HBT HBT Financial Inc

HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial”), the holding company for Heartland Bank and Trust Company and State Bank of Lincoln, today reported net income of $16.1 million, or $0.61 diluted earnings per share, for the fourth quarter of 2019. This compares to net income of $17.4 million, or $0.97 diluted earnings per share, for the third quarter of 2019, and net income of $11.9 million, or $0.66 diluted earnings per share, for the fourth quarter of 2018.

Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “Our 2019 performance is a result of strong execution on the strategies that have made HBT Financial a consistently high performing company.  HBT Financial has an attractive core deposit base, strong capital levels and solid asset quality.  We are pleased to initiate a quarterly cash dividend to enhance the total return we deliver for shareholders.  During 2019, we had continued momentum on our earnings and organic loan growth.  We are pleased to have completed our initial public offering and are well positioned for the future, and we expect to continue to enhance the value of our franchise through both organic and acquisition growth strategies.”

C Corp Equivalent Net Income and Adjusted C Corp Equivalent Net Income

The Company has historically operated as an S Corporation for U.S. federal and state income tax purposes.  Following the completion of the initial public offering during the fourth quarter of 2019, the Company was treated as a C Corporation (“C Corp”) for federal and state income tax purposes. For comparison, the Company reports its C Corp equivalent financial results, which does not reflect the additional shares issued in the initial public offering (the “IPO”) for periods prior to the IPO.

For the fourth quarter of 2019, the Company reported C Corp equivalent net income of $15.1 million, or $0.58 diluted earnings per share. This compares to C Corp equivalent net income of $13.1 million, or $0.73 diluted earnings per share, for the third quarter of 2019, and C Corp equivalent net income of $9.2 million, or $0.51 diluted earnings per share, for the fourth quarter of 2018.

In addition to reporting C Corp equivalent results, the Company believes adjusted C Corp equivalent results, which adjust for mortgage servicing rights (“MSR”) fair value adjustments, gains (losses) on sales of securities, and certain non-recurring items, provide investors with additional insight into its operational performance. The Company reported adjusted C Corp equivalent net income of $14.4 million, or $0.55 diluted earnings per share, for the fourth quarter of 2019. This compares to adjusted C Corp equivalent net income of $14.3 million, or $0.80 diluted earnings per share, for the third quarter of 2019, and adjusted C Corp equivalent net income of $10.9 million, or $0.60 diluted earnings per share, for the fourth quarter of 2018 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2019 was $32.3 million, a decrease of 2.6% from $33.1 million for the third quarter of 2019. The decrease was primarily attributable to a decline in net interest margin, partially offset by an increase in average interest-earning assets.

Relative to the fourth quarter of 2018, net interest income decreased $0.8 million, or 2.4%. The decline was primarily attributable to a lower net interest margin, partially offset by an increase in average interest-earning assets.

Net interest margin for the fourth quarter of 2019 was 4.12%, including 2 basis points attributable to acquired loan discount accretion, compared to 4.31%, including 4 basis points attributable to acquired loan discount accretion, for the third quarter of 2019. The decrease was primarily attributable to a decline in average loan yields, lower average loan balances, and an increase in lower-yielding cash balances.

Relative to the fourth quarter of 2018, net interest margin decreased from 4.29%, including 9 basis points attributable to acquired loan discount accretion, due primarily to lower loan yields and an increase in lower-yielding cash balances.

The increase in lower yielding cash balances during the fourth quarter of 2019 was primarily due to higher balances for a small number of retail deposit accounts.  These funds were mainly invested in lower yielding cash balances, resulting in a $0.2 million increase in net interest income and a 4 basis point reduction in the net interest margin for the quarter.

The Federal Open Market Committee lowered its target federal funds rate for the first time in 11 years on July 31, 2019 and then again in September 2019 and October 2019. The Company expects the cumulative decrease of 75 basis points in the target federal funds rate in 2019 to continue placing downward pressure on its net interest margin in 2020.

Noninterest Income

Noninterest income for the fourth quarter of 2019 was $10.3 million, an increase of 36.3% from $7.6 million for the third quarter of 2019. Fourth quarter 2019 results benefitted from a $0.6 million gain on the fair value adjustment of the MSR asset compared to a negative $0.9 million MSR fair value adjustment in the third quarter of 2019. Gains on foreclosed assets and fees on customer-related interest rate swaps, included in other noninterest income, also contributed to noninterest income growth.

Relative to the fourth quarter of 2018, noninterest income increased 60.8% from $6.4 million. The growth was primarily attributable to lower securities losses, gains on foreclosed assets, and higher other income.

Noninterest Expense

Noninterest expense for the fourth quarter of 2019 was $22.0 million, compared with $22.3 million for the third quarter of 2019. The decrease was primarily attributable to lower employee benefits expense, as third quarter of 2019 results included a $0.8 million charge for the supplemental executive retirement plan (SERP) which was terminated in June 2019.  The SERP liability varies inversely with interest rates, therefore there was a $0.4 million credit in the fourth quarter of 2019.  The SERP will be liquidated in June 2020. FDIC insurance expense was lower in the fourth quarter of 2019 due to the application of small bank assessment credits. Other noninterest and occupancy expenses were also lower in the fourth quarter of 2019, but were more than offset by higher salaries, marketing, and furniture and equipment costs. 

