First Quarter Highlights

Net income of $15.2 million, or $0.55 per diluted share; return on average assets (ROAA) of 1.64%; return on average stockholders' equity (ROAE) of 17.01%; and return on average tangible common equity (ROATCE)⁽¹⁾ of 18.33%
Adjusted net income⁽¹⁾ of $14.0 million; or $0.51 per diluted share, adjusted ROAA⁽¹⁾ of 1.51%; adjusted ROAE⁽¹⁾ of 15.65%; and adjusted ROATCE⁽¹⁾ of 16.88%

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

BLOOMINGTON, Ill., April 26, 2021 (GLOBE NEWSWIRE) -- HBT Financial, Inc. (NASDAQ:HBT) (the "Company" or "HBT Financial"), the holding company for Heartland Bank and Trust Company, today reported net income of $15.2 million, or $0.55 diluted earnings per share, for the first quarter of 2021. This compares to net income of $12.6 million, or $0.46 diluted earnings per share, for the fourth quarter of 2020, and net income of $6.2 million, or $0.23 diluted earnings per share, for the first quarter of 2020.

Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, "We delivered strong results for the first quarter of 2021, as our continued healthy asset quality, consistent sources of non-interest income, and disciplined expense control combined to produce a high level of profitability. We remain focused on operating a highly efficient institution. We are executing on expense management initiatives to ensure that we continue to deliver strong performance in a challenging environment for revenue growth. With the vaccine rollout in Illinois progressing and expectations for economic activity to increase across the remainder of the year, we are optimistic that we will have more opportunities to deploy our excess liquidity as loan demand in our markets improves."

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, 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 ("MSR") fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $14.0 million, or $0.51 adjusted diluted earnings per share, for the first quarter of 2021. This compares to adjusted net income of $12.4 million, or $0.45 adjusted diluted earnings per share, for the fourth quarter of 2020, and adjusted net income of $8.4 million, or $0.30 adjusted diluted earnings per share, for the first quarter of 2020 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Net Interest Income and Net Interest Margin

Net interest income for the first quarter of 2021 was $29.1 million, nearly unchanged from $29.2 million for the fourth quarter of 2020. The slight decrease was primarily attributable to lower yields on earning assets which was almost entirely offset by an increase in average balances.

Relative to the first quarter of 2020, net interest income decreased $1.5 million, or 5.0%. The decline was primarily attributable to lower yields on average interest-earning assets.

Net interest margin for the first quarter of 2021 was 3.25%, compared to 3.31% for the fourth quarter of 2020. The decrease was primarily attributable to increases in the average balances of lower yielding securities and deposits with banks, as a result of funds received from the forgiveness of Paycheck Protection Program (PPP) loans and federal economic stimulus received by retail customers. The contribution of acquired loan discount accretion to net interest margin remained low at 1 basis point during the first quarter of 2021 and 2 basis points during the fourth quarter of 2020.

Relative to the first quarter of 2020, net interest margin decreased from 4.03%. The decrease was due primarily to the decline in the average yield on earning assets. The contribution of acquired loan discount accretion to net interest margin was 5 basis points during the first quarter of 2020.

Noninterest Income

Noninterest income for the first quarter of 2021 was $10.8 million, a decrease of 2.6% from $11.1 million for the fourth quarter of 2020. The decrease was primarily attributable to a $0.9 million decrease in gains on sale of mortgage loans as a result of less refinancing activity and normal seasonality. Additionally, wealth management fees decreased $0.3 million, following strong results during the fourth quarter of 2020, and service charges on deposit accounts decreased $0.2 million as a result of lower overdraft incidences. Mostly offsetting these decreases was a positive $1.7 million mortgage servicing rights ("MSR") fair value adjustment included in the first quarter 2021 results, compared to a positive $0.4 million MSR fair value adjustment included in the fourth quarter 2020 results.

Relative to the first quarter of 2020, noninterest income increased 105.8% from $5.3 million, primarily due to the first quarter of 2020 results including a negative $2.2 million MSR fair value adjustment. The $1.7 million increase in noninterest income, net of MSR fair value adjustments, from the first quarter of 2020 was primarily due to a $1.6 million increase in gains on sale of mortgage loans as a result of the strong mortgage refinance environment that started in the second quarter of 2020.

