HBT Financial, Inc. Announces Second Quarter 2024 Financial Results
HBT Financial (NASDAQ: HBT) reported strong Q2 2024 results with net income of $18.1 million, or $0.57 per diluted share. The company achieved a return on average assets (ROAA) of 1.45% and a return on average tangible common equity (ROATCE) of 17.21%. Asset quality remained robust with nonperforming assets at 0.17% of total assets. The net interest margin increased slightly to 4.00% (tax-equivalent basis). Loan growth was solid at $39.5 million, or 4.7% annualized. The company's tangible book value per share grew 17.8% year-over-year to $13.64. HBT Financial maintained strong capital ratios, exceeding regulatory requirements, with a total capital to risk-weighted assets ratio of 16.01%.
HBT Financial (NASDAQ: HBT) ha riportato risultati solidi per il secondo trimestre del 2024, con un utile netto di 18,1 milioni di dollari, pari a 0,57 dollari per azione diluita. L'azienda ha raggiunto un ritorno sugli attivi medi (ROAA) del 1,45% e un ritorno sul patrimonio netto tangibile medio (ROATCE) del 17,21%. La qualità degli attivi è rimasta robusta, con attivi non performanti allo 0,17% del totale degli attivi. Il margine d'interesse netto è aumentato leggermente al 4,00% (su base equivalente fiscale). La crescita dei prestiti è stata solida, raggiungendo 39,5 milioni di dollari, ovvero un 4,7% annualizzato. Il valore contabile tangibile per azione dell'azienda è cresciuto del 17,8% anno su anno, arrivando a 13,64 dollari. HBT Financial ha mantenuto forti rapporti patrimoniali, superando i requisiti normativi, con un rapporto totale di capitale su attivi ponderati per il rischio del 16,01%.
HBT Financial (NASDAQ: HBT) reportó resultados sólidos para el segundo trimestre de 2024, con un ingreso neto de 18.1 millones de dólares, o 0.57 dólares por acción diluida. La compañía logró un retorno sobre activos promedio (ROAA) del 1.45% y un retorno sobre el capital común tangible promedio (ROATCE) del 17.21%. La calidad de los activos se mantuvo robusta con activos no rentables en el 0.17% del total de activos. El margen de interés neto aumentó ligeramente al 4.00% (base equivalente fiscal). El crecimiento de préstamos fue sólido, alcanzando 39.5 millones de dólares, o un 4.7% anualizado. El valor contable tangible por acción de la compañía creció un 17.8% interanual a 13.64 dólares. HBT Financial mantuvo fuertes razones de capital, superando los requisitos regulatorios, con un ratio de capital total sobre activos ponderados por el riesgo del 16.01%.
HBT Financial (NASDAQ: HBT)는 2024년 2분기 강력한 실적을 발표하며, 순이익이 1,810만 달러, 희석주당 0.57달러에 달했습니다. 회사는 평균 자산 수익률 (ROAA) 1.45%와 평균 유형 자본 수익률 (ROATCE) 17.21%을 달성했습니다. 비수익 자산은 총 자산의 0.17%로 자산 품질이 견고하게 유지되었습니다. 순이자 마진은 약간 증가하여 4.00% (세금 대등 기준)으로 나타났습니다. 대출 성장은 3,950만 달러, 연율 4.7%로 견고했습니다. 회사의 주당 유형 자산 가치는 전년 대비 17.8% 증가하여 13.64달러에 도달했습니다. HBT Financial은 규제 요구 사항을 초과하는 강력한 자본 비율을 유지하며, 위험 가중 자산 대비 총 자본 비율이 16.01%입니다.
HBT Financial (NASDAQ: HBT) a rapporté de solides résultats pour le deuxième trimestre de 2024, avec un revenu net de 18,1 millions de dollars, soit 0,57 dollar par action diluée. L'entreprise a réalisé un retour sur actifs moyens (ROAA) de 1,45% et un retour sur capital commun tangible moyen (ROATCE) de 17,21%. La qualité des actifs est restée robuste avec des actifs non performants à 0,17% du total des actifs. La marge d'intérêt nette a légèrement augmenté à 4,00% (sur une base équivalente fiscale). La croissance des prêts a été solide à 39,5 millions de dollars, soit 4,7% annualisé. La valeur comptable tangible par action de l'entreprise a augmenté de 17,8% d'une année sur l'autre pour atteindre 13,64 dollars. HBT Financial a maintenu de solides ratios de capital, dépassant les exigences réglementaires, avec un ratio de capital total par rapport aux actifs pondérés en fonction des risques de 16,01%.
HBT Financial (NASDAQ: HBT) meldete starke Ergebnisse für das zweite Quartal 2024 mit einem Nettogewinn von 18,1 Millionen Dollar, bzw. 0,57 Dollar pro verwässerter Aktie. Das Unternehmen erreichte eine Rendite auf das durchschnittliche Vermögen (ROAA) von 1,45% und eine Rendite auf das durchschnittliche tangible Eigenkapital (ROATCE) von 17,21%. Die Vermögensqualität blieb robust mit nicht ertragbringenden Vermögenswerten von 0,17% der Gesamtvermögen. Die netto Zinsmarge stieg leicht auf 4,00% (steueräquivalente Basis). Das Kreditwachstum war solide bei 39,5 Millionen Dollar, das entspricht einer annualisierten Steigerung von 4,7%. Der tangible Buchwert pro Aktie des Unternehmens wuchs um 17,8% im Jahresvergleich auf 13,64 Dollar. HBT Financial hielt starke Kapitalquoten bei, die die regulatorischen Anforderungen übertrafen, mit einem Verhältnis von Gesamtkapital zu risikogewichteten Vermögenswerten von 16,01%.
- Net income of $18.1 million, or $0.57 per diluted share
- Strong ROAA of 1.45% and ROATCE of 17.21%
- Solid loan growth of $39.5 million, or 4.7% annualized
- Net interest margin (tax-equivalent basis) increased to 4.00%
- Tangible book value per share grew 17.8% year-over-year to $13.64
- Strong capital ratios with total capital to risk-weighted assets at 16.01%
- Net income decreased slightly year-over-year from $18.5 million in Q2 2023
- Net interest income decreased 3.8% year-over-year
- Noninterest income decreased 3.1% year-over-year
- Total deposits decreased by $41.9 million from Q1 2024
Insights
The second quarter financial performance of HBT Financial shows positive results with a net income of
HBT Financial's performance in Q2 2024 showcases robust growth, particularly in their loan portfolio which saw an increase of
The absence of significant legal fees and acquisition-related expenses in the second quarter of 2024 positively impacted HBT Financial's noninterest expenses, which saw a notable decrease. This reduction, alongside the realization of cost savings post-Town and Country core system conversion, reflects effective integration and operational streamlining post-acquisition. Additionally, the compliance with Basel III regulatory capital requirements indicates robust regulatory adherence and a strong risk management framework, which are important for maintaining investor trust and avoiding regulatory penalties.
