-
HBT Financial, Inc. Announces Third Quarter 2022 Financial Results
ソース: Nasdaq GlobeNewswire / 24 10 2022 07:05:01 America/New_York
Third Quarter Highlights
- Net income of $15.6 million, or $0.54 per diluted share; return on average assets (ROAA) of 1.47%; return on average stockholders' equity (ROAE) of 16.27%; and return on average tangible common equity (ROATCE)(1) of 17.70%
- Adjusted net income(1) of $15.9 million; or $0.55 per diluted share; adjusted ROAA(1) of 1.49%; adjusted ROAE(1) of 16.51%; and adjusted ROATCE(1) of 17.96%
- Asset quality remained strong with nonperforming assets to total assets of 0.14%
- Cost of total deposits remained low at 0.06%
(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. 24, 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 $15.6 million, or $0.54 diluted earnings per share, for the third quarter of 2022. This compares to net income of $14.1 million, or $0.49 diluted earnings per share, for the second quarter of 2022, and net income of $13.7 million, or $0.50 diluted earnings per share, for the third quarter of 2021.
Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “We delivered another strong financial performance in the third quarter with earnings increasing from the prior quarter, while we continued to maintain exceptional asset quality and strong capital ratios. We generated our strongest loan growth of the year which enabled us to drive further improvement in our mix of earning assets. Combined with stable deposit costs, this resulted in significant expansion in our net interest margin. While continuing to generate strong financial results, we signed a merger agreement with Town and Country Financial Corporation (“Town and Country”) that we believe will create additional long-term value for shareholders. The transaction remains on track to close during the first quarter of 2023, and we look forward to welcoming our new customers and colleagues, and capitalizing on our expanded footprint in Illinois that we believe will enhance our ability to continue generating profitable growth in the years to come.”
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 $15.9 million, or $0.55 adjusted diluted earnings per share, for the third quarter of 2022. This compares to adjusted net income of $13.8 million, or $0.48 adjusted diluted earnings per share, for the second quarter of 2022, and adjusted net income of $14.5 million, or $0.53 adjusted diluted earnings per share, for the third quarter of 2021 (see "Reconciliation of Non-GAAP Financial Measures" tables).
Net Interest Income and Net Interest Margin
Net interest income for the third quarter of 2022 was $37.4 million, an increase of 8.8% from $34.4 million for the second quarter of 2022. The increase was primarily attributable to higher yields on interest-earning assets, with the yield on loans increasing 27 basis points to 4.91%, and stable deposit costs, with cost of total deposits only increasing 1 basis point to 0.06%. Paycheck Protection Program (“PPP”) loan fees recognized as loan interest income totaled $0.1 million during the third quarter of 2022 and $0.6 million during the second quarter of 2022.
Relative to the third quarter of 2021, net interest income increased 21.7% from $30.7 million. The increase was primarily attributable to higher average balances of interest-earning assets following the NXT Bancorporation, Inc. (“NXT”) acquisition in the fourth quarter of 2021, a more favorable asset mix, and higher yields on interest-earning assets. PPP loan fees recognized as loan interest income totaled $3.0 million during the third quarter of 2021.
Net interest margin for the third quarter of 2022 was 3.65%, compared to 3.34% for the second quarter of 2022. The increase was primarily attributable to higher yields on interest-earning assets. The contribution of PPP loan fees to net interest margin was 1 basis point during the third quarter of 2022 and 6 basis points during the second quarter of 2022. Additionally, the contribution of acquired loan discount accretion to net interest margin was 2 basis points during the third quarter of 2022 and 3 basis points during the second quarter of 2022.
Relative to the third quarter of 2021, net interest margin increased from 3.18%. This increase was primarily attributable to a more favorable mix of interest-earning assets and higher yields on interest-earning assets. PPP loan fees recognized as loan interest income contributed 31 basis points to net interest margin and acquired loan discount accretion contributed 2 basis points to net interest margin during the third quarter of 2021.
Noninterest Income
Noninterest income for the third quarter of 2022 was $8.2 million, a decrease of 3.7% from $8.6 million for the second quarter of 2022. The decrease was primarily attributable to a $0.3 million decrease in wealth management fees, due to a decline in assets under management resulting from the 2022 market performance, and a $0.1 million decrease in card income due to lower debit and credit card transaction volume.
Relative to the third quarter of 2021, noninterest income decreased 1.9% from $8.4 million. A $0.9 million decrease in gains on sale of mortgage loans resulting from a lower level of mortgage refinancing activity was mostly offset by a $0.6 million improvement to gains (losses) on other assets, as the 2021 results included impairment losses of $0.6 million related to branches closed during 2021.
