HBT Financial, Inc. Announces Fourth Quarter 2023 Financial Results

HBT Financial, Inc.

Quarterly Cash Dividend Increased to $0.19 per Share

Fourth Quarter Highlights

• Net income of $18.4 million, or $0.58 per diluted share; return on average assets (ROAA) of 1.46%; return on average stockholders' equity (ROAE) of 15.68%; and return on average tangible common equity (ROATCE)⁽¹⁾ of 18.96%

• Adjusted net income⁽¹⁾ of $19.3 million; or $0.60 per diluted share; adjusted ROAA⁽¹⁾ of 1.53%; adjusted ROAE⁽¹⁾ of 16.38%; and adjusted ROATCE⁽¹⁾ of 19.81%

• Asset quality remained strong with nonperforming assets to total assets of 0.17%

• Net interest margin of 3.93% and net interest margin (tax-equivalent basis)⁽¹⁾ of 3.99%

BLOOMINGTON, Ill., Jan. 24, 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 $18.4 million, or $0.58 diluted earnings per share, for the fourth quarter of 2023. This compares to net income of $19.7 million, or $0.62 diluted earnings per share, for the third quarter of 2023, and net income of $13.1 million, or $0.46 diluted earnings per share, for the fourth quarter of 2022.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “We had a very good fourth quarter to complete an excellent year.   We continued to produce strong profitability with an adjusted ROAA⁽¹⁾ of 1.53%, an adjusted ROATCE⁽¹⁾ of 19.81% and adjusted diluted earnings per share⁽¹⁾ of $0.60.   We were able to improve liquidity and increase deposits, excluding brokered deposits, by 4.2% for the quarter by bringing the majority of our wealth management customers’ deposits onto our balance sheet.   Even without our wealth management customers’ deposits, total deposits, excluding brokered deposits, increased by $29.4 million, or 0.7%.   Loan growth remained solid at 1.8% for the quarter while we maintained strong credit quality with non-performing assets at only 0.17% of total assets.   Although net interest margin (tax-equivalent basis)⁽¹⁾ declined to 3.99% in the quarter, we believe that the pace of net interest margin decreases will moderate in the first quarter of 2024.   With the recent drop in interest rates, our accumulated other comprehensive income (loss) increased by $21.3 million, which when coupled with strong earnings retention, drove a 9.3% increase in our tangible book value per share⁽¹⁾.   All capital metrics increased and can support continued organic growth or future acquisitions.   We believe this quarter continues to demonstrate our ability to produce strong profitability results, maintain a solid balance sheet, and enhance our franchise value.”
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_{⁽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 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 $19.3 million, or $0.60 adjusted diluted earnings per share, for the fourth quarter of 2023. This compares to adjusted net income of $20.3 million, or $0.63 adjusted diluted earnings per share, for the third quarter of 2023, and adjusted net income of $13.9 million, or $0.48 adjusted diluted earnings per share, for the fourth quarter of 2022 (see "Reconciliation of Non-GAAP Financial Measures" tables below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures).

Cash Dividend

On January 23, 2024, the Company’s Board of Directors declared a quarterly cash dividend of $0.19 per share on the Company’s common stock (the “Dividend”). The Dividend is payable on February 13, 2024 to shareholders of record as of February 6, 2024. This represents an increase of $0.02 from the previous quarterly dividend of $0.17 per share.

Mr. Carter noted, “Our strong financial performance and balance sheet enable us to increase our quarterly dividend by $0.02 per share, or 11.8%, while maintaining sufficient capital to support the continued growth of the Company.”

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2023 was $47.1 million, a decrease of 2.5% from $48.3 million for the third quarter of 2023. The decrease was primarily attributable to an increase in funding costs which were partially offset by higher yields on loans and a more favorable interest-earning asset mix.

Relative to the fourth quarter of 2022, net interest income increased 11.6% from $42.2 million. The increase was primarily attributable to the increase in average interest-earning assets following the Town and Country Financial Corporation (“Town and Country”) merger completed in the first quarter of 2023 and higher yields on interest-earning assets which were partially offset by an increase in funding costs.

Net interest margin for the fourth quarter of 2023 was 3.93%, compared to 4.07% for the third quarter of 2023, and net interest margin (tax-equivalent basis)⁽¹⁾ for the fourth quarter of 2023 was 3.99% compared to 4.13% for the third quarter of 2023. The decrease was primarily attributable to higher funding costs with the cost of funds increasing to 1.26% for the fourth quarter of 2023, compared to 0.96% for the third quarter of 2023, partially offset by higher yields on loans and a more favorable interest-earning asset mix.

