• HBT Financial, Inc. Announces Fourth Quarter 2020 Financial Results

    来源: Nasdaq GlobeNewswire / 28 1月 2021 06:05:01   America/Chicago

    Fourth Quarter Highlights

    • Net income of $12.6 million, or $0.46 per diluted share; return on average assets (ROAA) of 1.38%; return on average stockholders' equity (ROAE) of 14.00%; and return on average tangible common equity (ROATCE)(1) of 15.12%
    • Adjusted net income(1) of $12.4 million; or $0.45 per diluted share, adjusted ROAA(1) of 1.36%; adjusted ROAE(1) of 13.71%; and adjusted ROATCE(1) of 14.81%
     (1)See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.

    BLOOMINGTON, Ill., Jan. 28, 2021 (GLOBE NEWSWIRE) -- HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial”), the holding company for Heartland Bank and Trust Company, today reported net income of $12.6 million, or $0.46 diluted earnings per share, for the fourth quarter of 2020. This compares to net income of $10.6 million, or $0.38 diluted earnings per share, for the third quarter of 2020, and net income of $16.1 million, or $0.61 diluted earnings per share, for the fourth quarter of 2019.

    Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “Despite the ongoing challenges presented by the pandemic that have impacted loan demand in our markets, we continued to produce a high level of profitability. Our consistent performance reflects the strong foundation we have built upon an attractive, stable deposit base, conservative underwriting, and diverse sources of non-interest income.

    “With ample liquidity, capital and reserves, we are well positioned to continue supporting our customers and communities through this crisis while generating solid results for our shareholders. As economic conditions improve, we will be well positioned to continue growing our balance sheet through our ongoing expansion in our existing markets and potential acquisition opportunities, which we believe will help us to generate earnings growth and further enhance the value of our franchise in the years ahead,” said Mr. Drake.

    C Corp Equivalent Net Income

    Prior to October 11, 2019, the Company operated as an S Corporation for U.S. federal and state income tax purposes. Effective October 11, 2019, the Company voluntarily revoked its S Corporation status and became a taxable entity (C Corporation). As such, any periods prior to October 11, 2019 only reflect state replacement taxes. To facilitate comparison, the Company reports its C Corp equivalent financial results, which do not reflect the additional shares issued in the initial public offering (the “IPO”) for periods prior to the IPO.

    The Company reported C Corp equivalent net income of $15.1 million, or $0.58 diluted earnings per share, for the fourth quarter of 2019.

    Adjusted Net Income

    In addition to reporting C Corp equivalent 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, 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 $12.4 million, or $0.45 adjusted diluted earnings per share, for the fourth quarter of 2020. This compares to adjusted net income of $10.8 million, or $0.39 adjusted diluted earnings per share, for the third quarter of 2020, and adjusted net income of $14.4 million, or $0.55 adjusted diluted earnings per share, for the fourth quarter of 2019 (see "Reconciliation of Non-GAAP Financial Measures" tables).

    Net Interest Income and Net Interest Margin

    Net interest income for the fourth quarter of 2020 was $29.2 million, an increase of 1.0% from $28.9 million for the third quarter of 2020 due primarily to growth in average interest-earning assets.

    Relative to the fourth quarter of 2019, net interest income decreased $3.1 million, or 9.6%. The decline was primarily attributable to lower yields on average interest-earning assets.

    Net interest margin for the fourth quarter of 2020 was 3.31%, compared to 3.39% for the third quarter of 2020. The decrease was primarily attributable to a full quarter’s impact of subordinated notes issued in September 2020. The contribution of acquired loan discount accretion to net interest margin remained low at 2 basis points during both the third and fourth quarter of 2020.

    Relative to the fourth quarter of 2019, net interest margin decreased from 4.09%. The decrease was due primarily to the decline in the average yield on earning assets. The contribution of acquired loan discount accretion to net interest margin was 2 basis points during the fourth quarter of 2019.

    Noninterest Income

    Noninterest income for the fourth quarter of 2020 was $11.1 million, an increase of 10.3% from $10.1 million for the third quarter of 2020. The increase was partially attributable to a $0.6 million increase in wealth management fees. Fourth quarter 2020 results included a positive $0.4 million mortgage servicing rights (“MSR”) fair value adjustment compared to a negative $0.3 million fair value adjustment in the third quarter of 2020.

    Relative to the fourth quarter of 2019, noninterest income increased 7.3% from $10.3 million. The increase was primarily attributable to higher gains on sale of mortgage loans and higher wealth management fees. Partially offsetting these increases were a $0.5 million decline in service charges on deposit accounts and a $0.4 million decline in other noninterest income.

    Noninterest Expense

    Noninterest expense for the fourth quarter of 2020 was $22.7 million, an increase of 0.8% from $22.5 million for the third quarter of 2020. The increase was primarily attributable to a $0.3 million increase in data processing costs, including $0.2 million of nonrecurring costs related to systems conversion for the consolidation of State Bank of Lincoln into Heartland Bank and Trust Company.

    Relative to the third quarter of 2019, noninterest expense increased 3.3% from $22.0 million. Lower loan collection and servicing expense was more than offset by increases in FDIC insurance, data processing and other noninterest expenses. 

