HBT HBT Financial Inc

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 $18.5 million, or $0.58 diluted earnings per share, for the second quarter of 2023. This compares to net income of $9.2 million, or $0.30 diluted earnings per share, for the first quarter of 2023, and net income of $14.1 million, or $0.49 diluted earnings per share, for the second quarter of 2022.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “I had the honor of being named CEO of HBT Financial and Heartland Bank and Trust Company during the second quarter. I look forward to continuing to work closely with Fred Drake, Executive Chairman; the rest of Board of Directors; and our executive team to deliver the consistently solid financial performance to which we are accustomed. I am very pleased with our financial performance for the second quarter of 2023. With a ROAA of 1.49% and a ROATCE of 19.91%, we continue to produce strong returns. Our granular deposit base and excellent credit quality continue to support our strong results. Although we continue to see pressure on deposit pricing, we were able to maintain a solid net interest margin of 4.16%, down only 4 basis points from last quarter. We completed our system conversion for our Town and Country Financial Corporation (“Town and Country”) acquisition and have fully integrated the Town and Country team. We look forward to recognizing the enhanced long-term value provided by the increased scale and new markets that this acquisition has provided.”

Adjusted Net Income

In addition to reporting GAAP results, the Company believes adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on sale of closed branch premises, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $18.8 million, or $0.58 adjusted diluted earnings per share, for the second quarter of 2023. This compares to adjusted net income of $19.9 million, or $0.64 adjusted diluted earnings per share, for the first quarter of 2023, and adjusted net income of $13.8 million, or $0.48 adjusted diluted earnings per share, for the second quarter of 2022 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2023 was $48.9 million, an increase of 4.3% from $46.8 million for the first quarter of 2023. The increase was primarily attributable to the increase in earning assets following the Town and Country merger completed on February 1, 2023 and higher yields on interest-earning assets. Partially offsetting this improvement was an increase in funding costs.

Relative to the second quarter of 2022, net interest income increased 42.2% from $34.4 million. The increase was primarily attributable to higher yields on interest-earning assets and the increase in average interest-earning assets following the Town and Country merger.

Net interest margin for the second quarter of 2023 was 4.16%, compared to 4.20% for the first quarter of 2023, and net interest margin (tax equivalent basis) for the second quarter of 2023 was 4.22% compared to 4.26% for the first quarter of 2023. The decrease was primarily attributable to higher funding costs with the cost of funds increasing to 0.71% for the second quarter of 2023, compared to 0.47% for the first quarter of 2023, which outpaced the increased asset yields which rose by 19 basis points to 4.83%. Acquired loan discount accretion contributed 9 basis points to net interest margin during the second quarter of 2023 and 7 basis points during the first quarter of 2023.

Relative to the second quarter of 2022, net interest margin increased from 3.34%. This increase was primarily attributable to higher yields on interest-earning assets. Acquired loan discount accretion contributed 3 basis points to net interest margin, during the second quarter of 2022.

Noninterest Income

Noninterest income for the second quarter of 2023 was $9.9 million, an increase of 33.3% from $7.4 million for the first quarter of 2023. The increase was primarily attributable to the absence of realized losses on sales of securities of $1.0 million included in the first quarter of 2023 results as well as a $0.8 million change in the mortgage servicing rights fair value adjustment. Additionally, increases in card income of $0.2 million and mortgage servicing income of $0.2 million primarily reflect the addition of Town and Country’s operations for the first full quarter.

Relative to the second quarter of 2022, noninterest income increased 15.9% from $8.6 million. The increase was primarily attributable to the Town and Country merger with a $0.6 million increase in mortgage servicing income, a $0.2 million increase in card income, and a $0.1 million increase in service charges on deposit accounts.

Noninterest Expense

Noninterest expense for the second quarter of 2023 was $34.0 million, a 5.5% decrease from $35.9 million for the first quarter of 2023. Acquisition-related noninterest expenses totaled $0.6 million during the second quarter of 2023, compared to $7.1 million during the first quarter of 2023. Excluding acquisition-related noninterest expenses, the $4.6 million increase in noninterest expense was primarily attributable to $0.8 million of legal fees and $0.8 million of accruals related to pending legal matters previously disclosed and incurred during the second quarter of 2023 that were not present in the first quarter of 2023 results. Settlements have been reached with plaintiffs in these matters which are now pending final court approval. Additionally, the second quarter of 2023 results included a full quarter’s impact of Town and Country’s operations.