Noninterest Expense
Noninterest expense for the third quarter of 2022 was $24.0 million, a slight increase from $23.8 million for the second quarter of 2022. Decreases in data processing and marketing expenses were mostly offset by an increase in other noninterest expense, primarily resulting from legal and professional fees related to the pending acquisition of Town and Country.
Relative to the third quarter of 2021, noninterest expense increased 8.3% from $22.2 million. The increase was primarily attributable to a higher base level of noninterest expense following the NXT acquisition, primarily related to personnel costs and branch operations expenses.
Loan Portfolio
Total loans outstanding, before allowance for loan losses, were $2.58 billion at September 30, 2022, compared with $2.45 billion at June 30, 2022 and $2.15 billion at September 30, 2021. The $128.1 million increase in total loans from June 30, 2022 was primarily attributable to broad growth in all of our geographic markets and a moderation in payoffs and prepayments.
Deposits
Total deposits were $3.64 billion at September 30, 2022, compared with $3.70 billion at June 30, 2022 and $3.42 billion at September 30, 2021. The $58.5 million decrease from June 30, 2022 was primarily attributable to lower balances maintained in retail accounts and a seasonal decrease in public fund accounts following annual real estate tax collections.
Asset Quality
Nonperforming loans totaled $3.2 million, or 0.12% of total loans, at September 30, 2022, compared with $3.4 million, or 0.14% of total loans, at June 30, 2022, and $5.5 million, or 0.26% of total loans, at September 30, 2021.
The Company recorded a provision for loan losses of $0.4 million for the third quarter of 2022, compared to $0.1 million for the second quarter of 2022. The provision was primarily due to the increase in loans during the third quarter of 2022, resulting in a $1.1 million increase in required reserves, and a decrease in specific reserves on loans individually evaluated for impairment, resulting in a $0.7 million decrease in required reserves.
The Company had net charge-offs of $0.1 million, or 0.01% of average loans on an annualized basis, for the third quarter of 2022, compared to net recoveries of $0.1 million, or (0.01)% of average loans on an annualized basis, for the second quarter of 2022, and net recoveries of $21 thousand, or less than 1 basis point of average loans on an annualized basis, for the third quarter of 2021.
The Company’s allowance for loan losses was 0.97% of total loans and 781.66% of nonperforming loans at September 30, 2022, compared with 1.01% of total loans and 721.11% of nonperforming loans at June 30, 2022.
Capital
At September 30, 2022, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:
Well Capitalized Regulatory September 30, 2022 Requirements Total capital to risk-weighted assets 16.34 % 10.00 % Tier 1 capital to risk-weighted assets 14.26 % 8.00 % Common equity tier 1 capital ratio 13.08 % 6.50 % Tier 1 leverage ratio 10.44 % 5.00 % Total stockholders' equity to total assets 8.52 % N/A Tangible common equity to tangible assets (1) 7.85 % 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 2022, the Company repurchased 78,571 shares of its common stock at a weighted average price of $18.22 under its stock repurchase program. The stock repurchase program has been paused until completion of the vote of Town and Country’s shareholders on the merger. 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 September 30, 2022, the Company had $10.2 million remaining under the current stock repurchase authorization.
Pending Acquisition of Town and Country
On August 23, 2022, HBT and Town and Country, the holding company for Town and Country Bank, jointly announced the signing of a definitive agreement pursuant to which HBT will acquire Town and Country and Town and Country Bank. The acquisition will further enhance HBT’s footprint in Central Illinois as well as expand HBT’s footprint into metro-east St. Louis. Acquisition-related expenses were $0.5 million during the third quarter of 2022.
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 58 full-service branches. As of September 30, 2022, HBT had total assets of $4.2 billion, total loans of $2.6 billion, and total deposits of $3.6 billion.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), tangible common equity to tangible assets, tangible book value per share, return on average tangible common equity, adjusted net income, adjusted earnings per share, adjusted return on average assets, adjusted return on average stockholders' equity, and adjusted return on average tangible common equity. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the "Reconciliation of Non-GAAP Financial Measures" tables.
Forward-Looking Statements
Readers should note that in addition to the historical information contained herein, this press release contains, and future oral and written statements of the Company and its management may contain, "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or “should,” or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
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; (xiii) the possibility that stockholders of Town and Country may not approve the merger agreement; (xiv) the risk that a condition to closing of the proposed transaction may not be satisfied, that either party may terminate the merger agreement or that the closing of the proposed transaction might be delayed or not occur at all; (xv) potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction; (xvi) the diversion of management time on transaction-related issues; (xvii) the ultimate timing, outcome and results of integrating the operations of Town and Country into those of HBT; (xviii) the effects of the merger on HBT’s future financial condition, results of operations, strategy and plans; (xix) regulatory approvals of the transaction; and (xx) 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 (the “SEC”).
