HBT Financial, Inc. Announces Fourth Quarter 2021 Financial Results

1/27, 1:00 PM (Source: GlobeNewswire)

Fourth Quarter Highlights

  • Net income of $13.6 million, or $0.47 per diluted share; return on average assets (ROAA) of 1.26%; return on average stockholders' equity (ROAE) of 13.15%; and return on average tangible common equity (ROATCE)(1) of 14.24%
  • Adjusted net income(1) of $14.2 million; or $0.49 per diluted share; adjusted ROAA(1) of 1.32%; adjusted ROAE(1) of 13.70%; and adjusted ROATCE(1) of 14.83%

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

BLOOMINGTON, Ill., Jan. 27, 2022 (GLOBE NEWSWIRE) -- HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $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
 2021Requirements
Total capital to risk-weighted assets16.88%  10.00%
Tier 1 capital to risk-weighted assets14.66%  8.00%
Common equity tier 1 capital ratio13.37%  6.50%
Tier 1 leverage ratio9.84%  5.00%
Total stockholders' equity to total assets9.55%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 Keating
HBTIR@hbtbank.com
(310) 622-8230

HBT Financial, Inc.
Consolidated Financial Summary
Consolidated 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 Summary
Consolidated 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.


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