Relative to the second quarter of 2022, noninterest expense increased 42.5% from $23.8 million, primarily attributable to the addition of Town and Country’s operations, additional legal costs and settlement accrual.

Acquisition-related expenses during the first and second quarter of 2023 are summarized below. There were no acquisition-related expenses during the second quarter of 2022. We do not expect material acquisition-related expenses related to Town and Country in subsequent quarters.

		Three Months Ended
		June 30, 2023				March 31, 2023
		(dollars in thousands)
PROVISION FOR CREDIT LOSSES		$	—			$	5,924
NONINTEREST EXPENSE
Salaries			66				3,518
Furniture and equipment			39				—
Data processing			176				1,855
Marketing and customer relations			10				14
Loan collection and servicing			125				—
Legal fees and other noninterest expense			211				1,753
Total noninterest expense			627				7,140
Total acquisition-related expenses		$	627			$	13,064

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.24 billion at June 30, 2023, compared with $3.20 billion at March 31, 2023 and $2.45 billion at June 30, 2022. The $49.1 million increase from March 31, 2023 was primarily attributable to a $52.8 million increase in commercial and industrial loans driven by new loan fundings and the purchase of $37.0 million of loans from two new strategic partners. The $53.9 million decrease in the construction and development loans was generally driven by the completion of a number of sizeable projects that are now amortizing and have been moved into other real estate loan categories, with the largest being a $29.5 million project that moved to the commercial real estate - non-owner occupied category. Additionally, we received a payoff on a $12.4 million substandard relationship in the commercial real estate - non-owner occupied category.

Deposits

Total deposits were $4.16 billion at June 30, 2023, compared with $4.31 billion at March 31, 2023 and $3.70 billion at June 30, 2022. The $146.0 million decrease from March 31, 2023 was primarily attributable to decreases in balances held in existing retail and business accounts partially offset by a seasonal increase in public fund account balances and the addition of $51.0 million of brokered deposits. Additionally, a higher than historical average net deposit inflow on March 31, 2023, as referenced in our first quarter of 2023 investor presentation, included $36 million related to one account which was withdrawn at the beginning of the second quarter of 2023.

Asset Quality

Nonperforming loans totaled $7.5 million, or 0.23% of total loans, at June 30, 2023, compared with $6.5 million, or 0.20% of total loans, at March 31, 2023, and $3.4 million, or 0.14% of total loans, at June 30, 2022. The $1.0 million increase in nonperforming loans from March 31, 2023 was primarily attributable to a $1.3 million increase in nonaccrual one-to-four family residential real estate loans.

The Company recorded a negative provision for credit losses of $0.2 million for the second quarter of 2023. The negative provision for credit losses primarily reflects a $1.1 million decrease in specific reserves, a $1.1 million increase in required reserves driven by growth of the loan portfolio and unfunded commitments, a $0.4 million decrease in required reserves resulting from changes in economic and qualitative factors, a $0.2 million increase in reserves on debt securities available-for-sale, related to one bank subordinated debt security, and net recoveries of $0.1 million.

The Company had net recoveries of $0.1 million, or (0.01)% of average loans on an annualized basis, for the second quarter of 2023, compared to net recoveries of $0.1 million, or (0.02)% of average loans on an annualized basis, for the first quarter of 2023, and net recoveries of $0.1 million, or (0.01)% of average loans on an annualized basis, for the second quarter of 2022.

The Company’s allowance for credit losses was 1.17% of total loans and 502% of nonperforming loans at June 30, 2023, compared with 1.21% of total loans and 595% of nonperforming loans at March 31, 2023.

Stock Repurchase Program

During the second quarter of 2023, the Company repurchased 229,502 shares of its common stock at a weighted average price of $18.07 under its stock repurchase program. The Company’s Board of Directors have authorized the repurchase of up to $15 million of HBT Financial common stock under its stock repurchase program in effect until January 1, 2024. As of June 30, 2023, the Company had $9.3 million remaining under the current stock repurchase authorization.

About HBT Financial, Inc.

HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. HBT provides a comprehensive suite of business, commercial, wealth management, and retail banking products and services to individuals, businesses and municipal entities throughout Illinois and Eastern Iowa through 67 full-service branches. As of June 30, 2023, HBT had total assets of $5.0 billion, total loans of $3.2 billion, and total deposits of $4.2 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 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 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); (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 ChapmanHBTIR@hbtbank.com(888) 897-2276

HBT Financial, Inc.Unaudited Consolidated Financial Summary
		As of or for the Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
		2023				2023				2022				2023				2022
		(dollars in thousands, except per share data)
Interest and dividend income		$	56,768			$	51,779			$	35,757			$	108,547			$	69,092
Interest expense			7,896				4,942				1,384				12,838				2,791
Net interest income			48,872				46,837				34,373				95,709				66,301
Provision for credit losses			(230	)			6,210				145				5,980				(439	)
Net interest income after provision for credit losses			49,102				40,627				34,228				89,729				66,740
Noninterest income			9,914				7,437				8,551				17,351				18,594
Noninterest expense			33,973				35,933				23,842				69,906				47,999
Income before income tax expense			25,043				12,131				18,937				37,174				37,335
Income tax expense			6,570				2,923				4,852				9,493				9,646
Net income		$	18,473			$	9,208			$	14,085			$	27,681			$	27,689
Earnings per share - Basic		$	0.58			$	0.30			$	0.49			$	0.88			$	0.96
Earnings per share - Diluted			0.58				0.30				0.49				0.88				0.95
Adjusted net income (1)		$	18,772			$	19,859			$	13,836			$	38,631			$	26,063
Adjusted earnings per share - Basic (1)			0.59				0.64				0.48				1.23				0.90
Adjusted earnings per share - Diluted (1)			0.58				0.64				0.48				1.22				0.90
Book value per share		$	14.15			$	14.02			$	12.97
Tangible book value per share (1)			11.58				11.45				11.90
Shares of common stock outstanding			31,865,868				32,095,370				28,831,197
Weighted average shares of common stock outstanding			31,980,133				30,977,204				28,891,202				31,481,439				28,938,634
SUMMARY RATIOS
Net interest margin *			4.16		%		4.20		%		3.34		%		4.18		%		3.21
Net interest margin (tax equivalent basis) * (1)(2)			4.22				4.26				3.39				4.24				3.26
Efficiency ratio			56.57		%		65.27		%		54.97		%		60.74		%		55.96
Efficiency ratio (tax equivalent basis) (1)(2)			55.89				64.43				54.22				59.99				55.23
Loan to deposit ratio			77.91		%		74.13		%		66.23		%
Return on average assets *			1.49		%		0.78		%		1.32		%		1.15		%		1.29
Return on average stockholders' equity *			16.30				8.84				14.92				12.73				14.23
Return on average tangible common equity * (1)			19.91				10.45				16.25				15.31				15.45
Adjusted return on average assets * (1)			1.51		%		1.69		%		1.29		%		1.60		%		1.22
Adjusted return on average stockholders' equity * (1)			16.57				19.08				14.66				17.77				13.40
Adjusted return on average tangible common equity * (1)			20.23				22.55				15.96				21.36				14.55
CAPITAL
Total capital to risk-weighted assets			15.03		%		15.11		%		16.76		%
Tier 1 capital to risk-weighted assets			13.12				13.16				14.59
Common equity tier 1 capital ratio			11.78				11.79				13.36
Tier 1 leverage ratio			10.07				10.29				10.05
Total stockholders' equity to total assets			9.06				8.98				8.85
Tangible common equity to tangible assets (1)			7.54				7.45				8.18
ASSET QUALITY
Net charge-offs (recoveries) to average loans, before allowance for credit losses			(0.01	)	%		(0.02	)	%		(0.01	)	%		(0.01	)	%		(0.10	)
Allowance for credit losses to loans, before allowance for credit losses			1.17				1.21				1.01
Nonperforming loans to loans, before allowance for credit losses			0.23				0.20				0.14
Nonperforming assets to total assets			0.21				0.20				0.15

