hbt-20240123
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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): January 23, 2024
HBT FINANCIAL, INC.
(Exact name of registrant as specified in its charter)
Delaware001-3908537-1117216
(State or other jurisdiction
of incorporation)
(Commission File Number)(IRS Employer
Identification Number)
401 North Hershey Road
Bloomington, Illinois
61704
(Address of principal executive
offices)
(Zip Code)
(888) 897-2276
(Registrant’s telephone number, including area code)
N/A
(Former name or former address, if changed since last report)
Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading Symbol(s)Name of each exchange on which registered
Common Stock, par value $0.01 per shareHBTThe 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 January 24, 2024, HBT Financial, Inc. (the “Company”) issued a press release announcing its financial results for the fourth quarter ended and year ended December 31, 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 fourth quarter ended December 31, 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 8.01. Other Events.
On January 23, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.19 per share on the Company’s common stock (the “Dividend”). The Dividend is payable on February 13, 2024 to shareholders of record as of February 6, 2024. This represents an increase of $0.02 from the previous quarterly dividend of $0.17 per share.
Item 9.01. Financial Statements and Exhibits.
Exhibit NumberDescription of Exhibit
Earnings Release issued January 24, 2024 for the Fourth Quarter Ended and Year Ended December 31, 2023.
HBT Financial, Inc. Presentation of Results for the Fourth Quarter Ended and Year Ended December 31, 2023.
104Cover 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: January 24, 2024

Document

EXHIBIT 99.1
https://cdn.kscope.io/aec805e921b2316e52990ba23fdeb3c2-hbt-logo.jpg
HBT FINANCIAL, INC. ANNOUNCES
FOURTH QUARTER 2023 FINANCIAL RESULTS

Quarterly Cash Dividend Increased to $0.19 per Share
Fourth Quarter Highlights
Net income of $18.4 million, or $0.58 per diluted share; return on average assets (ROAA) of 1.46%; return on average stockholders' equity (ROAE) of 15.68%; and return on average tangible common equity (ROATCE)(1) of 18.96%
Adjusted net income(1) of $19.3 million; or $0.60 per diluted share; adjusted ROAA(1) of 1.53%; adjusted ROAE(1) of 16.38%; and adjusted ROATCE(1) of 19.81%
Asset quality remained strong with nonperforming assets to total assets of 0.17%
Net interest margin of 3.93% and net interest margin (tax-equivalent basis)(1) of 3.99%

Bloomington, IL, January 24, 2024 – 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 $18.4 million, or $0.58 diluted earnings per share, for the fourth quarter of 2023. This compares to net income of $19.7 million, or $0.62 diluted earnings per share, for the third quarter of 2023, and net income of $13.1 million, or $0.46 diluted earnings per share, for the fourth quarter of 2022.
J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “We had a very good fourth quarter to complete an excellent year. We continued to produce strong profitability with an adjusted ROAA(1) of 1.53%, an adjusted ROATCE(1) of 19.81% and adjusted diluted earnings per share(1) of $0.60. We were able to improve liquidity and increase deposits, excluding brokered deposits, by 4.2% for the quarter by bringing the majority of our wealth management customers’ deposits onto our balance sheet. Even without our wealth management customers’ deposits, total deposits, excluding brokered deposits, increased by $29.4 million, or 0.7%. Loan growth remained solid at 1.8% for the quarter while we maintained strong credit quality with non-performing assets at only 0.17% of total assets. Although net interest margin (tax-equivalent basis)(1) declined to 3.99% in the quarter, we believe that the pace of net interest margin decreases will moderate in the first quarter of 2024. With the recent drop in interest rates, our accumulated other comprehensive income (loss) increased by $21.3 million, which when coupled with strong earnings retention, drove a 9.3% increase in our tangible book value per share(1). All capital metrics increased and can support continued organic growth or future acquisitions. We believe this quarter continues to demonstrate our ability to produce strong profitability results, maintain a solid balance sheet, and enhance our franchise value.”
____________________________________
(1)See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.



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Adjusted Net Income
In addition to reporting GAAP results, the Company believes non-GAAP measures such as 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 $19.3 million, or $0.60 adjusted diluted earnings per share, for the fourth quarter of 2023. This compares to adjusted net income of $20.3 million, or $0.63 adjusted diluted earnings per share, for the third quarter of 2023, and adjusted net income of $13.9 million, or $0.48 adjusted diluted earnings per share, for the fourth quarter of 2022 (see "Reconciliation of Non-GAAP Financial Measures" tables below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures).
Cash Dividend
On January 23, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.19 per share on the Company’s common stock (the “Dividend”). The Dividend is payable on February 13, 2024 to shareholders of record as of February 6, 2024. This represents an increase of $0.02 from the previous quarterly dividend of $0.17 per share.
Mr. Carter noted, “Our strong financial performance and balance sheet enable us to increase our quarterly dividend by $0.02 per share, or 11.8%, while maintaining sufficient capital to support the continued growth of the Company.”
Net Interest Income and Net Interest Margin
Net interest income for the fourth quarter of 2023 was $47.1 million, a decrease of 2.5% from $48.3 million for the third quarter of 2023. The decrease was primarily attributable to an increase in funding costs which were partially offset by higher yields on loans and a more favorable interest-earning asset mix.
Relative to the fourth quarter of 2022, net interest income increased 11.6% from $42.2 million. The increase was primarily attributable to the increase in average interest-earning assets following the Town and Country Financial Corporation (“Town and Country”) merger completed in the first quarter of 2023 and higher yields on interest-earning assets which were partially offset by an increase in funding costs.
Net interest margin for the fourth quarter of 2023 was 3.93%, compared to 4.07% for the third quarter of 2023, and net interest margin (tax-equivalent basis)(1) for the fourth quarter of 2023 was 3.99% compared to 4.13% for the third quarter of 2023. The decrease was primarily attributable to higher funding costs with the cost of funds increasing to 1.26% for the fourth quarter of 2023, compared to 0.96% for the third quarter of 2023, partially offset by higher yields on loans and a more favorable interest-earning asset mix.
Relative to the fourth quarter of 2022, net interest margin decreased from 4.10%. This decrease was primarily attributable to higher funding costs.
____________________________________
(1)See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
Noninterest Income
Noninterest income for the fourth quarter of 2023 was $9.2 million, a decrease of 3.0% from $9.5 million for the third quarter of 2023. The decrease was primarily attributable to a negative mortgage servicing rights fair value adjustment of $1.2 million during the fourth quarter of 2023, partially offset by the absence of $0.8 million of losses realized on the sale of debt securities during the third quarter of 2023. Additionally, the $0.5 million increase in wealth management fees was primarily due to an increase in farmland brokerage commissions.
Relative to the fourth quarter of 2022, noninterest income increased 16.7% from $7.9 million. The increase was primarily attributable to the Town and Country merger completed in the first quarter of 2023 which contributed to


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a $0.6 million increase in mortgage servicing income, a $0.4 million increase in wealth management fees, and a $0.1 million increase in card income.
Noninterest Expense
Noninterest expense for the fourth quarter of 2023 was $30.4 million, a 0.9% decrease from $30.7 million for the third quarter of 2023. The decrease was broad-based and the result of continued expense management discipline with a $0.5 million decrease in marketing expenses largely offset by a $0.4 million increase in other noninterest expense.
Relative to the fourth quarter of 2022, noninterest expense decreased 8.2% from $33.1 million, primarily attributable to the absence of $8.2 million of accruals related to settled legal matters previously disclosed and included in the fourth quarter of 2022 results, partially offset by the addition of Town and Country’s operations.
Acquisition-related expenses recognized are summarized below. No acquisition-related expenses were recognized subsequent to the second quarter of 2023, and we do not expect material acquisition-related expenses related to Town and Country in subsequent quarters.
Three Months EndedYear Ended December 31,
(dollars in thousands)December 31,
2023
September 30,
2023
December 31,
2022
20232022
PROVISION FOR CREDIT LOSSES$— $— $— $5,924 $— 
NONINTEREST EXPENSE
Salaries— — — 3,584 — 
Furniture and equipment— — — 39 — 
Data processing— — 304 2,031 304 
Marketing and customer relations— — — 24 — 
Loan collection and servicing— — — 125 — 
Legal fees and other noninterest expense— — 326 1,964 788 
Total noninterest expense— — 630 7,767 1,092 
Total acquisition-related expenses$— $— $630 $13,691 $1,092 
Loan Portfolio
Total loans outstanding, before allowance for credit losses, were $3.40 billion at December 31, 2023, compared with $3.34 billion at September 30, 2023 and $2.62 billion at December 31, 2022. The $61.6 million increase from September 30, 2023 was primarily attributable to higher line usage in our commercial and industrial portfolio as well as one larger new $23.0 million funding in our multifamily portfolio, both of which were partially offset by a reduction in our commercial real estate – non-owner occupied portfolio due to a variety of payoffs from real estate sales. Higher line usage in our commercial and industrial portfolio was driven in part by the seasonal increase in grain elevator line balances as well as $13.2 million drawn on two customers’ lines which were funded shortly before and paid off shortly after year-end.
Deposits
Total deposits were $4.40 billion at December 31, 2023, compared with $4.20 billion at September 30, 2023 and $3.59 billion at December 31, 2022. The $203.4 million increase from September 30, 2023 was primarily attributable to bringing the majority of our wealth management customer deposits on balance sheet, which increased money market deposits by $144.0 million, and a $29.9 million increase in brokered deposits.
Asset Quality
Nonperforming loans totaled $7.9 million, or 0.23% of total loans, at December 31, 2023, compared with $6.7 million, or 0.20% of total loans, at September 30, 2023, and $2.2 million, or 0.08% of total loans, at December 31, 2022. Additionally, of the $7.9 million of nonperforming loans held as of December 31, 2023, $2.6 million is either wholly or partially guaranteed by the U.S. Government. The $1.2 million increase in nonperforming loans from September 30, 2023 was primarily attributable to one commercial real estate - non-