    Loan Portfolio

    Total loans outstanding, before allowance for loan losses, were $2.25 billion at December 31, 2020, compared with $2.28 billion at September 30, 2020 and $2.16 billion at December 31, 2019. The $32.6 million decrease in loans from September 30, 2020 includes a $16.2 million decrease in PPP loans. The remaining decrease was not attributable to any specific factor. The $80.3 million decrease in total loans outstanding, net of PPP loans from December 31, 2019 was primarily due to a $43.2 million reduction in balances on existing lines of credit and a $19.0 million decrease in balances of participation loans purchased.

    Deposits

    Total deposits were $3.13 billion at December 31, 2020, compared with $3.02 billion at September 30, 2020 and $2.78 billion at December 31, 2019. Relative to the previous quarter, increases in interest-bearing demand, noninterest-bearing and savings balances were partially offset by declines in money market and time deposit balances in the fourth quarter of 2020.

    Asset Quality

    Nonperforming loans totaled $10.0 million, or 0.44% of total loans, at December 31, 2020, compared with $15.2 million, or 0.67% of total loans, at September 30, 2020, and $19.0 million, or 0.88% of total loans, at December 31, 2019. The decrease in nonperforming loans from September 30, 2020 was primarily attributable to the pay down and subsequent return to accrual status of one agriculture credit that totaled $4.2 million at September 30, 2020 and $3.8 million at December 31, 2020. The $9.0 million reduction in nonperforming loans from December 31, 2019 was primarily due to the referenced agriculture credit that totaled $5.0 million at December 31, 2019, as well as the payoff/pay down of 5 loan relationships that totaled approximately $4.2 million since December 31, 2019.

    The Company recorded a provision for loan losses of $0.4 million for the fourth quarter of 2020, which was primarily due to a $3.2 million increase in specific reserves on loans individually evaluated for impairment, significantly offset by adjustments to qualitative factors to reflect changes in the economic environment and improved asset quality metrics.

    Net charge-offs for the fourth quarter of 2020 were $0.2 million, or 0.04% of average loans on an annualized basis, compared to net charge-offs of $0.2 million, or 0.04% of average loans on an annualized basis, for the third quarter of 2020, and net charge-offs of $0.6 million, or 0.11% of average loans on an annualized basis, for the fourth quarter of 2019.

    The Company’s allowance for loan losses was 1.42% of total loans and 319.66% of nonperforming loans at December 31, 2020, compared with 1.39% of total loans and 208.14% of nonperforming loans at September 30, 2020.

    Capital

    At December 31, 2020, 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
     December 31, Regulatory
     2020Requirements
    Total capital to risk-weighted assets17.45%10.00%
    Tier 1 capital to risk-weighted assets14.55%8.00%
    Common equity tier 1 capital ratio13.06%6.50%
    Tier 1 leverage ratio9.94%5.00%
    Total stockholders' equity to total assets9.93%N/A 
    Tangible common equity to tangible assets (1)9.27%N/A 


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


    Stock Repurchase Program

    On November 3, 2020, the Company announced that its Board of Directors approved a stock repurchase program that authorizes the Company to repurchase up to $15 million of its common stock. The Company did not repurchase any shares of its common stock during the fourth quarter of 2020.

    Annualization Factor

    The method used to calculate annualization factors for interim period ratios changed in the third quarter of 2020 from financial information previously presented. The annualization factor is now calculated using the number of days in the year divided by the number of days in the interim period. Prior to the third quarter of 2020, annualization factors were calculated as 4 divided by the number of quarters in the interim period, or an annualization factor of 4 for a quarterly period. The change was applied retrospectively to all periods presented and did not have a material impact on the annualized interim ratios.

    About HBT Financial, Inc.

    HBT Financial, Inc. is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company. The bank 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 through 63 branches. As of December 31, 2020, HBT had total assets of $3.7 billion, total loans of $2.2 billion, and total deposits of $3.1 billion. HBT is a longstanding Central Illinois company, with banking roots that can be traced back 100 years.

    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 plans, objectives, future performance, goals, future earnings levels, and future loan growth. 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 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 disruption of global, national, state and local economies associated with the COVID-19 pandemic, 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 in particular, including in the financial markets; changes in business plans as circumstances warrant; risks relating to 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) 622-8230


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

     Three Months Ended  Year Ended
     December 31,  September 30,  December 31,  December 31, 
     2020 2020  2019  2020  2019 
                  
    INTEREST AND DIVIDEND INCOME(dollars in thousands, except per share amounts)
    Loans, including fees:              
    Taxable$25,497 $25,118  $28,039  $102,893  $117,296 
    Federally tax exempt 555  542   716   2,303   2,846 
    Securities:              
    Taxable 3,407  3,266   3,559   13,179   14,854 
    Federally tax exempt 1,208  1,233   1,269   4,696   5,728 
    Interest-bearing deposits in bank 65  65   1,003   938   2,951 
    Other interest and dividend income 14  14   14   56   60 
    Total interest and dividend income 30,746  30,238   34,600   124,065   143,735 
                   
