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HBT Financial, Inc. Announces Third Quarter 2021 Financial Results
来源: Nasdaq GlobeNewswire / 25 10月 2021 07:05:01 America/New_York
Third Quarter Highlights
- Net income of $13.7 million, or $0.50 per diluted share; return on average assets (ROAA) of 1.37%; return on average stockholders' equity (ROAE) of 14.29%; and return on average tangible common equity (ROATCE)(1) of 15.32%
- Adjusted net income(1) of $14.5 million; or $0.53 per diluted share; adjusted ROAA(1) of 1.45%; adjusted ROAE(1) of 15.08%; and adjusted ROATCE(1) of 16.18%
(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
BLOOMINGTON, Ill., Oct. 25, 2021 (GLOBE NEWSWIRE) -- HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company and NXT Bank, today reported net income of $13.7 million, or $0.50 diluted earnings per share, for the third quarter of 2021. This compares to net income of $13.7 million, or $0.50 diluted earnings per share, for the second quarter of 2021, and net income of $10.6 million, or $0.38 diluted earnings per share, for the third quarter of 2020.
Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “We continued to deliver strong financial results in the third quarter driven by a higher level of revenue, disciplined expense management, and healthy credit metrics. We are beginning to see stronger loan demand in our legacy markets. We also benefited from our acquisition of NXT Bancorporation by buying participations in some of NXT Bank’s third quarter loan production prior to the closing of the acquisition. As a result, our total loan balances increased 3% during the third quarter, excluding PPP loans. With ample liquidity and capital levels, strong asset quality, and a growing low-cost deposit base, we remain well positioned to support our customers and communities as economic conditions and loan demand may continue to strengthen.”
“The completion of our acquisition of NXT Bancorporation on October 1, 2021 is a significant milestone for the Company. In the near-term, we will have more opportunities to bring back loans they have previously participated out to other banks onto our balance sheet and redeploy more of our excess liquidity into higher-yielding earning assets. Over the longer-term, we believe the expansion of our franchise into Iowa and the addition of a talented group of bankers from NXT will positively impact the level of organic growth that we generate. We are also seeing better opportunities to attract high quality commercial lenders that we expect will further strengthen our business development capabilities, improving our ability to capitalize on disruption in the Chicago banking market created by merger activity,” said Mr. Drake.
Adjusted Net Income
In addition to reporting GAAP results, the Company believes adjusted net income and adjusted earnings per share, which adjust for the additional C Corp equivalent tax expense for periods prior to October 11, 2019, acquisition expenses, branch closure expenses, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights (“MSR”) fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $14.5 million, or $0.53 adjusted diluted earnings per share, for the third quarter of 2021. This compares to adjusted net income of $14.2 million, or $0.52 adjusted diluted earnings per share, for the second quarter of 2021, and adjusted net income of $10.8 million, or $0.39 adjusted diluted earnings per share, for the third quarter of 2020 (see "Reconciliation of Non-GAAP Financial Measures" tables).
Net Interest Income and Net Interest Margin
Net interest income for the third quarter of 2021 was $30.7 million, an increase of 3.4% from $29.7 million for the second quarter of 2021. The increase was primarily attributable to an increase in PPP loan fees recognized as loan interest income which totaled $3.0 million during the third quarter of 2021 and $2.4 million during the second quarter of 2021.
Relative to the third quarter of 2020, net interest income increased $1.8 million, or 6.4%. The increase was primarily attributable to an increase in PPP loan fees recognized as loan interest income which totaled $0.9 million during the third quarter of 2020.
Net interest margin for the third quarter of 2021 was 3.18%, compared to 3.14% for the second quarter of 2021. The increase was primarily attributable to the recognition of PPP loan fees. The contribution of PPP loan fees to net interest margin was 31 basis points during the third quarter of 2021 and 25 basis points during the second quarter of 2021.
Relative to the third quarter of 2020, net interest margin decreased from 3.39%. The decrease was primarily due to a decline in the average yield on earning assets and increased balances being held in cash and lower-yielding securities.
Noninterest Income
Noninterest income for the third quarter of 2021 was $8.4 million, a decrease of 4.4% from $8.8 million for the second quarter of 2021. The decrease was primarily attributable to impairment losses of $0.6 million related to the branches closed during the third quarter of 2021 pursuant to our branch rationalization plan. Additionally, gains on sale of mortgage loans decreased $0.3 million due to a lower level of mortgage refinancing activity. Partially offsetting these declines were a positive $40 thousand mortgage servicing rights (“MSR”) fair value adjustment during the third quarter of 2021, compared to a negative $0.3 million MSR fair value adjustment in the second quarter of 2021, and a $0.3 million increase in service charges on deposit accounts.
Relative to the third quarter of 2020, noninterest income decreased 16.5% from $10.0 million, primarily attributable to a $1.9 million decrease in gains on sale of mortgage loans due to a lower level of mortgage refinancing activity and the $0.6 million of impairment losses related to the branches closed pursuant to our branch rationalization plan. Partially offsetting this decline was an increase in wealth management fees and card income. Wealth management fees increased $0.4 million as a result of higher values of assets under management during the third quarter of 2021 relative to the third quarter of 2020. Card income increased $0.4 million as a result of increased card transaction volume driven by the full reopening of Illinois following COVID-19 prevention measures.
