EX-99.1 2 hbt-20230724xex99d1.htm EX-99.1

EXHIBIT 99.1

HBT FINANCIAL, INC. ANNOUNCES

SECOND QUARTER 2023 FINANCIAL RESULTS

Second Quarter Highlights

●

Net income of $18.5 million, or $0.58 per diluted share; return on average assets (ROAA) of 1.49%; return on average stockholders' equity (ROAE) of 16.30%; and return on average tangible common equity (ROATCE)⁽¹⁾ of 19.91%

●

Adjusted net income⁽¹⁾ of $18.8 million; or $0.58 per diluted share; adjusted ROAA⁽¹⁾ of 1.51%; adjusted ROAE⁽¹⁾ of 16.57%; and adjusted ROATCE⁽¹⁾ of 20.23%

●

Asset quality remained strong with nonperforming assets to total assets of 0.21%

●

Net interest margin of 4.16% and net interest margin (tax equivalent basis)⁽¹⁾ of 4.22%

(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, IL, July 24, 2023 – HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $18.5 million, or $0.58 diluted earnings per share, for the second quarter of 2023. This compares to net income of $9.2 million, or $0.30 diluted earnings per share, for the first quarter of 2023, and net income of $14.1 million, or $0.49 diluted earnings per share, for the second quarter of 2022.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “I had the honor of being named CEO of HBT Financial and Heartland Bank and Trust Company during the second quarter. I look forward to continuing to work closely with Fred Drake, Executive Chairman; the rest of Board of Directors; and our executive team to deliver the consistently solid financial performance to which we are accustomed. I am very pleased with our financial performance for the second quarter of 2023. With a ROAA of 1.49% and a ROATCE of 19.91%, we continue to produce strong returns. Our granular deposit base and excellent credit quality continue to support our strong results. Although we continue to see pressure on deposit pricing, we were able to maintain a solid net interest margin of 4.16%, down only 4 basis points from last quarter. We completed our system conversion for our Town and Country Financial Corporation (“Town and Country”) acquisition and have fully integrated the Town and Country team. We look forward to recognizing the enhanced long-term value provided by the increased scale and new markets that this acquisition has provided.”

HBT Financial, Inc.

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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 $18.8 million, or $0.58 adjusted diluted earnings per share, for the second quarter of 2023. This compares to adjusted net income of $19.9 million, or $0.64 adjusted diluted earnings per share, for the first quarter of 2023, and adjusted net income of $13.8 million, or $0.48 adjusted diluted earnings per share, for the second quarter of 2022 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2023 was $48.9 million, an increase of 4.3% from $46.8 million for the first quarter of 2023. The increase was primarily attributable to the increase in earning assets following the Town and Country merger completed on February 1, 2023 and higher yields on interest-earning assets. Partially offsetting this improvement was an increase in funding costs.

Relative to the second quarter of 2022, net interest income increased 42.2% from $34.4 million. The increase was primarily attributable to higher yields on interest-earning assets and the increase in average interest-earning assets following the Town and Country merger.

Net interest margin for the second quarter of 2023 was 4.16%, compared to 4.20% for the first quarter of 2023, and net interest margin (tax equivalent basis) for the second quarter of 2023 was 4.22% compared to 4.26% for the first quarter of 2023. The decrease was primarily attributable to higher funding costs with the cost of funds increasing to 0.71% for the second quarter of 2023, compared to 0.47% for the first quarter of 2023, which outpaced the increased asset yields which rose by 19 basis points to 4.83%. Acquired loan discount accretion contributed 9 basis points to net interest margin during the second quarter of 2023 and 7 basis points during the first quarter of 2023.

Relative to the second quarter of 2022, net interest margin increased from 3.34%. This increase was primarily attributable to higher yields on interest-earning assets. Acquired loan discount accretion contributed 3 basis points to net interest margin, during the second quarter of 2022.

Noninterest Income

Noninterest income for the second quarter of 2023 was $9.9 million, an increase of 33.3% from $7.4 million for the first quarter of 2023. The increase was primarily attributable to the absence of realized losses on sales of securities of $1.0 million included in the first quarter of 2023 results as well as a $0.8 million change in the mortgage servicing rights fair value adjustment. Additionally, increases in card income of $0.2 million and mortgage servicing income of $0.2 million primarily reflect the addition of Town and Country’s operations for the first full quarter.

Relative to the second quarter of 2022, noninterest income increased 15.9% from $8.6 million. The increase was primarily attributable to the Town and Country merger with a $0.6 million increase in mortgage servicing income, a $0.2 million increase in card income, and a $0.1 million increase in service charges on deposit accounts.

