HBT Financial, Inc. Announces Fourth Quarter 2020 Financial Results

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Fourth Quarter Highlights

  • Net income of $12.6 million, or $0.46 per diluted share; return on average assets (ROAA) of 1.38%; return on average stockholders' equity (ROAE) of 14.00%; and return on average tangible common equity (ROATCE)(1) of 15.12%

  • Adjusted net income(1) of $12.4 million; or $0.45 per diluted share, adjusted ROAA(1) of 1.36%; adjusted ROAE(1) of 13.71%; and adjusted ROATCE(1) of 14.81%

(1)

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

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

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

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

C Corp Equivalent Net Income

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

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

Adjusted Net Income

In addition to reporting C Corp equivalent results, the Company believes adjusted net income and adjusted earnings per share, which adjust for the additional C Corp equivalent tax expense for periods prior to October 11, 2019, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights (“MSR”) fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $12.4 million, or $0.45 adjusted diluted earnings per share, for the fourth quarter of 2020. This compares to adjusted net income of $10.8 million, or $0.39 adjusted diluted earnings per share, for the third quarter of 2020, and adjusted net income of $14.4 million, or $0.55 adjusted diluted earnings per share, for the fourth quarter of 2019 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Net Interest Income and Net Interest Margin

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

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

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

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

Noninterest Income

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

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

Noninterest Expense

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

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

Loan Portfolio

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

Deposits

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

Asset Quality

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

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

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

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

Capital

At December 31, 2020, the Company exceeded all regulatory capital requirements under Basel III and was considered to be “well-capitalized,” as summarized in the following table:

Well Capitalized

December 31,

Regulatory

2020

Requirements

Total capital to risk-weighted assets

17.45

%

10.00

%

Tier 1 capital to risk-weighted assets

14.55

%

8.00

%

Common equity tier 1 capital ratio

13.06

%

6.50

%

Tier 1 leverage ratio

9.94

%

5.00

%

Total stockholders' equity to total assets

9.93

%

N/A

Tangible common equity to tangible assets (1)

9.27

%

N/A


(1)

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


Stock Repurchase Program

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

Annualization Factor

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

About HBT Financial, Inc.

HBT Financial, Inc. is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company. The bank provides a comprehensive suite of business, commercial, wealth management, and retail banking products and services to individuals, businesses and municipal entities throughout Central and Northeastern Illinois through 63 branches. As of December 31, 2020, HBT had total assets of $3.7 billion, total loans of $2.2 billion, and total deposits of $3.1 billion. HBT is a longstanding Central Illinois company, with banking roots that can be traced back 100 years.

Non-GAAP Financial Measures

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

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals, future earnings levels, and future loan growth. These statements are subject to many risks and uncertainties, that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: the severity, magnitude and duration of the COVID-19 pandemic; the direct and indirect impacts of the COVID-19 pandemic and governmental responses to the pandemic on our operations and our customers’ businesses; the disruption of global, national, state and local economies associated with the COVID-19 pandemic, which could affect our capital levels and earnings, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses; our asset quality and any loan charge-offs; changes in interest rates and general economic, business and political conditions in the United States generally or in Illinois in particular, including in the financial markets; changes in business plans as circumstances warrant; risks relating to acquisitions; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe" or "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

CONTACT:
Matthew Keating
HBTIR@hbtbank.com
(310) 622-8230


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

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

2020

2020

2019

2020

2019

INTEREST AND DIVIDEND INCOME

(dollars in thousands, except per share amounts)

Loans, including fees:

Taxable

$

25,497

$

25,118

$

28,039

$

102,893

$

117,296

Federally tax exempt

555

542

716

2,303

2,846

Securities:

Taxable

3,407

3,266

3,559

13,179

14,854

Federally tax exempt

1,208

1,233

1,269

4,696

5,728

Interest-bearing deposits in bank

65

65

1,003

938

2,951

Other interest and dividend income

14

14

14

56

60

Total interest and dividend income

30,746

30,238

34,600

124,065

143,735

INTEREST EXPENSE

Deposits

741

843

1,838

4,221

7,932

Securities sold under agreements to repurchase

8

9

24

48

72

Borrowings

1

2

2

9

Subordinated notes

469

147

616

Junior subordinated debentures issued to capital trusts

364

367

460

1,573

1,922

Total interest expense

1,582

1,367

2,324

6,460

9,935

Net interest income

29,164

28,871

32,276

117,605

133,800

PROVISION FOR LOAN LOSSES

430

2,174

138

10,532

3,404

Net interest income after provision for loan losses

28,734

26,697

32,138

107,073

130,396

NONINTEREST INCOME

Card income

2,151

2,146

1,952

8,087

7,765

Service charges on deposit accounts

1,527

1,493

2,065

5,987

7,870

Wealth management fees

2,270

1,646

1,911

7,237

6,827

Mortgage servicing

803

724

801

2,978

3,143

Mortgage servicing rights fair value adjustment

363

(268

)

582

(2,584

)

(2,400

)

Gains on sale of mortgage loans

2,980

3,184

915

8,835

3,092

Gains (losses) on securities

30

(2

)

(47

)

33

(5

)

Gains (losses) on foreclosed assets

22

27

808

142

940

Gains (losses) on other assets

1

(71

)

1,244

Title insurance activity

167

Other noninterest income

946

1,101

1,349

3,812

4,108

Total noninterest income

11,092

10,052

10,336

34,456

32,751

NONINTEREST EXPENSE

Salaries

12,593

12,595

12,581

50,616

49,003

Employee benefits

1,490

1,666

1,663

8,045

9,883

Occupancy of bank premises

1,501

1,609

1,607

6,580

6,867

Furniture and equipment

556

679

763

2,447

2,813

Data processing

1,901

1,583

1,547

6,742

5,570

Marketing and customer relations

925

690

1,036

3,476

3,873

Amortization of intangible assets

305

305

336

1,232

1,423

FDIC insurance

231

222

(237

)

707

198

Loan collection and servicing

463

450

732

1,755

2,633

Foreclosed assets

154

226

151

557

676

Other noninterest expense

2,546

2,460

1,771

9,799

8,087

Total noninterest expense

22,665

22,485

21,950

91,956

91,026

INCOME BEFORE INCOME TAX EXPENSE

17,161

14,264

20,524

49,573

72,121

INCOME TAX EXPENSE

4,519

3,701

4,437

12,728

5,256

NET INCOME

$

12,642

$

10,563

$

16,087

$

36,845

$

66,865

EARNINGS PER SHARE - BASIC

$

0.46

$

0.38

$

0.61

$

1.34

$

3.33

EARNINGS PER SHARE - DILUTED

$

0.46

$

0.38

$

0.61

$

1.34

$

3.33

WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING

27,457,306

27,457,306

26,211,282

27,457,306

20,090,270

PRO FORMA C CORP EQUIVALENT INFORMATION

Historical income before income tax expense

$

20,524

$

72,121

Pro forma C Corp equivalent income tax expense

5,436

18,749

Pro forma C Corp equivalent net income

$

15,088

$

53,372

PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - BASIC

$

0.58

$

2.66

PRO FORMA C CORP EQUIVALENT EARNINGS PER SHARE - DILUTED

$

0.58

$

2.66



HBT Financial, Inc.
Consolidated Financial Summary
Consolidated Balance Sheets

December 31,

September 30,

December 31,

2020

2020

2019

(dollars in thousands)

ASSETS

Cash and due from banks

$

24,912

$

22,347

$

22,112

Interest-bearing deposits with banks

287,539

214,377

261,859

Cash and cash equivalents

312,451

236,724

283,971

Interest-bearing time deposits with banks

248

Debt securities available-for-sale, at fair value

922,869

814,798

592,404

Debt securities held-to-maturity

68,395

74,510

88,477

Equity securities

4,844

4,814

4,389

Restricted stock, at cost

2,498

2,498

2,425

Loans held for sale

14,713

23,723

4,531

Loans, before allowance for loan losses

2,247,006

2,279,639

2,163,826

Allowance for loan losses

(31,838

)

(31,654

)

