HBT HBT Financial Inc

HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $13.6 million, or $0.47 diluted earnings per share, for the fourth quarter of 2021. This compares to net income of $13.7 million, or $0.50 diluted earnings per share, for the third quarter of 2021, and net income of $12.6 million, or $0.46 diluted earnings per share, for the fourth quarter of 2020.

Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “Our 2021 performance is the result of strong execution on the strategies that have made HBT Financial a consistently high performing company. We had an exceptionally strong fourth quarter that started with the completion of the NXT Bancorporation acquisition and the expansion of our franchise into Iowa. The larger commercial banking team and presence in new markets provided from this acquisition has had the positive impact on loan growth that we anticipated. Excluding PPP loans, we had 9% organic growth in total loans during the fourth quarter with well-balanced contributions coming from all areas of our lending. The higher level of loan growth enabled us to begin redeploying more of our excess liquidity into higher yielding earning assets, which will positively impact our net interest income and net interest margin going forward. We anticipate delivering another strong performance in 2022 resulting from our loan production capabilities, the accretive benefits of the NXT acquisition, and a balance sheet that is well positioned to benefit from rising interest rates. With the strength of our balance sheet and consistently high level of profitability, we expect to continue returning capital to shareholders through our stock repurchase program and our quarterly cash dividend, which has been increased to $0.16 per share to start 2022.”

Adjusted Net Income

In addition to reporting GAAP results, the Company believes adjusted net income and adjusted earnings per share, which adjust for the additional C Corp equivalent tax expense for periods prior to October 11, 2019, acquisition expenses, branch closure expenses, 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 $14.2 million, or $0.49 adjusted diluted earnings per share, for the fourth quarter of 2021. This compares to adjusted net income of $14.5 million, or $0.53 adjusted diluted earnings per share, for the third quarter of 2021, and adjusted net income of $12.4 million, or $0.45 adjusted diluted earnings per share, for the fourth quarter of 2020 (see "Reconciliation of Non-GAAP Financial Measures" tables).

NXT Bancorporation, Inc. Acquisition

On October 1, 2021, HBT completed its previously announced acquisition of NXT Bancorporation, Inc. (NXT), the holding company for NXT Bank. The acquisition expands HBT’s footprint into Eastern Iowa with four locations that began operating as branches of Heartland Bank and Trust Company in December 2021. After considering business combination accounting adjustments, NXT added total assets of $234 million, total loans of $195 million, and total deposits of $182 million.

Cash consideration of $10.6 million and stock consideration of approximately 1.8 million shares of HBT common stock resulted in aggregate consideration of $39.9 million. Goodwill of $5.7 million was recorded in the acquisition.

Acquisition-related expenses totaled $1.4 million during 2021, including $0.9 million during the fourth quarter of 2021 and $0.4 million during the third quarter of 2021. Acquisition-related expenses consisted primarily of investment banker fees, legal fees, and data processing expenses.

Cash Dividend

On January 25, 2022, the Company’s Board of Directors declared a quarterly cash dividend of $0.16 per share on the Company’s common stock (the “Dividend”). The Dividend is payable on February 15, 2022 to shareholders of record as of February 8, 2022. This represents an increase of $0.01 from the previous quarterly dividend of $0.15 per share.

Mr. Drake noted, “Our strong and consistent financial performance enables us to increase our quarterly cash dividend while maintaining sufficient capital to support our organic and acquisitive growth. Our quarterly dividend remains an important tool for enhancing the total return that we deliver for shareholders, while helping the Company to efficiently manage its capital.”

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2021 was $32.9 million, an increase of 7.0% from $30.7 million for the third quarter of 2021. The increase was primarily attributable to an increase in average loans due to the NXT acquisition and organic loan growth. This was partially offset by Paycheck Protection Program (“PPP”) loan fees recognized as interest income decreasing to $1.6 million during the fourth quarter of 2021, compared to $3.0 million during the third quarter of 2021.

Relative to the fourth quarter of 2020, net interest income increased $3.7 million, or 12.7%. The increase was primarily attributable to the increase in average interest-earning assets. PPP loan fees recognized as loan interest income were $1.2 million during the fourth quarter of 2020.

Net interest margin for the fourth quarter of 2021 was 3.17%, nearly unchanged from the third quarter of 2021. Lower yields on loans and securities were mostly offset by a more favorable interest-earning asset mix.

Relative to the fourth quarter of 2020, net interest margin decreased from 3.31%. The decrease was primarily due to a less favorable interest-earning asset mix, with increased balances being held in cash and lower-yielding securities.

