HBT Financial, Inc. Announces Third Quarter 2024 Financial Results

Источник: Nasdaq GlobeNewswire / 21 окт 2024 07:05:01 America/New_York

Third Quarter Highlights

Net income of $18.2 million, or $0.57 per diluted share; return on average assets (“ROAA”) of 1.44%; return on average stockholders' equity (“ROAE”) of 13.81%; and return on average tangible common equity (“ROATCE”)⁽¹⁾ of 16.25%
Adjusted net income⁽¹⁾ of $19.2 million; or $0.61 per diluted share; adjusted ROAA⁽¹⁾ of 1.53%; adjusted ROAE⁽¹⁾ of 14.62%; and adjusted ROATCE⁽¹⁾ of 17.20%
Asset quality remained strong with nonperforming assets to total assets of 0.17% and net charge-offs to average loans of 0.07%, on an annualized basis
Net interest margin and net interest margin (tax-equivalent basis)⁽¹⁾ expanded to 3.98% and 4.03%, respectively

BLOOMINGTON, Ill., Oct. 21, 2024 (GLOBE NEWSWIRE) -- 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 $18.2 million, or $0.57 diluted earnings per share, for the third quarter of 2024. This compares to net income of $18.1 million, or $0.57 diluted earnings per share, for the second quarter of 2024, and net income of $19.7 million, or $0.62 diluted earnings per share, for the third quarter of 2023.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “In the third quarter, we continued our consistently solid financial performance with net income of $18.2 million, adjusted net income⁽¹⁾ of $19.2 million, adjusted ROAA⁽¹⁾ of 1.53% and adjusted ROATCE⁽¹⁾ of 17.20%. We have also seen tangible equity continue to build, with tangible book value per share increasing 23.3% over the last year. Our net interest margin (tax-equivalent basis)⁽¹⁾ increased 3 basis points to 4.03% while funding costs remained modest, increasing 5 basis points to 1.47%. Our asset quality remains strong with net charge-offs at 0.07% of average loans on an annualized basis during the quarter and nonperforming assets to total assets at 0.17%. We have not seen any significant signs of stress in our loan portfolio, but we continue to monitor the portfolio closely. Noninterest income remained consistent and noninterest expense of $31.3 million was up only 2.1% when compared to the third quarter of 2023, as we remain focused on operational efficiency while continuing to invest in our business. Lastly, all capital ratios had solid increases and can support future organic growth or acquisitions.”
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(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

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 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 $19.2 million, or $0.61 adjusted diluted earnings per share, for the third quarter of 2024. This compares to adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the second quarter of 2024, and adjusted net income of $20.3 million, or $0.63 adjusted diluted earnings per share, for the third quarter of 2023 (see “Reconciliation of Non-GAAP Financial Measures” tables below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures).

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2024 was $47.7 million, an increase of 1.5% from $47.0 million for the second quarter of 2024. The increase was primarily attributable to improved loan yields which were mostly offset by an increase in funding costs.

Relative to the third quarter of 2023, net interest income decreased 1.1% from $48.3 million. The decrease was primarily attributable to higher funding costs which were partially offset by higher asset yields and an increase in interest-earning assets.

Net interest margin for the third quarter of 2024 was 3.98%, compared to 3.95% for the second quarter of 2024, and net interest margin (tax-equivalent basis)⁽¹⁾ for the third quarter of 2024 was 4.03%, compared to 4.00% for the second quarter of 2024. Higher yields on interest-earning assets, which increased by 7 basis points to 5.35%, were mostly offset by an increase in funding costs, with the cost of funds increasing by 5 basis points to 1.47%.

Relative to the third quarter of 2023, net interest margin decreased 9 basis points from 4.07% and net interest margin (tax-equivalent basis)⁽¹⁾decreased 10 basis points from 4.13%. These decreases were primarily attributable to increases in funding costs outpacing increases in interest-earning asset yields.
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(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 third quarter of 2024 was $8.7 million, a decrease from $9.6 million for the second quarter of 2024. The decrease was primarily attributable to changes in the mortgage servicing rights (“MSR”) fair value adjustment, with a $1.5 million negative MSR fair value adjustment included in the third quarter 2024 results compared to a $0.1 million negative MSR fair value adjustment included in the second quarter 2024 results. Partially offsetting the MSR fair value adjustment was a $0.2 million increase in service charge income and a $0.2 million increase in other noninterest income, primarily attributable to swap fee income.

Relative to the third quarter of 2023, noninterest income decreased 8.3% from $9.5 million. The decrease was primarily attributable to the $1.5 million negative MSR fair value adjustment included in the third quarter 2024 results, partially offset by the absence of $0.8 million in realized losses on the sale of securities included in the third quarter 2023 results.

Noninterest Expense

Noninterest expense for the third quarter of 2024 was $31.3 million, a 2.7% increase from $30.5 million for the second quarter of 2024. The increase was primarily attributable to a $0.5 million increase in occupancy expense, driven in part by a seasonal increase in planned building maintenance expenses, and a $0.4 million increase in marketing and customer relations expense.