________________________*   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 SummaryConsolidated Statements of Income
		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
		2023				2023				2022				2023				2022
INTEREST AND DIVIDEND INCOME		(dollars in thousands, except per share data)
Loans, including fees:
Taxable		$	47,149			$	42,159			$	27,843			$	89,308			$	54,649
Federally tax exempt			1,040				952				679				1,992				1,341
Securities:
Taxable			6,518				6,616				5,663				13,134				10,312
Federally tax exempt			1,162				1,197				1,138				2,359				2,178
Interest-bearing deposits in bank			781				739				420				1,520				579
Other interest and dividend income			118				116				14				234				33
Total interest and dividend income			56,768				51,779				35,757				108,547				69,092
INTEREST EXPENSE
Deposits			4,323				2,374				506				6,697				1,075
Securities sold under agreements to repurchase			34				38				8				72				17
Borrowings			2,189				1,297				1				3,486				2
Subordinated notes			469				470				469				939				939
Junior subordinated debentures issued to capital trusts			881				763				400				1,644				758
Total interest expense			7,896				4,942				1,384				12,838				2,791
Net interest income			48,872				46,837				34,373				95,709				66,301
PROVISION FOR CREDIT LOSSES			(230	)			6,210				145				5,980				(439	)
Net interest income after provision for credit losses			49,102				40,627				34,228				89,729				66,740
NONINTEREST INCOME
Card income			2,905				2,658				2,714				5,563				5,118
Wealth management fees			2,279				2,338				2,322				4,617				4,611
Service charges on deposit accounts			1,919				1,871				1,792				3,790				3,444
Mortgage servicing			1,254				1,099				661				2,353				1,319
Mortgage servicing rights fair value adjustment			141				(624	)			366				(483	)			2,095
Gains on sale of mortgage loans			373				276				326				649				913
Realized gains (losses) on sales of securities			—				(1,007	)			—				(1,007	)			—
Unrealized gains (losses) on equity securities			7				(22	)			(153	)			(15	)			(340	)
Gains (losses) on foreclosed assets			(97	)			(10	)			(7	)			(107	)			33
Gains (losses) on other assets			109				—				(43	)			109				150
Income on bank owned life insurance			147				115				41				262				81
Other noninterest income			877				743				532				1,620				1,170
Total noninterest income			9,914				7,437				8,551				17,351				18,594
NONINTEREST EXPENSE
Salaries			16,660				19,411				12,936				36,071				25,737
Employee benefits			2,707				2,335				1,984				5,042				4,428
Occupancy of bank premises			2,785				2,102				1,741				4,887				3,801
Furniture and equipment			809				659				623				1,468				1,175
Data processing			2,883				4,323				1,990				7,206				3,643
Marketing and customer relations			1,359				836				1,205				2,195				2,056
Amortization of intangible assets			720				510				245				1,230				490
FDIC insurance			630				563				298				1,193				586
Loan collection and servicing			348				278				278				626				435
Foreclosed assets			97				61				31				158				163
Other noninterest expense			4,975				4,855				2,511				9,830				5,485
Total noninterest expense			33,973				35,933				23,842				69,906				47,999
INCOME BEFORE INCOME TAX EXPENSE			25,043				12,131				18,937				37,174				37,335
INCOME TAX EXPENSE			6,570				2,923				4,852				9,493				9,646
NET INCOME		$	18,473			$	9,208			$	14,085			$	27,681			$	27,689
EARNINGS PER SHARE - BASIC		$	0.58			$	0.30			$	0.49			$	0.88			$	0.96
EARNINGS PER SHARE - DILUTED		$	0.58			$	0.30			$	0.49			$	0.88			$	0.95
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING			31,980,133				30,977,204				28,891,202				31,481,439				28,938,634

HBT Financial, Inc.Unaudited Consolidated Financial SummaryConsolidated Balance Sheets
		June 30,				March 31,				June 30,
		2023				2023				2022
		(dollars in thousands)
ASSETS
Cash and due from banks		$	28,044			$	35,244			$	25,478
Interest-bearing deposits with banks			81,764				141,868				134,553
Cash and cash equivalents			109,808				177,112				160,031
Interest-bearing time deposits with banks			—				249				—
Debt securities available-for-sale, at fair value			822,788				854,622				924,706
Debt securities held-to-maturity			533,231				536,429				548,236
Equity securities with readily determinable fair value			3,152				3,145				3,103
Equity securities with no readily determinable fair value			2,275				1,980				1,952
Restricted stock, at cost			11,345				4,991				2,813
Loans held for sale			8,829				5,130				5,312
Loans, before allowance for credit losses			3,244,655				3,195,540				2,451,826
Allowance for credit losses			(37,814	)			(38,776	)			(24,734	)
Loans, net of allowance for credit losses			3,206,841				3,156,764				2,427,092
Bank owned life insurance			23,594				23,447				7,474
Bank premises and equipment, net			65,029				65,119				51,433
Bank premises held for sale			35				235				319
Foreclosed assets			3,080				3,356				2,891
Goodwill			59,876				59,876				29,322
Intangible assets, net			22,122				22,842				1,453
Mortgage servicing rights, at fair value			20,133				19,992				10,089
Investments in unconsolidated subsidiaries			1,614				1,614				1,165
Accrued interest receivable			19,900				20,301				14,263
Other assets			62,158				56,617				32,324
Total assets		$	4,975,810			$	5,013,821			$	4,223,978
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing		$	1,125,823			$	1,218,888			$	1,028,790
Interest-bearing			3,038,700				3,091,633				2,673,196
Total deposits			4,164,523				4,310,521				3,701,986
Securities sold under agreements to repurchase			38,729				34,919				51,091
Federal Home Loan Bank advances			177,572				75,183				—
Subordinated notes			39,435				39,415				39,356
Junior subordinated debentures issued to capital trusts			52,760				52,746				37,747
Other liabilities			51,939				50,939				19,989
Total liabilities			4,524,958				4,563,723				3,850,169
Stockholders' Equity
Common stock			327				327				293
Surplus			294,875				294,441				222,087
Retained earnings			241,777				228,782				212,506
Accumulated other comprehensive income (loss)			(70,662	)			(62,175	)			(52,820	)
Treasury stock at cost			(15,465	)			(11,277	)			(8,257	)
Total stockholders’ equity			450,852				450,098				373,809
Total liabilities and stockholders’ equity		$	4,975,810			$	5,013,821			$	4,223,978
SHARE INFORMATION
Shares of common stock outstanding			31,865,868				32,095,370				28,831,197

