HBT Financial, Inc. Announces First Quarter 2024 Financial Results

HBT Financial, Inc.
HBT Financial, Inc.

First Quarter Highlights

  • Net income of $15.3 million, or $0.48 per diluted share; return on average assets (“ROAA”) of 1.23%; return on average stockholders' equity (“ROAE”) of 12.42%; and return on average tangible common equity (“ROATCE”)(1) of 14.83%

  • Adjusted net income(1) of $18.1 million; or $0.57 per diluted share; adjusted ROAA(1) of 1.45%; adjusted ROAE(1) of 14.72%; and adjusted ROATCE(1) of 17.57%

  • Asset quality remained strong with nonperforming assets to total assets of 0.20%, close to a historic low

  • Net interest margin and net interest margin (tax-equivalent basis)(1) remained stable at 3.94% and 3.99%, respectively

BLOOMINGTON, Ill., April 22, 2024 (GLOBE NEWSWIRE) -- HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $15.3 million, or $0.48 diluted earnings per share, for the first quarter of 2024. This compares to net income of $18.4 million, or $0.58 diluted earnings per share, for the fourth quarter of 2023, and net income of $9.2 million, or $0.30 diluted earnings per share, for the first quarter of 2023.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “This has been an excellent start to 2024 as we continue to show the strength of our franchise. Our profitability remained very strong with an adjusted ROAA(1) of 1.45% and an adjusted ROATCE(1) of 17.57%. Our net interest margin (tax-equivalent basis)(1) was stable at 3.99%, as the increase in funding costs has slowed. Deposits, excluding brokered deposits, increased slightly during the quarter while loans had a small decline. The decrease in loans included the payoff of several loans that had interest rates lower than the current yield on cash, so it did not have a material impact on profitability. Credit quality has remained strong, as evidenced by a net recovery for the quarter and nonperforming loans to total assets still being near a historic low. Despite an increase in interest rates having a negative impact on accumulated other comprehensive income (loss) during the quarter, we saw increases to all capital ratios and an increase to tangible book value per share(1) by $0.29. Tangible book value per share(1) has now grown by $1.74, or 15.2%, since March 31, 2023.”
____________________________________
(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

Adjusted Net Income

In addition to reporting GAAP results, the Company believes non-GAAP measures such as adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on closed branch premises, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the first quarter of 2024. This compares to adjusted net income of $19.3 million, or $0.60 adjusted diluted earnings per share, for the fourth quarter of 2023, and adjusted net income of $19.9 million, or $0.64 adjusted diluted earnings per share, for the first quarter of 2023 (see “Reconciliation of Non-GAAP Financial Measures” tables below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures).

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2024 was $46.7 million, a decrease of 0.8% from $47.1 million for the fourth quarter of 2023. The slight decrease was primarily attributable to an increase in funding costs, which were partially offset by an increase in asset yields. The increase in asset yields was primarily driven by higher cash balances following the sale of $66.8 million of municipal securities as well as higher loan yields. The book yield of the securities sold was 1.87% and the average life was 6.7 years.

Relative to the first quarter of 2023, net interest income decreased 0.3% from $46.8 million. The slight decrease was primarily attributable to an increase in funding costs, which were mostly offset by higher interest-earning asset balances following the Town and Country Financial Corporation (“Town and Country”) merger, which closed on February 1, 2023, and higher yields on interest-earning assets.

Net interest margin for the first quarter of 2024 was 3.94%, compared to 3.93% for the fourth quarter of 2023, and net interest margin (tax-equivalent basis)(1) for the first quarter of 2024 was 3.99%, unchanged from the fourth quarter of 2023. Higher yields on interest-earning assets were offset by higher funding costs with the cost of funds increasing to 1.37% for the first quarter of 2024, compared to 1.26% for the fourth quarter of 2023.

Relative to the first quarter of 2023, net interest margin decreased from 4.20% and net interest margin (tax-equivalent basis)(1) decreased from 4.26%. These decreases were primarily attributable to increases in funding costs outpacing increases in interest-earning asset yields.
____________________________________
(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

Noninterest Income

Noninterest income for the first quarter of 2024 was $5.6 million, a decrease of 38.9% from $9.2 million for the fourth quarter of 2023. The decrease was primarily attributable to $3.4 million in realized losses on the sale of securities during the first quarter of 2024 and $0.6 million of impairment losses on bank premises related to the closure of two branch premises now held for sale. Partially offsetting these losses were changes in the mortgage servicing rights fair value adjustment, with a $0.1 million positive fair value adjustment during the first quarter of 2024 compared to a $1.2 million negative fair value adjustment during the fourth quarter of 2023.

Relative to the first quarter of 2023, noninterest income decreased 24.4% from $7.4 million. The decrease was primarily attributable to the $3.4 million in realized losses on the sales of securities in the first quarter of 2024 compared to $1.0 million in realized losses on the sale of securities in the first quarter of 2023.

Noninterest Expense

Noninterest expense for the first quarter of 2024 was $31.3 million, a 2.9% increase from $30.4 million for the fourth quarter of 2023. The increase was primarily attributable to a $0.9 million increase in salaries, which was impacted by seasonal variations in vacation accruals, annual merit increases that were effective at the beginning of March, and the refresh of annual payroll tax limitations. Additionally, the $0.4 million increase in employee benefit expenses was primarily attributable to higher medical benefit costs.

Relative to the first quarter of 2023, noninterest expense decreased 13.0% from $35.9 million, primarily attributable to the absence of $7.1 million of Town and Country acquisition-related expenses, partially offset by an increase in salaries and benefits expenses.

Acquisition-related expenses recognized during the first quarter of 2023 are summarized below. No Town and Country acquisition-related expenses were recognized subsequent to the second quarter of 2023.

