0001558370-22-003421 | 10-K | XBRL Viewer

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CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY - USD ($) $ in Thousands	Voting Common Stock NXT Bancorporation, Inc	Voting Common Stock	Series A Nonvoting Common Stock	Surplus NXT Bancorporation, Inc	Surplus	Retained Earnings	Accumulated Other Comprehensive Income (Loss)	Treasury Stock	NXT Bancorporation, Inc	Total
Balance at Dec. 31, 2018		$ 3	$ 178		$ 32,288	$ 315,234	$ (4,288)	$ (3,019)		$ 340,396
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income						66,865				66,865
Other comprehensive income (loss)							12,120			12,120
Cash dividends						(224,956)				(224,956)
Reclassification of undistributed S-Corp earnings					20,472	(20,472)
Issuance of common stock, net of issuance costs		95			138,398					138,493
Conversion of common stock		178	$ (178)
Cancelation of treasury stock		(1)			(634)	(2,384)		3,019
Balance at Dec. 31, 2019		275			190,524	134,287	7,832			332,918
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income						36,845				36,845
Other comprehensive income (loss)							10,321			10,321
Stock-based compensation					351					351
Cash dividends and dividend equivalents						(16,518)				(16,518)
Balance at Dec. 31, 2020		275			190,875	154,614	18,153			363,917
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income						56,271				56,271
Other comprehensive income (loss)							(16,682)			(16,682)
Stock-based compensation					764					764
Repurchase of common stock								(4,906)		(4,906)
Cash dividends and dividend equivalents						(16,753)				(16,753)
Issuance of common stock, net of issuance costs	$ 18			$ 29,252					$ 29,270
Balance at Dec. 31, 2021		$ 293			$ 220,891	$ 194,132	$ 1,471	$ (4,906)		$ 411,881

SECURITIES - Amortized cost and Fair values of securities with gross unrealized gains and losses (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Available-for-sale
Amortized Cost	$ 938,360	$ 899,700
Gross Unrealized Gains	12,796	24,260
Gross Unrealized Losses	(8,988)	(1,091)
Fair Value	942,168	922,869
Held-to-maturity
Amortized Cost	336,185	68,395
Gross Unrealized Gains	2,796	4,064
Gross Unrealized Losses	(2,954)	(18)
Fair Value	336,027	72,441
Total Amortized Cost	1,274,545	968,095
Total Gross Unrealized Gains	15,592	28,324
Total Gross Unrealized Losses	(11,942)	(1,109)
Total Fair Value	1,278,195	995,310
U.S. Treasury
Available-for-sale
Amortized Cost	109,002
Gross Unrealized Gains	328
Gross Unrealized Losses	(354)
Fair Value	108,976
U.S. government agency
Available-for-sale
Amortized Cost	129,269	118,282
Gross Unrealized Gains	1,303	3,720
Gross Unrealized Losses	(2,467)	(9)
Fair Value	128,105	121,993
Held-to-maturity
Amortized Cost	12,349
Gross Unrealized Gains	42
Gross Unrealized Losses	(51)
Fair Value	12,340
Municipal securities
Available-for-sale
Amortized Cost	293,837	265,309
Gross Unrealized Gains	6,144	9,232
Gross Unrealized Losses	(2,904)	(280)
Fair Value	297,077	274,261
Held-to-maturity
Amortized Cost	15,666	22,484
Gross Unrealized Gains	809	1,390
Fair Value	16,475	23,874
Mortgage-backed: Agency residential
Available-for-sale
Amortized Cost	178,236	198,543
Gross Unrealized Gains	2,149	4,871
Gross Unrealized Losses	(919)	(162)
Fair Value	179,466	203,252
Held-to-maturity
Amortized Cost	20,555	13,031
Gross Unrealized Gains	196	452
Gross Unrealized Losses	(102)
Fair Value	20,649	13,483
Mortgage-backed: Agency commercial
Available-for-sale
Amortized Cost	164,875	246,649
Gross Unrealized Gains	1,234	4,651
Gross Unrealized Losses	(2,048)	(534)
Fair Value	164,061	250,766
Held-to-maturity
Amortized Cost	287,615	32,880
Gross Unrealized Gains	1,749	2,222
Gross Unrealized Losses	(2,801)	(18)
Fair Value	286,563	35,084
Corporate
Available-for-sale
Amortized Cost	63,141	70,917
Gross Unrealized Gains	1,638	1,786
Gross Unrealized Losses	(296)	(106)
Fair Value	$ 64,483	$ 72,597

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Accretable Yield For Loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Changes in accretable yield for loans acquired with deteriorated credit quality
Beginning balance	$ 1,397	$ 1,662	$ 2,101
Reclassification from non-accretable difference	508	288	822
Disposals	(1,089)
Accretion income	(403)	(553)	(1,261)
Ending balance	$ 413	$ 1,397	$ 1,662

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
NET INCOME	$ 56,271	$ 36,845	$ 66,865
OTHER COMPREHENSIVE (LOSS) INCOME
Unrealized (losses) gains on debt securities available-for-sale	(24,798)	15,272	12,458
Reclassification adjustment for amortization of net unrealized losses on debt securities transferred to held-to-maturity	687	18	(264)
Unrealized gains (losses) on derivative instruments	366	(1,084)	(698)
Reclassification adjustment for net settlements on derivative instruments	412	238	(87)
Total other comprehensive (loss) income, before tax	(23,333)	14,444	11,409
Income tax (benefit) expense	(6,651)	4,123	(711)
Total other comprehensive (loss) income	(16,682)	10,321	12,120
TOTAL COMPREHENSIVE INCOME	$ 39,589	$ 47,166	$ 78,985

BANK PREMISES AND EQUIPMENT (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
BANK PREMISES AND EQUIPMENT
Bank premises and equipment	$ 101,379	$ 98,825
Less accumulated depreciation	48,896	45,921
Total bank premises and equipment, net	52,483	52,904
Land, buildings, and improvements
BANK PREMISES AND EQUIPMENT
Bank premises and equipment	77,180	75,790
Furniture, fixtures, and equipment
BANK PREMISES AND EQUIPMENT
Bank premises and equipment	$ 24,199	$ 23,035

INCOME TAXES

12 Months Ended

Dec. 31, 2021

INCOME TAXES

INCOME TAXES

NOTE 17 – INCOME TAXES

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 will only reflect an effective state income tax rate. In connection with the conversion of tax status, the Company recognized a deferred tax asset of $534,000 and an income tax benefit of $534,000.

In recording the impact of the conversion to a C Corporation, the Company recorded a deferred income tax expense of $2,741,000 related to the unrealized gains (losses) on debt securities and derivatives, through the income statement in accordance with ASC 740-20-45-8; therefore, the amount shown in other comprehensive income has not been reduced by the above expense. This difference will remain in accumulated other comprehensive income until the underlying securities are sold or mature and the underlying cash flow hedging relationships terminate in accordance with the portfolio approach allowed under ASC 740.

Allocation of income tax expense between current and deferred portions for the years ended December 31 is as follows:


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Current
Federal	$	11,330	$	8,358	$	4,849
State		6,053		4,709		3,102
Total current		17,383		13,067		7,951

Deferred
Federal		1,945		(226)		(1,437)
State		963		(113)		(724)
Change in tax status		—		—		(534)
Total deferred		2,908		(339)		(2,695)
Income tax expense	$	20,291	$	12,728	$	5,256

Income tax expense differs from the statutory federal rate for the years ended December 31 due to the following:


	Year Ended December 31,
	2021				2020				2019
	Amount		Percentage		Amount		Percentage		Amount		Percentage

	(dollars in thousands)
Federal income tax, at statutory rate	$	16,078	21.0	%	$	10,410	21.0	%	$	3,933	5.5	%
Increase (decrease) resulting from:
Federally tax exempt interest income		(1,426)	(1.9)			(1,470)	(3.0)			(372)	(0.5)
State taxes, net of federal benefit		5,430	7.1			3,631	7.4			2,212	3.1
Change in tax status		—	—			—	—			(534)	(0.8)
Other		209	0.3			157	0.3			17	—
Income tax expense	$	20,291	26.5	%	$	12,728	25.7	%	$	5,256	7.3	%

The components of the deferred tax assets and liabilities are as follows:


	December 31, 2021		December 31, 2020

	(dollars in thousands)
Deferred tax assets
Allowance for loan losses	$	6,756	$	9,046
Compensation related		2,314		2,301
Deferred loan fees		1,059		1,595
Nonaccrual interest		489		660
Foreclosed assets		43		45
Goodwill		316		336
Net unrealized losses on debt securities		304		—
Other		853		1,011
Total deferred tax assets		12,134		14,994

Deferred tax liabilities
Fixed asset depreciation		4,188		4,361
Mortgage servicing rights		2,262		1,692
Other purchase accounting adjustments		776		1,115
Intangible assets		374		580
Prepaid assets		664		685
Net unrealized gains on debt securities		—		6,569
Other		505		370
Total deferred tax liabilities		8,769		15,372
Net deferred tax asset (liability)	$	3,365	$	(378)

- Definition

The entire disclosure for income taxes. Disclosures may include net deferred tax liability or asset recognized in an enterprise's statement of financial position, net change during the year in the total valuation allowance, approximate tax effect of each type of temporary difference and carryforward that gives rise to a significant portion of deferred tax liabilities and deferred tax assets, utilization of a tax carryback, and tax uncertainties information.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 21
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32857-109319

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 2
-Subparagraph (SAB Topic 11.C)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330215-122817

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 17
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32809-109319

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SAB TOPIC 6.I.5.Q1)
-URI http://asc.fasb.org/extlink&oid=122134291&loc=d3e330036-122817

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 10
-Section 50
-Paragraph 14
-URI http://asc.fasb.org/extlink&oid=121826272&loc=d3e32705-109319

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 270
-Section 50
-Paragraph 1
-URI http://asc.fasb.org/extlink&oid=6424409&loc=d3e44925-109338

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-URI http://asc.fasb.org/topic&trid=2144680

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 740
-SubTopic 30
-Section 50
-Paragraph 2
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=6424122&loc=d3e41874-109331

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(h)(2))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

+ Details

INCOME TAXES (Tables)

12 Months Ended

Dec. 31, 2021

INCOME TAXES

Schedule of allocation of federal and state income taxes between current and deferred portions


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Current
Federal	$	11,330	$	8,358	$	4,849
State		6,053		4,709		3,102
Total current		17,383		13,067		7,951

Deferred
Federal		1,945		(226)		(1,437)
State		963		(113)		(724)
Change in tax status		—		—		(534)
Total deferred		2,908		(339)		(2,695)
Income tax expense	$	20,291	$	12,728	$	5,256

Schedule of effective income tax rate reconciliation


	Year Ended December 31,
	2021				2020				2019
	Amount		Percentage		Amount		Percentage		Amount		Percentage

	(dollars in thousands)
Federal income tax, at statutory rate	$	16,078	21.0	%	$	10,410	21.0	%	$	3,933	5.5	%
Increase (decrease) resulting from:
Federally tax exempt interest income		(1,426)	(1.9)			(1,470)	(3.0)			(372)	(0.5)
State taxes, net of federal benefit		5,430	7.1			3,631	7.4			2,212	3.1
Change in tax status		—	—			—	—			(534)	(0.8)
Other		209	0.3			157	0.3			17	—
Income tax expense	$	20,291	26.5	%	$	12,728	25.7	%	$	5,256	7.3	%

Schedule of components of the net deferred tax asset (liability)


	December 31, 2021		December 31, 2020

	(dollars in thousands)
Deferred tax assets
Allowance for loan losses	$	6,756	$	9,046
Compensation related		2,314		2,301
Deferred loan fees		1,059		1,595
Nonaccrual interest		489		660
Foreclosed assets		43		45
Goodwill		316		336
Net unrealized losses on debt securities		304		—
Other		853		1,011
Total deferred tax assets		12,134		14,994

Deferred tax liabilities
Fixed asset depreciation		4,188		4,361
Mortgage servicing rights		2,262		1,692
Other purchase accounting adjustments		776		1,115
Intangible assets		374		580
Prepaid assets		664		685
Net unrealized gains on debt securities		—		6,569
Other		505		370
Total deferred tax liabilities		8,769		15,372
Net deferred tax asset (liability)	$	3,365	$	(378)

SECURITIES - Investments in a Continuous Unrealized Loss Position (Details) $ in Thousands	Dec. 31, 2021 USD ($) item	Dec. 31, 2020 USD ($)
Available-for-sale: Unrealized Loss
Less than 12 Months	$ (7,334)	$ (1,061)
12 Months or More	(1,654)	(30)
Total Unrealized Loss of Available-for-sale securities	(8,988)	(1,091)
Held-to-maturity: Unrealized Loss
Less than 12 Months	(2,826)	(18)
12 Months or More	(128)
Total Unrealized Loss of Held-to-maturity securities	(2,954)	(18)
Available-for-sale: Fair Value
Less than 12 Months	445,604	107,933
12 Months or More	38,324	7,939
Total Fair Value Available-for-sale securities	483,928	115,872
Held-to-maturity: Fair value
Less than 12 Months	194,309	2,983
12 Months or More	2,776
Total Fair Value Held-to-maturity securities	197,085	2,983
Total: Unrealized Losses
Less Than 12 Months	(10,160)	(1,079)
12 Months or More	(1,782)	(30)
Total Unrealized Losses	(11,942)	(1,109)
Total: Fair Value
Less than 12 Months	639,913	110,916
12 Months or More	41,100	7,939
Total Fair Value	$ 681,013	118,855
Number of securities in an unrealized loss position for a period of twelve months or more \| item	37
Number of securities in an unrealized loss position for a period of less than twelve months \| item	235
U.S. Treasury
Available-for-sale: Unrealized Loss
Less than 12 Months	$ (354)
Total Unrealized Loss of Available-for-sale securities	(354)
Held-to-maturity: Unrealized Loss
Less than 12 Months	(51)
Total Unrealized Loss of Held-to-maturity securities	(51)
Available-for-sale: Fair Value
Less than 12 Months	68,410
Total Fair Value Available-for-sale securities	68,410
Held-to-maturity: Fair value
Less than 12 Months	4,949
Total Fair Value Held-to-maturity securities	4,949
U.S. government agency
Available-for-sale: Unrealized Loss
Less than 12 Months	(2,183)	(9)
12 Months or More	(284)
Total Unrealized Loss of Available-for-sale securities	(2,467)	(9)
Available-for-sale: Fair Value
Less than 12 Months	80,219	5,919
12 Months or More	5,578
Total Fair Value Available-for-sale securities	85,797	5,919
Municipal securities
Available-for-sale: Unrealized Loss
Less than 12 Months	(2,018)	(280)
12 Months or More	(886)
Total Unrealized Loss of Available-for-sale securities	(2,904)	(280)
Available-for-sale: Fair Value
Less than 12 Months	89,424	19,652
12 Months or More	17,327
Total Fair Value Available-for-sale securities	106,751	19,652
Mortgage-backed: Agency residential
Available-for-sale: Unrealized Loss
Less than 12 Months	(851)	(142)
12 Months or More	(68)	(20)
Total Unrealized Loss of Available-for-sale securities	(919)	(162)
Held-to-maturity: Unrealized Loss
Less than 12 Months	(102)
Total Unrealized Loss of Held-to-maturity securities	(102)
Available-for-sale: Fair Value
Less than 12 Months	91,703	20,387
12 Months or More	4,305	4,490
Total Fair Value Available-for-sale securities	96,008	24,877
Held-to-maturity: Fair value
Less than 12 Months	14,932
Total Fair Value Held-to-maturity securities	14,932
Mortgage-backed: Agency commercial
Available-for-sale: Unrealized Loss
Less than 12 Months	(1,921)	(524)
12 Months or More	(127)	(10)
Total Unrealized Loss of Available-for-sale securities	(2,048)	(534)
Held-to-maturity: Unrealized Loss
Less than 12 Months	(2,673)	(18)
12 Months or More	(128)
Total Unrealized Loss of Held-to-maturity securities	(2,801)	(18)
Available-for-sale: Fair Value
Less than 12 Months	113,111	57,126
12 Months or More	6,443	3,449
Total Fair Value Available-for-sale securities	119,554	60,575
Held-to-maturity: Fair value
Less than 12 Months	174,428	2,983
12 Months or More	2,776
Total Fair Value Held-to-maturity securities	177,204	2,983
Corporate
Available-for-sale: Unrealized Loss
Less than 12 Months	(7)	(106)
12 Months or More	(289)
Total Unrealized Loss of Available-for-sale securities	(296)	(106)
Available-for-sale: Fair Value
Less than 12 Months	2,737	4,849
12 Months or More	4,671
Total Fair Value Available-for-sale securities	$ 7,408	$ 4,849

DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts not designated as hedging instruments (Details) - Not designated - Interest rate swap - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Gross gains	$ 13,773	$ 24,758	$ 13,537
Gross losses	(13,773)	(24,758)	(13,500)
Net gains (losses)			$ 37
Other assets
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	115,921	122,313
Derivative financial assets fair value	8,697	15,360
Other assets \| Commercial Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	112,041	122,313
Derivative financial assets fair value	8,622	15,360
Other assets \| Financial Institutions Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative asset notional amount	3,880
Derivative financial assets fair value	75
Other liabilities
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	115,921	122,313
Derivative financial liabilities fair value	(8,697)	(15,360)
Other liabilities \| Commercial Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	3,880
Derivative financial liabilities fair value	(75)
Other liabilities \| Financial Institutions Borrower
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative liability notional amount	112,041	122,313
Derivative financial liabilities fair value	$ (8,622)	$ (15,360)

JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Carrying Values (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) subsidiary	Dec. 31, 2020 USD ($)
SUBORDINATED NOTES
Number of subsidiary business trusts \| subsidiary	5
Total junior subordinated debentures, at carrying value	$ 39,316	$ 39,238
Junior Subordinated Debentures Issued
SUBORDINATED NOTES
Face amount	38,765	38,765
Total junior subordinated debentures, at carrying value	37,714	37,648
Junior Subordinated Debentures Issued \| Heartland Bancorp, Inc. Capital Trust B
SUBORDINATED NOTES
Face amount	10,310	10,310
Junior Subordinated Debentures Issued \| Heartland Bancorp, Inc. Capital Trust C
SUBORDINATED NOTES
Face amount	10,310	10,310
Junior Subordinated Debentures Issued \| Heartland Bancorp, Inc. Capital Trust D
SUBORDINATED NOTES
Face amount	5,155	5,155
Junior Subordinated Debentures Issued \| FFBI Capital Trust I
SUBORDINATED NOTES
Face amount	7,217	7,217
Junior Subordinated Debentures Issued \| National Bancorp Statutory Trust I
SUBORDINATED NOTES
Face amount	5,773	5,773
Unamortized discount	$ (1,051)	$ (1,117)

BANK PREMISES AND EQUIPMENT - Depreciation Expense (Details)	12 Months Ended
	Dec. 31, 2021 USD ($) item	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)
BANK PREMISES AND EQUIPMENT
Total depreciation expense	$ 3,074,000	$ 2,941,000	$ 2,709,000
Number of branches closed or consolidated \| item	6
Bank premises held for sale total	$ 1,452,000	121,000
Impairment losses on bank premises held for sale	661,000	0	37,000
Building and improvements
BANK PREMISES AND EQUIPMENT
Total depreciation expense	1,694,000	1,761,000	1,813,000
Furniture, fixtures, and equipment
BANK PREMISES AND EQUIPMENT
Total depreciation expense	$ 1,380,000	$ 1,180,000	$ 896,000

EMPLOYEE BENEFIT PLANS

12 Months Ended

Dec. 31, 2021

EMPLOYEE BENEFIT PLANS

EMPLOYEE BENEFIT PLANS

NOTE 20 – EMPLOYEE BENEFIT PLANS

Profit Sharing Plan

During the years ended December 31, 2021, 2020, and 2019, the Company’s profit sharing plan contribution expense amounted to $1,269,000, $1,118,000, and $1,223,000, respectively. The Company’s contributions vest to employees ratably over a six-year period.

Medical Insurance Benefits

The Company is partially self-insured for medical claims filed by its employees. As of December 31, 2021 and 2020, the Company’s maximum aggregate liability under the plan was $6,588,000 and $6,287,000, respectively. During the years ended December 31, 2021, 2020, and 2019, medical benefits expense amounted to $4,161,000, $4,840,000, and $3,734,000, respectively.

LOAN SERVICING (Tables)

12 Months Ended

Dec. 31, 2021

LOAN SERVICING

Schedule of activity in mortgage servicing rights


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Beginning balance	$	5,934	$	8,518	$	10,918
Acquired		370		—		—
Capitalized servicing rights		1,200		1,981		1,018
Fair value adjustment:
Attributable to payments and principal reductions		(1,788)		(2,364)		(1,614)
Attributable to changes in valuation inputs and assumptions		2,278		(2,201)		(1,804)
Total fair value adjustment		490		(4,565)		(3,418)
Ending balance	$	7,994	$	5,934	$	8,518

SECURITIES - Amortized cost and Fair values of held-to-maturity securities transferred from available-for-sale securities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Jun. 30, 2021	Mar. 31, 2021	Dec. 31, 2020
Held-to-maturity
Debt securities held-to-maturity	$ 336,185			$ 68,395
Fair Value	336,027			72,441
U.S. government agency
Held-to-maturity
Debt securities held-to-maturity	12,349
Fair Value	12,340
Mortgage-backed: Agency residential
Held-to-maturity
Debt securities held-to-maturity	20,555			13,031
Fair Value	20,649			13,483
Mortgage-backed: Agency commercial
Held-to-maturity
Debt securities held-to-maturity	287,615			32,880
Fair Value	$ 286,563			$ 35,084
Debt Securities Transferred
Held-to-maturity
Debt securities held-to-maturity		$ 99,271	$ 135,161
Fair Value		99,275	129,720
Debt Securities Transferred \| U.S. government agency
Held-to-maturity
Debt securities held-to-maturity			7,593
Fair Value			7,323
Debt Securities Transferred \| Mortgage-backed: Agency residential
Held-to-maturity
Debt securities held-to-maturity			8,776
Fair Value			8,536
Debt Securities Transferred \| Mortgage-backed: Agency commercial
Held-to-maturity
Debt securities held-to-maturity		99,271	118,792
Fair Value		$ 99,275	$ 113,861

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Assigned Risk Ratings (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	$ 2,499,689	$ 2,247,006
Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	2,269,228	1,953,912
Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	148,285	208,584
Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	82,176	84,510
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	286,946	393,312
Commercial and industrial \| Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	267,088	368,843
Commercial and industrial \| Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	5,114	18,258
Commercial and industrial \| Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	14,744	6,211
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	247,796	222,723
Agricultural and farmland \| Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	221,898	191,662
Agricultural and farmland \| Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	25,213	25,540
Agricultural and farmland \| Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	685	5,521
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	234,544	222,360
Commercial real estate - owner occupied \| Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	198,862	176,823
Commercial real estate - owner occupied \| Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	24,098	31,990
Commercial real estate - owner occupied \| Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	11,584	13,547
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	684,023	520,395
Commercial real estate - non-owner occupied \| Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	619,212	432,752
Commercial real estate - non-owner occupied \| Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	32,372	58,699
Commercial real estate - non-owner occupied \| Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	32,439	28,944
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	263,911	236,391
Multi-family \| Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	241,362	204,449
Multi-family \| Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	22,549	31,066
Multi-family \| Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total		876
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	298,048	225,652
Construction and land development \| Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	268,556	193,646
Construction and land development \| Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	27,474	28,193
Construction and land development \| Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	2,018	3,813
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	327,837	306,775
One-to-four family residential \| Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	308,951	280,198
One-to-four family residential \| Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	11,221	14,526
One-to-four family residential \| Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	7,665	12,051
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	156,584	119,398
Municipal, consumer, and other \| Pass
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	143,299	105,539
Municipal, consumer, and other \| Pass-Watch
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	244	312
Municipal, consumer, and other \| Substandard
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	$ 13,041	$ 13,547

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE
Balance at end of year	$ 61,256	$ 45,736
Weighted average rate as of end of year	0.07%	0.06%
Fair value of securities underlying the agreements	$ 64,164	$ 62,472
Carrying value of securities underlying the agreements	$ 64,262	$ 62,415

DERIVATIVE FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2021

DERIVATIVE FINANCIAL INSTRUMENTS

DERIVATIVE FINANCIAL INSTRUMENTS

NOTE 15 – DERIVATIVE FINANCIAL INSTRUMENTS

Derivative financial instruments are negotiated contracts entered into by two issuing counterparties containing specific agreement terms, including the underlying instrument, amount, exercise price, and maturities. The derivatives accounting guidance requires that the Company recognize all derivative financial instruments as either assets or liabilities at fair value in the consolidated balance sheets. The Company may utilize interest rate swap agreements as part of its asset liability management strategy to help manage its interest rate risk position.

Interest Rate Swaps Designated as Cash Flow Hedges

The Company designated certain interest rate swap agreements as cash flow hedges on variable-rate borrowings. For derivative instruments that are designated and qualify as a cash flow hedge, the gain or loss on interest rate swaps designated as cash flow hedging instruments are reported as a component of accumulated other comprehensive income (loss) and reclassified into earnings in the same period or periods during which the hedged transactions affect earnings.

The interest rate swap agreements designated as cash flow hedges are summarized as follows:


	December 31, 2021				December 31, 2020
	Notional		Fair		Notional		Fair
	Amount		Value		Amount		Value

	(dollars in thousands)
Fair value recorded in other liabilities	$	17,000	$	(680)	$	17,000	$	(1,458)

As of December 31, 2021, the interest rate swap agreements designated as cash flow hedges had contractual maturities between 2024 and 2025. As of December 31, 2021 and 2020, the Company had cash pledged and held on deposit at counterparties of $780,000 and $1,630,000, respectively.

During the three months ended March 31, 2019, the Company had an interest rate swap contract with a notional amount of $10,000,000 designated as a cash flow hedge on variable-rate loans. Beginning April 1, 2019, this hedging relationship was no longer considered highly effective, and the Company discontinued hedge accounting. In accordance with hedge accounting guidance, the net unrealized gain associated with the discontinued hedging relationship, recorded within accumulated other comprehensive income, was reclassified into earnings through April 7, 2020, the period the hedged forecasted transactions affected earnings.

For the years ended December 31, 2021, 2020, and 2019, the effect of interest rate swap agreements designated as cash flow hedges on the consolidated statements of income are summarized as follows:


Location of gross gain (loss) reclassified	Amounts of gross gain (loss)
from accumulated other	reclassified from accumulated
comprehensive income to income	other comprehensive income

	Year Ended December 31,
	2021		2020		2019

Designated as cash flow hedges:	(dollars in thousands)
Taxable loan interest income	$	—	$	64	$	116
Junior subordinated debentures interest expense		(412)		(302)		(29)
Total	$	(412)	$	(238)	$	87

Interest Rate Swaps Not Designated as Hedging Instruments

The Company may offer interest rate swap agreements to its commercial borrowers in connection with their risk management needs. The Company manages the risk associated with these contracts by entering into an equal and offsetting derivative with a third-party financial institution. While these interest rate swap agreements generally worked together as an economic interest rate hedge, the Company did not designate them for hedge accounting treatment. Consequently, changes in fair value of the corresponding derivative financial asset or liability were recorded as either a charge or credit to current earnings during the period in which the changes occurred.

The interest rate swap agreements not designated as hedging instruments are summarized as follows:


	December 31, 2021				December 31, 2020
	Notional		Fair		Notional		Fair
	Amount		Value		Amount		Value

	(dollars in thousands)
Fair value recorded in other assets:
Interest rate swaps with a commercial borrower counterparty	$	112,041	$	8,622	$	122,313	$	15,360
Interest rate swaps with a financial institution counterparty		3,880		75		—		—
Total fair value recorded in other assets	$	115,921	$	8,697	$	122,313	$	15,360

Fair value recorded in other liabilities:
Interest rate swaps with a commercial borrower counterparty	$	3,880	$	(75)	$	—	$	—
Interest rate swaps with a financial institution counterparty		112,041		(8,622)		122,313		(15,360)
Total fair value recorded in other liabilities	$	115,921	$	(8,697)	$	122,313	$	(15,360)

As of December 31, 2021, the interest rate swap agreements not designated as hedging instruments had contractual maturities between 2022 and 2042. As of December 31, 2021 and 2020, the Company had $7,483,000 and $15,490,000, respectively, of debt securities pledged and held in safekeeping at the financial institution counterparty.

For the years ended December 31, 2021, 2020 and 2019, the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income on the consolidated statements of income are summarized as follows:



	Year Ended December 31,
	2021		2020		2019

Not designated as hedging instruments:	(dollars in thousands)
Gross gains	$	13,773	$	24,758	$	13,537
Gross losses		(13,773)		(24,758)		(13,500)
Net gains (losses)	$	—	$	—	$	37

SECURITIES (Tables)

12 Months Ended

Dec. 31, 2021

SECURITIES

Summary of carrying balances of securities


	December 31,		December 31,
	2021		2020

	(dollars in thousands)
Debt securities available-for-sale	$	942,168	$	922,869
Debt securities held-to-maturity		336,185		68,395
Equity securities with readily determinable fair value		3,443		3,292
Equity securities with no readily determinable fair value		1,927		1,552
Total securities	$	1,283,723	$	996,108

Schedule of gains (losses) on securities


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Net realized gains (losses) on sales	$	—		—	$	—
Net unrealized gains (losses) on equity securities:
Readily determinable fair value		107		33		160
No readily determinable fair value		—		—		(165)
Gains (losses) on securities	$	107		33	$	(5)

Schedule of certain debt securities from the available-for-sale category to the held-to-maturity category


	June 30, 2021				March 31, 2021
	Amortized				Amortized
	Cost		Fair Value		Cost		Fair Value

	(dollars in thousands)
U.S. government agency	$	—	$	—	$	7,593	$	7,323
Mortgage-backed:
Agency residential		—		—		8,776		8,536
Agency commercial		99,271		99,275		118,792		113,861
Total	$	99,271	$	99,275	$	135,161	$	129,720

Schedule of amortized cost and fair values of securities available-for-sale, with gross unrealized gains and losses


December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Available-for-sale:	(dollars in thousands)
U.S. Treasury	$	109,002	$	328	$	(354)	$	108,976
U.S. government agency		129,269		1,303		(2,467)		128,105
Municipal		293,837		6,144		(2,904)		297,077
Mortgage-backed:
Agency residential		178,236		2,149		(919)		179,466
Agency commercial		164,875		1,234		(2,048)		164,061
Corporate		63,141		1,638		(296)		64,483
Total available-for-sale		938,360		12,796		(8,988)		942,168
Held-to-maturity:
U.S. government agency		12,349		42		(51)		12,340
Municipal		15,666		809		—		16,475
Mortgage-backed:
Agency residential		20,555		196		(102)		20,649
Agency commercial		287,615		1,749		(2,801)		286,563
Total held-to-maturity		336,185		2,796		(2,954)		336,027
Total debt securities	$	1,274,545	$	15,592	$	(11,942)	$	1,278,195


December 31, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Available-for-sale:	(dollars in thousands)
U.S. government agency	$	118,282	$	3,720	$	(9)	$	121,993
Municipal		265,309		9,232		(280)		274,261
Mortgage-backed:
Agency residential		198,543		4,871		(162)		203,252
Agency commercial		246,649		4,651		(534)		250,766
Corporate		70,917		1,786		(106)		72,597
Total available-for-sale		899,700		24,260		(1,091)		922,869
Held-to-maturity:
Municipal		22,484		1,390		—		23,874
Mortgage-backed:
Agency residential		13,031		452		—		13,483
Agency commercial		32,880		2,222		(18)		35,084
Total held-to-maturity		68,395		4,064		(18)		72,441
Total debt securities	$	968,095	$	28,324	$	(1,109)	$	995,310

Schedule of amortized cost and fair value of securities by contractual maturity


	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value

	(dollars in thousands)
Due in 1 year or less	$	33,315	$	33,640	$	2,394	$	2,410
Due after 1 year through 5 years		110,975		113,251		15,887		16,417
Due after 5 years through 10 years		332,565		332,954		9,343		9,587
Due after 10 years		118,394		118,796		391		401

Mortgage-backed:
Agency residential		178,236		179,466		20,555		20,649
Agency commercial		164,875		164,061		287,615		286,563
Total	$	938,360	$	942,168	$	336,185	$	336,027

Schedule of gross unrealized losses and fair value of investments


	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
December 31, 2021	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:	(dollars in thousands)
U.S. Treasury	$	(354)	$	68,410	$	—	$	—	$	(354)	$	68,410
U.S. government agency		(2,183)		80,219		(284)		5,578		(2,467)		85,797
Municipal		(2,018)		89,424		(886)		17,327		(2,904)		106,751
Mortgage-backed:
Agency residential		(851)		91,703		(68)		4,305		(919)		96,008
Agency commercial		(1,921)		113,111		(127)		6,443		(2,048)		119,554
Corporate		(7)		2,737		(289)		4,671		(296)		7,408
Total available-for-sale		(7,334)		445,604		(1,654)		38,324		(8,988)		483,928
Held-to-maturity:
U.S. government agency		(51)		4,949		—		—		(51)		4,949
Mortgage-backed:
Agency residential		(102)		14,932		—		—		(102)		14,932
Agency commercial		(2,673)		174,428		(128)		2,776		(2,801)		177,204
Total held-to-maturity		(2,826)		194,309		(128)		2,776		(2,954)		197,085
Total debt securities	$	(10,160)	$	639,913	$	(1,782)	$	41,100	$	(11,942)	$	681,013


	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
December 31, 2020	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:	(dollars in thousands)
U.S. government agency	$	(9)	$	5,919	$	—	$	—	$	(9)	$	5,919
Municipal		(280)		19,652		—		—		(280)		19,652
Mortgage-backed:
Agency residential		(142)		20,387		(20)		4,490		(162)		24,877
Agency commercial		(524)		57,126		(10)		3,449		(534)		60,575
Corporate		(106)		4,849		—		—		(106)		4,849
Total available-for-sale		(1,061)		107,933		(30)		7,939		(1,091)		115,872
Held-to-maturity:
Mortgage-backed:
Agency commercial		(18)		2,983		—		—		(18)		2,983
Total held-to-maturity		(18)		2,983		—		—		(18)		2,983
Total debt securities	$	(1,079)	$	110,916	$	(30)	$	7,939	$	(1,109)	$	118,855

Schedule of equity securities with initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses


	Readily		No Readily
	Determinable		Determinable
December 31, 2021	Fair Value		Fair Value

	(dollars in thousands)
Initial cost	$	3,142	$	2,092
Cumulative net unrealized gains (losses)		301		(165)
Carrying value	$	3,443	$	1,927


	Readily		No Readily
	Determinable		Determinable
December 31, 2020	Fair Value		Fair Value

	(dollars in thousands)
Initial cost	$	3,098	$	1,717
Cumulative net unrealized gains (losses)		194		(165)
Carrying value	$	3,292	$	1,552

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS

12 Months Ended

Dec. 31, 2021

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS

NOTE 26 – CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS

Following are the condensed financial statements of HBT Financial, Inc. (Parent only).