(22,299

)

Loans, net of allowance for loan losses

2,215,168

2,247,985

2,141,527

Bank premises and equipment, net

52,904

53,271

53,987

Bank premises held for sale

121

121

121

Foreclosed assets

4,168

3,857

5,099

Goodwill

23,620

23,620

23,620

Core deposit intangible assets, net

2,798

3,103

4,030

Mortgage servicing rights, at fair value

5,934

5,571

8,518

Investments in unconsolidated subsidiaries

1,165

1,165

1,165

Accrued interest receivable

14,255

13,820

13,951

Other assets

20,664

25,643

16,640

Total assets

$

3,666,567

$

3,535,223

$

3,245,103

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Deposits:

Noninterest-bearing

$

882,939

$

850,306

$

689,116

Interest-bearing

2,247,595

2,166,355

2,087,739

Total deposits

3,130,534

3,016,661

2,776,855

Securities sold under agreements to repurchase

45,736

45,438

44,433

Subordinated notes

39,238

39,218

Junior subordinated debentures issued to capital trusts

37,648

37,632

37,583

Other liabilities

49,494

53,314

Total liabilities

3,302,650

3,179,929

2,912,185

Stockholders' Equity

Common stock

275

275

275

Surplus

190,875

190,787

190,524

Retained earnings

154,614

146,101

134,287

Accumulated other comprehensive income

18,153

18,131

7,832

Total stockholders’ equity

363,917

355,294

332,918

Total liabilities and stockholders’ equity

$

3,666,567

$

3,535,223

$

3,245,103

SHARE INFORMATION

Ending number shares of common stock outstanding

27,457,306

27,457,306

27,457,306



HBT Financial, Inc.
Consolidated Financial Summary

December 31,

September 30,

December 31,

2020

2020

2019

(dollars in thousands)

LOANS

Commercial and industrial

$

393,312

$

389,231

$

307,175

Agricultural and farmland

222,723

235,597

207,776

Commercial real estate - owner occupied

222,360

225,345

231,162

Commercial real estate - non-owner occupied

520,395

532,454

579,757

Multi-family

236,391

199,441

179,073

Construction and land development

225,652

265,758

224,887

One-to-four family residential

306,775

308,365

313,580

Municipal, consumer, and other

119,398

123,448

120,416

Loans, before allowance for loan losses

$

2,247,006

$

2,279,639

$

2,163,826

PPP LOANS (included above)

Commercial and industrial

$

153,860

$

168,466

$

Agricultural and farmland

3,049

4,179

Municipal, consumer, and other

6,587

7,095

Total PPP Loans

$

163,496

$

179,740

$


December 31,

September 30,

December 31,

2020

2020

2019

(dollars in thousands)

DEPOSITS

Noninterest-bearing

$

882,939

$

850,306

$

689,116

Interest-bearing demand

968,592

885,719

814,639

Money market

462,056

475,047

477,765

Savings

517,473

497,682

438,927

Time

299,474

307,907

356,408

Total deposits

$

3,130,534

$

3,016,661

$

2,776,855



HBT Financial, Inc.
Consolidated Financial Summary

Three Months Ended

December 31, 2020

September 30, 2020

December 31, 2019

Average

Average

Average

Balance

Interest

Yield/Cost *

Balance

Interest

Yield/Cost *

Balance

Interest

Yield/Cost *

(dollars in thousands)

ASSETS

Loans

$

2,295,569

$

26,052

4.51

%

$

2,277,826

$

25,660

4.48

%

$

2,162,975

$

28,755

5.27

%

Securities

932,698

4,615

1.97

831,120

4,499

2.15

700,441

4,828

2.73

Deposits with banks

277,363

65

0.09

274,022

65

0.09

265,237

1,003

1.50

Other

2,498

14

2.26

2,498

14

2.29

2,425

14

2.37

Total interest-earning assets

3,508,128

$

30,746

3.49

%

3,385,466

$

30,238

3.55

%

3,131,078

$

34,600

4.38

%

Allowance for loan losses

(31,749

)

(30,221

)

(22,766

)

