HBT Financial, Inc. Announces First Quarter 2023 Financial Results
HBT Financial, Inc. reported a net income of $9.2 million ($0.30 per diluted share) for Q1 2023, a decline from $13.1 million in Q4 2022 and $13.6 million in Q1 2022. Adjusted net income rose to $19.9 million ($0.64 per diluted share), up from $13.9 million in the previous quarter. The company completed the acquisition of Town and Country Financial Corporation, adding $906 million in assets and $720 million in deposits. Net interest income increased by 11% from Q4 2022 to $46.8 million, predominantly due to higher yields on interest-earning assets. Non-performing assets stood at 0.20% of total assets, illustrating strong asset quality. Noninterest income decreased by 25.9% year-over-year. The company also experienced a 48.7% rise in noninterest expenses, primarily due to acquisition costs.
- Adjusted net income of $19.9 million, or $0.64 per diluted share, increased from $13.9 million in Q4 2022.
- Net interest income rose 11% to $46.8 million, bolstered by the Town and Country merger.
- Completion of Town and Country acquisition enhances market presence with $906 million in new assets.
- Net income decreased to $9.2 million in Q1 2023 from $13.1 million in Q4 2022.
- Noninterest income fell 25.9% compared to Q1 2022, largely due to realized losses on sold securities.
- Noninterest expenses increased 48.7% year-over-year due to acquisition-related costs.
First Quarter Highlights
- Net income of
$9.2 million , or$0.30 per diluted share; return on average assets (ROAA) of0.78% ; return on average stockholders' equity (ROAE) of8.84% ; and return on average tangible common equity (ROATCE)(1) of10.45% - Adjusted net income(1) of
$19.9 million ; or$0.64 per diluted share; adjusted ROAA(1) of1.69% ; adjusted ROAE(1) of19.08% ; and adjusted ROATCE(1) of22.55% - Completed merger with Town and Country Financial Corporation (“Town and Country”) on February 1, 2023
- Asset quality remained strong with nonperforming assets to total assets of
0.20% - Net interest margin expanded 10 basis points to
4.20% from the fourth quarter of 2022
_______________________
(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., April 26, 2023 (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
Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, “It was a strong start to 2023 for HBT. We posted excellent financial results which were underpinned by two strengths that we have been focused on for many years. Asset quality remains strong with low levels of problem loans and net recoveries recorded during the quarter. In addition, our deposit base which is very granular and nearly
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
Acquisition of Town and Country
On February 1, 2023, HBT Financial completed its previously announced acquisition of Town and Country, the holding company for Town and Country Bank. The acquisition further enhances HBT Financial’s footprint in Central Illinois and expands our footprint into metro-east St. Louis. After considering business combination accounting adjustments, Town and Country added total assets of
Cash consideration of
Acquisition-related expenses consisted of the following during the first quarter of 2023 and fourth quarter of 2022:
| Three Months Ended | ||||||||
| March 31, 2023 | December 31, 2022 | |||||||
| (dollars in thousands) | ||||||||
| Provision for credit losses | $ | 5,924 | $ | — | ||||
| Salaries | 3,518 | — | ||||||
| Data processing | 1,855 | 304 | ||||||
| Marketing and customer relations | 14 | — | ||||||
| Legal fees and other noninterest expense | 1,753 | 326 | ||||||
| Total acquisition-related expenses | $ | 13,064 | $ | 630 | ||||
Net Interest Income and Net Interest Margin
Net interest income for the first quarter of 2023 was
Relative to the first quarter of 2022, net interest income increased
Net interest margin for the first quarter of 2023 was
Relative to the first quarter of 2022, net interest margin increased from
Noninterest Income
Noninterest income for the first quarter of 2023 was
Relative to the first quarter of 2022, noninterest income decreased
Noninterest Expense
Noninterest expense for the first quarter of 2023 was
Relative to the first quarter of 2022, noninterest expense increased
Loan Portfolio
Total loans outstanding, before allowance for credit losses, were
Deposits
Total deposits were
Adoption of CECL Methodology
On January 1, 2023, the Company adopted ASU 2016-13 (Topic 326), Measurement of Credit Losses on Financial Instruments, commonly referred to as the Current Expected Credit Loss (“CECL”) standard. Upon adoption of the CECL standard, a cumulative effect adjustment was recognized resulting in an after-tax decrease to retained earnings of
Additionally, we also adopted the CECL standard using the prospective transition approach for purchased credit deteriorated (“PCD”) financial assets that were previously classified as purchased credit impaired (“PCI”) and accounted for under ASC 310-30. In accordance with the CECL standard, we did not reassess whether PCI assets met the criteria of PCD assets as of the date of adoption. On January 1, 2023, the amortized cost basis of the PCD assets were adjusted to reflect the addition of
Asset Quality
Nonperforming loans totaled
The Company recorded a provision for credit losses of
The Company had net recoveries of
The Company’s allowance for credit losses was
Stock Repurchase Program
During the first quarter of 2023, the Company repurchased 79,463 shares of its common stock at a weighted average price of
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 Illinois and Eastern Iowa through 68 full-service branches. As of March 31, 2023, HBT had total assets of
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 (including the Russian invasion of Ukraine), 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 (including the Company’s adoption of CECL methodology); (iv) changes in state and federal laws, regulations and governmental policies concerning the Company’s general business and any changes in response to the recent failures of other banks; (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, including from non-bank competitors such as credit unions and “fintech” companies, 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) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio, large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xix) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. 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.
