Second Quarter Highlights

Net income of $14.1 million, or $0.49 per diluted share; return on average assets (ROAA) of 1.32%; return on average stockholders' equity (ROAE) of 14.92%; and return on average tangible common equity (ROATCE)⁽¹⁾ of 16.25%
Adjusted net income⁽¹⁾ of $13.8 million; or $0.48 per diluted share; adjusted ROAA⁽¹⁾ of 1.29%; adjusted ROAE⁽¹⁾ of 14.66%; and adjusted ROATCE⁽¹⁾ of 15.96%

(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., July 25, 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 $14.1 million, or $0.49 diluted earnings per share, for the second quarter of 2022. This compares to net income of $13.6 million, or $0.47 diluted earnings per share, for the first quarter of 2022, and net income of $13.7 million, or $0.50 diluted earnings per share, for the second quarter of 2021.

Fred L. Drake, Chairman and Chief Executive Officer of HBT Financial, said, "During the second quarter, we had significant expansion in our net interest margin, disciplined expense control, and continued strong asset quality, which enabled us to generate a higher level of earnings and returns compared to the prior quarter. Given our asset sensitive balance sheet, we expect to continue benefiting from higher interest rates, which along with our expectation for a higher level of loan growth in the second half of the year, should result in further increases in net interest income. As we look ahead, our franchise is built upon the foundation of a very stable deposit base and conservatively underwritten, well diversified loan portfolio that we believe will help us to effectively manage through any potential economic downturn and continue delivering strong financial performance. Combined with our exceptionally strong balance sheet, we believe our consistent financial performance will enable us to continue enhancing the value of our franchise and returning capital to our shareholders through our quarterly dividend and share repurchase program."

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 $13.8 million, or $0.48 adjusted diluted earnings per share, for the second quarter of 2022. This compares to adjusted net income of $12.2 million, or $0.42 adjusted diluted earnings per share, for the first quarter of 2022, and adjusted net income of $14.2 million, or $0.52 adjusted diluted earnings per share, for the second quarter of 2021 (see "Reconciliation of Non-GAAP Financial Measures" tables).

Net Interest Income and Net Interest Margin

Net interest income for the second quarter of 2022 was $34.4 million, an increase of 7.7% from $31.9 million for the first quarter of 2022. The increase was primarily attributable to higher yields on interest-earning assets. Paycheck Protection Program ("PPP") loan fees recognized as loan interest income totaled $0.6 million during the second quarter of 2022 and $0.7 million during the first quarter of 2022. As of June 30, 2022, the remaining deferred PPP loan fees to be recognized as income totaled $0.1 million.

Relative to the second quarter of 2021, net interest income increased 15.7% from $29.7 million. The increase was primarily attributable to higher average balances of interest-earning assets following the NXT Bancorporation, Inc. ("NXT") acquisition in the fourth quarter of 2021. PPP loan fees recognized as loan interest income totaled $2.4 million during the second quarter of 2021.

Net interest margin for the second quarter of 2022 was 3.34%, compared to 3.08% for the first quarter of 2022. The increase was primarily attributable to higher yields on interest-earning assets. The contribution of PPP loan fees to net interest margin was 6 basis points during the second quarter of 2022 and 7 basis points during the first quarter of 2022. Additionally, the contribution of acquired loan discount accretion to net interest margin increased to 3 basis points during the second quarter of 2022 from 1 basis point during the first quarter of 2022.

Relative to the second quarter of 2021, net interest margin increased from 3.14%. This increase was primarily attributable to a more favorable mix of interest-earning assets. PPP loan fees recognized as loan interest income contributed 25 basis points to net interest margin and acquired loan discount accretion contributed 2 basis points to net interest margin during the second quarter of 2021.

Noninterest Income

Noninterest income for the second quarter of 2022 was $8.6 million, a decrease of 14.9% from $10.0 million for the first quarter of 2022. The decrease was primarily attributable to a positive $0.4 million mortgage servicing rights ("MSR") fair value adjustment included in the second quarter of 2022 results, compared to a positive $1.7 million MSR fair value adjustment included in the first quarter of 2022 results. Additionally, card income increased by $0.3 million during the second quarter of 2022, primarily due to increased card transaction volume. The increase in card income was mostly offset by a $0.3 million decrease in gains on sale of mortgage loans primarily as a result of a lower level of mortgage refinancing activity.

