HBT HBT Financial Inc

HBT Financial, Inc. (NASDAQ: HBT) (the “Company” or “HBT Financial” or “HBT”), the holding company for Heartland Bank and Trust Company, today reported net income of $15.3 million, or $0.48 diluted earnings per share, for the first quarter of 2024. This compares to net income of $18.4 million, or $0.58 diluted earnings per share, for the fourth quarter of 2023, and net income of $9.2 million, or $0.30 diluted earnings per share, for the first quarter of 2023.

J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, “This has been an excellent start to 2024 as we continue to show the strength of our franchise. Our profitability remained very strong with an adjusted ROAA(1) of 1.45% and an adjusted ROATCE(1) of 17.57%. Our net interest margin (tax-equivalent basis)(1) was stable at 3.99%, as the increase in funding costs has slowed. Deposits, excluding brokered deposits, increased slightly during the quarter while loans had a small decline. The decrease in loans included the payoff of several loans that had interest rates lower than the current yield on cash, so it did not have a material impact on profitability. Credit quality has remained strong, as evidenced by a net recovery for the quarter and nonperforming loans to total assets still being near a historic low. Despite an increase in interest rates having a negative impact on accumulated other comprehensive income (loss) during the quarter, we saw increases to all capital ratios and an increase to tangible book value per share(1) by $0.29. Tangible book value per share(1) has now grown by $1.74, or 15.2%, since March 31, 2023.”____________________________________(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 $18.1 million, or $0.57 adjusted diluted earnings per share, for the first quarter of 2024. This compares to adjusted net income of $19.3 million, or $0.60 adjusted diluted earnings per share, for the fourth quarter of 2023, and adjusted net income of $19.9 million, or $0.64 adjusted diluted earnings per share, for the first quarter of 2023 (see “Reconciliation of Non-GAAP Financial Measures” tables below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures).

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2024 was $46.7 million, a decrease of 0.8% from $47.1 million for the fourth quarter of 2023. The slight decrease was primarily attributable to an increase in funding costs, which were partially offset by an increase in asset yields. The increase in asset yields was primarily driven by higher cash balances following the sale of $66.8 million of municipal securities as well as higher loan yields. The book yield of the securities sold was 1.87% and the average life was 6.7 years.

Relative to the first quarter of 2023, net interest income decreased 0.3% from $46.8 million. The slight decrease was primarily attributable to an increase in funding costs, which were mostly offset by higher interest-earning asset balances following the Town and Country Financial Corporation (“Town and Country”) merger, which closed on February 1, 2023, and higher yields on interest-earning assets.

Net interest margin for the first quarter of 2024 was 3.94%, compared to 3.93% for the fourth quarter of 2023, and net interest margin (tax-equivalent basis)(1) for the first quarter of 2024 was 3.99%, unchanged from the fourth quarter of 2023. Higher yields on interest-earning assets were offset by higher funding costs with the cost of funds increasing to 1.37% for the first quarter of 2024, compared to 1.26% for the fourth quarter of 2023.

Relative to the first quarter of 2023, net interest margin decreased from 4.20% and net interest margin (tax-equivalent basis)(1) decreased from 4.26%. These decreases were primarily attributable to increases in funding costs outpacing increases in interest-earning asset yields.____________________________________(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 first quarter of 2024 was $5.6 million, a decrease of 38.9% from $9.2 million for the fourth quarter of 2023. The decrease was primarily attributable to $3.4 million in realized losses on the sale of securities during the first quarter of 2024 and $0.6 million of impairment losses on bank premises related to the closure of two branch premises now held for sale. Partially offsetting these losses were changes in the mortgage servicing rights fair value adjustment, with a $0.1 million positive fair value adjustment during the first quarter of 2024 compared to a $1.2 million negative fair value adjustment during the fourth quarter of 2023.

Relative to the first quarter of 2023, noninterest income decreased 24.4% from $7.4 million. The decrease was primarily attributable to the $3.4 million in realized losses on the sales of securities in the first quarter of 2024 compared to $1.0 million in realized losses on the sale of securities in the first quarter of 2023.

Noninterest Expense

Noninterest expense for the first quarter of 2024 was $31.3 million, a 2.9% increase from $30.4 million for the fourth quarter of 2023. The increase was primarily attributable to a $0.9 million increase in salaries, which was impacted by seasonal variations in vacation accruals, annual merit increases that were effective at the beginning of March, and the refresh of annual payroll tax limitations. Additionally, the $0.4 million increase in employee benefit expenses was primarily attributable to higher medical benefit costs.