Relative to the fourth quarter of 2022, net interest margin decreased from 4.10%. This decrease was primarily attributable to higher funding costs.
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_{⁽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 fourth quarter of 2023 was $9.2 million, a decrease of 3.0% from $9.5 million for the third quarter of 2023. The decrease was primarily attributable to a negative mortgage servicing rights fair value adjustment of $1.2 million during the fourth quarter of 2023, partially offset by the absence of $0.8 million of losses realized on the sale of debt securities during the third quarter of 2023. Additionally, the $0.5 million increase in wealth management fees was primarily due to an increase in farmland brokerage commissions.

Relative to the fourth quarter of 2022, noninterest income increased 16.7% from $7.9 million. The increase was primarily attributable to the Town and Country merger completed in the first quarter of 2023 which contributed to a $0.6 million increase in mortgage servicing income, a $0.4 million increase in wealth management fees, and a $0.1 million increase in card income.

Noninterest Expense

Noninterest expense for the fourth quarter of 2023 was $30.4 million, a 0.9% decrease from $30.7 million for the third quarter of 2023. The decrease was broad-based and the result of continued expense management discipline with a $0.5 million decrease in marketing expenses largely offset by a $0.4 million increase in other noninterest expense.

Relative to the fourth quarter of 2022, noninterest expense decreased 8.2% from $33.1 million, primarily attributable to the absence of $8.2 million of accruals related to settled legal matters previously disclosed and included in the fourth quarter of 2022 results, partially offset by the addition of Town and Country’s operations.

Acquisition-related expenses recognized are summarized below. No acquisition-related expenses were recognized subsequent to the second quarter of 2023, and we do not expect material acquisition-related expenses related to Town and Country in subsequent quarters.

	Three Months Ended									Year Ended December 31,
(dollars in thousands)	December 31, 2023			September 30, 2023			December 31, 2022			2023			2022
PROVISION FOR CREDIT LOSSES	$	—		$	—		$	—		$	5,924		$	—
NONINTEREST EXPENSE
Salaries		—			—			—			3,584			—
Furniture and equipment		—			—			—			39			—
Data processing		—			—			304			2,031			304
Marketing and customer relations		—			—			—			24			—
Loan collection and servicing		—			—			—			125			—
Legal fees and other noninterest expense		—			—			326			1,964			788
Total noninterest expense		—			—			630			7,767			1,092
Total acquisition-related expenses	$	—		$	—		$	630		$	13,691		$	1,092

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.40 billion at December 31, 2023, compared with $3.34 billion at September 30, 2023 and $2.62 billion at December 31, 2022. The $61.6 million increase from September 30, 2023 was primarily attributable to higher line usage in our commercial and industrial portfolio as well as one larger new $23.0 million funding in our multifamily portfolio, both of which were partially offset by a reduction in our commercial real estate – non-owner occupied portfolio due to a variety of payoffs from real estate sales. Higher line usage in our commercial and industrial portfolio was driven in part by the seasonal increase in grain elevator line balances as well as $13.2 million drawn on two customers’ lines which were funded shortly before and paid off shortly after year-end.

Deposits

Total deposits were $4.40 billion at December 31, 2023, compared with $4.20 billion at September 30, 2023 and $3.59 billion at December 31, 2022. The $203.4 million increase from September 30, 2023 was primarily attributable to bringing the majority of our wealth management customer deposits on balance sheet, which increased money market deposits by $144.0 million, and a $29.9 million increase in brokered deposits.

Asset Quality

Nonperforming loans totaled $7.9 million, or 0.23% of total loans, at December 31, 2023, compared with $6.7 million, or 0.20% of total loans, at September 30, 2023, and $2.2 million, or 0.08% of total loans, at December 31, 2022. Additionally, of the $7.9 million of nonperforming loans held as of December 31, 2023, $2.6 million is either wholly or partially guaranteed by the U.S. Government. The $1.2 million increase in nonperforming loans from September 30, 2023 was primarily attributable to one commercial real estate - non-owner occupied retail credit moved to nonaccrual, partially offset by a reduction in one-to-four family residential nonaccrual loans.

The Company recorded a provision for credit losses of $1.1 million for the fourth quarter of 2023. The provision for credit losses primarily reflects a $0.9 million increase in required reserves resulting from changes in economic and qualitative factors, a $0.6 million increase in required reserves driven by growth and changes in the loan portfolio, and a $0.4 million decrease in specific reserve.

The Company had net charge-offs of $0.5 million, or 0.06% of average loans on an annualized basis, for the fourth quarter of 2023, compared to net recoveries of $0.1 million, or 0.01% of average loans on an annualized basis, for the third quarter of 2023, and net recoveries of $0.9 million, or 0.14% of average loans on an annualized basis, for the fourth quarter of 2022.

The Company’s allowance for credit losses was 1.18% of total loans and 510% of nonperforming loans at December 31, 2023, compared with 1.16% of total loans and 582% of nonperforming loans at September 30, 2023. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $3.8 million as of December 31, 2023, compared with $4.4 million as of September 30, 2023.