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owner occupied retail credit moved to nonaccrual, partially offset by a reduction in one-to-four family residential nonaccrual loans.
The Company recorded a provision for credit losses of $1.1 million for the fourth quarter of 2023. The provision for credit losses primarily reflects a $0.9 million increase in required reserves resulting from changes in economic and qualitative factors, a $0.6 million increase in required reserves driven by growth and changes in the loan portfolio, and a $0.4 million decrease in specific reserve.
The Company had net charge-offs of $0.5 million, or 0.06% of average loans on an annualized basis, for the fourth quarter of 2023, compared to net recoveries of $0.1 million, or 0.01% of average loans on an annualized basis, for the third quarter of 2023, and net recoveries of $0.9 million, or 0.14% of average loans on an annualized basis, for the fourth quarter of 2022.
The Company’s allowance for credit losses was 1.18% of total loans and 510% of nonperforming loans at December 31, 2023, compared with 1.16% of total loans and 582% of nonperforming loans at September 30, 2023. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $3.8 million as of December 31, 2023, compared with $4.4 million as of September 30, 2023.
Capital
Tangible common equity to tangible assets(1) increased to 8.19% as of December 31, 2023, from 7.64% as of September 30, 2023, and tangible book value per share(1) increased by $1.10 to $12.90 as of December 31, 2023, when compared to September 30, 2023. These increases were primarily due to an increase in our accumulated other comprehensive income (loss) as a result of the recent drop in interest rates as well as strong earnings retention.
During the fourth quarter of 2023, the Company repurchased 78,312 shares of its common stock at a weighted average price of $17.94 under its stock repurchase program. The Company’s Board of Directors authorized a new stock repurchase program that took effect upon the expiration of the Company’s prior stock repurchase program on January 1, 2024. The new stock repurchase program will be in effect until January 1, 2025 and authorizes the Company to repurchase up to $15 million of its common stock.
____________________________________
(1)See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
January 2024 Bond Sales
In January 2024, the Company recognized $3.4 million of net losses on the sale of $66.8 million of municipal securities with the proceeds used to reduce wholesale funding sources. The book yield of the securities sold was 1.87% and the average life was 6.7 years.
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 December 31, 2023, HBT had total assets of $5.1 billion, total loans of $3.4 billion, and total deposits of $4.4 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


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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.
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 Israeli-Palestinian conflict and 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 the current expected credit losses (“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 and the recent and potential additional rate increases by the Federal Reserve); (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
(309) 664-4556


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HBT Financial, Inc.
Unaudited Consolidated Financial Summary
As of or for the Three Months EndedYear Ended December 31,
(dollars in thousands, except per share data)December 31,
2023
September 30,
2023
December 31,
2022
20232022
Interest and dividend income$61,411 $59,041 $44,948 $228,999 $153,054 
Interest expense14,327 10,762 2,765 37,927 7,180 
Net interest income47,084 48,279 42,183 191,072 145,874 
Provision for credit losses1,113 480 (653)7,573 (706)
Net interest income after provision for credit losses45,971 47,799 42,836 183,499 146,580 
Noninterest income9,205 9,490 7,889 36,046 34,717 
Noninterest expense30,387 30,671 33,110 130,964 105,107 
Income before income tax expense24,789 26,618 17,615 88,581 76,190 
Income tax expense6,343 6,903 4,475 22,739 19,734 
Net income$18,446 $19,715 $13,140 $65,842 $56,456 
Earnings per share - Diluted$0.58 $0.62 $0.46 $2.07 $1.95 
Adjusted net income (1)
$19,272 $20,279 $13,886 $78,182 $55,805 
Adjusted earnings per share - Diluted (1)
0.60 0.63 0.48 2.46 1.93 
Book value per share$15.44 $14.36 $12.99 
Tangible book value per share (1)
12.90 11.80 11.94 
Shares of common stock outstanding31,695,828 31,774,140 28,752,626 
Weighted average shares of common stock outstanding31,708,381 31,829,250 28,752,626 31,626,308 28,853,697 
SUMMARY RATIOS
Net interest margin *3.93 %4.07 %4.10 %4.09 %3.54 %
Net interest margin (tax-equivalent basis) * (1)(2)
3.99 4.13 4.17 4.15 3.60 
Efficiency ratio52.70 %51.85 %65.85 %56.49 %57.72 %
Efficiency ratio (tax-equivalent basis) (1)(2)
52.09 51.25 64.94 55.81 56.93 
Loan to deposit ratio77.35 %79.63 %73.05 %
Return on average assets *1.46 %1.58 %1.23 %1.34 %1.32 %
Return on average stockholders' equity *15.68 17.02 14.17 14.60 14.73 
Return on average tangible common equity * (1)
18.96 20.70 15.45 17.63 16.02 
Adjusted return on average assets * (1)
1.53 %1.62 %1.30 %1.59 %1.31 %
Adjusted return on average stockholders' equity * (1)
16.38 17.51 14.98 17.34 14.56 
Adjusted return on average tangible common equity * (1)
19.81 21.29 16.33 20.94 15.83 
CAPITAL
Total capital to risk-weighted assets15.33 %15.09 %16.27 %
Tier 1 capital to risk-weighted assets13.42 13.18 14.23 
Common equity tier 1 capital ratio12.12 11.88 13.07 
Tier 1 leverage ratio10.49 10.34 10.48 
Total stockholders' equity to total assets9.65 9.14 8.72 
Tangible common equity to tangible assets (1)
8.19 7.64 8.06 
ASSET QUALITY
Net charge-offs (recoveries) to average loans0.06 %(0.01)%(0.14)%0.01 %(0.08)%
Allowance for credit losses to loans, before allowance for credit losses1.18 1.16 0.97 
Nonperforming loans to loans, before allowance for credit losses0.23 0.20 0.08 
Nonperforming assets to total assets0.17 0.16 0.12 
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*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%.


