Second Quarter Highlights
- Net income of $18.1 million, or $0.57 per diluted share; return on average assets ("ROAA") of 1.45%; return on average stockholders' equity ("ROAE") of 14.48%; and return on average tangible common equity ("ROATCE")(1) of 17.21%
- Adjusted net income(1) of $18.1 million; or $0.57 per diluted share; adjusted ROAA(1) of 1.45%; adjusted ROAE(1) of 14.54%; and adjusted ROATCE(1) of 17.27%
- Asset quality remained strong with nonperforming assets to total assets of 0.17%, close to a historic low
- Net interest margin and net interest margin (tax-equivalent basis)(1) increased slightly to 3.95% and 4.00%, respectively
BLOOMINGTON, Ill., July 22, 2024 (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 $18.1 million, or $0.57 diluted earnings per share, for the second quarter of 2024. This compares to net income of $15.3 million, or $0.48 diluted earnings per share, for the first quarter of 2024, and net income of $18.5 million, or $0.58 diluted earnings per share, for the second quarter of 2023.
J. Lance Carter, President and Chief Executive Officer of HBT Financial, said, "On behalf of HBT Financial, I would like to first express my condolences to the George Drake family. George passed away on May 13th at the age of 97. He started his banking career just after World War II at the State Bank of Cornland, which had been founded by his father M.B. Drake, and he spent over 70 years in banking before retiring from our Board of Directors in 2019. He formed Heartland Bancorp, Inc. (now HBT Financial) in 1982 as one of the first multi-bank holding companies in Illinois. I had the pleasure of knowing George for 22 years and his kindness and wisdom impacted me. His leadership and vision established the foundation for our success today.
As for the second quarter, we delivered another set of very strong performance metrics with net income of $18.1 million, a ROAA of 1.45% and ROATCE(1) of 17.21%. In addition, our tangible book value per share of $13.64 has grown 17.8% over the past year. During the quarter, we saw solid loan growth of $39.5 million, or 4.7% on an annualized basis, as well as stability in our core deposit base. We have seen the continued repricing of our loan portfolio and tight management of deposit costs positively impact our net interest margin (tax-equivalent basis)(1) which expanded 1 basis point to 4.00% for the quarter.
While we continue to invest in our business, our costs were well controlled during the quarter as demonstrated by our efficiency ratio (tax-equivalent basis)(1) of 52.1%. Our loan portfolio is performing well with no apparent signs of concentrated stress in sub portfolios, such as office and retail commercial real estate, while nonperforming assets represented only 0.17% of total assets and net charge-offs were only 0.08% of average loans on an annualized basis for the quarter."
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(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
Adjusted Net Income
In addition to reporting GAAP results, the Company believes non-GAAP measures such as adjusted net income and adjusted earnings per share, which adjust for acquisition expenses, branch closure expenses, gains (losses) on closed branch premises, net earnings (losses) from closed or sold operations, charges related to termination of certain employee benefit plans, realized gains (losses) on sales of securities, and mortgage servicing rights fair value adjustments, provide investors with additional insight into its operational performance. The Company reported adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the second quarter of 2024. This compares to adjusted net income of $18.1 million, or $0.57 adjusted diluted earnings per share, for the first quarter of 2024, and adjusted net income of $18.8 million, or $0.58 adjusted diluted earnings per share, for the second quarter of 2023 (see "Reconciliation of Non-GAAP Financial Measures" tables below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures).
Net Interest Income and Net Interest Margin
Net interest income for the second quarter of 2024 was $47.0 million, a slight increase of 0.7% from $46.7 million for the first quarter of 2024. The slight increase was primarily attributable to improved asset yields and growth in interest-earning assets which were mostly offset by an increase in funding costs.
Relative to the second quarter of 2023, net interest income decreased 3.8% from $48.9 million. The decrease was primarily attributable to higher funding costs which were partially offset by higher asset yields and an increase in interest-earning assets.
Net interest margin for the second quarter of 2024 was 3.95%, compared to 3.94% for the first quarter of 2024, and net interest margin (tax-equivalent basis)(1) for the second quarter of 2024 was 4.00%, compared to 3.99% for the first quarter of 2024. Higher yields on interest-earning assets, which increased by 5 basis points to 5.28%, were mostly offset by an increase in funding costs, with the cost of funds increasing by 5 basis points to 1.42%.
Relative to the second quarter of 2023, net interest margin decreased 21 basis points from 4.16% and net interest margin (tax-equivalent basis)(1) decreased 22 basis points from 4.22%. These decreases were primarily attributable to increases in funding costs outpacing increases in interest-earning asset yields.
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(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
Noninterest Income
Noninterest income for the second quarter of 2024 was $9.6 million, an increase from $5.6 million for the first quarter of 2024. The increase was primarily attributable to the absence of $3.4 million of losses on sales of securities and $0.6 million of impairment losses related to the closure of two branches recognized during the first quarter of 2024. Additionally, seasonal changes in card income, which increased by $0.3 million, were mostly offset by a $0.2 million decrease in other noninterest income.
Relative to the second quarter of 2023, noninterest income decreased 3.1% from $9.9 million. The decrease was primarily attributable to a $0.2 million change in the mortgage servicing rights fair value adjustment and a $0.2 million decrease in other noninterest income. Partially offsetting these decreases was a $0.3 million increase in wealth management fees, driven by higher values of assets under management during the second quarter of 2024 relative to the second quarter of 2023.
Noninterest Expense
Noninterest expense for the second quarter of 2024 was $30.5 million, a 2.4% decrease from $31.3 million for the first quarter of 2024. The decrease was primarily attributable to a $0.3 million decrease in salaries expense, which included higher vacation accruals and payroll taxes in the first quarter of 2024, a $0.3 million decrease in occupancy expense, and a $0.3 million decrease in data processing expense.
Relative to the second quarter of 2023, noninterest expense decreased 10.2% from $34.0 million. The decrease was primarily attributable to the absence of $0.8 million of legal fees and $0.8 million of accruals related to legal matters previously disclosed as well as the absence of $0.6 million of Town and Country Financial Corporation ("Town and Country") acquisition-related expenses incurred during the second quarter of 2023. Additionally, the realization of planned cost reductions following the Town and Country core system conversion completed in April 2023 further contributed to the decrease in noninterest expense.
Acquisition-related expenses recognized during the three and six months ended June 30, 2023 are summarized below. No Town and Country acquisition-related expenses were recognized subsequent to the second quarter of 2023.
| (dollars in thousands) | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2023 | |||
| PROVISION FOR CREDIT LOSSES | $ | — | $ | 5,924 | |
| NONINTEREST EXPENSE | |||||
| Salaries | 66 | 3,584 | |||
| Furniture and equipment | 39 | 39 | |||
| Data processing | 176 | 2,031 | |||
| Marketing and customer relations | 10 | 24 | |||
| Loan collection and servicing | 125 | 125 | |||
| Legal fees and other noninterest expense | 211 | 1,964 | |||
| Total noninterest expense | 627 | 7,767 | |||
| Total acquisition-related expenses | $ | 627 | $ | 13,691 | |
Income Taxes
During the second quarter of 2024, we recognized an additional $0.5 million of tax expense for a deferred tax asset write-down, primarily as a result of an Illinois tax change. This increased our effective tax rate to 27.6% during the second quarter of 2024 from 25.6% during the first quarter of 2024. We expect this write-down to be earned back over several years through reduced state tax expense.