Second Quarter Highlights
- Net income of
$18.1 million , or$0.57 per diluted share; return on average assets (“ROAA”) of1.45% ; return on average stockholders' equity (“ROAE”) of14.48% ; and return on average tangible common equity (“ROATCE”)(1) of17.21% - Adjusted net income(1) of
$18.1 million ; or$0.57 per diluted share; adjusted ROAA(1) of1.45% ; adjusted ROAE(1) of14.54% ; and adjusted ROATCE(1) of17.27% - Asset quality remained strong with nonperforming assets to total assets of
0.17% , close to a historic low - Net interest margin and net interest margin (tax-equivalent basis)(1) increased slightly to
3.95% and4.00% , respectively
BLOOMINGTON, Ill., July 22, 2024 (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
J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “On behalf of HBT Financial, I would like to first express my condolences to the George Drake family. George passed away on May 13th at the age of 97. He started his banking career just after World War II at the State Bank of Cornland, which had been founded by his father M.B. Drake, and he spent over 70 years in banking before retiring from our Board of Directors in 2019. He formed Heartland Bancorp, Inc. (now HBT Financial) in 1982 as one of the first multi-bank holding companies in Illinois. I had the pleasure of knowing George for 22 years and his kindness and wisdom impacted me. His leadership and vision established the foundation for our success today.
As for the second quarter, we delivered another set of very strong performance metrics with net income of
While we continue to invest in our business, our costs were well controlled during the quarter as demonstrated by our efficiency ratio (tax-equivalent basis)(1) of
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(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
Adjusted Net Income
In addition to reporting GAAP results, the Company believes non-GAAP measures such as adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on 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
Net Interest Income and Net Interest Margin
Net interest income for the second quarter of 2024 was
Relative to the second quarter of 2023, net interest income decreased
Net interest margin for the second quarter of 2024 was
Relative to the second quarter of 2023, net interest margin decreased 21 basis points from
____________________________________
(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
Noninterest Income
Noninterest income for the second quarter of 2024 was
Relative to the second quarter of 2023, noninterest income decreased
Noninterest Expense
Noninterest expense for the second quarter of 2024 was
Relative to the second quarter of 2023, noninterest expense decreased
Acquisition-related expenses recognized during the three and six months ended June 30, 2023 are summarized below. No Town and Country acquisition-related expenses were recognized subsequent to the second quarter of 2023.
(dollars in thousands) | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | |||
PROVISION FOR CREDIT LOSSES | $ | — | $ | 5,924 | |
NONINTEREST EXPENSE | |||||
Salaries | 66 | 3,584 | |||
Furniture and equipment | 39 | 39 | |||
Data processing | 176 | 2,031 | |||
Marketing and customer relations | 10 | 24 | |||
Loan collection and servicing | 125 | 125 | |||
Legal fees and other noninterest expense | 211 | 1,964 | |||
Total noninterest expense | 627 | 7,767 | |||
Total acquisition-related expenses | $ | 627 | $ | 13,691 |
Income Taxes
During the second quarter of 2024, we recognized an additional
Loan Portfolio
Total loans outstanding, before allowance for credit losses, were
Deposits
Total deposits were
Asset Quality
Nonperforming loans totaled
The Company recorded a provision for credit losses of
The Company had net charge-offs of
The Company’s allowance for credit losses was
Capital
As of June 30, 2024, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:
June 30, 2024 | For Capital Adequacy Purposes With Capital Conversation Buffer | |||||
Total capital to risk-weighted assets | 16.01 | % | 10.50 | % | ||
Tier 1 capital to risk-weighted assets | 13.98 | 8.50 | ||||
Common equity tier 1 capital ratio | 12.66 | 7.00 | ||||
Tier 1 leverage ratio | 10.83 | 4.00 | ||||
The ratio of tangible common equity to tangible assets(1) increased to
During the second quarter of 2024, the Company repurchased 53,522 shares of its common stock at a weighted average price of
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(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
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 Financial provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa through 66 full-service branches. As of June 30, 2024, HBT Financial 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), ratio of tangible common equity to tangible assets, tangible book value per share, ROATCE, adjusted net income, adjusted earnings per share, adjusted ROAA, adjusted ROAE, and adjusted ROATCE. 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, acts of war or other threats thereof (including the Israeli-Palestinian conflict and 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 Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (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 or as a result of the upcoming 2024 presidential election; (v) changes in interest rates and prepayment rates of the Company’s assets (including the effects of sustained, elevated interest rates); (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 (including commercial real estate loans), 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
(309) 664-4556