Relative to the third quarter of 2023, noninterest expense increased 2.1% from $30.7 million. The increase was primarily attributable to a $0.7 million increase in salaries and a $0.4 million increase in employee benefits. Partially offsetting these increases was a $0.3 million decrease in marketing and customer relations expense.

On February 1, 2023, HBT Financial completed its acquisition of Town and Country Financial Corporation (“Town and Country”) with the core system conversion successfully completed in April 2023. Acquisition-related expenses recognized during the nine months ended September 30, 2023 are summarized below. No Town and Country acquisition-related expenses were recognized subsequent to the second quarter of 2023.

(dollars in thousands)		Nine Months Ended September 30, 2023

PROVISION FOR CREDIT LOSSES	$	5,924
NONINTEREST EXPENSE
Salaries		3,584
Furniture and equipment		39
Data processing		2,031
Marketing and customer relations		24
Loan collection and servicing		125
Legal fees and other noninterest expense		1,964
Total noninterest expense		7,767
Total acquisition-related expenses	$	13,691

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.37 billion at September 30, 2024, compared with $3.39 billion at June 30, 2024, and $3.34 billion at September 30, 2023. The $15.7 million decrease from June 30, 2024 was primarily attributable to several larger commercial real estate loan payoffs due to the sale of the property and a couple of larger one-to-four family residential loan payoffs. These decreases were partially offset by increased line usage and term originations in our agricultural and farmland portfolio.

Deposits

Total deposits were $4.28 billion at September 30, 2024, compared with $4.32 billion at June 30, 2024, and $4.20 billion at September 30, 2023. The $38.0 million decrease from June 30, 2024 was primarily attributable to lower balances maintained in retail accounts and a $18.3 million decrease in escrow balances related to seasonal tax payments, partially offset by increases in public funds and business accounts. Additionally, we continue to see a shift towards higher cost deposit products, with decreases in noninterest-bearing deposits, interest-bearing demand, and savings balances being partially offset by an increase in money market and time deposit balances.

Asset Quality

Nonperforming loans totaled $8.2 million, or 0.24% of total loans, at September 30, 2024, compared with $8.4 million, or 0.25% of total loans, at June 30, 2024, and $6.7 million, or 0.20% of total loans, at September 30, 2023. Additionally, of the $8.2 million of nonperforming loans held as of September 30, 2024, $2.0 million is either wholly or partially guaranteed by the U.S. government. The $0.2 million decrease in nonperforming loans from June 30, 2024 was primarily attributable to the payoff of $0.1 million in nonaccrual agricultural and farmland loans.

The Company recorded a provision for credit losses of $0.6 million for the third quarter of 2024. The provision for credit losses primarily reflects a $1.2 million increase in required reserves resulting from changes in economic forecasts; a $0.2 million increase in required reserves resulting from qualitative factor changes; a $0.6 million decrease in required reserves driven by decreased loan balances and changes within the loan portfolio; and a $0.2 million decrease in specific reserves.

The Company had net charge-offs of $0.6 million, or 0.07% of average loans on an annualized basis, for the third quarter of 2024, compared to net charge-offs of $0.7 million, or 0.08% of average loans on an annualized basis, for the second quarter of 2024, and net recoveries of $0.1 million, or 0.01% of average loans on an annualized basis, for the third quarter of 2023. During the third quarter of 2024, net charge-offs were primarily recognized in the commercial and industrial category which had $0.7 million of net charge-offs.

The Company’s allowance for credit losses was 1.22% of total loans and 499% of nonperforming loans at September 30, 2024, compared with 1.21% of total loans and 484% of nonperforming loans at June 30, 2024. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $4.1 million as of September 30, 2024, compared with $4.3 million as of June 30, 2024.

Capital

As of September 30, 2024, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:

	September 30, 2024		For Capital Adequacy Purposes With Capital Conservation Buffer

Total capital to risk-weighted assets	16.54	%	10.50	%
Tier 1 capital to risk-weighted assets	14.48		8.50
Common equity tier 1 capital ratio	13.15		7.00
Tier 1 leverage ratio	11.16		4.00

The ratio of tangible common equity to tangible assets⁽¹⁾ increased to 9.35% as of September 30, 2024, from 8.74% as of June 30, 2024, and tangible book value per share⁽¹⁾ increased by $0.91 to $14.55 as of September 30, 2024, when compared to June 30, 2024.

During the third quarter of 2024, the Company did not repurchase shares of its common stock under its stock repurchase program. The Company’s Board of Directors has authorized the repurchase of up to $15 million of HBT Financial common stock under its stock repurchase program, which is in effect until January 1, 2025. As of September 30, 2024, the Company had $10.6 million remaining under the stock repurchase program.
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(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

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 Financial provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa through 66 full-service branches. As of September 30, 2024, HBT Financial had total assets of $5.0 billion, total loans of $3.4 billion, and total deposits of $4.3 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), ratio of tangible common equity to tangible assets, tangible book value per share, ROATCE, adjusted net income, adjusted earnings per share, adjusted ROAA, adjusted ROAE, and adjusted ROATCE. 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.