Noninterest Expense

Noninterest expense for the second quarter of 2023 was $34.0 million, a 5.5% decrease from $35.9 million for the first quarter of 2023. Acquisition-related noninterest expenses totaled $0.6 million during the second quarter of 2023, compared to $7.1 million during the first quarter of 2023. Excluding acquisition-related noninterest expenses, the $4.6 million increase in noninterest expense was primarily attributable to $0.8 million of legal fees and $0.8 million of accruals related to pending legal matters previously disclosed and incurred during the second quarter of 2023 that were not present in the first quarter of 2023 results. Settlements have been reached with plaintiffs in these matters which are now pending final court approval. Additionally, the second quarter of 2023 results included a full quarter’s impact of Town and Country’s operations.

HBT Financial, Inc.

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Relative to the second quarter of 2022, noninterest expense increased 42.5% from $23.8 million, primarily attributable to the addition of Town and Country’s operations, additional legal costs and settlement accrual.

Acquisition-related expenses during the first and second quarter of 2023 are summarized below. There were no acquisition-related expenses during the second quarter of 2022. We do not expect material acquisition-related expenses related to Town and Country in subsequent quarters.


	Three Months Ended
	June 30, 2023		March 31, 2023

	(dollars in thousands)
PROVISION FOR CREDIT LOSSES	$	—	$	5,924
NONINTEREST EXPENSE
Salaries		66		3,518
Furniture and equipment		39		—
Data processing		176		1,855
Marketing and customer relations		10		14
Loan collection and servicing		125		—
Legal fees and other noninterest expense		211		1,753
Total noninterest expense		627		7,140
Total acquisition-related expenses	$	627	$	13,064

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.24 billion at June 30, 2023, compared with $3.20 billion at March 31, 2023 and $2.45 billion at June 30, 2022. The $49.1 million increase from March 31, 2023 was primarily attributable to a $52.8 million increase in commercial and industrial loans driven by new loan fundings and the purchase of $37.0 million of loans from two new strategic partners. The $53.9 million decrease in the construction and development loans was generally driven by the completion of a number of sizeable projects that are now amortizing and have been moved into other real estate loan categories, with the largest being a $29.5 million project that moved to the commercial real estate - non-owner occupied category. Additionally, we received a payoff on a $12.4 million substandard relationship in the commercial real estate - non-owner occupied category.

Deposits

Total deposits were $4.16 billion at June 30, 2023, compared with $4.31 billion at March 31, 2023 and $3.70 billion at June 30, 2022. The $146.0 million decrease from March 31, 2023 was primarily attributable to decreases in balances held in existing retail and business accounts partially offset by a seasonal increase in public fund account balances and the addition of $51.0 million of brokered deposits. Additionally, a higher than historical average net deposit inflow on March 31, 2023, as referenced in our first quarter of 2023 investor presentation, included $36 million related to one account which was withdrawn at the beginning of the second quarter of 2023.

Asset Quality

Nonperforming loans totaled $7.5 million, or 0.23% of total loans, at June 30, 2023, compared with $6.5 million, or 0.20% of total loans, at March 31, 2023, and $3.4 million, or 0.14% of total loans, at June 30, 2022. The $1.0 million increase in nonperforming loans from March 31, 2023 was primarily attributable to a $1.3 million increase in nonaccrual one-to-four family residential real estate loans.

The Company recorded a negative provision for credit losses of $0.2 million for the second quarter of 2023. The negative provision for credit losses primarily reflects a $1.1 million decrease in specific reserves, a $1.1 million increase in required reserves driven by growth of the loan portfolio and unfunded commitments, a $0.4 million decrease in required reserves resulting from changes in economic and qualitative factors, a $0.2 million increase in reserves on debt securities available-for-sale, related to one bank subordinated debt security, and net recoveries of $0.1 million.

The Company had net recoveries of $0.1 million, or (0.01)% of average loans on an annualized basis, for the second quarter of 2023, compared to net recoveries of $0.1 million, or (0.02)% of average loans on an annualized basis, for the first quarter of 2023, and net recoveries of $0.1 million, or (0.01)% of average loans on an annualized basis, for the second quarter of 2022.

HBT Financial, Inc.

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The Company’s allowance for credit losses was 1.17% of total loans and 502% of nonperforming loans at June 30, 2023, compared with 1.21% of total loans and 595% of nonperforming loans at March 31, 2023.

Stock Repurchase Program

During the second quarter of 2023, the Company repurchased 229,502 shares of its common stock at a weighted average price of $18.07 under its stock repurchase program. The Company’s Board of Directors have authorized the repurchase of up to $15 million of HBT Financial common stock under its stock repurchase program in effect until January 1, 2024. As of June 30, 2023, the Company had $9.3 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 Illinois and Eastern Iowa through 67 full-service branches. As of June 30, 2023, HBT had total assets of $5.0 billion, total loans of $3.2 billion, and total deposits of $4.2 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.

HBT Financial, Inc.

