Fourth Quarter Highlights

Net income of $17.2 million, or $0.59 per diluted share; return on average assets (ROAA) of 1.60%; return on average stockholders' equity (ROAE) of 18.50%; and return on average tangible common equity (ROATCE)⁽¹⁾ of 20.17%
Adjusted net income⁽¹⁾ of $17.9 million; or $0.62 per diluted share; adjusted ROAA⁽¹⁾ of 1.67%; adjusted ROAE⁽¹⁾ of 19.31%; and adjusted ROATCE⁽¹⁾ of 21.05%
Asset quality remained strong with nonperforming assets to total assets of 0.12%
Net interest margin expanded 45 basis points to 4.10%

(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. 25, 2023 (GLOBE NEWSWIRE) -- HBT Financial, Inc. (NASDAQ:HBT) (the "Company" or "HBT Financial" or "HBT"), the holding company for Heartland Bank and Trust Company, today reported net income of $17.2 million, or $0.59 diluted earnings per share, for the fourth quarter of 2022. This compares to net income of $15.6 million, or $0.54 diluted earnings per share, for the third quarter of 2022, and net income of $13.6 million, or $0.47 diluted earnings per share, for the fourth quarter of 2021.

Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, "We had an excellent fourth quarter to complete 2022, thanks to growth in average earning assets, expanded net interest margin and solid non-interest income, resulting in increased book value and tangible book value per share. We expect to deliver good results again for our shareholders in 2023. We are excited to close the pending merger with Town and Country Financial Corporation (‘Town and Country') during the first quarter, which will add scale and efficiency, generate profitable growth and enhance the long-term value of our company. Town and Country has a long history in their markets and is a high performing bank – we look forward to teaming up to build future success."

"While the economy faces a lot of uncertainty, we are confident in our ability to manage through challenging times. Our bank has a strong foundation, with a proven executive team, an established core deposit base and a conservative, well-diversified loan portfolio."

Adjusted Net Income

In addition to reporting GAAP results, the Company believes adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on sale of closed branch premises, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $17.9 million, or $0.62 adjusted diluted earnings per share, for the fourth quarter of 2022. This compares to adjusted net income of $15.9 million, or $0.55 adjusted diluted earnings per share, for the third quarter of 2022, and adjusted net income of $14.2 million, or $0.49 adjusted diluted earnings per share, for the fourth quarter of 2021 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Cash Dividend

On January 24, 2023, the Company's Board of Directors declared a quarterly cash dividend of $0.17 per share on the Company's common stock (the "Dividend"). The Dividend is payable on February 14, 2023 to shareholders of record as of February 7, 2023. This represents an increase of $0.01 from the previous quarterly dividend of $0.16 per share.

Mr. Drake noted, "We are very pleased that our strong financial performance and capital ratios have enabled us to further increase our quarterly cash dividend while maintaining sufficient capital to support the continued growth of the Company."

Net Interest Income and Net Interest Margin

Net interest income for the fourth quarter of 2022 was $42.2 million, an increase of 12.8% from $37.4 million for the third quarter of 2022. The increase was primarily attributable to higher yields on interest-earning assets, with the yield on loans increasing 70 basis points to 5.61%, while the cost of funds only increased 11 basis points to 0.28%. Contributing to the increased loan interest income were higher nonaccrual interest recoveries which totaled $1.3 million during the fourth quarter of 2022 and $0.1 million during the third quarter of 2022.

Relative to the fourth quarter of 2021, net interest income increased 28.4% from $32.9 million. The increase was primarily attributable to higher yields on interest-earning assets, a more favorable asset mix, and nonaccrual interest recoveries. Partially offsetting these improvements was a decrease in PPP loan fees recognized as loan interest income which totaled $1.6 million during the fourth quarter of 2021. Additionally, nonaccrual interest recoveries totaled $0.5 million during the fourth quarter of 2021.

Net interest margin for the fourth quarter of 2022 was 4.10%, compared to 3.65% for the third quarter of 2022. The increase was primarily attributable to higher yields on interest-earning assets. The contribution of nonaccrual interest recoveries to net interest margin was 13 basis points during the fourth quarter of 2022 and 1 basis point during the third quarter of 2022. Additionally, acquired loan discount accretion contributed 2 basis points to net interest margin during the fourth quarter of 2022 and 2 basis points during the third quarter of 2022.

Relative to the fourth quarter of 2021, net interest margin increased from 3.17%. This increase was primarily attributable to higher yields on interest-earning assets and a more favorable mix of interest-earning assets. Nonaccrual interest recoveries contributed 5 basis points to net interest margin, and acquired loan discount accretion contributed 6 basis points to net interest margin, during the fourth quarter of 2021.

Noninterest Income

Noninterest income for the fourth quarter of 2022 was $7.9 million, a decrease of 4.2% from $8.2 million for the third quarter of 2022. The decrease was primarily attributable to the fourth quarter 2022 results including a negative $0.3 million mortgage servicing rights ("MSR") fair value adjustment, while the third quarter of 2022 included a positive $0.4 million MSR fair value adjustment. Partially offsetting this decline was a $0.4 million increase in wealth management fees, primarily due to increased farmland brokerage service fees.

