• HBT Financial, Inc. Announces First Quarter 2022 Financial Results

    ソース: Nasdaq GlobeNewswire / 25 4 2022 07:05:01   America/New_York

    First Quarter Highlights

    • Net income of $13.6 million, or $0.47 per diluted share; return on average assets (ROAA) of 1.27%; return on average stockholders' equity (ROAE) of 13.58%; and return on average tangible common equity (ROATCE)(1) of 14.71%
    • Adjusted net income(1) of $12.2 million; or $0.42 per diluted share; adjusted ROAA(1) of 1.14%; adjusted ROAE(1) of 12.20%; and adjusted ROATCE(1) of 13.22%

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

    BLOOMINGTON, Ill., April 25, 2022 (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 $13.6 million, or $0.47 diluted earnings per share, for the first quarter of 2022. This compares to net income of $13.6 million, or $0.47 diluted earnings per share, for the fourth quarter of 2021, and net income of $15.2 million, or $0.55 diluted earnings per share, for the first quarter of 2021.

    Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “We saw positive trends in a number of areas during the first quarter, including solid inflows of low-cost deposits and improved asset quality, which contributed to our strong financial performance despite a more challenging environment for generating loan growth. We are seeing increased competition in loan pricing in our markets, particularly in commercial real estate lending, which has started to impact new loan production, which remained relatively flat in the first quarter. Although this competitive environment and the developing macroeconomic trends, including higher input costs and interest rates, may make it more challenging to replicate the strong loan growth we experienced at the end of 2021, we believe the strength of our deposit base and asset quality, as well as our diversified business mix will enable us to continue to generate solid financial performance for our shareholders.”

    Adjusted Net Income

    In addition to reporting GAAP results, the Company believes adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on sale of closed branch premises, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $12.2 million, or $0.42 adjusted diluted earnings per share, for the first quarter of 2022. This compares to adjusted net income of $14.2 million, or $0.49 adjusted diluted earnings per share, for the fourth quarter of 2021, and adjusted net income of $14.0 million, or $0.51 adjusted diluted earnings per share, for the first quarter of 2021 (see "Reconciliation of Non-GAAP Financial Measures" tables).

    Net Interest Income and Net Interest Margin

    Net interest income for the first quarter of 2022 was $31.9 million, a decrease of 2.8% from $32.9 million for the fourth quarter of 2021. The decrease was primarily attributable to lower Paycheck Protection Program (“PPP”) loan fees recognized as loan interest income which totaled $0.7 million during the first quarter of 2022 and $1.6 million during the fourth quarter of 2021. As of March 31, 2022, the remaining deferred PPP loan fees to be recognized as income totaled $0.8 million.

    Relative to the first quarter of 2021, net interest income increased $2.8 million, or 9.6%. The increase was primarily attributable to higher average loan and securities balances. These higher average balances more than offset a decrease in PPP loan fees recognized as loan interest income, which were $2.2 million during the first quarter of 2021.

    Net interest margin for the first quarter of 2022 was 3.08%, compared to 3.17% for the fourth quarter of 2021. The decrease was primarily attributable to lower PPP loan fees recognized as loan interest income. The contribution of PPP loan fees to net interest margin was 7 basis points during the first quarter of 2022 and 15 basis points during the fourth quarter of 2021. Additionally, the contribution of acquired loan discount accretion to net interest margin decreased to 1 basis point during the first quarter of 2022 from 6 basis points during the fourth quarter of 2021.

    Relative to the first quarter of 2021, net interest margin decreased from 3.25%. This decrease was also primarily attributable to lower PPP loan fees recognized as loan interest income which contributed 25 basis points to net interest margin during the first quarter 2021. The contribution of acquired loan discount accretion to net interest margin was 1 basis point during the first quarter of 2021.

    Noninterest Income

    Noninterest income for the first quarter of 2022 was $10.0 million, an increase of 7.4% from $9.4 million for the fourth quarter of 2021. The increase was primarily attributable to a positive $1.7 million mortgage servicing rights (“MSR”) fair value adjustment included in the first quarter of 2022 results, compared to a positive $0.3 million MSR fair value adjustment included in the fourth quarter of 2021 results. Additionally, the first quarter of 2022 results included $0.2 million of gains on sale of closed branch premises, with no similar gains recognized in the fourth quarter of 2021. Partially offsetting these improvements was a $0.3 million decrease in gains on sale of mortgage loans as a result of a lower level of mortgage refinancing activity and normal seasonality.