Noninterest Expense
Noninterest expense for the third quarter of 2021 was $22.2 million, nearly unchanged from the second quarter of 2021. A decrease in salaries expense, due to a lower employee count, was mostly offset by increases in occupancy of bank premise and loan collection and servicing expenses.
Relative to the third quarter of 2020, noninterest expense decreased 1.4% from $22.5 million. The decline was primarily attributable to lower salaries and employee benefits expenses, as a result of lower employee count relative to the third quarter of 2020. Partially offsetting these improvements were higher marketing and data processing expenses.
NXT Bancorporation, Inc. Acquisition
On October 1, 2021, HBT completed its previously announced acquisition of NXT Bancorporation, Inc. (NXT), the holding company for NXT Bank. The acquisition expands HBT’s footprint into Iowa. Acquisition-related expenses were $0.4 million during the third quarter of 2021 and $0.2 million during the second quarter of 2021. As of September 30, 2021, NXT had $232 million in total assets, $196 million in total loans, and $181 million in total deposits. NXT’s results are not reflected in HBT’s results for the third quarter of 2021. The merger and system conversion of NXT Bank and Heartland Bank and Trust is currently scheduled for December 3, 2021.
Branch Rationalization Plan
In April 2021, the Company made plans to close or consolidate six branches. One branch was consolidated during the second quarter of 2021, and the remaining five branches were closed during the third quarter of 2021. Branch closure costs were $0.6 million, consisting almost entirely of impairment losses, during the third quarter of 2021, and $0.1 million, primarily salaries expense, during the second quarter of 2021. The Company estimates annual pre-tax cost savings, net of associated revenue impacts, related to the branch rationalization plan to be approximately $1.1 million.
Loan Portfolio
Total loans outstanding, before allowance for loan losses, were $2.15 billion at September 30, 2021, compared with $2.15 billion at June 30, 2021 and $2.28 billion at September 30, 2020. A $65.7 million decrease in PPP loans was mostly offset by increases in commercial real estate – non-owner occupied and construction & land development loans, with $39.0 million of the increase attributed to new loans funded in partnership with NXT Bank ahead of the acquisition.
Deposits
Total deposits were $3.42 billion at September 30, 2021, compared with $3.42 billion at June 30, 2021 and $3.02 billion at September 30, 2020. Total deposits remained almost unchanged from June 30, 2021 to September 30, 2021, following the end of certain federal economic stimulus programs, such as PPP loans and direct payments to individuals, which had driven deposit growth since the first quarter of 2020.
Asset Quality
Nonperforming loans totaled $5.5 million, or 0.26% of total loans, at September 30, 2021, compared with $7.4 million, or 0.34% of total loans, at June 30, 2021, and $15.2 million, or 0.67% of total loans, at September 30, 2020. The $1.9 million decrease in nonperforming loans from June 30, 2021 was primarily attributable to the payoff of one relationship and a pay down on another relationship which together totaled $1.6 million at June 30, 2021. The $9.7 million reduction in nonperforming loans from September 30, 2020 was primarily attributable to the return to accrual status of one agricultural credit and the transfer of one loan to foreclosed assets which together totaled $8.4 million at September 30, 2020.
The Company recorded a negative provision for loan losses of $1.7 million for the third quarter of 2021, compared to a negative provision for loan losses of $2.2 million for the second quarter of 2021. The negative provision was primarily due to a $0.9 million decrease in specific reserves on loans individually evaluated for impairment. Additionally, improvements in qualitative factors resulted in a $0.7 million decrease in required reserve, primarily reflecting the shrinking impact of the COVID-19 pandemic on our borrowers.
Net recoveries for the third quarter of 2021 were $21 thousand, or less than 1 basis point of average loans on an annualized basis, compared to net charge-offs of $90 thousand, or 0.02% of average loans on an annualized basis, for the second quarter of 2021, and net charge-offs of $0.2 million, or 0.04% of average loans on an annualized basis, for the third quarter of 2020.
The Company’s allowance for loan losses was 1.16% of total loans and 449.73% of nonperforming loans at September 30, 2021, compared with 1.23% of total loans and 357.91% of nonperforming loans at June 30, 2021.
Capital
At September 30, 2021, the Company exceeded all regulatory capital requirements under Basel III and was considered to be “well-capitalized,” as summarized in the following table:
Well Capitalized September 30, Regulatory 2021 Requirements Total capital to risk-weighted assets 18.15 % 10.00 % Tier 1 capital to risk-weighted assets 15.56 % 8.00 % Common equity tier 1 capital ratio 14.08 % 6.50 % Tier 1 leverage ratio 9.83 % 5.00 % Total stockholders' equity to total assets 9.59 % N/A Tangible common equity to tangible assets (1) 9.00 % N/A (1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures. Stock Repurchase Program
During the third quarter of 2021, the Company repurchased 20,625 shares of its common stock at a weighted average price of $16.66 under its stock repurchase program. Purchases were conducted in accordance with Rule 10b-18 and in compliance with Regulation M under the Securities Exchange Act of 1934, as amended. The Company’s Board of Directors authorized the repurchase of up to $15 million of its common stock under its stock repurchase program in effect until December 31, 2021. As of September 30, 2021, the Company had $12.7 million remaining under the current stock repurchase authorization.