Relative to the fourth quarter of 2018, noninterest expense decreased 6.4% from $23.4 million. The decrease was primarily due to lower other, FDIC insurance, employee benefits, and occupancy expenses.

Loan Portfolio

Total loans, before allowance for loan losses outstanding were $2.16 billion at December 31, 2019, compared with $2.17 billion at September 30, 2019 and $2.14 billion at December 31, 2018. The $7.2 million decline in loans from September 30, 2019 was primarily due to a $41.2 million reduction in loan participations resulting primarily from the payoff of five loans, offset by organic loan growth primarily in commercial real estate – non-owner occupied and construction and development. The five loan participations that paid off included $22.3 million in commercial and industrial, $4.8 million in CRE – non-owner occupied, $8.8 million in multi-family and $3.6 million in municipal, consumer and other.  Loan participations make up a small portion of the Company’s loan portfolio totaling $71.7 million at December 31, 2019 compared to $112.9 million at September 30, 2019 and $131.4 million at December 31, 2018.

Based on loan trends experienced in 2019 and a healthy loan pipeline, the Company expects low-single digit loan growth in 2020.

Deposits

Total deposits were $2.78 billion at December 31, 2019, compared with $2.70 billion at September 30, 2019, and $2.80 billion at December 31, 2018. The $72.8 million increase in total deposits from September 30, 2019 was broad-based with growth in noninterest-bearing, interest-bearing demand, money market and savings balances more than offsetting a decline in time deposits.

The deposit growth in the fourth quarter of 2019 included approximately $40.2 million in increased balances in a small number of retail deposit accounts. The changes in these accounts included a $4.2 million increase in non-interest bearing, a $3.0 million decrease in interest bearing demand, a $31.1 million increase in money market, and a $8.0 million increase in savings.  The Company expects some outflow in these deposits during the first quarter of 2020.

Asset Quality

Nonperforming loans totaled $19.0 million, or 0.88% of total loans, at December 31, 2019, compared with $19.1 million, or 0.88% of total loans, at September 30, 2019, and $15.9 million, or 0.74% of total loans, at December 31, 2018.

Net charge-offs for the fourth quarter of 2019 were $0.6 million, or 0.11% of average loans on an annualized basis.

The Company recorded a provision for loan losses of $0.1 million for the fourth quarter of 2019, compared with $0.7 million for the third quarter of 2019. The reduction in provision for loan losses was primarily due to a reduction in specific reserves on two credits as a result of improved collateral positions. The Company’s allowance for loan losses was 1.03% of total loans and 117.06% of nonperforming loans at December 31, 2019, compared with 1.05% of total loans and 119.34% of nonperforming loans at September 30, 2019.

Capital

At December 31, 2019, the Company exceeded all regulatory capital requirements under Basel III and was considered to be ‘‘well-capitalized’’, as summarized in the following table:

	December 31,		Well Capitalized
	2019		Regulatory Requirements
Total capital to risk-weighted assets	14.54	%	10.00%
Tier 1 capital to risk-weighted assets	13.64	%	8.00%
Tier 1 leverage ratio	10.38	%	5.00%
Common equity tier 1 capital ratio	12.15	%	6.50%
Total stockholders' equity to total assets	10.26	%	NA
Tangible common equity to tangible assets (1)	9.49	%	NA

_____________________(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.

Completion of Initial Public Offering

On October 10, 2019, the Company priced its initial public offering (the “IPO”), and issued 8,300,000 shares of its common stock at a price to the public of $16.00 per share on October 11, 2019.  On October 29, 2019, the underwriters purchased an additional 1,129,794 shares pursuant to the exercise of their option to purchase additional shares from HBT Financial at the initial public offering price, less underwriting discounts and commissions. In total, HBT sold 9,429,794 shares of common stock in the initial public offering, raising total net proceeds, after deducting estimated underwriting discounts and commissions and offering expenses payable by the Company, of approximately $138 million.

On October 22, 2019, the Company paid a $170 million distribution to its pre-IPO stockholders, using the net proceeds of the initial public offering and the proceeds of dividends from Heartland Bank and Trust Company and State Bank of Lincoln.

About HBT Financial, Inc.

HBT Financial, Inc. is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company and State Bank of Lincoln. The banks provide a comprehensive suite of business, commercial, wealth management and retail banking products and services to businesses, families and local governments throughout Central and Northeastern Illinois through 64 branches. As of December 31, 2019, HBT had total assets of $3.2 billion, total loans of $2.2 billion, and total deposits of $2.8 billion. HBT is a longstanding Central Illinois company, with banking roots that can be traced back nearly 100 years.