HBT Financial, Inc.Unaudited Consolidated Financial Summary
		June 30,				March 31,				June 30,
		2023				2023				2022
		(dollars in thousands)
LOANS
Commercial and industrial		$	385,768			$	333,013			$	249,839
Commercial real estate - owner occupied			303,522				317,103				228,997
Commercial real estate - non-owner occupied			882,598				854,024				656,093
Construction and land development			335,262				389,142				332,041
Multi-family			375,536				362,672				269,452
One-to-four family residential			482,442				482,732				325,047
Agricultural and farmland			259,858				243,357				230,370
Municipal, consumer, and other			219,669				213,497				159,987
Loans, before allowance for credit losses		$	3,244,655			$	3,195,540			$	2,451,826
PPP LOANS (included above)
Commercial and industrial		$	22			$	25			$	2,823
Agricultural and farmland			—				—				9
Total PPP Loans		$	22			$	25			$	2,832

		June 30,				March 31,				June 30,
		2023				2023				2022
		(dollars in thousands)
DEPOSITS
Noninterest-bearing		$	1,125,823			$	1,218,888			$	1,028,790
Interest-bearing demand			1,181,187				1,270,454				1,162,292
Money market			730,652				662,088				581,058
Savings			657,506				738,719				654,953
Time			469,355				420,372				274,893
Total deposits		$	4,164,523			$	4,310,521			$	3,701,986

HBT Financial, Inc.Unaudited Consolidated Financial Summary
		Three Months Ended
		June 30, 2023									March 31, 2023									June 30, 2022
		AverageBalance				Interest			Yield/Cost*		AverageBalance				Interest			Yield/Cost*		AverageBalance				Interest			Yield/Cost*
		(dollars in thousands)
ASSETS
Loans		$	3,238,774			$	48,189		5.97	%	$	3,012,320			$	43,111		5.80	%	$	2,467,851			$	28,522		4.64	%
Securities			1,384,180				7,680		2.23			1,411,613				7,813		2.24			1,422,096				6,801		1.92
Deposits with banks			84,366				781		3.71			92,363				739		3.24			240,692				420		0.70
Other			8,577				118		5.52			7,425				116		6.33			2,809				14		2.07
Total interest-earning assets			4,715,897			$	56,768		4.83	%		4,523,721			$	51,779		4.64	%		4,133,448			$	35,757		3.47	%
Allowance for credit losses			(39,484	)								(33,301	)								(24,579	)
Noninterest-earning assets			299,622									274,870									177,433
Total assets		$	4,976,035								$	4,765,290								$	4,286,302
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand		$	1,224,285			$	683		0.22	%	$	1,230,644			$	458		0.15	%	$	1,159,077			$	144		0.05	%
Money market			675,530				1,516		0.90			634,608				935		0.60			582,016				110		0.08
Savings			687,014				189		0.11			709,862				178		0.10			661,661				52		0.03
Time			447,146				1,935		1.74			356,779				803		0.91			284,880				200		0.28
Total interest-bearing deposits			3,033,975				4,323		0.57			2,931,893				2,374		0.33			2,687,634				506		0.08
Securities sold under agreements to repurchase			34,170				34		0.40			39,619				38		0.38			51,057				8		0.07
Borrowings			173,040				2,189		5.07			113,896				1,297		4.62			440				1		1.34
Subordinated notes			39,424				469		4.78			39,403				470		4.83			39,346				469		4.79
Junior subordinated debentures issued to capital trusts			52,752				881		6.70			47,586				763		6.50			37,738				400		4.26
Total interest-bearing liabilities			3,333,361			$	7,896		0.95	%		3,172,397			$	4,942		0.63	%		2,816,215			$	1,384		0.20	%
Noninterest-bearing deposits			1,145,089									1,121,365									1,072,883
Noninterest-bearing liabilities			43,080									49,316									18,673
Total liabilities			4,521,530									4,343,078									3,907,771
Stockholders' Equity			454,505									422,212									378,531
Total liabilities and stockholders’ equity		$	4,976,035								$	4,765,290								$	4,286,302
Net interest income/Net interest margin (1)						$	48,872		4.16	%					$	46,837		4.20	%					$	34,373		3.34	%
Tax-equivalent adjustment (2)							715		0.06							702		0.06							598		0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3)						$	49,587		4.22	%					$	47,539		4.26	%					$	34,971		3.39	%
Net interest rate spread (4)									3.88	%								4.01	%								3.27	%
Net interest-earning assets (5)		$	1,382,536								$	1,351,324								$	1,317,233
Ratio of interest-earning assets to interest-bearing liabilities			1.41									1.43									1.47
Cost of total deposits									0.41	%								0.24	%								0.05	%
Cost of funds									0.71									0.47									0.14