Relative to the fourth quarter of 2021, noninterest income decreased 15.7% from $9.4 million. The decline was primarily due to a $0.7 million decrease in gains on sale of mortgage loans. Additionally, the fourth quarter of 2021 results included a positive $0.3 million MSR fair value adjustment.

Noninterest Expense

Noninterest expense for the fourth quarter of 2022 was $27.5 million, a 14.6% increase from $24.0 million for the third quarter of 2022. The increase was primarily due to a $2.6 million accrual related to pending legal matters, a $0.5 million increase in salaries expense, and a $0.4 million increase in benefits expense driven by higher medical benefit costs.

Relative to the fourth quarter of 2021, noninterest expense increased 12.8% from $24.4 million, also primarily attributable to the accrual for pending legal matters and increased salaries and benefits expenses.

Loan Portfolio

Total loans outstanding, before allowance for loan losses, were $2.62 billion at December 31, 2022, compared with $2.58 billion at September 30, 2022 and $2.50 billion at December 31, 2021. The $40.3 million increase in total loans from September 30, 2022 was primarily attributable to growth in the multi-family and commercial and industrial categories. The $26.1 million increase in commercial and industrial loans was driven primarily by higher balances on lines of credit across a variety of industries.

Deposits

Total deposits were $3.59 billion at December 31, 2022, compared with $3.64 billion at September 30, 2022 and $3.74 billion at December 31, 2021. The $56.4 million decrease from September 30, 2022 was primarily attributable to lower balances maintained in public funds and business accounts, while balances maintained in retail accounts remained nearly unchanged.

Asset Quality

Nonperforming loans totaled $2.2 million, or 0.08% of total loans, at December 31, 2022, compared with $3.2 million, or 0.12% of total loans, at September 30, 2022, and $2.8 million, or 0.11% of total loans, at December 31, 2021.

The Company recorded a negative provision for loan losses of $0.7 million for the fourth quarter of 2022, compared to a provision for loan losses of $0.4 million for the third quarter of 2022. The negative provision was primarily due to $0.9 million of net recoveries, partially offset by a $0.3 million increase in required reserves, resulting primarily from the increase in loans during the fourth quarter of 2022.

The Company had net recoveries of $0.9 million, or (0.14)% of average loans on an annualized basis, for the fourth quarter of 2022, compared to net charge-offs of $0.1 million, or 0.01% of average loans on an annualized basis, for the third quarter of 2022, and net charge-offs of $0.1 million, or 0.01% of average loans on an annualized basis, for the fourth quarter of 2021.

The Company's allowance for loan losses was 0.97% of total loans and 1,175% of nonperforming loans at December 31, 2022, compared with 0.97% of total loans and 782% of nonperforming loans at September 30, 2022.

On January 1, 2023, the Company adopted ASU 2016-13 (Topic 326), Measurement of Credit Losses on Financial Instruments, commonly referenced as the Current Expected Credit Loss ("CECL") standard. Management is finalizing macroeconomic conditions and forecast assumptions to be used in our CECL model; however, we expect the initial allowance for credit losses and the reserve for unfunded commitments together to be approximately 25% to 50% above the existing allowance for loan loss levels. When finalized, this one-time increase will be recorded, net of tax, as an adjustment to beginning retained earnings. Ongoing impacts of the CECL methodology will be dependent upon changes in economic conditions and forecasts, the credit quality of our loan portfolio, originated and acquired loan portfolio composition, portfolio duration, and other factors.

Stock Repurchase Program

During the fourth quarter of 2022, the Company did not repurchase any shares of its common stock. 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 January 1, 2023. The new Program will be in effect until January 1, 2024 and authorizes the Company to repurchase up to $15 million of its common stock.

Pending Acquisition of Town and Country

On August 23, 2022, HBT and Town and Country, the holding company for Town and Country Bank, jointly announced the signing of a definitive agreement pursuant to which HBT will acquire Town and Country and Town and Country Bank. The acquisition will further enhance HBT's footprint in Central Illinois as well as expand HBT's footprint into metro-east St. Louis. Acquisition-related expenses were $0.6 million during the fourth quarter of 2022 and $0.5 million during the third quarter of 2022. The acquisition is expected to close on February 1, 2023.

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 58 full-service branches. As of December 31, 2022, HBT had total assets of $4.3 billion, total loans of $2.6 billion, and total deposits of $3.6 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, return on average tangible common equity, adjusted net income, adjusted earnings per share, adjusted return on average assets, adjusted return on average stockholders' equity, and adjusted return on average tangible common equity. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the "Reconciliation of Non-GAAP Financial Measures" tables.

Forward-Looking Statements

Readers should note that in addition to the historical information contained herein, this press release contains, and future oral and written statements of the Company and its management may contain, "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or "should," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.

Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics (including the COVID-19 pandemic in the United States), acts of war or other threats thereof, or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the FASB or the PCAOB; (iv) changes in state and federal laws, regulations and governmental policies concerning the Company's general business; (v) changes in interest rates and prepayment rates of the Company's assets (including the impact of LIBOR phase-out); (vi) increased competition in the financial services sector 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) the risk that a condition to closing of the pending Town and Country transaction may not be satisfied, that either party may terminate the merger agreement or that the closing of the pending transaction might be delayed or not occur at all; (xiv) potential adverse reactions or changes to business or employee relationships, including those resulting from the announcement or completion of the transaction; (xv) the diversion of management time on transaction-related issues; (xvi) the ultimate timing, outcome and results of integrating the operations of Town and Country into those of HBT; (xvii) the effects of the merger on HBT's future financial condition, results of operations, strategy and plans; and (xviii) the ability of the Company to manage the risks associated with the foregoing. 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 (the "SEC").

Important Information and Where to Find It

In connection with the proposed transaction, HBT Financial and Town and Country filed a Registration Statement on Form S-4 of HBT Financial that includes a proxy statement of Town and Country and a prospectus of HBT Financial that has been distributed to the stockholders of Town and Country. This document is not a substitute for the proxy statement/prospectus or the Registration Statement or for any other document that HBT Financial or Town and Country may file with the SEC and/or send to Town and Country's stockholders in connection with the proposed transaction. TOWN AND COUNTRY'S STOCKHOLDERS ARE URGED TO READ THE PROXY STATEMENT/PROSPECTUS AND THE REGISTRATION STATEMENT AND ALL OTHER RELEVANT DOCUMENTS FILED BY HBT FINANCIAL OR TOWN AND COUNTRY OR DISTRIBUTED TO TOWN AND COUNTRY STOCKHOLDERS BECAUSE THEY CONTAIN IMPORTANT INFORMATION ABOUT HBT FINANCIAL, TOWN AND COUNTRY AND THE PROPOSED TRANSACTION.

Investors can obtain free copies of the Registration Statement and proxy statement/prospectus, as each may be amended from time to time, and other relevant documents filed by HBT Financial and Town and Country with the SEC through the website maintained by the SEC at www.sec.gov. Copies of documents filed with the SEC by HBT Financial are available free of charge from HBT Financial's website at https://ir.hbtfinancial.com or by contacting HBT Financial's Investor Relations Department at HBTIR@hbtbank.com.

No Offer or Solicitation

This document does not constitute an offer to sell or the solicitation of an offer to subscribe for or buy any securities with respect to the proposed transaction or otherwise, nor shall there be any sale, issuance or transfer of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful.

CONTACT:

Peter Chapman

HBTIR@hbtbank.com

(888) 897-2276

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	As of or for the Three Months Ended											Year Ended
	December 31,				September 30,			December 31,				December 31,
	2022				2022			2021				2022				2021
	(dollars in thousands, except per share data)
Interest and dividend income	$	44,948			$	39,014		$	34,355			$	153,054			$	128,223
Interest expense		2,765				1,624			1,496				7,180				5,820
Net interest income		42,183				37,390			32,859				145,874				122,403
Provision for loan losses		(653	)			386			(843	)			(706	)			(8,077	)
Net interest income after provision for loan losses		42,836				37,004			33,702				146,580				130,480
Noninterest income		7,889				8,234			9,354				34,717				37,328
Noninterest expense		27,510				23,998			24,381				99,507				91,246
Income before income tax expense		23,215				21,240			18,675				81,790				76,562
Income tax expense		6,058				5,613			5,081				21,317				20,291
Net income	$	17,157			$	15,627		$	13,594			$	60,473			$	56,271

Earnings per share - Basic	$	0.60			$	0.54		$	0.47			$	2.09			$	2.02
Earnings per share - Diluted		0.59				0.54			0.47				2.09				2.02

Adjusted net income ⁽¹⁾	$	17,903			$	15,856		$	14,160			$	59,822			$	56,840
Adjusted earnings per share - Basic ⁽¹⁾		0.62				0.55			0.49				2.07				2.04
Adjusted earnings per share - Diluted ⁽¹⁾		0.62				0.55			0.49				2.07				2.04

Book value per share	$	13.13			$	12.49		$	14.21
Tangible book value per share ⁽¹⁾		12.08				11.43			13.13

Shares of common stock outstanding		28,752,626				28,752,626			28,986,061
Weighted average shares of common stock outstanding		28,752,626				28,787,662			29,036,164				28,853,697				27,795,806

SUMMARY RATIOS
Net interest margin *		4.10		%		3.65	%		3.17		%		3.54		%		3.18		%
Net interest margin (tax equivalent basis) * ⁽¹⁾⁽²⁾		4.17				3.72			3.22				3.60				3.23

Efficiency ratio		54.66		%		52.07	%		57.15		%		54.62		%		56.46		%
Efficiency ratio (tax equivalent basis) ⁽¹⁾⁽²⁾		53.91				51.31			56.47				53.87				55.76