Important Information and Where to Find It
In connection with the proposed transaction, HBT and Town and Country filed materials with the SEC, including a Registration Statement on Form S-4 of HBT that includes a proxy statement of Town and Country and a prospectus of HBT. After the Registration Statement is declared effective by the SEC, HBT and Town and Country intend to mail a definitive proxy statement/prospectus to the stockholders of Town and Country. This press release is not a substitute for the proxy statement/prospectus or the Registration Statement or for any other document that HBT or Town and Country may file with the SEC and send to Town and Country’s stockholders in connection with the proposed transaction. TOWN AND COUNTRY’S STOCKHOLDERS ARE URGED TO CAREFULLY AND THOROUGHLY READ THE PROXY STATEMENT/PROSPECTUS AND THE REGISTRATION STATEMENT, AS MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS FILED BY HBT OR TOWN AND COUNTRY WITH THE SEC, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT HBT, TOWN AND COUNTRY, THE PROPOSED TRANSACTION, THE RISKS RELATED THERETO AND RELATED MATTERS.
Investors will be able to obtain free copies of the Registration Statement and proxy statement/prospectus, as each may be amended from time to time, and other relevant documents filed by HBT and Town and Country with the SEC (when they become available) through the website maintained by the SEC at www.sec.gov. Copies of documents filed with the SEC by HBT will be available free of charge from HBT’s website at https://ir.hbtfinancial.com or by contacting HBT’s Investor Relations Department at HBTIR@hbtbank.com.
Participants in the Proxy Solicitation
HBT, Town and Country and their respective directors and certain of their executive officers and other members of management and employees may be deemed, under SEC rules, to be participants in the solicitation of proxies from Town and Country’s stockholders in connection with the proposed transaction. Information regarding the executive officers and directors of HBT is included in its definitive proxy statement for its 2022 annual meeting filed with the SEC on April 5, 2022. Information regarding the executive officers and directors of Town and Country and additional information regarding the persons who may be deemed participants and their direct and indirect interests, by security holdings or otherwise, will be set forth in the Registration Statement and proxy statement/prospectus and other materials when they are filed with the SEC in connection with the proposed transaction. Free copies of these documents may be obtained as described in the paragraphs above.
No Offer or Solicitation
This press release does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities or a solicitation of any vote or approval with respect to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.
CONTACT:
Tony Rossi
HBTIR@hbtbank.com
(310) 622-8221
HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Consolidated Statements of IncomeThree Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2022 2022 2021 2022 2021 INTEREST AND DIVIDEND INCOME (dollars in thousands, except per share data) Loans, including fees: Taxable $ 29,855 $ 27,843 $ 25,604 $ 84,504 $ 76,016 Federally tax exempt 842 679 572 2,183 1,722 Securities: Taxable 6,635 5,663 4,632 16,947 12,323 Federally tax exempt 1,207 1,138 1,103 3,385 3,383 Interest-bearing deposits in bank 458 420 190 1,037 385 Other interest and dividend income 17 14 14 50 39 Total interest and dividend income 39,014 35,757 32,115 108,106 93,868 INTEREST EXPENSE Deposits 587 506 564 1,662 1,821 Securities sold under agreements to repurchase 9 8 8 26 23 Borrowings 85 1 1 87 2 Subordinated notes 470 469 470 1,409 1,409 Junior subordinated debentures issued to capital trusts 473 400 357 1,231 1,069 Total interest expense 1,624 1,384 1,400 4,415 4,324 Net interest income 37,390 34,373 30,715 103,691 89,544 PROVISION FOR LOAN LOSSES 386 145 (1,667 ) (53 ) (7,234 ) Net interest income after provision for loan losses 37,004 34,228 32,382 103,744 96,778 NONINTEREST INCOME