    Relative to the first quarter of 2021, noninterest income decreased 7.1% from $10.8 million, primarily attributable to a $1.5 million decrease in gains on sale of mortgage loans due to a lower level of mortgage refinancing activity. Partially offsetting this decrease were a $0.4 million increase in service charges on deposit accounts and a $0.3 million increase in wealth management fees, driven by higher values of managed assets during first quarter of 2022 compared to the first quarter of 2021.

    Noninterest Expense

    Noninterest expense for the first quarter of 2022 was $24.2 million, a decrease of 0.9% from $24.4 million for the fourth quarter of 2021. The decrease was primarily attributable to $0.9 million of non-recurring NXT Bancorporation, Inc. (NXT) acquisition-related expenses included in the fourth quarter of 2021 results. Partially offsetting this decrease was an increase in employee benefits expense, primarily due to accelerated recognition of $0.6 million of stock compensation expense during the first quarter of 2022 as a result of a modification to all existing restricted stock unit (“RSU”) and performance restricted stock unit (“PRSU”) agreements to address treatment upon retirement. Total compensation costs related to the modified agreements remains the same.

    Relative to the first quarter of 2021, noninterest expense increased 7.2% from $22.5 million. The increase was also primarily attributable to the modification of the RSU and PRSU agreements previously discussed and a higher base level of noninterest expense following the NXT acquisition, primarily related to personnel costs and branch operation expenses.

    Loan Portfolio

    Total loans outstanding, before allowance for loan losses, were $2.49 billion at March 31, 2022, compared with $2.50 billion at December 31, 2021 and $2.27 billion at March 31, 2021. The decrease in total loans from the end of the prior quarter was primarily attributable to the ongoing forgiveness of PPP loans.

    Deposits

    Total deposits were $3.82 billion at March 31, 2022, compared with $3.74 billion at December 31, 2021 and $3.36 billion at March 31, 2021. The $77.9 million increase from the end of the prior quarter was primarily attributable to increased balances held in interest-bearing demand and savings accounts, partially offset by run-off of higher cost time deposit accounts.

    Asset Quality

    Nonperforming loans totaled $2.5 million, or 0.10% of total loans, at March 31, 2022, compared with $2.8 million, or 0.11% of total loans, at December 31, 2021, and $9.1 million, or 0.40% of total loans, at March 31, 2021.

    The Company recorded a negative provision for loan losses of $0.6 million for the first quarter of 2022, compared to a negative provision for loan losses of $0.8 million for the fourth quarter of 2021. The negative provision was primarily due to net recoveries of $1.2 million and improvements in qualitative factors which resulted in a $1.1 million decrease in required reserves, primarily reflecting improved economic conditions. Partially offsetting these improvements was a $1.7 million increase in specific reserves on loans individually evaluated for impairment.

    Net recoveries for the first quarter of 2022 were $1.2 million, or (0.19)% of average loans on an annualized basis, compared to net charge-offs of $82 thousand, or 0.01% of average loans on an annualized basis, for the fourth quarter of 2021, and net recoveries of $0.3 million, or (0.06)% of average loans on an annualized basis, for the first quarter of 2021.

    The Company’s allowance for loan losses was 0.99% of total loans and 992.63% of nonperforming loans at March 31, 2022, compared with 0.96% of total loans and 861.32% of nonperforming loans at December 31, 2021.

    Capital

    At March 31, 2022, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:

      Well Capitalized
      Regulatory
     March 31, 2022Requirements
    Total capital to risk-weighted assets16.86%10.00%
    Tier 1 capital to risk-weighted assets14.66%8.00%
    Common equity tier 1 capital ratio13.40%6.50%
    Tier 1 leverage ratio9.83%5.00%
    Total stockholders' equity to total assets8.81%N/A 
    Tangible common equity to tangible assets (1)8.16%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 first quarter of 2022, the Company repurchased 50,062 shares of its common stock at a weighted average price of $18.84 under its stock repurchase program. The Company’s Board of Directors authorized the repurchase of up to $15 million of its common stock under its stock repurchase program in effect until January 1, 2023. As of March 31, 2022, the Company had $14.1 million remaining under the current stock repurchase authorization.

    About HBT Financial, Inc.

    HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. HBT provides a comprehensive suite of business, commercial, wealth management, and retail banking products and services to individuals, businesses and municipal entities throughout Central and Northeastern Illinois and Eastern Iowa through 61 branches. As of March 31, 2022, HBT had total assets of $4.3 billion, total loans of $2.5 billion, and total deposits of $3.8 billion.

    Non-GAAP Financial Measures

    Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), tangible common equity to tangible assets, tangible book value per share, 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 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" 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.

    Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics (including the COVID-19 pandemic in the United States), acts of war or other threats thereof, or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB or the PCAOB; (iv) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of LIBOR phase-out); (vi) increased competition in the financial services sector and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; and (xiii) the ability of the Company to manage the risks associated with the foregoing. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

    CONTACT:
    Tony Rossi
    HBTIR@hbtbank.com
    (310) 622-8221


    HBT Financial, Inc.
    Consolidated Financial Summary
    Consolidated Statements of Income

      Three Months Ended
      March 31,  December 31,  March 31, 
      2022 2021 2021
    INTEREST AND DIVIDEND INCOME (dollars in thousands, except per share data)
    Loans, including fees:         
    Taxable $26,806  $27,884  $25,134 
    Federally tax exempt  662   662   610 
    Securities:         
    Taxable  4,649   4,625   3,633 
    Federally tax exempt  1,040   1,017   1,136 
    Interest-bearing deposits in bank  159   142   80 
    Other interest and dividend income  19   25   13 
    Total interest and dividend income  33,335   34,355   30,606 
              
    INTEREST EXPENSE         
    Deposits  569   651   644 
    Securities sold under agreements to repurchase  9   11   7 
    Borrowings  1   7   1 
    Subordinated notes  470   470   470 
    Junior subordinated debentures issued to capital trusts  358   357   355 
    Total interest expense  1,407   1,496   1,477 
    Net interest income  31,928   32,859   29,129 
    PROVISION FOR LOAN LOSSES  (584)  (843)  (3,405)
    Net interest income after provision for loan losses  32,512   33,702   32,534 
              
    NONINTEREST INCOME         
    Card income  2,404   2,518   2,258 
    Wealth management fees  2,289   2,371   1,972 
    Service charges on deposit accounts  1,652   1,716   1,297 
    Mortgage servicing  658   730   685 
    Mortgage servicing rights fair value adjustment  1,729   265   1,695 
    Gains on sale of mortgage loans  587   927   2,100 
    Gains (losses) on securities  (187)  33   40 
    Gains (losses) on foreclosed assets  40   184   (76)
    Gains (losses) on other assets  193   (4)  1 
    Income on bank owned life insurance  40   41   — 
    Other noninterest income  638   573   836 
    Total noninterest income  10,043   9,354   10,808 
              
    NONINTEREST EXPENSE         
    Salaries  12,992   12,578   12,596 
    Employee benefits  2,499   2,017   1,722 
    Occupancy of bank premises  2,060   1,777   1,938 
    Furniture and equipment  552   793   623 
    Data processing  1,653   2,153   1,688 
    Marketing and customer relations  851   1,085   565 
    Amortization of intangible assets  245   255   289 
    FDIC insurance  288   280   240 
    Loan collection and servicing  157   219   365 
    Foreclosed assets  132   204   143 
    Other noninterest expense  2,728   3,020   2,375 
    Total noninterest expense  24,157   24,381   22,544 
    INCOME BEFORE INCOME TAX EXPENSE  18,398   18,675   20,798 
    INCOME TAX EXPENSE  4,794   5,081   5,553 
    NET INCOME $13,604  $13,594  $15,245 
              
    EARNINGS PER SHARE - BASIC $0.47  $0.47  $0.55 
    EARNINGS PER SHARE - DILUTED $0.47  $0.47  $0.55 
    WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING  28,986,593   29,036,164   27,430,912 
                 


    HBT Financial, Inc.
    Consolidated Financial Summary
    Consolidated Balance Sheets

      March 31,  December 31,  March 31, 
      2022  2021 2021
      (dollars in thousands)
    ASSETS         
    Cash and due from banks $30,761  $23,387  $22,976 
    Interest-bearing deposits with banks  328,218   385,881   406,760 
    Cash and cash equivalents  358,979   409,268   429,736 
              