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, 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 Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (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 or as a result of the upcoming 2024 presidential election; (v) changes in interest rates and prepayment rates of the Company’s assets; (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 (including commercial real estate loans), 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

HBT Financial, Inc. Unaudited Consolidated Financial Summary

	As of or for the Three Months Ended									Nine Months Ended September 30,
(dollars in thousands, except per share data)	September 30, 2024			June 30, 2024			September 30, 2023				2024			2023
Interest and dividend income	$	64,117		$	62,824		$	59,041		$	188,902		$	167,588
Interest expense		16,384			15,796			10,762			47,453			23,600
Net interest income		47,733			47,028			48,279			141,449			143,988
Provision for credit losses		603			1,176			480			2,306			6,460
Net interest income after provision for credit losses		47,130			45,852			47,799			139,143			137,528
Noninterest income		8,705			9,610			9,490			23,941			26,841
Noninterest expense		31,322			30,509			30,671			93,099			100,577
Income before income tax expense		24,513			24,953			26,618			69,985			63,792
Income tax expense		6,333			6,883			6,903			18,477			16,396
Net income	$	18,180		$	18,070		$	19,715		$	51,508		$	47,396

Earnings per share - Diluted	$	0.57		$	0.57		$	0.62		$	1.62		$	1.49

Adjusted net income ⁽¹⁾	$	19,244		$	18,139		$	20,279		$	55,456		$	58,910
Adjusted earnings per share - Diluted ⁽¹⁾		0.61			0.57			0.63			1.75			1.86

Book value per share	$	17.04		$	16.14		$	14.36
Tangible book value per share ⁽¹⁾		14.55			13.64			11.80

Shares of common stock outstanding		31,559,366			31,559,366			31,774,140
Weighted average shares of common stock outstanding		31,559,366			31,579,457			31,829,250			31,600,442			31,598,650

SUMMARY RATIOS
Net interest margin *		3.98	%		3.95	%		4.07	%		3.96	%		4.14	%
Net interest margin (tax-equivalent basis) * ⁽¹⁾⁽²⁾		4.03			4.00			4.13			4.01			4.20

Efficiency ratio		54.24	%		52.61	%		51.85	%		55.00	%		57.73	%
Efficiency ratio (tax-equivalent basis) ⁽¹⁾⁽²⁾		53.71			52.10			51.25			54.45			57.04

Loan to deposit ratio		78.72	%		78.39	%		79.63	%

Return on average assets *		1.44	%		1.45	%		1.58	%		1.37	%		1.29	%
Return on average stockholders' equity *		13.81			14.48			17.02			13.58			14.22
Return on average tangible common equity * ⁽¹⁾		16.25			17.21			20.70			16.11			17.17

Adjusted return on average assets * ⁽¹⁾		1.53	%		1.45	%		1.62	%		1.48	%		1.61	%
Adjusted return on average stockholders' equity * ⁽¹⁾		14.62			14.54			17.51			14.62			17.68
Adjusted return on average tangible common equity * ⁽¹⁾		17.20			17.27			21.29			17.34			21.34

CAPITAL
Total capital to risk-weighted assets		16.54	%		16.01	%		15.09	%
Tier 1 capital to risk-weighted assets		14.48			13.98			13.18
Common equity tier 1 capital ratio		13.15			12.66			11.88
Tier 1 leverage ratio		11.16			10.83			10.34
Total stockholders' equity to total assets		10.77			10.18			9.14
Tangible common equity to tangible assets ⁽¹⁾		9.35			8.74			7.64

ASSET QUALITY
Net charge-offs (recoveries) to average loans *		0.07	%		0.08	%		(0.01)	%		0.04	%		(0.01)	%
Allowance for credit losses to loans, before allowance for credit losses		1.22			1.21			1.16
Nonperforming loans to loans, before allowance for credit losses		0.24			0.25			0.20
Nonperforming assets to total assets		0.17			0.17			0.16

* 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. Unaudited Consolidated Financial Summary Consolidated Statements of Income