Loan Portfolio
Total loans outstanding, before allowance for credit losses, were $3.39 billion at June 30, 2024, compared with $3.35 billion at March 31, 2024, and $3.24 billion at June 30, 2023. The $39.5 million increase from March 31, 2024 was primarily attributable to draws on existing construction projects and new construction loans to existing customers. In addition, growth in our municipal, consumer and other portfolio was primarily due to draws on an existing loan to a recurring borrower. The $8.4 million increase in multi-family loans was driven predominately by the completion of projects previously in the construction and land development category.
Deposits
Total deposits were $4.32 billion at June 30, 2024, compared with $4.36 billion at March 31, 2024, and $4.16 billion at June 30, 2023. The $41.9 million decrease from March 31, 2024 was primarily attributable to a $25.8 million decrease in brokered deposits and a $16.1 million decrease in higher cost reciprocal wealth management customer deposits included with money market deposits. Partially offsetting these decreases was a $31.1 million increase in time deposits from a State of Illinois loan matching program, a lower cost source of funding, which totaled $65.0 million as of June 30, 2024.
Asset Quality
Nonperforming loans totaled $8.4 million, or 0.25% of total loans, at June 30, 2024, compared with $9.7 million, or 0.29% of total loans, at March 31, 2024, and $7.5 million, or 0.23% of total loans, at June 30, 2023. Additionally, of the $8.4 million of nonperforming loans held as of June 30, 2024, $2.1 million is either wholly or partially guaranteed by the U.S. government. The $1.2 million decrease in nonperforming loans from March 31, 2024 was primarily attributable to a $0.4 million reduction in nonaccrual one-to-four family residential loans as well as charge-offs.
The Company recorded a provision for credit losses of $1.2 million for the second quarter of 2024. The provision for credit losses primarily reflects a $0.9 million increase in required reserves resulting from changes in economic forecasts and a $0.9 million increase in required reserves driven by increased loan balances and changes within the loan portfolio which were mostly offset by a $0.7 million decrease in specific reserves.
The Company had net charge-offs of $0.7 million, or 0.08% of average loans on an annualized basis, for the second quarter of 2024, compared to net recoveries of $0.2 million, or 0.02% of average loans on an annualized basis, for the first quarter of 2024, and net recoveries of $0.1 million, or 0.01% of average loans on an annualized basis, for the second quarter of 2023. During the second quarter of 2024, net charge-offs were primarily recognized in the commercial and industrial category, which had $0.5 million of net charge-offs, and the multi-family category, which had $0.2 million of net charge-offs.
The Company's allowance for credit losses was 1.21% of total loans and 484% of nonperforming loans at June 30, 2024, compared with 1.22% of total loans and 423% of nonperforming loans at March 31, 2024. In addition, the allowance for credit losses on unfunded lending-related commitments totaled $4.3 million as of June 30, 2024, compared with $3.8 million as of March 31, 2024.
Capital
As of June 30, 2024, the Company exceeded all regulatory capital requirements under Basel III as summarized in the following table:
| June 30, 2024 | For Capital Adequacy Purposes With Capital Conversation Buffer | |||||
| Total capital to risk-weighted assets | 16.01 | % | 10.50 | % | ||
| Tier 1 capital to risk-weighted assets | 13.98 | 8.50 | ||||
| Common equity tier 1 capital ratio | 12.66 | 7.00 | ||||
| Tier 1 leverage ratio | 10.83 | 4.00 | ||||
The ratio of tangible common equity to tangible assets(1) increased to 8.74% as of June 30, 2024, from 8.40% as of March 31, 2024, and tangible book value per share(1) increased by $0.45 to $13.64 as of June 30, 2024, when compared to March 31, 2024.
During the second quarter of 2024, the Company repurchased 53,522 shares of its common stock at a weighted average price of $18.74 under its stock repurchase program. The Company's Board of Directors has authorized the repurchase of up to $15 million of HBT Financial common stock under its stock repurchase program, which is in effect until January 1, 2025. As of June 30, 2024, the Company had $10.6 million remaining under the stock repurchase program.
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(1) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
About HBT Financial, Inc.
HBT Financial, Inc., headquartered in Bloomington, Illinois, is the holding company for Heartland Bank and Trust Company, and has banking roots that can be traced back to 1920. HBT Financial provides a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa through 66 full-service branches. As of June 30, 2024, HBT Financial had total assets of $5.0 billion, total loans of $3.4 billion, and total deposits of $4.3 billion.
Non-GAAP Financial Measures
Some of the financial measures included in this press release are not measures of financial performance recognized in accordance with GAAP. These non-GAAP financial measures include net interest income (tax-equivalent basis), net interest margin (tax-equivalent basis), efficiency ratio (tax-equivalent basis), ratio of tangible common equity to tangible assets, tangible book value per share, ROATCE, adjusted net income, adjusted earnings per share, adjusted ROAA, adjusted ROAE, and adjusted ROATCE. Our management uses these non-GAAP financial measures, together with the related GAAP financial measures, in its analysis of our performance and in making business decisions. Management believes that it is a standard practice in the banking industry to present these non-GAAP financial measures, and accordingly believes that providing these measures may be useful for peer comparison purposes. These disclosures should not be viewed as substitutes for the results determined to be in accordance with GAAP; nor are they necessarily comparable to non-GAAP financial measures that may be presented by other companies. See our reconciliation of non-GAAP financial measures to their most directly comparable GAAP financial measures in the "Reconciliation of Non-GAAP Financial Measures" tables.
Forward-Looking Statements
Readers should note that in addition to the historical information contained herein, this press release contains, and future oral and written statements of the Company and its management may contain, "forward-looking statements" within the meanings of the Private Securities Litigation Reform Act of 1995, Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "will," "propose," "may," "plan," "seek," "expect," "intend," "estimate," "anticipate," "believe," "continue," or "should," or similar terminology. Any forward-looking statements presented herein are made only as of the date of this press release, and the Company does not undertake any obligation to update or revise any forward-looking statements to reflect changes in assumptions, the occurrence of unanticipated events, or otherwise.
Factors that could cause actual results to differ materially from these forward-looking statements include, but are not limited to: (i) the strength of the local, state, national and international economies (including effects of inflationary pressures and supply chain constraints); (ii) the economic impact of any future terrorist threats and attacks, widespread disease or pandemics, acts of war or other threats thereof (including the Israeli-Palestinian conflict and the Russian invasion of Ukraine), or other adverse external events that could cause economic deterioration or instability in credit markets, and the response of the local, state and national governments to any such adverse external events; (iii) changes in accounting policies and practices, as may be adopted by state and federal regulatory agencies, the Financial Accounting Standards Board or the Public Company Accounting Oversight Board; (iv) changes in state and federal laws, regulations and governmental policies concerning the Company's general business and any changes in response to the recent failures of other banks or as a result of the upcoming 2024 presidential election; (v) changes in interest rates and prepayment rates of the Company's assets (including the effects of sustained, elevated interest rates); (vi) increased competition in the financial services sector, including from non-bank competitors such as credit unions and "fintech" companies, and the inability to attract new customers; (vii) changes in technology and the ability to develop and maintain secure and reliable electronic systems; (viii) unexpected results of acquisitions, which may include failure to realize the anticipated benefits of acquisitions and the possibility that transaction costs may be greater than anticipated; (ix) the loss of key executives or employees; (x) changes in consumer spending; (xi) unexpected outcomes of existing or new litigation involving the Company; (xii) the economic impact of exceptional weather occurrences such as tornadoes, floods and blizzards; (xiii) fluctuations in the value of securities held in our securities portfolio; (xiv) concentrations within our loan portfolio (including commercial real estate loans), large loans to certain borrowers, and large deposits from certain clients; (xv) the concentration of large deposits from certain clients who have balances above current FDIC insurance limits and may withdraw deposits to diversify their exposure; (xvi) the level of non-performing assets on our balance sheets; (xvii) interruptions involving our information technology and communications systems or third-party servicers; (xviii) breaches or failures of our information security controls or cybersecurity-related incidents, and (xix) the ability of the Company to manage the risks associated with the foregoing as well as anticipated. Readers should note that the forward-looking statements included in this press release are not a guarantee of future events, and that actual events may differ materially from those made in or suggested by the forward-looking statements. Additional information concerning the Company and its business, including additional factors that could materially affect the Company's financial results, is included in the Company's filings with the Securities and Exchange Commission.