(dollars in thousands)

Three Months Ended
March 31, 2023

 

 

PROVISION FOR CREDIT LOSSES

$

5,924

NONINTEREST EXPENSE

 

Salaries

 

3,518

Data processing

 

1,855

Marketing and customer relations

 

14

Legal fees and other noninterest expense

 

1,753

Total noninterest expense

 

7,140

Total acquisition-related expenses

$

13,064


Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.35 billion at March 31, 2024, compared with $3.40 billion at December 31, 2023 and $3.20 billion at March 31, 2023. The $58.5 million decrease from December 31, 2023 reflected a decrease in line utilization on existing lines of credit by $28.3 million, including $13.2 million drawn by two customers’ lines that paid off shortly after December 31, 2023 and were noted in the previous quarter’s earnings release. Additionally, across the portfolio, early payoffs of loans maturing or repricing beyond 2024 with fixed rates of 4.00% or less totaled $14.4 million. Construction and land development loans decreased by $18.0 million with several completed projects shifting to other loan categories. Although grain elevator loans increased $5.7 million during the first quarter of 2024, seasonal line utilization was significantly lower relative to historical levels.

Deposits

Total deposits were $4.36 billion at March 31, 2024, compared with $4.40 billion at December 31, 2023 and $4.31 billion at March 31, 2023. The $40.9 million decrease from December 31, 2023 was primarily attributable to a $89.1 million decrease in brokered deposits, which was partially offset by the addition of $33.9 million of time deposits from a State of Illinois loan matching program that are a lower cost source of funding.

Asset Quality

Nonperforming loans totaled $9.7 million, or 0.29% of total loans, at March 31, 2024, compared with $7.9 million, or 0.23% of total loans, at December 31, 2023, and $6.5 million, or 0.20% of total loans, at March 31, 2023. Additionally, of the $9.7 million of nonperforming loans held as of March 31, 2024, $2.7 million is either wholly or partially guaranteed by the U.S. government. The $1.8 million increase in nonperforming loans from December 31, 2023 was primarily attributable to the movement of a few commercial and industrial and commercial real estate - owner occupied credits to nonaccrual status.

The Company recorded a provision for credit losses of $0.5 million for the first quarter of 2024. The provision for credit losses primarily reflects a $3.7 million increase in required reserves resulting from changes in qualitative factors, a $2.1 million decrease in required reserves resulting from changes in economic forecasts, a $1.0 million decrease in required reserves driven by a reduction in loan portfolio balances, and a $0.1 million decrease in specific reserve.

The Company had net recoveries of $0.2 million, or 0.02% of average loans on an annualized basis, for the first quarter of 2024, compared to net charge-offs of $0.5 million, or 0.06% of average loans on an annualized basis, for the fourth quarter of 2023, and net recoveries of $0.1 million, or 0.02% of average loans on an annualized basis, for the first quarter of 2023.

The Company’s allowance for credit losses was 1.22% of total loans and 423% of nonperforming loans at March 31, 2024, compared with 1.18% of total loans and 510% of nonperforming loans at December 31, 2023. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $3.8 million as of March 31, 2024, compared with $3.8 million as of December 31, 2023.

Capital

The ratio of tangible common equity to tangible assets(1) increased to 8.40% as of March 31, 2024, from 8.19% as of December 31, 2023, and tangible book value per share(1) increased by $0.29 to $13.19 as of March 31, 2024, when compared to December 31, 2023.

During the first quarter of 2024, the Company repurchased 179,281 shares of its common stock at a weighted average price of $18.93 under its stock repurchase program. The Company’s Board of Directors has authorized the repurchase of up to $15 million of HBT Financial common stock under its stock repurchase program, which is in effect until January 1, 2025. As of March 31, 2024, the Company had $11.6 million remaining under the stock repurchase program.
____________________________________
(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

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 Financial provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa through 66 full-service branches. As of March 31, 2024, HBT Financial had total assets of $5.0 billion, total loans of $3.3 billion, and total deposits of $4.4 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), ratio of tangible common equity to tangible assets, tangible book value per share, ROATCE, adjusted net income, adjusted earnings per share, adjusted ROAA, adjusted ROAE, and adjusted ROATCE. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the “Reconciliation of Non-GAAP Financial Measures” tables.

Forward-Looking Statements

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

Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the Israeli-Palestinian conflict and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (iv) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the recent failures of other banks or as a result of the upcoming 2024 presidential election; (v) changes in interest rates and prepayment rates of the Company’s assets (including the effects of significant rate increases by the Federal Reserve since 2020); (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions and “fintech” companies, and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xix) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company’s financial results, is included in the Company’s filings with the Securities and Exchange Commission.

CONTACT:
Peter Chapman
HBTIR@hbtbank.com
(309) 664-4556


HBT Financial, Inc.
Unaudited Consolidated Financial Summary

 

 

 

As of or for the Three Months Ended

(dollars in thousands, except per share data)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

Interest and dividend income

 

$

61,961

 

 

$

61,411

 

 

$

51,779

 

Interest expense

 

 

15,273

 

 

 

14,327

 

 

 

4,942

 

Net interest income

 

 

46,688

 

 

 

47,084

 

 

 

46,837

 

Provision for credit losses

 

 

527

 

 

 

1,113

 

 

 

6,210

 

Net interest income after provision for credit losses

 

 

46,161

 

 

 

45,971

 

 

 

40,627

 

Noninterest income

 

 

5,626

 

 

 

9,205

 

 

 

7,437

 

Noninterest expense

 

 

31,268

 

 

 

30,387

 

 

 

35,933

 

Income before income tax expense

 

 

20,519

 

 

 

24,789

 

 

 

12,131

 

Income tax expense

 

 

5,261

 

 

 

6,343

 

 

 

2,923

 

Net income

 

$

15,258

 

 

$

18,446

 

 

$

9,208

 