Relative to the first quarter of 2023, noninterest expense decreased 13.0% from $35.9 million, primarily attributable to the absence of $7.1 million of Town and Country acquisition-related expenses, partially offset by an increase in salaries and benefits expenses.

Acquisition-related expenses recognized during the first quarter of 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 EndedMarch 31, 2023
PROVISION FOR CREDIT LOSSES	$	5,924
NONINTEREST EXPENSE
Salaries		3,518
Data processing		1,855
Marketing and customer relations		14
Legal fees and other noninterest expense		1,753
Total noninterest expense		7,140
Total acquisition-related expenses	$	13,064

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.35 billion at March 31, 2024, compared with $3.40 billion at December 31, 2023 and $3.20 billion at March 31, 2023. The $58.5 million decrease from December 31, 2023 reflected a decrease in line utilization on existing lines of credit by $28.3 million, including $13.2 million drawn by two customers’ lines that paid off shortly after December 31, 2023 and were noted in the previous quarter’s earnings release. Additionally, across the portfolio, early payoffs of loans maturing or repricing beyond 2024 with fixed rates of 4.00% or less totaled $14.4 million. Construction and land development loans decreased by $18.0 million with several completed projects shifting to other loan categories. Although grain elevator loans increased $5.7 million during the first quarter of 2024, seasonal line utilization was significantly lower relative to historical levels.

Deposits

Total deposits were $4.36 billion at March 31, 2024, compared with $4.40 billion at December 31, 2023 and $4.31 billion at March 31, 2023. The $40.9 million decrease from December 31, 2023 was primarily attributable to a $89.1 million decrease in brokered deposits, which was partially offset by the addition of $33.9 million of time deposits from a State of Illinois loan matching program that are a lower cost source of funding.

Asset Quality

Nonperforming loans totaled $9.7 million, or 0.29% of total loans, at March 31, 2024, compared with $7.9 million, or 0.23% of total loans, at December 31, 2023, and $6.5 million, or 0.20% of total loans, at March 31, 2023. Additionally, of the $9.7 million of nonperforming loans held as of March 31, 2024, $2.7 million is either wholly or partially guaranteed by the U.S. government. The $1.8 million increase in nonperforming loans from December 31, 2023 was primarily attributable to the movement of a few commercial and industrial and commercial real estate - owner occupied credits to nonaccrual status.

The Company recorded a provision for credit losses of $0.5 million for the first quarter of 2024. The provision for credit losses primarily reflects a $3.7 million increase in required reserves resulting from changes in qualitative factors, a $2.1 million decrease in required reserves resulting from changes in economic forecasts, a $1.0 million decrease in required reserves driven by a reduction in loan portfolio balances, and a $0.1 million decrease in specific reserve.

The Company had net recoveries of $0.2 million, or 0.02% of average loans on an annualized basis, for the first quarter of 2024, compared to net charge-offs of $0.5 million, or 0.06% of average loans on an annualized basis, for the fourth quarter of 2023, and net recoveries of $0.1 million, or 0.02% of average loans on an annualized basis, for the first quarter of 2023.

The Company’s allowance for credit losses was 1.22% of total loans and 423% of nonperforming loans at March 31, 2024, compared with 1.18% of total loans and 510% of nonperforming loans at December 31, 2023. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $3.8 million as of March 31, 2024, compared with $3.8 million as of December 31, 2023.

Capital

The ratio of tangible common equity to tangible assets(1) increased to 8.40% as of March 31, 2024, from 8.19% as of December 31, 2023, and tangible book value per share(1) increased by $0.29 to $13.19 as of March 31, 2024, when compared to December 31, 2023.

During the first quarter of 2024, the Company repurchased 179,281 shares of its common stock at a weighted average price of $18.93 under its stock repurchase program. The Company’s Board of Directors has authorized the repurchase of up to $15 million of HBT Financial common stock under its stock repurchase program, which is in effect until January 1, 2025. As of March 31, 2024, the Company had $11.6 million remaining under the stock repurchase program.____________________________________(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 March 31, 2024, HBT Financial had total assets of $5.0 billion, total loans of $3.3 billion, and total deposits of $4.4 billion.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), 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 significant rate increases by the Federal Reserve since 2020); (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 ChapmanHBTIR@hbtbank.com(309) 664-4556

