HBT Financial Inc.

08/01/2025 | Press release | Distributed by Public on 08/01/2025 14:15

Quarterly Report for Quarter Ending June 30, 2025 (Form 10-Q)

MANAGEMENT'S DISCUSSION AND ANALYSIS OF FINANCIAL CONDITION AND RESULTS OF OPERATIONS
Unless the context requires otherwise, references in this report to the "Company," "we," "us" and "our" refer to HBT Financial, Inc. and its subsidiaries.
The following is management's discussion and analysis of the financial condition as of June 30, 2025 (unaudited), as compared with December 31, 2024, and the results of operations for the three and six months ended June 30, 2025 and 2024 (unaudited). Management's discussion and analysis should be read in conjunction with the Company's unaudited consolidated financial statements and notes thereto appearing elsewhere in this Quarterly Report on Form 10-Q, as well as the Company's audited consolidated financial statements included in the Company's Annual Report on Form 10-K for the year ended December 31, 2024, filed with the SEC on March 7, 2025. Results of operations for the three and six months ended June 30, 2025 and 2024 are not necessarily indicative of results to be attained for the year ended December 31, 2025,or for any other period.
OVERVIEW
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. We provide a comprehensive suite of financial products and services to consumers, businesses, and municipal entities throughout Illinois and eastern Iowa. As of June 30, 2025, the Company had total assets of $5.0 billion, loans held for investment of $3.3 billion, and total deposits of $4.3 billion.
Market Area
As of June 30, 2025, our branch network included 66 full-service branch locations throughout Illinois and eastern Iowa. We hold a leading deposit share in many of our central Illinois markets, which we define as a top three deposit share rank, providing the foundation for our strong deposit base. The stability provided by this low-cost funding is a key driver of our strong track record of financial performance. Below is a summary of our loan and deposit balances by geographic region:
June 30, 2025 December 31, 2024
(dollars in thousands) Loans Deposits Loans Deposits
Central $ 1,597,764 $ 2,945,980 $ 1,676,842 $ 2,984,820
Chicago MSA 1,409,457 1,251,114 1,443,777 1,218,098
Illinois 3,007,221 4,197,094 3,120,619 4,202,918
Iowa 340,990 109,437 345,527 115,336
Total $ 3,348,211 $ 4,306,531 $ 3,466,146 $ 4,318,254
RESULTS OF OPERATIONS
Overview of Recent Financial Results
Three Months Ended June 30, Six Months Ended June 30,
(dollars in thousands, except per share amounts) 2025 2024 2025 2024
Total interest and dividend income $ 63,919 $ 62,824 $ 127,057 $ 124,785
Total interest expense 14,261 15,796 28,691 31,069
Net interest income 49,658 47,028 98,366 93,716
Provision for credit losses 526 1,176 1,102 1,703
Net interest income after provision for credit losses 49,132 45,852 97,264 92,013
Total noninterest income 9,140 9,610 18,446 15,236
Total noninterest expense 31,914 30,509 63,849 61,777
Income before income tax expense 26,358 24,953 51,861 45,472
Income tax expense 7,128 6,883 13,556 12,144
Net income $ 19,230 $ 18,070 $ 38,305 $ 33,328
Adjusted net income (1)
$ 19,803 $ 18,139 $ 39,056 $ 36,212
Pre-provision net revenue (1)
$ 26,884 $ 26,129 $ 52,963 $ 47,175
Pre-provision net revenue less net charge-offs (1)
25,837 25,443 51,487 46,696
Adjusted pre-provision net revenue (1)
27,685 26,226 54,013 51,209
Adjusted pre-provision net revenue less net charge-offs (1)
26,638 25,540 52,537 50,730
Share and Per Share Information
Earnings per share - diluted $ 0.61 $ 0.57 $ 1.21 $ 1.05
Adjusted earnings per share - diluted (1)
0.63 0.57 1.23 1.14
Weighted average shares of common stock outstanding 31,510,759 31,579,457 31,547,669 31,621,205
Summary Ratios
Net interest margin * 4.14 % 3.95 % 4.13 % 3.95 %
Net interest margin (tax-equivalent basis) * (1) (2)
4.19 4.00 4.18 3.99
Yield on loans * 6.38 6.35 6.39 6.34
Yield on interest-earning assets * 5.33 5.28 5.33 5.25
Cost of total deposits * 1.19 1.31 1.20 1.28
Cost of funds * 1.29 1.42 1.30 1.39
Efficiency ratio 53.10 % 52.61 % 53.47 % 55.40 %
Efficiency ratio (tax-equivalent basis) (1) (2)
52.61 52.10 52.97 54.83
Adjusted efficiency ratio (tax-equivalent basis) (1) (2)
51.91 52.02 52.51 52.89
Return on average assets * 1.53 % 1.45 % 1.53 % 1.34 %
Return on average stockholders' equity * 13.47 14.48 13.70 13.46
Return on average tangible common equity * (1)
15.55 17.21 15.87 16.03
Adjusted return on average assets *(1)
1.58 % 1.45 % 1.56 % 1.45 %
Adjusted return on average stockholders' equity *(1)
13.87 14.54 13.97 14.63
Adjusted return on average tangible common equity * (1)
16.02 17.27 16.18 17.42
_________________________________________________
* Annualized measure.
(1)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measures to their most closely comparable GAAP measures.
(2)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
Comparison of the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024
For the three months ended June 30, 2025, net income was $19.2 million, increasing by $1.2 million, or 6.4%, when compared to net income for the three months ended June 30, 2024. Notable changes include the following:
•A $2.6 million increase in net interest income, primarily attributable to lower funding costs, improved yields on debt securities, and higher average loan balances;
•A $0.8 million negative mortgage servicing rights fair value adjustment included in the second quarter of 2025 results compared to a $0.1 million negative mortgage servicing rights fair value adjustment included in the second quarter 2024 results;
•A $0.7 million increase in benefits expense, primarily driven by higher medical benefits costs; and
•A $0.2 million increase in income tax expense, primarily related to $0.3 million of additional tax expense related to the nonrecurring reversal of a stranded tax effect included in accumulated other comprehensive income, in connection with the maturity of a derivative designated as a cash flow hedge during the second quarter of 2025.
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
For the six months ended June 30, 2025, net income was $38.3 million, increasing by $5.0 million, or 14.9%, when compared to net income for the six months ended June 30, 2024. Notable changes include the following:
•A $4.7 million increase in net interest income, primarily attributable to higher average loan balances, lower funding costs, and higher yields on debt securities;
•The absence of $3.4 million of losses on sales of securities during the first quarter of 2024;
•A $1.7 million increase in salaries and benefits expense, primarily driven by annual merit increases and higher medical benefits expense;
•A $1.1 million negative mortgage servicing rights fair value adjustment included in the 2025 results compared to a nearly flat mortgage servicing rights fair value adjustment included in the 2024 results;
•The absence of $0.6 million of impairment losses on bank premises related to the closure of two branch premises recognized in 2024;
•A $1.4 million increase in income tax expense, primarily due to an increase in pre-tax income as a result of the items noted above.
Net Interest Income
Net interest income equals the excess of interest income on interest earning assets (including discount accretion on acquired loans plus certain loan fees) over interest expense incurred on interest-bearing liabilities. Net interest margin, which is expressed as the percentage of net interest income to average interest-earning assets, is utilized to measure and explain changes in net interest income.
The following tables set forth average balances, average yields and costs, and certain other information. Average balances are daily average balances. Nonaccrual loans are included in the computation of average balances but have been reflected in the table as loans carrying a zero yield. The yields set forth below include the effect of deferred fees and costs as well as purchase accounting adjustments that are accreted or amortized to interest income or expense.
Three Months Ended
June 30, 2025 June 30, 2024
(dollars in thousands) Average Balance Interest Yield/Cost * Average Balance Interest Yield/Cost *
ASSETS
Loans $ 3,417,582 $ 54,371 6.38 % $ 3,374,058 $ 53,274 6.35 %
Debt securities 1,217,386 7,891 2.60 1,187,795 6,836 2.31
Deposits with banks 160,726 1,544 3.85 211,117 2,570 4.90
Other 12,519 113 3.66 12,588 144 4.60
Total interest-earning assets 4,808,213 $ 63,919 5.33 % 4,785,558 $ 62,824 5.28 %
Allowance for credit losses (42,118) (40,814)
Noninterest-earning assets 270,580 283,103
Total assets $ 5,036,675 $ 5,027,847
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand $ 1,125,787 $ 1,569 0.56 % $ 1,123,592 $ 1,429 0.51 %
Money market 813,531 4,463 2.20 788,744 4,670 2.38
Savings 569,193 374 0.26 592,312 393 0.27
Time 780,536 6,429 3.30 763,507 7,117 3.75
Brokered - - - 38,213 524 5.51
Total interest-bearing deposits 3,289,047 12,835 1.57 3,306,368 14,133 1.72
Securities sold under agreements to repurchase 1,420 - 0.05 30,440 129 1.70
Borrowings 7,225 30 1.70 13,466 121 3.60
Subordinated notes 39,582 469 4.76 39,504 469 4.78
Junior subordinated debentures issued to capital trusts 52,871 927 7.03 52,812 944 7.18
Total interest-bearing liabilities 3,390,145 $ 14,261 1.69 % 3,442,590 $ 15,796 1.85 %
Noninterest-bearing deposits 1,044,539 1,043,614
Noninterest-bearing liabilities 29,486 39,806
Total liabilities 4,464,170 4,526,010
Stockholders' Equity 572,505 501,837
Total liabilities and stockholders' equity $ 5,036,675 $ 5,027,847
Net interest income/Net interest margin (1)
$ 49,658 4.14 % $ 47,028 3.95 %
Tax-equivalent adjustment (2)
548 0.05 553 0.05
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$ 50,206 4.19 % $ 47,581 4.00 %
Net interest rate spread (4)
3.64 % 3.43 %
Net interest-earning assets (5)
$ 1,418,068 $ 1,342,968
Ratio of interest-earning assets to interest-bearing liabilities 1.42 1.39
Cost of total deposits 1.19 % 1.31 %
Cost of funds 1.29 1.42
_________________________________________________
*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 "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP 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.
