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HBT Financial, Inc. Announces First Quarter 2022 Financial Results

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HBT Financial, Inc.
HBT Financial, Inc.

First Quarter Highlights

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

  • Adjusted net income(1) of $12.2 million; or $0.42 per diluted share; adjusted ROAA(1) of 1.14%; adjusted ROAE(1) of 12.20%; and adjusted ROATCE(1) of 13.22%

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

BLOOMINGTON, Ill., April 25, 2022 (GLOBE NEWSWIRE) -- HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $13.6 million, or $0.47 diluted earnings per share, for the first quarter of 2022. This compares to net income of $13.6 million, or $0.47 diluted earnings per share, for the fourth quarter of 2021, and net income of $15.2 million, or $0.55 diluted earnings per share, for the first quarter of 2021.

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

Adjusted Net Income

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

Net Interest Income and Net Interest Margin

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

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

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

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

Noninterest Income

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

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

Noninterest Expense

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

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

Loan Portfolio

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

Deposits

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

Asset Quality

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

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

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

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

Capital

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

Well Capitalized

Regulatory

March 31, 2022

Requirements

Total capital to risk-weighted assets

16.86

%

10.00

%

Tier 1 capital to risk-weighted assets

14.66

%

8.00

%

Common equity tier 1 capital ratio

13.40

%

6.50

%

Tier 1 leverage ratio

9.83

%

5.00

%

Total stockholders' equity to total assets

8.81

%

N/A

Tangible common equity to tangible assets (1)

8.16

%

N/A


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

Stock Repurchase Program

During the first quarter of 2022, the Company repurchased 50,062 shares of its common stock at a weighted average price of $18.84 under its stock repurchase program. The Company’s Board of Directors authorized the repurchase of up to $15 million of its common stock under its stock repurchase program in effect until January 1, 2023. As of March 31, 2022, the Company had $14.1 million remaining under the current stock repurchase authorization.

About HBT Financial, Inc.

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

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), tangible common equity to tangible assets, tangible book value per share, adjusted net income, adjusted return on average assets, adjusted return on average stockholders' equity, and adjusted return on average tangible common equity. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the "Reconciliation of Non-GAAP Financial Measures" tables.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release contains, and future oral and written statements of the Company and its management may contain, "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe" or "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

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

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


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

Three Months Ended

March 31,

December 31,

March 31,

2022

2021

2021

INTEREST AND DIVIDEND INCOME

(dollars in thousands, except per share data)

Loans, including fees:

Taxable

$

26,806

$

27,884

$

25,134

Federally tax exempt

662

662

610

Securities:

Taxable

4,649

4,625

3,633

Federally tax exempt

1,040

1,017

1,136

Interest-bearing deposits in bank

159

142

80

Other interest and dividend income

19

25

13

Total interest and dividend income

33,335

34,355

30,606

INTEREST EXPENSE

Deposits

569

651

644

Securities sold under agreements to repurchase

9

11

7

Borrowings

1

7

1

Subordinated notes

470

470

470

Junior subordinated debentures issued to capital trusts

358

357

355

Total interest expense

1,407

1,496

1,477

Net interest income

31,928

32,859

29,129

PROVISION FOR LOAN LOSSES

(584

)

(843

)

(3,405

)

Net interest income after provision for loan losses

32,512

33,702

32,534

NONINTEREST INCOME

Card income

2,404

2,518

2,258

Wealth management fees

2,289

2,371

1,972

Service charges on deposit accounts

1,652

1,716

1,297

Mortgage servicing

658

730

685

Mortgage servicing rights fair value adjustment

1,729

265

1,695

Gains on sale of mortgage loans

587

927

2,100

Gains (losses) on securities

(187

)

33

40

Gains (losses) on foreclosed assets

40

184

(76

)

Gains (losses) on other assets

193

(4

)

