HBT Financial, Inc. Announces Third Quarter 2023 Financial Results

Third Quarter Highlights

Net income of $19.7 million, or $0.62 per diluted share; return on average assets (ROAA) of 1.58%; return on average stockholders' equity (ROAE) of 17.02%; and return on average tangible common equity (ROATCE)⁽¹⁾ of 20.70%
Adjusted net income⁽¹⁾ of $20.3 million; or $0.63 per diluted share; adjusted ROAA⁽¹⁾ of 1.62%; adjusted ROAE⁽¹⁾ of 17.51%; and adjusted ROATCE⁽¹⁾ of 21.29%
Asset quality remained strong with nonperforming assets to total assets of 0.16%
Net interest margin of 4.07% and net interest margin (tax-equivalent basis)⁽¹⁾ of 4.13%

BLOOMINGTON, Ill., Oct. 23, 2023 (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 $19.7 million, or $0.62 diluted earnings per share, for the third quarter of 2023. This compares to net income of $18.5 million, or $0.58 diluted earnings per share, for the second quarter of 2023, and net income of $15.6 million, or $0.54 diluted earnings per share, for the third quarter of 2022.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “This was another strong quarter of profitability with a ROAA of 1.58%, a ROATCE of 20.70%, and our highest quarterly diluted earnings per share since our IPO in October of 2019. Our balance sheet strength continues to show with our core deposit franchise allowing us to maintain a low cost of funds of 0.96% and credit quality remaining solid with nonperforming assets at only 0.16% of total assets. Our net interest margin remained very solid at 4.13% on a tax-equivalent basis⁽¹⁾ as loan growth and asset mix improvement continue to partially offset funding cost increases. We have continued to maintain our consistently conservative underwriting standards while also increasing loans by 3% during the quarter. In addition, our loan portfolio remains very well diversified with limited exposure to higher risk segments, such as office commercial real estate. Despite a decrease in accumulated other comprehensive income (loss) due to rising interest rates during the quarter, we were able to increase all capital measures and maintain a strong capital base providing us with flexibility for future capital deployment. We believe our consistent financial performance will enable us to continue enhancing the value of our franchise.”
____________________________________
(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 $20.3 million, or $0.63 adjusted diluted earnings per share, for the third quarter of 2023. This compares to adjusted net income of $18.8 million, or $0.58 adjusted diluted earnings per share, for the second quarter of 2023, and adjusted net income of $15.9 million, or $0.55 adjusted diluted earnings per share, for the third 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).

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2023 was $48.3 million, a slight decrease from $48.9 million for the second quarter of 2023. The decrease was primarily attributable to an increase in funding costs which were largely offset by higher yields on loans and a more favorable interest-earning asset mix.

Relative to the third quarter of 2022, net interest income increased 29.1% from $37.4 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.

Net interest margin for the third quarter of 2023 was 4.07%, compared to 4.16% for the second quarter of 2023, and net interest margin (tax-equivalent basis)⁽¹⁾ for the third quarter of 2023 was 4.13% compared to 4.22% for the second quarter of 2023. The decrease was primarily attributable to higher funding costs with the cost of funds increasing to 0.96% for the third quarter of 2023, compared to 0.71% for the second quarter of 2023, partially offset by higher yields on loans and a more favorable interest-earning asset mix.

Relative to the third quarter of 2022, net interest margin increased from 3.65%. This increase was primarily attributable to higher yields on interest-earning assets.
____________________________________
(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 third quarter of 2023 was $9.5 million, a decrease of 4.3% from $9.9 million for the second quarter of 2023. The decrease was primarily attributable to $0.8 million of losses realized on the sale of debt securities during the third quarter of 2023 which were not present in the second quarter of 2023 results. Partially offsetting these losses was a $0.6 million gain on sale of foreclosed assets compared to a $0.1 million loss included in the second quarter of 2023 results.

Relative to the third quarter of 2022, noninterest income increased 15.3% from $8.2 million. The increase was primarily attributable to the Town and Country merger completed in the first quarter of 2023 which contributed to a $0.5 million increase in mortgage servicing income, a $0.3 million increase in wealth management fees, and a $0.2 million increase in card income.

Noninterest Expense

Noninterest expense for the third quarter of 2023 was $30.7 million, a 9.7% decrease from $34.0 million for the second quarter of 2023. The decrease was primarily attributable to the realization of planned cost reductions following the Town and Country core system conversion completed in April 2023. Additionally, the absence of $0.8 million of legal fees and $0.8 million of accruals related to pending legal matters previously disclosed during the second quarter of 2023 further contributed to the decrease in noninterest expense during the third quarter of 2023.