Relative to the second quarter of 2021, noninterest income decreased 2.5% from $8.8 million, primarily due to a $1.2 million decrease in gains on sale of mortgage loans resulting from a lower level of mortgage refinancing activity. This decrease was mostly offset by increases in service charges on deposit accounts, wealth management fees, and card income.

Noninterest Expense

Noninterest expense for the second quarter of 2022 was $23.8 million, a decrease of 1.3% from $24.2 million for the first quarter of 2022. The decrease was primarily attributable to a $0.5 million decrease in employee benefits expense as the first quarter of 2022 results included accelerated recognition of $0.6 million of stock compensation expense as a result of a modification to all existing restricted stock unit and performance restricted stock unit agreements to address treatment upon retirement. Total compensation costs related to the modified agreements remains the same.

Relative to the second quarter of 2021, noninterest expense increased 7.6% from $22.2 million. The increase was primarily attributable to a higher base level of noninterest expense following the NXT acquisition, primarily related to personnel costs and branch operations expenses.

Loan Portfolio

Total loans outstanding, before allowance for loan losses, were $2.45 billion at June 30, 2022, compared with $2.49 billion at March 31, 2022 and $2.15 billion at June 30, 2021. The $36.0 million decrease in total loans from March 31, 2022 was primarily attributable to a $41.2 million seasonal decrease in grain elevator operating lines within the commercial and industrial portfolio and a $13.7 million decrease from the ongoing forgiveness of PPP loans. These decreases were partially offset by a $26.0 million increase in multi-family loans.

Deposits

Total deposits were $3.70 billion at June 30, 2022, compared with $3.82 billion at March 31, 2022 and $3.42 billion at June 30, 2021. The $114.1 million decrease from March 31, 2022 was primarily attributable to lower balances maintained in retail and business accounts, partially offset by a seasonal increase in public fund accounts as a result of real estate tax collections.

Asset Quality

Nonperforming loans totaled $3.4 million, or 0.14% of total loans, at June 30, 2022, compared with $2.5 million, or 0.10% of total loans, at March 31, 2022, and $7.4 million, or 0.34% of total loans, at June 30, 2021.

The Company recorded a provision for loan losses of $0.1 million for the second quarter of 2022, compared to a negative provision for loan losses of $0.6 million for the first quarter of 2022. The provision was primarily due to changes to qualitative factors reflecting a slight deterioration in the economic environment since the first quarter of 2022, resulting in a $0.4 million increase in required reserve; a decrease in specific reserves on loans individually evaluated for impairment, resulting in a $0.2 million decrease in required reserves; and $0.1 million of net recoveries during the quarter.

The Company had net recoveries of $0.1 million, or (0.01)% of average loans on an annualized basis, for the second quarter of 2022, compared to net recoveries of $1.2 million, or (0.19)% of average loans on an annualized basis, for the first quarter of 2022, and net charge-offs of $90 thousand, or 0.02% of average loans on an annualized basis, for the second quarter of 2021.

The Company's allowance for loan losses was 1.01% of total loans and 721.11% of nonperforming loans at June 30, 2022, compared with 0.99% of total loans and 992.63% of nonperforming loans at March 31, 2022.

Capital

At June 30, 2022, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:


		Well Capitalized
		Regulatory
	June 30, 2022	Requirements
Total capital to risk-weighted assets	16.76%	10.00%
Tier 1 capital to risk-weighted assets	14.59%	8.00%
Common equity tier 1 capital ratio	13.36%	6.50%
Tier 1 leverage ratio	10.05%	5.00%
Total stockholders' equity to total assets	8.85%	N/A
Tangible common equity to tangible assets ⁽¹⁾	8.18%	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 second quarter of 2022, the Company repurchased 136,746 shares of its common stock at a weighted average price of $17.61 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 January 1, 2023. As of June 30, 2022, the Company had $11.6 million remaining under the current stock repurchase authorization.

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 June 30, 2022, HBT had total assets of $4.2 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, 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; and (xiii) 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.