1

Income on bank owned life insurance

40

41

Other noninterest income

638

573

836

Total noninterest income

10,043

9,354

10,808

NONINTEREST EXPENSE

Salaries

12,992

12,578

12,596

Employee benefits

2,499

2,017

1,722

Occupancy of bank premises

2,060

1,777

1,938

Furniture and equipment

552

793

623

Data processing

1,653

2,153

1,688

Marketing and customer relations

851

1,085

565

Amortization of intangible assets

245

255

289

FDIC insurance

288

280

240

Loan collection and servicing

157

219

365

Foreclosed assets

132

204

143

Other noninterest expense

2,728

3,020

2,375

Total noninterest expense

24,157

24,381

22,544

INCOME BEFORE INCOME TAX EXPENSE

18,398

18,675

20,798

INCOME TAX EXPENSE

4,794

5,081

5,553

NET INCOME

$

13,604

$

13,594

$

15,245

EARNINGS PER SHARE - BASIC

$

0.47

$

0.47

$

0.55

EARNINGS PER SHARE - DILUTED

$

0.47

$

0.47

$

0.55

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING

28,986,593

29,036,164

27,430,912


HBT Financial, Inc.
Consolidated Financial Summary
Consolidated Balance Sheets

March 31,

December 31,

March 31,

2022

2021

2021

(dollars in thousands)

ASSETS

Cash and due from banks

$

30,761

$

23,387

$

22,976

Interest-bearing deposits with banks

328,218

385,881

406,760

Cash and cash equivalents

358,979

409,268

429,736

Interest-bearing time deposits with banks

487

490

Debt securities available-for-sale, at fair value

933,922

942,168

856,835

Debt securities held-to-maturity

438,054

336,185

192,994

Equity securities with readily determinable fair value

3,256

3,443

3,332

Equity securities with no readily determinable fair value

1,927

1,927

1,552

Restricted stock, at cost

2,739

2,739

2,498

Loans held for sale

1,777

4,942

12,882

Loans, before allowance for loan losses

2,487,785

2,499,689

2,270,705

Allowance for loan losses

(24,508

)

(23,936

)

(28,759

)

Loans, net of allowance for loan losses

2,463,277

2,475,753

2,241,946

Bank owned life insurance

7,433

7,393

Bank premises and equipment, net

52,005

52,483

52,548

Bank premises held for sale

1,081

1,452

121

Foreclosed assets

3,043

3,278

4,748

Goodwill

29,322

29,322

23,620

Core deposit intangible assets, net

1,698

1,943

2,509

Mortgage servicing rights, at fair value

9,723

7,994

7,629

Investments in unconsolidated subsidiaries

1,165

1,165

1,165

Accrued interest receivable

13,527

14,901

12,718

Other assets

25,550

17,408

18,781

Total assets

$

4,348,965

$

4,314,254

$

3,865,614

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Deposits:

Noninterest-bearing

$

1,069,231

$

1,087,659

$

968,991

Interest-bearing

2,746,838

2,650,526

2,386,975

Total deposits

3,816,069

3,738,185

3,355,966

Securities sold under agreements to repurchase

50,834

61,256

41,976

Subordinated notes

39,336

39,316

39,257

Junior subordinated debentures issued to capital trusts

37,731

37,714

37,665

Other liabilities

21,840

25,902

33,344

Total liabilities

3,965,810

3,902,373

3,508,208

Stockholders' Equity

Common stock

293

293

275

Surplus

221,735

220,891

191,004

Retained earnings

203,076

194,132

165,735

Accumulated other comprehensive income (loss)

(36,100

)

1,471

1,906

Treasury stock at cost

(5,849

)

(4,906

)

(1,514

)

Total stockholders’ equity

383,155

411,881

357,406

Total liabilities and stockholders’ equity

$

4,348,965

$

4,314,254

$

3,865,614

SHARE INFORMATION

Shares of common stock outstanding

28,967,943

28,986,061

27,382,069


HBT Financial, Inc.
Consolidated Financial Summary

March 31,

December 31,

March 31,

2022

2021

2021

(dollars in thousands)

LOANS

Commercial and industrial

$

291,909

$

286,946

$

412,812

Agricultural and farmland

232,528

247,796

228,032

Commercial real estate - owner occupied

237,000

234,544

224,599

Commercial real estate - non-owner occupied

687,617

684,023

516,963

Multi-family

243,447

263,911

236,381

Construction and land development

320,030

298,048

215,375

One-to-four family residential

327,791

327,837

300,768

Municipal, consumer, and other

147,463

156,584

135,775

Loans, before allowance for loan losses

$

2,487,785

$

2,499,689

$

2,270,705

PPP LOANS (included above)

Commercial and industrial

$

16,184

$

28,404

$

175,389

Agricultural and farmland

392

913

8,921

Municipal, consumer, and other

171

6,249

Total PPP Loans

$

16,576

$

29,488

$

190,559


March 31,

December 31,

March 31,

2022

2021

2021

(dollars in thousands)