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HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Consolidated Statements of Income
Three Months EndedYear Ended December 31,
(dollars in thousands, except per share data)December 31,
2023
September 30,
2023
December 31,
2022
20232022
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable$52,060 $49,640 $35,839 $191,008 $120,343 
Federally tax exempt1,125 1,072 952 4,189 3,135 
Securities:
Taxable6,377 6,451 6,421 25,962 23,368 
Federally tax exempt888 978 1,184 4,225 4,569 
Interest-bearing deposits in bank786 714 504 3,020 1,541 
Other interest and dividend income175 186 48 595 98 
Total interest and dividend income61,411 59,041 44,948 228,999 153,054 
INTEREST EXPENSE
Deposits11,227 7,211 849 25,135 2,511 
Securities sold under agreements to repurchase148 35 10 255 36 
Borrowings1,534 2,108 880 7,128 967 
Subordinated notes470 470 470 1,879 1,879 
Junior subordinated debentures issued to capital trusts948 938 556 3,530 1,787 
Total interest expense14,327 10,762 2,765 37,927 7,180 
Net interest income47,084 48,279 42,183 191,072 145,874 
PROVISION FOR CREDIT LOSSES1,113 480 (653)7,573 (706)
Net interest income after provision for credit losses45,971 47,799 42,836 183,499 146,580 
NONINTEREST INCOME
Card income2,717 2,763 2,642 11,043 10,329 
Wealth management fees2,885 2,381 2,485 9,883 9,155 
Service charges on deposit accounts2,016 2,040 1,701 7,846 7,072 
Mortgage servicing1,156 1,169 593 4,678 2,609 
Mortgage servicing rights fair value adjustment(1,155)23 (293)(1,615)2,153 
Gains on sale of mortgage loans401 476 194 1,526 1,461 
Realized gains (losses) on sales of securities— (813)— (1,820)— 
Unrealized gains (losses) on equity securities221 (46)33 160 (414)
Gains (losses) on foreclosed assets58 550 (122)501 (314)
Gains (losses) on other assets52 17 166 136 
Income on bank owned life insurance158 153 42 573 164 
Other noninterest income743 742 597 3,105 2,366 
Total noninterest income9,205 9,490 7,889 36,046 34,717 
NONINTEREST EXPENSE
Salaries15,738 15,644 13,278 67,453 51,767 
Employee benefits2,379 2,616 2,126 10,037 8,325 
Occupancy of bank premises2,458 2,573 1,893 9,918 7,673 
Furniture and equipment655 667 633 2,790 2,476 
Data processing2,565 2,581 2,167 12,352 7,441 
Marketing and customer relations1,169 1,679 867 5,043 3,803 
Amortization of intangible assets720 720 140 2,670 873 
FDIC insurance575 512 276 2,280 1,164 
Loan collection and servicing431 345 278 1,402 1,049 
Foreclosed assets17 76 33 251 293 
Other noninterest expense3,680 3,258 11,419 16,768 20,243 
Total noninterest expense30,387 30,671 33,110 130,964 105,107 
INCOME BEFORE INCOME TAX EXPENSE24,789 26,618 17,615 88,581 76,190 
INCOME TAX EXPENSE6,343 6,903 4,475 22,739 19,734 
NET INCOME$18,446 $19,715 $13,140 $65,842 $56,456 
EARNINGS PER SHARE - BASIC$0.58 $0.62 $0.46 $2.08 $1.95 
EARNINGS PER SHARE - DILUTED$0.58 $0.62 $0.46 $2.07 $1.95 
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING31,708,38131,829,25028,752,62631,626,30828,853,697


HBT Financial, Inc.
Page 8
HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Consolidated Balance Sheets
(dollars in thousands)December 31, 2023September 30, 2023December 31, 2022
ASSETS
Cash and due from banks$26,256 $24,757 $18,970 
Interest-bearing deposits with banks114,996 87,156 95,189 
Cash and cash equivalents141,252 111,913 114,159 
Interest-bearing time deposits with banks509 500 — 
Debt securities available-for-sale, at fair value759,461 753,163 843,524 
Debt securities held-to-maturity521,439 527,144 541,600 
Equity securities with readily determinable fair value3,360 3,106 3,029 
Equity securities with no readily determinable fair value2,505 2,300 1,977 
Restricted stock, at cost7,160 11,165 7,965 
Loans held for sale2,318 3,563 615 
Loans, before allowance for credit losses3,404,417 3,342,786 2,620,253 
Allowance for credit losses(40,048)(38,863)(25,333)
Loans, net of allowance for credit losses3,364,369 3,303,923 2,594,920 
Bank owned life insurance23,905 23,747 7,557 
Bank premises and equipment, net65,150 64,713 50,469 
Bank premises held for sale— 35 235 
Foreclosed assets852 1,519 3,030 
Goodwill59,820 59,820 29,322 
Intangible assets, net20,682 21,402 1,070 
Mortgage servicing rights, at fair value19,001 20,156 10,147 
Investments in unconsolidated subsidiaries1,614 1,614 1,165 
Accrued interest receivable24,534 23,447 19,506 
Other assets55,239 58,538 56,444 
Total assets$5,073,170 $4,991,768 $4,286,734 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing$1,072,407 $1,086,877 $994,954 
Interest-bearing3,329,030 3,111,191 2,592,070 
Total deposits4,401,437 4,198,068 3,587,024 
Securities sold under agreements to repurchase42,442 28,900 43,081 
Federal Home Loan Bank advances12,623 177,650 160,000 
Subordinated notes39,474 39,454 39,395 
Junior subordinated debentures issued to capital trusts52,789 52,774 37,780 
Other liabilities34,909 38,671 45,822 
Total liabilities4,583,674 4,535,517 3,913,102 
Stockholders' Equity
Common stock327 327 293 
Surplus295,877 295,483 222,783 
Retained earnings269,051 256,050 232,004 
Accumulated other comprehensive income (loss)(57,163)(78,432)(71,759)
Treasury stock at cost(18,596)(17,177)(9,689)
Total stockholders’ equity489,496 456,251 373,632 
Total liabilities and stockholders’ equity$5,073,170 $4,991,768 $4,286,734 
SHARES OF COMMON STOCK OUTSTANDING31,695,828 31,774,140 28,752,626 


HBT Financial, Inc.
Page 9
HBT Financial, Inc.
Unaudited Consolidated Financial Summary
(dollars in thousands)December 31, 2023September 30, 2023December 31, 2022
LOANS
Commercial and industrial$427,800 $386,933 $266,757 
Commercial real estate - owner occupied295,842 297,242 218,503 
Commercial real estate - non-owner occupied880,681 901,929 713,202 
Construction and land development363,983 371,158 360,824 
Multi-family417,923 388,742 287,865 
One-to-four family residential491,508 488,655 338,253 
Agricultural and farmland287,294 275,239 237,746 
Municipal, consumer, and other239,386 232,888 197,103 
Total loans$3,404,417 $3,342,786 $2,620,253 
(dollars in thousands)December 31, 2023September 30, 2023December 31, 2022
DEPOSITS
Noninterest-bearing deposits$1,072,407 $1,086,877 $994,954 
Interest-bearing deposits:
Interest-bearing demand1,145,092 1,134,721 1,139,150 
Money market803,381 673,780 555,425 
Savings608,424 623,083 634,527 
Time627,253 564,634 262,968 
Brokered144,880 114,973 — 
Total interest-bearing deposits3,329,030 3,111,191 2,592,070 
Total deposits$4,401,437 $4,198,068 $3,587,024 