	Three Months Ended									Nine Months Ended September 30,
(dollars in thousands, except per share data)	September 30, 2024			June 30, 2024			September 30, 2023				2024			2023
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable	$	53,650		$	52,177		$	49, 640		$	157,753		$	138,948
Federally tax exempt		1,133			1,097			1,072			3,324			3,064
Debt Securities:
Taxable		6,453			6,315			6,402			18,972			19,460
Federally tax exempt		502			521			978			1,620			3,337
Interest-bearing deposits in bank		2,230			2,570			714			6,752			2,234
Other interest and dividend income		149			144			235			481			545
Total interest and dividend income		64,117			62,824			59,041			188,902			167,588
INTEREST EXPENSE
Deposits		14,649			14,133			7,211			42,375			13,908
Securities sold under agreements to repurchase		134			129			35			415			107
Borrowings		119			121			2,108			365			5,594
Subordinated notes		470			469			470			1,409			1,409
Junior subordinated debentures issued to capital trusts		1,012			944			938			2,889			2,582
Total interest expense		16,384			15,796			10,762			47,453			23,600
Net interest income		47,733			47,028			48,279			141,449			143,988
PROVISION FOR CREDIT LOSSES		603			1,176			480			2,306			6,460
Net interest income after provision for credit losses		47,130			45,852			47,799			139,143			137,528
NONINTEREST INCOME
Card income		2,753			2,885			2,763			8,254			8,326
Wealth management fees		2,670			2,623			2,381			7,840			6,998
Service charges on deposit accounts		2,081			1,902			2,040			5,852			5,830
Mortgage servicing		1,113			1,111			1,169			3,279			3,522
Mortgage servicing rights fair value adjustment		(1,488	)		(97	)		23			(1,505	)		(460	)
Gains on sale of mortgage loans		461			443			476			1,202			1,125
Realized gains (losses) on sales of securities		—			—			(813	)		(3,382	)		(1,820	)
Unrealized gains (losses) on equity securities		136			(96	)		(46	)		24			(61	)
Gains (losses) on foreclosed assets		(44	)		(28	)		550			15			443
Gains (losses) on other assets		(2	)		—			52			(637	)		161
Income on bank owned life insurance		170			166			153			500			415
Other noninterest income		855			701			742			2,499			2,362
Total noninterest income		8,705			9,610			9,490			23,941			26,841
NONINTEREST EXPENSE
Salaries		16,325			16,364			15,644			49,346			51,715
Employee benefits		2,997			2,860			2,616			8,662			7,658
Occupancy of bank premises		2,695			2,243			2,573			7,520			7,460
Furniture and equipment		446			548			667			1,544			2,135
Data processing		2,640			2,606			2,581			8,171			9,787
Marketing and customer relations		1,380			996			1,679			3,372			3,874
Amortization of intangible assets		710			710			720			2,130			1,950
FDIC insurance		572			565			512			1,697			1,705
Loan collection and servicing		476			475			345			1,403			971
Foreclosed assets		19			10			76			78			234
Other noninterest expense		3,062			3,132			3,258			9,176			13,088
Total noninterest expense		31,322			30,509			30,671			93,099			100,577
INCOME BEFORE INCOME TAX EXPENSE		24,513			24,953			26,618			69,985			63,792
INCOME TAX EXPENSE		6,333			6,883			6,903			18,477			16,396
NET INCOME	$	18,180		$	18,070		$	19,715		$	51,508		$	47,396

EARNINGS PER SHARE - BASIC	$	0.58		$	0.57		$	0.62		$	1.63		$	1.50
EARNINGS PER SHARE - DILUTED	$	0.57		$	0.57		$	0.62		$	1.62		$	1.49
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING		31,559,366			31,579,457			31,829,250			31,600,442			31,598,650

HBT Financial, Inc. Unaudited Consolidated Financial Summary Consolidated Balance Sheets

(dollars in thousands)	September 30, 2024			June 30, 2024			September 30, 2023
ASSETS
Cash and due from banks	$	26,776		$	22,604		$	24,757
Interest-bearing deposits with banks		152,895			172,636			87,156
Cash and cash equivalents		179,671			195,240			111,913

Interest-bearing time deposits with banks		—			520			500
Debt securities available-for-sale, at fair value		710,303			669,055			753,163
Debt securities held-to-maturity		505,075			512,549			527,144
Equity securities with readily determinable fair value		3,364			3,228			3,106
Equity securities with no readily determinable fair value		2,638			2,613			2,300
Restricted stock, at cost		5,086			5,086			11,165
Loans held for sale		2,959			858			3,563

Loans, before allowance for credit losses		3,369,830			3,385,483			3,342,786
Allowance for credit losses		(40,966	)		(40,806	)		(38,863	)
Loans, net of allowance for credit losses		3,328,864			3,344,677			3,303,923

Bank owned life insurance		24,405			24,235			23,747
Bank premises and equipment, net		65,919			65,711			64,713
Bank premises held for sale		317			317			35
Foreclosed assets		376			320			1,519
Goodwill		59,820			59,820			59,820
Intangible assets, net		18,552			19,262			21,402
Mortgage servicing rights, at fair value		17,496			18,984			20,156
Investments in unconsolidated subsidiaries		1,614			1,614			1,614
Accrued interest receivable		24,160			22,425			23,447
Other assets		40,109			59,685			58,538
Total assets	$	4,990,728		$	5,006,199		$	4,991,768

