0000775215false00007752152023-07-242023-07-24

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): July 24, 2023

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 July 24, 2023, HBT Financial, Inc. (the “Company”) issued a press release announcing its financial results for the second quarter ended and six months ended June 30, 2023 (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 second quarter ended June 30, 2023 (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 July 24, 2023 for the Second Quarter Ended and Six Months Ended June 30, 2023.

99.2

HBT Financial, Inc. Presentation of Results for the Second Quarter Ended June 30, 2023.

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/ Peter R. Chapman

Name: Peter R. Chapman

Title: Chief Financial Officer

Date: July 24, 2023

EXHIBIT 99.1

Graphic

HBT FINANCIAL, INC. ANNOUNCES

SECOND QUARTER 2023 FINANCIAL RESULTS

Second Quarter Highlights

Net income of $18.5 million, or $0.58 per diluted share; return on average assets (ROAA) of 1.49%; return on average stockholders' equity (ROAE) of 16.30%; and return on average tangible common equity (ROATCE)(1) of 19.91%
Adjusted net income(1) of $18.8 million; or $0.58 per diluted share; adjusted ROAA(1) of 1.51%; adjusted ROAE(1) of 16.57%; and adjusted ROATCE(1) of 20.23%
Asset quality remained strong with nonperforming assets to total assets of 0.21%
Net interest margin of 4.16% and net interest margin (tax equivalent basis)(1) of 4.22%

(1)

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

Bloomington, IL, July 24, 2023 – 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 $18.5 million, or $0.58 diluted earnings per share, for the second quarter of 2023. This compares to net income of $9.2 million, or $0.30 diluted earnings per share, for the first quarter of 2023, and net income of $14.1 million, or $0.49 diluted earnings per share, for the second quarter of 2022.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “I had the honor of being named CEO of HBT Financial and Heartland Bank and Trust Company during the second quarter. I look forward to continuing to work closely with Fred Drake, Executive Chairman; the rest of Board of Directors; and our executive team to deliver the consistently solid financial performance to which we are accustomed. I am very pleased with our financial performance for the second quarter of 2023. With a ROAA of 1.49% and a ROATCE of 19.91%, we continue to produce strong returns. Our granular deposit base and excellent credit quality continue to support our strong results. Although we continue to see pressure on deposit pricing, we were able to maintain a solid net interest margin of 4.16%, down only 4 basis points from last quarter. We completed our system conversion for our Town and Country Financial Corporation (“Town and Country”) acquisition and have fully integrated the Town and Country team. We look forward to recognizing the enhanced long-term value provided by the increased scale and new markets that this acquisition has provided.”


HBT Financial, Inc.

Page 2 of 15

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 $18.8 million, or $0.58 adjusted diluted earnings per share, for the second quarter of 2023. This compares to adjusted net income of $19.9 million, or $0.64 adjusted diluted earnings per share, for the first quarter of 2023, and adjusted net income of $13.8 million, or $0.48 adjusted diluted earnings per share, for the second quarter of 2022 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2023 was $48.9 million, an increase of 4.3% from $46.8 million for the first quarter of 2023. The increase was primarily attributable to the increase in earning assets following the Town and Country merger completed on February 1, 2023 and higher yields on interest-earning assets. Partially offsetting this improvement was an increase in funding costs.

Relative to the second quarter of 2022, net interest income increased 42.2% from $34.4 million. The increase was primarily attributable to higher yields on interest-earning assets and the increase in average interest-earning assets following the Town and Country merger.

Net interest margin for the second quarter of 2023 was 4.16%, compared to 4.20% for the first quarter of 2023, and net interest margin (tax equivalent basis) for the second quarter of 2023 was 4.22% compared to 4.26% for the first quarter of 2023. The decrease was primarily attributable to higher funding costs with the cost of funds increasing to 0.71% for the second quarter of 2023, compared to 0.47% for the first quarter of 2023, which outpaced the increased asset yields which rose by 19 basis points to 4.83%. Acquired loan discount accretion contributed 9 basis points to net interest margin during the second quarter of 2023 and 7 basis points during the first quarter of 2023.

Relative to the second quarter of 2022, net interest margin increased from 3.34%. This increase was primarily attributable to higher yields on interest-earning assets. Acquired loan discount accretion contributed 3 basis points to net interest margin, during the second quarter of 2022.

Noninterest Income

Noninterest income for the second quarter of 2023 was $9.9 million, an increase of 33.3% from $7.4 million for the first quarter of 2023. The increase was primarily attributable to the absence of realized losses on sales of securities of $1.0 million included in the first quarter of 2023 results as well as a $0.8 million change in the mortgage servicing rights fair value adjustment. Additionally, increases in card income of $0.2 million and mortgage servicing income of $0.2 million primarily reflect the addition of Town and Country’s operations for the first full quarter.