CONTACT:

Tony Rossi

HBTIR@hbtbank.com

(310) 622-8221

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Consolidated Statements of Income


	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2022			2022			2021			2022			2021
INTEREST AND DIVIDEND INCOME	(dollars in thousands, except per share data)
Loans, including fees:
Taxable	$	27,843		$	26,806		$	25,278		$	54,649		$	50,412
Federally tax exempt		679			662			540			1,341			1,150
Securities:
Taxable		5,663			4,649			4,058			10,312			7,691
Federally tax exempt		1,138			1,040			1,144			2,178			2,280
Interest-bearing deposits in bank		420			159			115			579			195
Other interest and dividend income		14			19			12			33			25
Total interest and dividend income		35,757			33,335			31,147			69,092			61,753

INTEREST EXPENSE
Deposits		506			569			613			1,075			1,257
Securities sold under agreements to repurchase		8			9			8			17			15
Borrowings		1			1			—			2			1
Subordinated notes		469			470			469			939			939
Junior subordinated debentures issued to capital trusts		400			358			357			758			712
Total interest expense		1,384			1,407			1,447			2,791			2,924
Net interest income		34,373			31,928			29,700			66,301			58,829
PROVISION FOR LOAN LOSSES		145			(584	)		(2,162	)		(439	)		(5,567	)
Net interest income after provision for loan losses		34,228			32,512			31,862			66,740			64,396

NONINTEREST INCOME
Card income		2,714			2,404			2,449			5,118			4,707
Wealth management fees		2,322			2,289			2,005			4,611			3,977
Service charges on deposit accounts		1,792			1,652			1,390			3,444			2,687
Mortgage servicing		661			658			711			1,319			1,396
Mortgage servicing rights fair value adjustment		366			1,729			(310	)		2,095			1,385
Gains on sale of mortgage loans		326			587			1,562			913			3,662
Unrealized gains (losses) on equity securities		(153	)		(187	)		6			(340	)		46
Gains (losses) on foreclosed assets		(7	)		40			216			33			140
Gains (losses) on other assets		(43	)		193			(48	)		150			(47	)
Income on bank owned life insurance		41			40			—			81			—
Other noninterest income		532			638			793			1,170			1,629
Total noninterest income		8,551			10,043			8,774			18,594			19,582

NONINTEREST EXPENSE
Salaries		12,936			12,801			12,173			25,737			24,651
Employee benefits		1,984			2,444			1,409			4,428			3,094
Occupancy of bank premises		1,741			2,060			1,463			3,801			3,401
Furniture and equipment		623			552			603			1,175			1,226
Data processing		1,990			1,653			1,721			3,643			3,409
Marketing and customer relations		1,205			851			843			2,056			1,408
Amortization of intangible assets		245			245			258			490			547
FDIC insurance		298			288			244			586			484
Loan collection and servicing		278			157			333			435			698
Foreclosed assets		31			132			319			163			462
Other noninterest expense		2,511			2,974			2,788			5,485			5,318
Total noninterest expense		23,842			24,157			22,154			47,999			44,698
INCOME BEFORE INCOME TAX EXPENSE		18,937			18,398			18,482			37,335			39,280
INCOME TAX EXPENSE		4,852			4,794			4,765			9,646			10,318
NET INCOME	$	14,085		$	13,604		$	13,717		$	27,689		$	28,962

EARNINGS PER SHARE - BASIC	$	0.49		$	0.47		$	0.50		$	0.96		$	1.06
EARNINGS PER SHARE - DILUTED	$	0.49		$	0.47		$	0.50		$	0.95		$	1.05
WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING		28,891,202			28,986,593			27,362,579			28,938,634			27,396,557

HBT Financial, Inc.

Unaudited Consolidated Financial Summary

Consolidated Balance Sheets


	June 30,			March 31,			June 30,
	2022			2022			2021
	(dollars in thousands)
ASSETS
Cash and due from banks	$	25,478		$	30,761		$	47,861
Interest-bearing deposits with banks		134,553			328,218			497,742
Cash and cash equivalents		160,031			358,979			545,603

Interest-bearing time deposits with banks		—			487			—
Debt securities available-for-sale, at fair value		924,706			933,922			836,267
Debt securities held-to-maturity		548,236			438,054			309,132
Equity securities with readily determinable fair value		3,103			3,256			3,338
Equity securities with no readily determinable fair value		1,952			1,927			1,552
Restricted stock, at cost		2,813			2,739			2,739
Loans held for sale		5,312			1,777			5,951