Six Months Ended
June 30, 2025 June 30, 2024
(dollars in thousands) Average Balance Interest Yield/Cost * Average Balance Interest Yield/Cost *
ASSETS
Loans $ 3,439,124 $ 108,908 6.39 % $ 3,372,640 $ 106,294 6.34 %
Debt securities 1,210,941 15,296 2.55 1,200,871 13,637 2.28
Deposits with banks 140,483 2,609 3.75 189,207 4,522 4.81
Other 12,597 244 3.93 12,787 332 5.22
Total interest-earning assets 4,803,145 $ 127,057 5.33 % 4,775,505 $ 124,785 5.25 %
Allowance for credit losses (42,089) (40,526)
Noninterest-earning assets 273,193 280,676
Total assets $ 5,034,249 $ 5,015,655
LIABILITIES AND STOCKHOLDERS' EQUITY
Liabilities
Interest-bearing deposits:
Interest-bearing demand $ 1,123,212 $ 3,022 0.54 % $ 1,125,638 $ 2,740 0.49 %
Money market 810,645 8,860 2.20 800,714 9,467 2.38
Savings 569,343 744 0.26 601,768 836 0.28
Time 782,307 13,148 3.39 714,003 13,042 3.67
Brokered - - - 60,181 1,641 5.48
Total interest-bearing deposits 3,285,507 25,774 1.58 3,302,304 27,726 1.69
Securities sold under agreements to repurchase 5,067 22 0.89 31,448 281 1.80
Borrowings 10,042 139 2.79 13,235 246 3.73
Subordinated notes 39,573 939 4.79 39,494 939 4.78
Junior subordinated debentures issued to capital trusts 52,864 1,817 6.93 52,804 1,877 7.15
Total interest-bearing liabilities 3,393,053 $ 28,691 1.71 % 3,439,285 $ 31,069 1.82 %
Noninterest-bearing deposits 1,045,133 1,040,007
Noninterest-bearing liabilities 32,404 38,457
Total liabilities 4,470,590 4,517,749
Stockholders' Equity 563,659 497,906
Total liabilities and stockholders' equity $ 5,034,249 $ 5,015,655
Net interest income/Net interest margin (1)
$ 98,366 4.13 % $ 93,716 3.95 %
Tax-equivalent adjustment (2)
1,093 0.05 1,128 0.04
Net interest income (tax-equivalent basis)/
Net interest margin (tax-equivalent basis) (2) (3)
$ 99,459 4.18 % $ 94,844 3.99 %
Net interest rate spread (4)
3.62 % 3.43 %
Net interest-earning assets (5)
$ 1,410,092 $ 1,336,220
Ratio of interest-earning assets to interest-bearing liabilities 1.42 1.39
Cost of total deposits 1.20 % 1.28 %
Cost of funds 1.30 1.39
_________________________________________________
*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 "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP 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.
The following table sets forth the components of loan interest income and their contributions to the total loan yield.
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
(dollars in thousands) Interest Yield
Contribution * 		Interest Yield
Contribution * 		Interest Yield Contribution * Interest Yield Contribution *
Contractual interest $ 51,527 6.05 % $ 50,991 6.08 % $ 102,962 6.04 % $ 101,508 6.05 %
Loan fees 1,591 0.18 1,110 0.13 2,954 0.17 2,151 0.13
Accretion of acquired loan discounts 996 0.12 982 0.12 2,108 0.13 2,177 0.13
Nonaccrual interest recoveries 257 0.03 191 0.02 884 0.05 458 0.03
Total loan interest income $ 54,371 6.38 % $ 53,274 6.35 % $ 108,908 6.39 % $ 106,294 6.34 %
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* Annualized measure.
The following table sets forth the components of net interest income and their contributions to the net interest margin.
Three Months Ended June 30, Six Months Ended June 30,
2025 2024 2025 2024
(dollars in thousands) Interest Net Interest Margin Contribution * Interest Net Interest Margin Contribution * Interest Net Interest Margin Contribution * Interest Net Interest Margin Contribution *
Interest income:
Contractual interest on loans $ 51,527 4.30 % $ 50,991 4.29 % $ 102,962 4.32 % $ 101,508 4.27 %
Loan fees 1,591 0.13 1,110 0.09 2,954 0.12 2,151 0.09
Accretion of acquired loan discounts 996 0.08 982 0.08 2,108 0.09 2,177 0.09
Nonaccrual interest recoveries 257 0.02 191 0.02 884 0.04 458 0.02
Debt securities 7,891 0.66 6,836 0.58 15,296 0.64 13,637 0.58
Interest-bearing deposits in bank 1,544 0.13 2,570 0.21 2,609 0.11 4,522 0.19
Other 113 0.01 144 0.01 244 0.01 332 0.01
Total interest income 63,919 5.33 62,824 5.28 127,057 5.33 124,785 5.25
Interest expense:
Deposits 12,835 1.07 14,133 1.19 25,774 1.08 27,726 1.16
Other interest-bearing liabilities 1,426 0.12 1,663 0.14 2,917 0.12 3,343 0.14
Total interest expense 14,261 1.19 15,796 1.33 28,691 1.20 31,069 1.30
Net interest income 49,658 4.14 47,028 3.95 98,366 4.13 93,716 3.95
Tax-equivalent adjustment (1)
548 0.05 553 0.05 1,093 0.05 1,128 0.04
Net interest income (tax-equivalent) (1) (2)
$ 50,206 4.19 % $ 47,581 4.00 % $ 99,459 4.18 % $ 94,844 3.99 %
_________________________________________________
* Annualized measure.
(1)On a tax-equivalent basis assuming a federal income tax rate of 21% and a state income tax rate of 9.5%.
(2)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.
Rate/Volume Analysis
The following table sets forth the dollar amount of changes in interest income and interest expense for the major categories of our interest-earning assets and interest-bearing liabilities. Information is provided for each category of interest-earning assets and interest-bearing liabilities with respect to changes attributable to volume (i.e., changes in average balances multiplied by the prior-period average rate), and changes attributable to rate (i.e., changes in average rate multiplied by prior-period average balances). For purposes of this table, changes attributable to both volume and rate that cannot be segregated have been allocated proportionately to the change due to volume and the change due to rate.
Three Months Ended June 30, 2025
vs.
Three Months Ended June 30, 2024
Six Months Ended June 30, 2025
vs.
Six Months Ended June 30, 2024
Increase (Decrease) Due to Total Increase (Decrease) Due to Total
(dollars in thousands) Volume Rate Volume Rate
Interest-earning assets:
Loans $ 692 $ 405 $ 1,097 $ 2,105 $ 509 $ 2,614
Debt securities 174 881 1,055 115 1,544 1,659
Deposits with banks (545) (481) (1,026) (1,025) (888) (1,913)
Other (1) (30) (31) (5) (83) (88)
Total interest-earning assets 320 775 1,095 1,190 1,082 2,272
Interest-bearing liabilities:
Interest-bearing deposits:
Interest-bearing demand 3 137 140 (6) 288 282
Money market 144 (351) (207) 116 (723) (607)
Savings (13) (6) (19) (44) (48) (92)
Time 156 (844) (688) 1,193 (1,087) 106
Brokered (524) - (524) (1,641) - (1,641)
Total interest-bearing deposits (234) (1,064) (1,298) (382) (1,570) (1,952)
Securities sold under agreements to repurchase (64) (65) (129) (161) (98) (259)
Borrowings (42) (49) (91) (52) (55) (107)
Subordinated notes 1 (1) - 2 (2) -
Junior subordinated debentures issued to capital trusts 1 (18) (17) 2 (62) (60)
Total interest-bearing liabilities (338) (1,197) (1,535) (591) (1,787) (2,378)
Change in net interest income $ 658 $ 1,972 $ 2,630 $ 1,781 $ 2,869 $ 4,650
Comparison of the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024
Net interest income for the three months ended June 30, 2025 was $49.7 million, increasing $2.6 million, or 5.6%, when compared to the three months ended June 30, 2024. The increase is primarily attributable to lower funding costs, improved yields on debt securities, and higher average loan balances. Additionally, a $0.5 million increase in nonaccrual interest recoveries and loan fees contributed to the increase in net interest income.
Net interest margin increased to 4.14% for the three months ended June 30, 2025, compared to 3.95% for the three months ended June 30, 2024. The increase was primarily attributable to lower funding costs, higher yields on interest-earning assets, and an increase in nonaccrual interest recoveries and loan fees. The increase in the contribution of nonaccrual interest recoveries and loan fees accounted for 4 basis points of the increase in net interest margin. Additionally, the contribution of acquired loan discount accretion to net interest margin was 8 basis points for each of the three months ended June 30, 2025 and 2024.