CONTACT:
Peter Chapman
[email protected]
(309) 664-4556
| HBT Financial, Inc. Unaudited Consolidated Financial Summary | ||||||||||||||||||||
| As of or for the Three Months Ended | Six Months Ended June 30, | |||||||||||||||||||
| (dollars in thousands, except per share data) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | |||||||||||||||
| Interest and dividend income | $ | 62,824 | $ | 61,961 | $ | 56,768 | $ | 124,785 | $ | 108,547 | ||||||||||
| Interest expense | 15,796 | 15,273 | 7,896 | 31,069 | 12,838 | |||||||||||||||
| Net interest income | 47,028 | 46,688 | 48,872 | 93,716 | 95,709 | |||||||||||||||
| Provision for credit losses | 1,176 | 527 | (230 | ) | 1,703 | 5,980 | ||||||||||||||
| Net interest income after provision for credit losses | 45,852 | 46,161 | 49,102 | 92,013 | 89,729 | |||||||||||||||
| Noninterest income | 9,610 | 5,626 | 9,914 | 15,236 | 17,351 | |||||||||||||||
| Noninterest expense | 30,509 | 31,268 | 33,973 | 61,777 | 69,906 | |||||||||||||||
| Income before income tax expense | 24,953 | 20,519 | 25,043 | 45,472 | 37,174 | |||||||||||||||
| Income tax expense | 6,883 | 5,261 | 6,570 | 12,144 | 9,493 | |||||||||||||||
| Net income | $ | 18,070 | $ | 15,258 | $ | 18,473 | $ | 33,328 | $ | 27,681 | ||||||||||
| Earnings per share - Diluted | $ | 0.57 | $ | 0.48 | $ | 0.58 | $ | 1.05 | $ | 0.88 | ||||||||||
| Adjusted net income (1) | $ | 18,139 | $ | 18,073 | $ | 18,772 | $ | 36,212 | $ | 38,631 | ||||||||||
| Adjusted earnings per share - Diluted (1) | 0.57 | 0.57 | 0.58 | 1.14 | 1.22 | |||||||||||||||
| Book value per share | $ | 16.14 | $ | 15.71 | $ | 14.15 | ||||||||||||||
| Tangible book value per share (1) | 13.64 | 13.19 | 11.58 | |||||||||||||||||
| Shares of common stock outstanding | 31,559,366 | 31,612,888 | 31,865,868 | |||||||||||||||||
| Weighted average shares of common stock outstanding | 31,579,457 | 31,662,954 | 31,980,133 | 31,621,205 | 31,481,439 | |||||||||||||||
| SUMMARY RATIOS | ||||||||||||||||||||
| Net interest margin * | 3.95 | % | 3.94 | % | 4.16 | % | 3.95 | % | 4.18 | % | ||||||||||
| Net interest margin (tax-equivalent basis) * (1)(2) | 4.00 | 3.99 | 4.22 | 3.99 | 4.24 | |||||||||||||||
| Efficiency ratio | 52.61 | % | 58.41 | % | 56.57 | % | 55.40 | % | 60.74 | % | ||||||||||
| Efficiency ratio (tax-equivalent basis) (1)(2) | 52.10 | 57.78 | 55.89 | 54.83 | 59.99 | |||||||||||||||
| Loan to deposit ratio | 78.39 | % | 76.73 | % | 77.91 | % | ||||||||||||||
| Return on average assets * | 1.45 | % | 1.23 | % | 1.49 | % | 1.34 | % | 1.15 | % | ||||||||||
| Return on average stockholders' equity * | 14.48 | 12.42 | 16.30 | 13.46 | 12.73 | |||||||||||||||
| Return on average tangible common equity * (1) | 17.21 | 14.83 | 19.91 | 16.03 | 15.31 | |||||||||||||||
| Adjusted return on average assets * (1) | 1.45 | % | 1.45 | % | 1.51 | % | 1.45 | % | 1.60 | % | ||||||||||
| Adjusted return on average stockholders' equity * (1) | 14.54 | 14.72 | 16.57 | 14.63 | 17.77 | |||||||||||||||
| Adjusted return on average tangible common equity * (1) | 17.27 | 17.57 | 20.23 | 17.42 | 21.36 | |||||||||||||||
| CAPITAL | ||||||||||||||||||||
| Total capital to risk-weighted assets | 16.01 | % | 15.79 | % | 15.03 | % | ||||||||||||||
| Tier 1 capital to risk-weighted assets | 13.98 | 13.77 | 13.12 | |||||||||||||||||
| Common equity tier 1 capital ratio | 12.66 | 12.44 | 11.78 | |||||||||||||||||
| Tier 1 leverage ratio | 10.83 | 10.65 | 10.07 | |||||||||||||||||
| Total stockholders' equity to total assets | 10.18 | 9.85 | 9.06 | |||||||||||||||||
| Tangible common equity to tangible assets (1) | 8.74 | 8.40 | 7.54 | |||||||||||||||||
| ASSET QUALITY | ||||||||||||||||||||
| Net charge-offs (recoveries) to average loans | 0.08 | % | (0.02) % | (0.01) % | 0.03 | % | (0.01) % | |||||||||||||
| Allowance for credit losses to loans, before allowance for credit losses | 1.21 | 1.22 | 1.17 | |||||||||||||||||
| Nonperforming loans to loans, before allowance for credit losses | 0.25 | 0.29 | 0.23 | |||||||||||||||||
| Nonperforming assets to total assets | 0.17 | 0.20 | 0.21 | |||||||||||||||||
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- 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 | Six Months Ended June 30, | ||||||||||||||||||
| (dollars in thousands, except per share data) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | ||||||||||||||
| INTEREST AND DIVIDEND INCOME | |||||||||||||||||||
| Loans, including fees: | |||||||||||||||||||
| Taxable | $ | 52,177 | $ | 51,926 | $ | 47,149 | $ | 104,103 | $ | 89,308 | |||||||||
| Federally tax exempt | 1,097 | 1,094 | 1,040 | 2,191 | 1,992 | ||||||||||||||
| Securities: | |||||||||||||||||||
| Taxable | 6,386 | 6,250 | 6,518 | 12,636 | 13,134 | ||||||||||||||
| Federally tax exempt | 521 | 597 | 1,162 | 1,118 | 2,359 | ||||||||||||||
| Interest-bearing deposits in bank | 2,570 | 1,952 | 781 | 4,522 | 1,520 | ||||||||||||||
| Other interest and dividend income | 73 | 142 | 118 | 215 | 234 | ||||||||||||||
| Total interest and dividend income | 62,824 | 61,961 | 56,768 | 124,785 | 108,547 | ||||||||||||||
| INTEREST EXPENSE | |||||||||||||||||||
| Deposits | 14,133 | 13,593 | 4,323 | 27,726 | 6,697 | ||||||||||||||
| Securities sold under agreements to repurchase | 129 | 152 | 34 | 281 | 72 | ||||||||||||||
| Borrowings | 121 | 125 | 2,189 | 246 | 3,486 | ||||||||||||||
| Subordinated notes | 469 | 470 | 469 | 939 | 939 | ||||||||||||||
| Junior subordinated debentures issued to capital trusts | 944 | 933 | 881 | 1,877 | 1,644 | ||||||||||||||
| Total interest expense | 15,796 | 15,273 | 7,896 | 31,069 | 12,838 | ||||||||||||||
| Net interest income | 47,028 | 46,688 | 48,872 | 93,716 | 95,709 | ||||||||||||||
| PROVISION FOR CREDIT LOSSES | 1,176 | 527 | (230 | ) | 1,703 | 5,980 | |||||||||||||
| Net interest income after provision for credit losses | 45,852 | 46,161 | 49,102 | 92,013 | 89,729 | ||||||||||||||