    INTEREST EXPENSE              
    Deposits 741  843   1,838   4,221   7,932 
    Securities sold under agreements to repurchase 8  9   24   48   72 
    Borrowings —  1   2   2   9 
    Subordinated notes 469  147   —   616   — 
    Junior subordinated debentures issued to capital trusts 364  367   460   1,573   1,922 
    Total interest expense 1,582  1,367   2,324   6,460   9,935 
    Net interest income 29,164  28,871   32,276   117,605   133,800 
    PROVISION FOR LOAN LOSSES 430  2,174   138   10,532   3,404 
    Net interest income after provision for loan losses 28,734  26,697   32,138   107,073   130,396 
                   
    NONINTEREST INCOME              
    Card income 2,151  2,146   1,952   8,087   7,765 
    Service charges on deposit accounts 1,527  1,493   2,065   5,987   7,870 
    Wealth management fees 2,270  1,646   1,911   7,237   6,827 
    Mortgage servicing 803  724   801   2,978   3,143 
    Mortgage servicing rights fair value adjustment 363  (268)  582   (2,584)  (2,400)
    Gains on sale of mortgage loans 2,980  3,184   915   8,835   3,092 
    Gains (losses) on securities 30  (2)  (47)  33   (5)
    Gains (losses) on foreclosed assets 22  27   808   142   940 
    Gains (losses) on other assets —  1   —   (71)  1,244 
    Title insurance activity —  —   —   —   167 
    Other noninterest income 946  1,101   1,349   3,812   4,108 
    Total noninterest income 11,092  10,052   10,336   34,456   32,751 
                   
    NONINTEREST EXPENSE              
    Salaries 12,593  12,595   12,581   50,616   49,003 
    Employee benefits 1,490  1,666   1,663   8,045   9,883 
    Occupancy of bank premises 1,501  1,609   1,607   6,580   6,867 
    Furniture and equipment 556  679   763   2,447   2,813 
    Data processing 1,901  1,583   1,547   6,742   5,570 
    Marketing and customer relations 925  690   1,036   3,476   3,873 
    Amortization of intangible assets 305  305   336   1,232   1,423 
    FDIC insurance 231  222   (237)  707   198 
    Loan collection and servicing 463  450   732   1,755   2,633 
    Foreclosed assets 154  226   151   557   676 
    Other noninterest expense 2,546  2,460   1,771   9,799   8,087 
    Total noninterest expense 22,665  22,485   21,950   91,956   91,026 
    INCOME BEFORE INCOME TAX EXPENSE 17,161  14,264   20,524   49,573   72,121 
    INCOME TAX EXPENSE 4,519  3,701   4,437   12,728   5,256 
    NET INCOME$12,642 $10,563  $16,087  $36,845  $66,865 
                   
    EARNINGS PER SHARE - BASIC$0.46 $0.38  $0.61  $1.34  $3.33 
    EARNINGS PER SHARE - DILUTED$0.46 $0.38  $0.61  $1.34  $3.33 
    WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING 27,457,306  27,457,306   26,211,282   27,457,306   20,090,270 
                   
    PRO FORMA C CORP EQUIVALENT INFORMATION              
    Historical income before income tax expense      $20,524     $72,121 
    Pro forma C Corp equivalent income tax expense       5,436      18,749 
    Pro forma C Corp equivalent net income      $15,088     $53,372 
                   
    PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - BASIC      $0.58     $2.66 
    PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - DILUTED      $0.58     $2.66 



    HBT Financial, Inc.
    Consolidated Financial Summary
    Consolidated Balance Sheets

     December 31,  September 30,  December 31, 
     2020  2020  2019 
             
     (dollars in thousands)
    ASSETS        
    Cash and due from banks$24,912  $22,347  $22,112 
    Interest-bearing deposits with banks 287,539   214,377   261,859 
    Cash and cash equivalents 312,451   236,724   283,971 
             
    Interest-bearing time deposits with banks —   —   248 
    Debt securities available-for-sale, at fair value 922,869   814,798   592,404 
    Debt securities held-to-maturity 68,395   74,510   88,477 
    Equity securities 4,844   4,814   4,389 
    Restricted stock, at cost 2,498   2,498   2,425 
    Loans held for sale 14,713   23,723   4,531 
             
    Loans, before allowance for loan losses 2,247,006   2,279,639   2,163,826 
    Allowance for loan losses (31,838)  (31,654)  (22,299)
    Loans, net of allowance for loan losses 2,215,168   2,247,985   2,141,527 
             
    Bank premises and equipment, net 52,904   53,271   53,987 
    Bank premises held for sale 121   121   121 
    Foreclosed assets 4,168   3,857   5,099 
    Goodwill 23,620   23,620   23,620 
    Core deposit intangible assets, net 2,798   3,103   4,030 
    Mortgage servicing rights, at fair value 5,934   5,571   8,518 
    Investments in unconsolidated subsidiaries 1,165   1,165   1,165 
    Accrued interest receivable 14,255   13,820   13,951 
    Other assets 20,664   25,643   16,640 
    Total assets$3,666,567  $3,535,223  $3,245,103 
             