Loan to deposit ratio		73.05		%		70.81	%		66.87		%

Return on average assets *		1.60		%		1.47	%		1.26		%		1.42		%		1.41		%
Return on average stockholders' equity *		18.50				16.27			13.15				15.78				14.81
Return on average tangible common equity * ⁽¹⁾		20.17				17.70			14.24				17.15				15.95

Adjusted return on average assets * ⁽¹⁾		1.67		%		1.49	%		1.32		%		1.40		%		1.43		%
Adjusted return on average stockholders' equity * ⁽¹⁾		19.31				16.51			13.70				15.61				14.95
Adjusted return on average tangible common equity * ⁽¹⁾		21.05				17.96			14.83				16.97				16.12

CAPITAL
Total capital to risk-weighted assets		16.45		%		16.34	%		16.88		%
Tier 1 capital to risk-weighted assets		14.41				14.26			14.66
Common equity tier 1 capital ratio		13.25				13.08			13.37
Tier 1 leverage ratio		10.58				10.44			9.84
Total stockholders' equity to total assets		8.83				8.52			9.55
Tangible common equity to tangible assets ⁽¹⁾		8.18				7.85			8.89

ASSET QUALITY
Net charge-offs (recoveries) to average loans, before allowance for loan losses		(0.14	)	%		0.01	%		0.01		%		(0.08	)	%		(0.01	)	%
Allowance for loan losses to loans, before allowance for loan losses		0.97				0.97			0.96
Nonperforming loans to loans, before allowance for loan losses		0.08				0.12			0.11
Nonperforming assets to total assets		0.12				0.14			0.14

* 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 Summary

Consolidated Statements of Income


	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
	2022			2022			2021			2022			2021
INTEREST AND DIVIDEND INCOME	(dollars in thousands, except per share data)
Loans, including fees:
Taxable	$	35,839		$	29,855		$	27,884		$	120,343		$	103,900
Federally tax exempt		952			842			662			3,135			2,384
Securities:
Taxable		6,421			6,635			4,625			23,368			16,948
Federally tax exempt		1,184			1,207			1,017			4,569			4,400
Interest-bearing deposits in bank		504			458			142			1,541			527
Other interest and dividend income		48			17			25			98			64
Total interest and dividend income		44,948			39,014			34,355			153,054			128,223

INTEREST EXPENSE
Deposits		849			587			651			2,511			2,472
Securities sold under agreements to repurchase		10			9			11			36			34
Borrowings		880			85			7			967			9
Subordinated notes		470			470			470			1,879			1,879
Junior subordinated debentures issued to capital trusts		556			473			357			1,787			1,426
Total interest expense		2,765			1,624			1,496			7,180			5,820
Net interest income		42,183			37,390			32,859			145,874			122,403
PROVISION FOR LOAN LOSSES		(653	)		386			(843	)		(706	)		(8,077	)
Net interest income after provision for loan losses		42,836			37,004			33,702			146,580			130,480

NONINTEREST INCOME
Card income		2,642			2,569			2,518			10,329			9,734
Wealth management fees		2,485			2,059			2,371			9,155			8,384
Service charges on deposit accounts		1,701			1,927			1,716			7,072			6,080
Mortgage servicing		593			697			730			2,609			2,825
Mortgage servicing rights fair value adjustment		(293	)		351			265			2,153			1,690
Gains on sale of mortgage loans		194			354			927			1,461			5,846
Unrealized gains (losses) on equity securities		33			(107	)		33			(414	)		107
Gains (losses) on foreclosed assets		(122	)		(225	)		184			(314	)		310
Gains (losses) on other assets		17			(31	)		(4	)		136			(723	)
Income on bank owned life insurance		42			41			41			164			41
Other noninterest income		597			599			573			2,366			3,034
Total noninterest income		7,889			8,234			9,354			34,717			37,328

NONINTEREST EXPENSE
Salaries		13,278			12,752			12,486			51,767			48,972
Employee benefits		2,126			1,771			1,964			8,325			6,513
Occupancy of bank premises		1,893			1,979			1,777			7,673			6,788
Furniture and equipment		633			668			793			2,476			2,676
Data processing		2,167			1,631			2,153			7,441			7,329
Marketing and customer relations		867			880			1,085			3,803			3,376
Amortization of intangible assets		140			243			255			873			1,054
FDIC insurance		276			302			280			1,164			1,043
Loan collection and servicing		278			336			219			1,049			1,317
Foreclosed assets		33			97			204			293			908
Other noninterest expense		5,819			3,339			3,165			14,643			11,270
Total noninterest expense		27,510			23,998			24,381			99,507			91,246
INCOME BEFORE INCOME TAX EXPENSE		23,215			21,240			18,675			81,790			76,562
INCOME TAX EXPENSE		6,058			5,613			5,081			21,317			20,291
NET INCOME	$	17,157		$	15,627		$	13,594		$	60,473		$	56,271

