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 $15.6 million, or $0.54 diluted earnings per share, for the third quarter of 2022. This compares to net income of $14.1 million, or $0.49 diluted earnings per share, for the second quarter of 2022, and net income of $13.7 million, or $0.50 diluted earnings per share, for the third quarter of 2021.

Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “We delivered another strong financial performance in the third quarter with earnings increasing from the prior quarter, while we continued to maintain exceptional asset quality and strong capital ratios. We generated our strongest loan growth of the year which enabled us to drive further improvement in our mix of earning assets. Combined with stable deposit costs, this resulted in significant expansion in our net interest margin. While continuing to generate strong financial results, we signed a merger agreement with Town and Country Financial Corporation (“Town and Country”) that we believe will create additional long-term value for shareholders. The transaction remains on track to close during the first quarter of 2023, and we look forward to welcoming our new customers and colleagues, and capitalizing on our expanded footprint in Illinois that we believe will enhance our ability to continue generating profitable growth in the years to come.”

Adjusted Net Income

In addition to reporting GAAP results, the Company believes adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on sale of closed branch premises, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $15.9 million, or $0.55 adjusted diluted earnings per share, for the third quarter of 2022. This compares to adjusted net income of $13.8 million, or $0.48 adjusted diluted earnings per share, for the second quarter of 2022, and adjusted net income of $14.5 million, or $0.53 adjusted diluted earnings per share, for the third quarter of 2021 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Net Interest Income and Net Interest Margin

Net interest income for the third quarter of 2022 was $37.4 million, an increase of 8.8% from $34.4 million for the second quarter of 2022. The increase was primarily attributable to higher yields on interest-earning assets, with the yield on loans increasing 27 basis points to 4.91%, and stable deposit costs, with cost of total deposits only increasing 1 basis point to 0.06%. Paycheck Protection Program (“PPP”) loan fees recognized as loan interest income totaled $0.1 million during the third quarter of 2022 and $0.6 million during the second quarter of 2022.

Relative to the third quarter of 2021, net interest income increased 21.7% from $30.7 million. The increase was primarily attributable to higher average balances of interest-earning assets following the NXT Bancorporation, Inc. (“NXT”) acquisition in the fourth quarter of 2021, a more favorable asset mix, and higher yields on interest-earning assets. PPP loan fees recognized as loan interest income totaled $3.0 million during the third quarter of 2021.

Net interest margin for the third quarter of 2022 was 3.65%, compared to 3.34% for the second quarter of 2022. The increase was primarily attributable to higher yields on interest-earning assets. The contribution of PPP loan fees to net interest margin was 1 basis point during the third quarter of 2022 and 6 basis points during the second quarter of 2022. Additionally, the contribution of acquired loan discount accretion to net interest margin was 2 basis points during the third quarter of 2022 and 3 basis points during the second quarter of 2022.

Relative to the third quarter of 2021, net interest margin increased from 3.18%. This increase was primarily attributable to a more favorable mix of interest-earning assets and higher yields on interest-earning assets. PPP loan fees recognized as loan interest income contributed 31 basis points to net interest margin and acquired loan discount accretion contributed 2 basis points to net interest margin during the third quarter of 2021.

Noninterest Income

Noninterest income for the third quarter of 2022 was $8.2 million, a decrease of 3.7% from $8.6 million for the second quarter of 2022. The decrease was primarily attributable to a $0.3 million decrease in wealth management fees, due to a decline in assets under management resulting from the 2022 market performance, and a $0.1 million decrease in card income due to lower debit and credit card transaction volume.

Relative to the third quarter of 2021, noninterest income decreased 1.9% from $8.4 million. A $0.9 million decrease in gains on sale of mortgage loans resulting from a lower level of mortgage refinancing activity was mostly offset by a $0.6 million improvement to gains (losses) on other assets, as the 2021 results included impairment losses of $0.6 million related to branches closed during 2021.

Noninterest Expense

Noninterest expense for the third quarter of 2022 was $24.0 million, a slight increase from $23.8 million for the second quarter of 2022. Decreases in data processing and marketing expenses were mostly offset by an increase in other noninterest expense, primarily resulting from legal and professional fees related to the pending acquisition of Town and Country.

Relative to the third quarter of 2021, noninterest expense increased 8.3% from $22.2 million. The increase was primarily attributable to a higher base level of noninterest expense following the NXT acquisition, primarily related to personnel costs and branch operations expenses.