Noninterest Expense

Noninterest expense for the first quarter of 2021 was $22.5 million, nearly unchanged from $22.7 million for the fourth quarter of 2020. Decreases in marketing and data processing expenses were mostly offset by increases in occupancy and employee benefits expenses. Additionally, nonrecurring costs related to systems conversion for the consolidation of State Bank of Lincoln into Heartland Bank and Trust Company were $0.3 million during the first quarter of 2021 and $0.3 million during the fourth quarter of 2020, consisting of primarily data processing expenses.

Relative to the first quarter of 2020, noninterest expense decreased 3.3% from $23.3 million. The decline was primarily attributable to the first quarter of 2020 results including a $0.8 million charge for the supplemental executive retirement plan (SERP) which was terminated in June 2019 and paid out in June 2020.

Branch Rationalization Plan

In April 2021, the Company made plans to close or consolidate six branches during the third quarter of 2021. This branch rationalization plan is expected to result in approximately $0.8 million of pre-tax nonrecurring costs, primarily related to asset impairment charges and severance payments. When fully realized, the Company estimates annual cost savings, net of associated revenue impacts, related to the branch rationalization plan to be approximately $1.1 million.

Mr. Drake commented, "We conducted a comprehensive analysis to determine the appropriate size of our branch network given the increased usage of our online and mobile banking services. The branch rationalization plan will better position our bank for the evolving way that customers access banking services and will drive improved operating efficiencies. We plan to continue investing in technology to offer our customers a superior experience through our digital banking platform, while maintaining an appropriately sized branch network that will ensure that we continue to offer convenient in-person banking services and have a strong presence in our communities."

Loan Portfolio

Total loans outstanding, before allowance for loan losses, were $2.27 billion at March 31, 2021, compared with $2.25 billion at December 31, 2020 and $2.13 billion at March 31, 2020. The $23.7 million increase in loans from December 31, 2020 was primarily attributable to an increase in PPP loans, as originations of second draw PPP loans exceeded the payoffs and paydowns from PPP loan forgiveness. The $52.8 million decrease in total loans outstanding, net of PPP loans, from March 31, 2020 was primarily due to a $40.8 million reduction in balances on existing lines of credit.

Deposits

Total deposits were $3.36 billion at March 31, 2021, compared with $3.13 billion at December 31, 2020 and $2.73 billion at March 31, 2020. The $225.4 million increase in total deposits from December 31, 2020 was primarily due to second draw PPP loan proceeds received by commercial customers and federal economic stimulus payments received by retail customers.

Asset Quality

Nonperforming loans totaled $9.1 million, or 0.40% of total loans, at March 31, 2021, compared with $10.0 million, or 0.44% of total loans, at December 31, 2020, and $15.4 million, or 0.72% of total loans, at March 31, 2020. The decrease in nonperforming loans from December 31, 2020 was primarily attributable to the pay down, pay off, or return to accrual status of several smaller loans. The $6.3 million reduction in nonperforming loans from March 31, 2020 was primarily attributable to the return to accrual status of one agriculture credit that totaled $4.8 million at March 31, 2020.

The Company recorded a negative provision for loan losses of $3.4 million for the first quarter of 2021, compared to a provision for loan losses of $0.4 million for the fourth quarter of 2020. The negative provision was primarily due to changes to qualitative factors reflecting an improved economic environment and improved asset quality metrics, resulting in a $1.8 million decrease in required reserve; a decrease in specific reserves on loans individually evaluated for impairment, resulting in a $1.3 million decrease in required reserves; and a $0.3 million net recovery during the quarter.

Net recoveries for the first quarter of 2021 were $0.3 million, or (0.06)% of average loans on an annualized basis, compared to net charge-offs of $0.2 million, or 0.04% of average loans on an annualized basis, for the fourth quarter of 2020, and net charge-offs of $0.6 million, or 0.11% of average loans on an annualized basis, for the first quarter of 2020.

The Company's allowance for loan losses was 1.27% of total loans and 315.48% of nonperforming loans at March 31, 2021, compared with 1.42% of total loans and 319.66% of nonperforming loans at December 31, 2020.