Relative to the third quarter of 2022, noninterest expense increased 27.8% from $24.0 million, primarily attributable to 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						Nine Months Ended September 30,
(dollars in thousands)	September 30, 2023		June 30, 2023		September 30, 2022		2023		2022

PROVISION FOR CREDIT LOSSES	$	—	$	—	$	—	$	5,924	$	—
NONINTEREST EXPENSE
Salaries		—		66		—		3,584		—
Furniture and equipment		—		39		—		39		—
Data processing		—		176		—		2,031		—
Marketing and customer relations		—		10		—		24		—
Loan collection and servicing		—		125		—		125		—
Legal fees and other noninterest expense		—		211		462		1,964		462
Total noninterest expense		—		627		462		7,767		462
Total acquisition-related expenses	$	—	$	627	$	462	$	13,691	$	462

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.34 billion at September 30, 2023, compared with $3.24 billion at June 30, 2023 and $2.58 billion at September 30, 2022. The $98.1 million increase from June 30, 2023 was primarily attributable to draws on existing construction projects and new fundings to primarily existing customers, in part driven by seasonally higher agricultural line of credit usage. Balance increases in the commercial real estate - non-owner occupied and multi-family categories were driven predominately by the completion of projects previously in the construction and land development category.

Deposits

Total deposits were $4.20 billion at September 30, 2023, compared with $4.16 billion at June 30, 2023 and $3.64 billion at September 30, 2022. The $33.5 million increase from June 30, 2023 was primarily attributable to a $64.0 million increase in brokered deposits, partially offset by decreases in balances held in mainly smaller balance accounts.

Asset Quality

Nonperforming loans totaled $6.7 million, or 0.20% of total loans, at September 30, 2023, compared with $7.5 million, or 0.23% of total loans, at June 30, 2023, and $3.2 million, or 0.12% of total loans, at September 30, 2022. Additionally, of the $6.7 million of nonperforming loans held as of September 30, 2023, $2.0 million is either wholly or partially guaranteed by the U.S. Government. The $0.9 million decrease in nonperforming loans from June 30, 2023 was primarily attributable to reductions as the result of foreclosures and charge-offs on several smaller credits.

The Company recorded a provision for credit losses of $0.5 million for the third quarter of 2023. The provision for credit losses primarily reflects a $0.9 million increase in required reserves driven by growth of the loan portfolio, a $0.8 million increase in required reserves resulting from changes in economic and qualitative factors, a $0.8 million decrease in reserves on debt securities available-for-sale, a $0.5 million decrease in specific reserve, 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 third quarter of 2023, compared to net recoveries of $0.1 million, or 0.01% of average loans on an annualized basis, for the second quarter of 2023, and net charge-offs of $0.1 million, or 0.01% of average loans on an annualized basis, for the third quarter of 2022.

The Company’s allowance for credit losses was 1.16% of total loans and 582% of nonperforming loans at September 30, 2023, compared with 1.17% of total loans and 502% of nonperforming loans at June 30, 2023. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $4.4 million as of September 30, 2023.

Stock Repurchase Program

During the third quarter of 2023, the Company repurchased 91,728 shares of its common stock at a weighted average price of $18.48 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 September 30, 2023, the Company had $7.6 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 September 30, 2023, HBT had total assets of $5.0 billion, total loans of $3.3 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 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									Nine Months Ended September 30,
(dollars in thousands, except per share data)	September 30, 2023			June 30, 2023			September 30, 2022			2023			2022
Interest and dividend income	$	59,041		$	56,768		$	39,014		$	167,588		$	108,106
Interest expense		10,762			7,896			1,624			23,600			4,415
Net interest income		48,279			48,872			37,390			143,988			103,691
Provision for credit losses		480			(230	)		386			6,460			(53	)
Net interest income after provision for credit losses		47,799			49,102			37,004			137,528			103,744
Noninterest income		9,490			9,914			8,234			26,841			26,828
Noninterest expense		30,671			33,973			23,998			100,577			71,997
Income before income tax expense		26,618			25,043			21,240			63,792			58,575
Income tax expense		6,903			6,570			5,613			16,396			15,259
Net income	$	19,715		$	18,473		$	15,627		$	47,396		$	43,316

