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UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT PURSUANT TO

SECTION 13 OR 15(d) OF THE

SECURITIES EXCHANGE ACT OF 1934

Date of report (Date of earliest event reported): October 24, 2022

HBT FINANCIAL, INC.

(Exact name of registrant as specified in its charter)

Delaware

001-39085

37-1117216

(State or other jurisdiction
of incorporation)

(Commission File Number)

(IRS Employer
Identification Number)

401 North Hershey Road
Bloomington, Illinois

61704

(Address of principal executive
offices)

(Zip Code)

(888897-2276

(Registrant’s telephone number, including area code)

N/A

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

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

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

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

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

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

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

Title of each class

Trading Symbol(s)

Name of each exchange on which registered

Common Stock, par value $0.01 per share

HBT

The Nasdaq Stock Market LLC

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

Emerging growth company

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

Item 2.02 Results of Operations and Financial Condition.

On October 24, 2022, HBT Financial, Inc. (the “Company”) issued a press release announcing its financial results for the third quarter ended September 30, 2022 (the “Earnings Release”). A copy of the Earnings Release is furnished as Exhibit 99.1 to this Current Report on Form 8-K (this “Report”).

The information contained in Item 2.02, including Exhibit 99.1 furnished herewith, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act of 1933, as amended (the “Securities Act”), or into any filing or other document pursuant to the Exchange Act, except to the extent required by applicable law or regulation.

Item 7.01 Regulation FD Disclosure.

The Company has prepared a presentation of its results for the third quarter ended September 30, 2022 (the “Presentation”) to be used from time to time during meetings with members of the investment community. A copy of the Presentation is furnished as Exhibit 99.2 to this Report. The Presentation will also be made available on the Company’s investor relations website at ir.hbtfinancial.com under the Presentations section.

The information contained in Item 7.01, including Exhibit 99.2 furnished herewith, shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities under that section, nor shall it be deemed incorporated by reference into any registration statement or other document pursuant to the Securities Act, or into any filing or other document pursuant to the Exchange Act, except to the extent required by applicable law or regulation.

Item 9.01. Financial Statements and Exhibits.

Exhibit Number

Description of Exhibit

99.1

Earnings Release issued October 24, 2022 for the Third Quarter Ended September 30, 2022.

99.2

HBT Financial, Inc. Presentation of Results for the Third Quarter Ended September 30, 2022.

104

Cover Page Interactive Data File (embedded within the Inline XBRL document).

SIGNATURES

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

HBT FINANCIAL, INC.

By:

/s/ Matthew J. Doherty

Name: Matthew J. Doherty

Title: Chief Financial Officer

Date: October 24, 2022

EXHIBIT 99.1

Graphic

HBT FINANCIAL, INC. ANNOUNCES

THIRD QUARTER 2022 FINANCIAL RESULTS

Third Quarter Highlights

Net income of $15.6 million, or $0.54 per diluted share; return on average assets (ROAA) of 1.47%; return on average stockholders' equity (ROAE) of 16.27%; and return on average tangible common equity (ROATCE)(1) of 17.70%
Adjusted net income(1) of $15.9 million; or $0.55 per diluted share; adjusted ROAA(1) of 1.49%; adjusted ROAE(1) of 16.51%; and adjusted ROATCE(1) of 17.96%
Asset quality remained strong with nonperforming assets to total assets of 0.14%
Cost of total deposits remained low at 0.06%

(1)

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

Bloomington, IL, October 24, 2022 – HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $15.6 million, or $0.54 diluted earnings per share, for the third quarter of 2022. This compares to net income of $14.1 million, or $0.49 diluted earnings per share, for the second quarter of 2022, and net income of $13.7 million, or $0.50 diluted earnings per share, for the third quarter of 2021.

Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “We delivered another strong financial performance in the third quarter with earnings increasing from the prior quarter, while we continued to maintain exceptional asset quality and strong capital ratios. We generated our strongest loan growth of the year which enabled us to drive further improvement in our mix of earning assets. Combined with stable deposit costs, this resulted in significant expansion in our net interest margin. While continuing to generate strong financial results, we signed a merger agreement with Town and Country Financial Corporation (“Town and Country”) that we believe will create additional long-term value for shareholders. The transaction remains on track to close during the first quarter of 2023, and we look forward to welcoming our new customers and colleagues, and capitalizing on our expanded footprint in Illinois that we believe will enhance our ability to continue generating profitable growth in the years to come.”


HBT Financial, Inc.

Page 2 of 16

Adjusted Net Income

In addition to reporting GAAP results, the Company believes adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on sale of closed branch premises, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $15.9 million, or $0.55 adjusted diluted earnings per share, for the third quarter of 2022. This compares to adjusted net income of $13.8 million, or $0.48 adjusted diluted earnings per share, for the second quarter of 2022, and adjusted net income of $14.5 million, or $0.53 adjusted diluted earnings per share, for the third quarter of 2021 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2022 was $37.4 million, an increase of 8.8% from $34.4 million for the second quarter of 2022. The increase was primarily attributable to higher yields on interest-earning assets, with the yield on loans increasing 27 basis points to 4.91%, and stable deposit costs, with cost of total deposits only increasing 1 basis point to 0.06%. Paycheck Protection Program (“PPP”) loan fees recognized as loan interest income totaled $0.1 million during the third quarter of 2022 and $0.6 million during the second quarter of 2022.

Relative to the third quarter of 2021, net interest income increased 21.7% from $30.7 million. The increase was primarily attributable to higher average balances of interest-earning assets following the NXT Bancorporation, Inc. (“NXT”) acquisition in the fourth quarter of 2021, a more favorable asset mix, and higher yields on interest-earning assets. PPP loan fees recognized as loan interest income totaled $3.0 million during the third quarter of 2021.

Net interest margin for the third quarter of 2022 was 3.65%, compared to 3.34% for the second quarter of 2022. The increase was primarily attributable to higher yields on interest-earning assets. The contribution of PPP loan fees to net interest margin was 1 basis point during the third quarter of 2022 and 6 basis points during the second quarter of 2022. Additionally, the contribution of acquired loan discount accretion to net interest margin was 2 basis points during the third quarter of 2022 and 3 basis points during the second quarter of 2022.

Relative to the third quarter of 2021, net interest margin increased from 3.18%. This increase was primarily attributable to a more favorable mix of interest-earning assets and higher yields on interest-earning assets. PPP loan fees recognized as loan interest income contributed 31 basis points to net interest margin and acquired loan discount accretion contributed 2 basis points to net interest margin during the third quarter of 2021.

Noninterest Income

Noninterest income for the third quarter of 2022 was $8.2 million, a decrease of 3.7% from $8.6 million for the second quarter of 2022. The decrease was primarily attributable to a $0.3 million decrease in wealth management fees, due to a decline in assets under management resulting from the 2022 market performance, and a $0.1 million decrease in card income due to lower debit and credit card transaction volume.

Relative to the third quarter of 2021, noninterest income decreased 1.9% from $8.4 million. A $0.9 million decrease in gains on sale of mortgage loans resulting from a lower level of mortgage refinancing activity was mostly offset by a $0.6 million improvement to gains (losses) on other assets, as the 2021 results included impairment losses of $0.6 million related to branches closed during 2021.


HBT Financial, Inc.

Page 3 of 16

Noninterest Expense

Noninterest expense for the third quarter of 2022 was $24.0 million, a slight increase from $23.8 million for the second quarter of 2022. Decreases in data processing and marketing expenses were mostly offset by an increase in other noninterest expense, primarily resulting from legal and professional fees related to the pending acquisition of Town and Country.

Relative to the third quarter of 2021, noninterest expense increased 8.3% from $22.2 million. The increase was primarily attributable to a higher base level of noninterest expense following the NXT acquisition, primarily related to personnel costs and branch operations expenses.

Loan Portfolio

Total loans outstanding, before allowance for loan losses, were $2.58 billion at September 30, 2022, compared with $2.45 billion at June 30, 2022 and $2.15 billion at September 30, 2021. The $128.1 million increase in total loans from June 30, 2022 was primarily attributable to broad growth in all of our geographic markets and a moderation in payoffs and prepayments.