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	1,008,359		$	1,045,697		$	1,086,877
Interest-bearing		3,272,341			3,272,996			3,111,191
Total deposits		4,280,700			4,318,693			4,198,068

Securities sold under agreements to repurchase		29,029			29,330			28,900
Federal Home Loan Bank advances		13,435			13,734			177,650
Subordinated notes		39,533			39,514			39,454
Junior subordinated debentures issued to capital trusts		52,834			52,819			52,774
Other liabilities		37,535			42,640			38,671
Total liabilities		4,453,066			4,496,730			4,535,517

Stockholders' Equity
Common stock		328			328			327
Surplus		296,810			296,430			295,483
Retained earnings		302,532			290,386			256,050
Accumulated other comprehensive income (loss)		(38,989	)		(54,656	)		(78,432	)
Treasury stock at cost		(23,019	)		(23,019	)		(17,177	)
Total stockholders’ equity		537,662			509,469			456,251
Total liabilities and stockholders’ equity	$	4,990,728		$	5,006,199		$	4,991,768
SHARES OF COMMON STOCK OUTSTANDING		31,559,366			31,559,366			31,774,140

HBT Financial, Inc. Unaudited Consolidated Financial Summary

(dollars in thousands)	September 30, 2024		June 30, 2024		September 30, 2023

LOANS
Commercial and industrial	$	395,598	$	400,276	$	386,933
Commercial real estate - owner occupied		288,838		289,992		297,242
Commercial real estate - non-owner occupied		889,188		889,193		901,929
Construction and land development		359,151		365,371		371,158
Multi-family		432,712		429,951		388,742
One-to-four family residential		472,040		484,335		488,655
Agricultural and farmland		297,102		285,822		275,239
Municipal, consumer, and other		235,201		240,543		232,888
Total loans	$	3,369,830	$	3,385,483	$	3,342,786

(dollars in thousands)	September 30, 2024		June 30, 2024		September 30, 2023

DEPOSITS
Noninterest-bearing deposits	$	1,008,359	$	1,045,697	$	1,086,877
Interest-bearing deposits:
Interest-bearing demand		1,076,445		1,094,797		1,134,721
Money market		795,150		769,386		673,780
Savings		566,783		582,752		623,083
Time		803,964		796,069		564,634
Brokered		29,999		29,992		114,973
Total interest-bearing deposits		3,272,341		3,272,996		3,111,191
Total deposits	$	4,280,700	$	4,318,693	$	4,198,068

HBT Financial, Inc. Unaudited Consolidated Financial Summary

	Three Months Ended
	September 30, 2024							June 30, 2024							September 30, 2023
(dollars in thousands)	Average Balance			Interest		Yield/Cost *		Average Balance			Interest		Yield/Cost *		Average Balance			Interest		Yield/Cost *

ASSETS
Loans	$	3,379,299		$	54,783	6.45	%	$	3,374,058		$	53,274	6.35	%	$	3,296,703		$	50,712	6.10	%
Debt Securities		1,191,642			6,955	2.32			1,187,795			6,836	2.31			1,317,603			7,380	2.22
Deposits with banks		185,870			2,230	4.77			211,117			2,570	4.90			77,595			714	3.65
Other		12,660			149	4.68			12,588			144	4.60			16,430			235	5.68
Total interest-earning assets		4,769,471		$	64,117	5.35	%		4,785,558		$	62,824	5.28	%		4,708,331		$	59,041	4.97	%
Allowance for credit losses		(40,780	)						(40,814	)						(38,317	)
Noninterest-earning assets		278,030							283,103							294,818
Total assets	$	5,006,721						$	5,027,847						$	4,964,832

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,085,609		$	1,408	0.52	%	$	1,123,592		$	1,429	0.51	%	$	1,160,654		$	761	0.26	%
Money market		800,651			4,726	2.35			788,744			4,670	2.38			682,772			2,026	1.18
Savings		573,077			396	0.27			592,312			393	0.27			639,384			249	0.15
Time		804,379			7,702	3.81			763,507			7,117	3.75			519,683			3,275	2.50
Brokered		29,996			417	5.54			38,213			524	5.51			66,776			900	5.34
Total interest-bearing deposits		3,293,712			14,649	1.77			3,306,368			14,133	1.72			3,069,269			7,211	0.93
Securities sold under agreements to repurchase		29,426			134	1.80			30,440			129	1.70			33,807			35	0.41
Borrowings		13,691			119	3.47			13,466			121	3.60			157,908			2,108	5.30
Subordinated notes		39,524			470	4.73			39,504			469	4.78			39,444			470	4.72
Junior subordinated debentures issued to capital trusts		52,827			1,012	7.63			52,812			944	7.18			52,767			938	7.05
Total interest-bearing liabilities		3,429,180		$	16,384	1.90	%		3,442,590		$	15,796	1.85	%		3,353,195		$	10,762	1.27	%
Noninterest-bearing deposits		1,013,893							1,043,614							1,105,472
Noninterest-bearing liabilities		39,903							39,806							46,564
Total liabilities		4,482,976							4,526,010							4,505,231
Stockholders' Equity		523,745							501,837							459,601
Total liabilities and stockholders’ equity	$	5,006,721						$	5,027,847						$	4,964,832

