, | | March 31, | | June 30, | | June 30, | |||||||
|
| 2021 |
| 2021 |
| 2020 |
| 2021 |
| 2020 | |||||
INTEREST AND DIVIDEND INCOME | | (dollars in thousands, except per share data) | |||||||||||||
Loans, including fees: | | | | | | | | | | | | | | | |
Taxable | | $ | 25,278 | | $ | 25,134 | | $ | 25,337 | | $ | 50,412 | | $ | 52,278 |
Federally tax exempt | | | 540 | | | 610 | | | 532 | | | 1,150 | | | 1,206 |
Securities: | | | | | | | | | | | | | | | |
Taxable | | | 4,058 | | | 3,633 | | | 3,172 | | | 7,691 | | | 6,506 |
Federally tax exempt | | | 1,144 | | | 1,136 | | | 1,227 | | | 2,280 | | | 2,255 |
Interest-bearing deposits in bank | | | 115 | | | 80 | | | 79 | | | 195 | | | 808 |
Other interest and dividend income | | | 12 | | | 13 | | | 14 | | | 25 | | | 28 |
Total interest and dividend income | | | 31,147 | | | 30,606 | | | 30,361 | | | 61,753 | | | 63,081 |
| | | | | | | | | | | | | | | |
INTEREST EXPENSE | | | | | | | | | | | | | | | |
Deposits | | | 613 | | | 644 | | | 1,042 | | | 1,257 | | | 2,637 |
Securities sold under agreements to repurchase | | | 8 | | | 7 | | | 11 | | | 15 | | | 31 |
Borrowings | | | — | | | 1 | | | 1 | | | 1 | | | 1 |
Subordinated notes | | | 469 | | | 470 | | | — | | | 939 | | | — |
Junior subordinated debentures issued to capital trusts | | | 357 | | | 355 | | | 399 | | | 712 | | | 842 |
Total interest expense | | | 1,447 | | | 1,477 | | | 1,453 | | | 2,924 | | | 3,511 |
Net interest income | | | 29,700 | | | 29,129 | | | 28,908 | | | 58,829 | | | 59,570 |
PROVISION FOR LOAN LOSSES | | | (2,162) | | | (3,405) | | | 3,573 | | | (5,567) | | | 7,928 |
Net interest income after provision for loan losses | | | 31,862 | | | 32,534 | | | 25,335 | | | 64,396 | | | 51,642 |
| | | | | | | | | | | | | | | |
NONINTEREST INCOME | | | | | | | | | | | | | | | |
Card income | | | 2,449 | | | 2,258 | | | 1,998 | | | 4,707 | | | 3,790 |
Service charges on deposit accounts | | | 1,390 | | | 1,297 | | | 1,133 | | | 2,687 | | | 2,967 |
Wealth management fees | | | 2,005 | | | 1,972 | | | 1,507 | | | 3,977 | | | 3,321 |
Mortgage servicing | | | 711 | | | 685 | | | 727 | | | 1,396 | | | 1,451 |
Mortgage servicing rights fair value adjustment | | | (310) | | | 1,695 | | | (508) | | | 1,385 | | | (2,679) |
Gains on sale of mortgage loans | | | 1,562 | | | 2,100 | | | 2,135 | | | 3,662 | | | 2,671 |
Gains (losses) on securities | | | 6 | | | 40 | | | 57 | | | 46 | | | 5 |
Gains (losses) on foreclosed assets | | | 216 | | | (76) | | | 58 | | | 140 | | | 93 |
Gains (losses) on other assets | | | (48) | | | 1 | | | (69) | | | (47) | | | (72) |
Other noninterest income | | | 793 | | | 836 | | | 1,022 | | | 1,629 | | | 1,765 |
Total noninterest income | | | 8,774 | | | 10,808 | | | 8,060 | | | 19,582 | | | 13,312 |
| | | | | | | | | | | | | | | |
NONINTEREST EXPENSE | | | | | | | | | | | | | | | |
Salaries | | | 12,275 | | | 12,596 | | | 12,674 | | | 24,871 | | | 25,428 |
Employee benefits | | | 1,455 | | | 1,722 | | | 2,455 | | | 3,177 | | | 4,889 |
Occupancy of bank premises | | | 1,463 | | | 1,938 | | | 1,642 | | | 3,401 | | | 3,470 |
Furniture and equipment | | | 603 | | | 623 | | | 609 | | | 1,226 | | | 1,212 |
Data processing | | | 1,721 | | | 1,688 | | | 1,672 | | | 3,409 | | | 3,258 |
Marketing and customer relations | | | 843 | | | 565 | | | 817 | | | 1,408 | | | 1,861 |
Amortization of intangible assets | | | 258 | | | 289 | | | 305 | | | 547 | | | 622 |
FDIC insurance | | | 244 | | | 240 | | | 218 | | | 484 | | | 254 |
Loan collection and servicing | | | 333 | | | 365 | | | 494 | | | 698 | | | 842 |
Foreclosed assets | | | 319 | | | 143 | | | 88 | | | 462 | | | 177 |
Other noninterest expense | | | 2,640 | | | 2,375 | | | 2,525 | | | 5,015 | | | 4,793 |
Total noninterest expense | | | 22,154 | | | 22,544 | | | 23,499 | | | 44,698 | | | 46,806 |
INCOME BEFORE INCOME TAX EXPENSE | | | 18,482 | | | 20,798 | | | 9,896 | | | 39,280 | | | 18,148 |
INCOME TAX EXPENSE | | | 4,765 | | | 5,553 | | | 2,477 | | | 10,318 | | | 4,508 |
NET INCOME | | $ | 13,717 | | $ | 15,245 | | $ | 7,419 | | $ | 28,962 | | $ | 13,640 |
| | | | | | | | | | | | | | | |
EARNINGS PER SHARE - BASIC | | $ | 0.50 | | $ | 0.55 | | $ | 0.27 | | $ | 1.06 | | $ | 0.50 |
EARNINGS PER SHARE - DILUTED | | $ | 0.50 | | $ | 0.55 | | $ | 0.27 | | $ | 1.05 | | $ | 0.50 |
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING | | | 27,362,579 | | | 27,430,912 | | | 27,457,306 | | | 27,396,557 | | | 27,457,306 |
HBT Financial, Inc.