Loans, before allowance for loan losses		2,451,826			2,487,785			2,152,119
Allowance for loan losses		(24,734	)		(24,508	)		(26,507	)
Loans, net of allowance for loan losses		2,427,092			2,463,277			2,125,612

Bank owned life insurance		7,474			7,433			—
Bank premises and equipment, net		51,433			52,005			51,900
Bank premises held for sale		319			1,081			121
Foreclosed assets		2,891			3,043			7,757
Goodwill		29,322			29,322			23,620
Core deposit intangible assets, net		1,453			1,698			2,251
Mortgage servicing rights, at fair value		10,089			9,723			7,319
Investments in unconsolidated subsidiaries		1,165			1,165			1,165
Accrued interest receivable		14,263			13,527			12,785
Other assets		32,324			25,550			16,565
Total assets	$	4,223,978		$	4,348,965		$	3,953,677

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Deposits:
Noninterest-bearing	$	1,028,790		$	1,069,231		$	1,011,481
Interest-bearing		2,673,196			2,746,838			2,413,153
Total deposits		3,701,986			3,816,069			3,424,634

Securities sold under agreements to repurchase		51,091			50,834			46,756
Subordinated notes		39,356			39,336			39,277
Junior subordinated debentures issued to capital trusts		37,747			37,731			37,681
Other liabilities		19,989			21,840			32,135
Total liabilities		3,850,169			3,965,810			3,580,483

Stockholders' Equity
Common stock		293			293			275
Surplus		222,087			221,735			191,185
Retained earnings		212,506			203,076			175,328
Accumulated other comprehensive income (loss)		(52,820	)		(36,100	)		8,386
Treasury stock at cost		(8,257	)		(5,849	)		(1,980	)
Total stockholders' equity		373,809			383,155			373,194
Total liabilities and stockholders' equity	$	4,223,978		$	4,348,965		$	3,953,677

SHARE INFORMATION
Shares of common stock outstanding		28,831,197			28,967,943			27,355,053

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	June 30,		March 31,		June 30,
	2022		2022		2021
	(dollars in thousands)
LOANS
Commercial and industrial	$	249,839	$	291,909	$	321,352
Agricultural and farmland		230,370		232,528		231,527
Commercial real estate - owner occupied		228,997		237,000		212,597
Commercial real estate - non-owner occupied		656,093		687,617		531,803
Multi-family		269,452		243,447		212,079
Construction and land development		332,041		320,030		204,619
One-to-four family residential		325,047		327,791		302,888
Municipal, consumer, and other		159,987		147,463		135,254
Loans, before allowance for loan losses	$	2,451,826	$	2,487,785	$	2,152,119

PPP LOANS (included above)
Commercial and industrial	$	2,823	$	16,184	$	115,538
Agricultural and farmland		9		392		8,711
Municipal, consumer, and other		—		—		1,273
Total PPP Loans	$	2,832	$	16,576	$	125,522


	June 30,		March 31,		June 30,
	2022		2022		2021
	(dollars in thousands)
DEPOSITS
Noninterest-bearing	$	1,028,790	$	1,069,231	$	1,011,481
Interest-bearing demand		1,162,292		1,167,058		1,023,565
Money market		581,058		597,464		506,880
Savings		654,953		687,147		603,849
Time		274,893		295,169		278,859
Total deposits	$	3,701,986	$	3,816,069	$	3,424,634

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	Three Months Ended
	June 30, 2022							March 31, 2022							June 30, 2021
	Average Balance			Interest		Yield/ Cost*		Average Balance			Interest		Yield/ Cost*		Average Balance			Interest		Yield/ Cost*
	(dollars in thousands)
ASSETS
Loans	$	2,467,851		$	28,522	4.64	%	$	2,507,006		$	27,468	4.44	%	$	2,234,388		$	25,818	4.63	%
Securities		1,422,096			6,801	1.92			1,321,918			5,689	1.75			1,121,104			5,202	1.86
Deposits with banks		240,692			420	0.70			370,130			159	0.17			438,001			115	0.11
Other		2,809			14	2.07			2,739			19	2.80			2,726			12	1.83
Total interest-earning assets		4,133,448		$	35,757	3.47	%		4,201,793		$	33,335	3.22	%		3,796,219		$	31,147	3.29	%
Allowance for loan losses		(24,579	)						(24,099	)						(28,939	)
Noninterest-earning assets		177,433							165,752							156,559
Total assets	$	4,286,302						$	4,343,446						$	3,923,839

