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HBT Financial, Inc. Announces Third Quarter 2021 Financial Results

Third Quarter Highlights

  • Net income of $13.7 million, or $0.50 per diluted share; return on average assets (ROAA) of 1.37%; return on average stockholders' equity (ROAE) of 14.29%; and return on average tangible common equity (ROATCE)(1) of 15.32%
  • Adjusted net income(1) of $14.5 million; or $0.53 per diluted share; adjusted ROAA(1) of 1.45%; adjusted ROAE(1) of 15.08%; and adjusted ROATCE(1) of 16.18%

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

BLOOMINGTON, Ill., Oct. 25, 2021 (GLOBE NEWSWIRE) -- HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company and NXT Bank, today reported net income of $13.7 million, or $0.50 diluted earnings per share, for the third quarter of 2021. This compares to net income of $13.7 million, or $0.50 diluted earnings per share, for the second quarter of 2021, and net income of $10.6 million, or $0.38 diluted earnings per share, for the third quarter of 2020.

Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “We continued to deliver strong financial results in the third quarter driven by a higher level of revenue, disciplined expense management, and healthy credit metrics. We are beginning to see stronger loan demand in our legacy markets. We also benefited from our acquisition of NXT Bancorporation by buying participations in some of NXT Bank’s third quarter loan production prior to the closing of the acquisition. As a result, our total loan balances increased 3% during the third quarter, excluding PPP loans. With ample liquidity and capital levels, strong asset quality, and a growing low-cost deposit base, we remain well positioned to support our customers and communities as economic conditions and loan demand may continue to strengthen.”

“The completion of our acquisition of NXT Bancorporation on October 1, 2021 is a significant milestone for the Company. In the near-term, we will have more opportunities to bring back loans they have previously participated out to other banks onto our balance sheet and redeploy more of our excess liquidity into higher-yielding earning assets. Over the longer-term, we believe the expansion of our franchise into Iowa and the addition of a talented group of bankers from NXT will positively impact the level of organic growth that we generate. We are also seeing better opportunities to attract high quality commercial lenders that we expect will further strengthen our business development capabilities, improving our ability to capitalize on disruption in the Chicago banking market created by merger activity,” said Mr. Drake.

Adjusted Net Income

In addition to reporting GAAP results, the Company believes adjusted net income and adjusted earnings per share, which adjust for the additional C Corp equivalent tax expense for periods prior to October 11, 2019, acquisition expenses, branch closure expenses, 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 (“MSR”) fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $14.5 million, or $0.53 adjusted diluted earnings per share, for the third quarter of 2021. This compares to adjusted net income of $14.2 million, or $0.52 adjusted diluted earnings per share, for the second quarter of 2021, and adjusted net income of $10.8 million, or $0.39 adjusted diluted earnings per share, for the third quarter of 2020 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2021 was $30.7 million, an increase of 3.4% from $29.7 million for the second quarter of 2021. The increase was primarily attributable to an increase in PPP loan fees recognized as loan interest income which totaled $3.0 million during the third quarter of 2021 and $2.4 million during the second quarter of 2021.

Relative to the third quarter of 2020, net interest income increased $1.8 million, or 6.4%. The increase was primarily attributable to an increase in PPP loan fees recognized as loan interest income which totaled $0.9 million during the third quarter of 2020.

Net interest margin for the third quarter of 2021 was 3.18%, compared to 3.14% for the second quarter of 2021. The increase was primarily attributable to the recognition of PPP loan fees. The contribution of PPP loan fees to net interest margin was 31 basis points during the third quarter of 2021 and 25 basis points during the second quarter of 2021.

Relative to the third quarter of 2020, net interest margin decreased from 3.39%. The decrease was primarily due to a decline in the average yield on earning assets and increased balances being held in cash and lower-yielding securities.

Noninterest Income

Noninterest income for the third quarter of 2021 was $8.4 million, a decrease of 4.4% from $8.8 million for the second quarter of 2021. The decrease was primarily attributable to impairment losses of $0.6 million related to the branches closed during the third quarter of 2021 pursuant to our branch rationalization plan. Additionally, gains on sale of mortgage loans decreased $0.3 million due to a lower level of mortgage refinancing activity. Partially offsetting these declines were a positive $40 thousand mortgage servicing rights (“MSR”) fair value adjustment during the third quarter of 2021, compared to a negative $0.3 million MSR fair value adjustment in the second quarter of 2021, and a $0.3 million increase in service charges on deposit accounts.

Relative to the third quarter of 2020, noninterest income decreased 16.5% from $10.0 million, primarily attributable to a $1.9 million decrease in gains on sale of mortgage loans due to a lower level of mortgage refinancing activity and the $0.6 million of impairment losses related to the branches closed pursuant to our branch rationalization plan. Partially offsetting this decline was an increase in wealth management fees and card income. Wealth management fees increased $0.4 million as a result of higher values of assets under management during the third quarter of 2021 relative to the third quarter of 2020. Card income increased $0.4 million as a result of increased card transaction volume driven by the full reopening of Illinois following COVID-19 prevention measures.