Non-GAAP Financial Measures

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

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s plans, objectives, future performance, goals, future earnings levels, and future loan growth.  These statements are subject to many risks and uncertainties, including changes in interest rates and other general economic, business and political conditions, including changes in the financial markets; changes in business plans as circumstances warrant; risks relating to acquisitions; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission.  Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements.  Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe" or "continue," or similar terminology.  Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

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

HBT Financial, Inc.
Consolidated Financial Summary
Consolidated Statements of Income
	Three Months Ended
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
	(dollars in thousands, except per share amounts)
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable	$	28,039			$	29,308			$	29,886			$	30,063			$	28,625
Federally tax exempt		716				684				736				710				704
Securities:
Taxable		3,559				3,572				3,801				3,922				3,655
Federally tax exempt		1,269				1,395				1,512				1,552				1,670
Interest-bearing deposits in bank		1,003				662				599				687				580
Other interest and dividend income		14				15				16				15				14
Total interest and dividend income		34,600				35,636				36,550				36,949				35,248
INTEREST EXPENSE
Deposits		1,838				2,000				2,111				1,983				1,672
Securities sold under agreements to repurchase		24				17				17				14				16
Borrowings		2				—				4				3				8
Subordinated debentures		460				478				487				497				476
Total interest expense		2,324				2,495				2,619				2,497				2,172
Net interest income		32,276				33,141				33,931				34,452				33,076
PROVISION FOR LOAN LOSSES		138				684				1,806				776				3,906
Net interest income after provision for loan losses		32,138				32,457				32,125				33,676				29,170
NONINTEREST INCOME
Card income		1,952				1,985				1,996				1,832				1,954
Service charges on deposit accounts		2,065				2,111				1,931				1,763				2,078
Wealth management fees		1,911				1,676				1,493				2,047				2,087
Mortgage servicing		801				795				818				729				861
Mortgage servicing rights fair value adjustment		582				(860	)			(1,120	)			(1,002	)			355
Gains on sale of mortgage loans		915				992				660				525				666
Gains (losses) on securities		(47	)			(73	)			36				79				(2,813	)
Gains (losses) on foreclosed assets		808				(20	)			169				(17	)			(479	)
Gains (losses) on other assets		—				(29	)			368				605				580
Title insurance activity		—				—				38				129				276
Other noninterest income		1,349				1,005				957				797				864
Total noninterest income		10,336				7,582				7,346				7,487				6,429
NONINTEREST EXPENSE
Salaries		13,006				12,335				11,597				12,407				13,091
Employee benefits		1,250				2,224				4,731				1,359				1,522
Occupancy of bank premises		1,607				1,785				1,638				1,837				1,776
Furniture and equipment		763				545				716				789				693
Data processing		1,547				1,471				1,390				1,162				1,299
Marketing and customer relations		1,036				801				1,103				933				1,125
Amortization of intangible assets		336				335				376				376				390
FDIC insurance		(237	)			8				208				219				214
Loan collection and servicing		732				547				612				742				720
Foreclosed assets		151				196				165				164				100
Other noninterest expense		1,759				2,056				2,025				2,224				2,510
Total noninterest expense		21,950				22,303				24,561				22,212				23,440
INCOME BEFORE INCOME TAX EXPENSE		20,524				17,736				14,910				18,951				12,159
INCOME TAX EXPENSE		4,437				299				305				215				239
NET INCOME	$	16,087			$	17,437			$	14,605			$	18,736			$	11,920
EARNINGS PER SHARE - BASIC	$	0.61			$	0.97			$	0.81			$	1.04			$	0.66
EARNINGS PER SHARE - DILUTED	$	0.61			$	0.97			$	0.81			$	1.04			$	0.66
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING		26,211,282				18,027,512				18,027,512				18,027,512				18,027,512
C CORP EQUIVALENT INFORMATION
Historical income before income tax expense	$	20,524			$	17,736			$	14,910			$	18,951			$	12,159
C Corp equivalent income tax expense		5,436				4,614				3,784				4,915				2,965
C Corp equivalent net income	$	15,088			$	13,122			$	11,126			$	14,036			$	9,194
C CORP EQUIVALENT EARNINGS PER SHARE - BASIC	$	0.58			$	0.73			$	0.62			$	0.78			$	0.51
C CORP EQUIVALENT EARNINGS PER SHARE - DILUTED	$	0.58			$	0.73			$	0.62			$	0.78			$	0.51