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,159,077		$	144	0.05	%	$	1,143,829		$	142	0.05	%	$	1,019,488		$	127	0.05	%
Money market		582,016			110	0.08			598,271			121	0.08			502,448			94	0.08
Savings		661,661			52	0.03			649,563			50	0.03			601,615			46	0.03
Time		284,880			200	0.28			310,675			256	0.33			290,865			346	0.48
Total interest-bearing deposits		2,687,634			506	0.08			2,702,338			569	0.09			2,414,416			613	0.10
Securities sold under agreements to repurchase		51,057			8	0.07			53,054			9	0.07			47,170			8	0.07
Borrowings		440			1	1.34			500			1	0.71			440			—	0.39
Subordinated notes		39,346			469	4.79			39,325			470	4.84			39,265			469	4.80
Junior subordinated debentures issued to capital trusts		37,738			400	4.26			37,721			358	3.85			37,671			357	3.80
Total interest-bearing liabilities		2,816,215		$	1,384	0.20	%		2,832,938		$	1,407	0.20	%		2,538,962		$	1,447	0.23	%
Noninterest-bearing deposits		1,072,883							1,077,917							992,699
Noninterest-bearing liabilities		18,673							26,302							26,988
Total liabilities		3,907,771							3,937,157							3,558,649
Stockholders' Equity		378,531							406,289							365,190
Total liabilities and stockholders' equity	$	4,286,302						$	4,343,446						$	3,923,839

Net interest income/Net interest margin ⁽¹⁾				$	34,373	3.34	%				$	31,928	3.08	%				$	29,700	3.14	%
Tax-equivalent adjustment ⁽²⁾					598	0.05						529	0.05						503	0.05
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis)^{(2) (3)}				$	34,971	3.39	%				$	32,457	3.13	%				$	30,203	3.19	%
Net interest rate spread ⁽⁴⁾						3.27	%						3.02	%						3.06	%
Net interest-earning assets ⁽⁵⁾	$	1,317,233						$	1,368,855						$	1,257,257
Ratio of interest-earning assets to interest-bearing liabilities		1.47							1.48							1.50
Cost of total deposits						0.05	%						0.06	%						0.07	%

* Annualized measure.

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

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

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

(4) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.

(5) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	Six Months Ended
	June 30, 2022							June 30, 2021
	Average							Average
	Balance			Interest		Yield/Cost*		Balance			Interest		Yield/Cost*
	(dollars in thousands)
ASSETS
Loans	$	2,487,320		$	55,990	4.54	%	$	2,259,136		$	51,562	4.60	%
Securities		1,372,284			12,490	1.84			1,063,312			9,971	1.89
Deposits with banks		305,053			579	0.38			392,213			195	0.10
Other		2,775			33	2.43			2,612			25	1.93
Total interest-earning assets		4,167,432		$	69,092	3.34	%		3,717,273		$	61,753	3.35	%
Allowance for loan losses		(24,340	)						(30,390	)
Noninterest-earning assets		171,624							156,093
Total assets	$	4,314,716						$	3,842,976

LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand	$	1,151,495		$	286	0.05	%	$	1,008,664		$	244	0.05	%
Money market		590,098			231	0.08			492,472			183	0.07
Savings		655,645			102	0.03			571,921			87	0.03
Time		297,706			456	0.31			292,509			743	0.51
Total interest-bearing deposits		2,694,944			1,075	0.08			2,365,566			1,257	0.11
Securities sold under agreements to repurchase		52,050			17	0.07			46,761			15	0.06
Borrowings		470			2	1.01			470			1	0.42
Subordinated notes		39,335			939	4.82			39,255			939	4.83
Junior subordinated debentures issued to capital trusts		37,730			758	4.05			37,663			712	3.81
Total interest-bearing liabilities		2,824,529		$	2,791	0.20	%		2,489,715		$	2,924	0.24	%
Noninterest-bearing deposits		1,075,387							956,806
Noninterest-bearing liabilities		22,466							32,077
Total liabilities		3,922,382							3,478,598
Stockholders' Equity		392,334							364,378
Total liabilities and stockholders' equity	$	4,314,716							3,842,976