Noninterest Expense

Noninterest expense for the third quarter of 2021 was $22.2 million, nearly unchanged from the second quarter of 2021. A decrease in salaries expense, due to a lower employee count, was mostly offset by increases in occupancy of bank premise and loan collection and servicing expenses.

Relative to the third quarter of 2020, noninterest expense decreased 1.4% from $22.5 million. The decline was primarily attributable to lower salaries and employee benefits expenses, as a result of lower employee count relative to the third quarter of 2020. Partially offsetting these improvements were higher marketing and data processing expenses.

NXT Bancorporation, Inc. Acquisition

On October 1, 2021, HBT completed its previously announced acquisition of NXT Bancorporation, Inc. (NXT), the holding company for NXT Bank. The acquisition expands HBT’s footprint into Iowa. Acquisition-related expenses were $0.4 million during the third quarter of 2021 and $0.2 million during the second quarter of 2021. As of September 30, 2021, NXT had $232 million in total assets, $196 million in total loans, and $181 million in total deposits. NXT’s results are not reflected in HBT’s results for the third quarter of 2021. The merger and system conversion of NXT Bank and Heartland Bank and Trust is currently scheduled for December 3, 2021.

Branch Rationalization Plan

In April 2021, the Company made plans to close or consolidate six branches. One branch was consolidated during the second quarter of 2021, and the remaining five branches were closed during the third quarter of 2021. Branch closure costs were $0.6 million, consisting almost entirely of impairment losses, during the third quarter of 2021, and $0.1 million, primarily salaries expense, during the second quarter of 2021. The Company estimates annual pre-tax cost savings, net of associated revenue impacts, related to the branch rationalization plan to be approximately $1.1 million.

Loan Portfolio

Total loans outstanding, before allowance for loan losses, were $2.15 billion at September 30, 2021, compared with $2.15 billion at June 30, 2021 and $2.28 billion at September 30, 2020. A $65.7 million decrease in PPP loans was mostly offset by increases in commercial real estate – non-owner occupied and construction & land development loans, with $39.0 million of the increase attributed to new loans funded in partnership with NXT Bank ahead of the acquisition.

Deposits

Total deposits were $3.42 billion at September 30, 2021, compared with $3.42 billion at June 30, 2021 and $3.02 billion at September 30, 2020. Total deposits remained almost unchanged from June 30, 2021 to September 30, 2021, following the end of certain federal economic stimulus programs, such as PPP loans and direct payments to individuals, which had driven deposit growth since the first quarter of 2020.

Asset Quality

Nonperforming loans totaled $5.5 million, or 0.26% of total loans, at September 30, 2021, compared with $7.4 million, or 0.34% of total loans, at June 30, 2021, and $15.2 million, or 0.67% of total loans, at September 30, 2020. The $1.9 million decrease in nonperforming loans from June 30, 2021 was primarily attributable to the payoff of one relationship and a pay down on another relationship which together totaled $1.6 million at June 30, 2021. The $9.7 million reduction in nonperforming loans from September 30, 2020 was primarily attributable to the return to accrual status of one agricultural credit and the transfer of one loan to foreclosed assets which together totaled $8.4 million at September 30, 2020.

The Company recorded a negative provision for loan losses of $1.7 million for the third quarter of 2021, compared to a negative provision for loan losses of $2.2 million for the second quarter of 2021. The negative provision was primarily due to a $0.9 million decrease in specific reserves on loans individually evaluated for impairment. Additionally, improvements in qualitative factors resulted in a $0.7 million decrease in required reserve, primarily reflecting the shrinking impact of the COVID-19 pandemic on our borrowers.

Net recoveries for the third quarter of 2021 were $21 thousand, or less than 1 basis point of average loans on an annualized basis, compared to net charge-offs of $90 thousand, or 0.02% of average loans on an annualized basis, for the second quarter of 2021, and net charge-offs of $0.2 million, or 0.04% of average loans on an annualized basis, for the third quarter of 2020.

The Company’s allowance for loan losses was 1.16% of total loans and 449.73% of nonperforming loans at September 30, 2021, compared with 1.23% of total loans and 357.91% of nonperforming loans at June 30, 2021.

Capital

At September 30, 2021, the Company exceeded all regulatory capital requirements under Basel III and was considered to be “well-capitalized,” as summarized in the following table:

     
  Well Capitalized
 September 30,Regulatory
 2021Requirements
Total capital to risk-weighted assets18.15%10.00%
Tier 1 capital to risk-weighted assets15.56%8.00%
Common equity tier 1 capital ratio14.08%6.50%
Tier 1 leverage ratio9.83%5.00%
Total stockholders' equity to total assets9.59%N/A 
Tangible common equity to tangible assets (1)9.00%N/A 


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

Stock Repurchase Program

During the third quarter of 2021, the Company repurchased 20,625 shares of its common stock at a weighted average price of $16.66 under its stock repurchase program. Purchases were conducted in accordance with Rule 10b-18 and in compliance with Regulation M under the Securities Exchange Act of 1934, as amended. The Company’s Board of Directors authorized the repurchase of up to $15 million of its common stock under its stock repurchase program in effect until December 31, 2021. As of September 30, 2021, the Company had $12.7 million remaining under the current stock repurchase authorization.