    Interest-bearing time deposits with banks  487   490   — 
    Debt securities available-for-sale, at fair value  933,922   942,168   856,835 
    Debt securities held-to-maturity  438,054   336,185   192,994 
    Equity securities with readily determinable fair value  3,256   3,443   3,332 
    Equity securities with no readily determinable fair value  1,927   1,927   1,552 
    Restricted stock, at cost  2,739   2,739   2,498 
    Loans held for sale  1,777   4,942   12,882 
              
    Loans, before allowance for loan losses  2,487,785   2,499,689   2,270,705 
    Allowance for loan losses  (24,508)  (23,936)  (28,759)
    Loans, net of allowance for loan losses  2,463,277   2,475,753   2,241,946 
              
    Bank owned life insurance  7,433   7,393   — 
    Bank premises and equipment, net  52,005   52,483   52,548 
    Bank premises held for sale  1,081   1,452   121 
    Foreclosed assets  3,043   3,278   4,748 
    Goodwill  29,322   29,322   23,620 
    Core deposit intangible assets, net  1,698   1,943   2,509 
    Mortgage servicing rights, at fair value  9,723   7,994   7,629 
    Investments in unconsolidated subsidiaries  1,165   1,165   1,165 
    Accrued interest receivable  13,527   14,901   12,718 
    Other assets  25,550   17,408   18,781 
    Total assets $4,348,965  $4,314,254  $3,865,614 
              
    LIABILITIES AND STOCKHOLDERS' EQUITY         
    Liabilities         
    Deposits:         
    Noninterest-bearing $1,069,231  $1,087,659  $968,991 
    Interest-bearing  2,746,838   2,650,526   2,386,975 
    Total deposits  3,816,069   3,738,185   3,355,966 
              
    Securities sold under agreements to repurchase  50,834   61,256   41,976 
    Subordinated notes  39,336   39,316   39,257 
    Junior subordinated debentures issued to capital trusts  37,731   37,714   37,665 
    Other liabilities  21,840   25,902   33,344 
    Total liabilities  3,965,810   3,902,373   3,508,208 
              
    Stockholders' Equity         
    Common stock  293   293   275 
    Surplus  221,735   220,891   191,004 
    Retained earnings  203,076   194,132   165,735 
    Accumulated other comprehensive income (loss)  (36,100)  1,471   1,906 
    Treasury stock at cost  (5,849)  (4,906)  (1,514)
    Total stockholders’ equity  383,155   411,881   357,406 
    Total liabilities and stockholders’ equity $4,348,965  $4,314,254  $3,865,614 
              
    SHARE INFORMATION         
    Shares of common stock outstanding  28,967,943   28,986,061   27,382,069 
                 


    HBT Financial, Inc.
    Consolidated Financial Summary

      March 31,  December 31,  March 31, 
      2022 2021 2021
     (dollars in thousands)
    LOANS            
    Commercial and industrial $291,909  $286,946  $412,812 
    Agricultural and farmland  232,528   247,796   228,032 
    Commercial real estate - owner occupied  237,000   234,544   224,599 
    Commercial real estate - non-owner occupied  687,617   684,023   516,963 
    Multi-family  243,447   263,911   236,381 
    Construction and land development  320,030   298,048   215,375 
    One-to-four family residential  327,791   327,837   300,768 
    Municipal, consumer, and other  147,463   156,584   135,775 
    Loans, before allowance for loan losses $2,487,785  $2,499,689  $2,270,705 
                 
    PPP LOANS (included above)            
    Commercial and industrial $16,184  $28,404  $175,389 
    Agricultural and farmland  392   913   8,921 
    Municipal, consumer, and other  —   171   6,249 
    Total PPP Loans $16,576  $29,488  $190,559 


      March 31,  December 31,  March 31, 
      2022 2021 2021
     (dollars in thousands)
    DEPOSITS            
    Noninterest-bearing $1,069,231  $1,087,659  $968,991 
    Interest-bearing demand  1,167,058   1,105,949   1,008,954 
    Money market  597,464   583,198   499,088 
    Savings  687,147   633,171   593,472 
    Time  295,169   328,208   285,461 
    Total deposits $3,816,069  $3,738,185  $3,355,966 
                 