Capital

At March 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
	March 31,		Regulatory
	2021		Requirements
Total capital to risk-weighted assets	17.37	%	10.00	%
Tier 1 capital to risk-weighted assets	14.65	%	8.00	%
Common equity tier 1 capital ratio	13.19	%	6.50	%
Tier 1 leverage ratio	9.85	%	5.00	%
Total stockholders' equity to total assets	9.25	%	N/A
Tangible common equity to tangible assets ⁽¹⁾	8.63	%	N/A

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

Stock Repurchase Program

During the first quarter of 2021, the Company repurchased 95,462 shares of its common stock at a weighted average price of $15.86 under its stock repurchase program. The Company's Board of Directors authorized the repurchase of up to $15 million of its common stock under its stock repurchase program in effect until December 31, 2021. As of March 31, 2021, the Company had $13.5 million remaining under the current stock repurchase authorization.

Annualization Factor

The method used to calculate annualization factors for interim period ratios changed in the third quarter of 2020 from financial information previously presented. The annualization factor is now calculated using the number of days in the year divided by the number of days in the interim period. Prior to the third quarter of 2020, annualization factors were calculated as 4 divided by the number of quarters in the interim period, or an annualization factor of 4 for a quarterly period. The change was applied retrospectively to all periods presented and did not have a material impact on the annualized interim ratios.

About HBT Financial, Inc.

HBT Financial, Inc. is headquartered in Bloomington, Illinois and is the holding company for Heartland Bank and Trust Company. The bank 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 through 63 branches. As of March 31, 2021, HBT had total assets of $3.9 billion, total loans of $2.3 billion, and total deposits of $3.4 billion. HBT is a longstanding Central Illinois company, with banking roots that can be traced back to 1920.

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), originated loans and acquired loans and any ratios derived therefrom, 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 plans, objectives, future performance, goals, future earnings levels, and future loan growth. 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 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 disruption of global, national, state and local economies associated with the COVID-19 pandemic, 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 in particular, including in the financial markets; changes in business plans as circumstances warrant; risks relating to 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
	March 31,			December 31,		March 31,
	2021			2020		2020
INTEREST AND DIVIDEND INCOME	(dollars in thousands, except per share data)
Loans, including fees:
Taxable	$	25,134		$	25,497	$	26,941
Federally tax exempt		610			555		674
Securities:
Taxable		3,633			3,407		3,334
Federally tax exempt		1,136			1,208		1,028
Interest-bearing deposits in bank		80			65		729
Other interest and dividend income		13			14		14
Total interest and dividend income		30,606			30,746		32,720

INTEREST EXPENSE
Deposits		644			741		1,595
Securities sold under agreements to repurchase		7			8		20
Borrowings		1			—		—
Subordinated notes		470			469		—
Junior subordinated debentures issued to capital trusts		355			364		443
Total interest expense		1,477			1,582		2,058
Net interest income		29,129			29,164		30,662
PROVISION FOR LOAN LOSSES		(3,405	)		430		4,355
Net interest income after provision for loan losses		32,534			28,734		26,307

NONINTEREST INCOME
Card income		2,258			2,151		1,792
Service charges on deposit accounts		1,297			1,527		1,834
Wealth management fees		1,972			2,270		1,814
Mortgage servicing		685			803		724
Mortgage servicing rights fair value adjustment		1,695			363		(2,171	)
Gains on sale of mortgage loans		2,100			2,980		536
Gains (losses) on securities		40			30		(52	)
Gains (losses) on foreclosed assets		(76	)		22		35
Gains (losses) on other assets		1			—		(3	)
Other noninterest income		836			946		743
Total noninterest income		10,808			11,092		5,252

NONINTEREST EXPENSE
Salaries		12,596			12,593		12,754
Employee benefits		1,722			1,490		2,434
Occupancy of bank premises		1,938			1,501		1,828
Furniture and equipment		623			556		603
Data processing		1,688			1,901		1,586
Marketing and customer relations		565			925		1,044
Amortization of intangible assets		289			305		317
FDIC insurance		240			231		36
Loan collection and servicing		365			463		348
Foreclosed assets		143			154		89
Other noninterest expense		2,375			2,546		2,268
Total noninterest expense		22,544			22,665		23,307
INCOME BEFORE INCOME TAX EXPENSE		20,798			17,161		8,252
INCOME TAX EXPENSE		5,553			4,519		2,031
NET INCOME	$	15,245		$	12,642	$	6,221


