Fourth Quarter Highlights

Net income of $13.6 million, or $0.47 per diluted share; return on average assets (ROAA) of 1.26%; return on average stockholders' equity (ROAE) of 13.15%; and return on average tangible common equity (ROATCE)⁽¹⁾ of 14.24%
Adjusted net income⁽¹⁾ of $14.2 million; or $0.49 per diluted share; adjusted ROAA⁽¹⁾ of 1.32%; adjusted ROAE⁽¹⁾ of 13.70%; and adjusted ROATCE⁽¹⁾ of 14.83%

(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

BLOOMINGTON, Ill., Jan. 27, 2022 (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 $13.6 million, or $0.47 diluted earnings per share, for the fourth quarter of 2021. This compares to net income of $13.7 million, or $0.50 diluted earnings per share, for the third quarter of 2021, and net income of $12.6 million, or $0.46 diluted earnings per share, for the fourth quarter of 2020.

Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, "Our 2021 performance is the result of strong execution on the strategies that have made HBT Financial a consistently high performing company. We had an exceptionally strong fourth quarter that started with the completion of the NXT Bancorporation acquisition and the expansion of our franchise into Iowa. The larger commercial banking team and presence in new markets provided from this acquisition has had the positive impact on loan growth that we anticipated. Excluding PPP loans, we had 9% organic growth in total loans during the fourth quarter with well-balanced contributions coming from all areas of our lending. The higher level of loan growth enabled us to begin redeploying more of our excess liquidity into higher yielding earning assets, which will positively impact our net interest income and net interest margin going forward. We anticipate delivering another strong performance in 2022 resulting from our loan production capabilities, the accretive benefits of the NXT acquisition, and a balance sheet that is well positioned to benefit from rising interest rates. With the strength of our balance sheet and consistently high level of profitability, we expect to continue returning capital to shareholders through our stock repurchase program and our quarterly cash dividend, which has been increased to $0.16 per share to start 2022."

Adjusted Net Income

In addition to reporting GAAP results, the Company believes adjusted net income and adjusted earnings per share, which adjust for the additional C Corp equivalent tax expense for periods prior to October 11, 2019, acquisition expenses, branch closure expenses, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $14.2 million, or $0.49 adjusted diluted earnings per share, for the fourth quarter of 2021. This compares to adjusted net income of $14.5 million, or $0.53 adjusted diluted earnings per share, for the third quarter of 2021, and adjusted net income of $12.4 million, or $0.45 adjusted diluted earnings per share, for the fourth quarter of 2020 (see "Reconciliation of Non-GAAP Financial Measures" tables).

NXT Bancorporation, Inc. Acquisition

On October 1, 2021, HBT completed its previously announced acquisition of NXT Bancorporation, Inc. (NXT), the holding company for NXT Bank. The acquisition expands HBT's footprint into Eastern Iowa with four locations that began operating as branches of Heartland Bank and Trust Company in December 2021. After considering business combination accounting adjustments, NXT added total assets of $234 million, total loans of $195 million, and total deposits of $182 million.

Cash consideration of $10.6 million and stock consideration of approximately 1.8 million shares of HBT common stock resulted in aggregate consideration of $39.9 million. Goodwill of $5.7 million was recorded in the acquisition.

Acquisition-related expenses totaled $1.4 million during 2021, including $0.9 million during the fourth quarter of 2021 and $0.4 million during the third quarter of 2021. Acquisition-related expenses consisted primarily of investment banker fees, legal fees, and data processing expenses.

Cash Dividend

On January 25, 2022, the Company's Board of Directors declared a quarterly cash dividend of $0.16 per share on the Company's common stock (the "Dividend"). The Dividend is payable on February 15, 2022 to shareholders of record as of February 8, 2022. This represents an increase of $0.01 from the previous quarterly dividend of $0.15 per share.

Mr. Drake noted, "Our strong and consistent financial performance enables us to increase our quarterly cash dividend while maintaining sufficient capital to support our organic and acquisitive growth. Our quarterly dividend remains an important tool for enhancing the total return that we deliver for shareholders, while helping the Company to efficiently manage its capital."

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2021 was $32.9 million, an increase of 7.0% from $30.7 million for the third quarter of 2021. The increase was primarily attributable to an increase in average loans due to the NXT acquisition and organic loan growth. This was partially offset by Paycheck Protection Program ("PPP") loan fees recognized as interest income decreasing to $1.6 million during the fourth quarter of 2021, compared to $3.0 million during the third quarter of 2021.

Relative to the fourth quarter of 2020, net interest income increased $3.7 million, or 12.7%. The increase was primarily attributable to the increase in average interest-earning assets. PPP loan fees recognized as loan interest income were $1.2 million during the fourth quarter of 2020.