Net interest income/Net interest margin ⁽¹⁾				$	47,733	3.98	%				$	47,028	3.95	%				$	48,279	4.07	%
Tax-equivalent adjustment ⁽²⁾					552	0.05						553	0.05						675	0.06
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) ^{(2) (3)}				$	48,285	4.03	%				$	47,581	4.00	%				$	48,954	4.13	%
Net interest rate spread ⁽⁴⁾						3.45	%						3.43	%						3.70	%
Net interest-earning assets ⁽⁵⁾	$	1,340,291						$	1,342,968						$	1,355,136
Ratio of interest-earning assets to interest-bearing liabilities		1.39							1.39							1.40
Cost of total deposits						1.35	%						1.31	%						0.69	%
Cost of funds						1.47							1.42							0.96

* 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. Unaudited Consolidated Financial Summary

	Nine Months Ended
	September 30, 2024							September 30, 2023
(dollars in thousands)	Average Balance			Interest		Yield/Cost *		Average Balance			Interest		Yield/Cost *

ASSETS
Loans	$	3,374,875		$	161,077	6.38	%	$	3,183,641		$	142,012	5.96	%
Debt Securities		1,197,772			20,592	2.30			1,366,298			22,797	2.23
Deposits with banks		188,087			6,752	4.80			84,720			2,234	3.53
Other		12,744			481	5.04			15,334			545	4.75
Total interest-earning assets		4,773,478		$	188,902	5.29	%		4,649,993		$	167,588	4.82	%
Allowance for credit losses		(40,611	)						(37,053	)
Noninterest-earning assets		279,789							289,843
Total assets	$	5,012,656						$	4,902,783

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,112,198		$	4,148	0.50	%	$	1,204,937		$	1,902	0.21	%
Money market		800,693			14,193	2.37			664,036			4,467	0.90
Savings		592,134			1,232	0.28			678,495			616	0.12
Time		744,349			20,744	3.72			441,760			6,011	1.82
Brokered		50,046			2,058	5.49			22,987			912	5.30
Total interest-bearing deposits		3,299,420			42,375	1.72			3,012,215			13,908	0.62
Securities sold under agreements to repurchase		30,769			415	1.80			35,844			107	0.40
Borrowings		13,387			365	3.64			148,443			5,594	5.04
Subordinated notes		39,504			1,409	4.76			39,424			1,409	4.78
Junior subordinated debentures issued to capital trusts		52,812			2,889	7.31			51,054			2,582	6.76
Total interest-bearing liabilities		3,435,892		$	47,453	1.84	%		3,286,980		$	23,600	0.96	%
Noninterest-bearing deposits		1,031,239							1,123,917
Noninterest-bearing liabilities		38,943							46,310
Total liabilities		4,506,074							4,457,207
Stockholders' Equity		506,582							445,576
Total liabilities and stockholders’ equity	$	5,012,656							4,902,783

Net interest income/Net interest margin ⁽¹⁾				$	141,449	3.96	%				$	143,988	4.14	%
Tax-equivalent adjustment ⁽²⁾					1,680	0.05						2,092	0.06
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) ^{(2) (3)}				$	143,129	4.01	%				$	146,080	4.20	%
Net interest rate spread ⁽⁴⁾						3.45	%						3.86	%
Net interest-earning assets ⁽⁵⁾	$	1,337,586						$	1,363,013
Ratio of interest-earning assets to interest-bearing liabilities		1.39							1.41
Cost of total deposits						1.31	%						0.45	%
Cost of funds						1.42							0.72

* 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. Unaudited Consolidated Financial Summary

(dollars in thousands)	September 30, 2024			June 30, 2024			September 30, 2023

NONPERFORMING ASSETS
Nonaccrual	$	8,200		$	8,425		$	6,678
Past due 90 days or more, still accruing		5			7			—
Total nonperforming loans		8,205			8,432			6,678
Foreclosed assets		376			320			1,519
Total nonperforming assets	$	8,581		$	8,752		$	8,197

Nonperforming loans that are wholly or partially guaranteed by the U.S. Government	$	2,046		$	2,132		$	1,968

Allowance for credit losses	$	40,966		$	40,806		$	38,863
Loans, before allowance for credit losses		3,369,830			3,385,483			3,342,786

CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses		1.22	%		1.21	%		1.16	%
Allowance for credit losses to nonaccrual loans		499.59			484.34			581.96
Allowance for credit losses to nonperforming loans		499.28			483.94			581.96
Nonaccrual loans to loans, before allowance for credit losses		0.24			0.25			0.20
Nonperforming loans to loans, before allowance for credit losses		0.24			0.25			0.20
Nonperforming assets to total assets		0.17			0.17			0.16
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets		0.25			0.26			0.25