Relative to the second quarter of 2022, noninterest income increased 15.9% from $8.6 million. The increase was primarily attributable to the Town and Country merger with a $0.6 million increase in mortgage servicing income, a $0.2 million increase in card income, and a $0.1 million increase in service charges on deposit accounts.

Noninterest Expense

Noninterest expense for the second quarter of 2023 was $34.0 million, a 5.5% decrease from $35.9 million for the first quarter of 2023. Acquisition-related noninterest expenses totaled $0.6 million during the second quarter of 2023, compared to $7.1 million during the first quarter of 2023. Excluding acquisition-related noninterest expenses, the $4.6 million increase in noninterest expense was primarily attributable to $0.8 million of legal fees and $0.8 million of accruals related to pending legal matters previously disclosed and incurred during the second quarter of 2023 that were not present in the first quarter of 2023 results. Settlements have been reached with plaintiffs in these matters which are now pending final court approval. Additionally, the second quarter of 2023 results included a full quarter’s impact of Town and Country’s operations.


HBT Financial, Inc.

Page 3 of 15

Relative to the second quarter of 2022, noninterest expense increased 42.5% from $23.8 million, primarily attributable to the addition of Town and Country’s operations, additional legal costs and settlement accrual.

Acquisition-related expenses during the first and second quarter of 2023 are summarized below. There were no acquisition-related expenses during the second quarter of 2022. We do not expect material acquisition-related expenses related to Town and Country in subsequent quarters.

    

Three Months Ended

June 30, 2023

March 31, 2023

(dollars in thousands)

PROVISION FOR CREDIT LOSSES

$

$

5,924

NONINTEREST EXPENSE

Salaries

66

3,518

Furniture and equipment

39

Data processing

176

1,855

Marketing and customer relations

10

14

Loan collection and servicing

125

Legal fees and other noninterest expense

211

1,753

Total noninterest expense

627

7,140

Total acquisition-related expenses

$

627

$

13,064

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.24 billion at June 30, 2023, compared with $3.20 billion at March 31, 2023 and $2.45 billion at June 30, 2022. The $49.1 million increase from March 31, 2023 was primarily attributable to a $52.8 million increase in commercial and industrial loans driven by new loan fundings and the purchase of $37.0 million of loans from two new strategic partners. The $53.9 million decrease in the construction and development loans was generally driven by the completion of a number of sizeable projects that are now amortizing and have been moved into other real estate loan categories, with the largest being a $29.5 million project that moved to the commercial real estate - non-owner occupied category. Additionally, we received a payoff on a $12.4 million substandard relationship in the commercial real estate - non-owner occupied category.

Deposits

Total deposits were $4.16 billion at June 30, 2023, compared with $4.31 billion at March 31, 2023 and $3.70 billion at June 30, 2022. The $146.0 million decrease from March 31, 2023 was primarily attributable to decreases in balances held in existing retail and business accounts partially offset by a seasonal increase in public fund account balances and the addition of $51.0 million of brokered deposits. Additionally, a higher than historical average net deposit inflow on March 31, 2023, as referenced in our first quarter of 2023 investor presentation, included $36 million related to one account which was withdrawn at the beginning of the second quarter of 2023.

Asset Quality

Nonperforming loans totaled $7.5 million, or 0.23% of total loans, at June 30, 2023, compared with $6.5 million, or 0.20% of total loans, at March 31, 2023, and $3.4 million, or 0.14% of total loans, at June 30, 2022. The $1.0 million increase in nonperforming loans from March 31, 2023 was primarily attributable to a $1.3 million increase in nonaccrual one-to-four family residential real estate loans.

The Company recorded a negative provision for credit losses of $0.2 million for the second quarter of 2023. The negative provision for credit losses primarily reflects a $1.1 million decrease in specific reserves, a $1.1 million increase in required reserves driven by growth of the loan portfolio and unfunded commitments, a $0.4 million decrease in required reserves resulting from changes in economic and qualitative factors, a $0.2 million increase in reserves on debt securities available-for-sale, related to one bank subordinated debt security, and net recoveries of $0.1 million.

The Company had net recoveries of $0.1 million, or (0.01)% of average loans on an annualized basis, for the second quarter of 2023, compared to net recoveries of $0.1 million, or (0.02)% of average loans on an annualized basis, for the first quarter of 2023, and net recoveries of $0.1 million, or (0.01)% of average loans on an annualized basis, for the second quarter of 2022.