CONTACT:
Peter Chapman
HBTIR@hbtbank.com
(888) 897-2276
HBT Financial, Inc. Unaudited Consolidated Financial Summary | ||||||||||||
| As of or for the Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| (dollars in thousands, except per share data) | ||||||||||||
| Interest and dividend income | $ | 51,779 | $ | 44,948 | $ | 33,335 | ||||||
| Interest expense | 4,942 | 2,765 | 1,407 | |||||||||
| Net interest income | 46,837 | 42,183 | 31,928 | |||||||||
| Provision for credit losses | 6,210 | (653 | ) | (584 | ) | |||||||
| Net interest income after provision for credit losses | 40,627 | 42,836 | 32,512 | |||||||||
| Noninterest income | 7,437 | 7,889 | 10,043 | |||||||||
| Noninterest expense | 35,933 | 33,110 | 24,157 | |||||||||
| Income before income tax expense | 12,131 | 17,615 | 18,398 | |||||||||
| Income tax expense | 2,923 | 4,475 | 4,794 | |||||||||
| Net income | $ | 9,208 | $ | 13,140 | $ | 13,604 | ||||||
| Earnings per share - Basic | $ | 0.30 | $ | 0.46 | $ | 0.47 | ||||||
| Earnings per share - Diluted | 0.30 | 0.46 | 0.47 | |||||||||
| Adjusted net income (1) | $ | 19,859 | $ | 13,886 | $ | 12,227 | ||||||
| Adjusted earnings per share - Basic (1) | 0.64 | 0.48 | 0.42 | |||||||||
| Adjusted earnings per share - Diluted (1) | 0.64 | 0.48 | 0.42 | |||||||||
| Book value per share | $ | 14.02 | $ | 12.99 | $ | 13.23 | ||||||
| Tangible book value per share (1) | 11.45 | 11.94 | 12.16 | |||||||||
| Shares of common stock outstanding | 32,095,370 | 28,752,626 | 28,967,943 | |||||||||
| Weighted average shares of common stock outstanding | 30,977,204 | 28,752,626 | 28,986,593 | |||||||||
| SUMMARY RATIOS | ||||||||||||
| Net interest margin * | 4.20 | % | 4.10 | % | 3.08 | % | ||||||
| Net interest margin (tax equivalent basis) * (1) (2) | 4.26 | 4.17 | 3.13 | |||||||||
| Efficiency ratio | 65.27 | % | 65.85 | % | 56.97 | % | ||||||
| Efficiency ratio (tax equivalent basis) (1) (2) | 64.43 | 64.94 | 56.26 | |||||||||
| Loan to deposit ratio | 74.13 | % | 73.05 | % | 65.19 | % | ||||||
| Return on average assets * | 0.78 | % | 1.23 | % | 1.27 | % | ||||||
| Return on average stockholders' equity * | 8.84 | 14.17 | 13.58 | |||||||||
| Return on average tangible common equity * (1) | 10.45 | 15.45 | 14.71 | |||||||||
| Adjusted return on average assets * (1) | 1.69 | % | 1.30 | % | 1.14 | % | ||||||
| Adjusted return on average stockholders' equity * (1) | 19.08 | 14.98 | 12.20 | |||||||||
| Adjusted return on average tangible common equity * (1) | 22.55 | 16.33 | 13.22 | |||||||||
| CAPITAL | ||||||||||||
| Total capital to risk-weighted assets | 15.11 | % | 16.27 | % | 16.86 | % | ||||||
| Tier 1 capital to risk-weighted assets | 13.16 | 14.23 | 14.66 | |||||||||
| Common equity tier 1 capital ratio | 11.79 | 13.07 | 13.40 | |||||||||
| Tier 1 leverage ratio | 10.29 | 10.48 | 9.83 | |||||||||
| Total stockholders' equity to total assets | 8.98 | 8.72 | 8.81 | |||||||||
| Tangible common equity to tangible assets (1) | 7.45 | 8.06 | 8.16 | |||||||||
| ASSET QUALITY | ||||||||||||
| Net charge-offs (recoveries) to average loans, before allowance for credit losses | (0.02 | )% | (0.14 | )% | (0.19 | )% | ||||||
| Allowance for credit losses to loans, before allowance for credit losses | 1.21 | 0.97 | 0.99 | |||||||||
| Nonperforming loans to loans, before allowance for credit losses | 0.20 | 0.08 | 0.10 | |||||||||
| Nonperforming assets to total assets | 0.20 | 0.12 | 0.13 | |||||||||
* 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 | ||||||||||||
| HBT Financial, Inc. Unaudited Consolidated Financial Summary Consolidated Statements of Income | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| INTEREST AND DIVIDEND INCOME | (dollars in thousands, except per share data) | |||||||||||