________________________*   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
		Six Months Ended
		June 30, 2023									June 30, 2022
		AverageBalance				Interest			Yield/Cost *		AverageBalance				Interest			Yield/Cost *
		(dollars in thousands)
ASSETS
Loans		$	3,126,173			$	91,300		5.89	%	$	2,487,320			$	55,990		4.54	%
Securities			1,397,821				15,493		2.24			1,372,284				12,490		1.84
Deposits with banks			88,343				1,520		3.47			305,053				579		0.38
Other			8,004				234		5.89			2,775				33		2.43
Total interest-earning assets			4,620,341			$	108,547		4.74	%		4,167,432			$	69,092		3.34	%
Allowance for credit losses			(36,410	)								(24,340	)
Noninterest-earning assets			287,314									171,624
Total assets		$	4,871,245								$	4,314,716
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand		$	1,227,447			$	1,141		0.19	%	$	1,151,495			$	286		0.05	%
Money market			655,182				2,451		0.75			590,098				231		0.08
Savings			698,375				367		0.11			655,645				102		0.03
Time			402,212				2,738		1.37			297,706				456		0.31
Total interest-bearing deposits			2,983,216				6,697		0.45			2,694,944				1,075		0.08
Securities sold under agreements to repurchase			36,879				72		0.39			52,050				17		0.07
Borrowings			143,632				3,486		4.89			470				2		1.01
Subordinated notes			39,414				939		4.81			39,335				939		4.82
Junior subordinated debentures issued to capital trusts			50,183				1,644		6.61			37,730				758		4.05
Total interest-bearing liabilities			3,253,324			$	12,838		0.80	%		2,824,529			$	2,791		0.20	%
Noninterest-bearing deposits			1,133,292									1,075,387
Noninterest-bearing liabilities			46,181									22,466
Total liabilities			4,432,797									3,922,382
Stockholders' Equity			438,448									392,334
Total liabilities and stockholders’ equity		$	4,871,245									4,314,716
Net interest income/Net interest margin (1)						$	95,709		4.18	%					$	66,301		3.21	%
Tax-equivalent adjustment (2)							1,417		0.06							1,127		0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3)						$	97,126		4.24	%					$	67,428		3.26	%
Net interest rate spread (4)									3.94	%								3.14	%
Net interest-earning assets (5)		$	1,367,017								$	1,342,903
Ratio of interest-earning assets to interest-bearing liabilities			1.42									1.48
Cost of total deposits									0.33	%								0.06	%
Cost of funds									0.59									0.14

________________________*       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
		June 30,				March 31,				June 30,
		2023				2023				2022
		(dollars in thousands)
NONPERFORMING ASSETS
Nonaccrual		$	7,534			$	6,508			$	3,248
Past due 90 days or more, still accruing (1)			1				10				182
Total nonperforming loans			7,535				6,518				3,430
Foreclosed assets			3,080				3,356				2,891
Total nonperforming assets		$	10,615			$	9,874			$	6,321
Allowance for credit losses		$	37,814			$	38,776			$	24,734
Loans, before allowance for credit losses			3,244,655				3,195,540				2,451,826
CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses			1.17		%		1.21		%		1.01		%
Allowance for credit losses to nonaccrual loans			501.91				595.82				761.51
Allowance for credit losses to nonperforming loans			501.84				594.91				721.11
Nonaccrual loans to loans, before allowance for credit losses			0.23				0.20				0.13
Nonperforming loans to loans, before allowance for credit losses			0.23				0.20				0.14
Nonperforming assets to total assets			0.21				0.20				0.15
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets			0.33				0.31				0.26

________________________(1)   Prior to 2023, excludes loans acquired with deteriorated credit quality that are past due 90 or more days and accruing. Such loans totaled $23 thousand as of June 30, 2022.