Earnings per share - Diluted	$	0.62		$	0.58		$	0.54		$	1.49		$	1.49

Adjusted net income ⁽¹⁾	$	20,279		$	18,772		$	15,856		$	58,910		$	41,919
Adjusted earnings per share - Diluted ⁽¹⁾		0.63			0.58			0.55			1.86			1.45

Book value per share	$	14.36		$	14.15		$	12.49
Tangible book value per share ⁽¹⁾		11.80			11.58			11.43

Shares of common stock outstanding		31,774,140			31,865,868			28,752,626
Weighted average shares of common stock outstanding		31,829,250			31,980,133			28,787,662			31,598,650			28,887,757

SUMMARY RATIOS
Net interest margin *		4.07	%		4.16	%		3.65	%		4.14	%		3.36	%
Net interest margin (tax-equivalent basis) * ⁽¹⁾⁽²⁾		4.13			4.22			3.72			4.20			3.41

Efficiency ratio		51.85	%		56.57	%		52.07	%		57.73	%		54.60	%
Efficiency ratio (tax-equivalent basis) ⁽¹⁾⁽²⁾		51.25			55.89			51.31			57.04			53.86

Loan to deposit ratio		79.63	%		77.91	%		70.81	%

Return on average assets *		1.58	%		1.49	%		1.47	%		1.29	%		1.35	%
Return on average stockholders' equity *		17.02			16.30			16.27			14.22			14.91
Return on average tangible common equity * ⁽¹⁾		20.70			19.91			17.70			17.17			16.20

Adjusted return on average assets * ⁽¹⁾		1.62	%		1.51	%		1.49	%		1.61	%		1.31	%
Adjusted return on average stockholders' equity * ⁽¹⁾		17.51			16.57			16.51			17.68			14.43
Adjusted return on average tangible common equity * ⁽¹⁾		21.29			20.23			17.96			21.34			15.67

CAPITAL
Total capital to risk-weighted assets		15.09	%		15.03	%		16.34	%
Tier 1 capital to risk-weighted assets		13.18			13.12			14.26
Common equity tier 1 capital ratio		11.88			11.78			13.08
Tier 1 leverage ratio		10.34			10.07			10.44
Total stockholders' equity to total assets		9.14			9.06			8.52
Tangible common equity to tangible assets ⁽¹⁾		7.64			7.54			7.85

ASSET QUALITY
Net charge-offs (recoveries) to average loans		(0.01)	%		(0.01)	%		0.01	%		(0.01)	%		(0.06)	%
Allowance for credit losses to loans, before allowance for credit losses		1.16			1.17			0.97
Nonperforming loans to loans, before allowance for credit losses		0.20			0.23			0.12
Nonperforming assets to total assets		0.16			0.21			0.14

* 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									Nine Months Ended September 30,
(dollars in thousands, except per share data)	September 30, 2023			June 30, 2023			September 30, 2022				2023			2022
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable	$	49,640		$	47,149		$	29,855		$	138,948		$	84,504
Federally tax exempt		1,072			1,040			842			3,064			2,183
Securities:
Taxable		6,451			6,518			6,635			19,585			16,947
Federally tax exempt		978			1,162			1,207			3,337			3,385
Interest-bearing deposits in bank		714			781			458			2,234			1,037
Other interest and dividend income		186			118			17			420			50
Total interest and dividend income		59,041			56,768			39,014			167,588			108,106
INTEREST EXPENSE
Deposits		7,211			4,323			587			13,908			1,662
Securities sold under agreements to repurchase		35			34			9			107			26
Borrowings		2,108			2,189			85			5,594			87
Subordinated notes		470			469			470			1,409			1,409
Junior subordinated debentures issued to capital trusts		938			881			473			2,582			1,231
Total interest expense		10,762			7,896			1,624			23,600			4,415
Net interest income		48,279			48,872			37,390			143,988			103,691
PROVISION FOR CREDIT LOSSES		480			(230	)		386			6,460			(53	)
Net interest income after provision for credit losses		47,799			49,102			37,004			137,528			103,744
NONINTEREST INCOME
Card income		2,763			2,905			2,569			8,326			7,687
Wealth management fees		2,381			2,279			2,059			6,998			6,670
Service charges on deposit accounts		2,040			1,919			1,927			5,830			5,371
Mortgage servicing		1,169			1,254			697			3,522			2,016
Mortgage servicing rights fair value adjustment		23			141			351			(460	)		2,446
Gains on sale of mortgage loans		476			373			354			1,125			1,267
Realized gains (losses) on sales of securities		(813	)		—			—			(1,820	)		—
Unrealized gains (losses) on equity securities		(46	)		7			(107	)		(61	)		(447	)
Gains (losses) on foreclosed assets		550			(97	)		(225	)		443			(192	)
Gains (losses) on other assets		52			109			(31	)		161			119
Income on bank owned life insurance		153			147			41			415			122
Other noninterest income		742			877			599			2,362			1,769
Total noninterest income		9,490			9,914			8,234			26,841			26,828
NONINTEREST EXPENSE
Salaries		15,644			16,660			12,752			51,715			38,489
Employee benefits		2,616			2,707			1,771			7,658			6,199
Occupancy of bank premises		2,573			2,785			1,979			7,460			5,780
Furniture and equipment		667			809			668			2,135			1,843
Data processing		2,581			2,883			1,631			9,787			5,274
Marketing and customer relations		1,679			1,359			880			3,874			2,936
Amortization of intangible assets		720			720			243			1,950			733
FDIC insurance		512			630			302			1,705			888
Loan collection and servicing		345			348			336			971			771
Foreclosed assets		76			97			97			234			260
Other noninterest expense		3,258			4,975			3,339			13,088			8,824
Total noninterest expense		30,671			33,973			23,998			100,577			71,997
INCOME BEFORE INCOME TAX EXPENSE		26,618			25,043			21,240			63,792			58,575
INCOME TAX EXPENSE		6,903			6,570			5,613			16,396			15,259
NET INCOME	$	19,715		$	18,473		$	15,627		$	47,396		$	43,316