Loan Portfolio

Total loans outstanding, before allowance for loan losses, were $2.58 billion at September 30, 2022, compared with $2.45 billion at June 30, 2022 and $2.15 billion at September 30, 2021. The $128.1 million increase in total loans from June 30, 2022 was primarily attributable to broad growth in all of our geographic markets and a moderation in payoffs and prepayments.

Deposits

Total deposits were $3.64 billion at September 30, 2022, compared with $3.70 billion at June 30, 2022 and $3.42 billion at September 30, 2021. The $58.5 million decrease from June 30, 2022 was primarily attributable to lower balances maintained in retail accounts and a seasonal decrease in public fund accounts following annual real estate tax collections.

Asset Quality

Nonperforming loans totaled $3.2 million, or 0.12% of total loans, at September 30, 2022, compared with $3.4 million, or 0.14% of total loans, at June 30, 2022, and $5.5 million, or 0.26% of total loans, at September 30, 2021.

The Company recorded a provision for loan losses of $0.4 million for the third quarter of 2022, compared to $0.1 million for the second quarter of 2022. The provision was primarily due to the increase in loans during the third quarter of 2022, resulting in a $1.1 million increase in required reserves, and a decrease in specific reserves on loans individually evaluated for impairment, resulting in a $0.7 million decrease in required reserves.

The Company had net charge-offs of $0.1 million, or 0.01% of average loans on an annualized basis, for the third quarter of 2022, compared to net recoveries of $0.1 million, or (0.01)% of average loans on an annualized basis, for the second quarter of 2022, and net recoveries of $21 thousand, or less than 1 basis point of average loans on an annualized basis, for the third quarter of 2021.

The Company’s allowance for loan losses was 0.97% of total loans and 781.66% of nonperforming loans at September 30, 2022, compared with 1.01% of total loans and 721.11% of nonperforming loans at June 30, 2022.

Capital

At September 30, 2022, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:

			Well Capitalized
			Regulatory
	September 30, 2022		Requirements
Total capital to risk-weighted assets	16.34	%	10.00	%
Tier 1 capital to risk-weighted assets	14.26	%	8.00	%
Common equity tier 1 capital ratio	13.08	%	6.50	%
Tier 1 leverage ratio	10.44	%	5.00	%
Total stockholders' equity to total assets	8.52	%	N/A
Tangible common equity to tangible assets (1)	7.85	%	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 third quarter of 2022, the Company repurchased 78,571 shares of its common stock at a weighted average price of $18.22 under its stock repurchase program. The stock repurchase program has been paused until completion of the vote of Town and Country’s shareholders on the merger. The Company’s Board of Directors authorized the repurchase of up to $15 million of its common stock under its stock repurchase program in effect until January 1, 2023. As of September 30, 2022, the Company had $10.2 million remaining under the current stock repurchase authorization.

Pending Acquisition of Town and Country

On August 23, 2022, HBT and Town and Country, the holding company for Town and Country Bank, jointly announced the signing of a definitive agreement pursuant to which HBT will acquire Town and Country and Town and Country Bank. The acquisition will further enhance HBT’s footprint in Central Illinois as well as expand HBT’s footprint into metro-east St. Louis. Acquisition-related expenses were $0.5 million during the third quarter of 2022.

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 58 full-service branches. As of September 30, 2022, HBT had total assets of $4.2 billion, total loans of $2.6 billion, and total deposits of $3.6 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, 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; (iv) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business; (v) changes in interest rates and prepayment rates of the Company’s assets (including the impact of LIBOR phase-out); (vi) increased competition in the financial services sector 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) the possibility that stockholders of Town and Country may not approve the merger agreement; (xiv) the risk that a condition to closing of the proposed transaction may not be satisfied, that either party may terminate the merger agreement or that the closing of the proposed transaction might be delayed or not occur at all; (xv) potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction; (xvi) the diversion of management time on transaction-related issues; (xvii) the ultimate timing, outcome and results of integrating the operations of Town and Country into those of HBT; (xviii) the effects of the merger on HBT’s future financial condition, results of operations, strategy and plans; (xix) regulatory approvals of the transaction; and (xx) the ability of the Company to manage the risks associated with the foregoing. 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 (the “SEC”).