DEPOSITS

Noninterest-bearing

$

1,069,231

$

1,087,659

$

968,991

Interest-bearing demand

1,167,058

1,105,949

1,008,954

Money market

597,464

583,198

499,088

Savings

687,147

633,171

593,472

Time

295,169

328,208

285,461

Total deposits

$

3,816,069

$

3,738,185

$

3,355,966


HBT Financial, Inc.
Consolidated Financial Summary

Three Months Ended

March 31, 2022

December 31, 2021

March 31, 2021

Average
Balance

Interest

Yield/Cost*

Average
Balance

Interest

Yield/Cost*

Average
Balance

Interest

Yield/Cost*

(dollars in thousands)

ASSETS

Loans

$

2,507,006

$

27,468

4.44

%

$

2,432,025

$

28,546

4.66

%

$

2,284,159

$

25,744

4.57

%

Securities

1,321,918

5,689

1.75

1,285,672

5,642

1.74

1,004,877

4,769

1.92

Deposits with banks

370,130

159

0.17

392,729

142

0.14

345,915

80

0.09

Other

2,739

19

2.80

4,821

25

2.10

2,498

13

2.04

Total interest-earning assets

4,201,793

$

33,335

3.22

%

4,115,247

$

34,355

3.31

%

3,637,449

$

30,606

3.41

%

Allowance for loan losses

(24,099

)

(24,826

)

(31,856

)

Noninterest-earning assets

165,752

176,242

155,622

Total assets

$

4,343,446

$

4,266,663

$

3,761,215

LIABILITIES AND STOCKHOLDERS'
EQUITY

Liabilities

Interest-bearing deposits:

Interest-bearing demand

$

1,143,829

$

142

0.05

%

$

1,061,481

$

145

0.05

%

$

997,720

$

117

0.05

%

Money market

598,271

121

0.08

589,396

158

0.11

482,385

89

0.07

Savings

649,563

50

0.03

630,489

53

0.03

541,896

41

0.03

Time

310,675

256

0.33

322,800

295

0.36

294,172

397

0.55

Total interest-bearing deposits

2,702,338

569

0.09

2,604,166

651

0.10

2,316,173

644

0.11

Securities sold under agreements to
repurchase

53,054

9

0.07

56,861

11

0.08

46,348

7

0.06

Borrowings

500

1

0.71

5,309

7

0.57

500

1

0.44

Subordinated notes

39,325

470

4.84

39,305

470

4.74

39,245

470

4.85

Junior subordinated debentures issued to
capital trusts

37,721

358

3.85

37,704

357

3.76

37,655

355

3.83

Total interest-bearing liabilities

2,832,938

$

1,407

0.20

%

2,743,345

$

1,496

0.22

%

2,439,921

$

1,477

0.25

%

Noninterest-bearing deposits

1,077,917

1,087,468

920,514

Noninterest-bearing liabilities

26,302

25,660

37,223

Total liabilities

3,937,157

3,856,473

3,397,658

Stockholders' Equity

406,289

410,190

363,557

Total liabilities and stockholders’
equity

$

4,343,446

$

4,266,663

$

3,761,215

Net interest income/Net interest margin (1)

$

31,928

3.08

%

$

32,859

3.17

%

$

29,129

3.25

%

Tax-equivalent adjustment (2)

529

0.05

514

0.05

503

0.05

Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)

$

32,457

3.13

%

$

33,373

3.22

%

$

29,632

3.30

%

Net interest rate spread (4)

3.02

%

3.09

%

3.16

%

Net interest-earning assets (5)

$

1,368,855

$

1,371,902

$

1,197,528

Ratio of interest-earning assets to interest-
bearing liabilities

1.48

1.50

1.49

Cost of total deposits

0.06

%

0.07

%

0.08

%

________________________
* Annualized measure.
(1) Net interest margin represents net interest income divided by average total interest-earning assets.
(2) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable
GAAP financial measures.
(4) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.