About HBT Financial, Inc.

HBT Financial, Inc. is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company and NXT Bank. HBT provides a comprehensive suite of business, commercial, wealth management, and retail banking products and services to individuals, businesses and municipal entities throughout Central and Northeastern Illinois and Eastern Iowa through 61 branches. As of September 30, 2021, HBT had total assets of $3.9 billion, total loans of $2.1 billion, and total deposits of $3.4 billion. HBT is a longstanding Central Illinois company, with banking roots that can be traced back to 1920.

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

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release includes "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, including but not limited to statements about the Company’s expected benefits, synergies, results and growth resulting from the acquisition of NXT and NXT Bank, and the Company’s plans, objectives, future performance, goals, future earnings levels and future loan growth, including as a result of expected improvement in economic conditions with respect to COVID-19. These statements are subject to many risks and uncertainties, that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: the timing, outcome and results of integrating the operations of NXT into those of HBT; the possibility that expected benefits, synergies and results from the acquisition are delayed or not achieved; the effects of the merger on HBT’s future financial condition, results of operations, strategy and plans; potential adverse reactions or changes to customer or employee relationships resulting from the completion of the transaction; the diversion of management time on integration-related issues; the severity, magnitude and duration of the COVID-19 pandemic; the direct and indirect impacts of the COVID-19 pandemic and governmental responses to the pandemic on our operations and our customers’ businesses; the continued disruption or worsening of global, national, state and local economies associated with the COVID-19 pandemic, including in connection with inflationary pressures and supply chain constraints, which could affect our capital levels and earnings, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses; our asset quality and any loan charge-offs; changes in interest rates and general economic, business and political conditions in the United States generally or in Illinois and Iowa in particular, including in the financial markets; changes in business plans as circumstances warrant; risks relating to other acquisitions; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. 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. 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" or "continue," 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.

CONTACT:
Matthew Keating
[email protected]
(310) 622-8230


HBT Financial, Inc.
Consolidated Financial Summary
Consolidated Statements of Income
 
  Three Months Ended  Nine Months Ended
  September 30,  June 30,  September 30,  September 30, 
     2021
    2021
    2020
    2021
    2020
INTEREST AND DIVIDEND INCOME (dollars in thousands, except per share data)
Loans, including fees:               
Taxable $25,604  $25,278  $25,118  $76,016  $77,396 
Federally tax exempt  572   540   542   1,722   1,748 
Securities:               
Taxable  4,632   4,058   3,266   12,323   9,772 
Federally tax exempt  1,103   1,144   1,233   3,383   3,488 
Interest-bearing deposits in bank  190   115   65   385   873 
Other interest and dividend income  14   12   14   39   42 
Total interest and dividend income  32,115   31,147   30,238   93,868   93,319 
                
INTEREST EXPENSE               
Deposits  564   613   843   1,821   3,480 
Securities sold under agreements to repurchase  8   8   9   23   40 
Borrowings  1      1   2   2 
Subordinated notes  470   469   147   1,409   147 
Junior subordinated debentures issued to capital trusts  357   357   367   1,069   1,209 
Total interest expense  1,400   1,447   1,367   4,324   4,878 
Net interest income  30,715   29,700   28,871   89,544   88,441 
PROVISION FOR LOAN LOSSES  (1,667)  (2,162)  2,174   (7,234)  10,102 
Net interest income after provision for loan losses  32,382   31,862   26,697   96,778   78,339 
                
NONINTEREST INCOME               
Card income  2,509   2,449   2,146   7,216   5,936 
Service charges on deposit accounts  1,677   1,390   1,493   4,364   4,460 
Wealth management fees  2,036   2,005   1,646   6,013   4,967 
Mortgage servicing  699   711   724   2,095   2,175 
Mortgage servicing rights fair value adjustment  40   (310)  (268)  1,425   (2,947)
Gains on sale of mortgage loans  1,257   1,562   3,184   4,919   5,855 
Gains (losses) on securities  28   6   (2)  74   3 
Gains (losses) on foreclosed assets  (14)  216   27   126   120 
Gains (losses) on other assets  (672)  (48)  1   (719)  (71)
Other noninterest income  832   793   1,101   2,461   2,866 
Total noninterest income  8,392   8,774   10,052   27,974   23,364 
                
NONINTEREST EXPENSE               
Salaries  11,988   12,275   12,595   36,859   38,023 
Employee benefits  1,500   1,455   1,666   4,677   6,555 
Occupancy of bank premises  1,610   1,463   1,609   5,011   5,079 
Furniture and equipment  657   603   679   1,883   1,891 
Data processing  1,767   1,721   1,583   5,176   4,841 
Marketing and customer relations  883   843   690   2,291   2,551 
Amortization of intangible assets  252   258   305   799   927 
FDIC insurance  279   244   222   763   476 
Loan collection and servicing  400   333   450   1,098   1,292 
Foreclosed assets  242   319   226   704   403 
Other noninterest expense  2,589   2,640   2,460   7,604   7,253 
Total noninterest expense  22,167   22,154   22,485   66,865   69,291 
INCOME BEFORE INCOME TAX EXPENSE  18,607   18,482   14,264   57,887   32,412 
INCOME TAX EXPENSE  4,892   4,765   3,701   15,210   8,209 
NET INCOME $13,715  $13,717  $10,563  $42,677  $24,203 
                