EARNINGS PER SHARE - BASIC	$	0.60		$	0.54		$	0.47		$	2.09		$	2.02
EARNINGS PER SHARE - DILUTED	$	0.59		$	0.54		$	0.47		$	2.09		$	2.02
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING		28,752,626			28,787,662			29,036,164			28,853,697			27,795,806

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Consolidated Balance Sheets


	December 31,			September 30,			December 31,
	2022			2022			2021
	(dollars in thousands)
ASSETS
Cash and due from banks	$	18,970		$	22,169		$	23,387
Interest-bearing deposits with banks		95,189			56,046			385,881
Cash and cash equivalents		114,159			78,215			409,268

Interest-bearing time deposits with banks		—			—			490
Debt securities available-for-sale, at fair value		843,524			853,740			942,168
Debt securities held-to-maturity		541,600			546,694			336,185
Equity securities with readily determinable fair value		3,029			2,996			3,443
Equity securities with no readily determinable fair value		1,977			1,977			1,927
Restricted stock, at cost		7,965			4,050			2,739
Loans held for sale		615			2,297			4,942

Loans, before allowance for loan losses		2,620,253			2,579,928			2,499,689
Allowance for loan losses		(25,333	)		(25,060	)		(23,936	)
Loans, net of allowance for loan losses		2,594,920			2,554,868			2,475,753

Bank owned life insurance		7,557			7,515			7,393
Bank premises and equipment, net		50,469			50,854			52,483
Bank premises held for sale		235			281			1,452
Foreclosed assets		3,030			2,637			3,278
Goodwill		29,322			29,322			29,322
Core deposit intangible assets, net		1,070			1,210			1,943
Mortgage servicing rights, at fair value		10,147			10,440			7,994
Investments in unconsolidated subsidiaries		1,165			1,165			1,165
Accrued interest receivable		19,506			16,881			14,901
Other assets		47,461			48,182			17,408
Total assets	$	4,277,751		$	4,213,324		$	4,314,254

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	994,954		$	1,017,710		$	1,087,659
Interest-bearing		2,592,070			2,625,733			2,650,526
Total deposits		3,587,024			3,643,443			3,738,185

Securities sold under agreements to repurchase		43,081			48,130			61,256
Federal Home Loan Bank advances		160,000			60,000			—
Subordinated notes		39,395			39,376			39,316
Junior subordinated debentures issued to capital trusts		37,780			37,763			37,714
Other liabilities		32,822			25,539			25,902
Total liabilities		3,900,102			3,854,251			3,902,373

Stockholders' Equity
Common stock		293			293			293
Surplus		222,783			222,436			220,891
Retained earnings		236,021			223,495			194,132
Accumulated other comprehensive income (loss)		(71,759	)		(77,462	)		1,471
Treasury stock at cost		(9,689	)		(9,689	)		(4,906	)
Total stockholders' equity		377,649			359,073			411,881
Total liabilities and stockholders' equity	$	4,277,751		$	4,213,324		$	4,314,254

SHARE INFORMATION
Shares of common stock outstanding		28,752,626			28,752,626			28,986,061

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	December 31,		September 30,		December 31,
	2022		2022		2021
	(dollars in thousands)
LOANS
Commercial and industrial	$	266,757	$	240,671	$	286,946
Agricultural and farmland		237,746		245,234		247,796
Commercial real estate - owner occupied		218,503		226,524		234,544
Commercial real estate - non-owner occupied		713,202		718,089		684,023
Multi-family		287,865		260,630		263,911
Construction and land development		360,824		364,290		298,048
One-to-four family residential		338,253		328,667		327,837
Municipal, consumer, and other		197,103		195,823		156,584
Loans, before allowance for loan losses	$	2,620,253	$	2,579,928	$	2,499,689

PPP LOANS (included above)
Commercial and industrial	$	28	$	65	$	28,404
Agricultural and farmland		—		—		913
Municipal, consumer, and other		—		—		171
Total PPP Loans	$	28	$	65	$	29,488


	December 31,		September 30,		December 31,
	2022		2022		2021
	(dollars in thousands)
DEPOSITS
Noninterest-bearing	$	994,954	$	1,017,710	$	1,087,659
Interest-bearing demand		1,139,150		1,131,284		1,105,949
Money market		555,425		584,202		583,198
Savings		634,527		641,139		633,171
Time		262,968		269,108		328,208
Total deposits	$	3,587,024	$	3,643,443	$	3,738,185

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	Three Months Ended
	December 31, 2022							September 30, 2022							December 31, 2021
	Average							Average							Average
	Balance			Interest		Yield/Cost*		Balance			Interest		Yield/Cost*		Balance			Interest		Yield/Cost*
	(dollars in thousands)
ASSETS
Loans	$	2,600,746		$	36,791	5.61	%	$	2,481,920		$	30,697	4.91	%	$	2,432,025		$	28,546	4.66	%
Securities		1,396,401			7,605	2.16			1,470,092			7,842	2.12			1,285,672			5,642	1.74
Deposits with banks		76,507			504	2.61			105,030			458	1.73			392,729			142	0.14
Other		5,607			48	3.37			2,936			17	2.25			4,821			25	2.10
Total interest-earning assets		4,079,261		$	44,948	4.37	%		4,059,978		$	39,014	3.81	%		4,115,247		$	34,355	3.31	%
Allowance for loan losses		(25,404	)						(24,717	)						(24,826	)
Noninterest-earning assets		188,844							173,461							176,242
Total assets	$	4,242,701						$	4,208,722						$	4,266,663