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
Net interest income for the six months ended June 30, 2025 was $98.4 million, increasing $4.7 million, or 5.0%, when compared to the six months ended June 30, 2024. The increase is primarily attributable to higher average loan balances, a decrease in funding costs, and higher yields on debt securities. Also contributing was a $1.2 million increase in nonaccrual interest recoveries and loan fees.
Net interest margin increased to 4.13% for the six months ended June 30, 2025, compared to 3.95% for the six months ended June 30, 2024. The increase was primarily attributable to a decrease in funding costs and higher yields on interest-earning assets. The increase in the contribution of nonaccrual interest recoveries and loan fees accounted for 5 basis points of the increase in net interest margin. Additionally, the contribution of acquired loan discount accretion to net interest margin was 9 basis points for each of the six months ended June 30, 2025 and 2024.
The quarterly net interest margins were as follows:
2025 2024
Three months ended:
March 31 4.12 % 3.94 %
June 30 4.14 3.95
September 30 - 3.98
December 31 - 3.96
In early 2024, our net interest margin was relatively stable, with increases in our loans and debt security yields being mostly offset by increases in funding costs. In September 2024, the Federal Open Market Committee ("FOMC") began lowering interest rates, with the target range for the federal funds rate decreasing by 100 basis points to a range of 4.25% to 4.50% by the end of 2024. These changes contributed to a decrease in funding costs and yields on variable rate loans while maturing fixed rate loans and securities continued to reprice at higher rates, driving our net interest margin higher in the first half of 2025.
Decreases in market interest rates, and potential future decreases, may put downward pressure on our net interest margin, as the negative impact on floating rate loans may not be fully offset by the positive impacts of maturing fixed rate loans and securities repricing at higher rates or potential decreases in deposit costs. Generally, we expect increases in market interest rates will increase our net interest income and net interest margin in future periods, while decreases in market interest rates may decrease our net interest income and net interest margin in future periods; however, this depends upon the timing and extent of both short-term and long-term interest rate fluctuations and may not always be the case.
Additionally, in September 2025 the Company's $40 million of subordinated notes become callable and the interest rate will become floating. If we choose to call the subordinated notes during the third quarter of 2025, we would expect to recognize a loss of $0.4 million for the unamortized issuance costs.
Provision for Credit Losses
The following table sets forth the components of provision for credit losses for the periods indicated:
Three Months Ended June 30, Six Months Ended June 30,
(dollars in thousands) 2025 2024 2025 2024
PROVISION FOR CREDIT LOSSES
Loans $ 595 $ 677 $ 1,091 $ 1,237
Unfunded lending-related commitments (69) 499 11 466
Total provision for credit losses $ 526 $ 1,176 $ 1,102 $ 1,703
Comparison of the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024
The Company recorded a provision for credit losses of $0.5 million during the three months ended June 30, 2025, compared to a $1.2 million provision during the three months ended June 30, 2024. The second quarter of 2025 provision for credit losses primarily reflects a $1.0 million increase in required reserves resulting from changes in economic forecasts; a $0.8 million increase in required reserves resulting from qualitative factor changes; a $1.2 million decrease in required reserves driven by decreased loan balances and changes within the loan portfolio; and a $0.1 million decrease in specific reserves.
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
The Company recorded a provision for credit losses of $1.1 million for the six months ended June 30, 2025, compared to a $1.7 million provision during the six months ended June 30, 2024. The 2025 provision for credit losses primarily reflects a $1.6 million increase in required reserves resulting from changes in qualitative factors; a $1.0 million increase in required reserves resulting from changes in economic forecasts; a $1.1 million decrease in required reserves driven by changes within the portfolio; and a $0.4 million decrease in specific reserves.
Credit losses are highly dependent on current and forecast economic conditions. Potential deterioration of economic conditions may lead to higher credit losses and adversely impact our financial condition and results of operations. The economic forecasts utilized in estimating the allowance for credit losses on loans and unfunded lending-related commitments include the unemployment rate and changes in GDP as macroeconomic variables, although other economic metrics are considered on a qualitative basis.
Noninterest Income
The following table sets forth the major categories of noninterest income for the periods indicated:
Three Months Ended June 30, Six Months Ended June 30,
(dollars in thousands) 2025 2024 $ Change % Change 2025 2024 $ Change % Change
Card income $ 2,797 $ 2,885 $ (88) (3.1) % $ 5,345 $ 5,501 $ (156) (2.8) %
Wealth management fees 2,826 2,623 203 7.7 5,667 5,170 497 9.6
Service charges on deposit accounts 1,915 1,902 13 0.7 3,859 3,771 88 2.3
Mortgage servicing 1,042 1,111 (69) (6.2) 2,032 2,166 (134) (6.2)
Mortgage servicing rights fair value adjustment (751) (97) (654) NM (1,059) (17) (1,042) NM
Gains on sale of mortgage loans 459 443 16 3.6 711 741 (30) (4.0)
Realized gains (losses) on sales of securities - - - NM - (3,382) 3,382 NM
Unrealized gains (losses) on equity securities 23 (96) 119 NM 31 (112) 143 NM
Gains (losses) on foreclosed assets 14 (28) 42 NM 27 59 (32) (54.2)
Gains (losses) on other assets (128) - (128) NM (74) (635) 561 NM
Income on bank owned life insurance 167 166 1 0.6 331 330 1 0.3
Other noninterest income 776 701 75 10.7 1,576 1,644 (68) (4.1)
Total $ 9,140 $ 9,610 $ (470) (4.9) % $ 18,446 $ 15,236 $ 3,210 21.1 %
_________________________________________________
NM Not meaningful.
Comparison of the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024
Total noninterest income for the three months ended June 30, 2025, was $9.1 million, a decrease of $0.5 million, or 4.9%, from the three months ended June 30, 2024. Notable changes in noninterest income include the following:
•A $0.8 million negative mortgage servicing rights fair value adjustment included the second quarter of 2025 results, primarily reflecting changes in the prepayment and future interest rate assumptions utilized in the valuations, compared to a $0.1 million negative mortgage servicing rights fair value adjustment included in the second quarter 2024 results;
•A $0.2 million increase in wealth management fees, driven by higher values of assets under management and an increase in farm management income; and
•A $0.1 million impairment loss on bank premises held for sale recognized during the second quarter of 2025 which was not present in the second quarter of 2024 results.
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
Total noninterest income for the six months ended June 30, 2025, was $18.4 million, an increase of $3.2 million, or 21.1%, from the six months ended June 30, 2024. Notable changes in noninterest income include the following:
•The absence of $3.4 million of losses on sales of securities during the first quarter of 2024;
•A $1.1 million negative mortgage servicing rights fair value adjustment included in the 2025 results compared to a nearly flat mortgage servicing rights fair value adjustment included in the 2024 results;
•The absence of $0.6 million of impairment losses on bank premises related to the closure of two branch premises recognized in the 2024 results; and
•A $0.5 million increase in wealth management fees, driven primarily by higher assets under management and an increase in farm management income.
Noninterest Expense
The following table sets forth the major categories of noninterest expense for the periods indicated:
Three Months Ended June 30, Six Months Ended June 30,
(dollars in thousands) 2025 2024 $ Change % Change 2025 2024 $ Change % Change
Salaries $ 16,452 $ 16,364 $ 88 0.5 % $ 33,505 $ 33,021 $ 484 1.5 %
Employee benefits 3,580 2,860 720 25.2 6,865 5,665 1,200 21.2
Occupancy of bank premises 2,471 2,243 228 10.2 5,096 4,825 271 5.6
Furniture and equipment 575 548 27 4.9 1,020 1,098 (78) (7.1)
Data processing 2,687 2,606 81 3.1 5,404 5,531 (127) (2.3)
Marketing and customer relations 1,020 996 24 2.4 2,164 1,992 172 8.6
Amortization of intangible assets 694 710 (16) (2.3) 1,389 1,420 (31) (2.2)
FDIC insurance 551 565 (14) (2.5) 1,113 1,125 (12) (1.1)
Loan collection and servicing 360 475 (115) (24.2) 743 927 (184) (19.8)
Foreclosed assets 67 10 57 570.0 72 59 13 22.0
Other noninterest expense 3,457 3,132 325 10.4 6,478 6,114 364 6.0
Total $ 31,914 $ 30,509 $ 1,405 4.6 % $ 63,849 $ 61,777 $ 2,072 3.4 %
Comparison of the Three Months Ended June 30, 2025 to the Three Months Ended June 30, 2024
Total noninterest expense for the three months ended June 30, 2025, was $31.9 million, an increase of $1.4 million, or 4.6%, from the three months ended June 30, 2024. Notable changes in noninterest expense include the following:
•A $0.7 million increase in benefits expense, primarily driven by higher medical benefits costs;
•A $0.3 million increase in other noninterest expense; and
•A $0.2 million increase in bank occupancy expense, primarily due to planned building maintenance and upgrades.
Comparison of the Six Months Ended June 30, 2025 to the Six Months Ended June 30, 2024
Total noninterest expense for the six months ended June 30, 2025, was $63.8 million, an increase of $2.1 million, or 3.4%, from the six months ended June 30, 2024. Notable changes in noninterest expense include the following:
•A $1.2 million increase in employee benefits expense, primarily driven by higher medical benefits cost;
•A $0.5 million increase in salaries expense, primarily driven by annual merit increases; and
•A $0.3 million increase in bank occupancy expense, primarily due to planned building maintenance and upgrades.