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Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics (including the COVID-19 pandemic in the United States), acts of war or other threats thereof (including the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB or the PCAOB (including the Company’s adoption of CECL methodology); (iv) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the recent failures of other banks; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of LIBOR phase-out); (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions and “fintech” companies, and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xix) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

CONTACT:

Peter Chapman

HBTIR@hbtbank.com

(888) 897-2276

HBT Financial, Inc.

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HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	As of or for the Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2023			2023			2022			2023			2022

	(dollars in thousands, except per share data)
Interest and dividend income	$	56,768		$	51,779		$	35,757		$	108,547		$	69,092
Interest expense		7,896			4,942			1,384			12,838			2,791
Net interest income		48,872			46,837			34,373			95,709			66,301
Provision for credit losses		(230)			6,210			145			5,980			(439)
Net interest income after provision for credit losses		49,102			40,627			34,228			89,729			66,740
Noninterest income		9,914			7,437			8,551			17,351			18,594
Noninterest expense		33,973			35,933			23,842			69,906			47,999
Income before income tax expense		25,043			12,131			18,937			37,174			37,335
Income tax expense		6,570			2,923			4,852			9,493			9,646
Net income	$	18,473		$	9,208		$	14,085		$	27,681		$	27,689

Earnings per share - Basic	$	0.58		$	0.30		$	0.49		$	0.88		$	0.96
Earnings per share - Diluted		0.58			0.30			0.49			0.88			0.95

Adjusted net income ⁽¹⁾	$	18,772		$	19,859		$	13,836		$	38,631		$	26,063
Adjusted earnings per share - Basic ⁽¹⁾		0.59			0.64			0.48			1.23			0.90
Adjusted earnings per share - Diluted ⁽¹⁾		0.58			0.64			0.48			1.22			0.90

Book value per share	$	14.15		$	14.02		$	12.97
Tangible book value per share ⁽¹⁾		11.58			11.45			11.90

Shares of common stock outstanding		31,865,868			32,095,370			28,831,197
Weighted average shares of common stock outstanding		31,980,133			30,977,204			28,891,202			31,481,439			28,938,634

SUMMARY RATIOS
Net interest margin *		4.16	%		4.20	%		3.34	%		4.18	%		3.21	%
Net interest margin (tax equivalent basis) * ⁽¹⁾⁽²⁾		4.22			4.26			3.39			4.24			3.26

Efficiency ratio		56.57	%		65.27	%		54.97	%		60.74	%		55.96	%
Efficiency ratio (tax equivalent basis) ⁽¹⁾⁽²⁾		55.89			64.43			54.22			59.99			55.23

Loan to deposit ratio		77.91	%		74.13	%		66.23	%

Return on average assets *		1.49	%		0.78	%		1.32	%		1.15	%		1.29	%
Return on average stockholders' equity *		16.30			8.84			14.92			12.73			14.23
Return on average tangible common equity * ⁽¹⁾		19.91			10.45			16.25			15.31			15.45

Adjusted return on average assets * ⁽¹⁾		1.51	%		1.69	%		1.29	%		1.60	%		1.22	%
Adjusted return on average stockholders' equity * ⁽¹⁾		16.57			19.08			14.66			17.77			13.40
Adjusted return on average tangible common equity * ⁽¹⁾		20.23			22.55			15.96			21.36			14.55

CAPITAL
Total capital to risk-weighted assets		15.03	%		15.11	%		16.76	%
Tier 1 capital to risk-weighted assets		13.12			13.16			14.59
Common equity tier 1 capital ratio		11.78			11.79			13.36
Tier 1 leverage ratio		10.07			10.29			10.05
Total stockholders' equity to total assets		9.06			8.98			8.85
Tangible common equity to tangible assets ⁽¹⁾		7.54			7.45			8.18

ASSET QUALITY
Net charge-offs (recoveries) to average loans, before allowance for credit losses		(0.01)	%		(0.02)	%		(0.01)	%		(0.01)	%		(0.10)	%
Allowance for credit losses to loans, before allowance for credit losses		1.17			1.21			1.01
Nonperforming loans to loans, before allowance for credit losses		0.23			0.20			0.14
Nonperforming assets to total assets		0.21			0.20			0.15

* Annualized measure.

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

(2)	On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

HBT Financial, Inc.

