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 $18.1 million, or $0.57 diluted earnings per share, for the second quarter of 2024. This compares to net income of $15.3 million, or $0.48 diluted earnings per share, for the first quarter of 2024, and net income of $18.5 million, or $0.58 diluted earnings per share, for the second quarter of 2023.

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 $18.1 million, a ROAA of 1.45% and ROATCE(1) of 17.21%. In addition, our tangible book value per share of $13.64 has grown 17.8% over the past year. During the quarter, we saw solid loan growth of $39.5 million, or 4.7% on an annualized basis, as well as stability in our core deposit base. We have seen the continued repricing of our loan portfolio and tight management of deposit costs positively impact our net interest margin (tax-equivalent basis)(1) which expanded 1 basis point to 4.00% for the quarter.

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 52.1%. Our loan portfolio is performing well with no apparent signs of concentrated stress in sub portfolios, such as office and retail commercial real estate, while nonperforming assets represented only 0.17% of total assets and net charge-offs were only 0.08% of average loans on an annualized basis for the quarter.”____________________________________(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 second quarter of 2024. This compares to adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the first quarter of 2024, and adjusted net income of $18.8 million, or $0.58 adjusted diluted earnings per share, for the second 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 second quarter of 2024 was $47.0 million, a slight increase of 0.7% from $46.7 million for the first quarter of 2024. The slight increase was primarily attributable to improved asset yields and growth in interest-earning assets which were mostly offset by an increase in funding costs.

Relative to the second quarter of 2023, net interest income decreased 3.8% from $48.9 million. The decrease was primarily attributable to higher funding costs which were partially offset by higher asset yields and an increase in interest-earning assets.

Net interest margin for the second quarter of 2024 was 3.95%, compared to 3.94% for the first quarter of 2024, and net interest margin (tax-equivalent basis)(1) for the second quarter of 2024 was 4.00%, compared to 3.99% for the first quarter of 2024. Higher yields on interest-earning assets, which increased by 5 basis points to 5.28%, were mostly offset by an increase in funding costs, with the cost of funds increasing by 5 basis points to 1.42%.

Relative to the second quarter of 2023, net interest margin decreased 21 basis points from 4.16% and net interest margin (tax-equivalent basis)(1) decreased 22 basis points from 4.22%. 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 second quarter of 2024 was $9.6 million, an increase from $5.6 million for the first quarter of 2024. The increase was primarily attributable to the absence of $3.4 million of losses on sales of securities and $0.6 million of impairment losses related to the closure of two branches recognized during the first quarter of 2024. Additionally, seasonal changes in card income, which increased by $0.3 million, were mostly offset by a $0.2 million decrease in other noninterest income.

Relative to the second quarter of 2023, noninterest income decreased 3.1% from $9.9 million. The decrease was primarily attributable to a $0.2 million change in the mortgage servicing rights fair value adjustment and a $0.2 million decrease in other noninterest income. Partially offsetting these decreases was a $0.3 million increase in wealth management fees, driven by higher values of assets under management during the second quarter of 2024 relative to the second quarter of 2023.

Noninterest Expense

Noninterest expense for the second quarter of 2024 was $30.5 million, a 2.4% decrease from $31.3 million for the first quarter of 2024. The decrease was primarily attributable to a $0.3 million decrease in salaries expense, which included higher vacation accruals and payroll taxes in the first quarter of 2024, a $0.3 million decrease in occupancy expense, and a $0.3 million decrease in data processing expense.

Relative to the second quarter of 2023, noninterest expense decreased 10.2% from $34.0 million. The decrease was primarily attributable to the absence of $0.8 million of legal fees and $0.8 million of accruals related to legal matters previously disclosed as well as the absence of $0.6 million of Town and Country Financial Corporation (“Town and Country”) acquisition-related expenses incurred during the second quarter of 2023. Additionally, the realization of planned cost reductions following the Town and Country core system conversion completed in April 2023 further contributed to the decrease in noninterest expense.