| Loans, including fees: | ||||||||||||
| Taxable | $ | 42,159 | $ | 35,839 | $ | 26,806 | ||||||
| Federally tax exempt | 952 | 952 | 662 | |||||||||
| Securities: | ||||||||||||
| Taxable | 6,616 | 6,421 | 4,649 | |||||||||
| Federally tax exempt | 1,197 | 1,184 | 1,040 | |||||||||
| Interest-bearing deposits in bank | 739 | 504 | 159 | |||||||||
| Other interest and dividend income | 116 | 48 | 19 | |||||||||
| Total interest and dividend income | 51,779 | 44,948 | 33,335 | |||||||||
| INTEREST EXPENSE | ||||||||||||
| Deposits | 2,374 | 849 | 569 | |||||||||
| Securities sold under agreements to repurchase | 38 | 10 | 9 | |||||||||
| Borrowings | 1,297 | 880 | 1 | |||||||||
| Subordinated notes | 470 | 470 | 470 | |||||||||
| Junior subordinated debentures issued to capital trusts | 763 | 556 | 358 | |||||||||
| Total interest expense | 4,942 | 2,765 | 1,407 | |||||||||
| Net interest income | 46,837 | 42,183 | 31,928 | |||||||||
| PROVISION FOR CREDIT LOSSES | 6,210 | (653 | ) | (584 | ) | |||||||
| Net interest income after provision for credit losses | 40,627 | 42,836 | 32,512 | |||||||||
| NONINTEREST INCOME | ||||||||||||
| Card income | 2,658 | 2,642 | 2,404 | |||||||||
| Wealth management fees | 2,338 | 2,485 | 2,289 | |||||||||
| Service charges on deposit accounts | 1,871 | 1,701 | 1,652 | |||||||||
| Mortgage servicing | 1,099 | 593 | 658 | |||||||||
| Mortgage servicing rights fair value adjustment | (624 | ) | (293 | ) | 1,729 | |||||||
| Gains on sale of mortgage loans | 276 | 194 | 587 | |||||||||
| Realized gains (losses) on sales of securities | (1,007 | ) | — | — | ||||||||
| Unrealized gains (losses) on equity securities | (22 | ) | 33 | (187 | ) | |||||||
| Gains (losses) on foreclosed assets | (10 | ) | (122 | ) | 40 | |||||||
| Gains (losses) on other assets | — | 17 | 193 | |||||||||
| Income on bank owned life insurance | 115 | 42 | 40 | |||||||||
| Other noninterest income | 743 | 597 | 638 | |||||||||
| Total noninterest income | 7,437 | 7,889 | 10,043 | |||||||||
| NONINTEREST EXPENSE | ||||||||||||
| Salaries | 19,411 | 13,278 | 12,801 | |||||||||
| Employee benefits | 2,335 | 2,126 | 2,444 | |||||||||
| Occupancy of bank premises | 2,102 | 1,893 | 2,060 | |||||||||
| Furniture and equipment | 659 | 633 | 552 | |||||||||
| Data processing | 4,323 | 2,167 | 1,653 | |||||||||
| Marketing and customer relations | 836 | 867 | 851 | |||||||||
| Amortization of intangible assets | 510 | 140 | 245 | |||||||||
| FDIC insurance | 563 | 276 | 288 | |||||||||
| Loan collection and servicing | 278 | 278 | 157 | |||||||||
| Foreclosed assets | 61 | 33 | 132 | |||||||||
| Other noninterest expense | 4,855 | 11,419 | 2,974 | |||||||||
| Total noninterest expense | 35,933 | 33,110 | 24,157 | |||||||||
| INCOME BEFORE INCOME TAX EXPENSE | 12,131 | 17,615 | 18,398 | |||||||||
| INCOME TAX EXPENSE | 2,923 | 4,475 | 4,794 | |||||||||
| NET INCOME | $ | 9,208 | $ | 13,140 | $ | 13,604 | ||||||
| EARNINGS PER SHARE - BASIC | $ | 0.30 | $ | 0.46 | $ | 0.47 | ||||||
| EARNINGS PER SHARE - DILUTED | $ | 0.30 | $ | 0.46 | $ | 0.47 | ||||||
| WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING | 30,977,204 | 28,752,626 | 28,986,593 | |||||||||
| HBT Financial, Inc. Unaudited Consolidated Financial Summary Consolidated Balance Sheets | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| (dollars in thousands) | ||||||||||||
| ASSETS | ||||||||||||
| Cash and due from banks | $ | 35,244 | $ | 18,970 | $ | 30,761 | ||||||
| Interest-bearing deposits with banks | 141,868 | 95,189 | 328,218 | |||||||||
| Cash and cash equivalents | 177,112 | 114,159 | 358,979 | |||||||||
| Interest-bearing time deposits with banks | 249 | — | 487 | |||||||||