Net interest margin for the fourth quarter of 2021 was 3.17%, nearly unchanged from the third quarter of 2021. Lower yields on loans and securities were mostly offset by a more favorable interest-earning asset mix.

Relative to the fourth quarter of 2020, net interest margin decreased from 3.31%. The decrease was primarily due to a less favorable interest-earning asset mix, with increased balances being held in cash and lower-yielding securities.

Noninterest Income

Noninterest income for the fourth quarter of 2021 was $9.4 million, an increase of 11.5% from $8.4 million for the third quarter of 2021. The increase was primarily attributable to the third quarter results including impairment losses of $0.6 million related to our branch rationalization plan which was completed in the third quarter of 2021. Additionally, wealth management fees increased $0.3 million, primarily due to increased fees from farm management services and higher values of assets under management during the fourth quarter of 2021 relative to the third quarter of 2021. Partially offsetting this improvement was a $0.3 million decrease in gains on sale of mortgage loans due to a lower level of mortgage refinancing activity.

Relative to the fourth quarter of 2020, noninterest income decreased 15.7% from $11.1 million, primarily attributable to a $2.1 million decline in gains on sale of mortgage loans due to a lower level of mortgage refinancing activity. Partially offsetting this decline was a $0.4 million increase in card income as a result of increased card transaction volume driven by the full reopening of Illinois following COVID-19 prevention measures.

Noninterest Expense

Noninterest expense for the fourth quarter of 2021 was $24.4 million, an increase of 10.0% from $22.2 million for the third quarter of 2021. The increase was primarily attributable to the NXT acquisition, which contributed to a higher base level of noninterest expense, as well as acquisition-related expenses increasing to $0.9 million during the fourth quarter of 2021 from $0.4 million during the third quarter of 2021.

Relative to the fourth quarter of 2020, noninterest expense increased 7.6% from $22.7 million. The increase was also primarily attributable to the higher base level of noninterest expense following the NXT acquisition and acquisition-related expenses.

Loan Portfolio

Total loans outstanding, before allowance for loan losses, were $2.50 billion at December 31, 2021, compared with $2.15 billion at September 30, 2021 and $2.25 billion at December 31, 2020. The $351.9 million increase in loans from September 30, 2021 included $194.6 million of loans from the NXT acquisition and a $30.3 million reduction in PPP loan balances. Excluding the impact of acquired NXT and PPP loans, loans increased by $187.6 million, or 9.0%, linked quarter with growth across every category led by increases of $58.2 million in construction & land development, $31.1 million in commercial & industrial, $25.8 million in commercial real estate - non-owner occupied, $25.2 million in municipal, consumer, and other, and $21.2 million in multi-family loans.

Deposits

Total deposits were $3.74 billion at December 31, 2021, compared with $3.42 billion at September 30, 2021 and $3.13 billion at December 31, 2020. The $318.6 million increase was primarily attributable to the $181.6 million of deposits acquired from NXT and increased balances held in existing interest-bearing demand and noninterest-bearing accounts.

Asset Quality

Nonperforming loans totaled $2.8 million, or 0.11% of total loans, at December 31, 2021, compared with $5.5 million, or 0.26% of total loans, at September 30, 2021, and $10.0 million, or 0.44% of total loans, at December 31, 2020. The $2.7 million decrease in nonperforming loans from September 30, 2021 was primarily attributable to the partial pay down and return to accrual status of one relationship which totaled $1.8 million at September 30, 2021.

The Company recorded a negative provision for loan losses of $0.8 million for the fourth quarter of 2021, compared to a negative provision for loan losses of $1.7 million for the third quarter of 2021. The negative provision was primarily due to a $0.9 million decrease in specific reserves on loans individually evaluated for impairment.

Net charge-offs for the fourth quarter of 2021 were $82 thousand, or 0.01% of average loans on an annualized basis, compared to net recoveries of $21 thousand, or less than 1 basis point of average loans on an annualized basis, for the third quarter of 2021, and net charge-offs of $0.2 million, or 0.04% of average loans on an annualized basis, for the fourth quarter of 2020.

The Company's allowance for loan losses was 0.96% of total loans and 861.32% of nonperforming loans at December 31, 2021, compared with 1.16% of total loans and 449.73% of nonperforming loans at September 30, 2021.

Capital

At December 31, 2021, the Company exceeded all regulatory capital requirements under Basel III and was considered to be "well-capitalized," as summarized in the following table:


			Well Capitalized
	December 31,		Regulatory
	2021		Requirements
Total capital to risk-weighted assets	16.88	%	10.00	%
Tier 1 capital to risk-weighted assets	14.66	%	8.00	%
Common equity tier 1 capital ratio	13.37	%	6.50	%
Tier 1 leverage ratio	9.84	%	5.00	%
Total stockholders' equity to total assets	9.55	%	N/A
Tangible common equity to tangible assets ⁽¹⁾	8.89	%	N/A

(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.