EARNINGS PER SHARE - BASIC $0.50  $0.50  $0.38  $1.56  $0.88 
EARNINGS PER SHARE - DILUTED $0.50  $0.50  $0.38  $1.56  $0.88 
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING  27,340,926   27,362,579   27,457,306   27,377,809   27,457,306 



HBT Financial, Inc.
Consolidated Financial Summary
Consolidated Balance Sheets
          
  September 30,  June 30,    September 30, 
  2021    2021    2020
  (dollars in thousands)
ASSETS         
Cash and due from banks $36,508  $47,861  $22,347 
Interest-bearing deposits with banks  435,421   497,742   214,377 
Cash and cash equivalents  471,929   545,603   236,724 
          
Debt securities available-for-sale, at fair value  896,218   836,267   814,798 
Debt securities held-to-maturity  318,730   309,132   74,510 
Equity securities with readily determinable fair value  3,366   3,338   3,262 
Equity securities with no readily determinable fair value  1,867   1,552   1,552 
Restricted stock, at cost  2,739   2,739   2,498 
Loans held for sale  8,582   5,951   23,723 
          
Loans, before allowance for loan losses  2,147,812   2,152,119   2,279,639 
Allowance for loan losses  (24,861)  (26,507)  (31,654)
Loans, net of allowance for loan losses  2,122,951   2,125,612   2,247,985 
          
Bank premises and equipment, net  49,337   51,900   53,271 
Bank premises held for sale  1,462   121   121 
Foreclosed assets  7,315   7,757   3,857 
Goodwill  23,620   23,620   23,620 
Core deposit intangible assets, net  1,999   2,251   3,103 
Mortgage servicing rights, at fair value  7,359   7,319   5,571 
Investments in unconsolidated subsidiaries  1,165   1,165   1,165 
Accrued interest receivable  13,376   12,785   13,820 
Other assets  16,211   16,565   25,643 
Total assets $3,948,226  $3,953,677  $3,535,223 
          
LIABILITIES AND STOCKHOLDERS' EQUITY         
Liabilities         
Deposits:         
Noninterest-bearing $1,003,723  $1,011,481  $850,306 
Interest-bearing  2,415,833   2,413,153   2,166,355 
Total deposits  3,419,556   3,424,634   3,016,661 
          
Securities sold under agreements to repurchase  47,957   46,756   45,438 
Subordinated notes  39,297   39,277   39,218 
Junior subordinated debentures issued to capital trusts  37,698   37,681   37,632 
Other liabilities  24,897   32,135   40,980 
Total liabilities  3,569,405   3,580,483   3,179,929 
          
Stockholders' Equity         
Common stock  275   275   275 
Surplus  191,413   191,185   190,787 
Retained earnings  184,919   175,328   146,101 
Accumulated other comprehensive income  4,537   8,386   18,131 
Treasury stock at cost  (2,323)  (1,980)   
Total stockholders’ equity  378,821   373,194   355,294 
Total liabilities and stockholders’ equity $3,948,226  $3,953,677  $3,535,223 
          
SHARE INFORMATION         
Shares of common stock outstanding  27,334,428   27,355,053   27,457,306 



HBT Financial, Inc.
Consolidated Financial Summary
 
  September 30,  June 30,    September 30, 
  2021    2021    2020
  (dollars in thousands)
LOANS            
Commercial and industrial $261,763  $321,352  $389,231 
Agricultural and farmland  229,718   231,527   235,597 
Commercial real estate - owner occupied  203,096   212,597   225,345 
Commercial real estate - non-owner occupied  579,860   531,803   532,454 
Multi-family  215,245   212,079   199,441 
Construction and land development  232,291   204,619   265,758 
One-to-four family residential  294,612   302,888   308,365 
Municipal, consumer, and other  131,227   135,254   123,448 
Loans, before allowance for loan losses $2,147,812  $2,152,119  $2,279,639 
             
PPP LOANS (included above)            
Commercial and industrial $55,374  $115,538  $168,466 
Agricultural and farmland  3,462   8,711   4,179 
Municipal, consumer, and other  985   1,273   7,095 
Total PPP Loans $59,821  $125,522  $179,740 


             
  September 30,  June 30,    September 30, 
  2021    2021    2020
  (dollars in thousands)
DEPOSITS            
Noninterest-bearing $1,003,723  $1,011,481  $850,306 
Interest-bearing demand  1,013,678   1,023,565   885,719 
Money market  519,343   506,880   475,047 
Savings  611,050   603,849   497,682 
Time  271,762   278,859   307,907 
Total deposits $3,419,556  $3,424,634  $3,016,661 


HBT Financial, Inc.
Consolidated Financial Summary 
 
  Three Months Ended  
  September 30, 2021 June 30, 2021 September 30, 2020 
  Average    
Yield/Cost *
 Average    
Yield/Cost *
 Average    
Yield/Cost *
 