Deposits

Total deposits were $3.64 billion at September 30, 2022, compared with $3.70 billion at June 30, 2022 and $3.42 billion at September 30, 2021. The $58.5 million decrease from June 30, 2022 was primarily attributable to lower balances maintained in retail accounts and a seasonal decrease in public fund accounts following annual real estate tax collections.

Asset Quality

Nonperforming loans totaled $3.2 million, or 0.12% of total loans, at September 30, 2022, compared with $3.4 million, or 0.14% of total loans, at June 30, 2022, and $5.5 million, or 0.26% of total loans, at September 30, 2021.

The Company recorded a provision for loan losses of $0.4 million for the third quarter of 2022, compared to $0.1 million for the second quarter of 2022. The provision was primarily due to the increase in loans during the third quarter of 2022, resulting in a $1.1 million increase in required reserves, and a decrease in specific reserves on loans individually evaluated for impairment, resulting in a $0.7 million decrease in required reserves.

The Company had net charge-offs of $0.1 million, or 0.01% of average loans on an annualized basis, for the third quarter of 2022, compared to net recoveries of $0.1 million, or (0.01)% of average loans on an annualized basis, for the second quarter of 2022, and net recoveries of $21 thousand, or less than 1 basis point of average loans on an annualized basis, for the third quarter of 2021.

The Company’s allowance for loan losses was 0.97% of total loans and 781.66% of nonperforming loans at September 30, 2022, compared with 1.01% of total loans and 721.11% of nonperforming loans at June 30, 2022.


HBT Financial, Inc.

Page 4 of 16

Capital

At September 30, 2022, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:

Well Capitalized

Regulatory

September 30, 2022

Requirements

Total capital to risk-weighted assets

16.34

%  

10.00

%

Tier 1 capital to risk-weighted assets

14.26

%  

8.00

%

Common equity tier 1 capital ratio

13.08

%  

6.50

%

Tier 1 leverage ratio

10.44

%  

5.00

%

Total stockholders' equity to total assets

8.52

%

N/A

Tangible common equity to tangible assets (1)

7.85

%  

N/A


(1)

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

Stock Repurchase Program

During the third quarter of 2022, the Company repurchased 78,571 shares of its common stock at a weighted average price of $18.22 under its stock repurchase program. The stock repurchase program has been paused until completion of the vote of Town and Country’s shareholders on the merger. The Company’s Board of Directors authorized the repurchase of up to $15 million of its common stock under its stock repurchase program in effect until January 1, 2023. As of September 30, 2022, the Company had $10.2 million remaining under the current stock repurchase authorization.

Pending Acquisition of Town and Country

On August 23, 2022, HBT and Town and Country, the holding company for Town and Country Bank, jointly announced the signing of a definitive agreement pursuant to which HBT will acquire Town and Country and Town and Country Bank. The acquisition will further enhance HBT’s footprint in Central Illinois as well as expand HBT’s footprint into metro-east St. Louis. Acquisition-related expenses were $0.5 million during the third quarter of 2022.

About HBT Financial, Inc.

HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. HBT 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 through 58 full-service branches. As of September 30, 2022, HBT had total assets of $4.2 billion, total loans of $2.6 billion, and total deposits of $3.6 billion.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), tangible common equity to tangible assets, tangible book value per share, return on average tangible common equity, adjusted net income, adjusted earnings per share, adjusted return on average assets, adjusted return on average stockholders' equity, and adjusted return on average tangible common equity. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the "Reconciliation of Non-GAAP Financial Measures" tables.


HBT Financial, Inc.