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,125,877		$	177	0.06	%	$	1,137,072		$	144	0.05	%	$	1,061,481		$	145	0.05	%
Money market		572,718			379	0.26			577,388			203	0.14			589,396			158	0.11
Savings		640,668			53	0.03			649,752			53	0.03			630,489			53	0.03
Time		266,117			240	0.36			271,870			187	0.27			322,800			295	0.36
Total interest-bearing deposits		2,605,380			849	0.13			2,636,082			587	0.09			2,604,166			651	0.10
Securities sold under agreements to repurchase		51,703			10	0.08			50,427			9	0.07			56,861			11	0.08
Borrowings		92,120			880	3.79			11,967			85	2.80			5,309			7	0.57
Subordinated notes		39,384			470	4.73			39,365			470	4.73			39,305			470	4.74
Junior subordinated debentures issued to capital trusts		37,770			556	5.84			37,755			473	4.97			37,704			357	3.76
Total interest-bearing liabilities		2,826,357		$	2,765	0.39	%		2,775,596		$	1,624	0.23	%		2,743,345		$	1,496	0.22	%
Noninterest-bearing deposits		1,023,355							1,031,407							1,087,468
Noninterest-bearing liabilities		25,078							20,736							25,660
Total liabilities		3,874,790							3,827,739							3,856,473
Stockholders' Equity		367,911							380,983							410,190
Total liabilities and stockholders' equity	$	4,242,701						$	4,208,722						$	4,266,663

Net interest income/Net interest margin ⁽¹⁾				$	42,183	4.10	%				$	37,390	3.65	%				$	32,859	3.17	%
Tax-equivalent adjustment ⁽²⁾					698	0.07						674	0.07						514	0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis)^{(2) (3)}				$	42,881	4.17	%				$	38,064	3.72	%				$	33,373	3.22	%
Net interest rate spread ⁽⁴⁾						3.98	%						3.58	%						3.09	%
Net interest-earning assets ⁽⁵⁾	$	1,252,904						$	1,284,382						$	1,371,902
Ratio of interest-earning assets to interest-bearing liabilities		1.44							1.46							1.50
Cost of total deposits						0.09	%						0.06	%						0.07	%
Cost of funds						0.28							0.17							0.15

* Annualized measure.

(1)   Net interest margin represents net interest income divided by average total interest-earning assets.

(2)   On a tax-equivalent basis assuming a federal income tax rate of 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


	Year Ended
	December 31, 2022							December 31, 2021
	Average							Average
	Balance			Interest		Yield/Cost		Balance			Interest		Yield/Cost
	(dollars in thousands)
ASSETS
Loans	$	2,514,549		$	123,478	4.91	%	$	2,271,544		$	106,284	4.68	%
Securities		1,403,016			27,937	1.99			1,148,900			21,348	1.86
Deposits with banks		197,030			1,541	0.78			422,828			527	0.12
Other		3,529			98	2.77			3,201			64	2.01
Total interest-earning assets		4,118,124		$	153,054	3.72	%		3,846,473		$	128,223	3.33	%
Allowance for loan losses		(24,703	)						(27,999	)
Noninterest-earning assets		176,427							162,064
Total assets	$	4,269,848						$	3,980,538

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,141,402		$	607	0.05	%	$	1,024,888		$	518	0.05	%
Money market		582,514			813	0.14			521,366			437	0.08
Savings		650,385			208	0.03			595,887			188	0.03
Time		283,232			883	0.31			295,788			1,329	0.45
Total interest-bearing deposits		2,657,533			2,511	0.09			2,437,929			2,472	0.10
Securities sold under agreements to repurchase		51,554			36	0.07			50,104			34	0.07
Borrowings		26,468			967	3.65			1,653			9	0.54
Subordinated notes		39,355			1,879	4.77			39,275			1,879	4.78
Junior subordinated debentures issued to capital trusts		37,746			1,787	4.73			37,680			1,426	3.79
Total interest-bearing liabilities		2,812,656		$	7,180	0.26	%		2,566,641		$	5,820	0.23	%
Noninterest-bearing deposits		1,051,187							1,004,757
Noninterest-bearing liabilities		22,688							29,060
Total liabilities		3,886,531							3,600,458
Stockholders' Equity		383,317							380,080
Total liabilities and stockholders' equity	$	4,269,848							3,980,538