Stock Repurchase Program

During the fourth quarter of 2021, the Company repurchased 147,383 shares of its common stock at a weighted average price of $17.52 under its stock repurchase program. Purchases were conducted in accordance with Rule 10b-18 and in compliance with Regulation M under the Securities Exchange Act of 1934, as amended. The Company's Board of Directors authorized a new stock repurchase program that took effect upon the expiration of the Company's prior stock repurchase program on December 31, 2021. The new Program will be in effect until January 1, 2023 and authorizes the Company to repurchase up to $15 million of its common stock.

About HBT Financial, Inc.

HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. HBT provides a comprehensive suite of business, commercial, wealth management, and retail banking products and services to individuals, businesses and municipal entities throughout Central and Northeastern Illinois and Eastern Iowa through 61 branches. As of December 31, 2021, HBT had total assets of $4.3 billion, total loans of $2.5 billion, and total deposits of $3.7 billion.

Non-GAAP Financial Measures

Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), tangible common equity to tangible assets, tangible book value per share, adjusted net income, adjusted return on average assets, adjusted return on average stockholders' equity, and adjusted return on average tangible common equity. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the "Reconciliation of Non-GAAP Financial Measures" tables.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release includes "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, including but not limited to statements about the Company's expected benefits, synergies, results and growth resulting from the acquisition of NXT and NXT Bank, and the Company's plans, objectives, future performance, goals, future earnings levels and future loan growth, including as a result of expected improvement in economic conditions with respect to COVID-19. These statements are subject to many risks and uncertainties, that could cause actual results to differ materially from those anticipated in the forward-looking statements. Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: the timing, outcome and results of integrating the operations of NXT into those of HBT; the possibility that expected benefits, synergies and results from the acquisition are delayed or not achieved; the effects of the merger on HBT's future financial condition, results of operations, strategy and plans; potential adverse reactions or changes to customer or employee relationships resulting from the completion of the transaction; the diversion of management time on integration-related issues; the severity, magnitude and duration of the COVID-19 pandemic; the direct and indirect impacts of the COVID-19 pandemic and governmental responses to the pandemic on our operations and our customers' businesses; the continued disruption or worsening of global, national, state and local economies associated with the COVID-19 pandemic, including in connection with inflationary pressures and supply chain constraints, which could affect our capital levels and earnings, impair the ability of our borrowers to repay outstanding loans, impair collateral values and further increase our allowance for credit losses; our asset quality and any loan charge-offs; changes in interest rates and general economic, business and political conditions in the United States generally or in Illinois and Iowa in particular, including in the financial markets; changes in business plans as circumstances warrant; risks relating to other acquisitions; and other risks detailed from time to time in filings made by the Company with the Securities and Exchange Commission. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe" or "continue," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

CONTACT:

Matthew Keating

HBTIR@hbtbank.com

(310) 622-8230

HBT Financial, Inc.

Consolidated Financial Summary

Consolidated Statements of Income


	Three Months Ended								Year Ended
	December 31,			September 30,			December 31,		December 31,
	2021			2021			2020		2021			2020
INTEREST AND DIVIDEND INCOME	(dollars in thousands, except per share data)
Loans, including fees:
Taxable	$	27,884		$	25,604		$	25,497	$	103,900		$	102,893
Federally tax exempt		662			572			555		2,384			2,303
Securities:
Taxable		4,625			4,632			3,407		16,948			13,179
Federally tax exempt		1,017			1,103			1,208		4,400			4,696
Interest-bearing deposits in bank		142			190			65		527			938
Other interest and dividend income		25			14			14		64			56
Total interest and dividend income		34,355			32,115			30,746		128,223			124,065

INTEREST EXPENSE
Deposits		651			564			741		2,472			4,221
Securities sold under agreements to repurchase		11			8			8		34			48
Borrowings		7			1			—		9			2
Subordinated notes		470			470			469		1,879			616
Junior subordinated debentures issued to capital trusts		357			357			364		1,426			1,573
Total interest expense		1,496			1,400			1,582		5,820			6,460
Net interest income		32,859			30,715			29,164		122,403			117,605
PROVISION FOR LOAN LOSSES		(843	)		(1,667	)		430		(8,077	)		10,532
Net interest income after provision for loan losses		33,702			32,382			28,734		130,480			107,073

NONINTEREST INCOME
Card income		2,518			2,509			2,151		9,734			8,087
Service charges on deposit accounts		1,716			1,677			1,527		6,080			5,987
Wealth management fees		2,371			2,036			2,270		8,384			7,237
Mortgage servicing		730			699			803		2,825			2,978
Mortgage servicing rights fair value adjustment		265			40			363		1,690			(2,584	)
Gains on sale of mortgage loans		927			1,257			2,980		5,846			8,835
Gains (losses) on securities		33			28			30		107			33
Gains (losses) on foreclosed assets		184			(14	)		22		310			142
Gains (losses) on other assets		(4	)		(672	)		—		(723	)		(71	)
Income on bank owned life insurance		41			—			—		41			—
Other noninterest income		573			832			946		3,034			3,812
Total noninterest income		9,354			8,392			11,092		37,328			34,456