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HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Consolidated Statements of Income


	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
	2023		2023		2022		2023		2022

INTEREST AND DIVIDEND INCOME	(dollars in thousands, except per share data)
Loans, including fees:
Taxable	$	47,149	$	42,159	$	27,843	$	89,308	$	54,649
Federally tax exempt		1,040		952		679		1,992		1,341
Securities:
Taxable		6,518		6,616		5,663		13,134		10,312
Federally tax exempt		1,162		1,197		1,138		2,359		2,178
Interest-bearing deposits in bank		781		739		420		1,520		579
Other interest and dividend income		118		116		14		234		33
Total interest and dividend income		56,768		51,779		35,757		108,547		69,092

INTEREST EXPENSE
Deposits		4,323		2,374		506		6,697		1,075
Securities sold under agreements to repurchase		34		38		8		72		17
Borrowings		2,189		1,297		1		3,486		2
Subordinated notes		469		470		469		939		939
Junior subordinated debentures issued to capital trusts		881		763		400		1,644		758
Total interest expense		7,896		4,942		1,384		12,838		2,791
Net interest income		48,872		46,837		34,373		95,709		66,301
PROVISION FOR CREDIT LOSSES		(230)		6,210		145		5,980		(439)
Net interest income after provision for credit losses		49,102		40,627		34,228		89,729		66,740

NONINTEREST INCOME
Card income		2,905		2,658		2,714		5,563		5,118
Wealth management fees		2,279		2,338		2,322		4,617		4,611
Service charges on deposit accounts		1,919		1,871		1,792		3,790		3,444
Mortgage servicing		1,254		1,099		661		2,353		1,319
Mortgage servicing rights fair value adjustment		141		(624)		366		(483)		2,095
Gains on sale of mortgage loans		373		276		326		649		913
Realized gains (losses) on sales of securities		—		(1,007)		—		(1,007)		—
Unrealized gains (losses) on equity securities		7		(22)		(153)		(15)		(340)
Gains (losses) on foreclosed assets		(97)		(10)		(7)		(107)		33
Gains (losses) on other assets		109		—		(43)		109		150
Income on bank owned life insurance		147		115		41		262		81
Other noninterest income		877		743		532		1,620		1,170
Total noninterest income		9,914		7,437		8,551		17,351		18,594

NONINTEREST EXPENSE
Salaries		16,660		19,411		12,936		36,071		25,737
Employee benefits		2,707		2,335		1,984		5,042		4,428
Occupancy of bank premises		2,785		2,102		1,741		4,887		3,801
Furniture and equipment		809		659		623		1,468		1,175
Data processing		2,883		4,323		1,990		7,206		3,643
Marketing and customer relations		1,359		836		1,205		2,195		2,056
Amortization of intangible assets		720		510		245		1,230		490
FDIC insurance		630		563		298		1,193		586
Loan collection and servicing		348		278		278		626		435
Foreclosed assets		97		61		31		158		163
Other noninterest expense		4,975		4,855		2,511		9,830		5,485
Total noninterest expense		33,973		35,933		23,842		69,906		47,999
INCOME BEFORE INCOME TAX EXPENSE		25,043		12,131		18,937		37,174		37,335
INCOME TAX EXPENSE		6,570		2,923		4,852		9,493		9,646
NET INCOME	$	18,473	$	9,208	$	14,085	$	27,681	$	27,689

EARNINGS PER SHARE - BASIC	$	0.58	$	0.30	$	0.49	$	0.88	$	0.96
EARNINGS PER SHARE - DILUTED	$	0.58	$	0.30	$	0.49	$	0.88	$	0.95
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING		31,980,133		30,977,204		28,891,202		31,481,439		28,938,634

HBT Financial, Inc.

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HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Consolidated Balance Sheets


	June 30,		March 31,		June 30,
	2023		2023		2022

	(dollars in thousands)
ASSETS
Cash and due from banks	$	28,044	$	35,244	$	25,478
Interest-bearing deposits with banks		81,764		141,868		134,553
Cash and cash equivalents		109,808		177,112		160,031

Interest-bearing time deposits with banks		—		249		—
Debt securities available-for-sale, at fair value		822,788		854,622		924,706
Debt securities held-to-maturity		533,231		536,429		548,236
Equity securities with readily determinable fair value		3,152		3,145		3,103
Equity securities with no readily determinable fair value		2,275		1,980		1,952
Restricted stock, at cost		11,345		4,991		2,813
Loans held for sale		8,829		5,130		5,312

Loans, before allowance for credit losses		3,244,655		3,195,540		2,451,826
Allowance for credit losses		(37,814)		(38,776)		(24,734)
Loans, net of allowance for credit losses		3,206,841		3,156,764		2,427,092

Bank owned life insurance		23,594		23,447		7,474
Bank premises and equipment, net		65,029		65,119		51,433
Bank premises held for sale		35		235		319
Foreclosed assets		3,080		3,356		2,891
Goodwill		59,876		59,876		29,322
Intangible assets, net		22,122		22,842		1,453
Mortgage servicing rights, at fair value		20,133		19,992		10,089
Investments in unconsolidated subsidiaries		1,614		1,614		1,165
Accrued interest receivable		19,900		20,301		14,263
Other assets		62,158		56,617		32,324
Total assets	$	4,975,810	$	5,013,821	$	4,223,978