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 EndedJune 30, 2023			Six Months EndedJune 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 $0.5 million of tax expense for a deferred tax asset write-down, primarily as a result of an Illinois tax change. This increased our effective tax rate to 27.6% during the second quarter of 2024 from 25.6% during the first quarter of 2024. We expect this write-down to be earned back over several years through reduced state tax expense.

Loan Portfolio

Total loans outstanding, before allowance for credit losses, were $3.39 billion at June 30, 2024, compared with $3.35 billion at March 31, 2024, and $3.24 billion at June 30, 2023. The $39.5 million increase from March 31, 2024 was primarily attributable to draws on existing construction projects and new construction loans to existing customers. In addition, growth in our municipal, consumer and other portfolio was primarily due to draws on an existing loan to a recurring borrower. The $8.4 million increase in multi-family loans was driven predominately by the completion of projects previously in the construction and land development category.

Deposits

Total deposits were $4.32 billion at June 30, 2024, compared with $4.36 billion at March 31, 2024, and $4.16 billion at June 30, 2023. The $41.9 million decrease from March 31, 2024 was primarily attributable to a $25.8 million decrease in brokered deposits and a $16.1 million decrease in higher cost reciprocal wealth management customer deposits included with money market deposits. Partially offsetting these decreases was a $31.1 million increase in time deposits from a State of Illinois loan matching program, a lower cost source of funding, which totaled $65.0 million as of June 30, 2024.

Asset Quality

Nonperforming loans totaled $8.4 million, or 0.25% of total loans, at June 30, 2024, compared with $9.7 million, or 0.29% of total loans, at March 31, 2024, and $7.5 million, or 0.23% of total loans, at June 30, 2023. Additionally, of the $8.4 million of nonperforming loans held as of June 30, 2024, $2.1 million is either wholly or partially guaranteed by the U.S. government. The $1.2 million decrease in nonperforming loans from March 31, 2024 was primarily attributable to a $0.4 million reduction in nonaccrual one-to-four family residential loans as well as charge-offs.

The Company recorded a provision for credit losses of $1.2 million for the second quarter of 2024. The provision for credit losses primarily reflects a $0.9 million increase in required reserves resulting from changes in economic forecasts and a $0.9 million increase in required reserves driven by increased loan balances and changes within the loan portfolio which were mostly offset by a $0.7 million decrease in specific reserves.

The Company had net charge-offs of $0.7 million, or 0.08% of average loans on an annualized basis, for the second quarter of 2024, compared to net recoveries of $0.2 million, or 0.02% of average loans on an annualized basis, for the first quarter of 2024, and net recoveries of $0.1 million, or 0.01% of average loans on an annualized basis, for the second quarter of 2023. During the second quarter of 2024, net charge-offs were primarily recognized in the commercial and industrial category, which had $0.5 million of net charge-offs, and the multi-family category, which had $0.2 million of net charge-offs.

The Company’s allowance for credit losses was 1.21% of total loans and 484% of nonperforming loans at June 30, 2024, compared with 1.22% of total loans and 423% of nonperforming loans at March 31, 2024. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $4.3 million as of June 30, 2024, compared with $3.8 million as of March 31, 2024.

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 CapitalAdequacy PurposesWith CapitalConversation 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 8.74% as of June 30, 2024, from 8.40% as of March 31, 2024, and tangible book value per share(1) increased by $0.45 to $13.64 as of June 30, 2024, when compared to March 31, 2024.

During the second quarter of 2024, the Company repurchased 53,522 shares of its common stock at a weighted average price of $18.74 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 June 30, 2024, the Company had $10.6 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 June 30, 2024, HBT Financial had total assets of $5.0 billion, total loans of $3.4 billion, and total deposits of $4.3 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 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 ChapmanHBTIR@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

____________________________________

• 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												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 SummaryConsolidated 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 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
	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 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)	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 $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												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 $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. (2)   Assumes a federal income tax rate of 21% and a state tax rate of 9.5%.

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

____________________________________

• 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												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

____________________________________(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)		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

____________________________________

• Annualized measure.