Card income 2,569 2,714 2,509 7,687 7,216 Wealth management fees 2,059 2,322 2,036 6,670 6,013 Service charges on deposit accounts 1,927 1,792 1,677 5,371 4,364 Mortgage servicing 697 661 699 2,016 2,095 Mortgage servicing rights fair value adjustment 351 366 40 2,446 1,425 Gains on sale of mortgage loans 354 326 1,257 1,267 4,919 Unrealized gains (losses) on equity securities (107 ) (153 ) 28 (447 ) 74 Gains (losses) on foreclosed assets (225 ) (7 ) (14 ) (192 ) 126 Gains (losses) on other assets (31 ) (43 ) (672 ) 119 (719 ) Income on bank owned life insurance 41 41 — 122 — Other noninterest income 599 532 832 1,769 2,461 Total noninterest income 8,234 8,551 8,392 26,828 27,974 NONINTEREST EXPENSE Salaries 12,752 12,936 11,835 38,489 36,486 Employee benefits 1,771 1,984 1,455 6,199 4,549 Occupancy of bank premises 1,979 1,741 1,610 5,780 5,011 Furniture and equipment 668 623 657 1,843 1,883 Data processing 1,631 1,990 1,767 5,274 5,176 Marketing and customer relations 880 1,205 883 2,936 2,291 Amortization of intangible assets 243 245 252 733 799 FDIC insurance 302 298 279 888 763 Loan collection and servicing 336 278 400 771 1,098 Foreclosed assets 97 31 242 260 704 Other noninterest expense 3,339 2,511 2,787 8,824 8,105 Total noninterest expense 23,998 23,842 22,167 71,997 66,865 INCOME BEFORE INCOME TAX EXPENSE 21,240 18,937 18,607 58,575 57,887 INCOME TAX EXPENSE 5,613 4,852 4,892 15,259 15,210 NET INCOME $ 15,627 $ 14,085 $ 13,715 $ 43,316 $ 42,677 EARNINGS PER SHARE - BASIC $ 0.54 $ 0.49 $ 0.50 $ 1.50 $ 1.56 EARNINGS PER SHARE - DILUTED $ 0.54 $ 0.49 $ 0.50 $ 1.49 $ 1.56 WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING 28,787,662 28,891,202 27,340,926 28,887,757 27,377,809
HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Consolidated Balance SheetsSeptember 30, June 30, September 30, 2022 2022 2021 (dollars in thousands) ASSETS Cash and due from banks $ 22,169 $ 25,478 $ 36,508 Interest-bearing deposits with banks 56,046 134,553 435,421 Cash and cash equivalents 78,215 160,031 471,929 Debt securities available-for-sale, at fair value 853,740 924,706 896,218 Debt securities held-to-maturity 546,694 548,236 318,730 Equity securities with readily determinable fair value 2,996 3,103 3,366 Equity securities with no readily determinable fair value 1,977 1,952 1,867 Restricted stock, at cost 4,050 2,813 2,739 Loans held for sale 2,297 5,312 8,582 Loans, before allowance for loan losses 2,579,928 2,451,826 2,147,812 Allowance for loan losses (25,060 ) (24,734 ) (24,861 ) Loans, net of allowance for loan losses 2,554,868 2,427,092 2,122,951 Bank owned life insurance 7,515 7,474 — Bank premises and equipment, net 50,854 51,433 49,337 Bank premises held for sale 281 319 1,462 Foreclosed assets 2,637 2,891 7,315 Goodwill 29,322 29,322 23,620 Core deposit intangible assets, net 1,210 1,453 1,999 Mortgage servicing rights, at fair value 10,440 10,089 7,359 Investments in unconsolidated subsidiaries 1,165 1,165 1,165 Accrued interest receivable 16,881 14,263 13,376 Other assets 48,182 32,324 16,211 Total assets $ 4,213,324 $ 4,223,978 $ 3,948,226 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits: Noninterest-bearing $ 1,017,710 $ 1,028,790 $ 1,003,723 Interest-bearing 2,625,733 2,673,196 2,415,833 Total deposits 3,643,443 3,701,986 3,419,556 Securities sold under agreements to repurchase 48,130 51,091 47,957 Federal Home Loan Bank advances 60,000 — — Subordinated notes 39,376 39,356 39,297 Junior subordinated debentures issued to capital trusts 37,763 37,747 37,698 Other liabilities 25,539 19,989 24,897 Total liabilities 3,854,251 3,850,169 3,569,405 Stockholders' Equity Common stock 293 293 275 Surplus 222,436 222,087 191,413 Retained earnings 223,495 212,506 184,919 Accumulated other comprehensive income (loss) (77,462 ) (52,820 ) 4,537 Treasury stock at cost (9,689 ) (8,257 ) (2,323 ) Total stockholders’ equity 359,073 373,809 378,821 Total liabilities and stockholders’ equity $ 4,213,324 $ 4,223,978 $ 3,948,226 SHARE INFORMATION Shares of common stock outstanding 28,752,626 28,831,197 27,334,428
HBT Financial, Inc.