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	1,125,823	$	1,218,888	$	1,028,790
Interest-bearing		3,038,700		3,091,633		2,673,196
Total deposits		4,164,523		4,310,521		3,701,986

Securities sold under agreements to repurchase		38,729		34,919		51,091
Federal Home Loan Bank advances		177,572		75,183		—
Subordinated notes		39,435		39,415		39,356
Junior subordinated debentures issued to capital trusts		52,760		52,746		37,747
Other liabilities		51,939		50,939		19,989
Total liabilities		4,524,958		4,563,723		3,850,169

Stockholders' Equity
Common stock		327		327		293
Surplus		294,875		294,441		222,087
Retained earnings		241,777		228,782		212,506
Accumulated other comprehensive income (loss)		(70,662)		(62,175)		(52,820)
Treasury stock at cost		(15,465)		(11,277)		(8,257)
Total stockholders’ equity		450,852		450,098		373,809
Total liabilities and stockholders’ equity	$	4,975,810	$	5,013,821	$	4,223,978

SHARE INFORMATION
Shares of common stock outstanding		31,865,868		32,095,370		28,831,197

HBT Financial, Inc.

Page 9 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	June 30,		March 31,		June 30,
	2023		2023		2022

	(dollars in thousands)
LOANS
Commercial and industrial	$	385,768	$	333,013	$	249,839
Commercial real estate - owner occupied		303,522		317,103		228,997
Commercial real estate - non-owner occupied		882,598		854,024		656,093
Construction and land development		335,262		389,142		332,041
Multi-family		375,536		362,672		269,452
One-to-four family residential		482,442		482,732		325,047
Agricultural and farmland		259,858		243,357		230,370
Municipal, consumer, and other		219,669		213,497		159,987
Loans, before allowance for credit losses	$	3,244,655	$	3,195,540	$	2,451,826

PPP LOANS (included above)
Commercial and industrial	$	22	$	25	$	2,823
Agricultural and farmland		—		—		9
Total PPP Loans	$	22	$	25	$	2,832


	June 30,		March 31,		June 30,
	2023		2023		2022

	(dollars in thousands)
DEPOSITS
Noninterest-bearing	$	1,125,823	$	1,218,888	$	1,028,790
Interest-bearing demand		1,181,187		1,270,454		1,162,292
Money market		730,652		662,088		581,058
Savings		657,506		738,719		654,953
Time		469,355		420,372		274,893
Total deposits	$	4,164,523	$	4,310,521	$	3,701,986

HBT Financial, Inc.

Page 10 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	Three Months Ended
	June 30, 2023						March 31, 2023						June 30, 2022
	Average						Average						Average
	Balance		Interest		Yield/Cost *		Balance		Interest		Yield/Cost *		Balance		Interest		Yield/Cost *

	(dollars in thousands)
ASSETS
Loans	$	3,238,774	$	48,189	5.97	%	$	3,012,320	$	43,111	5.80	%	$	2,467,851	$	28,522	4.64	%
Securities		1,384,180		7,680	2.23			1,411,613		7,813	2.24			1,422,096		6,801	1.92
Deposits with banks		84,366		781	3.71			92,363		739	3.24			240,692		420	0.70
Other		8,577		118	5.52			7,425		116	6.33			2,809		14	2.07
Total interest-earning assets		4,715,897	$	56,768	4.83	%		4,523,721	$	51,779	4.64	%		4,133,448	$	35,757	3.47	%
Allowance for credit losses		(39,484)						(33,301)						(24,579)
Noninterest-earning assets		299,622						274,870						177,433
Total assets	$	4,976,035					$	4,765,290					$	4,286,302

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,224,285	$	683	0.22	%	$	1,230,644	$	458	0.15	%	$	1,159,077	$	144	0.05	%
Money market		675,530		1,516	0.90			634,608		935	0.60			582,016		110	0.08
Savings		687,014		189	0.11			709,862		178	0.10			661,661		52	0.03
Time		447,146		1,935	1.74			356,779		803	0.91			284,880		200	0.28
Total interest-bearing deposits		3,033,975		4,323	0.57			2,931,893		2,374	0.33			2,687,634		506	0.08
Securities sold under agreements to repurchase		34,170		34	0.40			39,619		38	0.38			51,057		8	0.07
Borrowings		173,040		2,189	5.07			113,896		1,297	4.62			440		1	1.34
Subordinated notes		39,424		469	4.78			39,403		470	4.83			39,346		469	4.79
Junior subordinated debentures issued to capital trusts		52,752		881	6.70			47,586		763	6.50			37,738		400	4.26
Total interest-bearing liabilities		3,333,361	$	7,896	0.95	%		3,172,397	$	4,942	0.63	%		2,816,215	$	1,384	0.20	%
Noninterest-bearing deposits		1,145,089						1,121,365						1,072,883
Noninterest-bearing liabilities		43,080						49,316						18,673
Total liabilities		4,521,530						4,343,078						3,907,771
Stockholders' Equity		454,505						422,212						378,531
Total liabilities and stockholders’ equity	$	4,976,035					$	4,765,290					$	4,286,302