Net interest income/Net interest margin ⁽¹⁾				$	66,301	3.21	%				$	58,829	3.19	%
Tax-equivalent adjustment ⁽²⁾					1,127	0.05						1,006	0.06
Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) ^{(2) (3)}				$	67,428	3.26	%				$	59,835	3.25	%
Net interest rate spread ⁽⁴⁾						3.14	%						3.11	%
Net interest-earning assets ⁽⁵⁾	$	1,342,903						$	1,227,558
Ratio of interest-earning assets to interest-bearing liabilities		1.48							1.49
Cost of total deposits						0.06	%						0.08	%

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	June 30,			March 31,			June 30,
	2022			2022			2021
	(dollars in thousands)
NONPERFORMING ASSETS
Nonaccrual	$	3,248		$	2,461		$	6,823
Past due 90 days or more, still accruing ⁽¹⁾		182			8			583
Total nonperforming loans		3,430			2,469			7,406
Foreclosed assets		2,891			3,043			7,757
Total nonperforming assets	$	6,321		$	5,512		$	15,163

Allowance for loan losses	$	24,734		$	24,508		$	26,507
Loans, before allowance for loan losses		2,451,826			2,487,785			2,152,119

CREDIT QUALITY RATIOS
Allowance for loan losses to loans, before allowance for loan losses		1.01	%		0.99	%		1.23	%
Allowance for loan losses to nonaccrual loans		761.51			995.86			388.49
Allowance for loan losses to nonperforming loans		721.11			992.63			357.91
Nonaccrual loans to loans, before allowance for loan losses		0.13			0.10			0.32
Nonperforming loans to loans, before allowance for loan losses		0.14			0.10			0.34
Nonperforming assets to total assets		0.15			0.13			0.38
Nonperforming assets to loans, before allowance for loan losses and foreclosed assets		0.26			0.22			0.70

(1) Excludes loans acquired with deteriorated credit quality that are past due 90 or more days, still accruing totaling $23 thousand, $25 thousand, and $27 thousand as of June 30, 2022, March 31, 2022 and June 30, 2021, respectively.


	Three Months Ended												Six Months Ended
	June 30,				March 31,				June 30,				June 30,
	2022				2022				2021				2022				2021
ALLOWANCE FOR LOAN LOSSES	(dollars in thousands)
Beginning balance	$	24,508			$	23,936			$	28,759			$	23,936			$	31,838
Provision		145				(584	)			(2,162	)			(439	)			(5,567	)
Charge-offs		(159	)			(134	)			(402	)			(293	)			(597	)
Recoveries		240				1,290				312				1,530				833
Ending balance	$	24,734			$	24,508			$	26,507			$	24,734			$	26,507

Net charge-offs (recoveries)	$	(81	)		$	(1,156	)		$	90			$	(1,237	)		$	(236	)
Average loans, before allowance for loan losses		2,467,851				2,507,006				2,234,388				2,487,320				2,259,136

Net charge-offs (recoveries) to average loans, before allowance for loan losses *		(0.01	)	%		(0.19	)	%		0.02		%		(0.10	)	%		(0.02	)	%

* Annualized measure.

HBT Financial, Inc.

Unaudited Consolidated Financial Summary


	As of or for the Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2022			2022			2021			2022			2021
	(dollars in thousands, except per share data)
EARNINGS AND PER SHARE INFORMATION
Net income	$	14,085		$	13,604		$	13,717		$	27,689		$	28,962
Earnings per share - Basic		0.49			0.47			0.50			0.96			1.06
Earnings per share - Diluted		0.49			0.47			0.50			0.95			1.05

Adjusted net income ⁽¹⁾	$	13,836		$	12,227		$	14,168		$	26,063		$	28,201
Adjusted earnings per share - Basic ⁽¹⁾		0.48			0.42			0.52			0.90			1.03
Adjusted earnings per share - Diluted ⁽¹⁾		0.48			0.42			0.52			0.90			1.03

Book value per share	$	12.97		$	13.23		$	13.64
Tangible book value per share ⁽¹⁾		11.90			12.16			12.70