Unaudited Consolidated Financial SummarySeptember 30, June 30, September 30, 2022 2022 2021 (dollars in thousands) LOANS Commercial and industrial $ 240,671 $ 249,839 $ 261,763 Agricultural and farmland 245,234 230,370 229,718 Commercial real estate - owner occupied 226,524 228,997 203,096 Commercial real estate - non-owner occupied 718,089 656,093 579,860 Multi-family 260,630 269,452 215,245 Construction and land development 364,290 332,041 232,291 One-to-four family residential 328,667 325,047 294,612 Municipal, consumer, and other 195,823 159,987 131,227 Loans, before allowance for loan losses $ 2,579,928 $ 2,451,826 $ 2,147,812 PPP LOANS (included above) Commercial and industrial $ 65 $ 2,823 $ 55,374 Agricultural and farmland — 9 3,462 Municipal, consumer, and other — — 985 Total PPP Loans $ 65 $ 2,832 $ 59,821 September 30, June 30, September 30, 2022 2022 2021 (dollars in thousands) DEPOSITS Noninterest-bearing $ 1,017,710 $ 1,028,790 $ 1,003,723 Interest-bearing demand 1,131,284 1,162,292 1,013,678 Money market 584,202 581,058 519,343 Savings 641,139 654,953 611,050 Time 269,108 274,893 271,762 Total deposits $ 3,643,443 $ 3,701,986 $ 3,419,556
HBT Financial, Inc.
Unaudited Consolidated Financial SummaryThree Months Ended September 30, 2022 June 30, 2022 September 30, 2021 Average Average Average Balance Interest Yield/Cost* Balance Interest Yield/Cost* Balance Interest Yield/Cost* (dollars in thousands) ASSETS Loans $ 2,481,920 $ 30,697 4.91 % $ 2,467,851 $ 28,522 4.64 % $ 2,135,476 $ 26,176 4.86 % Securities 1,470,092 7,842 2.12 1,422,096 6,801 1.92 1,180,513 5,735 1.93 Deposits with banks 105,030 458 1.73 240,692 420 0.70 513,158 190 0.15 Other 2,936 17 2.25 2,809 14 2.07 2,739 14 2.00 Total interest-earning assets 4,059,978 $ 39,014 3.81 % 4,133,448 $ 35,757 3.47 % 3,831,886 $ 32,115 3.33 % Allowance for loan losses (24,717 ) (24,579 ) (26,470 ) Noninterest-earning assets 173,461 177,433 159,635 Total assets $ 4,208,722 $ 4,286,302 $ 3,965,051 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Interest-bearing deposits: Interest-bearing demand $ 1,137,072 $ 144 0.05 % $ 1,159,077 $ 144 0.05 % $ 1,020,216 $ 129 0.05 % Money market 577,388 203 0.14 582,016 110 0.08 510,183 96 0.07 Savings 649,752 53 0.03 661,661 52 0.03 608,436 48 0.03 Time 271,870 187 0.27 284,880 200 0.28 275,224 291 0.42 Total interest-bearing deposits 2,636,082 587 0.09 2,687,634 506 0.08 2,414,059 564 0.09 Securities sold under agreements to repurchase 50,427 9 0.07 51,057 8 0.07 49,923 8 0.06 Borrowings 11,967 85 2.80 440 1 1.34 326 1 0.46 Subordinated notes 39,365 470 4.73 39,346 469 4.79 39,285 470 4.74 Junior subordinated debentures issued to capital trusts 37,755 473 4.97 37,738 400 4.26 37,688 357 3.76 Total interest-bearing liabilities 2,775,596 $ 1,624 0.23 % 2,816,215 $ 1,384 0.20 % 2,541,281 $ 1,400 0.22 % Noninterest-bearing deposits 1,031,407 1,072,883 1,016,384 Noninterest-bearing liabilities 20,736 18,673 26,523 Total liabilities 3,827,739 3,907,771 3,584,188 Stockholders' Equity 380,983 378,531 380,863 Total liabilities and stockholders’ equity $ 4,208,722 $ 4,286,302 $ 3,965,051 Net interest income/Net interest margin (1) $ 37,390 3.65 % $ 34,373 3.34 % $ 30,715 3.18 % Tax-equivalent adjustment (2) 674 0.07 598 0.05 508 0.05 Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3) $ 38,064 3.72 % $ 34,971 3.39 % $ 31,223 3.23 % Net interest rate spread (4) 3.58 % 3.27 % 3.11 % Net interest-earning assets (5) $ 1,284,382 $ 1,317,233 $ 1,290,605 Ratio of interest-earning assets to interest-bearing liabilities 1.46 1.47 1.51 Cost of total deposits 0.06 % 0.05 % 0.07 %