HBT Financial, Inc. Unaudited Consolidated Financial Summary | ||||||||||||||||||||
As of or for the Three Months Ended | Six Months Ended June 30, | |||||||||||||||||||
(dollars in thousands, except per share data) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | |||||||||||||||
Interest and dividend income | $ | 62,824 | $ | 61,961 | $ | 56,768 | $ | 124,785 | $ | 108,547 | ||||||||||
Interest expense | 15,796 | 15,273 | 7,896 | 31,069 | 12,838 | |||||||||||||||
Net interest income | 47,028 | 46,688 | 48,872 | 93,716 | 95,709 | |||||||||||||||
Provision for credit losses | 1,176 | 527 | (230 | ) | 1,703 | 5,980 | ||||||||||||||
Net interest income after provision for credit losses | 45,852 | 46,161 | 49,102 | 92,013 | 89,729 | |||||||||||||||
Noninterest income | 9,610 | 5,626 | 9,914 | 15,236 | 17,351 | |||||||||||||||
Noninterest expense | 30,509 | 31,268 | 33,973 | 61,777 | 69,906 | |||||||||||||||
Income before income tax expense | 24,953 | 20,519 | 25,043 | 45,472 | 37,174 | |||||||||||||||
Income tax expense | 6,883 | 5,261 | 6,570 | 12,144 | 9,493 | |||||||||||||||
Net income | $ | 18,070 | $ | 15,258 | $ | 18,473 | $ | 33,328 | $ | 27,681 | ||||||||||
Earnings per share - Diluted | $ | 0.57 | $ | 0.48 | $ | 0.58 | $ | 1.05 | $ | 0.88 | ||||||||||
Adjusted net income (1) | $ | 18,139 | $ | 18,073 | $ | 18,772 | $ | 36,212 | $ | 38,631 | ||||||||||
Adjusted earnings per share - Diluted (1) | 0.57 | 0.57 | 0.58 | 1.14 | 1.22 | |||||||||||||||
Book value per share | $ | 16.14 | $ | 15.71 | $ | 14.15 | ||||||||||||||
Tangible book value per share (1) | 13.64 | 13.19 | 11.58 | |||||||||||||||||
Shares of common stock outstanding | 31,559,366 | 31,612,888 | 31,865,868 | |||||||||||||||||
Weighted average shares of common stock outstanding | 31,579,457 | 31,662,954 | 31,980,133 | 31,621,205 | 31,481,439 | |||||||||||||||
SUMMARY RATIOS | ||||||||||||||||||||
Net interest margin * | 3.95 | % | 3.94 | % | 4.16 | % | 3.95 | % | 4.18 | % | ||||||||||
Net interest margin (tax-equivalent basis) * (1)(2) | 4.00 | 3.99 | 4.22 | 3.99 | 4.24 | |||||||||||||||
Efficiency ratio | 52.61 | % | 58.41 | % | 56.57 | % | 55.40 | % | 60.74 | % | ||||||||||
Efficiency ratio (tax-equivalent basis) (1)(2) | 52.10 | 57.78 | 55.89 | 54.83 | 59.99 | |||||||||||||||
Loan to deposit ratio | 78.39 | % | 76.73 | % | 77.91 | % | ||||||||||||||
Return on average assets * | 1.45 | % | 1.23 | % | 1.49 | % | 1.34 | % | 1.15 | % | ||||||||||
Return on average stockholders' equity * | 14.48 | 12.42 | 16.30 | 13.46 | 12.73 | |||||||||||||||
Return on average tangible common equity * (1) | 17.21 | 14.83 | 19.91 | 16.03 | 15.31 | |||||||||||||||
Adjusted return on average assets * (1) | 1.45 | % | 1.45 | % | 1.51 | % | 1.45 | % | 1.60 | % | ||||||||||
Adjusted return on average stockholders' equity * (1) | 14.54 | 14.72 | 16.57 | 14.63 | 17.77 | |||||||||||||||
Adjusted return on average tangible common equity * (1) | 17.27 | 17.57 | 20.23 | 17.42 | 21.36 | |||||||||||||||
CAPITAL | ||||||||||||||||||||
Total capital to risk-weighted assets | 16.01 | % | 15.79 | % | 15.03 | % | ||||||||||||||
Tier 1 capital to risk-weighted assets | 13.98 | 13.77 | 13.12 | |||||||||||||||||
Common equity tier 1 capital ratio | 12.66 | 12.44 | 11.78 | |||||||||||||||||
Tier 1 leverage ratio | 10.83 | 10.65 | 10.07 | |||||||||||||||||
Total stockholders' equity to total assets | 10.18 | 9.85 | 9.06 | |||||||||||||||||
Tangible common equity to tangible assets (1) | 8.74 | 8.40 | 7.54 | |||||||||||||||||
ASSET QUALITY | ||||||||||||||||||||
Net charge-offs (recoveries) to average loans | 0.08 | % | (0.02) % | (0.01) % | 0.03 | % | (0.01) % | |||||||||||||
Allowance for credit losses to loans, before allowance for credit losses | 1.21 | 1.22 | 1.17 | |||||||||||||||||
Nonperforming loans to loans, before allowance for credit losses | 0.25 | 0.29 | 0.23 | |||||||||||||||||
Nonperforming assets to total assets | 0.17 | 0.20 | 0.21 |
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- 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 | Six Months Ended June 30, | ||||||||||||||||||
(dollars in thousands, except per share data) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | ||||||||||||||
INTEREST AND DIVIDEND INCOME | |||||||||||||||||||
Loans, including fees: | |||||||||||||||||||
Taxable | $ | 52,177 | $ | 51,926 | $ | 47,149 | $ | 104,103 | $ | 89,308 | |||||||||
Federally tax exempt | 1,097 | 1,094 | 1,040 | 2,191 | 1,992 | ||||||||||||||
Securities: | |||||||||||||||||||
Taxable | 6,386 | 6,250 | 6,518 | 12,636 | 13,134 | ||||||||||||||
Federally tax exempt | 521 | 597 | 1,162 | 1,118 | 2,359 | ||||||||||||||
Interest-bearing deposits in bank | 2,570 | 1,952 | 781 | 4,522 | 1,520 | ||||||||||||||
Other interest and dividend income | 73 | 142 | 118 | 215 | 234 | ||||||||||||||
Total interest and dividend income | 62,824 | 61,961 | 56,768 | 124,785 | 108,547 | ||||||||||||||
INTEREST EXPENSE | |||||||||||||||||||
Deposits | 14,133 | 13,593 | 4,323 | 27,726 | 6,697 | ||||||||||||||
Securities sold under agreements to repurchase | 129 | 152 | 34 | 281 | 72 | ||||||||||||||
Borrowings | 121 | 125 | 2,189 | 246 | 3,486 | ||||||||||||||
Subordinated notes | 469 | 470 | 469 | 939 | 939 | ||||||||||||||
Junior subordinated debentures issued to capital trusts | 944 | 933 | 881 | 1,877 | 1,644 | ||||||||||||||
Total interest expense | 15,796 | 15,273 | 7,896 | 31,069 | 12,838 | ||||||||||||||
Net interest income | 47,028 | 46,688 | 48,872 | 93,716 | 95,709 | ||||||||||||||
PROVISION FOR CREDIT LOSSES | 1,176 | 527 | (230 | ) | 1,703 | 5,980 | |||||||||||||
Net interest income after provision for credit losses | 45,852 | 46,161 | 49,102 | 92,013 | 89,729 | ||||||||||||||