HBT Financial, Inc.Unaudited Consolidated Financial Summary
		As of or for the Three Months Ended
(dollars in thousands, except per share data)		March 31,2024				December 31,2023				March 31,2023
Interest and dividend income		$	61,961			$	61,411			$	51,779
Interest expense			15,273				14,327				4,942
Net interest income			46,688				47,084				46,837
Provision for credit losses			527				1,113				6,210
Net interest income after provision for credit losses			46,161				45,971				40,627
Noninterest income			5,626				9,205				7,437
Noninterest expense			31,268				30,387				35,933
Income before income tax expense			20,519				24,789				12,131
Income tax expense			5,261				6,343				2,923
Net income		$	15,258			$	18,446			$	9,208
Earnings per share - Diluted		$	0.48			$	0.58			$	0.30
Adjusted net income (1)		$	18,073			$	19,272			$	19,859
Adjusted earnings per share - Diluted (1)			0.57				0.60				0.64
Book value per share		$	15.71			$	15.44			$	14.02
Tangible book value per share (1)			13.19				12.90				11.45
Shares of common stock outstanding			31,612,888				31,695,828				32,095,370
Weighted average shares of common stock outstanding			31,662,954				31,708,381				30,977,204
SUMMARY RATIOS
Net interest margin *			3.94	%			3.93	%			4.20	%
Net interest margin (tax-equivalent basis) * (1)(2)			3.99				3.99				4.26
Efficiency ratio			58.41	%			52.70	%			65.27	%
Efficiency ratio (tax-equivalent basis) (1)(2)			57.78				52.09				64.43
Loan to deposit ratio			76.73	%			77.35	%			74.13	%
Return on average assets *			1.23	%			1.46	%			0.78	%
Return on average stockholders' equity *			12.42				15.68				8.84
Return on average tangible common equity * (1)			14.83				18.96				10.45
Adjusted return on average assets * (1)			1.45	%			1.53	%			1.69	%
Adjusted return on average stockholders' equity * (1)			14.72				16.38				19.08
Adjusted return on average tangible common equity * (1)			17.57				19.81				22.55
CAPITAL
Total capital to risk-weighted assets			15.79	%			15.33	%			15.11	%
Tier 1 capital to risk-weighted assets			13.77				13.42				13.16
Common equity tier 1 capital ratio			12.44				12.12				11.79
Tier 1 leverage ratio			10.65				10.49				10.29
Total stockholders' equity to total assets			9.85				9.65				8.98
Tangible common equity to tangible assets (1)			8.40				8.19				7.45
ASSET QUALITY
Net charge-offs (recoveries) to average loans			(0.02	)%			0.06	%			(0.02	)%
Allowance for credit losses to loans, before allowance for credit losses			1.22				1.18				1.21
Nonperforming loans to loans, before allowance for credit losses			0.29				0.23				0.20
Nonperforming assets to total assets			0.20				0.17				0.20

* Annualized measure.

(1) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.(2) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

HBT Financial, Inc.Unaudited Consolidated Financial SummaryConsolidated Statements of Income
		Three Months Ended
(dollars in thousands, except per share data)		March 31,2024				December 31,2023				March 31,2023
INTEREST AND DIVIDEND INCOME
Loans, including fees:
Taxable		$	51,926			$	52,060			$	42,159
Federally tax exempt			1,094				1,125				952
Securities:
Taxable			6,250				6,377				6,616
Federally tax exempt			597				888				1,197
Interest-bearing deposits in bank			1,952				786				739
Other interest and dividend income			142				175				116
Total interest and dividend income			61,961				61,411				51,779
INTEREST EXPENSE
Deposits			13,593				11,227				2,374
Securities sold under agreements to repurchase			152				148				38
Borrowings			125				1,534				1,297
Subordinated notes			470				470				470
Junior subordinated debentures issued to capital trusts			933				948				763
Total interest expense			15,273				14,327				4,942
Net interest income			46,688				47,084				46,837
PROVISION FOR CREDIT LOSSES			527				1,113				6,210
Net interest income after provision for credit losses			46,161				45,971				40,627
NONINTEREST INCOME
Card income			2,616				2,717				2,658
Wealth management fees			2,547				2,885				2,338
Service charges on deposit accounts			1,869				2,016				1,871
Mortgage servicing			1,055				1,156				1,099
Mortgage servicing rights fair value adjustment			80				(1,155	)			(624	)
Gains on sale of mortgage loans			298				401				276
Realized gains (losses) on sales of securities			(3,382	)			—				(1,007	)
Unrealized gains (losses) on equity securities			(16	)			221				(22	)
Gains (losses) on foreclosed assets			87				58				(10	)
Gains (losses) on other assets			(635	)			5				—
Income on bank owned life insurance			164				158				115
Other noninterest income			943				743				743
Total noninterest income			5,626				9,205				7,437
NONINTEREST EXPENSE
Salaries			16,657				15,738				19,411
Employee benefits			2,805				2,379				2,335
Occupancy of bank premises			2,582				2,458				2,102
Furniture and equipment			550				655				659
Data processing			2,925				2,565				4,323
Marketing and customer relations			996				1,169				836
Amortization of intangible assets			710				720				510
FDIC insurance			560				575				563
Loan collection and servicing			452				431				278
Foreclosed assets			49				17				61
Other noninterest expense			2,982				3,680				4,855
Total noninterest expense			31,268				30,387				35,933
INCOME BEFORE INCOME TAX EXPENSE			20,519				24,789				12,131
INCOME TAX EXPENSE			5,261				6,343				2,923
NET INCOME		$	15,258			$	18,446			$	9,208
EARNINGS PER SHARE - BASIC		$	0.48			$	0.58			$	0.30
EARNINGS PER SHARE - DILUTED		$	0.48			$	0.58			$	0.30
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING			31,662,954				31,708,381				30,977,204