Shares of common stock outstanding		28,831,197			28,967,943			27,355,053
Weighted average shares of common stock outstanding		28,891,202			28,986,593			27,362,579			28,938,634			27,396,557

SUMMARY RATIOS
Net interest margin *		3.34	%		3.08	%		3.14	%		3.21	%		3.19	%
Net interest margin (tax equivalent basis) * ⁽¹⁾⁽²⁾		3.39			3.13			3.19			3.26			3.25

Efficiency ratio		54.97	%		56.97	%		56.91	%		55.96	%		56.31	%
Efficiency ratio (tax equivalent basis) ⁽¹⁾⁽²⁾		54.22			56.26			56.18			55.23			55.59

Loan to deposit ratio		66.23	%		65.19	%		62.84	%

Return on average assets *		1.32	%		1.27	%		1.40	%		1.29	%		1.52	%
Return on average stockholders' equity *		14.92			13.58			15.07			14.23			16.03
Return on average tangible common equity * ⁽¹⁾		16.25			14.71			16.22			15.45			17.27

Adjusted return on average assets * ⁽¹⁾		1.29	%		1.14	%		1.45	%		1.22	%		1.48	%
Adjusted return on average stockholders' equity * ⁽¹⁾		14.66			12.20			15.56			13.40			15.61
Adjusted return on average tangible common equity * ⁽¹⁾		15.96			13.22			16.76			14.55			16.81

* 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												Six Months Ended
	June 30,				March 31,				June 30,				June 30,
	2022				2022				2021				2022				2021
	(dollars in thousands)
Net income	$	14,085			$	13,604			$	13,717			$	27,689			$	28,962
Adjustments:
Acquisition expenses		—				—				(157	)			—				(157	)
Branch closure expenses		—				—				(104	)			—				(104	)
Gains (losses) on sales of closed branch premises		(18	)			197				—				179				—
Mortgage servicing rights fair value adjustment		366				1,729				(310	)			2,095				1,385
Total adjustments		348				1,926				(571	)			2,274				1,124
Tax effect of adjustments		(99	)			(549	)			120				(648	)			(363	)
Less adjustments, after tax effect		249				1,377				(451	)			1,626				761
Adjusted net income	$	13,836			$	12,227			$	14,168			$	26,063			$	28,201

Average assets	$	4,286,302			$	4,343,446			$	3,923,839			$	4,314,716			$	3,842,976

Return on average assets *		1.32		%		1.27		%		1.40		%		1.29		%		1.52		%
Adjusted return on average assets *		1.29				1.14				1.45				1.22				1.48

* Annualized measure.

Reconciliation of Non-GAAP Financial Measures –

Adjusted Earnings Per Share


	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2022			2022			2021			2022			2021
	(dollars in thousands, except per share data)
Numerator:
Net income	$	14,085		$	13,604		$	13,717		$	27,689		$	28,962
Earnings allocated to participating securities ⁽¹⁾		(17	)		(17	)		(25	)		(34	)		(56	)
Numerator for earnings per share - basic and diluted	$	14,068		$	13,587		$	13,692		$	27,655		$	28,906

Adjusted net income	$	13,836		$	12,227		$	14,168		$	26,063		$	28,201
Earnings allocated to participating securities ⁽¹⁾		(17	)		(15	)		(26	)		(32	)		(54	)
Numerator for adjusted earnings per share - basic and diluted	$	13,819		$	12,212		$	14,142		$	26,031		$	28,147

Denominator:
Weighted average common shares outstanding		28,891,202			28,986,593			27,362,579			28,938,634			27,396,557
Dilutive effect of outstanding restricted stock units		53,674			43,646			17,701			48,688			10,137
Weighted average common shares outstanding, including all dilutive potential shares		28,944,876			29,030,239			27,380,280			28,987,322			27,406,694

Earnings per share - Basic	$	0.49		$	0.47		$	0.50		$	0.96		$	1.06
Earnings per share - Diluted	$	0.49		$	0.47		$	0.50		$	0.95		$	1.05

Adjusted earnings per share - Basic	$	0.48		$	0.42		$	0.52		$	0.90		$	1.03
Adjusted earnings per share - Diluted	$	0.48		$	0.42		$	0.52		$	0.90		$	1.03