EARNINGS PER SHARE - BASIC	$	0.62		$	0.58		$	0.54		$	1.50		$	1.50
EARNINGS PER SHARE - DILUTED	$	0.62		$	0.58		$	0.54		$	1.49		$	1.49
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING		31,829,250			31,980,133			28,787,662			31,598,650			28,887,757

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

(dollars in thousands)	September 30, 2023			June 30, 2023			September 30, 2022
ASSETS
Cash and due from banks	$	24,757		$	28,044		$	22,169
Interest-bearing deposits with banks		87,156			81,764			56,046
Cash and cash equivalents		111,913			109,808			78,215

Interest-bearing time deposits with banks		500			—			—
Debt securities available-for-sale, at fair value		753,163			822,788			853,740
Debt securities held-to-maturity		527,144			533,231			546,694
Equity securities with readily determinable fair value		3,106			3,152			2,996
Equity securities with no readily determinable fair value		2,300			2,275			1,977
Restricted stock, at cost		11,165			11,345			4,050
Loans held for sale		3,563			8,829			2,297

Loans, before allowance for credit losses		3,342,786			3,244,655			2,579,928
Allowance for credit losses		(38,863	)		(37,814	)		(25,060	)
Loans, net of allowance for credit losses		3,303,923			3,206,841			2,554,868

Bank owned life insurance		23,747			23,594			7,515
Bank premises and equipment, net		64,713			65,029			50,854
Bank premises held for sale		35			35			281
Foreclosed assets		1,519			3,080			2,637
Goodwill		59,820			59,876			29,322
Intangible assets, net		21,402			22,122			1,210
Mortgage servicing rights, at fair value		20,156			20,133			10,440
Investments in unconsolidated subsidiaries		1,614			1,614			1,165
Accrued interest receivable		23,447			19,900			16,881
Other assets		58,538			62,158			48,182
Total assets	$	4,991,768		$	4,975,810		$	4,213,324

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	1,086,877		$	1,125,823		$	1,017,710
Interest-bearing		3,111,191			3,038,700			2,625,733
Total deposits		4,198,068			4,164,523			3,643,443

Securities sold under agreements to repurchase		28,900			38,729			48,130
Federal Home Loan Bank advances		177,650			177,572			60,000
Subordinated notes		39,454			39,435			39,376
Junior subordinated debentures issued to capital trusts		52,774			52,760			37,763
Other liabilities		38,671			51,939			25,539
Total liabilities		4,535,517			4,524,958			3,854,251

Stockholders' Equity
Common stock		327			327			293
Surplus		295,483			294,875			222,436
Retained earnings		256,050			241,777			223,495
Accumulated other comprehensive income (loss)		(78,432	)		(70,662	)		(77,462	)
Treasury stock at cost		(17,177	)		(15,465	)		(9,689	)
Total stockholders’ equity		456,251			450,852			359,073
Total liabilities and stockholders’ equity	$	4,991,768		$	4,975,810		$	4,213,324
SHARES OF COMMON STOCK OUTSTANDING		31,774,140			31,865,868			28,752,626