    HBT Financial, Inc.
    Consolidated Financial Summary

      Three Months Ended  
      March 31, 2022 December 31, 2021 March 31, 2021 
      Average
    Balance    		 Interest Yield/Cost* Average
    Balance    		 Interest Yield/Cost* Average
    Balance    		 Interest Yield/Cost* 
      (dollars in thousands) 
    ASSETS                         
    Loans $2,507,006  $27,468 4.44%$2,432,025  $28,546 4.66%$2,284,159  $25,744 4.57%
    Securities  1,321,918   5,689 1.75  1,285,672   5,642 1.74  1,004,877   4,769 1.92 
    Deposits with banks  370,130   159 0.17  392,729   142 0.14  345,915   80 0.09 
    Other  2,739   19 2.80  4,821   25 2.10  2,498   13 2.04 
    Total interest-earning assets  4,201,793  $33,335 3.22% 4,115,247  $34,355 3.31% 3,637,449  $30,606 3.41%
    Allowance for loan losses  (24,099)       (24,826)       (31,856)      
    Noninterest-earning assets  165,752        176,242        155,622       
    Total assets $4,343,446       $4,266,663       $3,761,215       
                              
    LIABILITIES AND STOCKHOLDERS'
    EQUITY    		                         
    Liabilities                         
    Interest-bearing deposits:                         
    Interest-bearing demand $1,143,829  $142 0.05%$1,061,481  $145 0.05%$997,720  $117 0.05%
    Money market  598,271   121 0.08  589,396   158 0.11  482,385   89 0.07 
    Savings  649,563   50 0.03  630,489   53 0.03  541,896   41 0.03 
    Time  310,675   256 0.33  322,800   295 0.36  294,172   397 0.55 
    Total interest-bearing deposits  2,702,338   569 0.09  2,604,166   651 0.10  2,316,173   644 0.11 
    Securities sold under agreements to
    repurchase    		  53,054   9 0.07  56,861   11 0.08  46,348   7 0.06 
    Borrowings  500   1 0.71  5,309   7 0.57  500   1 0.44 
    Subordinated notes  39,325   470 4.84  39,305   470 4.74  39,245   470 4.85 
    Junior subordinated debentures issued to
    capital trusts    		  37,721   358 3.85  37,704   357 3.76  37,655   355 3.83 
    Total interest-bearing liabilities  2,832,938  $1,407 0.20% 2,743,345  $1,496 0.22% 2,439,921  $1,477 0.25%
    Noninterest-bearing deposits  1,077,917        1,087,468        920,514       
    Noninterest-bearing liabilities  26,302        25,660        37,223       
    Total liabilities  3,937,157        3,856,473        3,397,658       
    Stockholders' Equity  406,289        410,190        363,557       
    Total liabilities and stockholders’
    equity    		 $4,343,446       $4,266,663       $3,761,215       
                              
    Net interest income/Net interest margin (1)    $31,928 3.08%   $32,859 3.17%   $29,129 3.25%
    Tax-equivalent adjustment (2)     529 0.05     514 0.05     503 0.05 
    Net interest income (tax-equivalent basis)/
    Net interest margin (tax-equivalent basis) (2) (3)    		    $32,457 3.13%   $33,373 3.22%   $29,632 3.30%
    Net interest rate spread (4)       3.02%      3.09%      3.16%
    Net interest-earning assets (5) $1,368,855       $1,371,902       $1,197,528       
    Ratio of interest-earning assets to interest-
    bearing liabilities    		  1.48        1.50        1.49       
    Cost of total deposits       0.06%      0.07%      0.08%

    ________________________
    *      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

               
      March 31,  December 31,  March 31,  
      2022 2021 2021 
      (dollars in thousands) 
    NONPERFORMING ASSETS          
    Nonaccrual $2,461 $2,763 $9,106 
    Past due 90 days or more, still accruing (1)  8  16  10 
    Total nonperforming loans  2,469  2,779  9,116 
    Foreclosed assets  3,043  3,278  4,748 
    Total nonperforming assets $5,512 $6,057 $13,864 
               
    Allowance for loan losses $24,508 $23,936 $28,759 
    Loans, before allowance for loan losses  2,487,785  2,499,689  2,270,705 
               
    CREDIT QUALITY RATIOS          
    Allowance for loan losses to loans, before allowance for loan losses  0.99% 0.96% 1.27%
    Allowance for loan losses to nonaccrual loans  995.86  866.30  315.82 
    Allowance for loan losses to nonperforming loans  992.63  861.32  315.48 
    Nonaccrual loans to loans, before allowance for loan losses  0.10  0.11  0.40 
    Nonperforming loans to loans, before allowance for loan losses  0.10  0.11  0.40 
    Nonperforming assets to total assets  0.13  0.14  0.36 
    Nonperforming assets to loans, before allowance for loan losses and foreclosed
    assets    		  0.22  0.24  0.61 

    ________________________
    (1)   Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $25 thousand, $32 thousand, and $29 thousand as of March 31, 2022, December 31, 2021, and March 31, 2021, respectively.