HBT Financial, Inc. Unaudited Consolidated Financial Summary

	Three Months Ended									Nine Months Ended September 30,
(dollars in thousands)	September 30, 2024			June 30, 2024			September 30, 2023				2024			2023

ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	40,806		$	40,815		$	37,814		$	40,048		$	25,333
Adoption of ASC 326		—			—			—			—			6,983
PCD allowance established in acquisition		—			—			—			—			1,247
Provision for credit losses		746			677			983			1,983			5,004
Charge-offs		(1,101	)		(870	)		(412	)		(2,198	)		(733	)
Recoveries		515			184			478			1,133			1,029
Ending balance	$	40,966		$	40,806		$	38,863		$	40,966		$	38,863

Net charge-offs (recoveries)	$	586		$	686		$	(66	)	$	1,065		$	(296	)
Average loans		3,379,299			3,374,058			3,296,703			3,374,875			3,183,641

Net charge-offs (recoveries) to average loans *		0.07	%		0.08	%		(0.01)	%		0.04	%		(0.01)	%

* Annualized measure.

	Three Months Ended								Nine Months Ended September 30,
(dollars in thousands)	September 30, 2024			June 30, 2024		September 30, 2023				2024		2023

PROVISION FOR CREDIT LOSSES
Loans ⁽¹⁾	$	746		$	677	$	983		$	1,983	$	5,004
Unfunded lending-related commitments ⁽¹⁾		(143	)		499		297			323		1,456
Debt securities		—			—		(800	)		—		—
Total provision for credit losses	$	603		$	1,176	$	480		$	2,306	$	6,460

(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 Net Income and Adjusted Return on Average Assets
	Three Months Ended									Nine Months Ended September 30,
(dollars in thousands)	September 30, 2024			June 30, 2024			September 30, 2023				2024			2023

Net income	$	18,180		$	18,070		$	19,715		$	51,508		$	47,396
Adjustments:
Acquisition expenses ⁽¹⁾		—			—			—			—			(13,691	)
Gains (losses) on closed branch premises		—			—			—			(635	)		75
Realized gains (losses) on sales of securities		—			—			(813	)		(3,382	)		(1,820	)
Mortgage servicing rights fair value adjustment		(1,488	)		(97	)		23			(1,505	)		(460	)
Total adjustments		(1,488	)		(97	)		(790	)		(5,522	)		(15,896	)
Tax effect of adjustments ⁽²⁾		424			28			226			1,574			4,382
Total adjustments after tax effect		(1,064	)		(69	)		(564	)		(3,948	)		(11,514	)
Adjusted net income	$	19,244		$	18,139		$	20,279		$	55,456		$	58,910

Average assets	$	5,006,721		$	5,027,847		$	4,964,832		$	5,012,656		$	4,902,783

Return on average assets *		1.44	%		1.45	%		1.58	%		1.37	%		1.29	%
Adjusted return on average assets *		1.53			1.45			1.62			1.48			1.61

* 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.
(2) Assumes a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measures – Adjusted Earnings Per Share — Basic and Diluted
	Three Months Ended							Nine Months Ended September 30,
(dollars in thousands, except per share amounts)	September 30, 2024		June 30, 2024		September 30, 2023				2024		2023

Numerator:
Net income	$	18,180	$	18,070	$	19,715		$	51,508	$	47,396
Earnings allocated to participating securities ⁽¹⁾		—		—		(10	)		—		(26	)
Numerator for earnings per share - basic and diluted	$	18,180	$	18,070	$	19,705		$	51,508	$	47,370

Adjusted net income	$	19,244	$	18,139	$	20,279		$	55,456	$	58,910
Earnings allocated to participating securities ⁽¹⁾		—		—		(10	)		—		(33	)
Numerator for adjusted earnings per share - basic and diluted	$	19,244	$	18,139	$	20,269		$	55,456	$	58,877

Denominator:
Weighted average common shares outstanding		31,559,366		31,579,457		31,829,250			31,600,442		31,598,650
Dilutive effect of outstanding restricted stock units		118,180		87,354		137,187			115,266		102,574
Weighted average common shares outstanding, including all dilutive potential shares		31,677,546		31,666,811		31,966,437			31,715,708		31,701,224

Earnings per share - Basic	$	0.58	$	0.57	$	0.62		$	1.63	$	1.50
Earnings per share - Diluted	$	0.57	$	0.57	$	0.62		$	1.62	$	1.49

Adjusted earnings per share - Basic	$	0.61	$	0.57	$	0.64		$	1.75	$	1.86
Adjusted earnings per share - Diluted	$	0.61	$	0.57	$	0.63		$	1.75	$	1.86

(1) The Company previously granted restricted stock units that contain non-forfeitable rights to dividend equivalents, which were considered participating securities. Prior to 2024, these restricted stock units were included in the calculation of 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.