Noninterest Income

Noninterest income for the fourth quarter of 2021 was $9.4 million, an increase of 11.5% from $8.4 million for the third quarter of 2021. The increase was primarily attributable to the third quarter results including impairment losses of $0.6 million related to our branch rationalization plan which was completed in the third quarter of 2021. Additionally, wealth management fees increased $0.3 million, primarily due to increased fees from farm management services and higher values of assets under management during the fourth quarter of 2021 relative to the third quarter of 2021. Partially offsetting this improvement was a $0.3 million decrease in gains on sale of mortgage loans due to a lower level of mortgage refinancing activity.

Relative to the fourth quarter of 2020, noninterest income decreased 15.7% from $11.1 million, primarily attributable to a $2.1 million decline in gains on sale of mortgage loans due to a lower level of mortgage refinancing activity. Partially offsetting this decline was a $0.4 million increase in card income as a result of increased card transaction volume driven by the full reopening of Illinois following COVID-19 prevention measures.

Noninterest Expense

Noninterest expense for the fourth quarter of 2021 was $24.4 million, an increase of 10.0% from $22.2 million for the third quarter of 2021. The increase was primarily attributable to the NXT acquisition, which contributed to a higher base level of noninterest expense, as well as acquisition-related expenses increasing to $0.9 million during the fourth quarter of 2021 from $0.4 million during the third quarter of 2021.

Relative to the fourth quarter of 2020, noninterest expense increased 7.6% from $22.7 million. The increase was also primarily attributable to the higher base level of noninterest expense following the NXT acquisition and acquisition-related expenses.

Loan Portfolio

Total loans outstanding, before allowance for loan losses, were $2.50 billion at December 31, 2021, compared with $2.15 billion at September 30, 2021 and $2.25 billion at December 31, 2020. The $351.9 million increase in loans from September 30, 2021 included $194.6 million of loans from the NXT acquisition and a $30.3 million reduction in PPP loan balances. Excluding the impact of acquired NXT and PPP loans, loans increased by $187.6 million, or 9.0%, linked quarter with growth across every category led by increases of $58.2 million in construction & land development, $31.1 million in commercial & industrial, $25.8 million in commercial real estate - non-owner occupied, $25.2 million in municipal, consumer, and other, and $21.2 million in multi-family loans.

Deposits

Total deposits were $3.74 billion at December 31, 2021, compared with $3.42 billion at September 30, 2021 and $3.13 billion at December 31, 2020. The $318.6 million increase was primarily attributable to the $181.6 million of deposits acquired from NXT and increased balances held in existing interest-bearing demand and noninterest-bearing accounts.

Asset Quality

Nonperforming loans totaled $2.8 million, or 0.11% of total loans, at December 31, 2021, compared with $5.5 million, or 0.26% of total loans, at September 30, 2021, and $10.0 million, or 0.44% of total loans, at December 31, 2020. The $2.7 million decrease in nonperforming loans from September 30, 2021 was primarily attributable to the partial pay down and return to accrual status of one relationship which totaled $1.8 million at September 30, 2021.

The Company recorded a negative provision for loan losses of $0.8 million for the fourth quarter of 2021, compared to a negative provision for loan losses of $1.7 million for the third quarter of 2021. The negative provision was primarily due to a $0.9 million decrease in specific reserves on loans individually evaluated for impairment.

Net charge-offs for the fourth quarter of 2021 were $82 thousand, or 0.01% of average loans on an annualized basis, compared to net recoveries of $21 thousand, or less than 1 basis point of average loans on an annualized basis, for the third quarter of 2021, and net charge-offs of $0.2 million, or 0.04% of average loans on an annualized basis, for the fourth quarter of 2020.

The Company’s allowance for loan losses was 0.96% of total loans and 861.32% of nonperforming loans at December 31, 2021, compared with 1.16% of total loans and 449.73% of nonperforming loans at September 30, 2021.

Capital

At December 31, 2021, the Company exceeded all regulatory capital requirements under Basel III and was considered to be “well-capitalized,” as summarized in the following table:

			Well Capitalized
	December 31,		Regulatory
	2021		Requirements
Total capital to risk-weighted assets	16.88	%	10.00	%
Tier 1 capital to risk-weighted assets	14.66	%	8.00	%
Common equity tier 1 capital ratio	13.37	%	6.50	%
Tier 1 leverage ratio	9.84	%	5.00	%
Total stockholders' equity to total assets	9.55	%	N/A
Tangible common equity to tangible assets (1)	8.89	%	N/A

 

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

Stock Repurchase Program

During the fourth quarter of 2021, the Company repurchased 147,383 shares of its common stock at a weighted average price of $17.52 under its stock repurchase program. Purchases were conducted in accordance with Rule 10b-18 and in compliance with Regulation M under the Securities Exchange Act of 1934, as amended. The Company’s Board of Directors authorized a new stock repurchase program that took effect upon the expiration of the Company’s prior stock repurchase program on December 31, 2021. The new Program will be in effect until January 1, 2023 and authorizes the Company to repurchase up to $15 million of its common stock.