      Three Months Ended  
      March 31,  December 31,  March 31,  
      2022 2021 2021 
    ALLOWANCE FOR LOAN LOSSES (dollars in thousands) 
    Beginning balance $23,936  $24,861  $31,838  
    Provision  (584)  (843)  (3,405) 
    Charge-offs  (134)  (539)  (195) 
    Recoveries  1,290   457   521  
    Ending balance $24,508  $23,936  $28,759  
               
    Net charge-offs (recoveries) $(1,156) $82  $(326) 
    Average loans, before allowance for loan losses  2,507,006   2,432,025   2,284,159  
               
    Net charge-offs (recoveries) to average loans, before allowance for loan losses *  (0.19)% 0.01 % (0.06)%

    ________________________
    *       Annualized measure.


    HBT Financial, Inc.
    Consolidated Financial Summary

      As of or for the Three Months Ended  
      March 31,  December 31,  March 31,  
      2022 2021 2021 
      (dollars in thousands, except per share data) 
    EARNINGS AND PER SHARE INFORMATION          
    Net income $13,604 $13,594 $15,245 
    Earnings per share - Basic  0.47  0.47  0.55 
    Earnings per share - Diluted  0.47  0.47  0.55 
               
    Adjusted net income (1) $12,227 $14,160 $14,033 
    Adjusted earnings per share - Basic (1)  0.42  0.49  0.51 
    Adjusted earnings per share - Diluted (1)  0.42  0.49  0.51 
               
    Book value per share $13.23 $14.21 $13.05 
    Tangible book value per share (1)  12.16  13.13  12.10 
               
    Shares of common stock outstanding  28,967,943  28,986,061  27,382,069 
    Weighted average shares of common stock outstanding  28,986,593  29,036,164  27,430,912 
               
    SUMMARY RATIOS          
    Net interest margin *  3.08% 3.17% 3.25%
    Net interest margin (tax equivalent basis) * (1)(2)  3.13  3.22  3.30 
               
    Efficiency ratio  56.97% 57.15% 55.73%
    Efficiency ratio (tax equivalent basis) (1)(2)  56.26  56.47  55.03 
               
    Loan to deposit ratio  65.19% 66.87% 67.66%
               
    Return on average assets *  1.27% 1.26% 1.64%
    Return on average stockholders' equity *  13.58  13.15  17.01 
    Return on average tangible common equity * (1)  14.71  14.24  18.33 
               
    Adjusted return on average assets * (1)  1.14% 1.32% 1.51%
    Adjusted return on average stockholders' equity * (1)  12.20  13.70  15.65 
    Adjusted return on average tangible common equity * (1)  13.22  14.83  16.88 

    ________________________
    *      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  
      March 31,  December 31,  March 31,  
      2022 2021 2021 
      (dollars in thousands) 
    Net income $13,604  $13,594  $15,245  
    Adjustments:          
    Acquisition expenses  —   (879)  —  
    Gains (losses) on sales of closed branch premises  197   —   —  
    Mortgage servicing rights fair value adjustment  1,729   265   1,695  
    Total adjustments  1,926   (614)  1,695  
    Tax effect of adjustments  (549)  48   (483) 
    Less adjustments, after tax effect  1,377   (566)  1,212  
    Adjusted net income $12,227  $14,160  $14,033  
               
    Average assets $4,343,446  $4,266,663  $3,761,215  
               
    Return on average assets *  1.27 % 1.26 % 1.64 %
    Adjusted return on average assets *  1.14   1.32   1.51  

    ________________________
    *       Annualized measure.


    Reconciliation of Non-GAAP Financial Measures –
    Adjusted Earnings Per Share

      Three Months Ended
      March 31,  December 31,  March 31, 
      2022 2021 2021
      (dollars in thousands, except per share data)
    Numerator:         
    Net income $13,604  $13,594  $15,245 
    Earnings allocated to participating securities (1)  (17)  (23)  (31)
    Numerator for earnings per share - basic and diluted $13,587  $13,571  $15,214 
              