HBT Financial, Inc.

Page 4 of 15

The Company’s allowance for credit losses was 1.17% of total loans and 502% of nonperforming loans at June 30, 2023, compared with 1.21% of total loans and 595% of nonperforming loans at March 31, 2023.

Stock Repurchase Program

During the second quarter of 2023, the Company repurchased 229,502 shares of its common stock at a weighted average price of $18.07 under its stock repurchase program. The Company’s Board of Directors have authorized the repurchase of up to $15 million of HBT Financial common stock under its stock repurchase program in effect until January 1, 2024. As of June 30, 2023, the Company had $9.3 million remaining under the current stock repurchase authorization.

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 Illinois and Eastern Iowa through 67 full-service branches. As of June 30, 2023, HBT had total assets of $5.0 billion, total loans of $3.2 billion, and total deposits of $4.2 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.

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.


HBT Financial, Inc.

Page 5 of 15

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 (including the Russian invasion of Ukraine), 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 (including the Company’s adoption of CECL methodology); (iv) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the recent failures of other banks; (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, including from non-bank competitors such as credit unions and “fintech” companies, 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) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xix) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. 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.

CONTACT:

Peter Chapman

HBTIR@hbtbank.com

(888) 897-2276


HBT Financial, Inc.

Page 6 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

As of or for the Three Months Ended

Six Months Ended

June 30, 

March 31, 

June 30, 

June 30, 

    

2023

    

2023

    

2022

    

2023

    

2022

(dollars in thousands, except per share data)

Interest and dividend income

$

56,768

$

51,779

$

35,757

$

108,547

$

69,092

Interest expense

7,896

4,942

1,384

12,838

2,791

Net interest income

48,872

46,837

34,373

95,709

66,301

Provision for credit losses

(230)

6,210

145

5,980

(439)

Net interest income after provision for credit losses

49,102

40,627

34,228

89,729

66,740

Noninterest income

9,914

7,437

8,551

17,351

18,594

Noninterest expense

33,973

35,933

23,842

69,906

47,999

Income before income tax expense

25,043

12,131

18,937

37,174

37,335

Income tax expense

6,570

2,923

4,852

9,493

9,646

Net income

$

18,473

$

9,208

$

14,085

$

27,681

$

27,689

Earnings per share - Basic

$

0.58

$

0.30

$

0.49

$

0.88

$

0.96

Earnings per share - Diluted

0.58

0.30

0.49

0.88

0.95

Adjusted net income (1)

$

18,772

$

19,859

$

13,836

$

38,631

$

26,063

Adjusted earnings per share - Basic (1)

0.59

0.64

0.48

1.23

0.90

Adjusted earnings per share - Diluted (1)

0.58

0.64

0.48

1.22

0.90

Book value per share

$

14.15

$

14.02

$

12.97

Tangible book value per share (1)

11.58

11.45

11.90

Shares of common stock outstanding

31,865,868

32,095,370

28,831,197

Weighted average shares of common stock outstanding

31,980,133

30,977,204

28,891,202

31,481,439

28,938,634

SUMMARY RATIOS

Net interest margin *

4.16

%

4.20

%

3.34

%

4.18

%

3.21

%

Net interest margin (tax equivalent basis) * (1)(2)

4.22

4.26

3.39

4.24

3.26

Efficiency ratio

56.57

%

65.27

%

54.97

%

60.74

%

55.96

%

Efficiency ratio (tax equivalent basis) (1)(2)

55.89

64.43

54.22

59.99

55.23

Loan to deposit ratio

77.91

%

74.13

%

66.23

%

Return on average assets *

1.49

%

0.78

%

1.32

%

1.15

%

1.29

%

Return on average stockholders' equity *

16.30

8.84

14.92

12.73

14.23

Return on average tangible common equity * (1)

19.91

10.45

16.25

15.31

15.45

Adjusted return on average assets * (1)

1.51

%

1.69

%

1.29

%

1.60

%

1.22

%

Adjusted return on average stockholders' equity * (1)

16.57

19.08

14.66

17.77

13.40

Adjusted return on average tangible common equity * (1)

20.23

22.55

15.96

21.36

14.55

CAPITAL

Total capital to risk-weighted assets

15.03

%

15.11

%

16.76

%

Tier 1 capital to risk-weighted assets

13.12

13.16

14.59

Common equity tier 1 capital ratio

11.78

11.79

13.36

Tier 1 leverage ratio

10.07

10.29

10.05

Total stockholders' equity to total assets

9.06

8.98

8.85

Tangible common equity to tangible assets (1)

7.54

7.45

8.18

ASSET QUALITY

Net charge-offs (recoveries) to average loans, before allowance for credit losses

(0.01)

%

(0.02)

%

(0.01)

%

(0.01)

%

(0.10)

%

Allowance for credit losses to loans, before allowance for credit losses

1.17

1.21

1.01

Nonperforming loans to loans, before allowance for credit losses

0.23

0.20

0.14

Nonperforming assets to total assets

0.21

0.20

0.15


*       Annualized measure.