NONINTEREST INCOME | |||||||||||||||||||
Card income | 2,885 | 2,616 | 2,905 | 5,501 | 5,563 | ||||||||||||||
Wealth management fees | 2,623 | 2,547 | 2,279 | 5,170 | 4,617 | ||||||||||||||
Service charges on deposit accounts | 1,902 | 1,869 | 1,919 | 3,771 | 3,790 | ||||||||||||||
Mortgage servicing | 1,111 | 1,055 | 1,254 | 2,166 | 2,353 | ||||||||||||||
Mortgage servicing rights fair value adjustment | (97 | ) | 80 | 141 | (17 | ) | (483 | ) | |||||||||||
Gains on sale of mortgage loans | 443 | 298 | 373 | 741 | 649 | ||||||||||||||
Realized gains (losses) on sales of securities | — | (3,382 | ) | — | (3,382 | ) | (1,007 | ) | |||||||||||
Unrealized gains (losses) on equity securities | (96 | ) | (16 | ) | 7 | (112 | ) | (15 | ) | ||||||||||
Gains (losses) on foreclosed assets | (28 | ) | 87 | (97 | ) | 59 | (107 | ) | |||||||||||
Gains (losses) on other assets | — | (635 | ) | 109 | (635 | ) | 109 | ||||||||||||
Income on bank owned life insurance | 166 | 164 | 147 | 330 | 262 | ||||||||||||||
Other noninterest income | 701 | 943 | 877 | 1,644 | 1,620 | ||||||||||||||
Total noninterest income | 9,610 | 5,626 | 9,914 | 15,236 | 17,351 | ||||||||||||||
NONINTEREST EXPENSE | |||||||||||||||||||
Salaries | 16,364 | 16,657 | 16,660 | 33,021 | 36,071 | ||||||||||||||
Employee benefits | 2,860 | 2,805 | 2,707 | 5,665 | 5,042 | ||||||||||||||
Occupancy of bank premises | 2,243 | 2,582 | 2,785 | 4,825 | 4,887 | ||||||||||||||
Furniture and equipment | 548 | 550 | 809 | 1,098 | 1,468 | ||||||||||||||
Data processing | 2,606 | 2,925 | 2,883 | 5,531 | 7,206 | ||||||||||||||
Marketing and customer relations | 996 | 996 | 1,359 | 1,992 | 2,195 | ||||||||||||||
Amortization of intangible assets | 710 | 710 | 720 | 1,420 | 1,230 | ||||||||||||||
FDIC insurance | 565 | 560 | 630 | 1,125 | 1,193 | ||||||||||||||
Loan collection and servicing | 475 | 452 | 348 | 927 | 626 | ||||||||||||||
Foreclosed assets | 10 | 49 | 97 | 59 | 158 | ||||||||||||||
Other noninterest expense | 3,132 | 2,982 | 4,975 | 6,114 | 9,830 | ||||||||||||||
Total noninterest expense | 30,509 | 31,268 | 33,973 | 61,777 | 69,906 | ||||||||||||||
INCOME BEFORE INCOME TAX EXPENSE | 24,953 | 20,519 | 25,043 | 45,472 | 37,174 | ||||||||||||||
INCOME TAX EXPENSE | 6,883 | 5,261 | 6,570 | 12,144 | 9,493 | ||||||||||||||
NET INCOME | $ | 18,070 | $ | 15,258 | $ | 18,473 | $ | 33,328 | $ | 27,681 | |||||||||
EARNINGS PER SHARE - BASIC | $ | 0.57 | $ | 0.48 | $ | 0.58 | $ | 1.05 | $ | 0.88 | |||||||||
EARNINGS PER SHARE - DILUTED | $ | 0.57 | $ | 0.48 | $ | 0.58 | $ | 1.05 | $ | 0.88 | |||||||||
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING | 31,579,457 | 31,662,954 | 31,980,133 | 31,621,205 | 31,481,439 | ||||||||||||||
HBT Financial, Inc. Unaudited Consolidated Financial Summary Consolidated Balance Sheets | |||||||||||
(dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||
ASSETS | |||||||||||
Cash and due from banks | $ | 22,604 | $ | 19,989 | $ | 28,044 | |||||
Interest-bearing deposits with banks | 172,636 | 240,223 | 81,764 | ||||||||
Cash and cash equivalents | 195,240 | 260,212 | 109,808 | ||||||||
Interest-bearing time deposits with banks | 520 | 515 | — | ||||||||
Debt securities available-for-sale, at fair value | 669,055 | 669,020 | 822,788 | ||||||||
Debt securities held-to-maturity | 512,549 | 517,472 | 533,231 | ||||||||
Equity securities with readily determinable fair value | 3,228 | 3,324 | 3,152 | ||||||||
Equity securities with no readily determinable fair value | 2,613 | 2,622 | 2,275 | ||||||||
Restricted stock, at cost | 5,086 | 5,155 | 11,345 | ||||||||
Loans held for sale | 858 | 3,479 | 8,829 | ||||||||
Loans, before allowance for credit losses | 3,385,483 | 3,345,962 | 3,244,655 | ||||||||
Allowance for credit losses | (40,806 | ) | (40,815 | ) | (37,814 | ) | |||||
Loans, net of allowance for credit losses | 3,344,677 | 3,305,147 | 3,206,841 | ||||||||
Bank owned life insurance | 24,235 | 24,069 | 23,594 | ||||||||
Bank premises and equipment, net | 65,711 | 64,755 | 65,029 | ||||||||
Bank premises held for sale | 317 | 317 | 35 | ||||||||
Foreclosed assets | 320 | 277 | 3,080 | ||||||||
Goodwill | 59,820 | 59,820 | 59,876 | ||||||||
Intangible assets, net | 19,262 | 19,972 | 22,122 | ||||||||
Mortgage servicing rights, at fair value | 18,984 | 19,081 | 20,133 | ||||||||
Investments in unconsolidated subsidiaries | 1,614 | 1,614 | 1,614 | ||||||||
Accrued interest receivable | 22,425 | 23,117 | 19,900 | ||||||||
Other assets | 59,685 | 60,542 | 62,158 | ||||||||
Total assets | $ | 5,006,199 | $ | 5,040,510 | $ | 4,975,810 | |||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
Liabilities | |||||||||||
Deposits: | |||||||||||
Noninterest-bearing | $ | 1,045,697 | $ | 1,047,074 | $ | 1,125,823 | |||||
Interest-bearing | 3,272,996 | 3,313,500 | 3,038,700 | ||||||||
Total deposits | 4,318,693 | 4,360,574 | 4,164,523 | ||||||||
Securities sold under agreements to repurchase | 29,330 | 31,864 | 38,729 | ||||||||
Federal Home Loan Bank advances | 13,734 | 12,725 | 177,572 | ||||||||
Subordinated notes | 39,514 | 39,494 | 39,435 | ||||||||
Junior subordinated debentures issued to capital trusts | 52,819 | 52,804 | 52,760 | ||||||||
Other liabilities | 42,640 | 46,368 | 51,939 | ||||||||
Total liabilities | 4,496,730 | 4,543,829 | 4,524,958 | ||||||||
Stockholders' Equity | |||||||||||
Common stock | 328 | 328 | 327 | ||||||||
Surplus | 296,430 | 296,054 | 294,875 | ||||||||
Retained earnings | 290,386 | 278,353 | 241,777 | ||||||||
Accumulated other comprehensive income (loss) | (54,656 | ) | (56,048 | ) | (70,662 | ) | |||||
Treasury stock at cost | (23,019 | ) | (22,006 | ) | (15,465 | ) | |||||