About HBT Financial, Inc.
HBT Financial, Inc. is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company and NXT Bank. HBT provides a comprehensive suite of business, commercial, wealth management, and retail banking products and services to individuals, businesses and municipal entities throughout Central and Northeastern Illinois and Eastern Iowa through 61 branches. As of September 30, 2021, HBT had total assets of $3.9 billion, total loans of $2.1 billion, and total deposits of $3.4 billion. HBT is a longstanding Central Illinois company, with banking roots that can be traced back to 1920.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), originated loans and acquired loans and any ratios derived therefrom, efficiency ratio (tax-equivalent basis), tangible common equity to tangible assets, tangible book value per share, adjusted net income, adjusted return on average assets, adjusted return on average stockholders' equity, and adjusted return on average tangible common equity. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the "Reconciliation of Non-GAAP Financial Measures" tables.
Forward-Looking Statements
Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s expected benefits, synergies, results and growth resulting from the acquisition of NXT and NXT Bank, and the Company’s plans, objectives, future performance, goals, future earnings levels and future loan growth, including as a result of expected improvement in economic conditions with respect to COVID-19. These statements are subject to many risks and uncertainties, that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: the timing, outcome and results of integrating the operations of NXT into those of HBT; the possibility that expected benefits, synergies and results from the acquisition are delayed or not achieved; the effects of the merger on HBT’s future financial condition, results of operations, strategy and plans; potential adverse reactions or changes to customer or employee relationships resulting from the completion of the transaction; the diversion of management time on integration-related issues; the severity, magnitude and duration of the COVID-19 pandemic; the direct and indirect impacts of the COVID-19 pandemic and governmental responses to the pandemic on our operations and our customers’ businesses; the continued disruption or worsening of global, national, state and local economies associated with the COVID-19 pandemic, including in connection with inflationary pressures and supply chain constraints, which could affect our capital levels and earnings, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses; our asset quality and any loan charge-offs; changes in interest rates and general economic, business and political conditions in the United States generally or in Illinois and Iowa in particular, including in the financial markets; changes in business plans as circumstances warrant; risks relating to other acquisitions; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe" or "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
CONTACT:
Matthew Keating
HBTIR@hbtbank.com
(310) 622-8230HBT Financial, Inc. Consolidated Financial Summary Consolidated Statements of Income Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2021 2021 2020 2021 2020 INTEREST AND DIVIDEND INCOME (dollars in thousands, except per share data) Loans, including fees: Taxable $ 25,604 $ 25,278 $ 25,118 $ 76,016 $ 77,396 Federally tax exempt 572 540 542 1,722 1,748 Securities: Taxable 4,632 4,058 3,266 12,323 9,772 Federally tax exempt 1,103 1,144 1,233 3,383 3,488 Interest-bearing deposits in bank 190 115 65 385 873 Other interest and dividend income 14 12 14 39 42 Total interest and dividend income 32,115 31,147 30,238 93,868 93,319 INTEREST EXPENSE Deposits 564 613 843 1,821 3,480 Securities sold under agreements to repurchase 8 8 9 23 40 Borrowings 1 — 1 2 2 Subordinated notes 470 469 147 1,409 147 Junior subordinated debentures issued to capital trusts 357 357 367 1,069 1,209 Total interest expense 1,400 1,447 1,367 4,324 4,878 Net interest income 30,715 29,700 28,871 89,544 88,441 PROVISION FOR LOAN LOSSES (1,667 ) (2,162 ) 2,174 (7,234 ) 10,102 Net interest income after provision for loan losses 32,382 31,862 26,697 96,778 78,339 NONINTEREST INCOME Card income 2,509 2,449 2,146 7,216 5,936 Service charges on deposit accounts 1,677 1,390 1,493 4,364 4,460 Wealth management fees 2,036 2,005 1,646 6,013 4,967 Mortgage servicing 699 711 724 2,095 2,175 Mortgage servicing