HBT Financial, Inc.
Unaudited Consolidated Financial Summary

(dollars in thousands)	September 30, 2023		June 30, 2023		September 30, 2022

LOANS
Commercial and industrial	$	386,933	$	385,768	$	240,671
Commercial real estate - owner occupied		297,242		303,522		226,524
Commercial real estate - non-owner occupied		901,929		882,598		718,089
Construction and land development		371,158		335,262		364,290
Multi-family		388,742		375,536		260,630
One-to-four family residential		488,655		482,442		328,667
Agricultural and farmland		275,239		259,858		245,234
Municipal, consumer, and other		232,888		219,669		195,823
Total loans	$	3,342,786	$	3,244,655	$	2,579,928

(dollars in thousands)	September 30, 2023		June 30, 2023		September 30, 2022

DEPOSITS
Noninterest-bearing deposits	$	1,086,877	$	1,125,823	$	1,017,710
Interest-bearing deposits:
Interest-bearing demand		1,134,721		1,181,187		1,131,284
Money market ⁽¹⁾		673,780		730,652		584,202
Savings		623,083		657,506		641,139
Time ⁽¹⁾		679,607		469,355		269,108
Total interest-bearing deposits		3,111,191		3,038,700		2,625,733
Total deposits	$	4,198,068	$	4,164,523	$	3,643,443

(1) Time deposits include $115.0 million of brokered deposits as of September 30, 2023 and money market deposits include $51.0 million of brokered deposits as of June 30, 2023. There were no brokered deposits as of September 30, 2022.

HBT Financial, Inc.
Unaudited Consolidated Financial Summary

	Three Months Ended
	September 30, 2023							June 30, 2023							September 30, 2022
(dollars in thousands)	Average Balance			Interest		Yield/Cost *		Average Balance			Interest		Yield/Cost *		Average Balance			Interest		Yield/Cost *

ASSETS
Loans	$	3,296,703		$	50,712	6.10	%	$	3,238,774		$	48,189	5.97	%	$	2,481,920		$	30,697	4.91	%
Securities		1,324,686			7,429	2.22			1,384,180			7,680	2.23			1,470,092			7,842	2.12
Deposits with banks		77,595			714	3.65			84,366			781	3.71			105,030			458	1.73
Other		9,347			186	7.90			8,577			118	5.52			2,936			17	2.25
Total interest-earning assets		4,708,331		$	59,041	4.97	%		4,715,897		$	56,768	4.83	%		4,059,978		$	39,014	3.81	%
Allowance for credit losses		(38,317	)						(39,484	)						(24,717	)
Noninterest-earning assets		294,818							299,622							173,461
Total assets	$	4,964,832						$	4,976,035						$	4,208,722

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,160,654		$	761	0.26	%	$	1,224,285		$	683	0.22	%	$	1,137,072		$	144	0.05	%
Money market		683,859			2,041	1.18			675,530			1,516	0.90			577,388			203	0.14
Savings		639,384			249	0.15			687,014			189	0.11			649,752			53	0.03
Time		585,372			4,160	2.82			447,146			1,935	1.74			271,870			187	0.27
Total interest-bearing deposits		3,069,269			7,211	0.93			3,033,975			4,323	0.57			2,636,082			587	0.09
Securities sold under agreements to repurchase		33,807			35	0.41			34,170			34	0.40			50,427			9	0.07
Borrowings		157,908			2,108	5.30			173,040			2,189	5.07			11,967			85	2.80
Subordinated notes		39,444			470	4.72			39,424			469	4.78			39,365			470	4.73
Junior subordinated debentures issued to capital trusts		52,767			938	7.05			52,752			881	6.70			37,755			473	4.97
Total interest-bearing liabilities		3,353,195		$	10,762	1.27	%		3,333,361		$	7,896	0.95	%		2,775,596		$	1,624	0.23	%
Noninterest-bearing deposits		1,105,472							1,145,089							1,031,407
Noninterest-bearing liabilities		46,564							43,080							20,736
Total liabilities		4,505,231							4,521,530							3,827,739
Stockholders' Equity		459,601							454,505							380,983
Total liabilities and stockholders’ equity	$	4,964,832						$	4,976,035						$	4,208,722