HBT Financial, Inc.
Page 10
HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Three Months Ended
December 31, 2023September 30, 2023December 31, 2022
(dollars in thousands)Average BalanceInterestYield/Cost *Average BalanceInterestYield/Cost *Average BalanceInterestYield/Cost *
ASSETS
Loans$3,374,451 $53,185 6.25 %$3,296,703 $50,712 6.10 %$2,600,746 $36,791 5.61 %
Securities1,282,773 7,265 2.25 1,324,686 7,429 2.22 1,396,401 7,605 2.16 
Deposits with banks84,021 786 3.71 77,595 714 3.65 76,507 504 2.61 
Other7,505 175 9.23 9,347 186 7.90 5,607 48 3.37 
Total interest-earning assets4,748,750 $61,411 5.13 %4,708,331 $59,041 4.97 %4,079,261 $44,948 4.37 %
Allowance for credit losses(38,844)(38,317)(25,404)
Noninterest-earning assets292,543 294,818 188,942 
Total assets$5,002,449 $4,964,832 $4,242,799 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand$1,140,438 $1,228 0.43 %$1,160,654 $761 0.26 %$1,125,877 $177 0.06 %
Money market684,197 2,885 1.67 682,772 2,026 1.18 572,718 379 0.26 
Savings610,767 417 0.27 639,384 249 0.15 640,668 53 0.03 
Time599,293 4,773 3.16 519,683 3,275 2.50 266,117 240 0.36 
Brokered140,963 1,924 5.42 66,776 900 5.34 — — — 
Total interest-bearing deposits3,175,658 11,227 1.40 3,069,269 7,211 0.93 2,605,380 849 0.13 
Securities sold under agreements to repurchase34,282 148 1.71 33,807 35 0.41 51,703 10 0.08 
Borrowings114,220 1,534 5.33 157,908 2,108 5.30 92,120 880 3.79 
Subordinated notes39,464 470 4.72 39,444 470 4.72 39,384 470 4.73 
Junior subordinated debentures issued to capital trusts52,782 948 7.13 52,767 938 7.05 37,770 556 5.84 
Total interest-bearing liabilities3,416,406 $14,327 1.66 %3,353,195 $10,762 1.27 %2,826,357 $2,765 0.39 %
Noninterest-bearing deposits1,081,795 1,105,472 1,023,355 
Noninterest-bearing liabilities37,440 46,564 25,220 
Total liabilities4,535,641 4,505,231 3,874,932 
Stockholders' Equity466,808 459,601 367,867 
Total liabilities and stockholders’ equity$5,002,449 $4,964,832 $4,242,799 
Net interest income/Net interest margin (1)
$47,084 3.93 %$48,279 4.07 %$42,183 4.10 %
Tax-equivalent adjustment (2)
666 0.06 675 0.06 698 0.07 
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$47,750 3.99 %$48,954 4.13 %$42,881 4.17 %
Net interest rate spread (4)
3.47 %3.70 %3.98 %
Net interest-earning assets (5)
$1,332,344 $1,355,136 $1,252,904 
Ratio of interest-earning assets to interest-bearing liabilities1.391.401.44
Cost of total deposits1.05 %0.69 %0.09 %
Cost of funds1.26 0.96 0.28 
____________________________________
*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
HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Year Ended
December 31, 2023December 31, 2022
(dollars in thousands)Average BalanceInterestYield/CostAverage BalanceInterestYield/Cost
ASSETS
Loans$3,231,736 $195,197 6.04 %$2,514,549 $123,478 4.91 %
Securities1,350,528 30,187 2.24 1,403,016 27,937 1.99 
Deposits with banks84,544 3,020 3.57 197,030 1,541 0.78 
Other8,217 595 7.24 3,529 98 2.77 
Total interest-earning assets4,675,025 $228,999 4.90 %4,118,124 $153,054 3.72 %
Allowance for credit losses(37,504)(24,703)
Noninterest-earning assets290,383 176,452 
Total assets$4,927,904 $4,269,873 
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand$1,188,680 $3,130 0.26 %$1,141,402 $607 0.05 %
Money market669,118 7,352 1.10 582,514 813 0.14 
Savings661,424 1,033 0.16 650,385 208 0.03 
Time481,466 10,784 2.24 283,232 883 0.31 
Brokered52,724 2,836 5.38 — — — 
Total interest-bearing deposits3,053,412 25,135 0.82 2,657,533 2,511 0.09 
Securities sold under agreements to repurchase35,450 255 0.72 51,554 36 0.07 
Borrowings139,817 7,128 5.10 26,468 967 3.65 
Subordinated notes39,434 1,879 4.76 39,355 1,879 4.77 
Junior subordinated debentures issued to capital trusts51,489 3,530 6.86 37,746 1,787 4.73 
Total interest-bearing liabilities3,319,602 $37,927 1.14 %2,812,656 $7,180 0.26 %
Noninterest-bearing deposits1,113,300 1,051,187 
Noninterest-bearing liabilities44,074 22,724 
Total liabilities4,476,976 3,886,567 
Stockholders' Equity450,928 383,306 
Total liabilities and stockholders’ equity$4,927,904 4,269,873 
Net interest income/Net interest margin (1)
$191,072 4.09 %$145,874 3.54 %
Tax-equivalent adjustment (2)
2,758 0.06 2,499 0.06 
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$193,830 4.15 %$148,373 3.60 %
Net interest rate spread (4)
3.76 %3.46 %
Net interest-earning assets (5)
$1,355,423 $1,305,468 
Ratio of interest-earning assets to interest-bearing liabilities1.411.46
Cost of total deposits0.60 %0.07 %
Cost of funds0.86 0.19 
____________________________________
(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 12
HBT Financial, Inc.
Unaudited Consolidated Financial Summary
(dollars in thousands)December 31, 2023September 30, 2023December 31, 2022
NONPERFORMING ASSETS
Nonaccrual$7,820 $6,678 $2,155 
Past due 90 days or more, still accruing (1)
37 — 
Total nonperforming loans7,857 6,678 2,156 
Foreclosed assets852 1,519 3,030 
Total nonperforming assets$8,709 $8,197 $5,186 
Nonperforming loans that are wholly or partially guaranteed by the U.S. Government$2,641 $1,968 $133 
Allowance for credit losses$40,048 $38,863 $25,333 
Loans, before allowance for credit losses3,404,417 3,342,786 2,620,253 
CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses1.18 %1.16 %0.97 %
Allowance for credit losses to nonaccrual loans512.12 581.96 1,175.55 
Allowance for credit losses to nonperforming loans509.71 581.96 1,175.00 
Nonaccrual loans to loans, before allowance for credit losses0.23 0.20 0.08 
Nonperforming loans to loans, before allowance for credit losses0.23 0.20 0.08 
Nonperforming assets to total assets0.17 0.16 0.12 
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets0.26 0.25 0.20 
____________________________________
(1)Prior to 2023, excludes loans acquired with deteriorated credit quality that are past due 90 or more days and accruing. Such loans totaled $145 thousand as of December 31, 2022.



HBT Financial, Inc.
Page 13
HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Three Months EndedYear Ended December 31,
(dollars in thousands)December 31,
2023
September 30,
2023
December 31,
2022
20232022
ALLOWANCE FOR CREDIT LOSSES
Beginning balance$38,863 $37,814 $25,060 $25,333 $23,936 
Adoption of ASC 326— — — 6,983 — 
PCD allowance established in acquisition— — — 1,247 — 
Provision for credit losses1,661 983 (653)6,665 (706)
Charge-offs(626)(412)(169)(1,359)(684)
Recoveries150 478 1,095 1,179 2,787 
Ending balance$40,048 $38,863 $25,333 $40,048 $25,333 
Net charge-offs (recoveries)$476 $(66)$(926)$180 $(2,103)
Average loans3,374,451 3,296,703 2,600,746 3,231,736 2,514,549 
Net charge-offs (recoveries) to average loans *0.06 %(0.01)%(0.14)%0.01 %(0.08)%
____________________________________
*Annualized measure.
Three Months EndedYear Ended December 31,
(dollars in thousands)December 31,
2023
September 30,
2023
December 31,
2022
20232022
PROVISION FOR CREDIT LOSSES
Loans (1)
$1,661 $983 $(653)$6,665 $(706)
Unfunded lending-related commitments (1)
(548)297 — 908 — 
Debt securities— (800)— — — 
Total provision for credit losses$1,113 $480 $(653)$7,573 $(706)
____________________________________
(1)Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.


HBT Financial, Inc.
Page 14
Reconciliation of Non-GAAP Financial Measures –
Adjusted Net Income and Adjusted Return on Average Assets
Three Months EndedYear Ended December 31,
(dollars in thousands)December 31,
2023
September 30,
2023
December 31,
2022
20232022
Net income$18,446 $19,715 $13,140 $65,842 $56,456 
Adjustments:
Acquisition expenses (1)
— — (630)(13,691)(1,092)
Gains (losses) on sales of closed branch premises— — — 75 141 
Realized gains (losses) on sales of securities— (813)— (1,820)— 
Mortgage servicing rights fair value adjustment(1,155)23 (293)(1,615)2,153 
Total adjustments(1,155)(790)(923)(17,051)1,202 
Tax effect of adjustments329 226 177 4,711 (551)
Total adjustments after tax effect(826)(564)(746)(12,340)651 
Adjusted net income$19,272 $20,279 $13,886 $78,182 $55,805 
Average assets$5,002,449 $4,964,832 $4,242,799 $4,927,904 $4,269,873 
Return on average assets *1.46 %1.58 %1.23 %1.34 %1.32 %
Adjusted return on average assets *1.53 1.62 1.30 1.59 1.31 
____________________________________
*Annualized measure.
(1)Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.
Reconciliation of Non-GAAP Financial Measures –
Adjusted Earnings Per Share
Three Months EndedYear Ended December 31,
(dollars in thousands, except per share amounts)December 31,
2023
September 30,
2023
December 31,
2022
20232022
Numerator:
Net income$18,446 $19,715 $13,140 $65,842 $56,456 
Earnings allocated to participating securities (1)
(10)(10)(15)(36)(66)
Numerator for earnings per share - basic and diluted$18,436 $19,705 $13,125 $65,806 $56,390 
Adjusted net income$19,272 $20,279 $13,886 $78,182 $55,805 
Earnings allocated to participating securities (1)
(9)(10)(16)(42)(65)
Numerator for adjusted earnings per share - basic and diluted$19,263 $20,269 $13,870 $78,140 $55,740 
Denominator:
Weighted average common shares outstanding31,708,38131,829,25028,752,62631,626,30828,853,697
Dilutive effect of outstanding restricted stock units139,332137,18791,905111,83965,619
Weighted average common shares outstanding, including all dilutive potential shares31,847,71331,966,43728,844,53131,738,14728,919,316
Earnings per share - Basic$0.58 $0.62 $0.46 $2.08 $1.95 
Earnings per share - Diluted$0.58 $0.62 $0.46 $2.07 $1.95 
Adjusted earnings per share - Basic$0.61 $0.64 $0.48 $2.47 $1.93 
Adjusted earnings per share - Diluted$0.60 $0.63 $0.48 $2.46 $1.93 
____________________________________
(1)The Company has granted certain restricted stock units that contain non-forfeitable rights to dividend equivalents. Such restricted stock units are considered participating securities. As such, we have included these restricted stock units in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.