HBT Financial, Inc.
Consolidated Financial Summary
Consolidated Balance Sheets
	As of
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
	(dollars in thousands)
ASSETS
Cash and due from banks	$	22,112			$	19,969			$	17,151			$	17,984			$	21,343
Interest-bearing deposits with banks		261,859				134,972				124,575				142,518				165,536
Cash and cash equivalents		283,971				154,941				141,726				160,502				186,879
Interest-bearing time deposits with banks		248				248				248				248				248
Securities available-for-sale, at fair value		592,404				618,120				651,967				681,233				679,526
Securities held-to-maturity		88,477				99,861				108,829				116,745				121,715
Equity securities		4,389				4,436				4,030				3,994				3,261
Restricted stock, at cost		2,425				2,425				2,425				2,719				2,719
Loans held for sale		4,531				7,608				5,303				2,496				2,800
Loans, before allowance for loan losses		2,163,826				2,171,014				2,203,096				2,183,322				2,144,257
Allowance for loan losses		(22,299	)			(22,761	)			(22,542	)			(21,013	)			(20,509	)
Loans, net of allowance for loan losses		2,141,527				2,148,253				2,180,554				2,162,309				2,123,748
Bank premises and equipment, net		53,987				54,105				53,993				54,185				54,736
Bank premises held for sale		121				121				149				208				749
Foreclosed assets		5,099				6,574				9,707				10,151				9,559
Goodwill		23,620				23,620				23,620				23,620				23,620
Core deposit intangible assets, net		4,030				4,366				4,701				5,077				5,453
Mortgage servicing rights, at fair value		8,518				7,936				8,796				9,916				10,918
Investments in unconsolidated subsidiaries		1,165				1,165				1,165				1,165				1,165
Accrued interest receivable		13,951				14,816				14,609				15,256				15,300
Other assets		16,640				18,018				12,338				7,843				7,173
Total assets	$	3,245,103			$	3,166,613			$	3,224,160			$	3,257,667			$	3,249,569
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	689,116			$	649,316			$	662,405			$	661,527			$	664,876
Interest-bearing		2,087,739				2,054,742				2,111,363				2,159,916				2,131,094
Total deposits		2,776,855				2,704,058				2,773,768				2,821,443				2,795,970
Securities sold under agreements to repurchase		44,433				32,267				35,646				40,528				46,195
Subordinated debentures		37,583				37,566				37,550				37,533				37,517
Other liabilities		53,314				43,786				37,326				29,570				29,491
Total liabilities		2,912,185				2,817,677				2,884,290				2,929,074				2,909,173
Stockholders' Equity
Common stock		275				181				181				181				181
Surplus		190,524				32,288				32,288				32,288				32,288
Retained earnings		134,287				311,055				302,984				298,131				315,234
Accumulated other comprehensive income (loss)		7,832				8,431				7,436				1,012				(4,288	)
Less cost of treasury stock held		—				(3,019	)			(3,019	)			(3,019	)			(3,019	)
Total stockholders’ equity		332,918				348,936				339,870				328,593				340,396
Total liabilities and stockholders’ equity	$	3,245,103			$	3,166,613			$	3,224,160			$	3,257,667			$	3,249,569
SHARE INFORMATION
Ending number shares of common stock outstanding		27,457,306				18,027,512				18,027,512				18,027,512				18,027,512

HBT Financial, Inc.
Consolidated Financial Summary
	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018
	(dollars in thousands)
LOANS
Commercial and industrial	$	307,175		$	340,650		$	352,326		$	363,918		$	360,501
Agricultural and farmland		207,776			205,041			208,923			207,817			209,875
Commercial real estate - owner occupied		231,162			239,805			244,954			250,274			255,074
Commercial real estate - non-owner occupied		579,757			552,262			543,444			556,386			533,910
Multi-family		179,073			191,646			191,734			146,374			135,925
Construction and land development		224,887			210,939			236,902			223,489			237,275
One-to-four family residential		313,580			321,947			323,135			321,224			313,108
Municipal, consumer, and other		120,416			108,724			101,678			113,840			98,589
Total loans, before allowance for loan losses	$	2,163,826		$	2,171,014		$	2,203,096		$	2,183,322		$	2,144,257

	December 31, 2019			September 30, 2019			June 30, 2019			March 31, 2019			December 31, 2018
	(dollars in thousands)
DEPOSITS
Noninterest-bearing	$	689,116		$	649,316		$	662,405		$	661,527		$	664,876
Interest-bearing demand		814,639			800,471			815,770			819,313			856,919
Money market		477,765			463,444			472,738			453,117			427,730
Savings		438,927			426,707			428,439			435,353			421,698
Time		356,408			364,120			394,416			452,133			424,747
Total deposits	$	2,776,855		$	2,704,058		$	2,773,768		$	2,821,443		$	2,795,970

HBT Financial, Inc.
Consolidated Financial Summary
	Three Months Ended
	December 31, 2019										September 30, 2019										December 31, 2018
	Average							*			Average							*			Average							*
	Balance				Interest			Yield/Cost			Balance				Interest			Yield/Cost			Balance				Interest			Yield/Cost
	(dollars in thousands)
ASSETS
Loans	$	2,162,975			$	28,755		5.32	%		$	2,191,230			$	29,992		5.47	%		$	2,138,839			$	29,329		5.48	%
Securities		700,441				4,828		2.76	%			745,532				4,967		2.67	%			812,469				5,325		2.62	%
Deposits with banks		265,237				1,003		1.51	%			136,635				662		1.94	%			132,614				580		1.75	%
Other		2,425				14		2.39	%			2,425				15		2.37	%			2,719				14		2.20	%
Total interest-earning assets		3,131,078			$	34,600		4.42	%			3,075,822			$	35,636		4.63	%			3,086,641			$	35,248		4.57	%
Allowance for loan losses		(22,766	)									(22,326	)									(20,863	)
Noninterest-earning assets		152,961										149,146										151,767
Total assets	$	3,261,273									$	3,202,642									$	3,217,545
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	820,390			$	299		0.15	%		$	812,526			$	347		0.17	%		$	820,754			$	414		0.20	%
Money market		486,288				481		0.40	%			468,139				497		0.42	%			426,864				194		0.18	%
Savings		434,241				71		0.07	%			428,447				70		0.07	%			424,011				70		0.07	%
Time		359,731				987		1.10	%			383,070				1,086		1.13	%			432,902				994		0.92	%
Total interest-bearing deposits		2,100,650				1,838		0.35	%			2,092,182				2,000		0.38	%			2,104,531				1,672		0.32	%
Securities sold under agreements to repurchase		46,028				24		0.21	%			35,757				17		0.19	%			49,907				16		0.13	%
Borrowings		272				2		2.60	%			33				—		2.42	%			1,326				8		2.40	%
Subordinated debentures		37,577				460		4.90	%			37,561				478		5.09	%			37,512				476		5.08	%
Total interest-bearing liabilities		2,184,527			$	2,324		0.43	%			2,165,533			$	2,495		0.46	%			2,193,276			$	2,172		0.40	%
Noninterest-bearing deposits		699,373										651,085										659,009
Noninterest-bearing liabilities		45,589										37,274										28,146
Total liabilities		2,929,489										2,853,892										2,880,431
Stockholders' Equity		331,784										348,750										337,114
Total liabilities and stockholders’ equity	$	3,261,273									$	3,202,642									$	3,217,545
Net interest income/Net interest margin (3)					$	32,276		4.12	%						$	33,141		4.31	%						$	33,076		4.29	%
Tax-equivalent adjustment (2)						534		0.07	%							559		0.07	%							641		0.08	%
Net interest income (tax-equivalentbasis)/Net interest margin (tax-equivalent basis) (1) (2)					$	32,810		4.19	%						$	33,700		4.38	%						$	33,717		4.37	%
Net interest rate spread (4)								3.99	%									4.17	%									4.17	%
Net interest-earning assets (5)	$	946,551									$	910,289									$	893,365
Ratio of interest-earning assets to interest-bearing liabilities		1.43										1.42										1.41
Cost of deposits								0.26	%									0.29	%									0.24	%