Income Taxes
During the three months ended June 30, 2025 and 2024, we recorded income tax expense of $7.1 million, or an effective tax rate of 27.0%, and $6.9 million, or an effective tax rate of 27.6%, respectively. During the six months ended June 30, 2025 and 2024, we recorded income tax expense of $13.6 million, or an effective tax rate of 26.1%, and $12.1 million, or an effective tax rate of 26.7%, respectively. The higher effective tax rate during 2024 was primarily attributable to an additional $0.5 million of tax expense for a deferred tax asset write-down, recognized during the second quarter of 2024, as a result of an Illinois tax change. Additionally, $0.3 million of additional tax expense was recognized during the second quarter of 2025, related to the nonrecurring reversal of a stranded tax effect included in accumulated other comprehensive income, in connection with the maturity of a derivative designated as a cash flow hedge.
FINANCIAL CONDITION
(dollars in thousands, except per share data) June 30,
2025 		December 31,
2024 		$ Change % Change
Cash and cash equivalents $ 195,742 $ 137,692 $ 58,050 42.2 %
Debt securities available-for-sale, at fair value 773,206 698,049 75,157 10.8
Debt securities held-to-maturity 481,942 499,858 (17,916) (3.6)
Loans held for sale 2,316 1,586 730 46.0
Loans, before allowance for credit losses 3,348,211 3,466,146 (117,935) (3.4)
Less: allowance for credit losses 41,659 42,044 (385) (0.9)
Loans, net of allowance for credit losses 3,306,552 3,424,102 (117,550) (3.4)
Goodwill 59,820 59,820 - -
Intangible assets, net 16,454 17,843 (1,389) (7.8)
Other assets 182,366 193,952 (11,586) (6.0)
Total assets $ 5,018,398 $ 5,032,902 $ (14,504) (0.3) %
Total deposits $ 4,306,531 $ 4,318,254 $ (11,723) (0.3) %
Securities sold under agreements to repurchase 556 28,969 (28,413) (98.1)
Borrowings 7,240 13,231 (5,991) (45.3)
Subordinated notes 39,593 39,553 40 0.1
Junior subordinated debentures 52,879 52,849 30 0.1
Other liabilities 30,702 35,441 (4,739) (13.4)
Total liabilities 4,437,501 4,488,297 (50,796) (1.1)
Total stockholders' equity 580,897 544,605 36,292 6.7
Total liabilities and stockholders' equity $ 5,018,398 $ 5,032,902 $ (14,504) (0.3) %
Tangible assets (1)
$ 4,942,124 $ 4,955,239 $ (13,115) (0.3) %
Tangible common equity (1)
504,623 466,942 37,681 8.1
Core deposits (1)
$ 4,103,197 $ 4,116,058 $ (12,861) (0.3) %
Share and Per Share Information
Book value per share $ 18.44 $ 17.26 $ 1.18 6.8 %
Tangible book value per share (1)
16.02 14.80 1.22 8.2
Shares of common stock outstanding 31,495,434 31,559,366
Balance Sheet Ratios
Loan to deposit ratio 77.75 % 80.27 %
Core deposits to total deposits (1)
95.28 95.32
Stockholders' equity to total assets 11.58 10.82
Tangible common equity to tangible assets (1)
10.21 9.42
_________________________________________________
(1)See "Non-GAAP Financial Information" for reconciliation of non-GAAP measure to their most closely comparable GAAP measures.
Notable changes in our consolidated balance sheet include the following:
•A $117.9 million decrease in loans, primarily attributable to paydowns from property sales;
•A $57.2 million increase in debt securities, primarily attributable to a reinvestment of cash flows from loan paydowns and an $18.2 million increase in the fair value of debt securities available-for-sale;
•An $11.7 million decrease in deposits, primarily attributable to lower balances maintained in existing retail accounts; and
•A transition of the vast majority of repurchase agreement account balances to reciprocal interest-bearing demand deposit accounts.
Loan Portfolio
The following table sets forth the composition of the loan portfolio, excluding loans held-for-sale, by type of loan.
June 30, 2025 December 31, 2024
(dollars in thousands) Balance Percent Balance Percent
Commercial and industrial $ 419,430 12.5 % $ 428,389 12.4 %
Commercial real estate - owner occupied 317,475 9.5 322,316 9.3
Commercial real estate - non-owner occupied 907,073 27.1 899,565 25.9
Construction and land development 310,252 9.3 374,657 10.8
Multi-family 453,812 13.5 431,524 12.4
One-to-four family residential 451,197 13.5 463,968 13.4
Agricultural and farmland 271,644 8.1 293,375 8.5
Municipal, consumer, and other 217,328 6.5 252,352 7.3
Loans, before allowance for credit losses 3,348,211 100.0 % 3,466,146 100.0 %
Allowance for credit losses (41,659) (42,044)
Loans, net of allowance for credit losses $ 3,306,552 $ 3,424,102
Loans, before allowance for credit losses were $3.35 billion at June 30, 2025, a decrease of $117.9 million, or 3.4%, from December 31, 2024. Notable changes include the following:
•A reduction due to elevated paydowns from property sales and refinances across several segments;
•Transfers of completed construction projects out of the construction and land development segment drove increases in the multi-family and commercial real estate - non-owner occupied segments; and
•Partially offsetting the transfers out of the construction and land development segment were draws on existing loans and new originations to existing customers.
Commercial Real Estate Portfolios
Commercial real estate - owner occupied loans are primarily made based on the identified cash flows of the borrower and secondarily on the underlying collateral provided by the borrower. The commercial real estate - owner occupied portfolio composition, segmented by the owner's business classification, as of June 30, 2025 was as follows:
June 30, 2025
(dollars in thousands) Balance Substandard
Risk Rating
Manufacturing $ 49,238 $ 329
Auto repair and dealers 35,525 -
Health care and social assistance 32,690 1,384
Accommodation and food services 28,575 3,773
Retail trade 25,794 -
Real estate, rental, and leasing 24,929 25
Grain elevators 24,003 1,650
Construction 16,590 1,367
Wholesale trade 13,787 -
Other services (except public administration) 11,591 252
Arts, entertainment, and recreation 11,299 72
Administrative and support services 10,588 -
Agriculture, forestry, fishing, and hunting 6,507 -
Education services 6,267 1,156
Professional, scientific, and technical services 6,199 -
Finance and insurance 3,626 -
Other 10,267 -
Total $ 317,475 $ 10,008
Commercial real estate - non-owner occupied loans are primarily made based on projected cash flows from the rental or sale of the underlying collateral. The commercial real estate - non-owner occupied portfolio composition, segmented by the property type, as of June 30, 2025 was as follows:
June 30, 2025
(dollars in thousands) Balance Substandard
Risk Rating
Weighted Average LTV(1)
Warehouse and manufacturing $ 188,842 $ - 55 %
Retail 180,082 7,454 55
Office 174,582 32 57
Senior Living 106,182 12,770 54
Hotel 83,591 7,444 56
Mixed use (commercial and residential) 66,883 - 63
Medical office 32,541 - 57
Gas station 24,415 - 61
Auto repair and dealers 19,389 - 54
Restaurant and bar 12,371 - 59
Other 18,195 - 56
Total $ 907,073 $ 27,700 56 %
_________________________________________________
(1) Weighted average LTV is based on the most recent appraisals available, which are generally obtained at the time of origination.
Multi-family loans totaled $453.8 million as of June 30, 2025, and are primarily made based on projected cash flows from the rental or sale of the underlying collateral. As of June 30, 2025, multi-family loans had a weighted average LTV of 57%, based on the most recent appraisals available, which are generally obtained at the time of origination.
Construction and land development loans totaled $310.3 million as of June 30, 2025. The majority of these loans consist of multi-family and one-to-four family residential construction projects either to be sold upon completion or held for long-term investment, but also include other property types that may be rented, sold, or owner occupied upon completion. Construction and land development loans are primarily based on projected cash flows from the rental or sale of the underlying collateral, or based on the identified cash flows of the borrower.
Management's disciplined approach to credit risk management is exercised through portfolio diversification, robust underwriting policies, and routine loan monitoring practices in order to identify and mitigate any credit weakness as early as possible. Management continually monitors and evaluates commercial real estate concentrations by property class, industry, and relative to the Bank's regulatory capital to remain in line with board-established limits and adapt to changing industry conditions. A centralized credit underwriting group, independent of the originating lender, evaluates a vast majority of the commercial exposures over $750 thousand annually, if not more frequently, through a standardized credit review process to ensure uniform application of policies and procedures as well as analyze credit performance. All loans require appropriate internal approval, with a centralized credit approval group reviewing all exposures over $500 thousand. Additionally, a robust internal review process reviews more than 45% of loan commitments on a rolling 24 month basis that is in addition to an annual third-party review of a sample of the portfolio.
For commercial real estate - non-owner occupied and multi-family loans over $1 million, we evaluate, on a quarterly basis, the impact of current interest rates on the underlying cash flows of the properties securing these loans, based on the most recent cash flow data available. Individual credits with a maturity scheduled within the next five quarters that are presenting stress under current renewal terms are identified, so that ample time is available to develop solutions to manage credit risk. This testing is completed in addition to the various sensitivity testing completed at the initial extension of credit.