NONINTEREST EXPENSE
Salaries		12,578			11,988			12,593		49,437			50,616
Employee benefits		2,017			1,500			1,490		6,694			8,045
Occupancy of bank premises		1,777			1,610			1,501		6,788			6,580
Furniture and equipment		793			657			556		2,676			2,447
Data processing		2,153			1,767			1,901		7,329			6,742
Marketing and customer relations		1,085			883			925		3,376			3,476
Amortization of intangible assets		255			252			305		1,054			1,232
FDIC insurance		280			279			231		1,043			707
Loan collection and servicing		219			400			463		1,317			1,755
Foreclosed assets		204			242			154		908			557
Other noninterest expense		3,020			2,589			2,546		10,624			9,799
Total noninterest expense		24,381			22,167			22,665		91,246			91,956
INCOME BEFORE INCOME TAX EXPENSE		18,675			18,607			17,161		76,562			49,573
INCOME TAX EXPENSE		5,081			4,892			4,519		20,291			12,728
NET INCOME	$	13,594		$	13,715		$	12,642	$	56,271		$	36,845

EARNINGS PER SHARE - BASIC	$	0.47		$	0.50		$	0.46	$	2.02		$	1.34
EARNINGS PER SHARE - DILUTED	$	0.47		$	0.50		$	0.46	$	2.02		$	1.34
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING		29,036,164			27,340,926			27,457,306		27,795,806			27,457,306

HBT Financial, Inc.

Consolidated Financial Summary

Consolidated Balance Sheets


	December 31,			September 30,			December 31,
	2021			2021			2020
	(dollars in thousands)
ASSETS
Cash and due from banks	$	23,387		$	36,508		$	24,912
Interest-bearing deposits with banks		385,881			435,421			287,539
Cash and cash equivalents		409,268			471,929			312,451

Interest-bearing time deposits with banks		490			—			—
Debt securities available-for-sale, at fair value		942,168			896,218			922,869
Debt securities held-to-maturity		336,185			318,730			68,395
Equity securities with readily determinable fair value		3,443			3,366			3,292
Equity securities with no readily determinable fair value		1,927			1,867			1,552
Restricted stock, at cost		2,739			2,739			2,498
Loans held for sale		4,942			8,582			14,713

Loans, before allowance for loan losses		2,499,689			2,147,812			2,247,006
Allowance for loan losses		(23,936	)		(24,861	)		(31,838	)
Loans, net of allowance for loan losses		2,475,753			2,122,951			2,215,168

Bank owned life insurance		7,393			—			—
Bank premises and equipment, net		52,483			49,337			52,904
Bank premises held for sale		1,452			1,462			121
Foreclosed assets		3,278			7,315			4,168
Goodwill		29,322			23,620			23,620
Core deposit intangible assets, net		1,943			1,999			2,798
Mortgage servicing rights, at fair value		7,994			7,359			5,934
Investments in unconsolidated subsidiaries		1,165			1,165			1,165
Accrued interest receivable		14,901			13,376			14,255
Other assets		17,408			16,211			20,664
Total assets	$	4,314,254		$	3,948,226		$	3,666,567

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	1,087,659		$	1,003,723		$	882,939
Interest-bearing		2,650,526			2,415,833			2,247,595
Total deposits		3,738,185			3,419,556			3,130,534

Securities sold under agreements to repurchase		61,256			47,957			45,736
Subordinated notes		39,316			39,297			39,238
Junior subordinated debentures issued to capital trusts		37,714			37,698			37,648
Other liabilities		25,902			24,897			49,494
Total liabilities		3,902,373			3,569,405			3,302,650

Stockholders' Equity
Common stock		293			275			275
Surplus		220,891			191,413			190,875
Retained earnings		194,132			184,919			154,614
Accumulated other comprehensive income		1,471			4,537			18,153
Treasury stock at cost		(4,906	)		(2,323	)		—
Total stockholders' equity		411,881			378,821			363,917
Total liabilities and stockholders' equity	$	4,314,254		$	3,948,226		$	3,666,567

SHARE INFORMATION
Shares of common stock outstanding		28,986,061			27,334,428			27,457,306

HBT Financial, Inc.