Capital

Tangible common equity to tangible assets⁽¹⁾ increased to 8.19% as of December 31, 2023, from 7.64% as of September 30, 2023, and tangible book value per share⁽¹⁾ increased by $1.10 to $12.90 as of December 31, 2023, when compared to September 30, 2023. These increases were primarily due to an increase in our accumulated other comprehensive income (loss) as a result of the recent drop in interest rates as well as strong earnings retention.

During the fourth quarter of 2023, the Company repurchased 78,312 shares of its common stock at a weighted average price of $17.94 under its stock repurchase program. The Company’s Board of Directors authorized a new stock repurchase program that took effect upon the expiration of the Company’s prior stock repurchase program on January 1, 2024. The new stock repurchase program will be in effect until January 1, 2025 and authorizes the Company to repurchase up to $15 million of its common stock.
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_{⁽¹⁾ See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.}

January 2024 Bond Sales

In January 2024, the Company recognized $3.4 million of net losses on the sale of $66.8 million of municipal securities with the proceeds used to reduce wholesale funding sources. The book yield of the securities sold was 1.87% and the average life was 6.7 years.

About HBT Financial, Inc.

HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. HBT provides a comprehensive suite of business, commercial, wealth management, and retail banking products and services to individuals, businesses and municipal entities throughout Illinois and Eastern Iowa through 67 full-service branches. As of December 31, 2023, HBT had total assets of $5.1 billion, total loans of $3.4 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), tangible common equity to tangible assets, tangible book value per share, return on average tangible common equity, adjusted net income, adjusted earnings per share, adjusted return on average assets, adjusted return on average stockholders' equity, and adjusted return on average tangible common equity. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the "Reconciliation of Non-GAAP Financial Measures" tables.

Forward-Looking Statements

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

Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics (including the COVID-19 pandemic in the United States), acts of war or other threats thereof (including the 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 FASB or the PCAOB (including the Company’s adoption of the current expected credit losses (“CECL”) methodology); (iv) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the recent failures of other banks; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of LIBOR phase-out and the recent and potential additional rate increases by the Federal Reserve); (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												Year Ended December 31,
(dollars in thousands, except per share data)		December 31, 2023				September 30, 2023				December 31, 2022					2023				2022
Interest and dividend income		$	61,411			$	59,041			$	44,948			$	228,999			$	153,054
Interest expense			14,327				10,762				2,765				37,927				7,180
Net interest income			47,084				48,279				42,183				191,072				145,874
Provision for credit losses			1,113				480				(653	)			7,573				(706	)
Net interest income after provision for credit losses			45,971				47,799				42,836				183,499				146,580
Noninterest income			9,205				9,490				7,889				36,046				34,717
Noninterest expense			30,387				30,671				33,110				130,964				105,107
Income before income tax expense			24,789				26,618				17,615				88,581				76,190
Income tax expense			6,343				6,903				4,475				22,739				19,734
Net income		$	18,446			$	19,715			$	13,140			$	65,842			$	56,456
Earnings per share - Diluted		$	0.58			$	0.62			$	0.46			$	2.07			$	1.95
Adjusted net income (1)		$	19,272			$	20,279			$	13,886			$	78,182			$	55,805
Adjusted earnings per share - Diluted (1)			0.60				0.63				0.48				2.46				1.93
Book value per share		$	15.44			$	14.36			$	12.99
Tangible book value per share (1)			12.90				11.80				11.94
Shares of common stock outstanding			31,695,828				31,774,140				28,752,626
Weighted average shares of common stock outstanding			31,708,381				31,829,250				28,752,626				31,626,308				28,853,697
SUMMARY RATIOS
Net interest margin *			3.93	%			4.07	%			4.10	%			4.09	%			3.54	%
Net interest margin (tax-equivalent basis) * (1)(2)			3.99				4.13				4.17				4.15				3.60
Efficiency ratio			52.70	%			51.85	%			65.85	%			56.49	%			57.72	%
Efficiency ratio (tax-equivalent basis) (1)(2)			52.09				51.25				64.94				55.81				56.93
Loan to deposit ratio			77.35	%			79.63	%			73.05	%
Return on average assets *			1.46	%			1.58	%			1.23	%			1.34	%			1.32	%
Return on average stockholders' equity *			15.68				17.02				14.17				14.60				14.73
Return on average tangible common equity * (1)			18.96				20.70				15.45				17.63				16.02
Adjusted return on average assets * (1)			1.53	%			1.62	%			1.30	%			1.59	%			1.31	%
Adjusted return on average stockholders' equity * (1)			16.38				17.51				14.98				17.34				14.56
Adjusted return on average tangible common equity * (1)			19.81				21.29				16.33				20.94				15.83
CAPITAL
Total capital to risk-weighted assets			15.33	%			15.09	%			16.27	%
Tier 1 capital to risk-weighted assets			13.42				13.18				14.23
Common equity tier 1 capital ratio			12.12				11.88				13.07
Tier 1 leverage ratio			10.49				10.34				10.48
Total stockholders' equity to total assets			9.65				9.14				8.72
Tangible common equity to tangible assets (1)			8.19				7.64				8.06
ASSET QUALITY
Net charge-offs (recoveries) to average loans			0.06	%		(0.01)%				(0.14)%					0.01	%		(0.08)%
Allowance for credit losses to loans, before allowance for credit losses			1.18				1.16				0.97
Nonperforming loans to loans, before allowance for credit losses			0.23				0.20				0.08
Nonperforming assets to total assets			0.17				0.16				0.12