| Debt securities available-for-sale, at fair value | 854,622 | 843,524 | 933,922 | |||||||||
| Debt securities held-to-maturity | 536,429 | 541,600 | 438,054 | |||||||||
| Equity securities with readily determinable fair value | 3,145 | 3,029 | 3,256 | |||||||||
| Equity securities with no readily determinable fair value | 1,980 | 1,977 | 1,927 | |||||||||
| Restricted stock, at cost | 4,991 | 7,965 | 2,739 | |||||||||
| Loans held for sale | 5,130 | 615 | 1,777 | |||||||||
| Loans, before allowance for credit losses | 3,195,540 | 2,620,253 | 2,487,785 | |||||||||
| Allowance for credit losses | (38,776 | ) | (25,333 | ) | (24,508 | ) | ||||||
| Loans, net of allowance for credit losses | 3,156,764 | 2,594,920 | 2,463,277 | |||||||||
| Bank owned life insurance | 23,447 | 7,557 | 7,433 | |||||||||
| Bank premises and equipment, net | 65,119 | 50,469 | 52,005 | |||||||||
| Bank premises held for sale | 235 | 235 | 1,081 | |||||||||
| Foreclosed assets | 3,356 | 3,030 | 3,043 | |||||||||
| Goodwill | 59,876 | 29,322 | 29,322 | |||||||||
| Intangible assets, net | 22,842 | 1,070 | 1,698 | |||||||||
| Mortgage servicing rights, at fair value | 19,992 | 10,147 | 9,723 | |||||||||
| Investments in unconsolidated subsidiaries | 1,614 | 1,165 | 1,165 | |||||||||
| Accrued interest receivable | 20,301 | 19,506 | 13,527 | |||||||||
| Other assets | 56,617 | 56,444 | 25,550 | |||||||||
| Total assets | $ | 5,013,821 | $ | 4,286,734 | $ | 4,348,965 | ||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||
| Liabilities | ||||||||||||
| Deposits: | ||||||||||||
| Noninterest-bearing | $ | 1,218,888 | $ | 994,954 | $ | 1,069,231 | ||||||
| Interest-bearing | 3,091,633 | 2,592,070 | 2,746,838 | |||||||||
| Total deposits | 4,310,521 | 3,587,024 | 3,816,069 | |||||||||
| Securities sold under agreements to repurchase | 34,919 | 43,081 | 50,834 | |||||||||
| Federal Home Loan Bank advances | 75,183 | 160,000 | — | |||||||||
| Subordinated notes | 39,415 | 39,395 | 39,336 | |||||||||
| Junior subordinated debentures issued to capital trusts | 52,746 | 37,780 | 37,731 | |||||||||
| Other liabilities | 50,939 | 45,822 | 21,840 | |||||||||
| Total liabilities | 4,563,723 | 3,913,102 | 3,965,810 | |||||||||
| Stockholders' Equity | ||||||||||||
| Common stock | 327 | 293 | 293 | |||||||||
| Surplus | 294,441 | 222,783 | 221,735 | |||||||||
| Retained earnings | 228,782 | 232,004 | 203,076 | |||||||||
| Accumulated other comprehensive income (loss) | (62,175 | ) | (71,759 | ) | (36,100 | ) | ||||||
| Treasury stock at cost | (11,277 | ) | (9,689 | ) | (5,849 | ) | ||||||
| Total stockholders’ equity | 450,098 | 373,632 | 383,155 | |||||||||
| Total liabilities and stockholders’ equity | $ | 5,013,821 | $ | 4,286,734 | $ | 4,348,965 | ||||||
| SHARE INFORMATION | ||||||||||||
| Shares of common stock outstanding | 32,095,370 | 28,752,626 | 28,967,943 | |||||||||
| HBT Financial, Inc. Unaudited Consolidated Financial Summary | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| (dollars in thousands) | ||||||||||||
| LOANS | ||||||||||||
| Commercial and industrial | $ | 333,013 | $ | 266,757 | $ | 291,909 | ||||||
| Commercial real estate - owner occupied | 317,103 | 218,503 | 237,000 | |||||||||
| Commercial real estate - non-owner occupied | 854,024 | 713,202 | 687,617 | |||||||||
| Construction and land development | 389,142 | 360,824 | 320,030 | |||||||||
| Multi-family | 362,672 | 287,865 | 243,447 | |||||||||
| One-to-four family residential | 482,732 | 338,253 | 327,791 | |||||||||
| Agricultural and farmland | 243,357 | 237,746 | 232,528 | |||||||||
| Municipal, consumer, and other | 213,497 | 197,103 | 147,463 | |||||||||
| Loans, before allowance for credit losses | $ | 3,195,540 | $ | 2,620,253 | $ | 2,487,785 | ||||||