Condensed Parent Company Only Balance Sheets


	December 31, 2021		December 31, 2020

ASSETS	(dollars in thousands)
Cash and cash equivalents	$	25,752	$	44,149
Investment in subsidiaries:
Bank		461,339		397,201
Non-bank		1,165		1,165
Other assets		1,283		1,140
Total assets	$	489,539	$	443,655

LIABILITIES
Subordinated notes	$	39,316	$	39,238
Junior subordinated debentures		37,714		37,648
Other liabilities		628		2,852
Total liabilities		77,658		79,738

STOCKHOLDERS' EQUITY		411,881		363,917
Total liabilities and stockholders' equity	$	489,539	$	443,655

Condensed Parent Company Only Statements of Income


	Years ended December 31
	2021		2020		2019

INCOME	(dollars in thousands)
Dividends received from subsidiaries:
Bank	$	20,000	$	17,600	$	109,969
Non-bank		—		36		385
Undistributed earnings from subsidiaries:
Bank		41,227		22,462		(41,202)
Non-bank		—		(36)		(151)
Other income		454		215		52
Total income		61,681		40,277		69,053

EXPENSES
Interest expense		3,305		2,189		1,922
Other expense		3,741		2,519		1,025
Total expenses		7,046		4,708		2,947
INCOME BEFORE INCOME TAX BENEFIT		54,635		35,569		66,106
INCOME TAX BENEFIT		(1,636)		(1,276)		(759)
NET INCOME	$	56,271	$	36,845	$	66,865

Condensed Parent Company Only Statements of Cash Flows


	Year ended December 31
	2021		2020		2019

CASH FLOWS FROM OPERATING ACTIVITIES	(dollars in thousands)
Net income	$	56,271	$	36,845	$	66,865
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed earnings of consolidated subsidiaries		(41,227)		(22,426)		41,353
Stock-based compensation		764		351		—
Amortization of discount and issuance costs on subordinated notes and debentures		144		92		66
Net gain on sale of foreclosed assets		(74)		—		—
Changes in other assets and liabilities, net		(2,231)		1,633		(1,912)
Net cash provided by operating activities		13,647		16,495		106,372


CASH FLOWS FROM INVESTING ACTIVITIES
Capital contribution to bank subsidiary		—		—		(17,000)
Capital contribution to non-bank subsidiary		—		—		(100)
Purchase of securities		(48)		(17)		—
Proceeds from sale of foreclosed assets		74		—		—
Net cash paid for acquisition of NXT Bancorporation, Inc.		(10,411)		—		—
Net cash used in investing activities		(10,385)		(17)		(17,100)


CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of subordinated notes, net of issuance costs		—		39,211		—
Issuance of common stock		—		—		138,493
Repurchase of common stock		(4,906)		—		—
Cash dividends and dividend equivalents paid		(16,753)		(16,518)		(224,956)
Net cash (used in) provided by financing activities		(21,659)		22,693		(86,463)

NET CHANGE IN CASH AND EQUIVALENTS		(18,397)		39,171		2,809
CASH AND CASH EQUIVALENTS
Beginning of year		44,149		4,978		2,169
End of year	$	25,752	$	44,149	$	4,978

JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Narrative (Details) - period	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
SUBORDINATED NOTES
Trust preferred securities qualified as Tier 1 capital	100.00%	100.00%
Junior Subordinated Debentures Issued
SUBORDINATED NOTES
Maximum deferred interest period quarters	20
Period shorten the maturity date from the event	90 days

LOAN SERVICING - Mortgage Servicing Rights (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Beginning balance	$ 5,934
Ending balance	7,994	$ 5,934
Mortgage Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Beginning balance	5,934	8,518	$ 10,918
Acquired	370
Capitalized servicing rights	1,200	1,981	1,018
Attributable to payments and principal reductions	(1,788)	(2,364)	(1,614)
Attributable to changes in valuation inputs and assumptions	2,278	(2,201)	(1,804)
Total fair value adjustment	490	(4,565)	(3,418)
Ending balance	7,994	5,934	$ 8,518
Mortgage loans serviced for others	$ 1,040,809	$ 1,090,219

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

12 Months Ended

Dec. 31, 2021

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

NOTE 1 – SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

HBT Financial, Inc. (“HBT Financial” or the “Company”) is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company (“Heartland Bank” or the “Bank”). 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 and Eastern Iowa. Additionally, the Company is subject to the regulations of certain federal and state agencies and undergoes periodic examinations by those regulatory agencies.

The consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America (“GAAP”) and reporting practices applicable to the banking industry. Significant accounting policies are summarized below.

On September 13, 2019, the Company effected a twenty-for-one stock split of its issued and outstanding shares of common stock and its issued and outstanding shares of Series A nonvoting common stock. Accordingly, all share and per share amounts for all periods presented in these financial statements and notes thereto have been adjusted retroactively, where applicable, to reflect the stock split.

On October 10, 2019, each share of Series A nonvoting common stock was reclassified and converted into one share of common stock. Additionally, the Company increased the authorized shares to 150,000,000, of which 125,000,000 shares, par value of $0.01 per share, are designated as common stock and 25,000,000 shares, par value of $0.01 per share, are designated as preferred stock.

Merger of State Bank of Lincoln into Heartland Bank

On October 20, 2020, Heartland Bank and State Bank of Lincoln, both wholly-owned bank subsidiaries of the Company on that date, entered into a Bank Merger Agreement providing for the merger of State Bank of Lincoln into Heartland Bank. The merger was consummated on December 31, 2020, resulting in Heartland Bank being our sole bank subsidiary, with the branch locations in Lincoln, Illinois operating as “State Bank of Lincoln, a division of Heartland Bank and Trust Company.”

Initial Public Offering

On September 13, 2019, the Company filed a Registration Statement on Form S-1 with the Securities and Exchange Commission (“SEC”). The Registration Statement was declared effective by the SEC on October 10, 2019. The Company issued and sold 9,429,794 shares of common stock at a price of $16 per share pursuant to that Registration Statement. Total proceeds received by the Company, net of offering costs, were $138,493,000. The proceeds were used to fund a $169,000,000 special dividend, or $9.43 per share, to stockholders of record prior to the IPO.

The Company qualifies as an “emerging growth company” as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). Under the JOBS Act, emerging growth companies may also elect to delay adoption of new or revised accounting standards until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards and, therefore, the Company will not be subject to the same new or revised accounting standards as other public companies.

Sale of First Community Title Services, Inc.

On February 15, 2019, the Company consummated an agreement to sell substantially all assets and liabilities of First Community Title Services, Inc. to Illinois Real Estate Title Center, LLC, an Illinois limited liability company, for a combination of cash and an equity interest in Illinois Real Estate Title Center, LLC representing total consideration of approximately $498,000.

Basis of Consolidation

The consolidated financial statements of HBT Financial, Inc. include the accounts of the Company and its wholly owned bank subsidiary, Heartland Bank.

The Company also has five wholly owned subsidiaries, Heartland Bancorp, Inc. Capital Trust B, Heartland Bancorp, Inc. Capital Trust C, Heartland Bancorp, Inc. Capital Trust D, FFBI Capital Trust I, and National Bancorp Statutory Trust I, which, in accordance with GAAP, are not consolidated as more fully described in Note 14.

Significant intercompany transactions and accounts have been eliminated in consolidation.

Unaudited Pro Forma Income Statement Information

Effective October 11, 2019, the Company revoked its S Corporation status and became a taxable entity (C Corporation). As such, any periods prior to October 11, 2019 will only reflect state replacement taxes.

The unaudited pro forma C Corp equivalent income tax expense information gives effect to the income tax expense had the Company been a C Corporation during the year ended December 31, 2019. The unaudited pro forma C Corp equivalent net income information, therefore, includes an adjustment for income tax expense as if the Company had been a C Corporation during the year ended December 31, 2019.

The unaudited pro forma basic and diluted earnings per share information is computed using the unaudited pro forma C Corp equivalent net income and weighted average shares of common stock outstanding. There were no dilutive instruments outstanding during the year ended December 31, 2019; therefore, the unaudited pro forma C Corp equivalent basic and diluted earnings per share amounts are the same.

Use of Estimates

The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended.

Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses and fair value of assets acquired and liabilities assumed in business combinations.

Business and Significant Concentrations of Credit Risk

The Company provides several types of loans to individuals, businesses, and municipal entities primarily located in its customer service area. Real estate and commercial loans are principal areas of concentration. The Company also strives to meet the borrowing needs of the consumers in its market areas. Extension of credit is generally limited to the primary trade areas of the Company. Primary deposit products of the Bank are noninterest-bearing and interest-bearing demand accounts, savings accounts, money market accounts, and term certificate of deposit accounts.

Cash and Cash Equivalents

For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and amounts due from banks, all of which have an original maturity within 90 days or less. Cash flows from loans and deposits are reported net.

Interest-Bearing Time Deposits with Banks

Interest-bearing time deposits with banks are carried at cost.

Debt Securities

Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity and are carried at amortized cost. Debt securities not classified as held-to-maturity are classified as available-for-sale. Debt securities available-for-sale are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss). Realized gains and losses on debt securities available-for-sale are included in noninterest income when applicable and reported as a reclassification adjustment in other comprehensive income (loss). Gains and losses on sales of securities are determined using the specific identification method on the trade date. The amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the period to maturity.

Any transfers of debt securities into the held-to-maturity category from the available-for-sale category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in accumulated other comprehensive income (loss) and in the carrying value of the held-to-maturity securities. Such amounts are amortized over the period to maturity.

Declines in the fair value of individual securities below their cost that are other-than-temporary result in write-downs of the individual securities to their fair value. The Company monitors the investment security portfolio for impairment on an individual security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary. This process involves analyzing the length of time and the extent to which the fair value has been less than the amortized cost basis, the market liquidity for the security, the financial condition and near-term prospects of the issuer, expected cash flows, and the intent of the Company to not sell the security or whether it is more likely than not that the Company will be required to sell the security before its anticipated recovery. A decline in value due to a credit event that is considered other-than-temporary is recorded as a loss in noninterest income.

Equity Securities

Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in gains (losses) on securities on the statements of income.

The Company has elected to measure its equity securities with no readily determinable fair values at their cost minus impairment, if any, plus or minus charges resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.

Restricted Stock

Restricted stock, which consists of Federal Home Loan Bank of Chicago (“FHLB”) stock, is carried at cost and evaluated for impairment.

Loans Held for Sale

Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on sale and thus quotes typically indicate fair value of the held for sale loans is greater than cost. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income.

Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by fair value allocated to the associated mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold.

Loans

Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs and the allowance for loan losses, deferred loan fees or costs on originated loans, and unamortized premiums or discounts on acquired loans.

Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and recognized as an adjustment of the related loan yield using the interest method.

The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful.

All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income if it was accrued during the current year and charged-off against the allowance for loan losses if accrued in a prior year. Amortization of related deferred loan fees or costs is also suspended at this time. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.

Allowance for Loan Losses

The allowance for loan losses (“allowance”) is an estimate of loan losses inherent in the Company’s loan portfolio. The allowance for loan losses represents amounts that have been established to recognize incurred credit losses in the loan portfolio that are both probable and reasonably estimable at the date of the consolidated financial statements. The allowance is established through a provision for loan losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance. Loan losses are charged off against the allowance when the Company determines the loan balance to be uncollectible. Cash received on previously charged off amounts is recorded as a recovery to the allowance.

The allowance consists of two primary components, general reserves and specific reserves related to impaired loans. The general component covers non-impaired loans and is based on historical losses adjusted for qualitative factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 16-quarter period. This actual loss experience is adjusted for qualitative factors based on the risks present for each portfolio segment. These qualitative factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations.

These qualitative factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment.

A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. The Company reviews the loan portfolio on an ongoing basis to determine whether any loans require classification and impairment testing in accordance with applicable regulations and accounting principles. Loans determined to be impaired are individually evaluated for impairment. When a loan is classified as either substandard or doubtful and in certain other cases, such as troubled debt restructurings, the Company generally measures impairment based on the fair value of the collateral, but also may use the present value of expected future cash flows discounted at the original contractual interest rate, when practical.

Under certain circumstances, the Company will provide borrowers relief through loan restructurings. A restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the Company for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. Restructured loans typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. TDR concessions can include reduction of interest rates, extension of maturity dates, forgiveness of principal or interest due, or acceptance of other assets in full or partial satisfaction of the debt.

In general, if the Company grants a TDR that involves either the absence of principal amortization or a material extension of an existing loan amortization period in excess of our underwriting standards, the loan will be placed on nonaccrual status. However, if a TDR is well secured by an abundance of collateral and the collectability of both interest and principal is probable, the loan may remain on accrual status. A nonaccrual TDR in full compliance with the payment requirements specified in the loan modification for at least six months may return to accrual status, if the collectability of both principal and interest is probable. All TDRs are individually evaluated for impairment.

The Company assigns a risk rating to all loans and periodically performs detailed internal reviews of all such loans that are part of relationships with over $500,000 in total exposure to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans. The risk rating is reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. These credit quality indicators are used to assign a risk rating to each individual loan. Risk ratings are grouped into four major categories, defined as follows:

Pass: A Pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention.

Pass-Watch: A Pass-Watch loan is still considered a Pass credit and not a classified or criticized asset, but is a reflection of a borrower who exhibits credit weaknesses or downward trends warranting close attention and increased monitoring. These potential weaknesses may result in deterioration of the repayment prospects for the loan. No loss of principal or interest is expected, and the borrower does not pose sufficient risk to warrant classification.

Substandard: A Substandard loan is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans classified as Substandard have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized as probable that the borrower will not pay principal and interest in accordance with the contractual terms.

Doubtful: A Doubtful loan has all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable.

The Company maintains a separate general valuation allowance for each portfolio segment. These portfolio segments include commercial and industrial, agricultural and farmland, commercial real estate – owner occupied, commercial real estate – non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer and other, with risk characteristics described as follows:

Commercial and Industrial: Consists of loans typically granted for working capital, asset acquisition and other business purposes. These loans are underwritten primarily based on the borrower’s cash flow with most loans secondarily supported by collateral. Most commercial and industrial loans are secured by the assets being financed or other business assets, such as accounts receivable, inventory, and equipment, and are typically supported by personal guarantees of the owners. Cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions and specific borrower circumstances.

Agricultural and Farmland: Consists of loans typically secured by farmland, agricultural operating assets, or a combination of both, and are generally underwritten to existing cash flows of operating agricultural businesses. Debt repayment is provided by business cash flows. Economic trends influenced by unemployment rates and other key economic indicators are not closely correlated to the credit quality of agricultural and farmland loans. The credit quality of these loans is most correlated to changes in prices of corn and soybeans and, to a lesser extent, weather, which has been partially mitigated by federal crop insurance programs.

Commercial Real Estate - Owner Occupied: Consists of loans secured by commercial real estate that is both owned and occupied by the same or a related borrower. These loans are primarily underwritten based on the cash flow of the business occupying the property. As with commercial and industrial loans, cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions, and specific borrower circumstances.

Commercial Real Estate - Non-owner Occupied: Consists of loans secured by commercial real estate for which the primary source of repayment is the sale or rental cash flows from the underlying collateral. These loans are underwritten based primarily on the historic or projected cash flow from the underlying collateral. Adverse economic developments or an overbuilt market typically impact commercial real estate projects. Trends in rental and vacancy rates of commercial properties impact the credit quality of these loans.

Multi-family: Consists of loans secured by five or more unit apartment buildings. Multi-family loans may be affected by demographic and population trends, unemployment or underemployment, and deteriorating market values of real estate.

Construction and Land Development: Consists of loans for speculative and pre-sold construction projects for developers intending to either sell upon completion or hold for long term investment, as well as construction of projects to be owner occupied. In addition, loans in this segment generally possess a higher inherent risk of loss than other portfolio segments due to risk of non-completion, changes in budgeted costs, and changes in market forces during the term of the construction period.

One-to-four Family Residential: Consists of loans secured by one-to-four family residences, including both first and junior lien mortgage loans for owner occupied and non-owner occupied properties and home equity lines of credit. The degree of risk in residential mortgage lending depends on the local economy, including the local real estate market and unemployment rates.

Municipal, Consumer and Other: Loans to municipalities include obligations of municipal entities and loans sponsored by municipal entities for the benefit of a private entity where that private entity, rather than the municipal entity, is responsible for repayment of the obligation. Consumer loans include loans to individuals for consumer purposes and typically consist of small balance loans. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of the consumer loans. Loans to other financial institutions, as well as leases, are also included.

Although management believes the allowance to be adequate, ultimate losses may vary from its estimates. At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relevant risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s regulators review the adequacy of the allowance and may require additions to the allowance based on their judgment about information available at the time of their examinations.

Loans Acquired with Deteriorated Credit Quality

Loans acquired that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are initially recorded at fair value (as determined by the present value of expected future cash flows) with no allowance for loan losses. Loans are evaluated by management at the time of purchase to determine if there is evidence of deterioration in credit quality since origination. Loans where there is evidence of deterioration of credit quality since origination may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized as a yield adjustment. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in expected cash flows result in a reversal of the provision for loan losses to the extent of prior charges or a reclassification of the difference from nonaccretable to accretable yield with a positive impact on interest income on a prospective basis. If the Company does not have the information necessary to reasonably estimate cash flows to be expected, it may use the cost recovery method or cash basis method of income recognition.

Off-Balance Sheet Credit Related Financial Instruments

In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded.

Loan Servicing

The Company periodically sells mortgage loans on the secondary market with servicing retained. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing right based on fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, and default rates and losses. Mortgage servicing rights are carried at fair value on the consolidated balance sheets and changes in fair value are recorded in mortgage servicing rights fair value adjustment on the consolidated statements of income.

Bank Owned Life Insurance

Bank owned life insurance represents life insurance policies on the lives of certain current and former employees and directors for which the Company is the sole owner and beneficiary. These policies are recorded as an asset in the consolidated balance sheets at their cash surrender value ("CSV") or the current amount that could be realized if settled. The change in CSV and insurance proceeds received are included as a component of noninterest income in the consolidated statements of income.

Bank Premises and Equipment

Land is carried at cost. Bank premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the individual assets using the straight-line method.

Bank Premises Held for Sale

Bank premises held for sale is carried at the lower of cost or fair value less estimated costs to sell. The bank premises are not depreciated while classified as held for sale.

Impairment of Long-Lived Assets

The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of carrying amount or fair value less estimated costs to sell.

Lease Obligations

The Company leases certain bank premises under non-cancelable operating leases in the normal course of business operations. These lease obligations result in the recognition of right-of-use assets and associated lease contract liabilities. The amount of right-of-use assets and associated lease contract liabilities recorded is based on the present value of future minimum lease payments. The discount rate used is equal to the rate implicit in the lease, when readily determinable, or the Company’s incremental borrowing rate at lease inception, on a collateralized basis over a similar term. Right-of-use assets are included in other assets and lease contract liabilities are included in other liabilities in the consolidated balance sheets and were insignificant as of December 31, 2021 and 2020.

Foreclosed Assets

Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated cost to sell at the date of foreclosure, establishing a new cost basis. Any write-down based on the fair value of the asset at the date of acquisition is charged to the allowance for loan losses. If the fair value of the asset less estimated cost to sell exceeds the recorded investment in the loan at the date of foreclosure, the increase in value is charged to current year operations unless there has been a prior charge-off, in which case a recovery to the allowance for loan losses is recorded. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated cost to sell. Write-downs of foreclosed assets subsequent to foreclosure are charged to current year operations as are gains and losses from sale of foreclosed assets, as well as expenses to maintain and hold foreclosed assets.

Goodwill and Other Intangible Assets

Goodwill represents the excess of the original cost over the fair value of assets acquired and liabilities assumed. Goodwill is not amortized but instead is subject to an annual impairment evaluation. The Company has selected December 31 as the date to perform the annual impairment test. At December 31, 2021 and 2020, the Company’s evaluations of goodwill indicated that goodwill was not impaired.

Additionally, due to the economic weakness resulting from the COVID-19 pandemic, the Company completed a quantitative assessment of goodwill as of March 31, 2020 which indicated that goodwill was not impaired. Further goodwill impairment evaluations, which may result in goodwill impairment, may be necessary if events or circumstance changes would more likely than not reduce the fair value of a reporting unit below its carrying amount.

Other identifiable intangible assets consist of core deposit intangible assets with definite useful lives which are being amortized using an accelerated depreciation method over 10 years. The Company will periodically review the status of core deposit intangible assets for any events or circumstances which may change the recoverability of the underlying basis.

Wealth Management Assets and Fees

Assets of the wealth management department of the Bank are not included in the consolidated balance sheets as such assets are not assets of the Company or the Bank. Fee income generated from wealth management services is recorded in the consolidated statements of income as a source of noninterest income.

Employee Benefit Plans

The Company sponsors a profit sharing plan under which the Company may contribute, at the discretion of the Board of Directors, a discretionary amount to all participating employees for the plan year. Participating employees are those employees in service on the valuation date who were employed on the last day of the plan year then ended, were on leave of absence on the last day of the plan year then ended, or any participant whose service was terminated during the plan year then ended due to retirement, disability, or death. A 401(k) feature also allows the Bank to make discretionary matching contributions in an amount up to 5% of compensation contributed by employees.

Stock Based Compensation

The Company recognizes compensation cost over the requisite service period, if any, which is generally defined as the vesting period. For awards classified as equity, compensation cost is based on the fair value of the awards on the grant date. For awards classified as liabilities, compensation cost also includes subsequent remeasurements of the fair value of the awards until the award is settled. The Company’s policy is to recognize forfeitures as they occur.

Transfers of Financial Assets and Participating Interests

Transfers of an entire financial asset or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity.

The transfer of a participating interest in an entire financial asset must also meet the definition of a participating interest. A participating interest in a financial asset has all of the following characteristics: (1) from the date of transfer, it must represent a proportionate (pro rata) ownership interest in the financial asset, (2) from the date of transfer, all cash flows received, except any cash flows allocated as any compensation for servicing or other services performed, must be divided proportionately among participating interest holders in the amount equal to their share ownership, (3) the rights of each participating interest holder must have the same priority, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to do so.

Advertising Costs

Advertising costs are expensed as incurred.

Income Taxes

Through October 10, 2019, the Company, with the consent of its then current stockholders, elected to be taxed under sections of federal and state income tax law as an "S Corporation" which provides that, in lieu of Company income taxes, except for state replacement taxes, the stockholders separately account for their pro rata shares of the Company’s items of income, deductions, losses and credits. As a result of this election, no income taxes, other than state replacement taxes, have been recognized in the accompanying consolidated financial statements prior to October 11, 2019. No provision has been made for any amounts which may be advanced or paid as dividends to the stockholders to assist them in paying their personal taxes on the income from the Company.

Effective October 11, 2019, the Company voluntarily revoked its S Corporation status and became a taxable entity (C Corporation). In connection with the conversion of tax status, the Company recognized a deferred tax asset of $534,000 and an income tax benefit of $534,000.

Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized.

With regard to uncertain tax matters, the Company recognizes in the consolidated financial statements the impact of a tax position taken, or expected to be taken, if it is more likely than not that the position will be sustained on audit based on the technical merit of the position. Management has analyzed the tax positions taken by the Company and concluded as of December 31, 2021 and 2020, there are no uncertain tax positions taken or expected to be taken that require recognition of a liability or disclosure in the consolidated financial statements. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses.

The Company files consolidated federal and state income tax returns. The Company is no longer subject to federal or state income tax examinations for years prior to 2018.

Derivative Financial Instruments

As part of the Company’s asset/liability management, the Company uses interest rate swaps to hedge various exposures or to modify interest rate characteristics of various balance sheet accounts. Derivatives that are used as part of the asset/liability management process are linked to specific assets or liabilities, or pools of assets or liabilities, and have high correlation between the contract and the underlying item being hedged, both at inception and throughout the hedge period.

All derivatives are recognized on the consolidated balance sheet at their fair value. On the date the derivative contract is entered into, the Company may designate the derivative as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability "cash flow" hedge. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash-flow hedge are recorded in other comprehensive income (loss), until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings).

The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedged transactions. This process includes linking all derivatives that are designated as cash-flow hedges to specific assets and liabilities on the balance sheet or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively.

The Company discontinues hedge accounting prospectively when (a) it is determined that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item (including forecasted transactions); (b) the derivative expires or is sold, terminated, or exercised; (c) the derivative is dedesignated as a hedge instrument, because it is unlikely that a forecasted transaction will occur; or (d) management determines that designation of the derivative as a hedge instrument is no longer appropriate.

When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur, the derivative will continue to be carried on the consolidated balance sheet at its fair value, and gains and losses that were accumulated in other comprehensive income (loss) will be recognized immediately in earnings. In all other situations in which hedge accounting is discontinued, the derivative will be carried at its fair value on the balance sheet, with subsequent changes in its fair value recognized in current-period earnings.

Comprehensive Income (Loss)

Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on securities available-for-sale and interest rate swap agreements designated as cash flow hedges, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss).

Fair Value Measurements

The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Assets and liabilities valued at fair value are categorized based on the inputs to the valuation techniques as follows:

Level 1 - Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date.

Level 2 - Inputs that are significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data.

Level 3 - Inputs that are unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing as asset or liability.

Subsequent to initial recognition, the Company may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value.

Accounting standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at fair value for the initial and subsequent measurement on an instrument-by-instrument basis. The Company adopted the policy and has not elected to measure any existing financial instruments at fair value, except for mortgage servicing rights; however, it may elect to measure newly acquired financial instruments at fair value in the future.

Revenue from Contracts with Customers

ASC Topic 606, Revenue from Contracts with Customers, requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve this, the Company takes the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the Company satisfies a performance obligation. The non-interest revenue streams that are considered to be in the scope of this guidance are discussed below.

Card income: Consists of debit and credit card interchange fees. For debit and credit card transactions, the Company considers the merchant as the customer for interchange revenue with the performance obligation being satisfied when the cardholder purchases goods or services from the merchant. Interchange revenue is recognized as the services are provided. Payment is typically received daily.

Service charges on deposit accounts: Consists of account analysis fees, monthly service fees, and other deposit account related fees. The Company’s performance obligation account analysis fees and monthly service fees are ongoing and either party may cancel at any time. These fees are generally recognized as the services are rendered on a monthly basis. Payment is typically received monthly. Other deposit account related fees are largely transaction based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for other deposit account related fees is primarily received immediately through a direct charge to customers’ accounts.

Wealth management fees: Consists of revenue from the management and advisement of client assets and trust administration. The Company’s performance obligation is generally satisfied over time, and the fees are recognized monthly. Payment is typically received quarterly or annually.

Title insurance activity: Consists of fees related to real estate sale closings, title search fees, and title insurance premiums with First Community Title Services, Inc. acting as an agent. The Company’s performance obligations were generally satisfied and payment was typically received at the time a real estate transaction was finalized. In 2019, First Community Title Services, Inc. was sold, and the Company did not have title insurance activity revenue in subsequent periods.

Segment Reporting

The Company’s operations consist of one reportable segment. The Company’s chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance.

Reclassifications

Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity.

Subsequent Events

In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the consolidated financial statements were issued.

Recent Accounting Pronouncements

In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that this standard will have on the consolidated results of operations and financial position.

In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies measurement of goodwill and eliminates Step 2 from the goodwill impairment test. Under the ASU, a company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for annual or any interim goodwill impairment tests in years beginning after December 15, 2022, including interim periods within those years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position.

In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. Entities may apply the provisions as of the beginning of the reporting period when the election is made and are available until December 31, 2022. The Company is currently evaluating the effect that this standard will have on the consolidated results of operations and financial position.

GOODWILL AND OTHER INTANGIBLE ASSETS - Amortization (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Amortization of core deposit intangible assets:
2022	$ 873
2023	353
2024	337
2025	275
2026	20
Thereafter	85
Total	$ 1,943	$ 2,798

SUBORDINATED NOTES - Summary (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Sep. 03, 2020
SUBORDINATED NOTES
Total junior subordinated debentures, at carrying value	$ 39,316	$ 39,238
Subordinated Notes
SUBORDINATED NOTES
Face amount	40,000	40,000	$ 40,000
Unamortized issuance costs	(684)	(762)
Total junior subordinated debentures, at carrying value	$ 39,316	$ 39,238

JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS (Tables) - Junior Subordinated Debentures Issued

12 Months Ended

Dec. 31, 2021

SUBORDINATED NOTES

Schedule of carrying value of subordinated debentures


	December 31, 2021		December 31, 2020

	(dollars in thousands)
Heartland Bancorp, Inc. Capital Trust B	$	10,310	$	10,310
Heartland Bancorp, Inc. Capital Trust C		10,310		10,310
Heartland Bancorp, Inc. Capital Trust D		5,155		5,155
FFBI Capital Trust I		7,217		7,217
National Bancorp Statutory Trust I		5,773		5,773
Total junior subordinated debentures, at face value		38,765		38,765
National Bancorp Statutory Trust I unamortized discount		(1,051)		(1,117)
Total junior subordinated debentures, at carrying value	$	37,714	$	37,648

Schedule of interest rates and maturities of the junior subordinated debentures


				Interest Rate at
	Variable			December 31,		December 31,		Maturity
	Interest Rate			2021		2020		Date
Heartland Bancorp, Inc. Capital Trust B	LIBOR plus	2.75	%	2.87	%	2.99	%	April 6, 2034
Heartland Bancorp, Inc. Capital Trust C	LIBOR plus	1.53		1.73		1.75		June 15, 2037
Heartland Bancorp, Inc. Capital Trust D	LIBOR plus	1.35		1.55		1.57		September 15, 2037
FFBI Capital Trust I	LIBOR plus	2.80		2.92		3.04		April 6, 2034
National Bancorp Statutory Trust I	LIBOR plus	2.90		3.10		3.12		December 31, 2037

GOODWILL AND OTHER INTANGIBLE ASSETS - Schedule Of Goodwill And Finite Lived Intangible Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Goodwill [Roll Forward]
Beginning Balance	$ 23,620	$ 23,620	$ 23,620
Additions	5,702
Ending Balance	29,322	23,620	23,620
Indefinite-lived Intangible Assets [Roll Forward]
Beginning balance	2,798
Amortization	(1,054)	(1,232)	(1,423)
Ending balance	1,943	2,798
Core Deposits
Indefinite-lived Intangible Assets [Roll Forward]
Beginning balance	2,798	4,030	5,453
Additions	199
Amortization	(1,054)	(1,232)	(1,423)
Ending balance	1,943	2,798	4,030
Accumulated amortization	$ 19,974	$ 18,920	$ 17,688

FAIR VALUE OF FINANCIAL INSTRUMENTS - Nonrecurring Basis (Details) - Nonrecurring - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	$ 4,942	$ 14,713
Collateral-dependent impaired loans	22,423	33,320
Bank premises held for sale	1,452	121
Foreclosed assets	3,278	4,168
Level 2
FAIR VALUE OF FINANCIAL INSTRUMENTS
Loans held for sale	4,942	14,713
Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Collateral-dependent impaired loans	22,423	33,320
Bank premises held for sale	1,452	121
Foreclosed assets	$ 3,278	$ 4,168

CONSOLIDATED STATEMENTS OF INCOME (Parenthetical)	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME (Parenthetical)	Dec. 31, 2019 USD ($) $ / shares
UNAUDITED PRO FORMA C CORP EQUIVALENT INFORMATION (Note 1)
Historical income before income tax expense	$ 72,121,000
Income tax benefit	5,256,000
NET INCOME	$ 66,865,000
Earnings per share - Basic \| $ / shares	$ 3.33
Earnings per share - Diluted \| $ / shares	$ 3.33
Pro Forma
UNAUDITED PRO FORMA C CORP EQUIVALENT INFORMATION (Note 1)
Historical income before income tax expense	$ 72,121,000
Income tax benefit	18,749,000
NET INCOME	$ 53,372,000
Earnings per share - Basic \| $ / shares	$ 2.66
Earnings per share - Diluted \| $ / shares	$ 2.66

- Definition

The amount of net income (loss) for the period per each share of common stock or unit outstanding during the reporting period.

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+ Details

RELATED PARTY TRANSACTIONS

12 Months Ended

Dec. 31, 2021

RELATED PARTY TRANSACTIONS

RELATED PARTY TRANSACTIONS

NOTE 25 – RELATED PARTY TRANSACTIONS

Loans

As of December 31, 2021 and 2020, loans to directors, executive officers, principal shareholders and their affiliated entities (related parties) amounted to $2,633,000 and $3,072,000, respectively. These loans were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing for comparable loans with persons not related to us.

Deposits

Deposits of related parties amounted to $4,023,000 and $2,596,000 as of December 31, 2021 and 2020, respectively.

COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2021

COMMITMENTS AND CONTINGENCIES

Schedule of commitments and conditional obligations


	Contractual Amount
	December 31, 2021		December 31, 2020

		(dollars in thousands)
Commitments to extend credit	$	609,947	$	530,191
Standby letters of credit		12,960		10,031

Schedule of future minimum lease payments


Year ended December 31,
2022	$	167
2023		131
2024		81
2025		33
Total	$	412

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - Cash Flows (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 56,271	$ 36,845	$ 66,865
Adjustments to reconcile net income to net cash provided by operating activities:
Stock-based compensation	764	351
Net gain on sales of foreclosed assets	(505)	(348)	(1,048)
Net cash provided by operating activities	43,100	31,255	89,092
CASH FLOWS FROM INVESTING ACTIVITIES
Purchase of securities	(513,838)	(523,559)	(73,117)
Proceeds from sale of foreclosed assets	5,805	2,079	5,460
Net cash paid for acquisition of NXT Bancorporation, Inc.	(4,771)
Net cash (used in) provided by investing activities	(349,609)	(380,450)	115,340
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of subordinated notes, net of issuance costs		39,211
Issuance of common stock, net of issuance costs			138,493
Repurchase of common stock	(4,906)
Net cash provided by (used in) financing activities	403,326	377,675	(107,340)
NET CHANGE IN CASH AND EQUIVALENTS	96,817	28,480	97,092
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	312,451	283,971	186,879
CASH AND CASH EQUIVALENTS AT END OF PERIOD	409,268	312,451	283,971
Reportable Legal Entities \| Consolidated HBT
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	56,271	36,845	66,865
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed earnings of consolidated subsidiaries	(41,227)	(22,426)	41,353
Stock-based compensation	764	351
Amortization of discount and issuance costs on subordinated notes and debentures	144	92	66
Net gain on sales of foreclosed assets	(74)
Changes in other assets and liabilities, net	(2,231)	1,633	(1,912)
Net cash provided by operating activities	13,647	16,495	106,372
CASH FLOWS FROM INVESTING ACTIVITIES
Capital contribution to bank subsidiary			(17,000)
Capital contribution to non-bank subsidiary			(100)
Purchase of securities	(48)	(17)
Proceeds from sale of foreclosed assets	74
Net cash paid for acquisition of NXT Bancorporation, Inc.	(10,411)
Net cash (used in) provided by investing activities	(10,385)	(17)	(17,100)
CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of subordinated notes, net of issuance costs		39,211
Issuance of common stock, net of issuance costs			138,493
Repurchase of common stock	(4,906)
Cash dividends and dividend equivalents paid	(16,753)	(16,518)	(224,956)
Net cash provided by (used in) financing activities	(21,659)	22,693	(86,463)
NET CHANGE IN CASH AND EQUIVALENTS	(18,397)	39,171	2,809
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	44,149	4,978	2,169
CASH AND CASH EQUIVALENTS AT END OF PERIOD	$ 25,752	$ 44,149	$ 4,978

EARNINGS PER SHARE

12 Months Ended

Dec. 31, 2021

EARNINGS PER SHARE

EARNINGS PER SHARE

NOTE 18 – EARNINGS PER SHARE

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.

Diluted earnings per share is computed using the treasury stock method and reflects the potential dilution from the Company’s outstanding restricted stock units.

The following table sets forth the computation of basic and diluted earnings per share:


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Numerator:
Net income	$	56,271	$	36,845	$	66,865
Earnings allocated to participating securities		(104)		(93)		—
Numerator for earnings per share - basic and diluted	$	56,167	$	36,752	$	66,865

Denominator:
Weighted average common shares outstanding		27,795,806		27,457,306		20,090,270
Dilutive effect of outstanding restricted stock units		15,487		—		—
Weighted average common shares outstanding, including all dilutive potential shares		27,811,293		27,457,306		20,090,270

Earnings per share - Basic	$	2.02	$	1.34	$	3.33
Earnings per share - Diluted	$	2.02	$	1.34	$	3.33

JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS

12 Months Ended

Dec. 31, 2021

JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS

JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS

NOTE 14 – JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS

Five subsidiary business trusts of the Company have issued floating rate capital securities (“capital securities”) which are guaranteed by the Company.

The Company owns all of the outstanding stock of the five subsidiary business trusts. The trusts used the proceeds from the issuance of their capital securities to buy floating rate junior subordinated deferrable interest debentures (“junior subordinated debentures”) issued by the Company. These junior subordinated debentures are the only assets of the trusts and the interest payments from the junior subordinated debentures finance the distributions paid on the capital securities. The junior subordinated debentures are unsecured and rank junior and subordinate in the right of payment to all senior debt of the Company.

In accordance with GAAP, the trusts are not consolidated in the Company’s financial statements.