 

 

 

 

 

 

 

Earnings per share - Diluted

 

$

0.48

 

 

$

0.58

 

 

$

0.30

 

 

 

 

 

 

 

 

Adjusted net income (1)

 

$

18,073

 

 

$

19,272

 

 

$

19,859

 

Adjusted earnings per share - Diluted (1)

 

 

0.57

 

 

 

0.60

 

 

 

0.64

 

 

 

 

 

 

 

 

Book value per share

 

$

15.71

 

 

$

15.44

 

 

$

14.02

 

Tangible book value per share (1)

 

 

13.19

 

 

 

12.90

 

 

 

11.45

 

 

 

 

 

 

 

 

Shares of common stock outstanding

 

 

31,612,888

 

 

 

31,695,828

 

 

 

32,095,370

 

Weighted average shares of common stock outstanding

 

 

31,662,954

 

 

 

31,708,381

 

 

 

30,977,204

 

 

 

 

 

 

 

 

SUMMARY RATIOS

 

 

 

 

 

 

Net interest margin *

 

 

3.94

%

 

 

3.93

%

 

 

4.20

%

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

 

 

3.99

 

 

 

3.99

 

 

 

4.26

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

58.41

%

 

 

52.70

%

 

 

65.27

%

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

 

 

57.78

 

 

 

52.09

 

 

 

64.43

 

 

 

 

 

 

 

 

Loan to deposit ratio

 

 

76.73

%

 

 

77.35

%

 

 

74.13

%

 

 

 

 

 

 

 

Return on average assets *

 

 

1.23

%

 

 

1.46

%

 

 

0.78

%

Return on average stockholders' equity *

 

 

12.42

 

 

 

15.68

 

 

 

8.84

 

Return on average tangible common equity * (1)

 

 

14.83

 

 

 

18.96

 

 

 

10.45

 

 

 

 

 

 

 

 

Adjusted return on average assets * (1)

 

 

1.45

%

 

 

1.53

%

 

 

1.69

%

Adjusted return on average stockholders' equity * (1)

 

 

14.72

 

 

 

16.38

 

 

 

19.08

 

Adjusted return on average tangible common equity * (1)

 

 

17.57

 

 

 

19.81

 

 

 

22.55

 

 

 

 

 

 

 

 

CAPITAL

 

 

 

 

 

 

Total capital to risk-weighted assets

 

 

15.79

%

 

 

15.33

%

 

 

15.11

%

Tier 1 capital to risk-weighted assets

 

 

13.77

 

 

 

13.42

 

 

 

13.16

 

Common equity tier 1 capital ratio

 

 

12.44

 

 

 

12.12

 

 

 

11.79

 

Tier 1 leverage ratio

 

 

10.65

 

 

 

10.49

 

 

 

10.29

 

Total stockholders' equity to total assets

 

 

9.85

 

 

 

9.65

 

 

 

8.98

 

Tangible common equity to tangible assets (1)

 

 

8.40

 

 

 

8.19

 

 

 

7.45

 

 

 

 

 

 

 

 

ASSET QUALITY

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans

 

 

(0.02

)%

 

 

0.06

%

 

 

(0.02

)%

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

 

 

1.22

 

 

 

1.18

 

 

 

1.21

 

Nonperforming loans to loans, before allowance for credit losses

 

 

0.29

 

 

 

0.23

 

 

 

0.20

 

Nonperforming assets to total assets

 

 

0.20

 

 

 

0.17

 

 

 

0.20

 

 

Annualized measure.

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


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

 

 

 

Three Months Ended

(dollars in thousands, except per share data)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

INTEREST AND DIVIDEND INCOME

 

 

 

 

 

 

Loans, including fees:

 

 

 

 

 

 

Taxable

 

$

51,926

 

 

$

52,060

 

 

$

42,159

 

Federally tax exempt

 

 

1,094

 

 

 

1,125

 

 

 

952

 

Securities:

 

 

 

 

 

 

Taxable

 

 

6,250

 

 

 

6,377

 

 

 

6,616

 

Federally tax exempt

 

 

597

 

 

 

888

 

 

 

1,197

 

Interest-bearing deposits in bank

 

 

1,952

 

 

 

786

 

 

 

739

 

Other interest and dividend income

 

 

142

 

 

 

175

 

 

 

116

 

Total interest and dividend income

 

 

61,961

 

 

 

61,411

 

 

 

51,779

 

INTEREST EXPENSE

 

 

 

 

 

 

Deposits

 

 

13,593

 

 

 

11,227

 

 

 

2,374

 

Securities sold under agreements to repurchase

 

 

152

 

 

 

148

 

 

 

38

 

Borrowings

 

 

125

 

 

 

1,534

 

 

 

1,297

 

Subordinated notes

 

 

470

 

 

 

470

 

 

 

470

 

Junior subordinated debentures issued to capital trusts

 

 

933

 

 

 

948

 

 

 

763

 

Total interest expense

 

 

15,273

 

 

 

14,327

 

 

 

4,942

 

Net interest income

 

 

46,688

 

 

 

47,084

 

 

 

46,837

 

PROVISION FOR CREDIT LOSSES

 

 

527

 

 

 

1,113

 

 

 

6,210

 

Net interest income after provision for credit losses

 

 

46,161

 

 

 

45,971

 

 

 

40,627

 

NONINTEREST INCOME

 

 

 

 

 

 

Card income

 

 

2,616

 

 

 

2,717

 

 

 

2,658

 

Wealth management fees

 

 

2,547

 

 

 

2,885

 

 

 

2,338

 

Service charges on deposit accounts

 

 

1,869

 

 

 

2,016

 

 

 

1,871

 

Mortgage servicing

 

 

1,055

 

 

 

1,156

 

 

 

1,099

 

Mortgage servicing rights fair value adjustment

 