rights fair value adjustment 40 (310 ) (268 ) 1,425 (2,947 ) Gains on sale of mortgage loans 1,257 1,562 3,184 4,919 5,855 Gains (losses) on securities 28 6 (2 ) 74 3 Gains (losses) on foreclosed assets (14 ) 216 27 126 120 Gains (losses) on other assets (672 ) (48 ) 1 (719 ) (71 ) Other noninterest income 832 793 1,101 2,461 2,866 Total noninterest income 8,392 8,774 10,052 27,974 23,364 NONINTEREST EXPENSE Salaries 11,988 12,275 12,595 36,859 38,023 Employee benefits 1,500 1,455 1,666 4,677 6,555 Occupancy of bank premises 1,610 1,463 1,609 5,011 5,079 Furniture and equipment 657 603 679 1,883 1,891 Data processing 1,767 1,721 1,583 5,176 4,841 Marketing and customer relations 883 843 690 2,291 2,551 Amortization of intangible assets 252 258 305 799 927 FDIC insurance 279 244 222 763 476 Loan collection and servicing 400 333 450 1,098 1,292 Foreclosed assets 242 319 226 704 403 Other noninterest expense 2,589 2,640 2,460 7,604 7,253 Total noninterest expense 22,167 22,154 22,485 66,865 69,291 INCOME BEFORE INCOME TAX EXPENSE 18,607 18,482 14,264 57,887 32,412 INCOME TAX EXPENSE 4,892 4,765 3,701 15,210 8,209 NET INCOME $ 13,715 $ 13,717 $ 10,563 $ 42,677 $ 24,203 EARNINGS PER SHARE - BASIC $ 0.50 $ 0.50 $ 0.38 $ 1.56 $ 0.88 EARNINGS PER SHARE - DILUTED $ 0.50 $ 0.50 $ 0.38 $ 1.56 $ 0.88 WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING 27,340,926 27,362,579 27,457,306 27,377,809 27,457,306 HBT Financial, Inc. Consolidated Financial Summary Consolidated Balance Sheets September 30, June 30, September 30, 2021 2021 2020 (dollars in thousands) ASSETS Cash and due from banks $ 36,508 $ 47,861 $ 22,347 Interest-bearing deposits with banks 435,421 497,742 214,377 Cash and cash equivalents 471,929 545,603 236,724 Debt securities available-for-sale, at fair value 896,218 836,267 814,798 Debt securities held-to-maturity 318,730 309,132 74,510 Equity securities with readily determinable fair value 3,366 3,338 3,262 Equity securities with no readily determinable fair value 1,867 1,552 1,552 Restricted stock, at cost 2,739 2,739 2,498 Loans held for sale 8,582 5,951 23,723 Loans, before allowance for loan losses 2,147,812 2,152,119 2,279,639 Allowance for loan losses (24,861 ) (26,507 ) (31,654 ) Loans, net of allowance for loan losses 2,122,951 2,125,612 2,247,985 Bank premises and equipment, net 49,337 51,900 53,271 Bank premises held for sale 1,462 121 121 Foreclosed assets 7,315 7,757 3,857 Goodwill 23,620 23,620 23,620 Core deposit intangible assets, net 1,999 2,251 3,103 Mortgage servicing rights, at fair value 7,359 7,319 5,571 Investments in unconsolidated subsidiaries 1,165 1,165 1,165 Accrued interest receivable 13,376 12,785 13,820 Other assets 16,211 16,565 25,643 Total assets $ 3,948,226 $ 3,953,677 $ 3,535,223 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Deposits: Noninterest-bearing $ 1,003,723 $ 1,011,481 $ 850,306 Interest-bearing 2,415,833 2,413,153 2,166,355 Total deposits 3,419,556 3,424,634 3,016,661 Securities sold under agreements to repurchase 47,957 46,756 45,438 Subordinated notes 39,297 39,277 39,218 Junior subordinated debentures issued to capital trusts 37,698 37,681 37,632 Other liabilities 24,897 32,135 40,980 Total liabilities 3,569,405 3,580,483 3,179,929 Stockholders' Equity Common stock 275 275 275 Surplus 191,413 191,185 190,787 Retained earnings 184,919 175,328 146,101 Accumulated other comprehensive income 4,537 8,386 18,131 Treasury stock at cost (2,323 ) (1,980 ) — Total stockholders’ equity 378,821 373,194 355,294 Total liabilities and stockholders’ equity $ 3,948,226 $ 3,953,677 $ 3,535,223 SHARE INFORMATION Shares of common stock outstanding 27,334,428 27,355,053 27,457,306 HBT Financial, Inc. Consolidated Financial Summary September 30, June 30, September 30, 2021 2021 2020 (dollars in thousands) LOANS Commercial and industrial $ 261,763 $ 321,352 $ 389,231 Agricultural and farmland 229,718 231,527 235,597 Commercial real estate - owner occupied 203,096 212,597 225,345 Commercial real estate - non-owner occupied 579,860 531,803 532,454 Multi-family 215,245 212,079 199,441 Construction and land development 232,291 204,619 265,758 One-to-four family residential 294,612 302,888 308,365 Municipal, consumer, and other 131,227 135,254 123,448 Loans, before allowance for loan losses $ 2,147,812 $ 2,152,119 $ 2,279,639 PPP LOANS (included above) Commercial and industrial $ 55,374 $ 115,538 $ 168,466 Agricultural and farmland 3,462 8,711 4,179 Municipal, consumer, and other 985 1,273 7,095 Total PPP Loans $ 59,821 $ 125,522 $ 179,740 September 30, June 30, September 30, 2021 2021 2020 (dollars in thousands) DEPOSITS Noninterest-bearing $ 1,003,723 $ 1,011,481 $ 850,306 Interest-bearing demand 1,013,678 1,023,565 885,719 Money market 519,343 506,880 475,047 Savings 611,050 603,849 497,682 Time 271,762 278,859 307,907 Total deposits $ 3,419,556 $ 3,424,634 $ 3,016,661 HBT Financial, Inc. Consolidated Financial Summary Three Months Ended September 30, 2021 June 30, 2021 September 30, 2020 Average