Important Information and Where to Find It

In connection with the proposed transaction, HBT and Town and Country filed materials with the SEC, including a Registration Statement on Form S-4 of HBT that includes a proxy statement of Town and Country and a prospectus of HBT. After the Registration Statement is declared effective by the SEC, HBT and Town and Country intend to mail a definitive proxy statement/prospectus to the stockholders of Town and Country. This press release is not a substitute for the proxy statement/prospectus or the Registration Statement or for any other document that HBT or Town and Country may file with the SEC and send to Town and Country’s stockholders in connection with the proposed transaction. TOWN AND COUNTRY’S STOCKHOLDERS ARE URGED TO CAREFULLY AND THOROUGHLY READ THE PROXY STATEMENT/PROSPECTUS AND THE REGISTRATION STATEMENT, AS MAY BE AMENDED OR SUPPLEMENTED FROM TIME TO TIME, AND OTHER RELEVANT DOCUMENTS FILED BY HBT OR TOWN AND COUNTRY WITH THE SEC, WHEN THEY BECOME AVAILABLE BECAUSE THEY WILL CONTAIN IMPORTANT INFORMATION ABOUT HBT, TOWN AND COUNTRY, THE PROPOSED TRANSACTION, THE RISKS RELATED THERETO AND RELATED MATTERS.

Investors will be able to obtain free copies of the Registration Statement and proxy statement/prospectus, as each may be amended from time to time, and other relevant documents filed by HBT and Town and Country with the SEC (when they become available) through the website maintained by the SEC at www.sec.gov. Copies of documents filed with the SEC by HBT will be available free of charge from HBT’s website at https://ir.hbtfinancial.com or by contacting HBT’s Investor Relations Department at HBTIR@hbtbank.com.

Participants in the Proxy Solicitation

HBT, Town and Country and their respective directors and certain of their executive officers and other members of management and employees may be deemed, under SEC rules, to be participants in the solicitation of proxies from Town and Country’s stockholders in connection with the proposed transaction. Information regarding the executive officers and directors of HBT is included in its definitive proxy statement for its 2022 annual meeting filed with the SEC on April 5, 2022. Information regarding the executive officers and directors of Town and Country and additional information regarding the persons who may be deemed participants and their direct and indirect interests, by security holdings or otherwise, will be set forth in the Registration Statement and proxy statement/prospectus and other materials when they are filed with the SEC in connection with the proposed transaction. Free copies of these documents may be obtained as described in the paragraphs above.

No Offer or Solicitation

This press release does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities or a solicitation of any vote or approval with respect to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

CONTACT:Tony RossiHBTIR@hbtbank.com(310) 622-8221

HBT Financial, Inc.Unaudited Consolidated Financial SummaryConsolidated Statements of Income

		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
		2022				2022				2021				2022				2021
INTEREST AND DIVIDEND INCOME		(dollars in thousands, except per share data)
Loans, including fees:
Taxable		$	29,855			$	27,843			$	25,604			$	84,504			$	76,016
Federally tax exempt			842				679				572				2,183				1,722
Securities:
Taxable			6,635				5,663				4,632				16,947				12,323
Federally tax exempt			1,207				1,138				1,103				3,385				3,383
Interest-bearing deposits in bank			458				420				190				1,037				385
Other interest and dividend income			17				14				14				50				39
Total interest and dividend income			39,014				35,757				32,115				108,106				93,868
INTEREST EXPENSE
Deposits			587				506				564				1,662				1,821
Securities sold under agreements to repurchase			9				8				8				26				23
Borrowings			85				1				1				87				2
Subordinated notes			470				469				470				1,409				1,409
Junior subordinated debentures issued to capital trusts			473				400				357				1,231				1,069
Total interest expense			1,624				1,384				1,400				4,415				4,324
Net interest income			37,390				34,373				30,715				103,691				89,544
PROVISION FOR LOAN LOSSES			386				145				(1,667	)			(53	)			(7,234	)
Net interest income after provision for loan losses			37,004				34,228				32,382				103,744				96,778
NONINTEREST INCOME
Card income			2,569				2,714				2,509				7,687				7,216
Wealth management fees			2,059				2,322				2,036				6,670				6,013
Service charges on deposit accounts			1,927				1,792				1,677				5,371				4,364
Mortgage servicing			697				661				699				2,016				2,095
Mortgage servicing rights fair value adjustment			351				366				40				2,446				1,425
Gains on sale of mortgage loans			354				326				1,257				1,267				4,919
Unrealized gains (losses) on equity securities			(107	)			(153	)			28				(447	)			74
Gains (losses) on foreclosed assets			(225	)			(7	)			(14	)			(192	)			126
Gains (losses) on other assets			(31	)			(43	)			(672	)			119				(719	)
Income on bank owned life insurance			41				41				—				122				—
Other noninterest income			599				532				832				1,769				2,461
Total noninterest income			8,234				8,551				8,392				26,828				27,974
NONINTEREST EXPENSE
Salaries			12,752				12,936				11,835				38,489				36,486
Employee benefits			1,771				1,984				1,455				6,199				4,549
Occupancy of bank premises			1,979				1,741				1,610				5,780				5,011
Furniture and equipment			668				623				657				1,843				1,883
Data processing			1,631				1,990				1,767				5,274				5,176
Marketing and customer relations			880				1,205				883				2,936				2,291
Amortization of intangible assets			243				245				252				733				799
FDIC insurance			302				298				279				888				763
Loan collection and servicing			336				278				400				771				1,098
Foreclosed assets			97				31				242				260				704
Other noninterest expense			3,339				2,511				2,787				8,824				8,105
Total noninterest expense			23,998				23,842				22,167				71,997				66,865
INCOME BEFORE INCOME TAX EXPENSE			21,240				18,937				18,607				58,575				57,887
INCOME TAX EXPENSE			5,613				4,852				4,892				15,259				15,210
NET INCOME		$	15,627			$	14,085			$	13,715			$	43,316			$	42,677
EARNINGS PER SHARE - BASIC		$	0.54			$	0.49			$	0.50			$	1.50			$	1.56
EARNINGS PER SHARE - DILUTED		$	0.54			$	0.49			$	0.50			$	1.49			$	1.56
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING			28,787,662				28,891,202				27,340,926				28,887,757				27,377,809