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

HBT Financial, Inc.
Consolidated Financial Summary
	Year Ended
	December 31, 2019										December 31, 2018
	Average										Average
	Balance				Interest			Yield/Cost			Balance				Interest			Yield/Cost
	(dollars in thousands)
ASSETS
Loans	$	2,178,897			$	120,142		5.51	%		$	2,131,512			$	114,034		5.35	%
Securities		759,479				20,582		2.71	%			860,804				21,613		2.51	%
Deposits with banks		164,986				2,951		1.79	%			114,202				1,717		1.50	%
Other		2,501				60		2.41	%			2,771				68		2.47	%
Total interest-earning assets		3,105,863			$	143,735		4.63	%			3,109,289			$	137,432		4.42	%
Allowance for loan losses		(21,704	)									(20,046	)
Noninterest-earning assets		149,227										158,355
Total assets	$	3,233,386									$	3,247,598
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	821,480			$	1,474		0.18	%		$	824,910			$	1,378		0.17	%
Money market		463,233				1,837		0.40	%			442,872				685		0.15	%
Savings		430,220				278		0.06	%			433,661				283		0.07	%
Time		396,560				4,343		1.10	%			442,569				3,541		0.80	%
Total interest-bearing deposits		2,111,493				7,932		0.38	%			2,144,012				5,887		0.27	%
Securities sold under agreements to repurchase		41,177				72		0.18	%			40,725				48		0.12	%
Borrowings		351				9		2.60	%			14,946				260		1.74	%
Subordinated debentures		37,553				1,922		5.12	%			37,487				1,795		4.79	%
Total interest-bearing liabilities		2,190,574			$	9,935		0.45	%			2,237,170			$	7,990		0.36	%
Noninterest-bearing deposits		666,055										653,885
Noninterest-bearing liabilities		35,213										26,329
Total liabilities		2,891,842										2,917,384
Stockholders' Equity		341,544										330,214
Total liabilities and stockholders’ equity	$	3,233,386									$	3,247,598
Net interest income/Net interest margin (3)					$	133,800		4.31	%						$	129,442		4.16	%
Tax-equivalent adjustment (2)						2,309		0.07	%							2,661		0.09	%
Net interest income (tax-equivalent basis)/Net interest margin (tax-equivalent basis) (1) (2)					$	136,109		4.38	%						$	132,103		4.25	%
Net interest rate spread (4)								4.18	%									4.06	%
Net interest-earning assets (5)	$	915,289									$	872,119
Ratio of interest-earning assets to interest-bearing liabilities		1.42										1.39
Cost of deposits								0.29	%									0.21	%