Net interest income/Net interest margin ⁽¹⁾				$	48,279	4.07	%				$	48,872	4.16	%				$	37,390	3.65	%
Tax-equivalent adjustment ⁽²⁾					675	0.06						715	0.06						674	0.07
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) ^{(2) (3)}				$	48,954	4.13	%				$	49,587	4.22	%				$	38,064	3.72	%
Net interest rate spread ⁽⁴⁾						3.70	%						3.88	%						3.58	%
Net interest-earning assets ⁽⁵⁾	$	1,355,136						$	1,382,536						$	1,284,382
Ratio of interest-earning assets to interest-bearing liabilities		1.40							1.41							1.46
Cost of total deposits						0.69	%						0.41	%						0.06	%
Cost of funds						0.96							0.71							0.17

* 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

	Nine Months Ended
	September 30, 2023							September 30, 2022
(dollars in thousands)	Average Balance			Interest		Yield/Cost *		Average Balance			Interest		Yield/Cost *

ASSETS
Loans	$	3,183,641		$	142,012	5.96	%	$	2,485,501		$	86,687	4.66	%
Securities		1,373,175			22,922	2.23			1,405,245			20,332	1.93
Deposits with banks		84,720			2,234	3.53			237,646			1,037	0.58
Other		8,457			420	6.64			2,829			50	2.36
Total interest-earning assets		4,649,993		$	167,588	4.82	%		4,131,221		$	108,106	3.50	%
Allowance for credit losses		(37,053	)						(24,467	)
Noninterest-earning assets		289,843							172,243
Total assets	$	4,902,783						$	4,278,997

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,204,937		$	1,902	0.21	%	$	1,146,635		$	430	0.05	%
Money market		664,846			4,492	0.90			585,815			434	0.10
Savings		678,495			616	0.12			653,659			155	0.03
Time		463,937			6,898	1.99			289,000			643	0.30
Total interest-bearing deposits		3,012,215			13,908	0.62			2,675,109			1,662	0.08
Securities sold under agreements to repurchase		35,844			107	0.40			51,503			26	0.07
Borrowings		148,443			5,594	5.04			4,344			87	2.67
Subordinated notes		39,424			1,409	4.78			39,345			1,409	4.79
Junior subordinated debentures issued to capital trusts		51,054			2,582	6.76			37,738			1,231	4.36
Total interest-bearing liabilities		3,286,980		$	23,600	0.96	%		2,808,039		$	4,415	0.21	%
Noninterest-bearing deposits		1,123,917							1,060,566
Noninterest-bearing liabilities		46,310							21,883
Total liabilities		4,457,207							3,890,488
Stockholders' Equity		445,576							388,509
Total liabilities and stockholders’ equity	$	4,902,783							4,278,997

Net interest income/Net interest margin ⁽¹⁾				$	143,988	4.14	%				$	103,691	3.36	%
Tax-equivalent adjustment ⁽²⁾					2,092	0.06						1,801	0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) ^{(2) (3)}				$	146,080	4.20	%				$	105,492	3.41	%
Net interest rate spread ⁽⁴⁾						3.86	%						3.29	%
Net interest-earning assets ⁽⁵⁾	$	1,363,013						$	1,323,182
Ratio of interest-earning assets to interest-bearing liabilities		1.41							1.47
Cost of total deposits						0.45	%						0.06	%
Cost of funds						0.72							0.15

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

HBT Financial, Inc.
Unaudited Consolidated Financial Summary

(dollars in thousands)	September 30, 2023			June 30, 2023			September 30, 2022

NONPERFORMING ASSETS
Nonaccrual	$	6,678		$	7,534		$	3,206
Past due 90 days or more, still accruing ⁽¹⁾		—			1			—
Total nonperforming loans		6,678			7,535			3,206
Foreclosed assets		1,519			3,080			2,637
Total nonperforming assets	$	8,197		$	10,615		$	5,843

Nonperforming loans that are wholly or partially guaranteed by the U.S. Government	$	1,968		$	2,332		$	—

Allowance for credit losses	$	38,863		$	37,814		$	25,060
Loans, before allowance for credit losses		3,342,786			3,244,655			2,579,928

CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses		1.16	%		1.17	%		0.97	%
Allowance for credit losses to nonaccrual loans		581.96			501.91			781.66
Allowance for credit losses to nonperforming loans		581.96			501.84			781.66
Nonaccrual loans to loans, before allowance for credit losses		0.20			0.23			0.12
Nonperforming loans to loans, before allowance for credit losses		0.20			0.23			0.12
Nonperforming assets to total assets		0.16			0.21			0.14
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets		0.25			0.33			0.23

(1) Prior to 2023, excludes loans acquired with deteriorated credit quality that are past due 90 or more days and accruing. Such loans totaled $22 thousand as of September 30, 2022.