Net interest income/Net interest margin ⁽¹⁾				$	145,874	3.54	%				$	122,403	3.18	%
Tax-equivalent adjustment ⁽²⁾					2,499	0.06						2,028	0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) ^{(2) (3)}				$	148,373	3.60	%				$	124,431	3.23	%
Net interest rate spread ⁽⁴⁾						3.46	%						3.10	%
Net interest-earning assets ⁽⁵⁾	$	1,305,468						$	1,279,832
Ratio of interest-earning assets to interest-bearing liabilities		1.46							1.50
Cost of total deposits						0.07	%						0.07	%
Cost of funds						0.19							0.16

(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


	December 31,			September 30,			December 31,
	2022			2022			2021
	(dollars in thousands)
NONPERFORMING ASSETS
Nonaccrual	$	2,155		$	3,206		$	2,763
Past due 90 days or more, still accruing ⁽¹⁾		1			—			16
Total nonperforming loans		2,156			3,206			2,779
Foreclosed assets		3,030			2,637			3,278
Total nonperforming assets	$	5,186		$	5,843		$	6,057

Allowance for loan losses	$	25,333		$	25,060		$	23,936
Loans, before allowance for loan losses		2,620,253			2,579,928			2,499,689

CREDIT QUALITY RATIOS
Allowance for loan losses to loans, before allowance for loan losses		0.97	%		0.97	%		0.96	%
Allowance for loan losses to nonaccrual loans		1,175.55			781.66			866.30
Allowance for loan losses to nonperforming loans		1,175.00			781.66			861.32
Nonaccrual loans to loans, before allowance for loan losses		0.08			0.12			0.11
Nonperforming loans to loans, before allowance for loan losses		0.08			0.12			0.11
Nonperforming assets to total assets		0.12			0.14			0.14
Nonperforming assets to loans, before allowance for loan losses, and foreclosed assets		0.20			0.23			0.24

(1) Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $145 thousand, $22 thousand, and $32 thousand as of December 31, 2022, September 30, 2022 and December 31, 2021, respectively.


	Three Months Ended												Year Ended
	December 31,				September 30,				December 31,				December 31,
	2022				2022				2021				2022				2021
ALLOWANCE FOR LOAN LOSSES	(dollars in thousands)
Beginning balance	$	25,060			$	24,734			$	24,861			$	23,936			$	31,838
Provision		(653	)			386				(843	)			(706	)			(8,077	)
Charge-offs		(169	)			(222	)			(539	)			(684	)			(1,414	)
Recoveries		1,095				162				457				2,787				1,589
Ending balance	$	25,333			$	25,060			$	23,936			$	25,333			$	23,936

Net charge-offs (recoveries)	$	(926	)		$	60			$	82			$	(2,103	)		$	(175	)
Average loans, before allowance for loan losses		2,600,746				2,481,920				2,432,025				2,514,549				2,271,544

Net charge-offs (recoveries) to average loans, before allowance for loan losses *		(0.14	)	%		0.01		%		0.01		%		(0.08	)	%		(0.01	)	%

* Annualized measure.

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,
	2022				2022				2021				2022				2021
	(dollars in thousands)
Net income	$	17,157			$	15,627			$	13,594			$	60,473			$	56,271
Adjustments:
Acquisition expenses		(630	)			(462	)			(879	)			(1,092	)			(1,416	)
Branch closure expenses		—				—				—				—				(748	)
Gains (losses) on sales of closed branch premises		—				(38	)			—				141				—
Mortgage servicing rights fair value adjustment		(293	)			351				265				2,153				1,690
Total adjustments		(923	)			(149	)			(614	)			1,202				(474	)
Tax effect of adjustments		177				(80	)			48				(551	)			(95	)
Less adjustments, after tax effect		(746	)			(229	)			(566	)			651				(569	)
Adjusted net income	$	17,903			$	15,856			$	14,160			$	59,822			$	56,840

Average assets	$	4,242,701			$	4,208,722			$	4,266,663			$	4,269,848			$	3,980,538

Return on average assets *		1.60		%		1.47		%		1.26		%		1.42		%		1.41		%
Adjusted return on average assets *		1.67				1.49				1.32				1.40				1.43

* 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,
	2022			2022			2021			2022			2021
	(dollars in thousands, except per share data)
Numerator:
Net income	$	17,157		$	15,627		$	13,594		$	60,473		$	56,271
Earnings allocated to participating securities ⁽¹⁾		(20	)		(17	)		(23	)		(71	)		(104	)
Numerator for earnings per share - basic and diluted	$	17,137		$	15,610		$	13,571		$	60,402		$	56,167

Adjusted net income	$	17,903		$	15,856		$	14,160		$	59,822		$	56,840
Earnings allocated to participating securities ⁽¹⁾		(21	)		(17	)		(24	)		(70	)		(105	)
Numerator for adjusted earnings per share - basic and diluted	$	17,882		$	15,839		$	14,136		$	59,752		$	56,735

Denominator:
Weighted average common shares outstanding		28,752,626			28,787,662			29,036,164			28,853,697			27,795,806
Dilutive effect of outstanding restricted stock units		91,905			72,643			27,577			65,619			15,487
Weighted average common shares outstanding, including all dilutive potential shares		28,844,531			28,860,305			29,063,741			28,919,316			27,811,293