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

HBT Financial, Inc.
Consolidated Financial Summary
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
	(dollars in thousands)
NONPERFORMING ASSETS
Nonaccrual	$	19,019			$	18,977			$	25,051				13,877				15,876
Past due 90 days or more, still accruing (1)		30				95				2				53				37
Total nonperforming loans		19,049				19,072				25,053				13,930				15,913
Foreclosed assets		5,099				6,574				9,707				10,151				9,559
Total nonperforming assets	$	24,148			$	25,646			$	34,760			$	24,081			$	25,472
NONPERFORMING ASSETS (Originated) (2)
Nonaccrual	$	10,811			$	11,268			$	15,985				8,619				10,329
Past due 90 days or more, still accruing		30				95				2				53				37
Total nonperforming loans		10,841				11,363				15,987				8,672				10,366
Foreclosed assets		1,022				1,048				1,510				1,439				1,395
Total nonperforming (originated)	$	11,863			$	12,411			$	17,497			$	10,111			$	11,761
NONPERFORMING ASSETS (Acquired) (2)
Nonaccrual	$	8,208			$	7,709			$	9,066			$	5,258			$	5,547
Past due 90 days or more, still accruing (1)		—				—				—				—				—
Total nonperforming loans		8,208				7,709				9,066				5,258				5,547
Foreclosed assets		4,077				5,526				8,197				8,712				8,164
Total nonperforming assets (acquired)	$	12,285			$	13,235			$	17,263			$	13,970			$	13,711
Allowance for loan losses	$	22,299			$	22,761			$	22,542			$	21,013			$	20,509
Total loans, before allowance for loan losses		2,163,826				2,171,014				2,203,096				2,183,322				2,144,257
Total loans, before allowance for loan losses (originated) (2)		1,998,496				1,987,265				2,005,250				1,974,840				1,923,859
Total loans, before allowance for loan losses (acquired) (2)		165,330				183,749				197,846				208,482				220,398
CREDIT QUALITY RATIOS
Allowance for loan losses to total loans, before allowance for loan losses		1.03	%			1.05	%			1.02	%			0.96	%			0.96	%
Allowance for loan losses to nonperforming loans		117.06	%			119.34	%			89.98	%			150.85	%			128.88	%
Nonperforming loans to total loans, before allowance for loan losses		0.88	%			0.88	%			1.14	%			0.64	%			0.74	%
Nonperforming assets to total assets		0.74	%			0.81	%			1.08	%			0.74	%			0.78	%
Nonperforming assets to total loans, before allowance for loan losses and foreclosed assets		1.11	%			1.18	%			1.57	%			1.10	%			1.18	%
CREDIT QUALITY RATIOS (Originated) (2)
Nonperforming loans to total loans, before allowance for loan losses		0.54	%			0.57	%			0.80	%			0.44	%			0.54	%
Nonperforming assets to total loans, before allowance for loan losses and foreclosed assets		0.59	%			0.62	%			0.87	%			0.51	%			0.61	%
CREDIT QUALITY RATIOS (Acquired) (2)
Nonperforming loans to total loans, before allowance for loan losses		4.96	%			4.20	%			4.58	%			2.52	%			2.52	%
Nonperforming assets to total loans, before allowance for loan losses and foreclosed assets		7.25	%			6.99	%			8.38	%			6.43	%			6.00	%

_____________________(1) Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $0.1 million, $0.7 million, $0.5 million, $2.5 million, and $2.7 million as of December 31, 2019, September 30, 2019, June 30, 2019, March 31, 2019, and December 31, 2018, respectively.(2) Originated loans and acquired loans along with the related credit quality ratios such as net charge-offs to average loans (originated and acquired), nonperforming loans to total loans (originated and acquired), and nonperforming assets to total loans and foreclosed assets (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by Heartland Bank and Trust Company or State Bank of Lincoln. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures.

HBT Financial, Inc.
Consolidated Financial Summary
	Three Months Ended																				Year Ended
	December 31,				September 30,				June 30,				March 31,				December 31,				December 31,				December 31,
	2019				2019				2019				2019				2018				2019				2018
	(dollars in thousands)
ALLOWANCE FOR LOAN LOSSES
Beginning balance	$	22,761			$	22,542			$	21,013			$	20,509			$	21,171			$	20,509			$	19,765
Provision		138				684				1,806				776				3,906				3,404				5,697
Charge-offs		(837	)			(937	)			(966	)			(533	)			(4,953	)			(3,273	)			(6,485	)
Recoveries		237				472				689				261				385				1,659				1,532
Ending balance	$	22,299			$	22,761			$	22,542			$	21,013			$	20,509			$	22,299			$	20,509
Net charge-offs (recoveries)	$	600			$	465			$	277			$	272			$	4,568			$	1,614			$	4,953
Net charge-offs (recoveries) - (originated) (1)		550				224				(238	)			196				2,778				732				3,137
Net charge-offs (recoveries) - (acquired) (1)		50				241				515				76				1,790				882				1,816
Net charge-offs to average total loans, before allowance for loan losses *		0.11	%			0.08	%			0.05	%			0.05	%			0.85	%			0.07	%			0.23	%
Net charge-offs to average total loans, before allowance for loan losses (originated) * (1)		0.11	%			0.04	%			-0.05	%			0.04	%			0.58	%			0.04	%			0.17	%
Net charge-offs to average total loans, before allowance for loan losses (acquired) * (1)		0.11	%			0.51	%			1.00	%			0.14	%			3.10	%			0.45	%			0.70	%
Average total loans, before allowance for loan losses	$	2,162,975			$	2,191,230			$	2,196,934			$	2,164,330			$	2,138,839			$	2,178,897			$	2,131,512
Average total loans, before allowance for loan losses (originated) (1)		1,988,658				2,001,803				1,990,015				1,946,035				1,907,503				1,981,658				1,873,623
Average total loans, before allowance for loan losses (acquired) (1)		174,317				189,427				206,919				218,295				231,336				197,240				257,889

_____________________*    Annualized measure.(1) Originated loans and acquired loans along with the related credit quality ratios such as net charge-offs to average loans (originated and acquired), nonperforming loans to total loans (originated and acquired), and nonperforming assets to total loans and foreclosed assets (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company’s underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by Heartland Bank and Trust Company or State Bank of Lincoln. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company’s policies and procedures.