    Adjusted net income $12,227  $14,160  $14,033 
    Earnings allocated to participating securities (1)  (15)  (24)  (28)
    Numerator for adjusted earnings per share - basic and diluted $12,212  $14,136  $14,005 
              
    Denominator:         
    Weighted average common shares outstanding  28,986,593   29,036,164   27,430,912 
    Dilutive effect of outstanding restricted stock units  43,646   27,577   2,489 
    Weighted average common shares outstanding, including all dilutive potential
    shares    		  29,030,239   29,063,741   27,433,401 
              
    Earnings per share - Basic $0.47  $0.47  $0.55 
    Earnings per share - Diluted $0.47  $0.47  $0.55 
              
    Adjusted earnings per share - Basic $0.42  $0.49  $0.51 
    Adjusted earnings per share - Diluted $0.42  $0.49  $0.51 

    ________________________
    (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 Income and Net Interest Margin (Tax Equivalent Basis)

      Three Months Ended  
      March 31,  December 31,  March 31,  
      2022 2021 2021 
      (dollars in thousands) 
    Net interest income (tax equivalent basis)          
    Net interest income $31,928 $32,859 $29,129 
    Tax-equivalent adjustment (1)  529  514  503 
    Net interest income (tax equivalent basis) (1) $32,457 $33,373 $29,632 
               
    Net interest margin (tax equivalent basis)          
    Net interest margin *  3.08% 3.17% 3.25%
    Tax-equivalent adjustment * (1)  0.05  0.05  0.05 
    Net interest margin (tax equivalent basis) * (1)  3.13% 3.22% 3.30%
               
    Average interest-earning assets $4,201,793 $4,115,247 $3,637,449 

    ________________________
    *      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  
      March 31,  December 31,  March 31,  
      2022 2021 2021 
      (dollars in thousands) 
    Efficiency ratio (tax equivalent basis)          
    Total noninterest expense $24,157 $24,381 $22,544 
    Less: amortization of intangible assets  245  255  289 
    Adjusted noninterest expense $23,912 $24,126 $22,255 
               
    Net interest income $31,928 $32,859 $29,129 
    Total noninterest income  10,043  9,354  10,808 
    Operating revenue  41,971  42,213  39,937 
    Tax-equivalent adjustment (1)  529  514  503 
    Operating revenue (tax equivalent basis) (1) $42,500 $42,727 $40,440 
               
    Efficiency ratio  56.97% 57.15% 55.73%
    Efficiency ratio (tax equivalent basis) (1)  56.26  56.47  55.03 

    ________________________
    (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

      March 31,  December 31,  March 31,  
      2022 2021 2021 
      (dollars in thousands, except per share data) 
    Tangible common equity          
    Total stockholders' equity $383,155 $411,881 $357,406 
    Less: Goodwill  29,322  29,322  23,620 
    Less: Core deposit intangible assets, net  1,698  1,943  2,509 
    Tangible common equity $352,135 $380,616 $331,277 
               
    Tangible assets          
    Total assets $4,348,965 $4,314,254 $3,865,614 
    Less: Goodwill  29,322  29,322  23,620 
    Less: Core deposit intangible assets, net  1,698  1,943  2,509 
    Tangible assets $4,317,945 $4,282,989 $3,839,485 
               
    Total stockholders' equity to total assets  8.81% 9.55% 9.25%
    Tangible common equity to tangible assets  8.16  8.89  8.63 
               
    Shares of common stock outstanding  28,967,943  28,986,061  27,382,069 
               
    Book value per share $13.23 $14.21 $13.05 
    Tangible book value per share  12.16  13.13  12.10 
               


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

      Three Months Ended  
      March 31,  December 31,  March 31,  
      2022 2021 2021 
      (dollars in thousands) 
    Average tangible common equity          
    Total stockholders' equity $406,289 $410,190 $363,557 
    Less: Goodwill  29,322  29,322  23,620 
    Less: Core deposit intangible assets, net  1,844  2,092  2,686 
    Average tangible common equity $375,123 $378,776 $337,251 
               
    Net income $13,604 $13,594 $15,245 
    Adjusted net income  12,227  14,160  14,033 
               
    Return on average stockholders' equity *  13.58% 13.15% 17.01%
    Return on average tangible common equity *  14.71  14.24  18.33 
               
    Adjusted return on average stockholders' equity *  12.20% 13.70% 15.65%
    Adjusted return on average tangible common equity *  13.22  14.83  16.88 

    ________________________
    *       Annualized measure.


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