HBT Financial, Inc.Unaudited Consolidated Financial SummaryConsolidated Balance Sheets
(dollars in thousands)		March 31,2024				December 31,2023				March 31,2023
ASSETS
Cash and due from banks		$	19,989			$	26,256			$	35,244
Interest-bearing deposits with banks			240,223				114,996				141,868
Cash and cash equivalents			260,212				141,252				177,112
Interest-bearing time deposits with banks			515				509				249
Debt securities available-for-sale, at fair value			669,020				759,461				854,622
Debt securities held-to-maturity			517,472				521,439				536,429
Equity securities with readily determinable fair value			3,324				3,360				3,145
Equity securities with no readily determinable fair value			2,622				2,505				1,980
Restricted stock, at cost			5,155				7,160				4,991
Loans held for sale			3,479				2,318				5,130
Loans, before allowance for credit losses			3,345,962				3,404,417				3,195,540
Allowance for credit losses			(40,815	)			(40,048	)			(38,776	)
Loans, net of allowance for credit losses			3,305,147				3,364,369				3,156,764
Bank owned life insurance			24,069				23,905				23,447
Bank premises and equipment, net			64,755				65,150				65,119
Bank premises held for sale			317				—				235
Foreclosed assets			277				852				3,356
Goodwill			59,820				59,820				59,876
Intangible assets, net			19,972				20,682				22,842
Mortgage servicing rights, at fair value			19,081				19,001				19,992
Investments in unconsolidated subsidiaries			1,614				1,614				1,614
Accrued interest receivable			23,117				24,534				20,301
Other assets			60,542				55,239				56,617
Total assets		$	5,040,510			$	5,073,170			$	5,013,821
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing		$	1,047,074			$	1,072,407			$	1,218,888
Interest-bearing			3,313,500				3,329,030				3,091,633
Total deposits			4,360,574				4,401,437				4,310,521
Securities sold under agreements to repurchase			31,864				42,442				34,919
Federal Home Loan Bank advances			12,725				12,623				75,183
Subordinated notes			39,494				39,474				39,415
Junior subordinated debentures issued to capital trusts			52,804				52,789				52,746
Other liabilities			46,368				34,909				50,939
Total liabilities			4,543,829				4,583,674				4,563,723
Stockholders' Equity
Common stock			328				327				327
Surplus			296,054				295,877				294,441
Retained earnings			278,353				269,051				228,782
Accumulated other comprehensive income (loss)			(56,048	)			(57,163	)			(62,175	)
Treasury stock at cost			(22,006	)			(18,596	)			(11,277	)
Total stockholders’ equity			496,681				489,496				450,098
Total liabilities and stockholders’ equity		$	5,040,510			$	5,073,170			$	5,013,821
SHARES OF COMMON STOCK OUTSTANDING			31,612,888				31,695,828				32,095,370