The carrying value of the junior subordinated debentures are summarized as follows:


	December 31, 2021		December 31, 2020

	(dollars in thousands)
Heartland Bancorp, Inc. Capital Trust B	$	10,310	$	10,310
Heartland Bancorp, Inc. Capital Trust C		10,310		10,310
Heartland Bancorp, Inc. Capital Trust D		5,155		5,155
FFBI Capital Trust I		7,217		7,217
National Bancorp Statutory Trust I		5,773		5,773
Total junior subordinated debentures, at face value		38,765		38,765
National Bancorp Statutory Trust I unamortized discount		(1,051)		(1,117)
Total junior subordinated debentures, at carrying value	$	37,714	$	37,648

The interest rates on the subordinated debentures are variable, reset quarterly, and are equal to the three-month LIBOR, as determined on the LIBOR Determination Date immediately preceding the Distribution Payment Date specific to each junior subordinated debenture, plus a fixed percentage. The interest rates and maturities of the junior subordinated debentures are summarized as follows:


				Interest Rate at
	Variable			December 31,		December 31,		Maturity
	Interest Rate			2021		2020		Date
Heartland Bancorp, Inc. Capital Trust B	LIBOR plus	2.75	%	2.87	%	2.99	%	April 6, 2034
Heartland Bancorp, Inc. Capital Trust C	LIBOR plus	1.53		1.73		1.75		June 15, 2037
Heartland Bancorp, Inc. Capital Trust D	LIBOR plus	1.35		1.55		1.57		September 15, 2037
FFBI Capital Trust I	LIBOR plus	2.80		2.92		3.04		April 6, 2034
National Bancorp Statutory Trust I	LIBOR plus	2.90		3.10		3.12		December 31, 2037

The distribution rate payable on the debentures is cumulative and payable quarterly in arrears. The Company has the right, subject to events in default, to defer payments of interest on the junior subordinated debentures at any time by extending the interest payment period for a period not exceeding 20 quarterly periods with respect to each deferral period, provided that no extension period may extend beyond the redemption or maturity date of the junior subordinated debentures. The capital securities are subject to mandatory redemption upon payment of the junior subordinated debentures and carry an interest rate identical to that of the related debenture. The junior subordinated debentures maturity dates may be shortened if certain conditions are met, or at any time within 90 days following the occurrence and continuation of certain changes in either tax treatment or the capital treatment of the junior subordinated debentures or the capital securities. If the junior subordinated debentures are redeemed before they mature, the redemption price will be the principal amount plus any accrued but unpaid interest. The Company has the right to terminate each Capital Trust and cause the junior subordinated debentures to be distributed to the holders of the capital securities in liquidation of such trusts.

Under current banking regulations, bank holding companies are allowed to include qualifying trust preferred securities in their Tier 1 Capital for regulatory capital purposes, subject to a 25% limitation to all core (Tier 1) capital elements, net of goodwill and other intangible assets less any associated deferred tax liability. As of December 31, 2021 and 2020, 100%of the trust preferred securities qualified as Tier 1 capital under the final rule adopted in March 2005.

FORECLOSED ASSETS - Additional Information (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($) loan	Dec. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($)	Dec. 31, 2018 USD ($)
FORECLOSED ASSETS
Carrying value of foreclosed asset	$ 3,278	$ 4,168	$ 5,099	$ 9,559
One-to-four family residential real estate property
FORECLOSED ASSETS
Carrying value of foreclosed asset	$ 169	$ 868
Number of loans in the process of foreclosure \| loan	4	11
Loan amount in the process of foreclosure	$ 55	$ 1,526

DEPOSITS (Tables)

12 Months Ended

Dec. 31, 2021

DEPOSITS

Schedule of Company's interest-bearing deposits


	December 31, 2021		December 31, 2020

	(dollars in thousands)
Noninterest-bearing deposits	$	1,087,659	$	882,939
Interest-bearing deposits:
Interest-bearing demand		1,105,949		968,592
Money market		583,198		462,056
Savings		633,171		517,473
Time		328,208		299,474
Total interest-bearing deposits		2,650,526		2,247,595
Total deposits	$	3,738,185	$	3,130,534

Scheduled maturities of time deposits


Year ended December 31,
2022	$	235,100
2023		64,106
2024		13,179
2025		9,042
2026		6,562
Thereafter		219
Total	$	328,208

Schedule of interest expense on deposits


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Interest-bearing demand	$	518	$	647	$	1,474
Money market		437		697		1,837
Savings		188		196		278
Time		1,329		2,681		4,343
Total interest expense on deposits	$	2,472	$	4,221	$	7,932

- Definition

Tabular disclosure of type of deposit liability.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher SEC
-Name Regulation S-K (SK)
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-Section 1406
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+ Details

ACQUISITIONS (Tables)

12 Months Ended

Dec. 31, 2021

ACQUISITIONS

Schedule of recognized identified assets acquired and liabilities assumed

The fair value of the assets acquired and liabilities assumed from NXT on the acquisition date were as follows (dollars in thousands):


	Fair Value
Assets acquired:
Cash and cash equivalents	$	5,862
Interest-bearing time deposits with banks		739
Debt securities		18,295
Equity securities with readily determinable fair value		43
Restricted stock		796
Loans		194,576
Bank owned life insurance		7,352
Bank premises and equipment		3,667
Core deposit intangible assets		199
Mortgage servicing rights		370
Accrued interest receivable		886
Other assets		1,340
Total assets acquired		234,125

Liabilities assumed:
Deposits		181,586
Securities sold under agreements to repurchase		4,080
FHLB advances		12,625
Other liabilities		1,633
Total liabilities assumed		199,924
Net assets acquired	$	34,201

Consideration paid:
Cash	$	10,633
Common stock		29,270
Total consideration paid	$	39,903

Goodwill	$	5,702

The following table presents the acquired non-impaired loans as of the acquisition date (dollars in thousands):


Fair Value	$	194,576
Gross contractual amounts receivable		196,104
Estimate of contractual cash flows not expected to be collected		1,045

Business acquisition, pro forma information


	Pro Forma
	Year Ended December 31,
	2021		2020

	(dollars in thousands, except per share data)
Total revenues (net interest income and noninterest income)	$	166,677	$	161,005
Net income		57,883		39,263
Earnings per share - basic		1.98		1.34
Earnings per share - diluted		1.98		1.34

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - Balance Sheets (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
ASSETS
Cash and cash equivalents	$ 409,268	$ 312,451
Other assets	17,408	20,664
Total assets	4,314,254	3,666,567
LIABILITIES
Subordinated notes	39,316	39,238
Junior subordinated debentures	37,714	37,648
Other liabilities	25,902	49,494
Total liabilities	3,902,373	3,302,650
STOCKHOLDERS' EQUITY	411,881	363,917	$ 332,918	$ 340,396
Total liabilities and stockholders' equity	4,314,254	3,666,567
Reportable Legal Entities \| Consolidated HBT
ASSETS
Cash and cash equivalents	25,752	44,149
Bank	461,339	397,201
Non-bank	1,165	1,165
Other assets	1,283	1,140
Total assets	489,539	443,655
LIABILITIES
Subordinated notes	39,316	39,238
Junior subordinated debentures	37,714	37,648
Other liabilities	628	2,852
Total liabilities	77,658	79,738
STOCKHOLDERS' EQUITY	411,881	363,917
Total liabilities and stockholders' equity	$ 489,539	$ 443,655

DEPOSITS - Interest bearing Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
DEPOSITS
Noninterest-bearing deposits	$ 1,087,659	$ 882,939
Interest-bearing demand	1,105,949	968,592
Money market	583,198	462,056
Savings	633,171	517,473
Time	328,208	299,474
Total interest-bearing deposits	2,650,526	2,247,595
Total deposits	$ 3,738,185	$ 3,130,534

DEPOSITS

12 Months Ended

Dec. 31, 2021

DEPOSITS

DEPOSITS

NOTE 10 – DEPOSITS

The Company’s deposits are summarized below as December 31:


	December 31, 2021		December 31, 2020

	(dollars in thousands)
Noninterest-bearing deposits	$	1,087,659	$	882,939
Interest-bearing deposits:
Interest-bearing demand		1,105,949		968,592
Money market		583,198		462,056
Savings		633,171		517,473
Time		328,208		299,474
Total interest-bearing deposits		2,650,526		2,247,595
Total deposits	$	3,738,185	$	3,130,534

Money market deposits include $4,238,000 of brokered deposits as of December 31, 2021. Money market deposits also include $6,895,000 and $6,489,000 of reciprocal transaction deposits as of December 31, 2021 and 2020, respectively. Time deposits include $850,000 and $3,164,000 of reciprocal time deposits as of December 31, 2021 and 2020, respectively.

The aggregate amounts of time deposits in denominations of $250,000 or more amounted to $59,512,000 and $26,687,000 as of December 31, 2021 and 2020, respectively. The aggregate amounts of time deposits in denominations of $100,000 or more amounted to $133,067,000 and $99,649,000 as of December 31, 2021 and 2020, respectively.

At December 31, 2021, the scheduled maturities of time deposits are as follows (dollars in thousands):


Year ended December 31,
2022	$	235,100
2023		64,106
2024		13,179
2025		9,042
2026		6,562
Thereafter		219
Total	$	328,208

The components of interest expense on deposits for the years ended December 31 are as follows:


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Interest-bearing demand	$	518	$	647	$	1,474
Money market		437		697		1,837
Savings		188		196		278
Time		1,329		2,681		4,343
Total interest expense on deposits	$	2,472	$	4,221	$	7,932

STOCK-BASED COMPENSATION PLANS (Details)	12 Months Ended
STOCK-BASED COMPENSATION PLANS (Details)	Dec. 31, 2021 USD ($) item installment	Dec. 31, 2020 USD ($)	Dec. 31, 2019 USD ($)	Oct. 09, 2019 shares
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	$ 990,000	$ 214,000	$ 343,000
Restricted Stock Units
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	$ 579,000	351,000
Number of shares participant is entitled to receive \| item	1
Fair value of units granted	$ 948,000	1,399,000
Intrinsic value of restricted stock units	305,000
Unrecognized compensation cost related to non-vested stock-based compensation agreements	$ 1,339,000
Weighted average remaining contractual term	2 years 3 months 18 days
Performance Shares
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	$ 185,000
Fair value of units granted	603,000
Unrecognized compensation cost related to non-vested stock-based compensation agreements	$ 579,000
Weighted average remaining contractual term	2 years 6 months
Performance Shares \| Minimum
STOCK-BASED COMPENSATION PLANS
Percentage of the number of units granted that may be earned	0.00%
Performance Shares \| Maximum
STOCK-BASED COMPENSATION PLANS
Percentage of the number of units granted that may be earned	150.00%
Total awards classified as equity
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	$ 764,000	351,000
Stock Appreciation Rights
STOCK-BASED COMPENSATION PLANS
Total stock-based compensation expense	$ 226,000	(137,000)	$ 343,000
Vesting period	4 years
Unrecognized compensation cost related to non-vested stock-based compensation agreements	$ 56,000
Stock appreciation rights plan liability recorded for the outstanding units	485,000	272,000
Stock appreciation rights plan liability recorded for the previously exercised units	$ 797,000	$ 1,087,000
Number of equal annual installments in which the liability recorded for previously exercised units will be paid \| installment	3
Omnibus Incentive Plan
STOCK-BASED COMPENSATION PLANS
Authorized number of shares \| shares				1,820,000

INCOME TAXES - Components of net deferred tax asset (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Oct. 11, 2019
Deferred tax assets
Allowance for loan losses	$ 6,756,000	$ 9,046,000
Compensation related	2,314,000	2,301,000
Deferred loan fees	1,059,000	1,595,000
Nonaccrual interest	489,000	660,000
Foreclosed assets	43,000	45,000
Net unrealized losses on debt securities	304,000
Goodwill	316,000	336,000
Other	853,000	1,011,000
Total deferred tax assets	12,134,000	14,994,000
Deferred tax liabilities
Fixed asset depreciation	4,188,000	4,361,000
Mortgage servicing rights	2,262,000	1,692,000
Other purchase accounting adjustments	776,000	1,115,000
Intangible assets	374,000	580,000
Prepaid assets	664,000	685,000
Net unrealized gain on debt securities		6,569,000
Other	505,000	370,000
Total deferred tax liabilities	8,769,000	15,372,000
Net deferred tax asset (liability)		$ (378,000)
Net deferred tax asset (liability)	$ 3,365,000		$ 534,000

ACQUISITIONS - Assets Acquired and Liabilities (Details) - USD ($)	Oct. 01, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Consideration paid:
Goodwill		$ 29,322,000	$ 23,620,000	$ 23,620,000	$ 23,620,000
NXT Bancorporation, Inc
Assets acquired:
Cash and cash equivalents	$ 5,862,000
Interest-bearing time deposits with banks	739,000
Debt securities	18,295,000
Equity securities with readily determinable fair value	43,000
Restricted stock	796,000
Loans	194,576,000
Bank owned life insurance	7,352,000
Bank premises and equipment	3,667,000
Core deposit intangible assets	199,000
Mortgage servicing rights	370,000
Accrued interest receivable	886,000
Other assets	1,340,000
Total assets acquired	234,125,000
Liabilities assumed:
Deposits	181,586,000
Securities sold under agreements to repurchase	4,080,000
FHLB advances	12,625,000
Other liabilities	1,633,000
Total liabilities assumed	199,924,000
Net assets acquired	34,201,000
Consideration paid:
Cash	10,633,000
Common stock	29,270,000
Business Combination, Consideration Transferred, Total	39,903,000
Goodwill	5,702,000
Business Combination, Acquired Receivables [Abstract]
Fair Value	194,576,000
Gross contractual amounts receivable	196,104,000
Estimate of contractual cash flows not expected to be collected	1,045,000
Deteriorated credit quality loans	$ 0

CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
CASH FLOWS FROM OPERATING ACTIVITIES
Net income	$ 56,271,000	$ 36,845,000	$ 66,865,000
Adjustments to reconcile net income to net cash provided by operating activities:
Depreciation expense	3,074,000	2,941,000	2,709,000
Provision for loan losses	(8,077,000)	10,532,000	3,404,000
Net amortization of debt securities	7,066,000	5,045,000	3,450,000
Amortization of unrealized gain on dedesignated cash flow hedge		(64,000)	(86,000)
Deferred income tax expense	2,908,000	(339,000)	(2,695,000)
Stock-based compensation	764,000	351,000
Net accretion of discount and deferred loan fees on loans	(12,448,000)	(4,902,000)	(3,707,000)
Net unrealized gain (loss) on equity securities	(107,000)	(33,000)	5,000
Net loss (gain) on disposals of bank premises and equipment	33,000	2,000	(29,000)
Net gain on sales of bank premises held for sale			(448,000)
Impairment losses on bank premises held for sale	661,000	0	37,000
Net gain on sales of foreclosed assets	(505,000)	(348,000)	(1,048,000)
Write-down of foreclosed assets	195,000	213,000	563,000
Amortization of intangibles	1,054,000	1,232,000	1,423,000
(Increase) decrease in mortgage servicing rights	(1,690,000)	2,584,000	2,400,000
Amortization of discount and issuance costs on subordinated notes and debentures	144,000	92,000	66,000
Amortization of premium on Federal Home Loan Bank borrowings	(105,000)
Mortgage loans originated for sale	(179,921,000)	(370,112,000)	(150,652,000)
Proceeds from sale of mortgage loans	195,538,000	368,765,000	152,013,000
Net gain on sale of mortgage loans	(5,846,000)	(8,835,000)	(3,092,000)
Increase in cash surrender value of bank owned life insurance	(41,000)
Gain on sale of First Community Title Services, Inc.			(498,000)
Decrease (increase) in accrued interest receivable	240,000	(304,000)	1,349,000
Decrease (increase) in other assets	1,676,000	(1,090,000)	(516,000)
Decrease (increase) in other liabilities	(17,784,000)	(11,320,000)	17,579,000
Net cash provided by operating activities	43,100,000	31,255,000	89,092,000
CASH FLOWS FROM INVESTING ACTIVITIES
Net change in interest-bearing time deposits with banks	249,000	248,000
Proceeds from paydowns, maturities, and calls of debt securities	213,491,000	222,999,000	201,472,000
Purchase of securities	(513,838,000)	(523,559,000)	(73,117,000)
Net increase in loans	(50,089,000)	(80,278,000)	(17,950,000)
Purchase of restricted stock	(241,000)	(73,000)
Proceeds from redemption of restricted stock	796,000		294,000
Purchases of bank premises and equipment	(1,028,000)	(1,861,000)	(2,107,000)
Proceeds from sales of bank premises and equipment	17,000	1,000	176,000
Proceeds from sales of bank premises held for sale			1,039,000
Proceeds from sales of foreclosed assets	5,805,000	2,079,000	5,460,000
Capital improvements to foreclosed assets		(6,000)	(41,000)
Net cash paid for acquisition of NXT Bancorporation, Inc.	(4,771,000)
Cash received from sale of First Community Title Services, Inc.			114,000
Net cash (used in) provided by investing activities	(349,609,000)	(380,450,000)	115,340,000
CASH FLOWS FROM FINANCING ACTIVITIES
Net increase (decrease) in deposits	426,065,000	353,679,000	(19,115,000)
Net increase (decrease) in repurchase agreements	11,440,000	1,303,000	(1,762,000)
Repayment of Federal Home Loan Bank borrowings	(12,520,000)
Issuance of subordinated notes, net of issuance costs		39,211,000
Issuance of common stock, net of issuance costs			138,493,000
Repurchase of common stock	(4,906,000)
Cash dividends and dividend equivalents paid	(16,753,000)	(16,518,000)	(224,956,000)
Net cash provided by (used in) financing activities	403,326,000	377,675,000	(107,340,000)
NET INCREASE IN CASH AND CASH EQUIVALENTS	96,817,000	28,480,000	97,092,000
CASH AND CASH EQUIVALENTS AT BEGINNING OF YEAR	312,451,000	283,971,000	186,879,000
CASH AND CASH EQUIVALENTS AT END OF PERIOD	409,268,000	312,451,000	283,971,000
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION
Cash paid for interest	5,928,000	6,441,000	10,010,000
Cash paid for income taxes	20,861,000	17,451,000	880,000
SUPPLEMENTAL DISCLOSURES OF NONCASH INVESTING ACTIVITIES
Transfers of loans to foreclosed assets	4,857,000	1,074,000	2,520,000
Sales of foreclosed assets through loan origination	252,000	$ 67,000	$ 2,046,000
Transfers of bank premises and equipment to bank premises held for sale	$ 1,345,000

ACCUMULATED OTHER COMPREHENSIVE INCOME

12 Months Ended

Dec. 31, 2021

ACCUMULATED OTHER COMPREHENSIVE INCOME

ACCUMULATED OTHER COMPREHENSIVE INCOME

NOTE 16 – ACCUMULATED OTHER COMPREHENSIVE INCOME

The following table presents the activity and accumulated balances for components of other comprehensive income (loss) for the years ended December 31:


	Unrealized Gains (Losses)
	on Debt Securities
	Available-for-Sale		Held-to-Maturity		Derivatives		Total

	(dollars in thousands)
Balance, December 31, 2018	$	(4,561)	$	122	$	151	$	(4,288)
Other comprehensive income (loss) before reclassifications		12,458		—		(698)		11,760
Reclassifications		—		(264)		(87)		(351)
Other comprehensive income (loss), before tax		12,458		(264)		(785)		11,409
Income tax (benefit) expense		(762)		(11)		62		(711)
Other comprehensive income (loss), after tax		13,220		(253)		(847)		12,120
Balance, December 31, 2019		8,659		(131)		(696)		7,832
Other comprehensive income (loss) before reclassifications		15,272		—		(1,084)		14,188
Reclassifications		—		18		238		256
Other comprehensive income (loss), before tax		15,272		18		(846)		14,444
Income tax expense (benefit)		4,353		5		(235)		4,123
Other comprehensive income (loss), after tax		10,919		13		(611)		10,321
Balance, December 31, 2020		19,578		(118)		(1,307)		18,153
Transfer from available-for-sale to held-to-maturity		3,887		(3,887)		—		—
Other comprehensive (loss) income before reclassifications		(24,798)		—		366		(24,432)
Reclassifications		—		687		412		1,099
Other comprehensive (loss) income, before tax		(24,798)		687		778		(23,333)
Income tax (benefit) expense		(7,069)		196		222		(6,651)
Other comprehensive (loss) income, after tax		(17,729)		491		556		(16,682)
Balance, December 31, 2021	$	5,736	$	(3,514)	$	(751)	$	1,471

The amounts reclassified from accumulated other comprehensive income (loss) for unrealized gains (losses) on debt securities available-for-sale are included in gains (losses) on securities in the accompanying consolidated statements of income.

The amounts reclassified from accumulated other comprehensive income (loss) for unrealized gains on debt securities held-to-maturity are included in securities interest income in the accompanying consolidated statements of income.

The amounts reclassified from accumulated other comprehensive income (loss) for the fair value of derivative instruments represent net interest payments received or made on derivatives designated as cash flow hedges. See Note 15 for additional information.

REGULATORY CAPITAL (Tables)

12 Months Ended

Dec. 31, 2021

REGULATORY CAPITAL

Schedule of the Company's and the bank subsidiaries' actual and required capital amounts and ratios


	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
December 31, 2021	Amount		Ratio		Amount		Ratio		Amount		Ratio

		(dollars in thousands)
Total Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	479,320	16.88	%	$	227,115	8.00	%		N/A	N/A
Heartland Bank and Trust Company		452,162	15.94			226,950	8.00		$	283,688	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	416,068	14.66	%	$	170,336	6.00	%		N/A	N/A
Heartland Bank and Trust Company		428,226	15.09			170,213	6.00		$	226,950	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	379,519	13.37	%	$	127,752	4.50	%		N/A	N/A
Heartland Bank and Trust Company		428,226	15.09			127,659	4.50		$	184,397	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated HBT Financial, Inc.	$	416,068	9.84	%	$	169,171	4.00	%		N/A	N/A
Heartland Bank and Trust Company		428,226	10.13			169,070	4.00		$	211,337	5.00	%


	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
December 31, 2020	Amount		Ratio		Amount		Ratio		Amount		Ratio

		(dollars in thousands)
Total Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	426,283	17.40	%	$	195,970	8.00	%		N/A	N/A
Heartland Bank and Trust Company		382,511	15.63			195,787	8.00		$	244,733	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	356,410	14.55	%	$	146,977	6.00	%		N/A	N/A
Heartland Bank and Trust Company		351,904	14.38			146,840	6.00		$	195,787	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	319,927	13.06	%	$	110,233	4.50	%		N/A	N/A
Heartland Bank and Trust Company		351,904	14.38			110,130	4.50		$	159,077	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated HBT Financial, Inc.	$	356,410	9.94	%	$	143,454	4.00	%		N/A	N/A
Heartland Bank and Trust Company		351,904	9.82			143,296	4.00		$	179,120	5.00	%

REGULATORY CAPITAL

12 Months Ended

Dec. 31, 2021

REGULATORY CAPITAL

REGULATORY CAPITAL

NOTE 22 – REGULATORY CAPITAL

The Company (on a consolidated basis) and the Bank are each subject to various regulatory capital requirements administered by the federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by the regulators that, if undertaken, could have a direct material effect on the consolidated financial statements of the Company and the Bank. Additionally, the ability of the Company to pay dividends to its stockholders is dependent upon the ability of the Bank to pay dividends to the Company.

Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Company and the Bank must meet specific capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. As allowed under the regulations, the Company and the Bank elected to exclude accumulated other comprehensive income, including unrealized gains and losses on securities, in the computation of regulatory capital. Prompt corrective action provisions are not applicable to bank holding companies.

Additionally, the Company and the Bank must maintain a “capital conservation buffer” to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. As of December 31, 2021 and 2020, the capital conservation buffer was 2.5%of risk-weighted assets.

As of December 31, 2021, the Company and the Bank meet all capital adequacy requirements to which they are subject.

The actual and required capital amounts and ratios of HBT Financial, Inc. (consolidated) and the Bank are as follows:


	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
December 31, 2021	Amount		Ratio		Amount		Ratio		Amount		Ratio

		(dollars in thousands)
Total Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	479,320	16.88	%	$	227,115	8.00	%		N/A	N/A
Heartland Bank and Trust Company		452,162	15.94			226,950	8.00		$	283,688	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	416,068	14.66	%	$	170,336	6.00	%		N/A	N/A
Heartland Bank and Trust Company		428,226	15.09			170,213	6.00		$	226,950	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	379,519	13.37	%	$	127,752	4.50	%		N/A	N/A
Heartland Bank and Trust Company		428,226	15.09			127,659	4.50		$	184,397	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated HBT Financial, Inc.	$	416,068	9.84	%	$	169,171	4.00	%		N/A	N/A
Heartland Bank and Trust Company		428,226	10.13			169,070	4.00		$	211,337	5.00	%


	Actual				For Capital Adequacy Purposes				To Be Well Capitalized Under Prompt Corrective Action Provisions
December 31, 2020	Amount		Ratio		Amount		Ratio		Amount		Ratio

		(dollars in thousands)
Total Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	426,283	17.40	%	$	195,970	8.00	%		N/A	N/A
Heartland Bank and Trust Company		382,511	15.63			195,787	8.00		$	244,733	10.00	%

Tier 1 Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	356,410	14.55	%	$	146,977	6.00	%		N/A	N/A
Heartland Bank and Trust Company		351,904	14.38			146,840	6.00		$	195,787	8.00	%

Common Equity Tier 1 Capital (to Risk Weighted Assets)
Consolidated HBT Financial, Inc.	$	319,927	13.06	%	$	110,233	4.50	%		N/A	N/A
Heartland Bank and Trust Company		351,904	14.38			110,130	4.50		$	159,077	6.50	%

Tier 1 Capital (to Average Assets)
Consolidated HBT Financial, Inc.	$	356,410	9.94	%	$	143,454	4.00	%		N/A	N/A
Heartland Bank and Trust Company		351,904	9.82			143,296	4.00		$	179,120	5.00	%

- Definition

The entire disclosure for regulatory capital requirement for depository and lending institutions. Institutions include, but not are not limited to, finance company, insured depository institution, bank holding company, savings and loan association holding company, bank and savings institution not federally insured, mortgage company, foreign financial institution and credit union.

+ References + Details

INCOME TAXES (Details) - USD ($)		12 Months Ended
INCOME TAXES (Details) - USD ($)	Oct. 11, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
INCOME TAXES
Deferred tax asset	$ 534,000	$ 3,365,000
Income tax benefit	534,000	$ (20,291,000)	$ (12,728,000)	$ (5,256,000)
Deferred income tax expense in accordance with ASC 740-20-45-8	$ 2,741,000

- Definition

Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.

+ References + Details

DERIVATIVE FINANCIAL INSTRUMENTS - Derivative instrument assets and liabilities (Details) - Designated - Interest rate swap - Cash flow hedge - Other liabilities - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
DERIVATIVE FINANCIAL INSTRUMENTS
Derivative financial liability fair value	$ (680)	$ (1,458)
Derivative financial liability notional amount	$ 17,000	$ 17,000

ACCUMULATED OTHER COMPREHENSIVE INCOME (Tables)

12 Months Ended

Dec. 31, 2021

ACCUMULATED OTHER COMPREHENSIVE INCOME

Schedule of the activity and accumulated balances for components of other comprehensive income (loss)


	Unrealized Gains (Losses)
	on Debt Securities
	Available-for-Sale		Held-to-Maturity		Derivatives		Total

	(dollars in thousands)
Balance, December 31, 2018	$	(4,561)	$	122	$	151	$	(4,288)
Other comprehensive income (loss) before reclassifications		12,458		—		(698)		11,760
Reclassifications		—		(264)		(87)		(351)
Other comprehensive income (loss), before tax		12,458		(264)		(785)		11,409
Income tax (benefit) expense		(762)		(11)		62		(711)
Other comprehensive income (loss), after tax		13,220		(253)		(847)		12,120
Balance, December 31, 2019		8,659		(131)		(696)		7,832
Other comprehensive income (loss) before reclassifications		15,272		—		(1,084)		14,188
Reclassifications		—		18		238		256
Other comprehensive income (loss), before tax		15,272		18		(846)		14,444
Income tax expense (benefit)		4,353		5		(235)		4,123
Other comprehensive income (loss), after tax		10,919		13		(611)		10,321
Balance, December 31, 2020		19,578		(118)		(1,307)		18,153
Transfer from available-for-sale to held-to-maturity		3,887		(3,887)		—		—
Other comprehensive (loss) income before reclassifications		(24,798)		—		366		(24,432)
Reclassifications		—		687		412		1,099
Other comprehensive (loss) income, before tax		(24,798)		687		778		(23,333)
Income tax (benefit) expense		(7,069)		196		222		(6,651)
Other comprehensive (loss) income, after tax		(17,729)		491		556		(16,682)
Balance, December 31, 2021	$	5,736	$	(3,514)	$	(751)	$	1,471

DEPOSITS - Interest expense on Deposits - Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Maturities of Time Deposits:
2022	$ 235,100
2023	64,106
2024	13,179
2025	9,042
2026	6,562
Thereafter	219
Total	$ 328,208	$ 299,474

LOANS AND THE ALLOWANCE FOR LOAN LOSSES

12 Months Ended

Dec. 31, 2021

LOANS AND THE ALLOWANCE FOR LOAN LOSSES

LOANS AND THE ALLOWANCE FOR LOAN LOSSES

NOTE 5 – LOANS AND THE ALLOWANCE FOR LOAN LOSSES

Major categories of loans as of December 31, 2021 and 2020 are summarized as follows:


	December 31,		December 31,
	2021		2020

	(dollars in thousands)
Commercial and industrial	$	286,946	$	393,312
Agricultural and farmland		247,796		222,723
Commercial real estate - owner occupied		234,544		222,360
Commercial real estate - non-owner occupied		684,023		520,395
Multi-family		263,911		236,391
Construction and land development		298,048		225,652
One-to-four family residential		327,837		306,775
Municipal, consumer, and other		156,584		119,398
Loans, before allowance for loan losses		2,499,689		2,247,006
Allowance for loan losses		(23,936)		(31,838)
Loans, net of allowance for loan losses	$	2,475,753	$	2,215,168

Paycheck Protection Program (PPP) loans (included above)
Commercial and industrial	$	28,404	$	153,860
Agricultural and farmland		913		3,049
Municipal, consumer, and other		171		6,587
Total PPP loans	$	29,488	$	163,496

The following tables detail activity in the allowance for loan losses for the years ended December 31:


					Commercial		Commercial								Municipal,
	Commercial		Agricultural		Real Estate		Real Estate				Construction		One-to-four		Consumer,
	and		and		Owner		Non-owner				and Land		Family		and
	Industrial		Farmland		Occupied		Occupied		Multi-Family		Development		Residential		Other		Total

	(dollars in thousands)
Balance, December 31, 2018	$	3,748	$	2,650	$	2,506	$	2,644	$	912	$	4,176	$	2,782	$	1,091	$	20,509
Provision for loan losses		1,139		146		(376)		1,110		153		(1,640)		513		2,359		3,404
Charge-offs		(886)		(30)		(407)		(111)		(41)		(9)		(1,105)		(684)		(3,273)
Recoveries		440		—		56		20		—		450		350		343		1,659
Balance, December 31, 2019		4,441		2,766		1,779		3,663		1,024		2,977		2,540		3,109		22,299
Provision for loan losses		677		(1,946)		961		7,862		933		1,032		(894)		1,907		10,532
Charge-offs		(1,784)		(27)		(39)		(349)		—		(27)		(155)		(587)		(2,968)
Recoveries		595		—		440		75		—		250		310		305		1,975
Balance, December 31, 2020		3,929		793		3,141		11,251		1,957		4,232		1,801		4,734		31,838
Provision for loan losses		(1,474)		52		(1,280)		(3,130)		(694)		340		(472)		(1,419)		(8,077)
Charge-offs		(668)		—		(30)		—		—		—		(267)		(449)		(1,414)
Recoveries		653		—		9		24		—		342		249		312		1,589
Balance, December 31, 2021	$	2,440	$	845	$	1,840	$	8,145	$	1,263	$	4,914	$	1,311	$	3,178	$	23,936

The following tables present the recorded investments in loans and the allowance for loan losses by category as of December 31:


					Commercial		Commercial								Municipal,
	Commercial		Agricultural		Real Estate		Real Estate				Construction		One-to-four		Consumer,
	and		and		Owner		Non-owner				and Land		Family		and
December 31, 2021	Industrial		Farmland		Occupied		Occupied		Multi-Family		Development		Residential		Other		Total

Loan balances:	(dollars in thousands)
Collectively evaluated for impairment	$	272,064	$	247,021	$	216,794	$	641,555	$	262,701	$	293,548	$	314,807	$	143,510	$	2,392,000
Individually evaluated for impairment		14,744		12		12,332		29,575		—		2,018		6,897		13,041		78,619
Acquired with deteriorated credit quality		138		763		5,418		12,893		1,210		2,482		6,133		33		29,070
Total	$	286,946	$	247,796	$	234,544	$	684,023	$	263,911	$	298,048	$	327,837	$	156,584	$	2,499,689

Allowance for loan losses:
Collectively evaluated for impairment	$	2,253	$	845	$	1,480	$	5,138	$	1,259	$	4,895	$	1,099	$	1,302	$	18,271
Individually evaluated for impairment		187		—		327		2,999		—		—		210		1,875		5,598
Acquired with deteriorated credit quality		—		—		33		8		4		19		2		1		67
Total	$	2,440	$	845	$	1,840	$	8,145	$	1,263	$	4,914	$	1,311	$	3,178	$	23,936

					Commercial		Commercial								Municipal,
	Commercial		Agricultural		Real Estate		Real Estate				Construction		One-to-four		Consumer,
	and		and		Owner		Non-owner				and Land		Family		and
December 31, 2020	Industrial		Farmland		Occupied		Occupied		Multi-Family		Development		Residential		Other		Total

Loan balances:	(dollars in thousands)
Collectively evaluated for impairment	$	387,072	$	217,077	$	201,417	$	480,165	$	234,252	$	219,822	$	287,845	$	105,796	$	2,133,446
Individually evaluated for impairment		5,312		4,793		13,132		25,993		876		3,809		10,343		13,546		77,804
Acquired with deteriorated credit quality		928		853		7,811		14,237		1,263		2,021		8,587		56		35,756
Total	$	393,312	$	222,723	$	222,360	$	520,395	$	236,391	$	225,652	$	306,775	$	119,398	$	2,247,006

Allowance for loan losses:
Collectively evaluated for impairment	$	2,736	$	771	$	2,306	$	6,736	$	1,950	$	3,984	$	1,237	$	1,432	$	21,152
Individually evaluated for impairment		1,193		22		429		4,255		—		222		560		3,301		9,982
Acquired with deteriorated credit quality		—		—		406		260		7		26		4		1		704
Total	$	3,929	$	793	$	3,141	$	11,251	$	1,957	$	4,232	$	1,801	$	4,734	$	31,838

The following tables present loans individually evaluated for impairment by category of loans as of December 31:


	Unpaid
	Principal		Recorded		Related
December 31, 2021	Balance		Investment		Allowance

With an allowance recorded:	(dollars in thousands)
Commercial and industrial	$	303	$	303	$	187
Agricultural and farmland		—		—		—
Commercial real estate - owner occupied		3,013		3,013		327
Commercial real estate - non-owner occupied		14,912		14,893		2,999
Multi-family		—		—		—
Construction and land development		—		—		—
One-to-four family residential		1,421		1,314		210
Municipal, consumer, and other		8,523		8,498		1,875
Total	$	28,172	$	28,021	$	5,598

With no related allowance:
Commercial and industrial	$	14,452	$	14,441	$	—
Agricultural and farmland		12		12		—
Commercial real estate - owner occupied		9,534		9,319		—
Commercial real estate - non-owner occupied		14,755		14,682		—
Multi-family		—		—		—
Construction and land development		2,112		2,018		—
One-to-four family residential		7,129		5,583		—
Municipal, consumer, and other		4,603		4,543		—
Total	$	52,597	$	50,598	$	—

Total loans individually evaluated for impairment:
Commercial and industrial	$	14,755	$	14,744	$	187
Agricultural and farmland		12		12		—
Commercial real estate - owner occupied		12,547		12,332		327
Commercial real estate - non-owner occupied		29,667		29,575		2,999
Multi-family		—		—		—
Construction and land development		2,112		2,018		—
One-to-four family residential		8,550		6,897		210
Municipal, consumer, and other		13,126		13,041		1,875
Total	$	80,769	$	78,619	$	5,598


	Unpaid
	Principal		Recorded		Related
December 31, 2020	Balance		Investment		Allowance