		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
		2023				2023				2022				2023				2022
ALLOWANCE FOR CREDIT LOSSES ON LOANS		(dollars in thousands)
Beginning balance		$	38,776			$	25,333			$	24,508			$	25,333			$	23,936
Adoption of ASC 326			—				6,983				—				6,983				—
PCD allowance established in acquisition			—				1,247				—				1,247				—
Provision for credit losses			(1,080	)			5,101				145				4,021				(439	)
Charge-offs			(179	)			(142	)			(159	)			(321	)			(293	)
Recoveries			297				254				240				551				1,530
Ending balance		$	37,814			$	38,776			$	24,734			$	37,814			$	24,734
Net charge-offs (recoveries)		$	(118	)		$	(112	)		$	(81	)		$	(230	)		$	(1,237	)
Average loans, before allowance for credit losses			3,238,774				3,012,320				2,467,851				3,126,173				2,487,320
Net charge-offs (recoveries) to average loans, before allowance for credit losses *			(0.01	)	%		(0.02	)	%		(0.01	)	%		(0.01	)	%		(0.10	)	%

________________________*   Annualized measure.

		Three Months Ended												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
		2023				2023				2022				2023				2022
PROVISION FOR CREDIT LOSSES		(dollars in thousands)
Loans (1)		$	(1,080	)		$	5,101			$	145			$	4,021			$	(439	)
Unfunded lending-related commitments (1)			650				509				—				1,159				—
Debt securities			200				600				—				800				—
Total provision for credit losses		$	(230	)		$	6,210			$	145			$	5,980			$	(439	)

________________________(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												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
		2023				2023				2022				2023				2022
		(dollars in thousands)
Net income		$	18,473			$	9,208			$	14,085			$	27,681			$	27,689
Adjustments:
Acquisition expenses (1)			(627	)			(13,064	)			—				(13,691	)			—
Gains (losses) on sales of closed branch premises			75				—				(18	)			75				179
Realized gains (losses) on sales of securities			—				(1,007	)			—				(1,007	)			—
Mortgage servicing rights fair value adjustment			141				(624	)			366				(483	)			2,095
Total adjustments			(411	)			(14,695	)			348				(15,106	)			2,274
Tax effect of adjustments			112				4,044				(99	)			4,156				(648	)
Less adjustments, after tax effect			(299	)			(10,651	)			249				(10,950	)			1,626
Adjusted net income		$	18,772			$	19,859			$	13,836			$	38,631			$	26,063
Average assets		$	4,976,035			$	4,765,290			$	4,286,302			$	4,871,245			$	4,314,716
Return on average assets *			1.49		%		0.78		%		1.32		%		1.15		%		1.29		%
Adjusted return on average assets *			1.51				1.69				1.29				1.60				1.22

________________________*       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												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
		2023				2023				2022				2023				2022
		(dollars in thousands, except per share data)
Numerator:
Net income		$	18,473			$	9,208			$	14,085			$	27,681			$	27,689
Earnings allocated to participating securities (1)			(11	)			(5	)			(17	)			(16	)			(34	)
Numerator for earnings per share - basic and diluted		$	18,462			$	9,203			$	14,068			$	27,665			$	27,655
Adjusted net income		$	18,772			$	19,859			$	13,836			$	38,631			$	26,063
Earnings allocated to participating securities (1)			(10	)			(13	)			(17	)			(23	)			(32	)
Numerator for adjusted earnings per share - basic and diluted		$	18,762			$	19,846			$	13,819			$	38,608			$	26,031
Denominator:
Weighted average common shares outstanding			31,980,133				30,977,204				28,891,202				31,481,439				28,938,634
Dilutive effect of outstanding restricted stock units			99,850				69,947				53,674				84,981				48,688
Weighted average common shares outstanding, including all dilutive potential shares			32,079,983				31,047,151				28,944,876				31,566,420				28,987,322
Earnings per share - Basic		$	0.58			$	0.30			$	0.49			$	0.88			$	0.96
Earnings per share - Diluted		$	0.58			$	0.30			$	0.49			$	0.88			$	0.95
Adjusted earnings per share - Basic		$	0.59			$	0.64			$	0.48			$	1.23			$	0.90
Adjusted earnings per share - Diluted		$	0.58			$	0.64			$	0.48			$	1.22			$	0.90