Yield/Cost *Average
Yield/Cost *Average
Yield/Cost *Balance Interest Balance Interest Balance Interest (dollars in thousands) ASSETS Loans $ 2,135,476 $ 26,176 4.86 % $ 2,234,388 $ 25,818 4.63 % $ 2,277,826 $ 25,660 4.48 % Securities 1,180,513 5,735 1.93 1,121,104 5,202 1.86 831,120 4,499 2.15 Deposits with banks 513,158 190 0.15 438,001 115 0.11 274,022 65 0.09 Other 2,739 14 2.00 2,726 12 1.83 2,498 14 2.29 Total interest-earning assets 3,831,886 $ 32,115 3.33 % 3,796,219 $ 31,147 3.29 % 3,385,466 $ 30,238 3.55 % Allowance for loan losses (26,470 ) (28,939 ) (30,221 ) Noninterest-earning assets 159,635 156,559 157,446 Total assets $ 3,965,051 $ 3,923,839 $ 3,512,691 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Interest-bearing deposits: Interest-bearing demand $ 1,020,216 $ 129 0.05 % $ 1,019,488 $ 127 0.05 % $ 888,941 $ 123 0.05 % Money market 510,183 96 0.07 502,448 94 0.08 479,314 96 0.08 Savings 608,436 48 0.03 601,615 46 0.03 493,278 37 0.03 Time 275,224 291 0.42 290,865 346 0.48 306,154 587 0.76 Total interest-bearing deposits 2,414,059 564 0.09 2,414,416 613 0.10 2,167,687 843 0.15 Securities sold under agreements to repurchase 49,923 8 0.06 47,170 8 0.07 51,686 9 0.06 Borrowings 326 1 0.46 440 — 0.39 1,196 1 0.47 Subordinated notes 39,285 470 4.74 39,265 469 4.80 11,976 147 4.87 Junior subordinated debentures issued to capital trusts 37,688 357 3.76 37,671 357 3.80 37,621 367 3.89 Total interest-bearing liabilities 2,541,281 $ 1,400 0.22 % 2,538,962 $ 1,447 0.23 % 2,270,166 $ 1,367 0.24 % Noninterest-bearing deposits 1,016,384 992,699 846,808 Noninterest-bearing liabilities 26,523 26,988 40,421 Total liabilities 3,584,188 3,558,649 3,157,395 Stockholders' Equity 380,863 365,190 355,296 Total liabilities and stockholders’ equity $ 3,965,051 $ 3,923,839 $ 3,512,691 Net interest income/Net interest margin (1) $ 30,715 3.18 % $ 29,700 3.14 % $ 28,871 3.39 % Tax-equivalent adjustment (2) 508 0.05 503 0.05 495 0.06 Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3) $ 31,223 3.23 % $ 30,203 3.19 % $ 29,366 3.45 % Net interest rate spread (4) 3.11 % 3.06 % 3.31 % Net interest-earning assets (5) $ 1,290,605 $ 1,257,257 $ 1,115,300 Ratio of interest-earning assets to interest-bearing liabilities 1.51 1.50 1.49 Cost of total deposits 0.07 % 0.07 % 0.11 % * Annualized measure. (1) Net interest margin represents net interest income divided by average total interest-earning assets. (2) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%. (3) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures. (4) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. (5) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. HBT Financial, Inc. Consolidated Financial Summary Nine Months Ended September 30, 2021 September 30, 2020 Average Average Balance Interest Yield/Cost * Balance Interest Yield/Cost * (dollars in thousands) ASSETS Loans $ 2,217,463 $ 77,738 4.69 % $ 2,228,145 $ 79,144 4.74 % Securities 1,102,808 15,706 1.90 740,834 13,260 2.39 Deposits with banks 432,971 385 0.12 283,730 873 0.41 Other 2,655 39 1.95 2,473 42 2.29 Total interest-earning assets 3,755,897 $ 93,868 3.34 % 3,255,182 $ 93,319 3.83 % Allowance for loan losses (29,069 ) (26,288 ) Noninterest-earning assets 157,287 156,121 Total assets $ 3,884,115 $ 3,385,015 LIABILITIES AND STOCKHOLDERS' EQUITY Liabilities Interest-bearing deposits: Interest-bearing demand $ 1,012,557 $ 373 0.05 % $ 853,775 $ 536 0.08 % Money market 498,441 279 0.07 473,647 608 0.17 Savings 584,226 135 0.03 467,482 157 0.04 Time 286,685 1,034 0.48 321,905 2,179 0.90 Total interest-bearing deposits 2,381,909 1,821 0.10 2,116,809 3,480 0.22 Securities sold under agreements to repurchase 47,827 23 0.06 49,183 40 0.11 Borrowings 421 2 0.43 1,333 2 0.19 Subordinated notes 39,265 1,409 4.80 4,021 147 4.87 Junior subordinated debentures issued to capital trusts 37,671 1,069 3.79 37,605 1,209 4.30 Total interest-bearing liabilities 2,507,093 $ 4,324 0.23 % 2,208,951 $ 4,878 0.29 % Noninterest-bearing deposits 976,884 