  Balance Interest  Balance Interest  Balance Interest  
  (dollars in thousands) 
ASSETS                         
Loans $2,135,476  $26,176 4.86%$2,234,388  $25,818 4.63%$2,277,826  $25,660 4.48%
Securities  1,180,513   5,735 1.93  1,121,104   5,202 1.86  831,120   4,499 2.15 
Deposits with banks  513,158   190 0.15  438,001   115 0.11  274,022   65 0.09 
Other  2,739   14 2.00  2,726   12 1.83  2,498   14 2.29 
Total interest-earning assets  3,831,886  $32,115 3.33% 3,796,219  $31,147 3.29% 3,385,466  $30,238 3.55%
Allowance for loan losses  (26,470)       (28,939)       (30,221)      
Noninterest-earning assets  159,635        156,559        157,446       
Total assets $3,965,051       $3,923,839       $3,512,691       
                          
LIABILITIES AND STOCKHOLDERS' EQUITY                         
Liabilities                         
Interest-bearing deposits:                         
Interest-bearing demand $1,020,216  $129 0.05%$1,019,488  $127 0.05%$888,941  $123 0.05%
Money market  510,183   96 0.07  502,448   94 0.08  479,314   96 0.08 
Savings  608,436   48 0.03  601,615   46 0.03  493,278   37 0.03 
Time  275,224   291 0.42  290,865   346 0.48  306,154   587 0.76 
Total interest-bearing deposits  2,414,059   564 0.09  2,414,416   613 0.10  2,167,687   843 0.15 
Securities sold under agreements to repurchase  49,923   8 0.06  47,170   8 0.07  51,686   9 0.06 
Borrowings  326   1 0.46  440    0.39  1,196   1 0.47 
Subordinated notes  39,285   470 4.74  39,265   469 4.80  11,976   147 4.87 
Junior subordinated debentures issued to capital trusts  37,688   357 3.76  37,671   357 3.80  37,621   367 3.89 
Total interest-bearing liabilities  2,541,281  $1,400 0.22% 2,538,962  $1,447 0.23% 2,270,166  $1,367 0.24%
Noninterest-bearing deposits  1,016,384        992,699        846,808       
Noninterest-bearing liabilities  26,523        26,988        40,421       
Total liabilities  3,584,188        3,558,649        3,157,395       
Stockholders' Equity  380,863        365,190        355,296       
Total liabilities and stockholders’ equity $3,965,051       $3,923,839       $3,512,691       
                          
Net interest income/Net interest margin (1)    $30,715 3.18%   $29,700 3.14%   $28,871 3.39%
Tax-equivalent adjustment (2)     508 0.05     503 0.05     495 0.06 
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3)    $31,223 3.23%   $30,203 3.19%   $29,366 3.45%
Net interest rate spread (4)       3.11%      3.06%      3.31%
Net interest-earning assets (5) $1,290,605       $1,257,257       $1,115,300       
Ratio of interest-earning assets to interest-bearing liabilities  1.51        1.50        1.49       
Cost of total deposits       0.07%      0.07%      0.11%

* 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.
Consolidated Financial Summary 
                  
  Nine Months Ended  
  September 30, 2021 September 30, 2020 
  Average     Average     
  Balance Interest Yield/Cost * Balance Interest Yield/Cost * 
  (dollars in thousands)
ASSETS                 
Loans $2,217,463  $77,738 4.69%$2,228,145  $79,144 4.74%
Securities  1,102,808   15,706 1.90  740,834   13,260 2.39 
Deposits with banks  432,971   385 0.12  283,730   873 0.41 
Other  2,655   39 1.95  2,473   42 2.29 
Total interest-earning assets  3,755,897  $93,868 3.34% 3,255,182  $93,319 3.83%
Allowance for loan losses  (29,069)       (26,288)      
Noninterest-earning assets  157,287        156,121       
Total assets $3,884,115       $3,385,015       
                  
LIABILITIES AND STOCKHOLDERS' EQUITY                 
Liabilities                 
Interest-bearing deposits:                 
Interest-bearing demand $1,012,557  $373 0.05%$853,775  $536 0.08%
Money market  498,441   279 0.07  473,647   608 0.17 
Savings  584,226   135 0.03  467,482   157 0.04 
Time  286,685   1,034 0.48  321,905   2,179 0.90 
Total interest-bearing deposits  2,381,909   1,821 0.10  2,116,809   3,480 0.22 
Securities sold under agreements to repurchase  47,827   23 0.06  49,183   40 0.11 
Borrowings  421   2 0.43  1,333   2 0.19 
Subordinated notes  39,265   1,409 4.80  4,021   147 4.87 
Junior subordinated debentures issued to capital trusts  37,671   1,069 3.79  37,605   1,209 4.30 
Total interest-bearing liabilities  2,507,093  $4,324 0.23% 2,208,951  $4,878 0.29%
Noninterest-bearing deposits  976,884        780,826       
Noninterest-bearing liabilities  30,205        47,426       
Total liabilities  3,514,182        3,037,203       
Stockholders' Equity  369,933        347,812       
Total liabilities and stockholders’ equity $3,884,115        3,385,015       
                  