| PPP LOANS (included above) | ||||||||||||
| Commercial and industrial | $ | 25 | $ | 28 | $ | 16,184 | ||||||
| Agricultural and farmland | — | — | 392 | |||||||||
| Total PPP Loans | $ | 25 | $ | 28 | $ | 16,576 | ||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| (dollars in thousands) | ||||||||||||
| DEPOSITS | ||||||||||||
| Noninterest-bearing | $ | 1,218,888 | $ | 994,954 | $ | 1,069,231 | ||||||
| Interest-bearing demand | 1,270,454 | 1,139,150 | 1,167,058 | |||||||||
| Money market | 662,088 | 555,425 | 597,464 | |||||||||
| Savings | 738,719 | 634,527 | 687,147 | |||||||||
| Time | 420,372 | 262,968 | 295,169 | |||||||||
| Total deposits | $ | 4,310,521 | $ | 3,587,024 | $ | 3,816,069 | ||||||
| HBT Financial, Inc. Unaudited Consolidated Financial Summary | ||||||||||||||||||||||||||||
| Three Months Ended | ||||||||||||||||||||||||||||
| March 31, 2023 | December 31, 2022 | March 31, 2022 | ||||||||||||||||||||||||||
| Average | Yield/ | Average | Yield/ | Average | Yield/ | |||||||||||||||||||||||
| Balance | Interest | Cost * | Balance | Interest | Cost * | Balance | Interest | Cost * | ||||||||||||||||||||
| (dollars in thousands) | ||||||||||||||||||||||||||||
| ASSETS | ||||||||||||||||||||||||||||
| Loans | $ | 3,012,320 | $ | 43,111 | 5.80 | % | $ | 2,600,746 | $ | 36,791 | 5.61 | % | $ | 2,507,006 | $ | 27,468 | 4.44 | % | ||||||||||
| Securities | 1,411,613 | 7,813 | 2.24 | 1,396,401 | 7,605 | 2.16 | 1,321,918 | 5,689 | 1.75 | |||||||||||||||||||
| Deposits with banks | 92,363 | 739 | 3.24 | 76,507 | 504 | 2.61 | 370,130 | 159 | 0.17 | |||||||||||||||||||
| Other | 7,425 | 116 | 6.33 | 5,607 | 48 | 3.37 | 2,739 | 19 | 2.80 | |||||||||||||||||||
| Total interest-earning assets | 4,523,721 | $ | 51,779 | 4.64 | % | 4,079,261 | $ | 44,948 | 4.37 | % | 4,201,793 | $ | 33,335 | 3.22 | % | |||||||||||||
| Allowance for credit losses | (33,301 | ) | (25,404 | ) | (24,099 | ) | ||||||||||||||||||||||
| Noninterest-earning assets | 274,870 | 188,942 | 165,752 | |||||||||||||||||||||||||
| Total assets | $ | 4,765,290 | $ | 4,242,799 | $ | 4,343,446 | ||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | ||||||||||||||||||||||||||||
| Liabilities | ||||||||||||||||||||||||||||
| Interest-bearing deposits: | ||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 1,230,644 | $ | 458 | 0.15 | % | $ | 1,125,877 | $ | 177 | 0.06 | % | $ | 1,143,829 | $ | 142 | 0.05 | % | ||||||||||
| Money market | 634,608 | 935 | 0.60 | 572,718 | 379 | 0.26 | 598,271 | 121 | 0.08 | |||||||||||||||||||
| Savings | 709,862 | 178 | 0.10 | 640,668 | 53 | 0.03 | 649,563 | 50 | 0.03 | |||||||||||||||||||
| Time | 356,779 | 803 | 0.91 | 266,117 | 240 | 0.36 | 310,675 | 256 | 0.33 | |||||||||||||||||||
| Total interest-bearing deposits | 2,931,893 | 2,374 | 0.33 | 2,605,380 | 849 | 0.13 | 2,702,338 | 569 | 0.09 | |||||||||||||||||||
| Securities sold under agreements to repurchase | 39,619 | 38 | 0.38 | 51,703 | 10 | 0.08 | 53,054 | 9 | 0.07 | |||||||||||||||||||
| Borrowings | 113,896 | 1,297 | 4.62 | 92,120 | 880 | 3.79 | 500 | 1 | 0.71 | |||||||||||||||||||
| Subordinated notes | 39,403 | 470 | 4.83 | 39,384 | 470 | 4.73 | 39,325 | 470 | 4.84 | |||||||||||||||||||
| Junior subordinated debentures issued to capital trusts | 47,586 | 763 | 6.50 | 37,770 | 556 | 5.84 | 37,721 | 358 | 3.85 | |||||||||||||||||||
| Total interest-bearing liabilities | 3,172,397 | $ | 4,942 | 0.63 | % | 2,826,357 | $ | 2,765 | 0.39 | % | 2,832,938 | $ | 1,407 | 0.20 | % | |||||||||||||
| Noninterest-bearing deposits | 1,121,365 | 1,023,355 | 1,077,917 | |||||||||||||||||||||||||
| Noninterest-bearing liabilities | 49,316 | 25,220 | 26,302 | |||||||||||||||||||||||||