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* 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												Year Ended December 31,
(dollars in thousands, except per share data)	December 31, 2023				September 30, 2023				December 31, 2022					2023				2022
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable	$	52,060			$	49,640			$	35,839			$	191,008			$	120,343
Federally tax exempt		1,125				1,072				952				4,189				3,135
Securities:
Taxable		6,377				6,451				6,421				25,962				23,368
Federally tax exempt		888				978				1,184				4,225				4,569
Interest-bearing deposits in bank		786				714				504				3,020				1,541
Other interest and dividend income		175				186				48				595				98
Total interest and dividend income		61,411				59,041				44,948				228,999				153,054
INTEREST EXPENSE
Deposits		11,227				7,211				849				25,135				2,511
Securities sold under agreements to repurchase		148				35				10				255				36
Borrowings		1,534				2,108				880				7,128				967
Subordinated notes		470				470				470				1,879				1,879
Junior subordinated debentures issued to capital trusts		948				938				556				3,530				1,787
Total interest expense		14,327				10,762				2,765				37,927				7,180
Net interest income		47,084				48,279				42,183				191,072				145,874
PROVISION FOR CREDIT LOSSES		1,113				480				(653	)			7,573				(706	)
Net interest income after provision for credit losses		45,971				47,799				42,836				183,499				146,580
NONINTEREST INCOME
Card income		2,717				2,763				2,642				11,043				10,329
Wealth management fees		2,885				2,381				2,485				9,883				9,155
Service charges on deposit accounts		2,016				2,040				1,701				7,846				7,072
Mortgage servicing		1,156				1,169				593				4,678				2,609
Mortgage servicing rights fair value adjustment		(1,155	)			23				(293	)			(1,615	)			2,153
Gains on sale of mortgage loans		401				476				194				1,526				1,461
Realized gains (losses) on sales of securities		—				(813	)			—				(1,820	)			—
Unrealized gains (losses) on equity securities		221				(46	)			33				160				(414	)
Gains (losses) on foreclosed assets		58				550				(122	)			501				(314	)
Gains (losses) on other assets		5				52				17				166				136
Income on bank owned life insurance		158				153				42				573				164
Other noninterest income		743				742				597				3,105				2,366
Total noninterest income		9,205				9,490				7,889				36,046				34,717
NONINTEREST EXPENSE
Salaries		15,738				15,644				13,278				67,453				51,767
Employee benefits		2,379				2,616				2,126				10,037				8,325
Occupancy of bank premises		2,458				2,573				1,893				9,918				7,673
Furniture and equipment		655				667				633				2,790				2,476
Data processing		2,565				2,581				2,167				12,352				7,441
Marketing and customer relations		1,169				1,679				867				5,043				3,803
Amortization of intangible assets		720				720				140				2,670				873
FDIC insurance		575				512				276				2,280				1,164
Loan collection and servicing		431				345				278				1,402				1,049
Foreclosed assets		17				76				33				251				293
Other noninterest expense		3,680				3,258				11,419				16,768				20,243
Total noninterest expense		30,387				30,671				33,110				130,964				105,107
INCOME BEFORE INCOME TAX EXPENSE		24,789				26,618				17,615				88,581				76,190
INCOME TAX EXPENSE		6,343				6,903				4,475				22,739				19,734
NET INCOME	$	18,446			$	19,715			$	13,140			$	65,842			$	56,456
EARNINGS PER SHARE - BASIC	$	0.58			$	0.62			$	0.46			$	2.08			$	1.95
EARNINGS PER SHARE - DILUTED	$	0.58			$	0.62			$	0.46			$	2.07			$	1.95
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING		31,708,381				31,829,250				28,752,626				31,626,308				28,853,697