| NONINTEREST INCOME | |||||||||||||||||||
| Card income | 2,885 | 2,616 | 2,905 | 5,501 | 5,563 | ||||||||||||||
| Wealth management fees | 2,623 | 2,547 | 2,279 | 5,170 | 4,617 | ||||||||||||||
| Service charges on deposit accounts | 1,902 | 1,869 | 1,919 | 3,771 | 3,790 | ||||||||||||||
| Mortgage servicing | 1,111 | 1,055 | 1,254 | 2,166 | 2,353 | ||||||||||||||
| Mortgage servicing rights fair value adjustment | (97 | ) | 80 | 141 | (17 | ) | (483 | ) | |||||||||||
| Gains on sale of mortgage loans | 443 | 298 | 373 | 741 | 649 | ||||||||||||||
| Realized gains (losses) on sales of securities | — | (3,382 | ) | — | (3,382 | ) | (1,007 | ) | |||||||||||
| Unrealized gains (losses) on equity securities | (96 | ) | (16 | ) | 7 | (112 | ) | (15 | ) | ||||||||||
| Gains (losses) on foreclosed assets | (28 | ) | 87 | (97 | ) | 59 | (107 | ) | |||||||||||
| Gains (losses) on other assets | — | (635 | ) | 109 | (635 | ) | 109 | ||||||||||||
| Income on bank owned life insurance | 166 | 164 | 147 | 330 | 262 | ||||||||||||||
| Other noninterest income | 701 | 943 | 877 | 1,644 | 1,620 | ||||||||||||||
| Total noninterest income | 9,610 | 5,626 | 9,914 | 15,236 | 17,351 | ||||||||||||||
| NONINTEREST EXPENSE | |||||||||||||||||||
| Salaries | 16,364 | 16,657 | 16,660 | 33,021 | 36,071 | ||||||||||||||
| Employee benefits | 2,860 | 2,805 | 2,707 | 5,665 | 5,042 | ||||||||||||||
| Occupancy of bank premises | 2,243 | 2,582 | 2,785 | 4,825 | 4,887 | ||||||||||||||
| Furniture and equipment | 548 | 550 | 809 | 1,098 | 1,468 | ||||||||||||||
| Data processing | 2,606 | 2,925 | 2,883 | 5,531 | 7,206 | ||||||||||||||
| Marketing and customer relations | 996 | 996 | 1,359 | 1,992 | 2,195 | ||||||||||||||
| Amortization of intangible assets | 710 | 710 | 720 | 1,420 | 1,230 | ||||||||||||||
| FDIC insurance | 565 | 560 | 630 | 1,125 | 1,193 | ||||||||||||||
| Loan collection and servicing | 475 | 452 | 348 | 927 | 626 | ||||||||||||||
| Foreclosed assets | 10 | 49 | 97 | 59 | 158 | ||||||||||||||
| Other noninterest expense | 3,132 | 2,982 | 4,975 | 6,114 | 9,830 | ||||||||||||||
| Total noninterest expense | 30,509 | 31,268 | 33,973 | 61,777 | 69,906 | ||||||||||||||
| INCOME BEFORE INCOME TAX EXPENSE | 24,953 | 20,519 | 25,043 | 45,472 | 37,174 | ||||||||||||||
| INCOME TAX EXPENSE | 6,883 | 5,261 | 6,570 | 12,144 | 9,493 | ||||||||||||||
| NET INCOME | $ | 18,070 | $ | 15,258 | $ | 18,473 | $ | 33,328 | $ | 27,681 | |||||||||
| EARNINGS PER SHARE - BASIC | $ | 0.57 | $ | 0.48 | $ | 0.58 | $ | 1.05 | $ | 0.88 | |||||||||
| EARNINGS PER SHARE - DILUTED | $ | 0.57 | $ | 0.48 | $ | 0.58 | $ | 1.05 | $ | 0.88 | |||||||||
| WEIGHTED AVERAGE SHARES OF COMMON STOCK OUTSTANDING | 31,579,457 | 31,662,954 | 31,980,133 | 31,621,205 | 31,481,439 | ||||||||||||||
| HBT Financial, Inc. Unaudited Consolidated Financial Summary Consolidated Balance Sheets | |||||||||||
| (dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||
| ASSETS | |||||||||||
| Cash and due from banks | $ | 22,604 | $ | 19,989 | $ | 28,044 | |||||
| Interest-bearing deposits with banks | 172,636 | 240,223 | 81,764 | ||||||||
| Cash and cash equivalents | 195,240 | 260,212 | 109,808 | ||||||||
| Interest-bearing time deposits with banks | 520 | 515 | — | ||||||||
| Debt securities available-for-sale, at fair value | 669,055 | 669,020 | 822,788 | ||||||||
| Debt securities held-to-maturity | 512,549 | 517,472 | 533,231 | ||||||||
| Equity securities with readily determinable fair value | 3,228 | 3,324 | 3,152 | ||||||||
| Equity securities with no readily determinable fair value | 2,613 | 2,622 | 2,275 | ||||||||
| Restricted stock, at cost | 5,086 | 5,155 | 11,345 | ||||||||
| Loans held for sale | 858 | 3,479 | 8,829 | ||||||||
| Loans, before allowance for credit losses | 3,385,483 | 3,345,962 | 3,244,655 | ||||||||
| Allowance for credit losses | (40,806 | ) | (40,815 | ) | (37,814 | ) | |||||
| Loans, net of allowance for credit losses | 3,344,677 | 3,305,147 | 3,206,841 | ||||||||
| Bank owned life insurance | 24,235 | 24,069 | 23,594 | ||||||||
| Bank premises and equipment, net | 65,711 | 64,755 | 65,029 | ||||||||
| Bank premises held for sale | 317 | 317 | 35 | ||||||||
| Foreclosed assets | 320 | 277 | 3,080 | ||||||||
| Goodwill | 59,820 | 59,820 | 59,876 | ||||||||
| Intangible assets, net | 19,262 | 19,972 | 22,122 | ||||||||
| Mortgage servicing rights, at fair value | 18,984 | 19,081 | 20,133 | ||||||||
| Investments in unconsolidated subsidiaries | 1,614 | 1,614 | 1,614 | ||||||||
| Accrued interest receivable | 22,425 | 23,117 | 19,900 | ||||||||
| Other assets | 59,685 | 60,542 | 62,158 | ||||||||
| Total assets | $ | 5,006,199 | $ | 5,040,510 | $ | 4,975,810 | |||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||
| Liabilities | |||||||||||
| Deposits: | |||||||||||
| Noninterest-bearing | $ | 1,045,697 | $ | 1,047,074 | $ | 1,125,823 | |||||
| Interest-bearing | 3,272,996 | 3,313,500 | 3,038,700 | ||||||||
| Total deposits | 4,318,693 | 4,360,574 | 4,164,523 | ||||||||
| Securities sold under agreements to repurchase | 29,330 | 31,864 | 38,729 | ||||||||
| Federal Home Loan Bank advances | 13,734 | 12,725 | 177,572 | ||||||||
| Subordinated notes | 39,514 | 39,494 | 39,435 | ||||||||
| Junior subordinated debentures issued to capital trusts | 52,819 | 52,804 | 52,760 | ||||||||
| Other liabilities | 42,640 | 46,368 | 51,939 | ||||||||
| Total liabilities | 4,496,730 | 4,543,829 | 4,524,958 | ||||||||
| Stockholders' Equity | |||||||||||
| Common stock | 328 | 328 | 327 | ||||||||
| Surplus | 296,430 | 296,054 | 294,875 | ||||||||
| Retained earnings | 290,386 | 278,353 | 241,777 | ||||||||
| Accumulated other comprehensive income (loss) | (54,656 | ) | (56,048 | ) | (70,662 | ) | |||||
| Treasury stock at cost | (23,019 | ) | (22,006 | ) | (15,465 | ) | |||||