Total stockholders’ equity | 509,469 | 496,681 | 450,852 | ||||||||
Total liabilities and stockholders’ equity | $ | 5,006,199 | $ | 5,040,510 | $ | 4,975,810 | |||||
SHARES OF COMMON STOCK OUTSTANDING | 31,559,366 | 31,612,888 | 31,865,868 | ||||||||
HBT Financial, Inc. Unaudited Consolidated Financial Summary | |||||||||||
(dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||
LOANS | |||||||||||
Commercial and industrial | $ | 400,276 | $ | 402,206 | $ | 385,768 | |||||
Commercial real estate - owner occupied | 289,992 | 294,967 | 303,522 | ||||||||
Commercial real estate - non-owner occupied | 889,193 | 890,251 | 882,598 | ||||||||
Construction and land development | 365,371 | 345,991 | 335,262 | ||||||||
Multi-family | 429,951 | 421,573 | 375,536 | ||||||||
One-to-four family residential | 484,335 | 485,948 | 482,442 | ||||||||
Agricultural and farmland | 285,822 | 287,205 | 259,858 | ||||||||
Municipal, consumer, and other | 240,543 | 217,821 | 219,669 | ||||||||
Total loans | $ | 3,385,483 | $ | 3,345,962 | $ | 3,244,655 |
(dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||
DEPOSITS | |||||||||||
Noninterest-bearing deposits | $ | 1,045,697 | $ | 1,047,074 | $ | 1,125,823 | |||||
Interest-bearing deposits: | |||||||||||
Interest-bearing demand | 1,094,797 | 1,139,172 | 1,181,187 | ||||||||
Money market | 769,386 | 802,685 | 680,642 | ||||||||
Savings | 582,752 | 602,739 | 657,506 | ||||||||
Time | 796,069 | 713,142 | 468,355 | ||||||||
Brokered | 29,992 | 55,762 | 51,010 | ||||||||
Total interest-bearing deposits | 3,272,996 | 3,313,500 | 3,038,700 | ||||||||
Total deposits | $ | 4,318,693 | $ | 4,360,574 | $ | 4,164,523 | |||||
HBT Financial, Inc. Unaudited Consolidated Financial Summary | |||||||||||||||||||||||||||||
Three Months Ended | |||||||||||||||||||||||||||||
June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Yield/Cost * | Average Balance | Interest | Yield/Cost * | Average Balance | Interest | Yield/Cost * | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
Loans | $ | 3,374,058 | $ | 53,274 | 6.35 | % | $ | 3,371,219 | $ | 53,020 | 6.33 | % | $ | 3,238,774 | $ | 48,189 | 5.97 | % | |||||||||||
Securities | 1,195,287 | 6,907 | 2.32 | 1,221,447 | 6,847 | 2.25 | 1,384,180 | 7,680 | 2.23 | ||||||||||||||||||||
Deposits with banks | 211,117 | 2,570 | 4.90 | 167,297 | 1,952 | 4.69 | 84,366 | 781 | 3.71 | ||||||||||||||||||||
Other | 5,096 | 73 | 5.80 | 5,486 | 142 | 10.40 | 8,577 | 118 | 5.52 | ||||||||||||||||||||
Total interest-earning assets | 4,785,558 | $ | 62,824 | 5.28 | % | 4,765,449 | $ | 61,961 | 5.23 | % | 4,715,897 | $ | 56,768 | 4.83 | % | ||||||||||||||
Allowance for credit losses | (40,814 | ) | (40,238 | ) | (39,484 | ) | |||||||||||||||||||||||
Noninterest-earning assets | 283,103 | 278,253 | 299,622 | ||||||||||||||||||||||||||
Total assets | $ | 5,027,847 | $ | 5,003,464 | $ | 4,976,035 | |||||||||||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||||||
Liabilities | |||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||
Interest-bearing demand | $ | 1,123,592 | $ | 1,429 | 0.51 | % | $ | 1,127,684 | $ | 1,311 | 0.47 | % | $ | 1,224,285 | $ | 683 | 0.22 | % | |||||||||||
Money market | 788,744 | 4,670 | 2.38 | 812,684 | 4,797 | 2.37 | 674,200 | 1,506 | 0.90 | ||||||||||||||||||||
Savings | 592,312 | 393 | 0.27 | 611,224 | 443 | 0.29 | 687,014 | 189 | 0.11 | ||||||||||||||||||||
Time | 763,507 | 7,117 | 3.75 | 664,498 | 5,925 | 3.59 | 447,025 | 1,933 | 1.73 | ||||||||||||||||||||
Brokered | 38,213 | 524 | 5.51 | 82,150 | 1,117 | 5.47 | 1,451 | 12 | 3.44 | ||||||||||||||||||||
Total interest-bearing deposits | 3,306,368 | 14,133 | 1.72 | 3,298,240 | 13,593 | 1.66 | 3,033,975 | 4,323 | 0.57 | ||||||||||||||||||||
Securities sold under agreements to repurchase | 30,440 | 129 | 1.70 | 32,456 | 152 | 1.89 | 34,170 | 34 | 0.40 | ||||||||||||||||||||
Borrowings | 13,466 | 121 | 3.60 | 13,003 | 125 | 3.87 | 173,040 | 2,189 | 5.07 | ||||||||||||||||||||
Subordinated notes | 39,504 | 469 | 4.78 | 39,484 | 470 | 4.78 | 39,424 | 469 | 4.78 | ||||||||||||||||||||
Junior subordinated debentures issued to capital trusts | 52,812 | 944 | 7.18 | 52,796 | 933 | 7.11 | 52,752 | 881 | 6.70 | ||||||||||||||||||||
Total interest-bearing liabilities | 3,442,590 | $ | 15,796 | 1.85 | % | 3,435,979 | $ | 15,273 | 1.79 | % | 3,333,361 | $ | 7,896 | 0.95 | % | ||||||||||||||
Noninterest-bearing deposits | 1,043,614 | 1,036,402 | 1,145,089 | ||||||||||||||||||||||||||
Noninterest-bearing liabilities | 39,806 | 37,107 | 43,080 | ||||||||||||||||||||||||||
Total liabilities | 4,526,010 | 4,509,488 | 4,521,530 | ||||||||||||||||||||||||||
Stockholders' Equity | 501,837 | 493,976 | 454,505 | ||||||||||||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,027,847 | $ | 5,003,464 | $ | 4,976,035 | |||||||||||||||||||||||
Net interest income/Net interest margin (1) | $ | 47,028 | 3.95 | % | $ | 46,688 | 3.94 | % | $ | 48,872 | 4.16 | % | |||||||||||||||||
Tax-equivalent adjustment (2) | 553 | 0.05 | 575 | 0.05 | 715 | 0.06 | |||||||||||||||||||||||
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3) | $ | 47,581 | 4.00 | % | $ | 47,263 | 3.99 | % | $ | 49,587 | 4.22 | % | |||||||||||||||||
Net interest rate spread (4) | 3.43 | % | 3.44 | % | 3.88 | % | |||||||||||||||||||||||
Net interest-earning assets (5) | $ | 1,342,968 | $ | 1,329,470 | $ | 1,382,536 | |||||||||||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.39 | 1.39 | 1.41 | ||||||||||||||||||||||||||
Cost of total deposits | 1.31 | % | 1.26 | % | 0.41 | % | |||||||||||||||||||||||
Cost of funds | 1.42 | 1.37 | 0.71 |
____________________________________
- 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 | |||||||||||||||||||