HBT Financial, Inc.Unaudited Consolidated Financial Summary
(dollars in thousands)		March 31,2024				December 31,2023				March 31,2023
LOANS
Commercial and industrial		$	402,206			$	427,800			$	333,013
Commercial real estate - owner occupied			294,967				295,842				317,103
Commercial real estate - non-owner occupied			890,251				880,681				854,024
Construction and land development			345,991				363,983				389,142
Multi-family			421,573				417,923				362,672
One-to-four family residential			485,948				491,508				482,732
Agricultural and farmland			287,205				287,294				243,357
Municipal, consumer, and other			217,821				239,386				213,497
Total loans		$	3,345,962			$	3,404,417			$	3,195,540

(dollars in thousands)		March 31,2024				December 31,2023				March 31,2023
DEPOSITS
Noninterest-bearing deposits		$	1,047,074			$	1,072,407			$	1,218,888
Interest-bearing deposits:
Interest-bearing demand			1,139,172				1,145,092				1,270,454
Money market			802,685				803,381				662,088
Savings			602,739				608,424				738,719
Time			713,142				627,253				420,372
Brokered			55,762				144,880				—
Total interest-bearing deposits			3,313,500				3,329,030				3,091,633
Total deposits		$	4,360,574			$	4,401,437			$	4,310,521

HBT Financial, Inc.Unaudited Consolidated Financial Summary
		Three Months Ended
		March 31, 2024											December 31, 2023											March 31, 2023
(dollars in thousands)		AverageBalance				Interest				Yield/Cost *			AverageBalance				Interest				Yield/Cost *			AverageBalance				Interest				Yield/Cost *
ASSETS
Loans		$	3,371,219			$	53,020			6.33	%		$	3,374,451			$	53,185			6.25	%		$	3,012,320			$	43,111			5.80	%
Securities			1,221,447				6,847			2.25				1,282,773				7,265			2.25				1,411,613				7,813			2.24
Deposits with banks			167,297				1,952			4.69				84,021				786			3.71				92,363				739			3.24
Other			5,486				142			10.40				7,505				175			9.23				7,425				116			6.33
Total interest-earning assets			4,765,449			$	61,961			5.23	%			4,748,750			$	61,411			5.13	%			4,523,721			$	51,779			4.64	%
Allowance for credit losses			(40,238	)										(38,844	)										(33,301	)
Noninterest-earning assets			278,253											292,543											274,870
Total assets		$	5,003,464										$	5,002,449										$	4,765,290
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand		$	1,127,684			$	1,311			0.47	%		$	1,140,438			$	1,228			0.43	%		$	1,230,644			$	458			0.15	%
Money market			812,684				4,797			2.37				684,197				2,885			1.67				634,608				935			0.60
Savings			611,224				443			0.29				610,767				417			0.27				709,862				178			0.10
Time			664,498				5,925			3.59				599,293				4,773			3.16				356,779				803			0.91
Brokered			82,150				1,117			5.47				140,963				1,924			5.42				—				—			—
Total interest-bearing deposits			3,298,240				13,593			1.66				3,175,658				11,227			1.40				2,931,893				2,374			0.33
Securities sold under agreements to repurchase			32,456				152			1.89				34,282				148			1.71				39,619				38			0.38
Borrowings			13,003				125			3.87				114,220				1,534			5.33				113,896				1,297			4.62
Subordinated notes			39,484				470			4.78				39,464				470			4.72				39,403				470			4.83
Junior subordinated debentures issued to capital trusts			52,796				933			7.11				52,782				948			7.13				47,586				763			6.50
Total interest-bearing liabilities			3,435,979			$	15,273			1.79	%			3,416,406			$	14,327			1.66	%			3,172,397			$	4,942			0.63	%
Noninterest-bearing deposits			1,036,402											1,081,795											1,121,365
Noninterest-bearing liabilities			37,107											37,440											49,316
Total liabilities			4,509,488											4,535,641											4,343,078
Stockholders' Equity			493,976											466,808											422,212
Total liabilities and stockholders’ equity		$	5,003,464										$	5,002,449										$	4,765,290
Net interest income/Net interest margin (1)						$	46,688			3.94	%						$	47,084			3.93	%						$	46,837			4.20	%
Tax-equivalent adjustment (2)							575			0.05								666			0.06								702			0.06
Net interest income (tax-equivalent basis)/Net interest margin (tax-equivalent basis) (2) (3)						$	47,263			3.99	%						$	47,750			3.99	%						$	47,539			4.26	%
Net interest rate spread (4)										3.44	%										3.47	%										4.01	%
Net interest-earning assets (5)		$	1,329,470										$	1,332,344										$	1,351,324
Ratio of interest-earning assets to interest-bearing liabilities			1.39											1.39											1.43
Cost of total deposits										1.26	%										1.05	%										0.24	%
Cost of funds										1.37											1.26											0.47

* Annualized measure.