 

80

 

 

 

(1,155

)

 

 

(624

)

Gains on sale of mortgage loans

 

 

298

 

 

 

401

 

 

 

276

 

Realized gains (losses) on sales of securities

 

 

(3,382

)

 

 

 

 

 

(1,007

)

Unrealized gains (losses) on equity securities

 

 

(16

)

 

 

221

 

 

 

(22

)

Gains (losses) on foreclosed assets

 

 

87

 

 

 

58

 

 

 

(10

)

Gains (losses) on other assets

 

 

(635

)

 

 

5

 

 

 

 

Income on bank owned life insurance

 

 

164

 

 

 

158

 

 

 

115

 

Other noninterest income

 

 

943

 

 

 

743

 

 

 

743

 

Total noninterest income

 

 

5,626

 

 

 

9,205

 

 

 

7,437

 

NONINTEREST EXPENSE

 

 

 

 

 

 

Salaries

 

 

16,657

 

 

 

15,738

 

 

 

19,411

 

Employee benefits

 

 

2,805

 

 

 

2,379

 

 

 

2,335

 

Occupancy of bank premises

 

 

2,582

 

 

 

2,458

 

 

 

2,102

 

Furniture and equipment

 

 

550

 

 

 

655

 

 

 

659

 

Data processing

 

 

2,925

 

 

 

2,565

 

 

 

4,323

 

Marketing and customer relations

 

 

996

 

 

 

1,169

 

 

 

836

 

Amortization of intangible assets

 

 

710

 

 

 

720

 

 

 

510

 

FDIC insurance

 

 

560

 

 

 

575

 

 

 

563

 

Loan collection and servicing

 

 

452

 

 

 

431

 

 

 

278

 

Foreclosed assets

 

 

49

 

 

 

17

 

 

 

61

 

Other noninterest expense

 

 

2,982

 

 

 

3,680

 

 

 

4,855

 

Total noninterest expense

 

 

31,268

 

 

 

30,387

 

 

 

35,933

 

INCOME BEFORE INCOME TAX EXPENSE

 

 

20,519

 

 

 

24,789

 

 

 

12,131

 

INCOME TAX EXPENSE

 

 

5,261

 

 

 

6,343

 

 

 

2,923

 

NET INCOME

 

$

15,258

 

 

$

18,446

 

 

$

9,208

 

 

 

 

 

 

 

 

EARNINGS PER SHARE - BASIC

 

$

0.48

 

 

$

0.58

 

 

$

0.30

 

EARNINGS PER SHARE - DILUTED

 

$

0.48

 

 

$

0.58

 

 

$

0.30

 

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING

 

 

31,662,954

 

 

 

31,708,381

 

 

 

30,977,204

 


HBT Financial, Inc.
Unaudited Consolidated Financial Summary
Consolidated Balance Sheets

 

(dollars in thousands)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

ASSETS

 

 

 

 

 

 

Cash and due from banks

 

$

19,989

 

 

$

26,256

 

 

$

35,244

 

Interest-bearing deposits with banks

 

 

240,223

 

 

 

114,996

 

 

 

141,868

 

Cash and cash equivalents

 

 

260,212

 

 

 

141,252

 

 

 

177,112

 

 

 

 

 

 

 

 

Interest-bearing time deposits with banks

 

 

515

 

 

 

509

 

 

 

249

 

Debt securities available-for-sale, at fair value

 

 

669,020

 

 

 

759,461

 

 

 

854,622

 

Debt securities held-to-maturity

 

 

517,472

 

 

 

521,439

 

 

 

536,429

 

Equity securities with readily determinable fair value

 

 

3,324

 

 

 

3,360

 

 

 

3,145

 

Equity securities with no readily determinable fair value

 

 

2,622

 

 

 

2,505

 

 

 

1,980

 

Restricted stock, at cost

 

 

5,155

 

 

 

7,160

 

 

 

4,991

 

Loans held for sale

 

 

3,479

 

 

 

2,318

 

 

 

5,130

 

 

 

 

 

 

 

 

Loans, before allowance for credit losses

 

 

3,345,962

 

 

 

3,404,417

 

 

 

3,195,540

 

Allowance for credit losses

 

 

(40,815

)

 

 

(40,048

)

 

 

(38,776

)

Loans, net of allowance for credit losses

 

 

3,305,147

 

 

 

3,364,369

 

 

 

3,156,764

 

 

 

 

 

 

 

 

Bank owned life insurance

 

 

24,069

 

 

 

23,905

 

 

 

23,447

 

Bank premises and equipment, net

 

 

64,755

 

 

 

65,150

 

 

 

65,119

 

Bank premises held for sale

 

 

317

 

 

 

 

 

 

235

 

Foreclosed assets

 

 

277

 

 

 

852

 

 

 

3,356

 

Goodwill

 

 

59,820

 

 

 

59,820

 

 

 

59,876

 

Intangible assets, net

 

 

19,972

 

 

 

20,682

 

 

 

22,842

 

Mortgage servicing rights, at fair value

 

 

19,081

 

 

 

19,001

 

 

 

19,992

 

Investments in unconsolidated subsidiaries

 

 

1,614

 

 

 

1,614

 

 

 

1,614

 

Accrued interest receivable

 

 

23,117

 

 

 

24,534

 

 

 

20,301

 

Other assets

 

 

60,542

 

 

 

55,239

 

 

 

56,617

 

Total assets

 

$

5,040,510

 

 

$

5,073,170

 

 

$

5,013,821

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

Deposits:

 

 

 

 

 

 

Noninterest-bearing

 

$

1,047,074

 

 

$

1,072,407

 

 

$

1,218,888

 

Interest-bearing

 

 

3,313,500

 

 

 

3,329,030

 

 

 

3,091,633

 

Total deposits

 

 