HBT Financial, Inc.
Page 15
Reconciliation of Non-GAAP Financial Measures –
Net Interest Income and Net Interest Margin (Tax-equivalent Basis)
Three Months EndedYear Ended December 31,
(dollars in thousands)December 31,
2023
September 30,
2023
December 31,
2022
20232022
Net interest income (tax-equivalent basis)
Net interest income$47,084 $48,279 $42,183 $191,072 $145,874 
Tax-equivalent adjustment (1)
666 675 698 2,758 2,499 
Net interest income (tax-equivalent basis) (1)
$47,750 $48,954 $42,881 $193,830 $148,373 
Net interest margin (tax-equivalent basis)
Net interest margin *3.93 %4.07 %4.10 %4.09 %3.54 %
Tax-equivalent adjustment * (1)
0.06 0.06 0.07 0.06 0.06 
Net interest margin (tax-equivalent basis) * (1)
3.99 %4.13 %4.17 %4.15 %3.60 %
Average interest-earning assets$4,748,750 $4,708,331 $4,079,261 $4,675,025 $4,118,124 
____________________________________
*Annualized measure.
(1)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.
Reconciliation of Non-GAAP Financial Measures –
Efficiency Ratio (Tax-equivalent Basis)
Three Months EndedYear Ended December 31,
(dollars in thousands)December 31,
2023
September 30,
2023
December 31,
2022
20232022
Efficiency ratio (tax-equivalent basis)
Total noninterest expense$30,387 $30,671 $33,110 $130,964 $105,107 
Less: amortization of intangible assets720 720 140 2,670 873 
Noninterest expense excluding amortization of intangible assets$29,667 $29,951 $32,970 $128,294 $104,234 
Net interest income$47,084 $48,279 $42,183 $191,072 $145,874 
Total noninterest income9,205 9,490 7,889 36,046 34,717 
Operating revenue56,289 57,769 50,072 227,118 180,591 
Tax-equivalent adjustment (1)
666 675 698 2,758 2,499 
Operating revenue (tax-equivalent basis) (1)
$56,955 $58,444 $50,770 $229,876 $183,090 
Efficiency ratio52.70 %51.85 %65.85 %56.49 %57.72 %
Efficiency ratio (tax-equivalent basis) (1)
52.09 51.25 64.94 55.81 56.93 
____________________________________
(1)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.


HBT Financial, Inc.
Page 16
Reconciliation of Non-GAAP Financial Measures –
Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share
(dollars in thousands, except per share data)December 31, 2023September 30, 2023December 31, 2022
Tangible Common Equity
Total stockholders' equity$489,496 $456,251 $373,632 
Less: Goodwill59,820 59,820 29,322 
Less: Intangible assets, net20,682 21,402 1,070 
Tangible common equity$408,994 $375,029 $343,240 
Tangible Assets
Total assets$5,073,170 $4,991,768 $4,286,734 
Less: Goodwill59,820 59,820 29,322 
Less: Intangible assets, net20,682 21,402 1,070 
Tangible assets$4,992,668 $4,910,546 $4,256,342 
Total stockholders' equity to total assets9.65 %9.14 %8.72 %
Tangible common equity to tangible assets8.19 7.64 8.06 
Shares of common stock outstanding31,695,828 31,774,140 28,752,626 
Book value per share$15.44 $14.36 $12.99 
Tangible book value per share12.90 11.80 11.94 
Reconciliation of Non-GAAP Financial Measures –
Return on Average Tangible Common Equity,
Adjusted Return on Average Stockholders' Equity and Adjusted Return on Tangible Common Equity
Three Months EndedYear Ended December 31,
(dollars in thousands)December 31,
2023
September 30,
2023
December 31,
2022
20232022
Average Tangible Common Equity
Total stockholders' equity$466,808 $459,601 $367,867 $450,928 $383,306 
Less: Goodwill59,820 59,875 29,322 57,266 29,322 
Less: Intangible assets, net21,060 21,793 1,134 20,272 1,480 
Average tangible common equity$385,928 $377,933 $337,411 $373,390 $352,504 
Net income$18,446 $19,715 $13,140 $65,842 $56,456 
Adjusted net income19,272 20,279 13,886 78,182 55,805 
Return on average stockholders' equity *15.68 %17.02 %14.17 %14.60 %14.73 %
Return on average tangible common equity *18.96 20.70 15.45 17.63 16.02 
Adjusted return on average stockholders' equity *16.38 %17.51 %14.98 %17.34 %14.56 %
Adjusted return on average tangible common equity *19.81 21.29 16.33 20.94 15.83 
____________________________________
*Annualized measure.

hbt-20231231ex992
HBT Financial, Inc. January 24, 2024 Q4 2023 Results Presentation


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 1 Forward-Looking Statements Readers should note that in addition to the historical information contained herein, this presentation contains, and future oral and written statements of HBT Financial, Inc. (the “Company” or “HBT”) 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 presentation, 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 (including the Israeli-Palestinian conflict and 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 the current expected credit losses ("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 and the recent and potential additional rate increases by the Federal Reserve); (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 presentation 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. Non-GAAP Financial Measures This presentation includes certain non-GAAP financial measures. While the Company believes these are useful measures for investors, they are not presented in accordance with GAAP. You should not consider non-GAAP measures in isolation or as a substitute for the most directly comparable or other financial measures calculated in accordance with GAAP. Because not all companies use identical calculations, the presentation herein of non-GAAP financial measures may not be comparable to other similarly titled measures of other companies. Tax-equivalent adjustments assume a federal tax rate of 21% and state tax rate of 9.5%. For a reconciliation of the non-GAAP measures we use to the most closely comparable GAAP measures, see the Appendix to this presentation.


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 2 Q4 2023 Highlights Continued loan growth and excellent asset quality n Strong loan production during Q4 2023 mainly from existing loan relationships, while maintaining consistently conservative underwriting standards, with loans increasing $61.6 million, or 1.8%, compared to September 30, 2023 n Maintained excellent asset quality with the ratio of nonperforming assets to total assets of 0.17% and net charge-offs to average loans of 0.06% Strong profitability n Net income of $18.4 million, or $0.58 per diluted share; return on average assets (ROAA) of 1.46% and return on average tangible common equity (ROATCE)1 of 18.96% n Adjusted net income1 of $19.3 million, or $0.60 per diluted share; adjusted ROAA1 of 1.53% and adjusted ROATCE1 of 19.81% n Disciplined management of noninterest expenses, which decreased by 0.9% compared to Q3 2023 Diversified deposit base n Deposits increased $203.4 million, compared to September 30, 2023, primarily attributable to the addition of $144.0 million of wealth management customer money market accounts previously held by a third-party institution which were brought on balance sheet and used to pay down wholesale borrowings n Maintained a strong net interest margin of 3.93% and a net interest margin (tax-equivalent basis)1 of 3.99%, both down 14 basis points compared to Q3 2023 n Cost of funds increased 30 basis points, to 1.26%, and total cost of deposits increased 36 basis points, to 1.05%, while yield on average earning assets increased by 16 basis points, to 5.13% 1 See "Non-GAAP reconciliations" in the Appendix for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 3 Financial Highlights ($mm) 2020 2021 2022 2023As of or for the year ended B al an ce S he et Total assets $3,667 $4,314 $4,287 $5,073 Total loans 2,247 2,500 2,620 3,404 Total deposits 3,131 3,738 3,587 4,401 Core deposits (%)1 99.1 % 98.3 % 99.2 % 93.8 % Loans-to-deposits 71.8 % 66.9 % 73.0 % 77.3 % CET1 (%) 13.1 % 13.4 % 13.1 % 12.1 % TCE / TA1 9.3 % 8.9 % 8.1 % 8.2 % K ey P er fo rm an ce In di ca to rs Adjusted ROAA* 1 1.15 % 1.43 % 1.31 % 1.59 % Adjusted ROATCE* 1 12.3 % 16.1 % 15.8 % 20.9 % NIM (FTE)* 1 3.60 % 3.23 % 3.60 % 4.15 % Yield on loans* 4.69 % 4.68 % 4.91 % 6.04 % Cost of deposits* 0.14 % 0.07 % 0.07 % 0.60 % Cost of funds* 0.21 % 0.16 % 0.19 % 0.86 % Efficiency ratio (FTE)1 58.9 % 55.8 % 56.9 % 55.8 % C re di t NCOs / loans* 0.04 % (0.01) % (0.08) % 0.01 % ACL / loans 1.42 % 0.96 % 0.97 % 1.18 % NPLs / loans 0.44 % 0.11 % 0.08 % 0.23 % NPAs / assets 0.39 % 0.14 % 0.12 % 0.17 % Company Snapshot Overview Loan Composition Note: Financial data as of and for the three months ended December 31, 2023 unless otherwise indicated; * Annualized measure; 1 Non-GAAP financial measure. See “Non-GAAP Reconciliations” in the Appendix for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures. Deposit Composition ü Company incorporated in 1982 from base of family-owned banks and completed its IPO in October 2019 ü Headquartered in Bloomington, Illinois, with operations throughout Illinois and Eastern Iowa ü Strong, granular, and low-cost deposit franchise with 1.05% cost of deposits, 93.8% core deposits1 ü Conservative credit culture, with net recoveries to average loans of 8bps for the year ended December 31, 2022 and net charge- offs to average loans of 1bp for the year ended December 31, 2023 ü High profitability sustained through cycles Noninterest- bearing demand: 25% Interest-bearing demand: 26%Money market: 18% Savings: 14% Time: 14% Brokered: 3% C&I: 13% CRE–Owner occupied: 9% CRE–Non- owner occupied: 26% C&D: 11% Multi-family: 12% 1-4 Family residential: 14% Agricultural & farmland: 8% Municipal, consumer & other: 7% Commercial Commercial Real Estate