Loan Portfolio Maturities
The following table summarizes the scheduled maturities of the loan portfolio as of June 30, 2025. Demand loans (loans having no stated repayment schedule or maturity) and overdraft loans are reported as being due in one year or less.
(dollars in thousands) 1 Year
or Less 		After 1 Year
Through
5 Years 		After 5 Years
Through
15 Years 		After
15 Years 		Total
Commercial and industrial $ 227,974 $ 132,026 $ 59,430 $ - $ 419,430
Commercial real estate - owner occupied 49,523 175,779 73,555 18,618 317,475
Commercial real estate - non-owner occupied 213,526 573,930 105,936 13,681 907,073
Construction and land development 151,788 140,438 17,877 149 310,252
Multi-family 85,467 326,518 40,542 1,285 453,812
One-to-four family residential 90,778 148,175 85,872 126,372 451,197
Agricultural and farmland 111,614 121,167 33,758 5,105 271,644
Municipal, consumer, and other 97,264 22,281 65,351 32,432 217,328
Total $ 1,027,934 $ 1,640,314 $ 482,321 $ 197,642 $ 3,348,211
The following table summarizes loans maturing after one year, segregated into variable and fixed interest rates.
Variable Interest Rates
(dollars in thousands) Repricing
1 Year
or Less 		Repricing
After
1 Year 		Total
Variable
Interest Rates 		Predetermined
(Fixed)
Interest Rates 		Total
Commercial and industrial $ 39,419 $ 5,147 $ 44,566 $ 146,890 $ 191,456
Commercial real estate - owner occupied 57,968 40,096 98,064 169,888 267,952
Commercial real estate - non-owner occupied 109,436 32,984 142,420 551,127 693,547
Construction and land development 90,925 1,080 92,005 66,459 158,464
Multi-family 59,118 14,131 73,249 295,096 368,345
One-to-four family residential 66,922 63,483 130,405 230,014 360,419
Agricultural and farmland 5,322 11,926 17,248 142,782 160,030
Municipal, consumer, and other 13,221 20,028 33,249 86,815 120,064
Total $ 442,331 $ 188,875 $ 631,206 $ 1,689,071 $ 2,320,277
Nonperforming Assets
Our nonperforming loans and nonperforming assets were as follows:
(dollars in thousands) June 30, 2025 December 31, 2024
NONPERFORMING ASSETS
Nonaccrual $ 5,615 $ 7,652
Past due 90 days or more, still accruing 9 4
Total nonperforming loans 5,624 7,656
Foreclosed assets 890 367
Total nonperforming assets $ 6,514 $ 8,023
Nonperforming loans that are wholly or partially guaranteed by the U.S. Government $ 1,878 $ 1,573
Allowance for credit losses $ 41,659 $ 42,044
Loans, before allowance for credit losses 3,348,211 3,466,146
CREDIT QUALITY RATIOS
Allowance for credit losses to loans, before allowance for credit losses 1.24 % 1.21 %
Allowance for credit losses to nonaccrual loans 741.92 549.45
Allowance for credit losses to nonperforming loans 740.74 549.16
Nonaccrual loans to loans, before allowance for credit losses 0.17 0.22
Nonperforming loans to loans, before allowance for credit losses 0.17 0.22
Nonperforming assets to total assets 0.13 0.16
Nonperforming assets to loans, before allowance for credit losses, and foreclosed assets 0.19 0.23
Total nonperforming assets were $6.5 million at June 30, 2025, a decrease of 18.8%, when compared to $8.0 million at December 31, 2024. Additionally, of the $5.6 million of nonperforming loans held as of June 30, 2025, $1.9 million are either wholly or partially guaranteed by the U.S. Government. The $1.5 million decrease in nonperforming assets from December 31, 2024 was primarily attributable to the pay-off of a $1.6 million nonaccrual commercial real estate - non-owner occupied credit with a decrease in the one-to-four family residential segment being mostly offset by an increase in the commercial and industrial segment.
Risk Classification of Loans
Our risk classifications of loans were as follows:
(dollars in thousands) June 30, 2025 December 31, 2024
Pass $ 3,144,615 $ 3,264,396
Pass-watch 100,036 83,947
Special mention 6,403 46,590
Substandard 97,157 71,213
Total $ 3,348,211 $ 3,466,146
Loans rated pass-watch or worse were relatively stable as of June 30, 2025, increasing $1.8 million, or 0.9%, from December 31, 2024. Additionally, a $12.1 million construction and land development credit paid off in July 2025 which was rated substandard as of June 30, 2025 and special mention as of December 31, 2024.
Net Charge-offs (Recoveries)
The following table summarizes net charge-offs (recoveries) to average loans by loan category.
Three Months Ended June 30, Six Months Ended June 30,
(dollars in thousands) 2025 2024 2025 2024
Net charge-offs (recoveries)
Commercial and industrial $ 613 $ 469 $ 939 $ 458
Commercial real estate - owner occupied (31) (2) (32) (4)
Commercial real estate - non-owner occupied - (15) - (257)
Construction and land development (1) (1) 4 (2)
Multi-family 43 188 43 188
One-to-four family residential 389 (14) 430 (77)
Agricultural and farmland (9) (1) (47) (8)
Municipal, consumer, and other 43 62 139 181
Total $ 1,047 $ 686 $ 1,476 $ 479
Average loans
Commercial and industrial $ 421,471 $ 401,687 $ 433,027 $ 406,536
Commercial real estate - owner occupied 322,154 294,729 322,824 296,036
Commercial real estate - non-owner occupied 901,263 886,825 895,894 884,765
Construction and land development 369,084 353,568 368,788 360,240
Multi-family 421,653 429,688 427,322 422,002
One-to-four family residential 454,299 487,872 457,536 489,821
Agricultural and farmland 281,048 285,465 279,559 281,452
Municipal, consumer, and other 246,610 234,224 254,174 231,788
Total $ 3,417,582 $ 3,374,058 $ 3,439,124 $ 3,372,640
Charge-offs (recoveries) to average loans *
Commercial and industrial 0.58 % 0.47 % 0.44 % 0.23 %
Commercial real estate - owner occupied (0.04) - (0.02) -
Commercial real estate - non-owner occupied - (0.01) - (0.06)
Construction and land development - - - -
Multi-family 0.04 0.18 0.02 0.09
One-to-four family residential 0.34 (0.01) 0.19 (0.03)
Agricultural and farmland (0.01) - (0.03) (0.01)
Municipal, consumer, and other 0.07 0.11 0.11 0.16
Total 0.12 % 0.08 % 0.09 % 0.03 %
_________________________________________________
* Annualized measure.
The net charge-offs (recoveries) to average total loans ratio has remained low for several years. While we believe our continuous credit monitoring and collection efforts have resulted in lower levels of credit losses, we also recognize that substantial federal economic stimulus during the COVID-19 pandemic and the relatively stable economic conditions after the pandemic have also contributed to reduced credit losses.
Additionally, equipment finance loans which were purchased as part of a pool of loans during 2023 contributed to heightened net charge-offs within the commercial and industrial segment.
Securities
The Company's investment policy emphasizes safety of the principal, liquidity needs, expected returns, cash flow targets, and consistency with our interest rate risk management strategy. The composition and maturities of the debt securities portfolio as of June 30, 2025, are summarized in the following table. Maturities are based on the final contractual payment dates, and do not reflect the impact of prepayments or early redemptions that may occur. Security yields have not been adjusted to a tax-equivalent basis.
June 30, 2025
Available-for-Sale Held-to-Maturity Total
(dollars in thousands) Amortized
Cost 		Weighted
Average
Yield 		Amortized
Cost 		Weighted
Average
Yield 		Amortized
Cost 		Weighted
Average
Yield
Due in 1 year or less
U.S. Treasury $ 19,965 0.95 % $ - - % $ 19,965 0.95 %
U.S. government agency 9,496 2.53 - - 9,496 2.53
Municipal 7,189 1.82 3,422 3.30 10,611 2.30
Mortgage-backed:
Agency residential 303 3.32 - - 303 3.32
Agency commercial 10,133 1.91 - - 10,133 1.91
Total $ 47,086 1.63 % $ 3,422 3.30 % $ 50,508 1.74 %
Due after 1 year through 5 years
U.S. Treasury $ 70,033 1.35 % $ - - % $ 70,033 1.35 %
U.S. government agency 25,228 2.34 42,319 2.28 67,547 2.30
Municipal 60,767 1.65 17,006 3.18 77,773 1.98
Mortgage-backed:
Agency residential 9,017 2.67 10,919 2.11 19,936 2.36
Agency commercial 71,730 1.66 97,917 2.30 169,647 2.03
Corporate 11,901 6.71 - - 11,901 6.71
Total $ 248,676 1.92 % $ 168,161 2.37 % $ 416,837 2.10 %
Due after 5 years through 10 years
U.S. Treasury $ 9,712 1.66 % $ - - % $ 9,712 1.66 %
U.S. government agency 15,955 3.43 46,165 2.66 62,120 2.86
Municipal 68,307 1.84 8,664 3.64 76,971 2.04
Mortgage-backed:
Agency residential 60,984 2.37 - - 60,984 2.37
Agency commercial 6,766 2.40 145,085 1.86 151,851 1.88
Corporate 39,395 4.99 - - 39,395 4.99
Total $ 201,119 2.75 % $ 199,914 2.12 % $ 401,033 2.44 %
Due after 10 years
Municipal $ 17,195 2.21 % $ 1,939 3.47 % $ 19,134 2.33 %
Mortgage-backed:
Agency residential 239,543 4.41 69,958 3.64 309,501 4.24
Agency commercial 54,053 3.40 38,548 1.91 92,601 2.78
Corporate 6,823 5.98 - - 6,823 5.98
Total $ 317,614 4.15 % $ 110,445 3.03 % $ 428,059 3.86 %
Total
U.S. Treasury $ 99,710 1.30 % $ - - % $ 99,710 1.30 %
U.S. government agency 50,679 2.72 88,484 2.48 139,163 2.57
Municipal 153,458 1.80 31,031 3.34 184,489 2.06
Mortgage-backed:
Agency residential 309,847 3.96 80,877 3.43 390,724 3.85
Agency commercial 142,682 2.37 281,550 2.02 424,232 2.14
Corporate 58,119 5.46 - - 58,119 5.46
Total $ 814,495 2.98 % $ 481,942 2.43 % $ 1,296,437 2.77 %
SOURCES OF FUNDS
Deposits
Management continues to focus on growing deposits through the Company's relationship-driven banking philosophy and community-focused marketing programs.