(1) Net interest margin represents net interest income divided by average total interest-earning assets.(2) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.(3) See “Reconciliation of Non-GAAP Financial Measures” below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.(4) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.(5) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

HBT Financial, Inc.Unaudited Consolidated Financial Summary
(dollars in thousands)		March 31,2024				December 31,2023				March 31,2023
NONPERFORMING ASSETS
Nonaccrual		$	9,657			$	7,820			$	6,508
Past due 90 days or more, still accruing			—				37				10
Total nonperforming loans			9,657				7,857				6,518
Foreclosed assets			277				852				3,356
Total nonperforming assets		$	9,934			$	8,709			$	9,874
Nonperforming loans that are wholly or partially guaranteed by the U.S. Government		$	2,676			$	2,641			$	1,997
Allowance for credit losses		$	40,815			$	40,048			$	38,776
Loans, before allowance for credit losses			3,345,962				3,404,417				3,195,540
CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses			1.22	%			1.18	%			1.21	%
Allowance for credit losses to nonaccrual loans			422.65				512.12				595.82
Allowance for credit losses to nonperforming loans			422.65				509.71				594.91
Nonaccrual loans to loans, before allowance for credit losses			0.29				0.23				0.20
Nonperforming loans to loans, before allowance for credit losses			0.29				0.23				0.20
Nonperforming assets to total assets			0.20				0.17				0.20
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets			0.30				0.26				0.31

HBT Financial, Inc.Unaudited Consolidated Financial Summary
		Three Months Ended
(dollars in thousands)		March 31,2024				December 31,2023				March 31,2023
ALLOWANCE FOR CREDIT LOSSES
Beginning balance		$	40,048			$	38,863			$	25,333
Adoption of ASC 326			—				—				6,983
PCD allowance established in acquisition			—				—				1,247
Provision for credit losses			560				1,661				5,101
Charge-offs			(227	)			(626	)			(142	)
Recoveries			434				150				254
Ending balance		$	40,815			$	40,048			$	38,776
Net charge-offs (recoveries)		$	(207	)		$	476			$	(112	)
Average loans			3,371,219				3,374,451				3,012,320
Net charge-offs (recoveries) to average loans *			(0.02	)%			0.06	%			(0.02	)%

* Annualized measure.

		Three Months Ended
(dollars in thousands)		March 31,2024				December 31,2023				March 31,2023
PROVISION FOR CREDIT LOSSES
Loans (1)		$	560			$	1,661			$	5,101
Unfunded lending-related commitments (1)			(33	)			(548	)			509
Debt securities			—				—				600
Total provision for credit losses		$	527			$	1,113			$	6,210

(1) Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.

Reconciliation of Non-GAAP Financial Measures –Adjusted Net Income and Adjusted Return on Average Assets
		Three Months Ended
(dollars in thousands)		March 31,2024				December 31,2023				March 31,2023
Net income		$	15,258			$	18,446			$	9,208
Adjustments:
Acquisition expenses (1)			—				—				(13,064	)
Gains (losses) on closed branch premises			(635	)			—				—
Realized gains (losses) on sales of securities			(3,382	)			—				(1,007	)
Mortgage servicing rights fair value adjustment			80				(1,155	)			(624	)
Total adjustments			(3,937	)			(1,155	)			(14,695	)
Tax effect of adjustments			1,122				329				4,044
Total adjustments after tax effect			(2,815	)			(826	)			(10,651	)
Adjusted net income		$	18,073			$	19,272			$	19,859
Average assets		$	5,003,464			$	5,002,449			$	4,765,290
Return on average assets *			1.23	%			1.46	%			0.78	%
Adjusted return on average assets *			1.45				1.53				1.69

* Annualized measure.

(1) Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.