Page 8 of 17
HBT Financial, Inc.
Consolidated Financial Summary
Consolidated Balance Sheets
|
| June 30, | | March 31, |
| June 30, | |||
|
| 2021 |
| 2021 |
| 2020 | |||
| | (dollars in thousands) | |||||||
ASSETS | | | | | | | | | |
Cash and due from banks | | $ | 47,861 | | $ | 22,976 | | $ | 21,789 |
Interest-bearing deposits with banks | | | 497,742 | | | 406,760 | | | 292,576 |
Cash and cash equivalents | | | 545,603 | | | 429,736 | | | 314,365 |
| | | | | | | | | |
Debt securities available-for-sale, at fair value | | | 836,267 | | | 856,835 | | | 701,353 |
Debt securities held-to-maturity | | | 309,132 | | | 192,994 | | | 73,823 |
Equity securities with readily determinable fair value | | | 3,338 | | | 3,332 | | | 3,263 |
Equity securities with no readily determinable fair value | | | 1,552 | | | 1,552 | | | 1,552 |
Restricted stock, at cost | | | 2,739 | | | 2,498 | | | 2,498 |
Loans held for sale | | | 5,951 | | | 12,882 | | | 25,934 |
| | | | | | | | | |
Loans, before allowance for loan losses | | | 2,152,119 | | | 2,270,705 | | | 2,275,795 |
Allowance for loan losses | | | (26,507) | | | (28,759) | | | (29,723) |
Loans, net of allowance for loan losses | | | 2,125,612 | | | 2,241,946 | | | 2,246,072 |
| | | | | | | | | |
Bank premises and equipment, net | | | 51,900 | | | 52,548 | | | 53,883 |
Bank premises held for sale | | | 121 | | | 121 | | | 121 |
Foreclosed assets | | | 7,757 | | | 4,748 | | | 4,450 |
Goodwill | | | 23,620 | | | 23,620 | | | 23,620 |
Core deposit intangible assets, net | | | 2,251 | | | 2,509 | | | 3,408 |
Mortgage servicing rights, at fair value | | | 7,319 | | | 7,629 | | | 5,839 |
Investments in unconsolidated subsidiaries | | | 1,165 | | | 1,165 | | | 1,165 |
Accrued interest receivable | | | 12,785 | | | 12,718 | | | 12,661 |
Other assets | | | 16,565 | | | 18,781 | | | 27,405 |
Total assets | | $ | 3,953,677 | | $ | 3,865,614 | | $ | 3,501,412 |
| | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | |
Liabilities | | | | | | | | | |
Deposits: | | | | | | | | | |
Noninterest-bearing | | $ | 1,011,481 | | $ | 968,991 | | $ | 856,030 |
Interest-bearing | | | 2,413,153 | | | 2,386,975 | | | 2,159,083 |
Total deposits | | | 3,424,634 | | | 3,355,966 | | | 3,015,113 |
| | | | | | | | | |
Securities sold under agreements to repurchase | | | 46,756 | | | 41,976 | | | 51,354 |
Subordinated notes | | | 39,277 | | | 39,257 | | | — |
Junior subordinated debentures issued to capital trusts | | | 37,681 | | | 37,665 | | | 37,616 |
Other liabilities | | | 32,135 | | | 33,344 | | | 49,489 |
Total liabilities | | | 3,580,483 | | | 3,508,208 | | | 3,153,572 |
| | | | | | | | | |
Stockholders' Equity | | | | | | | | | |
Common stock | | | 275 | | | 275 | | | 275 |
Surplus | | | 191,185 | | | 191,004 | | | 190,687 |
Retained earnings | | | 175,328 | | | 165,735 | | | 139,667 |
Accumulated other comprehensive income | | | 8,386 | | | 1,906 | | | 17,211 |
Treasury stock at cost | | | (1,980) | | | (1,514) | | | — |
Total stockholders’ equity | | | 373,194 | | | 357,406 | | | 347,840 |
Total liabilities and stockholders’ equity | | $ | 3,953,677 | | $ | 3,865,614 | | $ | 3,501,412 |
| | | | | | | | | |
SHARE INFORMATION | | | | | | | | | |
Shares of common stock outstanding | | | 27,355,053 | | | 27,382,069 | | | 27,457,306 |
HBT Financial, Inc.
Page 9 of 17
HBT Financial, Inc.
Consolidated Financial Summary
|
| June 30, | | March 31, |
| June 30, | |||
|
| 2021 |
| 2021 |
| 2020 | |||
| | (dollars in thousands) | |||||||
LOANS | | | | | | | | | |
Commercial and industrial | | $ | 321,352 | | $ | 412,812 | | $ | 408,230 |
Agricultural and farmland | | | 231,527 | | | 228,032 | | | 239,101 |
Commercial real estate - owner occupied | | | 212,597 | | | 224,599 | | | 228,506 |
Commercial real estate - non-owner occupied | | | 531,803 | | | 516,963 | | | 535,339 |
Multi-family | | | 212,079 | | | 236,381 | | | 186,440 |
Construction and land development | | | 204,619 | | | 215,375 | | | 247,640 |
One-to-four family residential | | | 302,888 | | | 300,768 | | | 308,133 |
Municipal, consumer, and other | | | 135,254 | | | 135,775 | | | 122,406 |
Loans, before allowance for loan losses | | $ | 2,152,119 | | $ | 2,270,705 | | $ | 2,275,795 |
| | | | | | | | | |
PPP LOANS (included above) | | | | | | | | | |
Commercial and industrial | | $ | 115,538 | | $ | 175,389 | | $ | 166,868 |
Agricultural and farmland | | | 8,711 | | | 8,921 | | | 4,027 |
Municipal, consumer, and other | | | 1,273 | | | 6,249 | | | 7,063 |
Total PPP Loans | | $ | 125,522 | | $ | 190,559 | | $ | 177,958 |
| | June 30, | | March 31, |
| June 30, | |||
|
| 2021 |
| 2021 |
| 2020 | |||
| | (dollars in thousands) | |||||||
DEPOSITS | | | | | | | | | |
Noninterest-bearing | | $ | 1,011,481 | | $ | 968,991 | | $ | 856,030 |
Interest-bearing demand | | | 1,023,565 | | | 1,008,954 | | | 880,007 |
Money market | | | 506,880 | | | 499,088 | | | 480,497 |
Savings | | | 603,849 | | | 593,472 | | | 487,761 |
Time | | | 278,859 | | | 285,461 | | | 310,818 |
Total deposits | | $ | 3,424,634 | | $ | 3,355,966 | | $ | 3,015,113 |
HBT Financial, Inc.