With an allowance recorded:	(dollars in thousands)
Commercial and industrial	$	2,737	$	2,725	$	1,193
Agricultural and farmland		169		168		22
Commercial real estate - owner occupied		3,072		3,040		429
Commercial real estate - non-owner occupied		20,726		20,394		4,255
Multi-family		—		—		—
Construction and land development		2,081		2,055		222
One-to-four family residential		2,963		2,739		560
Municipal, consumer, and other		12,207		12,181		3,301
Total	$	43,955	$	43,302	$	9,982

With no related allowance:
Commercial and industrial	$	3,322	$	2,587	$	—
Agricultural and farmland		4,625		4,625		—
Commercial real estate - owner occupied		10,164		10,092		—
Commercial real estate - non-owner occupied		5,727		5,599		—
Multi-family		876		876		—
Construction and land development		1,762		1,754		—
One-to-four family residential		9,325		7,604		—
Municipal, consumer, and other		1,431		1,365		—
Total	$	37,232	$	34,502	$	—

Total loans individually evaluated for impairment:
Commercial and industrial	$	6,059	$	5,312	$	1,193
Agricultural and farmland		4,794		4,793		22
Commercial real estate - owner occupied		13,236		13,132		429
Commercial real estate - non-owner occupied		26,453		25,993		4,255
Multi-family		876		876		—
Construction and land development		3,843		3,809		222
One-to-four family residential		12,288		10,343		560
Municipal, consumer, and other		13,638		13,546		3,301
Total	$	81,187	$	77,804	$	9,982

The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment by category of loans during the years ended December 31:


	Year Ended December 31,
	2021				2020				2019
	Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized		Investment		Recognized

With an allowance recorded:	(dollars in thousands)
Commercial and industrial	$	1,593	$	89	$	3,031	$	169	$	5,275	$	152
Agricultural and farmland		83		4		273		9		464		12
Commercial real estate - owner occupied		3,052		177		1,622		98		874		43
Commercial real estate - non-owner occupied		16,494		791		6,345		220		101		7
Multi-family		—		—		—		—		—		—
Construction and land development		554		27		2,441		116		3,988		171
One-to-four family residential		1,988		77		3,120		110		3,414		79
Municipal, consumer, and other		8,681		158		10,617		286		9,284		396
Total	$	32,445	$	1,323	$	27,449	$	1,008	$	23,400	$	860

With no related allowance:
Commercial and industrial	$	7,125	$	330	$	4,004	$	251	$	6,744	$	206
Agricultural and farmland		290		17		11,061		561		14,826		824
Commercial real estate - owner occupied		7,771		344		11,056		528		10,190		483
Commercial real estate - non-owner occupied		10,339		432		14,412		458		3,465		131
Multi-family		434		10		447		10		1,344		9
Construction and land development		2,107		28		892		23		107		4
One-to-four family residential		6,248		192		8,022		316		8,360		240
Municipal, consumer, and other		4,666		86		3,089		115		4,874		104
Total	$	38,980	$	1,439	$	52,983	$	2,262	$	49,910	$	2,001

Total loans individually evaluated for impairment:
Commercial and industrial	$	8,718	$	419	$	7,035	$	420	$	12,019	$	358
Agricultural and farmland		373		21		11,334		570		15,290		836
Commercial real estate - owner occupied		10,823		521		12,678		626		11,064		526
Commercial real estate - non-owner occupied		26,833		1,223		20,757		678		3,566		138
Multi-family		434		10		447		10		1,344		9
Construction and land development		2,661		55		3,333		139		4,095		175
One-to-four family residential		8,236		269		11,142		426		11,774		319
Municipal, consumer, and other		13,347		244		13,706		401		14,158		500
Total	$	71,425	$	2,762	$	80,432	$	3,270	$	73,310	$	2,861

The following tables present the recorded investment in loans by category based on current payment and accrual status as of December 31:


	Accruing Interest
			30 - 89 Days		90+ Days				Total
December 31, 2021	Current		Past Due		Past Due		Nonaccrual		Loans

	(dollars in thousands)
Commercial and industrial	$	286,563	$	9	$	—	$	374	$	286,946
Agricultural and farmland		247,772		24		—		—		247,796
Commercial real estate - owner occupied		234,441		103		—		—		234,544
Commercial real estate - non-owner occupied		683,029		823		—		171		684,023
Multi-family		263,911		—		—		—		263,911
Construction and land development		297,465		64		—		519		298,048
One-to-four family residential		325,780		383		32		1,642		327,837
Municipal, consumer, and other		156,297		214		16		57		156,584
Total	$	2,495,258	$	1,620	$	48	$	2,763	$	2,499,689


	Accruing Interest
			30 - 89 Days		90+ Days				Total
December 31, 2020	Current		Past Due		Past Due		Nonaccrual		Loans

	(dollars in thousands)
Commercial and industrial	$	392,490	$	—	$	—	$	822	$	393,312
Agricultural and farmland		222,723		—		—		—		222,723
Commercial real estate - owner occupied		221,308		112		—		940		222,360
Commercial real estate - non-owner occupied		516,387		—		—		4,008		520,395
Multi-family		236,391		—		—		—		236,391
Construction and land development		225,508		—		—		144		225,652
One-to-four family residential		301,282		984		595		3,914		306,775
Municipal, consumer, and other		119,055		211		21		111		119,398
Total	$	2,235,144	$	1,307	$	616	$	9,939	$	2,247,006

The following tables present total loans by category based on their assigned risk ratings determined by management as of December 31:


December 31, 2021	Pass		Pass-Watch		Substandard		Doubtful		Total

	(dollars in thousands)
Commercial and industrial	$	267,088	$	5,114	$	14,744	$	—	$	286,946
Agricultural and farmland		221,898		25,213		685		—		247,796
Commercial real estate - owner occupied		198,862		24,098		11,584		—		234,544
Commercial real estate - non-owner occupied		619,212		32,372		32,439		—		684,023
Multi-family		241,362		22,549		—		—		263,911
Construction and land development		268,556		27,474		2,018		—		298,048
One-to-four family residential		308,951		11,221		7,665		—		327,837
Municipal, consumer, and other		143,299		244		13,041		—		156,584
Total	$	2,269,228	$	148,285	$	82,176	$	—	$	2,499,689


December 31, 2020	Pass		Pass-Watch		Substandard		Doubtful		Total

	(dollars in thousands)
Commercial and industrial	$	368,843	$	18,258	$	6,211	$	—	$	393,312
Agricultural and farmland		191,662		25,540		5,521		—		222,723
Commercial real estate - owner occupied		176,823		31,990		13,547		—		222,360
Commercial real estate - non-owner occupied		432,752		58,699		28,944		—		520,395
Multi-family		204,449		31,066		876		—		236,391
Construction and land development		193,646		28,193		3,813		—		225,652
One-to-four family residential		280,198		14,526		12,051		—		306,775
Municipal, consumer, and other		105,539		312		13,547		—		119,398
Total	$	1,953,912	$	208,584	$	84,510	$	—	$	2,247,006

There were no troubled debt restructurings during the year ended December 31, 2021. The following tables present the financial effect of troubled debt restructurings for the years ended December 31, 2020 and 2019:


						Charge-offs
		Recorded Investment				and Specific
Year Ended December 31, 2020	Number	Pre-Modification		Post-Modification		Reserves

	(dollars in thousands)
Commercial real estate - owner occupied	1		853		853		—
Total	1	$	853	$	853	$	—

						Charge-offs
		Recorded Investment				and Specific
Year Ended December 31, 2019	Number	Pre-Modification		Post-Modification		Reserves

	(dollars in thousands)
Commercial and industrial	3	$	516	$	516	$	—
Agricultural and farmland	2		392		392		—
Commercial real estate - owner occupied	1		170		170		—
One-to-four family residential	1		21		21		—
Total	7	$	1,099	$	1,099	$	—

During the years ended December 31, 2020 and 2019, all troubled debt restructurings were the result of a payment concession. As of December 31, 2021 and 2020, there were no troubled debt restructurings which had subsequent payment defaults within 12 months of the modification. For purposes of this disclosure, the Company considers “default” to mean 90 days or more past due as to interest or principal or were on nonaccrual status subsequent to restructuring.

As of December 31, 2021 and 2020, the Company had $3,512,000 and $8,950,000 of troubled debt restructurings, respectively. Restructured loans are evaluated for impairment quarterly as part of the Company’s determination of the allowance for loan losses. There were no material commitments to lend additional funds to debtors owing receivables whose terms have been modified in troubled debt restructurings.

The Coronavirus Aid, Relief, and Economic Security Act (the CARES Act), along with a joint statement issued by banking regulatory agencies, provided that short-term loan payment modifications to borrowers experiencing financial hardship due to COVID-19 made prior to January 1, 2022 generally do not need to be accounted for as a troubled debt restructuring. As of December 31, 2021 and 2020, the Company had loans totaling $204,000 and $27,986,000 that were granted a payment modification due to a COVID-19 related financial hardship and have not returned to regular payments. Substantially all modifications were in the form of a three-month interest-only period or a one-month payment deferral. Some borrowers have received more than one loan payment modification.

Changes in the accretable yield for loans acquired with deteriorated credit quality were as follows for the years ended December 31:


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Beginning balance	$	1,397	$	1,662	$	2,101
Reclassification from non-accretable difference		508		288		822
Disposals		(1,089)		—		—
Accretion income		(403)		(553)		(1,261)
Ending balance	$	413	$	1,397	$	1,662

FORECLOSED ASSETS

12 Months Ended

Dec. 31, 2021

FORECLOSED ASSETS

FORECLOSED ASSETS

NOTE 8 – FORECLOSED ASSETS

Foreclosed assets activity is as follows for the years ended December 31:


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Beginning balance	$	4,168	$	5,099	$	9,559
Transfers from loans		4,857		1,074		2,520
Capitalized improvements		—		6		41
Proceeds from sales		(5,805)		(2,079)		(5,460)
Sales through loan origination		(252)		(67)		(2,046)
Net gain (loss) on sales		505		348		1,048
Direct write-downs		(195)		(213)		(563)
Ending balance	$	3,278	$	4,168	$	5,099

Gains (losses) on foreclosed assets includes the following for the years ended December 31:


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Direct write-downs	$	(195)	$	(213)	$	(563)
Net gain (loss) on sales		505		348		1,048
Guarantee reimbursements		—		7		80
Gain on settlement		—		—		375
Gains (losses) on foreclosed assets	$	310	$	142	$	940

The carrying value of foreclosed one-to-four family residential real estate property as of December 31, 2021 and 2020, was $169,000 and $868,000, respectively. As of December 31, 2021, there were 4 one-to-four family residential real estate loans in the process of foreclosure totaling approximately $55,000. As of December 31, 2020, there were 11 residential real estate loans in the process of foreclosure totaling approximately $1,526,000.

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Numerator:
Net income	$ 56,271	$ 36,845	$ 66,865
Earnings allocated to participating securities	(104)	(93)
Numerator for earnings per share - basic	56,167	36,752	66,865
Numerator for earnings per share - diluted	$ 56,167	$ 36,752	$ 66,865
Denominator:
Weighted average common shares outstanding	27,795,806	27,457,306	20,090,270
Dilutive effect of outstanding restricted stock units	15,487
Weighted average common shares outstanding, including all dilutive potential shares	27,811,293	27,457,306	20,090,270
Earnings per share - Basic	$ 2.02	$ 1.34	$ 3.33
Earnings per share - Diluted	$ 2.02	$ 1.34	$ 3.33

DEFERRED COMPENSATION

12 Months Ended

Dec. 31, 2021

EMPLOYEE BENEFIT PLANS

DEFERRED COMPENSATION

NOTE 19 – DEFERRED COMPENSATION

The Company maintained a supplemental executive retirement plan (SERP) for certain key executive officers. The SERP benefit payments were scheduled to be paid in equal monthly installments over 30 years. In June 2019, the Company approved the termination of the SERP, and a lump sum payment was made in June 2020 to each participant equal to the present value of any remaining installment payments. As of December 31, 2021 and 2020, there was no remaining deferred compensation liability for the SERP. During the years ended December 31, 2020 and 2019, the Company recognized deferred compensation expense for the SERP of $1,660,000 and $4,291,000, respectively.

RESTRICTED CASH AND DUE FROM BANKS

12 Months Ended

Dec. 31, 2021

RESTRICTED CASH AND DUE FROM BANKS

RESTRICTED CASH AND DUE FROM BANKS

NOTE 3 – RESTRICTED CASH AND DUE FROM BANKS

There was no reserve requirement by the Federal Reserve Bank as of December 31, 2021 and 2020.

SECURITIES

12 Months Ended

Dec. 31, 2021

SECURITIES

SECURITIES

NOTE 4 – SECURITIES

The carrying balances of the securities were as follows:


	December 31,		December 31,
	2021		2020

	(dollars in thousands)
Debt securities available-for-sale	$	942,168	$	922,869
Debt securities held-to-maturity		336,185		68,395
Equity securities with readily determinable fair value		3,443		3,292
Equity securities with no readily determinable fair value		1,927		1,552
Total securities	$	1,283,723	$	996,108

There were no sales of securities during the years ended December 31, 2021, 2020, and 2019. Gains (losses) on securities were as follows during the years ended December 31:


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Net realized gains (losses) on sales	$	—		—	$	—
Net unrealized gains (losses) on equity securities:
Readily determinable fair value		107		33		160
No readily determinable fair value		—		—		(165)
Gains (losses) on securities	$	107		33	$	(5)

The $165,000 unrealized loss on equity securities with no readily determinable fair value during the year ended December 31, 2019 reflects a downward adjustment based on observable price changes of an identical investment.

On June 30, 2021 and March 31, 2021, the Company transferred certain debt securities from the available-for-sale category to the held-to-maturity category in order to better reflect the revised intentions of the Company due to possible market volatility, resulting from a potential rise in interest rates. The following is a summary of the amortized cost and fair value of securities transferred to the held-to-maturity category:


	June 30, 2021				March 31, 2021
	Amortized				Amortized
	Cost		Fair Value		Cost		Fair Value

	(dollars in thousands)
U.S. government agency	$	—	$	—	$	7,593	$	7,323
Mortgage-backed:
Agency residential		—		—		8,776		8,536
Agency commercial		99,271		99,275		118,792		113,861
Total	$	99,271	$	99,275	$	135,161	$	129,720

The debt securities were transferred between categories at fair value, with the transfer date fair value becoming the new amortized cost for each security transferred. The unrealized gain (loss), net of tax, at the date of transfer remains a component of accumulated other comprehensive income, but will be amortized over the remaining life of the debt securities as an adjustment of yield in a manner consistent with amortization of any premium or discount. As a result, the amortization of an unrealized gain (loss) reported in accumulated other comprehensive income will offset or mitigate the effect on interest income of the amortization of the premium or discount for that held-to-maturity debt security.

Debt Securities

The amortized cost and fair values of debt securities, with gross unrealized gains and losses, are as follows:


December 31, 2021	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Available-for-sale:	(dollars in thousands)
U.S. Treasury	$	109,002	$	328	$	(354)	$	108,976
U.S. government agency		129,269		1,303		(2,467)		128,105
Municipal		293,837		6,144		(2,904)		297,077
Mortgage-backed:
Agency residential		178,236		2,149		(919)		179,466
Agency commercial		164,875		1,234		(2,048)		164,061
Corporate		63,141		1,638		(296)		64,483
Total available-for-sale		938,360		12,796		(8,988)		942,168
Held-to-maturity:
U.S. government agency		12,349		42		(51)		12,340
Municipal		15,666		809		—		16,475
Mortgage-backed:
Agency residential		20,555		196		(102)		20,649
Agency commercial		287,615		1,749		(2,801)		286,563
Total held-to-maturity		336,185		2,796		(2,954)		336,027
Total debt securities	$	1,274,545	$	15,592	$	(11,942)	$	1,278,195


December 31, 2020	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value

Available-for-sale:	(dollars in thousands)
U.S. government agency	$	118,282	$	3,720	$	(9)	$	121,993
Municipal		265,309		9,232		(280)		274,261
Mortgage-backed:
Agency residential		198,543		4,871		(162)		203,252
Agency commercial		246,649		4,651		(534)		250,766
Corporate		70,917		1,786		(106)		72,597
Total available-for-sale		899,700		24,260		(1,091)		922,869
Held-to-maturity:
Municipal		22,484		1,390		—		23,874
Mortgage-backed:
Agency residential		13,031		452		—		13,483
Agency commercial		32,880		2,222		(18)		35,084
Total held-to-maturity		68,395		4,064		(18)		72,441
Total debt securities	$	968,095	$	28,324	$	(1,109)	$	995,310

As of December 31, 2021 and 2020, the Company had securities with a carrying value of $353,338,000 and $308,064,000, respectively, which were pledged to secure public and trust deposits, securities sold under agreements to repurchase, and for other purposes required or permitted by law.

The Company has no direct exposure to the State of Illinois, but approximately 46% of the obligations of local municipalities portfolio consists of securities issued by municipalities located in Illinois as of December 31, 2021. Approximately 95% of such securities were general obligation issues as of December 31, 2021.

The amortized cost and fair value of debt securities by contractual maturity, as of December 31, 2021, are shown below. Expected maturities may differ from contractual maturities because borrowers may have the right to call or prepay obligations with or without call or prepayment penalties.


	Available-for-Sale				Held-to-Maturity
	Amortized Cost		Fair Value		Amortized Cost		Fair Value

	(dollars in thousands)
Due in 1 year or less	$	33,315	$	33,640	$	2,394	$	2,410
Due after 1 year through 5 years		110,975		113,251		15,887		16,417
Due after 5 years through 10 years		332,565		332,954		9,343		9,587
Due after 10 years		118,394		118,796		391		401

Mortgage-backed:
Agency residential		178,236		179,466		20,555		20,649
Agency commercial		164,875		164,061		287,615		286,563
Total	$	938,360	$	942,168	$	336,185	$	336,027

The following tables present gross unrealized losses and fair value of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, as of December 31:


	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
December 31, 2021	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:	(dollars in thousands)
U.S. Treasury	$	(354)	$	68,410	$	—	$	—	$	(354)	$	68,410
U.S. government agency		(2,183)		80,219		(284)		5,578		(2,467)		85,797
Municipal		(2,018)		89,424		(886)		17,327		(2,904)		106,751
Mortgage-backed:
Agency residential		(851)		91,703		(68)		4,305		(919)		96,008
Agency commercial		(1,921)		113,111		(127)		6,443		(2,048)		119,554
Corporate		(7)		2,737		(289)		4,671		(296)		7,408
Total available-for-sale		(7,334)		445,604		(1,654)		38,324		(8,988)		483,928
Held-to-maturity:
U.S. government agency		(51)		4,949		—		—		(51)		4,949
Mortgage-backed:
Agency residential		(102)		14,932		—		—		(102)		14,932
Agency commercial		(2,673)		174,428		(128)		2,776		(2,801)		177,204
Total held-to-maturity		(2,826)		194,309		(128)		2,776		(2,954)		197,085
Total debt securities	$	(10,160)	$	639,913	$	(1,782)	$	41,100	$	(11,942)	$	681,013


	Investments in a Continuous Unrealized Loss Position
	Less than 12 Months				12 Months or More				Total
December 31, 2020	Unrealized Loss		Fair Value		Unrealized Loss		Fair Value		Unrealized Loss		Fair Value

Available-for-sale:	(dollars in thousands)
U.S. government agency	$	(9)	$	5,919	$	—	$	—	$	(9)	$	5,919
Municipal		(280)		19,652		—		—		(280)		19,652
Mortgage-backed:
Agency residential		(142)		20,387		(20)		4,490		(162)		24,877
Agency commercial		(524)		57,126		(10)		3,449		(534)		60,575
Corporate		(106)		4,849		—		—		(106)		4,849
Total available-for-sale		(1,061)		107,933		(30)		7,939		(1,091)		115,872
Held-to-maturity:
Mortgage-backed:
Agency commercial		(18)		2,983		—		—		(18)		2,983
Total held-to-maturity		(18)		2,983		—		—		(18)		2,983
Total debt securities	$	(1,079)	$	110,916	$	(30)	$	7,939	$	(1,109)	$	118,855

As of December 31, 2021, there were 37 securities in an unrealized loss position for a period of twelve months or more, and 235 securities in an unrealized loss position for a period of less than twelve months. These unrealized losses are primarily a result of fluctuations in interest rates in the bond market. In analyzing an issuer’s financial condition, management considers whether the securities are issued by the federal government or its agencies, whether downgrades by bond rating agencies have occurred, and industry analysts’ reports. Management believes that all declines in value of these securities are deemed to be temporary.

Equity Securities

The Company has elected to measure equity securities with no readily determinable fair value at cost minus impairment, if any, plus or minus changes resulting from observable price changes for identical or similar securities of the same issuer.

The initial cost and carrying values of equity securities, with cumulative net unrealized gains and losses, are as follows:


	Readily		No Readily
	Determinable		Determinable
December 31, 2021	Fair Value		Fair Value

	(dollars in thousands)
Initial cost	$	3,142	$	2,092
Cumulative net unrealized gains (losses)		301		(165)
Carrying value	$	3,443	$	1,927


	Readily		No Readily
	Determinable		Determinable
December 31, 2020	Fair Value		Fair Value

	(dollars in thousands)
Initial cost	$	3,098	$	1,717
Cumulative net unrealized gains (losses)		194		(165)
Carrying value	$	3,292	$	1,552

As of December 31, 2021 and 2020, the cumulative net unrealized losses on equity securities with no readily determinable fair value reflects downward adjustments based on observable price changes of an identical investment in a prior period. There have been no impairments or upward adjustments based on observable price changes to equity securities with no readily determinable fair value.

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Individually evaluated for impairment by category of loans (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Unpaid Principal Balance
With an allowance recorded	$ 28,172	$ 43,955
With no related allowance	52,597	37,232
Total loans individually evaluated for impairment	80,769	81,187
Recorded Investment
With an allowance recorded	28,021	43,302
With no related allowance	50,598	34,502
Total loans individually evaluated for impairment	78,619	77,804
Related Allowance	5,598	9,982
Average Recorded Investment
With an allowance recorded	32,445	27,449	$ 23,400
With no related allowance	38,980	52,983	49,910
Total loans individually evaluated for impairment	71,425	80,432	73,310
Interest Income Recognized
With an allowance recorded	1,323	1,008	860
With no related allowance	1,439	2,262	2,001
Total loans individually evaluated for impairment	2,762	3,270	2,861
Commercial and industrial
Unpaid Principal Balance
With an allowance recorded	303	2,737
With no related allowance	14,452	3,322
Total loans individually evaluated for impairment	14,755	6,059
Recorded Investment
With an allowance recorded	303	2,725
With no related allowance	14,441	2,587
Total loans individually evaluated for impairment	14,744	5,312
Related Allowance	187	1,193
Average Recorded Investment
With an allowance recorded	1,593	3,031	5,275
With no related allowance	7,125	4,004	6,744
Total loans individually evaluated for impairment	8,718	7,035	12,019
Interest Income Recognized
With an allowance recorded	89	169	152
With no related allowance	330	251	206
Total loans individually evaluated for impairment	419	420	358
Agricultural and farmland
Unpaid Principal Balance
With an allowance recorded		169
With no related allowance	12	4,625
Total loans individually evaluated for impairment	12	4,794
Recorded Investment
With an allowance recorded		168
With no related allowance	12	4,625
Total loans individually evaluated for impairment	12	4,793
Related Allowance		22
Average Recorded Investment
With an allowance recorded	83	273	464
With no related allowance	290	11,061	14,826
Total loans individually evaluated for impairment	373	11,334	15,290
Interest Income Recognized
With an allowance recorded	4	9	12
With no related allowance	17	561	824
Total loans individually evaluated for impairment	21	570	836
Commercial real estate - owner occupied
Unpaid Principal Balance
With an allowance recorded	3,013	3,072
With no related allowance	9,534	10,164
Total loans individually evaluated for impairment	12,547	13,236
Recorded Investment
With an allowance recorded	3,013	3,040
With no related allowance	9,319	10,092
Total loans individually evaluated for impairment	12,332	13,132
Related Allowance	327	429
Average Recorded Investment
With an allowance recorded	3,052	1,622	874
With no related allowance	7,771	11,056	10,190
Total loans individually evaluated for impairment	10,823	12,678	11,064
Interest Income Recognized
With an allowance recorded	177	98	43
With no related allowance	344	528	483
Total loans individually evaluated for impairment	521	626	526
Commercial real estate - non-owner occupied
Unpaid Principal Balance
With an allowance recorded	14,912	20,726
With no related allowance	14,755	5,727
Total loans individually evaluated for impairment	29,667	26,453
Recorded Investment
With an allowance recorded	14,893	20,394
With no related allowance	14,682	5,599
Total loans individually evaluated for impairment	29,575	25,993
Related Allowance	2,999	4,255
Average Recorded Investment
With an allowance recorded	16,494	6,345	101
With no related allowance	10,339	14,412	3,465
Total loans individually evaluated for impairment	26,833	20,757	3,566
Interest Income Recognized
With an allowance recorded	791	220	7
With no related allowance	432	458	131
Total loans individually evaluated for impairment	1,223	678	138
Multi-family
Unpaid Principal Balance
With no related allowance		876
Total loans individually evaluated for impairment		876
Recorded Investment
With no related allowance		876
Total loans individually evaluated for impairment		876
Average Recorded Investment
With no related allowance	434	447	1,344
Total loans individually evaluated for impairment	434	447	1,344
Interest Income Recognized
With no related allowance	10	10	9
Total loans individually evaluated for impairment	10	10	9
Construction and land development
Unpaid Principal Balance
With an allowance recorded		2,081
With no related allowance	2,112	1,762
Total loans individually evaluated for impairment	2,112	3,843
Recorded Investment
With an allowance recorded		2,055
With no related allowance	2,018	1,754
Total loans individually evaluated for impairment	2,018	3,809
Related Allowance		222
Average Recorded Investment
With an allowance recorded	554	2,441	3,988
With no related allowance	2,107	892	107
Total loans individually evaluated for impairment	2,661	3,333	4,095
Interest Income Recognized
With an allowance recorded	27	116	171
With no related allowance	28	23	4
Total loans individually evaluated for impairment	55	139	175
One-to-four family residential
Unpaid Principal Balance
With an allowance recorded	1,421	2,963
With no related allowance	7,129	9,325
Total loans individually evaluated for impairment	8,550	12,288
Recorded Investment
With an allowance recorded	1,314	2,739
With no related allowance	5,583	7,604
Total loans individually evaluated for impairment	6,897	10,343
Related Allowance	210	560
Average Recorded Investment
With an allowance recorded	1,988	3,120	3,414
With no related allowance	6,248	8,022	8,360
Total loans individually evaluated for impairment	8,236	11,142	11,774
Interest Income Recognized
With an allowance recorded	77	110	79
With no related allowance	192	316	240
Total loans individually evaluated for impairment	269	426	319
Municipal, consumer, and other
Unpaid Principal Balance
With an allowance recorded	8,523	12,207
With no related allowance	4,603	1,431
Total loans individually evaluated for impairment	13,126	13,638
Recorded Investment
With an allowance recorded	8,498	12,181
With no related allowance	4,543	1,365
Total loans individually evaluated for impairment	13,041	13,546
Related Allowance	1,875	3,301
Average Recorded Investment
With an allowance recorded	8,681	10,617	9,284
With no related allowance	4,666	3,089	4,874
Total loans individually evaluated for impairment	13,347	13,706	14,158
Interest Income Recognized
With an allowance recorded	158	286	396
With no related allowance	86	115	104
Total loans individually evaluated for impairment	$ 244	$ 401	$ 500

CONSOLIDATED BALANCE SHEETS - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
ASSETS
Cash and due from banks	$ 23,387	$ 24,912
Interest-bearing deposits with banks	385,881	287,539
Cash and cash equivalents	409,268	312,451
Interest-bearing time deposits with banks	490
Debt securities available-for-sale, at fair value	942,168	922,869
Debt securities held-to-maturity (fair value of $336,027 in 2021 and $72,441 in 2020)	336,185	68,395
Equity securities with readily determinable fair value	3,443	3,292
Equity securities with no readily determinable fair value	1,927	1,552
Restricted stock, at cost	2,739	2,498
Loans held for sale	4,942	14,713
Loans, before allowance for loan losses	2,499,689	2,247,006
Allowance for loan losses	(23,936)	(31,838)
Loans, net of allowance for loan losses	2,475,753	2,215,168
Bank owned life insurance	7,393
Bank premises and equipment, net	52,483	52,904
Bank premises held for sale	1,452	121
Foreclosed assets	3,278	4,168
Goodwill	29,322	23,620
Core deposit intangible assets, net	1,943	2,798
Mortgage servicing rights, at fair value	7,994	5,934
Investments in unconsolidated subsidiaries	1,165	1,165
Accrued interest receivable	14,901	14,255
Other assets	17,408	20,664
Total assets	4,314,254	3,666,567
Deposits:
Noninterest-bearing	1,087,659	882,939
Interest-bearing	2,650,526	2,247,595
Total deposits	3,738,185	3,130,534
Securities sold under agreements to repurchase	61,256	45,736
Subordinated notes	39,316	39,238
Junior subordinated debentures issued to capital trusts	37,714	37,648
Other liabilities	25,902	49,494
Total liabilities	3,902,373	3,302,650
COMMITMENTS AND CONTINGENCIES (Notes 12 and 24)
Stockholders' Equity
Preferred stock, $0.01 par value; 25,000,000 shares authorized; none issued or outstanding
Common stock, $0.01 par value; 125,000,000 shares authorized; shares issued of 29,276,547 in 2021 and 27,457,306 in 2020; shares outstanding of 28,986,061 in 2021 and 27,457,306 in 2020	293	275
Surplus	220,891	190,875
Retained earnings	194,132	154,614
Accumulated other comprehensive income	1,471	18,153
Treasury stock at cost, 290,486 shares in 2021 and none in 2020	(4,906)
Total stockholders' equity	411,881	363,917
Total liabilities and stockholders' equity	$ 4,314,254	$ 3,666,567

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Past Due Status (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Accruing Interest
Accruing Interest	$ 2,495,258	$ 2,235,144
Nonaccrual	2,763	9,939
Total	2,499,689	2,247,006
30 - 89 Days Past Due
Accruing Interest
Accruing Interest	1,620	1,307
90+ Days Past Due
Accruing Interest
Accruing Interest	48	616
Commercial and industrial
Accruing Interest
Accruing Interest	286,563	392,490
Nonaccrual	374	822
Total	286,946	393,312
Commercial and industrial \| 30 - 89 Days Past Due
Accruing Interest
Accruing Interest	9
Agricultural and farmland
Accruing Interest
Accruing Interest	247,772	222,723
Total	247,796	222,723
Agricultural and farmland \| 30 - 89 Days Past Due
Accruing Interest
Accruing Interest	24
Commercial real estate - owner occupied
Accruing Interest
Accruing Interest	234,441	221,308
Nonaccrual		940
Total	234,544	222,360
Commercial real estate - owner occupied \| 30 - 89 Days Past Due
Accruing Interest
Accruing Interest	103	112
Commercial real estate - non-owner occupied
Accruing Interest
Accruing Interest	683,029	516,387
Nonaccrual	171	4,008
Total	684,023	520,395
Commercial real estate - non-owner occupied \| 30 - 89 Days Past Due
Accruing Interest
Accruing Interest	823
Multi-family
Accruing Interest
Accruing Interest	263,911	236,391
Total	263,911	236,391
Construction and land development
Accruing Interest
Accruing Interest	297,465	225,508
Nonaccrual	519	144
Total	298,048	225,652
Construction and land development \| 30 - 89 Days Past Due
Accruing Interest
Accruing Interest	64
One-to-four family residential
Accruing Interest
Accruing Interest	325,780	301,282
Nonaccrual	1,642	3,914
Total	327,837	306,775
One-to-four family residential \| 30 - 89 Days Past Due
Accruing Interest
Accruing Interest	383	984
One-to-four family residential \| 90+ Days Past Due
Accruing Interest
Accruing Interest	32	595
Municipal, consumer, and other
Accruing Interest
Accruing Interest	156,297	119,055
Nonaccrual	57	111
Total	156,584	119,398
Municipal, consumer, and other \| 30 - 89 Days Past Due
Accruing Interest
Accruing Interest	214	211
Municipal, consumer, and other \| 90+ Days Past Due
Accruing Interest
Accruing Interest	$ 16	$ 21

EMPLOYEE BENEFIT PLANS (Details) - USD ($)	12 Months Ended
EMPLOYEE BENEFIT PLANS (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
EMPLOYEE BENEFIT PLANS
Contribution liability	$ 6,588,000	$ 6,287,000
Medical benefits expense amount	4,161,000	4,840,000	$ 3,734,000
Profit Sharing Plan
EMPLOYEE BENEFIT PLANS
Contribution expense	$ 1,269,000	$ 1,118,000	$ 1,223,000
Employees contributions vesting period	6 years	6 years	6 years

FAIR VALUE OF FINANCIAL INSTRUMENTS - Unobservable inputs used in nonrecurring measurements (Details) - Nonrecurring - Level 3 $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
Collateral-dependent impaired loans
FAIR VALUE OF FINANCIAL INSTRUMENTS
Alternative Investment, Measurement Input [Extensible List]	hbt:AppraisalAdjustmentsMember	hbt:AppraisalAdjustmentsMember
Collateral-dependent impaired loans \| Appraisal of collateral
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 22,423	$ 33,320
Bank premises held for sale
FAIR VALUE OF FINANCIAL INSTRUMENTS
Alternative Investment, Measurement Input [Extensible List]	hbt:AppraisalAdjustmentsMember	hbt:AppraisalAdjustmentsMember
Bank premises held for sale \| Appraisal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 1,452	$ 121
Measurement input	7	7
Bank premises held for sale \| Appraisal \| Weighted average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	7	7
Foreclosed assets
FAIR VALUE OF FINANCIAL INSTRUMENTS
Alternative Investment, Measurement Input [Extensible List]	hbt:AppraisalAdjustmentsMember	hbt:AppraisalAdjustmentsMember
Foreclosed assets \| Appraisal
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair Value	$ 3,278	$ 4,168
Measurement input	7	7
Foreclosed assets \| Appraisal \| Weighted average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	7	7

STOCK-BASED COMPENSATION PLANS (Tables)

12 Months Ended

Dec. 31, 2021

STOCK-BASED COMPENSATION PLANS

Summary of stock-based compensation expense


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Restricted stock units	$	579	$	351	$	—
Performance restricted stock units		185		—		—
Total awards classified as equity		764		351		—
Stock appreciation rights		226		(137)		343
Total stock-based compensation expense	$	990	$	214	$	343

Schedule of the summary of outstanding restricted stock units


		Weighted
		Average
	Restricted	Grant Date
	Stock Units	Fair Value
Balance, December 31, 2018	—	$	—
Granted	—		—
Vested	—		—
Forfeited	—		—
Balance, December 31, 2019	—	$	—
Granted	73,700		18.98
Vested	—		—
Forfeited	(2,700)		19.03
Balance, December 31, 2020	71,000	$	18.98
Granted	59,994		15.81
Vested	(20,225)		18.86
Forfeited	(1,525)		18.11
Balance, December 31, 2021	109,244	$	17.27

Schedule of the summary of performance outstanding restricted stock units


		Weighted
	Performance	Average
	Restricted	Grant Date
	Stock Units	Fair Value
Balance, December 31, 2018	—	$	—
Granted	—		—
Vested	—		—
Forfeited	—		—
Balance, December 31, 2019	—	$	—
Granted	—		—
Vested	—		—
Forfeited	—		—
Balance, December 31, 2020	—	$	—
Granted	38,344		15.72
Vested	—		—
Forfeited	—		—
Balance, December 31, 2021	38,344	$	15.72

Schedule of the status of stock appreciation rights and changes


		Weighted
	Stock	Average
	Appreciation	Grant Date
	Rights	Assigned Value
Balance, December 31, 2018	91,800	$	5.73
Granted	110,160		16.32
Exercised	(91,800)		5.73
Expired	—		—
Forfeited	—		—
Balance, December 31, 2019	110,160	$	16.32
Granted	—		—
Exercised	—		—
Expired	—		—
Forfeited	(4,590)		16.32
Balance, December 31, 2020	105,570	$	16.32
Granted	—		—
Exercised	(6,120)		16.32
Expired	(1,530)		16.32
Forfeited	—		—
Balance, December 31, 2021	97,920	$	16.32

A further summary of outstanding stock appreciation rights as of December 31, 2021, is as follows:


			Weighted Average
	Stock Appreciation Rights		Remaining
Grant Date Assigned Values	Outstanding	Exercisable	Contractual Term
$ 16.32	97,920	85,680	7.2	years

Schedule of assumptions used in valuing stock appreciation rights


	December 31, 2021			December 31, 2020
Risk-free interest rate		1.40	%		0.80	%
Expected volatility		35.52	%		34.72	%
Expected life (in years)		7.7			8.7
Expected dividend yield		3.20	%		3.96	%

COMMITMENTS AND CONTINGENCIES (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Standby letters of credit
COMMITMENTS AND CONTINGENCIES
Financial instruments off-balance sheet credit risks	$ 12,960	$ 10,031
Commitments to extend credit
COMMITMENTS AND CONTINGENCIES
Financial instruments off-balance sheet credit risks	$ 609,947	$ 530,191

FAIR VALUE OF FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2021

FAIR VALUE OF FINANCIAL INSTRUMENTS

Summary of assets measured at fair value on a recurring basis


December 31, 2021	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

		(dollars in thousands)
Debt securities available-for-sale:
U.S. Treasury	$	108,976	$	—	$	—	$	108,976
U.S. government agency		—		128,105		—		128,105
Municipal		—		297,077		—		297,077
Mortgage-backed:
Agency residential		—		179,466		—		179,466
Agency commercial		—		164,061		—		164,061
Corporate		—		64,483		—		64,483
Equity securities with readily determinable fair values		3,443		—		—		3,443
Mortgage servicing rights		—		—		7,994		7,994
Derivative financial assets		—		8,697		—		8,697
Derivative financial liabilities		—		9,377		—		9,377


December 31, 2020	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

		(dollars in thousands)
Debt securities available-for-sale:
U.S. government agency	$	—	$	121,993	$	—	$	121,993
Municipal		—		274,261		—		274,261
Mortgage-backed:
Agency residential		—		203,252		—		203,252
Agency commercial		—		250,766		—		250,766
Corporate		—		72,597		—		72,597
Equity securities with readily determinable fair values		3,292		—		—		3,292
Mortgage servicing rights		—		—		5,934		5,934
Derivative financial assets		—		15,360		—		15,360
Derivative financial liabilities		—		16,818		—		16,818

Schedule of quantitative information about the unobservable inputs used in recurring Level 3 fair value measurements

The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands):


December 31, 2021	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	7,994	Discounted cash flows	Constant pre-payment rates (CPR)	7.0% to 88.9% (11.7%)
				Discount rate	9.0% to 11.0% (9.0%)

December 31, 2020	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	5,934	Discounted cash flows	Constant pre-payment rates (CPR)	7.0% to 85.0% (17.3%)
				Discount rate	9.0% to 11.0% (9.0%)

Summary of assets measured at fair value on a nonrecurring basis


December 31, 2021	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

		(dollars in thousands)
Loans held for sale	$	—	$	4,942	$	—	$	4,942
Collateral-dependent impaired loans		—		—		22,423		22,423
Bank premises held for sale		—		—		1,452		1,452
Foreclosed assets		—		—		3,278		3,278


December 31, 2020	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

		(dollars in thousands)
Loans held for sale	$	—	$	14,713	$	—	$	14,713
Collateral-dependent impaired loans		—		—		33,320		33,320
Bank premises held for sale		—		—		121		121
Foreclosed assets		—		—		4,168		4,168

Schedule of quantitative information about the unobservable inputs used in non-recurring Level 3 fair value measurements

The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands).