Consolidated Financial Summary


	December 31,		September 30,		December 31,
	2021		2021		2020
	(dollars in thousands)
LOANS
Commercial and industrial	$	286,946	$	261,763	$	393,312
Agricultural and farmland		247,796		229,718		222,723
Commercial real estate - owner occupied		234,544		203,096		222,360
Commercial real estate - non-owner occupied		684,023		579,860		520,395
Multi-family		263,911		215,245		236,391
Construction and land development		298,048		232,291		225,652
One-to-four family residential		327,837		294,612		306,775
Municipal, consumer, and other		156,584		131,227		119,398
Loans, before allowance for loan losses	$	2,499,689	$	2,147,812	$	2,247,006

PPP LOANS (included above)
Commercial and industrial	$	28,404	$	55,374	$	153,860
Agricultural and farmland		913		3,462		3,049
Municipal, consumer, and other		171		985		6,587
Total PPP Loans	$	29,488	$	59,821	$	163,496


	December 31,		September 30,		December 31,
	2021		2021		2020
	(dollars in thousands)
DEPOSITS
Noninterest-bearing	$	1,087,659	$	1,003,723	$	882,939
Interest-bearing demand		1,105,949		1,013,678		968,592
Money market		583,198		519,343		462,056
Savings		633,171		611,050		517,473
Time		328,208		271,762		299,474
Total deposits	$	3,738,185	$	3,419,556	$	3,130,534

HBT Financial, Inc.

Consolidated Financial Summary


	Three Months Ended
	December 31, 2021							September 30, 2021							December 31, 2020
	Average							Average							Average
	Balance			Interest		Yield/Cost *		Balance			Interest		Yield/Cost *		Balance			Interest		Yield/Cost *
	(dollars in thousands)
ASSETS
Loans	$	2,432,025		$	28,546	4.66	%	$	2,135,476		$	26,176	4.86	%	$	2,295,569		$	26,052	4.51	%
Securities		1,285,672			5,642	1.74			1,180,513			5,735	1.93			932,698			4,615	1.97
Deposits with banks		392,729			142	0.14			513,158			190	0.15			277,363			65	0.09
Other		4,821			25	2.10			2,739			14	2.00			2,498			14	2.26
Total interest-earning assets		4,115,247		$	34,355	3.31	%		3,831,886		$	32,115	3.33	%		3,508,128		$	30,746	3.49	%
Allowance for loan losses		(24,826	)						(26,470	)						(31,749	)
Noninterest-earning assets		176,242							159,635							157,208
Total assets	$	4,266,663						$	3,965,051						$	3,633,587

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,061,481		$	145	0.05	%	$	1,020,216		$	129	0.05	%	$	930,494		$	111	0.05	%
Money market		589,396			158	0.11			510,183			96	0.07			475,183			89	0.07
Savings		630,489			53	0.03			608,436			48	0.03			506,381			39	0.03
Time		322,800			295	0.36			275,224			291	0.42			303,617			502	0.66
Total interest-bearing deposits		2,604,166			651	0.10			2,414,059			564	0.09			2,215,675			741	0.13
Securities sold under agreements to repurchase		56,861			11	0.08			49,923			8	0.06			51,297			8	0.06
Borrowings		5,309			7	0.57			326			1	0.46			326			—	0.51
Subordinated notes		39,305			470	4.74			39,285			470	4.74			39,219			469	4.76
Junior subordinated debentures issued to capital trusts		37,704			357	3.76			37,688			357	3.76			37,638			364	3.84
Total interest-bearing liabilities		2,743,345		$	1,496	0.22	%		2,541,281		$	1,400	0.22	%		2,344,155		$	1,582	0.27	%
Noninterest-bearing deposits		1,087,468							1,016,384							888,390
Noninterest-bearing liabilities		25,660							26,523							41,730
Total liabilities		3,856,473							3,584,188							3,274,275
Stockholders' Equity		410,190							380,863							359,312
Total liabilities and stockholders' equity	$	4,266,663						$	3,965,051						$	3,633,587

Net interest income/Net interest margin ⁽¹⁾				$	32,859	3.17	%				$	30,715	3.18	%				$	29,164	3.31	%
Tax-equivalent adjustment ⁽²⁾					514	0.05						508	0.05						502	0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis)^{(2) (3)}				$	33,373	3.22	%				$	31,223	3.23	%				$	29,666	3.36	%
Net interest rate spread ⁽⁴⁾						3.09	%						3.11	%						3.22	%
Net interest-earning assets ⁽⁵⁾	$	1,371,902						$	1,290,605						$	1,163,973
Ratio of interest-earning assets to interest-bearing liabilities		1.50							1.51							1.50
Cost of total deposits						0.07	%						0.07	%						0.09	%

* 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.