Net interest income/Net interest margin ⁽¹⁾			$	48,872	4.16	%			$	46,837	4.20	%			$	34,373	3.34	%
Tax-equivalent adjustment ⁽²⁾				715	0.06					702	0.06					598	0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis)^{(2) (3)}			$	49,587	4.22	%			$	47,539	4.26	%			$	34,971	3.39	%
Net interest rate spread ⁽⁴⁾					3.88	%					4.01	%					3.27	%
Net interest-earning assets ⁽⁵⁾	$	1,382,536					$	1,351,324					$	1,317,233
Ratio of interest-earning assets to interest-bearing liabilities		1.41						1.43						1.47
Cost of total deposits					0.41	%					0.24	%					0.05	%
Cost of funds					0.71						0.47						0.14

* Annualized measure.

(1)	Net interest margin represents net interest income divided by average total interest-earning assets.

(2)	On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.

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

(4)	Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(5)	Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

HBT Financial, Inc.

Page 11 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	Six Months Ended
	June 30, 2023						June 30, 2022
	Average						Average
	Balance		Interest		Yield/Cost *		Balance		Interest		Yield/Cost *

	(dollars in thousands)
ASSETS
Loans	$	3,126,173	$	91,300	5.89	%	$	2,487,320	$	55,990	4.54	%
Securities		1,397,821		15,493	2.24			1,372,284		12,490	1.84
Deposits with banks		88,343		1,520	3.47			305,053		579	0.38
Other		8,004		234	5.89			2,775		33	2.43
Total interest-earning assets		4,620,341	$	108,547	4.74	%		4,167,432	$	69,092	3.34	%
Allowance for credit losses		(36,410)						(24,340)
Noninterest-earning assets		287,314						171,624
Total assets	$	4,871,245					$	4,314,716

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,227,447	$	1,141	0.19	%	$	1,151,495	$	286	0.05	%
Money market		655,182		2,451	0.75			590,098		231	0.08
Savings		698,375		367	0.11			655,645		102	0.03
Time		402,212		2,738	1.37			297,706		456	0.31
Total interest-bearing deposits		2,983,216		6,697	0.45			2,694,944		1,075	0.08
Securities sold under agreements to repurchase		36,879		72	0.39			52,050		17	0.07
Borrowings		143,632		3,486	4.89			470		2	1.01
Subordinated notes		39,414		939	4.81			39,335		939	4.82
Junior subordinated debentures issued to capital trusts		50,183		1,644	6.61			37,730		758	4.05
Total interest-bearing liabilities		3,253,324	$	12,838	0.80	%		2,824,529	$	2,791	0.20	%
Noninterest-bearing deposits		1,133,292						1,075,387
Noninterest-bearing liabilities		46,181						22,466
Total liabilities		4,432,797						3,922,382
Stockholders' Equity		438,448						392,334
Total liabilities and stockholders’ equity	$	4,871,245						4,314,716

Net interest income/Net interest margin ⁽¹⁾			$	95,709	4.18	%			$	66,301	3.21	%
Tax-equivalent adjustment ⁽²⁾				1,417	0.06					1,127	0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) ^{(2) (3)}			$	97,126	4.24	%			$	67,428	3.26	%
Net interest rate spread ⁽⁴⁾					3.94	%					3.14	%
Net interest-earning assets ⁽⁵⁾	$	1,367,017					$	1,342,903
Ratio of interest-earning assets to interest-bearing liabilities		1.42						1.48
Cost of total deposits					0.33	%					0.06	%
Cost of funds					0.59						0.14

* Annualized measure.

(1)	Net interest margin represents net interest income divided by average total interest-earning assets.

(2)	On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.

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

(4)	Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(5)	Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

HBT Financial, Inc.

Page 12 of 15

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	June 30,			March 31,			June 30,
	2023			2023			2022

	(dollars in thousands)
NONPERFORMING ASSETS
Nonaccrual	$	7,534		$	6,508		$	3,248
Past due 90 days or more, still accruing ⁽¹⁾		1			10			182
Total nonperforming loans		7,535			6,518			3,430
Foreclosed assets		3,080			3,356			2,891
Total nonperforming assets	$	10,615		$	9,874		$	6,321

Allowance for credit losses	$	37,814		$	38,776		$	24,734
Loans, before allowance for credit losses		3,244,655			3,195,540			2,451,826

CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses		1.17	%		1.21	%		1.01	%
Allowance for credit losses to nonaccrual loans		501.91			595.82			761.51
Allowance for credit losses to nonperforming loans		501.84			594.91			721.11
Nonaccrual loans to loans, before allowance for credit losses		0.23			0.20			0.13
Nonperforming loans to loans, before allowance for credit losses		0.23			0.20			0.14
Nonperforming assets to total assets		0.21			0.20			0.15
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets		0.33			0.31			0.26

(1)	Prior to 2023, excludes loans acquired with deteriorated credit quality that are past due 90 or more days and accruing. Such loans totaled $23 thousand as of June 30, 2022.