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 4 4.07% 0.01% 0.16% (0.01)% (0.34)% 0.04% 3.93% 3Q23 Nonaccrual Interest Recoveries Loans Other Earning Assets Deposit Costs Other Funding Costs 4Q23 Earnings Overview Prior Quarter Current Quarter ($000) 3Q23 Non-GAAP Adj.1 Adjusted 3Q231 4Q23 Non-GAAP Adj.1 Adjusted 4Q231 Interest and dividend income $59,041 $— $59,041 $61,411 $— $61,411 Interest expense 10,762 — 10,762 14,327 — 14,327 Net interest income 48,279 — 48,279 47,084 — 47,084 Provision for credit losses 480 — 480 1,113 — 1,113 Net interest income after provision for credit losses 47,799 — 47,799 45,971 — 45,971 Noninterest income 9,490 790 10,280 9,205 1,155 10,360 Noninterest expense 30,671 — 30,671 30,387 — 30,387 Income before income tax expense 26,618 790 27,408 24,789 1,155 25,944 Income tax expense 6,903 226 7,129 6,343 329 6,672 Net income $19,715 $564 $20,279 $18,446 $826 $19,272 Highlights Relative to Previous Quarter * Annualized measures; 1 Non-GAAP financial measure. See “Non-GAAP Reconciliations” in the Appendix for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures; 2 Reflects contribution of loan interest income to net interest margin, excluding loan discount accretion and nonaccrual interest recoveries. 2 4Q23 NIM Analysis* n Net interest income decreased slightly from the third quarter of 2023 with increased funding costs partially offset by higher yields on loans and a more favorable interest-earning asset mix n Net interest margin decreased 14 basis points to 3.93% n Increased reserve requirements driven by loan growth and changes in economic forecast and qualitative factors n Adjusted noninterest income increased $0.1 million with a $0.5 million increase in wealth management fees which was mostly offset by a $0.5 million decrease in gains on foreclosed assets n Noninterest expense decreased by $0.3 million reflecting our continued expense management discipline with a $0.5 million decrease in marketing expense largely offset by a $0.4 million increase in other noninterest expense.


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 5 5.50% 1.05% Fed Funds Rate Cost of Deposits* 4Q21 1Q22 2Q22 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 —% 1.00% 2.00% 3.00% 4.00% 5.00% 6.00% Deposit Overview Source: St. Louis FRED * Annualized measure; 1 Represents quarterly average of federal funds target rate upper limit; 2 Weighted average spot interest rates do not include impact of purchase accounting adjustment amortization Deposit Base Highlights n Highly granular deposit base with cost increases in line with expectations during the fourth quarter of 2023 n Top 100 depositors, by balance, make up 13% of our deposit base, and the top 200 depositors make up 16% n Excluding brokered deposits, account balances consist of 71% retail, 21% business, and 8% public funds as of December 31, 2023 n Uninsured and uncollateralized deposits estimated to be $601 million, or 14% of total deposits, as of December 31, 2023 n During the fourth quarter of 2023, $144 million of wealth management customer deposits were brought on balance sheet Interest Costs* 4Q23 Spot Interest Rates2 As of 12/31/23 Interest-bearing demand 0.43 % 0.44 % Money market 1.67 % 2.36 % Savings 0.27 % 0.30 % Time 3.16 % 3.43 % Brokered 5.42 % 5.42 % Total interest-bearing deposits 1.40 % 1.65 % Total deposits 1.05 % 1.25 % 1 Deposit Beta (4Q21 to 4Q23): 18.7%


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 6 n Fourth quarter 2023 net interest margin decreased 14 basis points from the prior quarter, primarily attributable to higher funding costs which outpaced an increase in asset yields n 38% of the loan portfolio matures or reprices within the next 12 months n Loan mix is 64% fixed rate and 36% variable rate, and 71% of variable rate loans have floors Net Interest Margin Annual Quarterly * Annualized measure; 1 Tax-equivalent basis metric; see "Non-GAAP reconciliations" in the Appendix for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures FTE NIM*1 GAAP NIM* Accretion of acquired loan discounts contribution to NIM* PPP loan fees contribution to NIM* FTE NIM1 GAAP NIM Accretion of acquired loan discounts contribution to NIM PPP loan fees contribution to NIM Percentage of Loans Maturing or Repricing 31.5% 6.2% 21.5% 24.4% 16.5% Fixed Variable <3m 3m-12m 12m-3y 3y-5y 5y+ 4.38% 3.60% 3.23% 3.60% 4.15% 4.31% 3.54% 3.18% 3.54% 4.09% 2019 2020 2021 2022 2023 4.17% 4.26% 4.22% 4.13% 3.99% 4.10% 4.20% 4.16% 4.07% 3.93% 4Q22 1Q23 2Q23 3Q23 4Q23 7bps 2bps 3bps 2bps 9bps N/A 9bps 24bps 4bps 0bps 2bps 7bps 9bps 10bps 10bps 0bps 0bps 0bps 0bps 0bps


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 71 Market area defined as within 60 miles of a branch Loan Portfolio Overview: Commercial and Commercial Real Estate n $1.66 billion portfolio as of December 31, 2023 Ø $881 million in non-owner occupied CRE primarily supported by rental cash flow of the underlying properties Ø $364 million in construction and land development loans primarily to developers to sell upon completion or for long-term investment Ø $418 million in multi-family loans secured by 5+ unit apartment buildings n Office CRE exposure characterized by solid credit metrics as of December 31, 2023 with only 2.0% rated pass-watch, less than 0.1% rated substandard, and less than 0.1% past due 30 days or more Commercial Real Estate PortfolioCommercial Loan Portfolio n $428 million C&I loans outstanding as of December 31, 2023 Ø For working capital, asset acquisition, and other business purposes Ø Underwritten primarily based on borrower’s cash flow and majority further supported by collateral and personal guarantees; loans based primarily in-market1 n $296 million owner-occupied CRE outstanding as of December 31, 2023 Ø Primarily underwritten based on cash flow of the business occupying the property and supported by personal guarantees; loans based primarily in-market Health Care and Social Assistance: 10% Auto Repair & Dealers: 10% Construction: 9% Real Estate, Rental, and Leasing: 9% Retail Trade-Other: 7% Wholesale Trade: 7%Manufacturing: 6% Restaurants and Bars: 5% Finance and Insurance: 5% Professional, Scientific, and Technical Services: 4% Grain Elevators: 3% Arts, Entertainment, and Recreation: 3% Other: 22% Multi-Family: 34% Warehouse/ Manufacturing: 13% Retail: 12% Office: 10% Senior Living Facilities: 6% Hotels: 6% Land and Lots: 5% 1-4 Family Construction: 3% Medical: 2% Auto Repair & Dealers: 1% Other: 8%