EARNINGS PER SHARE - BASIC	$	0.55		$	0.46	$	0.23
EARNINGS PER SHARE - DILUTED	$	0.55		$	0.46	$	0.23
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING		27,430,912			27,457,306		27,457,306

HBT Financial, Inc.

Consolidated Financial Summary

Consolidated Balance Sheets


	March 31,			December 31,			March 31,
	2021			2020			2020
	(dollars in thousands)
ASSETS
Cash and due from banks	$	22,976		$	24,912		$	34,782
Interest-bearing deposits with banks		406,760			287,539			230,654
Cash and cash equivalents		429,736			312,451			265,436

Debt securities available-for-sale, at fair value		856,835			922,869			615,565
Debt securities held-to-maturity		192,994			68,395			79,741
Equity securities with readily determinable fair value		3,332			3,292			3,207
Equity securities with no readily determinable fair value		1,552			1,552			1,552
Restricted stock, at cost		2,498			2,498			2,425
Loans held for sale		12,882			14,713			4,805

Loans, before allowance for loan losses		2,270,705			2,247,006			2,132,952
Allowance for loan losses		(28,759	)		(31,838	)		(26,087	)
Loans, net of allowance for loan losses		2,241,946			2,215,168			2,106,865

Bank premises and equipment, net		52,548			52,904			54,135
Bank premises held for sale		121			121			121
Foreclosed assets		4,748			4,168			4,469
Goodwill		23,620			23,620			23,620
Core deposit intangible assets, net		2,509			2,798			3,713
Mortgage servicing rights, at fair value		7,629			5,934			6,347
Investments in unconsolidated subsidiaries		1,165			1,165			1,165
Accrued interest receivable		12,718			14,255			12,096
Other assets		18,781			20,664			27,847
Total assets	$	3,865,614		$	3,666,567		$	3,213,109

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	968,991		$	882,939		$	676,341
Interest-bearing		2,386,975			2,247,595			2,053,962
Total deposits		3,355,966			3,130,534			2,730,303

Securities sold under agreements to repurchase		41,976			45,736			40,811
Subordinated notes		39,257			39,238			—
Junior subordinated debentures issued to capital trusts		37,665			37,648			37,599
Other liabilities		33,344			49,494			64,583
Total liabilities		3,508,208			3,302,650			2,873,296

Stockholders' Equity
Common stock		275			275			275
Surplus		191,004			190,875			190,591
Retained earnings		165,735			154,614			136,378
Accumulated other comprehensive income		1,906			18,153			12,569
Treasury stock at cost		(1,514	)		—			—
Total stockholders' equity		357,406			363,917			339,813
Total liabilities and stockholders' equity	$	3,865,614		$	3,666,567		$	3,213,109

SHARE INFORMATION
Shares of common stock outstanding		27,382,069			27,457,306			27,457,306

HBT Financial, Inc.

Consolidated Financial Summary


	March 31,		December 31,		March 31,
	2021		2020		2020
	(dollars in thousands)
LOANS
Commercial and industrial	$	412,812	$	393,312	$	299,266
Agricultural and farmland		228,032		222,723		228,701
Commercial real estate - owner occupied		224,599		222,360		229,608
Commercial real estate - non-owner occupied		516,963		520,395		540,515
Multi-family		236,381		236,391		177,172
Construction and land development		215,375		225,652		232,311
One-to-four family residential		300,768		306,775		313,925
Municipal, consumer, and other		135,775		119,398		111,454
Loans, before allowance for loan losses	$	2,270,705	$	2,247,006	$	2,132,952

PPP LOANS (included above)
Commercial and industrial	$	175,389	$	153,860	$	—
Agricultural and farmland		8,921		3,049		—
Municipal, consumer, and other		6,249		6,587		—
Total PPP Loans	$	190,559	$	163,496	$	—


	March 31,		December 31,		March 31,
	2021		2020		2020
	(dollars in thousands)
DEPOSITS
Noninterest-bearing	$	968,991	$	882,939	$	676,341
Interest-bearing demand		1,008,954		968,592		810,074
Money market		499,088		462,056		472,532
Savings		593,472		517,473		444,137
Time		285,461		299,474		327,219
Total deposits	$	3,355,966	$	3,130,534	$	2,730,303

HBT Financial, Inc.