| Total liabilities | 4,343,078 | 3,874,932 | 3,937,157 | |||||||||||||||||||||||||
| Stockholders' Equity | 422,212 | 367,867 | 406,289 | |||||||||||||||||||||||||
| Total liabilities and stockholders’ equity | $ | 4,765,290 | $ | 4,242,799 | $ | 4,343,446 | ||||||||||||||||||||||
| Net interest income/Net interest margin (1) | $ | 46,837 | 4.20 | % | $ | 42,183 | 4.10 | % | $ | 31,928 | 3.08 | % | ||||||||||||||||
| Tax-equivalent adjustment (2) | 702 | 0.06 | 698 | 0.07 | 529 | 0.05 | ||||||||||||||||||||||
| Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3) | $ | 47,539 | 4.26 | % | $ | 42,881 | 4.17 | % | $ | 32,457 | 3.13 | % | ||||||||||||||||
| Net interest rate spread (4) | 4.01 | % | 3.98 | % | 3.02 | % | ||||||||||||||||||||||
| Net interest-earning assets (5) | $ | 1,351,324 | $ | 1,252,904 | $ | 1,368,855 | ||||||||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 1.43 | 1.44 | 1.48 | |||||||||||||||||||||||||
| Cost of total deposits | 0.24 | % | 0.09 | % | 0.06 | % | ||||||||||||||||||||||
| Cost of funds | 0.47 | 0.28 | 0.15 | |||||||||||||||||||||||||
* 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 (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 | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| (dollars in thousands) | ||||||||||||
| NONPERFORMING ASSETS | ||||||||||||
| Nonaccrual | $ | 6,508 | $ | 2,155 | $ | 2,461 | ||||||
| Past due 90 days or more, still accruing (1) | 10 | 1 | 8 | |||||||||
| Total nonperforming loans | 6,518 | 2,156 | 2,469 | |||||||||
| Foreclosed assets | 3,356 | 3,030 | 3,043 | |||||||||
| Total nonperforming assets | $ | 9,874 | $ | 5,186 | $ | 5,512 | ||||||
| Allowance for credit losses | $ | 38,776 | $ | 25,333 | $ | 24,508 | ||||||
| Loans, before allowance for credit losses | 3,195,540 | 2,620,253 | 2,487,785 | |||||||||
| CREDIT QUALITY RATIOS | ||||||||||||
| Allowance for credit losses to loans, before allowance for credit losses | 1.21 | % | 0.97 | % | 0.99 | % | ||||||
| Allowance for credit losses to nonaccrual loans | 595.82 | 1,175.55 | 995.86 | |||||||||
| Allowance for credit losses to nonperforming loans | 594.91 | 1,175.00 | 992.63 | |||||||||
| Nonaccrual loans to loans, before allowance for credit losses | 0.20 | 0.08 | 0.10 | |||||||||
| Nonperforming loans to loans, before allowance for credit losses | 0.20 | 0.08 | 0.10 | |||||||||
| Nonperforming assets to total assets | 0.20 | 0.12 | 0.13 | |||||||||
| Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets | 0.31 | 0.20 | 0.22 | |||||||||
(1) Prior to 2023, excludes loans acquired with deteriorated credit quality that are past due 90 or more days and accruing. Such loans totaled | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| ALLOWANCE FOR CREDIT LOSSES ON LOANS | (dollars in thousands) | |||||||||||
| Beginning balance | $ | 25,333 | $ | 25,060 | $ | 23,936 | ||||||
| Adoption of ASC 326 | 6,983 | — | — | |||||||||
| PCD allowance established in acquisition | 1,247 | — | — | |||||||||
| Provision for credit losses | 5,101 | (653 | ) | (584 | ) | |||||||
| Charge-offs | (142 | ) | (169 | ) | (134 | ) | ||||||
| Recoveries | 254 | 1,095 | 1,290 | |||||||||
| Ending balance | $ | 38,776 | $ | 25,333 | $ | 24,508 | ||||||
| Net charge-offs (recoveries) | $ | (112 | ) | $ | (926 | ) | $ | (1,156 | ) | |||
| Average loans, before allowance for credit losses | 3,012,320 | 2,600,746 | 2,507,006 | |||||||||
| Net charge-offs (recoveries) to average loans, before allowance for credit losses * | (0.02 | )% | (0.14 | )% | (0.19 | )% | ||||||
* Annualized measure. | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| PROVISION FOR CREDIT LOSSES | (dollars in thousands) | |||||||||||
| Loans (1) | $ | 5,101 | $ | (653 | ) | $ | (584 | ) | ||||