HBT Financial, Inc.Unaudited Consolidated Financial SummaryConsolidated Balance Sheets

		September 30,				June 30,				September 30,
		2022				2022				2021
		(dollars in thousands)
ASSETS
Cash and due from banks		$	22,169			$	25,478			$	36,508
Interest-bearing deposits with banks			56,046				134,553				435,421
Cash and cash equivalents			78,215				160,031				471,929
Debt securities available-for-sale, at fair value			853,740				924,706				896,218
Debt securities held-to-maturity			546,694				548,236				318,730
Equity securities with readily determinable fair value			2,996				3,103				3,366
Equity securities with no readily determinable fair value			1,977				1,952				1,867
Restricted stock, at cost			4,050				2,813				2,739
Loans held for sale			2,297				5,312				8,582
Loans, before allowance for loan losses			2,579,928				2,451,826				2,147,812
Allowance for loan losses			(25,060	)			(24,734	)			(24,861	)
Loans, net of allowance for loan losses			2,554,868				2,427,092				2,122,951
Bank owned life insurance			7,515				7,474				—
Bank premises and equipment, net			50,854				51,433				49,337
Bank premises held for sale			281				319				1,462
Foreclosed assets			2,637				2,891				7,315
Goodwill			29,322				29,322				23,620
Core deposit intangible assets, net			1,210				1,453				1,999
Mortgage servicing rights, at fair value			10,440				10,089				7,359
Investments in unconsolidated subsidiaries			1,165				1,165				1,165
Accrued interest receivable			16,881				14,263				13,376
Other assets			48,182				32,324				16,211
Total assets		$	4,213,324			$	4,223,978			$	3,948,226
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing		$	1,017,710			$	1,028,790			$	1,003,723
Interest-bearing			2,625,733				2,673,196				2,415,833
Total deposits			3,643,443				3,701,986				3,419,556
Securities sold under agreements to repurchase			48,130				51,091				47,957
Federal Home Loan Bank advances			60,000				—				—
Subordinated notes			39,376				39,356				39,297
Junior subordinated debentures issued to capital trusts			37,763				37,747				37,698
Other liabilities			25,539				19,989				24,897
Total liabilities			3,854,251				3,850,169				3,569,405
Stockholders' Equity
Common stock			293				293				275
Surplus			222,436				222,087				191,413
Retained earnings			223,495				212,506				184,919
Accumulated other comprehensive income (loss)			(77,462	)			(52,820	)			4,537
Treasury stock at cost			(9,689	)			(8,257	)			(2,323	)
Total stockholders’ equity			359,073				373,809				378,821
Total liabilities and stockholders’ equity		$	4,213,324			$	4,223,978			$	3,948,226
SHARE INFORMATION
Shares of common stock outstanding			28,752,626				28,831,197				27,334,428