* 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 SummaryNine Months Ended September 30, 2022 September 30, 2021 Average Average Balance Interest Yield/Cost* Balance Interest Yield/Cost* (dollars in thousands) ASSETS Loans $ 2,485,501 $ 86,687 4.66 % $ 2,217,463 $ 77,738 4.69 % Securities 1,405,245 20,332 1.93 1,102,808 15,706 1.90 Deposits with banks 237,646 1,037 0.58 432,971 385 0.12 Other 2,829 50 2.36 2,655 39 1.95 Total interest-earning assets 4,131,221 $ 108,106 3.50 % 3,755,897 $ 93,868 3.34 % Allowance for loan losses (24,467 ) (29,069 ) Noninterest-earning assets 172,243 157,287 Total assets $ 4,278,997 $ 3,884,115 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Interest-bearing deposits: Interest-bearing demand $ 1,146,635 $ 430 0.05 % $ 1,012,557 $ 373 0.05 % Money market 585,815 434 0.10 498,441 279 0.07 Savings 653,659 155 0.03 584,226 135 0.03 Time 289,000 643 0.30 286,685 1,034 0.48 Total interest-bearing deposits 2,675,109 1,662 0.08 2,381,909 1,821 0.10 Securities sold under agreements to repurchase 51,503 26 0.07 47,827 23 0.06 Borrowings 4,344 87 2.67 421 2 0.43 Subordinated notes 39,345 1,409 4.79 39,265 1,409 4.80 Junior subordinated debentures issued to capital trusts 37,738 1,231 4.36 37,671 1,069 3.79 Total interest-bearing liabilities 2,808,039 $ 4,415 0.21 % 2,507,093 $ 4,324 0.23 % Noninterest-bearing deposits 1,060,566 976,884 Noninterest-bearing liabilities 21,883 30,205 Total liabilities 3,890,488 3,514,182 Stockholders' Equity 388,509 369,933 Total liabilities and stockholders’ equity $ 4,278,997 3,884,115 Net interest income/Net interest margin (1) $ 103,691 3.36 % $ 89,544 3.19 % Tax-equivalent adjustment (2) 1,801 0.05 1,514 0.05 Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3) $ 105,492 3.41 % $ 91,058 3.24 % Net interest rate spread (4) 3.29 % 3.11 % Net interest-earning assets (5) $ 1,323,182 $ 1,248,804 Ratio of interest-earning assets to interest-bearing liabilities 1.47 1.50 Cost of total deposits 0.06 % 0.07 %
* 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 SummarySeptember 30, June 30, September 30, 2022 2022 2021 (dollars in thousands) NONPERFORMING ASSETS Nonaccrual $ 3,206 $ 3,248 $ 5,489 Past due 90 days or more, still accruing (1) — 182 39 Total nonperforming loans 3,206 3,430 5,528 Foreclosed assets 2,637 2,891 7,315 Total nonperforming assets $ 5,843 $ 6,321 $ 12,843 Allowance for loan losses $ 25,060 $ 24,734 $ 24,861 Loans, before allowance for loan losses 2,579,928 2,451,826 2,147,812 CREDIT QUALITY RATIOS Allowance for loan losses to loans, before allowance for loan losses 0.97 % 1.01 % 1.16 % Allowance for loan losses to nonaccrual loans 781.66 761.51 452.92 Allowance for loan losses to nonperforming loans 781.66 721.11 449.73 Nonaccrual loans to loans, before allowance for loan losses 0.12 0.13 0.26 Nonperforming loans to loans, before allowance for loan losses 0.12 0.14 0.26 Nonperforming assets to total assets 0.14 0.15 0.33 Nonperforming assets to loans, before allowance for loan losses, and foreclosed assets 0.23 0.26 0.60
(1) Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $22 thousand, $23 thousand, and $27 thousand as of September 30, 2022, June 30, 2022 and September 30, 2021, respectively.
Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2022 2022 2021 2022 2021 ALLOWANCE FOR LOAN LOSSES (dollars in thousands) Beginning balance $ 24,734 $ 24,508 $ 26,507 $ 23,936 $ 31,838 Provision 386 145 (1,667 ) (53 ) (7,234 ) Charge-offs (222 ) (159 ) (278 ) (515 ) (875 ) Recoveries 162 240 299 1,692 1,132 Ending balance $ 25,060 $ 24,734 $ 24,861 $ 25,060 $ 24,861 Net charge-offs (recoveries) $ 60 $ (81 ) $ (21 ) $ (1,177 ) $ (257 ) Average loans, before allowance for loan losses 2,481,920 2,467,851 2,135,476 2,485,501 2,217,463 Net charge-offs (recoveries) to average loans, before allowance for loan losses * 0.01 % (0.01 ) % — % (0.06 ) % (0.02 ) %
* Annualized measure.
HBT Financial, Inc.