Page 10 of 17
HBT Financial, Inc.
Consolidated Financial Summary
| | Three Months Ended |
| ||||||||||||||||||||||
|
| June 30, 2021 |
| March 31, 2021 |
| June 30, 2020 | | ||||||||||||||||||
|
| Average |
| | |
| |
| Average |
| | |
| |
| Average |
| | |
| | | |||
|
| Balance | | Interest |
| Yield/Cost * |
| Balance | | Interest |
| Yield/Cost * |
| Balance | | Interest |
| Yield/Cost * | | ||||||
|
| (dollars in thousands) | | ||||||||||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | |
Loans | | $ | 2,234,388 | | $ | 25,818 |
| 4.63 | % | $ | 2,284,159 | | $ | 25,744 |
| 4.57 | % | $ | 2,265,032 | | $ | 25,869 |
| 4.59 | % |
Securities | |
| 1,121,104 | |
| 5,202 |
| 1.86 | |
| 1,004,877 | | | 4,769 |
| 1.92 | |
| 721,817 | |
| 4,399 |
| 2.45 | |
Deposits with banks | |
| 438,001 | |
| 115 |
| 0.11 | |
| 345,915 | | | 80 |
| 0.09 | |
| 326,216 | |
| 79 |
| 0.10 | |
Other | |
| 2,726 | |
| 12 |
| 1.83 | |
| 2,498 | | | 13 |
| 2.04 | |
| 2,496 | |
| 14 |
| 2.21 | |
Total interest-earning assets | |
| 3,796,219 | | $ | 31,147 |
| 3.29 | % |
| 3,637,449 | | $ | 30,606 |
| 3.41 | % |
| 3,315,561 | | $ | 30,361 |
| 3.68 | % |
Allowance for loan losses | |
| (28,939) | | | | | | |
| (31,856) | | | | | | |
| (26,125) | | | | | | |
Noninterest-earning assets | |
| 156,559 | | | | | | |
| 155,622 | | | | | | |
| 163,713 | | | | | | |
Total assets | | $ | 3,923,839 | | | | | | | $ | 3,761,215 | | | | | | | $ | 3,453,149 | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | |
Liabilities | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing deposits: | | | | | | | | | | | | | | | | | | | | | | | | | |
Interest-bearing demand | | $ | 1,019,488 | | $ | 127 |
| 0.05 | % | $ | 997,720 | | $ | 117 |
| 0.05 | % | $ | 860,131 | | $ | 162 |
| 0.08 | % |
Money market | |
| 502,448 | |
| 94 |
| 0.08 | |
| 482,385 | | | 89 |
| 0.07 | |
| 477,441 | |
| 118 |
| 0.10 | |
Savings | |
| 601,615 | |
| 46 |
| 0.03 | |
| 541,896 | | | 41 |
| 0.03 | |
| 474,609 | |
| 50 |
| 0.04 | |
Time | |
| 290,865 | |
| 346 |
| 0.48 | |
| 294,172 | | | 397 |
| 0.55 | |
| 317,965 | |
| 712 |
| 0.90 | |
Total interest-bearing deposits | |
| 2,414,416 | |
| 613 |
| 0.10 | |
| 2,316,173 | |
| 644 |
| 0.11 | |
| 2,130,146 | |
| 1,042 |
| 0.20 | |
Securities sold under agreements to repurchase | |
| 47,170 | |
| 8 |
| 0.07 | |
| 46,348 | | | 7 |
| 0.06 | |
| 53,867 | |
| 11 |
| 0.08 | |
Borrowings | |
| 440 | |
| — |
| 0.39 | |
| 500 | | | 1 |
| 0.44 | |
| 2,582 | |
| 1 |
| 0.03 | |
Subordinated notes | | | 39,265 | | | 469 | | 4.80 | | | 39,245 | | | 470 | | 4.85 | | | — | | | — | | — | |
Junior subordinated debentures issued to capital trusts | |
| 37,671 | |
| 357 |
| 3.80 | |
| 37,655 | | | 355 |
| 3.83 | |
| 37,605 | |
| 399 |
| 4.26 | |
Total interest-bearing liabilities | |
| 2,538,962 | | $ | 1,447 |
| 0.23 | % |
| 2,439,921 | | $ | 1,477 |
| 0.25 | % |
| 2,224,200 | | $ | 1,453 |
| 0.26 | % |
Noninterest-bearing deposits | |
| 992,699 | | | |
|
| |
| 920,514 | |
|
|
|
| |
| 824,232 | |
|
|
|
| |
Noninterest-bearing liabilities | |
| 26,988 | | | |
|
| |
| 37,223 | |
|
|
|
| |
| 58,177 | |
|
|
|
| |
Total liabilities | |
| 3,558,649 | | | |
|
| |
| 3,397,658 | |
|
|
|
| |
| 3,106,609 | |
|
|
|
| |
Stockholders' Equity | |
| 365,190 | | | |
|
| |
| 363,557 | |
|
|
|
| |
| 346,540 | |
|
|
|
| |
Total liabilities and stockholders’ equity | | $ | 3,923,839 | | | |
|
| | $ | 3,761,215 | |
|
|
|
| | $ | 3,453,149 | |
|
|
|
| |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Net interest income/Net interest margin (3) | | | | | $ | 29,700 | | 3.14 | % | | | | $ | 29,129 |
| 3.25 | % | | | | $ | 28,908 |
| 3.51 | % |
Tax-equivalent adjustment (2) | | | | |
| 503 | | 0.05 | | | | |
| 503 |
| 0.05 | | | | |
| 483 |
| 0.06 | |
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (1) (2) | | | | | $ | 30,203 | | 3.19 | % |
| | | $ | 29,632 |
| 3.30 | % |
| | | $ | 29,391 |
| 3.57 | % |
Net interest rate spread (4) | |
| | |
| | | 3.06 | % |
|
| |
|
|
| 3.16 | % |
|
| |
|
|
| 3.42 | % |
Net interest-earning assets (5) | | $ | 1,257,257 | | | | |
| | $ | 1,197,528 | |
|
|
|
| | $ | 1,091,361 | |
|
|
|
| |
Ratio of interest-earning assets to interest-bearing liabilities | |
| 1.50 | |
| | |
| |
| 1.49 | |
|
|
|
| |
| 1.49 | |
|
|
|
| |
Cost of total deposits | |
| | |
| | | 0.07 | % |
|
| |
|
|
| 0.08 | % |
|
| |
|
|
| 0.14 | % |
* 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 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 11 of 17
HBT Financial, Inc.