________________________(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												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
		2023				2023				2022				2023				2022
		(dollars in thousands)
Net interest income (tax equivalent basis)
Net interest income		$	48,872			$	46,837			$	34,373			$	95,709			$	66,301
Tax-equivalent adjustment (1)			715				702				598				1,417				1,127
Net interest income (tax equivalent basis) (1)		$	49,587			$	47,539			$	34,971			$	97,126			$	67,428
Net interest margin (tax equivalent basis)
Net interest margin *			4.16		%		4.20		%		3.34		%		4.18		%		3.21		%
Tax-equivalent adjustment * (1)			0.06				0.06				0.05				0.06				0.05
Net interest margin (tax equivalent basis) * (1)			4.22		%		4.26		%		3.39		%		4.24		%		3.26		%
Average interest-earning assets		$	4,715,897			$	4,523,721			$	4,133,448			$	4,620,341			$	4,167,432

________________________*   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												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
		2023				2023				2022				2023				2022
		(dollars in thousands)
Efficiency ratio (tax equivalent basis)
Total noninterest expense		$	33,973			$	35,933			$	23,842			$	69,906			$	47,999
Less: amortization of intangible assets			720				510				245				1,230				490
Adjusted noninterest expense		$	33,253			$	35,423			$	23,597			$	68,676			$	47,509
Net interest income		$	48,872			$	46,837			$	34,373			$	95,709			$	66,301
Total noninterest income			9,914				7,437				8,551				17,351				18,594
Operating revenue			58,786				54,274				42,924				113,060				84,895
Tax-equivalent adjustment (1)			715				702				598				1,417				1,127
Operating revenue (tax equivalent basis) (1)		$	59,501			$	54,976			$	43,522			$	114,477			$	86,022
Efficiency ratio			56.57		%		65.27		%		54.97		%		60.74		%		55.96		%
Efficiency ratio (tax equivalent basis) (1)			55.89				64.43				54.22				59.99				55.23

________________________(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
		June 30,				March 31,				June 30,
		2023				2023				2022
		(dollars in thousands, except per share data)
Tangible common equity
Total stockholders' equity		$	450,852			$	450,098			$	373,809
Less: Goodwill			59,876				59,876				29,322
Less: Intangible assets, net			22,122				22,842				1,453
Tangible common equity		$	368,854			$	367,380			$	343,034
Tangible assets
Total assets		$	4,975,810			$	5,013,821			$	4,223,978
Less: Goodwill			59,876				59,876				29,322
Less: Intangible assets, net			22,122				22,842				1,453
Tangible assets		$	4,893,812			$	4,931,103			$	4,193,203
Total stockholders' equity to total assets			9.06		%		8.98		%		8.85		%
Tangible common equity to tangible assets			7.54				7.45				8.18
Shares of common stock outstanding			31,865,868				32,095,370				28,831,197
Book value per share		$	14.15			$	14.02			$	12.97
Tangible book value per share			11.58				11.45				11.90

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												Six Months Ended
		June 30,				March 31,				June 30,				June 30,
		2023				2023				2022				2023				2022
		(dollars in thousands)
Average tangible common equity
Total stockholders' equity		$	454,505			$	422,212			$	378,531			$	438,448			$	392,334
Less: Goodwill			59,876				49,352				29,322				54,643				29,322
Less: Intangible assets, net			22,520				15,635				1,597				19,097				1,720
Average tangible common equity		$	372,109			$	357,225			$	347,612			$	364,708			$	361,292
Net income		$	18,473			$	9,208			$	14,085			$	27,681			$	27,689
Adjusted net income			18,772				19,859				13,836				38,631				26,063
Return on average stockholders' equity *			16.30		%		8.84		%		14.92		%		12.73		%		14.23		%
Return on average tangible common equity *			19.91				10.45				16.25				15.31				15.45
Adjusted return on average stockholders' equity *			16.57		%		19.08		%		14.66		%		17.77		%		13.40		%
Adjusted return on average tangible common equity *			20.23				22.55				15.96				21.36				14.55

________________________*       Annualized measure.