Unaudited Consolidated Financial SummaryAs of or for the Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2022 2022 2021 2022 2021 (dollars in thousands, except per share data) EARNINGS AND PER SHARE INFORMATION Net income $ 15,627 $ 14,085 $ 13,715 $ 43,316 $ 42,677 Earnings per share - Basic 0.54 0.49 0.50 1.50 1.56 Earnings per share - Diluted 0.54 0.49 0.50 1.49 1.56 Adjusted net income (1) $ 15,856 $ 13,836 $ 14,479 $ 41,919 $ 42,680 Adjusted earnings per share - Basic (1) 0.55 0.48 0.53 1.45 1.56 Adjusted earnings per share - Diluted (1) 0.55 0.48 0.53 1.45 1.56 Book value per share $ 12.49 $ 12.97 $ 13.86 Tangible book value per share (1) 11.43 11.90 12.92 Shares of common stock outstanding 28,752,626 28,831,197 27,334,428 Weighted average shares of common stock outstanding 28,787,662 28,891,202 27,340,926 28,887,757 27,377,809 SUMMARY RATIOS Net interest margin * 3.65 % 3.34 % 3.18 % 3.36 % 3.19 % Net interest margin (tax equivalent basis) * (1)(2) 3.72 3.39 3.23 3.41 3.24 Efficiency ratio 52.07 % 54.97 % 56.04 % 54.60 % 56.22 % Efficiency ratio (tax equivalent basis) (1)(2) 51.31 54.22 55.32 53.86 55.50 Loan to deposit ratio 70.81 % 66.23 % 62.81 % Return on average assets * 1.47 % 1.32 % 1.37 % 1.35 % 1.47 % Return on average stockholders' equity * 16.27 14.92 14.29 14.91 15.42 Return on average tangible common equity * (1) 17.70 16.25 15.32 16.20 16.59 Adjusted return on average assets * (1) 1.49 % 1.29 % 1.45 % 1.31 % 1.47 % Adjusted return on average stockholders' equity * (1) 16.51 14.66 15.08 14.43 15.43 Adjusted return on average tangible common equity * (1) 17.96 15.96 16.18 15.67 16.59
* 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 AssetsThree Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2022 2022 2021 2022 2021 (dollars in thousands) Net income $ 15,627 $ 14,085 $ 13,715 $ 43,316 $ 42,677 Adjustments: Acquisition expenses (462 ) — (380 ) (462 ) (537 ) Branch closure expenses — — (644 ) — (748 ) Gains (losses) on sales of closed branch premises (38 ) (18 ) — 141 — Mortgage servicing rights fair value adjustment 351 366 40 2,446 1,425 Total adjustments (149 ) 348 (984 ) 2,125 140 Tax effect of adjustments (80 ) (99 ) 220 (728 ) (143 ) Less adjustments, after tax effect (229 ) 249 (764 ) 1,397 (3 ) Adjusted net income $ 15,856 $ 13,836 $ 14,479 $ 41,919 $ 42,680 Average assets $ 4,208,722 $ 4,286,302 $ 3,965,051 $ 4,278,997 $ 3,884,115 Return on average assets * 1.47 % 1.32 % 1.37 % 1.35 % 1.47 % Adjusted return on average assets * 1.49 1.29 1.45 1.31 1.47
* Annualized measure.