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 8 Loan Portfolio Overview: Selected Portfolios Agriculture and Farmland n $287 million portfolio as of December 31, 2023 n Borrower operations focus primarily on corn and soybean production n Federal crop insurance programs mitigate production risks n No customer accounts for more than 3% of the agriculture portfolio n Weighted average LTV on Farmland loans is 57.2% n 1.2% is rated substandard as of December 31, 2023 n Over 70% of agricultural borrowers have been with the Company for at least 10 years, and over half for more than 20 years Municipal, Consumer and Other n $239 million portfolio as of December 31, 2023 Ø Loans to municipalities are primarily federally tax-exempt Ø Consumer loans include loans to individuals for consumer purposes and typically consist of small balance loans Ø Other loans primarily include loans to nondepository financial institutions n Commercial Tax-Exempt - Senior Living Ø $44.8 million portfolio with $4.5 million average loan size Ø Weighted average LTV of 76.7% Ø 33.4% is rated substandard n Commercial Tax-Exempt – Medical Ø $23.8 million portfolio with $2.2 million average loan size Ø Weighted average LTV of 34.9% Ø No loans are rated substandard Farmland: 59% Crops: 31% Equipment: 8% Livestock: 2% Municipalities: 19% Commercial Tax- Exempt (Senior Living): 19% Commercial Tax- Exempt (Medical): 10% Consumer: 5% Other: 47%


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 9 Loan Portfolio Overview: ACL and Asset Quality 4Q23 ACL on Loans Activity ($000) Watch List and Nonaccrual Loans ($000) As of 9/30/23 Change As of 12/31/23 Pass-Watch $ 90,359 $ 7,847 $ 98,206 Substandard 68,262 (3,940) 64,322 Nonaccrual1 6,678 1,142 7,820 CECL Methodology and Oversight n Discounted cash flow method utilized for majority of loan segments, except weighted average remaining maturity method used for consumer loans n Credit loss drivers determined by regression analysis includes Company and peer loss data and macroeconomic variables, including unemployment and GDP n ACL / Loans of 1.18% as of December 31, 2023 n ACL Committee provides model governance and oversight ACL on Unfunded Commitments n ACL on unfunded lending-related commitments decreased by $0.5 million to $3.8 million during the fourth quarter of 2023 38,863 (476) (373) 1,128 906 40,048 3Q23 Net Charge-offs Changes in Specific Reserves Changes in Economic Forecast and Qualitative Factors Changes in Portfolio and Other Changes 4Q23 1 Includes $2.6 million of loans that are wholly or partially guaranteed by the U.S. Government as of December 31, 2023.


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 10 4.5 4.8 5.9 5.7 6.9 1.6 1.7 1.9 2.4 2.0 0.4 0.4 0.2 0.8 0.6 Asset Management and Trust Services Agricultural Services - Farm Management Agricultural Services - Real Estate Brokerage Investment Brokerage Total 2019 2020 2021 2022 2023 $0 $1 $2 $3 $4 $5 $6 $7 $8 $9 $10 Wealth Management Overview Comprehensive Wealth Management Services n Proprietary investment management solutions n Financial planning n Trust and estate administration Wealth Management Revenue Trends ($mm) Agricultural Services n Farm management services: Over 76,000 acres managed as of December 31, 2023 n Real estate brokerage including auction services n Farmland appraisals $9.9 $6.8 $7.2 $8.4 $9.2 Over $2.3 billion of assets under management or administration as of December 31, 2023


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 11 Securities Portfolio Overview Financial data as of December 31, 2023, unless otherwise indicated Securities Overview Key Investment Portfolio Metrics ($000) AFS HTM Total Amortized Cost $ 831,624 $ 521,439 $ 1,353,063 Unrealized Gain/(Loss) (72,163) (54,943) (127,106) Allowance for Credit Losses — — — Fair Value 759,461 466,496 1,225,957 Book Yield 2.16 % 2.43 % 2.26 % Effective Duration (Years) 3.26 4.93 3.90 Portfolio Composition U.S. Treasury: 12% U.S. Gov't Agency: 11% Municipal: 20% Agency RMBS: 21% Agency CMBS: 32% Corporate: 4% Amortized Cost: $1,353mm Book Yield: 2.26% Book Yield: 2.50% Book Yield: 1.98% Book Yield: 1.37% Book Yield: 2.02% Book Yield: 2.88% Book Yield: 4.47% n Company’s debt securities consist primarily of the following types of fixed income instruments: n Agency guaranteed MBS: MBS pass-throughs, CMOs, and CMBS n Municipal Bonds: weighted average NRSRO credit rating of Aa2/AA n Treasury, Government Agency Debentures, and SBA- backed Full Faith and Credit Debt n Corporate Bonds: Investment Grade Corporate and Bank Subordinated Debt n Investment strategy focused on maximizing returns and managing the Company’s asset sensitivity with high credit quality intermediate duration investments n Company emphasizes predictable cash flows that limit faster prepayments when rates decline or extended durations when rates rise n Net loss of $3.4 million on sale of $66.8 million of municipal securities in January 2024 with proceeds used to reduce wholesale funding. The book yield of the securities sold was 1.87% and the average life was 6.7 years.


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 12 Capital and Liquidity Overview Liquidity Sources ($000) 1 Non-GAAP financial measure. See “Non-GAAP Reconciliations” in the Appendix for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.; 2 Represents FHLB advance capacity based on loans currently pledged. Additional capacity of approximately $381 million would be available by pledging additional eligible loans. As of 12/31/23 Balance of Cash and Cash Equivalents $141,252 Fair Value of Unpledged Securities 827,760 Available FHLB Advance Capacity2 687,235 Available Fed Fund Lines of Credit 80,000 Total Estimated Sources of Liquidity $1,736,247 Capital and Liquidity Highlights n Overall capital levels remain strong, all capital measures increased during 4Q23, and remain well above regulatory requirements n Decreases in capital measures from YE22 to 1Q23 were primarily a result of the Town and Country acquisition n If all unrealized losses on debt securities, regardless of accounting classification, were included in tangible equity, tangible common equity to tangible assets would be 7.46% n Recent drop in interest rates drove a $21.3 million increase in our accumulated other comprehensive income (loss), which when coupled with strong earnings retention, resulted in tangible common equity to tangible assets increasing to 8.19% as of December 31, 2023 n With the loan to deposit ratio at 77%, there is more than sufficient on-balance sheet liquidity that is also supplemented by multiple untapped liquidity sources CET 1 Risk-Based Capital Ratio (%) 13.06 13.37 13.07 11.79 11.78 11.88 12.12 YE20 YE21 YE22 1Q23 2Q23 3Q23 4Q23 Tangible Common Equity to Tangible Assets (%) 9.27 8.89 8.06 7.45 7.54 7.64 8.19 YE20 YE21 YE22 1Q23 2Q23 3Q23 4Q23 1


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 13 Near-Term Outlook n Total loans are expected to be flat to down slightly in 1Q24, but we expect loans to grow by low to mid-single digits year-over-year during 2024 n Deposit outflows have largely subsided, but movement into higher cost products is expected to continue n Investment portfolio is expected to average approximately $33 million of principal cash flows a quarter during 2024 with proceeds used to fund loan growth, decrease wholesale funding, or be reinvested into the securities portfolio n NIM is expected to continue to decline modestly during 1Q24, and flatten in 2Q24 to 3Q24 based on the current interest rate outlook and liquidity position n Noninterest income during 2024 is expected to grow in low single digits from 4Q23 n Noninterest expense should remain between $31 million and $32 million per quarter for 2024 n Asset quality expected to remain solid, although increasing unemployment and a declining economy, if any were to occur, could cause increased provisions n Stock repurchase program will continue to be used opportunistically with $15 million available under the current plan through January 1, 2025 n Current capital levels and stock valuation compared to peers support M&A if an opportunity arises


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 14 Our History – Long track record of organic and acquisitive growth Fred Drake named President and CEO of Heartland Bank and Trust Company and leads its entry into Bloomington- Normal 1992 1964 - 1982 George Drake purchases El Paso National Bank and assembles group of banks in rural communities in Central IL M.B. Drake starts bank in Central IL 1920 HBT Financial, Inc. incorporates as a multi- bank holding company owning three banks 1982 1997 All five banks owned by HBT Financial, Inc. merge into Heartland Bank and Trust Company Wave of FDIC- assisted and strategic acquisitions, including expansion into the Chicago MSA 2010-2015 Acquisition1 of Lincoln S.B. Corp (State Bank of Lincoln) 2018 Company crosses $1bn in assets 2007 1999 - 2008 Entry into several new markets in Central IL through de novo branches and acquisitions 1 Although the Lincoln S.B. Corp transaction is identified as an acquisition above, the transaction was accounted for as a change of reporting entity due to its common control with the Company 2019 Completion of IPO in October 2020 Merger of State Bank of Lincoln into Heartland Bank and Trust Company 2021 Entry into Iowa with NXT Bank acquisition 2023 Completed acquisition of Town and Country Financial Corporation