HBT Financial, Inc.
Unaudited Consolidated Financial Summary

	Three Months Ended									Nine Months Ended September 30,
(dollars in thousands)	September 30, 2023			June 30, 2023			September 30, 2022			2023			2022

ALLOWANCE FOR CREDIT LOSSES
Beginning balance	$	37,814		$	38,776		$	24,734		$	25,333		$	23,936
Adoption of ASC 326		—			—			—			6,983			—
PCD allowance established in acquisition		—			—			—			1,247			—
Provision for credit losses		983			(1,080	)		386			5,004			(53	)
Charge-offs		(412	)		(179	)		(222	)		(733	)		(515	)
Recoveries		478			297			162			1,029			1,692
Ending balance	$	38,863		$	37,814		$	25,060		$	38,863		$	25,060

Net charge-offs (recoveries)	$	(66	)	$	(118	)	$	60		$	(296	)	$	(1,177	)
Average loans		3,296,703			3,238,774			2,481,920			3,183,641			2,485,501

Net charge-offs (recoveries) to average loans *		(0.01)	%		(0.01)	%		0.01	%		(0.01)	%		(0.06)	%

* Annualized measure.

	Three Months Ended								Nine Months Ended September 30,
(dollars in thousands)	September 30, 2023			June 30, 2023			September 30, 2022		2023			2022

PROVISION FOR CREDIT LOSSES
Loans ⁽¹⁾	$	983		$	(1,080	)	$	386	$	5,004	$	(53	)
Unfunded lending-related commitments ⁽¹⁾		297			650			—		1,456		—
Debt securities		(800	)		200			—		—		—
Total provision for credit losses	$	480		$	(230	)	$	386	$	6,460	$	(53	)

(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									Nine Months Ended September 30,
(dollars in thousands)	September 30, 2023			June 30, 2023			September 30, 2022			2023			2022
Net income	$	19,715		$	18,473		$	15,627		$	47,396		$	43,316
Adjustments:
Acquisition expenses ⁽¹⁾		—			(627	)		(462	)		(13,691	)		(462	)
Gains (losses) on sales of closed branch premises		—			75			(38	)		75			141
Realized gains (losses) on sales of securities		(813	)		—			—			(1,820	)		—
Mortgage servicing rights fair value adjustment		23			141			351			(460	)		2,446
Total adjustments		(790	)		(411	)		(149	)		(15,896	)		2,125
Tax effect of adjustments		226			112			(80	)		4,382			(728	)
Total adjustments after tax effect		(564	)		(299	)		(229	)		(11,514	)		1,397
Adjusted net income	$	20,279		$	18,772		$	15,856		$	58,910		$	41,919

Average assets	$	4,964,832		$	4,976,035		$	4,208,722		$	4,902,783		$	4,278,997

Return on average assets *		1.58	%		1.49	%		1.47	%		1.29	%		1.35	%
Adjusted return on average assets *		1.62			1.51			1.49			1.61			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									Nine Months Ended September 30,
(dollars in thousands, except per share amounts)	September 30, 2023			June 30, 2023			September 30, 2022			2023			2022

Numerator:
Net income	$	19,715		$	18,473		$	15,627		$	47,396		$	43,316
Earnings allocated to participating securities ⁽¹⁾		(10	)		(11	)		(17	)		(26	)		(51	)
Numerator for earnings per share - basic and diluted	$	19,705		$	18,462		$	15,610		$	47,370		$	43,265

Adjusted net income	$	20,279		$	18,772		$	15,856		$	58,910		$	41,919
Earnings allocated to participating securities ⁽¹⁾		(10	)		(10	)		(17	)		(33	)		(49	)
Numerator for adjusted earnings per share - basic and diluted	$	20,269		$	18,762		$	15,839		$	58,877		$	41,870

Denominator:
Weighted average common shares outstanding		31,829,250			31,980,133			28,787,662			31,598,650			28,887,757
Dilutive effect of outstanding restricted stock units		137,187			99,850			72,643			102,574			56,761
Weighted average common shares outstanding, including all dilutive potential shares		31,966,437			32,079,983			28,860,305			31,701,224			28,944,518

Earnings per share - Basic	$	0.62		$	0.58		$	0.54		$	1.50		$	1.50
Earnings per share - Diluted	$	0.62		$	0.58		$	0.54		$	1.49		$	1.49