Consolidated Financial Summary


	Three Months Ended
	March 31, 2021							December 31, 2020							March 31, 2020
	Average							Average							Average
	Balance			Interest		Yield/Cost *		Balance			Interest		Yield/Cost *		Balance			Interest		Yield/Cost *
	(dollars in thousands)
ASSETS
Loans	$	2,284,159		$	25,744	4.57	%	$	2,295,569		$	26,052	4.51	%	$	2,141,031		$	27,615	5.19	%
Securities		1,004,877			4,769	1.92			932,698			4,615	1.97			668,572			4,362	2.62
Deposits with banks		345,915			80	0.09			277,363			65	0.09			251,058			729	1.17
Other		2,498			13	2.04			2,498			14	2.26			2,425			14	2.38
Total interest-earning assets		3,637,449		$	30,606	3.41	%		3,508,128		$	30,746	3.49	%		3,063,086		$	32,720	4.30	%
Allowance for loan losses		(31,856	)						(31,749	)						(22,474	)
Noninterest-earning assets		155,622							157,208							148,131
Total assets	$	3,761,215						$	3,633,587						$	3,188,743

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	997,720		$	117	0.05	%	$	930,494		$	111	0.05	%	$	811,866		$	251	0.12	%
Money market		482,385			89	0.07			475,183			89	0.07			464,124			394	0.34
Savings		541,896			41	0.03			506,381			39	0.03			434,276			70	0.06
Time		294,172			397	0.55			303,617			502	0.66			341,770			880	1.04
Total interest-bearing deposits		2,316,173			644	0.11			2,215,675			741	0.13			2,052,036			1,595	0.31
Securities sold under agreements to repurchase		46,348			7	0.06			51,297			8	0.06			41,968			20	0.19
Borrowings		500			1	0.44			326			—	0.51			221			—	0.52
Subordinated notes		39,245			470	4.85			39,219			469	4.76			—			—	—
Junior subordinated debentures issued to capital trusts		37,655			355	3.83			37,638			364	3.84			37,589			443	4.74
Total interest-bearing liabilities		2,439,921		$	1,477	0.25	%		2,344,155		$	1,582	0.27	%		2,131,814		$	2,058	0.39	%
Noninterest-bearing deposits		920,514							888,390							670,714
Noninterest-bearing liabilities		37,223							41,730							44,696
Total liabilities		3,397,658							3,274,275							2,847,224
Stockholders' Equity		363,557							359,312							341,519
Total liabilities and stockholders' equity	$	3,761,215						$	3,633,587						$	3,188,743

Net interest income/Net interest margin ⁽³⁾				$	29,129	3.25	%				$	29,164	3.31	%				$	30,662	4.03	%
Tax-equivalent adjustment ⁽²⁾					503	0.05						502	0.05						463	0.06
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis)^{(1) (2)}				$	29,632	3.30	%				$	29,666	3.36	%				$	31,125	4.09	%
Net interest rate spread ⁽⁴⁾						3.16	%						3.22	%						3.91	%
Net interest-earning assets ⁽⁵⁾	$	1,197,528						$	1,163,973						$	931,272
Ratio of interest-earning assets to interest-bearing liabilities		1.49							1.50							1.44
Cost of total deposits						0.08	%						0.09	%						0.24	%

* Annualized measure.