    LIABILITIES AND STOCKHOLDERS' EQUITY        
    Liabilities        
    Deposits:        
    Noninterest-bearing$882,939  $850,306  $689,116 
    Interest-bearing 2,247,595   2,166,355   2,087,739 
    Total deposits 3,130,534   3,016,661   2,776,855 
             
    Securities sold under agreements to repurchase 45,736   45,438   44,433 
    Subordinated notes 39,238   39,218   — 
    Junior subordinated debentures issued to capital trusts 37,648   37,632   37,583 
    Other liabilities 49,494   40,980   53,314 
    Total liabilities 3,302,650   3,179,929   2,912,185 
             
    Stockholders' Equity        
    Common stock 275   275   275 
    Surplus 190,875   190,787   190,524 
    Retained earnings 154,614   146,101   134,287 
    Accumulated other comprehensive income 18,153   18,131   7,832 
    Total stockholders’ equity 363,917   355,294   332,918 
    Total liabilities and stockholders’ equity$3,666,567  $3,535,223  $3,245,103 
             
    SHARE INFORMATION        
    Ending number shares of common stock outstanding 27,457,306   27,457,306   27,457,306 



    HBT Financial, Inc.
    Consolidated Financial Summary

     December 31,  September 30,  December 31, 
     2020 2020 2019
          
     (dollars in thousands)
    LOANS        
    Commercial and industrial$393,312 $389,231 $307,175
    Agricultural and farmland 222,723  235,597  207,776
    Commercial real estate - owner occupied 222,360  225,345  231,162
    Commercial real estate - non-owner occupied 520,395  532,454  579,757
    Multi-family 236,391  199,441  179,073
    Construction and land development 225,652  265,758  224,887
    One-to-four family residential 306,775  308,365  313,580
    Municipal, consumer, and other 119,398  123,448  120,416
    Loans, before allowance for loan losses$2,247,006 $2,279,639 $2,163,826
             
    PPP LOANS (included above)        
    Commercial and industrial$153,860 $168,466 $—
    Agricultural and farmland 3,049  4,179  —
    Municipal, consumer, and other 6,587  7,095  —
    Total PPP Loans$163,496 $179,740 $—


     December 31,  September 30,  December 31, 
     2020 2020 2019
          
     (dollars in thousands)
    DEPOSITS        
    Noninterest-bearing$882,939 $850,306 $689,116
    Interest-bearing demand 968,592  885,719  814,639
    Money market 462,056  475,047  477,765
    Savings 517,473  497,682  438,927
    Time 299,474  307,907  356,408
    Total deposits$3,130,534 $3,016,661 $2,776,855



    HBT Financial, Inc.
    Consolidated Financial Summary

     Three Months Ended  
     December 31, 2020 September 30, 2020 December 31, 2019 
     Average      Average      Average      
     Balance Interest Yield/Cost * Balance Interest Yield/Cost * Balance Interest Yield/Cost * 
                       
     (dollars in thousands) 
    ASSETS                        
    Loans$2,295,569  $26,052 4.51%$2,277,826  $25,660 4.48%$2,162,975  $28,755 5.27%
    Securities 932,698   4,615 1.97  831,120   4,499 2.15  700,441   4,828 2.73 
    Deposits with banks 277,363   65 0.09  274,022   65 0.09  265,237   1,003 1.50 
    Other 2,498   14 2.26  2,498   14 2.29  2,425   14 2.37 
    Total interest-earning assets 3,508,128  $30,746 3.49% 3,385,466  $30,238 3.55% 3,131,078  $34,600 4.38%
    Allowance for loan losses (31,749)       (30,221)       (22,766)      
    Noninterest-earning assets 157,208        157,446        152,961       
    Total assets$3,633,587       $3,512,691       $3,261,273       
                             
    LIABILITIES AND STOCKHOLDERS' EQUITY                        
    Liabilities                        
    Interest-bearing deposits:                        
    Interest-bearing demand$930,494  $111 0.05%$888,941  $123 0.05%$820,390  $299 0.14%
    Money market 475,183   89 0.07  479,314   96 0.08  486,288   481 0.39 
    Savings 506,381   39 0.03  493,278   37 0.03  434,241   71 0.06 
    Time 303,617   502 0.66  306,154   587 0.76  359,731   987 1.09 
    Total interest-bearing deposits 2,215,675   741 0.13  2,167,687   843 0.15  2,100,650   1,838 0.35 
    Securities sold under agreements to repurchase 51,297   8 0.06  51,686   9 0.06  46,028   24 0.21 
    Borrowings 326   — 0.51  1,196   1 0.47  272   2 2.58 
    Subordinated notes 39,219   469 4.76  11,976   147 4.87  —   — — 
    Junior subordinated debentures issued to capital trusts 37,638   364 3.84  37,621   367 3.89  37,577   460 4.86 
    Total interest-bearing liabilities 2,344,155  $1,582 0.27% 2,270,166  $1,367 0.24% 2,184,527  $2,324 0.42%
    Noninterest-bearing deposits 888,390        846,808        699,373       
    Noninterest-bearing liabilities 41,730        40,421        45,589       
    Total liabilities 3,274,275        3,157,395        2,929,489       
    Stockholders' Equity 359,312        355,296        331,784       
    Total liabilities and stockholders’ equity$3,633,587       $3,512,691       $3,261,273       
                             