Reconciliation of Non-GAAP Financial Measures – Net Interest Income (Tax-equivalent Basis) and Net Interest Margin (Tax-equivalent Basis)
	Three Months Ended									Nine Months Ended September 30,
(dollars in thousands)	September 30, 2024			June 30, 2024			September 30, 2023				2024			2023

Net interest income (tax-equivalent basis)
Net interest income	$	47,733		$	47,028		$	48,279		$	141,449		$	143,988
Tax-equivalent adjustment ⁽¹⁾		552			553			675			1,680			2,092
Net interest income (tax-equivalent basis) ⁽¹⁾	$	48,285		$	47,581		$	48,954		$	143,129		$	146,080

Net interest margin (tax-equivalent basis)
Net interest margin *		3.98	%		3.95	%		4.07	%		3.96	%		4.14	%
Tax-equivalent adjustment * ⁽¹⁾		0.05			0.05			0.06			0.05			0.06
Net interest margin (tax-equivalent basis) * ⁽¹⁾		4.03	%		4.00	%		4.13	%		4.01	%		4.20	%

Average interest-earning assets	$	4,769,471		$	4,785,558		$	4,708,331		$	4,773,478		$	4,649,993

* Annualized measure.
(1) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measures – Efficiency Ratio (Tax-equivalent Basis)
	Three Months Ended									Nine Months Ended September 30,
(dollars in thousands)	September 30, 2024			June 30, 2024			September 30, 2023				2024			2023

Efficiency ratio (tax-equivalent basis)
Total noninterest expense	$	31,322		$	30,509		$	30,671		$	93,099		$	100,577
Less: amortization of intangible assets		710			710			720			2,130			1,950
Noninterest expense excluding amortization of intangible assets	$	30,612		$	29,799		$	29,951		$	90,969		$	98,627

Net interest income	$	47,733		$	47,028		$	48,279		$	141,449		$	143,988
Total noninterest income		8,705			9,610			9,490			23,941			26,841
Operating revenue		56,438			56,638			57,769			165,390			170,829
Tax-equivalent adjustment ⁽¹⁾		552			553			675			1,680			2,092
Operating revenue (tax-equivalent basis) ⁽¹⁾	$	56,990		$	57,191		$	58,444		$	167,070		$	172,921

Efficiency ratio		54.24	%		52.61	%		51.85	%		55.00	%		57.73	%
Efficiency ratio (tax-equivalent basis) ⁽¹⁾		53.71			52.10			51.25			54.45			57.04

(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 – Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share
(dollars in thousands, except per share data)	September 30, 2024			June 30, 2024			September 30, 2023

Tangible Common Equity
Total stockholders' equity	$	537,662		$	509,469		$	456,251
Less: Goodwill		59,820			59,820			59,820
Less: Intangible assets, net		18,552			19,262			21,402
Tangible common equity	$	459,290		$	430,387		$	375,029

Tangible Assets
Total assets	$	4,990,728		$	5,006,199		$	4,991,768
Less: Goodwill		59,820			59,820			59,820
Less: Intangible assets, net		18,552			19,262			21,402
Tangible assets	$	4,912,356		$	4,927,117		$	4,910,546

Total stockholders' equity to total assets		10.77	%		10.18	%		9.14	%
Tangible common equity to tangible assets		9.35			8.74			7.64

Shares of common stock outstanding		31,559,366			31,559,366			31,774,140

Book value per share	$	17.04		$	16.14		$	14.36
Tangible book value per share		14.55			13.64			11.80

Reconciliation of Non-GAAP Financial Measures – Return on Average Tangible Common Equity, Adjusted Return on Average Stockholders' Equity and Adjusted Return on Average Tangible Common Equity

	Three Months Ended									Nine Months Ended September 30,
(dollars in thousands)	September 30, 2024			June 30, 2024			September 30, 2023				2024			2023

Average Tangible Common Equity
Total stockholders' equity	$	523,745		$	501,837		$	459,601		$	506,582		$	445,576
Less: Goodwill		59,820			59,820			59,875			59,820			56,406
Less: Intangible assets, net		18,892			19,605			21,793			19,607			20,005
Average tangible common equity	$	445,033		$	422,412		$	377,933		$	427,155		$	369,165

Net income	$	18,180		$	18,070		$	19,715		$	51,508		$	47,396
Adjusted net income		19,244			18,139			20,279			55,456			58,910

Return on average stockholders' equity *		13.81	%		14.48	%		17.02	%		13.58	%		14.22	%
Return on average tangible common equity *		16.25			17.21			20.70			16.11			17.17

Adjusted return on average stockholders' equity *		14.62	%		14.54	%		17.51	%		14.62	%		17.68	%
Adjusted return on average tangible common equity *		17.20			17.27			21.29			17.34			21.34

* Annualized measure.

HBT Financial, Inc. Announces Third Quarter 2024 Financial Results

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