780,826 Noninterest-bearing liabilities 30,205 47,426 Total liabilities 3,514,182 3,037,203 Stockholders' Equity 369,933 347,812 Total liabilities and stockholders’ equity $ 3,884,115 3,385,015 Net interest income/Net interest margin (1) $ 89,544 3.19 % $ 88,441 3.63 % Tax-equivalent adjustment (2) 1,514 0.05 1,441 0.06 Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3) $ 91,058 3.24 % $ 89,882 3.69 % Net interest rate spread (4) 3.11 % 3.54 % Net interest-earning assets (5) $ 1,248,804 $ 1,046,231 Ratio of interest-earning assets to interest-bearing liabilities 1.50 1.47 Cost of total deposits 0.07 % 0.16 % * Annualized measure. (1) Net interest margin represents net interest income divided by average total interest-earning assets. (2) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%. (3) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures. (4) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities. (5) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities. HBT Financial, Inc. Consolidated Financial Summary September 30, June 30, September 30, 2021 2021 2020 (dollars in thousands) NONPERFORMING ASSETS Nonaccrual $ 5,489 $ 6,823 $ 15,191 Past due 90 days or more, still accruing (1) 39 583 17 Total nonperforming loans 5,528 7,406 15,208 Foreclosed assets 7,315 7,757 3,857 Total nonperforming assets $ 12,843 $ 15,163 $ 19,065 NONPERFORMING ASSETS (Originated) (2) Nonaccrual $ 4,051 $ 4,319 $ 10,179 Past due 90 days or more, still accruing 39 583 17 Total nonperforming loans (originated) 4,090 4,902 10,196 Foreclosed assets 511 856 939 Total nonperforming assets (originated) $ 4,601 $ 5,758 $ 11,135 NONPERFORMING ASSETS (Acquired) (2) Nonaccrual $ 1,438 $ 2,504 $ 5,012 Past due 90 days or more, still accruing (1) — — — Total nonperforming loans (acquired) 1,438 2,504 5,012 Foreclosed assets 6,804 6,901 2,918 Total nonperforming assets (acquired) $ 8,242 $ 9,405 $ 7,930 Allowance for loan losses $ 24,861 $ 26,507 $ 31,654 Loans, before allowance for loan losses $ 2,147,812 $ 2,152,119 $ 2,279,639 Loans, before allowance for loan losses (originated) (2) 2,057,276 2,054,291 2,148,074 Loans, before allowance for loan losses (acquired) (2) 90,536 97,828 131,565 CREDIT QUALITY RATIOS Allowance for loan losses to loans, before allowance for loan losses 1.16 % 1.23 % 1.39 % Allowance for loan losses to nonperforming loans 449.73 357.91 208.14 Nonperforming loans to loans, before allowance for loan losses 0.26 0.34 0.67 Nonperforming assets to total assets 0.33 0.38 0.54 Nonperforming assets to loans, before allowance for loan losses and foreclosed assets 0.60 0.70 0.83 CREDIT QUALITY RATIOS (Originated) (2) Nonperforming loans to loans, before allowance for loan losses 0.20 % 0.24 % 0.47 % Nonperforming assets to loans, before allowance for loan losses and foreclosed assets 0.22 0.28 0.52 CREDIT QUALITY RATIOS (Acquired) (2) Nonperforming loans to loans, before allowance for loan losses 1.59 % 2.56 % 3.81 % Nonperforming assets to loans, before allowance for loan losses and foreclosed assets 8.47 8.98 5.90 (1) Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $27 thousand, $27 thousand, and $30 thousand as of September 30, 2021, June 30, 2021, and September 30, 2020, respectively. (2) Originated loans and acquired loans along with the related credit quality ratios such as nonperforming loans to loans, before allowance for loan losses (originated and acquired) and nonperforming assets to loans, before allowance for loan losses and foreclosed assets (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by the Company. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures. HBT Financial, Inc. Consolidated Financial Summary Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2021 2021 2020 2021 2020 ALLOWANCE FOR LOAN LOSSES (dollars in thousands) Beginning balance $ 26,507 $ 28,759 $ 29,723 $ 31,838 $ 22,299 Provision (1,667 ) (2,162 ) 2,174 (7,234 ) 10,102 Charge-offs (278 ) (402 ) (1,078 ) (875 ) (2,459 ) Recoveries 299 312 835 1,132 1,712 Ending balance $ 24,861 $ 26,507 $ 31,654 $ 24,861 $ 31,654 Net charge-offs (recoveries) $ (21 ) $ 90 $ 243 $ (257 ) $ 747 Net charge-offs (recoveries) - (originated) (1) (116 ) (214 ) (20 ) (650 ) 155 Net charge-offs (recoveries) - (acquired) (1) 95 304 263 393 592 Average loans, before allowance for loan losses $ 2,135,476 $ 2,234,388 $ 2,277,826 $ 2,217,463 $ 2,228,145 Average loans, before allowance for loan losses (originated) (1) 2,041,049 2,127,221 2,140,376 2,110,837 2,080,668 Average