Noninterest-earning assets

157,208

157,446

152,961

Total assets

$

3,633,587

$

3,512,691

$

3,261,273

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Interest-bearing deposits:

Interest-bearing demand

$

930,494

$

111

0.05

%

$

888,941

$

123

0.05

%

$

820,390

$

299

0.14

%

Money market

475,183

89

0.07

479,314

96

0.08

486,288

481

0.39

Savings

506,381

39

0.03

493,278

37

0.03

434,241

71

0.06

Time

303,617

502

0.66

306,154

587

0.76

359,731

987

1.09

Total interest-bearing deposits

2,215,675

741

0.13

2,167,687

843

0.15

2,100,650

1,838

0.35

Securities sold under agreements to repurchase

51,297

8

0.06

51,686

9

0.06

46,028

24

0.21

Borrowings

326

0.51

1,196

1

0.47

272

2

2.58

Subordinated notes

39,219

469

4.76

11,976

147

4.87

Junior subordinated debentures issued to capital trusts

37,638

364

3.84

37,621

367

3.89

37,577

460

4.86

Total interest-bearing liabilities

2,344,155

$

1,582

0.27

%

2,270,166

$

1,367

0.24

%

2,184,527

$

2,324

0.42

%

Noninterest-bearing deposits

888,390

846,808

699,373

Noninterest-bearing liabilities

41,730

40,421

45,589

Total liabilities

3,274,275

3,157,395

2,929,489

Stockholders' Equity

359,312

355,296

331,784

Total liabilities and stockholders’ equity

$

3,633,587

$

3,512,691

$

3,261,273

Net interest income/Net interest margin (3)

$

29,164

3.31

%

$

28,871

3.39

%

$

32,276

4.09

%

Tax-equivalent adjustment (2)

502

0.05

495

0.06

534

0.07

Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (1) (2)

$

29,666

3.36

%

$

29,366

3.45

%

$

32,810

4.16

%

Net interest rate spread (4)

3.22

%

3.31

%

3.96

%

Net interest-earning assets (5)

$

1,163,973

$

1,115,300

$

946,551

Ratio of interest-earning assets to interest-bearing liabilities

1.50

1.49

1.43

Cost of total deposits

0.09

%

0.11

%

0.26

%


*

Annualized measure.

(1)

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

(2)

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

(3)

Net interest margin represents net interest income divided by average total interest-earning assets.

(4)

Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(5)

Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.



HBT Financial, Inc.
Consolidated Financial Summary

Year Ended

December 31, 2020

December 31, 2019

Average

Average

Balance

Interest

Yield/Cost

Balance

Interest

Yield/Cost

(dollars in thousands)

ASSETS

Loans

$

2,245,093

$

105,196

4.69

%

$

2,178,897

$

120,142

5.51

%

Securities

789,062

17,875

2.27

759,479

20,582

2.71

Deposits with banks

282,130

938

0.33

164,986

2,951

1.79

Other

2,479

56

2.28

2,501

60

2.41

Total interest-earning assets

3,318,764

$

124,065

3.74

%

3,105,863

$

143,735

4.63

%

Allowance for loan losses

(27,661

)

(21,704

)

Noninterest-earning assets

156,397

149,227

Total assets

$

3,447,500

$

3,233,386

LIABILITIES AND STOCKHOLDERS' EQUITY

Liabilities

Interest-bearing deposits:

Interest-bearing demand

$

873,060

$

647

0.07

%

$

821,480

$

1,474

0.18

%

Money market

474,033

697

0.15

463,233

1,837

0.40

Savings

477,260

196

0.04

430,220

278

0.06

Time

317,308

2,681

0.84

396,560

4,343

1.10

Total interest-bearing deposits

2,141,661

4,221

0.20

2,111,493

7,932

0.38

Securities sold under agreements to repurchase

49,714

48

0.10

41,177

72

0.18

Borrowings

1,080

2

0.22

351

9

2.60

Subordinated notes

12,869

616

4.79

Junior subordinated debentures issued to capital trusts

37,613

1,573

4.18

37,553

1,922

5.12

Total interest-bearing liabilities

2,242,937

$

6,460

0.29

%

2,190,574

$

9,935

0.45

%

Noninterest-bearing deposits

807,864

666,055

Noninterest-bearing liabilities

45,996

35,213

Total liabilities

3,096,797

2,891,842

Stockholders' Equity

350,703

341,544

Total liabilities and stockholders’ equity

$

3,447,500

3,233,386

Net interest income/Net interest margin (3)