Page 5 of 16

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release contains, and future oral and written statements of the Company and its management may contain, "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or “should,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics (including the COVID-19 pandemic in the United States), acts of war or other threats thereof, or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB or the PCAOB; (iv) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of LIBOR phase-out); (vi) increased competition in the financial services sector and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) the possibility that stockholders of Town and Country may not approve the merger agreement; (xiv) the risk that a condition to closing of the proposed transaction may not be satisfied, that either party may terminate the merger agreement or that the closing of the proposed transaction might be delayed or not occur at all; (xv) potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction; (xvi) the diversion of management time on transaction-related issues; (xvii) the ultimate timing, outcome and results of integrating the operations of Town and Country into those of HBT; (xviii) the effects of the merger on HBT’s future financial condition, results of operations, strategy and plans; (xix) regulatory approvals of the transaction; and (xx) the ability of the Company to manage the risks associated with the foregoing. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission (the “SEC”).


HBT Financial, Inc.

Page 6 of 16

Important Information and Where to Find It

In connection with the proposed transaction, HBT and Town and Country filed materials with the SEC, including a Registration Statement on Form S-4 of HBT that includes a proxy statement of Town and Country and a prospectus of HBT. After the Registration Statement is declared effective by the SEC, HBT and Town and Country intend to mail a definitive proxy statement/prospectus to the stockholders of Town and Country. This press release is not a substitute for the proxy statement/prospectus or the Registration Statement or for any other document that HBT or Town and Country may file with the SEC and send to Town and Country’s stockholders in connection with the proposed transaction. TOWN AND COUNTRY’S STOCKHOLDERS ARE URGED TO CAREFULLY AND THOROUGHLY READ THE PROXY STATEMENT/PROSPECTUS AND THE REGISTRATION STATEMENT, AS MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS FILED BY HBT OR TOWN AND COUNTRY WITH THE SEC, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT HBT, TOWN AND COUNTRY, THE PROPOSED TRANSACTION, THE RISKS RELATED THERETO AND RELATED MATTERS.

Investors will be able to obtain free copies of the Registration Statement and proxy statement/prospectus, as each may be amended from time to time, and other relevant documents filed by HBT and Town and Country with the SEC (when they become available) through the website maintained by the SEC at www.sec.gov. Copies of documents filed with the SEC by HBT will be available free of charge from HBT’s website at https://ir.hbtfinancial.com or by contacting HBT’s Investor Relations Department at HBTIR@hbtbank.com.

Participants in the Proxy Solicitation

HBT, Town and Country and their respective directors and certain of their executive officers and other members of management and employees may be deemed, under SEC rules, to be participants in the solicitation of proxies from Town and Country’s stockholders in connection with the proposed transaction. Information regarding the executive officers and directors of HBT is included in its definitive proxy statement for its 2022 annual meeting filed with the SEC on April 5, 2022. Information regarding the executive officers and directors of Town and Country and additional information regarding the persons who may be deemed participants and their direct and indirect interests, by security holdings or otherwise, will be set forth in the Registration Statement and proxy statement/prospectus and other materials when they are filed with the SEC in connection with the proposed transaction. Free copies of these documents may be obtained as described in the paragraphs above.

No Offer or Solicitation

This press release does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities or a solicitation of any vote or approval with respect to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

CONTACT:

Tony Rossi

HBTIR@hbtbank.com

(310) 622-8221


HBT Financial, Inc.

Page 7 of 16

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Consolidated Statements of Income

Three Months Ended

Nine Months Ended

September 30, 

June 30, 

September 30, 

September 30, 

    

2022

    

2022

    

2021

    

2022

    

2021

INTEREST AND DIVIDEND INCOME

(dollars in thousands, except per share data)

Loans, including fees:

Taxable

$

29,855

$

27,843

$

25,604

$

84,504

$

76,016

Federally tax exempt

842

679

572

2,183

1,722

Securities:

Taxable

6,635

5,663

4,632

16,947

12,323

Federally tax exempt

1,207

1,138

1,103

3,385

3,383

Interest-bearing deposits in bank

458

420

190

1,037

385

Other interest and dividend income

17

14

14

50

39

Total interest and dividend income

39,014

35,757

32,115

108,106

93,868

INTEREST EXPENSE

Deposits

587

506

564

1,662

1,821

Securities sold under agreements to repurchase

9

8

8

26

23

Borrowings

85

1

1

87

2

Subordinated notes

470

469

470

1,409

1,409

Junior subordinated debentures issued to capital trusts

473

400

357

1,231

1,069

Total interest expense

1,624

1,384

1,400

4,415

4,324

Net interest income

37,390

34,373

30,715

103,691

89,544

PROVISION FOR LOAN LOSSES

386

145

(1,667)