4,360,574

 

 

 

4,401,437

 

 

 

4,310,521

 

 

 

 

 

 

 

 

Securities sold under agreements to repurchase

 

 

31,864

 

 

 

42,442

 

 

 

34,919

 

Federal Home Loan Bank advances

 

 

12,725

 

 

 

12,623

 

 

 

75,183

 

Subordinated notes

 

 

39,494

 

 

 

39,474

 

 

 

39,415

 

Junior subordinated debentures issued to capital trusts

 

 

52,804

 

 

 

52,789

 

 

 

52,746

 

Other liabilities

 

 

46,368

 

 

 

34,909

 

 

 

50,939

 

Total liabilities

 

 

4,543,829

 

 

 

4,583,674

 

 

 

4,563,723

 

 

 

 

 

 

 

 

Stockholders' Equity

 

 

 

 

 

 

Common stock

 

 

328

 

 

 

327

 

 

 

327

 

Surplus

 

 

296,054

 

 

 

295,877

 

 

 

294,441

 

Retained earnings

 

 

278,353

 

 

 

269,051

 

 

 

228,782

 

Accumulated other comprehensive income (loss)

 

 

(56,048

)

 

 

(57,163

)

 

 

(62,175

)

Treasury stock at cost

 

 

(22,006

)

 

 

(18,596

)

 

 

(11,277

)

Total stockholders’ equity

 

 

496,681

 

 

 

489,496

 

 

 

450,098

 

Total liabilities and stockholders’ equity

 

$

5,040,510

 

 

$

5,073,170

 

 

$

5,013,821

 

SHARES OF COMMON STOCK OUTSTANDING

 

 

31,612,888

 

 

 

31,695,828

 

 

 

32,095,370

 


HBT Financial, Inc.
Unaudited Consolidated Financial Summary

 

(dollars in thousands)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

LOANS

 

 

 

 

 

 

Commercial and industrial

 

$

402,206

 

 

$

427,800

 

 

$

333,013

 

Commercial real estate - owner occupied

 

 

294,967

 

 

 

295,842

 

 

 

317,103

 

Commercial real estate - non-owner occupied

 

 

890,251

 

 

 

880,681

 

 

 

854,024

 

Construction and land development

 

 

345,991

 

 

 

363,983

 

 

 

389,142

 

Multi-family

 

 

421,573

 

 

 

417,923

 

 

 

362,672

 

One-to-four family residential

 

 

485,948

 

 

 

491,508

 

 

 

482,732

 

Agricultural and farmland

 

 

287,205

 

 

 

287,294

 

 

 

243,357

 

Municipal, consumer, and other

 

 

217,821

 

 

 

239,386

 

 

 

213,497

 

Total loans

 

$

3,345,962

 

 

$

3,404,417

 

 

$

3,195,540

 


(dollars in thousands)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

DEPOSITS

 

 

 

 

 

 

Noninterest-bearing deposits

 

$

1,047,074

 

 

$

1,072,407

 

 

$

1,218,888

 

Interest-bearing deposits:

 

 

 

 

 

 

Interest-bearing demand

 

 

1,139,172

 

 

 

1,145,092

 

 

 

1,270,454

 

Money market

 

 

802,685

 

 

 

803,381

 

 

 

662,088

 

Savings

 

 

602,739

 

 

 

608,424

 

 

 

738,719

 

Time

 

 

713,142

 

 

 

627,253

 

 

 

420,372

 

Brokered

 

 

55,762

 

 

 

144,880

 

 

 

 

Total interest-bearing deposits

 

 

3,313,500

 

 

 

3,329,030

 

 

 

3,091,633

 

Total deposits

 

$

4,360,574

 

 

$

4,401,437

 

 

$

4,310,521

 


HBT Financial, Inc.
Unaudited Consolidated Financial Summary

 

 

 

Three Months Ended

 

 

March 31, 2024

 

December 31, 2023

 

March 31, 2023

(dollars in thousands)

 

Average
Balance

 

Interest

 

Yield/Cost *

 

Average
Balance

 

Interest

 

Yield/Cost *

 

Average
Balance

 

Interest

 

Yield/Cost *

ASSETS

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Loans

 

$

3,371,219

 

 

$

53,020

 

 

6.33

%

 

$

3,374,451

 

 

$

53,185

 

 

6.25

%

 

$

3,012,320

 

 

$

43,111

 

 

5.80

%

Securities

 

 

1,221,447

 

 

 

6,847

 

 

2.25

 

 

 

1,282,773

 

 

 

7,265

 

 

2.25

 

 

 

1,411,613

 

 

 

7,813

 

 

2.24

 

Deposits with banks

 

 

167,297

 

 

 

1,952

 

 

4.69

 

 

 

84,021

 

 

 

786

 

 

3.71

 

 

 

92,363

 

 

 

739

 

 

3.24

 

Other

 

 

5,486

 

 

 

142

 

 

10.40

 

 

 

7,505

 

 

 

175

 

 

9.23

 

 

 

7,425

 

 

 

116

 

 

6.33

 

Total interest-earning assets

 

 

4,765,449

 

 

$

61,961

 

 

5.23

%

 

 

4,748,750

 

 

$

61,411

 

 

5.13

%

 

 

4,523,721

 

 

$

51,779

 

 

4.64

%

Allowance for credit losses

 

 

(40,238

)

 

 

 

 

 

 

(38,844

)

 

 

 

 

 

 

(33,301

)

 

 

 

 

Noninterest-earning assets

 

 

278,253

 

 

 

 

 

 

 

292,543

 

 

 

 

 

 

 

274,870

 

 

 

 

 

Total assets

 

$

5,003,464

 

 

 

 

 

 

$

5,002,449

 

 

 

 

 

 

$

4,765,290

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

LIABILITIES AND STOCKHOLDERS' EQUITY

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Liabilities

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing deposits:

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Interest-bearing demand

 

$

1,127,684

 

 

$

1,311

 

 

0.47

%

 

$

1,140,438

 

 

$

1,228

 

 

0.43

%

 

$

1,230,644

 

 

$

458

 

 

0.15

%

Money market

 

 

812,684

 

 

 

4,797

 

 

2.37

 

 

 

684,197

 

 

 

2,885

 

 

1.67

 

 

 

634,608

 

 

 

935

 

 

0.60

 

Savings

 

 

611,224

 

 

 

443

 

 

0.29

 

 

 

610,767

 

 

 

417

 

 

0.27

 

 

 

709,862

 

 

 

178

 

 

0.10

 

Time

 

 

664,498

 

 

 

5,925

 

 

3.59

 

 

 

599,293

 

 

 

4,773

 

 

3.16

 

 

 

356,779

 

 

 

803

 

 

0.91

 

Brokered

 

 

82,150

 

 

 

1,117

 

 

5.47

 

 

 

140,963

 

 

 

1,924

 

 

5.42

 

 

 

 

 

 

 

 

 

Total interest-bearing deposits

 

 

3,298,240

 

 

 

13,593

 

 

1.66

 

 

 

3,175,658

 

 

 

11,227

 

 

1.40

 

 

 

2,931,893

 

 

 

2,374

 

 

0.33

 

Securities sold under agreements to repurchase

 

 

32,456

 

 

 

152

 

 

1.89

 

 

 

34,282

 

 

 

148

 

 

1.71

 

 

 

39,619

 

 

 

38

 

 

0.38

 

Borrowings

 

 

13,003

 

 

 

125

 

 

3.87

 

 

 

114,220

 

 

 

1,534

 

 

5.33

 

 

 

113,896

 

 

 

1,297

 

 

4.62

 

Subordinated notes

 

 

39,484

 

 

 

470

 

 

4.78

 

 

 

39,464

 

 

 

470

 

 

4.72

 

 

 

39,403

 

 

 

470

 

 

4.83

 

Junior subordinated debentures issued to capital trusts

 

 

52,796

 

 

 

933

 

 

7.11

 

 

 

52,782

 

 

 

948

 

 

7.13

 

 

 

47,586

 

 

 

763

 

 

6.50

 

Total interest-bearing liabilities

 

 

3,435,979

 

 

$

15,273

 

 

1.79

%

 

 

3,416,406

 

 

$

14,327

 

 

1.66

%

 

 

3,172,397

 

 

$

4,942

 

 

0.63

%

Noninterest-bearing deposits

 

 

1,036,402

 

 

 

 

 

 

 

1,081,795

 

 

 

 

 

 

 

1,121,365

 

 

 

 

 

Noninterest-bearing liabilities

 

 

37,107

 

 

 

 

 

 

 

37,440

 

 

 

 

 

 

 

49,316

 

 

 

 

 

Total liabilities

 

 

4,509,488

 

 

 

 

 

 

 

4,535,641

 

 

 

 

 

 

 

4,343,078

 

 

 

 

 

Stockholders' Equity

 

 

493,976

 

 

 

 

 

 

 

466,808

 

 

 

 

 

 

 

422,212

 

 

 

 

 

Total liabilities and stockholders’ equity

 

$

5,003,464

 

 

 

 

 

 

$

5,002,449

 

 

 

 

 

 

$

4,765,290

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Net interest income/Net interest margin (1)

 

 

 

$

46,688

 

 

3.94

%

 

 

 

$

47,084

 

 

3.93

%

 

 

 

$

46,837

 

 

4.20

%

Tax-equivalent adjustment (2)

 

 

 

 

575

 

 

0.05

 

 

 

 

 

666

 

 

0.06

 

 

 

 

 

702

 

 

0.06

 

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

 

 

 

$

47,263

 

 

3.99

%

 

 

 

$

47,750

 

 

3.99

%

 

 

 

$

47,539

 

 

4.26

%

Net interest rate spread (4)

 

 

 

 

 

3.44

%

 

 

 

 

 

3.47

%

 

 

 

 

 

4.01

%

Net interest-earning assets (5)

 

$

1,329,470

 

 

 

 

 

 

$

1,332,344

 

 

 

 

 

 

$

1,351,324

 

 

 

 

 

Ratio of interest-earning assets to interest-bearing liabilities

 

 

1.39

 

 

 

 

 

 

 

1.39

 

 

 

 

 

 

 

1.43

 

 

 

 

 

Cost of total deposits

 

 

 

 

 

1.26

%

 

 

 

 

 

1.05

%

 

 

 

 

 

0.24

%

Cost of funds

 

 

 

 

 

1.37

 

 

 

 

 

 

1.26

 

 

 

 

 

 

0.47

 

 

* Annualized measure.

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


HBT Financial, Inc.
Unaudited Consolidated Financial Summary

 

(dollars in thousands)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

NONPERFORMING ASSETS

 

 

 

 

 

 

Nonaccrual

 

$

9,657

 

 

$

7,820

 

 

$

6,508

 

Past due 90 days or more, still accruing

 

 

 

 

 

37

 

 

 

10

 

Total nonperforming loans

 

 

9,657

 

 

 

7,857

 

 

 

6,518

 

Foreclosed assets

 

 

277

 

 

 

852

 

 

 

3,356

 

Total nonperforming assets

 

$

9,934

 

 

$

8,709

 

 

$

9,874

 

 

 

 

 

 

 

 

Nonperforming loans that are wholly or partially guaranteed by the U.S. Government

 

$

2,676

 

 

$

2,641

 

 

$

1,997

 

 

 

 

 

 

 

 

Allowance for credit losses

 

$

40,815

 

 

$

40,048

 

 

$

38,776

 