Net interest income/Net interest margin (1)    $89,544 3.19%   $88,441 3.63%
Tax-equivalent adjustment (2)     1,514 0.05     1,441 0.06 
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3)    $91,058 3.24%   $89,882 3.69%
Net interest rate spread (4)       3.11%      3.54%
Net interest-earning assets (5) $1,248,804       $1,046,231       
Ratio of interest-earning assets to interest-bearing liabilities  1.50        1.47       
Cost of total deposits       0.07%      0.16%


* 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.
Consolidated Financial Summary
 
  September 30,  June 30,  September 30,  
  2021    2021    2020 
  (dollars in thousands) 
NONPERFORMING ASSETS            
Nonaccrual $5,489  $6,823  $15,191 
Past due 90 days or more, still accruing (1)  39   583   17 
Total nonperforming loans  5,528   7,406   15,208 
Foreclosed assets  7,315   7,757   3,857 
Total nonperforming assets $12,843  $15,163  $19,065 
             
NONPERFORMING ASSETS (Originated) (2)            
Nonaccrual $4,051  $4,319  $10,179 
Past due 90 days or more, still accruing  39   583   17 
Total nonperforming loans (originated)  4,090   4,902   10,196 
Foreclosed assets  511   856   939 
Total nonperforming assets (originated) $4,601  $5,758  $11,135 
             
NONPERFORMING ASSETS (Acquired) (2)            
Nonaccrual $1,438  $2,504  $5,012 
Past due 90 days or more, still accruing (1)         
Total nonperforming loans (acquired)  1,438   2,504   5,012 
Foreclosed assets  6,804   6,901   2,918 
Total nonperforming assets (acquired) $8,242  $9,405  $7,930 
             
Allowance for loan losses $24,861  $26,507  $31,654 
             
Loans, before allowance for loan losses $2,147,812  $2,152,119  $2,279,639 
Loans, before allowance for loan losses (originated) (2)  2,057,276   2,054,291   2,148,074 
Loans, before allowance for loan losses (acquired) (2)  90,536   97,828   131,565 
             
CREDIT QUALITY RATIOS            
Allowance for loan losses to loans, before allowance for loan losses  1.16%  1.23%  1.39%
Allowance for loan losses to nonperforming loans  449.73   357.91   208.14 
Nonperforming loans to loans, before allowance for loan losses  0.26   0.34   0.67 
Nonperforming assets to total assets  0.33   0.38   0.54 
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets  0.60   0.70   0.83 
             
CREDIT QUALITY RATIOS (Originated) (2)            
Nonperforming loans to loans, before allowance for loan losses  0.20%  0.24%  0.47%
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets  0.22   0.28   0.52 
             
CREDIT QUALITY RATIOS (Acquired) (2)            
Nonperforming loans to loans, before allowance for loan losses  1.59%  2.56%  3.81%
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets  8.47   8.98   5.90 


(1) Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $27 thousand, 
  $27 thousand, and $30 thousand as of September 30, 2021, June 30, 2021, and September 30, 2020, respectively.
(2) Originated loans and acquired loans along with the related credit quality ratios such as nonperforming loans to loans, before       
  allowance for loan losses (originated and acquired) and nonperforming assets to loans, before allowance for loan losses and
  foreclosed assets (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially
  originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans
  represent loans originated under the underwriting criteria used by a bank that was acquired by the Company. We believe these
  non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the
  Company’s policies and procedures.

     


HBT Financial, Inc.
Consolidated Financial Summary
 
  Three Months Ended  Nine Months Ended  
  September 30,  June 30,  September 30,  September 30,  
     2021    2021    2020    2021    2020 
ALLOWANCE FOR LOAN LOSSES (dollars in thousands) 
Beginning balance $26,507  $28,759  $29,723  $31,838  $22,299  
Provision  (1,667)  (2,162)  2,174   (7,234)  10,102  
Charge-offs  (278)  (402)  (1,078)  (875)  (2,459) 
Recoveries  299   312   835   1,132   1,712  
Ending balance $24,861  $26,507  $31,654  $24,861  $31,654  
                 
Net charge-offs (recoveries) $(21) $90  $243  $(257) $747  
Net charge-offs (recoveries) - (originated) (1)  (116)  (214)  (20)  (650)  155  
Net charge-offs (recoveries) - (acquired) (1)  95   304   263   393   592  
                 
Average loans, before allowance for loan losses $2,135,476  $2,234,388  $2,277,826  $2,217,463  $2,228,145  
Average loans, before allowance for loan losses (originated) (1)  2,041,049   2,127,221   2,140,376   2,110,837   2,080,668  
Average loans, before allowance for loan losses (acquired) (1)  94,427   107,167   137,450   106,626   147,477  
                 
Net charge-offs (recoveries) to average loans, before allowance for loan losses *   % 0.02 % 0.04 % (0.02)% 0.04 %
Net charge-offs (recoveries) to average loans, before allowance for loan losses (originated) * (1)  (0.02)  (0.04)     (0.04)  0.01  
Net charge-offs (recoveries) to average loans, before allowance for loan losses (acquired) * (1)  0.40   1.14   0.76   0.49   0.54  

* Annualized measure.
(1) Originated loans and acquired loans along with the related credit quality ratios such as net charge-offs (originated and
  acquired), average loans, before allowance for loan losses (originated and acquired), and net charge-offs to average loans,
  before allowance for loan losses (originated and acquired) are non-GAAP financial measures. Originated loans represent loans
  initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria.
  Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by the Company.
  We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans
  underwritten using the Company’s policies and procedures.