(53)

(7,234)

Net interest income after provision for loan losses

37,004

34,228

32,382

103,744

96,778

NONINTEREST INCOME

Card income

2,569

2,714

2,509

7,687

7,216

Wealth management fees

2,059

2,322

2,036

6,670

6,013

Service charges on deposit accounts

1,927

1,792

1,677

5,371

4,364

Mortgage servicing

697

661

699

2,016

2,095

Mortgage servicing rights fair value adjustment

351

366

40

2,446

1,425

Gains on sale of mortgage loans

354

326

1,257

1,267

4,919

Unrealized gains (losses) on equity securities

(107)

(153)

28

(447)

74

Gains (losses) on foreclosed assets

(225)

(7)

(14)

(192)

126

Gains (losses) on other assets

(31)

(43)

(672)

119

(719)

Income on bank owned life insurance

41

41

122

Other noninterest income

599

532

832

1,769

2,461

Total noninterest income

8,234

8,551

8,392

26,828

27,974

NONINTEREST EXPENSE

Salaries

12,752

12,936

11,835

38,489

36,486

Employee benefits

1,771

1,984

1,455

6,199

4,549

Occupancy of bank premises

1,979

1,741

1,610

5,780

5,011

Furniture and equipment

668

623

657

1,843

1,883

Data processing

1,631

1,990

1,767

5,274

5,176

Marketing and customer relations

880

1,205

883

2,936

2,291

Amortization of intangible assets

243

245

252

733

799

FDIC insurance

302

298

279

888

763

Loan collection and servicing

336

278

400

771

1,098

Foreclosed assets

97

31

242

260

704

Other noninterest expense

3,339

2,511

2,787

8,824

8,105

Total noninterest expense

23,998

23,842

22,167

71,997

66,865

INCOME BEFORE INCOME TAX EXPENSE

21,240

18,937

18,607

58,575

57,887

INCOME TAX EXPENSE

5,613

4,852

4,892

15,259

15,210

NET INCOME

$

15,627

$

14,085

$

13,715

$

43,316

$

42,677

EARNINGS PER SHARE - BASIC

$

0.54

$

0.49

$

0.50

$

1.50

$

1.56

EARNINGS PER SHARE - DILUTED

$

0.54

$

0.49

$

0.50

$

1.49

$

1.56

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING

28,787,662

28,891,202

27,340,926

28,887,757

27,377,809


HBT Financial, Inc.

Page 8 of 16

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Consolidated Balance Sheets

    

September 30, 

June 30, 

   

September 30, 

    

2022

    

2022

    

2021

(dollars in thousands)

ASSETS

Cash and due from banks

$

22,169

$

25,478

$

36,508

Interest-bearing deposits with banks

56,046

134,553

435,421

Cash and cash equivalents

78,215

160,031

471,929

Debt securities available-for-sale, at fair value

853,740

924,706

896,218

Debt securities held-to-maturity

546,694

548,236

318,730

Equity securities with readily determinable fair value

2,996

3,103

3,366

Equity securities with no readily determinable fair value

1,977

1,952

1,867

Restricted stock, at cost

4,050

2,813

2,739

Loans held for sale

2,297

5,312

8,582

Loans, before allowance for loan losses

2,579,928

2,451,826

2,147,812

Allowance for loan losses

(25,060)

(24,734)

(24,861)

Loans, net of allowance for loan losses

2,554,868

2,427,092

2,122,951

Bank owned life insurance

7,515

7,474

Bank premises and equipment, net

50,854

51,433

49,337

Bank premises held for sale

281

319

1,462

Foreclosed assets

2,637

2,891

7,315

Goodwill

29,322

29,322

23,620

Core deposit intangible assets, net

1,210

1,453

1,999

Mortgage servicing rights, at fair value

10,440

10,089

7,359

Investments in unconsolidated subsidiaries

1,165

1,165

1,165

Accrued interest receivable

16,881

14,263

13,376

Other assets

48,182

32,324

16,211

Total assets

$

4,213,324

$

4,223,978

$

3,948,226

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Deposits:

Noninterest-bearing

$

1,017,710

$

1,028,790

$

1,003,723

Interest-bearing

2,625,733

2,673,196

2,415,833

Total deposits

3,643,443

3,701,986

3,419,556

Securities sold under agreements to repurchase

48,130

51,091

47,957

Federal Home Loan Bank advances

60,000

Subordinated notes

39,376

39,356

39,297

Junior subordinated debentures issued to capital trusts

37,763

37,747

37,698

Other liabilities

25,539

19,989

24,897

Total liabilities

3,854,251

3,850,169

3,569,405

Stockholders' Equity

Common stock

293

293

275

Surplus

222,436

222,087

191,413

Retained earnings

223,495

212,506

184,919

Accumulated other comprehensive income (loss)

(77,462)

(52,820)

4,537

Treasury stock at cost

(9,689)

(8,257)

(2,323)

Total stockholders’ equity

359,073

373,809

378,821

Total liabilities and stockholders’ equity

$

4,213,324

$

4,223,978

$

3,948,226

SHARE INFORMATION

Shares of common stock outstanding

28,752,626

28,831,197

27,334,428


HBT Financial, Inc.

Page 9 of 16

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

    

September 30, 

June 30, 

   

September 30, 

    

2022

    

2022

    

2021

(dollars in thousands)

LOANS

Commercial and industrial

$

240,671

$

249,839

$

261,763

Agricultural and farmland

245,234

230,370

229,718

Commercial real estate - owner occupied

226,524

228,997

203,096

Commercial real estate - non-owner occupied

718,089

656,093

579,860

Multi-family

260,630

269,452

215,245

Construction and land development

364,290

332,041

232,291

One-to-four family residential

328,667

325,047

294,612

Municipal, consumer, and other

195,823

159,987

131,227

Loans, before allowance for loan losses

$

2,579,928

$

2,451,826

$

2,147,812

PPP LOANS (included above)

Commercial and industrial

$

65

$

2,823

$

55,374

Agricultural and farmland

9

3,462

Municipal, consumer, and other

985

Total PPP Loans

$

65

$

2,832

$

59,821

September 30, 

June 30, 

   

September 30, 

    

2022

    

2022

    

2021

(dollars in thousands)

DEPOSITS

Noninterest-bearing

$

1,017,710

$

1,028,790

$

1,003,723

Interest-bearing demand

1,131,284

1,162,292

1,013,678

Money market

584,202

581,058

519,343

Savings

641,139

654,953

611,050

Time

269,108

274,893

271,762

Total deposits

$

3,643,443

$

3,701,986

$

3,419,556


HBT Financial, Inc.

Page 10 of 16

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Three Months Ended

 

 

September 30, 2022

 

June 30, 2022

 

September 30, 2021

    

Average

    

    

    

Average

    

    

    

Average

    

    

 

Balance

Interest

 

Yield/Cost *

 

Balance

Interest

 

Yield/Cost *

 

Balance

Interest

 

Yield/Cost *

 

(dollars in thousands)

ASSETS

Loans

$

2,481,920

$

30,697

 

4.91

%  

$

2,467,851

$

28,522

 

4.64

%  

$

2,135,476

$

26,176

 

4.86

%

Securities

 

1,470,092

 

7,842

 

2.12

 

1,422,096

6,801

 

1.92

 

1,180,513

 

5,735

 

1.93

Deposits with banks

 

105,030

 

458

 

1.73

 

240,692

420

 

0.70

 

513,158

 

190

 

0.15

Other

 

2,936

 

17

 

2.25

 

2,809

14

 

2.07

 

2,739

 

14

 

2.00

Total interest-earning assets

 

4,059,978

$

39,014

 

3.81

%  

 

4,133,448

$

35,757

 

3.47

%  

 

3,831,886

$

32,115

 

3.33

%

Allowance for loan losses

 

(24,717)

 

(24,579)

 

(26,470)