Consolidated Financial Summary


	Year Ended
	December 31, 2021							December 31, 2020
	Average							Average
	Balance			Interest		Yield/Cost *		Balance			Interest		Yield/Cost *
	(dollars in thousands)
ASSETS
Loans	$	2,271,544		$	106,284	4.68	%	$	2,245,093		$	105,196	4.69	%
Securities		1,148,900			21,348	1.86			789,062			17,875	2.27
Deposits with banks		422,828			527	0.12			282,130			938	0.33
Other		3,201			64	2.01			2,479			56	2.28
Total interest-earning assets		3,846,473		$	128,223	3.33	%		3,318,764		$	124,065	3.74	%
Allowance for loan losses		(27,999	)						(27,661	)
Noninterest-earning assets		162,064							156,397
Total assets	$	3,980,538						$	3,447,500

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,024,888		$	518	0.05	%	$	873,060		$	647	0.07	%
Money market		521,366			437	0.08			474,033			697	0.15
Savings		595,887			188	0.03			477,260			196	0.04
Time		295,788			1,329	0.45			317,308			2,681	0.84
Total interest-bearing deposits		2,437,929			2,472	0.10			2,141,661			4,221	0.20
Securities sold under agreements to repurchase		50,104			34	0.07			49,714			48	0.10
Borrowings		1,653			9	0.54			1,080			2	0.22
Subordinated notes		39,275			1,879	4.78			12,869			616	4.79
Junior subordinated debentures issued to capital trusts		37,680			1,426	3.79			37,613			1,573	4.18
Total interest-bearing liabilities		2,566,641		$	5,820	0.23	%		2,242,937		$	6,460	0.29	%
Noninterest-bearing deposits		1,004,757							807,864
Noninterest-bearing liabilities		29,060							45,996
Total liabilities		3,600,458							3,096,797
Stockholders' Equity		380,080							350,703
Total liabilities and stockholders' equity	$	3,980,538							3,447,500

Net interest income/Net interest margin ⁽¹⁾				$	122,403	3.18	%				$	117,605	3.54	%
Tax-equivalent adjustment ⁽²⁾					2,028	0.05						1,943	0.06
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) ^{(2) (3)}				$	124,431	3.23	%				$	119,548	3.60	%
Net interest rate spread ⁽⁴⁾						3.10	%						3.45	%
Net interest-earning assets ⁽⁵⁾	$	1,279,832						$	1,075,827
Ratio of interest-earning assets to interest-bearing liabilities		1.50							1.48
Cost of total deposits						0.07	%						0.14	%

* Annualized measure.

HBT Financial, Inc.

Consolidated Financial Summary


	December 31,			September 30,			December 31,
	2021			2021			2020
	(dollars in thousands)
NONPERFORMING ASSETS
Nonaccrual	$	2,763		$	5,489		$	9,939
Past due 90 days or more, still accruing ⁽¹⁾		16			39			21
Total nonperforming loans		2,779			5,528			9,960
Foreclosed assets		3,278			7,315			4,168
Total nonperforming assets	$	6,057		$	12,843		$	14,128

Allowance for loan losses	$	23,936		$	24,861		$	31,838
Loans, before allowance for loan losses		2,499,689			2,147,812			2,247,006

CREDIT QUALITY RATIOS
Allowance for loan losses to loans, before allowance for loan losses		0.96	%		1.16	%		1.42	%
Allowance for loan losses to nonperforming loans		861.32			449.73			319.66
Nonaccrual loans to loans, before allowance for loan losses		0.11			0.26			0.44
Nonperforming loans to loans, before allowance for loan losses		0.11			0.26			0.44
Nonperforming assets to total assets		0.14			0.33			0.39
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets		0.24			0.60			0.63

(1) Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $32 thousand, $27 thousand, and $0.6 million as of December 31, 2021, September 30, 2021, and December 31, 2020, respectively.


	Three Months Ended												Year Ended
	December 31,				September 30,				December 31,				December 31,
	2021				2021				2020				2021				2020
ALLOWANCE FOR LOAN LOSSES	(dollars in thousands)
Beginning balance	$	24,861			$	26,507			$	31,654			$	31,838			$	22,299
Provision		(843	)			(1,667	)			430				(8,077	)			10,532
Charge-offs		(539	)			(278	)			(509	)			(1,414	)			(2,968	)
Recoveries		457				299				263				1,589				1,975
Ending balance	$	23,936			$	24,861			$	31,838			$	23,936			$	31,838

Net charge-offs (recoveries)	$	82			$	(21	)		$	246			$	(175	)		$	993
Average loans, before allowance for loan losses		2,432,025				2,135,476				2,295,569				2,271,544				2,245,093

Net charge-offs (recoveries) to average loans, before allowance for loan losses *		0.01		%		—		%		0.04		%		(0.01	)	%		0.04		%

* Annualized measure.

HBT Financial, Inc.