	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2023			2023			2022			2023			2022

ALLOWANCE FOR CREDIT LOSSES ON LOANS	(dollars in thousands)
Beginning balance	$	38,776		$	25,333		$	24,508		$	25,333		$	23,936
Adoption of ASC 326		—			6,983			—			6,983			—
PCD allowance established in acquisition		—			1,247			—			1,247			—
Provision for credit losses		(1,080)			5,101			145			4,021			(439)
Charge-offs		(179)			(142)			(159)			(321)			(293)
Recoveries		297			254			240			551			1,530
Ending balance	$	37,814		$	38,776		$	24,734		$	37,814		$	24,734

Net charge-offs (recoveries)	$	(118)		$	(112)		$	(81)		$	(230)		$	(1,237)
Average loans, before allowance for credit losses		3,238,774			3,012,320			2,467,851			3,126,173			2,487,320

Net charge-offs (recoveries) to average loans, before allowance for credit losses *		(0.01)	%		(0.02)	%		(0.01)	%		(0.01)	%		(0.10)	%

* Annualized measure.


	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
	2023		2023		2022		2023		2022

PROVISION FOR CREDIT LOSSES	(dollars in thousands)
Loans ⁽¹⁾	$	(1,080)	$	5,101	$	145	$	4,021	$	(439)
Unfunded lending-related commitments ⁽¹⁾		650		509		—		1,159		—
Debt securities		200		600		—		800		—
Total provision for credit losses	$	(230)	$	6,210	$	145	$	5,980	$	(439)

(1)	Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.

HBT Financial, Inc.

Page 13 of 15

Reconciliation of Non-GAAP Financial Measures –

Adjusted Net Income and Adjusted Return on Average Assets


	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2023			2023			2022			2023			2022

	(dollars in thousands)
Net income	$	18,473		$	9,208		$	14,085		$	27,681		$	27,689
Adjustments:
Acquisition expenses ⁽¹⁾		(627)			(13,064)			—			(13,691)			—
Gains (losses) on sales of closed branch premises		75			—			(18)			75			179
Realized gains (losses) on sales of securities		—			(1,007)			—			(1,007)			—
Mortgage servicing rights fair value adjustment		141			(624)			366			(483)			2,095
Total adjustments		(411)			(14,695)			348			(15,106)			2,274
Tax effect of adjustments		112			4,044			(99)			4,156			(648)
Less adjustments, after tax effect		(299)			(10,651)			249			(10,950)			1,626
Adjusted net income	$	18,772		$	19,859		$	13,836		$	38,631		$	26,063

Average assets	$	4,976,035		$	4,765,290		$	4,286,302		$	4,871,245		$	4,314,716

Return on average assets *		1.49	%		0.78	%		1.32	%		1.15	%		1.29	%
Adjusted return on average assets *		1.51			1.69			1.29			1.60			1.22

* Annualized measure.

(1)	Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.

Reconciliation of Non-GAAP Financial Measures –

Adjusted Earnings Per Share


	Three Months Ended						Six Months Ended
	June 30,		March 31,		June 30,		June 30,
	2023		2023		2022		2023		2022

	(dollars in thousands, except per share data)
Numerator:
Net income	$	18,473	$	9,208	$	14,085	$	27,681	$	27,689
Earnings allocated to participating securities ⁽¹⁾		(11)		(5)		(17)		(16)		(34)
Numerator for earnings per share - basic and diluted	$	18,462	$	9,203	$	14,068	$	27,665	$	27,655

Adjusted net income	$	18,772	$	19,859	$	13,836	$	38,631	$	26,063
Earnings allocated to participating securities ⁽¹⁾		(10)		(13)		(17)		(23)		(32)
Numerator for adjusted earnings per share - basic and diluted	$	18,762	$	19,846	$	13,819	$	38,608	$	26,031

Denominator:
Weighted average common shares outstanding		31,980,133		30,977,204		28,891,202		31,481,439		28,938,634
Dilutive effect of outstanding restricted stock units		99,850		69,947		53,674		84,981		48,688
Weighted average common shares outstanding, including all dilutive potential shares		32,079,983		31,047,151		28,944,876		31,566,420		28,987,322

Earnings per share - Basic	$	0.58	$	0.30	$	0.49	$	0.88	$	0.96
Earnings per share - Diluted	$	0.58	$	0.30	$	0.49	$	0.88	$	0.95

Adjusted earnings per share - Basic	$	0.59	$	0.64	$	0.48	$	1.23	$	0.90
Adjusted earnings per share - Diluted	$	0.58	$	0.64	$	0.48	$	1.22	$	0.90

(1)

The Company has granted certain restricted stock units that contain non-forfeitable rights to dividend equivalents. Such restricted stock units are considered participating securities. As such, we have included these restricted stock units in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

HBT Financial, Inc.