    Net interest income/Net interest margin (3)   $29,164 3.31%   $28,871 3.39%   $32,276 4.09%
    Tax-equivalent adjustment (2)    502 0.05     495 0.06     534 0.07 
    Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (1) (2)   $29,666 3.36%   $29,366 3.45%   $32,810 4.16%
    Net interest rate spread (4)      3.22%      3.31%      3.96%
    Net interest-earning assets (5)$1,163,973       $1,115,300       $946,551       
    Ratio of interest-earning assets to interest-bearing liabilities 1.50        1.49        1.43       
    Cost of total deposits      0.09%      0.11%      0.26%


    *Annualized measure.
    (1)See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.
    (2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
    (3)Net interest margin represents net interest income divided by average total interest-earning assets.
    (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

     Year Ended  
     December 31, 2020 December 31, 2019 
     Average     Average     
     Balance Interest Yield/Cost Balance Interest Yield/Cost 
                 
     (dollars in thousands)
    ASSETS                
    Loans$2,245,093  $105,196 4.69%$2,178,897  $120,142 5.51%
    Securities 789,062   17,875 2.27  759,479   20,582 2.71 
    Deposits with banks 282,130   938 0.33  164,986   2,951 1.79 
    Other 2,479   56 2.28  2,501   60 2.41 
    Total interest-earning assets 3,318,764  $124,065 3.74% 3,105,863  $143,735 4.63%
    Allowance for loan losses (27,661)       (21,704)      
    Noninterest-earning assets 156,397        149,227       
    Total assets$3,447,500       $3,233,386       
                     
    LIABILITIES AND STOCKHOLDERS' EQUITY                
    Liabilities                
    Interest-bearing deposits:                
    Interest-bearing demand$873,060  $647 0.07%$821,480  $1,474 0.18%
    Money market 474,033   697 0.15  463,233   1,837 0.40 
    Savings 477,260   196 0.04  430,220   278 0.06 
    Time 317,308   2,681 0.84  396,560   4,343 1.10 
    Total interest-bearing deposits 2,141,661   4,221 0.20  2,111,493   7,932 0.38 
    Securities sold under agreements to repurchase 49,714   48 0.10  41,177   72 0.18 
    Borrowings 1,080   2 0.22  351   9 2.60 
    Subordinated notes 12,869   616 4.79  —   — — 
    Junior subordinated debentures issued to capital trusts 37,613   1,573 4.18  37,553   1,922 5.12 
    Total interest-bearing liabilities 2,242,937  $6,460 0.29% 2,190,574  $9,935 0.45%
    Noninterest-bearing deposits 807,864        666,055       
    Noninterest-bearing liabilities 45,996        35,213       
    Total liabilities 3,096,797        2,891,842       
    Stockholders' Equity 350,703        341,544       
    Total liabilities and stockholders’ equity$3,447,500        3,233,386       
                     
    Net interest income/Net interest margin (3)   $117,605 3.54%   $133,800 4.31%
    Tax-equivalent adjustment (2)    1,943 0.06     2,309 0.07 
    Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (1) (2)   $119,548 3.60%   $136,109 4.38%
    Net interest rate spread (4)      3.45%      4.18%
    Net interest-earning assets (5)$1,075,827       $915,289       
    Ratio of interest-earning assets to interest-bearing liabilities 1.48        1.42       
    Cost of total deposits      0.14%      0.29%


    (1)See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.
    (2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
    (3)Net interest margin represents net interest income divided by average total interest-earning assets.
    (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

     December 31,  September 30,  December 31,  
     2020 2020 2019 
           
     (dollars in thousands) 
    NONPERFORMING ASSETS         
    Nonaccrual$9,939 $15,191 $19,019 
    Past due 90 days or more, still accruing (1) 21  17  30 
    Total nonperforming loans 9,960  15,208  19,049 
    Foreclosed assets 4,168  3,857  5,099 
    Total nonperforming assets$14,128 $19,065 $24,148 
              
    NONPERFORMING ASSETS (Originated) (2)         
    Nonaccrual$2,908 $10,179 $10,811 
    Past due 90 days or more, still accruing 21  17  30 
    Total nonperforming loans (originated) 2,929  10,196  10,841 
    Foreclosed assets 674  939  1,022 
    Total nonperforming (originated)$3,603 $11,135 $11,863 
              
    NONPERFORMING ASSETS (Acquired) (2)         
    Nonaccrual$7,031 $5,012 $8,208 
    Past due 90 days or more, still accruing (1) —  —  — 
    Total nonperforming loans (acquired) 7,031  5,012  8,208 
    Foreclosed assets 3,494  2,918  4,077 
    Total nonperforming assets (acquired)$10,525 $7,930 $12,285 
              