HBT Financial, Inc.Unaudited Consolidated Financial Summary

		September 30,			June 30,			September 30,
		2022			2022			2021
		(dollars in thousands)
LOANS
Commercial and industrial		$	240,671		$	249,839		$	261,763
Agricultural and farmland			245,234			230,370			229,718
Commercial real estate - owner occupied			226,524			228,997			203,096
Commercial real estate - non-owner occupied			718,089			656,093			579,860
Multi-family			260,630			269,452			215,245
Construction and land development			364,290			332,041			232,291
One-to-four family residential			328,667			325,047			294,612
Municipal, consumer, and other			195,823			159,987			131,227
Loans, before allowance for loan losses		$	2,579,928		$	2,451,826		$	2,147,812
PPP LOANS (included above)
Commercial and industrial		$	65		$	2,823		$	55,374
Agricultural and farmland			—			9			3,462
Municipal, consumer, and other			—			—			985
Total PPP Loans		$	65		$	2,832		$	59,821

		September 30,			June 30,			September 30,
		2022			2022			2021
		(dollars in thousands)
DEPOSITS
Noninterest-bearing		$	1,017,710		$	1,028,790		$	1,003,723
Interest-bearing demand			1,131,284			1,162,292			1,013,678
Money market			584,202			581,058			519,343
Savings			641,139			654,953			611,050
Time			269,108			274,893			271,762
Total deposits		$	3,643,443		$	3,701,986		$	3,419,556

HBT Financial, Inc.Unaudited Consolidated Financial Summary

		Three Months Ended
		September 30, 2022									June 30, 2022									September 30, 2021
		Average									Average									Average
		Balance				Interest			Yield/Cost*		Balance				Interest			Yield/Cost*		Balance				Interest			Yield/Cost*
		(dollars in thousands)
ASSETS
Loans		$	2,481,920			$	30,697		4.91	%	$	2,467,851			$	28,522		4.64	%	$	2,135,476			$	26,176		4.86	%
Securities			1,470,092				7,842		2.12			1,422,096				6,801		1.92			1,180,513				5,735		1.93
Deposits with banks			105,030				458		1.73			240,692				420		0.70			513,158				190		0.15
Other			2,936				17		2.25			2,809				14		2.07			2,739				14		2.00
Total interest-earning assets			4,059,978			$	39,014		3.81	%		4,133,448			$	35,757		3.47	%		3,831,886			$	32,115		3.33	%
Allowance for loan losses			(24,717	)								(24,579	)								(26,470	)
Noninterest-earning assets			173,461									177,433									159,635
Total assets		$	4,208,722								$	4,286,302								$	3,965,051
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand		$	1,137,072			$	144		0.05	%	$	1,159,077			$	144		0.05	%	$	1,020,216			$	129		0.05	%
Money market			577,388				203		0.14			582,016				110		0.08			510,183				96		0.07
Savings			649,752				53		0.03			661,661				52		0.03			608,436				48		0.03
Time			271,870				187		0.27			284,880				200		0.28			275,224				291		0.42
Total interest-bearing deposits			2,636,082				587		0.09			2,687,634				506		0.08			2,414,059				564		0.09
Securities sold under agreements to repurchase			50,427				9		0.07			51,057				8		0.07			49,923				8		0.06
Borrowings			11,967				85		2.80			440				1		1.34			326				1		0.46
Subordinated notes			39,365				470		4.73			39,346				469		4.79			39,285				470		4.74
Junior subordinated debentures issued to capital trusts			37,755				473		4.97			37,738				400		4.26			37,688				357		3.76
Total interest-bearing liabilities			2,775,596			$	1,624		0.23	%		2,816,215			$	1,384		0.20	%		2,541,281			$	1,400		0.22	%
Noninterest-bearing deposits			1,031,407									1,072,883									1,016,384
Noninterest-bearing liabilities			20,736									18,673									26,523
Total liabilities			3,827,739									3,907,771									3,584,188
Stockholders' Equity			380,983									378,531									380,863
Total liabilities and stockholders’ equity		$	4,208,722								$	4,286,302								$	3,965,051
Net interest income/Net interest margin (1)						$	37,390		3.65	%					$	34,373		3.34	%					$	30,715		3.18	%
Tax-equivalent adjustment (2)							674		0.07							598		0.05							508		0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3)						$	38,064		3.72	%					$	34,971		3.39	%					$	31,223		3.23	%
Net interest rate spread (4)									3.58	%								3.27	%								3.11	%
Net interest-earning assets (5)		$	1,284,382								$	1,317,233								$	1,290,605
Ratio of interest-earning assets to interest-bearing liabilities			1.46									1.47									1.51
Cost of total deposits									0.06	%								0.05	%								0.07	%