(1)See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

HBT Financial, Inc.

Page 7 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Consolidated Statements of Income

Three Months Ended

Six Months Ended

June 30, 

March 31, 

June 30, 

June 30, 

    

2023

    

2023

    

2022

    

2023

    

2022

INTEREST AND DIVIDEND INCOME

(dollars in thousands, except per share data)

Loans, including fees:

Taxable

$

47,149

$

42,159

$

27,843

$

89,308

$

54,649

Federally tax exempt

1,040

952

679

1,992

1,341

Securities:

Taxable

6,518

6,616

5,663

13,134

10,312

Federally tax exempt

1,162

1,197

1,138

2,359

2,178

Interest-bearing deposits in bank

781

739

420

1,520

579

Other interest and dividend income

118

116

14

234

33

Total interest and dividend income

56,768

51,779

35,757

108,547

69,092

INTEREST EXPENSE

Deposits

4,323

2,374

506

6,697

1,075

Securities sold under agreements to repurchase

34

38

8

72

17

Borrowings

2,189

1,297

1

3,486

2

Subordinated notes

469

470

469

939

939

Junior subordinated debentures issued to capital trusts

881

763

400

1,644

758

Total interest expense

7,896

4,942

1,384

12,838

2,791

Net interest income

48,872

46,837

34,373

95,709

66,301

PROVISION FOR CREDIT LOSSES

(230)

6,210

145

5,980

(439)

Net interest income after provision for credit losses

49,102

40,627

34,228

89,729

66,740

NONINTEREST INCOME

Card income

2,905

2,658

2,714

5,563

5,118

Wealth management fees

2,279

2,338

2,322

4,617

4,611

Service charges on deposit accounts

1,919

1,871

1,792

3,790

3,444

Mortgage servicing

1,254

1,099

661

2,353

1,319

Mortgage servicing rights fair value adjustment

141

(624)

366

(483)

2,095

Gains on sale of mortgage loans

373

276

326

649

913

Realized gains (losses) on sales of securities

(1,007)

(1,007)

Unrealized gains (losses) on equity securities

7

(22)

(153)

(15)

(340)

Gains (losses) on foreclosed assets

(97)

(10)

(7)

(107)

33

Gains (losses) on other assets

109

(43)

109

150

Income on bank owned life insurance

147

115

41

262

81

Other noninterest income

877

743

532

1,620

1,170

Total noninterest income

9,914

7,437

8,551

17,351

18,594

NONINTEREST EXPENSE

Salaries

16,660

19,411

12,936

36,071

25,737

Employee benefits

2,707

2,335

1,984

5,042

4,428

Occupancy of bank premises

2,785

2,102

1,741

4,887

3,801

Furniture and equipment

809

659

623

1,468

1,175

Data processing

2,883

4,323

1,990

7,206

3,643

Marketing and customer relations

1,359

836

1,205

2,195

2,056

Amortization of intangible assets

720

510

245

1,230

490

FDIC insurance

630

563

298

1,193

586

Loan collection and servicing

348

278

278

626

435

Foreclosed assets

97

61

31

158

163

Other noninterest expense

4,975

4,855

2,511

9,830

5,485

Total noninterest expense

33,973

35,933

23,842

69,906

47,999

INCOME BEFORE INCOME TAX EXPENSE

25,043

12,131

18,937

37,174

37,335

INCOME TAX EXPENSE

6,570

2,923

4,852

9,493

9,646

NET INCOME

$

18,473

$

9,208

$

14,085

$

27,681

$

27,689

EARNINGS PER SHARE - BASIC

$

0.58

$

0.30

$

0.49

$

0.88

$

0.96

EARNINGS PER SHARE - DILUTED

$

0.58

$

0.30

$

0.49

$

0.88

$

0.95

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING

31,980,133

30,977,204

28,891,202

31,481,439

28,938,634


HBT Financial, Inc.