Six Months Ended | |||||||||||||||||||
June 30, 2024 | June 30, 2023 | ||||||||||||||||||
(dollars in thousands) | Average Balance | Interest | Yield/Cost * | Average Balance | Interest | Yield/Cost * | |||||||||||||
ASSETS | |||||||||||||||||||
Loans | $ | 3,372,640 | $ | 106,294 | 6.34 | % | $ | 3,126,173 | $ | 91,300 | 5.89 | % | |||||||
Securities | 1,208,367 | 13,754 | 2.29 | 1,397,821 | 15,493 | 2.24 | |||||||||||||
Deposits with banks | 189,207 | 4,522 | 4.81 | 88,343 | 1,520 | 3.47 | |||||||||||||
Other | 5,291 | 215 | 8.18 | 8,004 | 234 | 5.89 | |||||||||||||
Total interest-earning assets | 4,775,505 | $ | 124,785 | 5.25 | % | 4,620,341 | $ | 108,547 | 4.74 | % | |||||||||
Allowance for credit losses | (40,526 | ) | (36,410 | ) | |||||||||||||||
Noninterest-earning assets | 280,676 | 287,314 | |||||||||||||||||
Total assets | $ | 5,015,655 | $ | 4,871,245 | |||||||||||||||
LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
Liabilities | |||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||
Interest-bearing demand | $ | 1,125,638 | $ | 2,740 | 0.49 | % | $ | 1,227,447 | $ | 1,141 | 0.19 | % | |||||||
Money market | 800,714 | 9,467 | 2.38 | 654,514 | 2,441 | 0.75 | |||||||||||||
Savings | 601,768 | 836 | 0.28 | 698,375 | 367 | 0.11 | |||||||||||||
Time | 714,003 | 13,042 | 3.67 | 402,151 | 2,736 | 1.37 | |||||||||||||
Brokered | 60,181 | 1,641 | 5.48 | 729 | 12 | 3.44 | |||||||||||||
Total interest-bearing deposits | 3,302,304 | 27,726 | 1.69 | 2,983,216 | 6,697 | 0.45 | |||||||||||||
Securities sold under agreements to repurchase | 31,448 | 281 | 1.80 | 36,879 | 72 | 0.39 | |||||||||||||
Borrowings | 13,235 | 246 | 3.73 | 143,632 | 3,486 | 4.89 | |||||||||||||
Subordinated notes | 39,494 | 939 | 4.78 | 39,414 | 939 | 4.81 | |||||||||||||
Junior subordinated debentures issued to capital trusts | 52,804 | 1,877 | 7.15 | 50,183 | 1,644 | 6.61 | |||||||||||||
Total interest-bearing liabilities | 3,439,285 | $ | 31,069 | 1.82 | % | 3,253,324 | $ | 12,838 | 0.80 | % | |||||||||
Noninterest-bearing deposits | 1,040,007 | 1,133,292 | |||||||||||||||||
Noninterest-bearing liabilities | 38,457 | 46,181 | |||||||||||||||||
Total liabilities | 4,517,749 | 4,432,797 | |||||||||||||||||
Stockholders' Equity | 497,906 | 438,448 | |||||||||||||||||
Total liabilities and stockholders’ equity | $ | 5,015,655 | 4,871,245 | ||||||||||||||||
Net interest income/Net interest margin (1) | $ | 93,716 | 3.95 | % | $ | 95,709 | 4.18 | % | |||||||||||
Tax-equivalent adjustment (2) | 1,128 | 0.04 | 1,417 | 0.06 | |||||||||||||||
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3) | $ | 94,844 | 3.99 | % | $ | 97,126 | 4.24 | % | |||||||||||
Net interest rate spread (4) | 3.43 | % | 3.94 | % | |||||||||||||||
Net interest-earning assets (5) | $ | 1,336,220 | $ | 1,367,017 | |||||||||||||||
Ratio of interest-earning assets to interest-bearing liabilities | 1.39 | 1.42 | |||||||||||||||||
Cost of total deposits | 1.28 | % | 0.33 | % | |||||||||||||||
Cost of funds | 1.39 | 0.59 |
____________________________________
- 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 | |||||||||||
(dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||
NONPERFORMING ASSETS | |||||||||||
Nonaccrual | $ | 8,425 | $ | 9,657 | $ | 7,534 | |||||
Past due 90 days or more, still accruing | 7 | — | 1 | ||||||||
Total nonperforming loans | 8,432 | 9,657 | 7,535 | ||||||||
Foreclosed assets | 320 | 277 | 3,080 | ||||||||
Total nonperforming assets | $ | 8,752 | $ | 9,934 | $ | 10,615 | |||||
Nonperforming loans that are wholly or partially guaranteed by the U.S. Government | $ | 2,132 | $ | 2,676 | $ | 2,332 | |||||
Allowance for credit losses | $ | 40,806 | $ | 40,815 | $ | 37,814 | |||||
Loans, before allowance for credit losses | 3,385,483 | 3,345,962 | 3,244,655 | ||||||||
CREDIT QUALITY RATIOS | |||||||||||
Allowance for credit losses to loans, before allowance for credit losses | 1.21 | % | 1.22 | % | 1.17 | % | |||||
Allowance for credit losses to nonaccrual loans | 484.34 | 422.65 | 501.91 | ||||||||
Allowance for credit losses to nonperforming loans | 483.94 | 422.65 | 501.84 | ||||||||
Nonaccrual loans to loans, before allowance for credit losses | 0.25 | 0.29 | 0.23 | ||||||||
Nonperforming loans to loans, before allowance for credit losses | 0.25 | 0.29 | 0.23 | ||||||||
Nonperforming assets to total assets | 0.17 | 0.20 | 0.21 | ||||||||
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets | 0.26 | 0.30 | 0.33 | ||||||||
HBT Financial, Inc. Unaudited Consolidated Financial Summary | |||||||||||||||||||
Three Months Ended | Six Months Ended June 30, | ||||||||||||||||||
(dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | ||||||||||||||
ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||||||
Beginning balance | $ | 40,815 | $ | 40,048 | $ | 38,776 | $ | 40,048 | $ | 25,333 | |||||||||
Adoption of ASC 326 | — | — | — | — | 6,983 | ||||||||||||||
PCD allowance established in acquisition | — | — | — | — | 1,247 | ||||||||||||||
Provision for credit losses | 677 | 560 | (1,080 | ) | 1,237 | 4,021 | |||||||||||||
Charge-offs | (870 | ) | (227 | ) | (179 | ) | (1,097 | ) | (321 | ) | |||||||||
Recoveries | 184 | 434 | 297 | 618 | 551 | ||||||||||||||
Ending balance | $ | 40,806 | $ | 40,815 | $ | 37,814 | $ | 40,806 | $ | 37,814 | |||||||||
Net charge-offs (recoveries) | $ | 686 | $ | (207 | ) | $ | (118 | ) | $ | 479 | $ | (230 | ) | ||||||
Average loans | 3,374,058 | 3,371,219 | 3,238,774 | 3,372,640 | 3,126,173 | ||||||||||||||
Net charge-offs (recoveries) to average loans * | 0.08 | % | (0.02)% | (0.01)% | 0.03 | % | (0.01)% |
____________________________________
- Annualized measure.