HBT Financial, Inc.
Consolidated Financial Summary
	Three Months Ended
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
	(dollars in thousands, except per share amounts)
EARNINGS AND PER SHARE INFORMATION
Net income	$	16,087			$	17,437			$	14,605			$	18,736			$	11,920
Earnings per share - Basic and diluted		0.61				0.97				0.81				1.04				0.66
C Corp equivalent net income (1)	$	15,088			$	13,122			$	11,126			$	14,036			$	9,194
C Corp equivalent earnings per share - Basic and diluted (1)		0.58				0.73				0.62				0.78				0.51
Ending number shares of common stock outstanding		27,457,306				18,027,512				18,027,512				18,027,512				18,027,512
Weighted average shares of common stock outstanding		26,211,282				18,027,512				18,027,512				18,027,512				18,027,512
PERFORMANCE RATIOS
Return on average assets *		1.97	%			2.18	%			1.81	%			2.32	%			1.48	%
Return on average stockholders' equity *		19.39	%			20.00	%			17.25	%			21.59	%			14.14	%
Net interest margin *		4.12	%			4.31	%			4.36	%			4.44	%			4.29	%
Efficiency ratio		50.72	%			53.94	%			58.59	%			52.07	%			58.35	%
C Corp equivalent return on average assets * (1)		1.85	%			1.64	%			1.38	%			1.74	%			1.14	%
C Corp equivalent return on average stockholders' equity * (1)		18.19	%			15.05	%			13.14	%			16.17	%			10.91	%
NON-GAAP FINANCIAL MEASURES
Adjusted C Corp equivalent net income (2)	$	14,417			$	14,343			$	14,308			$	14,359			$	10,874
Adjusted C Corp equivalent earnings per share - Basic and diluted (2)		0.55				0.80				0.79				0.80				0.60
Net interest margin (tax equivalent basis) * (2)		4.19	%			4.38	%			4.44	%			4.52	%			4.37	%
Efficiency ratio (tax equivalent basis) (2)		50.10	%			53.21	%			57.74	%			51.32	%			57.42	%
Adjusted C Corp equivalent return on average assets * (2)		1.77	%			1.79	%			1.77	%			1.78	%			1.35	%
Adjusted C Corp equivalent return on average stockholders' equity * (2)		17.38	%			16.45	%			16.90	%			16.54	%			12.90	%
Return on average tangible common equity * (2)		21.17	%			21.76	%			18.84	%			23.55	%			15.49	%
C Corp equivalent return on average tangible common equity * (1) (2)		19.86	%			16.37	%			14.35	%			17.64	%			11.95	%
Adjusted C Corp equivalent return on average tangible common equity * (2)		18.97	%			17.90	%			18.46	%			18.05	%			14.13	%

_____________________*    Annualized measure.(1) Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period.(2) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.

Reconciliation of Non-GAAP Financial Measures –
Adjusted C Corp Equivalent Net Income and Adjusted C Corp Equivalent Return on Average Assets
	Three Months Ended
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
	(dollars in thousands, except per share amounts)
Net income	$	16,087			$	17,437			$	14,605			$	18,736			$	11,920
C Corp equivalent net income (1)	$	15,088			$	13,122			$	11,126			$	14,036			$	9,194
Adjustments:
Net earnings (losses) from closed or sold operations, including gains on sale (2)		(9	)			(3	)			(14	)			550				98
Charges related to termination of certain employee benefit plans		365				(845	)			(3,316	)			—				—
Realized gains (losses) on sales of securities		—				—				—				—				(2,803	)
Mortgage servicing rights fair value adjustment		582				(860	)			(1,120	)			(1,002	)			355
Total adjustments		938				(1,708	)			(4,450	)			(452	)			(2,350	)
C Corp equivalent tax effect of adjustments		(267	)			487				1,268				129				670
Less adjustments after C Corp equivalent tax effect		671				(1,221	)			(3,182	)			(323	)			(1,680	)
Adjusted C Corp equivalent net income	$	14,417			$	14,343			$	14,308			$	14,359			$	10,874
Average assets	$	3,261,273			$	3,202,642			$	3,236,353			$	3,233,293			$	3,217,545
Return on average assets *		1.97	%			2.18	%			1.81	%			2.32	%			1.48	%
C Corp equivalent return on average assets * (1)		1.85	%			1.64	%			1.38	%			1.74	%			1.14	%
Adjusted C Corp equivalent return on average assets *		1.77	%			1.79	%			1.77	%			1.78	%			1.35	%
Weighted average shares of common stock outstanding		26,211,282				18,027,512				18,027,512				18,027,512				18,027,512
Earnings per share - Basic and Diluted	$	0.61			$	0.97			$	0.81			$	1.04			$	0.66
C Corp equivalent Earnings per share - Basic and Diluted (1)		0.58				0.73				0.62				0.78				0.51
Adjusted C Corp equivalent earnings per share - Basic and diluted		0.55				0.80				0.79				0.80				0.60

_____________________*    Annualized measure.(1) Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period.(2) Closed or sold operations include HB Credit Company, HBT Insurance, and First Community Title Services, Inc.