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 15 Full-Service Branches Central Illinois: 45 Chicago MSA: 18 Iowa: 4 Central Illinois branches Chicago MSA branches Iowa branches Our Markets Source: S&P Capital IQ; Financial data as of December 31, 2023 Full-Service Branch Locations Deposits Central Illinois: 70% Chicago MSA: 27% Iowa: 3% $4.4bn Loans Central Illinois: 50%Chicago MSA: 41% Iowa: 9% $3.4bn 67 Locations


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 16 Business Strategy n Drake family involved in Central IL banking since 1920 n Management lives and works in our communities n Community banking and relationship-based approach stems from adherence to our Midwestern values n Committed to providing products and services to support the unique needs of our customer base n Vast majority of loans originated to borrowers domiciled within 60 miles of a branch n Robust underwriting standards will continue to be a hallmark of the Company n Maintained sound credit quality and minimal originated problem asset levels during the Great Recession n Diversified loan portfolio primarily within footprint n Underwriting continues to be a strength as evidenced by NCOs / loans of (0.01)% during 2021, (0.08)% during 2022, and 0.01% during 2023; NPLs / loans of 0.11% at 2021; 0.08% at 2022, and 0.23% at 2023 n Positioned to be the acquirer of choice for many potential partners in and adjacent to our existing markets n Successful integration of 10 community bank acquisitions2 since 2007 n Chicago MSA, in particular, has ~80 banking institutions with less than $2bn in assets n 1.43% ROAA3 and 3.23% NIM4 during 2021; 1.31% ROAA3 and 3.60% NIM4 during 2022; 1.59% ROAA3 and 4.15% NIM4 during 2023 n Highly profitable through the Great Recession n Highly defensible market position (Top 2 deposit share rank in 6 of 7 largest Central Illinois markets in which the Company operates1) that contributes to our strong core deposit base and funding advantage n Continue to deploy our excess deposit funding (77% loan-to-deposit ratio as of 4Q23) into attractive loan opportunities in larger, more diversified markets n Efficient decision-making process provides a competitive advantage over the larger and more bureaucratic money center and super regional financial institutions that compete in our markets Preserve strong ties to our communities Deploy excess deposit funding into loan growth opportunities Maintain a prudent approach to credit underwriting Pursue strategic acquisitions and sustain strong profitability 1 Source: S&P Capital IQ, data as of June 30, 2023; 2 Includes merger with Lincoln S.B. Corp in 2018, although the transaction was accounted for as a change of reporting entity due to its common control with Company; 3 Metrics based on adjusted net income, which is a non-GAAP metric; for reconciliation with GAAP metrics, see “Non-GAAP reconciliations” in Appendix; 4 Metrics presented on tax- equivalent basis; for reconciliation with GAAP metric, see “Non-GAAP reconciliations” in Appendix. Small enough to know you, big enough to serve you


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 17 Experienced executive management team with deep community ties Fred L. Drake Executive Chairman 40 years with Company 43 years in industry J. Lance Carter President and Chief Executive Officer 22 years with Company 30 years in industry Lawrence J. Horvath Chief Lending Officer 13 years with Company 38 years in industry Mark W. Scheirer Chief Credit Officer 12 years with Company 31 years in industry Andrea E. Zurkamer Chief Risk Officer 10 years with Company 23 years in industry Diane H. Lanier Chief Retail Officer 26 years with Company 38 years in industry Peter Chapman Chief Financial Officer Joined HBT in Oct. 2022 30 years in industry


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 18 Talented Board of Directors with deep financial services industry experience Fred L. Drake Executive Chairman • Director since 1984 • 40 years with Company • 43 years in industry J. Lance Carter Director • Director since 2011 • President and CEO of HBT Financial and Heartland Bank • 22 years with Company • 30 years in industry Patrick F. Busch Director • Director since 1998 • Vice Chairman of Heartland Bank • 28 years with Company • 45 years in industry Eric E. Burwell Director • Director since 2005 • Owner, Burwell Management Company • Invests in a variety of real estate, private equity, venture capital and liquid investments Linda J. Koch Director • Director since 2020 • Former President and CEO of the Illinois Bankers Association • 36 years in industry Gerald E. Pfeiffer Director • Director since 2019 • Former Partner at CliftonLarsonAllen LLP with 46 years of industry experience • Former CFO of Bridgeview Bancorp Allen C. Drake Director • Director since 1981 • Retired EVP with 27 years of experience at Company • Formerly responsible for Company’s lending, administration, technology, personnel, accounting, trust and strategic planning Dr. C. Alvin Bowman Director • Director since 2019 • Former President of Illinois State University • 36 years in higher education Roger A. Baker Director • Director since 2022 • Former Chairman and President of NXT Bancorporation • Owner, Sinclair Elevator, Inc. • 15 years in industry


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 19 Investment Highlights 3 1 2 4 Track record of successfully integrating acquisitions Consistent performance through cycles drives long-term tangible book value growth Strong, granular, low-cost deposit base provides funding for loan growth opportunities Prudent risk management


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 20 Consistent performance through cycles. . . Drivers of Profitability Source: S&P Capital IQ as available on January 11, 2024; For 2006 through June 30, 2012, the Company’s pre-tax ROAA does not include Lincoln S.B. Corp. and its subsidiaries; 1 Non-GAAP financial measure; HBT pre-tax ROAA adjusted to exclude the following significant non-recurring items in the following years: 2011: $25.4 million bargain purchase gains; 2012: $11.4 million bargain purchase gains, $9.7 million net realized gain on securities, and $6.7 million net positive adjustments on FDIC indemnification asset and true-up liability; 2013: $9.1 million net realized loss on securities and $6.9 million net loss related to the sale of branches; 2 Represents 35 high performing major exchange-traded banks headquartered in the Midwest with $2-10bn in assets and a 2022 core return on average assets above 1.0% Strong, granular, low-cost deposits supported by our leading market share in our Central Illinois markets 1 Relationship-based business model that has allowed us to cultivate and underwrite attractively priced loans A robust credit risk management framework to prudently manage credit quality Diversified sources of fee income, including in wealth management 4 Consistent outperformance, even during periods of broad economic stress 1 2 3 Pre-Tax Return on Average Assets (%) Company Company Adjusted High-Performing Peer Median 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 3Q23 YTD 0.00% 0.25% 0.50% 0.75% 1.00% 1.25% 1.50% 1.75% 2.00% 2.25% 2.50% 2.75% 3.00% 1 2


 
Arial 0 101 88 14 137 119 8 176 152 96 194 80 166 182 64 215 237 234 109 110 106 255 255 255 0 0 0 0 101 88 1st Level Bullet Text Charts Soft colors 211, 217, 216 211, 223, 220 217, 236, 215 211, 226, 222 242, 249, 248 249, 252, 251 250, 250, 250 229, 233, 213 21 4.69 5.38 6.10 6.91 16.23 17.27 17.80 10.54 11.12 12.29 13.13 11.94 12.90 (7.26) 2007 2008 2009 2010 2017 2018 3Q19 IPO Dilution 3Q19 IPO Adjusted 2019 2020 2021 2022 2023 0.20 0.40 0.60 5.01 5.88 7.83 0.60 1.20 1.84 2.52 2007 2008 2009 2010 2017 2018 3Q19 2019 2020 2021 2022 2023 . . . drives long-term tangible book value growth Tangible Book Value Per Share Over Time ($ per share)1 1 For reconciliation with GAAP metric, see “Non-GAAP reconciliations” in Appendix; 2 In 2019, HBT Financial issued and sold 9,429,794 shares of common stock at a price of $16 per share. Total proceeds received by the Company, net of offering costs, were $138.5 million and were used to substantially fund a $170 million special dividend to stockholders of record prior to the initial public offering. Amount reflects dilution per share attributable to newly issued shares in initial public offering and special dividend payment. For reconciliation with GAAP metric, see “Non-GAAP reconciliations”; 3 Excludes dividends paid to S Corp shareholders for estimated tax liability prior to conversion to C Corp status on October 11, 2019. Excludes $170 million special dividend funded primarily from IPO proceeds. For reconciliation with GAAP metric, see “Non-GAAP reconciliations” in Appendix. 1 Cumulative Effect of Dividends Paid ($ per share)3 TBVPS CAGR1 : 12.0% TBVPS CAGR1 : 4.9% Town and Country acquisition dilution in 1Q23 estimated to be $0.68 when including acquisition expenses Negative AOCI reduces TBVPS by $1.81 as of 2023 2 2 n From 2007 to IPO, HBT generated 12.0% annual compound growth of TBVPS n Since our IPO in