| Total stockholders' equity | 509,469 | 496,681 | 450,852 | ||||||||
| Total liabilities and stockholders' equity | $ | 5,006,199 | $ | 5,040,510 | $ | 4,975,810 | |||||
| SHARES OF COMMON STOCK OUTSTANDING | 31,559,366 | 31,612,888 | 31,865,868 | ||||||||
| HBT Financial, Inc. Unaudited Consolidated Financial Summary | |||||||||||
| (dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||
| LOANS | |||||||||||
| Commercial and industrial | $ | 400,276 | $ | 402,206 | $ | 385,768 | |||||
| Commercial real estate - owner occupied | 289,992 | 294,967 | 303,522 | ||||||||
| Commercial real estate - non-owner occupied | 889,193 | 890,251 | 882,598 | ||||||||
| Construction and land development | 365,371 | 345,991 | 335,262 | ||||||||
| Multi-family | 429,951 | 421,573 | 375,536 | ||||||||
| One-to-four family residential | 484,335 | 485,948 | 482,442 | ||||||||
| Agricultural and farmland | 285,822 | 287,205 | 259,858 | ||||||||
| Municipal, consumer, and other | 240,543 | 217,821 | 219,669 | ||||||||
| Total loans | $ | 3,385,483 | $ | 3,345,962 | $ | 3,244,655 | |||||
| (dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||
| DEPOSITS | |||||||||||
| Noninterest-bearing deposits | $ | 1,045,697 | $ | 1,047,074 | $ | 1,125,823 | |||||
| Interest-bearing deposits: | |||||||||||
| Interest-bearing demand | 1,094,797 | 1,139,172 | 1,181,187 | ||||||||
| Money market | 769,386 | 802,685 | 680,642 | ||||||||
| Savings | 582,752 | 602,739 | 657,506 | ||||||||
| Time | 796,069 | 713,142 | 468,355 | ||||||||
| Brokered | 29,992 | 55,762 | 51,010 | ||||||||
| Total interest-bearing deposits | 3,272,996 | 3,313,500 | 3,038,700 | ||||||||
| Total deposits | $ | 4,318,693 | $ | 4,360,574 | $ | 4,164,523 | |||||
| HBT Financial, Inc. Unaudited Consolidated Financial Summary | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||||||||||||||||||||
| (dollars in thousands) | Average Balance | Interest | Yield/Cost * | Average Balance | Interest | Yield/Cost * | Average Balance | Interest | Yield/Cost * | ||||||||||||||||||||
| ASSETS | |||||||||||||||||||||||||||||
| Loans | $ | 3,374,058 | $ | 53,274 | 6.35 | % | $ | 3,371,219 | $ | 53,020 | 6.33 | % | $ | 3,238,774 | $ | 48,189 | 5.97 | % | |||||||||||
| Securities | 1,195,287 | 6,907 | 2.32 | 1,221,447 | 6,847 | 2.25 | 1,384,180 | 7,680 | 2.23 | ||||||||||||||||||||
| Deposits with banks | 211,117 | 2,570 | 4.90 | 167,297 | 1,952 | 4.69 | 84,366 | 781 | 3.71 | ||||||||||||||||||||
| Other | 5,096 | 73 | 5.80 | 5,486 | 142 | 10.40 | 8,577 | 118 | 5.52 | ||||||||||||||||||||
| Total interest-earning assets | 4,785,558 | $ | 62,824 | 5.28 | % | 4,765,449 | $ | 61,961 | 5.23 | % | 4,715,897 | $ | 56,768 | 4.83 | % | ||||||||||||||
| Allowance for credit losses | (40,814 | ) | (40,238 | ) | (39,484 | ) | |||||||||||||||||||||||
| Noninterest-earning assets | 283,103 | 278,253 | 299,622 | ||||||||||||||||||||||||||
| Total assets | $ | 5,027,847 | $ | 5,003,464 | $ | 4,976,035 | |||||||||||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||||||||||||
| Liabilities | |||||||||||||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||||||||||||
| Interest-bearing demand | $ | 1,123,592 | $ | 1,429 | 0.51 | % | $ | 1,127,684 | $ | 1,311 | 0.47 | % | $ | 1,224,285 | $ | 683 | 0.22 | % | |||||||||||
| Money market | 788,744 | 4,670 | 2.38 | 812,684 | 4,797 | 2.37 | 674,200 | 1,506 | 0.90 | ||||||||||||||||||||
| Savings | 592,312 | 393 | 0.27 | 611,224 | 443 | 0.29 | 687,014 | 189 | 0.11 | ||||||||||||||||||||
| Time | 763,507 | 7,117 | 3.75 | 664,498 | 5,925 | 3.59 | 447,025 | 1,933 | 1.73 | ||||||||||||||||||||
| Brokered | 38,213 | 524 | 5.51 | 82,150 | 1,117 | 5.47 | 1,451 | 12 | 3.44 | ||||||||||||||||||||
| Total interest-bearing deposits | 3,306,368 | 14,133 | 1.72 | 3,298,240 | 13,593 | 1.66 | 3,033,975 | 4,323 | 0.57 | ||||||||||||||||||||
| Securities sold under agreements to repurchase | 30,440 | 129 | 1.70 | 32,456 | 152 | 1.89 | 34,170 | 34 | 0.40 | ||||||||||||||||||||
| Borrowings | 13,466 | 121 | 3.60 | 13,003 | 125 | 3.87 | 173,040 | 2,189 | 5.07 | ||||||||||||||||||||
| Subordinated notes | 39,504 | 469 | 4.78 | 39,484 | 470 | 4.78 | 39,424 | 469 | 4.78 | ||||||||||||||||||||
| Junior subordinated debentures issued to capital trusts | 52,812 | 944 | 7.18 | 52,796 | 933 | 7.11 | 52,752 | 881 | 6.70 | ||||||||||||||||||||
| Total interest-bearing liabilities | 3,442,590 | $ | 15,796 | 1.85 | % | 3,435,979 | $ | 15,273 | 1.79 | % | 3,333,361 | $ | 7,896 | 0.95 | % | ||||||||||||||
| Noninterest-bearing deposits | 1,043,614 | 1,036,402 | 1,145,089 | ||||||||||||||||||||||||||
| Noninterest-bearing liabilities | 39,806 | 37,107 | 43,080 | ||||||||||||||||||||||||||
| Total liabilities | 4,526,010 | 4,509,488 | 4,521,530 | ||||||||||||||||||||||||||
| Stockholders' Equity | 501,837 | 493,976 | 454,505 | ||||||||||||||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,027,847 | $ | 5,003,464 | $ | 4,976,035 | |||||||||||||||||||||||
| Net interest income/Net interest margin (1) | $ | 47,028 | 3.95 | % | $ | 46,688 | 3.94 | % | $ | 48,872 | 4.16 | % | |||||||||||||||||
| Tax-equivalent adjustment (2) | 553 | 0.05 | 575 | 0.05 | 715 | 0.06 | |||||||||||||||||||||||
| Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3) | $ | 47,581 | 4.00 | % | $ | 47,263 | 3.99 | % | $ | 49,587 | 4.22 | % | |||||||||||||||||
| Net interest rate spread (4) | 3.43 | % | 3.44 | % | 3.88 | % | |||||||||||||||||||||||
| Net interest-earning assets (5) | $ | 1,342,968 | $ | 1,329,470 | $ | 1,382,536 | |||||||||||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 1.39 | 1.39 | 1.41 | ||||||||||||||||||||||||||
| Cost of total deposits | 1.31 | % | 1.26 | % | 0.41 | % | |||||||||||||||||||||||
| Cost of funds | 1.42 | 1.37 | 0.71 | ||||||||||||||||||||||||||
____________________________________
- Annualized measure.