Consolidated Financial Summary
| | Six Months Ended | | ||||||||||||||
|
| June 30, 2021 |
| June 30, 2020 | | ||||||||||||
|
| Average |
| |
| |
| Average |
| |
| | | ||||
|
| Balance | | Interest |
| Yield/Cost * |
| Balance | | Interest |
| Yield/Cost * | | ||||
|
| (dollars in thousands) | |||||||||||||||
ASSETS | | | | | | | | | | | | | | | | | |
Loans | | $ | 2,259,136 | | $ | 51,562 |
| 4.60 | % | $ | 2,203,031 | | $ | 53,484 |
| 4.88 | % |
Securities | |
| 1,063,312 | |
| 9,971 |
| 1.89 | |
| 695,194 | | | 8,761 |
| 2.53 | |
Deposits with banks | |
| 392,213 | |
| 195 |
| 0.10 | |
| 288,637 | | | 808 |
| 0.56 | |
Other | |
| 2,612 | |
| 25 |
| 1.93 | |
| 2,461 | | | 28 |
| 2.29 | |
Total interest-earning assets | |
| 3,717,273 | | $ | 61,753 |
| 3.35 | % |
| 3,189,323 | | $ | 63,081 |
| 3.98 | % |
Allowance for loan losses | |
| (30,390) | | | |
|
| |
| (24,300) | |
|
|
|
| |
Noninterest-earning assets | |
| 156,093 | | | |
|
| |
| 155,923 | |
|
|
|
| |
Total assets | | $ | 3,842,976 | | | |
|
| | $ | 3,320,946 | |
|
|
|
| |
| | | | | | | | | | | | | | | | | |
LIABILITIES AND STOCKHOLDERS' EQUITY | |
|
| |
|
|
|
| |
|
| |
|
|
|
| |
Liabilities | |
|
| |
|
|
|
| |
|
| |
|
|
|
| |
Interest-bearing deposits: | |
|
| |
|
|
|
| |
|
| |
|
|
|
| |
Interest-bearing demand | | $ | 1,008,664 | | $ | 244 |
| 0.05 | % | $ | 835,999 | | $ | 413 |
| 0.10 | % |
Money market | |
| 492,472 | | | 183 |
| 0.07 | |
| 470,782 | | | 512 |
| 0.22 | |
Savings | |
| 571,921 | | | 87 |
| 0.03 | |
| 454,442 | | | 120 |
| 0.05 | |
Time | |
| 292,509 | | | 743 |
| 0.51 | |
| 329,867 | | | 1,592 |
| 0.97 | |
Total interest-bearing deposits | |
| 2,365,566 | |
| 1,257 |
| 0.11 | |
| 2,091,090 | |
| 2,637 |
| 0.25 | |
Securities sold under agreements to repurchase | |
| 46,761 | | | 15 |
| 0.06 | |
| 47,917 | | | 31 |
| 0.13 | |
Borrowings | |
| 470 | | | 1 |
| 0.42 | |
| 1,402 | | | 1 |
| 0.07 | |
Subordinated notes | | | 39,255 | | | 939 | | 4.83 | | | — | | | — | | — | |
Junior subordinated debentures issued to capital trusts | |
| 37,663 | | | 712 |
| 3.81 | |
| 37,597 | | | 842 |
| 4.50 | |
Total interest-bearing liabilities | |
| 2,489,715 | | $ | 2,924 |
| 0.24 | % |
| 2,178,006 | | $ | 3,511 |
| 0.32 | % |
Noninterest-bearing deposits | |
| 956,806 | |
| |
|
| |
| 747,473 | |
|
|
|
| |
Noninterest-bearing liabilities | |
| 32,077 | |
| |
|
| |
| 51,437 | |
|
|
|
| |
Total liabilities | |
| 3,478,598 | |
| |
|
| |
| 2,976,916 | |
|
|
|
| |
Stockholders' Equity | |
| 364,378 | |
| |
|
| |
| 344,030 | |
|
|
|
| |
Total liabilities and stockholders’ equity | | $ | 3,842,976 | | | |
|
| |
| 3,320,946 | |
|
|
|
| |
| | | | | | | | | | | | | | | | | |
Net interest income/Net interest margin (3) | | | | | $ | 58,829 | | 3.19 | % |
| | | $ | 59,570 |
| 3.76 | % |
Tax-equivalent adjustment (2) | | | | |
| 1,006 | | 0.06 | |
| | |
| 946 |
| 0.06 | |
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (1) (2) | | | | | $ | 59,835 | | 3.25 | % |
| | | $ | 60,516 |
| 3.82 | % |
Net interest rate spread (4) | |
| | |
| | | 3.11 | % |
|
| |
|
|
| 3.66 | % |
Net interest-earning assets (5) | | $ | 1,227,558 | | | | |
| | $ | 1,011,317 | |
|
|
|
| |
Ratio of interest-earning assets to interest-bearing liabilities | |
| 1.49 | |
| | |
| |
| 1.46 | |
|
|
|
| |
Cost of total deposits | |
| | |
| | | 0.08 | % |
|
| |
|
|
| 0.19 | % |
* 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 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 12 of 17
HBT Financial, Inc.