Reconciliation of Non-GAAP Financial Measures –
Adjusted Earnings Per ShareThree Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2022 2022 2021 2022 2021 (dollars in thousands, except per share data) Numerator: Net income $ 15,627 $ 14,085 $ 13,715 $ 43,316 $ 42,677 Earnings allocated to participating securities (1) (17 ) (17 ) (25 ) (51 ) (81 ) Numerator for earnings per share - basic and diluted $ 15,610 $ 14,068 $ 13,690 $ 43,265 $ 42,596 Adjusted net income $ 15,856 $ 13,836 $ 14,479 $ 41,919 $ 42,680 Earnings allocated to participating securities (1) (17 ) (17 ) (27 ) (49 ) (81 ) Numerator for adjusted earnings per share - basic and diluted $ 15,839 $ 13,819 $ 14,452 $ 41,870 $ 42,599 Denominator: Weighted average common shares outstanding 28,787,662 28,891,202 27,340,926 28,887,757 27,377,809 Dilutive effect of outstanding restricted stock units 72,643 53,674 13,921 56,761 11,412 Weighted average common shares outstanding, including all dilutive potential shares 28,860,305 28,944,876 27,354,847 28,944,518 27,389,221 Earnings per share - Basic $ 0.54 $ 0.49 $ 0.50 $ 1.50 $ 1.56 Earnings per share - Diluted $ 0.54 $ 0.49 $ 0.50 $ 1.49 $ 1.56 Adjusted earnings per share - Basic $ 0.55 $ 0.48 $ 0.53 $ 1.45 $ 1.56 Adjusted earnings per share - Diluted $ 0.55 $ 0.48 $ 0.53 $ 1.45 $ 1.56
(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 Nine Months Ended September 30, June 30, September 30, September 30, 2022 2022 2021 2022 2021 (dollars in thousands) Net interest income (tax equivalent basis) Net interest income $ 37,390 $ 34,373 $ 30,715 $ 103,691 $ 89,544 Tax-equivalent adjustment (1) 674 598 508 1,801 1,514 Net interest income (tax equivalent basis) (1) $ 38,064 $ 34,971 $ 31,223 $ 105,492 $ 91,058 Net interest margin (tax equivalent basis) Net interest margin * 3.65 % 3.34 % 3.18 % 3.36 % 3.19 % Tax-equivalent adjustment * (1) 0.07 0.05 0.05 0.05 0.05 Net interest margin (tax equivalent basis) * (1) 3.72 % 3.39 % 3.23 % 3.41 % 3.24 % Average interest-earning assets $ 4,059,978 $ 4,133,448 $ 3,831,886 $ 4,131,221 $ 3,755,897
* 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, 2022 2022 2021 2022 2021 (dollars in thousands) Efficiency ratio (tax equivalent basis) Total noninterest expense $ 23,998 $ 23,842 $ 22,167 $ 71,997 $ 66,865 Less: amortization of intangible assets 243 245 252 733 799 Adjusted noninterest expense $ 23,755 $ 23,597 $ 21,915 $ 71,264 $ 66,066 Net interest income $ 37,390 $ 34,373 $ 30,715 $ 103,691 $ 89,544 Total noninterest income 8,234 8,551 8,392 26,828 27,974 Operating revenue 45,624 42,924 39,107 130,519 117,518 Tax-equivalent adjustment (1) 674 598 508 1,801 1,514 Operating revenue (tax equivalent basis) (1) $ 46,298 $ 43,522 $ 39,615 $ 132,320 $ 119,032 Efficiency ratio 52.07 % 54.97 % 56.04 % 54.60 % 56.22 % Efficiency ratio (tax equivalent basis) (1) 51.31 54.22 55.32 53.86 55.50
(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 ShareSeptember 30, June 30, September 30, 2022 2022 2021 (dollars in thousands, except per share data) Tangible common equity Total stockholders' equity $ 359,073 $ 373,809 $ 378,821 Less: Goodwill 29,322 29,322 23,620 Less: Core deposit intangible assets, net 1,210 1,453 1,999 Tangible common equity $ 328,541 $ 343,034 $ 353,202 Tangible assets Total assets $ 4,213,324 $ 4,223,978 $ 3,948,226 Less: Goodwill 29,322 29,322 23,620 Less: Core deposit intangible assets, net 1,210 1,453 1,999 Tangible assets $ 4,182,792 $ 4,193,203 $ 3,922,607 Total stockholders' equity to total assets 8.52 % 8.85 % 9.59 % Tangible common equity to tangible assets 7.85 8.18 9.00 Shares of common stock outstanding 28,752,626 28,831,197 27,334,428 Book value per share $ 12.49 $ 12.97 $ 13.86 Tangible book value per share 11.43 11.90 12.92
Reconciliation of Non-GAAP Financial Measures –
Return on Average Tangible Common Equity,
Adjusted Return on Average Stockholders' Equity and Adjusted Return on Tangible Common EquityThree Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2022 2022 2021 2022 2021 (dollars in thousands) Average tangible common equity Total stockholders' equity $ 380,983 $ 378,531 $ 380,863 $ 388,509 $ 369,933 Less: Goodwill 29,322 29,322 23,620 29,322 23,620 Less: Core deposit intangible assets, net 1,356 1,597 2,152 1,597 2,414 Average tangible common equity $ 350,305 $ 347,612 $ 355,091 $ 357,590 $ 343,899 Net income $ 15,627 $ 14,085 $ 13,715 $ 43,316 $ 42,677 Adjusted net income 15,856 13,836 14,479 41,919 42,680 Return on average stockholders' equity * 16.27 % 14.92 % 14.29 % 14.91 % 15.42 % Return on average tangible common equity * 17.70 16.25 15.32 16.20 16.59 Adjusted return on average stockholders' equity * 16.51 % 14.66 % 15.08 % 14.43 % 15.43 % Adjusted return on average tangible common equity * 17.96 15.96 16.18 15.67 16.59
* Annualized measure.