December 31, 2021	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent impaired loans	$	22,423	Appraisal of collateral	Appraisal adjustments	Not meaningful
Bank premises held for sale		1,452	Appraisal	Appraisal adjustments	7% (7%)
Foreclosed assets		3,278	Appraisal	Appraisal adjustments	7% (7%)

December 31, 2020	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent impaired loans	$	33,320	Appraisal of collateral	Appraisal adjustments	Not meaningful
Bank premises held for sale		121	Appraisal	Appraisal adjustments	7% (7%)
Foreclosed assets		4,168	Appraisal	Appraisal adjustments	7% (7%)

Summary information on the carrying amounts and estimated fair values of the Company's financial instruments


	Fair Value	December 31, 2021				December 31, 2020
	Hierarchy	Carrying		Estimated		Carrying		Estimated
	Level	Amount		Fair Value		Amount		Fair Value

			(dollars in thousands)
Financial assets:
Cash and cash equivalents	Level 1	$	409,268	$	409,268	$	312,451	$	312,451
Debt securities held-to-maturity	Level 2		336,185		336,027		68,395		72,441
Restricted stock	Level 3		2,739		2,739		2,498		2,498
Loans, net	Level 3		2,475,753		2,494,686		2,215,168		2,235,767
Investments in unconsolidated subsidiaries	Level 3		1,165		1,165		1,165		1,165
Accrued interest receivable	Level 2		14,901		14,901		14,255		14,255

Financial liabilities:
Time deposits	Level 3		328,208		327,779		299,474		300,989
Securities sold under agreements to repurchase	Level 2		61,256		61,256		45,736		45,736
Subordinated notes	Level 3		39,316		41,602		39,238		38,403
Junior subordinated debentures	Level 3		37,714		33,640		37,648		23,766
Accrued interest payable	Level 2		1,043		1,043		1,151		1,151

ACQUISITIONS - Schedule of pro forma (Details) - USD ($) $ / shares in Units, $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Business Acquisition, Pro Forma Information [Abstract]
Total revenues (net interest income and noninterest income)	$ 166,677	$ 161,005
Net income	$ 57,883	$ 39,263
Earnings per share - basic	$ 1.98	$ 1.34
Earnings per share - diluted	$ 1.98	$ 1.34

SECURITIES - Sale and Gain (loss) on securities (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Net unrealized gains (losses) on equity securities:
Readily determinable fair value	$ 107	$ 33	$ 160
No readily determinable fair value			(165)
Gains (losses) on securities	$ 107	$ 33	$ (5)

CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Stockholders' Equity
Debt securities held-to-maturity	$ 336,027	$ 72,441
Allowance for loan losses	$ 23,936	$ 31,838
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, shares authorized	25,000,000	25,000,000
Preferred stock, shares issued	0	0
Preferred stock, shares outstanding	0	0
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common stock, shares authorized	125,000,000	125,000,000
Common stock, shares issued	29,276,547	27,457,306
Common stock, shares outstanding	28,986,061	27,457,306
Treasury stock ,shares	290,486	0

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS - Statements of income (Details) - USD ($)		12 Months Ended
	Oct. 11, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Other income		$ 3,034,000	$ 3,812,000	$ 4,108,000
Total noninterest income		37,328,000	34,456,000	32,751,000
Interest expense		5,820,000	6,460,000	9,935,000
INCOME BEFORE INCOME TAX EXPENSE		76,562,000	49,573,000	72,121,000
INCOME TAX EXPENSE	$ (534,000)	20,291,000	12,728,000	5,256,000
NET INCOME		56,271,000	36,845,000	66,865,000
Reportable Legal Entities \| Consolidated HBT
Bank		20,000,000	17,600,000	109,969,000
Non-bank			36,000	385,000
Bank		41,227,000	22,462,000	(41,202,000)
Non-bank			(36,000)	(151,000)
Other income		454,000	215,000	52,000
Total noninterest income		61,681,000	40,277,000	69,053,000
Interest expense		3,305,000	2,189,000	1,922,000
Other expense		3,741,000	2,519,000	1,025,000
Total expenses		7,046,000	4,708,000	2,947,000
INCOME BEFORE INCOME TAX EXPENSE		54,635,000	35,569,000	66,106,000
INCOME TAX EXPENSE		(1,636,000)	(1,276,000)	(759,000)
NET INCOME		$ 56,271,000	$ 36,845,000	$ 66,865,000

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Summary (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	$ 31,838	$ 22,299	$ 20,509
Provision for loan losses	(8,077)	10,532	3,404
Charge-offs	(1,414)	(2,968)	(3,273)
Recoveries	1,589	1,975	1,659
Allowance for loan losses at end of period	23,936	31,838	22,299
Commercial and industrial
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	3,929	4,441	3,748
Provision for loan losses	(1,474)	677	1,139
Charge-offs	(668)	(1,784)	(886)
Recoveries	653	595	440
Allowance for loan losses at end of period	2,440	3,929	4,441
Agricultural and farmland
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	793	2,766	2,650
Provision for loan losses	52	(1,946)	146
Charge-offs		(27)	(30)
Allowance for loan losses at end of period	845	793	2,766
Commercial real estate - owner occupied
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	3,141	1,779	2,506
Provision for loan losses	(1,280)	961	(376)
Charge-offs	(30)	(39)	(407)
Recoveries	9	440	56
Allowance for loan losses at end of period	1,840	3,141	1,779
Commercial real estate - non-owner occupied
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	11,251	3,663	2,644
Provision for loan losses	(3,130)	7,862	1,110
Charge-offs		(349)	(111)
Recoveries	24	75	20
Allowance for loan losses at end of period	8,145	11,251	3,663
Multi-family
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	1,957	1,024	912
Provision for loan losses	(694)	933	153
Charge-offs			(41)
Allowance for loan losses at end of period	1,263	1,957	1,024
Construction and land development
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	4,232	2,977	4,176
Provision for loan losses	340	1,032	(1,640)
Charge-offs		(27)	(9)
Recoveries	342	250	450
Allowance for loan losses at end of period	4,914	4,232	2,977
One-to-four family residential
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	1,801	2,540	2,782
Provision for loan losses	(472)	(894)	513
Charge-offs	(267)	(155)	(1,105)
Recoveries	249	310	350
Allowance for loan losses at end of period	1,311	1,801	2,540
Municipal, consumer, and other
Activity in the allowance for loan losses
Allowance for loan losses at beginning of period	4,734	3,109	1,091
Provision for loan losses	(1,419)	1,907	2,359
Charge-offs	(449)	(587)	(684)
Recoveries	312	305	343
Allowance for loan losses at end of period	$ 3,178	$ 4,734	$ 3,109

CONSOLIDATED STATEMENTS OF INCOME - USD ($)	12 Months Ended
CONSOLIDATED STATEMENTS OF INCOME - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Loans, including fees:
Taxable	$ 103,900,000	$ 102,893,000	$ 117,296,000
Federally tax exempt	2,384,000	2,303,000	2,846,000
Securities:
Taxable	16,948,000	13,179,000	14,854,000
Federally tax exempt	4,400,000	4,696,000	5,728,000
Interest-bearing deposits in bank	527,000	938,000	2,951,000
Other interest and dividend income	64,000	56,000	60,000
Total interest and dividend income	128,223,000	124,065,000	143,735,000
INTEREST EXPENSE
Deposits	2,472,000	4,221,000	7,932,000
Securities sold under agreements to repurchase	34,000	48,000	72,000
Borrowings	9,000	2,000	9,000
Subordinated notes	1,879,000	616,000
Junior subordinated debentures issued to capital trusts	1,426,000	1,573,000	1,922,000
Total interest expense	5,820,000	6,460,000	9,935,000
Net interest income	122,403,000	117,605,000	133,800,000
PROVISION FOR LOAN LOSSES	(8,077,000)	10,532,000	3,404,000
Net interest income after provision for loan losses	130,480,000	107,073,000	130,396,000
NONINTEREST INCOME
Mortgage servicing	2,825,000	2,978,000	3,143,000
Mortgage servicing rights fair value adjustment	1,690,000	(2,584,000)	(2,400,000)
Gains on sale of mortgage loans	5,846,000	8,835,000	3,092,000
Gains (losses) on securities	107,000	33,000	(5,000)
Gains (losses) on foreclosed assets	310,000	142,000	940,000
Gains (losses) on other assets	(723,000)	(71,000)	1,244,000
Income on bank owned life insurance	41,000
Other noninterest income	3,034,000	3,812,000	4,108,000
Total noninterest income	37,328,000	34,456,000	32,751,000
NONINTEREST EXPENSE
Salaries	49,437,000	50,616,000	49,003,000
Employee benefits	6,694,000	8,045,000	9,883,000
Occupancy of bank premises	6,788,000	6,580,000	6,867,000
Furniture and equipment	2,676,000	2,447,000	2,813,000
Data processing	7,329,000	6,742,000	5,570,000
Marketing and customer relations	3,376,000	3,476,000	3,873,000
Amortization of intangible assets	1,054,000	1,232,000	1,423,000
FDIC insurance	1,043,000	707,000	198,000
Loan collection and servicing	1,317,000	1,755,000	2,633,000
Foreclosed assets	908,000	557,000	676,000
Other noninterest expense	10,624,000	9,799,000	8,087,000
Total noninterest expense	91,246,000	91,956,000	91,026,000
INCOME BEFORE INCOME TAX EXPENSE	76,562,000	49,573,000	72,121,000
INCOME TAX EXPENSE	20,291,000	12,728,000	5,256,000
NET INCOME	$ 56,271,000	$ 36,845,000	$ 66,865,000
EARNINGS PER SHARE - BASIC	$ 2.02	$ 1.34	$ 3.33
EARNINGS PER SHARE - DILUTED	$ 2.02	$ 1.34	$ 3.33
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING	27,795,806	27,457,306	20,090,270
Card income
NONINTEREST INCOME
Revenue	$ 9,734,000	$ 8,087,000	$ 7,765,000
Service charges on deposit accounts
NONINTEREST INCOME
Revenue	6,080,000	5,987,000	7,870,000
Wealth management fees
NONINTEREST INCOME
Revenue	$ 8,384,000	$ 7,237,000	6,827,000
Title insurance activity
NONINTEREST INCOME
Revenue			$ 167,000

GOODWILL AND OTHER INTANGIBLE ASSETS

12 Months Ended

Dec. 31, 2021

GOODWILL AND OTHER INTANGIBLE ASSETS

GOODWILL AND OTHER INTANGIBLE ASSETS

NOTE 9 – GOODWILL AND OTHER INTANGIBLE ASSETS

The following table summarizes the changes in the Company’s goodwill and core deposit intangible assets for the years ended December 31:


	Year Ended December 31,
	2021				2020				2019
			Core Deposit				Core Deposit				Core Deposit
	Goodwill		Intangible		Goodwill		Intangible		Goodwill		Intangible

	(dollars in thousands)
Beginning balance	$	23,620	$	2,798	$	23,620	$	4,030	$	23,620	$	5,453
Additions		5,702		199		—		—		—		—
Amortization		—		(1,054)		—		(1,232)		—		(1,423)
Ending balance	$	29,322	$	1,943	$	23,620	$	2,798	$	23,620	$	4,030
Accumulated amortization	$	—	$	19,974	$	—	$	18,920	$	—	$	17,688

Amortization of core deposit intangible assets for the years subsequent to December 31, 2021 is expected to be as follows (dollars in thousands):


Year ended December 31,
2022	$	873
2023		353
2024		337
2025		275
2026		20
Thereafter		85
Total	$	1,943

FORECLOSED ASSETS (Tables)

12 Months Ended

Dec. 31, 2021

FORECLOSED ASSETS

Schedule of foreclosed assets activity


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Beginning balance	$	4,168	$	5,099	$	9,559
Transfers from loans		4,857		1,074		2,520
Capitalized improvements		—		6		41
Proceeds from sales		(5,805)		(2,079)		(5,460)
Sales through loan origination		(252)		(67)		(2,046)
Net gain (loss) on sales		505		348		1,048
Direct write-downs		(195)		(213)		(563)
Ending balance	$	3,278	$	4,168	$	5,099

Schedule of gains (losses) on foreclosed assets


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Direct write-downs	$	(195)	$	(213)	$	(563)
Net gain (loss) on sales		505		348		1,048
Guarantee reimbursements		—		7		80
Gain on settlement		—		—		375
Gains (losses) on foreclosed assets	$	310	$	142	$	940

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

12 Months Ended

Dec. 31, 2021

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

NOTE 11 – SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

All repurchase agreements are sweep instruments. The securities underlying the agreements as of December 31, 2021 and 2020 were under the Company’s control in safekeeping at third-party financial institutions, and included debt securities.

Information pertaining to securities sold under agreements to repurchase as of December 31 is as follows:


	December 31, 2021			December 31, 2020

	(dollars in thousands)
Balance at end of year	$	61,256		$	45,736
Weighted average rate as of end of year		0.07	%		0.06	%
Fair value of securities underlying the agreements	$	64,164		$	62,472
Carrying value of securities underlying the agreements	$	64,262		$	62,415

DEFERRED COMPENSATION (Details) - SERP - USD ($)	12 Months Ended
DEFERRED COMPENSATION (Details) - SERP - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
DEFERRED COMPENSATION
Deferred compensation liability	$ 0	$ 0
Deferred compensation expense		$ 1,660,000	$ 4,291,000
Period over which SERP benefit payments to be paid	30 years

FAIR VALUE OF FINANCIAL INSTRUMENTS - Carrying amount and estimated fair value (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Financial assets:
Debt securities held-to-maturity	$ 336,027	$ 72,441
Level 1 \| Carrying Amount
Financial assets:
Cash and cash equivalents	409,268	312,451
Level 1 \| Estimated Fair Value
Financial assets:
Cash and cash equivalents	409,268	312,451
Level 2 \| Carrying Amount
Financial assets:
Debt securities held-to-maturity	336,185	68,395
Accrued interest receivable	14,901	14,255
Financial liabilities:
Securities sold under agreements to repurchase	61,256	45,736
Accrued interest payable	1,043	1,151
Level 2 \| Estimated Fair Value
Financial assets:
Debt securities held-to-maturity	336,027	72,441
Accrued interest receivable	14,901	14,255
Financial liabilities:
Securities sold under agreements to repurchase	61,256	45,736
Accrued interest payable	1,043	1,151
Level 3 \| Carrying Amount
Financial assets:
Restricted stock	2,739	2,498
Loans, net	2,475,753	2,215,168
Investments in unconsolidated subsidiaries	1,165	1,165
Financial liabilities:
Time deposits	328,208	299,474
Level 3 \| Estimated Fair Value
Financial assets:
Restricted stock	2,739	2,498
Loans, net	2,494,686	2,235,767
Investments in unconsolidated subsidiaries	1,165	1,165
Financial liabilities:
Time deposits	327,779	300,989
Subordinated Notes \| Level 3 \| Carrying Amount
Financial liabilities:
Subordinated debt	39,316	39,238
Subordinated Notes \| Level 3 \| Estimated Fair Value
Financial liabilities:
Subordinated debt	41,602	38,403
Junior Subordinated Debentures Issued \| Level 3 \| Carrying Amount
Financial liabilities:
Subordinated debt	37,714	37,648
Junior Subordinated Debentures Issued \| Level 3 \| Estimated Fair Value
Financial liabilities:
Subordinated debt	$ 33,640	$ 23,766

FAIR VALUE OF FINANCIAL INSTRUMENTS - Mortgage Servicing Rights (Details) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	$ 7,994	$ 5,934
Recurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	7,994	5,934
Recurring \| Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	$ 7,994	$ 5,934
Valuation Technique	us-gaap:ValuationTechniqueDiscountedCashFlowMember	us-gaap:ValuationTechniqueDiscountedCashFlowMember
Recurring \| Level 3 \| Constant pre-payment rates (CPR)
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	$ 7,994	$ 5,934
Recurring \| Level 3 \| Constant pre-payment rates (CPR) \| Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	7.0	7.0
Recurring \| Level 3 \| Constant pre-payment rates (CPR) \| Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	88.9	85.0
Recurring \| Level 3 \| Constant pre-payment rates (CPR) \| Weighted average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	11.7	17.3
Recurring \| Level 3 \| Discount rate \| Minimum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	9.0	9.0
Recurring \| Level 3 \| Discount rate \| Maximum
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	11.0	11.0
Recurring \| Level 3 \| Discount rate \| Weighted average
FAIR VALUE OF FINANCIAL INSTRUMENTS
Measurement input	9.0	9.0

COMMITMENTS AND CONTINGENCIES

12 Months Ended

Dec. 31, 2021

COMMITMENTS AND CONTINGENCIES

COMMITMENTS AND CONTINGENCIES

NOTE 24 – COMMITMENTS AND CONTINGENCIES

Financial Instruments

The Bank is party to credit-related financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers. These financial instruments include commitments to extend credit and standby letters of credit. Such instruments involve, to varying degrees, elements of credit and interest rate risk in excess of the amount recognized in the consolidated balance sheets.

The Bank’s exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and standby letters of credit is represented by the contractual amount of those instruments. The Bank uses the same credit policies in making commitments and conditional obligations as it does for on-balance sheet instruments.

Such commitments and conditional obligations were as follows as of December 31:


	Contractual Amount
	December 31, 2021		December 31, 2020

		(dollars in thousands)
Commitments to extend credit	$	609,947	$	530,191
Standby letters of credit		12,960		10,031

Commitments to extend credit are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have fixed expiration dates or other termination

clauses and may require payment of a fee. Since many of the commitments are expected to expire without being drawn upon, the total commitment amounts do not necessarily represent future cash requirements. The Bank evaluates each customer’s credit worthiness on a case-by-case basis. The amount of collateral obtained, if deemed necessary, by the Bank upon extension of credit is based on management’s credit evaluation of the customer. Collateral held varies, but may include real estate, accounts receivable, inventory, property, plant, and equipment, and income-producing properties.

Standby letters of credit are conditional commitments issued by the Bank to guarantee the performance of a customer to a third party. Those standby letters of credit are primarily issued to support extensions of credit. The credit risk involved in issuing standby letters of credit is essentially the same as that involved in extending loans to customers. The Bank secures the standby letters of credit with the same collateral used to secure the related loan.

Lease Commitments

The Company leases office space under operating leases. Certain leases contain renewal options for periods from three to five years at their fair rental value at the time of renewal. Future minimum lease payments under these leases are as follows (dollars in thousands):


Year ended December 31,
2022	$	167
2023		131
2024		81
2025		33
Total	$	412

Legal Contingencies

Various legal claims arise from time to time in the normal course of business which, in the opinion of management, will have no material effect on the Company’s consolidated financial statements.

LOANS AND THE ALLOWANCE FOR LOAN LOSSES (Tables)

12 Months Ended

Dec. 31, 2021

LOANS AND THE ALLOWANCE FOR LOAN LOSSES

Summary of Loans


	December 31,		December 31,
	2021		2020

	(dollars in thousands)
Commercial and industrial	$	286,946	$	393,312
Agricultural and farmland		247,796		222,723
Commercial real estate - owner occupied		234,544		222,360
Commercial real estate - non-owner occupied		684,023		520,395
Multi-family		263,911		236,391
Construction and land development		298,048		225,652
One-to-four family residential		327,837		306,775
Municipal, consumer, and other		156,584		119,398
Loans, before allowance for loan losses		2,499,689		2,247,006
Allowance for loan losses		(23,936)		(31,838)
Loans, net of allowance for loan losses	$	2,475,753	$	2,215,168

Paycheck Protection Program (PPP) loans (included above)
Commercial and industrial	$	28,404	$	153,860
Agricultural and farmland		913		3,049
Municipal, consumer, and other		171		6,587
Total PPP loans	$	29,488	$	163,496

Schedule of activity in allowance for loan losses

The following tables detail activity in the allowance for loan losses for the years ended December 31:


					Commercial		Commercial								Municipal,
	Commercial		Agricultural		Real Estate		Real Estate				Construction		One-to-four		Consumer,
	and		and		Owner		Non-owner				and Land		Family		and
	Industrial		Farmland		Occupied		Occupied		Multi-Family		Development		Residential		Other		Total

	(dollars in thousands)
Balance, December 31, 2018	$	3,748	$	2,650	$	2,506	$	2,644	$	912	$	4,176	$	2,782	$	1,091	$	20,509
Provision for loan losses		1,139		146		(376)		1,110		153		(1,640)		513		2,359		3,404
Charge-offs		(886)		(30)		(407)		(111)		(41)		(9)		(1,105)		(684)		(3,273)
Recoveries		440		—		56		20		—		450		350		343		1,659
Balance, December 31, 2019		4,441		2,766		1,779		3,663		1,024		2,977		2,540		3,109		22,299
Provision for loan losses		677		(1,946)		961		7,862		933		1,032		(894)		1,907		10,532
Charge-offs		(1,784)		(27)		(39)		(349)		—		(27)		(155)		(587)		(2,968)
Recoveries		595		—		440		75		—		250		310		305		1,975
Balance, December 31, 2020		3,929		793		3,141		11,251		1,957		4,232		1,801		4,734		31,838
Provision for loan losses		(1,474)		52		(1,280)		(3,130)		(694)		340		(472)		(1,419)		(8,077)
Charge-offs		(668)		—		(30)		—		—		—		(267)		(449)		(1,414)
Recoveries		653		—		9		24		—		342		249		312		1,589
Balance, December 31, 2021	$	2,440	$	845	$	1,840	$	8,145	$	1,263	$	4,914	$	1,311	$	3,178	$	23,936

The following tables present the recorded investments in loans and the allowance for loan losses by category as of December 31:


					Commercial		Commercial								Municipal,
	Commercial		Agricultural		Real Estate		Real Estate				Construction		One-to-four		Consumer,
	and		and		Owner		Non-owner				and Land		Family		and
December 31, 2021	Industrial		Farmland		Occupied		Occupied		Multi-Family		Development		Residential		Other		Total

Loan balances:	(dollars in thousands)
Collectively evaluated for impairment	$	272,064	$	247,021	$	216,794	$	641,555	$	262,701	$	293,548	$	314,807	$	143,510	$	2,392,000
Individually evaluated for impairment		14,744		12		12,332		29,575		—		2,018		6,897		13,041		78,619
Acquired with deteriorated credit quality		138		763		5,418		12,893		1,210		2,482		6,133		33		29,070
Total	$	286,946	$	247,796	$	234,544	$	684,023	$	263,911	$	298,048	$	327,837	$	156,584	$	2,499,689

Allowance for loan losses:
Collectively evaluated for impairment	$	2,253	$	845	$	1,480	$	5,138	$	1,259	$	4,895	$	1,099	$	1,302	$	18,271
Individually evaluated for impairment		187		—		327		2,999		—		—		210		1,875		5,598
Acquired with deteriorated credit quality		—		—		33		8		4		19		2		1		67
Total	$	2,440	$	845	$	1,840	$	8,145	$	1,263	$	4,914	$	1,311	$	3,178	$	23,936

					Commercial		Commercial								Municipal,
	Commercial		Agricultural		Real Estate		Real Estate				Construction		One-to-four		Consumer,
	and		and		Owner		Non-owner				and Land		Family		and
December 31, 2020	Industrial		Farmland		Occupied		Occupied		Multi-Family		Development		Residential		Other		Total

Loan balances:	(dollars in thousands)
Collectively evaluated for impairment	$	387,072	$	217,077	$	201,417	$	480,165	$	234,252	$	219,822	$	287,845	$	105,796	$	2,133,446
Individually evaluated for impairment		5,312		4,793		13,132		25,993		876		3,809		10,343		13,546		77,804
Acquired with deteriorated credit quality		928		853		7,811		14,237		1,263		2,021		8,587		56		35,756
Total	$	393,312	$	222,723	$	222,360	$	520,395	$	236,391	$	225,652	$	306,775	$	119,398	$	2,247,006

Allowance for loan losses:
Collectively evaluated for impairment	$	2,736	$	771	$	2,306	$	6,736	$	1,950	$	3,984	$	1,237	$	1,432	$	21,152
Individually evaluated for impairment		1,193		22		429		4,255		—		222		560		3,301		9,982
Acquired with deteriorated credit quality		—		—		406		260		7		26		4		1		704
Total	$	3,929	$	793	$	3,141	$	11,251	$	1,957	$	4,232	$	1,801	$	4,734	$	31,838

Schedule of loans individually evaluated for impairment by category


	Unpaid
	Principal		Recorded		Related
December 31, 2021	Balance		Investment		Allowance

With an allowance recorded:	(dollars in thousands)
Commercial and industrial	$	303	$	303	$	187
Agricultural and farmland		—		—		—
Commercial real estate - owner occupied		3,013		3,013		327
Commercial real estate - non-owner occupied		14,912		14,893		2,999
Multi-family		—		—		—
Construction and land development		—		—		—
One-to-four family residential		1,421		1,314		210
Municipal, consumer, and other		8,523		8,498		1,875
Total	$	28,172	$	28,021	$	5,598

With no related allowance:
Commercial and industrial	$	14,452	$	14,441	$	—
Agricultural and farmland		12		12		—
Commercial real estate - owner occupied		9,534		9,319		—
Commercial real estate - non-owner occupied		14,755		14,682		—
Multi-family		—		—		—
Construction and land development		2,112		2,018		—
One-to-four family residential		7,129		5,583		—
Municipal, consumer, and other		4,603		4,543		—
Total	$	52,597	$	50,598	$	—

Total loans individually evaluated for impairment:
Commercial and industrial	$	14,755	$	14,744	$	187
Agricultural and farmland		12		12		—
Commercial real estate - owner occupied		12,547		12,332		327
Commercial real estate - non-owner occupied		29,667		29,575		2,999
Multi-family		—		—		—
Construction and land development		2,112		2,018		—
One-to-four family residential		8,550		6,897		210
Municipal, consumer, and other		13,126		13,041		1,875
Total	$	80,769	$	78,619	$	5,598


	Unpaid
	Principal		Recorded		Related
December 31, 2020	Balance		Investment		Allowance

With an allowance recorded:	(dollars in thousands)
Commercial and industrial	$	2,737	$	2,725	$	1,193
Agricultural and farmland		169		168		22
Commercial real estate - owner occupied		3,072		3,040		429
Commercial real estate - non-owner occupied		20,726		20,394		4,255
Multi-family		—		—		—
Construction and land development		2,081		2,055		222
One-to-four family residential		2,963		2,739		560
Municipal, consumer, and other		12,207		12,181		3,301
Total	$	43,955	$	43,302	$	9,982

With no related allowance:
Commercial and industrial	$	3,322	$	2,587	$	—
Agricultural and farmland		4,625		4,625		—
Commercial real estate - owner occupied		10,164		10,092		—
Commercial real estate - non-owner occupied		5,727		5,599		—
Multi-family		876		876		—
Construction and land development		1,762		1,754		—
One-to-four family residential		9,325		7,604		—
Municipal, consumer, and other		1,431		1,365		—
Total	$	37,232	$	34,502	$	—

Total loans individually evaluated for impairment:
Commercial and industrial	$	6,059	$	5,312	$	1,193
Agricultural and farmland		4,794		4,793		22
Commercial real estate - owner occupied		13,236		13,132		429
Commercial real estate - non-owner occupied		26,453		25,993		4,255
Multi-family		876		876		—
Construction and land development		3,843		3,809		222
One-to-four family residential		12,288		10,343		560
Municipal, consumer, and other		13,638		13,546		3,301
Total	$	81,187	$	77,804	$	9,982

The following table presents the average recorded investment and interest income recognized for loans individually evaluated for impairment by category of loans during the years ended December 31:


	Year Ended December 31,
	2021				2020				2019
	Average		Interest		Average		Interest		Average		Interest
	Recorded		Income		Recorded		Income		Recorded		Income
	Investment		Recognized		Investment		Recognized		Investment		Recognized

With an allowance recorded:	(dollars in thousands)
Commercial and industrial	$	1,593	$	89	$	3,031	$	169	$	5,275	$	152
Agricultural and farmland		83		4		273		9		464		12
Commercial real estate - owner occupied		3,052		177		1,622		98		874		43
Commercial real estate - non-owner occupied		16,494		791		6,345		220		101		7
Multi-family		—		—		—		—		—		—
Construction and land development		554		27		2,441		116		3,988		171
One-to-four family residential		1,988		77		3,120		110		3,414		79
Municipal, consumer, and other		8,681		158		10,617		286		9,284		396
Total	$	32,445	$	1,323	$	27,449	$	1,008	$	23,400	$	860

With no related allowance:
Commercial and industrial	$	7,125	$	330	$	4,004	$	251	$	6,744	$	206
Agricultural and farmland		290		17		11,061		561		14,826		824
Commercial real estate - owner occupied		7,771		344		11,056		528		10,190		483
Commercial real estate - non-owner occupied		10,339		432		14,412		458		3,465		131
Multi-family		434		10		447		10		1,344		9
Construction and land development		2,107		28		892		23		107		4
One-to-four family residential		6,248		192		8,022		316		8,360		240
Municipal, consumer, and other		4,666		86		3,089		115		4,874		104
Total	$	38,980	$	1,439	$	52,983	$	2,262	$	49,910	$	2,001

Total loans individually evaluated for impairment:
Commercial and industrial	$	8,718	$	419	$	7,035	$	420	$	12,019	$	358
Agricultural and farmland		373		21		11,334		570		15,290		836
Commercial real estate - owner occupied		10,823		521		12,678		626		11,064		526
Commercial real estate - non-owner occupied		26,833		1,223		20,757		678		3,566		138
Multi-family		434		10		447		10		1,344		9
Construction and land development		2,661		55		3,333		139		4,095		175
One-to-four family residential		8,236		269		11,142		426		11,774		319
Municipal, consumer, and other		13,347		244		13,706		401		14,158		500
Total	$	71,425	$	2,762	$	80,432	$	3,270	$	73,310	$	2,861

Schedule of recorded investment on past due basis


	Accruing Interest
			30 - 89 Days		90+ Days				Total
December 31, 2021	Current		Past Due		Past Due		Nonaccrual		Loans

	(dollars in thousands)
Commercial and industrial	$	286,563	$	9	$	—	$	374	$	286,946
Agricultural and farmland		247,772		24		—		—		247,796
Commercial real estate - owner occupied		234,441		103		—		—		234,544
Commercial real estate - non-owner occupied		683,029		823		—		171		684,023
Multi-family		263,911		—		—		—		263,911
Construction and land development		297,465		64		—		519		298,048
One-to-four family residential		325,780		383		32		1,642		327,837
Municipal, consumer, and other		156,297		214		16		57		156,584
Total	$	2,495,258	$	1,620	$	48	$	2,763	$	2,499,689


	Accruing Interest
			30 - 89 Days		90+ Days				Total
December 31, 2020	Current		Past Due		Past Due		Nonaccrual		Loans

	(dollars in thousands)
Commercial and industrial	$	392,490	$	—	$	—	$	822	$	393,312
Agricultural and farmland		222,723		—		—		—		222,723
Commercial real estate - owner occupied		221,308		112		—		940		222,360
Commercial real estate - non-owner occupied		516,387		—		—		4,008		520,395
Multi-family		236,391		—		—		—		236,391
Construction and land development		225,508		—		—		144		225,652
One-to-four family residential		301,282		984		595		3,914		306,775
Municipal, consumer, and other		119,055		211		21		111		119,398
Total	$	2,235,144	$	1,307	$	616	$	9,939	$	2,247,006

Schedule of loans by category risk ratings


December 31, 2021	Pass		Pass-Watch		Substandard		Doubtful		Total

	(dollars in thousands)
Commercial and industrial	$	267,088	$	5,114	$	14,744	$	—	$	286,946
Agricultural and farmland		221,898		25,213		685		—		247,796
Commercial real estate - owner occupied		198,862		24,098		11,584		—		234,544
Commercial real estate - non-owner occupied		619,212		32,372		32,439		—		684,023
Multi-family		241,362		22,549		—		—		263,911
Construction and land development		268,556		27,474		2,018		—		298,048
One-to-four family residential		308,951		11,221		7,665		—		327,837
Municipal, consumer, and other		143,299		244		13,041		—		156,584
Total	$	2,269,228	$	148,285	$	82,176	$	—	$	2,499,689


December 31, 2020	Pass		Pass-Watch		Substandard		Doubtful		Total

	(dollars in thousands)
Commercial and industrial	$	368,843	$	18,258	$	6,211	$	—	$	393,312
Agricultural and farmland		191,662		25,540		5,521		—		222,723
Commercial real estate - owner occupied		176,823		31,990		13,547		—		222,360
Commercial real estate - non-owner occupied		432,752		58,699		28,944		—		520,395
Multi-family		204,449		31,066		876		—		236,391
Construction and land development		193,646		28,193		3,813		—		225,652
One-to-four family residential		280,198		14,526		12,051		—		306,775
Municipal, consumer, and other		105,539		312		13,547		—		119,398
Total	$	1,953,912	$	208,584	$	84,510	$	—	$	2,247,006

Schedule of financial effect of troubled debt restructurings


						Charge-offs
		Recorded Investment				and Specific
Year Ended December 31, 2020	Number	Pre-Modification		Post-Modification		Reserves

	(dollars in thousands)
Commercial real estate - owner occupied	1		853		853		—
Total	1	$	853	$	853	$	—