    Allowance for loan losses$31,838 $31,654 $22,299 
              
    Loans, before allowance for loan losses$2,247,006 $2,279,639 $2,163,826 
    Loans, before allowance for loan losses (originated) (2) 2,126,323  2,148,074  1,998,496 
    Loans, before allowance for loan losses (acquired) (2) 120,683  131,565  165,330 
              
    CREDIT QUALITY RATIOS         
    Allowance for loan losses to loans, before allowance for loan losses 1.42% 1.39% 1.03%
    Allowance for loan losses to nonperforming loans 319.66  208.14  117.06 
    Nonperforming loans to loans, before allowance for loan losses 0.44  0.67  0.88 
    Nonperforming assets to total assets 0.39  0.54  0.74 
    Nonperforming assets to loans, before allowance for loan losses and foreclosed assets 0.63  0.83  1.11 
              
    CREDIT QUALITY RATIOS (Originated) (2)         
    Nonperforming loans to loans, before allowance for loan losses 0.14% 0.47% 0.54%
    Nonperforming assets to loans, before allowance for loan losses and foreclosed assets 0.17  0.52  0.59 
              
    CREDIT QUALITY RATIOS (Acquired) (2)         
    Nonperforming loans to loans, before allowance for loan losses 5.83% 3.81% 4.96%
    Nonperforming assets to loans, before allowance for loan losses and foreclosed assets 8.48  5.90  7.25 


    (1)Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $0.6 million, $30 thousand, and $0.1 million as of December 31, 2020, September 30, 2020, and December 31, 2019, 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  Year Ended  
     December 31,  September 30,  December 31,  December 31,  
     2020  2020  2019  2020  2019  
                    
    ALLOWANCE FOR LOAN LOSSES(dollars in thousands) 
    Beginning balance$31,654  $29,723  $22,761  $22,299  $20,509  
    Provision 430   2,174   138   10,532   3,404  
    Charge-offs (509)  (1,078)  (837)  (2,968)  (3,273) 
    Recoveries 263   835   237   1,975   1,659  
    Ending balance$31,838  $31,654  $22,299  $31,838  $22,299  
                    
    Net charge-offs (recoveries)$246  $243  $600  $993  $1,614  
    Net charge-offs (recoveries) - (originated) (1) 190   (20)  550   345   732  
    Net charge-offs (recoveries) - (acquired) (1) 56   263   50   648   882  
                    
    Average loans, before allowance for loan losses$2,295,569  $2,277,826  $2,162,975  $2,245,093  $2,178,897  
    Average loans, before allowance for loan losses (originated) (1) 2,169,256   2,140,376   1,988,658   2,102,904   1,981,658  
    Average loans, before allowance for loan losses (acquired) (1) 126,313   137,450   174,317   142,189   197,239  
                    
    Net charge-offs to average loans, before allowance for loan losses * 0.04 % 0.04 % 0.11 % 0.04 % 0.07 %
    Net charge-offs to average loans, before allowance for loan losses (originated) * (1) 0.03   —   0.11   0.02   0.04  
    Net charge-offs to average loans, before allowance for loan losses (acquired) * (1) 0.18   0.76   0.11   0.46   0.45  


    *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  Year Ended  
     December 31,  September 30,  December 31,  December 31,  
     2020 2020 2019 2020 2019 
               
     (dollars in thousands, except per share amounts) 
    EARNINGS AND PER SHARE INFORMATION               
    Net income$12,642 $10,563 $16,087 $36,845 $66,865 
    Earnings per share - Basic 0.46  0.38  0.61  1.34  3.33 
    Earnings per share - Diluted 0.46  0.38  0.61  1.34  3.33 
                    
    C Corp equivalent net income (1) N/A  N/A $15,088  N/A $53,372 
    C Corp equivalent earnings per share - Basic (1) N/A  N/A  0.58  N/A  2.66 
    C Corp equivalent earnings per share - Diluted (1) N/A  N/A  0.58  N/A  2.66 
                    
    Book value per share$13.25 $12.94 $12.12       
                    
    Ending number shares of common stock outstanding 27,457,306  27,457,306  27,457,306       
    Weighted average shares of common stock outstanding 27,457,306  27,457,306  26,211,282  27,457,306  20,090,270 
                    
    SUMMARY RATIOS               
    Net interest margin * 3.31% 3.39% 4.09% 3.54% 4.31%
    Efficiency ratio 55.54  56.98  50.72  59.66  53.80 
    Loan to deposit ratio 71.78  75.57  77.92       
                    
    Return on average assets * 1.38% 1.20% 1.96% 1.07% 2.07%
    Return on average stockholders' equity * 14.00  11.83  19.24  10.51  19.58 
                    
    C Corp equivalent return on average assets * (1) N/A  N/A  1.84% N/A  1.65%
    C Corp equivalent return on average stockholders' equity * (1) N/A  N/A  18.04  N/A  15.63 
                    
    NON-GAAP FINANCIAL MEASURES               
    Adjusted net income (2)$12,382 $10,755 $14,417 $39,734 $57,427 
    Adjusted earnings per share - Basic (2) 0.45  0.39  0.55  1.44  2.86 
    Adjusted earnings per share - Diluted (2) 0.45  0.39  0.55  1.44  2.86 
                    