HBT Financial, Inc.
Consolidated Financial Summary

March 31,

December 31,

March 31,

2022

2021

2021

(dollars in thousands)

NONPERFORMING ASSETS

Nonaccrual

$

2,461

$

2,763

$

9,106

Past due 90 days or more, still accruing (1)

8

16

10

Total nonperforming loans

2,469

2,779

9,116

Foreclosed assets

3,043

3,278

4,748

Total nonperforming assets

$

5,512

$

6,057

$

13,864

Allowance for loan losses

$

24,508

$

23,936

$

28,759

Loans, before allowance for loan losses

2,487,785

2,499,689

2,270,705

CREDIT QUALITY RATIOS

Allowance for loan losses to loans, before allowance for loan losses

0.99

%

0.96

%

1.27

%

Allowance for loan losses to nonaccrual loans

995.86

866.30

315.82

Allowance for loan losses to nonperforming loans

992.63

861.32

315.48

Nonaccrual loans to loans, before allowance for loan losses

0.10

0.11

0.40

Nonperforming loans to loans, before allowance for loan losses

0.10

0.11

0.40

Nonperforming assets to total assets

0.13

0.14

0.36

Nonperforming assets to loans, before allowance for loan losses and foreclosed
assets

0.22

0.24

0.61

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


Three Months Ended

March 31,

December 31,

March 31,

2022

2021

2021

ALLOWANCE FOR LOAN LOSSES

(dollars in thousands)

Beginning balance

$

23,936

$

24,861

$

31,838

Provision

(584

)

(843

)

(3,405

)

Charge-offs

(134

)

(539

)

(195

)

Recoveries

1,290

457

521

Ending balance

$

24,508

$

23,936

$

28,759

Net charge-offs (recoveries)

$

(1,156

)

$

82

$

(326

)

Average loans, before allowance for loan losses

2,507,006

2,432,025

2,284,159

Net charge-offs (recoveries) to average loans, before allowance for loan losses *

(0.19

)

%

0.01

%

(0.06

)

%

________________________
* Annualized measure.


HBT Financial, Inc.
Consolidated Financial Summary

As of or for the Three Months Ended

March 31,

December 31,

March 31,

2022

2021

2021

(dollars in thousands, except per share data)

EARNINGS AND PER SHARE INFORMATION

Net income

$

13,604

$

13,594

$

15,245

Earnings per share - Basic

0.47

0.47

0.55

Earnings per share - Diluted

0.47

0.47

0.55

Adjusted net income (1)

$

12,227

$

14,160

$

14,033

Adjusted earnings per share - Basic (1)

0.42

0.49

0.51

Adjusted earnings per share - Diluted (1)

0.42

0.49

0.51

Book value per share

$

13.23

$

14.21

$

13.05

Tangible book value per share (1)

12.16

13.13

12.10

Shares of common stock outstanding

28,967,943

28,986,061

27,382,069

Weighted average shares of common stock outstanding

28,986,593

29,036,164

27,430,912

SUMMARY RATIOS

Net interest margin *

3.08

%

3.17

%

3.25

%

Net interest margin (tax equivalent basis) * (1)(2)

3.13

3.22

3.30

Efficiency ratio

56.97

%

57.15

%

55.73

%

Efficiency ratio (tax equivalent basis) (1)(2)

56.26

56.47

55.03

Loan to deposit ratio

65.19

%

66.87

%

67.66

%

Return on average assets *

1.27

%

1.26

%

1.64

%

Return on average stockholders' equity *

13.58

13.15

17.01

Return on average tangible common equity * (1)

14.71

14.24

18.33

Adjusted return on average assets * (1)

1.14

%

1.32

%

1.51

%

Adjusted return on average stockholders' equity * (1)

12.20

13.70

15.65

Adjusted return on average tangible common equity * (1)

13.22

14.83

16.88

________________________
* Annualized measure.
(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
(2) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.


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

Three Months Ended

March 31,

December 31,

March 31,

2022

2021

2021

(dollars in thousands)

Net income

$

13,604

$

13,594

$

15,245

Adjustments:

Acquisition expenses

(879

)

Gains (losses) on sales of closed branch premises

197

Mortgage servicing rights fair value adjustment

1,729

265

1,695

Total adjustments

1,926

(614

)

1,695

Tax effect of adjustments

(549

)

48

(483

)

Less adjustments, after tax effect

1,377

(566

)

1,212

Adjusted net income

$

12,227

$

14,160

$

14,033

Average assets

$

4,343,446

$

4,266,663

$

3,761,215

Return on average assets *

1.27

%

1.26

%

1.64

%

Adjusted return on average assets *

1.14

1.32

1.51

________________________
* Annualized measure.


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

Three Months Ended

March 31,

December 31,

March 31,

2022

2021

2021

(dollars in thousands, except per share data)

Numerator:

Net income

$

13,604

$

13,594

$

15,245

Earnings allocated to participating securities (1)

(17

)

(23

)

(31

)