(1) Net interest margin represents net interest income divided by average total interest-earning assets.
(2) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
(4) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
| HBT Financial, Inc. Unaudited Consolidated Financial Summary | |||||||||||||||||||
| Six Months Ended | |||||||||||||||||||
| June 30, 2024 | June 30, 2023 | ||||||||||||||||||
| (dollars in thousands) | Average Balance | Interest | Yield/Cost * | Average Balance | Interest | Yield/Cost * | |||||||||||||
| ASSETS | |||||||||||||||||||
| Loans | $ | 3,372,640 | $ | 106,294 | 6.34 | % | $ | 3,126,173 | $ | 91,300 | 5.89 | % | |||||||
| Securities | 1,208,367 | 13,754 | 2.29 | 1,397,821 | 15,493 | 2.24 | |||||||||||||
| Deposits with banks | 189,207 | 4,522 | 4.81 | 88,343 | 1,520 | 3.47 | |||||||||||||
| Other | 5,291 | 215 | 8.18 | 8,004 | 234 | 5.89 | |||||||||||||
| Total interest-earning assets | 4,775,505 | $ | 124,785 | 5.25 | % | 4,620,341 | $ | 108,547 | 4.74 | % | |||||||||
| Allowance for credit losses | (40,526 | ) | (36,410 | ) | |||||||||||||||
| Noninterest-earning assets | 280,676 | 287,314 | |||||||||||||||||
| Total assets | $ | 5,015,655 | $ | 4,871,245 | |||||||||||||||
| LIABILITIES AND STOCKHOLDERS' EQUITY | |||||||||||||||||||
| Liabilities | |||||||||||||||||||
| Interest-bearing deposits: | |||||||||||||||||||
| Interest-bearing demand | $ | 1,125,638 | $ | 2,740 | 0.49 | % | $ | 1,227,447 | $ | 1,141 | 0.19 | % | |||||||
| Money market | 800,714 | 9,467 | 2.38 | 654,514 | 2,441 | 0.75 | |||||||||||||
| Savings | 601,768 | 836 | 0.28 | 698,375 | 367 | 0.11 | |||||||||||||
| Time | 714,003 | 13,042 | 3.67 | 402,151 | 2,736 | 1.37 | |||||||||||||
| Brokered | 60,181 | 1,641 | 5.48 | 729 | 12 | 3.44 | |||||||||||||
| Total interest-bearing deposits | 3,302,304 | 27,726 | 1.69 | 2,983,216 | 6,697 | 0.45 | |||||||||||||
| Securities sold under agreements to repurchase | 31,448 | 281 | 1.80 | 36,879 | 72 | 0.39 | |||||||||||||
| Borrowings | 13,235 | 246 | 3.73 | 143,632 | 3,486 | 4.89 | |||||||||||||
| Subordinated notes | 39,494 | 939 | 4.78 | 39,414 | 939 | 4.81 | |||||||||||||
| Junior subordinated debentures issued to capital trusts | 52,804 | 1,877 | 7.15 | 50,183 | 1,644 | 6.61 | |||||||||||||
| Total interest-bearing liabilities | 3,439,285 | $ | 31,069 | 1.82 | % | 3,253,324 | $ | 12,838 | 0.80 | % | |||||||||
| Noninterest-bearing deposits | 1,040,007 | 1,133,292 | |||||||||||||||||
| Noninterest-bearing liabilities | 38,457 | 46,181 | |||||||||||||||||
| Total liabilities | 4,517,749 | 4,432,797 | |||||||||||||||||
| Stockholders' Equity | 497,906 | 438,448 | |||||||||||||||||
| Total liabilities and stockholders' equity | $ | 5,015,655 | 4,871,245 | ||||||||||||||||
| Net interest income/Net interest margin (1) | $ | 93,716 | 3.95 | % | $ | 95,709 | 4.18 | % | |||||||||||
| Tax-equivalent adjustment (2) | 1,128 | 0.04 | 1,417 | 0.06 | |||||||||||||||
| Net interest income (tax-equivalent basis)/ Net interest margin (tax-equivalent basis) (2) (3) | $ | 94,844 | 3.99 | % | $ | 97,126 | 4.24 | % | |||||||||||
| Net interest rate spread (4) | 3.43 | % | 3.94 | % | |||||||||||||||
| Net interest-earning assets (5) | $ | 1,336,220 | $ | 1,367,017 | |||||||||||||||
| Ratio of interest-earning assets to interest-bearing liabilities | 1.39 | 1.42 | |||||||||||||||||
| Cost of total deposits | 1.28 | % | 0.33 | % | |||||||||||||||
| Cost of funds | 1.39 | 0.59 | |||||||||||||||||
____________________________________
- Annualized measure.
(1) Net interest margin represents net interest income divided by average total interest-earning assets.
(2) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(3) See "Reconciliation of Non-GAAP Financial Measures" below for reconciliation of non-GAAP financial measures to their most closely comparable GAAP financial measures.
(4) Net interest rate spread represents the difference between the yield on average interest-earning assets and the cost of average interest-bearing liabilities.