$

117,605

3.54

%

$

133,800

4.31

%

Tax-equivalent adjustment (2)

1,943

0.06

2,309

0.07

Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (1) (2)

$

119,548

3.60

%

$

136,109

4.38

%

Net interest rate spread (4)

3.45

%

4.18

%

Net interest-earning assets (5)

$

1,075,827

$

915,289

Ratio of interest-earning assets to interest-bearing liabilities

1.48

1.42

Cost of total deposits

0.14

%

0.29

%


(1)

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

(2)

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

(3)

Net interest margin represents net interest income divided by average total interest-earning assets.

(4)

Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(5)

Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.


HBT Financial, Inc.
Consolidated Financial Summary

December 31,

September 30,

December 31,

2020

2020

2019

(dollars in thousands)

NONPERFORMING ASSETS

Nonaccrual

$

9,939

$

15,191

$

19,019

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

21

17

30

Total nonperforming loans

9,960

15,208

19,049

Foreclosed assets

4,168

3,857

5,099

Total nonperforming assets

$

14,128

$

19,065

$

24,148

NONPERFORMING ASSETS (Originated) (2)

Nonaccrual

$

2,908

$

10,179

$

10,811

Past due 90 days or more, still accruing

21

17

30

Total nonperforming loans (originated)

2,929

10,196

10,841

Foreclosed assets

674

939

1,022

Total nonperforming (originated)

$

3,603

$

11,135

$

11,863

NONPERFORMING ASSETS (Acquired) (2)

Nonaccrual

$

7,031

$

5,012

$

8,208

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

Total nonperforming loans (acquired)

7,031

5,012

8,208

Foreclosed assets

3,494

2,918

4,077

Total nonperforming assets (acquired)

$

10,525

$

7,930

$

12,285

Allowance for loan losses

$

31,838

$

31,654

$

22,299

Loans, before allowance for loan losses

$

2,247,006

$

2,279,639

$

2,163,826

Loans, before allowance for loan losses (originated) (2)

2,126,323

2,148,074

1,998,496

Loans, before allowance for loan losses (acquired) (2)

120,683

131,565

165,330

CREDIT QUALITY RATIOS

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

1.42

%

1.39

%

1.03

%

Allowance for loan losses to nonperforming loans

319.66

208.14

117.06

Nonperforming loans to loans, before allowance for loan losses

0.44

0.67

0.88

Nonperforming assets to total assets

0.39

0.54

0.74

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

0.63

0.83

1.11

CREDIT QUALITY RATIOS (Originated) (2)

Nonperforming loans to loans, before allowance for loan losses

0.14

%

0.47

%

0.54

%

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

0.17

0.52

0.59

CREDIT QUALITY RATIOS (Acquired) (2)

Nonperforming loans to loans, before allowance for loan losses

5.83

%

3.81

%

4.96

%

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

8.48

5.90

7.25


(1)

Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $0.6 million, $30 thousand, and $0.1 million as of December 31, 2020, September 30, 2020, and December 31, 2019, respectively.

(2)

Originated loans and acquired loans along with the related credit quality ratios such as nonperforming loans to loans, before allowance for loan losses (originated and acquired) and nonperforming assets to loans, before allowance for loan losses and foreclosed assets (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by the Company. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures.



HBT Financial, Inc.