(1)	See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most comparable GAAP financial measures.
(2)	On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3)	Net interest margin represents net interest income divided by average total interest-earning assets.
(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


	March 31,			December 31,			March 31,
	2021			2020			2020
	(dollars in thousands)
NONPERFORMING ASSETS
Nonaccrual	$	9,106		$	9,939		$	15,372
Past due 90 days or more, still accruing ⁽¹⁾		10			21			—
Total nonperforming loans		9,116			9,960			15,372
Foreclosed assets		4,748			4,168			4,469
Total nonperforming assets	$	13,864		$	14,128		$	19,841

NONPERFORMING ASSETS (Originated)⁽²⁾
Nonaccrual	$	2,101		$	2,908		$	10,041
Past due 90 days or more, still accruing		10			21			—
Total nonperforming loans (originated)		2,111			2,929			10,041
Foreclosed assets		737			674			965
Total nonperforming assets (originated)	$	2,848		$	3,603		$	11,006

NONPERFORMING ASSETS (Acquired)⁽²⁾
Nonaccrual	$	7,005		$	7,031		$	5,331
Past due 90 days or more, still accruing ⁽¹⁾		—			—			—
Total nonperforming loans (acquired)		7,005			7,031			5,331
Foreclosed assets		4,011			3,494			3,504
Total nonperforming assets (acquired)	$	11,016		$	10,525		$	8,835

Allowance for loan losses	$	28,759		$	31,838		$	26,087

Loans, before allowance for loan losses	$	2,270,705		$	2,247,006		$	2,132,952
Loans, before allowance for loan losses (originated)⁽²⁾		2,156,095			2,126,323			1,982,067
Loans, before allowance for loan losses (acquired) ⁽²⁾		114,610			120,683			150,885

CREDIT QUALITY RATIOS
Allowance for loan losses to loans, before allowance for loan losses		1.27	%		1.42	%		1.22	%
Allowance for loan losses to nonperforming loans		315.48			319.66			169.70
Nonperforming loans to loans, before allowance for loan losses		0.40			0.44			0.72
Nonperforming assets to total assets		0.36			0.39			0.62
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets		0.61			0.63			0.93

CREDIT QUALITY RATIOS (Originated)⁽²⁾
Nonperforming loans to loans, before allowance for loan losses		0.10	%		0.14	%		0.51	%
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets		0.13			0.17			0.56

CREDIT QUALITY RATIOS (Acquired) ⁽²⁾
Nonperforming loans to loans, before allowance for loan losses		6.11	%		5.83	%		3.53	%
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets		9.29			8.48			5.72

(1)

Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $29 thousand, $0.6 million, and $0.3 million as of March 31, 2021, December 31, 2020, and March 31, 2020, respectively.

(2)

Originated loans and acquired loans along with the related credit quality ratios such as nonperforming loans to loans, before allowance for loan losses (originated and acquired) and nonperforming assets to loans, before allowance for loan losses and foreclosed assets (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company's underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by the Company. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company's policies and procedures.

HBT Financial, Inc.

Consolidated Financial Summary


	Three Months Ended
	March 31,				December 31,				March 31,
	2021				2020				2020
ALLOWANCE FOR LOAN LOSSES	(dollars in thousands)
Beginning balance	$	31,838			$	31,654			$	22,299
Provision		(3,405	)			430				4,355
Charge-offs		(195	)			(509	)			(1,221	)
Recoveries		521				263				654
Ending balance	$	28,759			$	31,838			$	26,087

Net charge-offs (recoveries)	$	(326	)		$	246			$	567
Net charge-offs (recoveries) - (originated) ⁽¹⁾		(320	)			190				172
Net charge-offs (recoveries) - (acquired)⁽¹⁾		(6	)			56				395

Average loans, before allowance for loan losses	$	2,284,159			$	2,295,569			$	2,141,031
Average loans, before allowance for loan losses (originated) ⁽¹⁾		2,166,079				2,169,256				1,984,066
Average loans, before allowance for loan losses (acquired) ⁽¹⁾		118,080				126,313				156,965

Net charge-offs (recoveries) to average loans, before allowance for loan losses *		(0.06	)	%		0.04		%		0.11		%
Net charge-offs (recoveries) to average loans, before allowance for loan losses (originated) * ⁽¹⁾		(0.06	)			0.03				0.03
Net charge-offs (recoveries) to average loans, before allowance for loan losses (acquired) * ⁽¹⁾		(0.02	)			0.18				1.01

* Annualized measure.