Consolidated Financial Summary
| | June 30, | | March 31, | | June 30, | | |||
|
| 2021 |
| 2021 |
| 2020 |
| |||
|
| (dollars in thousands) | | |||||||
NONPERFORMING ASSETS | | | | | | | | | | |
Nonaccrual | | $ | 6,823 | | $ | 9,106 |
| $ | 13,945 | |
Past due 90 days or more, still accruing (1) | |
| 583 | |
| 10 |
| | 7 | |
Total nonperforming loans | |
| 7,406 | |
| 9,116 |
| | 13,952 | |
Foreclosed assets | |
| 7,757 | |
| 4,748 |
| | 4,450 | |
Total nonperforming assets | | $ | 15,163 | | $ | 13,864 | | $ | 18,402 | |
| | | | | | | | | | |
NONPERFORMING ASSETS (Originated) (2) | |
|
| |
|
| |
|
| |
Nonaccrual | | $ | 4,319 | | $ | 2,101 | | $ | 9,059 | |
Past due 90 days or more, still accruing | |
| 583 | |
| 10 | |
| 7 | |
Total nonperforming loans (originated) | |
| 4,902 | |
| 2,111 |
| | 9,066 | |
Foreclosed assets | |
| 856 | |
| 737 | |
| 1,092 | |
Total nonperforming assets (originated) | | $ | 5,758 | | $ | 2,848 | | $ | 10,158 | |
| | | | | | | | | | |
NONPERFORMING ASSETS (Acquired) (2) | |
|
| |
|
| |
|
| |
Nonaccrual | | $ | 2,504 | | $ | 7,005 | | $ | 4,886 | |
Past due 90 days or more, still accruing (1) | |
| — | |
| — | |
| — | |
Total nonperforming loans (acquired) | |
| 2,504 | |
| 7,005 |
| | 4,886 | |
Foreclosed assets | |
| 6,901 | |
| 4,011 | |
| 3,358 | |
Total nonperforming assets (acquired) | | $ | 9,405 | | $ | 11,016 | | $ | 8,244 | |
| | | | | | | | | | |
Allowance for loan losses | | $ | 26,507 | | $ | 28,759 | | $ | 29,723 | |
| | | | | | | | | | |
Loans, before allowance for loan losses | | $ | 2,152,119 | | $ | 2,270,705 | | $ | 2,275,795 | |
Loans, before allowance for loan losses (originated) (2) | |
| 2,054,291 | |
| 2,156,095 | |
| 2,132,189 | |
Loans, before allowance for loan losses (acquired) (2) | |
| 97,828 | |
| 114,610 | |
| 143,606 | |
| | | | | | | | | | |
CREDIT QUALITY RATIOS | |
|
| |
|
| |
|
| |
Allowance for loan losses to loans, before allowance for loan losses | |
| 1.23 | % |
| 1.27 | % |
| 1.31 | % |
Allowance for loan losses to nonperforming loans | |
| 357.91 | |
| 315.48 | |
| 213.04 | |
Nonperforming loans to loans, before allowance for loan losses | |
| 0.34 | |
| 0.40 | |
| 0.61 | |
Nonperforming assets to total assets | |
| 0.38 | |
| 0.36 | |
| 0.53 | |
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets | |
| 0.70 | |
| 0.61 | |
| 0.81 | |
| | | | | | | | | | |
CREDIT QUALITY RATIOS (Originated) (2) | |
|
| |
|
| |
|
| |
Nonperforming loans to loans, before allowance for loan losses | |
| 0.24 | % |
| 0.10 | % |
| 0.43 | % |
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets | |
| 0.28 | |
| 0.13 | |
| 0.48 | |
| | | | | | | | | | |
CREDIT QUALITY RATIOS (Acquired) (2) | |
|
| |
|
| |
|
| |
Nonperforming loans to loans, before allowance for loan losses | |
| 2.56 | % |
| 6.11 | % |
| 3.40 | % |
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets | |
| 8.98 | |
| 9.29 | |
| 5.61 | |
| (1) | Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $27 thousand, $29 thousand, and $0.1 million as of June 30, 2021, March 31, 2021, and June 30, 2020, respectively. |
| (2) | Originated loans and acquired loans along with the related credit quality ratios such as nonperforming loans to loans, before allowance for loan losses (originated and acquired) and nonperforming assets to loans, before allowance for loan losses 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 the Company. 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.
Page 13 of 17
HBT Financial, Inc.
Consolidated Financial Summary
| | Three Months Ended | | Six Months Ended | | |||||||||||
| | June 30, | | March 31, | | June 30, | | June 30, | | |||||||
|
| 2021 |
| 2021 |
| 2020 |
| 2021 |
| 2020 | | |||||
ALLOWANCE FOR LOAN LOSSES | | (dollars in thousands) | | |||||||||||||
Beginning balance | | $ | 28,759 | | $ | 31,838 | | $ | 26,087 | | $ | 31,838 | | $ | 22,299 | |
Provision | | | (2,162) | | | (3,405) | | | 3,573 | | | (5,567) | | | 7,928 | |
Charge-offs | | | (402) | | | (195) | | | (160) | | | (597) | | | (1,381) | |
Recoveries | | | 312 | | | 521 | | | 223 | | | 833 | | | 877 | |
Ending balance | | $ | 26,507 | | $ | 28,759 | | $ | 29,723 | | $ | 26,507 | | $ | 29,723 | |
| | | | | | | | | | | | | | | | |
Net charge-offs (recoveries) | | $ | 90 | | $ | (326) | | $ | (63) | | $ | (236) | | $ | 504 | |
Net charge-offs (recoveries) - (originated) (1) | | | (214) | | | (320) | | | 3 | | | (534) | | | 175 | |
Net charge-offs (recoveries) - (acquired) (1) | | | 304 | | | (6) | | | (66) | | | 298 | | | 329 | |
| | | | | | | | | | | | | | | | |
Average loans, before allowance for loan losses | | $ | 2,234,388 | | $ | 2,284,159 | | $ | 2,265,032 | | $ | 2,259,136 | | $ | 2,203,031 | |
Average loans, before allowance for loan losses (originated) (1) | | | 2,127,221 | | | 2,166,079 | | | 2,117,131 | | | 2,146,796 | | | 2,050,377 | |
Average loans, before allowance for loan losses (acquired) (1) | | | 107,167 | | | 118,080 | | | 147,901 | | | 112,340 | | | 152,654 | |
| | | | | | | | | | | | | | | | |
Net charge-offs (recoveries) to average loans, before allowance for loan losses * | | | 0.02 | % | | (0.06) | % | | (0.01) | % | | (0.02) | % | | 0.05 | % |
Net charge-offs (recoveries) to average loans, before allowance for loan losses (originated) * (1) | | | (0.04) | | | (0.06) | | | — | | | (0.05) | | | 0.02 | |
Net charge-offs (recoveries) to average loans, before allowance for loan losses (acquired) * (1) | | | 1.14 | | | (0.02) | | | (0.18) | | | 0.53 | | | 0.43 | |
* Annualized measure.