Reconciliation of Non-GAAP Financial Measures - Net Interest Margin (Tax Equivalent Basis)
	Three Months Ended
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
	(dollars in thousands)
Net interest income (tax equivalent basis)
Net interest income	$	32,276			$	33,141			$	33,931			$	34,452			$	33,076
Tax-equivalent adjustment (1)		534				559				606				610				641
Net interest income (tax equivalent basis) (1)	$	32,810			$	33,700			$	34,537			$	35,062			$	33,717
Net interest margin (tax equivalent basis)
Net interest margin *		4.12	%			4.31	%			4.36	%			4.44	%			4.29	%
Tax-equivalent adjustment * (1)		0.07	%			0.07	%			0.08	%			0.08	%			0.08	%
Net interest margin (tax equivalent basis) * (1)		4.19	%			4.38	%			4.44	%			4.52	%			4.37	%
Average interest-earning assets	$	3,131,078			$	3,075,822			$	3,111,395			$	3,105,216			$	3,086,641
	Year Ended
	December 31, 2019				December 31, 2018
		(dollars in thousands)
Net interest income (tax equivalent basis)
Net interest income	$	133,800			$	129,442
Tax-equivalent adjustment (1)		2,309				2,661
Net interest income (tax equivalent basis) (1)	$	136,109			$	132,103
Net interest margin (tax equivalent basis)
Net interest margin *		4.31	%			4.16	%
Tax-equivalent adjustment * (1)		0.07	%			0.09	%
Net interest margin (tax equivalent basis) * (1)		4.38	%			4.25	%
Average interest-earning assets	$	3,105,863			$	3,109,289

_____________________*    Annualized measure.(1) On a C Corp 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
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
	(dollars in thousands)
Efficiency ratio (tax equivalent basis)
Total noninterest expense	$	21,950			$	22,303			$	24,561			$	22,212			$	23,440
Less: amortization of intangible assets		336				335				376				376				390
Adjusted noninterest expense	$	21,614			$	21,968			$	24,185			$	21,836			$	23,050
Net interest income	$	32,276			$	33,141			$	33,931			$	34,452			$	33,076
Total noninterest income		10,336				7,582				7,346				7,487				6,429
Operating revenue		42,612				40,723				41,277				41,939				39,505
Tax-equivalent adjustment (1)		534				559				606				610				641
Operating revenue (tax-equivalent basis) (1)	$	43,146			$	41,282			$	41,883			$	42,549			$	40,146
Efficiency ratio		50.72	%			53.94	%			58.59	%			52.07	%			58.35	%
Efficiency ratio (tax equivalent basis) (1)		50.10	%			53.21	%			57.74	%			51.32	%			57.42	%

_____________________(1) On a C Corp 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
	As of
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
	(dollars in thousands)
Tangible Common Equity
Total stockholders' equity	$	332,918			$	348,936			$	339,870			$	328,593			$	340,396
Less: Goodwill		23,620				23,620				23,620				23,620				23,620
Less: Core deposit intangible assets, net		4,030				4,366				4,701				5,077				5,453
Tangible common equity	$	305,268			$	320,950			$	311,549			$	299,896			$	311,323
Tangible Assets
Total assets	$	3,245,103			$	3,166,613			$	3,224,160			$	3,257,667			$	3,249,569
Less: Goodwill		23,620				23,620				23,620				23,620				23,620
Less: Core deposit intangible assets, net		4,030				4,366				4,701				5,077				5,453
Tangible assets	$	3,217,453			$	3,138,627			$	3,195,839			$	3,228,970			$	3,220,496
Total stockholders' equity to total assets		10.26	%			11.02	%			10.54	%			10.09	%			10.48	%
Tangible common equity to tangible assets		9.49	%			10.23	%			9.75	%			9.29	%			9.67	%

Reconciliation of Non-GAAP Financial Measures - Adjusted C Corp Equivalent Return on Average Stockholders' Equity and Adjusted C Corp Equivalent Return on Tangible Common Equity
	Three Months Ended
	December 31, 2019				September 30, 2019				June 30, 2019				March 31, 2019				December 31, 2018
	(dollars in thousands)
Average Tangible Common Equity
Total stockholders' equity	$	331,784			$	348,750			$	338,613			$	347,157			$	337,114
Less: Goodwill		23,620				23,620				23,620				23,620				23,620
Less: Core deposit intangible assets, net		4,224				4,561				4,919				5,301				5,663
Average tangible common equity	$	303,940			$	320,569			$	310,074			$	318,236			$	307,831
Net income	$	16,087			$	17,437			$	14,605			$	18,736			$	11,920
C Corp equivalent net income (1)		15,088				13,122				11,126				14,036				9,194
Adjusted C Corp equivalent net income		14,417				14,343				14,308				14,359				10,874
Return on average stockholders' equity *		19.39	%			20.00	%			17.25	%			21.59	%			14.14	%
C Corp equivalent return on average stockholders' equity * (1)		18.19	%			15.05	%			13.14	%			16.17	%			10.91	%
Adjusted C Corp equivalent return on average stockholders' equity (1)		17.38	%			16.45	%			16.90	%			16.54	%			12.90	%
Return on average tangible common equity *		21.17	%			21.76	%			18.84	%			23.55	%			15.49	%
C Corp equivalent return on average tangible common equity * (1)		19.86	%			16.37	%			14.35	%			17.64	%			11.95	%
Adjusted C Corp equivalent return on average tangible common equity *		18.97	%			17.90	%			18.46	%			18.05	%			14.13	%

_____________________*    Annualized measure.(1) Reflects adjustment to our historical net income for each period to give effect to the C Corp equivalent provision for income tax for such period.