Consolidated Financial Summary

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

2020

2020

2019

2020

2019

ALLOWANCE FOR LOAN LOSSES

(dollars in thousands)

Beginning balance

$

31,654

$

29,723

$

22,761

$

22,299

$

20,509

Provision

430

2,174

138

10,532

3,404

Charge-offs

(509

)

(1,078

)

(837

)

(2,968

)

(3,273

)

Recoveries

263

835

237

1,975

1,659

Ending balance

$

31,838

$

31,654

$

22,299

$

31,838

$

22,299

Net charge-offs (recoveries)

$

246

$

243

$

600

$

993

$

1,614

Net charge-offs (recoveries) - (originated) (1)

190

(20

)

550

345

732

Net charge-offs (recoveries) - (acquired) (1)

56

263

50

648

882

Average loans, before allowance for loan losses

$

2,295,569

$

2,277,826

$

2,162,975

$

2,245,093

$

2,178,897

Average loans, before allowance for loan losses (originated) (1)

2,169,256

2,140,376

1,988,658

2,102,904

1,981,658

Average loans, before allowance for loan losses (acquired) (1)

126,313

137,450

174,317

142,189

197,239

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

0.04

%

0.04

%

0.11

%

0.04

%

0.07

%

Net charge-offs to average loans, before allowance for loan losses (originated) * (1)

0.03

0.11

0.02

0.04

Net charge-offs to average loans, before allowance for loan losses (acquired) * (1)

0.18

0.76

0.11

0.46

0.45


*

Annualized measure.

(1)

Originated loans and acquired loans along with the related credit quality ratios such as net charge-offs (originated and acquired), average loans, before allowance for loan losses (originated and acquired), and net charge-offs to average loans, before allowance for loan losses (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by the Company. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures.



HBT Financial, Inc.
Consolidated Financial Summary

As of or for the Three Months Ended

Year Ended

December 31,

September 30,

December 31,

December 31,

2020

2020

2019

2020

2019

(dollars in thousands, except per share amounts)

EARNINGS AND PER SHARE INFORMATION

Net income

$

12,642

$

10,563

$

16,087

$

36,845

$

66,865

Earnings per share - Basic

0.46

0.38

0.61

1.34

3.33

Earnings per share - Diluted

0.46

0.38

0.61

1.34

3.33

C Corp equivalent net income (1)

N/A

N/A

$

15,088

N/A

$

53,372

C Corp equivalent earnings per share - Basic (1)

N/A

N/A

0.58

N/A

2.66

C Corp equivalent earnings per share - Diluted (1)

N/A

N/A

0.58

N/A

2.66

Book value per share

$

13.25

$

12.94

$

12.12

Ending number shares of common stock outstanding

27,457,306

27,457,306

27,457,306

Weighted average shares of common stock outstanding

27,457,306

27,457,306

26,211,282

27,457,306

20,090,270

SUMMARY RATIOS

Net interest margin *

3.31

%

3.39

%

4.09

%

3.54

%

4.31

%

Efficiency ratio

55.54

56.98

50.72

59.66

53.80

Loan to deposit ratio

71.78

75.57

77.92

Return on average assets *

1.38

%

1.20

%

1.96

%

1.07

%

2.07

%

Return on average stockholders' equity *

14.00

11.83

19.24

10.51

19.58

C Corp equivalent return on average assets * (1)

N/A

N/A

1.84

%

N/A

1.65

%

C Corp equivalent return on average stockholders' equity * (1)

N/A

N/A

18.04

N/A

15.63

NON-GAAP FINANCIAL MEASURES

Adjusted net income (2)

$

12,382

$

10,755

$

14,417

$

39,734

$

57,427

Adjusted earnings per share - Basic (2)

0.45

0.39

0.55

1.44

2.86

Adjusted earnings per share - Diluted (2)

0.45

0.39

0.55

1.44

2.86

Tangible book value per share (2)

$

12.29

$

11.97

$

11.12

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

3.36

%

3.45

%

4.16

%

3.60

%

4.38

%

Efficiency ratio (tax equivalent basis) (2)

54.86

56.27

50.10

58.91

53.06

Adjusted return on average assets * (2)

1.36

%

1.22

%

1.75

%

1.15

%

1.78

%

Adjusted return on average stockholders' equity * (2)

13.71

12.04

17.24

11.33

16.81

Return on average tangible common equity * (2)

15.12

%

12.80

%

21.00

%

11.38

%

21.35

%

C Corp equivalent return on average tangible common equity * (1) (2)