(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									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2022			2022			2021			2022			2021
	(dollars in thousands)
Net interest income (tax equivalent basis)
Net interest income	$	34,373		$	31,928		$	29,700		$	66,301		$	58,829
Tax-equivalent adjustment ⁽¹⁾		598			529			503			1,127			1,006
Net interest income (tax equivalent basis) ⁽¹⁾	$	34,971		$	32,457		$	30,203		$	67,428		$	59,835

Net interest margin (tax equivalent basis)
Net interest margin *		3.34	%		3.08	%		3.14	%		3.21	%		3.19	%
Tax-equivalent adjustment * ⁽¹⁾		0.05			0.05			0.05			0.05			0.06
Net interest margin (tax equivalent basis) * ⁽¹⁾		3.39	%		3.13	%		3.19	%		3.26	%		3.25	%

Average interest-earning assets	$	4,133,448		$	4,201,793		$	3,796,219		$	4,167,432		$	3,717,273

* Annualized measure.

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

Reconciliation of Non-GAAP Financial Measures –

Efficiency Ratio (Tax Equivalent Basis)


	Three Months Ended									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2022			2022			2021			2022			2021
	(dollars in thousands)
Efficiency ratio (tax equivalent basis)
Total noninterest expense	$	23,842		$	24,157		$	22,154		$	47,999		$	44,698
Less: amortization of intangible assets		245			245			258			490			547
Adjusted noninterest expense	$	23,597		$	23,912		$	21,896		$	47,509		$	44,151

Net interest income	$	34,373		$	31,928		$	29,700		$	66,301		$	58,829
Total noninterest income		8,551			10,043			8,774			18,594			19,582
Operating revenue		42,924			41,971			38,474			84,895			78,411
Tax-equivalent adjustment ⁽¹⁾		598			529			503			1,127			1,006
Operating revenue (tax equivalent basis) ⁽¹⁾	$	43,522		$	42,500		$	38,977		$	86,022		$	79,417

Efficiency ratio		54.97	%		56.97	%		56.91	%		55.96	%		56.31	%
Efficiency ratio (tax equivalent basis) ⁽¹⁾		54.22			56.26			56.18			55.23			55.59

(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


	June 30,			March 31,			June 30,
	2022			2022			2021
	(dollars in thousands, except per share data)
Tangible common equity
Total stockholders' equity	$	373,809		$	383,155		$	373,194
Less: Goodwill		29,322			29,322			23,620
Less: Core deposit intangible assets, net		1,453			1,698			2,251
Tangible common equity	$	343,034		$	352,135		$	347,323

Tangible assets
Total assets	$	4,223,978		$	4,348,965		$	3,953,677
Less: Goodwill		29,322			29,322			23,620
Less: Core deposit intangible assets, net		1,453			1,698			2,251
Tangible assets	$	4,193,203		$	4,317,945		$	3,927,806

Total stockholders' equity to total assets		8.85	%		8.81	%		9.44	%
Tangible common equity to tangible assets		8.18			8.16			8.84

Shares of common stock outstanding		28,831,197			28,967,943			27,355,053

Book value per share	$	12.97		$	13.23		$	13.64
Tangible book value per share		11.90			12.16			12.70

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									Six Months Ended
	June 30,			March 31,			June 30,			June 30,
	2022			2022			2021			2022			2021
	(dollars in thousands)
Average tangible common equity
Total stockholders' equity	$	378,531		$	406,289		$	365,190		$	392,334		$	364,378
Less: Goodwill		29,322			29,322			23,620			29,322			23,620
Less: Core deposit intangible assets, net		1,597			1,844			2,410			1,720			2,547
Average tangible common equity	$	347,612		$	375,123		$	339,160		$	361,292		$	338,211

Net income	$	14,085		$	13,604		$	13,717		$	27,689		$	28,962
Adjusted net income		13,836			12,227			14,168			26,063			28,201

Return on average stockholders' equity *		14.92	%		13.58	%		15.07	%		14.23	%		16.03	%
Return on average tangible common equity *		16.25			14.71			16.22			15.45			17.27

Adjusted return on average stockholders' equity *		14.66	%		12.20	%		15.56	%		13.40	%		15.61	%
Adjusted return on average tangible common equity *		15.96			13.22			16.76			14.55			16.81

* Annualized measure.

HBT Financial, Inc. Announces Second Quarter 2022 Financial Results