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 Central and Northeastern Illinois and Eastern Iowa through 61 branches. As of December 31, 2021, HBT had total assets of $4.3 billion, total loans of $2.5 billion, and total deposits of $3.7 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, adjusted net income, adjusted return on average assets, adjusted return on average stockholders' equity, and adjusted return on average tangible common equity. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the "Reconciliation of Non-GAAP Financial Measures" tables.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company’s expected benefits, synergies, results and growth resulting from the acquisition of NXT and NXT Bank, and the Company’s plans, objectives, future performance, goals, future earnings levels and future loan growth, including as a result of expected improvement in economic conditions with respect to COVID-19. These statements are subject to many risks and uncertainties, that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: the timing, outcome and results of integrating the operations of NXT into those of HBT; the possibility that expected benefits, synergies and results from the acquisition are delayed or not achieved; the effects of the merger on HBT’s future financial condition, results of operations, strategy and plans; potential adverse reactions or changes to customer or employee relationships resulting from the completion of the transaction; the diversion of management time on integration-related issues; the severity, magnitude and duration of the COVID-19 pandemic; the direct and indirect impacts of the COVID-19 pandemic and governmental responses to the pandemic on our operations and our customers’ businesses; the continued disruption or worsening of global, national, state and local economies associated with the COVID-19 pandemic, including in connection with inflationary pressures and supply chain constraints, which could affect our capital levels and earnings, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses; our asset quality and any loan charge-offs; changes in interest rates and general economic, business and political conditions in the United States generally or in Illinois and Iowa in particular, including in the financial markets; changes in business plans as circumstances warrant; risks relating to other 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 SummaryConsolidated Statements of Income

		Three Months Ended											Year Ended
		December 31,				September 30,				December 31,			December 31,
		2021				2021				2020			2021				2020
INTEREST AND DIVIDEND INCOME		(dollars in thousands, except per share data)
Loans, including fees:
Taxable		$	27,884			$	25,604			$	25,497		$	103,900			$	102,893
Federally tax exempt			662				572				555			2,384				2,303
Securities:
Taxable			4,625				4,632				3,407			16,948				13,179
Federally tax exempt			1,017				1,103				1,208			4,400				4,696
Interest-bearing deposits in bank			142				190				65			527				938
Other interest and dividend income			25				14				14			64				56
Total interest and dividend income			34,355				32,115				30,746			128,223				124,065
INTEREST EXPENSE
Deposits			651				564				741			2,472				4,221
Securities sold under agreements to repurchase			11				8				8			34				48
Borrowings			7				1				—			9				2
Subordinated notes			470				470				469			1,879				616
Junior subordinated debentures issued to capital trusts			357				357				364			1,426				1,573
Total interest expense			1,496				1,400				1,582			5,820				6,460
Net interest income			32,859				30,715				29,164			122,403				117,605
PROVISION FOR LOAN LOSSES			(843	)			(1,667	)			430			(8,077	)			10,532
Net interest income after provision for loan losses			33,702				32,382				28,734			130,480				107,073
NONINTEREST INCOME
Card income			2,518				2,509				2,151			9,734				8,087
Service charges on deposit accounts			1,716				1,677				1,527			6,080				5,987
Wealth management fees			2,371				2,036				2,270			8,384				7,237
Mortgage servicing			730				699				803			2,825				2,978
Mortgage servicing rights fair value adjustment			265				40				363			1,690				(2,584	)
Gains on sale of mortgage loans			927				1,257				2,980			5,846				8,835
Gains (losses) on securities			33				28				30			107				33
Gains (losses) on foreclosed assets			184				(14	)			22			310				142
Gains (losses) on other assets			(4	)			(672	)			—			(723	)			(71	)
Income on bank owned life insurance			41				—				—			41				—
Other noninterest income			573				832				946			3,034				3,812
Total noninterest income			9,354				8,392				11,092			37,328				34,456
NONINTEREST EXPENSE
Salaries			12,578				11,988				12,593			49,437				50,616
Employee benefits			2,017				1,500				1,490			6,694				8,045
Occupancy of bank premises			1,777				1,610				1,501			6,788				6,580
Furniture and equipment			793				657				556			2,676				2,447
Data processing			2,153				1,767				1,901			7,329				6,742
Marketing and customer relations			1,085				883				925			3,376				3,476
Amortization of intangible assets			255				252				305			1,054				1,232
FDIC insurance			280				279				231			1,043				707
Loan collection and servicing			219				400				463			1,317				1,755
Foreclosed assets			204				242				154			908				557
Other noninterest expense			3,020				2,589				2,546			10,624				9,799
Total noninterest expense			24,381				22,167				22,665			91,246				91,956
INCOME BEFORE INCOME TAX EXPENSE			18,675				18,607				17,161			76,562				49,573
INCOME TAX EXPENSE			5,081				4,892				4,519			20,291				12,728
NET INCOME		$	13,594			$	13,715			$	12,642		$	56,271			$	36,845
EARNINGS PER SHARE - BASIC		$	0.47			$	0.50			$	0.46		$	2.02			$	1.34
EARNINGS PER SHARE - DILUTED		$	0.47			$	0.50			$	0.46		$	2.02			$	1.34
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING			29,036,164				27,340,926				27,457,306			27,795,806				27,457,306