HBT Financial, Inc.
Consolidated Financial Summary
 
  As of or for the Three Months Ended  Nine Months Ended  
  September 30,  June 30,  September 30,  September 30,  
     2021    2021    2020    2021    2020 
  (dollars in thousands, except per share data) 
EARNINGS AND PER SHARE INFORMATION                
Net income $13,715 $13,717 $10,563 $42,677 $24,203 
Earnings per share - Basic  0.50  0.50  0.38  1.56  0.88 
Earnings per share - Diluted  0.50  0.50  0.38  1.56  0.88 
                 
Book value per share $13.86 $13.64 $12.94       
                 
Shares of common stock outstanding  27,334,428  27,355,053  27,457,306       
Weighted average shares of common stock outstanding  27,340,926  27,362,579  27,457,306  27,377,809  27,457,306 
                 
SUMMARY RATIOS                
Net interest margin *  3.18% 3.14% 3.39% 3.19% 3.63%
Efficiency ratio  56.04  56.91  56.98  56.22  61.15 
Loan to deposit ratio  62.81  62.84  75.57       
                 
Return on average assets *  1.37% 1.40% 1.20% 1.47% 0.96%
Return on average stockholders' equity *  14.29  15.07  11.83  15.42  9.30 
                 
NON-GAAP FINANCIAL MEASURES (1)                
Adjusted net income $14,479 $14,168 $10,755 $42,680 $27,352 
Adjusted earnings per share - Basic  0.53  0.52  0.39  1.56  0.99 
Adjusted earnings per share - Diluted  0.53  0.52  0.39  1.56  0.99 
                 
Tangible book value per share $12.92 $12.70 $11.97       
                 
Net interest margin (tax equivalent basis) * (2)  3.23% 3.19% 3.45% 3.24% 3.69%
Efficiency ratio (tax equivalent basis) (2)  55.32  56.18  56.27  55.50  60.37 
                 
Return on average tangible common equity *  15.32% 16.22% 12.80% 16.59% 10.08%
                 
Adjusted return on average assets *  1.45% 1.45% 1.22% 1.47% 1.08%
Adjusted return on average stockholders' equity *  15.08  15.56  12.04  15.43  10.50 
Adjusted return on average tangible common equity *  16.18  16.76  13.03  16.59  11.40 


* 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%.

      

Reconciliation of Non-GAAP Financial Measures –
Adjusted Net Income and Adjusted Return on Average Assets
 
  Three Months Ended  Nine Months Ended  
  September 30,  June 30,  September 30,  September 30,  
     2021
    2021
    2020    2021
    2020 
  (dollars in thousands) 
Net income $13,715  $13,717  $10,563  $42,677  $24,203  
Adjustments:                
Acquisition expenses  (380)  (157)     (537)    
Branch closure expenses  (644)  (104)     (748)    
Charges related to termination of certain employee benefit plans              (1,457) 
Mortgage servicing rights fair value adjustment  40   (310)  (268)  1,425   (2,947) 
Total adjustments  (984)  (571)  (268)  140   (4,404) 
Tax effect of adjustments  220   120   76   (143)  1,255  
Less adjustments, after tax effect  (764)  (451)  (192)  (3)  (3,149) 
Adjusted net income $14,479  $14,168  $10,755  $42,680  $27,352  
                 
Average assets $3,965,051  $3,923,839  $3,512,691  $3,884,115  $3,385,015  
                 
Return on average assets *  1.37 % 1.40 % 1.20 % 1.47 % 0.96 %
Adjusted return on average assets *  1.45   1.45   1.22   1.47   1.08  

* Annualized measure.


Reconciliation of Non-GAAP Financial Measures –
Adjusted Earnings Per Share 
 
  Three Months Ended  Nine Months Ended
  September 30,  June 30,  September 30,  September 30, 
     2021    2021    2020    2021    2020
  (dollars in thousands, except per share data)
Numerator:               
Net income $13,715  $13,717  $10,563  $42,677  $24,203 
Earnings allocated to participating securities (1)  (25)  (25)  (28)  (81)  (62)
Numerator for earnings per share - basic and diluted $13,690  $13,692  $10,535  $42,596  $24,141 
                
Adjusted net income $14,479  $14,168  $10,755  $42,680  $27,352 
Earnings allocated to participating securities (1)  (27)  (26)  (28)  (81)  (69)
Numerator for adjusted earnings per share - basic and diluted $14,452  $14,142  $10,727  $42,599  $27,283 
                
Denominator:               
Weighted average common shares outstanding  27,340,926   27,362,579   27,457,306   27,377,809   27,457,306 
Dilutive effect of outstanding restricted stock units  13,921   17,701      11,412    
Weighted average common shares outstanding, including all dilutive potential shares  27,354,847   27,380,280   27,457,306   27,389,221   27,457,306 
                
Earnings per share - Basic $0.50  $0.50  $0.38  $1.56  $0.88 
Earnings per share - Diluted $0.50  $0.50  $0.38  $1.56  $0.88 
                
Adjusted earnings per share - Basic $0.53  $0.52  $0.39  $1.56  $0.99 
Adjusted earnings per share - Diluted $0.53  $0.52  $0.39  $1.56  $0.99 


(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.