						Charge-offs
		Recorded Investment				and Specific
Year Ended December 31, 2019	Number	Pre-Modification		Post-Modification		Reserves

	(dollars in thousands)
Commercial and industrial	3	$	516	$	516	$	—
Agricultural and farmland	2		392		392		—
Commercial real estate - owner occupied	1		170		170		—
One-to-four family residential	1		21		21		—
Total	7	$	1,099	$	1,099	$	—

Schedule of changes in the accretable yield for loans acquired with deteriorated credit quality


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Beginning balance	$	1,397	$	1,662	$	2,101
Reclassification from non-accretable difference		508		288		822
Disposals		(1,089)		—		—
Accretion income		(403)		(553)		(1,261)
Ending balance	$	413	$	1,397	$	1,662

STOCK-BASED COMPENSATION PLANS - Summary (Details) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Restricted Stock Units
Stock-based compensation plans
Outstanding (in units)	71,000
Granted (in units)	59,994	73,700
Exercised (in units)	(20,225)
Forfeited (in units)	(1,525)	(2,700)
Outstanding (in units)	109,244	71,000
Weighted Average Grant Date Assigned Value
Outstanding (in dollars per unit)	$ 18.98
Granted (in dollars per unit)	15.81	$ 18.98
Exercised (in dollars per unit)	18.86
Forfeited (in dollars per unit)	18.11	19.03
Outstanding (in dollars per unit)	$ 17.27	$ 18.98
Performance Shares
Stock-based compensation plans
Granted (in units)	38,344
Outstanding (in units)	38,344
Weighted Average Grant Date Assigned Value
Granted (in dollars per unit)	$ 15.72
Outstanding (in dollars per unit)	$ 15.72
Stock Appreciation Rights
Stock-based compensation plans
Outstanding (in units)	105,570	110,160	91,800
Granted (in units)			110,160
Exercised (in units)	(6,120)		(91,800)
Expired (in units)	(1,530)
Forfeited (in units)		(4,590)
Outstanding (in units)	97,920	105,570	110,160
Exercisable (in shares)	85,680
Weighted Average Grant Date Assigned Value
Granted (in dollars per unit)			$ 16.32
Expired (in dollars per unit)	$ 16.32
Forfeited (in dollars per unit)		$ 16.32
Outstanding (in dollars per unit)	16.32
Outstanding (in dollars per unit)	16.32	16.32	5.73
Exercised (in dollars per unit)	16.32		5.73
Outstanding (in dollars per unit)	$ 16.32	$ 16.32	$ 16.32
Weighted average remaining contractual term	7 years 2 months 12 days

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Categories of loans (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	$ 2,499,689	$ 2,247,006
Allowance for loan losses	(23,936)	(31,838)	$ (22,299)	$ (20,509)
Loans, net of allowance for loan losses	2,475,753	2,215,168
Paycheck Protection Program (PPP) Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	29,488	163,496
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	286,946	393,312
Allowance for loan losses	(2,440)	(3,929)	(4,441)	(3,748)
Commercial and industrial \| Paycheck Protection Program (PPP) Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	28,404	153,860
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	247,796	222,723
Allowance for loan losses	(845)	(793)	(2,766)	(2,650)
Agricultural and farmland \| Paycheck Protection Program (PPP) Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	913	3,049
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	234,544	222,360
Allowance for loan losses	(1,840)	(3,141)	(1,779)	(2,506)
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	684,023	520,395
Allowance for loan losses	(8,145)	(11,251)	(3,663)	(2,644)
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	263,911	236,391
Allowance for loan losses	(1,263)	(1,957)	(1,024)	(912)
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	298,048	225,652
Allowance for loan losses	(4,914)	(4,232)	(2,977)	(4,176)
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	327,837	306,775
Allowance for loan losses	(1,311)	(1,801)	(2,540)	(2,782)
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	156,584	119,398
Allowance for loan losses	(3,178)	(4,734)	$ (3,109)	$ (1,091)
Municipal, consumer, and other \| Paycheck Protection Program (PPP) Loans
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Loans, before allowance for loan losses	$ 171	$ 6,587

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Financial Effect of Troubled Debt Restructurings (Details)	12 Months Ended
	Dec. 31, 2020 USD ($) loan	Dec. 31, 2019 USD ($) loan	Dec. 31, 2021 USD ($)
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans \| loan	1	7
Recorded Investment, Pre-Modification	$ 853,000	$ 1,099,000
Recorded Investment, Post-Modification	853,000	$ 1,099,000
Loans with payment modifications due to COVID-19	27,986,000		$ 204,000
Troubled debt restructurings	$ 8,950,000		$ 3,512,000
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans \| loan	1	1
Recorded Investment, Pre-Modification	$ 853,000	$ 170,000
Recorded Investment, Post-Modification	$ 853,000	$ 170,000
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans \| loan		2
Recorded Investment, Pre-Modification		$ 392,000
Recorded Investment, Post-Modification		$ 392,000
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans \| loan		3
Recorded Investment, Pre-Modification		$ 516,000
Recorded Investment, Post-Modification		$ 516,000
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Number of Loans \| loan		1
Recorded Investment, Pre-Modification		$ 21,000
Recorded Investment, Post-Modification		$ 21,000

INCOME TAXES - Federal income tax (Details) - USD ($)		12 Months Ended
INCOME TAXES - Federal income tax (Details) - USD ($)	Oct. 11, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Federal income tax expense:
Federal income tax, at statutory rate		$ 16,078,000	$ 10,410,000	$ 3,933,000
Federal income tax, at statutory rate (as a percent)		21.00%	21.00%	5.50%
Increase (decrease) resulting from:
Federally tax exempt interest income		$ (1,426,000)	$ (1,470,000)	$ (372,000)
Federally tax exempt interest income (as a percent)		(1.90%)	(3.00%)	(0.50%)
State taxes, net of federal benefit		$ 5,430,000	$ 3,631,000	$ 2,212,000
State taxes, net of federal benefit (as a percent)		7.10%	7.40%	3.10%
Change in tax status				$ (534,000)
Change in tax status (as a percent)				(0.80%)
Other		$ 209,000	$ 157,000	$ 17,000
Other (as a percent)		0.30%	0.30%
Income tax expense	$ (534,000)	$ 20,291,000	$ 12,728,000	$ 5,256,000
Total (as a percent)		26.50%	25.70%	7.30%

GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2021

GOODWILL AND OTHER INTANGIBLE ASSETS

Schedule of goodwill and finite lived intangible assets


	Year Ended December 31,
	2021				2020				2019
			Core Deposit				Core Deposit				Core Deposit
	Goodwill		Intangible		Goodwill		Intangible		Goodwill		Intangible

	(dollars in thousands)
Beginning balance	$	23,620	$	2,798	$	23,620	$	4,030	$	23,620	$	5,453
Additions		5,702		199		—		—		—		—
Amortization		—		(1,054)		—		(1,232)		—		(1,423)
Ending balance	$	29,322	$	1,943	$	23,620	$	2,798	$	23,620	$	4,030
Accumulated amortization	$	—	$	19,974	$	—	$	18,920	$	—	$	17,688

Schedule of future amortization of core deposit intangible assets


Year ended December 31,
2022	$	873
2023		353
2024		337
2025		275
2026		20
Thereafter		85
Total	$	1,943

LOANS AND THE ALLOWANCE FOR LOAN LOSSES - Recorded investments in loans and the allowance for loan losses (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	$ 2,392,000	$ 2,133,446
Individually evaluated for impairment, Loans	78,619	77,804
Total	2,499,689	2,247,006
Collectively evaluated for impairment, Allowance for loan losses	18,271	21,152
Individually evaluated for impairment, Allowance for loan losses	5,598	9,982
Total investments in loans	23,936	31,838	$ 22,299	$ 20,509
Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	29,070	35,756
Individually evaluated for impairment, Allowance for loan losses	67	704
Commercial and industrial
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	272,064	387,072
Individually evaluated for impairment, Loans	14,744	5,312
Total	286,946	393,312
Collectively evaluated for impairment, Allowance for loan losses	2,253	2,736
Individually evaluated for impairment, Allowance for loan losses	187	1,193
Total investments in loans	2,440	3,929	4,441	3,748
Commercial and industrial \| Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	138	928
Agricultural and farmland
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	247,021	217,077
Individually evaluated for impairment, Loans	12	4,793
Total	247,796	222,723
Collectively evaluated for impairment, Allowance for loan losses	845	771
Individually evaluated for impairment, Allowance for loan losses		22
Total investments in loans	845	793	2,766	2,650
Agricultural and farmland \| Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	763	853
Commercial real estate - owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	216,794	201,417
Individually evaluated for impairment, Loans	12,332	13,132
Total	234,544	222,360
Collectively evaluated for impairment, Allowance for loan losses	1,480	2,306
Individually evaluated for impairment, Allowance for loan losses	327	429
Total investments in loans	1,840	3,141	1,779	2,506
Commercial real estate - owner occupied \| Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	5,418	7,811
Individually evaluated for impairment, Allowance for loan losses	33	406
Commercial real estate - non-owner occupied
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	641,555	480,165
Individually evaluated for impairment, Loans	29,575	25,993
Total	684,023	520,395
Collectively evaluated for impairment, Allowance for loan losses	5,138	6,736
Individually evaluated for impairment, Allowance for loan losses	2,999	4,255
Total investments in loans	8,145	11,251	3,663	2,644
Commercial real estate - non-owner occupied \| Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	12,893	14,237
Individually evaluated for impairment, Allowance for loan losses	8	260
Multi-family
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	262,701	234,252
Individually evaluated for impairment, Loans		876
Total	263,911	236,391
Collectively evaluated for impairment, Allowance for loan losses	1,259	1,950
Total investments in loans	1,263	1,957	1,024	912
Multi-family \| Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	1,210	1,263
Individually evaluated for impairment, Allowance for loan losses	4	7
Construction and land development
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	293,548	219,822
Individually evaluated for impairment, Loans	2,018	3,809
Total	298,048	225,652
Collectively evaluated for impairment, Allowance for loan losses	4,895	3,984
Individually evaluated for impairment, Allowance for loan losses		222
Total investments in loans	4,914	4,232	2,977	4,176
Construction and land development \| Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	2,482	2,021
Individually evaluated for impairment, Allowance for loan losses	19	26
One-to-four family residential
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	314,807	287,845
Individually evaluated for impairment, Loans	6,897	10,343
Total	327,837	306,775
Collectively evaluated for impairment, Allowance for loan losses	1,099	1,237
Individually evaluated for impairment, Allowance for loan losses	210	560
Total investments in loans	1,311	1,801	2,540	2,782
One-to-four family residential \| Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	6,133	8,587
Individually evaluated for impairment, Allowance for loan losses	2	4
Municipal, consumer, and other
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Collectively evaluated for impairment, Loans	143,510	105,796
Individually evaluated for impairment, Loans	13,041	13,546
Total	156,584	119,398
Collectively evaluated for impairment, Allowance for loan losses	1,302	1,432
Individually evaluated for impairment, Allowance for loan losses	1,875	3,301
Total investments in loans	3,178	4,734	$ 3,109	$ 1,091
Municipal, consumer, and other \| Loans acquired with deteriorated credit quality
LOANS AND THE ALLOWANCE FOR LOAN LOSSES
Total	33	56
Individually evaluated for impairment, Allowance for loan losses	$ 1	$ 1

COMMITMENTS AND CONTINGENCIES - Lease Commitments (Details) $ in Thousands	12 Months Ended
	Dec. 31, 2021 USD ($)
COMMITMENTS AND CONTINGENCIES
Leases renewal options	true
Lease Commitments
2022	$ 167
2023	131
2024	81
2025	33
Total	$ 412
Minimum
COMMITMENTS AND CONTINGENCIES
Lease renewal term	3 years
Maximum
COMMITMENTS AND CONTINGENCIES
Lease renewal term	5 years

DERIVATIVE FINANCIAL INSTRUMENTS - Interest rate contracts designated as cash flow hedges (Details) - Cash flow hedge - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income	$ (412)	$ (238)	$ 87
Taxable loan interest income
DERIVATIVE FINANCIAL INSTRUMENTS
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income		64	116
Subordinated debentures interest expense
DERIVATIVE FINANCIAL INSTRUMENTS
Amounts of gross gain (loss) reclassified from accumulated other comprehensive income	$ (412)	$ (302)	$ (29)

DERIVATIVE FINANCIAL INSTRUMENTS (Tables)

12 Months Ended

Dec. 31, 2021

DERIVATIVE FINANCIAL INSTRUMENTS

Summary of fair values of Company's derivative instrument assets and liabilities related to interest rate swap contracts


	December 31, 2021				December 31, 2020
	Notional		Fair		Notional		Fair
	Amount		Value		Amount		Value

	(dollars in thousands)
Fair value recorded in other liabilities	$	17,000	$	(680)	$	17,000	$	(1,458)

Schedule of the effect of interest rate contracts designated as cash flow hedges on the consolidated statements of income


Location of gross gain (loss) reclassified	Amounts of gross gain (loss)
from accumulated other	reclassified from accumulated
comprehensive income to income	other comprehensive income

	Year Ended December 31,
	2021		2020		2019

Designated as cash flow hedges:	(dollars in thousands)
Taxable loan interest income	$	—	$	64	$	116
Junior subordinated debentures interest expense		(412)		(302)		(29)
Total	$	(412)	$	(238)	$	87

Summary of interest rate swap agreements not designated as hedging instruments


	December 31, 2021				December 31, 2020
	Notional		Fair		Notional		Fair
	Amount		Value		Amount		Value

	(dollars in thousands)
Fair value recorded in other assets:
Interest rate swaps with a commercial borrower counterparty	$	112,041	$	8,622	$	122,313	$	15,360
Interest rate swaps with a financial institution counterparty		3,880		75		—		—
Total fair value recorded in other assets	$	115,921	$	8,697	$	122,313	$	15,360

Fair value recorded in other liabilities:
Interest rate swaps with a commercial borrower counterparty	$	3,880	$	(75)	$	—	$	—
Interest rate swaps with a financial institution counterparty		112,041		(8,622)		122,313		(15,360)
Total fair value recorded in other liabilities	$	115,921	$	(8,697)	$	122,313	$	(15,360)

Summary of the effect of interest rate contracts not designated as hedging instruments recognized in other noninterest income



	Year Ended December 31,
	2021		2020		2019

Not designated as hedging instruments:	(dollars in thousands)
Gross gains	$	13,773	$	24,758	$	13,537
Gross losses		(13,773)		(24,758)		(13,500)
Net gains (losses)	$	—	$	—	$	37

BORROWINGS

12 Months Ended

Dec. 31, 2021

BORROWINGS

BORROWINGS

NOTE 12 – BORROWINGS

There were no Federal Home Loan Bank of Chicago (FHLB) borrowings outstanding as of December 31, 2021 and 2020. Available borrowings from the FHLB are secured by FHLB stock held by the Company and pledged security in the form of qualifying loans. The total amount of loans pledged as of December 31, 2021 and 2020 was $566,996,000 and $493,690,000, respectively. As of December 31, 2021 and 2020, loans pledged also served as collateral for credit exposure of approximately $355,000 associated with the Bank’s participation in the FHLB’s Mortgage Partnership Finance Program.

The Bank also had available borrowings through the discount window of the Federal Reserve Bank of Chicago (FRB). Available borrowings are based on the collateral pledged. As of December 31, 2021, there was no collateral pledged. As of December 31, 2020, the carrying value of securities pledged amounted to $499,000. There was no outstanding balance from the FRB discount window as of December 31, 2021 and 2020.

- Definition

The entire disclosure for information about short-term and long-term debt arrangements, which includes amounts of borrowings under each line of credit, note payable, commercial paper issue, bonds indenture, debenture issue, own-share lending arrangements and any other contractual agreement to repay funds, and about the underlying arrangements, rationale for a classification as long-term, including repayment terms, interest rates, collateral provided, restrictions on use of assets and activities, whether or not in compliance with debt covenants, and other matters important to users of the financial statements, such as the effects of refinancing and noncompliance with debt covenants.

+ References

Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-URI http://asc.fasb.org/topic&trid=2208564

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (h)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (c)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(c))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (g)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1C
-Subparagraph (a)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495334-112611

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1E
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495348-112611

Reference 11: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1I
-Subparagraph (b)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495371-112611

Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 20
-Section 50
-Paragraph 1B
-Subparagraph (i)
-URI http://asc.fasb.org/extlink&oid=123466505&loc=SL123495323-112611

+ Details

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS (Tables)

12 Months Ended

Dec. 31, 2021

CONDENSED PARENT COMPANY ONLY FINANCIAL STATEMENTS

Schedule of condensed parent company only balance sheets


	December 31, 2021		December 31, 2020

ASSETS	(dollars in thousands)
Cash and cash equivalents	$	25,752	$	44,149
Investment in subsidiaries:
Bank		461,339		397,201
Non-bank		1,165		1,165
Other assets		1,283		1,140
Total assets	$	489,539	$	443,655

LIABILITIES
Subordinated notes	$	39,316	$	39,238
Junior subordinated debentures		37,714		37,648
Other liabilities		628		2,852
Total liabilities		77,658		79,738

STOCKHOLDERS' EQUITY		411,881		363,917
Total liabilities and stockholders' equity	$	489,539	$	443,655

Schedule of condensed parent company only statements of income


	Years ended December 31
	2021		2020		2019

INCOME	(dollars in thousands)
Dividends received from subsidiaries:
Bank	$	20,000	$	17,600	$	109,969
Non-bank		—		36		385
Undistributed earnings from subsidiaries:
Bank		41,227		22,462		(41,202)
Non-bank		—		(36)		(151)
Other income		454		215		52
Total income		61,681		40,277		69,053

EXPENSES
Interest expense		3,305		2,189		1,922
Other expense		3,741		2,519		1,025
Total expenses		7,046		4,708		2,947
INCOME BEFORE INCOME TAX BENEFIT		54,635		35,569		66,106
INCOME TAX BENEFIT		(1,636)		(1,276)		(759)
NET INCOME	$	56,271	$	36,845	$	66,865

Schedule of condensed parent company only statements of cash flows


	Year ended December 31
	2021		2020		2019

CASH FLOWS FROM OPERATING ACTIVITIES	(dollars in thousands)
Net income	$	56,271	$	36,845	$	66,865
Adjustments to reconcile net income to net cash provided by operating activities:
Undistributed earnings of consolidated subsidiaries		(41,227)		(22,426)		41,353
Stock-based compensation		764		351		—
Amortization of discount and issuance costs on subordinated notes and debentures		144		92		66
Net gain on sale of foreclosed assets		(74)		—		—
Changes in other assets and liabilities, net		(2,231)		1,633		(1,912)
Net cash provided by operating activities		13,647		16,495		106,372


CASH FLOWS FROM INVESTING ACTIVITIES
Capital contribution to bank subsidiary		—		—		(17,000)
Capital contribution to non-bank subsidiary		—		—		(100)
Purchase of securities		(48)		(17)		—
Proceeds from sale of foreclosed assets		74		—		—
Net cash paid for acquisition of NXT Bancorporation, Inc.		(10,411)		—		—
Net cash used in investing activities		(10,385)		(17)		(17,100)


CASH FLOWS FROM FINANCING ACTIVITIES
Issuance of subordinated notes, net of issuance costs		—		39,211		—
Issuance of common stock		—		—		138,493
Repurchase of common stock		(4,906)		—		—
Cash dividends and dividend equivalents paid		(16,753)		(16,518)		(224,956)
Net cash (used in) provided by financing activities		(21,659)		22,693		(86,463)

NET CHANGE IN CASH AND EQUIVALENTS		(18,397)		39,171		2,809
CASH AND CASH EQUIVALENTS
Beginning of year		44,149		4,978		2,169
End of year	$	25,752	$	44,149	$	4,978

SUBORDINATED NOTES

12 Months Ended

Dec. 31, 2021

SUBORDINATED NOTES.

SUBORDINATED NOTES

NOTE 13 – SUBORDINATED NOTES

On September 3, 2020, the Company issued $40,000,000 of fixed-to-floating rate subordinated notes that mature on September 15, 2030. The subordinated notes, which are unsecured obligations of the Company, bear a fixed interest rate of 4.50% for the first five years after issuance and thereafter bear interest at a floating rate equal to three-month SOFR, as determined on the Floating Interest Determination Date, plus 4.37%. Interest is payable semi-annually during the five year fixed rate period and quarterly during the subsequent five year floating rate period. The subordinated notes have an optional redemption in whole or in part on any interest payment date on or after September 15, 2025. If the subordinated notes are redeemed before they mature, the redemption price will be the principal amount plus any accrued but unpaid interest. The transaction resulted in debt issuance costs of $789,000 which will be amortized over 10 years. As of December 31, 2021, 100% of the subordinated notes qualified as Tier 2 capital.

The face value and carrying value of the subordinated notes are summarized below:


	December 31, 2021		December 31, 2020

	(dollars in thousands)
Subordinated notes, at face value	$	40,000	$	40,000
Unamortized issuance costs		(684)		(762)
Subordinated notes, at carrying value	$	39,316	$	39,238

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE (Tables)

12 Months Ended

Dec. 31, 2021

SECURITIES SOLD UNDER AGREEMENTS TO REPURCHASE

Schedule of Information pertaining to securities sold under agreements to repurchase


	December 31, 2021			December 31, 2020

	(dollars in thousands)
Balance at end of year	$	61,256		$	45,736
Weighted average rate as of end of year		0.07	%		0.06	%
Fair value of securities underlying the agreements	$	64,164		$	62,472
Carrying value of securities underlying the agreements	$	64,262		$	62,415

ACCUMULATED OTHER COMPREHENSIVE INCOME (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	$ 363,917	$ 332,918	$ 340,396
Other comprehensive (loss) income, before tax	(23,333)	14,444	11,409
Income tax expense (benefit)	(6,651)	4,123	(711)
Other comprehensive (loss) income, after tax	(16,682)	10,321	12,120
Balance	411,881	363,917	332,918
Accumulated Other Comprehensive Income (Loss)
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	18,153	7,832	(4,288)
Other comprehensive (loss) income before reclassifications	(24,432)	14,188	11,760
Reclassifications	1,099	256	(351)
Other comprehensive (loss) income, before tax	(23,333)	14,444	11,409
Income tax expense (benefit)	(6,651)	4,123	(711)
Other comprehensive (loss) income, after tax	(16,682)	10,321	12,120
Balance	1,471	18,153	7,832
Unrealized gains (losses) on available-for-sale securities
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	19,578	8,659	(4,561)
Transfer from available-for-sale to held-to-maturity	3,887
Other comprehensive (loss) income before reclassifications	(24,798)	15,272	12,458
Other comprehensive (loss) income, before tax	(24,798)	15,272	12,458
Income tax expense (benefit)	(7,069)	4,353	(762)
Other comprehensive (loss) income, after tax	(17,729)	10,919	13,220
Balance	5,736	19,578	8,659
Unrealized gains (losses) on held-to-maturity securities
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	(118)	(131)	122
Transfer from available-for-sale to held-to-maturity	(3,887)
Reclassifications	687	18	(264)
Other comprehensive (loss) income, before tax	687	18	(264)
Income tax expense (benefit)	196	5	(11)
Other comprehensive (loss) income, after tax	491	13	(253)
Balance	(3,514)	(118)	(131)
Derivatives
ACCUMULATED OTHER COMPREHENSIVE INCOME
Balance	(1,307)	(696)	151
Other comprehensive (loss) income before reclassifications	366	(1,084)	(698)
Reclassifications	412	238	(87)
Other comprehensive (loss) income, before tax	778	(846)	(785)
Income tax expense (benefit)	222	(235)	62
Other comprehensive (loss) income, after tax	556	(611)	(847)
Balance	$ (751)	$ (1,307)	$ (696)

LOAN SERVICING

12 Months Ended

Dec. 31, 2021

LOAN SERVICING

LOAN SERVICING

NOTE 6 – LOAN SERVICING

Mortgage loans serviced for others, not included in the accompanying consolidated balance sheets, amounted to $1,040,809,000 and $1,090,219,000 as of December 31, 2021 and 2020, respectively. Activity in mortgage servicing rights is as follows for years ended December 31:


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Beginning balance	$	5,934	$	8,518	$	10,918
Acquired		370		—		—
Capitalized servicing rights		1,200		1,981		1,018
Fair value adjustment:
Attributable to payments and principal reductions		(1,788)		(2,364)		(1,614)
Attributable to changes in valuation inputs and assumptions		2,278		(2,201)		(1,804)
Total fair value adjustment		490		(4,565)		(3,418)
Ending balance	$	7,994	$	5,934	$	8,518

- Definition

The entire disclosure for a transferor's continuing involvement in financial assets that it has transferred in a securitization or asset-backed financing arrangement, the nature of any restrictions on assets reported by an entity in its statement of financial position that relate to a transferred financial asset (including the carrying amounts of such assets), how servicing assets and servicing liabilities are reported, and (for securitization or asset-backed financing arrangements accounted for as sales) when a transferor has continuing involvement with the transferred financial assets and transfers of financial assets accounted for as secured borrowings, how the transfer of financial assets affects an entity's financial position, financial performance, and cash flows.

+ References

Reference 1: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 30
-Section 50
-Paragraph 1A
-Subparagraph (c)(3)
-URI http://asc.fasb.org/extlink&oid=109249958&loc=SL6224234-111729

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 860
-SubTopic 30
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-Paragraph 1A
-Subparagraph (b)(2)
-URI http://asc.fasb.org/extlink&oid=109249958&loc=SL6224234-111729

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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-Section 50
-Paragraph 3
-Subparagraph (b)(2)(ii)
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Reference 4: http://www.xbrl.org/2003/role/disclosureRef
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Reference 5: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=125521744&loc=d3e122596-111746

Reference 6: http://www.xbrl.org/2003/role/disclosureRef
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Reference 7: http://www.xbrl.org/2003/role/disclosureRef
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Reference 8: http://www.xbrl.org/2003/role/disclosureRef
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Reference 9: http://www.xbrl.org/2003/role/disclosureRef
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-Name Accounting Standards Codification
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-URI http://asc.fasb.org/extlink&oid=125521744&loc=d3e122739-111746

Reference 10: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 11: http://www.xbrl.org/2003/role/disclosureRef
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Reference 12: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 13: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
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Reference 14: http://www.xbrl.org/2003/role/disclosureRef
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Reference 16: http://www.xbrl.org/2003/role/disclosureRef
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Reference 17: http://www.xbrl.org/2003/role/disclosureRef
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Reference 18: http://www.xbrl.org/2003/role/disclosureRef
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Reference 19: http://www.xbrl.org/2003/role/disclosureRef
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Reference 20: http://www.xbrl.org/2003/role/disclosureRef
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-URI http://asc.fasb.org/extlink&oid=125521744&loc=d3e122596-111746

+ Details

INCOME TAXES - Allocation (Details) - USD ($)		12 Months Ended
INCOME TAXES - Allocation (Details) - USD ($)	Oct. 11, 2019	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Current
Federal		$ 11,330,000	$ 8,358,000	$ 4,849,000
State		6,053,000	4,709,000	3,102,000
Total current		17,383,000	13,067,000	7,951,000
Deferred
Federal		1,945,000	(226,000)	(1,437,000)
State		963,000	(113,000)	(724,000)
Change in tax status				(534,000)
Total deferred		2,908,000	(339,000)	(2,695,000)
Income tax expense	$ (534,000)	$ 20,291,000	$ 12,728,000	$ 5,256,000

BANK PREMISES AND EQUIPMENT (Tables)

12 Months Ended

Dec. 31, 2021

BANK PREMISES AND EQUIPMENT

Summary of bank premises and depreciation expense


	December 31, 2021		December 31, 2020

	(dollars in thousands)
Land, buildings, and improvements	$	77,180	$	75,790
Furniture, fixtures, and equipment		24,199		23,035
Total bank premises and equipment		101,379		98,825
Less accumulated depreciation		48,896		45,921
Total bank premises and equipment, net	$	52,483	$	52,904


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Buildings and improvements	$	1,694	$	1,761	$	1,813
Furniture, fixtures, and equipment		1,380		1,180		896
Total depreciation expense	$	3,074	$	2,941	$	2,709

FAIR VALUE OF FINANCIAL INSTRUMENTS - Recurring basis (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
FAIR VALUE OF FINANCIAL INSTRUMENTS
Transfer of assets from level 1 to level 2	$ 0	$ 0
Transfer of assets from level 2 to level 1	0	0
Transfer of assets in to level 3	0	0
Transfer of assets out of level 3	0	0
Transfer of liabilities from level 1 to level 2	0	0
Transfer of liabilities from level 2 to level 1	0	0
Transfer of liabilities in to level 3	0	0
Transfer of liabilities out of level 3	0	0
Debt securities available-for-sale, at fair value	942,168	922,869
Equity securities	3,443	3,292
Fair value	7,994	5,934
U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	108,976
U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	128,105	121,993
Municipal securities
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	297,077	274,261
Mortgage-backed: Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	179,466	203,252
Mortgage-backed: Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	164,061	250,766
Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	64,483	72,597
Recurring
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities	3,443	3,292
Fair value	7,994	5,934
Derivative financial assets fair value	8,697	15,360
Derivative financial liabilities fair value	9,377	16,818
Recurring \| U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	108,976
Recurring \| U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	128,105	121,993
Recurring \| Municipal securities
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	297,077	274,261
Recurring \| Mortgage-backed: Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	179,466	203,252
Recurring \| Mortgage-backed: Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	164,061	250,766
Recurring \| Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	64,483	72,597
Recurring \| Level 1
FAIR VALUE OF FINANCIAL INSTRUMENTS
Equity securities	3,443	3,292
Recurring \| Level 1 \| U.S. Treasury
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	108,976
Recurring \| Level 2
FAIR VALUE OF FINANCIAL INSTRUMENTS
Derivative financial assets fair value	8,697	15,360
Derivative financial liabilities fair value	9,377	16,818
Recurring \| Level 2 \| U.S. government agency
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	128,105	121,993
Recurring \| Level 2 \| Municipal securities
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	297,077	274,261
Recurring \| Level 2 \| Mortgage-backed: Agency residential
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	179,466	203,252
Recurring \| Level 2 \| Mortgage-backed: Agency commercial
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	164,061	250,766
Recurring \| Level 2 \| Corporate
FAIR VALUE OF FINANCIAL INSTRUMENTS
Debt securities available-for-sale, at fair value	64,483	72,597
Recurring \| Level 3
FAIR VALUE OF FINANCIAL INSTRUMENTS
Fair value	$ 7,994	$ 5,934

REGULATORY CAPITAL (Details) $ in Thousands	Dec. 31, 2021 USD ($)	Dec. 31, 2020 USD ($)
REGULATORY CAPITAL
Total Capital (to Risk Weighted Assets), Actual Amount	$ 452,162	$ 382,511
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	226,950	195,787
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	283,688	244,733
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	428,226	351,904
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	170,213	146,840
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	226,950	195,787
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount	428,226	351,904
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	127,659	110,130
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	184,397	159,077
Tier 1 Capital (to Average Assets), Actual Amount	428,226	351,904
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount	169,070	143,296
Tier 1 Capital (to Average Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Amount	$ 211,337	$ 179,120
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	15.94	15.63
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8.00	8.00
Total Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	10.00	10.00
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	15.09	14.38
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	6.00	6.00
Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	8.00	8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	15.09%	14.38%
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.50%	4.50%
Common Equity Tier 1 Capital (to Risk Weighted Assets), To Be Well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	6.50%	6.50%
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent)	10.13	9.82
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.00	4.00
Tier 1 Capital (to Average Assets), To Be well Capitalized Under Prompt Corrective Action Provisions Ratio (as a percent)	5.00	5.00
Consolidated HBT
REGULATORY CAPITAL
Total Capital (to Risk Weighted Assets), Actual Amount	$ 479,320	$ 426,283
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	227,115	195,970
Tier 1 Capital (to Risk Weighted Assets), Actual Amount	416,068	356,410
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	170,336	146,977
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Amount	379,519	319,927
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Amount	127,752	110,233
Tier 1 Capital (to Average Assets), Actual Amount	416,068	356,410
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Amount	$ 169,171	$ 143,454
Total Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	16.88	17.40
Total Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	8.00	8.00
Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	14.66	14.55
Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	6.00	6.00
Common Equity Tier 1 Capital (to Risk Weighted Assets), Actual Ratio (as a percent)	13.37%	13.06%
Common Equity Tier 1 Capital (to Risk Weighted Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.50%	4.50%
Tier 1 Capital (to Average Assets), Actual Ratio (as a percent)	9.84	9.94
Tier 1 Capital (to Average Assets), For Capital Adequacy Purposes Ratio (as a percent)	4.00	4.00

STOCK-BASED COMPENSATION PLANS

12 Months Ended

Dec. 31, 2021

STOCK-BASED COMPENSATION PLANS

STOCK-BASED COMPENSATION PLANS

NOTE 21 – STOCK-BASED COMPENSATION PLANS

The Company has adopted the HBT Financial, Inc. Omnibus Incentive Plan (the “Omnibus Incentive Plan”). The Omnibus Incentive Plan provides for grants of (i) stock options, (ii) stock appreciation rights, (iii) restricted shares, (iv) restricted stock units, (v) performance awards, (vi) other share-based awards and (vii) other cash-based awards to eligible employees, non-employee directors and consultants of the Company. The maximum number of shares of common stock available for issuance under the Omnibus Incentive Plan is 1,820,000 shares.

The following is a summary of stock-based compensation expense (benefit):


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Restricted stock units	$	579	$	351	$	—
Performance restricted stock units		185		—		—
Total awards classified as equity		764		351		—
Stock appreciation rights		226		(137)		343
Total stock-based compensation expense	$	990	$	214	$	343

Restricted Stock Units

A restricted stock unit grants a participant the right to receive one share of common stock, following the completion of the requisite service period. Restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and is recognized on a straight-line basis over the service period for the entire award. Dividend equivalents on restricted stock units, which are either accrued until vested or paid at the same time as dividends on common stock, are classified as dividends charged to retained earnings.

During the years ended December 31, 2021 and 2020, the total grant date fair value of the restricted stock units granted was $948,000 and $1,399,000, respectively, based on the grant date closing prices. The total intrinsic value of restricted stock units that vested during the year ended December 31, 2021 was $305,000.

The following is a summary of outstanding restricted stock unit activity:


		Weighted
		Average
	Restricted	Grant Date
	Stock Units	Fair Value
Balance, December 31, 2018	—	$	—
Granted	—		—
Vested	—		—
Forfeited	—		—
Balance, December 31, 2019	—	$	—
Granted	73,700		18.98
Vested	—		—
Forfeited	(2,700)		19.03
Balance, December 31, 2020	71,000	$	18.98
Granted	59,994		15.81
Vested	(20,225)		18.86
Forfeited	(1,525)		18.11
Balance, December 31, 2021	109,244	$	17.27

As of December 31, 2021, unrecognized compensation cost related to non-vested restricted stock units was $1,339,000. This cost is expected to be recognized over the weighted average remaining contractual term of 2.3 years

Performance Restricted Stock Units

A performance restricted stock unit is similar to a restricted stock unit, except that the number of shares of common stock awarded is based on a performance condition and the completion of the requisite service period. The number of shares of common stock that may be earned ranges from 0% to 150% of the number of performance restricted stock units granted. Performance restricted stock units are classified as equity. Compensation cost is based on the Company’s stock price on the grant date and an assessment of the probable outcome of the performance condition. Compensation cost is recognized on a straight-line basis over the service period of the entire award. Changes in the performance condition probability assessment result in cumulative catch-up adjustments to the compensation cost recognized. Dividend equivalents on performance restricted stock units, which are accrued until vested, are classified as dividends charged to retained earnings.

During the year ended December 31, 2021, the total grant date fair value of the performance restricted stock units granted was $603,000, based on the grant date closing prices. Performance conditions are based on either the average annual return on average tangible common equity during the performance period or average loan balances for a specified geographic region during the performance period, with downward adjustments if certain credit quality criteria are not maintained.

The following is a summary of performance restricted stock unit activity:


		Weighted
	Performance	Average
	Restricted	Grant Date
	Stock Units	Fair Value
Balance, December 31, 2018	—	$	—
Granted	—		—
Vested	—		—
Forfeited	—		—
Balance, December 31, 2019	—	$	—
Granted	—		—
Vested	—		—
Forfeited	—		—
Balance, December 31, 2020	—	$	—
Granted	38,344		15.72
Vested	—		—
Forfeited	—		—
Balance, December 31, 2021	38,344	$	15.72

As of December 31, 2021, unrecognized compensation cost related to non-vested performance restricted stock units was $579,000, based on the current assessment of the probable outcome of the performance condition. This cost is expected to be recognized over the weighted average remaining contractual term of 2.5 years.