(5) Net interest-earning assets represents total interest-earning assets less total interest-bearing liabilities.
| HBT Financial, Inc. Unaudited Consolidated Financial Summary | |||||||||||
| (dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | ||||||||
| NONPERFORMING ASSETS | |||||||||||
| Nonaccrual | $ | 8,425 | $ | 9,657 | $ | 7,534 | |||||
| Past due 90 days or more, still accruing | 7 | — | 1 | ||||||||
| Total nonperforming loans | 8,432 | 9,657 | 7,535 | ||||||||
| Foreclosed assets | 320 | 277 | 3,080 | ||||||||
| Total nonperforming assets | $ | 8,752 | $ | 9,934 | $ | 10,615 | |||||
| Nonperforming loans that are wholly or partially guaranteed by the U.S. Government | $ | 2,132 | $ | 2,676 | $ | 2,332 | |||||
| Allowance for credit losses | $ | 40,806 | $ | 40,815 | $ | 37,814 | |||||
| Loans, before allowance for credit losses | 3,385,483 | 3,345,962 | 3,244,655 | ||||||||
| CREDIT QUALITY RATIOS | |||||||||||
| Allowance for credit losses to loans, before allowance for credit losses | 1.21 | % | 1.22 | % | 1.17 | % | |||||
| Allowance for credit losses to nonaccrual loans | 484.34 | 422.65 | 501.91 | ||||||||
| Allowance for credit losses to nonperforming loans | 483.94 | 422.65 | 501.84 | ||||||||
| Nonaccrual loans to loans, before allowance for credit losses | 0.25 | 0.29 | 0.23 | ||||||||
| Nonperforming loans to loans, before allowance for credit losses | 0.25 | 0.29 | 0.23 | ||||||||
| Nonperforming assets to total assets | 0.17 | 0.20 | 0.21 | ||||||||
| Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets | 0.26 | 0.30 | 0.33 | ||||||||
| HBT Financial, Inc. Unaudited Consolidated Financial Summary | |||||||||||||||||||
| Three Months Ended | Six Months Ended June 30, | ||||||||||||||||||
| (dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | ||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES | |||||||||||||||||||
| Beginning balance | $ | 40,815 | $ | 40,048 | $ | 38,776 | $ | 40,048 | $ | 25,333 | |||||||||
| Adoption of ASC 326 | — | — | — | — | 6,983 | ||||||||||||||
| PCD allowance established in acquisition | — | — | — | — | 1,247 | ||||||||||||||
| Provision for credit losses | 677 | 560 | (1,080 | ) | 1,237 | 4,021 | |||||||||||||
| Charge-offs | (870 | ) | (227 | ) | (179 | ) | (1,097 | ) | (321 | ) | |||||||||
| Recoveries | 184 | 434 | 297 | 618 | 551 | ||||||||||||||
| Ending balance | $ | 40,806 | $ | 40,815 | $ | 37,814 | $ | 40,806 | $ | 37,814 | |||||||||
| Net charge-offs (recoveries) | $ | 686 | $ | (207 | ) | $ | (118 | ) | $ | 479 | $ | (230 | ) | ||||||
| Average loans | 3,374,058 | 3,371,219 | 3,238,774 | 3,372,640 | 3,126,173 | ||||||||||||||
| Net charge-offs (recoveries) to average loans * | 0.08 | % | (0.02)% | (0.01)% | 0.03 | % | (0.01)% | ||||||||||||
____________________________________
- Annualized measure.
| Three Months Ended | Six Months Ended June 30, | |||||||||||||||
| (dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | |||||||||||
| PROVISION FOR CREDIT LOSSES | ||||||||||||||||
| Loans (1) | $ | 677 | $ | 560 | $ | (1,080 | ) | $ | 1,237 | $ | 4,021 | |||||
| Unfunded lending-related commitments (1) | 499 | (33 | ) | 650 | 466 | 1,159 | ||||||||||
| Debt securities | — | — | 200 | — | 800 | |||||||||||
| Total provision for credit losses | $ | 1,176 | $ | 527 | $ | (230 | ) | $ | 1,703 | $ | 5,980 | |||||
____________________________________
(1) Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.
| Reconciliation of Non-GAAP Financial Measures – Adjusted Net Income and Adjusted Return on Average Assets | ||||||||||||||||||||
| Three Months Ended | Six Months Ended June 30, | |||||||||||||||||||
| (dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | |||||||||||||||
| Net income | $ | 18,070 | $ | 15,258 | $ | 18,473 | $ | 33,328 | $ | 27,681 | ||||||||||
| Adjustments: | ||||||||||||||||||||
| Acquisition expenses (1) | — | — | (627 | ) | — | (13,691 | ) | |||||||||||||
| Gains (losses) on closed branch premises | — | (635 | ) | 75 | (635 | ) | 75 | |||||||||||||
| Realized gains (losses) on sales of securities | — | (3,382 | ) | — | (3,382 | ) | (1,007 | ) | ||||||||||||
| Mortgage servicing rights fair value adjustment | (97 | ) | 80 | 141 | (17 | ) | (483 | ) | ||||||||||||
| Total adjustments | (97 | ) | (3,937 | ) | (411 | ) | (4,034 | ) | (15,106 | ) | ||||||||||
| Tax effect of adjustments (2) | 28 | 1,122 | 112 | 1,150 | 4,156 | |||||||||||||||
| Total adjustments after tax effect | (69 | ) | (2,815 | ) | (299 | ) | (2,884 | ) | (10,950 | ) | ||||||||||
| Adjusted net income | $ | 18,139 | $ | 18,073 | $ | 18,772 | $ | 36,212 | $ | 38,631 | ||||||||||
| Average assets | $ | 5,027,847 | $ | 5,003,464 | $ | 4,976,035 | $ | 5,015,655 | $ | 4,871,245 | ||||||||||
| Return on average assets * | 1.45 | % | 1.23 | % | 1.49 | % | 1.34 | % | 1.15 | % | ||||||||||
| Adjusted return on average assets * | 1.45 | 1.45 | 1.51 | 1.45 | 1.60 | |||||||||||||||
____________________________________
- Annualized measure.
(1) Includes recognition of an allowance for credit losses on non-PCD loans of $5.2 million and an allowance for credit losses on unfunded commitments of $0.7 million in connection with the Town and Country merger during the first quarter of 2023.
(2) Assumes a federal income tax rate of 21% and a state tax rate of 9.5%.
| Reconciliation of Non-GAAP Financial Measures – Adjusted Earnings Per Share — Basic and Diluted | |||||||||||||||||
| Three Months Ended | Six Months Ended June 30, | ||||||||||||||||
| (dollars in thousands, except per share amounts) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | ||||||||||||
| Numerator: | |||||||||||||||||
| Net income | $ | 18,070 | $ | 15,258 | $ | 18,473 | $ | 33,328 | $ | 27,681 | |||||||
| Earnings allocated to participating securities (1) | — | — | (11 | ) | — | (16 | ) | ||||||||||
| Numerator for earnings per share - basic and diluted | $ | 18,070 | $ | 15,258 | $ | 18,462 | $ | 33,328 | $ | 27,665 | |||||||
| Adjusted net income | $ | 18,139 | $ | 18,073 | $ | 18,772 | $ | 36,212 | $ | 38,631 | |||||||
| Earnings allocated to participating securities (1) | — | — | (10 | ) | — | (23 | ) | ||||||||||
| Numerator for adjusted earnings per share - basic and diluted | $ | 18,139 | $ | 18,073 | $ | 18,762 | $ | 36,212 | $ | 38,608 | |||||||
| Denominator: | |||||||||||||||||
| Weighted average common shares outstanding | 31,579,457 | 31,662,954 | 31,980,133 | 31,621,205 | 31,481,439 | ||||||||||||
| Dilutive effect of outstanding restricted stock units | 87,354 | 140,233 | 99,850 | 113,794 | 84,981 | ||||||||||||
| Weighted average common shares outstanding, including all dilutive potential shares | 31,666,811 | 31,803,187 | 32,079,983 | 31,734,999 | 31,566,420 | ||||||||||||
| Earnings per share - Basic | $ | 0.57 | $ | 0.48 | $ | 0.58 | $ | 1.05 | $ | 0.88 | |||||||
| Earnings per share - Diluted | $ | 0.57 | $ | 0.48 | $ | 0.58 | $ | 1.05 | $ | 0.88 | |||||||
| Adjusted earnings per share - Basic | $ | 0.57 | $ | 0.57 | $ | 0.59 | $ | 1.15 | $ | 1.23 | |||||||
| Adjusted earnings per share - Diluted | $ | 0.57 | $ | 0.57 | $ | 0.58 | $ | 1.14 | $ | 1.22 | |||||||
____________________________________
(1) The Company previously granted restricted stock units that contain non-forfeitable rights to dividend equivalents, which were considered participating securities. Prior to 2024, these restricted stock units were included in the calculation of basic earnings per share using the two-class method. The two-class method of computing earnings per share is an earnings allocation formula that determines earnings per share for each class of common stock and participating security according to dividends declared (or accumulated) and participation rights in undistributed earnings.