    Tangible book value per share (2)$12.29 $11.97 $11.12       
                    
    Net interest margin (tax equivalent basis) * (2) 3.36% 3.45% 4.16% 3.60% 4.38%
    Efficiency ratio (tax equivalent basis) (2) 54.86  56.27  50.10  58.91  53.06 
                    
    Adjusted return on average assets * (2) 1.36% 1.22% 1.75% 1.15% 1.78%
    Adjusted return on average stockholders' equity * (2) 13.71  12.04  17.24  11.33  16.81 
                    
    Return on average tangible common equity * (2) 15.12% 12.80% 21.00% 11.38% 21.35%
    C Corp equivalent return on average tangible common equity * (1) (2) N/A  N/A  19.69  N/A  17.04 
    Adjusted return on average tangible common equity * (2) 14.81  13.03  18.82  12.28  18.34 


     *Annualized measure.
    (1)Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent income tax expense for such period. No such adjustment is necessary for periods subsequent to 2019.
    (2)See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.
    N/A  Not applicable. 



    Reconciliation of Non-GAAP Financial Measures –
    Adjusted Net Income and Adjusted Return on Average Assets

     Three Months Ended  Year Ended  
     December 31,  September 30,  December 31,  December 31,  
     2020  2020  2019  2020  2019  
                    
     (dollars in thousands) 
    Net income$12,642  $10,563  $16,087  $36,845  $66,865  
    C Corp equivalent adjustment (2) —   —   (999)  —   (13,493) 
    C Corp equivalent net income (2) 12,642   10,563   15,088   36,845   53,372  
    Adjustments:               
    Net earnings (losses) from closed or sold operations, including gains on sale (1) —   —   (9)  —   524  
    Charges related to termination of certain employee benefit plans —   —   365   (1,457)  (3,796) 
    Mortgage servicing rights fair value adjustment 363   (268)  582   (2,584)  (2,400) 
    Total adjustments 363   (268)  938   (4,041)  (5,672) 
    Tax effect of adjustments (103)  76   (267)  1,152   1,617  
    Less adjustments after tax effect 260   (192)  671   (2,889)  (4,055) 
    Adjusted net income$12,382  $10,755  $14,417  $39,734  $57,427  
                    
    Average assets$3,633,587  $3,512,691  $3,261,273  $3,447,500  $3,233,386  
                    
    Return on average assets * 1.38 % 1.20 % 1.96 % 1.07   2.07 %
    C Corp equivalent return on average assets * (2) N/A   N/A   1.84   N/A   1.65  
    Adjusted return on average assets * 1.36   1.22   1.75   1.15   1.78  


    *Annualized measure.
    (1)Closed or sold operations include HB Credit Company, HBT Insurance, and First Community Title Services, Inc.
    (2)Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent income tax expense for such period. No such adjustment is necessary for periods subsequent to 2019.
    N/A  Not applicable. 



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

     Three Months Ended  Year Ended
     December 31,  September 30,  December 31,  December 31, 
     2020  2020  2019 2020  2019
                 
     (dollars in thousands, except per share amounts)
    Numerator:              
    Net income$12,642  $10,563  $16,087 $36,845  $66,865
    Earnings allocated to unvested restricted stock units (1) (31)  (28)  —  (93)  —
    Numerator for earnings per share - basic and diluted$12,611  $10,535  $16,087 $36,752  $66,865
                   
    C Corp equivalent net income (3) N/A   N/A  $15,088  N/A  $53,372
    Earnings allocated to unvested restricted stock units (1) (3) N/A   N/A   —  N/A   —
    Numerator for C Corp equivalent earnings per share - basic and diluted (3) N/A   N/A  $15,088  N/A  $53,372
                   
    Adjusted net income$12,382  $10,755  $14,417 $39,734  $57,427
    Earnings allocated to unvested restricted stock units (1) (32)  (28)  —  (101)  —
    Numerator for adjusted earnings per share - basic and diluted$12,350  $10,727  $14,417 $39,633  $57,427
                   
    Denominator:              
    Weighted average common shares outstanding 27,457,306   27,457,306   26,211,282  27,457,306   20,090,270
    Dilutive effect of outstanding restricted stock units (2) —   —   —  —   —
    Weighted average common shares outstanding, including all dilutive potential shares 27,457,306   27,457,306   26,211,282  27,457,306   20,090,270
                   
    Earnings per share - Basic$0.46  $0.38  $0.61 $1.34  $3.33
    Earnings per share - Diluted$0.46  $0.38  $0.61 $1.34  $3.33
                   
    C Corp equivalent earnings per share - Basic (3) N/A   N/A  $0.58  N/A  $2.66
    C Corp equivalent earnings per share - Diluted (3) N/A   N/A  $0.58  N/A  $2.66
                   
    Adjusted earnings per share - Basic$0.45  $0.39  $0.55 $1.44  $2.86
    Adjusted earnings per share - Diluted$0.45  $0.39  $0.55 $1.44  $2.86


    (1)The Company has granted 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.
    (2)Restricted stock units were anti-dilutive and excluded from the calculation of common stock equivalents during the three months ended December 31, 2020 and September 30, 2020 and during the year ended December 31, 2020. There were no restricted stock units outstanding during the three months and year ended December 31, 2019.
    (3)Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent income tax expense for such period. No such adjustment is necessary for periods subsequent to 2019.
    N/A  Not applicable. 



