HBT FINANCIAL : ANNOUNCES FOURTH QUARTER 2021 FINANCIAL RESULTS - Form 8-K

Published: 2022-01-27 07:09:19 ET HBT

HBT FINANCIAL, INC. ANNOUNCES

FOURTH QUARTER 2021 FINANCIAL RESULTS

Quarterly Cash Dividend Increased to $0.16 per Share

Fourth Quarter Highlights

(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, IL, January 27, 2022 - 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."

HBT Financial, Inc.

Page 2 of 15

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.

HBT Financial, Inc.

Page 3 of 15

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.

HBT Financial, Inc.

Page 4 of 15

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.

HBT Financial, Inc.

Page 5 of 15

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

[email protected]

(310) 622-8230

HBT Financial, Inc.

Page 6 of 15

HBT Financial, Inc.

Consolidated Financial Summary

Consolidated Statements of Income

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

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

527

938

Other interest and dividend income

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

Borrowings

Subordinated notes

470

469

1,879

616

Junior subordinated debentures issued to capital trusts

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

363

1,690

(2,584)

Gains on sale of mortgage loans

927

1,257

2,980

5,846

8,835

Gains (losses) on securities

107

Gains (losses) on foreclosed assets

184

(14)

310

142

Gains (losses) on other assets

(4)

(672)

(723)

(71)

Income on bank owned life insurance

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.

Page 7 of 15

HBT Financial, Inc.

Consolidated Financial Summary

Consolidated Balance Sheets

December 31,

September 30,

December 31,

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

2,498

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

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

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

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.

Page 8 of 15

HBT Financial, Inc.

Consolidated Financial Summary

December 31,

September 30,

December 31,

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

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.

Page 9 of 15

HBT Financial, Inc.

Consolidated Financial Summary

Three Months Ended

December 31, 2021

September 30, 2021

December 31, 2020

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

0.09

Other

4,821

2.10

2,739

2.00

2,498

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

0.07

475,183

0.07

Savings

630,489

0.03

608,436

0.03

506,381

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

0.08

49,923

0.06

51,297

0.06

Borrowings

5,309

0.57

326

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

0.09

* Annualized measure.

HBT Financial, Inc.

Page 10 of 15

HBT Financial, Inc.

Consolidated Financial Summary

Year Ended

December 31, 2021

December 31, 2020

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

2.01

2,479

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

0.07

49,714

0.10

Borrowings

1,653

0.54

1,080

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.

HBT Financial, Inc.

Page 11 of 15

HBT Financial, Inc.

Consolidated Financial Summary

December 31,

September 30,

December 31,

2021

2020

(dollars in thousands)

NONPERFORMING ASSETS

Nonaccrual

2,763

5,489

9,939

Past due 90 days or more, still accruing (1)

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

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

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)

(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.

Page 12 of 15

HBT Financial, Inc.

Consolidated Financial Summary

As of or for the Three Months Ended

Year Ended

December 31,

September 30,

December 31,

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.

HBT Financial, Inc.

Page 13 of 15

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,

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

363

1,690

(2,584)

Total adjustments

(614)

(984)

363

(474)

(4,041)

Tax effect of adjustments

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,

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

HBT Financial, Inc.

Page 14 of 15

Reconciliation of Non-GAAP Financial Measures -

Net Interest Margin (Tax Equivalent Basis)

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

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

0.06

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.

Reconciliation of Non-GAAP Financial Measures -

Efficiency Ratio (Tax Equivalent Basis)

Three Months Ended

Year Ended

December 31,

September 30,

December 31,

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

HBT Financial, Inc.

Page 15 of 15

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

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

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

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,

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

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.

Disclaimer

HBT Financial Inc. published this content on 27 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 January 2022 12:08:05 UTC.