| Reconciliation of Non-GAAP Financial Measures – Net Interest Income (Tax-equivalent Basis) and Net Interest Margin (Tax-equivalent Basis) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended June 30, | |||||||||||||||||||
| (dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | |||||||||||||||
| Net interest income (tax-equivalent basis) | ||||||||||||||||||||
| Net interest income | $ | 47,028 | $ | 46,688 | $ | 48,872 | $ | 93,716 | $ | 95,709 | ||||||||||
| Tax-equivalent adjustment (1) | 553 | 575 | 715 | 1,128 | 1,417 | |||||||||||||||
| Net interest income (tax-equivalent basis) (1) | $ | 47,581 | $ | 47,263 | $ | 49,587 | $ | 94,844 | $ | 97,126 | ||||||||||
| Net interest margin (tax-equivalent basis) | ||||||||||||||||||||
| Net interest margin * | 3.95 | % | 3.94 | % | 4.16 | % | 3.95 | % | 4.18 | % | ||||||||||
| Tax-equivalent adjustment * (1) | 0.05 | 0.05 | 0.06 | 0.04 | 0.06 | |||||||||||||||
| Net interest margin (tax-equivalent basis) * (1) | 4.00 | % | 3.99 | % | 4.22 | % | 3.99 | % | 4.24 | % | ||||||||||
| Average interest-earning assets | $ | 4,785,558 | $ | 4,765,449 | $ | 4,715,897 | $ | 4,775,505 | $ | 4,620,341 | ||||||||||
____________________________________
- Annualized measure.
(1) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.
| Reconciliation of Non-GAAP Financial Measures – Efficiency Ratio (Tax-equivalent Basis) | ||||||||||||||||||||
| Three Months Ended | Six Months Ended June 30, | |||||||||||||||||||
| (dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | |||||||||||||||
| Efficiency ratio (tax-equivalent basis) | ||||||||||||||||||||
| Total noninterest expense | $ | 30,509 | $ | 31,268 | $ | 33,973 | $ | 61,777 | $ | 69,906 | ||||||||||
| Less: amortization of intangible assets | 710 | 710 | 720 | 1,420 | 1,230 | |||||||||||||||
| Noninterest expense excluding amortization of intangible assets | $ | 29,799 | $ | 30,558 | $ | 33,253 | $ | 60,357 | $ | 68,676 | ||||||||||
| Net interest income | $ | 47,028 | $ | 46,688 | $ | 48,872 | $ | 93,716 | $ | 95,709 | ||||||||||
| Total noninterest income | 9,610 | 5,626 | 9,914 | 15,236 | 17,351 | |||||||||||||||
| Operating revenue | 56,638 | 52,314 | 58,786 | 108,952 | 113,060 | |||||||||||||||
| Tax-equivalent adjustment (1) | 553 | 575 | 715 | 1,128 | 1,417 | |||||||||||||||
| Operating revenue (tax-equivalent basis) (1) | $ | 57,191 | $ | 52,889 | $ | 59,501 | $ | 110,080 | $ | 114,477 | ||||||||||
| Efficiency ratio | 52.61 | % | 58.41 | % | 56.57 | % | 55.40 | % | 60.74 | % | ||||||||||
| Efficiency ratio (tax-equivalent basis) (1) | 52.10 | 57.78 | 55.89 | 54.83 | 59.99 | |||||||||||||||
____________________________________
(1) On a tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.
| Reconciliation of Non-GAAP Financial Measures – Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share | ||||||||||||
| (dollars in thousands, except per share data) | June 30, 2024 | March 31, 2024 | June 30, 2023 | |||||||||
| Tangible Common Equity | ||||||||||||
| Total stockholders' equity | $ | 509,469 | $ | 496,681 | $ | 450,852 | ||||||
| Less: Goodwill | 59,820 | 59,820 | 59,876 | |||||||||
| Less: Intangible assets, net | 19,262 | 19,972 | 22,122 | |||||||||
| Tangible common equity | $ | 430,387 | $ | 416,889 | $ | 368,854 | ||||||
| Tangible Assets | ||||||||||||
| Total assets | $ | 5,006,199 | $ | 5,040,510 | $ | 4,975,810 | ||||||
| Less: Goodwill | 59,820 | 59,820 | 59,876 | |||||||||
| Less: Intangible assets, net | 19,262 | 19,972 | 22,122 | |||||||||
| Tangible assets | $ | 4,927,117 | $ | 4,960,718 | $ | 4,893,812 | ||||||
| Total stockholders' equity to total assets | 10.18 | % | 9.85 | % | 9.06 | % | ||||||
| Tangible common equity to tangible assets | 8.74 | 8.40 | 7.54 | |||||||||
| Shares of common stock outstanding | 31,559,366 | 31,612,888 | 31,865,868 | |||||||||
| Book value per share | $ | 16.14 | $ | 15.71 | $ | 14.15 | ||||||
| Tangible book value per share | 13.64 | 13.19 | 11.58 | |||||||||
| Reconciliation of Non-GAAP Financial Measures – Return on Average Tangible Common Equity, Adjusted Return on Average Stockholders' Equity and Adjusted Return on Average Tangible Common Equity | ||||||||||||||||||||
| Three Months Ended | Six Months Ended June 30, | |||||||||||||||||||
| (dollars in thousands) | June 30, 2024 | March 31, 2024 | June 30, 2023 | 2024 | 2023 | |||||||||||||||
| Average Tangible Common Equity | ||||||||||||||||||||
| Total stockholders' equity | $ | 501,837 | $ | 493,976 | $ | 454,505 | $ | 497,906 | $ | 438,448 | ||||||||||
| Less: Goodwill | 59,820 | 59,820 | 59,876 | 59,820 | 54,643 | |||||||||||||||
| Less: Intangible assets, net | 19,605 | 20,334 | 22,520 | 19,970 | 19,097 | |||||||||||||||
| Average tangible common equity | $ | 422,412 | $ | 413,822 | $ | 372,109 | $ | 418,116 | $ | 364,708 | ||||||||||
| Net income | $ | 18,070 | $ | 15,258 | $ | 18,473 | $ | 33,328 | $ | 27,681 | ||||||||||
| Adjusted net income | 18,139 | 18,073 | 18,772 | 36,212 | 38,631 | |||||||||||||||
| Return on average stockholders' equity * | 14.48 | % | 12.42 | % | 16.30 | % | 13.46 | % | 12.73 | % | ||||||||||
| Return on average tangible common equity * | 17.21 | 14.83 | 19.91 | 16.03 | 15.31 | |||||||||||||||
| Adjusted return on average stockholders' equity * | 14.54 | % | 14.72 | % | 16.57 | % | 14.63 | % | 17.77 | % | ||||||||||
| Adjusted return on average tangible common equity * | 17.27 | 17.57 | 20.23 | 17.42 | 21.36 | |||||||||||||||
____________________________________
- Annualized measure.