HBT Financial, Inc.Consolidated Financial SummaryConsolidated Balance Sheets

		December 31,				September 30,				December 31,
		2021				2021				2020
		(dollars in thousands)
ASSETS
Cash and due from banks		$	23,387			$	36,508			$	24,912
Interest-bearing deposits with banks			385,881				435,421				287,539
Cash and cash equivalents			409,268				471,929				312,451
Interest-bearing time deposits with banks			490				—				—
Debt securities available-for-sale, at fair value			942,168				896,218				922,869
Debt securities held-to-maturity			336,185				318,730				68,395
Equity securities with readily determinable fair value			3,443				3,366				3,292
Equity securities with no readily determinable fair value			1,927				1,867				1,552
Restricted stock, at cost			2,739				2,739				2,498
Loans held for sale			4,942				8,582				14,713
Loans, before allowance for loan losses			2,499,689				2,147,812				2,247,006
Allowance for loan losses			(23,936	)			(24,861	)			(31,838	)
Loans, net of allowance for loan losses			2,475,753				2,122,951				2,215,168
Bank owned life insurance			7,393				—				—
Bank premises and equipment, net			52,483				49,337				52,904
Bank premises held for sale			1,452				1,462				121
Foreclosed assets			3,278				7,315				4,168
Goodwill			29,322				23,620				23,620
Core deposit intangible assets, net			1,943				1,999				2,798
Mortgage servicing rights, at fair value			7,994				7,359				5,934
Investments in unconsolidated subsidiaries			1,165				1,165				1,165
Accrued interest receivable			14,901				13,376				14,255
Other assets			17,408				16,211				20,664
Total assets		$	4,314,254			$	3,948,226			$	3,666,567
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing		$	1,087,659			$	1,003,723			$	882,939
Interest-bearing			2,650,526				2,415,833				2,247,595
Total deposits			3,738,185				3,419,556				3,130,534
Securities sold under agreements to repurchase			61,256				47,957				45,736
Subordinated notes			39,316				39,297				39,238
Junior subordinated debentures issued to capital trusts			37,714				37,698				37,648
Other liabilities			25,902				24,897				49,494
Total liabilities			3,902,373				3,569,405				3,302,650
Stockholders' Equity
Common stock			293				275				275
Surplus			220,891				191,413				190,875
Retained earnings			194,132				184,919				154,614
Accumulated other comprehensive income			1,471				4,537				18,153
Treasury stock at cost			(4,906	)			(2,323	)			—
Total stockholders’ equity			411,881				378,821				363,917
Total liabilities and stockholders’ equity		$	4,314,254			$	3,948,226			$	3,666,567
SHARE INFORMATION
Shares of common stock outstanding			28,986,061				27,334,428				27,457,306

HBT Financial, Inc.Consolidated Financial Summary

		December 31,			September 30,			December 31,
		2021			2021			2020
		(dollars in thousands)
LOANS
Commercial and industrial		$	286,946		$	261,763		$	393,312
Agricultural and farmland			247,796			229,718			222,723
Commercial real estate - owner occupied			234,544			203,096			222,360
Commercial real estate - non-owner occupied			684,023			579,860			520,395
Multi-family			263,911			215,245			236,391
Construction and land development			298,048			232,291			225,652
One-to-four family residential			327,837			294,612			306,775
Municipal, consumer, and other			156,584			131,227			119,398
Loans, before allowance for loan losses		$	2,499,689		$	2,147,812		$	2,247,006
PPP LOANS (included above)
Commercial and industrial		$	28,404		$	55,374		$	153,860
Agricultural and farmland			913			3,462			3,049
Municipal, consumer, and other			171			985			6,587
Total PPP Loans		$	29,488		$	59,821		$	163,496