Three Months Ended | Six Months Ended June 30, | |||||||||||||||
(dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | |||||||||||
PROVISION FOR CREDIT LOSSES | ||||||||||||||||
Loans (1) | $ | 677 | $ | 560 | $ | (1,080 | ) | $ | 1,237 | $ | 4,021 | |||||
Unfunded lending-related commitments (1) | 499 | (33 | ) | 650 | 466 | 1,159 | ||||||||||
Debt securities | — | — | 200 | — | 800 | |||||||||||
Total provision for credit losses | $ | 1,176 | $ | 527 | $ | (230 | ) | $ | 1,703 | $ | 5,980 |
____________________________________
(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 | Six Months Ended June 30, | |||||||||||||||||||
(dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | |||||||||||||||
Net income | $ | 18,070 | $ | 15,258 | $ | 18,473 | $ | 33,328 | $ | 27,681 | ||||||||||
Adjustments: | ||||||||||||||||||||
Acquisition expenses (1) | — | — | (627 | ) | — | (13,691 | ) | |||||||||||||
Gains (losses) on closed branch premises | — | (635 | ) | 75 | (635 | ) | 75 | |||||||||||||
Realized gains (losses) on sales of securities | — | (3,382 | ) | — | (3,382 | ) | (1,007 | ) | ||||||||||||
Mortgage servicing rights fair value adjustment | (97 | ) | 80 | 141 | (17 | ) | (483 | ) | ||||||||||||
Total adjustments | (97 | ) | (3,937 | ) | (411 | ) | (4,034 | ) | (15,106 | ) | ||||||||||
Tax effect of adjustments (2) | 28 | 1,122 | 112 | 1,150 | 4,156 | |||||||||||||||
Total adjustments after tax effect | (69 | ) | (2,815 | ) | (299 | ) | (2,884 | ) | (10,950 | ) | ||||||||||
Adjusted net income | $ | 18,139 | $ | 18,073 | $ | 18,772 | $ | 36,212 | $ | 38,631 | ||||||||||
Average assets | $ | 5,027,847 | $ | 5,003,464 | $ | 4,976,035 | $ | 5,015,655 | $ | 4,871,245 | ||||||||||
Return on average assets * | 1.45 | % | 1.23 | % | 1.49 | % | 1.34 | % | 1.15 | % | ||||||||||
Adjusted return on average assets * | 1.45 | 1.45 | 1.51 | 1.45 | 1.60 |
____________________________________
- Annualized measure.
(1) Includes recognition of an allowance for credit losses on non-PCD loans of
(2) Assumes a federal income tax rate of
Reconciliation of Non-GAAP Financial Measures – Adjusted Earnings Per Share — Basic and Diluted | |||||||||||||||||
Three Months Ended | Six Months Ended June 30, | ||||||||||||||||
(dollars in thousands, except per share amounts) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | ||||||||||||
Numerator: | |||||||||||||||||
Net income | $ | 18,070 | $ | 15,258 | $ | 18,473 | $ | 33,328 | $ | 27,681 | |||||||
Earnings allocated to participating securities (1) | — | — | (11 | ) | — | (16 | ) | ||||||||||
Numerator for earnings per share - basic and diluted | $ | 18,070 | $ | 15,258 | $ | 18,462 | $ | 33,328 | $ | 27,665 | |||||||
Adjusted net income | $ | 18,139 | $ | 18,073 | $ | 18,772 | $ | 36,212 | $ | 38,631 | |||||||
Earnings allocated to participating securities (1) | — | — | (10 | ) | — | (23 | ) | ||||||||||
Numerator for adjusted earnings per share - basic and diluted | $ | 18,139 | $ | 18,073 | $ | 18,762 | $ | 36,212 | $ | 38,608 | |||||||
Denominator: | |||||||||||||||||
Weighted average common shares outstanding | 31,579,457 | 31,662,954 | 31,980,133 | 31,621,205 | 31,481,439 | ||||||||||||
Dilutive effect of outstanding restricted stock units | 87,354 | 140,233 | 99,850 | 113,794 | 84,981 | ||||||||||||
Weighted average common shares outstanding, including all dilutive potential shares | 31,666,811 | 31,803,187 | 32,079,983 | 31,734,999 | 31,566,420 | ||||||||||||
Earnings per share - Basic | $ | 0.57 | $ | 0.48 | $ | 0.58 | $ | 1.05 | $ | 0.88 | |||||||
Earnings per share - Diluted | $ | 0.57 | $ | 0.48 | $ | 0.58 | $ | 1.05 | $ | 0.88 | |||||||
Adjusted earnings per share - Basic | $ | 0.57 | $ | 0.57 | $ | 0.59 | $ | 1.15 | $ | 1.23 | |||||||
Adjusted earnings per share - Diluted | $ | 0.57 | $ | 0.57 | $ | 0.58 | $ | 1.14 | $ | 1.22 |
____________________________________
(1) The Company previously granted restricted stock units that contain non-forfeitable rights to dividend equivalents, which were considered participating securities. Prior to 2024, these restricted stock units were included in the calculation of 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 (Tax-equivalent Basis) and Net Interest Margin (Tax-equivalent Basis) | ||||||||||||||||||||
Three Months Ended | Six Months Ended June 30, | |||||||||||||||||||
(dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | |||||||||||||||
Net interest income (tax-equivalent basis) | ||||||||||||||||||||
Net interest income | $ | 47,028 | $ | 46,688 | $ | 48,872 | $ | 93,716 | $ | 95,709 | ||||||||||
Tax-equivalent adjustment (1) | 553 | 575 | 715 | 1,128 | 1,417 | |||||||||||||||