| Unfunded lending-related commitments (1) | 509 | — | — | |||||||||
| Debt securities | 600 | — | — | |||||||||
| Total provision for credit losses | $ | 6,210 | $ | (653 | ) | $ | (584 | ) | ||||
(1) Includes recognition of an allowance for credit losses on non-PCD loans of | ||||||||||||
| Reconciliation of Non-GAAP Financial Measures – Adjusted Net Income and Adjusted Return on Average Assets | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| (dollars in thousands) | ||||||||||||
| Net income | $ | 9,208 | $ | 13,140 | $ | 13,604 | ||||||
| Adjustments: | ||||||||||||
| Acquisition expenses (1) | (13,064 | ) | (630 | ) | — | |||||||
| Gains (losses) on sales of closed branch premises | — | — | 197 | |||||||||
| Realized gains (losses) on sales of securities | (1,007 | ) | — | — | ||||||||
| Mortgage servicing rights fair value adjustment | (624 | ) | (293 | ) | 1,729 | |||||||
| Total adjustments | (14,695 | ) | (923 | ) | 1,926 | |||||||
| Tax effect of adjustments | 4,044 | 177 | (549 | ) | ||||||||
| Less adjustments, after tax effect | (10,651 | ) | (746 | ) | 1,377 | |||||||
| Adjusted net income | $ | 19,859 | $ | 13,886 | $ | 12,227 | ||||||
| Average assets | $ | 4,765,290 | $ | 4,242,799 | $ | 4,343,446 | ||||||
| Return on average assets * | 0.78 | % | 1.23 | % | 1.27 | % | ||||||
| Adjusted return on average assets * | 1.69 | 1.30 | 1.14 | |||||||||
* Annualized measure. (1) Includes recognition of an allowance for credit losses on non-PCD loans of | ||||||||||||
| Reconciliation of Non-GAAP Financial Measures – Adjusted Earnings Per Share | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| (dollars in thousands, except per share data) | ||||||||||||
| Numerator: | ||||||||||||
| Net income | $ | 9,208 | $ | 13,140 | $ | 13,604 | ||||||
| Earnings allocated to participating securities (1) | (5 | ) | (15 | ) | (17 | ) | ||||||
| Numerator for earnings per share - basic and diluted | $ | 9,203 | $ | 13,125 | $ | 13,587 | ||||||
| Adjusted net income | $ | 19,859 | $ | 13,886 | $ | 12,227 | ||||||
| Earnings allocated to participating securities (1) | (13 | ) | (16 | ) | (15 | ) | ||||||
| Numerator for adjusted earnings per share - basic and diluted | $ | 19,846 | $ | 13,870 | $ | 12,212 | ||||||
| Denominator: | ||||||||||||
| Weighted average common shares outstanding | 30,977,204 | 28,752,626 | 28,986,593 | |||||||||
| Dilutive effect of outstanding restricted stock units | 69,947 | 91,905 | 43,646 | |||||||||
| Weighted average common shares outstanding, including all dilutive potential shares | 31,047,151 | 28,844,531 | 29,030,239 | |||||||||
| Earnings per share - Basic | $ | 0.30 | $ | 0.46 | $ | 0.47 | ||||||
| Earnings per share - Diluted | $ | 0.30 | $ | 0.46 | $ | 0.47 | ||||||
| Adjusted earnings per share - Basic | $ | 0.64 | $ | 0.48 | $ | 0.42 | ||||||
| Adjusted earnings per share - Diluted | $ | 0.64 | $ | 0.48 | $ | 0.42 | ||||||
(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 | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| (dollars in thousands) | ||||||||||||
| Net interest income (tax equivalent basis) | ||||||||||||
| Net interest income | $ | 46,837 | $ | 42,183 | $ | 31,928 | ||||||
| Tax-equivalent adjustment (1) | 702 | 698 | 529 | |||||||||
| Net interest income (tax equivalent basis) (1) | $ | 47,539 | $ | 42,881 | $ | 32,457 | ||||||
| Net interest margin (tax equivalent basis) | ||||||||||||
| Net interest margin * | 4.20 | % | 4.10 | % | 3.08 | % | ||||||
| Tax-equivalent adjustment * (1) | 0.06 | 0.07 | 0.05 | |||||||||
| Net interest margin (tax equivalent basis) * (1) | 4.26 | % | 4.17 | % | 3.13 | % | ||||||
| Average interest-earning assets | $ | 4,523,721 | $ | 4,079,261 | $ | 4,201,793 | ||||||