		December 31,			September 30,			December 31,
		2021			2021			2020
		(dollars in thousands)
DEPOSITS
Noninterest-bearing		$	1,087,659		$	1,003,723		$	882,939
Interest-bearing demand			1,105,949			1,013,678			968,592
Money market			583,198			519,343			462,056
Savings			633,171			611,050			517,473
Time			328,208			271,762			299,474
Total deposits		$	3,738,185		$	3,419,556		$	3,130,534

HBT Financial, Inc.Consolidated Financial Summary

		Three Months Ended
		December 31, 2021									September 30, 2021									December 31, 2020
		Average									Average									Average
		Balance				Interest			Yield/Cost *		Balance				Interest			Yield/Cost *		Balance				Interest			Yield/Cost *
		(dollars in thousands)
ASSETS
Loans		$	2,432,025			$	28,546		4.66	%	$	2,135,476			$	26,176		4.86	%	$	2,295,569			$	26,052		4.51	%
Securities			1,285,672				5,642		1.74			1,180,513				5,735		1.93			932,698				4,615		1.97
Deposits with banks			392,729				142		0.14			513,158				190		0.15			277,363				65		0.09
Other			4,821				25		2.10			2,739				14		2.00			2,498				14		2.26
Total interest-earning assets			4,115,247			$	34,355		3.31	%		3,831,886			$	32,115		3.33	%		3,508,128			$	30,746		3.49	%
Allowance for loan losses			(24,826	)								(26,470	)								(31,749	)
Noninterest-earning assets			176,242									159,635									157,208
Total assets		$	4,266,663								$	3,965,051								$	3,633,587
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand		$	1,061,481			$	145		0.05	%	$	1,020,216			$	129		0.05	%	$	930,494			$	111		0.05	%
Money market			589,396				158		0.11			510,183				96		0.07			475,183				89		0.07
Savings			630,489				53		0.03			608,436				48		0.03			506,381				39		0.03
Time			322,800				295		0.36			275,224				291		0.42			303,617				502		0.66
Total interest-bearing deposits			2,604,166				651		0.10			2,414,059				564		0.09			2,215,675				741		0.13
Securities sold under agreements to repurchase			56,861				11		0.08			49,923				8		0.06			51,297				8		0.06
Borrowings			5,309				7		0.57			326				1		0.46			326				—		0.51
Subordinated notes			39,305				470		4.74			39,285				470		4.74			39,219				469		4.76
Junior subordinated debentures issued to capital trusts			37,704				357		3.76			37,688				357		3.76			37,638				364		3.84
Total interest-bearing liabilities			2,743,345			$	1,496		0.22	%		2,541,281			$	1,400		0.22	%		2,344,155			$	1,582		0.27	%
Noninterest-bearing deposits			1,087,468									1,016,384									888,390
Noninterest-bearing liabilities			25,660									26,523									41,730
Total liabilities			3,856,473									3,584,188									3,274,275
Stockholders' Equity			410,190									380,863									359,312
Total liabilities and stockholders’ equity		$	4,266,663								$	3,965,051								$	3,633,587
Net interest income/Net interest margin (1)						$	32,859		3.17	%					$	30,715		3.18	%					$	29,164		3.31	%
Tax-equivalent adjustment (2)							514		0.05							508		0.05							502		0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3)						$	33,373		3.22	%					$	31,223		3.23	%					$	29,666		3.36	%
Net interest rate spread (4)									3.09	%								3.11	%								3.22	%
Net interest-earning assets (5)		$	1,371,902								$	1,290,605								$	1,163,973
Ratio of interest-earning assets to interest-bearing liabilities			1.50									1.51									1.50
Cost of total deposits									0.07	%								0.07	%								0.09	%

*      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.Consolidated Financial Summary