(1)

Originated loans and acquired loans along with the related credit quality ratios such as net charge-offs (originated and acquired), average loans, before allowance for loan losses (originated and acquired), and net charge-offs to average loans, before allowance for loan losses (originated and acquired) are non-GAAP financial measures. Originated loans represent loans initially originated by the Company and acquired loans that were refinanced using the Company's underwriting criteria. Acquired loans represent loans originated under the underwriting criteria used by a bank that was acquired by the Company. We believe these non-GAAP financial measures provide investors with information regarding the credit quality of loans underwritten using the Company's policies and procedures.

HBT Financial, Inc.

Consolidated Financial Summary


	As of or for the Three Months Ended
	March 31,			December 31,			March 31,
	2021			2020			2020
	(dollars in thousands, except per share data)
EARNINGS AND PER SHARE INFORMATION
Net income	$	15,245		$	12,642		$	6,221
Earnings per share - Basic		0.55			0.46			0.23
Earnings per share - Diluted		0.55			0.46			0.23

Book value per share	$	13.05		$	13.25		$	12.38

Shares of common stock outstanding		27,382,069			27,457,306			27,457,306
Weighted average shares of common stock outstanding		27,430,912			27,457,306			27,457,306

SUMMARY RATIOS
Net interest margin *		3.25	%		3.31	%		4.03	%
Efficiency ratio		55.73			55.54			64.01
Loan to deposit ratio		67.66			71.78			78.12

Return on average assets *		1.64	%		1.38	%		0.78	%
Return on average stockholders' equity *		17.01			14.00			7.33

NON-GAAP FINANCIAL MEASURES ⁽¹⁾
Adjusted net income	$	14,033		$	12,382		$	8,379
Adjusted earnings per share - Basic		0.51			0.45			0.30
Adjusted earnings per share - Diluted		0.51			0.45			0.30

Tangible book value per share	$	12.10		$	12.29		$	11.38

Net interest margin (tax equivalent basis) * ⁽²⁾		3.30	%		3.36	%		4.09	%
Efficiency ratio (tax equivalent basis) ⁽²⁾		55.03			54.86			63.20

Return on average tangible common equity *		18.33	%		15.12	%		7.97	%

Adjusted return on average assets *		1.51	%		1.36	%		1.06	%
Adjusted return on average stockholders' equity *		15.65			13.71			9.87
Adjusted return on average tangible common equity *		16.88			14.81			10.73

* Annualized measure.

(1)	See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most 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
	March 31,				December 31,				March 31,
	2021				2020				2020
	(dollars in thousands)
Net income	$	15,245			$	12,642			$	6,221
Adjustments:
Charges related to termination of certain employee benefit plans		—				—				(848	)
Mortgage servicing rights fair value adjustment		1,695				363				(2,171	)
Total adjustments		1,695				363				(3,019	)
Tax effect of adjustments		(483	)			(103	)			861
Less adjustments, after tax effect		1,212				260				(2,158	)
Adjusted net income	$	14,033			$	12,382			$	8,379

Average assets	$	3,761,215			$	3,633,587			$	3,188,743

Return on average assets *		1.64		%		1.38		%		0.78		%
Adjusted return on average assets *		1.51				1.36				1.06

* Annualized measure.

Reconciliation of Non-GAAP Financial Measures –

Adjusted Earnings Per Share


	Three Months Ended
	March 31,			December 31,			March 31,
	2021			2020			2020
	(dollars in thousands, except per share data)
Numerator:
Net income	$	15,245		$	12,642		$	6,221
Earnings allocated to participating securities ⁽¹⁾		(31	)		(31	)		(15	)
Numerator for earnings per share - basic and diluted	$	15,214		$	12,611		$	6,206

Adjusted net income	$	14,033		$	12,382		$	8,379
Earnings allocated to participating securities ⁽¹⁾		(28	)		(32	)		(19	)
Numerator for adjusted earnings per share - basic and diluted	$	14,005		$	12,350		$	8,360

Denominator:
Weighted average common shares outstanding		27,430,912			27,457,306			27,457,306
Dilutive effect of outstanding restricted stock units		2,489			—			—
Weighted average common shares outstanding, including all dilutive potential shares		27,433,401			27,457,306			27,457,306

Earnings per share - Basic	$	0.55		$	0.46		$	0.23
Earnings per share - Diluted	$	0.55		$	0.46		$	0.23

Adjusted earnings per share - Basic	$	0.51		$	0.45		$	0.30
Adjusted earnings per share - Diluted	$	0.51		$	0.45		$	0.30

(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.