Stock Appreciation Rights

A stock appreciation right grants a participant the right to receive an amount of cash, the value of which equals the appreciation in the Company’s stock price between the grant date and the exercise date. Stock appreciation rights units are classified as liabilities. Prior to becoming a public entity, the liability was based on the intrinsic value of the stock appreciation rights, calculated using the grant date assigned value and an independent appraisal of the Company’s stock price that was subject to approval by the Board of Directors. Since becoming a public entity on October 11, 2019, the liability was based on an option-pricing model used to estimate the fair value of the stock appreciation rights. Compensation cost for unvested stock appreciation rights is recognized on a straight line basis over the vesting period of the entire award. The unvested stock appreciation rights vest in four equal annual installments beginning on the first anniversary of the grant date.

The following is a summary of outstanding stock appreciation rights activity:


		Weighted
	Stock	Average
	Appreciation	Grant Date
	Rights	Assigned Value
Balance, December 31, 2018	91,800	$	5.73
Granted	110,160		16.32
Exercised	(91,800)		5.73
Expired	—		—
Forfeited	—		—
Balance, December 31, 2019	110,160	$	16.32
Granted	—		—
Exercised	—		—
Expired	—		—
Forfeited	(4,590)		16.32
Balance, December 31, 2020	105,570	$	16.32
Granted	—		—
Exercised	(6,120)		16.32
Expired	(1,530)		16.32
Forfeited	—		—
Balance, December 31, 2021	97,920	$	16.32

A further summary of outstanding stock appreciation rights as of December 31, 2021, is as follows:


			Weighted Average
	Stock Appreciation Rights		Remaining
Grant Date Assigned Values	Outstanding	Exercisable	Contractual Term
$ 16.32	97,920	85,680	7.2	years

As of December 31, 2021, unrecognized compensation cost related to non-vested stock appreciation rights was $56,000.

As of December 31, 2021 and 2020, the liability recorded for outstanding stock appreciation rights was $485,000 and $272,000, respectively. The Company used an option pricing model to value the stock appreciation rights, using the assumptions in the following table. Expected volatility is derived from the historical volatility of the Company’s stock price and a selected peer group of industry-related companies.


	December 31, 2021			December 31, 2020
Risk-free interest rate		1.40	%		0.80	%
Expected volatility		35.52	%		34.72	%
Expected life (in years)		7.7			8.7
Expected dividend yield		3.20	%		3.96	%

As of December 31, 2021, the liability recorded for previously exercised stock appreciation rights was $797,000, which will be paid in three remaining equal annual installments. As of December 31, 2020, the liability recorded for previously exercised units was $1,087,000.

RESTRICTED CASH AND DUE FROM BANKS (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
RESTRICTED CASH AND DUE FROM BANKS
Required reserve funds in cash or on deposit with the Federal Reserve Bank	$ 0	$ 0

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	Dec. 31, 2021
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Merger of State Bank of Lincoln into Heartland Bank	Merger of State Bank of Lincoln into Heartland Bank On October 20, 2020, Heartland Bank and State Bank of Lincoln, both wholly-owned bank subsidiaries of the Company on that date, entered into a Bank Merger Agreement providing for the merger of State Bank of Lincoln into Heartland Bank. The merger was consummated on December 31, 2020, resulting in Heartland Bank being our sole bank subsidiary, with the branch locations in Lincoln, Illinois operating as “State Bank of Lincoln, a division of Heartland Bank and Trust Company.”
Initial Public Offering	Initial Public Offering On September 13, 2019, the Company filed a Registration Statement on Form S-1 with the Securities and Exchange Commission (“SEC”). The Registration Statement was declared effective by the SEC on October 10, 2019. The Company issued and sold 9,429,794 shares of common stock at a price of $16 per share pursuant to that Registration Statement. Total proceeds received by the Company, net of offering costs, were $138,493,000. The proceeds were used to fund a $169,000,000 special dividend, or $9.43 per share, to stockholders of record prior to the IPO. The Company qualifies as an “emerging growth company” as defined by the Jumpstart Our Business Startups Act (“JOBS Act”). Under the JOBS Act, emerging growth companies may also elect to delay adoption of new or revised accounting standards until such time as those standards apply to private companies. The Company has elected to use this extended transition period for complying with new or revised accounting standards and, therefore, the Company will not be subject to the same new or revised accounting standards as other public companies.
Sale of First Community Title Services, Inc.	Sale of First Community Title Services, Inc. On February 15, 2019, the Company consummated an agreement to sell substantially all assets and liabilities of First Community Title Services, Inc. to Illinois Real Estate Title Center, LLC, an Illinois limited liability company, for a combination of cash and an equity interest in Illinois Real Estate Title Center, LLC representing total consideration of approximately $498,000.
Basis of Consolidation	Basis of Consolidation The consolidated financial statements of HBT Financial, Inc. include the accounts of the Company and its wholly owned bank subsidiary, Heartland Bank. The Company also has five wholly owned subsidiaries, Heartland Bancorp, Inc. Capital Trust B, Heartland Bancorp, Inc. Capital Trust C, Heartland Bancorp, Inc. Capital Trust D, FFBI Capital Trust I, and National Bancorp Statutory Trust I, which, in accordance with GAAP, are not consolidated as more fully described in Note 14. Significant intercompany transactions and accounts have been eliminated in consolidation.
Unaudited Pro Forma Income Statement Information	Unaudited Pro Forma Income Statement Information Effective October 11, 2019, the Company revoked its S Corporation status and became a taxable entity (C Corporation). As such, any periods prior to October 11, 2019 will only reflect state replacement taxes. The unaudited pro forma C Corp equivalent income tax expense information gives effect to the income tax expense had the Company been a C Corporation during the year ended December 31, 2019. The unaudited pro forma C Corp equivalent net income information, therefore, includes an adjustment for income tax expense as if the Company had been a C Corporation during the year ended December 31, 2019. The unaudited pro forma basic and diluted earnings per share information is computed using the unaudited pro forma C Corp equivalent net income and weighted average shares of common stock outstanding. There were no dilutive instruments outstanding during the year ended December 31, 2019; therefore, the unaudited pro forma C Corp equivalent basic and diluted earnings per share amounts are the same.
Use of Estimates	Use of Estimates The accompanying consolidated financial statements have been prepared in conformity with accounting principles generally accepted in the United States of America. In preparing the financial statements, management is required to make estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the balance sheet and the reported results of operations for the periods then ended. Actual results could differ significantly from those estimates. Material estimates that are particularly susceptible to significant changes in the near term relate to the determination of the allowance for loan losses and fair value of assets acquired and liabilities assumed in business combinations.
Business and Significant Concentrations of Credit Risk	Business and Significant Concentrations of Credit Risk The Company provides several types of loans to individuals, businesses, and municipal entities primarily located in its customer service area. Real estate and commercial loans are principal areas of concentration. The Company also strives to meet the borrowing needs of the consumers in its market areas. Extension of credit is generally limited to the primary trade areas of the Company. Primary deposit products of the Bank are noninterest-bearing and interest-bearing demand accounts, savings accounts, money market accounts, and term certificate of deposit accounts.
Cash and Cash Equivalents	Cash and Cash Equivalents For purposes of reporting consolidated cash flows, cash and cash equivalents include cash on hand and amounts due from banks, all of which have an original maturity within 90 days or less. Cash flows from loans and deposits are reported net.
Interest-Bearing Time Deposits with Banks	Interest-Bearing Time Deposits with Banks Interest-bearing time deposits with banks are carried at cost.
Debt Securities	Debt Securities Debt securities are classified as held-to-maturity when the Company has the positive intent and ability to hold the securities to maturity and are carried at amortized cost. Debt securities not classified as held-to-maturity are classified as available-for-sale. Debt securities available-for-sale are carried at fair value with unrealized gains and losses reported in accumulated other comprehensive income (loss). Realized gains and losses on debt securities available-for-sale are included in noninterest income when applicable and reported as a reclassification adjustment in other comprehensive income (loss). Gains and losses on sales of securities are determined using the specific identification method on the trade date. The amortization of premiums and accretion of discounts are recognized in interest income using methods approximating the interest method over the period to maturity. Any transfers of debt securities into the held-to-maturity category from the available-for-sale category are made at fair value at the date of transfer. The unrealized holding gain or loss at the date of transfer is retained in accumulated other comprehensive income (loss) and in the carrying value of the held-to-maturity securities. Such amounts are amortized over the period to maturity. Declines in the fair value of individual securities below their cost that are other-than-temporary result in write-downs of the individual securities to their fair value. The Company monitors the investment security portfolio for impairment on an individual security basis and has a process in place to identify securities that could potentially have a credit impairment that is other-than-temporary. This process involves analyzing the length of time and the extent to which the fair value has been less than the amortized cost basis, the market liquidity for the security, the financial condition and near-term prospects of the issuer, expected cash flows, and the intent of the Company to not sell the security or whether it is more likely than not that the Company will be required to sell the security before its anticipated recovery. A decline in value due to a credit event that is considered other-than-temporary is recorded as a loss in noninterest income.
Equity Securities	Equity Securities Equity securities with readily determinable fair values are measured at fair value with changes in fair value recognized in gains (losses) on securities on the statements of income. The Company has elected to measure its equity securities with no readily determinable fair values at their cost minus impairment, if any, plus or minus charges resulting from observable price changes in orderly transactions for the identical or a similar investment of the same issuer.
Restricted Stock	Restricted Stock Restricted stock, which consists of Federal Home Loan Bank of Chicago (“FHLB”) stock, is carried at cost and evaluated for impairment.
Loans Held for Sale	Loans Held for Sale Mortgage loans originated and intended for sale in the secondary market are carried at the lower of cost or fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on sale and thus quotes typically indicate fair value of the held for sale loans is greater than cost. Net unrealized losses, if any, are recognized through a valuation allowance by charges to income. Mortgage loans held for sale are generally sold with the mortgage servicing rights retained by the Company. The carrying value of mortgage loans sold is reduced by fair value allocated to the associated mortgage servicing rights. Gains or losses on sales of mortgage loans are recognized based on the difference between the selling price and the carrying value of the related mortgage loans sold.
Loans	Loans Loans that management has the intent and ability to hold for the foreseeable future or until maturity or pay-off generally are reported at their outstanding unpaid principal balances adjusted for charge-offs and the allowance for loan losses, deferred loan fees or costs on originated loans, and unamortized premiums or discounts on acquired loans. Interest income is accrued on the unpaid principal balance. Loan origination fees, net of certain direct origination costs, as well as premiums and discounts, are deferred and recognized as an adjustment of the related loan yield using the interest method. The accrual of interest on loans is discontinued at the time the loan is 90 days past due unless the credit is well-secured and in process of collection. Past due status is based on contractual terms of the loan. In all cases, loans are placed on nonaccrual or charged-off at an earlier date if collection of principal or interest is considered doubtful. All interest accrued but not collected for loans that are placed on nonaccrual or charged off is reversed against interest income if it was accrued during the current year and charged-off against the allowance for loan losses if accrued in a prior year. Amortization of related deferred loan fees or costs is also suspended at this time. The interest on these loans is accounted for on the cash-basis or cost-recovery method, until qualifying for return to accrual. Loans are returned to accrual status when all the principal and interest amounts contractually due are brought current and future payments are reasonably assured.
Allowance for Loan Losses	Allowance for Loan Losses The allowance for loan losses (“allowance”) is an estimate of loan losses inherent in the Company’s loan portfolio. The allowance for loan losses represents amounts that have been established to recognize incurred credit losses in the loan portfolio that are both probable and reasonably estimable at the date of the consolidated financial statements. The allowance is established through a provision for loan losses which is charged to expense. Additions to the allowance are expected to maintain the adequacy of the total allowance. Loan losses are charged off against the allowance when the Company determines the loan balance to be uncollectible. Cash received on previously charged off amounts is recorded as a recovery to the allowance. The allowance consists of two primary components, general reserves and specific reserves related to impaired loans. The general component covers non-impaired loans and is based on historical losses adjusted for qualitative factors. The historical loss experience is determined by portfolio segment and is based on the actual loss history experienced by the Company over the most recent 16-quarter period. This actual loss experience is adjusted for qualitative factors based on the risks present for each portfolio segment. These qualitative factors include consideration of the following: levels of and trends in delinquencies and impaired loans; levels of and trends in charge-offs and recoveries; trends in volume and terms of loans; effects of any changes in risk selection and underwriting standards; other changes in lending policies, procedures, and practices; experience, ability, and depth of lending management and other relevant staff; national and local economic trends and conditions; industry conditions; and effects of changes in credit concentrations. These qualitative factors are inherently subjective and are driven by the repayment risk associated with each portfolio segment. A loan is considered impaired when, based on current information and events, it is probable that the Company will be unable to collect the scheduled payments of principal or interest when due according to the contractual terms of the loan agreement. The Company reviews the loan portfolio on an ongoing basis to determine whether any loans require classification and impairment testing in accordance with applicable regulations and accounting principles. Loans determined to be impaired are individually evaluated for impairment. When a loan is classified as either substandard or doubtful and in certain other cases, such as troubled debt restructurings, the Company generally measures impairment based on the fair value of the collateral, but also may use the present value of expected future cash flows discounted at the original contractual interest rate, when practical. Under certain circumstances, the Company will provide borrowers relief through loan restructurings. A restructuring of debt constitutes a troubled debt restructuring (“TDR”) if the Company for economic or legal reasons related to the borrower’s financial difficulties grants a concession to the borrower that it would not otherwise consider. Restructured loans typically present an elevated level of credit risk as the borrowers are not able to perform according to the original contractual terms. TDR concessions can include reduction of interest rates, extension of maturity dates, forgiveness of principal or interest due, or acceptance of other assets in full or partial satisfaction of the debt. In general, if the Company grants a TDR that involves either the absence of principal amortization or a material extension of an existing loan amortization period in excess of our underwriting standards, the loan will be placed on nonaccrual status. However, if a TDR is well secured by an abundance of collateral and the collectability of both interest and principal is probable, the loan may remain on accrual status. A nonaccrual TDR in full compliance with the payment requirements specified in the loan modification for at least six months may return to accrual status, if the collectability of both principal and interest is probable. All TDRs are individually evaluated for impairment. The Company assigns a risk rating to all loans and periodically performs detailed internal reviews of all such loans that are part of relationships with over $500,000 in total exposure to identify credit risks and to assess the overall collectability of the portfolio. These risk ratings are also subject to review by the Company’s regulators, external loan review, and internal loan review. During the internal reviews, management monitors and analyzes the financial condition of borrowers and guarantors, trends in the industries in which the borrowers operate and the fair values of collateral securing the loans. The risk rating is reviewed annually, at a minimum, and on an as needed basis depending on the specific circumstances of the loan. These credit quality indicators are used to assign a risk rating to each individual loan. Risk ratings are grouped into four major categories, defined as follows: Pass: A Pass loan is a credit with no existing or known potential weaknesses deserving of management’s close attention. Pass-Watch: A Pass-Watch loan is still considered a Pass credit and not a classified or criticized asset, but is a reflection of a borrower who exhibits credit weaknesses or downward trends warranting close attention and increased monitoring. These potential weaknesses may result in deterioration of the repayment prospects for the loan. No loss of principal or interest is expected, and the borrower does not pose sufficient risk to warrant classification. Substandard: A Substandard loan is inadequately protected by the current sound worth and paying capacity of the borrower or of the collateral pledged, if any. Loans classified as Substandard have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. They are characterized as probable that the borrower will not pay principal and interest in accordance with the contractual terms. Doubtful: A Doubtful loan has all the weaknesses inherent in those classified as Substandard, with the added characteristic that the weaknesses make collection or repayment in full, on the basis of currently existing facts, conditions, and values, highly questionable and improbable. The Company maintains a separate general valuation allowance for each portfolio segment. These portfolio segments include commercial and industrial, agricultural and farmland, commercial real estate – owner occupied, commercial real estate – non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer and other, with risk characteristics described as follows: Commercial and Industrial: Consists of loans typically granted for working capital, asset acquisition and other business purposes. These loans are underwritten primarily based on the borrower’s cash flow with most loans secondarily supported by collateral. Most commercial and industrial loans are secured by the assets being financed or other business assets, such as accounts receivable, inventory, and equipment, and are typically supported by personal guarantees of the owners. Cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions and specific borrower circumstances. Agricultural and Farmland: Consists of loans typically secured by farmland, agricultural operating assets, or a combination of both, and are generally underwritten to existing cash flows of operating agricultural businesses. Debt repayment is provided by business cash flows. Economic trends influenced by unemployment rates and other key economic indicators are not closely correlated to the credit quality of agricultural and farmland loans. The credit quality of these loans is most correlated to changes in prices of corn and soybeans and, to a lesser extent, weather, which has been partially mitigated by federal crop insurance programs. Commercial Real Estate - Owner Occupied: Consists of loans secured by commercial real estate that is both owned and occupied by the same or a related borrower. These loans are primarily underwritten based on the cash flow of the business occupying the property. As with commercial and industrial loans, cash flows and collateral values may fluctuate based on general economic conditions, specific industry conditions, and specific borrower circumstances. Commercial Real Estate - Non-owner Occupied: Consists of loans secured by commercial real estate for which the primary source of repayment is the sale or rental cash flows from the underlying collateral. These loans are underwritten based primarily on the historic or projected cash flow from the underlying collateral. Adverse economic developments or an overbuilt market typically impact commercial real estate projects. Trends in rental and vacancy rates of commercial properties impact the credit quality of these loans. Multi-family: Consists of loans secured by five or more unit apartment buildings. Multi-family loans may be affected by demographic and population trends, unemployment or underemployment, and deteriorating market values of real estate. Construction and Land Development: Consists of loans for speculative and pre-sold construction projects for developers intending to either sell upon completion or hold for long term investment, as well as construction of projects to be owner occupied. In addition, loans in this segment generally possess a higher inherent risk of loss than other portfolio segments due to risk of non-completion, changes in budgeted costs, and changes in market forces during the term of the construction period. One-to-four Family Residential: Consists of loans secured by one-to-four family residences, including both first and junior lien mortgage loans for owner occupied and non-owner occupied properties and home equity lines of credit. The degree of risk in residential mortgage lending depends on the local economy, including the local real estate market and unemployment rates. Municipal, Consumer and Other: Loans to municipalities include obligations of municipal entities and loans sponsored by municipal entities for the benefit of a private entity where that private entity, rather than the municipal entity, is responsible for repayment of the obligation. Consumer loans include loans to individuals for consumer purposes and typically consist of small balance loans. Economic trends determined by unemployment rates and other key economic indicators are closely correlated to the credit quality of the consumer loans. Loans to other financial institutions, as well as leases, are also included. Although management believes the allowance to be adequate, ultimate losses may vary from its estimates. At least quarterly, the Board of Directors reviews the adequacy of the allowance, including consideration of the relevant risks in the portfolio, current economic conditions and other factors. If the Board of Directors and management determine that changes are warranted based on those reviews, the allowance is adjusted. In addition, the Company’s regulators review the adequacy of the allowance and may require additions to the allowance based on their judgment about information available at the time of their examinations.
Loans Acquired with Deteriorated Credit Quality	Loans Acquired with Deteriorated Credit Quality Loans acquired that have evidence of deterioration in credit quality since origination and for which it is probable, at acquisition, that the Company will be unable to collect all contractually required payments receivable, are initially recorded at fair value (as determined by the present value of expected future cash flows) with no allowance for loan losses. Loans are evaluated by management at the time of purchase to determine if there is evidence of deterioration in credit quality since origination. Loans where there is evidence of deterioration of credit quality since origination may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. The difference between the undiscounted cash flows expected at acquisition and the investment in the loan, or the “accretable yield,” is recognized as interest income over the life of the loan. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized as a yield adjustment. Subsequent decreases to the expected cash flows will generally result in a provision for loan losses. Subsequent increases in expected cash flows result in a reversal of the provision for loan losses to the extent of prior charges or a reclassification of the difference from nonaccretable to accretable yield with a positive impact on interest income on a prospective basis. If the Company does not have the information necessary to reasonably estimate cash flows to be expected, it may use the cost recovery method or cash basis method of income recognition.
Off-Balance Sheet Credit Related Financial Instruments	Off-Balance Sheet Credit Related Financial Instruments In the ordinary course of business, the Company has entered into commitments to extend credit, including commitments under credit arrangements, commercial letters of credit, and standby letters of credit. Such financial instruments are recorded when they are funded.
Loan Servicing	Loan Servicing The Company periodically sells mortgage loans on the secondary market with servicing retained. For sales of mortgage loans, a portion of the cost of originating the loan is allocated to the servicing right based on fair value. Fair value is based on market prices for comparable mortgage servicing contracts, when available, or alternatively, is based on a valuation model that calculates the present value of estimated future net servicing income. The valuation model incorporates assumptions that market participants would use in estimating future net servicing income, such as the cost to service, the discount rate, the custodial earnings rate, an inflation rate, ancillary income, prepayment speeds, and default rates and losses. Mortgage servicing rights are carried at fair value on the consolidated balance sheets and changes in fair value are recorded in mortgage servicing rights fair value adjustment on the consolidated statements of income.
Bank Owned Life Insurance	Bank Owned Life Insurance Bank owned life insurance represents life insurance policies on the lives of certain current and former employees and directors for which the Company is the sole owner and beneficiary. These policies are recorded as an asset in the consolidated balance sheets at their cash surrender value ("CSV") or the current amount that could be realized if settled. The change in CSV and insurance proceeds received are included as a component of noninterest income in the consolidated statements of income.
Bank Premises and Equipment	Bank Premises and Equipment Land is carried at cost. Bank premises and equipment are carried at cost less accumulated depreciation. Depreciation is computed over the estimated useful lives of the individual assets using the straight-line method.
Bank Premises Held for Sale	Bank Premises Held for Sale Bank premises held for sale is carried at the lower of cost or fair value less estimated costs to sell. The bank premises are not depreciated while classified as held for sale.
Impairment of Long-Lived Assets	Impairment of Long-Lived Assets The Company reviews long-lived assets for impairment whenever events or changes in circumstances indicate the carrying amount of an asset may not be recoverable. Recoverability of assets to be held and used is measured by a comparison of the carrying amount of an asset to future undiscounted net cash flows expected to be generated by the asset. If such assets are considered to be impaired, the impairment to be recognized is measured by the amount by which the carrying amount of the assets exceeds the fair value of the assets. Assets to be disposed of are reported at the lower of carrying amount or fair value less estimated costs to sell.
Lease Obligations	Lease Obligations The Company leases certain bank premises under non-cancelable operating leases in the normal course of business operations. These lease obligations result in the recognition of right-of-use assets and associated lease contract liabilities. The amount of right-of-use assets and associated lease contract liabilities recorded is based on the present value of future minimum lease payments. The discount rate used is equal to the rate implicit in the lease, when readily determinable, or the Company’s incremental borrowing rate at lease inception, on a collateralized basis over a similar term. Right-of-use assets are included in other assets and lease contract liabilities are included in other liabilities in the consolidated balance sheets and were insignificant as of December 31, 2021 and 2020.
Foreclosed Assets	Foreclosed Assets Assets acquired through, or in lieu of, loan foreclosure are held for sale and are initially recorded at fair value less estimated cost to sell at the date of foreclosure, establishing a new cost basis. Any write-down based on the fair value of the asset at the date of acquisition is charged to the allowance for loan losses. If the fair value of the asset less estimated cost to sell exceeds the recorded investment in the loan at the date of foreclosure, the increase in value is charged to current year operations unless there has been a prior charge-off, in which case a recovery to the allowance for loan losses is recorded. Subsequent to foreclosure, valuations are periodically performed by management and the assets are carried at the lower of carrying amount or fair value less estimated cost to sell. Write-downs of foreclosed assets subsequent to foreclosure are charged to current year operations as are gains and losses from sale of foreclosed assets, as well as expenses to maintain and hold foreclosed assets.
Goodwill and Other Intangible Assets	Goodwill and Other Intangible Assets Goodwill represents the excess of the original cost over the fair value of assets acquired and liabilities assumed. Goodwill is not amortized but instead is subject to an annual impairment evaluation. The Company has selected December 31 as the date to perform the annual impairment test. At December 31, 2021 and 2020, the Company’s evaluations of goodwill indicated that goodwill was not impaired. Additionally, due to the economic weakness resulting from the COVID-19 pandemic, the Company completed a quantitative assessment of goodwill as of March 31, 2020 which indicated that goodwill was not impaired. Further goodwill impairment evaluations, which may result in goodwill impairment, may be necessary if events or circumstance changes would more likely than not reduce the fair value of a reporting unit below its carrying amount. Other identifiable intangible assets consist of core deposit intangible assets with definite useful lives which are being amortized using an accelerated depreciation method over 10 years. The Company will periodically review the status of core deposit intangible assets for any events or circumstances which may change the recoverability of the underlying basis.
Wealth Management Assets and Fees	Wealth Management Assets and Fees Assets of the wealth management department of the Bank are not included in the consolidated balance sheets as such assets are not assets of the Company or the Bank. Fee income generated from wealth management services is recorded in the consolidated statements of income as a source of noninterest income.
Employee Benefit Plans	Employee Benefit Plans The Company sponsors a profit sharing plan under which the Company may contribute, at the discretion of the Board of Directors, a discretionary amount to all participating employees for the plan year. Participating employees are those employees in service on the valuation date who were employed on the last day of the plan year then ended, were on leave of absence on the last day of the plan year then ended, or any participant whose service was terminated during the plan year then ended due to retirement, disability, or death. A 401(k) feature also allows the Bank to make discretionary matching contributions in an amount up to 5% of compensation contributed by employees.
Stock Based Compensation	Stock Based Compensation The Company recognizes compensation cost over the requisite service period, if any, which is generally defined as the vesting period. For awards classified as equity, compensation cost is based on the fair value of the awards on the grant date. For awards classified as liabilities, compensation cost also includes subsequent remeasurements of the fair value of the awards until the award is settled. The Company’s policy is to recognize forfeitures as they occur.
Transfers of Financial Assets and Participating Interests	Transfers of Financial Assets and Participating Interests Transfers of an entire financial asset or a participating interest in an entire financial asset are accounted for as sales when control over the assets has been surrendered. Control over transferred assets is deemed to be surrendered when (1) the assets have been isolated from the Company, (2) the transferee obtains the right (free of conditions that constrain it from taking advantage of that right) to pledge or exchange the transferred assets, and (3) the Company does not maintain effective control over the transferred assets through an agreement to repurchase them before their maturity. The transfer of a participating interest in an entire financial asset must also meet the definition of a participating interest. A participating interest in a financial asset has all of the following characteristics: (1) from the date of transfer, it must represent a proportionate (pro rata) ownership interest in the financial asset, (2) from the date of transfer, all cash flows received, except any cash flows allocated as any compensation for servicing or other services performed, must be divided proportionately among participating interest holders in the amount equal to their share ownership, (3) the rights of each participating interest holder must have the same priority, and (4) no party has the right to pledge or exchange the entire financial asset unless all participating interest holders agree to do so.
Advertising Costs	Advertising Costs Advertising costs are expensed as incurred.
Income Taxes	Income Taxes Through October 10, 2019, the Company, with the consent of its then current stockholders, elected to be taxed under sections of federal and state income tax law as an "S Corporation" which provides that, in lieu of Company income taxes, except for state replacement taxes, the stockholders separately account for their pro rata shares of the Company’s items of income, deductions, losses and credits. As a result of this election, no income taxes, other than state replacement taxes, have been recognized in the accompanying consolidated financial statements prior to October 11, 2019. No provision has been made for any amounts which may be advanced or paid as dividends to the stockholders to assist them in paying their personal taxes on the income from the Company. Effective October 11, 2019, the Company voluntarily revoked its S Corporation status and became a taxable entity (C Corporation). In connection with the conversion of tax status, the Company recognized a deferred tax asset of $534,000 and an income tax benefit of $534,000. Income tax expense is the total of the current year income tax due or refundable and the change in deferred tax assets and liabilities. Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. A valuation allowance, if needed, reduces deferred tax assets to the amount expected to be realized. With regard to uncertain tax matters, the Company recognizes in the consolidated financial statements the impact of a tax position taken, or expected to be taken, if it is more likely than not that the position will be sustained on audit based on the technical merit of the position. Management has analyzed the tax positions taken by the Company and concluded as of December 31, 2021 and 2020, there are no uncertain tax positions taken or expected to be taken that require recognition of a liability or disclosure in the consolidated financial statements. When applicable, the Company recognizes interest accrued related to unrecognized tax benefits and penalties in operating expenses. The Company files consolidated federal and state income tax returns. The Company is no longer subject to federal or state income tax examinations for years prior to 2018.
Derivative Financial Instruments	Derivative Financial Instruments As part of the Company’s asset/liability management, the Company uses interest rate swaps to hedge various exposures or to modify interest rate characteristics of various balance sheet accounts. Derivatives that are used as part of the asset/liability management process are linked to specific assets or liabilities, or pools of assets or liabilities, and have high correlation between the contract and the underlying item being hedged, both at inception and throughout the hedge period. All derivatives are recognized on the consolidated balance sheet at their fair value. On the date the derivative contract is entered into, the Company may designate the derivative as a hedge of a forecasted transaction or of the variability of cash flows to be received or paid related to a recognized asset or liability "cash flow" hedge. Changes in the fair value of a derivative that is highly effective and that is designated and qualifies as a cash-flow hedge are recorded in other comprehensive income (loss), until earnings are affected by the variability of cash flows (e.g., when periodic settlements on a variable-rate asset or liability are recorded in earnings). The Company formally documents all relationships between hedging instruments and hedged items, as well as its risk-management objective and strategy for undertaking various hedged transactions. This process includes linking all derivatives that are designated as cash-flow hedges to specific assets and liabilities on the balance sheet or forecasted transactions. The Company also formally assesses, both at the hedge’s inception and on an ongoing basis, whether the derivatives that are used in hedging transactions are highly effective in offsetting changes in cash flows of hedged items. When it is determined that a derivative is not highly effective as a hedge or that it has ceased to be a highly effective hedge, the Company discontinues hedge accounting prospectively. The Company discontinues hedge accounting prospectively when (a) it is determined that the derivative is no longer highly effective in offsetting changes in the cash flows of a hedged item (including forecasted transactions); (b) the derivative expires or is sold, terminated, or exercised; (c) the derivative is dedesignated as a hedge instrument, because it is unlikely that a forecasted transaction will occur; or (d) management determines that designation of the derivative as a hedge instrument is no longer appropriate. When hedge accounting is discontinued because it is probable that a forecasted transaction will not occur, the derivative will continue to be carried on the consolidated balance sheet at its fair value, and gains and losses that were accumulated in other comprehensive income (loss) will be recognized immediately in earnings. In all other situations in which hedge accounting is discontinued, the derivative will be carried at its fair value on the balance sheet, with subsequent changes in its fair value recognized in current-period earnings.
Comprehensive Income (Loss)	Comprehensive Income (Loss) Accounting principles generally require that recognized revenue, expenses, gains, and losses be included in net income. Although certain changes in assets and liabilities, such as unrealized gains and losses on securities available-for-sale and interest rate swap agreements designated as cash flow hedges, are reported as a separate component of the equity section of the consolidated balance sheets, such items, along with net income, are components of comprehensive income (loss).
Fair Value Measurements	Fair Value Measurements The Company categorizes its assets and liabilities measured at fair value into a three-level hierarchy based on the priority of the inputs to the valuation technique used to determine fair value. The fair value hierarchy gives the highest priority to quoted prices in active markets for identical assets or liabilities (Level 1) and the lowest priority to unobservable inputs (Level 3). If the inputs used in the determination of the fair value measurement fall within different levels of the hierarchy, the categorization is based on the lowest level input that is significant to the fair value measurement. Assets and liabilities valued at fair value are categorized based on the inputs to the valuation techniques as follows: Level 1 - Inputs that are quoted prices (unadjusted) for identical assets or liabilities in active markets that the Company has the ability to access as of the measurement date. Level 2 - Inputs that are significant other observable inputs other than Level 1 prices such as quoted prices for similar assets or liabilities, quoted prices in markets that are not active; or other inputs that are observable or can be corroborated by observable market data. Level 3 - Inputs that are unobservable inputs that reflect a Company’s own assumptions about the assumptions that market participants would use in pricing as asset or liability. Subsequent to initial recognition, the Company may re-measure the carrying value of assets and liabilities measured on a nonrecurring basis to fair value. Adjustments to fair value usually result when certain assets are impaired. Such assets are written down from their carrying amounts to their fair value. Accounting standards allow entities the irrevocable option to elect to measure certain financial instruments and other items at fair value for the initial and subsequent measurement on an instrument-by-instrument basis. The Company adopted the policy and has not elected to measure any existing financial instruments at fair value, except for mortgage servicing rights; however, it may elect to measure newly acquired financial instruments at fair value in the future.
Revenue from Contracts with Customers	Revenue from Contracts with Customers ASC Topic 606, Revenue from Contracts with Customers, requires an entity to recognize revenue in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods and services. To achieve this, the Company takes the following steps: identify the contract(s) with a customer; identify the performance obligations in the contract; determine the transaction price; allocate the transaction price to the performance obligations in the contract; and recognize revenue when (or as) the Company satisfies a performance obligation. The non-interest revenue streams that are considered to be in the scope of this guidance are discussed below. Card income: Consists of debit and credit card interchange fees. For debit and credit card transactions, the Company considers the merchant as the customer for interchange revenue with the performance obligation being satisfied when the cardholder purchases goods or services from the merchant. Interchange revenue is recognized as the services are provided. Payment is typically received daily. Service charges on deposit accounts: Consists of account analysis fees, monthly service fees, and other deposit account related fees. The Company’s performance obligation account analysis fees and monthly service fees are ongoing and either party may cancel at any time. These fees are generally recognized as the services are rendered on a monthly basis. Payment is typically received monthly. Other deposit account related fees are largely transaction based, and therefore, the Company’s performance obligation is satisfied, and related revenue recognized, at a point in time. Payment for other deposit account related fees is primarily received immediately through a direct charge to customers’ accounts. Wealth management fees: Consists of revenue from the management and advisement of client assets and trust administration. The Company’s performance obligation is generally satisfied over time, and the fees are recognized monthly. Payment is typically received quarterly or annually. Title insurance activity: Consists of fees related to real estate sale closings, title search fees, and title insurance premiums with First Community Title Services, Inc. acting as an agent. The Company’s performance obligations were generally satisfied and payment was typically received at the time a real estate transaction was finalized. In 2019, First Community Title Services, Inc. was sold, and the Company did not have title insurance activity revenue in subsequent periods.
Segment Reporting	Segment Reporting The Company’s operations consist of one reportable segment. The Company’s chief operating decision maker evaluates the operations of the Company using consolidated information for purposes of allocating resources and assessing performance.
Reclassifications	Reclassifications Certain prior period amounts have been reclassified to conform to the current period presentation without any impact on the reported amounts of net income or stockholders’ equity.
Subsequent Events	Subsequent Events In preparing these consolidated financial statements, the Company has evaluated events and transactions for potential recognition or disclosure through the date the consolidated financial statements were issued.
Recent Accounting Pronouncements	Recent Accounting Pronouncements In June 2016, the Financial Accounting Standards Board (FASB) issued ASU 2016-13, Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments. ASU 2016-13 requires the measurement of all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts and requires enhanced disclosures related to the significant estimates and judgments used in estimating credit losses, as well as the credit quality and underwriting standards of an organization’s portfolio. In addition, ASU 2016-13 amends the accounting for credit losses on available-for-sale debt securities and purchased financial assets with credit deterioration. ASU 2016-13 is effective for years beginning after December 15, 2022, including interim periods within those fiscal years. Early adoption is permitted. The Company is currently evaluating the effect that this standard will have on the consolidated results of operations and financial position. In January 2017, the FASB issued ASU 2017-04, Intangibles – Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment. This ASU simplifies measurement of goodwill and eliminates Step 2 from the goodwill impairment test. Under the ASU, a company should perform its goodwill impairment test by comparing the fair value of a reporting unit with its carrying amount. An impairment charge should be recognized for the amount by which the carrying amount exceeds the reporting unit’s fair value. The impairment charge is limited to the amount of goodwill allocated to that reporting unit. The amendments in this update are effective for annual or any interim goodwill impairment tests in years beginning after December 15, 2022, including interim periods within those years. Early adoption is permitted for goodwill impairment tests performed on testing dates after January 1, 2017. This standard is not expected to have a material impact on the Company’s consolidated results of operations or financial position. In March 2020, the FASB issued ASU 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting. This ASU provides optional expedients and exceptions for applying GAAP to contracts, hedging relationships, and other transactions affected by reference rate reform, if certain criteria are met. Entities may apply the provisions as of the beginning of the reporting period when the election is made and are available until December 31, 2022. The Company is currently evaluating the effect that this standard will have on the consolidated results of operations and financial position.