Net interest income (tax-equivalent basis) (1) | $ | 47,581 | $ | 47,263 | $ | 49,587 | $ | 94,844 | $ | 97,126 | ||||||||||
Net interest margin (tax-equivalent basis) | ||||||||||||||||||||
Net interest margin * | 3.95 | % | 3.94 | % | 4.16 | % | 3.95 | % | 4.18 | % | ||||||||||
Tax-equivalent adjustment * (1) | 0.05 | 0.05 | 0.06 | 0.04 | 0.06 | |||||||||||||||
Net interest margin (tax-equivalent basis) * (1) | 4.00 | % | 3.99 | % | 4.22 | % | 3.99 | % | 4.24 | % | ||||||||||
Average interest-earning assets | $ | 4,785,558 | $ | 4,765,449 | $ | 4,715,897 | $ | 4,775,505 | $ | 4,620,341 |
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- 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 | Six Months Ended June 30, | |||||||||||||||||||
(dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | |||||||||||||||
Efficiency ratio (tax-equivalent basis) | ||||||||||||||||||||
Total noninterest expense | $ | 30,509 | $ | 31,268 | $ | 33,973 | $ | 61,777 | $ | 69,906 | ||||||||||
Less: amortization of intangible assets | 710 | 710 | 720 | 1,420 | 1,230 | |||||||||||||||
Noninterest expense excluding amortization of intangible assets | $ | 29,799 | $ | 30,558 | $ | 33,253 | $ | 60,357 | $ | 68,676 | ||||||||||
Net interest income | $ | 47,028 | $ | 46,688 | $ | 48,872 | $ | 93,716 | $ | 95,709 | ||||||||||
Total noninterest income | 9,610 | 5,626 | 9,914 | 15,236 | 17,351 | |||||||||||||||
Operating revenue | 56,638 | 52,314 | 58,786 | 108,952 | 113,060 | |||||||||||||||
Tax-equivalent adjustment (1) | 553 | 575 | 715 | 1,128 | 1,417 | |||||||||||||||
Operating revenue (tax-equivalent basis) (1) | $ | 57,191 | $ | 52,889 | $ | 59,501 | $ | 110,080 | $ | 114,477 | ||||||||||
Efficiency ratio | 52.61 | % | 58.41 | % | 56.57 | % | 55.40 | % | 60.74 | % | ||||||||||
Efficiency ratio (tax-equivalent basis) (1) | 52.10 | 57.78 | 55.89 | 54.83 | 59.99 |
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(1) On a tax-equivalent basis assuming a federal income tax rate of
Reconciliation of Non-GAAP Financial Measures – Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share | ||||||||||||
(dollars in thousands, except per share data) | June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||
Tangible Common Equity | ||||||||||||
Total stockholders' equity | $ | 509,469 | $ | 496,681 | $ | 450,852 | ||||||
Less: Goodwill | 59,820 | 59,820 | 59,876 | |||||||||
Less: Intangible assets, net | 19,262 | 19,972 | 22,122 | |||||||||
Tangible common equity | $ | 430,387 | $ | 416,889 | $ | 368,854 | ||||||
Tangible Assets | ||||||||||||
Total assets | $ | 5,006,199 | $ | 5,040,510 | $ | 4,975,810 | ||||||
Less: Goodwill | 59,820 | 59,820 | 59,876 | |||||||||
Less: Intangible assets, net | 19,262 | 19,972 | 22,122 | |||||||||
Tangible assets | $ | 4,927,117 | $ | 4,960,718 | $ | 4,893,812 | ||||||
Total stockholders' equity to total assets | 10.18 | % | 9.85 | % | 9.06 | % | ||||||
Tangible common equity to tangible assets | 8.74 | 8.40 | 7.54 | |||||||||
Shares of common stock outstanding | 31,559,366 | 31,612,888 | 31,865,868 | |||||||||
Book value per share | $ | 16.14 | $ | 15.71 | $ | 14.15 | ||||||
Tangible book value per share | 13.64 | 13.19 | 11.58 | |||||||||
Reconciliation of Non-GAAP Financial Measures – Return on Average Tangible Common Equity, Adjusted Return on Average Stockholders' Equity and Adjusted Return on Average Tangible Common Equity | ||||||||||||||||||||
Three Months Ended | Six Months Ended June 30, | |||||||||||||||||||
(dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | |||||||||||||||
Average Tangible Common Equity | ||||||||||||||||||||
Total stockholders' equity | $ | 501,837 | $ | 493,976 | $ | 454,505 | $ | 497,906 | $ | 438,448 | ||||||||||
Less: Goodwill | 59,820 | 59,820 | 59,876 | 59,820 | 54,643 | |||||||||||||||
Less: Intangible assets, net | 19,605 | 20,334 | 22,520 | 19,970 | 19,097 | |||||||||||||||
Average tangible common equity | $ | 422,412 | $ | 413,822 | $ | 372,109 | $ | 418,116 | $ | 364,708 | ||||||||||
Net income | $ | 18,070 | $ | 15,258 | $ | 18,473 | $ | 33,328 | $ | 27,681 | ||||||||||
Adjusted net income | 18,139 | 18,073 | 18,772 | 36,212 | 38,631 | |||||||||||||||
Return on average stockholders' equity * | 14.48 | % | 12.42 | % | 16.30 | % | 13.46 | % | 12.73 | % | ||||||||||
Return on average tangible common equity * | 17.21 | 14.83 | 19.91 | 16.03 | 15.31 | |||||||||||||||
Adjusted return on average stockholders' equity * | 14.54 | % | 14.72 | % | 16.57 | % | 14.63 | % | 17.77 | % | ||||||||||
Adjusted return on average tangible common equity * | 17.27 | 17.57 | 20.23 | 17.42 | 21.36 |
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- Annualized measure.
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