		Year Ended
		December 31, 2021									December 31, 2020
		Average									Average
		Balance				Interest			Yield/Cost *		Balance				Interest			Yield/Cost *
		(dollars in thousands)
ASSETS
Loans		$	2,271,544			$	106,284		4.68	%	$	2,245,093			$	105,196		4.69	%
Securities			1,148,900				21,348		1.86			789,062				17,875		2.27
Deposits with banks			422,828				527		0.12			282,130				938		0.33
Other			3,201				64		2.01			2,479				56		2.28
Total interest-earning assets			3,846,473			$	128,223		3.33	%		3,318,764			$	124,065		3.74	%
Allowance for loan losses			(27,999	)								(27,661	)
Noninterest-earning assets			162,064									156,397
Total assets		$	3,980,538								$	3,447,500
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand		$	1,024,888			$	518		0.05	%	$	873,060			$	647		0.07	%
Money market			521,366				437		0.08			474,033				697		0.15
Savings			595,887				188		0.03			477,260				196		0.04
Time			295,788				1,329		0.45			317,308				2,681		0.84
Total interest-bearing deposits			2,437,929				2,472		0.10			2,141,661				4,221		0.20
Securities sold under agreements to repurchase			50,104				34		0.07			49,714				48		0.10
Borrowings			1,653				9		0.54			1,080				2		0.22
Subordinated notes			39,275				1,879		4.78			12,869				616		4.79
Junior subordinated debentures issued to capital trusts			37,680				1,426		3.79			37,613				1,573		4.18
Total interest-bearing liabilities			2,566,641			$	5,820		0.23	%		2,242,937			$	6,460		0.29	%
Noninterest-bearing deposits			1,004,757									807,864
Noninterest-bearing liabilities			29,060									45,996
Total liabilities			3,600,458									3,096,797
Stockholders' Equity			380,080									350,703
Total liabilities and stockholders’ equity		$	3,980,538									3,447,500
Net interest income/Net interest margin (1)						$	122,403		3.18	%					$	117,605		3.54	%
Tax-equivalent adjustment (2)							2,028		0.05							1,943		0.06
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3)						$	124,431		3.23	%					$	119,548		3.60	%
Net interest rate spread (4)									3.10	%								3.45	%
Net interest-earning assets (5)		$	1,279,832								$	1,075,827
Ratio of interest-earning assets to interest-bearing liabilities			1.50									1.48
Cost of total deposits									0.07	%								0.14	%

 *     Annualized measure.

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

HBT Financial, Inc.Consolidated Financial Summary

		December 31,			September 30,			December 31,
		2021			2021			2020
		(dollars in thousands)
NONPERFORMING ASSETS
Nonaccrual		$	2,763		$	5,489		$	9,939
Past due 90 days or more, still accruing (1)			16			39			21
Total nonperforming loans			2,779			5,528			9,960
Foreclosed assets			3,278			7,315			4,168
Total nonperforming assets		$	6,057		$	12,843		$	14,128
Allowance for loan losses		$	23,936		$	24,861		$	31,838
Loans, before allowance for loan losses			2,499,689			2,147,812			2,247,006
CREDIT QUALITY RATIOS
Allowance for loan losses to loans, before allowance for loan losses			0.96	%		1.16	%		1.42	%
Allowance for loan losses to nonperforming loans			861.32			449.73			319.66
Nonaccrual loans to loans, before allowance for loan losses			0.11			0.26			0.44
Nonperforming loans to loans, before allowance for loan losses			0.11			0.26			0.44
Nonperforming assets to total assets			0.14			0.33			0.39
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets			0.24			0.60			0.63

(1)   Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $32 thousand, $27 thousand, and $0.6 million as of December 31, 2021, September 30, 2021, and December 31, 2020, respectively.

		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,
		2021				2021				2020				2021				2020
ALLOWANCE FOR LOAN LOSSES		(dollars in thousands)
Beginning balance		$	24,861			$	26,507			$	31,654			$	31,838			$	22,299
Provision			(843	)			(1,667	)			430				(8,077	)			10,532
Charge-offs			(539	)			(278	)			(509	)			(1,414	)			(2,968	)
Recoveries			457				299				263				1,589				1,975
Ending balance		$	23,936			$	24,861			$	31,838			$	23,936			$	31,838
Net charge-offs (recoveries)		$	82			$	(21	)		$	246			$	(175	)		$	993
Average loans, before allowance for loan losses			2,432,025				2,135,476				2,295,569				2,271,544				2,245,093
Net charge-offs (recoveries) to average loans, before allowance for loan losses *			0.01		%		—		%		0.04		%		(0.01	)	%		0.04		%

*     Annualized measure.