SECURITIES - Carrying balances of securities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
SECURITIES
Debt securities available-for-sale	$ 942,168	$ 922,869
Debt securities held-to-maturity	336,185	68,395
Equity securities with readily determinable fair value	3,443	3,292
Equity securities with no readily determinable fair value	1,927	1,552
Total securities	$ 1,283,723	$ 996,108

ACQUISITIONS

12 Months Ended

Dec. 31, 2021

ACQUISITIONS

ACQUISITIONS

NOTE 2 – ACQUISITIONS

NXT Bancorporation, Inc.

On October 1, 2021, HBT Financial acquired 100% of the outstanding common stock of NXT Bancorporation, Inc. (“NXT”), and its wholly-owned subsidiary NXT Bank, pursuant to an Agreement and Plan of Merger dated June 7, 2021. Under the Agreement and Plan of Merger, NXT merged with and into HBT Financial, with HBT Financial as the surviving entity, on October 1, 2021. Additionally, NXT Bank was merged with and into Heartland Bank, with Heartland Bank as the surviving entity, in December 2021.

At the effective time of the merger, each share of NXT was converted into the right to receive 67.6783 shares of HBT Financial common stock, cash in lieu of fractional shares, and $400 in cash. There were 1,799,016 shares of HBT Financial common stock issued at the effective time of the acquisition with a market value of $29,270,000, based on the closing stock price of $16.27 on October 1, 2021. This transaction was accounted for using the acquisition method of accounting and, accordingly, assets acquired, liabilities assumed, and consideration exchanged was recorded at estimated fair values on the date of acquisition. Goodwill of $5,702,000 was recorded in the acquisition, which reflects expected synergies from combining the operations of HBT Financial and NXT, and is nondeductible for tax purposes.

The acquisition of NXT provides an opportunity to utilize Heartland Bank’s existing excess liquidity to replace NXT Bank’s higher cost funding. Additionally, Heartland Bank’s broader range of products and services and greater ability to meet larger borrowing needs provides an opportunity to expand NXT Bank customer relationships.

During the year ended December 31, 2021, the HBT Financial incurred $1,416,000 in pre-tax acquisition expenses related to the acquisition of NXT, comprised primarily of professional fees and data processing expense. These expenses are reflected in noninterest expense on the consolidated statements of income.

The fair value of the assets acquired and liabilities assumed from NXT on the acquisition date were as follows (dollars in thousands):


	Fair Value
Assets acquired:
Cash and cash equivalents	$	5,862
Interest-bearing time deposits with banks		739
Debt securities		18,295
Equity securities with readily determinable fair value		43
Restricted stock		796
Loans		194,576
Bank owned life insurance		7,352
Bank premises and equipment		3,667
Core deposit intangible assets		199
Mortgage servicing rights		370
Accrued interest receivable		886
Other assets		1,340
Total assets acquired		234,125

Liabilities assumed:
Deposits		181,586
Securities sold under agreements to repurchase		4,080
FHLB advances		12,625
Other liabilities		1,633
Total liabilities assumed		199,924
Net assets acquired	$	34,201

Consideration paid:
Cash	$	10,633
Common stock		29,270
Total consideration paid	$	39,903

Goodwill	$	5,702

The following table presents the acquired non-impaired loans as of the acquisition date (dollars in thousands):


Fair Value	$	194,576
Gross contractual amounts receivable		196,104
Estimate of contractual cash flows not expected to be collected		1,045

There were no loans acquired with deteriorated credit quality from NXT.

The following table provides the pro forma information for the results of operations for the years ended December 31, 2021 and 2020, as if the acquisition had occurred on January 1, 2020. The pro forma results combine the historical results of NXT into HBT Financial’s consolidated statements of income, including the impact of certain acquisition accounting adjustments, which include loan discount accretion, intangible assets amortization, deposit premium amortization, and borrowing premium amortization. The pro forma results have been prepared for comparative purposes only and are not necessarily indicative of the results that would have been obtained had the acquisition actually occurred on January 1, 2020. No assumptions have been applied to the pro forma results of operations regarding possible revenue enhancements, provision for loan losses, expense efficiencies or asset dispositions. The acquisition-related expenses that have been recognized are included in net income in the following table.


	Pro Forma
	Year Ended December 31,
	2021		2020

	(dollars in thousands, except per share data)
Total revenues (net interest income and noninterest income)	$	166,677	$	161,005
Net income		57,883		39,263
Earnings per share - basic		1.98		1.34
Earnings per share - diluted		1.98		1.34

SECURITIES - Equity securities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Equity Securities - Readily determinable fair value
Equity Securities, Readily determinable fair value, cost	$ 3,142	$ 3,098
Equity Securities, Readily determinable fair value, Cumulative Net Unrealized Gains (Losses)	301	194
Equity securities, Readily determinable fair value, Carrying Value	3,443	3,292
Equity Securities - No readily determinable fair value
Equity Securities, No readily determinable fair value, cost	2,092	1,717
Equity Securities, No readily determinable fair value, Cumulative Net Unrealized Gains (Losses)	(165)	(165)
Equity securities: No readily determinable fair value, Carrying Value	1,927	1,552
Impairment on equity securities with no readily determinable value	0	0
Upward adjustment on equity securities with no readily determinable fair value	$ 0	$ 0

FAIR VALUE OF FINANCIAL INSTRUMENTS

12 Months Ended

Dec. 31, 2021

FAIR VALUE OF FINANCIAL INSTRUMENTS

FAIR VALUE OF FINANCIAL INSTRUMENTS

NOTE 23 – FAIR VALUE OF FINANCIAL INSTRUMENTS

Recurring Basis

The Company uses fair value measurements to record fair value adjustments to certain assets and to determine fair value disclosures. Additional information on fair value measurements are summarized in Note 1. There were no transfers between levels during the years ended December 31, 2021 and 2020. The Company’s policy for determining transfers between levels occurs at the end of the reporting period when circumstances in the underlying valuation criteria change and result in transfer between levels.

The following tables present the balances of the assets measured at fair value on a recurring basis as of December 31:


December 31, 2021	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

		(dollars in thousands)
Debt securities available-for-sale:
U.S. Treasury	$	108,976	$	—	$	—	$	108,976
U.S. government agency		—		128,105		—		128,105
Municipal		—		297,077		—		297,077
Mortgage-backed:
Agency residential		—		179,466		—		179,466
Agency commercial		—		164,061		—		164,061
Corporate		—		64,483		—		64,483
Equity securities with readily determinable fair values		3,443		—		—		3,443
Mortgage servicing rights		—		—		7,994		7,994
Derivative financial assets		—		8,697		—		8,697
Derivative financial liabilities		—		9,377		—		9,377


December 31, 2020	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

		(dollars in thousands)
Debt securities available-for-sale:
U.S. government agency	$	—	$	121,993	$	—	$	121,993
Municipal		—		274,261		—		274,261
Mortgage-backed:
Agency residential		—		203,252		—		203,252
Agency commercial		—		250,766		—		250,766
Corporate		—		72,597		—		72,597
Equity securities with readily determinable fair values		3,292		—		—		3,292
Mortgage servicing rights		—		—		5,934		5,934
Derivative financial assets		—		15,360		—		15,360
Derivative financial liabilities		—		16,818		—		16,818

The following is a description of the valuation methodologies used for instruments measured at fair value on a recurring basis, as well as the general classification of such instruments pursuant to the valuation hierarchy. There were no changes to the valuation techniques from December 31, 2020 to December 31, 2021.

Investment Securities

When available, the Company uses quoted market prices to determine the fair value of securities; such items are classified in Level 1 of the fair value hierarchy. For the Company’s securities where quoted prices are not available for identical securities in an active market, the Company determines fair value utilizing vendors who apply matrix pricing for similar bonds where no price is observable or may compile prices from various sources. These models are primarily industry-standard models that consider various assumptions, including time value, yield curve, volatility factors, prepayment speeds, default rates, loss severity, current market and contractual prices for the underlying financial instruments, as well as other relevant economic measures. Substantially all of these assumptions are observable in the marketplace. Fair values from these models are verified, where possible, against quoted market prices for recent trading activity of assets with similar characteristics to the security being valued. Such methods are generally classified as Level 2. However, when prices from independent sources vary, cannot be obtained or cannot be corroborated, a security is generally classified as Level 3. The change in fair value of debt securities available-for-sale is recorded through an adjustment to the consolidated statement of comprehensive income. The change in fair value of equity securities with readily determinable fair values is recorded through an adjustment to the consolidated statement of income.

Derivative Financial Instruments

Interest rate swap agreements are carried at fair value as determined by dealer valuation models. Based on the inputs used, the derivative financial instruments subjected to recurring fair value adjustments are classified as Level 2. For derivative financial instruments designated as a hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of comprehensive income. For derivative financial instruments not designated as a hedging instruments, the change in fair value is recorded through an adjustment to the consolidated statement of income.

Mortgage Servicing Rights

The Company has elected to record its mortgage servicing rights at fair value. Mortgage servicing rights do not trade in an active market with readily observable prices. Accordingly, the Company determines the fair value of mortgage servicing rights by estimating the fair value of the future cash flows associated with the mortgage loans being serviced as calculated by an independent third party. Key economic assumptions used in measuring the fair value of mortgage servicing rights include, but are not limited to, prepayment speeds and discount rates. Due to the nature of the valuation inputs, mortgage servicing rights are classified in Level 3 of the fair value hierarchy. The change in fair value is recorded through an adjustment to the consolidated statement of income.

The following tables present additional information about the unobservable inputs used in the fair value measurement of the mortgage servicing rights (dollars in thousands):


December 31, 2021	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	7,994	Discounted cash flows	Constant pre-payment rates (CPR)	7.0% to 88.9% (11.7%)
				Discount rate	9.0% to 11.0% (9.0%)

December 31, 2020	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Mortgage servicing rights	$	5,934	Discounted cash flows	Constant pre-payment rates (CPR)	7.0% to 85.0% (17.3%)
				Discount rate	9.0% to 11.0% (9.0%)

Nonrecurring Basis

Certain assets are measured at fair value on a nonrecurring basis. These assets are not measured at fair value on an ongoing basis; however, they are subject to fair value adjustments in certain circumstances, such as there is evidence of impairment or a change in the amount of previously recognized impairment.

The following tables present the balances of the assets measured at fair value on a nonrecurring basis as of December 31:


December 31, 2021	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

		(dollars in thousands)
Loans held for sale	$	—	$	4,942	$	—	$	4,942
Collateral-dependent impaired loans		—		—		22,423		22,423
Bank premises held for sale		—		—		1,452		1,452
Foreclosed assets		—		—		3,278		3,278


December 31, 2020	Level 1 Inputs		Level 2 Inputs		Level 3 Inputs		Total Fair Value

		(dollars in thousands)
Loans held for sale	$	—	$	14,713	$	—	$	14,713
Collateral-dependent impaired loans		—		—		33,320		33,320
Bank premises held for sale		—		—		121		121
Foreclosed assets		—		—		4,168		4,168

Loans Held for Sale

Mortgage loans originated and held for sale are carried at the lower of cost or estimated fair value. The Company obtains quotes or bids on these loans directly from purchasing financial institutions. Typically, these quotes include a premium on the sale and thus these quotes indicate fair value of the held for sale loans is greater than cost.

Collateral-dependent Impaired Loans

In accordance with the provisions of the loan impairment guidance, impairment was measured for loans which it is probable that payment of interest and principal will not be made in accordance with the contractual terms of the loan agreement. The fair value of collateral-dependent impaired loans is estimated based on the fair value of the underlying collateral supporting the loan. Collateral-dependent impaired loans require classification in the fair value hierarchy. Impaired loans include loans acquired with deteriorated credit quality. Collateral values are estimated using Level 3 inputs based on customized discounting criteria.

Bank Premises Held for Sale

Bank premises held for sale are recorded at the lower of cost or fair value, less estimated selling costs, at the date classified as held for sale. Values are estimated using Level 3 inputs based on appraisals and customized discounting criteria. The carrying value of bank premises held for sale is not re-measured to fair value on a recurring basis but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs.

Foreclosed Assets

Foreclosed assets are recorded at fair value based on property appraisals, less estimated selling costs, at the date of the transfer. Subsequent to the transfer, foreclosed assets are carried at the lower of cost or fair value, less estimated selling costs. Values are estimated using Level 3 inputs based on appraisals and customized discounting criteria. The carrying value of foreclosed assets is not re-measured to fair value on a recurring basis but is subject to fair value adjustments when the carrying value exceeds the fair value, less estimated selling costs.

Collateral-Dependent Impaired Loans, Bank Premises Held for Sale, and Foreclosed Assets

The estimated fair value of collateral-dependent impaired loans, bank premises held for sale, and foreclosed assets is based on the appraised fair value of the collateral, less estimated costs to sell. Collateral-dependent impaired loans, bank premises held for sale, and foreclosed assets are classified within Level 3 of the fair value hierarchy.

The Company considers the appraisal or a similar evaluation as the starting point for determining fair value and then considers other factors and events in the environment that may affect the fair value. Appraisals or a similar evaluation of the collateral underlying collateral-dependent loans and foreclosed assets are obtained at the time a loan is first considered impaired or a loan is transferred to foreclosed assets. Appraisals or a similar evaluation of bank premises held for sale are obtained when first classified as held for sale. Appraisals or similar evaluations are obtained subsequently as deemed necessary by management but at least annually on foreclosed assets and bank premises held for sale. Appraisals are reviewed for accuracy and consistency by management. Appraisals are performed by individuals selected from the list of approved appraisers maintained by management. The appraised values are reduced by discounts to consider lack of marketability and estimated costs to sell. These discounts and estimates are developed by management by comparison to historical results.

The following tables present quantitative information about unobservable inputs used in nonrecurring Level 3 fair value measurements (dollars in thousands).


December 31, 2021	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent impaired loans	$	22,423	Appraisal of collateral	Appraisal adjustments	Not meaningful
Bank premises held for sale		1,452	Appraisal	Appraisal adjustments	7% (7%)
Foreclosed assets		3,278	Appraisal	Appraisal adjustments	7% (7%)

December 31, 2020	Fair Value		Valuation Technique	Unobservable Inputs	Range (Weighted Average)
Collateral-dependent impaired loans	$	33,320	Appraisal of collateral	Appraisal adjustments	Not meaningful
Bank premises held for sale		121	Appraisal	Appraisal adjustments	7% (7%)
Foreclosed assets		4,168	Appraisal	Appraisal adjustments	7% (7%)

Other Fair Value Methods

The following methods and assumptions were used by the Company in estimating fair value disclosures of its other financial instruments. There were no changes in the methods and significant assumptions used to estimate the fair value of these financial instruments.

Cash and Cash Equivalents

The carrying amounts of these financial instruments approximate their fair values.

Interest-bearing Time Deposits with Banks

The carrying values of interest-bearing time deposits with banks approximate their fair values.

Restricted Stock

The carrying amount of FHLB stock approximates fair value based on the redemption provisions of the FHLB.

Loans

The fair value estimation process for the loan portfolio uses an exit price concept and reflects discounts the Company believes are consistent with discounts in the marketplace. Fair values are estimated for portfolios of loans with similar characteristics. Loans are segregated by type such as commercial and industrial, agricultural and farmland, commercial real estate - owner occupied, commercial real estate - non-owner occupied, multi-family, construction and land development, one-to-four family residential, and municipal, consumer, and other. The fair value of loans is estimated by discounting the future cash flows using the current rates at which similar loans would be made to borrowers with similar credit ratings and for similar maturities. The fair value analysis also includes other assumptions to estimate fair value, intended to approximate those a market participant would use in an orderly transaction, with adjustments for discount rates, interest rates, liquidity, and credit spreads, as appropriate.

Investments in Unconsolidated Subsidiaries

The fair values of the Company’s investments in unconsolidated subsidiaries are presumed to approximate carrying amounts.

Time Deposits

Fair values of certificates of deposit with stated maturities have been estimated using the present value of estimated future cash flows discounted at rates currently offered for similar instruments. Time deposits also include public funds time deposits.

Securities Sold Under Agreements to Repurchase

The fair values of repurchase agreements with variable interest rates are presumed to approximate their recorded carrying amounts.

Subordinated Notes

The fair values of subordinated debentures are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.

Junior Subordinated Debentures

The fair values of subordinated debentures are estimated using discounted cash flow analyses based on rates observed on recent debt issuances by other financial institutions.

Accrued Interest

The carrying amounts of accrued interest approximate fair value.

Limitations

Fair value estimates are made at a specific point in time, based on relevant market information and information about the financial instrument. Because no market exists for a significant portion of the Company’s financial instruments, fair value estimates are based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments, and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and, therefore, cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair values have been estimated using data which management considered the best available and estimation methodologies deemed suitable for the pertinent category of financial instrument.

The following table provides summary information on the carrying amounts and estimated fair values of the Company’s financial instruments as of December 31:


	Fair Value	December 31, 2021				December 31, 2020
	Hierarchy	Carrying		Estimated		Carrying		Estimated
	Level	Amount		Fair Value		Amount		Fair Value

			(dollars in thousands)
Financial assets:
Cash and cash equivalents	Level 1	$	409,268	$	409,268	$	312,451	$	312,451
Debt securities held-to-maturity	Level 2		336,185		336,027		68,395		72,441
Restricted stock	Level 3		2,739		2,739		2,498		2,498
Loans, net	Level 3		2,475,753		2,494,686		2,215,168		2,235,767
Investments in unconsolidated subsidiaries	Level 3		1,165		1,165		1,165		1,165
Accrued interest receivable	Level 2		14,901		14,901		14,255		14,255

Financial liabilities:
Time deposits	Level 3		328,208		327,779		299,474		300,989
Securities sold under agreements to repurchase	Level 2		61,256		61,256		45,736		45,736
Subordinated notes	Level 3		39,316		41,602		39,238		38,403
Junior subordinated debentures	Level 3		37,714		33,640		37,648		23,766
Accrued interest payable	Level 2		1,043		1,043		1,151		1,151

The Company estimated the fair value of lending related commitments as described in Note 24 to be immaterial based on limited interest rate exposure due to their variable nature, short-term commitment periods and termination clauses provided in the agreements.

- Definition

The entire disclosure for the fair value of financial instruments (as defined), including financial assets and financial liabilities (collectively, as defined), and the measurements of those instruments as well as disclosures related to the fair value of non-financial assets and liabilities. Such disclosures about the financial instruments, assets, and liabilities would include: (1) the fair value of the required items together with their carrying amounts (as appropriate); (2) for items for which it is not practicable to estimate fair value, disclosure would include: (a) information pertinent to estimating fair value (including, carrying amount, effective interest rate, and maturity, and (b) the reasons why it is not practicable to estimate fair value; (3) significant concentrations of credit risk including: (a) information about the activity, region, or economic characteristics identifying a concentration, (b) the maximum amount of loss the entity is exposed to based on the gross fair value of the related item, (c) policy for requiring collateral or other security and information as to accessing such collateral or security, and (d) the nature and brief description of such collateral or security; (4) quantitative information about market risks and how such risks are managed; (5) for items measured on both a recurring and nonrecurring basis information regarding the inputs used to develop the fair value measurement; and (6) for items presented in the financial statement for which fair value measurement is elected: (a) information necessary to understand the reasons for the election, (b) discussion of the effect of fair value changes on earnings, (c) a description of [similar groups] items for which the election is made and the relation thereof to the balance sheet, the aggregate carrying value of items included in the balance sheet that are not eligible for the election; (7) all other required (as defined) and desired information.

+ References + Details

SUBORDINATED NOTES (Tables)

12 Months Ended

Dec. 31, 2021

Subordinated Notes

SUBORDINATED NOTES

Schedule of carrying value of subordinated debentures


	December 31, 2021		December 31, 2020

	(dollars in thousands)
Subordinated notes, at face value	$	40,000	$	40,000
Unamortized issuance costs		(684)		(762)
Subordinated notes, at carrying value	$	39,316	$	39,238

DERIVATIVE FINANCIAL INSTRUMENTS (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020	Mar. 31, 2019
DERIVATIVE FINANCIAL INSTRUMENTS
Cash pledged	$ 780,000	$ 1,630,000
Securities pledged	$ 7,483,000	$ 15,490,000
Interest rate swap \| Cash flow hedge \| Variable-rate borrowings
DERIVATIVE FINANCIAL INSTRUMENTS
Notional amount			$ 10,000,000

DEPOSITS - Interest bearing Deposits - Narrative (Detail) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
DEPOSITS
Brokered deposits	$ 4,238
Reciprocal transaction deposits, Money market deposits	6,895	$ 6,489
Reciprocal transaction deposits, Time deposits	850	3,164
Time deposits in denominations of $250,000 or more	59,512	26,687
Time deposits in denominations of $100,000 or more	$ 133,067	$ 99,649

EARNINGS PER SHARE (Tables)

12 Months Ended

Dec. 31, 2021

EARNINGS PER SHARE

Schedule of reconciliations of the numerators and denominators used to compute basic and diluted earnings


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Numerator:
Net income	$	56,271	$	36,845	$	66,865
Earnings allocated to participating securities		(104)		(93)		—
Numerator for earnings per share - basic and diluted	$	56,167	$	36,752	$	66,865

Denominator:
Weighted average common shares outstanding		27,795,806		27,457,306		20,090,270
Dilutive effect of outstanding restricted stock units		15,487		—		—
Weighted average common shares outstanding, including all dilutive potential shares		27,811,293		27,457,306		20,090,270

Earnings per share - Basic	$	2.02	$	1.34	$	3.33
Earnings per share - Diluted	$	2.02	$	1.34	$	3.33

BORROWINGS (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
BORROWINGS
Borrowings	$ 0	$ 0
Securities pledged, served as collateral	566,996	493,690
Loans pledged in association with Mortgage Partnership Finance Program	355	355
FRB Line of credit
BORROWINGS
Borrowings	0	0
Securities pledged, served as collateral	$ 0	$ 499

SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)				12 Months Ended
SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Oct. 11, 2019 USD ($)	Oct. 10, 2019 USD ($) $ / shares shares	Sep. 13, 2019	Dec. 31, 2021 USD ($) segment item subsidiary $ / shares shares	Dec. 31, 2020 USD ($) $ / shares shares	Dec. 31, 2019 USD ($) shares	Dec. 31, 2018 shares	Feb. 15, 2019 USD ($)
ACCOUNTING POLICIES
Issuance of common stock (in shares) \| shares		9,429,794				9,429,794
Share price \| $ / shares		$ 16
Loans with payment modifications due to COVID-19				$ 204,000	$ 27,986,000
Proceeds from initial public offering		$ 138,493,000
Special dividend fund		$ 169,000,000
Special dividend per share \| $ / shares		$ 9.43
Pro forma dilutive instruments \| shares						0	0
Number of Subsidiary \| subsidiary				5
Number of primary components of allowance for loan losses \| item				2
Actual loss history period				4 years
Internal review threshold				$ 500,000
Definite useful lives of other identifiable intangible assets				10 years
Branch buildings classified as held for sale				$ 1,452,000	121,000
Number of segments \| segment				1
Percentage matching the compensation contributed by employees				5.00%
Provision for prepaid dividend				$ 0
Deferred tax asset	$ 534,000			3,365,000
Income tax benefit	$ (534,000)			20,291,000	12,728,000	$ 5,256,000
Uncertain tax positions				$ 0	$ 0
Common stock and preferred stock, shares authorized \| shares		150,000,000
Common stock, shares converted \| shares		1
Common stock, shares authorized \| shares		125,000,000		125,000,000	125,000,000
Common stock, par value (in dollars per share) \| $ / shares		$ 0.01		$ 0.01	$ 0.01
Preferred stock, shares authorized \| shares		25,000,000		25,000,000	25,000,000
Preferred stock, par value (in dollars per share) \| $ / shares		$ 0.01		$ 0.01	$ 0.01
Common Stock
ACCOUNTING POLICIES
Stock split ratio			20
Series A Nonvoting
ACCOUNTING POLICIES
Stock split ratio			20
Financial asset acquired with credit deterioration \| Loans
ACCOUNTING POLICIES
Allowance for credit loss				$ 0
First Community Title Services, Inc.
ACCOUNTING POLICIES
Consideration received								$ 498,000

SUBORDINATED NOTES (Details) - Subordinated Notes - USD ($) $ in Thousands	Sep. 03, 2020	Dec. 31, 2021	Dec. 31, 2020
SUBORDINATED NOTES
Face amount	$ 40,000	$ 40,000	$ 40,000
Debt issuance costs	$ 789
Amortization period of debt issuance costs	10 years
Qualifies as Tier 2 capital		100.00%
First five years
SUBORDINATED NOTES
Fixed interest rate	4.50%
Subsequent five years \| SOFR
SUBORDINATED NOTES
Spread on interest rate basis	4.37%

RELATED PARTY TRANSACTIONS (Details) - USD ($)	Dec. 31, 2021	Dec. 31, 2020
Related party transactions
Deposits of related parties	$ 3,738,185,000	$ 3,130,534,000
Related parties
Related party transactions
Loans to related parties	2,633,000	3,072,000
Deposits of related parties	$ 4,023,000	$ 2,596,000

- Definition

For an unclassified balance sheet, amounts due from related parties including affiliates, employees, joint ventures, officers and stockholders, immediate families thereof, and pension funds.

+ References

Reference 1: http://www.xbrl.org/2009/role/commonPracticeRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 235
-SubTopic 10
-Section S99
-Paragraph 1
-Subparagraph (SX 210.4-08(k)(1))
-URI http://asc.fasb.org/extlink&oid=120395691&loc=d3e23780-122690

Reference 2: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 850
-SubTopic 10
-Section 50
-Paragraph 1
-Subparagraph (d)
-URI http://asc.fasb.org/extlink&oid=6457730&loc=d3e39549-107864

Reference 3: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 4: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 5: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(5))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 942
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.9-03.10(3))
-URI http://asc.fasb.org/extlink&oid=120398452&loc=d3e534808-122878

Reference 7: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iii)(C))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 8: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1B
-Subparagraph (SX 210.13-02(a)(4)(iv))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442552-122756

Reference 9: http://www.xbrl.org/2003/role/disclosureRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 470
-SubTopic 10
-Section S99
-Paragraph 1A
-Subparagraph (SX 210.13-01(a)(4)(iii)(B))
-URI http://asc.fasb.org/extlink&oid=124359900&loc=SL124442526-122756

Reference 10: http://fasb.org/us-gaap/role/ref/legacyRef
-Publisher FASB
-Name Accounting Standards Codification
-Topic 944
-SubTopic 210
-Section S99
-Paragraph 1
-Subparagraph (SX 210.7-03.3)
-URI http://asc.fasb.org/extlink&oid=120400017&loc=d3e572229-122910

+ Details

FORECLOSED ASSETS - Gains (losses) on Foreclosed Assets (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
FORECLOSED ASSETS
Direct write-downs	$ (195)	$ (213)	$ (563)
Net gain (loss) on sales	505	348	1,048
Guarantee reimbursements		7	80
Gain on settlement			375
Gains (losses) on foreclosed assets	$ 310	$ 142	$ 940

SECURITIES - Narrative (Details) - USD ($) $ in Thousands	12 Months Ended
SECURITIES - Narrative (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2019	Dec. 31, 2020
SECURITIES
Adjustment to carrying value of equity securities with no readily determinable fair value		$ 165
Carrying value of securities pledged to secure public and trust deposits	$ 353,338		$ 308,064
Illinois
SECURITIES
Percentage of obligations of local municipalities	46.00%
Percentage of general obligations in local municipalities	95.00%

ACQUISITIONS (Details) - USD ($)		12 Months Ended
ACQUISITIONS (Details) - USD ($)	Oct. 01, 2021	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019	Dec. 31, 2018
Business Acquisition [Line Items]
Total assets		$ 4,314,254,000	$ 3,666,567,000
Loans, net of allowance for loan losses		2,475,753,000	2,215,168,000
Total deposits		3,738,185,000	3,130,534,000
Goodwill		29,322,000	$ 23,620,000	$ 23,620,000	$ 23,620,000
NXT Bancorporation, Inc
Business Acquisition [Line Items]
Percentage of voting interests acquired	100.00%
Stock consideration per share	67.6783
Cash consideration per share	$ 400
Share Price	$ 16.27
Goodwill	$ 5,702,000
Cash consideration	10,633,000
Market value of shares issued as part of consideration	$ 29,270,000
Stock consideration (number of shares)	1,799,016
Business Combination, Consideration Transferred	$ 39,903,000
pre-tax acquisition expenses		$ 1,416,000

STOCK-BASED COMPENSATION PLANS - Summary of assumptions used (Details) - Stock Appreciation Rights	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Risk-free interest rate	1.40%	0.80%
Expected volatility	35.52%	34.72%
Expected life (in years)	7 years 8 months 12 days	8 years 8 months 12 days
Expected dividend yield	3.20%	3.96%

JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS - Interest rate and maturities (Details) - Junior Subordinated Debentures Issued	24 Months Ended
	Dec. 31, 2021	Dec. 31, 2020
Heartland Bancorp, Inc. Capital Trust B
SUBORDINATED NOTES
Interest Rate	2.87%	2.99%
Heartland Bancorp, Inc. Capital Trust B \| LIBOR
SUBORDINATED NOTES
Spread on interest rate basis	2.75%
Heartland Bancorp, Inc. Capital Trust C
SUBORDINATED NOTES
Interest Rate	1.73%	1.75%
Heartland Bancorp, Inc. Capital Trust C \| LIBOR
SUBORDINATED NOTES
Spread on interest rate basis	1.53%
Heartland Bancorp, Inc. Capital Trust D
SUBORDINATED NOTES
Interest Rate	1.55%	1.57%
Heartland Bancorp, Inc. Capital Trust D \| LIBOR
SUBORDINATED NOTES
Spread on interest rate basis	1.35%
FFBI Capital Trust I
SUBORDINATED NOTES
Interest Rate	2.92%	3.04%
FFBI Capital Trust I \| LIBOR
SUBORDINATED NOTES
Spread on interest rate basis	2.80%
National Bancorp Statutory Trust I
SUBORDINATED NOTES
Interest Rate	3.10%	3.12%
National Bancorp Statutory Trust I \| LIBOR
SUBORDINATED NOTES
Spread on interest rate basis	2.90%

CONSOLIDATED STATEMENTS OF CHANGES IN STOCKHOLDERS' EQUITY (Parenthetical) - $ / shares	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
Stock Transactions, Parenthetical Disclosures [Abstract]
Repurchase of common stock (in shares)	290,486
Cash dividends	$ 0.60	$ 0.60	$ 12.48
Issuance of common stock (in shares)			9,429,794
Issuance of common stock upon vesting of restricted stock units (in shares)	20,225
Cancelation of treasury stock (in shares)			124,228
NXT Bancorporation, Inc
Stock Transactions, Parenthetical Disclosures [Abstract]
Issuance of common stock (in shares)	1,799,016

SECURITIES - Amortized cost and Fair values of securities with maturities (Details) - USD ($) $ in Thousands	Dec. 31, 2021	Dec. 31, 2020
Amortized Cost
Amortized Cost	$ 938,360	$ 899,700
Fair Value
Fair Value	942,168	922,869
Amortized Cost
Debt securities held-to-maturity	336,185	68,395
Fair Value
Fair Value	336,027	72,441
Mortgage-backed: Agency residential
Amortized Cost
Amortized Cost	178,236	198,543
Fair Value
Fair Value	179,466	203,252
Amortized Cost
Debt securities held-to-maturity	20,555	13,031
Fair Value
Fair Value	20,649	13,483
Mortgage-backed: Agency commercial
Amortized Cost
Amortized Cost	164,875	246,649
Fair Value
Fair Value	164,061	250,766
Amortized Cost
Debt securities held-to-maturity	287,615	32,880
Fair Value
Fair Value	286,563	$ 35,084
Available-for-sale
Amortized Cost
Due in 1 year or less	33,315
Due after 1 year through 5 years	110,975
Due after 5 years through 10 years	332,565
Due after 10 years	118,394
Amortized Cost	938,360
Fair Value
Due in 1 year or less	33,640
Due after 1 year through 5 years	113,251
Due after 5 years through 10 years	332,954
Due after 10 years	118,796
Fair Value	942,168
Available-for-sale \| Mortgage-backed: Agency residential
Amortized Cost
Amortized Cost	178,236
Fair Value
Fair Value	179,466
Available-for-sale \| Mortgage-backed: Agency commercial
Amortized Cost
Amortized Cost	164,875
Fair Value
Fair Value	164,061
Held-to-maturity
Amortized Cost
Due in 1 year or less	2,394
Due after 1 year through 5 years	15,887
Due after 5 years through 10 years	9,343
Due after 10 years	391
Debt securities held-to-maturity	336,185
Fair Value
Due in 1 year or less	2,410
Due after 1 year through 5 years	16,417
Due after 5 years through 10 years	9,587
Due after 10 years	401
Fair Value	336,027
Held-to-maturity \| Mortgage-backed: Agency residential
Amortized Cost
Debt securities held-to-maturity	20,555
Fair Value
Fair Value	20,649
Held-to-maturity \| Mortgage-backed: Agency commercial
Amortized Cost
Debt securities held-to-maturity	287,615
Fair Value
Fair Value	$ 286,563

DEPOSITS - Interest expense on Deposits (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
DEPOSITS
Interest-bearing demand	$ 518	$ 647	$ 1,474
Money market	437	697	1,837
Savings	188	196	278
Time	1,329	2,681	4,343
Total interest expense on deposits	$ 2,472	$ 4,221	$ 7,932

FORECLOSED ASSETS - Activity (Details) - USD ($) $ in Thousands	12 Months Ended
	Dec. 31, 2021	Dec. 31, 2020	Dec. 31, 2019
FORECLOSED ASSETS
Beginning balance	$ 4,168	$ 5,099	$ 9,559
Transfers from loans	4,857	1,074	2,520
Capitalized improvements		6	41
Proceeds from sales	(5,805)	(2,079)	(5,460)
Sales through loan origination	(252)	(67)	(2,046)
Net gain (loss) on sales	505	348	1,048
Direct write-downs	(195)	(213)	(563)
Ending balance	$ 3,278	$ 4,168	$ 5,099

BANK PREMISES AND EQUIPMENT

12 Months Ended

Dec. 31, 2021

BANK PREMISES AND EQUIPMENT

BANK PREMISES AND EQUIPMENT

NOTE 7 – BANK PREMISES AND EQUIPMENT

Bank premises and equipment are stated at cost less accumulated depreciation as of December 31 as follows:


	December 31, 2021		December 31, 2020

	(dollars in thousands)
Land, buildings, and improvements	$	77,180	$	75,790
Furniture, fixtures, and equipment		24,199		23,035
Total bank premises and equipment		101,379		98,825
Less accumulated depreciation		48,896		45,921
Total bank premises and equipment, net	$	52,483	$	52,904

Depreciation expense by category for the years ended December 31 is as follows:


	Year Ended December 31,
	2021		2020		2019

	(dollars in thousands)
Buildings and improvements	$	1,694	$	1,761	$	1,813
Furniture, fixtures, and equipment		1,380		1,180		896
Total depreciation expense	$	3,074	$	2,941	$	2,709

During 2021, six branch locations were closed or consolidated as part of a branch rationalization plan. The related bank premises were transferred to held for sale based on the lower of the carrying value or fair value, less estimated costs to sell. As of December 31, 2021 and 2020, bank premises held for sale totaled $1,452,000 and $121,000, respectively. During the year ended December 31, 2021, there were impairment losses of $661,000 on bank premises held for sale included in gains (losses) on other assets in the consolidated statements of income. During the year ended December 31, 2020, there were no impairment losses on bank premises held for sale. During the year ended December 31, 2019, there were impairment losses of $37,000 on bank premises held for sale included in gains (losses) on other assets in the consolidated statements of income