| (1) | Originated loans and acquired loans along with the related credit quality ratios such as net charge-offs (originated and acquired), average loans, before allowance for loan losses (originated and acquired), and net charge-offs to average loans, before allowance for loan losses (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 the Company. 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.
Page 14 of 17
HBT Financial, Inc.
Consolidated Financial Summary
| | As of or for the Three Months Ended | | Six Months Ended | | |||||||||||
| | June 30, | | March 31, | | June 30, | | June 30, | | |||||||
|
| 2021 |
| 2021 |
| 2020 |
| 2021 |
| 2020 | | |||||
| | (dollars in thousands, except per share data) | | |||||||||||||
EARNINGS AND PER SHARE INFORMATION | | | | | | | | | | | | | | | | |
Net income | | $ | 13,717 | | $ | 15,245 | | $ | 7,419 | | $ | 28,962 | | $ | 13,640 | |
Earnings per share - Basic | | | 0.50 | | | 0.55 | | | 0.27 | | | 1.06 | | | 0.50 | |
Earnings per share - Diluted | | | 0.50 | | | 0.55 | | | 0.27 | | | 1.05 | | | 0.50 | |
| | | | | | | | | | | | | | | | |
Book value per share | | $ | 13.64 | | $ | 13.05 | | $ | 12.67 | | | | | | | |
| | | | | | | | | | | | | | | | |
Shares of common stock outstanding | | | 27,355,053 | | | 27,382,069 | | | 27,457,306 | | | | | | | |
Weighted average shares of common stock outstanding | | | 27,362,579 | | | 27,430,912 | | | 27,457,306 | | | 27,396,557 | | | 27,457,306 | |
| | | | | | | | | | | | | | | | |
SUMMARY RATIOS | | | | | | | | | | | | | | | | |
Net interest margin * | | | 3.14 | % | | 3.25 | % | | 3.51 | % | | 3.19 | % | | 3.76 | % |
Efficiency ratio | | | 56.91 | | | 55.73 | | | 62.74 | | | 56.31 | | | 63.37 | |
Loan to deposit ratio | | | 62.84 | | | 67.66 | | | 75.48 | | | | | | | |
| | | | | | | | | | | | | | | | |
Return on average assets * | | | 1.40 | % | | 1.64 | % | | 0.86 | % | | 1.52 | % | | 0.83 | % |
Return on average stockholders' equity * | | | 15.07 | | | 17.01 | | | 8.61 | | | 16.03 | | | 7.97 | |
| | | | | | | | | | | | | | | | |
NON-GAAP FINANCIAL MEASURES (1) | | | | | | | | | | | | | | | | |
Adjusted net income | | $ | 14,168 | | $ | 14,033 | | $ | 8,218 | | $ | 28,201 | | $ | 16,597 | |
Adjusted earnings per share - Basic | | | 0.52 | | | 0.51 | | | 0.30 | | | 1.03 | | | 0.60 | |
Adjusted earnings per share - Diluted | | | 0.52 | | | 0.51 | | | 0.30 | | | 1.03 | | | 0.60 | |
| | | | | | | | | | | | | | | | |
Tangible book value per share | | $ | 12.70 | | $ | 12.10 | | $ | 11.68 | | | | | | | |
| | | | | | | | | | | | | | | | |
Net interest margin (tax equivalent basis) * (2) | | | 3.19 | % | | 3.30 | % | | 3.57 | % | | 3.25 | % | | 3.82 | % |
Efficiency ratio (tax equivalent basis) (2) | | | 56.18 | | | 55.03 | | | 61.93 | | | 55.59 | | | 62.56 | |
| | | | | | | | | | | | | | | | |
Return on average tangible common equity * | | | 16.22 | % | | 18.33 | % | | 9.34 | % | | 17.27 | % | | 8.66 | % |
| | | | | | | | | | | | | | | | |
Adjusted return on average assets * | | | 1.45 | % | | 1.51 | % | | 0.96 | % | | 1.48 | % | | 1.01 | % |
Adjusted return on average stockholders' equity * | | | 15.56 | | | 15.65 | | | 9.54 | | | 15.61 | | | 9.70 | |
Adjusted return on average tangible common equity * | | | 16.76 | | | 16.88 | | | 10.35 | | | 16.81 | | | 10.54 | |
* 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.