HBT Financial, Inc.Consolidated Financial Summary

		As of or for the Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,
		2021			2021			2020			2021			2020
		(dollars in thousands, except per share data)
EARNINGS AND PER SHARE INFORMATION
Net income		$	13,594		$	13,715		$	12,642		$	56,271		$	36,845
Earnings per share - Basic			0.47			0.50			0.46			2.02			1.34
Earnings per share - Diluted			0.47			0.50			0.46			2.02			1.34
Book value per share		$	14.21		$	13.86		$	13.25
Shares of common stock outstanding			28,986,061			27,334,428			27,457,306
Weighted average shares of common stock outstanding			29,036,164			27,340,926			27,457,306			27,795,806			27,457,306
SUMMARY RATIOS
Net interest margin *			3.17	%		3.18	%		3.31	%		3.18	%		3.54	%
Efficiency ratio			57.15			56.04			55.54			56.46			59.66
Loan to deposit ratio			66.87			62.81			71.78
Return on average assets *			1.26	%		1.37	%		1.38	%		1.41	%		1.07	%
Return on average stockholders' equity *			13.15			14.29			14.00			14.81			10.51
NON-GAAP FINANCIAL MEASURES (1)
Adjusted net income		$	14,160		$	14,479		$	12,382		$	56,840		$	39,734
Adjusted earnings per share - Basic			0.49			0.53			0.45			2.04			1.44
Adjusted earnings per share - Diluted			0.49			0.53			0.45			2.04			1.44
Tangible book value per share		$	13.13		$	12.92		$	12.29
Net interest margin (tax equivalent basis) * (2)			3.22	%		3.23	%		3.36	%		3.23	%		3.60	%
Efficiency ratio (tax equivalent basis) (2)			56.47			55.32			54.86			55.76			58.91
Return on average tangible common equity *			14.24	%		15.32	%		15.12	%		15.95	%		11.38	%
Adjusted return on average assets *			1.32	%		1.45	%		1.36	%		1.43	%		1.15	%
Adjusted return on average stockholders' equity *			13.70			15.08			13.71			14.95			11.33
Adjusted return on average tangible common equity *			14.83			16.18			14.81			16.12			12.28

*      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%.

Reconciliation of Non-GAAP Financial Measures –Adjusted Net Income and Adjusted Return on Average Assets

		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,
		2021				2021				2020				2021				2020
		(dollars in thousands)
Net income		$	13,594			$	13,715			$	12,642			$	56,271			$	36,845
Adjustments:
Acquisition expenses			(879	)			(380	)			—				(1,416	)			—
Branch closure expenses			—				(644	)			—				(748	)			—
Charges related to termination of certain employee benefit plans			—				—				—				—				(1,457	)
Mortgage servicing rights fair value adjustment			265				40				363				1,690				(2,584	)
Total adjustments			(614	)			(984	)			363				(474	)			(4,041	)
Tax effect of adjustments			48				220				(103	)			(95	)			1,152
Less adjustments, after tax effect			(566	)			(764	)			260				(569	)			(2,889	)
Adjusted net income		$	14,160			$	14,479			$	12,382			$	56,840			$	39,734
Average assets		$	4,266,663			$	3,965,051			$	3,633,587			$	3,980,538			$	3,447,500
Return on average assets *			1.26		%		1.37		%		1.38		%		1.41		%		1.07		%
Adjusted return on average assets *			1.32				1.45				1.36				1.43				1.15

*      Annualized measure.

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

		Three Months Ended												Year Ended
		December 31,				September 30,				December 31,				December 31,
		2021				2021				2020				2021				2020
		(dollars in thousands, except per share data)
Numerator:
Net income		$	13,594			$	13,715			$	12,642			$	56,271			$	36,845
Earnings allocated to participating securities (1)			(23	)			(25	)			(31	)			(104	)			(93	)
Numerator for earnings per share - basic and diluted		$	13,571			$	13,690			$	12,611			$	56,167			$	36,752
Adjusted net income		$	14,160			$	14,479			$	12,382			$	56,840			$	39,734
Earnings allocated to participating securities (1)			(24	)			(27	)			(32	)			(105	)			(101	)
Numerator for adjusted earnings per share - basic and diluted		$	14,136			$	14,452			$	12,350			$	56,735			$	39,633
Denominator:
Weighted average common shares outstanding			29,036,164				27,340,926				27,457,306				27,795,806				27,457,306
Dilutive effect of outstanding restricted stock units			27,577				13,921				—				15,487				—
Weighted average common shares outstanding, including all dilutive potential shares			29,063,741				27,354,847				27,457,306				27,811,293				27,457,306
Earnings per share - Basic		$	0.47			$	0.50			$	0.46			$	2.02			$	1.34
Earnings per share - Diluted		$	0.47			$	0.50			$	0.46			$	2.02			$	1.34
Adjusted earnings per share - Basic		$	0.49			$	0.53			$	0.45			$	2.04			$	1.44
Adjusted earnings per share - Diluted		$	0.49			$	0.53			$	0.45			$	2.04			$	1.44