Noninterest-earning assets

 

173,461

 

177,433

 

159,635

Total assets

$

4,208,722

$

4,286,302

$

3,965,051

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Interest-bearing deposits:

Interest-bearing demand

$

1,137,072

$

144

 

0.05

%  

$

1,159,077

$

144

 

0.05

%  

$

1,020,216

$

129

 

0.05

%

Money market

 

577,388

 

203

 

0.14

 

582,016

 

110

 

0.08

 

510,183

 

96

 

0.07

Savings

 

649,752

 

53

 

0.03

 

661,661

 

52

 

0.03

 

608,436

 

48

 

0.03

Time

 

271,870

 

187

 

0.27

 

284,880

 

200

 

0.28

 

275,224

 

291

 

0.42

Total interest-bearing deposits

 

2,636,082

 

587

 

0.09

 

2,687,634

 

506

 

0.08

 

2,414,059

 

564

 

0.09

Securities sold under agreements to repurchase

 

50,427

 

9

 

0.07

 

51,057

8

 

0.07

 

49,923

 

8

 

0.06

Borrowings

 

11,967

 

85

 

2.80

 

440

1

 

1.34

 

326

 

1

 

0.46

Subordinated notes

39,365

470

4.73

39,346

469

4.79

39,285

470

4.74

Junior subordinated debentures issued to capital trusts

 

37,755

 

473

 

4.97

 

37,738

400

 

4.26

 

37,688

 

357

 

3.76

Total interest-bearing liabilities

 

2,775,596

$

1,624

 

0.23

%  

 

2,816,215

$

1,384

 

0.20

%  

 

2,541,281

$

1,400

 

0.22

%

Noninterest-bearing deposits

 

1,031,407

 

  

 

1,072,883

 

  

 

  

 

1,016,384

 

  

 

  

Noninterest-bearing liabilities

 

20,736

 

  

 

18,673

 

  

 

  

 

26,523

 

  

 

  

Total liabilities

 

3,827,739

 

  

 

3,907,771

 

  

 

  

 

3,584,188

 

  

 

  

Stockholders' Equity

 

380,983

 

  

 

378,531

 

  

 

  

 

380,863

 

  

 

  

Total liabilities and stockholders’ equity

$

4,208,722

 

  

$

4,286,302

 

  

 

  

$

3,965,051

 

  

 

  

Net interest income/Net interest margin (1)

$

37,390

3.65

%  

$

34,373

 

3.34

%  

$

30,715

 

3.18

%  

Tax-equivalent adjustment (2)

 

674

0.07

 

598

 

0.05

 

508

 

0.05

Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3)

$

38,064

3.72

%  

 

$

34,971

 

3.39

%  

 

$

31,223

 

3.23

%  

Net interest rate spread (4)

 

 

3.58

%  

 

  

 

  

 

3.27

%  

 

  

 

  

 

3.11

%  

Net interest-earning assets (5)

$

1,284,382

  

$

1,317,233

 

  

 

  

$

1,290,605

 

  

 

  

Ratio of interest-earning assets to interest-bearing liabilities

 

1.46

 

  

 

1.47

 

  

 

  

 

1.51

 

  

 

  

Cost of total deposits

 

 

0.06

%  

 

  

 

  

 

0.05

%  

 

  

 

  

 

0.07

%  


*       Annualized measure.

(1)Net interest margin represents net interest income divided by average total interest-earning assets.
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3)See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
(4)Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5)Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.


HBT Financial, Inc.

Page 11 of 16

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Nine Months Ended

 

September 30, 2022

 

September 30, 2021

    

Average

    

    

    

Average

    

    

 

Balance

Interest

 

Yield/Cost *

 

Balance

Interest

 

Yield/Cost *

 

(dollars in thousands)

ASSETS

Loans

$

2,485,501

$

86,687

 

4.66

%  

$

2,217,463

$

77,738

 

4.69

%

Securities

 

1,405,245

 

20,332

 

1.93

 

1,102,808

15,706

 

1.90

Deposits with banks

 

237,646

 

1,037

 

0.58

 

432,971

385

 

0.12

Other