The following table sets forth the distribution of average deposits, by account type:
Three Months Ended June 30, Percent
Change in
Average
Balance
2025 2024
(dollars in thousands) Average
Balance
Percent of
Total Deposits
Weighted
Average Cost *
Average
Balance
Percent of
Total Deposits
Weighted
Average Cost *
Noninterest-bearing $ 1,044,539 24.1 % - % $ 1,043,614 24.0 % - % 0.1 %
Interest-bearing demand 1,125,787 26.0 0.56 1,123,592 25.8 0.51 0.2
Money market 813,531 18.8 2.20 788,744 18.1 2.38 3.1
Savings 569,193 13.1 0.26 592,312 13.6 0.27 (3.9)
Time 780,536 18.0 3.30 763,507 17.6 3.75 2.2
Brokered - - - 38,213 0.9 5.51 (100.0)
Total deposits $ 4,333,586 100.0 % 1.19 % $ 4,349,982 100.0 % 1.31 % (0.4) %
Six Months Ended June 30, Percent
Change in
Average
Balance
2025 2024
(dollars in thousands) Average
Balance
Percent of
Total Deposits
Weighted
Average Cost *
Average
Balance
Percent of
Total Deposits
Weighted
Average Cost *
Noninterest-bearing $ 1,045,133 24.1 % - % $ 1,040,007 24.0 % - % 0.5 %
Interest-bearing demand 1,123,212 25.9 0.54 1,125,638 25.9 0.49 (0.2)
Money market 810,645 18.7 2.20 800,714 18.4 2.38 1.2
Savings 569,343 13.2 0.26 601,768 13.9 0.28 (5.4)
Time 782,307 18.1 3.39 714,003 16.4 3.67 9.6
Brokered - - - 60,181 1.4 5.48 (100.0)
Total deposits $ 4,330,640 100.0 % 1.20 % $ 4,342,311 100.0 % 1.28 % (0.3) %
_________________________________________________
*Annualized measure.
Average deposit balances have been relatively stable in 2025 compared to 2024, with growth in money market and time deposits being offset by decreases in savings and the planned repayment of brokered time deposits at scheduled maturities. Additionally, the vast majority of repurchase agreement account balances were transitioned to reciprocal interest-bearing demand accounts during the first quarter of 2025.
The following table sets forth time deposits by remaining maturity as of June 30, 2025:
(dollars in thousands) 3 Months or
Less 		Over 3 through
6 Months 		Over 6 through
12 Months 		Over
12 Months 		Total
Time deposits:
Amounts less than $100,000 $ 121,377 $ 94,565 $ 76,559 $ 30,036 $ 322,537
Amounts of $100,000 or more but less than $250,000 108,474 76,054 51,084 13,312 248,924
Amounts of $250,000 or more 46,009 39,717 112,149 5,459 203,334
Total time deposits $ 275,860 $ 210,336 $ 239,792 $ 48,807 $ 774,795
As of June 30, 2025 and December 31, 2024, the Bank's uninsured deposits were estimated to be $953.4 million and $949.4 million, respectively.
LIQUIDITY
Bank Liquidity
The overall objective of bank liquidity management is to ensure the availability of sufficient cash funds to meet all financial commitments and to take advantage of investment opportunities. The Bank manages liquidity in order to meet deposit withdrawals on demand or at contractual maturity, to repay borrowings as they mature, and to fund new loans and investments as opportunities arise.
The Bank continuously monitors its liquidity positions to ensure that assets and liabilities are managed in a manner that will meet all of our short-term and long-term cash requirements. The Bank manages its liquidity position to meet our daily cash flow needs, while maintaining an appropriate balance between assets and liabilities to meet the return on investment objectives. The Bank also monitors liquidity requirements in light of interest rate trends, changes in the economy, the scheduled maturity and interest rate sensitivity of the investment and loan portfolios and deposits, and regulatory capital requirements.
As part of the Bank's liquidity management strategy, the Bank is also focused on minimizing costs of liquidity and attempts to decrease these costs by promoting noninterest-bearing and low-cost deposits. While the Bank does not control the types of deposit instruments our clients choose, those choices can be influenced with the rates and the deposit specials offered.
Our on-balance sheet sources of liquidity included cash and cash equivalents as well as unpledged securities which may be sold or pledged as collateral to meet liquidity needs. As of June 30, 2025 and December 31, 2024, our on-balance sheet sources of liquidity included the following:
(dollars in thousands) June 30, 2025 December 31, 2024
Cash and cash equivalents $ 195,742 $ 137,692
Fair value of unpledged securities 743,297 705,106
Total cash and unpledged securities $ 939,039 $ 842,798
Additional sources of liquidity include borrowings from the FHLB, the Federal Reserve discount window, and federal fund lines of credit. Interest is charged on outstanding borrowings at the prevailing market rate. As of June 30, 2025, our current borrowings and additional available borrowing capacity were as follows:
June 30, 2025
(dollars in thousands) Current Balance Additional
Available Capacity
FHLB $ 7,240 $ 1,023,931
Federal Reserve - 107,118
Federal funds lines of credit - 80,000
Total $ 7,240 $ 1,211,049
Furthermore, the Bank could utilize brokered deposits as an additional source of liquidity, as needed.
As of June 30, 2025, management believed the current liquidity and available sources of liquidity are adequate to meet all of the reasonably foreseeable short-term and intermediate-term demands of the Bank. As of June 30, 2025, the Bank had no material commitments for capital expenditures.
Holding Company Liquidity
The Holding Company, or HBT Financial, Inc. on an unconsolidated basis, is a corporation separate and apart from the Bank and, therefore, it must provide for its own liquidity. As of June 30, 2025, the Holding Company had cash and cash equivalents of $35.3 million.
The Holding Company's main source of funding is dividends declared and paid to it by the Bank. Dividends paid by the Bank to the Holding Company would be prohibited if the effect thereof would cause the Bank's capital to be reduced below applicable minimum capital requirements. Management believes that such limitations will not impact the Holding Company's ability to meet its ongoing short-term or intermediate-term cash obligations. During the three months ended June 30, 2025 and 2024, the Bank paid $30.0 million and $10.0 million in dividends to the Holding Company, respectively. During the six months ended June 30, 2025 and 2024, the Bank paid $37.5 million and $18.0 million in dividends to the Holding Company, respectively.
The liquidity needs of the Holding Company on an unconsolidated basis consist primarily of operating expenses, interest payments on the subordinated notes and junior subordinated debentures, and shareholder distributions in the form of dividends and stock repurchases. During the three months ended June 30, 2025 and 2024, holding company operating expenses consisted of interest expense of $1.4 million and $1.4 million, respectively, and other operating expenses of $1.1 million and $1.0 million, respectively. During the six months ended June 30, 2025 and 2024, holding company operating expenses consisted of interest expense of $2.8 million and $2.8 million, respectively, and other operating expenses of $2.1 million and $2.1 million, respectively.
Additionally, the Holding Company paid $6.6 million and $6.0 million of dividends to stockholders during the three months ended June 30, 2025 and 2024, respectively, and paid $13.3 million and $12.1 million of dividends to stockholders during the six months ended June 30, 2025 and 2024, respectively.
As of June 30, 2025, management was not aware of any known trends, events or uncertainties that had or were reasonably likely to have a material impact on the Holding Company's liquidity.
As of June 30, 2025, management believed the current liquidity and available sources of liquidity are adequate to meet all of the reasonably foreseeable short-term and intermediate-term demands of the Holding Company. As of June 30, 2025, the Holding Company had no material commitments for capital expenditures.
CAPITAL RESOURCES
The overall objectives of capital management are to ensure the availability of sufficient capital to support loan, deposit and other asset and liability growth opportunities and to maintain capital to absorb unforeseen losses or write-downs that are inherent in the business risks associated with the banking industry. The Company seeks to balance the need for higher capital levels to address such unforeseen risks and the goal to achieve an adequate return on the capital invested by our stockholders.
Regulatory Capital Requirements
The Company and Bank are each subject to various regulatory capital requirements administered by federal and state banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary, actions by regulators that, if undertaken, could have a direct material effect on the financial statements of the Company and the Bank.