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

(dollars in thousands)	December 31, 2023				September 30, 2023				December 31, 2022
ASSETS
Cash and due from banks	$	26,256			$	24,757			$	18,970
Interest-bearing deposits with banks		114,996				87,156				95,189
Cash and cash equivalents		141,252				111,913				114,159
Interest-bearing time deposits with banks		509				500				—
Debt securities available-for-sale, at fair value		759,461				753,163				843,524
Debt securities held-to-maturity		521,439				527,144				541,600
Equity securities with readily determinable fair value		3,360				3,106				3,029
Equity securities with no readily determinable fair value		2,505				2,300				1,977
Restricted stock, at cost		7,160				11,165				7,965
Loans held for sale		2,318				3,563				615
Loans, before allowance for credit losses		3,404,417				3,342,786				2,620,253
Allowance for credit losses		(40,048	)			(38,863	)			(25,333	)
Loans, net of allowance for credit losses		3,364,369				3,303,923				2,594,920
Bank owned life insurance		23,905				23,747				7,557
Bank premises and equipment, net		65,150				64,713				50,469
Bank premises held for sale		—				35				235
Foreclosed assets		852				1,519				3,030
Goodwill		59,820				59,820				29,322
Intangible assets, net		20,682				21,402				1,070
Mortgage servicing rights, at fair value		19,001				20,156				10,147
Investments in unconsolidated subsidiaries		1,614				1,614				1,165
Accrued interest receivable		24,534				23,447				19,506
Other assets		55,239				58,538				56,444
Total assets	$	5,073,170			$	4,991,768			$	4,286,734
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	1,072,407			$	1,086,877			$	994,954
Interest-bearing		3,329,030				3,111,191				2,592,070
Total deposits		4,401,437				4,198,068				3,587,024
Securities sold under agreements to repurchase		42,442				28,900				43,081
Federal Home Loan Bank advances		12,623				177,650				160,000
Subordinated notes		39,474				39,454				39,395
Junior subordinated debentures issued to capital trusts		52,789				52,774				37,780
Other liabilities		34,909				38,671				45,822
Total liabilities		4,583,674				4,535,517				3,913,102
Stockholders' Equity
Common stock		327				327				293
Surplus		295,877				295,483				222,783
Retained earnings		269,051				256,050				232,004
Accumulated other comprehensive income (loss)		(57,163	)			(78,432	)			(71,759	)
Treasury stock at cost		(18,596	)			(17,177	)			(9,689	)
Total stockholders’ equity		489,496				456,251				373,632
Total liabilities and stockholders’ equity	$	5,073,170			$	4,991,768			$	4,286,734
SHARES OF COMMON STOCK OUTSTANDING		31,695,828				31,774,140				28,752,626

HBT Financial, Inc.
Unaudited Consolidated Financial Summary

(dollars in thousands)	December 31, 2023			September 30, 2023			December 31, 2022
LOANS
Commercial and industrial	$	427,800		$	386,933		$	266,757
Commercial real estate - owner occupied		295,842			297,242			218,503
Commercial real estate - non-owner occupied		880,681			901,929			713,202
Construction and land development		363,983			371,158			360,824
Multi-family		417,923			388,742			287,865
One-to-four family residential		491,508			488,655			338,253
Agricultural and farmland		287,294			275,239			237,746
Municipal, consumer, and other		239,386			232,888			197,103
Total loans	$	3,404,417		$	3,342,786		$	2,620,253

(dollars in thousands)	December 31, 2023			September 30, 2023			December 31, 2022
DEPOSITS
Noninterest-bearing deposits	$	1,072,407		$	1,086,877		$	994,954
Interest-bearing deposits:
Interest-bearing demand		1,145,092			1,134,721			1,139,150
Money market		803,381			673,780			555,425
Savings		608,424			623,083			634,527
Time		627,253			564,634			262,968
Brokered		144,880			114,973			—
Total interest-bearing deposits		3,329,030			3,111,191			2,592,070
Total deposits	$	4,401,437		$	4,198,068		$	3,587,024