Page 15 of 17
Reconciliation of Non-GAAP Financial Measures –
Adjusted Net Income and Adjusted Return on Average Assets
| | Three Months Ended | | Six Months Ended | | |||||||||||
| | June 30, | | March 31, | | June 30, | | June 30, | | |||||||
|
| 2021 |
| 2021 |
| 2020 |
| 2021 |
| 2020 | | |||||
| | (dollars in thousands) | | |||||||||||||
Net income | | $ | 13,717 | | $ | 15,245 | | $ | 7,419 | | $ | 28,962 | | $ | 13,640 | |
Adjustments: | | | | | | | | | | | | | | | | |
Acquisition expenses | | | (157) | | | — | | | — | | | (157) | | | — | |
Branch closure expenses | | | (104) | | | — | | | — | | | (104) | | | — | |
Charges related to termination of certain employee benefit plans | | | — | | | — | | | (609) | | | — | | | (1,457) | |
Mortgage servicing rights fair value adjustment | | | (310) | | | 1,695 | | | (508) | | | 1,385 | | | (2,679) | |
Total adjustments | | | (571) | | | 1,695 | | | (1,117) | | | 1,124 | | | (4,136) | |
Tax effect of adjustments | | | 120 | | | (483) | | | 318 | | | (363) | | | 1,179 | |
Less adjustments, after tax effect | | | (451) | | | 1,212 | | | (799) | | | 761 | | | (2,957) | |
Adjusted net income | | $ | 14,168 | | $ | 14,033 | | $ | 8,218 | | $ | 28,201 | | $ | 16,597 | |
| | | | | | | | | | | | | | | | |
Average assets | | $ | 3,923,839 | | $ | 3,761,215 | | $ | 3,453,149 | | $ | 3,842,976 | | $ | 3,320,946 | |
| | | | | | | | | | | | | | | | |
Return on average assets * | | | 1.40 | % | | 1.64 | % | | 0.86 | % | | 1.52 | % | | 0.83 | % |
Adjusted return on average assets * | | | 1.45 | | | 1.51 | | | 0.96 | | | 1.48 | | | 1.01 | |
* Annualized measure.
Reconciliation of Non-GAAP Financial Measures –
Adjusted Earnings Per Share
| | Three Months Ended | | Six Months Ended | |||||||||||
| | June 30, | | March 31, | | June 30, | | June 30, | |||||||
|
| 2021 |
| 2021 |
| 2020 |
| 2021 |
| 2020 | |||||
| | (dollars in thousands, except per share data) | |||||||||||||
Numerator: | | | | | | | | | | | | | | | |
Net income | | $ | 13,717 | | $ | 15,245 | | $ | 7,419 | | $ | 28,962 | | $ | 13,640 |
Earnings allocated to participating securities (1) | | | (25) | | | (31) | | | (19) | | | (56) | | | (34) |
Numerator for earnings per share - basic and diluted | | $ | 13,692 | | $ | 15,214 | | $ | 7,400 | | $ | 28,906 | | $ | 13,606 |
| | | | | | | | | | | | | | | |
Adjusted net income | | $ | 14,168 | | $ | 14,033 | | $ | 8,218 | | $ | 28,201 | | $ | 16,597 |
Earnings allocated to participating securities (1) | | | (26) | | | (28) | | | (22) | | | (54) | | | (41) |
Numerator for adjusted earnings per share - basic and diluted | | $ | 14,142 | | $ | 14,005 | | $ | 8,196 | | $ | 28,147 | | $ | 16,556 |
| | | | | | | | | | | | | | | |
Denominator: | | | | | | | | | | | | | | | |
Weighted average common shares outstanding | | | 27,362,579 | | | 27,430,912 | | | 27,457,306 | | | 27,396,557 | | | 27,457,306 |
Dilutive effect of outstanding restricted stock units | | | 17,701 | | | 2,489 | | | — | | | 10,137 | | | — |
Weighted average common shares outstanding, including all dilutive potential shares | | | 27,380,280 | | | 27,433,401 | | | 27,457,306 | | | 27,406,694 | | | 27,457,306 |
| | | | | | | | | | | | | | | |
Earnings per share - Basic | | $ | 0.50 | | $ | 0.55 | | $ | 0.27 | | $ | 1.06 | | $ | 0.50 |
Earnings per share - Diluted | | $ | 0.50 | | $ | 0.55 | | $ | 0.27 | | $ | 1.05 | | $ | 0.50 |
| | | | | | | | | | | | | | | |
Adjusted earnings per share - Basic | | $ | 0.52 | | $ | 0.51 | | $ | 0.30 | | $ | 1.03 | | $ | 0.60 |
Adjusted earnings per share - Diluted | | $ | 0.52 | | $ | 0.51 | | $ | 0.30 | | $ | 1.03 | | $ | 0.60 |
| (1) | The Company has granted certain restricted stock units that contain non-forfeitable rights to dividend equivalents. Such restricted stock units are considered participating securities. As such, we have included these restricted stock units in the calculation of basic earnings per share and calculate 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. |
HBT Financial, Inc.
Page 16 of 17
Reconciliation of Non-GAAP Financial Measures –
Net Interest Margin (Tax Equivalent Basis)
| | Three Months Ended | | Six Months Ended | | |||||||||||
| | June 30, | | March 31, | | June 30, | | June 30, | | |||||||
|
| 2021 |
| 2021 |
| 2020 |
| 2021 |
| 2020 | | |||||
| | (dollars in thousands) | | |||||||||||||
Net interest income (tax equivalent basis) | | | | | | | | | | | | | | | | |
Net interest income | | $ | 29,700 | | $ | 29,129 | | $ | 28,908 | | $ | 58,829 | | $ | 59,570 | |
Tax-equivalent adjustment (1) | | | 503 | | | 503 | | | 483 | | | 1,006 | | | 946 | |
Net interest income (tax equivalent basis) (1) | | $ | 30,203 | | $ | 29,632 | | $ | 29,391 | | $ | 59,835 | | $ | 60,516 | |
| | | | | | | | | | | | | | | | |
Net interest margin (tax equivalent basis) | | | | | | | | | | | | | | | | |
Net interest margin * | | | 3.14 | % | | 3.25 | % | | 3.51 | % | | 3.19 | % | | 3.76 | % |
Tax-equivalent adjustment * (1) | | | 0.05 | | | 0.05 | | | 0.06 | | | 0.06 | | | 0.06 | |
Net interest margin (tax equivalent basis) * (1) | | | 3.19 | % | | 3.30 | % | | 3.57 | % | | 3.25 | % | | 3.82 | % |
| | | | | | | | | | | | | | | | |
Average interest-earning assets | | $ | 3,796,219 | | $ | 3,637,449 | | $ | 3,315,561 | | $ | 3,717,273 | | $ | 3,189,323 | |
* Annualized measure.