Reconciliation of Non-GAAP Financial Measures – Adjusted Earnings Per Share — Basic and Diluted
		Three Months Ended
(dollars in thousands, except per share amounts)		March 31,2024				December 31,2023				March 31,2023
Numerator:
Net income		$	15,258			$	18,446			$	9,208
Earnings allocated to participating securities (1)			—				(10	)			(5	)
Numerator for earnings per share - basic and diluted		$	15,258			$	18,436			$	9,203
Adjusted net income		$	18,073			$	19,272			$	19,859
Earnings allocated to participating securities (1)			—				(9	)			(13	)
Numerator for adjusted earnings per share - basic and diluted		$	18,073			$	19,263			$	19,846
Denominator:
Weighted average common shares outstanding			31,662,954				31,708,381				30,977,204
Dilutive effect of outstanding restricted stock units			140,233				139,332				69,947
Weighted average common shares outstanding, including all dilutive potential shares			31,803,187				31,847,713				31,047,151
Earnings per share - Basic		$	0.48			$	0.58			$	0.30
Earnings per share - Diluted		$	0.48			$	0.58			$	0.30
Adjusted earnings per share - Basic		$	0.57			$	0.61			$	0.64
Adjusted earnings per share - Diluted		$	0.57			$	0.60			$	0.64

(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
(dollars in thousands)		March 31,2024				December 31,2023				March 31,2023
Net interest income (tax-equivalent basis)
Net interest income		$	46,688			$	47,084			$	46,837
Tax-equivalent adjustment (1)			575				666				702
Net interest income (tax-equivalent basis) (1)		$	47,263			$	47,750			$	47,539
Net interest margin (tax-equivalent basis)
Net interest margin *			3.94	%			3.93	%			4.20	%
Tax-equivalent adjustment * (1)			0.05				0.06				0.06
Net interest margin (tax-equivalent basis) * (1)			3.99	%			3.99	%			4.26	%
Average interest-earning assets		$	4,765,449			$	4,748,750			$	4,523,721

* Annualized measure.

(1) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measures – Efficiency Ratio (Tax-equivalent Basis)
		Three Months Ended
(dollars in thousands)		March 31,2024				December 31,2023				March 31,2023
Efficiency ratio (tax-equivalent basis)
Total noninterest expense		$	31,268			$	30,387			$	35,933
Less: amortization of intangible assets			710				720				510
Noninterest expense excluding amortization of intangible assets		$	30,558			$	29,667			$	35,423
Net interest income		$	46,688			$	47,084			$	46,837
Total noninterest income			5,626				9,205				7,437
Operating revenue			52,314				56,289				54,274
Tax-equivalent adjustment (1)			575				666				702
Operating revenue (tax-equivalent basis) (1)		$	52,889			$	56,955			$	54,976
Efficiency ratio			58.41	%			52.70	%			65.27	%
Efficiency ratio (tax-equivalent basis) (1)			57.78				52.09				64.43

(1) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.

Reconciliation of Non-GAAP Financial Measures – Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share
(dollars in thousands, except per share data)		March 31,2024				December 31,2023				March 31,2023
Tangible Common Equity
Total stockholders' equity		$	496,681			$	489,496			$	450,098
Less: Goodwill			59,820				59,820				59,876
Less: Intangible assets, net			19,972				20,682				22,842
Tangible common equity		$	416,889			$	408,994			$	367,380
Tangible Assets
Total assets		$	5,040,510			$	5,073,170			$	5,013,821
Less: Goodwill			59,820				59,820				59,876
Less: Intangible assets, net			19,972				20,682				22,842
Tangible assets		$	4,960,718			$	4,992,668			$	4,931,103
Total stockholders' equity to total assets			9.85	%			9.65	%			8.98	%
Tangible common equity to tangible assets			8.40				8.19				7.45
Shares of common stock outstanding			31,612,888				31,695,828				32,095,370
Book value per share		$	15.71			$	15.44			$	14.02
Tangible book value per share			13.19				12.90				11.45

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
(dollars in thousands)		March 31,2024				December 31,2023				March 31,2023
Average Tangible Common Equity
Total stockholders' equity		$	493,976			$	466,808			$	422,212
Less: Goodwill			59,820				59,820				49,352
Less: Intangible assets, net			20,334				21,060				15,635
Average tangible common equity		$	413,822			$	385,928			$	357,225
Net income		$	15,258			$	18,446			$	9,208
Adjusted net income			18,073				19,272				19,859
Return on average stockholders' equity *			12.42	%			15.68	%			8.84	%
Return on average tangible common equity *			14.83				18.96				10.45
Adjusted return on average stockholders' equity *			14.72	%			16.38	%			19.08	%
Adjusted return on average tangible common equity *			17.57				19.81				22.55

* Annualized measure.