* 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, 2022									September 30, 2021
		Average									Average
		Balance				Interest			Yield/Cost*		Balance				Interest			Yield/Cost*
		(dollars in thousands)
ASSETS
Loans		$	2,485,501			$	86,687		4.66	%	$	2,217,463			$	77,738		4.69	%
Securities			1,405,245				20,332		1.93			1,102,808				15,706		1.90
Deposits with banks			237,646				1,037		0.58			432,971				385		0.12
Other			2,829				50		2.36			2,655				39		1.95
Total interest-earning assets			4,131,221			$	108,106		3.50	%		3,755,897			$	93,868		3.34	%
Allowance for loan losses			(24,467	)								(29,069	)
Noninterest-earning assets			172,243									157,287
Total assets		$	4,278,997								$	3,884,115
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand		$	1,146,635			$	430		0.05	%	$	1,012,557			$	373		0.05	%
Money market			585,815				434		0.10			498,441				279		0.07
Savings			653,659				155		0.03			584,226				135		0.03
Time			289,000				643		0.30			286,685				1,034		0.48
Total interest-bearing deposits			2,675,109				1,662		0.08			2,381,909				1,821		0.10
Securities sold under agreements to repurchase			51,503				26		0.07			47,827				23		0.06
Borrowings			4,344				87		2.67			421				2		0.43
Subordinated notes			39,345				1,409		4.79			39,265				1,409		4.80
Junior subordinated debentures issued to capital trusts			37,738				1,231		4.36			37,671				1,069		3.79
Total interest-bearing liabilities			2,808,039			$	4,415		0.21	%		2,507,093			$	4,324		0.23	%
Noninterest-bearing deposits			1,060,566									976,884
Noninterest-bearing liabilities			21,883									30,205
Total liabilities			3,890,488									3,514,182
Stockholders' Equity			388,509									369,933
Total liabilities and stockholders’ equity		$	4,278,997									3,884,115
Net interest income/Net interest margin (1)						$	103,691		3.36	%					$	89,544		3.19	%
Tax-equivalent adjustment (2)							1,801		0.05							1,514		0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3)						$	105,492		3.41	%					$	91,058		3.24	%
Net interest rate spread (4)									3.29	%								3.11	%
Net interest-earning assets (5)		$	1,323,182								$	1,248,804
Ratio of interest-earning assets to interest-bearing liabilities			1.47									1.50
Cost of total deposits									0.06	%								0.07	%

* 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

		September 30,				June 30,				September 30,
		2022				2022				2021
		(dollars in thousands)
NONPERFORMING ASSETS
Nonaccrual		$	3,206			$	3,248			$	5,489
Past due 90 days or more, still accruing (1)			—				182				39
Total nonperforming loans			3,206				3,430				5,528
Foreclosed assets			2,637				2,891				7,315
Total nonperforming assets		$	5,843			$	6,321			$	12,843
Allowance for loan losses		$	25,060			$	24,734			$	24,861
Loans, before allowance for loan losses			2,579,928				2,451,826				2,147,812
CREDIT QUALITY RATIOS
Allowance for loan losses to loans, before allowance for loan losses			0.97	%			1.01	%			1.16	%
Allowance for loan losses to nonaccrual loans			781.66				761.51				452.92
Allowance for loan losses to nonperforming loans			781.66				721.11				449.73
Nonaccrual loans to loans, before allowance for loan losses			0.12				0.13				0.26
Nonperforming loans to loans, before allowance for loan losses			0.12				0.14				0.26
Nonperforming assets to total assets			0.14				0.15				0.33
Nonperforming assets to loans, before allowance for loan losses, and foreclosed assets			0.23				0.26				0.60

(1) Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $22 thousand, $23 thousand, and $27 thousand as of September 30, 2022, June 30, 2022 and September 30, 2021, respectively.

		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
		2022				2022				2021				2022				2021
ALLOWANCE FOR LOAN LOSSES		(dollars in thousands)
Beginning balance		$	24,734			$	24,508			$	26,507			$	23,936			$	31,838
Provision			386				145				(1,667	)			(53	)			(7,234	)
Charge-offs			(222	)			(159	)			(278	)			(515	)			(875	)
Recoveries			162				240				299				1,692				1,132
Ending balance		$	25,060			$	24,734			$	24,861			$	25,060			$	24,861
Net charge-offs (recoveries)		$	60			$	(81	)		$	(21	)		$	(1,177	)		$	(257	)
Average loans, before allowance for loan losses			2,481,920				2,467,851				2,135,476				2,485,501				2,217,463
Net charge-offs (recoveries) to average loans, before allowance for loan losses *			0.01		%		(0.01	)	%		—		%		(0.06	)	%		(0.02	)	%

* Annualized measure.