HBT Financial, Inc.
Unaudited Consolidated Financial Summary

	Three Months Ended
	December 31, 2023										September 30, 2023										December 31, 2022
(dollars in thousands)	Average Balance				Interest			Yield/Cost *			Average Balance				Interest			Yield/Cost *			Average Balance				Interest			Yield/Cost *
ASSETS
Loans	$	3,374,451			$	53,185		6.25	%		$	3,296,703			$	50,712		6.10	%		$	2,600,746			$	36,791		5.61	%
Securities		1,282,773				7,265		2.25				1,324,686				7,429		2.22				1,396,401				7,605		2.16
Deposits with banks		84,021				786		3.71				77,595				714		3.65				76,507				504		2.61
Other		7,505				175		9.23				9,347				186		7.90				5,607				48		3.37
Total interest-earning assets		4,748,750			$	61,411		5.13	%			4,708,331			$	59,041		4.97	%			4,079,261			$	44,948		4.37	%
Allowance for credit losses		(38,844	)									(38,317	)									(25,404	)
Noninterest-earning assets		292,543										294,818										188,942
Total assets	$	5,002,449									$	4,964,832									$	4,242,799
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,140,438			$	1,228		0.43	%		$	1,160,654			$	761		0.26	%		$	1,125,877			$	177		0.06	%
Money market		684,197				2,885		1.67				682,772				2,026		1.18				572,718				379		0.26
Savings		610,767				417		0.27				639,384				249		0.15				640,668				53		0.03
Time		599,293				4,773		3.16				519,683				3,275		2.50				266,117				240		0.36
Brokered		140,963				1,924		5.42				66,776				900		5.34				—				—		—
Total interest-bearing deposits		3,175,658				11,227		1.40				3,069,269				7,211		0.93				2,605,380				849		0.13
Securities sold under agreements to repurchase		34,282				148		1.71				33,807				35		0.41				51,703				10		0.08
Borrowings		114,220				1,534		5.33				157,908				2,108		5.30				92,120				880		3.79
Subordinated notes		39,464				470		4.72				39,444				470		4.72				39,384				470		4.73
Junior subordinated debentures issued to capital trusts		52,782				948		7.13				52,767				938		7.05				37,770				556		5.84
Total interest-bearing liabilities		3,416,406			$	14,327		1.66	%			3,353,195			$	10,762		1.27	%			2,826,357			$	2,765		0.39	%
Noninterest-bearing deposits		1,081,795										1,105,472										1,023,355
Noninterest-bearing liabilities		37,440										46,564										25,220
Total liabilities		4,535,641										4,505,231										3,874,932
Stockholders' Equity		466,808										459,601										367,867
Total liabilities and stockholders’ equity	$	5,002,449									$	4,964,832									$	4,242,799
Net interest income/Net interest margin(1)					$	47,084		3.93	%						$	48,279		4.07	%						$	42,183		4.10	%
Tax-equivalent adjustment(2)						666		0.06								675		0.06								698		0.07
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis)(2) (3)					$	47,750		3.99	%						$	48,954		4.13	%						$	42,881		4.17	%
Net interest rate spread(4)								3.47	%									3.70	%									3.98	%
Net interest-earning assets(5)	$	1,332,344									$	1,355,136									$	1,252,904
Ratio of interest-earning assets to interest-bearing liabilities		1.39										1.40										1.44
Cost of total deposits								1.05	%									0.69	%									0.09	%
Cost of funds								1.26										0.96										0.28

____________________________________

* 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

	Year Ended
	December 31, 2023										December 31, 2022
(dollars in thousands)	Average Balance				Interest			Yield/Cost			Average Balance				Interest			Yield/Cost
ASSETS
Loans	$	3,231,736			$	195,197		6.04	%		$	2,514,549			$	123,478		4.91	%
Securities		1,350,528				30,187		2.24				1,403,016				27,937		1.99
Deposits with banks		84,544				3,020		3.57				197,030				1,541		0.78
Other		8,217				595		7.24				3,529				98		2.77
Total interest-earning assets		4,675,025			$	228,999		4.90	%			4,118,124			$	153,054		3.72	%
Allowance for credit losses		(37,504	)									(24,703	)
Noninterest-earning assets		290,383										176,452
Total assets	$	4,927,904									$	4,269,873
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,188,680			$	3,130		0.26	%		$	1,141,402			$	607		0.05	%
Money market		669,118				7,352		1.10				582,514				813		0.14
Savings		661,424				1,033		0.16				650,385				208		0.03
Time		481,466				10,784		2.24				283,232				883		0.31
Brokered		52,724				2,836		5.38				—				—		—
Total interest-bearing deposits		3,053,412				25,135		0.82				2,657,533				2,511		0.09
Securities sold under agreements to repurchase		35,450				255		0.72				51,554				36		0.07
Borrowings		139,817				7,128		5.10				26,468				967		3.65
Subordinated notes		39,434				1,879		4.76				39,355				1,879		4.77
Junior subordinated debentures issued to capital trusts		51,489				3,530		6.86				37,746				1,787		4.73
Total interest-bearing liabilities		3,319,602			$	37,927		1.14	%			2,812,656			$	7,180		0.26	%
Noninterest-bearing deposits		1,113,300										1,051,187
Noninterest-bearing liabilities		44,074										22,724
Total liabilities		4,476,976										3,886,567
Stockholders' Equity		450,928										383,306
Total liabilities and stockholders’ equity	$	4,927,904										4,269,873
Net interest income/Net interest margin(1)					$	191,072		4.09	%						$	145,874		3.54	%
Tax-equivalent adjustment(2)						2,758		0.06								2,499		0.06
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis)(2) (3)					$	193,830		4.15	%						$	148,373		3.60	%
Net interest rate spread(4)								3.76	%									3.46	%
Net interest-earning assets(5)	$	1,355,423									$	1,305,468
Ratio of interest-earning assets to interest-bearing liabilities		1.41										1.46
Cost of total deposits								0.60	%									0.07	%
Cost of funds								0.86										0.19