N/A Not applicable.

Reconciliation of Non-GAAP Financial Measures –

Net Interest Margin (Tax Equivalent Basis)


	Three Months Ended
	March 31,			December 31,			March 31,
	2021			2020			2020
	(dollars in thousands)
Net interest income (tax equivalent basis)
Net interest income	$	29,129		$	29,164		$	30,662
Tax-equivalent adjustment ⁽¹⁾		503			502			463
Net interest income (tax equivalent basis) ⁽¹⁾	$	29,632		$	29,666		$	31,125

Net interest margin (tax equivalent basis)
Net interest margin *		3.25	%		3.31	%		4.03	%
Tax-equivalent adjustment * ⁽¹⁾		0.05			0.05			0.06
Net interest margin (tax equivalent basis) * ⁽¹⁾		3.30	%		3.36	%		4.09	%

Average interest-earning assets	$	3,637,449		$	3,508,128		$	3,063,086

* 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
	March 31,			December 31,			March 31,
	2021			2020			2020
	(dollars in thousands)
Efficiency ratio (tax equivalent basis)
Total noninterest expense	$	22,544		$	22,665		$	23,307
Less: amortization of intangible assets		289			305			317
Adjusted noninterest expense	$	22,255		$	22,360		$	22,990

Net interest income	$	29,129		$	29,164		$	30,662
Total noninterest income		10,808			11,092			5,252
Operating revenue		39,937			40,256			35,914
Tax-equivalent adjustment ⁽¹⁾		503			502			463
Operating revenue (tax equivalent basis) ⁽¹⁾	$	40,440		$	40,758		$	36,377

Efficiency ratio		55.73	%		55.54	%		64.01	%
Efficiency ratio (tax equivalent basis) ⁽¹⁾		55.03			54.86			63.20

(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


	March 31,			December 31,			March 31,
	2021			2020			2020
	(dollars in thousands, except per share data)
Tangible common equity
Total stockholders' equity	$	357,406		$	363,917		$	339,813
Less: Goodwill		23,620			23,620			23,620
Less: Core deposit intangible assets, net		2,509			2,798			3,713
Tangible common equity	$	331,277		$	337,499		$	312,480

Tangible assets
Total assets	$	3,865,614		$	3,666,567		$	3,213,109
Less: Goodwill		23,620			23,620			23,620
Less: Core deposit intangible assets, net		2,509			2,798			3,713
Tangible assets	$	3,839,485		$	3,640,149		$	3,185,776

Total stockholders' equity to total assets		9.25	%		9.93	%		10.58	%
Tangible common equity to tangible assets		8.63			9.27			9.81

Shares of common stock outstanding		27,382,069			27,457,306			27,457,306

Book value per share	$	13.05		$	13.25		$	12.38
Tangible book value per share		12.10			12.29			11.38

Reconciliation of Non-GAAP Financial Measures –

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


	Three Months Ended
	March 31,			December 31,			March 31,
	2021			2020			2020
	(dollars in thousands)
Average tangible common equity
Total stockholders' equity	$	363,557		$	359,312		$	341,519
Less: Goodwill		23,620			23,620			23,620
Less: Core deposit intangible assets, net		2,686			2,979			3,898
Average tangible common equity	$	337,251		$	332,713		$	314,001

Net income	$	15,245		$	12,642		$	6,221
Adjusted net income		14,033			12,382			8,379

Return on average stockholders' equity *		17.01	%		14.00	%		7.33	%
Return on average tangible common equity *		18.33			15.12			7.97

Adjusted return on average stockholders' equity *		15.65	%		13.71	%		9.87	%
Adjusted return on average tangible common equity *		16.88			14.81			10.73

* Annualized measure.

HBT Financial, Inc. Announces First Quarter 2021 Financial Results