| (1) | On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%. |
Reconciliation of Non-GAAP Financial Measures –
Efficiency Ratio (Tax Equivalent Basis)
| | Three Months Ended | | Six Months Ended | | |||||||||||
| | June 30, | | March 31, | | June 30, | | June 30, | | |||||||
|
| 2021 |
| 2021 |
| 2020 |
| 2021 |
| 2020 | | |||||
| | (dollars in thousands) | | |||||||||||||
Efficiency ratio (tax equivalent basis) | | |
| | |
| | |
| | |
| | |
| |
Total noninterest expense | | $ | 22,154 | | $ | 22,544 | | $ | 23,499 | | $ | 44,698 | | $ | 46,806 | |
Less: amortization of intangible assets | | | 258 | | | 289 | | | 305 | | | 547 | | | 622 | |
Adjusted noninterest expense | | $ | 21,896 | | $ | 22,255 | | $ | 23,194 | | $ | 44,151 | | $ | 46,184 | |
| | | | | | | | | | | | | | | | |
Net interest income | | $ | 29,700 | | $ | 29,129 | | $ | 28,908 | | $ | 58,829 | | $ | 59,570 | |
Total noninterest income | | | 8,774 | | | 10,808 | | | 8,060 | | | 19,582 | | | 13,312 | |
Operating revenue | | | 38,474 | | | 39,937 | | | 36,968 | | | 78,411 | | | 72,882 | |
Tax-equivalent adjustment (1) | | | 503 | | | 503 | | | 483 | | | 1,006 | | | 946 | |
Operating revenue (tax equivalent basis) (1) | | $ | 38,977 | | $ | 40,440 | | $ | 37,451 | | $ | 79,417 | | $ | 73,828 | |
| | | | | | | | | | | | | | | | |
Efficiency ratio | | | 56.91 | % | | 55.73 | % | | 62.74 | % | | 56.31 | % | | 63.37 | % |
Efficiency ratio (tax equivalent basis) (1) | | | 56.18 | | | 55.03 | | | 61.93 | | | 55.59 | | | 62.56 | |
| (1) | On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%. |
HBT Financial, Inc.
Page 17 of 17
Reconciliation of Non-GAAP Financial Measures –
Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share
|
| June 30, | | March 31, |
| June 30, | | |||
|
| 2021 |
| 2021 |
| 2020 | | |||
| | (dollars in thousands, except per share data) | | |||||||
Tangible common equity | | | | | | | | | | |
Total stockholders' equity | | $ | 373,194 | | $ | 357,406 | | $ | 347,840 | |
Less: Goodwill | | | 23,620 | | | 23,620 | | | 23,620 | |
Less: Core deposit intangible assets, net | | | 2,251 | | | 2,509 | | | 3,408 | |
Tangible common equity | | $ | 347,323 | | $ | 331,277 | | $ | 320,812 | |
| | | | | | | | | | |
Tangible assets | | | | | | | | | | |
Total assets | | $ | 3,953,677 | | $ | 3,865,614 | | $ | 3,501,412 | |
Less: Goodwill | | | 23,620 | | | 23,620 | | | 23,620 | |
Less: Core deposit intangible assets, net | | | 2,251 | | | 2,509 | | | 3,408 | |
Tangible assets | | $ | 3,927,806 | | $ | 3,839,485 | | $ | 3,474,384 | |
| | | | | | | | | | |
Total stockholders' equity to total assets | | | 9.44 | % | | 9.25 | % | | 9.93 | % |
Tangible common equity to tangible assets | | | 8.84 | | | 8.63 | | | 9.23 | |
| | | | | | | | | | |
Shares of common stock outstanding | | | 27,355,053 | | | 27,382,069 | | | 27,457,306 | |
| | | | | | | | | | |
Book value per share | | $ | 13.64 | | $ | 13.05 | | $ | 12.67 | |
Tangible book value per share | | | 12.70 | | | 12.10 | | | 11.68 | |
Reconciliation of Non-GAAP Financial Measures –
Adjusted Return on Average Stockholders' Equity and Adjusted Return on Tangible Common Equity
| | Three Months Ended | | Six Months Ended | | |||||||||||
| | June 30, | | March 31, | | June 30, | | June 30, | | |||||||
|
| 2021 |
| 2021 |
| 2020 |
| 2021 |
| 2020 | | |||||
| | (dollars in thousands) | | |||||||||||||
Average tangible common equity | | | | | | | | | | | | | | | | |
Total stockholders' equity | | $ | 365,190 | | $ | 363,557 | | $ | 346,540 | | $ | 364,378 | | $ | 344,030 | |
Less: Goodwill | | | 23,620 | | | 23,620 | | | 23,620 | | | 23,620 | | | 23,620 | |
Less: Core deposit intangible assets, net | | | 2,410 | | | 2,686 | | | 3,589 | | | 2,547 | | | 3,743 | |
Average tangible common equity | | $ | 339,160 | | $ | 337,251 | | $ | 319,331 | | $ | 338,211 | | $ | 316,667 | |
| | | | | | | | | | | | | | | | |
Net income | | $ | 13,717 | | $ | 15,245 | | $ | 7,419 | | $ | 28,962 | | $ | 13,640 | |
Adjusted net income | | | 14,168 | | | 14,033 | | | 8,218 | | | 28,201 | | | 16,597 | |
| | | | | | | | | | | | | | | | |
Return on average stockholders' equity * | | | 15.07 | % | | 17.01 | % | | 8.61 | % | | 16.03 | % | | 7.97 | % |
Return on average tangible common equity * | | | 16.22 | | | 18.33 | | | 9.34 | | | 17.27 | | | 8.66 | |
| | | | | | | | | | | | | | | | |
Adjusted return on average stockholders' equity * | | | 15.56 | % | | 15.65 | % | | 9.54 | % | | 15.61 | % | | 9.70 | % |
Adjusted return on average tangible common equity * | | | 16.76 | | | 16.88 | | | 10.35 | | | 16.81 | | | 10.54 | |
* Annualized measure.