HBT Financial, Inc.Unaudited Consolidated Financial Summary

		As of or for the Three Months Ended									Nine Months Ended
		September 30,			June 30,			September 30,			September 30,
		2022			2022			2021			2022			2021
		(dollars in thousands, except per share data)
EARNINGS AND PER SHARE INFORMATION
Net income		$	15,627		$	14,085		$	13,715		$	43,316		$	42,677
Earnings per share - Basic			0.54			0.49			0.50			1.50			1.56
Earnings per share - Diluted			0.54			0.49			0.50			1.49			1.56
Adjusted net income (1)		$	15,856		$	13,836		$	14,479		$	41,919		$	42,680
Adjusted earnings per share - Basic (1)			0.55			0.48			0.53			1.45			1.56
Adjusted earnings per share - Diluted (1)			0.55			0.48			0.53			1.45			1.56
Book value per share		$	12.49		$	12.97		$	13.86
Tangible book value per share (1)			11.43			11.90			12.92
Shares of common stock outstanding			28,752,626			28,831,197			27,334,428
Weighted average shares of common stock outstanding			28,787,662			28,891,202			27,340,926			28,887,757			27,377,809
SUMMARY RATIOS
Net interest margin *			3.65	%		3.34	%		3.18	%		3.36	%		3.19	%
Net interest margin (tax equivalent basis) * (1)(2)			3.72			3.39			3.23			3.41			3.24
Efficiency ratio			52.07	%		54.97	%		56.04	%		54.60	%		56.22	%
Efficiency ratio (tax equivalent basis) (1)(2)			51.31			54.22			55.32			53.86			55.50
Loan to deposit ratio			70.81	%		66.23	%		62.81	%
Return on average assets *			1.47	%		1.32	%		1.37	%		1.35	%		1.47	%
Return on average stockholders' equity *			16.27			14.92			14.29			14.91			15.42
Return on average tangible common equity * (1)			17.70			16.25			15.32			16.20			16.59
Adjusted return on average assets * (1)			1.49	%		1.29	%		1.45	%		1.31	%		1.47	%
Adjusted return on average stockholders' equity * (1)			16.51			14.66			15.08			14.43			15.43
Adjusted return on average tangible common equity * (1)			17.96			15.96			16.18			15.67			16.59

* 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												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
		2022				2022				2021				2022				2021
		(dollars in thousands)
Net income		$	15,627			$	14,085			$	13,715			$	43,316			$	42,677
Adjustments:
Acquisition expenses			(462	)			—				(380	)			(462	)			(537	)
Branch closure expenses			—				—				(644	)			—				(748	)
Gains (losses) on sales of closed branch premises			(38	)			(18	)			—				141				—
Mortgage servicing rights fair value adjustment			351				366				40				2,446				1,425
Total adjustments			(149	)			348				(984	)			2,125				140
Tax effect of adjustments			(80	)			(99	)			220				(728	)			(143	)
Less adjustments, after tax effect			(229	)			249				(764	)			1,397				(3	)
Adjusted net income		$	15,856			$	13,836			$	14,479			$	41,919			$	42,680
Average assets		$	4,208,722			$	4,286,302			$	3,965,051			$	4,278,997			$	3,884,115
Return on average assets *			1.47		%		1.32		%		1.37		%		1.35		%		1.47		%
Adjusted return on average assets *			1.49				1.29				1.45				1.31				1.47

* Annualized measure.

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

		Three Months Ended												Nine Months Ended
		September 30,				June 30,				September 30,				September 30,
		2022				2022				2021				2022				2021
		(dollars in thousands, except per share data)
Numerator:
Net income		$	15,627			$	14,085			$	13,715			$	43,316			$	42,677
Earnings allocated to participating securities (1)			(17	)			(17	)			(25	)			(51	)			(81	)
Numerator for earnings per share - basic and diluted		$	15,610			$	14,068			$	13,690			$	43,265			$	42,596
Adjusted net income		$	15,856			$	13,836			$	14,479			$	41,919			$	42,680
Earnings allocated to participating securities (1)			(17	)			(17	)			(27	)			(49	)			(81	)
Numerator for adjusted earnings per share - basic and diluted		$	15,839			$	13,819			$	14,452			$	41,870			$	42,599
Denominator:
Weighted average common shares outstanding			28,787,662				28,891,202				27,340,926				28,887,757				27,377,809
Dilutive effect of outstanding restricted stock units			72,643				53,674				13,921				56,761				11,412
Weighted average common shares outstanding, including all dilutive potential shares			28,860,305				28,944,876				27,354,847				28,944,518				27,389,221
Earnings per share - Basic		$	0.54			$	0.49			$	0.50			$	1.50			$	1.56
Earnings per share - Diluted		$	0.54			$	0.49			$	0.50			$	1.49			$	1.56
Adjusted earnings per share - Basic		$	0.55			$	0.48			$	0.53			$	1.45			$	1.56
Adjusted earnings per share - Diluted		$	0.55			$	0.48			$	0.53			$	1.45			$	1.56