    Reconciliation of Non-GAAP Financial Measures –
    Net Interest Margin (Tax Equivalent Basis)

     Three Months Ended  Year Ended  
     December 31,  September 30,  December 31,  December 31,  
     2020 2020 2019 2020 2019 
               
     (dollars in thousands) 
    Net interest income (tax equivalent basis)               
    Net interest income$29,164 $28,871 $32,276 $117,605 $133,800 
    Tax-equivalent adjustment (1) 502  495  534  1,943  2,309 
    Net interest income (tax equivalent basis) (1)$29,666 $29,366 $32,810 $119,548 $136,109 
                    
    Net interest margin (tax equivalent basis)               
    Net interest margin * 3.31% 3.39% 4.09% 3.54% 4.31%
    Tax-equivalent adjustment * (1) 0.05  0.06  0.07  0.06  0.07 
    Net interest margin (tax equivalent basis) * (1) 3.36% 3.45% 4.16% 3.60% 4.38%
                    
    Average interest-earning assets$3,508,128 $3,385,466 $3,131,078 $3,318,764 $3,105,863 


    *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  Year Ended  
     December 31,  September 30,  December 31,  December 31,  
     2020 2020 2019 2020 2019 
               
     (dollars in thousands) 
    Efficiency ratio (tax equivalent basis)               
    Total noninterest expense$22,665 $22,485 $21,950 $91,956 $91,026 
    Less: amortization of intangible assets 305  305  336  1,232  1,423 
    Adjusted noninterest expense$22,360 $22,180 $21,614 $90,724 $89,603 
                    
    Net interest income$29,164 $28,871 $32,276 $117,605 $133,800 
    Total noninterest income 11,092  10,052  10,336  34,456  32,751 
    Operating revenue 40,256  38,923  42,612  152,061  166,551 
    Tax-equivalent adjustment (1) 502  495  534  1,943  2,309 
    Operating revenue (tax equivalent basis) (1)$40,758 $39,418 $43,146 $154,004 $168,860 
                    
    Efficiency ratio 55.54% 56.98% 50.72% 59.66% 53.80%
    Efficiency ratio (tax equivalent basis) (1) 54.86  56.27  50.10  58.91  53.06 


    (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

     December 31,  September 30,  December 31,  
     2020 2020 2019 
           
     (dollars in thousands) 
    Tangible Common Equity         
    Total stockholders' equity$363,917 $355,294 $332,918 
    Less: Goodwill 23,620  23,620  23,620 
    Less: Core deposit intangible assets, net 2,798  3,103  4,030 
    Tangible common equity$337,499 $328,571 $305,268 
              
    Tangible assets         
    Total assets$3,666,567 $3,535,223 $3,245,103 
    Less: Goodwill 23,620  23,620  23,620 
    Less: Core deposit intangible assets, net 2,798  3,103  4,030 
    Tangible assets$3,640,149 $3,508,500 $3,217,453 
              
    Total stockholders' equity to total assets 9.93% 10.05% 10.26%
    Tangible common equity to tangible assets 9.27  9.36  9.49 
              
    Ending number shares of common stock outstanding 27,457,306  27,457,306  27,457,306 
              
    Book value per share$13.25 $12.94 $12.12 
    Tangible book value per share 12.29  11.97  11.12 



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

     Three Months Ended  Year Ended  
     December 31,  September 30,  December 31,  December 31,  
     2020 2020 2019 2020 2019 
               
     (dollars in thousands) 
    Average Tangible Common Equity               
    Total stockholders' equity$359,312 $355,296 $331,784 $350,703 $341,544 
    Less: Goodwill 23,620  23,620  23,620  23,620  23,620 
    Less: Core deposit intangible assets, net 2,979  3,284  4,224  3,436  4,748 
    Average tangible common equity$332,713 $328,392 $303,940 $323,647 $313,176 
                    
    Net income$12,642 $10,563 $16,087 $36,845 $66,865 
    C Corp equivalent net income (1) N/A  N/A  15,088  N/A  53,372 
    Adjusted net income 12,382  10,755  14,417  39,734  57,427 
                    
    Return on average stockholders' equity * 14.00% 11.83% 19.24% 10.51% 19.58%
    C Corp equivalent return on average stockholders' equity * (1) N/A  N/A  18.04  N/A  15.63 
    Adjusted return on average stockholders' equity * 13.71  12.04  17.24  11.33  16.81 
                    
    Return on average tangible common equity * 15.12% 12.80% 21.00% 11.38% 21.35%
    C Corp equivalent return on average tangible common equity * (1) N/A  N/A  19.69  N/A  17.04 
    Adjusted return on average tangible common equity * 14.81  13.03  18.82  12.28  18.34 


     *Annualized measure.
    (1)Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent income tax expense for such period. No such adjustment is necessary for periods subsequent to 2019.
    N/A  Not applicable.


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