 


Reconciliation of Non-GAAP Financial Measures –
Net Interest Margin (Tax Equivalent Basis)
 
  Three Months Ended  Nine Months Ended  
  September 30,  June 30,  September 30,  September 30,  
     2021    2021    2020    2021    2020 
  (dollars in thousands) 
Net interest income (tax equivalent basis)                
Net interest income $30,715 $29,700 $28,871 $89,544 $88,441 
Tax-equivalent adjustment (1)  508  503  495  1,514  1,441 
Net interest income (tax equivalent basis) (1) $31,223 $30,203 $29,366 $91,058 $89,882 
                 
Net interest margin (tax equivalent basis)                
Net interest margin *  3.18% 3.14% 3.39% 3.19% 3.63%
Tax-equivalent adjustment * (1)  0.05  0.05  0.06  0.05  0.06 
Net interest margin (tax equivalent basis) * (1)  3.23% 3.19% 3.45% 3.24% 3.69%
                 
Average interest-earning assets $3,831,886 $3,796,219 $3,385,466 $3,755,897 $3,255,182 

 * 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,  June 30,  September 30,  September 30,  
     2021    2021    2020    2021    2020 
  (dollars in thousands) 
Efficiency ratio (tax equivalent basis)                
Total noninterest expense $22,167 $22,154 $22,485 $66,865 $69,291 
Less: amortization of intangible assets  252  258  305  799  927 
Adjusted noninterest expense $21,915 $21,896 $22,180 $66,066 $68,364 
                 
Net interest income $30,715 $29,700 $28,871 $89,544 $88,441 
Total noninterest income  8,392  8,774  10,052  27,974  23,364 
Operating revenue  39,107  38,474  38,923  117,518  111,805 
Tax-equivalent adjustment (1)  508  503  495  1,514  1,441 
Operating revenue (tax equivalent basis) (1) $39,615 $38,977 $39,418 $119,032 $113,246 
                 
Efficiency ratio  56.04% 56.91% 56.98% 56.22% 61.15%
Efficiency ratio (tax equivalent basis) (1)  55.32  56.18  56.27  55.50  60.37 

(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 –
 Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share
           
     September 30,  June 30,    September 30,  
     2021    2021    2020 
  (dollars in thousands, except per share data) 
Tangible common equity          
Total stockholders' equity $378,821 $373,194 $355,294 
Less: Goodwill  23,620  23,620  23,620 
Less: Core deposit intangible assets, net  1,999  2,251  3,103 
Tangible common equity $353,202 $347,323 $328,571 
           
Tangible assets          
Total assets $3,948,226 $3,953,677 $3,535,223 
Less: Goodwill  23,620  23,620  23,620 
Less: Core deposit intangible assets, net  1,999  2,251  3,103 
Tangible assets $3,922,607 $3,927,806 $3,508,500 
           
Total stockholders' equity to total assets  9.59% 9.44% 10.05%
Tangible common equity to tangible assets  9.00  8.84  9.36 
           
Shares of common stock outstanding  27,334,428  27,355,053  27,457,306 
           
Book value per share $13.86 $13.64 $12.94 
Tangible book value per share  12.92  12.70  11.97 



Reconciliation of Non-GAAP Financial Measures –
Adjusted Return on Average Stockholders' Equity and Adjusted Return on Tangible Common Equity
 
  Three Months Ended  Nine Months Ended  
  September 30,  June 30,  September 30,  September 30,  
     2021    2021    2020    2021    2020 
  (dollars in thousands) 
Average tangible common equity                
Total stockholders' equity $380,863 $365,190 $355,296 $369,933 $347,812 
Less: Goodwill  23,620  23,620  23,620  23,620  23,620 
Less: Core deposit intangible assets, net  2,152  2,410  3,284  2,414  3,589 
Average tangible common equity $355,091 $339,160 $328,392 $343,899 $320,603 
                 
Net income $13,715 $13,717 $10,563 $42,677 $24,203 
Adjusted net income  14,479  14,168  10,755  42,680  27,352 
                 
Return on average stockholders' equity *  14.29% 15.07% 11.83% 15.42% 9.30%
Return on average tangible common equity *  15.32  16.22  12.80  16.59  10.08 
                 
Adjusted return on average stockholders' equity *  15.08% 15.56% 12.04% 15.43% 10.50%
Adjusted return on average tangible common equity *  16.18  16.76  13.03  16.59  11.40 

* Annualized measure.


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