In addition to meeting minimum capital requirements, the Company and the Bank must also maintain a "capital conservation buffer" to avoid becoming subject to restrictions on capital distributions and certain discretionary bonus payments to management. The capital conservation buffer requirement is 2.5% of risk-weighted assets.
As of June 30, 2025 and December 31, 2024, the Company and the Bank met all capital adequacy requirements to which they were subject. As of those dates, the Bank was "well capitalized" under the regulatory prompt corrective action provisions.
The following table sets forth actual capital ratios of the Company and the Bank as of the dates indicated, as well as the minimum ratios for capital adequacy purposes with the capital conservation buffer, and the minimum ratios to be well capitalized under regulatory prompt corrective action provisions.
June 30,
2025 		December 31,
2024
For Capital
Adequacy Purposes
With Capital
Conservation Buffer (1)
To Be Well
Capitalized Under
Prompt Corrective
Action Provisions (2)
Consolidated HBT Financial, Inc.
Total Capital (to Risk Weighted Assets) 17.74 % 16.51 % 10.50 % N/A
Tier 1 Capital (to Risk Weighted Assets) 15.60 14.50 8.50 N/A
Common Equity Tier 1 Capital (to Risk Weighted Assets) 14.26 13.21 7.00 N/A
Tier 1 Capital (to Average Assets) 11.86 11.51 4.00 N/A
Heartland Bank and Trust Company
Total Capital (to Risk Weighted Assets) 16.84 % 16.11 % 10.50 % 10.00 %
Tier 1 Capital (to Risk Weighted Assets) 15.74 15.10 8.50 8.00
Common Equity Tier 1 Capital (to Risk Weighted Assets) 15.74 15.10 7.00 6.50
Tier 1 Capital (to Average Assets) 11.97 11.98 4.00 5.00
_________________________________________________
(1)The Tier 1 capital to average assets ratio (known as the "leverage ratio") is not impacted by the capital conservation buffer.
(2)The prompt corrective action provisions are not applicable to bank holding companies.
N/A Not applicable.
As of June 30, 2025, management was not aware of any known trends, events or uncertainties that had or were reasonably likely to have a material impact on the Company's capital resources.
Cash Dividends
During 2024, the Company paid quarterly cash dividends of $0.19 per share. In January 2025, the Company announced an increase of $0.02 and paid a $0.21 per share dividend during the first and second quarters of 2025.
Stock Repurchase Program
Under the Company's stock repurchase program, the Company repurchased 135,997 shares of its common stock at a weighted average price of $21.30 during the three months ended June 30, 2025. The Company's Board of Directors have authorized the repurchase of up to $15.0 million of its common stock under its stock repurchase program in effect until January 1, 2026. As of June 30, 2025, the Company had $12.1 million remaining under the current stock repurchase authorization.
OFF-BALANCE SHEET ARRANGEMENTS
As a financial services provider, the Bank routinely is a party to various financial instruments with off-balance sheet risks, such as commitments to extend credit, standby letters of credit, unused lines of credit, commitments to sell loans, and interest rate swaps. While these contractual obligations represent our future cash requirements, a significant portion of commitments to extend credit may expire without being drawn upon. Such commitments are subject to the same credit policies and approval process afforded to loans originated by the Bank. For additional information, see "Note 14 - Commitments and Contingencies" to the consolidated financial statements.
CRITICAL ACCOUNTING ESTIMATES
Critical accounting estimates are those that are critical to the portrayal and understanding of the Company's financial condition and results of operations and require management to make assumptions that are difficult, subjective, or complex. These estimates involve judgments, assumptions, and uncertainties that are susceptible to change. In the event that different assumptions or conditions were to prevail, and depending on the severity of such changes, the possibility of a materially different financial condition or materially different results of operations is a reasonable likelihood. Further, changes in accounting standards could impact the Company's critical accounting estimates. The following accounting estimate could be deemed critical:
Allowance for Credit Losses
The allowance for credit losses reflects an estimate of lifetime expected credit losses. Measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts. The allowance for credit losses is established through a provision for credit losses which is charged to expense. Additions to the allowance for credit losses are expected to maintain the adequacy of the total allowance for credit losses. Loan losses are charged off against the allowance for credit losses when the Company determines the loan balance to be uncollectible. Cash received on previously charged off amounts is recorded as a recovery to the allowance for credit losses.
Management uses the discounted cash flow method to estimate expected credit losses for all loan categories, except for consumer loans where the weighted average remaining maturity method is utilized. The Company uses regression analysis of historical internal and peer data to determine which macroeconomic variables are most closely correlated with credit losses, such as the unemployment rate and changes in GDP. Management leverages economic projections from a reputable third party to form its economic forecasts with a reversion to historical averages for periods beyond a reasonable and supportable forecast period.
Nonaccrual loans and loans which do not share risk characteristics with other loans in the pool are individually evaluated to determine expected credit losses.
The allowance for credit losses on unfunded commitments is estimated in the same manner as the associated loans, adjusted for anticipated funding rate.
NON-GAAP FINANCIAL INFORMATION
This Quarterly Report on Form 10-Q contains certain financial information determined by methods other than those in accordance with GAAP. 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 closely comparable GAAP financial measures below.
Non-GAAP Financial Measure Definition How the Measure Provides Useful Information to Investors
Adjusted Net Income
•Net income, with the following adjustments:
-excludes acquisition expenses, including the day 2 provision for credit losses on non-PCD loans and unfunded commitments,
-excludes branch closure expenses,
-excludes gains (losses) on closed branch premises,
-excludes realized gains (losses) on sales of securities,
-excludes mortgage servicing rights fair value adjustment, and
-the income tax effect of these pre-tax adjustments.
•Enhances comparisons to prior periods and, accordingly, facilitates the development of future projections and earnings growth prospects.
•We also sometimes refer to ratios that include Adjusted Net Income, such as:
-Adjusted Return on Average Assets, which is Adjusted Net Income divided by average assets.
-Adjusted Return on Average Equity, which is Adjusted Net Income divided by average equity.
-Adjusted Earnings Per Share - Basic, which is Adjusted Net Income allocated to common shares divided by weighted average common shares outstanding.
-Adjusted Earnings Per Share - Diluted, which is Adjusted Net Income allocated to common shares divided by weighted average common shares outstanding, including all dilutive potential shares.
•Adjusted Return on Average Assets is a performance measure utilized in determining executive compensation.
Pre-Provision Net Revenue
•Net interest income, plus noninterest income, less noninterest expense.
•Provides investors with information regarding profitability excluding provision for credit losses and income tax expense, which may fluctuate from period to period.
•We also sometimes refer to measures that include Pre-Provision Net Revenue, such as:
-Adjusted Pre-Provision Net Revenue which reflects the adjustments considered in Adjusted Net Income, as necessary.
-Pre-Provision Net Revenue Less Charge-offs (Recoveries).
-Adjusted Pre-Provision Net Revenue Less Charge-offs (Recoveries) which reflects the adjustments considered in Adjusted Net Income, as necessary.
•Adjusted Pre-Provision Net Revenue Less Net Charge-Offs (Recoveries) is a performance measure utilized in determining executive compensation.
Non-GAAP Financial Measure Definition How the Measure Provides Useful Information to Investors
Net Interest Income (Tax-Equivalent Basis)
•Net interest income adjusted for the tax-favored status of tax-exempt loans and securities. (1)
•We believe the tax-equivalent basis is the preferred industry measurement of net interest income.
•Enhances comparability of net interest income arising from taxable and tax-exempt sources.
•We also sometimes refer to Net Interest Margin (Tax-Equivalent Basis), which is Net Interest Income (Tax-Equivalent Basis) divided by average interest-earning assets.
Efficiency Ratio (Tax-Equivalent Basis)
•Noninterest expense less amortization of intangible assets divided by the sum of net interest income (tax-equivalent basis) and noninterest income. (1)
•Provides a measure of productivity in the banking industry.
•Calculated to measure the cost of generating one dollar of revenue. That is, the ratio is designed to reflect the percentage of one dollar which must be expended to generate that dollar of revenue.
•We also sometimes refer to Adjusted Efficiency Ratio (Tax-Equivalent Basis) which reflects the adjustments considered in Adjusted Net Income, as necessary.
•Adjusted Efficiency Ratio (Tax-Equivalent Basis) is a performance measure utilized in determining executive compensation.
Ratio of Tangible Common Equity to Tangible Assets
•Tangible Common Equity is total stockholders' equity less goodwill and other intangible assets.
•Tangible Assets is total assets less goodwill and other intangible assets.
•Generally used by investors, our management, and banking regulators to evaluate capital adequacy.
•Facilitates comparison of our earnings with the earnings of other banking organization with varying amounts of goodwill or intangible assets.
•We also sometimes refer to ratios that include Tangible Common Equity, such as:
-Tangible Book Value Per Share, which is Tangible Common Equity divided by shares of common stock outstanding.
-Return on Average Tangible Common Equity, which is net income divided by average Tangible Common Equity.
-Adjusted Return on Average Tangible Common Equity, which is Adjusted Net Income divided by average Tangible Common Equity.
Core Deposits
•Total deposits, excluding:
-Time deposits of $250,000 or more, and
-Brokered deposits
•Provides investors with information regarding the stability of the Company's sources of funds.
•We also sometimes refer to the ratio of Core Deposits to total deposits.