____________________________________
_{⁽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)	December 31, 2023				September 30, 2023				December 31, 2022
NONPERFORMING ASSETS
Nonaccrual	$	7,820			$	6,678			$	2,155
Past due 90 days or more, still accruing(1)		37				—				1
Total nonperforming loans		7,857				6,678				2,156
Foreclosed assets		852				1,519				3,030
Total nonperforming assets	$	8,709			$	8,197			$	5,186
Nonperforming loans that are wholly or partially guaranteed by the U.S. Government	$	2,641			$	1,968			$	133
Allowance for credit losses	$	40,048			$	38,863			$	25,333
Loans, before allowance for credit losses		3,404,417				3,342,786				2,620,253
CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses		1.18	%			1.16	%			0.97	%
Allowance for credit losses to nonaccrual loans		512.12				581.96				1,175.55
Allowance for credit losses to nonperforming loans		509.71				581.96				1,175.00
Nonaccrual loans to loans, before allowance for credit losses		0.23				0.20				0.08
Nonperforming loans to loans, before allowance for credit losses		0.23				0.20				0.08
Nonperforming assets to total assets		0.17				0.16				0.12
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets		0.26				0.25				0.20

____________________________________
_{⁽¹⁾ Prior to 2023, excludes loans acquired with deteriorated credit quality that are past due 90 or more days and accruing. Such loans totaled $145 thousand as of December 31, 2022.}

HBT Financial, Inc.
Unaudited Consolidated Financial Summary

	Three Months Ended												Year Ended December 31,
(dollars in thousands)	December 31, 2023				September 30, 2023				December 31, 2022					2023				2022
ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	38,863			$	37,814			$	25,060			$	25,333			$	23,936
Adoption of ASC 326		—				—				—				6,983				—
PCD allowance established in acquisition		—				—				—				1,247				—
Provision for credit losses		1,661				983				(653	)			6,665				(706	)
Charge-offs		(626	)			(412	)			(169	)			(1,359	)			(684	)
Recoveries		150				478				1,095				1,179				2,787
Ending balance	$	40,048			$	38,863			$	25,333			$	40,048			$	25,333
Net charge-offs (recoveries)	$	476			$	(66	)		$	(926	)		$	180			$	(2,103	)
Average loans		3,374,451				3,296,703				2,600,746				3,231,736				2,514,549
Net charge-offs (recoveries) to average loans *		0.06	%		(0.01)%				(0.14)%					0.01	%		(0.08)%

____________________________________

* Annualized measure.

	Three Months Ended												Year Ended December 31,
(dollars in thousands)	December 31, 2023				September 30, 2023				December 31, 2022					2023			2022
PROVISION FOR CREDIT LOSSES
Loans (1)	$	1,661			$	983			$	(653	)		$	6,665		$	(706	)
Unfunded lending-related commitments (1)		(548	)			297				—				908			—
Debt securities		—				(800	)			—				—			—
Total provision for credit losses	$	1,113			$	480			$	(653	)		$	7,573		$	(706	)

____________________________________
_{⁽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												Year Ended December 31,
(dollars in thousands)		December 31, 2023				September 30, 2023				December 31, 2022					2023				2022
Net income		$	18,446			$	19,715			$	13,140			$	65,842			$	56,456
Adjustments:
Acquisition expenses (1)			—				—				(630	)			(13,691	)			(1,092	)
Gains (losses) on sales of closed branch premises			—				—				—				75				141
Realized gains (losses) on sales of securities			—				(813	)			—				(1,820	)			—
Mortgage servicing rights fair value adjustment			(1,155	)			23				(293	)			(1,615	)			2,153
Total adjustments			(1,155	)			(790	)			(923	)			(17,051	)			1,202
Tax effect of adjustments			329				226				177				4,711				(551	)
Total adjustments after tax effect			(826	)			(564	)			(746	)			(12,340	)			651
Adjusted net income		$	19,272			$	20,279			$	13,886			$	78,182			$	55,805
Average assets		$	5,002,449			$	4,964,832			$	4,242,799			$	4,927,904			$	4,269,873
Return on average assets *			1.46	%			1.58	%			1.23	%			1.34	%			1.32	%
Adjusted return on average assets *			1.53				1.62				1.30				1.59				1.31

____________________________________

* Annualized measure.

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

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

		Three Months Ended												Year Ended December 31,
(dollars in thousands, except per share amounts)		December 31, 2023				September 30, 2023				December 31, 2022					2023				2022
Numerator:
Net income		$	18,446			$	19,715			$	13,140			$	65,842			$	56,456
Earnings allocated to participating securities (1)			(10	)			(10	)			(15	)			(36	)			(66	)
Numerator for earnings per share - basic and diluted		$	18,436			$	19,705			$	13,125			$	65,806			$	56,390
Adjusted net income		$	19,272			$	20,279			$	13,886			$	78,182			$	55,805
Earnings allocated to participating securities (1)			(9	)			(10	)			(16	)			(42	)			(65	)
Numerator for adjusted earnings per share - basic and diluted		$	19,263			$	20,269			$	13,870			$	78,140			$	55,740
Denominator:
Weighted average common shares outstanding			31,708,381				31,829,250				28,752,626				31,626,308				28,853,697
Dilutive effect of outstanding restricted stock units			139,332				137,187				91,905				111,839				65,619
Weighted average common shares outstanding, including all dilutive potential shares			31,847,713				31,966,437				28,844,531				31,738,147				28,919,316
Earnings per share - Basic		$	0.58			$	0.62			$	0.46			$	2.08			$	1.95
Earnings per share - Diluted		$	0.58			$	0.62			$	0.46			$	2.07			$	1.95
Adjusted earnings per share - Basic		$	0.61			$	0.64			$	0.48			$	2.47			$	1.93
Adjusted earnings per share - Diluted		$	0.60			$	0.63			$	0.48			$	2.46			$	1.93