loans, before allowance for loan losses (acquired) (1) 94,427 107,167 137,450 106,626 147,477 Net charge-offs (recoveries) to average loans, before allowance for loan losses * — % 0.02 % 0.04 % (0.02 ) % 0.04 % Net charge-offs (recoveries) to average loans, before allowance for loan losses (originated) * (1) (0.02 ) (0.04 ) — (0.04 ) 0.01 Net charge-offs (recoveries) to average loans, before allowance for loan losses (acquired) * (1) 0.40 1.14 0.76 0.49 0.54 * Annualized measure. (1) Originated loans and acquired loans along with the related credit quality ratios such as net charge-offs (originated and acquired), average loans, before allowance for loan losses (originated and acquired), and net charge-offs to average loans, before allowance for loan losses (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by the Company. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures. HBT Financial, Inc. Consolidated Financial Summary As of or for the Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2021 2021 2020 2021 2020 (dollars in thousands, except per share data) EARNINGS AND PER SHARE INFORMATION Net income $ 13,715 $ 13,717 $ 10,563 $ 42,677 $ 24,203 Earnings per share - Basic 0.50 0.50 0.38 1.56 0.88 Earnings per share - Diluted 0.50 0.50 0.38 1.56 0.88 Book value per share $ 13.86 $ 13.64 $ 12.94 Shares of common stock outstanding 27,334,428 27,355,053 27,457,306 Weighted average shares of common stock outstanding 27,340,926 27,362,579 27,457,306 27,377,809 27,457,306 SUMMARY RATIOS Net interest margin * 3.18 % 3.14 % 3.39 % 3.19 % 3.63 % Efficiency ratio 56.04 56.91 56.98 56.22 61.15 Loan to deposit ratio 62.81 62.84 75.57 Return on average assets * 1.37 % 1.40 % 1.20 % 1.47 % 0.96 % Return on average stockholders' equity * 14.29 15.07 11.83 15.42 9.30 NON-GAAP FINANCIAL MEASURES (1) Adjusted net income $ 14,479 $ 14,168 $ 10,755 $ 42,680 $ 27,352 Adjusted earnings per share - Basic 0.53 0.52 0.39 1.56 0.99 Adjusted earnings per share - Diluted 0.53 0.52 0.39 1.56 0.99 Tangible book value per share $ 12.92 $ 12.70 $ 11.97 Net interest margin (tax equivalent basis) * (2) 3.23 % 3.19 % 3.45 % 3.24 % 3.69 % Efficiency ratio (tax equivalent basis) (2) 55.32 56.18 56.27 55.50 60.37 Return on average tangible common equity * 15.32 % 16.22 % 12.80 % 16.59 % 10.08 % Adjusted return on average assets * 1.45 % 1.45 % 1.22 % 1.47 % 1.08 % Adjusted return on average stockholders' equity * 15.08 15.56 12.04 15.43 10.50 Adjusted return on average tangible common equity * 16.18 16.76 13.03 16.59 11.40 * Annualized measure. (1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures. (2) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%. Reconciliation of Non-GAAP Financial Measures – Adjusted Net Income and Adjusted Return on Average Assets Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2021 2021 2020 2021 2020 (dollars in thousands) Net income $ 13,715 $ 13,717 $ 10,563 $ 42,677 $ 24,203 Adjustments: Acquisition expenses (380 ) (157 ) — (537 ) — Branch closure expenses (644 ) (104 ) — (748 ) — Charges related to termination of certain employee benefit plans — — — — (1,457 ) Mortgage servicing rights fair value adjustment 40 (310 ) (268 ) 1,425 (2,947 ) Total adjustments (984 ) (571 ) (268 ) 140 (4,404 ) Tax effect of adjustments 220 120 76 (143 ) 1,255 Less adjustments, after tax effect (764 ) (451 ) (192 ) (3 ) (3,149 ) Adjusted net income $ 14,479 $ 14,168 $ 10,755 $ 42,680 $ 27,352 Average assets $ 3,965,051 $ 3,923,839 $ 3,512,691 $ 3,884,115 $ 3,385,015 Return on average assets * 1.37 % 1.40 % 1.20 % 1.47 % 0.96 % Adjusted return on average assets * 1.45 1.45 1.22 1.47 1.08 * Annualized measure. Reconciliation of Non-GAAP Financial Measures – Adjusted Earnings Per Share Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2021 2021 2020 2021 2020 (dollars in thousands, except per share data) Numerator: Net income $ 13,715 $ 13,717 $ 10,563 $ 42,677 $ 24,203 Earnings allocated to participating securities (1) (25 ) (25 ) (28 ) (81 ) (62 ) Numerator for earnings per share - basic and diluted $ 13,690 $ 13,692 $ 10,535 $ 42,596 $ 24,141 Adjusted net income $ 14,479 $ 14,168 $ 10,755 $ 42,680 $ 27,352 Earnings allocated to participating securities (1) (27 ) (26 ) (28 ) (81 ) (69 ) Numerator for adjusted earnings per share - basic and diluted $ 14,452 $ 14,142 $ 10,727 $ 42,599 $ 27,283 Denominator: Weighted average common shares outstanding 27,340,926 27,362,579 27,457,306 27,377,809 27,457,306 Dilutive effect of outstanding restricted stock