Loans, before allowance for credit losses

 

 

3,345,962

 

 

 

3,404,417

 

 

 

3,195,540

 

 

 

 

 

 

 

 

CREDIT QUALITY RATIOS

 

 

 

 

 

 

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

 

 

1.22

%

 

 

1.18

%

 

 

1.21

%

Allowance for credit losses to nonaccrual loans

 

 

422.65

 

 

 

512.12

 

 

 

595.82

 

Allowance for credit losses to nonperforming loans

 

 

422.65

 

 

 

509.71

 

 

 

594.91

 

Nonaccrual loans to loans, before allowance for credit losses

 

 

0.29

 

 

 

0.23

 

 

 

0.20

 

Nonperforming loans to loans, before allowance for credit losses

 

 

0.29

 

 

 

0.23

 

 

 

0.20

 

Nonperforming assets to total assets

 

 

0.20

 

 

 

0.17

 

 

 

0.20

 

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

 

 

0.30

 

 

 

0.26

 

 

 

0.31

 


HBT Financial, Inc.
Unaudited Consolidated Financial Summary

 

 

Three Months Ended

(dollars in thousands)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

ALLOWANCE FOR CREDIT LOSSES

 

 

 

 

 

 

Beginning balance

 

$

40,048

 

 

$

38,863

 

 

$

25,333

 

Adoption of ASC 326

 

 

 

 

 

 

 

 

6,983

 

PCD allowance established in acquisition

 

 

 

 

 

 

 

 

1,247

 

Provision for credit losses

 

 

560

 

 

 

1,661

 

 

 

5,101

 

Charge-offs

 

 

(227

)

 

 

(626

)

 

 

(142

)

Recoveries

 

 

434

 

 

 

150

 

 

 

254

 

Ending balance

 

$

40,815

 

 

$

40,048

 

 

$

38,776

 

 

 

 

 

 

 

 

Net charge-offs (recoveries)

 

$

(207

)

 

$

476

 

 

$

(112

)

Average loans

 

 

3,371,219

 

 

 

3,374,451

 

 

 

3,012,320

 

 

 

 

 

 

 

 

Net charge-offs (recoveries) to average loans *

 

 

(0.02

)%

 

 

0.06

%

 

 

(0.02

)%

 

* Annualized measure.

 

 

Three Months Ended

(dollars in thousands)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

PROVISION FOR CREDIT LOSSES

 

 

 

 

 

 

Loans (1)

 

$

560

 

 

$

1,661

 

 

$

5,101

 

Unfunded lending-related commitments (1)

 

 

(33

)

 

 

(548

)

 

 

509

 

Debt securities

 

 

 

 

 

 

 

 

600

 

Total provision for credit losses

 

$

527

 

 

$

1,113

 

 

$

6,210

 

 

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


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

 

 

 

Three Months Ended

(dollars in thousands)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

Net income

 

$

15,258

 

 

$

18,446

 

 

$

9,208

 

Adjustments:

 

 

 

 

 

 

Acquisition expenses (1)

 

 

 

 

 

 

 

 

(13,064

)

Gains (losses) on closed branch premises

 

 

(635

)

 

 

 

 

 

 

Realized gains (losses) on sales of securities

 

 

(3,382

)

 

 

 

 

 

(1,007

)

Mortgage servicing rights fair value adjustment

 

 

80

 

 

 

(1,155

)

 

 

(624

)

Total adjustments

 

 

(3,937

)

 

 

(1,155

)

 

 

(14,695

)

Tax effect of adjustments

 

 

1,122

 

 

 

329

 

 

 

4,044

 

Total adjustments after tax effect

 

 

(2,815

)

 

 

(826

)

 

 

(10,651

)

Adjusted net income

 

$

18,073

 

 

$

19,272

 

 

$

19,859

 

 

 

 

 

 

 

 

Average assets

 

$

5,003,464

 

 

$

5,002,449

 

 

$

4,765,290

 

 

 

 

 

 

 

 

Return on average assets *

 

 

1.23

%

 

 

1.46

%

 

 

0.78

%

Adjusted return on average assets *

 

 

1.45

 

 

 

1.53

 

 

 

1.69

 

 

* Annualized measure.

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


Reconciliation of Non-GAAP Financial Measures –
Adjusted Earnings Per Share — Basic and Diluted

 

 

 

Three Months Ended

(dollars in thousands, except per share amounts)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

Numerator:

 

 

 

 

 

 

Net income

 

$

15,258

 

 

$

18,446

 

 

$

9,208

 

Earnings allocated to participating securities (1)

 

 

 

 

 

(10

)

 

 

(5

)

Numerator for earnings per share - basic and diluted

 

$

15,258

 

 

$

18,436

 

 

$

9,203

 

 

 

 

 

 

 

 

Adjusted net income

 

$

18,073

 

 

$

19,272

 

 

$

19,859

 

Earnings allocated to participating securities (1)

 

 

 

 

 

(9

)

 

 

(13

)

Numerator for adjusted earnings per share - basic and diluted

 

$

18,073

 

 

$

19,263

 

 

$

19,846

 

 

 

 

 

 

 

 

Denominator:

 

 

 

 

 

 

Weighted average common shares outstanding

 

 

31,662,954

 

 

 

31,708,381

 

 

 

30,977,204

 

Dilutive effect of outstanding restricted stock units

 

 

140,233

 

 

 

139,332

 

 

 

69,947

 

Weighted average common shares outstanding, including all dilutive potential shares

 

 

31,803,187

 

 

 

31,847,713

 

 

 

31,047,151

 

 

 

 

 

 

 

 

Earnings per share - Basic

 

$

0.48

 

 

$

0.58

 

 

$

0.30

 

Earnings per share - Diluted

 

$

0.48

 

 

$

0.58

 

 

$

0.30

 

 

 