____________________________________
_{⁽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												Year Ended December 31,
(dollars in thousands)		December 31, 2023				September 30, 2023				December 31, 2022					2023				2022
Net interest income (tax-equivalent basis)
Net interest income		$	47,084			$	48,279			$	42,183			$	191,072			$	145,874
Tax-equivalent adjustment (1)			666				675				698				2,758				2,499
Net interest income (tax-equivalent basis) (1)		$	47,750			$	48,954			$	42,881			$	193,830			$	148,373
Net interest margin (tax-equivalent basis)
Net interest margin *			3.93	%			4.07	%			4.10	%			4.09	%			3.54	%
Tax-equivalent adjustment * (1)			0.06				0.06				0.07				0.06				0.06
Net interest margin (tax-equivalent basis) * (1)			3.99	%			4.13	%			4.17	%			4.15	%			3.60	%
Average interest-earning assets		$	4,748,750			$	4,708,331			$	4,079,261			$	4,675,025			$	4,118,124

____________________________________

* 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,
(dollars in thousands)		December 31, 2023				September 30, 2023				December 31, 2022					2023				2022
Efficiency ratio (tax-equivalent basis)
Total noninterest expense		$	30,387			$	30,671			$	33,110			$	130,964			$	105,107
Less: amortization of intangible assets			720				720				140				2,670				873
Noninterest expense excluding amortization of intangible assets		$	29,667			$	29,951			$	32,970			$	128,294			$	104,234
Net interest income		$	47,084			$	48,279			$	42,183			$	191,072			$	145,874
Total noninterest income			9,205				9,490				7,889				36,046				34,717
Operating revenue			56,289				57,769				50,072				227,118				180,591
Tax-equivalent adjustment (1)			666				675				698				2,758				2,499
Operating revenue (tax-equivalent basis) (1)		$	56,955			$	58,444			$	50,770			$	229,876			$	183,090
Efficiency ratio			52.70	%			51.85	%			65.85	%			56.49	%			57.72	%
Efficiency ratio (tax-equivalent basis) (1)			52.09				51.25				64.94				55.81				56.93

____________________________________
_{⁽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

(dollars in thousands, except per share data)		December 31, 2023				September 30, 2023				December 31, 2022
Tangible Common Equity
Total stockholders' equity		$	489,496			$	456,251			$	373,632
Less: Goodwill			59,820				59,820				29,322
Less: Intangible assets, net			20,682				21,402				1,070
Tangible common equity		$	408,994			$	375,029			$	343,240
Tangible Assets
Total assets		$	5,073,170			$	4,991,768			$	4,286,734
Less: Goodwill			59,820				59,820				29,322
Less: Intangible assets, net			20,682				21,402				1,070
Tangible assets		$	4,992,668			$	4,910,546			$	4,256,342
Total stockholders' equity to total assets			9.65	%			9.14	%			8.72	%
Tangible common equity to tangible assets			8.19				7.64				8.06
Shares of common stock outstanding			31,695,828				31,774,140				28,752,626
Book value per share		$	15.44			$	14.36			$	12.99
Tangible book value per share			12.90				11.80				11.94

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

		Three Months Ended												Year Ended December 31,
(dollars in thousands)		December 31, 2023				September 30, 2023				December 31, 2022					2023				2022
Average Tangible Common Equity
Total stockholders' equity		$	466,808			$	459,601			$	367,867			$	450,928			$	383,306
Less: Goodwill			59,820				59,875				29,322				57,266				29,322
Less: Intangible assets, net			21,060				21,793				1,134				20,272				1,480
Average tangible common equity		$	385,928			$	377,933			$	337,411			$	373,390			$	352,504
Net income		$	18,446			$	19,715			$	13,140			$	65,842			$	56,456
Adjusted net income			19,272				20,279				13,886				78,182				55,805
Return on average stockholders' equity *			15.68	%			17.02	%			14.17	%			14.60	%			14.73	%
Return on average tangible common equity *			18.96				20.70				15.45				17.63				16.02
Adjusted return on average stockholders' equity *			16.38	%			17.51	%			14.98	%			17.34	%			14.56	%
Adjusted return on average tangible common equity *			19.81				21.29				16.33				20.94				15.83

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* Annualized measure.