Consolidated Financial Summary


	As of or for the Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
	2021			2021			2020			2021			2020
	(dollars in thousands, except per share data)
EARNINGS AND PER SHARE INFORMATION
Net income	$	13,594		$	13,715		$	12,642		$	56,271		$	36,845
Earnings per share - Basic		0.47			0.50			0.46			2.02			1.34
Earnings per share - Diluted		0.47			0.50			0.46			2.02			1.34

Book value per share	$	14.21		$	13.86		$	13.25

Shares of common stock outstanding		28,986,061			27,334,428			27,457,306
Weighted average shares of common stock outstanding		29,036,164			27,340,926			27,457,306			27,795,806			27,457,306

SUMMARY RATIOS
Net interest margin *		3.17	%		3.18	%		3.31	%		3.18	%		3.54	%
Efficiency ratio		57.15			56.04			55.54			56.46			59.66
Loan to deposit ratio		66.87			62.81			71.78

Return on average assets *		1.26	%		1.37	%		1.38	%		1.41	%		1.07	%
Return on average stockholders' equity *		13.15			14.29			14.00			14.81			10.51

NON-GAAP FINANCIAL MEASURES ⁽¹⁾
Adjusted net income	$	14,160		$	14,479		$	12,382		$	56,840		$	39,734
Adjusted earnings per share - Basic		0.49			0.53			0.45			2.04			1.44
Adjusted earnings per share - Diluted		0.49			0.53			0.45			2.04			1.44

Tangible book value per share	$	13.13		$	12.92		$	12.29

Net interest margin (tax equivalent basis) * ⁽²⁾		3.22	%		3.23	%		3.36	%		3.23	%		3.60	%
Efficiency ratio (tax equivalent basis) ⁽²⁾		56.47			55.32			54.86			55.76			58.91

Return on average tangible common equity *		14.24	%		15.32	%		15.12	%		15.95	%		11.38	%

Adjusted return on average assets *		1.32	%		1.45	%		1.36	%		1.43	%		1.15	%
Adjusted return on average stockholders' equity *		13.70			15.08			13.71			14.95			11.33
Adjusted return on average tangible common equity *		14.83			16.18			14.81			16.12			12.28

* Annualized measure.

(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%.

Reconciliation of Non-GAAP Financial Measures –

Adjusted Net Income and Adjusted Return on Average Assets


	Three Months Ended												Year Ended
	December 31,				September 30,				December 31,				December 31,
	2021				2021				2020				2021				2020
	(dollars in thousands)
Net income	$	13,594			$	13,715			$	12,642			$	56,271			$	36,845
Adjustments:
Acquisition expenses		(879	)			(380	)			—				(1,416	)			—
Branch closure expenses		—				(644	)			—				(748	)			—
Charges related to termination of certain employee benefit plans		—				—				—				—				(1,457	)
Mortgage servicing rights fair value adjustment		265				40				363				1,690				(2,584	)
Total adjustments		(614	)			(984	)			363				(474	)			(4,041	)
Tax effect of adjustments		48				220				(103	)			(95	)			1,152
Less adjustments, after tax effect		(566	)			(764	)			260				(569	)			(2,889	)
Adjusted net income	$	14,160			$	14,479			$	12,382			$	56,840			$	39,734

Average assets	$	4,266,663			$	3,965,051			$	3,633,587			$	3,980,538			$	3,447,500

Return on average assets *		1.26		%		1.37		%		1.38		%		1.41		%		1.07		%
Adjusted return on average assets *		1.32				1.45				1.36				1.43				1.15

* Annualized measure.

Reconciliation of Non-GAAP Financial Measures –

Adjusted Earnings Per Share


	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
	2021			2021			2020			2021			2020
	(dollars in thousands, except per share data)
Numerator:
Net income	$	13,594		$	13,715		$	12,642		$	56,271		$	36,845
Earnings allocated to participating securities ⁽¹⁾		(23	)		(25	)		(31	)		(104	)		(93	)
Numerator for earnings per share - basic and diluted	$	13,571		$	13,690		$	12,611		$	56,167		$	36,752

Adjusted net income	$	14,160		$	14,479		$	12,382		$	56,840		$	39,734
Earnings allocated to participating securities ⁽¹⁾		(24	)		(27	)		(32	)		(105	)		(101	)
Numerator for adjusted earnings per share - basic and diluted	$	14,136		$	14,452		$	12,350		$	56,735		$	39,633

Denominator:
Weighted average common shares outstanding		29,036,164			27,340,926			27,457,306			27,795,806			27,457,306
Dilutive effect of outstanding restricted stock units		27,577			13,921			—			15,487			—
Weighted average common shares outstanding, including all dilutive potential shares		29,063,741			27,354,847			27,457,306			27,811,293			27,457,306

Earnings per share - Basic	$	0.47		$	0.50		$	0.46		$	2.02		$	1.34
Earnings per share - Diluted	$	0.47		$	0.50		$	0.46		$	2.02		$	1.34

Adjusted earnings per share - Basic	$	0.49		$	0.53		$	0.45		$	2.04		$	1.44
Adjusted earnings per share - Diluted	$	0.49		$	0.53		$	0.45		$	2.04		$	1.44

(1) The Company has granted certain restricted stock units that contain non-forfeitable rights to dividend equivalents. Such restricted stock units are considered participating securities. As such, we have included these restricted stock units in the calculation of basic earnings per share and calculate basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.