* Annualized measure. (1) On a tax-equivalent basis assuming a federal income tax rate of | ||||||||||||
| Reconciliation of Non-GAAP Financial Measures – Efficiency Ratio (Tax Equivalent Basis) | ||||||||||||
| Three Months Ended | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| (dollars in thousands) | ||||||||||||
| Efficiency ratio (tax equivalent basis) | ||||||||||||
| Total noninterest expense | $ | 35,933 | $ | 33,110 | $ | 24,157 | ||||||
| Less: amortization of intangible assets | 510 | 140 | 245 | |||||||||
| Adjusted noninterest expense | $ | 35,423 | $ | 32,970 | $ | 23,912 | ||||||
| Net interest income | $ | 46,837 | $ | 42,183 | $ | 31,928 | ||||||
| Total noninterest income | 7,437 | 7,889 | 10,043 | |||||||||
| Operating revenue | 54,274 | 50,072 | 41,971 | |||||||||
| Tax-equivalent adjustment (1) | 702 | 698 | 529 | |||||||||
| Operating revenue (tax equivalent basis) (1) | $ | 54,976 | $ | 50,770 | $ | 42,500 | ||||||
| Efficiency ratio | 65.27 | % | 65.85 | % | 56.97 | % | ||||||
| Efficiency ratio (tax equivalent basis) (1) | 64.43 | 64.94 | 56.26 | |||||||||
(1) On a tax-equivalent basis assuming a federal income tax rate of | ||||||||||||
| Reconciliation of Non-GAAP Financial Measures – Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| (dollars in thousands, except per share data) | ||||||||||||
| Tangible common equity | ||||||||||||
| Total stockholders' equity | $ | 450,098 | $ | 373,632 | $ | 383,155 | ||||||
| Less: Goodwill | 59,876 | 29,322 | 29,322 | |||||||||
| Less: Intangible assets, net | 22,842 | 1,070 | 1,698 | |||||||||
| Tangible common equity | $ | 367,380 | $ | 343,240 | $ | 352,135 | ||||||
| Tangible assets | ||||||||||||
| Total assets | $ | 5,013,821 | $ | 4,286,734 | $ | 4,348,965 | ||||||
| Less: Goodwill | 59,876 | 29,322 | 29,322 | |||||||||
| Less: Intangible assets, net | 22,842 | 1,070 | 1,698 | |||||||||
| Tangible assets | $ | 4,931,103 | $ | 4,256,342 | $ | 4,317,945 | ||||||
| Total stockholders' equity to total assets | 8.98 | % | 8.72 | % | 8.81 | % | ||||||
| Tangible common equity to tangible assets | 7.45 | 8.06 | 8.16 | |||||||||
| Shares of common stock outstanding | 32,095,370 | 28,752,626 | 28,967,943 | |||||||||
| Book value per share | $ | 14.02 | $ | 12.99 | $ | 13.23 | ||||||
| Tangible book value per share | 11.45 | 11.94 | 12.16 | |||||||||
| 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 | ||||||||||||
| March 31, | December 31, | March 31, | ||||||||||
| 2023 | 2022 | 2022 | ||||||||||
| (dollars in thousands) | ||||||||||||
| Average tangible common equity | ||||||||||||
| Total stockholders' equity | $ | 422,212 | $ | 367,867 | $ | 406,289 | ||||||
| Less: Goodwill | 49,352 | 29,322 | 29,322 | |||||||||
| Less: Intangible assets, net | 15,635 | 1,134 | 1,844 | |||||||||
| Average tangible common equity | $ | 357,225 | $ | 337,411 | $ | 375,123 | ||||||
| Net income | $ | 9,208 | $ | 13,140 | $ | 13,604 | ||||||
| Adjusted net income | 19,859 | 13,886 | 12,227 | |||||||||
| Return on average stockholders' equity * | 8.84 | % | 14.17 | % | 13.58 | % | ||||||
| Return on average tangible common equity * | 10.45 | 15.45 | 14.71 | |||||||||
| Adjusted return on average stockholders' equity * | 19.08 | % | 14.98 | % | 12.20 | % | ||||||
| Adjusted return on average tangible common equity * | 22.55 | 16.33 | 13.22 | |||||||||
* Annualized measure. | ||||||||||||
FAQ
What were HBT Financial's earnings results for Q1 2023?
How did the acquisition of Town and Country affect HBT Financial's financials?
What is HBT Financial's outlook following the Q1 2023 results?
What was the return on equity for HBT Financial in Q1 2023?
What is HBT Financial's stock repurchase program status?