Numerator for earnings per share - basic and diluted

$

13,587

$

13,571

$

15,214

Adjusted net income

$

12,227

$

14,160

$

14,033

Earnings allocated to participating securities (1)

(15

)

(24

)

(28

)

Numerator for adjusted earnings per share - basic and diluted

$

12,212

$

14,136

$

14,005

Denominator:

Weighted average common shares outstanding

28,986,593

29,036,164

27,430,912

Dilutive effect of outstanding restricted stock units

43,646

27,577

2,489

Weighted average common shares outstanding, including all dilutive potential
shares

29,030,239

29,063,741

27,433,401

Earnings per share - Basic

$

0.47

$

0.47

$

0.55

Earnings per share - Diluted

$

0.47

$

0.47

$

0.55

Adjusted earnings per share - Basic

$

0.42

$

0.49

$

0.51

Adjusted earnings per share - Diluted

$

0.42

$

0.49

$

0.51

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


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

Three Months Ended

March 31,

December 31,

March 31,

2022

2021

2021

(dollars in thousands)

Net interest income (tax equivalent basis)

Net interest income

$

31,928

$

32,859

$

29,129

Tax-equivalent adjustment (1)

529

514

503

Net interest income (tax equivalent basis) (1)

$

32,457

$

33,373

$

29,632

Net interest margin (tax equivalent basis)

Net interest margin *

3.08

%

3.17

%

3.25

%

Tax-equivalent adjustment * (1)

0.05

0.05

0.05

Net interest margin (tax equivalent basis) * (1)

3.13

%

3.22

%

3.30

%

Average interest-earning assets

$

4,201,793

$

4,115,247

$

3,637,449

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


Reconciliation of Non-GAAP Financial Measures –
Efficiency Ratio (Tax Equivalent Basis)

Three Months Ended

March 31,

December 31,

March 31,

2022

2021

2021

(dollars in thousands)

Efficiency ratio (tax equivalent basis)

Total noninterest expense

$

24,157

$

24,381

$

22,544

Less: amortization of intangible assets

245

255

289

Adjusted noninterest expense

$

23,912

$

24,126

$

22,255

Net interest income

$

31,928

$

32,859

$

29,129

Total noninterest income

10,043

9,354

10,808

Operating revenue

41,971

42,213

39,937

Tax-equivalent adjustment (1)

529

514

503

Operating revenue (tax equivalent basis) (1)

$

42,500

$

42,727

$

40,440

Efficiency ratio

56.97

%

57.15

%

55.73

%

Efficiency ratio (tax equivalent basis) (1)

56.26

56.47

55.03

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


Reconciliation of Non-GAAP Financial Measures –
Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share

March 31,

December 31,

March 31,

2022

2021

2021

(dollars in thousands, except per share data)

Tangible common equity

Total stockholders' equity

$

383,155

$

411,881

$

357,406

Less: Goodwill

29,322

29,322

23,620

Less: Core deposit intangible assets, net

1,698

1,943

2,509

Tangible common equity

$

352,135

$

380,616

$

331,277

Tangible assets

Total assets

$

4,348,965

$

4,314,254

$

3,865,614

Less: Goodwill

29,322

29,322

23,620

Less: Core deposit intangible assets, net

1,698

1,943

2,509

Tangible assets

$

4,317,945

$

4,282,989

$

3,839,485

Total stockholders' equity to total assets

8.81

%

9.55

%

9.25

%

Tangible common equity to tangible assets

8.16

8.89

8.63

Shares of common stock outstanding

28,967,943

28,986,061

27,382,069

Book value per share

$

13.23

$

14.21

$

13.05

Tangible book value per share

12.16

13.13

12.10


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

Three Months Ended

March 31,

December 31,

March 31,

2022

2021

2021

(dollars in thousands)

Average tangible common equity

Total stockholders' equity

$

406,289

$

410,190

$

363,557

Less: Goodwill

29,322

29,322

23,620

Less: Core deposit intangible assets, net

1,844

2,092

2,686

Average tangible common equity

$

375,123

$

378,776

$

337,251

Net income

$

13,604

$

13,594

$

15,245

Adjusted net income

12,227

14,160

14,033

Return on average stockholders' equity *

13.58

%

13.15

%

17.01

%

Return on average tangible common equity *

14.71

14.24

18.33

Adjusted return on average stockholders' equity *

12.20

%

13.70

%

15.65

%

Adjusted return on average tangible common equity *

13.22

14.83

16.88

________________________
* Annualized measure.


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