Adjusted earnings per share - Basic	$	0.64		$	0.59		$	0.55		$	1.86		$	1.45
Adjusted earnings per share - Diluted	$	0.63		$	0.58		$	0.55		$	1.86		$	1.45

(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									Nine Months Ended September 30,
(dollars in thousands)	September 30, 2023			June 30, 2023			September 30, 2022			2023			2022

Net interest income (tax-equivalent basis)
Net interest income	$	48,279		$	48,872		$	37,390		$	143,988		$	103,691
Tax-equivalent adjustment ⁽¹⁾		675			715			674			2,092			1,801
Net interest income (tax-equivalent basis) ⁽¹⁾	$	48,954		$	49,587		$	38,064		$	146,080		$	105,492

Net interest margin (tax-equivalent basis)
Net interest margin *		4.07	%		4.16	%		3.65	%		4.14	%		3.36	%
Tax-equivalent adjustment * ⁽¹⁾		0.06			0.06			0.07			0.06			0.05
Net interest margin (tax-equivalent basis) * ⁽¹⁾		4.13	%		4.22	%		3.72	%		4.20	%		3.41	%

Average interest-earning assets	$	4,708,331		$	4,715,897		$	4,059,978		$	4,649,993		$	4,131,221

* 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									Nine Months Ended September 30,
(dollars in thousands)	September 30, 2023			June 30, 2023			September 30, 2022			2023			2022

Efficiency ratio (tax-equivalent basis)
Total noninterest expense	$	30,671		$	33,973		$	23,998		$	100,577		$	71,997
Less: amortization of intangible assets		720			720			243			1,950			733
Adjusted noninterest expense	$	29,951		$	33,253		$	23,755		$	98,627		$	71,264

Net interest income	$	48,279		$	48,872		$	37,390		$	143,988		$	103,691
Total noninterest income		9,490			9,914			8,234			26,841			26,828
Operating revenue		57,769			58,786			45,624			170,829			130,519
Tax-equivalent adjustment ⁽¹⁾		675			715			674			2,092			1,801
Operating revenue (tax-equivalent basis) ⁽¹⁾	$	58,444		$	59,501		$	46,298		$	172,921		$	132,320

Efficiency ratio		51.85	%		56.57	%		52.07	%		57.73	%		54.60	%
Efficiency ratio (tax-equivalent basis) ⁽¹⁾		51.25			55.89			51.31			57.04			53.86

(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)	September 30, 2023			June 30, 2023			September 30, 2022

Tangible Common Equity
Total stockholders' equity	$	456,251		$	450,852		$	359,073
Less: Goodwill		59,820			59,876			29,322
Less: Intangible assets, net		21,402			22,122			1,210
Tangible common equity	$	375,029		$	368,854		$	328,541

Tangible Assets
Total assets	$	4,991,768		$	4,975,810		$	4,213,324
Less: Goodwill		59,820			59,876			29,322
Less: Intangible assets, net		21,402			22,122			1,210
Tangible assets	$	4,910,546		$	4,893,812		$	4,182,792

Total stockholders' equity to total assets		9.14	%		9.06	%		8.52	%
Tangible common equity to tangible assets		7.64			7.54			7.85

Shares of common stock outstanding		31,774,140			31,865,868			28,752,626

Book value per share	$	14.36		$	14.15		$	12.49
Tangible book value per share		11.80			11.58			11.43

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									Nine Months Ended September 30,
(dollars in thousands)	September 30, 2023			June 30, 2023			September 30, 2022			2023			2022

Average Tangible Common Equity
Total stockholders' equity	$	459,601		$	454,505		$	380,983		$	445,576		$	388,509
Less: Goodwill		59,875			59,876			29,322			56,406			29,322
Less: Intangible assets, net		21,793			22,520			1,356			20,005			1,597
Average tangible common equity	$	377,933		$	372,109		$	350,305		$	369,165		$	357,590

Net income	$	19,715		$	18,473		$	15,627		$	47,396		$	43,316
Adjusted net income		20,279			18,772			15,856			58,910			41,919

Return on average stockholders' equity *		17.02	%		16.30	%		16.27	%		14.22	%		14.91	%
Return on average tangible common equity *		20.7			19.91			17.7			17.17			16.2

Adjusted return on average stockholders' equity *		17.51	%		16.57	%		16.51	%		17.68	%		14.43	%
Adjusted return on average tangible common equity *		21.29			20.23			17.96			21.34			15.67

* Annualized measure.