Earnings per share - Basic	$	0.60		$	0.54		$	0.47		$	2.09		$	2.02
Earnings per share - Diluted	$	0.59		$	0.54		$	0.47		$	2.09		$	2.02

Adjusted earnings per share - Basic	$	0.62		$	0.55		$	0.49		$	2.07		$	2.04
Adjusted earnings per share - Diluted	$	0.62		$	0.55		$	0.49		$	2.07		$	2.04

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

Reconciliation of Non-GAAP Financial Measures –

Net Interest Income and Net Interest Margin (Tax Equivalent Basis)


	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
	2022			2022			2021			2022			2021
	(dollars in thousands)
Net interest income (tax equivalent basis)
Net interest income	$	42,183		$	37,390		$	32,859		$	145,874		$	122,403
Tax-equivalent adjustment ⁽¹⁾		698			674			514			2,499			2,028
Net interest income (tax equivalent basis) ⁽¹⁾	$	42,881		$	38,064		$	33,373		$	148,373		$	124,431

Net interest margin (tax equivalent basis)
Net interest margin *		4.10	%		3.65	%		3.17	%		3.54	%		3.18	%
Tax-equivalent adjustment * ⁽¹⁾		0.07			0.07			0.05			0.06			0.05
Net interest margin (tax equivalent basis) * ⁽¹⁾		4.17	%		3.72	%		3.22	%		3.60	%		3.23	%

Average interest-earning assets	$	4,079,261		$	4,059,978		$	4,115,247		$	4,118,124		$	3,846,473

* 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,
	2022			2022			2021			2022			2021
	(dollars in thousands)
Efficiency ratio (tax equivalent basis)
Total noninterest expense	$	27,510		$	23,998		$	24,381		$	99,507		$	91,246
Less: amortization of intangible assets		140			243			255			873			1,054
Adjusted noninterest expense	$	27,370		$	23,755		$	24,126		$	98,634		$	90,192

Net interest income	$	42,183		$	37,390		$	32,859		$	145,874		$	122,403
Total noninterest income		7,889			8,234			9,354			34,717			37,328
Operating revenue		50,072			45,624			42,213			180,591			159,731
Tax-equivalent adjustment ⁽¹⁾		698			674			514			2,499			2,028
Operating revenue (tax equivalent basis) ⁽¹⁾	$	50,770		$	46,298		$	42,727		$	183,090		$	161,759

Efficiency ratio		54.66	%		52.07	%		57.15	%		54.62	%		56.46	%
Efficiency ratio (tax equivalent basis) ⁽¹⁾		53.91			51.31			56.47			53.87			55.76

(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,
	2022			2022			2021
	(dollars in thousands, except per share data)
Tangible common equity
Total stockholders' equity	$	377,649		$	359,073		$	411,881
Less: Goodwill		29,322			29,322			29,322
Less: Core deposit intangible assets, net		1,070			1,210			1,943
Tangible common equity	$	347,257		$	328,541		$	380,616

Tangible assets
Total assets	$	4,277,751		$	4,213,324		$	4,314,254
Less: Goodwill		29,322			29,322			29,322
Less: Core deposit intangible assets, net		1,070			1,210			1,943
Tangible assets	$	4,247,359		$	4,182,792		$	4,282,989

Total stockholders' equity to total assets		8.83	%		8.52	%		9.55	%
Tangible common equity to tangible assets		8.18			7.85			8.89

Shares of common stock outstanding		28,752,626			28,752,626			28,986,061

Book value per share	$	13.13		$	12.49		$	14.21
Tangible book value per share		12.08			11.43			13.13

Reconciliation of Non-GAAP Financial Measures –

Return on Average Tangible Common Equity,

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


	Three Months Ended									Year Ended
	December 31,			September 30,			December 31,			December 31,
	2022			2022			2021			2022			2021
	(dollars in thousands)
Average tangible common equity
Total stockholders' equity	$	367,911		$	380,983		$	410,190		$	383,317		$	380,080
Less: Goodwill		29,322			29,322			29,322			29,322			25,057
Less: Core deposit intangible assets, net		1,134			1,356			2,092			1,480			2,333
Average tangible common equity	$	337,455		$	350,305		$	378,776		$	352,515		$	352,690

Net income	$	17,157		$	15,627		$	13,594		$	60,473		$	56,271
Adjusted net income		17,903			15,856			14,160			59,822			56,840

Return on average stockholders' equity *		18.50	%		16.27	%		13.15	%		15.78	%		14.81	%
Return on average tangible common equity *		20.17			17.70			14.24			17.15			15.95

Adjusted return on average stockholders' equity *		19.31	%		16.51	%		13.70	%		15.61	%		14.95	%
Adjusted return on average tangible common equity *		21.05			17.96			14.83			16.97			16.12

* Annualized measure.

HBT Financial, Inc. Announces Fourth Quarter 2022 Financial Results