units 13,921 17,701 — 11,412 — Weighted average common shares outstanding, including all dilutive potential shares 27,354,847 27,380,280 27,457,306 27,389,221 27,457,306 Earnings per share - Basic $ 0.50 $ 0.50 $ 0.38 $ 1.56 $ 0.88 Earnings per share - Diluted $ 0.50 $ 0.50 $ 0.38 $ 1.56 $ 0.88 Adjusted earnings per share - Basic $ 0.53 $ 0.52 $ 0.39 $ 1.56 $ 0.99 Adjusted earnings per share - Diluted $ 0.53 $ 0.52 $ 0.39 $ 1.56 $ 0.99 (1) The Company has granted certain restricted stock units that contain non-forfeitable rights to dividend equivalents. Such restricted stock units are considered participating securities. As such, we have included these restricted stock units in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings. Reconciliation of Non-GAAP Financial Measures – Net Interest Margin (Tax Equivalent Basis) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2021 2021 2020 2021 2020 (dollars in thousands) Net interest income (tax equivalent basis) Net interest income $ 30,715 $ 29,700 $ 28,871 $ 89,544 $ 88,441 Tax-equivalent adjustment (1) 508 503 495 1,514 1,441 Net interest income (tax equivalent basis) (1) $ 31,223 $ 30,203 $ 29,366 $ 91,058 $ 89,882 Net interest margin (tax equivalent basis) Net interest margin * 3.18 % 3.14 % 3.39 % 3.19 % 3.63 % Tax-equivalent adjustment * (1) 0.05 0.05 0.06 0.05 0.06 Net interest margin (tax equivalent basis) * (1) 3.23 % 3.19 % 3.45 % 3.24 % 3.69 % Average interest-earning assets $ 3,831,886 $ 3,796,219 $ 3,385,466 $ 3,755,897 $ 3,255,182 * Annualized measure. (1) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%. Reconciliation of Non-GAAP Financial Measures – Efficiency Ratio (Tax Equivalent Basis) Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2021 2021 2020 2021 2020 (dollars in thousands) Efficiency ratio (tax equivalent basis) Total noninterest expense $ 22,167 $ 22,154 $ 22,485 $ 66,865 $ 69,291 Less: amortization of intangible assets 252 258 305 799 927 Adjusted noninterest expense $ 21,915 $ 21,896 $ 22,180 $ 66,066 $ 68,364 Net interest income $ 30,715 $ 29,700 $ 28,871 $ 89,544 $ 88,441 Total noninterest income 8,392 8,774 10,052 27,974 23,364 Operating revenue 39,107 38,474 38,923 117,518 111,805 Tax-equivalent adjustment (1) 508 503 495 1,514 1,441 Operating revenue (tax equivalent basis) (1) $ 39,615 $ 38,977 $ 39,418 $ 119,032 $ 113,246 Efficiency ratio 56.04 % 56.91 % 56.98 % 56.22 % 61.15 % Efficiency ratio (tax equivalent basis) (1) 55.32 56.18 56.27 55.50 60.37 (1) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%. Reconciliation of Non-GAAP Financial Measures – Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share September 30, June 30, September 30, 2021 2021 2020 (dollars in thousands, except per share data) Tangible common equity Total stockholders' equity $ 378,821 $ 373,194 $ 355,294 Less: Goodwill 23,620 23,620 23,620 Less: Core deposit intangible assets, net 1,999 2,251 3,103 Tangible common equity $ 353,202 $ 347,323 $ 328,571 Tangible assets Total assets $ 3,948,226 $ 3,953,677 $ 3,535,223 Less: Goodwill 23,620 23,620 23,620 Less: Core deposit intangible assets, net 1,999 2,251 3,103 Tangible assets $ 3,922,607 $ 3,927,806 $ 3,508,500 Total stockholders' equity to total assets 9.59 % 9.44 % 10.05 % Tangible common equity to tangible assets 9.00 8.84 9.36 Shares of common stock outstanding 27,334,428 27,355,053 27,457,306 Book value per share $ 13.86 $ 13.64 $ 12.94 Tangible book value per share 12.92 12.70 11.97 Reconciliation of Non-GAAP Financial Measures – Adjusted Return on Average Stockholders' Equity and Adjusted Return on Tangible Common Equity Three Months Ended Nine Months Ended September 30, June 30, September 30, September 30, 2021 2021 2020 2021 2020 (dollars in thousands) Average tangible common equity Total stockholders' equity $ 380,863 $ 365,190 $ 355,296 $ 369,933 $ 347,812 Less: Goodwill 23,620 23,620 23,620 23,620 23,620 Less: Core deposit intangible assets, net 2,152 2,410 3,284 2,414 3,589 Average tangible common equity $ 355,091 $ 339,160 $ 328,392 $ 343,899 $ 320,603 Net income $ 13,715 $ 13,717 $ 10,563 $ 42,677 $ 24,203 Adjusted net income 14,479 14,168 10,755 42,680 27,352 Return on average stockholders' equity * 14.29 % 15.07 % 11.83 % 15.42 % 9.30 % Return on average tangible common equity * 15.32 16.22 12.80 16.59 10.08 Adjusted return on average stockholders' equity * 15.08 % 15.56 % 12.04 % 15.43 % 10.50 % Adjusted return on average tangible common equity * 16.18 16.76 13.03 16.59 11.40 * Annualized measure. 