Page 14 of 15

Reconciliation of Non-GAAP Financial Measures –

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


	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2023			2023			2022			2023			2022

	(dollars in thousands)
Net interest income (tax equivalent basis)
Net interest income	$	48,872		$	46,837		$	34,373		$	95,709		$	66,301
Tax-equivalent adjustment ⁽¹⁾		715			702			598			1,417			1,127
Net interest income (tax equivalent basis) ⁽¹⁾	$	49,587		$	47,539		$	34,971		$	97,126		$	67,428

Net interest margin (tax equivalent basis)
Net interest margin *		4.16	%		4.20	%		3.34	%		4.18	%		3.21	%
Tax-equivalent adjustment * ⁽¹⁾		0.06			0.06			0.05			0.06			0.05
Net interest margin (tax equivalent basis) * ⁽¹⁾		4.22	%		4.26	%		3.39	%		4.24	%		3.26	%

Average interest-earning assets	$	4,715,897		$	4,523,721		$	4,133,448		$	4,620,341		$	4,167,432

* 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									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2023			2023			2022			2023			2022

	(dollars in thousands)
Efficiency ratio (tax equivalent basis)
Total noninterest expense	$	33,973		$	35,933		$	23,842		$	69,906		$	47,999
Less: amortization of intangible assets		720			510			245			1,230			490
Adjusted noninterest expense	$	33,253		$	35,423		$	23,597		$	68,676		$	47,509

Net interest income	$	48,872		$	46,837		$	34,373		$	95,709		$	66,301
Total noninterest income		9,914			7,437			8,551			17,351			18,594
Operating revenue		58,786			54,274			42,924			113,060			84,895
Tax-equivalent adjustment ⁽¹⁾		715			702			598			1,417			1,127
Operating revenue (tax equivalent basis) ⁽¹⁾	$	59,501		$	54,976		$	43,522		$	114,477		$	86,022

Efficiency ratio		56.57	%		65.27	%		54.97	%		60.74	%		55.96	%
Efficiency ratio (tax equivalent basis) ⁽¹⁾		55.89			64.43			54.22			59.99			55.23

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

HBT Financial, Inc.

Page 15 of 15

Reconciliation of Non-GAAP Financial Measures –

Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share


	June 30,			March 31,			June 30,
	2023			2023			2022

	(dollars in thousands, except per share data)
Tangible common equity
Total stockholders' equity	$	450,852		$	450,098		$	373,809
Less: Goodwill		59,876			59,876			29,322
Less: Intangible assets, net		22,122			22,842			1,453
Tangible common equity	$	368,854		$	367,380		$	343,034

Tangible assets
Total assets	$	4,975,810		$	5,013,821		$	4,223,978
Less: Goodwill		59,876			59,876			29,322
Less: Intangible assets, net		22,122			22,842			1,453
Tangible assets	$	4,893,812		$	4,931,103		$	4,193,203

Total stockholders' equity to total assets		9.06	%		8.98	%		8.85	%
Tangible common equity to tangible assets		7.54			7.45			8.18

Shares of common stock outstanding		31,865,868			32,095,370			28,831,197

Book value per share	$	14.15		$	14.02		$	12.97
Tangible book value per share		11.58			11.45			11.90

Reconciliation of Non-GAAP Financial Measures –

Return on Average Tangible Common Equity,

Adjusted Return on Average Stockholders' Equity and Adjusted Return on Tangible Common Equity


	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2023			2023			2022			2023			2022

	(dollars in thousands)
Average tangible common equity
Total stockholders' equity	$	454,505		$	422,212		$	378,531		$	438,448		$	392,334
Less: Goodwill		59,876			49,352			29,322			54,643			29,322
Less: Intangible assets, net		22,520			15,635			1,597			19,097			1,720
Average tangible common equity	$	372,109		$	357,225		$	347,612		$	364,708		$	361,292

Net income	$	18,473		$	9,208		$	14,085		$	27,681		$	27,689
Adjusted net income		18,772			19,859			13,836			38,631			26,063

Return on average stockholders' equity *		16.30	%		8.84	%		14.92	%		12.73	%		14.23	%
Return on average tangible common equity *		19.91			10.45			16.25			15.31			15.45

Adjusted return on average stockholders' equity *		16.57	%		19.08	%		14.66	%		17.77	%		13.40	%
Adjusted return on average tangible common equity *		20.23			22.55			15.96			21.36			14.55

* Annualized measure.