(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 Margin (Tax Equivalent Basis)

		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,
		2021			2021			2020			2021			2020
		(dollars in thousands)
Net interest income (tax equivalent basis)
Net interest income		$	32,859		$	30,715		$	29,164		$	122,403		$	117,605
Tax-equivalent adjustment (1)			514			508			502			2,028			1,943
Net interest income (tax equivalent basis) (1)		$	33,373		$	31,223		$	29,666		$	124,431		$	119,548
Net interest margin (tax equivalent basis)
Net interest margin *			3.17	%		3.18	%		3.31	%		3.18	%		3.54	%
Tax-equivalent adjustment * (1)			0.05			0.05			0.05			0.05			0.06
Net interest margin (tax equivalent basis) * (1)			3.22	%		3.23	%		3.36	%		3.23	%		3.60	%
Average interest-earning assets		$	4,115,247		$	3,831,886		$	3,508,128		$	3,846,473		$	3,318,764

*      Annualized measure.

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

Reconciliation of Non-GAAP Financial Measures – Efficiency Ratio (Tax Equivalent Basis)

		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,
		2021			2021			2020			2021			2020
		(dollars in thousands)
Efficiency ratio (tax equivalent basis)
Total noninterest expense		$	24,381		$	22,167		$	22,665		$	91,246		$	91,956
Less: amortization of intangible assets			255			252			305			1,054			1,232
Adjusted noninterest expense		$	24,126		$	21,915		$	22,360		$	90,192		$	90,724
Net interest income		$	32,859		$	30,715		$	29,164		$	122,403		$	117,605
Total noninterest income			9,354			8,392			11,092			37,328			34,456
Operating revenue			42,213			39,107			40,256			159,731			152,061
Tax-equivalent adjustment (1)			514			508			502			2,028			1,943
Operating revenue (tax equivalent basis) (1)		$	42,727		$	39,615		$	40,758		$	161,759		$	154,004
Efficiency ratio			57.15	%		56.04	%		55.54	%		56.46	%		59.66	%
Efficiency ratio (tax equivalent basis) (1)			56.47			55.32			54.86			55.76			58.91

(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

		December 31,			September 30,			December 31,
		2021			2021			2020
		(dollars in thousands, except per share data)
Tangible common equity
Total stockholders' equity		$	411,881		$	378,821		$	363,917
Less: Goodwill			29,322			23,620			23,620
Less: Core deposit intangible assets, net			1,943			1,999			2,798
Tangible common equity		$	380,616		$	353,202		$	337,499
Tangible assets
Total assets		$	4,314,254		$	3,948,226		$	3,666,567
Less: Goodwill			29,322			23,620			23,620
Less: Core deposit intangible assets, net			1,943			1,999			2,798
Tangible assets		$	4,282,989		$	3,922,607		$	3,640,149
Total stockholders' equity to total assets			9.55	%		9.59	%		9.93	%
Tangible common equity to tangible assets			8.89			9.00			9.27
Shares of common stock outstanding			28,986,061			27,334,428			27,457,306
Book value per share		$	14.21		$	13.86		$	13.25
Tangible book value per share			13.13			12.92			12.29

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

		Three Months Ended									Year Ended
		December 31,			September 30,			December 31,			December 31,
		2021			2021			2020			2021			2020
		(dollars in thousands)
Average tangible common equity
Total stockholders' equity		$	410,190		$	380,863		$	359,312		$	380,080		$	350,703
Less: Goodwill			29,322			23,620			23,620			25,057			23,620
Less: Core deposit intangible assets, net			2,092			2,152			2,979			2,333			3,436
Average tangible common equity		$	378,776		$	355,091		$	332,713		$	352,690		$	323,647
Net income		$	13,594		$	13,715		$	12,642		$	56,271		$	36,845
Adjusted net income			14,160			14,479			12,382			56,840			39,734
Return on average stockholders' equity *			13.15	%		14.29	%		14.00	%		14.81	%		10.51	%
Return on average tangible common equity *			14.24			15.32			15.12			15.95			11.38
Adjusted return on average stockholders' equity *			13.70	%		15.08	%		13.71	%		14.95	%		11.33	%
Adjusted return on average tangible common equity *			14.83			16.18			14.81			16.12			12.28

*      Annualized measure.