_________________________________________________
(1)Tax-equivalent basis assuming a federal income tax rate of 21% and a state tax rate of 9.5%.
Reconciliation of Non-GAAP Financial Measure -
Adjusted Net Income and Adjusted Return on Average Assets
Three Months Ended June 30, Six Months Ended June 30,
(dollars in thousands) 2025 2024 2025 2024
Net income $ 19,230 $ 18,070 $ 38,305 $ 33,328
Less: adjustments
Gains (losses) on closed branch premises (50) - 9 (635)
Realized gains (losses) on sales of securities - - - (3,382)
Mortgage servicing rights fair value adjustment (751) (97) (1,059) (17)
Total adjustments (801) (97) (1,050) (4,034)
Tax effect of adjustments (1)
228 28 299 1,150
Total adjustments after tax effect (573) (69) (751) (2,884)
Adjusted net income $ 19,803 $ 18,139 $ 39,056 $ 36,212
Average assets $ 5,036,675 $ 5,027,847 $ 5,034,249 $ 5,015,655
Return on average assets * 1.53 % 1.45 % 1.53 % 1.34 %
Adjusted return on average assets * 1.58 1.45 1.56 1.45
_________________________________________________
* Annualized measure.
(1)Assumes a federal income tax rate of 21% and a state tax rate of 9.5%.
Reconciliation of Non-GAAP Financial Measure -
Adjusted Earnings Per Share
Three Months Ended June 30, Six Months Ended June 30,
(dollars in thousands, except per share amounts) 2025 2024 2025 2024
Numerator:
Net income $ 19,230 $ 18,070 $ 38,305 $ 33,328
Adjusted net income $ 19,803 $ 18,139 $ 39,056 $ 36,212
Denominator:
Weighted average common shares outstanding 31,510,759 31,579,457 31,547,669 31,621,205
Dilutive effect of outstanding restricted stock units 77,782 87,354 102,097 113,794
Weighted average common shares outstanding, including all dilutive potential shares 31,588,541 31,666,811 31,649,766 31,734,999
Earnings per share - basic $ 0.61 $ 0.57 $ 1.21 $ 1.05
Earnings per share - diluted $ 0.61 $ 0.57 $ 1.21 $ 1.05
Adjusted earnings per share - basic $ 0.63 $ 0.57 $ 1.24 $ 1.15
Adjusted earnings per share - diluted $ 0.63 $ 0.57 $ 1.23 $ 1.14
Reconciliation of Non-GAAP Financial Measure -
Pre-Provision Net Revenue, Pre-Provision Net Revenue Less Charge-offs (Recoveries),
Adjusted Pre-Provision Net Revenue, and
Adjusted Pre-Provision Net Revenue Less Charge-offs (Recoveries)
Three Months Ended June 30, Six Months Ended June 30,
(dollars in thousands) 2025 2024 2025 2024
Net interest income $ 49,658 $ 47,028 $ 98,366 $ 93,716
Noninterest income 9,140 9,610 18,446 15,236
Noninterest expense (31,914) (30,509) (63,849) (61,777)
Pre-provision net revenue 26,884 26,129 52,963 47,175
Less: adjustments
Gains (losses) on closed branch premises (50) - 9 (635)
Realized gains (losses) on sales of securities - - - (3,382)
Mortgage servicing rights fair value adjustment (751) (97) (1,059) (17)
Total adjustments (801) (97) (1,050) (4,034)
Adjusted pre-provision net revenue $ 27,685 $ 26,226 $ 54,013 $ 51,209
Pre-provision net revenue $ 26,884 $ 26,129 $ 52,963 $ 47,175
Less: net charge-offs 1,047 686 1,476 479
Pre-provision net revenue less net charge-offs $ 25,837 $ 25,443 $ 51,487 $ 46,696
Adjusted pre-provision net revenue $ 27,685 $ 26,226 $ 54,013 $ 51,209
Less: net charge-offs 1,047 686 1,476 479
Adjusted pre-provision net revenue less net charge-offs $ 26,638 $ 25,540 $ 52,537 $ 50,730
Reconciliation of Non-GAAP Financial Measure -
Net Interest Income and Net Interest Margin (Tax-Equivalent Basis)
Three Months Ended June 30, Six Months Ended June 30,
(dollars in thousands) 2025 2024 2025 2024
Net interest income (tax-equivalent basis)
Net interest income $ 49,658 $ 47,028 $ 98,366 $ 93,716
Tax-equivalent adjustment (1)
548 553 1,093 1,128
Net interest income (tax-equivalent basis) (1)
$ 50,206 $ 47,581 $ 99,459 $ 94,844
Net interest margin (tax-equivalent basis)
Net interest margin * 4.14 % 3.95 % 4.13 % 3.95 %
Tax-equivalent adjustment * (1)
0.05 0.05 0.05 0.04
Net interest margin (tax-equivalent basis) * (1)
4.19 % 4.00 % 4.18 % 3.99 %
Average interest-earning assets $ 4,808,213 $ 4,785,558 $ 4,803,145 $ 4,775,505
_________________________________________________
* 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 Measure -
Efficiency Ratio (Tax-Equivalent Basis) and Adjusted Efficiency Ratio (Tax-Equivalent Basis)
Three Months Ended June 30, Six Months Ended June 30,
(dollars in thousands) 2025 2024 2025 2024
Total noninterest expense $ 31,914 $ 30,509 $ 63,849 $ 61,777
Less: amortization of intangible assets 694 710 1,389 1,420
Noninterest expense excluding amortization of intangible assets $ 31,220 $ 29,799 $ 62,460 $ 60,357
Net interest income $ 49,658 $ 47,028 $ 98,366 $ 93,716
Total noninterest income 9,140 9,610 18,446 15,236
Operating revenue 58,798 56,638 116,812 108,952
Tax-equivalent adjustment (1)
548 553 1,093 1,128
Operating revenue (tax-equivalent basis) (1)
59,346 57,191 117,905 110,080
Less: adjustments to noninterest income
Gains (losses) on closed branch premises (50) - 9 (635)
Realized gains (losses) on sales of securities - - - (3,382)
Mortgage servicing rights fair value adjustment (751) (97) (1,059) (17)
Total adjustments to noninterest income (801) (97) (1,050) (4,034)
Adjusted operating revenue (tax-equivalent basis) (1)
60,147 57,288 $ 118,955 $ 114,114
Efficiency ratio 53.10 % 52.61 % 53.47 % 55.40 %
Efficiency ratio (tax-equivalent basis) (1)
52.61 52.10 52.97 54.83
Adjusted efficiency ratio (tax-equivalent basis) (1)
51.91 52.02 52.51 52.89
_________________________________________________
(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 Measure -
Ratio of Tangible Common Equity to Tangible Assets and Tangible Book Value Per Share
(dollars in thousands, except per share data) June 30, 2025 December 31, 2024
Tangible Common Equity
Total stockholders' equity $ 580,897 $ 544,605
Less: Goodwill 59,820 59,820
Less: Intangible assets, net 16,454 17,843
Tangible common equity $ 504,623 $ 466,942
Tangible Assets
Total assets $ 5,018,398 $ 5,032,902
Less: Goodwill 59,820 59,820
Less: Intangible assets, net 16,454 17,843
Tangible assets $ 4,942,124 $ 4,955,239
Total stockholders' equity to total assets 11.58 % 10.82 %
Tangible common equity to tangible assets 10.21 9.42
Shares of common stock outstanding 31,495,434 31,559,366
Book value per share $ 18.44 $ 17.26
Tangible book value per share 16.02 14.80
Reconciliation of Non-GAAP Financial Measure -
Return on Average Tangible Common Equity, Adjusted Return on Average Stockholders' Equity, and Adjusted Return on Average Tangible Common Equity
Three Months Ended June 30, Six Months Ended June 30,
(dollars in thousands) 2025 2024 2025 2024
Average Tangible Common Equity
Total stockholders' equity $ 572,505 $ 501,837 $ 563,659 $ 497,906
Less: Goodwill 59,820 59,820 59,820 59,820
Less: Intangible assets, net 16,782 19,605 17,130 19,970
Average tangible common equity $ 495,903 $ 422,412 $ 486,709 $ 418,116
Net income $ 19,230 $ 18,070 $ 38,305 $ 33,328
Adjusted net income 19,803 18,139 39,056 36,212
Return on average stockholders' equity * 13.47 % 14.48 % 13.70 % 13.46 %
Return on average tangible common equity * 15.55 17.21 15.87 16.03
Adjusted return on average stockholders' equity * 13.87 % 14.54 % 13.97 % 14.63 %
Adjusted return on average tangible common equity * 16.02 17.27 16.18 17.42
_________________________________________________
* Annualized measure.
Reconciliation of Non-GAAP Financial Measure -
Core Deposits
(dollars in thousands) June 30, 2025 December 31, 2024
Core Deposits
Total deposits $ 4,306,531 $ 4,318,254
Less: time deposits of $250,000 or more 203,334 202,196
Less: brokered deposits - -
Core deposits $ 4,103,197 $ 4,116,058
Core deposits to total deposits 95.28 % 95.32 %
HBT Financial Inc. published this content on August 01, 2025, and is solely responsible for the information contained herein. Distributed via SEC EDGAR on August 01, 2025 at 20:15 UTC. If you believe the information included in the content is inaccurate or outdated and requires editing or removal, please contact us at [email protected]