Page 8 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Consolidated Balance Sheets

    

June 30, 

March 31, 

   

June 30, 

    

2023

    

2023

    

2022

(dollars in thousands)

ASSETS

Cash and due from banks

$

28,044

$

35,244

$

25,478

Interest-bearing deposits with banks

81,764

141,868

134,553

Cash and cash equivalents

109,808

177,112

160,031

Interest-bearing time deposits with banks

249

Debt securities available-for-sale, at fair value

822,788

854,622

924,706

Debt securities held-to-maturity

533,231

536,429

548,236

Equity securities with readily determinable fair value

3,152

3,145

3,103

Equity securities with no readily determinable fair value

2,275

1,980

1,952

Restricted stock, at cost

11,345

4,991

2,813

Loans held for sale

8,829

5,130

5,312

Loans, before allowance for credit losses

3,244,655

3,195,540

2,451,826

Allowance for credit losses

(37,814)

(38,776)

(24,734)

Loans, net of allowance for credit losses

3,206,841

3,156,764

2,427,092

Bank owned life insurance

23,594

23,447

7,474

Bank premises and equipment, net

65,029

65,119

51,433

Bank premises held for sale

35

235

319

Foreclosed assets

3,080

3,356

2,891

Goodwill

59,876

59,876

29,322

Intangible assets, net

22,122

22,842

1,453

Mortgage servicing rights, at fair value

20,133

19,992

10,089

Investments in unconsolidated subsidiaries

1,614

1,614

1,165

Accrued interest receivable

19,900

20,301

14,263

Other assets

62,158

56,617

32,324

Total assets

$

4,975,810

$

5,013,821

$

4,223,978

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Deposits:

Noninterest-bearing

$

1,125,823

$

1,218,888

$

1,028,790

Interest-bearing

3,038,700

3,091,633

2,673,196

Total deposits

4,164,523

4,310,521

3,701,986

Securities sold under agreements to repurchase

38,729

34,919

51,091

Federal Home Loan Bank advances

177,572

75,183

Subordinated notes

39,435

39,415

39,356

Junior subordinated debentures issued to capital trusts

52,760

52,746

37,747

Other liabilities

51,939

50,939

19,989

Total liabilities

4,524,958

4,563,723

3,850,169

Stockholders' Equity

Common stock

327

327

293

Surplus

294,875

294,441

222,087

Retained earnings

241,777

228,782

212,506

Accumulated other comprehensive income (loss)

(70,662)

(62,175)

(52,820)

Treasury stock at cost

(15,465)

(11,277)

(8,257)

Total stockholders’ equity

450,852

450,098

373,809

Total liabilities and stockholders’ equity

$

4,975,810

$

5,013,821

$

4,223,978

SHARE INFORMATION

Shares of common stock outstanding

31,865,868

32,095,370

28,831,197


HBT Financial, Inc.

Page 9 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

    

June 30, 

March 31, 

   

June 30, 

    

2023

    

2023

    

2022

(dollars in thousands)

LOANS

Commercial and industrial

$

385,768

$

333,013

$

249,839

Commercial real estate - owner occupied

303,522

317,103

228,997

Commercial real estate - non-owner occupied

882,598

854,024

656,093

Construction and land development

335,262

389,142

332,041

Multi-family

375,536

362,672

269,452

One-to-four family residential

482,442

482,732

325,047

Agricultural and farmland

259,858

243,357

230,370

Municipal, consumer, and other

219,669

213,497

159,987

Loans, before allowance for credit losses

$

3,244,655

$

3,195,540

$

2,451,826

PPP LOANS (included above)

Commercial and industrial

$

22

$

25

$

2,823

Agricultural and farmland

9

Total PPP Loans

$

22

$

25

$

2,832

June 30, 

March 31, 

   

June 30, 

    

2023

    

2023

    

2022

(dollars in thousands)

DEPOSITS

Noninterest-bearing

$

1,125,823

$

1,218,888

$

1,028,790

Interest-bearing demand

1,181,187

1,270,454

1,162,292

Money market

730,652

662,088

581,058

Savings

657,506

738,719

654,953

Time

469,355

420,372

274,893

Total deposits

$

4,164,523

$

4,310,521

$

3,701,986


HBT Financial, Inc.

Page 10 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Three Months Ended

 

 

June 30, 2023

 

March 31, 2023

 

June 30, 2022

    

Average

    

    

    

Average

    

    

    

Average

    

    

 

Balance

Interest

 

Yield/Cost *

 

Balance

Interest

 

Yield/Cost *

 

Balance

Interest

 

Yield/Cost *

 

(dollars in thousands)

ASSETS

Loans

$

3,238,774

$

48,189

 

5.97

%  

$

3,012,320

$

43,111

 

5.80

%  

$

2,467,851

$

28,522

 

4.64

%

Securities

 

1,384,180

 

7,680

 

2.23

 

1,411,613

7,813

 

2.24

 

1,422,096

 

6,801

 

1.92

Deposits with banks