(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,			June 30,			September 30,			September 30,
		2022			2022			2021			2022			2021
		(dollars in thousands)
Net interest income (tax equivalent basis)
Net interest income		$	37,390		$	34,373		$	30,715		$	103,691		$	89,544
Tax-equivalent adjustment (1)			674			598			508			1,801			1,514
Net interest income (tax equivalent basis) (1)		$	38,064		$	34,971		$	31,223		$	105,492		$	91,058
Net interest margin (tax equivalent basis)
Net interest margin *			3.65	%		3.34	%		3.18	%		3.36	%		3.19	%
Tax-equivalent adjustment * (1)			0.07			0.05			0.05			0.05			0.05
Net interest margin (tax equivalent basis) * (1)			3.72	%		3.39	%		3.23	%		3.41	%		3.24	%
Average interest-earning assets		$	4,059,978		$	4,133,448		$	3,831,886		$	4,131,221		$	3,755,897

* 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,			June 30,			September 30,			September 30,
		2022			2022			2021			2022			2021
		(dollars in thousands)
Efficiency ratio (tax equivalent basis)
Total noninterest expense		$	23,998		$	23,842		$	22,167		$	71,997		$	66,865
Less: amortization of intangible assets			243			245			252			733			799
Adjusted noninterest expense		$	23,755		$	23,597		$	21,915		$	71,264		$	66,066
Net interest income		$	37,390		$	34,373		$	30,715		$	103,691		$	89,544
Total noninterest income			8,234			8,551			8,392			26,828			27,974
Operating revenue			45,624			42,924			39,107			130,519			117,518
Tax-equivalent adjustment (1)			674			598			508			1,801			1,514
Operating revenue (tax equivalent basis) (1)		$	46,298		$	43,522		$	39,615		$	132,320		$	119,032
Efficiency ratio			52.07	%		54.97	%		56.04	%		54.60	%		56.22	%
Efficiency ratio (tax equivalent basis) (1)			51.31			54.22			55.32			53.86			55.50

(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

		September 30,			June 30,			September 30,
		2022			2022			2021
		(dollars in thousands, except per share data)
Tangible common equity
Total stockholders' equity		$	359,073		$	373,809		$	378,821
Less: Goodwill			29,322			29,322			23,620
Less: Core deposit intangible assets, net			1,210			1,453			1,999
Tangible common equity		$	328,541		$	343,034		$	353,202
Tangible assets
Total assets		$	4,213,324		$	4,223,978		$	3,948,226
Less: Goodwill			29,322			29,322			23,620
Less: Core deposit intangible assets, net			1,210			1,453			1,999
Tangible assets		$	4,182,792		$	4,193,203		$	3,922,607
Total stockholders' equity to total assets			8.52	%		8.85	%		9.59	%
Tangible common equity to tangible assets			7.85			8.18			9.00
Shares of common stock outstanding			28,752,626			28,831,197			27,334,428
Book value per share		$	12.49		$	12.97		$	13.86
Tangible book value per share			11.43			11.90			12.92

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,			June 30,			September 30,			September 30,
		2022			2022			2021			2022			2021
		(dollars in thousands)
Average tangible common equity
Total stockholders' equity		$	380,983		$	378,531		$	380,863		$	388,509		$	369,933
Less: Goodwill			29,322			29,322			23,620			29,322			23,620
Less: Core deposit intangible assets, net			1,356			1,597			2,152			1,597			2,414
Average tangible common equity		$	350,305		$	347,612		$	355,091		$	357,590		$	343,899
Net income		$	15,627		$	14,085		$	13,715		$	43,316		$	42,677
Adjusted net income			15,856			13,836			14,479			41,919			42,680
Return on average stockholders' equity *			16.27	%		14.92	%		14.29	%		14.91	%		15.42	%
Return on average tangible common equity *			17.70			16.25			15.32			16.20			16.59
Adjusted return on average stockholders' equity *			16.51	%		14.66	%		15.08	%		14.43	%		15.43	%
Adjusted return on average tangible common equity *			17.96			15.96			16.18			15.67			16.59

* Annualized measure.