Reconciliation of Non-GAAP Financial Measures –

Net Interest Margin (Tax Equivalent Basis)


	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
	2021			2021			2020			2021			2020
	(dollars in thousands)
Net interest income (tax equivalent basis)
Net interest income	$	32,859		$	30,715		$	29,164		$	122,403		$	117,605
Tax-equivalent adjustment ⁽¹⁾		514			508			502			2,028			1,943
Net interest income (tax equivalent basis) ⁽¹⁾	$	33,373		$	31,223		$	29,666		$	124,431		$	119,548

Net interest margin (tax equivalent basis)
Net interest margin *		3.17	%		3.18	%		3.31	%		3.18	%		3.54	%
Tax-equivalent adjustment * ⁽¹⁾		0.05			0.05			0.05			0.05			0.06
Net interest margin (tax equivalent basis) * ⁽¹⁾		3.22	%		3.23	%		3.36	%		3.23	%		3.60	%

Average interest-earning assets	$	4,115,247		$	3,831,886		$	3,508,128		$	3,846,473		$	3,318,764

* Annualized measure.

(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									Year Ended
	December 31,			September 30,			December 31,			December 31,
	2021			2021			2020			2021			2020
	(dollars in thousands)
Efficiency ratio (tax equivalent basis)
Total noninterest expense	$	24,381		$	22,167		$	22,665		$	91,246		$	91,956
Less: amortization of intangible assets		255			252			305			1,054			1,232
Adjusted noninterest expense	$	24,126		$	21,915		$	22,360		$	90,192		$	90,724

Net interest income	$	32,859		$	30,715		$	29,164		$	122,403		$	117,605
Total noninterest income		9,354			8,392			11,092			37,328			34,456
Operating revenue		42,213			39,107			40,256			159,731			152,061
Tax-equivalent adjustment ⁽¹⁾		514			508			502			2,028			1,943
Operating revenue (tax equivalent basis) ⁽¹⁾	$	42,727		$	39,615		$	40,758		$	161,759		$	154,004

Efficiency ratio		57.15	%		56.04	%		55.54	%		56.46	%		59.66	%
Efficiency ratio (tax equivalent basis) ⁽¹⁾		56.47			55.32			54.86			55.76			58.91

(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 –

Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share


	December 31,			September 30,			December 31,
	2021			2021			2020
	(dollars in thousands, except per share data)
Tangible common equity
Total stockholders' equity	$	411,881		$	378,821		$	363,917
Less: Goodwill		29,322			23,620			23,620
Less: Core deposit intangible assets, net		1,943			1,999			2,798
Tangible common equity	$	380,616		$	353,202		$	337,499

Tangible assets
Total assets	$	4,314,254		$	3,948,226		$	3,666,567
Less: Goodwill		29,322			23,620			23,620
Less: Core deposit intangible assets, net		1,943			1,999			2,798
Tangible assets	$	4,282,989		$	3,922,607		$	3,640,149

Total stockholders' equity to total assets		9.55	%		9.59	%		9.93	%
Tangible common equity to tangible assets		8.89			9.00			9.27

Shares of common stock outstanding		28,986,061			27,334,428			27,457,306

Book value per share	$	14.21		$	13.86		$	13.25
Tangible book value per share		13.13			12.92			12.29

Reconciliation of Non-GAAP Financial Measures –

Adjusted Return on Average Stockholders' Equity and Adjusted Return on Tangible Common Equity


	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
	2021			2021			2020			2021			2020
	(dollars in thousands)
Average tangible common equity
Total stockholders' equity	$	410,190		$	380,863		$	359,312		$	380,080		$	350,703
Less: Goodwill		29,322			23,620			23,620			25,057			23,620
Less: Core deposit intangible assets, net		2,092			2,152			2,979			2,333			3,436
Average tangible common equity	$	378,776		$	355,091		$	332,713		$	352,690		$	323,647

Net income	$	13,594		$	13,715		$	12,642		$	56,271		$	36,845
Adjusted net income		14,160			14,479			12,382			56,840			39,734

Return on average stockholders' equity *		13.15	%		14.29	%		14.00	%		14.81	%		10.51	%
Return on average tangible common equity *		14.24			15.32			15.12			15.95			11.38

Adjusted return on average stockholders' equity *		13.70	%		15.08	%		13.71	%		14.95	%		11.33	%
Adjusted return on average tangible common equity *		14.83			16.18			14.81			16.12			12.28

* Annualized measure.

HBT Financial, Inc. Announces Fourth Quarter 2021 Financial Results