 

 

 

 

 

Adjusted earnings per share - Basic

 

$

0.57

 

 

$

0.61

 

 

$

0.64

 

Adjusted earnings per share - Diluted

 

$

0.57

 

 

$

0.60

 

 

$

0.64

 

 

(1) The Company previously granted restricted stock units that contain non-forfeitable rights to dividend equivalents, which were considered participating securities. Prior to 2024, these restricted stock units were included in the calculation of 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 (Tax-equivalent Basis) and Net Interest Margin (Tax-equivalent Basis)

 

 

 

Three Months Ended

(dollars in thousands)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

Net interest income (tax-equivalent basis)

 

 

 

 

 

 

Net interest income

 

$

46,688

 

 

$

47,084

 

 

$

46,837

 

Tax-equivalent adjustment (1)

 

 

575

 

 

 

666

 

 

 

702

 

Net interest income (tax-equivalent basis) (1)

 

$

47,263

 

 

$

47,750

 

 

$

47,539

 

 

 

 

 

 

 

 

Net interest margin (tax-equivalent basis)

 

 

 

 

 

 

Net interest margin *

 

 

3.94

%

 

 

3.93

%

 

 

4.20

%

Tax-equivalent adjustment * (1)

 

 

0.05

 

 

 

0.06

 

 

 

0.06

 

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

 

 

3.99

%

 

 

3.99

%

 

 

4.26

%

 

 

 

 

 

 

 

Average interest-earning assets

 

$

4,765,449

 

 

$

4,748,750

 

 

$

4,523,721

 

 

* 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

(dollars in thousands)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

Efficiency ratio (tax-equivalent basis)

 

 

 

 

 

 

Total noninterest expense

 

$

31,268

 

 

$

30,387

 

 

$

35,933

 

Less: amortization of intangible assets

 

 

710

 

 

 

720

 

 

 

510

 

Noninterest expense excluding amortization of intangible assets

 

$

30,558

 

 

$

29,667

 

 

$

35,423

 

 

 

 

 

 

 

 

Net interest income

 

$

46,688

 

 

$

47,084

 

 

$

46,837

 

Total noninterest income

 

 

5,626

 

 

 

9,205

 

 

 

7,437

 

Operating revenue

 

 

52,314

 

 

 

56,289

 

 

 

54,274

 

Tax-equivalent adjustment (1)

 

 

575

 

 

 

666

 

 

 

702

 

Operating revenue (tax-equivalent basis) (1)

 

$

52,889

 

 

$

56,955

 

 

$

54,976

 

 

 

 

 

 

 

 

Efficiency ratio

 

 

58.41

%

 

 

52.70

%

 

 

65.27

%

Efficiency ratio (tax-equivalent basis) (1)

 

 

57.78

 

 

 

52.09

 

 

 

64.43

 

 

(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 –
Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share

 

(dollars in thousands, except per share data)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

Tangible Common Equity

 

 

 

 

 

 

Total stockholders' equity

 

$

496,681

 

 

$

489,496

 

 

$

450,098

 

Less: Goodwill

 

 

59,820

 

 

 

59,820

 

 

 

59,876

 

Less: Intangible assets, net

 

 

19,972

 

 

 

20,682

 

 

 

22,842

 

Tangible common equity

 

$

416,889

 

 

$

408,994

 

 

$

367,380

 

 

 

 

 

 

 

 

Tangible Assets

 

 

 

 

 

 

Total assets

 

$

5,040,510

 

 

$

5,073,170

 

 

$

5,013,821

 

Less: Goodwill

 

 

59,820

 

 

 

59,820

 

 

 

59,876

 

Less: Intangible assets, net

 

 

19,972

 

 

 

20,682

 

 

 

22,842

 

Tangible assets

 

$

4,960,718

 

 

$

4,992,668

 

 

$

4,931,103

 

 

 

 

 

 

 

 

Total stockholders' equity to total assets

 

 

9.85

%

 

 

9.65

%

 

 

8.98

%

Tangible common equity to tangible assets

 

 

8.40

 

 

 

8.19

 

 

 

7.45

 

 

 

 

 

 

 

 

Shares of common stock outstanding

 

 

31,612,888

 

 

 

31,695,828

 

 

 

32,095,370

 

 

 

 

 

 

 

 

Book value per share

 

$

15.71

 

 

$

15.44

 

 

$

14.02

 

Tangible book value per share

 

 

13.19

 

 

 

12.90

 

 

 

11.45

 


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

 

 

 

Three Months Ended

(dollars in thousands)

 

March 31,
2024

 

December 31,
2023

 

March 31,
2023

Average Tangible Common Equity

 

 

 

 

 

 

Total stockholders' equity

 

$

493,976

 

 

$

466,808

 

 

$

422,212

 

Less: Goodwill

 

 

59,820

 

 

 

59,820

 

 

 

49,352

 

Less: Intangible assets, net

 

 

20,334

 

 

 

21,060

 

 

 

15,635

 

Average tangible common equity

 

$

413,822

 

 

$

385,928

 

 

$

357,225

 

 

 

 

 

 

 

 

Net income

 

$

15,258

 

 

$

18,446

 

 

$

9,208

 

Adjusted net income

 

 

18,073

 

 

 

19,272

 

 

 

19,859

 

 

 

 

 

 

 

 

Return on average stockholders' equity *

 

 

12.42

%

 

 

15.68

%

 

 

8.84

%

Return on average tangible common equity *

 

 

14.83

 

 

 

18.96

 

 

 

10.45

 

 

 

 

 

 

 

 

Adjusted return on average stockholders' equity *

 

 

14.72

%

 

 

16.38

%

 

 

19.08

%

Adjusted return on average tangible common equity *

 

 

17.57

 

 

 

19.81

 

 

 

22.55

 

 

* Annualized measure.